VA Moves to Drop Rules on Accidental Discrimination
Published Date: 6/26/2026
Proposed Rule
Summary
The VA is updating its rules to focus only on intentional discrimination in programs it supports, dropping rules about accidental unfair effects. This change affects anyone using VA programs and aims to clear up confusion, cut costs, and follow new government orders. You’ve got until July 27, 2026, to share your thoughts before the new rules take shape!
Analyzed Economic Effects
5 provisions identified: 1 benefits, 4 costs, 0 mixed.
Disparate-Impact Protections Removed
The VA proposes to remove disparate-impact liability from its Title VI rules so the rules would prohibit only intentional discrimination. The proposed rule says this change "affects anyone using VA programs" and is part of the proposal open for comment until July 27, 2026.
Mandatory Affirmative Action Removed
The VA proposes to remove paragraph 18.3(b)(6), which currently states that a recipient "must take affirmative action to overcome the effects of prior discrimination" and also authorizes affirmative action to overcome certain limiting conditions. Removing this paragraph would eliminate those regulatory affirmative-action requirements for VA funding recipients.
Employment Protections Narrowed
VA proposes to limit employment nondiscrimination in 38 CFR 18.3(d) so it applies only when the Federal financial assistance's primary objective is to provide employment. The agency also proposes to remove paragraph (d)(2), which extended employment protections to programs where employment is not the primary objective.
Lower Compliance Costs for Recipients
The VA says removing disparate-impact rules will reduce compliance costs and potential liability for entities that receive VA federal funds. The preamble notes that in FY25 eight VA discretionary grant programs supported 621 awards totaling $1,055,770,349.
Site-Selection Rule Limited to Intent
The VA proposes to remove the words "or effect" from 38 CFR 18.3(b)(3), so choices about the site or location of facilities would be prohibited only if made with the purpose (not the effect) of excluding people on the basis of race, color, or national origin. The change would also remove an illustrative example in Appendix B that relied on "effect" language.
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Key Dates
Department and Agencies
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