# 2026-15720: Treasury scraps Title VI disparate-impact rules for statutory alignment and merit

2026-15720, Rescinding Portions of Department of the Treasury Title VI Regulations To Conform More Closely With the Statutory Text and To Implement an Executive Order, is a Federal Register rule from Treasury Department published 2026-08-03, effective 2026-08-03; PRIA reads it as touching household money (as of 2026-08-10).

- Canonical: https://policyrisk.com/federal-register/2026-15720
- As of: 2026-08-10
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2026-15720
- Title: Rescinding Portions of Department of the Treasury Title VI Regulations To Conform More Closely With the Statutory Text and To Implement an Executive Order
- Type: Rule
- Agencies: Treasury Department
- Citation: 91 FR 48766
- Published: 2026-08-03
- Effective: 2026-08-03
- Comments close: not stated
- Significant: no
- Touches household money: yes
- Regulation identifier numbers: 1505-AC91
- Last updated: 2026-08-10

## In one line

Treasury scraps Title VI disparate-impact rules for statutory alignment and merit

## 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.

## Effects PRIA read

- Treasury Drops Disparate-Impact Liability: benefit, medium. 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 CF…
- Rules Now Cover Only Intentional Discrimination: cost, medium. 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: benefit, medium. 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 encoura…
- Employment Rule Narrowed to Jobs Programs: mixed, medium. 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 emplo…
- Expected Lower Compliance and Enforcement Costs: benefit, medium. 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 a…

## Related documents

- [2026-20429](https://policyrisk.com/federal-register/2026-20429): Proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern;…, 2026-10-06
- [2026-20430](https://policyrisk.com/federal-register/2026-20430): Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets; Withdrawal, 2026-10-06
- [2026-20447](https://policyrisk.com/federal-register/2026-20447): Transparency in Coverage, 2026-10-06
- [2026-20277](https://policyrisk.com/federal-register/2026-20277): Federal Scholarship Tax Credit, 2026-10-02
- [2026-20026](https://policyrisk.com/federal-register/2026-20026): Trump Accounts, 2026-09-30
- [2026-20027](https://policyrisk.com/federal-register/2026-20027): Trump Accounts, 2026-09-30

## Sources
- [2026-15720 on federalregister.gov](https://www.federalregister.gov/documents/2026/08/03/2026-15720/rescinding-portions-of-department-of-the-treasury-title-vi-regulations-to-conform-more-closely-with)
- [2026-15720 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-08-03/pdf/2026-15720.pdf)

## Related
- [Previous: 2026-15686, Medicare Program; FY 2027 Hospice Wage Index and Payment Rate Update and Hospic…](https://policyrisk.com/federal-register/2026-15686)
- [Next: 2026-15726, Visas: Visa Bond Program](https://policyrisk.com/federal-register/2026-15726)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2026-15720 (as of 2026-08-10).