The FAIR Act of 2025 aims to bar discrimination and the use of race-, color-, or national-origin-based preferences in all federal actions and in recipients of federal funds. Specifically, it prohibits intentional discrimination or preferences by the federal government, its officers, employees, or agents in connection with federal contracts, federal employment, or any other federally conducted program or activity, and it also forbids pressuring contractors or recipients of federal licenses or financial assistance to discriminate or to grant preferences on those bases. The act extends these prohibitions to states or private entities receiving federal financial assistance in contracts, employment, and admissions to educational institutions. In addition to the core prohibitions, the bill requires federal agencies to review and modify their policies to conform within six months of enactment and establishes civil remedies for violations, including back pay and reasonable attorney’s fees for prevailing plaintiffs. It clarifies that pending matters or contracts in effect at enactment are not affected. The act defines “preference” broadly to include quotas, set-asides, numerical goals, timetables, or other numerical objectives, and it does not alter immigration law.
Key Points
- 1Prohibition on discrimination and preferences: The federal government, its officers/employees/agents, and federal programs cannot intentionally discriminate against or grant preferences based on race, color, or national origin in contracts, employment, or other federal activities; it also forbids pressuring contractors or recipients to do so.
- 2Recipients of federal aid: States or private entities receiving federal financial assistance may not discriminate or grant preferences in contracts, employment, or admissions to educational institutions.
- 3Compliance review requirement: Within six months after enactment, each federal department/agency must review and modify policies/regulations to meet the act’s requirements and report back to the House and Senate Judiciary Committees.
- 4Remedies and enforcement: Aggrieved individuals may sue for violations, with potential relief including back pay; prevailing plaintiffs can recover reasonable attorney’s fees. Remedies are designed to work alongside other laws.
- 5Scope and definitions: “Preference” is defined broadly (including quotas or numerical goals). “Federal government” refers to the executive and legislative branches. The act does not address immigration/nationality laws and does not affect matters pending at enactment.