A unanimous Supreme Court made it easier Thursday to bring lawsuits over so-called reverse discrimination, siding with an Ohio woman who claims she didn’t get a job and then was demoted because she is straight.
The justices’ decision affects lawsuits in 20 states and the District of Columbia where, until now, courts had set a higher bar when members of a majority group, including those who are white and heterosexual, sue for discrimination under federal law.
Justice Ketanji Brown Jackson wrote for the court that federal civil rights law draws no distinction between members of majority and minority groups.
“By establishing the same protections for every ‘individual’ — without regard to that individual’s membership in a minority or majority group — Congress left no room for courts to impose special requirements on majority-group plaintiffs alone,” Jackson wrote.
The court ruled in an appeal from Marlean Ames, who has worked for the Ohio Department of Youth Services for more than 20 years.
Ames contends she was passed over for a promotion and then demoted because she is heterosexual. Both the job she sought and the one she had held were given to LGBTQ people.
Title VII of the Civil Rights Act of 1964 bars sex discrimination in the workplace. A trial court and the 6th U.S. Circuit Court of Appeals ruled against Ames.
The 6th circuit is among the courts that had required an additional requirement for people like Ames, showing “background circumstances” that might include that LGBTQ people made the decisions affecting Ames or statistical evidence of a pattern of discrimination against members of the majority group.
The appeals court noted that Ames didn’t provide any such circumstances.
But Jackson wrote that “this additional ‘background circumstances’ requirement is not consistent with Title VII’s text or our case law construing the statute.”
The White House on Tuesday officially asked Congress to claw back $9.4 billion in already approved spending, taking funding away from programs targeted by Elon Musk’s Department of Government Efficiency.
It’s a process known as “rescission,” which requires President Donald Trump to get approval from Congress to return money that had previously been appropriated. Trump’s aides say the funding cuts target programs that promote liberal ideologies.
The request, if it passes the House and Senate, would formally enshrine many of the spending cuts and freezes sought by DOGE. It comes at a time when Musk is extremely unhappy with the tax cut and spending plan making its way through Congress, calling it on Tuesday a “disgusting abomination” for increasing the federal deficit.
White House budget director Russ Vought said more rescission packages and other efforts to cut spending could follow if the current effort succeeds.
“We are certainly willing and able to send up additional packages if the congressional will is there,” Vought told reporters.
Here’s what to know about the rescissions request:
Will the rescissions make a dent in the national debt?
The request to Congress is unlikely to meaningfully change the troublesome increase in the U.S. national debt. Tax revenues have been insufficient to cover the growing costs of Social Security, Medicare and other programs. The Congressional Budget Office estimates the government is on track to spend roughly $7 trillion this year, with the rescission request equaling just 0.1% of that total.
White House press secretary Karoline Leavitt told reporters at Tuesday’s briefing that Vought — a “well-respected fiscal hawk,” she called him — would continue to cut spending, hinting that there could be additional efforts to return funds.
“He has tools at his disposal to produce even more savings,” Leavitt said.
Members of the House Freedom Caucus, among the chamber’s most conservative lawmakers, said they would like to see additional rescission packages from the administration.
“We will support as many more rescissions packages the White House can send us in the coming weeks and months,” the group said in a press release. “Passing this rescissions package will be an important demonstration of Congress’s willingness to deliver on DOGE and the Trump agenda.”
Sen. Susan Collins, chair of the Senate Appropriations Committee, gave the package a less optimistic greeting.
“Despite this fast track, the Senate Appropriations Committee will carefully review the rescissions package and examine the potential consequences of these rescissions on global health, national security, emergency communications in rural communities, and public radio and television stations,” the Maine lawmaker said in a statement.
Vought said he can send up additional rescissions at the end of the fiscal year in September “and if Congress does not act on it, that funding expires.”
“It’s one of the reasons why we are not putting all of our expectations in a typical rescissions process,” he added.
What programs are targeted by the rescissions?
A spokesperson for the White House Office of Management and Budget, speaking on condition of anonymity to preview some of the items that would lose funding, said that $8.3 billion was being cut from the State Department and the U.S. Agency for International Development. NPR and PBS would also lose federal funding, as would the U.S. President’s Emergency Plan for AIDS Relief, also known as PEPFAR.
The spokesperson listed specific programs that the Trump administration considered wasteful, including $750,000 to reduce xenophobia in Venezuela, $67,000 for feeding insect powder to children in Madagascar and $3 million for circumcision, vasectomies and condoms in Zambia.
Is the rescissions package likely to get passed?
House Speaker Mike Johnson, R-La., complimented the planned cuts and pledged to pass them.
“This rescissions package reflects many of DOGE’s findings and is one of the many legislative tools Republicans are using to restore fiscal sanity,” Johnson said. “Congress will continue working closely with the White House to codify these recommendations, and the House will bring the package to the floor as quickly as possible.”
Members of the House Freedom Caucus, among the chamber’s most conservative lawmakers, said they would like to see additional rescission packages from the administration.
“We will support as many more rescissions packages the White House can send us in the coming weeks and months,” the group said in a press release. “Passing this rescissions package will be an important demonstration of Congress’s willingness to deliver on DOGE and the Trump agenda.”
Sen. Susan Collins, chair of the Senate Appropriations Committee, gave the package a less optimistic greeting.
“Despite this fast track, the Senate Appropriations Committee will carefully review the rescissions package and examine the potential consequences of these rescissions on global health, national security, emergency communications in rural communities, and public radio and television stations,” the Maine lawmaker said in a statement.
Financial markets welcomed a U.S. court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.
U.S. futures jumped early Thursday and oil prices rose more than $1. The U.S. dollar rose against the yen and euro.
The court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorize the use of tariffs.
The White House immediately appealed and it was unclear if Trump would abide by the ruling in the interim. The long term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Trump's trade war.
The future for the S&P 500 was up 1.5% while that for the Dow Jones Industrial Average gained 1.2%.
In early European trading, Germany's DAX gained 0.5% to 24,160.75. The CAC 40 in Paris jumped 0.9% to 7,860.67. Britain's FTSE was nearly unchanged at 8,722.63.
Japan's Nikkei 225 index jumped 1.9% to 38,432.98. American's largest ally in Asia has been appealing to Trump to cancel the tariffs he has ordered on imports from Japan and to also stop 25% tariffs on steel, aluminum and autos.
A U.S. Customs and Border Protection technician examines overseas parcels after they were scanned at the agency's overseas mail inspection facility at Chicago's O'Hare International Airport on Feb. 23, 2024.
The ruling also pushed the dollar sharply higher against the Japanese yen. It was trading at 145.40 yen early Thursday, up from 144.87 yen late Wednesday.
A three-judge panel ruled on several lawsuits arguing Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy.
Many of Trump's double-digit tariff hikes are paused for up to 90 days to allow time for trade negotiations, but the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead.
"Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific," Stephen Innes of SPI Asset Management said in a commentary.
The ruling was, at the least, "a brief respite before the next thunderclap," he said.
Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while the Shanghai Composite index gained 0.7% to 3,363.45.
Australia's S&P/ASX 200 gained 0.2% to 8,409.80.
In South Korea, which like Japan relies heavily on exports to the U.S., the Kospi surged 1.9% to 2,720.64. Shares also were helped by the Bank of Korea's decision to cut its key interest rate to 2.5% from 2.75%, to ease pressure on the economy.
Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%.
On Wednesday, U.S. stocks cooled, with the S&P 500 down 0.6% but still within 4.2% of its record after charging higher amid hopes that the worst of the turmoil caused by Trump's trade war may have passed. It had been roughly 20% below the mark last month.
The Dow industrials lost 0.6% and the Nasdaq composite fell 0.5%.
Trading was relatively quiet ahead of a quarterly earnings release for Nvidia, which came after markets closed.
The bellwether for artificial intelligence overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth thanks to feverish demand for its high-powered chips that are making computers seem more human. Nvidia's shares jumped 6.6% in afterhours trading.
Like Nvidia, Macy's stock also swung up and down through much of the day, even though it reported milder drops in revenue and profit for the latest quarter than analysts expected. Its stock ended the day down 0.3%.
The bond market showed relatively little reaction after the Federal Reserve released the minutes from its latest meeting earlier this month, when it left its benchmark lending rate alone for the third straight time. The central bank has been holding off on cuts to interest rates, which would give the economy a boost, amid worries about inflation staying higher than hoped because of Trump's sweeping tariffs.
