Federal Register #2026-15720

Treasury Department Final Rule: Title VI Regulations Amended to Eliminate Disparate-Impact Liability

This notice announces a regulatory update from the U.S. Department of the Treasury regarding Title VI of the Civil Rights Act of 1964. - The Treasury Department is amending its Title VI regulations to eliminate disparate-impact liability - Aligns regulations with the original statutory intent to prohibit only intentional discrimination - Addresses constitutional concerns, including compliance with the Equal Protection Clause - Reduces enforcement and compliance costs for recipients of federal financial assistance - Implements changes directed by an Executive Order focused on equality of opportunity and meritocracy - No procurement of products or services is involved - No Original Equipment Manufacturers (OEMs), vendors, or contract awards are mentioned - The rule is regulatory in nature and affects recipients of Treasury federal financial assistance, especially in administrative practice, civil rights, claims, disability benefits, and government contracts - An unrelated EPA action establishes a pesticide tolerance for permethrin residues on black pepper, but this is not a procurement opportunity

Description

This final rule by the Department of the Treasury amends its regulations implementing Title VI of the Civil Rights Act of 1964 to eliminate disparate-impact liability. The amendments align the Department's regulations with Title VI's original public meaning, address constitutional concerns, reduce compliance costs, and serve the public interest. Additionally, the revisions implement changes directed by an Executive Order aimed at restoring equality of opportunity and meritocracy. The rule is effective August 3, 2026.

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