Civil Penalties Inflation Adjustments; Annual Adjustments

Issuing agencies

Abstract

This rule provides for annual adjustments to the level of civil monetary penalties contained in Bureau of Indian Affairs (Bureau) regulations to account for inflation under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget (OMB) guidance.

Full Text

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<title>Federal Register, Volume 91 Issue 201 (Tuesday, October 20, 2026)</title>
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[Federal Register Volume 91, Number 201 (Tuesday, October 20, 2026)]
[Rules and Regulations]
[Pages 66286-66288]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21474]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Parts 140, 141, 211, 213, 225, 226, 227, 243, 249, 273, and 
700

[267A2100DD/AAKP3000000/A0A501010.000000]
RIN 1076-AF81


Civil Penalties Inflation Adjustments; Annual Adjustments

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Final rule.

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SUMMARY: This rule provides for annual adjustments to the level of 
civil monetary penalties contained in Bureau of Indian Affairs (Bureau) 
regulations to account for inflation under the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 and Office of 
Management and Budget (OMB) guidance.

DATES: This rule is effective on October 20, 2026.

ADDRESSES: 
    <bullet> Federal eRulemaking Portal: This rule may be found on the 
internet at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by entering ``RIN 1076-AF81'' 
in the search box.
    <bullet> Alternative Format: On request to the program contact 
person listed under FOR FURTHER INFORMATION CONTACT, individuals can 
obtain this document in an alternate format, usable by people with 
disabilities, at the Office of the Assistant Secretary--Indian Affairs, 
Room 4660, 1849 C Street NW, Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Oliver Whaley, Director, Office of 
Regulatory Affairs and Collaborative Action (RACA), Office of the 
Assistant Secretary--Indian Affairs; Department of the Interior, 
<a href="/cdn-cgi/l/email-protection#d78596949697b5beb6f9b0b8a1"><span class="__cf_email__" data-cfemail="e7b5a6a4a6a7858e86c9808891">[email&#160;protected]</span></a>; telephone (202) 738-6065. Individuals in the United 
States who are deaf, deafblind, hard of hearing, or have a speech 
disability may dial 711 (TTY, TDD, or TeleBraille) to access 
telecommunications relay services.

SUPPLEMENTARY INFORMATION:

I. Background
II. Calculation of 2026 Annual Adjustments
III. Procedural Requirements
    A. Regulatory Planning and Review (Executive Order (E.O.s) 12866 
and 14192)
    B. Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
    C. Congressional Review Act (CRA)
    D. Unfunded Mandates Reform Act (2 U.S.C. 1501 et seq.)
    E. Takings (E.O. 12630)
    F. Federalism (E.O. 13132)
    G. Civil Justice Reform (E.O. 12988)
    H. Consultation With Indian Tribes (E.O. 13175 and Departmental 
Policy)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (E.O. 13211)
    L. Clarity of This Regulation
    M. Administrative Procedure Act

I. Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (sec. 
701 of Pub. L. 114-74) (``the Act''). The Act requires Federal agencies 
to adjust the level of civil monetary penalties with an initial 
``catch-up'' adjustment through rulemaking and then make subsequent 
annual adjustments for inflation. The purpose of these adjustments is 
to

[[Page 66287]]

maintain the deterrent effect of civil penalties and to further the 
policy goals of the underlying statutes.
    The Office of Management and Budget (OMB) issued guidance for 
Federal agencies on calculating the catch-up adjustment. See February 
24, 2016, Memorandum for the Heads of Executive Departments and 
Agencies, from Shaun Donovan, Director, Office of Management and 
Budget, re: Implementation of the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (M-16-06). Under the guidance, 
the Department identified applicable civil monetary penalties and 
calculated the catch-up adjustment. A civil monetary penalty is any 
assessment with a dollar amount that is levied for a violation of a 
Federal civil statute or regulation, and is assessed or enforceable 
through a civil action in Federal court or an administrative 
proceeding. A civil monetary penalty does not include a penalty levied 
for violation of a criminal statute, or fees for services, licenses, 
permits, or other regulatory review. The calculated catch-up adjustment 
is based on the percent change between the Consumer Price Index for all 
Urban Consumers (CPI-U) for the month of October in the year of the 
previous adjustment (or in the year of establishment, if no adjustment 
has been made) and the October 2015 CPI-U.
    The Bureau issued an interim final rule providing for calculated 
catch-up adjustments on June 30, 2016 (81 FR 42478), with an effective 
date of August 1, 2016, and requesting comments post-promulgation. The 
Bureau issued a final rule affirming the catch-up adjustments set forth 
in the interim final rule on December 2, 2016 (81 FR 86953). The Bureau 
then issued a final rule making the next scheduled annual inflation 
adjustment for 2017 on January 23, 2017 (82 FR 7649), for 2018 on 
February 6, 2018 (83 FR 5192), for 2019 on April 15, 2019 (84 FR 
15098), for 2020 on February 19, 2020 (85 FR 9366), for 2021 on January 
28, 2021 (86 FR 7344), for 2022 on March 9, 2022 (87 FR 13153), for 
2023 on March 2, 2023 (88 FR 13018), for 2024 on March 13, 2024 (89 FR 
18359), and for 2025 on June 5, 2025 (90 FR 23855).

II. Calculation of 2026 Annual Adjustments

    OMB recently issued guidance to assist Federal agencies in 
implementing the annual adjustments required by the Act. See April 17, 
2026, Memorandum for the Heads of Executive Departments and Agencies, 
from Russell T. Vought, Director, Office of Management and Budget, re: 
Cancellation of Penalty Inflation Adjustments for 2026, Regarding the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015 (M-26-11). The guidance informs agencies of the cancellation of 
the inflation adjustment for 2026 based on the lack of October 2025 
CPI-U data from the Bureau of Labor Statistics due to the lapse in 
appropriations.

III. Procedural Requirements

A. Regulatory Planning and Review (E.O.s 12866 and 14192)

    This rule has been determined to be not significant for purposes of 
E.O. 12866. This rule adjusts the level of existing civil monetary 
penalties and does not promulgate a new regulation defined in E.O. 
14192.
    In accordance with 5 U.S.C. 553(b)(4), a summary of this rule may 
be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by searching for ``RIN 1076-
AF81.''

B. Regulatory Flexibility Act (5 U.S.C. 601 et seq.)

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for rules unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. The RFA applies only to rules for 
which an agency is required to first publish a proposed rule. See 5 
U.S.C. 603(a) and 604(a). A proposed inflation adjustment rule was not 
published in accordance with the Act. See Section III.M, 
``Administrative Procedure Act,'' below.

C. Congressional Review Act (CRA)

    This rule is not a major rule under 5 U.S.C. 804(2). This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

D. Unfunded Mandates Reform Act (2 U.S.C. 1501 et seq.)

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments, or the private sector of more than $100 million per 
year. The rule does not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This rule does not affect a taking of private property or otherwise 
have taking implications under E.O. 12630. A takings implication 
assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of E.O. 13132, this rule does not 
have sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement. A federalism summary impact 
statement is not required.

G. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule: (a) meets the criteria of section 3(a) 
requiring that all regulations be reviewed to eliminate errors and 
ambiguity and be written to minimize litigation; and (b) meets the 
criteria of section 3(b)(2) requiring that all regulations be written 
in clear language and contain clear legal standards.

H. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)

    The Department of the Interior strives to strengthen its 
government-to-government relationship with Indian tribes through a 
commitment to consultation with Indian Tribes and recognition of their 
right to self-governance and tribal sovereignty. We have evaluated this 
rule under the Department's consultation policy and under the criteria 
in E.O. 13175 and have determined that it has no substantial direct 
effects on federally recognized Indian Tribes and that consultation 
under the Department's tribal consultation policy is not required.

I. Paperwork Reduction Act

    This rule does not contain information collection requirements, and 
a submission to the Office of Management and Budget under the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.) is not required. We may not 
conduct or sponsor, and you are not required to respond to, a 
collection of information unless it displays a currently valid OMB 
control number.

J. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969

[[Page 66288]]

(NEPA) is not required because the rule is covered by a categorical 
exclusion. This rule is excluded from the requirement to prepare a 
detailed statement because it is a regulation of an administrative 
nature. For further information see 43 CFR 46.210(i). We have also 
determined that the rule does not involve any of the extraordinary 
circumstances listed in 43 CFR 46.215 that would require further 
analysis under NEPA.

K. Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in E.O. 13211. A Statement of Energy Effects is not required.

L. Clarity of This Regulation

    We are required by E.O. 12866 and 12988 and by the Presidential 
Memorandum of June 1, 1998, to write all rules in plain language. This 
means that each rule we publish must:

    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use clear language rather than jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible.

    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the FOR FURTHER INFORMATION 
CONTACT section. To better help us revise the rule, your comments 
should be as specific as possible. For example, you should tell us the 
numbers of the sections or paragraphs that you find unclear, which 
sections or sentences are too long, the sections where you believe 
lists or tables would be useful, etc.

M. Administrative Procedure Act

    The Act requires agencies to publish annual inflation adjustments 
by no later than January 15, of each year, notwithstanding section 553 
of the Administrative Procedure Act (APA) (5 U.S.C. 553). OMB has 
interpreted this direction to mean that the usual APA public procedure 
for rulemaking--which includes public notice of a proposed rule, an 
opportunity for public comment, and a delay in the effective date of a 
final rule--is not required when agencies issue regulations to 
implement the annual adjustments to civil penalties that the Act 
requires. Accordingly, we are issuing the annual adjustments as a final 
rule without prior notice or an opportunity for comment and with an 
effective date immediately upon publication in the Federal Register.
    Section 553(b) of the APA provides that, when an agency for good 
cause finds that ``notice and public procedure . . . are impracticable, 
unnecessary, or contrary to the public interest,'' the agency may issue 
a rule without providing notice and an opportunity for prior public 
comment. Under section 553(b), the Bureau finds that there is good 
cause to promulgate this rule without first providing for public 
comment. It would not be possible to meet the deadlines imposed by the 
Act if we were to first publish a proposed rule, allow the public 
sufficient time to submit comments, analyze the comments, and publish a 
final rule. Also, the Bureau is promulgating this final rule to 
implement the statutory directive in the Act, which requires agencies 
to publish a final rule and to update the civil penalty amounts by 
applying a specified formula. The Bureau has no discretion to vary the 
amount of the adjustment to reflect any views or suggestions provided 
by commenters. Accordingly, it would serve no purpose to provide an 
opportunity for public comment on this rule prior to promulgation. 
Thus, providing for notice and public comment is impracticable and 
unnecessary.
    Furthermore, the Bureau finds under section 553(d)(3) of the APA 
that good cause exists to make this final rule effective immediately 
upon publication in the Federal Register. In the Act, Congress 
expressly required Federal agencies to publish annual inflation 
adjustments to civil penalties in the Federal Register by January 15 of 
each year, notwithstanding section 553 of the APA. Under the statutory 
framework and OMB guidance, the new penalty levels take effect 
immediately upon the effective date of the adjustment. The statutory 
deadline does not allow time to delay this rule's effective date beyond 
publication.

List of Subjects

25 CFR Part 140

    Business and industry, Indians, Penalties.

25 CFR Part 141

    Business and industry, Credit, Indians--business and finance, 
Penalties.

25 CFR Part 211

    Geothermal energy, Indians--lands, Mineral resources, Mines, Oil 
and gas exploration, Reporting and recordkeeping requirements.

25 CFR Part 213

    Indians--lands, Mineral resources, Mines, Oil and gas exploration, 
Reporting and recordkeeping requirements.

25 CFR Part 225

    Geothermal energy, Indians--lands, Mineral resources, Mines, Oil 
and gas exploration, Penalties, Reporting and recordkeeping 
requirements, Surety bonds.

25 CFR Part 226

    Indians--lands.

25 CFR Part 227

    Indians--lands, Mineral resources, Mines, Oil and gas exploration, 
Reporting and recordkeeping requirements.

25 CFR Part 243

    Indians, Livestock.

25 CFR Part 249

    Fishing, Indians.

25 CFR Part 273

    Elementary and secondary education, Grant programs--Indians, 
Indians--education, Schools.

25 CFR Part 700

    Indians, Indians--lands, Livestock.

William Henry Kirkland III,
Assistant Secretary--Indian Affairs.
[FR Doc. 2026-21474 Filed 10-19-26; 8:45 am]
BILLING CODE 4337-15-P


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