Published by Fractional Coordinator, Inc. | December 2025

As 2025 winds down, regulatory shifts are reshaping civil‑rights compliance for schools, universities and other federally funded entities.  Two developments stand out: the DOJ’s elimination of disparate‑impact liability under Title VI and the EEOC’s heightened focus on national‑origin discrimination.

What changed in Title VI enforcement?

On December 10 2025 the U.S. Department of Justice finalized a rule that amends its Title VI regulations to remove disparate‑impact liability .  Historically, agencies could pursue institutions when policies that were neutral on their face produced statistical disparities.  The new rule rescinds portions of 28 C.F.R. § 42.104 that referenced the “effect” of criteria or methods of administration and aligns enforcement with the statutory prohibition on intentional discrimination.  It also implements an executive order directing agencies to eliminate disparate‑impact theories and clarifies that recipients will now be liable only for purposeful discrimination.

This change is expected to reduce federal investigations based solely on demographic disparities.  At the same time, the rule emphasizes that data on disparities may still be used to prove discriminatory intent.  Institutions remain subject to state anti-discrimination laws, many of which still recognize disparate‑impact claims, and private lawsuits under other statutes.

National‑origin compliance under Title VII

In November 2025 the Equal Employment Opportunity Commission issued a one‑page technical assistance document titled “Discrimination Against American Workers Is Against the Law” and updated its national‑origin guidance.  The agency stresses that Title VII prohibits employers from favoring foreign workers, including visa holders, over U.S. citizens.  The guidance lists examples of prohibited conduct, such as advertising jobs with “H‑1B preferred” requirements, terminating U.S. workers while retaining visa holders and paying foreign employees more than their American counterparts .  The EEOC also clarifies that customer preferences, lower labor costs or stereotypes about work ethic do not justify national‑origin discrimination.

With the Department of Labor’s Project Firewall focusing on H‑1B abuses, the EEOC’s materials signal a coordinated federal effort to enforce national‑origin protections.  Employers should anticipate heightened scrutiny of recruitment, compensation and assignment practices.

Implications and next steps

Although the federal government is scaling back disparate‑impact enforcement under Title VI, institutions still bear significant compliance responsibilities.  Key actions include:

• Reviewing and updating policies to reflect the new intent‑only standard under Title VI and documenting nondiscriminatory reasons for decisions.

• Auditing recruitment and advertising materials for potential national‑origin bias and ensuring compensation and termination practices treat all nationalities equally.

• Monitoring state law developments and private litigation trends, as these may continue to rely on disparate‑impact theories.

Partnering with Fractional Coordinator

Fractional Coordinator, Inc. guides public colleges, universities and school districts through the rapidly evolving federal civil‑rights landscape. Our team conducts policy audits, updates grievance procedures, develops digital‑harassment and accessibility protocols, and trains staff and faculty to respond effectively. We focus on building durable systems that protect students and employees - whether in classrooms, residence halls, workplaces or online spaces.

To learn more about our services or to schedule a consultation, visit www.fractionalcoordinator.com or email us at support@fractionalcoordinator.com.