Treasury scraps Title VI disparate-impact rules for statutory alignment and merit
Published Date: 8/3/2026
Rule
Summary
By this rule, the Department of the Treasury ("Department") amends its regulations implementing Title VI of the Civil Rights Act of 1964 ("Title VI") to eliminate disparate-impact liability. These amendments align the Department's regulations with Title VI's original public meaning, avoid constitutional concerns, reduce compliance costs, and serve the public interest. In addition, these revisions implement changes directed in the Executive order, Restoring Equality of Opportunity and Meritocracy.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
Treasury Drops Disparate-Impact Liability
Effective August 3, 2026, the Department of the Treasury rescinds portions of its Title VI regulations to eliminate disparate-impact liability. The Department states it will not pursue Title VI disparate-impact claims against its Federal-funding recipients and replaces or removes text such as 31 CFR 22.4(b)(2), 22.4(b)(6), and the phrase "or effect" in 22.4(b)(3).
Rules Now Cover Only Intentional Discrimination
The Treasury amended its Title VI rules to make clear they prohibit only intentional discrimination and not conduct that merely has a disparate impact. The revised text removes references to actions taken "with the effect" of discrimination so enforcement will focus on purposeful acts.
Affirmative-Action Language Removed
The rule removes paragraph 31 CFR 22.4(b)(6), which authorized affirmative action to "remove or overcome the consequences" of prior practices, and deletes one affirmative-action sentence in 31 CFR 22.4(c)(1). These removals eliminate regulatory text that the Department said could require or encourage race-based measures.
Employment Rule Narrowed to Jobs Programs
Treasury revised 31 CFR 22.4(c) so employment-practice nondiscrimination applies where a primary objective of the Federal financial assistance is to provide employment. The rule deletes the prior paragraph extending Title VI employment restrictions to recipients whose federal aid did not have employment as a primary objective.
Expected Lower Compliance and Enforcement Costs
The Department states this deregulatory action will decrease its enforcement costs and is anticipated to give Federal-funding recipients greater flexibility and lower compliance and investigatory costs. The Department did not provide quantified dollar estimates but cites reduced compliance burden as an intended effect.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-20429, Proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern; Withdrawal
FinCEN has decided to cancel its earlier plan to crack down on international virtual currency mixing by imposing extra rules to stop money laundering. This change means businesses dealing with virtual currencies won’t face new recordkeeping or reporting requirements from this proposal. The withdrawal takes effect on October 6, 2026, so affected companies can breathe easy for now.
2026-20430, Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets; Withdrawal
FinCEN is officially dropping a plan that would have made banks and money service businesses report and verify big digital currency transactions involving certain wallets. This means no new rules or extra paperwork for transactions over $3,000 or $10,000 involving unhosted or special foreign wallets. The withdrawal takes effect on October 6, 2026, so businesses can breathe easy and keep things as they are.
2026-20447, Transparency in Coverage
Starting soon, health plans and insurers must share clearer, easier-to-understand price info for medical services and drugs. This helps you see what in-network and out-of-network costs really look like, with more details and better updates. These changes affect most group and individual health plans and kick in with new reporting rules to make healthcare pricing more transparent and fair.
2026-20277, Federal Scholarship Tax Credit
The IRS is proposing new rules for a tax credit that rewards people who donate to groups giving scholarships for K-12 education. This affects donors, states that approve these groups, and the groups themselves. Comments are open until December 1, 2026, with a public hearing on December 15, so get ready to share your thoughts and maybe save some money on your taxes!
2026-20026, Trump Accounts
Starting September 30, 2026, the IRS is rolling out new temporary rules for Trump accounts, which work like special retirement accounts. The government will automatically set up your first Trump account, and there are new ways to contribute, including using qualified stock. These changes affect account trustees, beneficiaries, and donors, making it easier and clearer to manage and fund Trump accounts.
2026-20027, Trump Accounts
The IRS is rolling out new rules for Trump accounts, which affect trustees, beneficiaries, and donors. These rules cover how to set up accounts, automatic enrollment, and special contributions like qualified stock. Comments on these changes are open until November 30, 2026, so get ready to weigh in!
Previous / Next Documents
Previous: 2026-15686, Medicare Program; FY 2027 Hospice Wage Index and Payment Rate Update and Hospice Quality Reporting Program Requirements
This final rule updates the hospice wage index, payment rates, and aggregate cap amount for fiscal year 2027. This final rule also includes an analysis of Medicare non-hospice spending, including details regarding a hospice service and spending variation index, and finalizes the requirement that hospices provide the hospice election statement addendum to all Medicare beneficiaries at the time of hospice election. Additionally, this rule finalizes conforming changes to discharge from hospice care regulations and changes to the face-to-face encounter regulations. This final rule also includes a summary of comments received on our requests for information regarding community- based palliative care; the construction of a hospice specific wage index; and the overlap between hospice and medical aid in dying laws. Finally, this rule finalizes changes to the Hospice Quality Reporting Program.
Next: 2026-15726, Visas: Visa Bond Program
Starting August 3, 2026, the U.S. is making its Visa Bond Program permanent! If you’re applying for a B-1/B-2 visa (for business or fun), you might need to pay a bond up to $20,000 to prove you’ll follow visa rules and leave on time. This change affects travelers and consular officers, aiming to keep visa visitors honest and on schedule.