USDAFinal Rule

Removal of Unconstitutional Preferences Based on Race and Sex in Response to Court Ruling

AgricultureLabor & WorkplaceFinance & Banking

Summary

The USDA is removing policies that gave special consideration to applicants based on race or sex in response to a court ruling that found such preferences unconstitutional. This affects USDA programs including loans, grants, and contracts that previously took these factors into account when making decisions about who receives benefits.

Key Points

  • 1The USDA must stop considering race and sex as factors in its loan, grant, and contract programs
  • 2This change applies to agricultural programs, rural development funding, and other USDA assistance that farmers and rural businesses rely on
  • 3The rule was issued to comply with a court decision that struck down race and sex-based preferences as unconstitutional
  • 4Applicants will now be evaluated based on other criteria like financial need, business viability, and program requirements instead
  • 5The USDA will need to update application materials, evaluation processes, and staff training to implement these changes

Key Dates

Published

July 10, 2025

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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