Rule2026-03314

General Provisions

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
February 19, 2026

Issuing agencies

Farm Credit Administration

Abstract

The Farm Credit Administration (FCA, we, us or our) is issuing a final rule amending FCA's business planning requirements to comply with Executive Order 14219.

Full Text

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<title>Federal Register, Volume 91 Issue 33 (Thursday, February 19, 2026)</title>
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[Federal Register Volume 91, Number 33 (Thursday, February 19, 2026)]
[Rules and Regulations]
[Pages 7817-7819]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03314]


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FARM CREDIT ADMINISTRATION

12 CFR Part 618

RIN 3052-AD65


General Provisions

AGENCY: Farm Credit Administration.

ACTION: Final rule.

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SUMMARY: The Farm Credit Administration (FCA, we, us or our) is issuing 
a final rule amending FCA's business planning requirements to comply 
with Executive Order 14219.

DATES: The regulation will become effective 30 days after publication 
in the Federal Register during which either or both houses of Congress 
are in session. Pursuant to 12 U.S.C. 2252(c)(1), FCA will publish 
notification of the effective date in the Federal Register.

FOR FURTHER INFORMATION CONTACT: 
    Technical information: Darius Hale, Senior Policy Analyst, Office 
of Regulatory Policy, (703) 883-4165, TTY (703) 883-4056.
    Legal information: Jennifer Cohn, Assistant General Counsel, Office 
of General Counsel, (703) 883-4020, TTY (703) 883-4056.

SUPPLEMENTARY INFORMATION:

I. Background

    On February 19, 2025, Executive Order (E.O.) 14219, ``Ensuring 
Lawful Governance and Implementing the President's `Department of 
Government Efficiency' Deregulatory Initiative,'' was signed by 
President Trump. The E.O. directed agencies to review all regulations 
for consistency with law and Administration policy. The E.O. specified 
seven classes of regulations that agencies, in consultation with the 
Office of Information and Regulatory Affairs (OIRA), were required to 
rescind or modify.
    FCA reviewed its regulations pursuant to E.O. 14219. Following the 
conclusion of our review, FCA identified several provisions in one 
regulation that meet one of the classes of regulations listed in E.O. 
14219. The table below summarizes our review of our regulations:

[[Page 7818]]



------------------------------------------------------------------------
           Classes of regulations              Affected FCA regulations
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i. unconstitutional regulations and          Not applicable.
 regulations that raise serious
 constitutional difficulties, such as
 exceeding the scope of the power vested in
 the Federal Government by the
 Constitution;
ii. regulations that are based on unlawful   Not applicable.
 delegations of legislative power;.
iii. regulations that are based on anything  Not applicable.
 other than the best reading of the
 underlying statutory authority or
 prohibition;
iv. regulations that implicate matters of    <bullet> Sec.
 social, political, or economic               618.8440(b)(2)(ii).
 significance that are not authorized by     <bullet> Sec.
 clear statutory authority;                   618.8440(b)(7)(iii).
                                             <bullet> Sec.
                                              618.8440(b)(8)(ii).
                                             <bullet> Sec.
                                              618.8440(c).
v. regulations that impose significant       Not applicable.
 costs upon private parties that are not
 outweighed by public benefits;.
vi. regulations that harm the national       Not applicable.
 interest by significantly and
 unjustifiably impeding technological
 innovation, infrastructure development,
 disaster response, inflation reduction,
 research and development, economic
 development, energy production, land use,
 and foreign policy objectives;
vii. regulations that impose undue burdens   Not applicable.
 on small business and impede private
 enterprise and entrepreneurship.
------------------------------------------------------------------------

    The identified regulatory provisions in Sec.  618.8440(b) meet 
class iv of E.O. 14219 because they are inconsistent with E.O. 14151, 
``Ending Radical and Wasteful Government DEI Programs and 
Preferencing,'' signed on January 20, 2025, which required the 
termination of all diversity, equity, and inclusion mandates throughout 
the Federal government. These provisions require Farm Credit System 
(System) institutions to take diversity and inclusion into account in 
their business planning.

II. Regulation Changes

    In accordance with E.O. 14219, FCA is removing or revising four 
paragraphs in Sec.  618.8440 that impose diversity and inclusion 
requirements on System institutions. Specifically, paragraph (b)(2)(ii) 
will no longer require institution business plans to assess diversity 
as a need of the board of directors. Additionally, paragraph 
(b)(7)(iii) will no longer require institution human capital plans to 
include strategies and actions to strive for diversity and inclusion 
within their workforce and management. And paragraph (b)(8)(ii) will no 
longer require institutions, in their marketing plans' strategies and 
actions to market their products and services to all eligible and 
creditworthy persons, to have specific outreach toward diversity and 
inclusion. In addition, because of the deletion of paragraph 
(b)(7)(iii), we are removing paragraph (c)(1), which requires an 
institution to report annually to its board on its progress in 
accomplishing the strategies and actions required by paragraph 
(b)(7)(iii), as a conforming change. All other requirements in Sec.  
618.8440 will remain in effect.

III. Regulatory Matters

A. Notice and Comment

    Public notice and comment are not required for this rulemaking. 
Section 553(b)(B) of the Administrative Procedure Act \1\ (APA) 
provides that when an agency for good cause finds that public notice 
and comment procedures are impracticable, unnecessary, or contrary to 
the public interest, the agency may issue a rule without providing 
notice and an opportunity for public comment. The President and the 
Office of Management and Budget (OMB) directed agencies to repeal 
regulations identified as inconsistent with E.O. 14219 without public 
notice and comment when such action is consistent with the good cause 
provision of the APA.\2\
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    \1\ 5 U.S.C. 553(b)(B).
    \2\ Presidential Memorandum, Directing the Repeal of Unlawful 
Regulations, dated April 9, 2025; OMB Memorandum M-25-36, 
Streamlining the Review of Deregulatory Actions, dated October 21, 
2025.
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    FCA determined that good cause exists to finalize these amendments 
without public notice and comment because they implement the 
requirements of E.O. 14219 by removing regulatory requirements that are 
inconsistent with E.O. 14151. Following notice and comment procedures 
would delay a repeal that is legally required and would necessitate 
expenditure of resources in service of retaining a regulation that 
cannot be lawfully enforced. Nothing that might emerge during the 
comment period could cure the inconsistency of these requirements with 
E.O. 14151 or overcome FCA's non-discretionary inability to retain or 
enforce them, and therefore notice and comment are superfluous and 
``unnecessary'' within the meaning of the APA.

B. Determinations Under Executive Order 12866 and Executive Order 14192

    The Office of Management and Budget's Office of Information and 
Regulatory Affairs has determined that this final rule is not a 
``significant regulatory action'' as defined by Section 3(f) of 
Executive Order 12866, made applicable to FCA by Executive Order 14215. 
This action is an Executive Order 14192 deregulatory action.

C. Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act,\3\ 
the FCA hereby certifies this final rule will not have a significant 
economic impact on a substantial number of small entities. Each of the 
banks in the System, considered together with its affiliated 
associations, has assets and annual income in excess of the amounts 
that would qualify them as small entities. Therefore, System 
institutions are not ``small entities'' as defined in the Regulatory 
Flexibility Act.
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    \3\ 5 U.S.C. 605(b).
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D. Congressional Review Act (CRA)

    Under the provisions of the Congressional Review Act (5 U.S.C. 801 
et seq.), the Office of Management and Budget's Office of Information 
and Regulatory Affairs has determined that this final rule is not a 
``major rule'' as the term is defined at 5 U.S.C. 804(2).

List of Subjects in 12 CFR Part 618

    Agriculture, Archives and records, Banks, Banking, Insurance, 
Reporting and recordkeeping requirements, Rural areas, Technical 
assistance.

    For the reasons stated in the preamble, the Farm Credit 
Administration amends 12 CFR part 618 as follows:

[[Page 7819]]

PART 618--GENERAL PROVISIONS

0
1. The authority citation for part 618 continues to read as follows:

    Authority:  Secs. 1.5, 1.11, 1.12, 2.2, 2.4, 2.5, 2.12, 3.1, 
3.7, 4.12, 4.13A, 4.25, 4.29, 5.9, 5.10, 5.17 of the Farm Credit Act 
(12 U.S.C. 2013, 2019, 2020, 2073, 2075, 2076, 2093, 2122, 2128, 
2183, 2200, 2211, 2218, 2243, 2244, and 2252).


0
2. Amend Sec.  618.8440 by:
0
a. Revising paragraph (b)(2)(ii);
0
b. In paragraph (b)(7)(i), adding ``and'' after the semi-colon;
0
c. In paragraph (b)(7)(ii), removing the text ``; and'' and adding a 
period in its place;
0
d. Removing paragraph (b)(7)(iii); and
0
e. Revising paragraphs (b)(8)(ii) and (c).
    The revisions read as follows:


Sec.  618.8440  Planning.

* * * * *
    (b) * * *
    (2) * * *
    (ii) Include an assessment of the needs of the board, including 
skills, based on the annual self-evaluation of the board's performance; 
and
* * * * *
    (8) * * *
    (ii) Strategies and actions to market the institution's products 
and services to all eligible and creditworthy persons within each 
market segment.
    (c) Each institution subject to paragraph (b)(8) of this section 
must report annually to its board of directors on the progress the 
institution has made in accomplishing the strategies and actions 
required by paragraph (b)(8)(ii) of this section.

Ashley Waldron,
Secretary to the Board, Farm Credit Administration.
[FR Doc. 2026-03314 Filed 2-18-26; 8:45 am]
BILLING CODE 6705-01-P


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Indexed from Federal Register on February 19, 2026.

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