S. 2343, the Restoring Equal Opportunity Act, would prohibit "disparate impact" claims under federal civil rights law for both employment and housing. Disparate impact lawsuits are those where someone alleges that a neutral policy—one not intentionally discriminatory on its face—has a disproportionate negative effect on a protected group (such as by race, color, or national origin). The bill would eliminate this type of legal claim in employment cases under the Civil Rights Act of 1964 and in housing cases under the Fair Housing Act, meaning plaintiffs could no longer sue based on unintended discriminatory effects, only on intentional discrimination. The legislation also nullifies certain longstanding federal regulations that had previously allowed disparate impact claims. No specific funding or timeline is included in the bill; it would take effect upon enactment if passed.
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