FR-6540-P-02 HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard; Amendments to HUD’s Title VI Regulations

FR-6540-P-02 HUD published a notice of proposed rulemaking in January of 2026 that proposed to remove HUD’s disparate-impact regulations and leave interpretation of disparate-impact liability under the Fair Housing Act to the courts. This supplemental notice of proposed rulemaking continues HUD’s efforts to remove or revise regulations that prohibit conduct having a disparate impact without evidence of discriminatory intent. Through this rule, HUD is proposing to remove provisions regulations that impose disparate- impact liability on recipients of HUD Federal financial assistance. If finalized, this rule would improve consistency within HUD’s own regulations and between HUD’s regulations and the Title VI regulations recently revised by the Department of Justice (DOJ). This rule reopens the public comment period of HUD’s January 2026 proposed rule on disparate-impact liability; HUD will only consider comments on topics related to this supplemental notice of proposed rulemaking during the reopened comment period.