Notice2026-11050

Notice on Penalty Inflation Adjustments for Civil Monetary Penalties

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
June 3, 2026

Issuing agencies

Social Security Administration

Abstract

The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act) requires us to annually adjust the level of CMPs for inflation based on the Consumer Price Index (CPI-U) and provide notice concerning these new amounts. We are providing notice that we will continue to use the 2025 civil monetary penalty levels as applicable through January 14, 2027.

Full Text

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<title>Federal Register, Volume 91 Issue 106 (Wednesday, June 3, 2026)</title>
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[Federal Register Volume 91, Number 106 (Wednesday, June 3, 2026)]
[Notices]
[Page 33284]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11050]


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SOCIAL SECURITY ADMINISTRATION

[Docket No. SSA-2025-0684]


Notice on Penalty Inflation Adjustments for Civil Monetary 
Penalties

AGENCY: Social Security Administration.

ACTION: Notice announcing the continuance of 2025 civil monetary 
penalties (CMP) levels for calendar year 2026.

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SUMMARY: The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (2015 Act) requires us to annually adjust the 
level of CMPs for inflation based on the Consumer Price Index (CPI-U) 
and provide notice concerning these new amounts. We are providing 
notice that we will continue to use the 2025 civil monetary penalty 
levels as applicable through January 14, 2027.

FOR FURTHER INFORMATION CONTACT: Jessica Stubbs Platt, Deputy Counsel 
to the Inspector General, Room 3-ME-1, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, (410) 816-4054. For information on 
eligibility or filing for benefits, call the Social Security 
Administration's national toll-free number, 1-800-772-1213 or TTY 1-
800-325-0778, or visit the Social Security Administration's internet 
site, Social Security Online, at <a href="http://www.socialsecurity.gov">http://www.socialsecurity.gov</a>.

SUPPLEMENTARY INFORMATION: On June 27, 2016, pursuant to the 2015 
Act,\1\ we published an interim final rule to adjust the level of CMPs 
under Sections 1129 and 1140 of the Social Security Act, 42 U.S.C. 
1320a-8 and 1320b-10, respectively, with an initial ``catch-up'' 
adjustment effective August 1, 2016.\2\ We announced in the interim 
final rule that for any future adjustments, we would publish a notice 
in the Federal Register to announce the new amounts. The annual 
inflation adjustment in subsequent years must be a cost-of-living 
adjustment based on any increases in the October CPI-U data from the 
Bureau of Labor Statistics (not seasonally adjusted) each year.\3\ We 
last updated the maximum penalty amounts effective January 15, 2025.\4\
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    \1\ See Public Law 114-74; 129 Stat. 584. See also 81 FR 41438, 
<a href="https://www.federalregister.gov/documents/2016/06/27/2016-13241/penalty-inflation-adjustments-for-civil-money-penalties">https://www.federalregister.gov/documents/2016/06/27/2016-13241/penalty-inflation-adjustments-for-civil-money-penalties</a>.
    \2\ See 81 FR 41438, <a href="https://www.federalregister.gov/documents/2016/06/27/2016-13241/penalty-inflation-adjustments-for-civil-money-penalties">https://www.federalregister.gov/documents/2016/06/27/2016-13241/penalty-inflation-adjustments-for-civil-money-penalties</a>.
    \3\ See OMB Memorandum, Implementation of the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, M-16-
06, p. 1 (February 24, 2016), <a href="https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/memoranda/2016/m-16-06.pdf">https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/memoranda/2016/m-16-06.pdf</a>. See also 
81 FR 41438, <a href="https://www.federalregister.gov/documents/2016/06/27/2016-13241/penalty-inflation-adjustments-for-civil-money-penalties">https://www.federalregister.gov/documents/2016/06/27/2016-13241/penalty-inflation-adjustments-for-civil-money-penalties</a>.
    \4\ See 89 FR 105674, <a href="https://www.federalregister.gov/documents/2024/12/27/2024-30791/notice-on-penalty-inflation-adjustments-for-civil-monetary-penalties">https://www.federalregister.gov/documents/2024/12/27/2024-30791/notice-on-penalty-inflation-adjustments-for-civil-monetary-penalties</a>.
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    On April 17, 2026, the Office of Management and Budget (OMB) 
published Memorandum M-26-11, Cancellation of Penalty Inflation 
Adjustments for 2026, Regarding the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015.\5\ This Memorandum, among 
other provisions, announced to the Heads of Executive Departments and 
Agencies that due to the government shutdown in the fall of 2025,\6\ 
the Bureau of Labor Statistics was unable to produce the October 2025 
data informing the CPI-U, which is necessary to make adjustments under 
the 2015 Act. Consequently, agencies are instructed to continue using 
the 2025 CMP levels as applicable.\7\
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    \5\ See OMB Memorandum, Cancelation of Penalty Inflation 
Adjustments for 2026, Regarding the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015, M-26-11, (April 
17, 2026), <a href="https://www.whitehouse.gov/wp-content/uploads/2026/04/M-26-11-Cancellation-of-Penalty-Inflation-Adjustments-for-2026-Regarding-the-Federal-Civil-Penalties-Inflation-Adjustment-Act-Improvements-Act-of-2015.pdf">https://www.whitehouse.gov/wp-content/uploads/2026/04/M-26-11-Cancellation-of-Penalty-Inflation-Adjustments-for-2026-Regarding-the-Federal-Civil-Penalties-Inflation-Adjustment-Act-Improvements-Act-of-2015.pdf</a>.
    \6\ The federal government experienced a funding gap beginning 
on October 1, 2025--the start of FY 2026--and ending when the 
Continuing Appropriations, Agriculture. Legislative Branch, Military 
Construction and Veterans Affairs, and Extensions Act, 2026 (Pub. L. 
119-37), was signed into law on November 12, 2025. The funding gap 
resulted in a ``government shutdown'' and the furlough of employees 
who were not excepted. See The 2025 (FY2026) Government Shutdown: 
Economic Effects [verbar] <a href="http://Congress.gov">Congress.gov</a> [verbar] Library of Congress.
    \7\ See OMB Memorandum, Cancelation of Penalty Inflation 
Adjustments for 2026, Regarding the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015, M-26-11, (April 
17, 2026), <a href="https://www.whitehouse.gov/wp-content/uploads/2026/04/M-26-11-Cancellation-of-Penalty-Inflation-Adjustments-for-2026-Regarding-the-Federal-Civil-Penalties-Inflation-Adjustment-Act-Improvements-Act-of-2015.pdf">https://www.whitehouse.gov/wp-content/uploads/2026/04/M-26-11-Cancellation-of-Penalty-Inflation-Adjustments-for-2026-Regarding-the-Federal-Civil-Penalties-Inflation-Adjustment-Act-Improvements-Act-of-2015.pdf</a>.
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    Based on OMB's guidance, we will continue to apply the 2025 penalty 
levels throughout calendar year 2026 until January 14, 2027.

Mark Steffensen,
General Counsel, Social Security Administration.
[FR Doc. 2026-11050 Filed 6-2-26; 8:45 am]
BILLING CODE 4191-02-P


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Indexed from Federal Register on June 3, 2026.

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