Rule2026-11531
Reducing Bureaucracy and Burden for Community Services Programs
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 9, 2026
Effective
August 10, 2026
Issuing agencies
Health and Human Services DepartmentChildren and Families Administration
Abstract
This Final Rule amends 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. A plain language summary of this final rule is posted at https://www.regulations.gov.
Full Text
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<title>Federal Register, Volume 91 Issue 110 (Tuesday, June 9, 2026)</title>
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[Federal Register Volume 91, Number 110 (Tuesday, June 9, 2026)]
[Rules and Regulations]
[Pages 34783-34787]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11531]
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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: Final rule.
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SUMMARY: This Final Rule amends 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. A plain language summary of this
final rule is posted at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
DATES: This rule is effective August 10, 2026.
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#0d49687f686a78616c796462634d6c6e6b2365657e236a627b"><span class="__cf_email__" data-cfemail="074362756260726b66736e686947666461296f6f7429606871">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Statutory Authority
This final rule 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
[[Page 34784]]
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 final rule rescinds multiple regulations that are either
unnecessary or wholly obsolete. The regulations contained in this final
rule to be rescinded and reserved can be 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 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
This final rule will become effective 60 days from the date of its
publication.
Severability
The provisions of this final rule 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
HHS published a notice of proposed rulemaking (NPRM) in the Federal
Register on April 8, 2026, (91 FR 17777) proposing revisions to 45 CFR
parts 96, 1000, and 1080. HHS provided a 30-day comment period during
which interested parties could submit comments in writing
electronically through <a href="http://Regulations.gov">Regulations.gov</a> or via email to the Immediate
Office of the Assistant Secretary.
During the 30-day comment period, HHS received 5 comments from
individual members of the public. Of the comments received, all 5 were
posted on <a href="http://www.regulations.gov">www.regulations.gov</a>. Of the 5 comments posted on
<a href="http://www.regulations.gov">www.regulations.gov</a>, all 5 comments were unique and none were
duplicative. At the conclusion of the public comment period, HHS
analyzed the content of the comments to inform the development of the
final rule. All comments were reviewed to determine each commenter's
support or opposition towards the policies proposed in the NPRM.
Public comments reflected various opinions of the commenters, with
two commenters expressing support for the proposed rescissions, two
commenters expressing opinions unrelated to the proposed rule or
providing incomplete information, and one commenter generally opposing
the changes. All comments were reviewed and those relating to the
subject were used to inform the Department's consideration of the final
rule.
The preamble in this final rule discusses the changes to current
regulations. Where language of the previous regulations remain
unchanged, the preamble explanation and interpretation of that language
published with all prior final rules are also retained, unless
specifically modified in the preamble to this rule.
V. General Comments and Cross-Cutting Issues
This final rule includes the removal of multiple sections of
regulations relating to 45 CFR parts 96, 1000, and 1080. HHS received
and reviewed comments on the proposed changes. Following review of all
comments, HHS has maintained all proposed changes from the NPRM.
Specific comments are discussed below.
The majority of the individual commenters who provided a response
pertaining to the proposed changes, expressed overall support for the
proposed rescissions, noting that the proposals would remove paperwork
and administrative complication which could then improve program
efficiency. One commenter expressed general opposition to the rule
without explanation and commented on other Federal policies unrelated
to the proposal at hand. HHS acknowledges concerns raised by the
commenter who opposed the NPRM but moves forward with rescinding the
four requirements as proposed. Two commenters either provided
insufficient information for HHS to determine their position on the
proposed rule or provided comments unrelated to the topic at hand.
VI. Section-by-Section Discussion of Comments and Regulatory Provisions
HHS did not receive comments about changes proposed to specific
subparts of the regulation. Below, HHS identifies each subpart and
states the rationale for the final rule.
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
[[Page 34785]]
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 removed 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 removed 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 removed. 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 removed because it is unnecessary. 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 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 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 removed. As this Section is obsolete, there will be no impact on
any of the block grant programs.
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 removed. 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 final rule eliminates 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 rescinds part 1080.
VII. 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
final rule 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.
[[Page 34786]]
This final 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 in this final rule 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 determined it is
not necessary to prepare a family policymaking assessment because the
actions in this final rule will not have any impact on the autonomy or
integrity of the family as an institution.
VIII. Regulatory Impact Analysis
We have examined the impacts of the final 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.'' OIRA has determined
that this final rule is not a significant action under Executive Order
12866 Section 3(f). This analysis indicates that the final rule is 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 final rule would
not result in an expenditure in any year that meets or exceeds this
amount.
IX. 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 the relationship between the Federal Government and
Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.'' Similarly, ACF's
Tribal Consultation Policy says that consultation is triggered for any
legislative proposal, new rule adoption, or other policy change that
significantly affects Tribes, meaning there exists a reasonable
presumption that it has or may have substantial direct effects on one
or more Indian Tribes, on the relationship between the Federal
Government and Indian tribes, on the amount or duration of ACF program
funding, on the delivery of ACF programs or services to one or more
Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes. However, as this is a
deregulatory action, per OMB M-25-36, Streamlining the Review of
Deregulatory Actions, this action presumptively does not trigger the
Tribal Consultation requirements of Executive Order 13175 nor does it
meet ACF's standard for consultation.
List of Subjects in 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.
List of Subjects in 45 CFR Part 1000
Grant programs--social programs, Reporting and recordkeeping
requirements.
List of Subjects in 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 amends 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]
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2. Remove and reserve Sec. 96.3.
Sec. 96.70 [Removed and Reserved]
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3. Remove and reserve Sec. 96.70.
Sec. 96.72 [Removed and Reserved]
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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.
[[Page 34787]]
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. 2026-11531 Filed 6-8-26; 8:45 am]
BILLING CODE 4184-24-P
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