Reducing Bureaucracy and Burden for Block Grants

Issuing agencies

Abstract

ACF proposes to amend its block grant regulations to modernize requirements, reduce administrative burden on States and Tribal grantees, and improve the clarity and efficiency of program administration. The current regulations include outdated provisions and procedural requirements that no longer reflect statutory authority or agency practice. The proposed revisions are intended to streamline grantee obligations, eliminate unnecessary requirements, and align the regulations with current law and policy.

Full Text

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<title>Federal Register, Volume 91 Issue 208 (Thursday, October 29, 2026)</title>
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[Federal Register Volume 91, Number 208 (Thursday, October 29, 2026)]
[Proposed Rules]
[Pages 68097-68101]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22123]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 96

RIN 0970-AD49


Reducing Bureaucracy and Burden for Block Grants

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: ACF proposes to amend its block grant regulations to modernize 
requirements, reduce administrative burden on States and Tribal 
grantees, and improve the clarity and efficiency of program 
administration. The current regulations include outdated provisions and 
procedural requirements that no longer reflect statutory authority or 
agency practice. The proposed revisions are intended to streamline 
grantee obligations, eliminate unnecessary requirements, and align the 
regulations with current law and policy.

DATES: In order to be considered, written comments on this proposed 
rule must be received on or before November 30, 2026.

ADDRESSES: You may submit written comments, identified by docket number 
ACF-2026-0628 and/or RIN number 0970-AD49, 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#9edafbecfbf9ebf2ffeaf7f1f0defffdf8b0f6f6edb0f9f1e8"><span class="__cf_email__" data-cfemail="9dd9f8eff8fae8f1fce9f4f2f3ddfcfefbb3f5f5eeb3faf2eb">[email&#160;protected]</span></a>. Include the docket number 
ACF-2026-0628 and/or RIN number 0970-AD49 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#bafedfc8dfddcfd6dbced3d5d4fadbd9dc94d2d2c994ddd5cc"><span class="__cf_email__" data-cfemail="480c2d3a2d2f3d24293c21272608292b2e6620203b662f273e">[email&#160;protected]</span></a>. The docket on 
<a href="https://www.regulations.gov">https://www.regulations.gov</a> will include a plain language summary of 
the proposed rulemaking.

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.), and the 
Low Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et 
seq.)., and the Department's general administrative authority under 5 
U.S.C. 301.

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 HHS. 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 (Subpart H).
    Since its initial promulgation, Part 96 has continuously been 
amended to reflect statutory changes to the underlying block grant 
programs. Significant amendments include revisions reflecting the 
LIHEAP amendments enacted in 1984, 1990 and 1994; revisions reflecting 
the SSBG reporting changes enacted in 1988; and periodic updates to the 
program-specific subparts to reflect reauthorizations and conforming 
amendments to the underlying statutes.

III. Executive Summary

    This notice of proposed rulemaking (NPRM) proposes to remove 
multiple regulations that are either unnecessary or wholly obsolete. 
The regulations contained in this NPRM to be removed and reserved can 
be categorized into three groups: those that have obsolete language, 
those that are duplicative of another Federal regulations or statute, 
and those that are better suited as a different type of sub-regulatory 
format.
    Several provisions across Part 96 contain transitional language 
tethered to fiscal years that have long passed. ACF proposes to remove 
these transitional clauses. The fiscal-year triggers they reference are 
decades in the past, and the provisions they once activated are now 
either fully effective by their own terms or entirely inoperative. 
Retaining this language clutters the Code of Federal Regulations with 
text that no longer governs any current conduct, creates confusion for 
grantees attempting to identify their present obligations, and burdens 
agency staff

[[Page 68098]]

who must explain why time-bound language remains on the books.
    The duplicative regulations in the Code of Federal Regulations, 
carry no impact as the authority and requirements stated in the 
regulations exist or are stated elsewhere, such as in statute. This 
renders the language found in the regulations to be either duplicative 
or otherwise unnecessary. ACF proposes to remove these provisions. They 
add no operative requirement beyond what Congress has already enacted, 
and their continued presence in part 96 creates a risk that subsequent 
amendments to the underlying statutes will produce a mismatch between 
the statutory text and the regulatory paraphrase. Removing these 
provisions simplifies the regulations without eliminating any 
substantive obligation, because the statutory provisions remain 
directly enforceable.
    The regulations that are better suited to 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 removed from part 96 and published 
in the more appropriate format.

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 Block Grants. 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 B--Grant Procedures
Sec.  96.10 Prerequisites To Obtain Block Grant Funds
    Section 96.10 sets forth prerequisites that States must satisfy to 
obtain block grant funds, including submission requirements and 
certifications. Some of these prerequisites track directly to statutory 
requirements in the individual block grant statutes, while others 
reflect administrative conditions ACF layered on top of those statutory 
requirements. In Section 96.10, two clauses indicate that these 
prerequisites to obtaining block grant funds begin with Fiscal Year 
(FY) 2001. The proposed rewrite removes the specific time bounds.
Sec.  96.14 Time Period for Obligation and Expenditure of Grant Funds
    Section 96.14 addresses the treatment of expenditures across 
program years, including rules governing when obligations incurred in 
one program year may be charged against another. This proposed rewrite 
removes Section 96.14(a)(2) as this language that also exists in other 
areas of this part. See 45 CFR 96.81(b)(1). Furthermore, this 
subsection references specific dates such as ``fiscal year 1982'' which 
is now obsolete. The proposed edits to paragraph (b) remove the 
reference to the community services block grant as having a statutory 
limit on the time for expenditure of block grant funds. This 
restricting language is no longer accurate following a congressional 
change to the statute removing said cap. The regulations have never 
been updated to reflect this change, but is proposed to be done through 
this NPRM. Finally, the proposed edits to paragraph (b) add community 
mental health services, substance use prevention, treatment, and 
recovery services (the SAMHSA block grants) because the authorizing 
statute for these block grants imposes a two-year time limit for 
obligation and expenditure of allotments. These are proposed to be 
added as they align with statutes that have been passed since the last 
time this section was updated.
Sec.  96.15 Waivers
    Section 96.15 establishes a regulatory framework for the issuance 
of waivers under the block grant statutes, including LIHEAP under 42 
U.S.C. 8624(k). The proposed change removes reference to the dated 
FY1986 start to a Secretarial waiver authority.
Subpart D--Direct Funding of Indian Tribes and Tribal Organizations
Sec.  96.43 Procedures During FY 1982
    Section 96.43 establishes procedures for LIHEAP funds exclusively 
for FY1982. This section is no longer relevant as all of the dates and 
processes described therein have been long since passed and are 
therefore obsolete.
Sec.  96.49 Due Date for Receipt of All Information Required for 
Completion of Tribal Applications for the Low-Income Home Energy 
Assistance Block Grants
    Section 96.49 establishes recordkeeping requirements applicable to 
LIHEAP. The proposed amendment to this section removes the specific 
dated language that announces the implementation of the regulation will 
begin in FY2001.
Subpart G--Social Services Block Grants
Sec.  96.71 Definitions
    Section 96.71 further constricts definitions beyond statutory 
language for both the term ``integral but subordinate'' and for 
``employees.'' The term ``integral but subordinate'' is used in 42 
U.S.C. 1397d(a)(2) to restrict the use of funds by a grantee for ``the 
provision of cash payments for costs of subsistence or for the 
provision of room and board (other than the costs of subsistence during 
rehabilitation, room and board provided for short term as an integral 
but subordinate part of a social service, or temporary emergency 
shelter provided as a protective service).'' Thus, Congress intended 
for funds to be allowed to be used for temporary emergency shelter, 
including room and board, for children in a protective service.
    However, Section 96.71 unnecessarily restricts this Congressional 
definition by stating that, ``room and board provided for a short term 
shall not be considered an integral but subordinate part of a social 
service when it is provided to an individual in a foster family home.'' 
This was not a condition of Congressionally approved language, but 
rather an extension of statutory interpretation by agency regulators 
that does not align with Congressional action. Therefore, the removal 
of this added provision will return the enforcement of this block 
grant's allowable uses to what was intended by the lawmakers. It will 
not necessarily lead to any changes in how states spend funds but will 
allow states to leverage the full statutory authority. This will not 
result in increased costs as this is a capped program but will restore 
state flexibility to the use of funds.
    Additionally, the term ``employees'' is defined in Section 96.71 as 
``staff, contractors, or other individuals whose activities are under 
the professional direction or supervision of the institution.'' This is 
beyond what the plain text definition in the original Act which made no 
mention of additional supervision or direction. By removing this added 
regulatory burden, the operation of the program will return to the 
original Congressional definition. For these reasons, this proposed 
rule removes this Section.
Sec.  96.74 Annual Reporting Requirements
    Section 96.74 implements the SSBG annual report requirement under 
42

[[Page 68099]]

U.S.C. 1397e. The proposed changes remove Section 96.74(b)(1), which 
references uniform definitions of services in Appendix A, which is 
proposed for removal, and paragraph (c) which discuss outdated 
terminology and technology such as encouraging the use of ``computer 
diskettes.'' References to Appendix A is also removed from Section 
96.74(b)(4).
Subpart H--Low-Income Home Energy Assistance Program
Sec.  96.83 Increase in Maximum Amount That May Be Used for 
Weatherization and Other Energy-Related Home Repair
    Section 96.83 establishes a detailed procedural framework for 
grantees seeking waivers to increase the percentage of LIHEAP funds 
used for weatherization activities from 15 percent to up to 25 percent.
    ACF proposes to remove the elements of this procedural framework 
that extends beyond statutory requirements. The underlying statutory 
waiver authority (42 U.S.C. 8624(k)) is preserved, but the regulatory 
framework layered on top of that authority represents an agency-created 
set of procedural prerequisites and substantive criteria that go beyond 
the best reading of the statute.
    Removing the framework restores the Secretary's statutory 
discretion to evaluate waiver requests on their merits and reduces 
administrative burden on grantees with limited deregulatory cost, 
because the statutory standard for granting a waiver continues to 
govern the substantive decision. Thus, this Section is proposed to be 
reduced to remove any requirement that is not mandated by statute.
Subpart I--Community Services Block Grants
Sec.  96.90 Scope
    Section 96.90 briefly introduces that Subpart I applies to CSBG. As 
the title of the subpart is stated as ``Community Services Block 
Grants'' this Section does not provide any additional information or 
regulatory requirements, and is therefore proposed to be removed.
Sec.  96.91 Audit Requirement
    Section 96.91 discusses the requirements of section 1745(b) of the 
Reconciliation Act (31 U.S.C. 1243 note) regarding audit requirements, 
which has been repealed. The CSBG Act sets forth audit requirements at 
section 678D(a)(2) (42 U.S.C. 9916(a)(2)). Section 96.91 is superseded 
by the statutory audit requirements and is therefore proposed to be 
removed.

Appendix A to Part 96

Uniform Definitions of Services
    Appendix A to Part 96 identifies the 29 categories of services and 
provides a brief definition of each service. This Appendix is proposed 
for removal as it identifies items that HHS believes belong in sub-
regulatory guidance as it is merely providing the list of allowable 
expenditures for a specific grant fund. As grantees are required to 
follow a grant's terms and conditions, the removal of this Appendix is 
not intended or expected to impact the operations of the program.

V. Regulatory Process Matters

Paperwork Reduction Act

    Under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) (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 collections 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 Block Grant 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 a significant action under Executive Order 12866 
Section 3(f).
    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 propose 
to 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

[[Page 68100]]

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 the relationship between the Federal government and Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes. Consultation and Coordination 
With Indian Tribal Governments,65 FR 67249. Similarly, ACF's Tribal 
Consultation Policy says that consultation is triggered for a new rule 
adoption that significantly affects tribes, meaning the new rule 
adoption has substantial direct effects on one on more 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. Given the nature and purpose of this 
rulemaking, it does not significantly impact Tribes and as such we are 
not engaging in Tribal Consultation at this time. For Tribes who have 
comments, we encourage you to submit them through the comment process.

List of Subjects in 45 CFR Part 96

    Administrative practice and procedure, Energy conservation, Grant 
programs--health, Grant programs--social programs, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, ACF proposes to amend 45 
CFR part 96 to read as follows:

PART 96--BLOCK GRANTS

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

    Authority:  31 U.S.C. 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., 9901 et seq., Sec.  1397 et seq., 5 U.S.C. 301.

Subpart B--General Procedures


Sec.  96.10   [Amended]

0
2. Amend Sec.  96.10 by revising paragraphs (c) and (d) to read as 
follows:


Sec.  96.10   Prerequisites to obtain block grant funds.

* * * * *
    (c) Submission dates for applications under the social service and 
low-income home energy assistance block grant programs are:
* * * * *
    (d) For the low-income home energy assistance program, States and 
territories which make requests for funding from the Department must 
insure that all information necessary to complete their applications is 
received by December 15 of the fiscal year for which they are 
requesting funds unless the Department agrees to a later date.


Sec.  96.14   [Amended]

0
3. Amend Sec.  96.14(a) by removing paragraph (2) and by revising 
paragraph (b) it to read as follows:
    (b) Expenditure. No limitations exist on the time for expenditure 
of block grants funds, except those imposed by statute with respect to 
the maternal and child health services, community mental health 
services, substance use prevention, treatment, and recovery services, 
and the social services block grants.


Sec.  96.15   [Amended]

0
4. Amend Sec.  96.15 by revising it to read as follows:


Sec.  96.15   Waivers.

    Applications for waivers that are permitted by statute for the 
block grants should be submitted to the Director, Centers for Disease 
Control and Prevention in the case of the preventive health and health 
services block grant; to the Assistant Secretary, Substance Abuse and 
Mental Health Services Administration in the case of the community 
mental health services block grant and the substance use prevention, 
treatment, and recovery services block grant; to the Director, Maternal 
and Child Health Bureau in the case of the maternal and child health 
services block grant; and to the Director, Office of Community Services 
in the case of the community services block grant, the low-income home 
energy assistance program and the social services block grant.

Subpart D--Direct Funding of Indian Tribes and Tribal Organizations


Sec.  96.43  [Removed and reserved]

0
5. Remove and reserve Sec.  96.43.


Sec.  96.49  [Amended]

0
6. Amend Sec.  96.49 by revising it to read as follows:


Sec.  96.49   Due date for receipt of all information required for 
completion of tribal applications for the low-income home energy 
assistance block grants.

    For the low-income home energy assistance program, Indian tribes 
and tribal organizations that make requests for direct funding from the 
Department must insure that all information necessary to complete their 
application is received by December 15 of the fiscal year for which 
funds are requested, unless the State(s) in which the tribe is located 
agrees to a later date. After December 15, funds will revert to the 
State(s) in which the tribe is located, unless the State(s) agrees to a 
later date. If funds revert to a State, the State is responsible for 
providing low-income home energy assistance program services to the 
service population of the tribe.

Subpart G--Social Services Block Grants


Sec.  96.71  [Removed and reserved]

0
7. Remove and reserve Sec.  96.71.


Sec.  96.74  [Amended]

0
8. Amend Sec.  96.74 by removing and reserving paragraphs (b)(1) and 
(c) and amending paragraph (b)(4) to read as follows:


Sec.  96.74   Annual reporting requirements.

* * * * *
    (4) Each state must report ``Other Expenditures,'' to report non-
service expenditures. Only total dollar amounts in this category are 
required, i.e., they need not be reported by recipient count or cost 
per adult/child. This will include carry over balances, carry forward 
balances, funds transferred to or from the SSBG program, and 
administrative costs as defined by the state.
* * * * *


Sec.  96.83   [Amended]

0
9. Amend Sec.  96.83 by removing and reserving (a) through (d) and 
(e)(1)(i) through (e)(1)(iv) and amending paragraph (e) to read as 
follows:


Sec.  96.83   Increase in maximum amount that may be used for 
weatherization and other energy-related home repair.

    (e) ``Good cause'' waiver.
    (1) If a grantee does not meet one or more of the criteria for a 
waiver, then the grantee may submit documentation that demonstrates 
good cause why a waiver should be granted despite the grantee's failure 
to meet this criterion

[[Page 68101]]

and how such a waiver will still accomplish the intent of the statute.
    (2) * * *


Sec.  96.90   [Removed and reserved]

0
10. Remove and reserve Sec.  96.90.


Sec.  96.91   [Removed and reserved]

0
11. Remove and reserve Sec.  96.91.

Appendix A to Part 96 [Removed and reserved]

0
12. Remove and reserve Appendix A to Part 96.

Robert F. Kennedy, Jr.,
Secretary, Department of Health and Human Services.
[FR Doc. 2026-22123 Filed 10-28-26; 8:45 am]
BILLING CODE 4184-01-P


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