On June 28, the U.S. Supreme Court in Parents Involved in Community School v. Seattle School District, No. 1, declares that establishing racial balance in schools is not a compelling state interest. This landmark decision restricts racial diversity programs.

On October 23, U.S. Court of Appeals Judge Clarence Thomas is appointed to the U.S. Supreme Court after controversial confirmation process.

The North American Free Trade Agreement (NAFTA) between Canada, the United States, and Mexico, is signed into law by President Bill Clinton on December 8.