On August 10, 2026, the HUD issued a supplemental notice of proposed rulemaking to remove provisions in HUD's Title VI implementing regulations that impose disparate-impact liability on recipients of HUD Federal financial assistance. This supplements the January 2026 proposed rule to remove HUD's disparate-impact regulations and leave interpretation of disparate-impact liability under the Fair Housing Act to the courts.
The HUD's Title VI regulations, found in 24 CFR Part 1, implement the prohibition against discrimination on the basis of race, color, or national origin, including exclusion from participation in, denial of benefits of, or discrimination under any HUD program or activity covered by these regulations. On December 10, 2025, the DOJ issued a final rule removing disparate-impact liability from its Title VI regulations, consistent with Executive Order 14281. Consequently, the HUD is proposing similar changes to its own Title VI regulations. In particular, HUD is proposing to remove regulatory provisions that prohibit discrimination based on the “effect” of a policy or practice where there is no intentional discrimination.
Comments on the proposal will be accepted until October 9, 2026.
The supplemental notice of proposed rulemaking can be found here.