Rule2026-00696
Updating and Streamlining the Regulations Governing the Handling and Settlement of Claims Under the Federal Tort Claims Act
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 15, 2026
Effective
January 15, 2026
Issuing agencies
Commerce Department
Abstract
By this rule, the Department of Commerce ("Department") is amending its regulations governing the administrative handling and settlement of claims under the Federal Tort Claims Act ("FTCA"). This rule updates outdated references to a position that no longer exists within the Department, eliminates redundant restatements of sections of the FTCA and other applicable authorities, consolidates and simplifies the framework governing the issuance of supplementary regulations, and removes some unnecessary and inconsequential language. This action is necessary to update and streamline the Department's regulations governing the handling and settlement of FTCA claims and to ensure that such regulations conform with the underlying statutory text. The intended effect is to promote accuracy and clarity for the public and to ensure that the Department's regulations are both statutorily proper and efficient.
Full Text
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<title>Federal Register, Volume 91 Issue 10 (Thursday, January 15, 2026)</title>
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[Federal Register Volume 91, Number 10 (Thursday, January 15, 2026)]
[Rules and Regulations]
[Pages 1677-1680]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00696]
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DEPARTMENT OF COMMERCE
15 CFR Part 2
[Docket No. 260107-0007]
RIN 0605-AA83
Updating and Streamlining the Regulations Governing the Handling
and Settlement of Claims Under the Federal Tort Claims Act
AGENCY: Office of the Secretary, Department of Commerce.
ACTION: Final rule.
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SUMMARY: By this rule, the Department of Commerce (``Department'') is
amending its regulations governing the administrative handling and
settlement of claims under the Federal Tort Claims Act (``FTCA''). This
rule updates outdated references to a position that no longer exists
within the Department, eliminates redundant restatements of sections of
the FTCA and other applicable authorities, consolidates and simplifies
the framework governing the issuance of supplementary regulations, and
removes some unnecessary and inconsequential language. This action is
necessary to update and streamline the Department's regulations
governing the handling and settlement of FTCA claims and to ensure that
such regulations conform with the underlying statutory text. The
intended effect is to promote accuracy and clarity for the public and
to ensure that the Department's regulations are both statutorily proper
and efficient.
DATES: The rule is effective January 15, 2026.
FOR FURTHER INFORMATION CONTACT: Daniel Sweeney, Senior Counsel, Office
of the General Counsel, at (202) 482-1395.
SUPPLEMENTARY INFORMATION:
I. Executive Summary
The Department is amending its regulations at 15 CFR part 2, which
govern the handling and settlement of FTCA claims pursuant to 28 U.S.C.
2671-2680, as amended by Public Law 89-506, 80 Stat. 306. Specifically,
the Department is amending Part 2 by updating the references to the
``Assistant General Counsel for Finance and Litigation'' in Sec. Sec.
2.4(b), 2.5(a), and 2.5(b), and by removing Sec. Sec. 2.2, 2.3(c),
2.4(c), 2.5(d), and 2.7. The updates will promote accuracy and clarity,
and the removals will reduce regulatory complexity and clutter by
eliminating language that is redundant, inconsequential, and/or
otherwise unwarranted. The removals will also ensure proper conformity
and alignment with underlying statutory text by removing regulatory
elaboration that is neither clearly required nor clearly authorized by
such text. The Department is making these revisions to clarify and
simplify the regulatory requirements and processes set forth in Part 2,
and to ensure that such requirements and processes are both statutorily
proper and efficient.
II. Background
A. Regulatory History
The Department is amending its regulations at 15 CFR part 2, which
pertain to the handling and settlement of claims under the FTCA. The
FTCA grants private parties the ability to bring suit and seek
compensation for torts committed by federal employees acting with the
scope of their employment. As relevant, 28 U.S.C. 2672 provides that
``[t]he head of each Federal agency or his designee, in accordance with
regulations prescribed by the Attorney General, may consider,
ascertain, adjust, determine, compromise, and settle any claim for
money damages against the United States for injury or loss of property
or personal injury or death caused by the negligent or wrongful act or
omission of any employee of the agency while acting within the scope of
his office or employment.'' Consistent with 28 U.S.C. 2672, the
regulations at 15 CFR part 2 establish the Department's framework for
the delegation of authority to settle or deny such claims and the
procedures for the administrative adjudication of such claims. See 15
CFR 2.1(a).
The Department originally established the procedures in this Part 2
through a final rule published on March 7, 1967 (32 FR 3769). That rule
was promulgated to implement the FTCA, as amended by Public Law 89-506,
which required claimants to present a claim to the appropriate Federal
agency for administrative adjudication before filing suit in court. The
original 1967 rule
[[Page 1678]]
delegated the authority to settle or deny FTCA claims to specific
Department officials and required that all procedures be guided by the
comprehensive regulations issued by the Attorney General, found at 28
CFR part 14.
The Department has amended its FTCA regulations twice since their
original promulgation. On July 11, 1983, the Department published a
final rule (48 FR 31636) that revised the regulations to reflect an
organizational change, transferring the primary responsibility for
handling FTCA claims from the Assistant Secretary for Administration to
the General Counsel. Thereafter, in a final rule published on June 2,
1998 (63 FR 29945), the Department amended the procedures again to
conform with contemporary practice, organizational shifts, and
statutory changes. The 1998 amendment transferred procedural
responsibilities to the Assistant General Counsel for Finance and
Litigation, removed several outdated provisions including a
departmental requirement for an annual report, and updated the
regulations to be consistent with amendments to the FTCA made by Public
Law 100-694, which expanded the personal immunity of federal employees
acting within the scope of their employment.
B. Description of the Regulations in 15 CFR Part 2
Part 2 consists of seven regulatory sections: Sec. Sec. 2.1-2.7.
Section 2.1 states the purpose of Part 2 as being ``to delegate
authority to settle or deny claims under the [FTCA], and to establish
procedures for the administrative adjudication of such claims accruing
on or after January 18, 1967.'' 15 CFR 2.1(a).
Section 2.2 identifies and summarizes applicable provisions of law
and other regulations thereunder. Specifically, paragraph (a) consists
of quoted language from 28 U.S.C. 2672; paragraph (b) consists of
quoted language from 28 U.S.C. 2675(a); paragraph (c) summarizes 28
U.S.C. 2678; paragraph (d) consists of quoted language from 28 U.S.C.
2401(b); and paragraph (e) explains that the Attorney General has
issued regulations pursuant to 28 U.S.C. 2672 at 28 CFR part 14. 15 CFR
2.2(a)-(e).
Section 2.3 pertains to the delegation of authority. Paragraph (a)
provides that ``[t]he General Counsel is hereby named as the designee
of the Secretary of Commerce with respect to tort claims filed under
section 2672 of Title 28, U.S. Code, as described in Sec. 2.2, with
authority to act on such claims as provided in said section 2672,
including denial thereof.'' 15 CFR 2.3(a). Paragraph (b) provides that
``[a]uthority delegated under this section may, with the approval of
the General Counsel, be redelegated to other designees.'' 15 CFR
2.3(b). And paragraph (c) states that ``[s]ettlement or denial of any
claim under this part is final for the Department of Commerce.'' 15 CFR
2.3(c).
Section 2.4 pertains to the procedure for filing claims. Paragraph
(a) states that such procedure shall be pursuant to Sec. Sec. 14.2,
14.3, and 14.4 of the regulations set forth by the Attorney General at
28 CFR part 14. 15 CFR 2.4(a). Paragraph (b) states that claims shall
be filed with the Department's Assistant General Counsel for Finance
and Litigation, and that any claims filed elsewhere in the Department
``shall immediately be recorded and transmitted to the Assistant
General Counsel for Finance and Litigation.'' 15 CFR 2.4(b)-(c).
Section 2.5 establishes administrative procedures for the
adjudication and settlement of claims. In particular, it sets forth
certain procedures for the Assistant General Counsel for Finance and
Litigation to follow, see 15 CFR 2.5(a)-(c), and it states that
``[d]esignees hereunder are responsible for the control over and
expeditious handling of claims, bearing in mind the applicable
statutory time limitations for adjudications of claims,'' 15 CFR
2.5(d).
Section 2.6 pertains to the payment of claims. It provides that
``[w]hen an award is made, the file on the case shall be transmitted to
the appropriate fiscal office for payment by the Department or for
transmittal for payment as prescribed by Sec. 14.10'' of the Attorney
General's regulations at 28 CFR part 14. 15 CFR 2.6. Section 2.6
further provides that ``[p]rior to payment[,] appropriate releases
shall be obtained, as provided in said section.'' Id.
Lastly, Sec. 2.7 pertains to the issuance of supplementary
regulations. Paragraph (a) provides that ``[t]he Assistant General
Assistant General Counsel for Finance and Litigation may from time to
time issue such supplementary regulations or instructions as he/she
deems appropriate to carry out the purpose of this part.'' 15 CFR
2.7(a). And paragraph (b) provides that designees may issue regulations
or instructions with the approval of the Assistant General Counsel for
Finance and Litigation. 15 CFR 2.7(b).
III. Discussion
The Department is amending its regulations pertaining to the
administrative handling and settlement of claims under the FTCA,
located at 15 CFR part 2. The Department is amending said regulations
to update the outdated references to the ``Assistant General Counsel
for Finance and Litigation,'' and to remove several provisions that are
redundant, statutorily unnecessary, and/or otherwise unwarranted. The
Department is making these amendments to reduce regulatory complexity
and to promote accuracy, clarity, statutory conformity, and efficiency.
The provisions being updated are Sec. Sec. 2.4(b), 2.5(a), and 2.5(b),
and the provisions being removed are Sec. Sec. 2.2, 2.3(c), 2.4(c),
2.5(d), and 2.7. The reasoning for each of these amendments is
explained below.
Updating the References to an Outdated Position
First, the Department is updating the references in Part 2 to the
``Assistant General Counsel for Finance and Litigation,'' see 15 CFR
2.4(b), 2.5(a)-(b), as that position does not currently exist within
the Department. Instead, the appropriate official is now the Assistant
General Counsel for Employment, Litigation and Information. The
Department is amending Part 2 accordingly, to ensure that its
regulations are accurate and up-to-date.
Removing Redundant Restatements of Other Authorities
Next, the Department is removing certain provisions that restate
other authorities and lack a sufficient, independent justification.
Section 2.2, for instance, provides a redundant overview certain
sections of the FTCA and regulations issued thereunder at 28 CFR part
14. 15 CFR 2.2(a)-(e). While it is of course helpful to include in Part
2 some reference to those related and applicable authorities,
Sec. Sec. 2.1, 2.3(a), and 2.4(a) already refer to such authorities.
See 15 CFR 2.1, 2.3(a), 2.4(a). The Department is satisfied that
Sec. Sec. 2.1, 2.3(a), and 2.4(a) provide readers with adequate notice
of the FTCA and 28 CFR part 1, and it is the Department's policy to
encourage readers to consult other authorities directly. In particular,
reprinting provisions of the FTCA in the Code of Federal Regulations
serves no practical purpose, as those statutory provisions are legally
binding on their own and are readily accessible to the public. By
simply reprinting statutory language in the Code of Federal
Regulations, agencies risk issuing regulations that may become outdated
or inconsistent if Congress amends the underlying statute. The
Department therefore considers Sec. 2.2 to be redundant and
unwarranted.
The Department considers Sec. 2.3(c) to also be redundant and
unwarranted. That provision states that a ``settlement
[[Page 1679]]
or denial of any claim under this part is final for the Department of
Commerce.'' 15 CFR 2.3(c). This language is duplicative of 28 U.S.C.
2672, which provides that ``any . . . determination'' on a claim for
money damages against the United States under the FTCA ``shall be final
and conclusive on all officers of the Government, except when procured
by means of fraud.'' Because Sec. 2.3(c) does not add any new
substantive dimension beyond what 28 U.S.C. 2672 conveys, the
Department considers Sec. 2.3(c) to be unnecessary, a potential source
of confusion, and appropriate for removal.
Removing Provisions Authorizing the Delegated Issuance of Supplementary
Regulations
Next, the Department is removing Sec. 2.7, which authorizes the
Assistant General Counsel and other designees to issue their own
supplementary regulations and instructions. As a legal matter, the text
of the FTCA does not clearly require or authorize such a provision; the
absence of a statutory mandate, alone, warrants reconsideration under
the Department's broader deregulatory effort. As a matter of policy,
the Department is of the view that Sec. 2.7 creates a risk of
fragmented and inconsistent regulations and internal directives. Given
these considerations, the Department has determined that Sec. 2.7
should be removed.
Removing Minor and Unnecessary Language
Lastly, the Department is removing two relatively minor and
unnecessary provisions for the purpose of streamlining Part 2. Section
2.4(c) provides that, ``[i]f a claim is filed elsewhere in the
Department,'' meaning not with the appropriate Assistant General
Counsel, ``[the claim] shall be immediately recorded and transmitted''
to that Assistant General Counsel. 15 CFR 2.4(c). Similarly, Sec.
2.5(d) states that ``[d]esignees hereunder are responsible for the
control over and expeditious handling of claims, bearing in mind the
applicable statutory time limitations for adjudications of claims.'' 15
CFR 2.5(d). Both of these provisions concern internal administrative
requirements and expectations; neither is necessary or especially
helpful to include in Part 2 for the public. The Department has
accordingly determined that both Sec. Sec. 2.4(c) and 2.5(d) are
appropriate for removal.
IV. Regulatory Certifications
A. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b)(B), the Department finds good cause to
waive the prior notice and opportunity for public participation
requirements of the Administrative Procedure Act for this final rule.
The Department considers this rule to be uncontroversial, and has
determined that prior notice and opportunity for public participation
is unnecessary, because this rule only updates outdated references and
removes language that is redundant, not clearly required or authorized
by statute, inconsequential, and/or otherwise unwarranted; public
participation would not justify the continued inclusion of any of the
affected language in 15 CFR part 2. For the same reasons, the
Department has determined that delaying the effectiveness of these
amendments would be contrary to the public interest. The language being
removed by this rule contributes to regulatory complexity, poses a risk
of confusion, and exceeds the bounds of what is clearly required or
authorized by the underlying statute; its removal will immediately
benefit the public at little to no cost. The Department therefore finds
good cause to waive the public notice and comment period under
553(b)(B) and to waive the 30-day delay in effectiveness under 553(d).
B. Executive Orders 12866, 14192, 13132
The Office of Management and Budget has determined this rule [is
not] significant pursuant to Executive Order (E.O.) 12866. This rule is
an E.O. 14192 deregulatory action. This rule does not contain policies
having federalism implications as the term is defined in E.O. 13132.
C. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public participation are not required to be given for this rule by 5
U.S.C. 553(b)(B), the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly,
no regulatory flexibility analysis is required, and none has been
prepared.
D. Paperwork Reduction Act
This rule will not impose additional reporting or recordkeeping
requirements under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501
et seq.
List of Subjects in 15 CFR Part 2
Administrative practice and procedure, Authority delegations
(Government agencies), Claims.
Dated: January 13, 2026.
Paul Dabbar,
Deputy Secretary of Commerce.
Accordingly, for the reasons set forth above, part 2 of title 15 of
the Code of Federal Regulations is amended as follows:
PART 2--PROCEDURES FOR HANDLING AND SETTLEMENT OF CLAIMS UNDER THE
FEDERAL TORT CLAIMS ACT
0
1. The authority citation for part 2 continues to read as follows:
Authority: 28 U.S.C. 2672
Sec. 2.2 [Removed and Reserved]
0
2. Remove and reserve Sec. 2.2.
Sec. 2.3 [Amended]
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3. Remove and reserve Sec. 2.3(c).
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4. Revise Sec. 2.4 to read as follows:
Sec. 2.4 Procedure for filing claims.
(a) The procedure for filing and the contents of claims shall be
pursuant to Sec. Sec. 14.2, 14.3, and 14.4 of the Regulations (28 CFR
part 14).
(b) Claims shall be filed with the Assistant General Counsel for
Employment, Litigation and Information, Department of Commerce,
Washington, DC 20230.
(c) [Reserved]
0
5. Revise Sec. 2.5 to read as follows:
Sec. 2.5 Adjudication and settlement of claims.
(a) Upon receipt of a claim by the Assistant General Counsel for
Employment, Litigation and Information, the time and date of receipt
shall be recorded. The Assistant General Counsel may, after recording
the claim, transmit it to the Departmental office or primary operating
unit involved in the claim and request that an investigation be
conducted. The appropriate Departmental office or primary operating
unit shall designate an official to conduct the investigation, who
shall prepare a file, obtain additional information as necessary, and
prepare for the Assistant General Counsel's signature a proposed award
or denial of the claim. If the investigation capabilities of the office
or unit are insufficient for a proper and complete investigation, the
office or unit shall consult with the Departmental Office of
Investigations and Security to:
(1) Have that Office conduct the investigation; or
[[Page 1680]]
(2) Request another Federal agency to conduct the investigation as
necessary, pursuant to Sec. 14.8 of the regulations (28 CFR part 14),
all on a reimbursable basis.
(b) If the amount of the proposed award exceeds $25,000 (in which
case, approval by the Attorney General is required), or if consultation
with the Department of Justice is desired or required pursuant to Sec.
14.6 of the regulations, the Assistant General Counsel for Employment,
Litigation and Information will prepare and compile the material
required by the Department of Justice under Sec. 14.7 of the
Regulations.
(c) Denial of a claim shall be communicated as provided by Sec.
14.9 of the regulations (28 CFR part 14).
(d) [Reserved]
Sec. 2.7 [Removed and Reserved]
0
6. Remove and reserve Sec. 2.7.
[FR Doc. 2026-00696 Filed 1-14-26; 8:45 am]
BILLING CODE 3510-BW-P
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</html>Indexed from Federal Register on January 15, 2026.
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