2026-10258RuleWallet

Interior Department Drops Unintentional Discrimination Rules

Published Date: 5/22/2026

Rule

Summary

The Department of the Interior is changing its rules to focus only on intentional discrimination, dropping parts that punished unintentional effects. This update, effective May 22, 2026, helps avoid legal problems, cuts red tape, and follows a new executive order. People and groups dealing with the Department will see simpler, clearer rules without extra costs or confusion.

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

No More Disparate-Impact Liability

On May 22, 2026, the Department of the Interior removed the parts of 43 CFR 17.3 that allowed Title VI liability for policies that only had an unintentional disparate impact. The Department says it will not pursue Title VI disparate-impact liability against recipients of its Federal financial assistance under these regulations.

Affirmative-Action Rules Removed

The rule deletes 43 CFR 17.3(b)(4), removing regulatory language that authorized or in some cases required recipients to take ‘‘affirmative action’’ to overcome the effects of past or present disparities. This change eliminates that affirmative-action mandate or authorization in the Department's Title VI regulations.

Employment Coverage Narrowed

The Department removed 43 CFR 17.3(c)(3), which had extended Title VI coverage to employment practices even when the Federal assistance’s primary objective was not to provide employment. After this change, Title VI coverage for employment practices will more closely follow the statutory limitation that applies when the primary objective is employment.

Less Enforcement and Lower Compliance Costs

The Department says the changes should reduce its enforcement costs and should result in greater flexibility and lower compliance costs for recipients of DOI Federal financial assistance. The preamble notes the Department issued about 53,700 awards totaling about $28.4 billion over the past four years and expects this deregulatory action to lessen confusion and costs.

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Key Dates

Published Date
Rule Effective
5/22/2026
5/22/2026

Department and Agencies

Department
Independent Agency
Agency
Interior Department
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