On January 14, 2026, the Department of Housing and Urban Development (HUD) proposed to remove three previous rules that implement protections against discrimination based on “disparate impact” under the Fair Housing Act.

Disparate impact refers to whether a practice has an unjustified discriminatory effect, even where practices were not motivated by discriminatory intent. For example, a housing provider might be taking actions that inadvertently or unintentionally lead to race-based housing denials or terminations, which is prohibited by the Fair Housing Act.

Previously, HUD had issued three rules implementing the agency’s disparate impact protections, but HUD is now proposing to remove the rules and leave the interpretation of disparate impact liability “to the courts.” The Supreme Court upheld the use of disparate impact in 2015, and HUD has interpreted the Fair Housing Act as prohibiting disparate impact for over 40 years, but the removal of agency guidance creates confusion for housing providers looking for direction on complying with the Fair Housing Act and reduces protections for older adults experiencing housing discrimination.

HUD’s proposal states that it is removing the rules and updating regulations based on a directive from President Trump through his 2025 Executive Order titled “Restoring Equality of Opportunity and Meritocracy,” which aims to guarantee “equality of opportunity, not outcomes.” The Department of Justice (DOJ) also recently  removed disparate impact rules.

Under HUD’s shortened public comment period for the proposed change to disparate impact liability, stakeholders have only 30 days to respond to the proposal (by February 13).

LeadingAge has previously supported disparate impact protections as critical guardrails against discrimination in housing, and we will work with members to submit comments against the removal of the disparate impact rules.