On January 15, HUD formally withdrew two of its most forward-thinking but controversial proposed rules. The proposed rules, on Affirmatively Furthering Fair Housing (AFFH) and Reducing Barriers to HUD-Assisted Housing, had been issued on February 9, 2023, and April 10, 2024, respectively.

LeadingAge commented on and supported each of the proposed rules (see our AFFH and Reducing Barriers comments), with feedback to HUD to improve the proposed rules before finalizing them.

After the comment periods close and public comments have been reviewed and analyzed, agencies then decide how to proceed; one of an agency’s options is to withdraw the proposed rule.

If HUD had finalized the rules this late in the Biden administration, they would have been subject to potential nullification under the Congressional Review Act (CRA). Under the CRA, if a joint resolution of disapproval is approved by both houses of Congress and signed by the President, or if Congress successfully overrides a presidential veto, the rule at issue cannot go into effect or continue in effect. With the new Congress and the incoming president all off the same party, use of the CRA to nullify these two rules would be highly likely. Once a rule has been nullified by the CRA process, it takes authorization from Congress for any agency (in the current or future administrations) to again take up a substantially similar rule.

By withdrawing these rules, the Biden administration leaves the door open for a future administration to take up similar efforts without needing new direction from Congress to do so.