Regulatory Alert: DOT Updates Title VI Regulations to Eliminate Disparate-Impact Liability
June 11, 2026
Today, the U.S. Department of Transportation (DOT) published a final rule that updates the regulations implementing Title VI of the Civil Rights Act of 1964, which prohibits any person from being denied the benefits of a federal grant based on their race, color, or national origin. The rule eliminates those portions of the Title VI regulations that prohibit conduct that has the unintentional effect of subjecting persons to discrimination, known as disparate-impact liability. DOT argued that limiting its regulations to the prohibition of intentionally discriminatory conduct is consistent with Congress’s intent in enacting Title VI.
DOT’s rule goes into effect today, June 11. Airport sponsors, which must comply with the Title VI regulations in accordance with their federal grant obligations, should be aware of these changes. Moving forward, DOT made it clear that the department will not pursue any enforcement action against grant recipients, such as an airport sponsor, under Title VI that is premised on a theory of disparate-impact liability.
Background. As a condition of receiving funding under the Airport Improvement Program (AIP) or the Infrastructure Investment and Jobs Act (IIJA), airport sponsors must agree to comply with Title VI of the Civil Rights Act of 1964, including DOT’s implementing regulations under 49 C.F.R. Part 21. Under DOT’s longstanding regulatory framework, grant recipients have been prohibited from intentionally engaging in discriminatory actions based on an individual’s race, color, or national origin. In addition, until today, recipients could not adopt facially neutral policies that have a discriminatory impact on certain individuals (called the disparate-impact prohibition).
In April 2025, President Trump issued Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy,” which outlined a policy to “eliminate the use of disparate-impact liability in all contexts to the maximum degree possible.” To implement the order, DOT initiated a rulemaking but did not release any proposed rule or request public comment. The department argues the Administrative Procedure Act, which generally requires notice and comment, provides an exception for rules that relate to “public property, loans, grants, benefits, or contracts.”
Three Notable Changes to Title VI Regulations. According to DOT, the purpose of the rule is to address “serious” statutory, constitutional, and policy concerns with the department’s Title VI regulations. To address those concerns, DOT made several notable changes, including eliminating three major provisions:
- First, the rule eliminates the provision that prohibited grant recipients from utilizing criteria or methods of administration which have the effect of (a) “subjecting persons to discrimination because of their race, color, or national origin” or (b) “defeating or substantially impairing accomplishment of the objectives of the program with respect to individuals of a particular race, color, or national origin.”
- Second, the rule eliminates the provision that allowed grant recipients to consider race, color, or national origin “if the purpose and effect are to remove or overcome the consequences of practices or impediments which have restricted the availability of, or participation in, the program or activity receiving Federal financial assistance, on the grounds of race, color, or national origin.”
- Third, the rule eliminates the requirement that grant recipients “take affirmative action to remove or overcome the effects of the prior discriminatory practice or usage” when “prior discriminatory practice or usage tends, on the grounds of race, color, or national origin to exclude individuals from participation in, to deny them the benefits of, or to subject them to discrimination under any program or activity.”
Related Rulemaking. At the end of May, the White House’s Office of Management and Budget (OMB) released a proposed rule that would make comprehensive updates to the policies and requirements that govern federal grants across the federal government, including those issued under the AIP and IIJA programs. The OMB proposal would prohibit grant recipients from adopting, issuing, or enforcing disparate-impact liability standards when administering programs or activities supported by a federal grant, except in limited circumstances. You can obtain additional information in our June 4 Regulatory Alert.
There is an important difference between today’s DOT rule and the OMB proposal. Both are intended to implement the executive order issued last year by President Trump, but DOT’s rule and the OMB proposal serve different purposes. DOT’s rule makes it clear the department will not pursue any enforcement action against (or penalize) grant recipients engaged in conduct that has an unintentional discriminatory impact. By contrast, the OMB proposal would prohibit grant funding from being used to “promote or support” theories of disparate-impact liability.
