Legal News for 1/2 - Law School Trends in '25, 9/11 Plea Deals at Gitmo, Backlash to DEI Reshapes Corporate Programs, Column on DGE and the IRS

Minimum Competence

This Day in Legal History: Palmer Raids

On January 2, 1920, Attorney General Mitchell Palmer orchestrated a sweeping crackdown on suspected radicals in what came to be known as the "Palmer Raids." Over 500 federal agents, joined by local law enforcement, conducted coordinated raids across 33 U.S. cities, arresting between 6,000 and 10,000 individuals. The targets were primarily immigrants accused of being communists, anarchists, or other political radicals. Many of those detained were held without warrants or evidence, and legal proceedings against them often lacked due process.

These raids were the culmination of the first Red Scare, a period marked by paranoia about leftist ideologies following the Russian Revolution and a wave of domestic labor unrest. Palmer justified the operation as a necessary defense against a supposed revolutionary threat, publishing his infamous article, The Case Against the 'Reds,' which fanned public fears. However, the raids quickly drew criticism for their unconstitutional practices. Detainees were denied legal counsel, held in overcrowded and unsanitary conditions, and subjected to deportation without fair hearings.

Prominent legal figures and organizations denounced the Palmer Raids, seeing them as a gross abuse of government power. Critics argued that Palmer’s actions not only violated individual rights but also reflected an opportunistic attempt to bolster his political ambitions. The backlash led to the founding of the American Civil Liberties Union (ACLU), which emerged as a leading advocate against such government overreach.

In hindsight, the Palmer Raids are a stark reminder of how fear and political expediency can undermine constitutional protections. They stand as a cautionary tale about the dangers of sacrificing civil liberties in the name of national security, a pattern that has echoed through subsequent decades.

Law schools are navigating significant changes as they head into 2025, with notable trends shaping the legal education landscape. Enrollment is surging, with applications for fall 2025 up 25% compared to last year. This follows a 6% increase in applicants and a 5% rise in first-year students in 2024. Interest in legal careers appears driven by the prominent role of law in current events, including the recent presidential election. The competition for spots, particularly at elite schools, is intensifying, with a sharp increase in applicants holding top LSAT scores.

Diversity in law school classes remains a critical issue. While the overall diversity of the 2024 entering class held steady, Black and Hispanic enrollment at top-ranked "T-14" law schools dropped by 8% and 9%, respectively, following the U.S. Supreme Court’s 2023 affirmative action ban. Experts anticipate further impacts on diversity as fewer undergraduates of color enter the pipeline, with effects becoming clearer by 2028. For now, Black and Hispanic applicants are up significantly, reflecting continued interest in legal education.

Generative artificial intelligence (AI) is beginning to influence law school curricula, though adoption varies widely. While only a small percentage of faculty actively teach AI-focused courses, some schools, like UC Berkeley and Arizona State, now offer AI-specific degrees or certificates. Legal writing courses and law clinics are increasingly integrating AI tools, responding to the legal profession’s rapid adoption of generative AI technologies. Advocates argue that law schools must accelerate these efforts to meet employer and industry demands.

Law school trends to watch in 2025 | Reuters

A U.S. military appeals court has upheld the validity of plea deals for Khalid Sheikh Mohammed, the alleged mastermind of the September 11 attacks, and two accomplices. This decision follows an earlier ruling by a military judge stating that Defense Secretary Lloyd Austin’s attempt to invalidate the agreements in August was untimely. Under these plea deals, the three men could plead guilty to their roles in the 9/11 attacks in exchange for avoiding the death penalty.

The Pentagon has not commented on the ruling but previously indicated that Austin was surprised by the plea deals, which were made independently of his office. The 9/11 attacks killed nearly 3,000 people and led to the U.S. invasion of Afghanistan. Mohammed remains one of the most notable detainees at Guantanamo Bay, a detention center established in 2002 to hold foreign militant suspects.

The case has renewed criticism of Guantanamo Bay, with human rights advocates condemning the use of torture and calling for accountability. Separately, on the same day as the court ruling, the Pentagon announced the repatriation of Ridah Bin Saleh Al-Yazidi, one of Guantanamo’s longest-held detainees, to Tunisia after being detained for over 20 years without charge. The facility currently houses 26 detainees, 14 of whom are eligible for transfer.

US military appeals court says plea deals related to 9/11 attacks may proceed | Reuters

Corporate diversity, equity, and inclusion (DEI) programs faced mounting pressure in 2024, a trend likely to continue into 2025. Conservative activists, such as Robby Starbuck, successfully pushed major corporations like Walmart and Ford to modify or scale back their DEI initiatives. Starbuck’s efforts have caught the attention of investors, with some threatening shareholder proposals in response to unwanted changes. Companies are also adjusting their language and communication around DEI to avoid political backlash, with organizations like Citigroup and Uber removing terms like "anti-racist" from corporate filings.

The legal and political landscape is shifting as well. Trump’s incoming administration, supported by a Republican-led Congress, plans to restrict corporate DEI through measures like prohibiting SEC workforce disclosures and barring government contracts for companies with DEI programs. Simultaneously, legal challenges from groups like America First Legal are targeting DEI policies as discriminatory under Title VII of the Civil Rights Act, with lawsuits filed against companies like IBM's Red Hat.

Some corporations now list DEI as a potential risk factor in their filings, signaling concerns about legal or reputational fallout from their diversity efforts. Despite the scrutiny, many businesses quietly continue pursuing diversity goals, while some executives maintain that inclusivity is essential for long-term success. This balancing act reflects the growing complexity of navigating DEI in a polarized environment.

Corporate DEI Programs Recoil and Rebrand as Pressure Mounts

In my column this week, I contend that if the Department of Government Efficiency, which will not be a real executive agency, wants to make the IRS more efficient it should do so by ordering more audits of wealthy taxpayers.

Elon Musk and Vivek Ramaswamy’s push for government efficiency could start by significantly improving federal revenue by addressing the $696 billion annual tax gap—the difference between taxes owed and collected. Research suggests that better auditing of high-income taxpayers, without requiring new legislation, could recover substantial unpaid taxes, aligning with the duo's mission of improving efficiency. Studies show that audits of wealthier individuals yield a high return on investment, deterring future tax evasion while reinforcing compliance.

The IRS, weakened by years of budget cuts, requires more personnel to handle labor-intensive audits of complex high-income returns effectively. Targeted funding has already proven successful, as the Inflation Reduction Act enabled the IRS to recover over $1 billion from high-net-worth taxpayers. For every $1 spent auditing a taxpayer in the 90th percentile, the IRS recouped $12 in taxes owed – a truly staggering return on investment. However, the agency still struggles to match its 1995 staffing levels, highlighting a critical need for further investment.

Closing the tax gap would not only generate significant revenue but also restore fairness by ensuring progressive tax rates function as intended. This effort is essential for creating an accurate picture of government resources and addressing fiscal responsibility. Whether Musk and Ramaswamy’s commission will embrace this nuanced approach to tax administration remains to be seen, but don’t hold your breath. A successful efficiency audit of the IRS hinges on informed decision-making and precision – something neither Musk nor Ramaswamy has evinced having in matters of politics.

Musk, Ramaswamy Can Target Inefficiency by Closing the Tax Gap

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