In a sweeping regulatory shift, the Department of Homeland Security (DHS) has finalized a rule that dramatically narrows how discrimination can be penalized across billions of dollars in federal grants. The decision strips the government of its ability to penalize funding recipients for policies that disproportionately harm minority groups—unless explicit discriminatory intent can be proven. The final rule, signed by Homeland Security Secretary Markwayne Mullin and scheduled for publication in the Federal Register on June 22, officially eliminates “disparate-impact” liability under Title VI of the Civil Rights Act of 1964 for DHS and the Federal Emergency Management Agency (FEMA). It...