Proposed Rule2026-06760

Reducing Bureaucracy and Burden for Community Services Programs

Primary source

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Published
April 8, 2026

Issuing agencies

Health and Human Services DepartmentChildren and Families Administration

Abstract

The Department of Health and Human Services, Administration for Children and Families proposes to amend the Block Grants regulations, the Individual Development Account Reserve Funds Established Pursuant to Grants for Assets for Independence regulations, and the Emergency Community Services Homeless Grant Program regulations to eliminate unnecessary or obsolete regulations. The docket on https:/ /www.regulations.gov will include a plain language summary of the NPRM as required.

Full Text

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<title>Federal Register, Volume 91 Issue 67 (Wednesday, April 8, 2026)</title>
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[Federal Register Volume 91, Number 67 (Wednesday, April 8, 2026)]
[Proposed Rules]
[Pages 17777-17780]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06760]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Part 96

Administration for Children and Families

45 CFR Parts 1000 and 1080

RIN 0970-AD41


Reducing Bureaucracy and Burden for Community Services Programs

AGENCY: Office of Community Services (OCS), Administration for Children 
and Families (ACF), Department of Health and Human Services (HHS).

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Health and Human Services, Administration 
for Children and Families proposes to amend the Block Grants 
regulations, the Individual Development Account Reserve Funds 
Established Pursuant to Grants for Assets for Independence regulations, 
and the Emergency Community Services Homeless Grant Program regulations 
to eliminate unnecessary or obsolete regulations. The docket on <a href="https://www.regulations.gov">https://www.regulations.gov</a> will include a plain language summary of the NPRM 
as required.

DATES: In order to be considered, written comments on this proposed 
rule must be received on or before May 8, 2026.

ADDRESSES: You may submit written comments, identified by docket number 
ACF-2026-0031 and/or RIN number 0970-AD41, by one of the following 
methods:
    <bullet> Federal eRulemaking Portal: Go to <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Follow the instructions for submitting comments.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#155170677072607974617c7a7b557476733b7d7d663b727a63"><span class="__cf_email__" data-cfemail="185c7d6a7d7f6d74796c71777658797b7e3670706b367f776e">[email&#160;protected]</span></a>. Include the docket number 
ACF-2026-0031 and/or RIN number 0970-AD41 in the subject line of the 
message.
    Instructions: All submissions received must include the agency name 
and docket number or RIN number for this rulemaking. All comments 
received are a part of the public record and will be posted for public 
viewing on <a href="http://www.regulations.gov">www.regulations.gov</a>, without change. Please be advised that 
the substance of the comments and the identity of individuals or 
entities submitting the comments will be subject to public disclosure.

FOR FURTHER INFORMATION CONTACT: Adam N. Jones, Deputy Chief of Staff, 
Immediate Office of the Assistant Secretary, Administration for 
Children and Families, Department of Health and Human Services, 
Washington, DC 202-417-0115 or <a href="/cdn-cgi/l/email-protection#7b3f1e091e1c0e171a0f1214153b1a181d55131308551c140d"><span class="__cf_email__" data-cfemail="6b2f0e190e0c1e070a1f0204052b0a080d45030318450c041d">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Statutory Authority

    This proposed regulation is being issued under the authority 
granted to the Secretary of Health and Human Services by Title XX of 
the Social Security Act, as amended (42 U.S.C. 1397 et seq.), the 
Community Services Block Grant Act (42 U.S.C. 9901 et seq.), the Low 
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.), the 
Assets for Independence Act (42 U.S.C. 604 note), and Title VII, 
Subtitle D of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11461 et seq.).

II. Background

    45 CFR part 96, ``Block Grants'' is a comprehensive regulatory 
framework established under the Omnibus Budget Reconciliation Act of 
1981 (Pub. L. 97-35) that governs the administration of multiple 
federal block grant programs administered by the Department of Health 
and Human Services. Originally published on July 6, 1982, this 
regulation applies to seven major block grant programs: Community 
Services Block Grant (CSBG), Preventive Health and Health Services, 
Community Mental Health Services (MHBG), Substance Use Prevention, 
Treatment, and Recovery Services SUBG), Maternal and Child Health 
Services, Social Services Block Grant (SSBG), and Low-Income Home 
Energy Assistance Program (LIHEAP).
    Part 96 establishes uniform procedures for grant applications, 
awards, payments, financial management, audit requirements, and 
enforcement mechanisms across these programs. It includes specific 
provisions for financial management requirements (Subpart C), direct 
funding of Indian tribes and tribal organizations (Subpart D), and 
enforcement procedures including complaint resolution and hearing 
processes (Subparts E and F). The regulation also contains program-
specific requirements for each block grant, such as the SSBG annual 
reporting requirements using uniform service definitions (Subpart G) 
and LIHEAP weatherization waivers and leveraging incentive programs 
(Subpart H).
    45 CFR part 1000, ``Individual Development Account Reserve Funds 
Established Pursuant to Grants for Assets for Independence'' is a 
focused regulation published on September 25, 2001, that governs the 
Assets for Independence (AFI) Program administered by ACF's OCS. This 
regulation establishes requirements for reserve funds that qualified 
entities must maintain when operating Individual Development Account 
(IDA) programs under federal AFI grants, which were last issued in FY 
2016.
    Unfunded after FY 2016, IDAs were matched savings accounts that 
assisted low-income individuals in building assets for specific 
purposes such as homeownership, postsecondary education, or small 
business development. The regulation defines key terms including 
``Individual Development Account,'' ``Qualified Entity'' (which may 
include nonprofit organizations, state/local government agencies, 
tribal governments, low-income credit unions, or community development 
financial institutions), and ``Reserve Fund.'' It requires that no less 
than 85 percent of federal grant funds in the reserve fund be used as 
matching contributions for Individual Development Accounts, and 
subjects these funds to HHS uniform administrative requirements under 2 
CFR 200.334 through 200.338.
    45 CFR part 1080, ``Emergency Community Services Homeless Grant 
Program'' was established on February 9, 1989, under Title VII, 
Subtitle D of the Stewart B. McKinney Homeless Assistance Act (Pub. L. 
100-77) and was administered by ACF's OCS. This regulation governed 
emergency grants to states and Indian tribes to provide comprehensive 
services to people experiencing homelessness. Funds were allocated to 
states using the Community Services Block Grant Act formula (42 U.S.C. 
9903(a) and (b)), with at least 1.5 percent set aside for direct grants 
to Indian tribes. The regulation specifies that at least 95 percent of 
state allocations must be awarded to community action agencies, migrant 
and seasonal farmworker organizations, and other eligible entities. The 
program was repealed by the Workforce Investment Act of 1998 (Pub. L. 
105-220, title I, Sec.  199(b)(1)).

III. Executive Summary

    This NPRM proposes to rescind multiple regulations that are either 
unnecessary or wholly obsolete. These rescissions would impact states, 
territories, and tribal lead agencies. The regulations contained in 
this NPRM to be rescinded and reserved can be

[[Page 17778]]

categorized into three groups: those that are duplicative, those that 
are better suited as a different type of sub-regulatory format, and 
those that are obsolete.
    The duplicative regulations are those that exist yet, carry no 
impact as the authority and requirements stated in the regulation exist 
or are stated elsewhere such as in statute. This renders the language 
found in the regulation to be either duplicative or otherwise generally 
unnecessary.
    The regulations that are better suited as a different format, i.e., 
as a sub-regulatory document, are those that generally read like a 
Frequently Asked Questions document or are overly prescriptive and 
carry technical details that belong in programmatic instruction. These 
documents are being proposed to be rescinded in order to allow them to 
be published in the more appropriate format.
    Finally, obsolete regulations are those that are outdated. This 
includes regulations that refer to grant programs that are no longer 
funded, practices that are no longer followed, or are otherwise no 
longer relevant.

Effective Date

    ACF expects all provisions included in the proposed rule, if 
finalized, to become effective 30 days from the date of publication of 
the final rule.

Severability

    The provisions of this NPRM, once it becomes final, are intended to 
be severable, such that, in the event a court were to invalidate any 
particular provision or deem it to be unenforceable, the remaining 
provisions would continue to be valid. The changes address a variety of 
issues relevant to OCS. None of the provisions contained herein are 
central to an overall intent of the proposed rule, nor are any 
provisions dependent on the validity of other, separate provisions.

IV. Discussion of Proposed Changes

45 CFR Part 96 Block Grants

Subpart A--Introduction
Sec.  96.3 Information Collection Approval Numbers
    This Section identifies information collection approval numbers 
under the Paperwork Reduction Act that pertain, or at one time 
pertained, to block grants. This Section is not needed in regulation as 
the language does not state any requirement imposed on grantees, but 
rather serves, or served, as a reference guide. According to the Office 
of Information and Regulatory Affairs (OIRA) Inventory of Currently 
Approved Information Collections (March 2, 2026), available online at 
<a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>, only one of the listed 
approval numbers, for the Preventive Health and Health Services Block 
Grant, is current. For the one information collection that is current, 
the removal of this Section does not affect grantees' obligation to 
comply with the information collection because the collection is still 
required under the authorizing statute and other provisions of Part 96.
Subpart G--Social Services Block Grants
Sec.  96.70 Scope
    This section clarifies that Subpart G of Part 96 is specific to the 
SSBG program only. This section is proposed for removal because it is 
unnecessary. We believe the title of the Subpart and context of the 
provisions therein provide sufficient basis to establish that the 
provisions apply to the SSBG program alone. The removal will eliminate 
unnecessary regulatory text without affecting program operations or 
clarity.
Sec.  96.72 Transferability of Funds
    This section is proposed for removal as it contains provisions that 
are duplicative of statutory language found at 42 U.S.C. 1397a(d). As 
such, this Section is not needed and is proposed for removal. This 
removal will not impact the operation of any block grant program.
Subpart H--Low-Income Home Energy Assistance Program
Sec.  96.80 Scope
    This section clarifies that Subpart H of Part 96 is specific to 
LIHEAP only. This section is proposed for removal because it is 
unnecessary. We believe the title of the Subpart and context of the 
provisions therein provide sufficient basis to establish that the 
provisions apply to the LIHEAP program alone. The removal will 
eliminate unnecessary regulatory text without affecting program 
operations or clarity.
Sec.  96.87 Leveraging Incentive Program
    This Section sets forth procedures for implementing and 
administering the Leveraging Incentive Program which provides benefits 
and enhancements to grantees that utilize other sources of funds for 
energy assistance for low-income individuals. This Section is not 
needed in regulation as the program is authorized by 42 U.S.C. 8626a, 
which provides sufficient authority alone to implement the program. 
Furthermore, this program has not been utilized by the Secretary in a 
decade. The removal of the Section will not prohibit the program from 
being available to the Secretary as it is still authorized in statute.
Subpart K--Transition Provisions
Sec.  96.110 Scope
    This Section details the scope of Subpart K, which applies to the 
community services, preventative health and health services, alcohol 
and drug abuse and mental health services, and maternal and child 
health services block grants. This Section is not needed in regulation 
as it refers to a transition period pertaining to the closure of the 
Community Services Administration and the implementation of the Block 
Grant Program that began on October 1, 1981. The transition has long 
since ended and therefore these regulations are no longer necessary and 
are proposed to be removed. As this Section is obsolete, there will be 
no impact to any of the block grant programs.
Sec.  96.111 Continuation of Pre-Existing Regulations
    This Section details that the regulations promulgated by HHS and 
the Community Services Administration will remain in place until new 
regulations can be promulgated by HHS reflecting the transition period 
pertaining to the closure of the Community Services Administration and 
the implementation of the Block Grant Program that began on October 1, 
1981. The transition has long since ended and therefore these 
regulations are no longer necessary and are proposed to be removed. As 
this Section is obsolete, there will be no impact on any of the block 
grant programs.
Sec.  96.112 Community Services Block Grant
    This Section details a couple of components related to the 
Community Services Block Grant (CSBG), including provisions allowing 
flexibility for FY 1981 and penalties specific to FY 1982 and 1983. 
This Section is not needed in regulation as it refers to a transition 
period pertaining to the closure of the Community Services 
Administration and the implementation of the Block Grant Program that 
began on October 1, 1981. The transition has long since ended and 
therefore these regulations are no longer necessary and are proposed to 
be removed. As this Section is obsolete, there will be no impact on any 
of the block grant programs.

[[Page 17779]]

Appendix B to Part 96--SSBG Reporting Form and Instructions
    Appendix B refers to the process and format for submitting the SSBG 
Reporting Form. This Appendix is not needed in regulation as it is out 
of date and refers to the submission of documentation on PC diskettes 
on Lotus 1-2-3, a system that ceased service in 2014. The Appendix also 
provides contact information for two specific employees for whom 
grantees should contact if they are in need of technical assistance, 
neither contact number reaches the stated individuals. As the 
information in this Appendix is out of date, and not useful, it is 
proposed for removal. This removal will not impact the operation of any 
block grant program.

45 CFR Part 1000 Individual Development Account Reserve Funds 
Established Pursuant to Grants for Assets for Independence

    Part 1000 which is inclusive of 45 CFR parts 1000.1, 1000.2, and 
1000.3, refers to the Individual Development Account Reserve funds 
which was a program funded from 1999 to 2016 pursuant to the Grants for 
Assets for Independence. However, as this program distributed the last 
remaining funds of its five-year projects a decade ago, this program is 
now defunct. As such, the regulations do not need to remain on the 
books for an unfunded project. Thus, this proposed rule seeks to 
eliminate this part.

45 CFR Part 1080 Emergency Community Services Homeless Grant Program

    Part 1080 which is inclusive of 45 CFR parts 1080.1, 1080.2, 
1080.3, 1080.4, 1080.5, 1080.6, 1080.7, 1080.8, and 1080.9, refers to 
the Emergency Community Services Homeless Grant Program which was 
created following the McKinney Homeless Assistance Act of 1987 and was 
administered for 12 years until 1999. It was replaced when the 
Workforce Investment Act of 1998 was passed into law, effectively 
ending the program. Nonetheless, the regulations still remain on the 
books yet have no practical impact. Thus, due to the regulation part 
being wholly obsolete, this rulemaking proposes to rescind part 1080.

V. Regulatory Process Matters

Paperwork Reduction Act

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq., as 
amended) (PRA), all Departments are required to submit to the Office of 
Management and Budget (OMB) for review and approval any reporting or 
recordkeeping requirements inherent in a proposed or final rule. This 
NPRM does not contain any information requiring OMB approval under the 
PRA and, therefore, will not create any new paperwork burdens or modify 
existing burdens subject to OMB review.

Executive Order 13132

    Executive Order 13132 requires federal agencies to consult with 
State and local government officials if they develop regulatory 
policies with federalism implications. Federalism is rooted in the 
belief that issues that are not national in scope or significance are 
most appropriately addressed by the level of government close to the 
people. This proposed rule would not have substantial direct impact on 
the States, on the relationship between the federal government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. This NPRM would not pre-empt State law. 
The changes proposed in the NPRM are removing unnecessary and obsolete 
regulations from OCS rules. Therefore, in accordance with section 6 of 
Executive Order 13132, it is determined that this action does not have 
sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement.

Assessment of Federal Regulations and Policies on Families

    Assessment of Federal Regulations and Policies on Families Section 
654 of the Treasury and General Government Appropriations Act of 1999 
(Pub. L. 105-277) requires federal agencies to determine whether a 
policy or regulation may negatively affect family well-being. If the 
agency determines a policy or regulation negatively affects family 
well-being, then the agency must prepare an impact assessment 
addressing seven criteria specified in the law. HHS believes it is not 
necessary to prepare a family policymaking assessment because the 
actions proposed in this NPRM will not have any impact on the autonomy 
or integrity of the family as an institution.

VI. Regulatory Impact Analysis

    We have examined the impacts of the proposed rule under Executive 
Order 12866, Executive Order 13563, Executive Order 14192, the 
Regulatory Flexibility Act (5 U.S.C. 601-612), and the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4).
    Executive Orders 12866 and 13563 direct us to assess all benefits 
and costs of available regulatory alternatives and, when regulation is 
necessary, to select regulatory approaches that maximize net benefits. 
Rules are ``significant'' under Executive Order 12866 Section 3(f)(1) 
if they ``have an annual effect on the economy of $100 million or more; 
or adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local or tribal governments or 
communities.'' Executive Order 14192 requires that any new incremental 
costs associated with significant new regulations ``shall, to the 
extent permitted by law, be offset by the elimination of existing costs 
associated with at least ten prior regulations.'' The Office of 
Information and Regulatory Affairs (OIRA) has determined that this 
proposed rule is not a significant action under Executive Order 12866 
Section 3(f). This analysis indicates that the proposed rule, if 
finalized, would be a deregulatory action as defined by Section 3 of 
Executive Order 14192.
    The Regulatory Flexibility Act (RFA) requires agencies to consider 
the impact of their regulatory proposals on small entities. Because 
this is simply repealing obsolete and unnecessary language, we certify 
that the proposed rule would not have a significant economic impact on 
a substantial number of small entities.
    The Unfunded Mandates Reform Act of 1995 (UMRA) generally requires 
that each agency conduct a cost-benefit analysis; identify and consider 
a reasonable number of regulatory alternatives; and select the least 
costly, most cost effective, or least burdensome alternative that 
achieves the objectives of the rule before promulgating any proposed or 
final rule that includes a Federal mandate that may result in 
expenditures of more than $100 million (adjusted for inflation) in at 
least one year by State, local, and tribal governments, in the 
aggregate, or by the private sector. Each agency issuing a rule with 
relevant effects over that threshold must also seek input from State, 
local, and tribal governments. The current threshold after adjustment 
for inflation is $193 million, using the most current (2025) Implicit 
Price Deflator for the Gross Domestic Product. This proposed rule would 
not result in an expenditure in any year that meets or exceeds this 
amount.

VII. Tribal Consultation Statement

    Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments, requires agencies to consult with Indian tribes 
when regulations have substantial direct effects on one or more Indian 
tribes, on

[[Page 17780]]

the relationship between the Federal government and Indian tribes, or 
on the distribution of power and responsibilities between the Federal 
Government and Indian tribes. The discussion in section IV of the 
preamble serves as the tribal impact statement. We intend to notify 
tribal lead agencies about the opportunity to provide comment on the 
NPRM no later than the day of publication.

List of Subjects

45 CFR Part 96

    Administrative practice and procedure, Aged, Alcohol abuse, Child 
welfare, Community development, Community development block grants, 
Drug abuse, Energy, Grant programs--energy, Grant programs--health, 
Grant programs--Indians, Grant programs--social programs, Health, 
Indians, Individuals with disabilities, Low and moderate income 
housing, Maternal and child health, Reporting and recordkeeping 
requirements, Social security.

45 CFR Part 1000

    Grant programs--social programs, Reporting and recordkeeping 
requirements.

45 CFR Part 1080

    Community action programs, Grant programs--social programs, 
Homeless, Indians, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Department of Health 
and Human Services proposes to amend 45 CFR subtitles A and B as 
follows:

PART 96--BLOCK GRANTS

0
1. The authority citation for part 96 continues to read as follows:

    Authority: 31 U.S.C. 1243 note, 7501-7507; 42 U.S.C. 300w et 
seq., Sec.  300x et seq., Sec.  300y et seq., Sec.  701 et seq., 
Sec.  8621 et seq., Sec.  9901 et seq., Sec.  1397 et seq., 5 U.S.C. 
301.


Sec.  96.3  [Removed and Reserved]

0
2. Remove and reserve Sec.  96.3.


Sec.  96.70  [Removed and Reserved]

0
3. Remove and reserve Sec.  96.70.


Sec.  96.72  [Removed and Reserved]

0
4. Remove and reserve Sec.  96.72.


Sec.  96.80  [Removed and Reserved]

0
5. Remove and reserve Sec.  96.80.


Sec.  96.87  [Removed and Reserved]

0
6. Remove and reserve Sec.  96.87.


Sec.  96.110  [Removed and Reserved]

0
7. Remove and reserve Sec.  96.110.


Sec.  96.111  [Removed and Reserved]

0
8. Remove and reserve Sec.  96.111.


Sec.  96.112  [Removed and Reserved]

0
9. Remove and reserve Sec.  96.112.

Appendix B to Part 96 [Removed and Reserved]

0
10. Remove and reserve appendix B to part 96.

PART 1000--[REMOVED AND RESERVED]

0
11. Under the authority of Title XX of the Social Security Act, as 
amended (42 U.S.C. 1397 et seq.), the Community Services Block Grant 
Act (42 U.S.C. 9901 et seq.), the Low Income Home Energy Assistance Act 
of 1981 (42 U.S.C. 8621 et seq.), the Assets for Independence Act (42 
U.S.C. 604 note), and Title VII, Subtitle D of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11461 et seq.), remove and reserve 
part 1000.

PART 1080--[REMOVED AND RESERVED]

0
12. Under the authority of Title XX of the Social Security Act, as 
amended (42 U.S.C. 1397 et seq.), the Community Services Block Grant 
Act (42 U.S.C. 9901 et seq.), the Low Income Home Energy Assistance Act 
of 1981 (42 U.S.C. 8621 et seq.), the Assets for Independence Act (42 
U.S.C. 604 note), and Title VII, Subtitle D of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11461 et seq.), remove and reserve 
part 1080.

Robert F. Kennedy, Jr.,
Secretary, Department of Health and Human Services.
[FR Doc. 2026-06760 Filed 4-7-26; 8:45 am]
BILLING CODE 4184-24-P


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