H.R. 730 would amend title VI of the Civil Rights Act of 1964 to create a private right of action to file disparate impact claims. Disparate impact refers to the discriminatory effects caused by policies that, on their face, appear neutral as instituted by an organization or employer. According to legal experts and an analysis of court filing data from the federal judiciary over the past 30 years, disparate impact claims brought under title VI are most often related to education (although they are applicable to housing and public transportation, among other settings) and have historically constituted a small portion of civil rights litigation—most such claims are filed under other titles of the act regarding employment issues.
CBO expects that enacting H.R. 730 could result in an increase in the number of suits filed in federal courts related to disparate impact cases under title VI. The federal judiciary charges fees to file suit in district court. Those fees are recorded as revenues and can be spent without further appropriation action and are thus classified as direct spending. Because CBO expects that any additional fees charged by the judiciary would be spent, enacting H.R. 730 would have an insignificant effect on the deficit over the 2022-2031 period.
