# Federal Register #2026-22650

LSC proposes classifying all LSC-funded real estate improvements as capital improvements

**Buyer:** Legal Services Corporation
**Posted:** November 05, 2026
**Respond By:** December 22, 2026
**Identifier:** 2026-22650

The Legal Services Corporation (LSC) has proposed a regulatory change to how recipients classify real estate improvements.
- **Government agency:** Legal Services Corporation (LSC); the proposal concerns its regulations in 45 CFR part 1631.
- **Proposed change:** Treat any LSC-funded construction or addition of fixtures integral to real estate as a capital improvement, regardless of cost.
- **Recipient responsibilities:** Identify, track, and account for qualifying improvements, including improvements accumulated through multiple expenditures over time.
- **Approval requirements:** The proposal does not change separate rules for when LSC prior approval is required.
- **Procurement status:** This is a proposed rule, not a solicitation. No products, services, quantities, part numbers, OEMs, or vendors are requested.

### Description

The Legal Services Corporation proposes to revise its definition of “capital improvement” in 45 CFR part 1631. The proposed rule would remove the monetary threshold for LSC-funded improvements to real estate, so that any amount spent on qualifying construction or integral fixtures is treated as a capital improvement. Recipients would track and account for these expenditures regardless of amount; existing requirements governing when prior approval is required would remain separate. Comments are due by 11:59 p.m. Eastern on December 21, 2026.

[View original listing](https://www.federalregister.gov/documents/2026/11/05/2026-22650/purchasing-and-property-management)