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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Rules and Regulations for which it lacked legal authority.
Consistent with their other constitutional and legal obligations, State and local jurisdictions will continue to have the flexibility to impose additional civil rights protections. And, consistent with their other legal obligations, regulated entities are free to comply with such additional civil rights protections.
Congressional Review Act The Congressional Review Act CRA
defines a major rule as any rule that the Administrator of the Office of Information and Regulatory Affairs OIRA of the Office of Management and Budget finds has resulted in or is likely to result inA an annual effect on the economy of $100,000,000 or more; B a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or C
significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreignbased enterprises in domestic and export markets. 5 U.S.C. 8042. Based on the analysis of this final rule under Executive Order 12866, OMB has determined that this final rule is not likely to result in an annual effect of $100,000,000 or more, and is not otherwise a major rule for purposes of the Congressional Review Act.

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Assessment of Regulation and Policies on Families Section 654 of the Treasury and General Government Appropriations Act of 1999 40 requires Federal departments and agencies to determine whether a proposed policy or regulation could affect family well-being.41 If the 40 Public Law 105277, Div. A, 654, 112 Stat.
2681480, 2681528 Oct. 21, 1998, codified at 5
U.S.C. 601 note.
41 Before implementing regulations that may affect family well-being, an agency is required to assess the actions as to whether the action 1 strengthens or erodes the stability or safety of the family and, particularly, the marital commitment;
2 strengthens or erodes the authority and rights of parents in the education, nurture, and supervision of their children;
3 helps the family perform its functions, or substitutes governmental activity for the function;
4 increases or decreases disposable income or poverty of families and children;
5 actions proposed benefits justify the financial impact on the family;
6 may be carried out by State or local government or by the family; and 7 establishes an implicit or explicit policy concerning the relationship between the behavior and personal responsibility of youth, and the norms of society.
5 U.S.C. 601 note.

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programs for which they are otherwise eligible. Commenters offered little evidence that this was the case before the current 75.300c and d became effective, and the Department has no evidence supporting the belief that this will occur as a result of the final rule.
Many commenters focused on child welfare programs and the foster care and adoption systems. Based on the information before the Department, as well as the Departments experience and expertise, the Department believes that the final rule will enable faith-based child placement agencieswhich are critical providers and partners in caring for vulnerable children and have a long and successful history of placing children including older children, children with health conditions and sibling groups, all of whom are more difficult to place with loving families to continue their service. Based on its experience and expertise, the Department believes that the result will be more, rather than fewer, child placement agencies and more, rather than fewer, options for children in need of loving homes. Furthermore, it is the Departments understanding that the participation of faith-based child placement organizations will not affect the availability of secular child placement organizations that are able to work with prospective foster and adoptive parents and families with whom some faith-based organizations cannot work. States work with both faith-based child placement organizations and secular childplacement organizations.

determination is affirmative, then the Department or agency must prepare an impact assessment to address criteria specified in the law.42 In the proposed rule, the Department determined that the proposed rule would not have an impact on family well-being, as defined in section 654.
The Department received many comments on its initial family wellbeing impact analysis, or on the likely impact of the proposed rule on the wellbeing of children in need of foster care or other services. After considering the comments, the Department concludes that the final rule will not have an impact on family well-being as defined in section 654.
Comment: Several commenters argued that, since the proposed rule rolls back nondiscrimination protections, it will have significant impacts on family wellbeing across a range of the Departments programs because it will affect access to programs for which they would otherwise be eligible. They suggested individual impact assessments were necessary for, among others, Head Start Programs, Refugee Resettlement, and caregiver support programs.
Commenters also believed the family well-being analysis required an assessment of the impact for populations under the rule, including LGBT beneficiaries. At least some of the comments seem based on the premise that, under the proposed rule, religious or faith-based organizations would discriminate and, for example, reject prospective foster and adoptive families, to the detriment of children, including LGBTQ children, in need of foster or adoptive placements in loving families.
Other commenters supported the proposed rule, arguing that society needed as many agencies working on behalf of children as possible and that the proposed rule would prevent discrimination in the Departments programs by permitting religious and faith-based organizations to participate in Department-funded programs.
Response: The Department respectfully disagrees with commenters who argued that the proposed rule and this final rule would have a negative effect on family well-being, as defined in section 654. The Department rejects commenters view that, under the rule, vulnerable families or populations will experience discrimination, or be denied services in Department-funded
Dated: January 5, 2021.
Alex M. Azar II, Secretary, Department of Health and Human Services.

42 If a regulation may affect family well-being, the head of the agency is required to submit a written certification to the director of OMB and to Congress that the regulation has been assessed and to provide an adequate rationale for implementation of a regulation that may negatively affect family wellbeing. Id.

Therefore, under the authority of 5
U.S.C. 301 & 2 CFR part 200, and for the reasons stated in the preamble, the Department of Health and Human Services amends 45 CFR part 75 as follows:

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Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 44 U.S.C. 3506;
5 CFR part 1320 appendix A.1, the Department has reviewed this final rule and has determined that there are no new collections of information contained therein.
List of Subjects in 45 CFR Part 75
Administrative Practice and Procedure, Federal aid programs, Grants Programs, Grants Administration, Cost Principles, state and local governments.

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