GSA Final Rule on Nondiscrimination for Federally Funded Programs

Content

ACTION:

Final rule.

SUMMARY:

The General Services Administration (GSA) is publishing a rule to migrate, without policy change,

     GSA's regulations implementing the Age Discrimination Act of 1975 (Age Act), from the government-wide Federal Property Management
     Regulation (FPMR) to the GSA regulations codified regulations in the General Services Property Management Regulations (GSPMR).

DATES:

This rule is effective March 6, 2026.

FOR FURTHER INFORMATION CONTACT:

For clarification of content, contact Deborah Cullins-Threets, Senior Equal Opportunity Specialist, Office of Civil Rights
(OCR), at 202-501-0767 or deborah.threets@gsa.gov.

SUPPLEMENTARY INFORMATION:

I. Background

Federal agencies are responsible for issuing regulations and guidance that clearly communicate their statutory responsibilities
to the public. Executive Order 13891 (E.O. 13891), Promoting the Rule of Law Through Improved Agency Guidance Documents, establishes government-wide standards to ensure that guidance documents are transparent, accessible, and properly identified
as non-binding unless authorized by law. Further, E.O. 13891 directs agencies to organize and maintain their guidance in a
manner that reflects their purpose, ensures public availability, and reinforces the distinction between regulations and non-regulatory
interpretive materials.

Likewise, E.O. 13777, Enforcing the Regulatory Reform Agenda, required Federal agencies to evaluate existing regulations to implement regulatory reform initiatives and policies in order
to streamline, clarify, or eliminate unnecessary or outdated requirements. In response to E.O. 13777, GSA initiated a comprehensive
review of its regulatory portfolio.

During GSA's review of its regulations, the Agency determined that its implementing regulation for the Age Act was improperly
codified in the FPMR at 41 CFR part 101-8.7. The FPMR contains government-wide policy and guidance that applies across Federal
agencies; however, the regulations at issue prohibit age discrimination in programs and activities of entities receiving Federal
financial assistance through GSA and should be relocated to the GSPMR at 41 CFR part 105, which contains regulations that
apply only to GSA. Relocating the regulations embraces the spirit and intent of E.O. 13777 to eliminate unnecessary regulatory
costs by allowing GSA to close out the FPMR. See also E.O. 13771 Reducing Regulation and Controlling Regulatory Costs.

In summary, relocating the Age Act regulation is necessary to correct the regulatory placement, improve transparency and public
understanding, and ensure consistency with E.O. 13777.

Purpose of the Regulation

The legislative history of the Age Act reflects Congress's findings that age-based discrimination in federally assisted programs
and activities constituted a barrier to full and fair participation by individuals of all ages. Congress identified a national
need to establish uniform protections against age discrimination, consistent with its broader efforts to address age-related
inequities, including those reflected in contemporaneous initiatives concerning older workers and older Americans. In November
1975, Congress enacted the Age Act as an amendment to the Older Americans Act (Pub. L. 94-135) to prohibit discrimination
on the basis of age in all programs and activities receiving Federal financial assistance (42 U.S.C. 6101 et seq.). Within the text of the statute, Congress directed the U.S. Department of Health and Human Services (HHS) to issue regulations
necessary to carry out the law. (42 U.S.C. 6103). Pursuant to this mandate, HHS promulgated government-wide regulations that
require the head of each agency that extends federal financial assistance to any program or activity to publish regulations
prohibiting age discrimination in the recipient's programs and activities. (45 CFR part 90). This statutory and regulatory
framework provides the basis and authority for GSA's regulation and supports the agency's continued obligation to maintain
and update its implementing regulation.

GSA provides federal assistance through grants, public conveyances, and state surplus property programs and must hold its
recipients accountable to the requirements of the Age Act and GSA's regulation. For example, GSA is required to define how
the regulation applies to those programs, and establish its own compliance procedures, including a process for addressing
complaints of age discrimination.

GSA's Age Act regulation gives GSA clear authority to conduct compliance reviews, investigate complaints, impose corrective
actions, and enforce nondiscrimination requirements on recipients of GSA assistance. Without its own regulation, GSA could
not formally impose requirements or take enforcement action to ensure compliance.

Additionally, GSA's regulation ensures that compliance requirements are tailored to real property, surplus property, and unique
GSA assistance programs; processes that align with other GSA civil rights regulations, and compliance procedures that reflect
GSA structure and workflows.

Having its own regulation ensures that GSA can update relevant terminology when necessary, modernize complaint-processing
processes; add procedural clarity; and ensure alignment with current executive orders and the standards of other enforcement
agencies.

Moreover, the regulation continues to be necessary because it provides protections for individuals interacting with GSA-funded
programs; establishes clear expectations for GSA's recipients; supports GSA's compliance with government-wide civil rights
responsibilities; and provides transparency, oversight, and accountability mechanisms to prevent age discrimination. GSA's
regulation provides procedures to administer and authority to enforce the Age Act.

No Substantive Policy Change

The migration of GSA's Age Act regulation makes no amendments to the underlying regulatory text; rather, it places the regulation
in the appropriate part of the CFR to align with GSA's organizational structure and regulatory framework.

II. Discussion of the Final Rule

The revisions are administrative and non-substantive in nature. They do not modify policy intent, regulatory requirements,
or program operations. Because the action has no economic impact, no additional costs, and no effect on the rights or responsibilities
of any party, it does not constitute a significant regulatory action. The non-substantive changes are updating the numbering
and cross-references due to the move to a new subpart, and the two sections with definitions have been combined into one to
streamline the regulation.

III. Administrative Procedure Act

This rulemaking is exempt from the advance notice-and-comment and delayed-effective-date requirements of the Administrative
Procedure Act (APA) pursuant to 5 U.S.C. 553(a)(2), because this rulemaking relates to agency management or personnel or to
public property, loans, grants, benefits, or contracts. This rulemaking relates to both GSA's agency management and public
property because it applies to Federally owned facilities under the jurisdiction, custody and control of GSA and the disposition
of personal property.

IV. Executive Orders 12866, 13563, and 14192

E.O. 12866 (Regulatory Planning and Review) directs agencies to assess all costs and benefits of available regulatory alternatives
and, if regulation is necessary, to select regulatory approaches that maximize net benefits. E.O. 13563 (Improving Regulation
and Regulatory Review) emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing
rules, and of promoting flexibility. The Office of Management and Budget's Office of Information and Regulatory Affairs (OIRA)
has determined that this rule is a significant regulatory action and, therefore, it was reviewed under Section 6(b) of E.O.
12866. This rule is not an E.O. 14192 regulatory action because this rulemaking is related to agency organization, management,
or personnel.

V. Congressional Review Act

This rule does not meet the definition of a rule under 5 U.S.C. 804. OIRA has determined that this rule does not meet the
definition of a major rule under 5 U.S.C. 804. Title II, Subtitle E of the Small Business Regulatory Enforcement Fairness
Act of 1996 (codified at 5 U.S.C. 801-808), is also known as the Congressional Review Act or CRA. The CRA generally provides
that before a rule may take effect, unless excepted, the agency promulgating the rule must submit a rule report, which includes
a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. This rule is excepted
from CRA reporting requirements prescribed under 5 U.S.C. 801 as it relates to agency management or personnel under 5 U.S.C.
804(3)(B).

VI. Regulatory Flexibility Act

This final rule will not have a significant economic impact on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. This final rule is also exempt from the APA pursuant to 5 U.S.C. 553(a)(2) because it applies to agency management or personnel
or to public property, loans, grants, benefits, or contracts. Therefore, an Initial Regulatory Flexibility Analysis was not
performed.

VII. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FMR do not impose recordkeeping or information collection
requirements, or the collection of information from offerors, contractors, or members of the public that require the approval
of OMB under 44 U.S.C. 3501, et seq.

Edward Forst, Administrator. For the reasons set forth in the preamble, GSA amends 41 CFR subchapter A as follows:

Regulatory Text 1. The authority citation for Title 41 CFR part 101-8 continues to read as follows:

Authority:

Title 40 U.S.C. 121(c).

PART 101-8.7 [REMOVED]

Regulatory Text 2. Remove subpart 101-8.7, consisting of §§ 101-8.700 through 101-8.725.

1. Add part 105-9 to read as follows:

Subpart 105-9—Discrimination Prohibited on the Basis of Age

Sec. 105-9.101 Purpose of the Age Discrimination Act of 1975. 105-9.102 Scope of General Services Administration's age discrimination regulation. 105-9.103 Applicability. 105-9.104 Definitions of terms. 105-9.105 Rules against age discrimination. 105-9.106 Exceptions to the rules against age discrimination 105-9.107 Reasonable factors other than age. 105-9.108 Burden of proof. 105-9.109 Affirmative action by recipient. 105-9.110 Special benefits for children and the elderly. 105-9.111 Age distinctions contained in General Services Administration regulation. 105-9.112 General responsibilities. 105-9.113 Notice to subrecipients and beneficiaries. 105-9.114 Assurance of compliance and recipient assessment of age distinctions. 105-9.115 Information requirements. 105-9.116 Compliance reviews. 105-9.117 Complaints. 105-9.118 Mediation. 105-9.119 Investigation. 105-9.120 Prohibition against intimidation or retaliation. 105-9.121 Compliance procedure. 105-9.122 Hearings. 105-9.123 Decisions and notices. 105-9.124 Remedial action by recipient. 105-9.125 Exhaustion of administrative remedies. 105-9.126 Alternate funds disbursal.

Authority:

Title 40 U.S.C. 121(c).

§ 105-9.101 Purpose of the Age Discrimination Act of 1975.

The Age Discrimination Act of 1975, as amended, prohibits discrimination on the basis of age in programs or activities receiving
Federal financial assistance.

§ 105-9.102 Scope of General Services Administration's age discrimination regulation.

This regulation sets out General Services Administration's (GSA) policies and procedures under the Age Discrimination Act
of 1975, as amended, in accordance with 45 CFR part 90. The Act and the Federal regulation permits Federally assisted programs
or activities to continue to use certain age distinctions and factors other than age which meet the requirements of the Act
and its implementing regulations.

§ 105-9.103 Applicability.

(a) The regulation applies to each GSA recipient and to each program or activity operated by the recipient.

(b) The regulations does not apply to:

(1) An age distinction contained in that part of Federal, State, local statute or ordinance adopted by an elected, general
purpose legislative body that:

(i) Provides any benefits or assistance to persons based on age;

(ii) Establishes criteria for participation in age-related terms; or

(iii) Describes intended beneficiaries or target groups in age-related terms.

(2) Any employment practice of any employer, employment agency, labor organization or any labor-management apprenticeship
training program, except for any program or activity receiving Federal financial assistance for public service employment.

§ 105-9.104 Definitions of terms.

As used in these regulations, the term: Act means the Age Discrimination Act of 1975, as amended (Title III of Pub. L. 94-135).

Action means any act, activity, policy, rule, standard, or method of administration.

Age means how old a person is, or the number of years from the date of a person's birth.

Age distinction means any action using age or an age-related term.

Age-related term means a word or words that imply a particular age or range or ages (for example, children, adults, older person, but not student).

Agency means a Federal department or agency empowered to extend Federal financial assistance.

Agency Responsible Officials means:

(1) Administrator means the Administrator of General Services.

(2) Director, Office of Civil Rights means the individual responsible for managing the agency's nondiscrimination Federal financial assistance policy, or his or
her designee.

Federal financial assistance means-

(1) Grants and loans of Federal funds,

(2) The grant or donation of Federal property and interests in property,

(3) the services of Federal personnel,

(4) the sale and lease of, and the permission to use (on other than a casual or transient basis), Federal property or any
interest in such property without consideration or at a nominal consideration, or at a consideration which is reduced for
the purposes of assisting the recipient, or in recognition of the public interest to be served by such sale or lease to the
recipient, and

(5) any Federal agreement, arrangement, or other contract which has as one of its purposes the provision of assistance.

GSA means the United States General Services Administration.

Normal operation means the operation of a program or activity without significant changes that would inhibit meeting objectives.

Primary recipient means any recipient which is authorized or required to extend Federal financial assistance to another recipient.

Program or activity means all of the operations of any entity described in paragraphs (1) through (4) of this definition, any part of which is
extended Federal financial assistance:

(1)(i) A department, agency, special purpose district, or other instrumentality of a state or of a local government;

(ii) The entity of such state and local government that distributes such assistance and each such department or agency (and
each other state or local government entity) to which the assistance is extended, in the case of assistance to a state or
local government;

(2)(i) A college, university, or other postsecondary institution, or a public system of higher education; or

(ii) A local educational agency (as defined in title 20 U.S.C. 7801), system of vocational education, or other school system;

(3)(i) An entire corporation, partnership, or other private organization, or an entire sole proprietorship—

(A) If assistance is extended to such corporation, partnership, private organization, or sole proprietorship as a whole; or

(B) Which is principally engaged in the business of providing education, health care, housing, social services, or parks and
recreation; or

(ii) The entire plant or other comparable, geographically separate facility to which Federal financial assistance is extended,
in the case of any other corporation, partnership, private organization, or sole proprietorship; or

(4) Any other entity which is established by two or more of the entities described in paragraphs (1), (2), or (3) of this
definition.

Recipient means any State, political subdivision of any State, or instrumentality of any State or political subdivision, any public
or private agency, institution, or organization, or any other entity, or any individual, in any State, to whom Federal financial
assistance is extended, directly or through another recipient, including any successor, assign, or transferee thereof, but
such term does not include any ultimate beneficiary.

Statutory objective means any purpose of a program or activity expressly stated in any Federal, State, or local statute or ordinance adopted by
an elected, general purpose legislative body.

§ 105-9.105 Rules against age discrimination.

The rules stated in this section are limited by the exceptions contained in §§ 105-9.106 and 105-9.107 of this regulation.

(a) General rule. No person in the United States may on the basis of age, be excluded from participation, be denied the benefits of, or be subjected
to discrimination under any program or activity receiving Federal financial assistance from GSA.

(b) Specific rules. A recipient may not, in any program or activity receiving Federal financial assistance, directly or through contractual licensing,
or other arrangement, use age distinctions or take any other actions that have the effect on the basis of age, of:

(1) Excluding individuals from participating in, denying them the benefits of, or subjecting them to discrimination under
a program or activity receiving Federal financial assistance; or

(2) Denying or limiting individual opportunity to participate in any program or activity receiving Federal financial assistance.

(c) The forms of age discrimination listed in paragraph (b) of this section are not necessarily a complete list.

§ 105-9.106 Exceptions to the rules against age discrimination.

A recipient is permitted to take an action, otherwise prohibited, if the action reasonably takes into account age as a factor
necessary to the normal operation or achievement of any statutory objective of a program or activity. An action reasonably
takes into account age as a factor if:

(a) Age is used as a measure or approximation of one or more other characteristics; and

(b) The other characteristic must be measured or approximated for the normal operation of the program or activity to continue,
or to achieve any statutory objective of the program or activity; and

(c) The other characteristic can be reasonably measured or approximated by the use of age; and

(d) The other characteristic is impractical to measure directly on an individual basis.

§ 105-9.107 Reasonable factors other than age.

(a) A recipient is permitted to take an action, otherwise prohibited by § 105-9.106, which is based on something other than
age, even though the action may have a disproportionate effect on persons of different ages.

(b) An action may be based on a factor other than age only if the factor bears a direct and substantial correlation to the
normal operation of the program or activity or to the achievement of a statutory objective.

§ 105-9.108 Burden of proof.

The burden of proving that an age distinction or other action falls within the exceptions outlined in § 105-9.106 and 105-9.107
is the recipient's.

§ 105-9.109 Affirmative action by recipient.

Even in the absence of a finding of age discrimination, a recipient may take affirmative action to overcome the effects resulting
in limited participation in the recipient's program or activity.

§ 105-9.110 Special benefits for children and the elderly.

If a recipient's program or activity provides special benefits to the elderly or to children, such use of age distinctions
is presumed to be necessary to the normal operation of the program or activity.

§ 105-9.111 Age distinctions contained in General Services Administration regulation.

Any age distinctions contained in a rule or regulation issued by GSA are presumed to be necessary to the achievement of a
statutory objective of the program or activity to which the rule or regulation applies.

§ 105-9.112 General responsibilities.

Each recipient of Federal financial assistance from GSA is responsible for ensuring that its programs or activities comply
with the Act and this regulation and must take steps to eliminate violations of the Act. A recipient is also

  responsible for maintaining records, providing information, and affording GSA access to its records to the extent GSA finds
  necessary to determine whether the recipient is complying with the Act and this regulation.

§ 105-9.113 Notice to subrecipients and beneficiaries.

(a) If a primary recipient passes on Federal financial assistance from GSA to subrecipients, the primary recipient provides
to subrecipients, written notice of their obligations under the Act and this regulation.

(b) Each recipient makes necessary information about the Act and this regulation available to its beneficiaries to inform
them about the protections against discrimination provided by the Act and this regulation.

§ 105-9.114 Assurance of compliance and recipient assessment of age distinctions.

(a) Assurance of compliance. Each recipient of Federal financial assistance from GSA signs a written assurance as specified by GSA that it intends to comply
with the Act and this regulation.

(b) Recipient assessment of age distinctions. (1) As part of a compliance review under § 105-82.715 or complaint investigation under § 105-82.718, GSA may require a recipient
employing the equivalent of 15 or more employees to complete a written self-evaluation of any age distinction imposed in its
program or activity receiving Federal financial assistance from GSA to assess the recipient's compliance with the Act.

(2) If an assessment indicates a violation of the Act and the GSA regulation, the recipient takes corrective action.

§ 105-9.115 Information requirements.

Each recipient must:

(a) Keep records in a form and containing information that GSA determines necessary to ensure that the recipient is complying
with the Act and this regulation.

(b) Provide to GSA upon request, information and reports that GSA determines necessary to find out whether the recipient is
complying with the Act and this regulation.

(c) Permit reasonable access by GSA to books, records, accounts, facilities, and other sources of information to the extent
GSA finds it necessary to find out whether the recipient is complying with the Act and this regulation. GSA adopts the policy
of the U.S. Department of Health and Human Services (HHS) regarding the kinds of data and information recipients are expected
to maintain (Title 45 CFR Sec. 90.34). This regulation is parallel to compliance provisions in the implementing regulations
for Title VI of the Civil Rights Act of 1964 (Title VI), Title IX of the Education Amendments Act of 1972, and Sec. 504 of
the Rehabilitation Act of 1973. While recognizing the need for enough data to assess recipient compliance, GSA is committed
to reducing the data gathering burden on recipients. GSA further recognizes that there is no established body of knowledge
or experience to guide the assessment of age discrimination. This regulation, therefore, does not impose specific data requirements
upon recipients, rather, it allows GSA to be flexible in deciding what kinds of data should be kept by recipients, based on
what kinds of data prove useful as GSA gains experience with the Age Discrimination Act, and age discrimination issues become
clearer.

(d) In accordance with the Paperwork Reduction Act of 1980 (Pub. L. 59-511), the reporting and record keeping provisions included
in this regulation will be submitted, for approval, to the Office of Management and Budget (OMB). No data collection or record
keeping requirement will be imposed on recipients or donees without the required OMB approval number.

§ 105-9.116 Compliance reviews.

(a) GSA may conduct compliance reviews and use similar procedures to investigate and correct violations of the Act and this
regulation. GSA may conduct the reviews even in the absence of a complaint against a recipient. The reviews may be as comprehensive
as necessary to determine whether a violation of the Act and this regulation has occurred.

(b) If a compliance review indicates a violation of the Act or this regulation, GSA attempts to achieve voluntary compliance
with the Act. If compliance cannot be achieved, GSA arranges for enforcement as described in § 105-9.121.

§ 105-82.117 Complaints.

(a) Any person, individually or as a member of a class (defined at § 105-9.104 or on behalf of others, may file a complaint
with GSA alleging discrimination prohibited by the Act or this regulation based on an action occurring after July 1, 1979.
A complainant must file a complaint within 80 days from the date the complainant first has knowledge of the alleged act of
discrimination. However, for good cause shown, GSA may extend this time limit.

(b) GSA considers the date a complaint is filed to be the date upon which the complaint is sufficient to be processed.

(c) GSA attempts to facilitate the filing of complaints if possible, including taking the following measures:

(1) Accepting as a sufficient complaint, any written statement that identifies the parties involved and the date the complainant
first had knowledge of the alleged violation, describes the action or practice complained of, and is signed by the complainant;

(2) Freely permitting a complainant to add information to the complaint to meet the requirements of a sufficient complaint;

(3) Notifying the complainant and the recipient (or their representative) of their right to contact GSA for information and
assistance regarding the complaint resolution process.

(d) GSA returns to the complainant any complaint outside the jurisdiction of this regulation, and states the reason(s) why
it is outside the jurisdiction of the regulation.

§ 105-9.118 Mediation.

(a) GSA promptly refers to the mediation agency designated by the Secretary, HHS, all sufficient complaints that:

(1) Fall within the jurisdiction of the Act and this regulation, unless the age distinction complained of is clearly within
an exception; and

(2) Contain the information needed for further processing.

(b) Both the complainant and the recipient must participate in the mediation process to the extent necessary to reach an agreement
or make an informed judgement that an agreement is not possible. Both parties need not meet with the mediator at the same
time.

(c) If the complainant and the recipient agree, the mediator will prepare a written statement of the agreement and have the
complainant and the recipient sign it. The mediator must send a copy of the agreement to GSA. GSA takes no further action
on the complaint unless the complainant or the recipient fails to comply with the agreement.

(d) The mediator must protect the confidentiality of all information obtained in the course of the mediation. No mediator
may testify in any adjudicative proceeding, produce any document, or otherwise disclose any information obtained in the course
of the mediation process without prior approval of the head of the mediation agency.

(e) The mediation proceeds for a maximum of 60 calendar days after a

  complaint is filed with GSA. Mediation ends if:

(1) 60 calendar days elapse from the time the complaint is filed; or

(2) Before the end of the 60 calendar-day period an agreement is reached; or

(3) Before the end of that 60 calendar-day period, the mediator finds that an agreement cannot be reached.

(f)The 60 calendar day period may be extended by the mediator, with the concurrence of GSA, for not more than 30 calendar
days if the mediator determines that agreement is likely to be reached during the extension period.

(g) The mediator must return unresolved complaints to GSA.

§ 105-9.119 Investigation.

(a) Informal investigation. GSA investigates complaints that are unresolved after mediation or are reopened because of a violation of a mediation agreement.
As part of the initial investigation, GSA uses informal factfinding methods, including joint or separate discussions with
the complainant and the recipient, to establish the fact and, if possible, settle the complaint on terms that are mutually
agreeable to the parties. GSA may seek the assistance of any involved State agency. GSA puts any agreement in writing and
has it signed by the parties and an authorized official designated by the Administrator or the Director, Office of Organization
and Personnel. The settlement may not affect the operation of any other enforcement efforts of GSA, including compliance reviews
and investigation of other complaints that may involve the recipient. The settlement is not a finding of discrimination against
a recipient.

(b) Formal investigation. If GSA cannot resolve the complaint through informal investigation, it begins to develop formal findings through further investigation
of the complaint. If the investigation indicates a violation of these regulations, GSA attempts to obtain voluntary compliance.
If GSA cannot obtain voluntary compliance, it begins enforcement as described in § 105-9.121.

§ 105-9.120 Prohibition against intimidation or retaliation.

A recipient may not engage in acts of intimidation or retaliation against any person who:

(a) Attempts to assert a right protected by the Act of this regulation; or

(b) Cooperates in any mediation, investigation, hearing, conciliation, and enforcement process.

§ 105-9.121 Compliance procedure.

(a) GSA may enforce the Act and these regulations through:

(1) Termination of a recipient's Federal financial assistance from GSA under the program or activity involved where the recipient
has violated the Act or this regulation. The determination of the recipient's violation may be made only after a recipient
has had an opportunity for a hearing on the record before an administrative law judge.

(2) Any other means authorized by law including, but not limited to:

(i) Referral to the Department of Justice for proceeding to enforce any rights of the United States or obligations of the
recipients created by the Act or this regulation, or

(ii) Use of any requirement of or referral to any Federal, State, or local government agency that has the effect of correcting
a violation of the Act or this regulation.

(b) GSA limits any termination to the particular recipient and program or activity or part of such program or activity GSA
finds in violation of this regulation. GSA does not base any part of a termination on a finding with respect to any program
or activity of the recipient that does not receive Federal financial assistance from GSA.

(c) GSA takes no action under paragraph (a) of this section until:

(1) The administrator advises the recipient of its failure to comply with the Act and this regulation and determines that
voluntary compliance cannot be obtained, and

(2) 30 calendar days elapse after the Administrator sends a written report of the grounds of the action to the committees
of Congress having legislative jurisdiction over the program or activity involved. The Administrator files a report if any
action is taken under paragraph (a) of this section.

(d) GSA may also defer granting new Federal financial assistance from GSA to a recipient when a hearing under § 105-9.122
is initiated.

(1) New Federal financial assistance from GSA includes all assistance for which GSA requires an application or approval, including
renewal or continuation of existing activities, or authorization of new activities, during the deferral period. New Federal
financial assistance from GSA does not include assistance approved before the beginning of a hearing.

(2) GSA does not begin a deferral until the recipient receives notice of an opportunity for a hearing under § 105-9.122. GSA
does not continue a deferral for more than 60 calendar days unless a hearing begins within that time or the time for beginning
the hearing is extended by mutual consent of the recipient and the Administrator. GSA does not continue a deferral for more
than 30 calendar days after the close of the hearing, unless the hearing results in a finding against the recipient.

(3) GSA limits any deferral to the particular recipient and program or activity or part of such program or activity GSA finds
in violation of these regulations. GSA does not base any part of a deferral on a finding with respect to any program or activity
of the recipient which does not, and would not, receive Federal financial assistance from GSA.

§ 105-9.122 Hearings.

(a) Opportunity for hearing. Whenever an opportunity for a hearing is required, reasonable notice shall be given by registered or certified mail, return
receipt requested, to the affected applicant or recipient. This notice shall advise the applicant or recipient of the action
proposed to be taken, the specific provision under which the proposed action against it is to be taken, and the matters of
fact or law asserted as the basis for this action; and either fix a date not less than 20 days after the date of such notice
within which the applicant or recipient may request of the responsible GSA official that the matter be scheduled for hearing
or advise the applicant or recipient that the matter in question has been set down for hearing at a stated place and time.
The time and place so fixed shall be reasonable and shall be subject to change for cause. The complainant, if any, shall be
advised of the time and place of the hearing. An applicant or recipient may waive a hearing and submit written information
and argument for the record. The failure of an applicant or recipient to request a hearing for which a date has been set shall
be deemed to be a waiver of the right to a hearing under section 602 of the Act, and consent to the making of a decision on
the basis of such information as may be filed as the record.

(b) Time and place of hearing. Hearings shall be held at GSA in Washington, DC, at a time fixed by GSA's Associate Administrator, for the Office of Civil
Rights unless he or she determines that the convenience of the applicant or recipient or of GSA requires that another place
be selected. Hearings/Virtual hearings shall be held before a hearing examiner designated in accordance with Title 5 U.S.C.
Secs. 3105 and 3344 (section 11 of the Administrative Procedure Act).

(c) Right to counsel. In all proceedings under this section, the applicant or

  recipient and GSA shall have the right to be represented by counsel.

(d) Procedures, evidence, and record. (1) The hearing, decision, and any administrative review thereof shall be conducted in conformity with Secs. 5-8 of the Administrative
Procedure Act, and in accordance with such rules of procedure as are proper (and not inconsistent with this section) relating
to the conduct of the hearing, giving of notices subsequent to those provided for in paragraph (a) of this section, taking
of testimony, exhibits, arguments and briefs, requests for findings, and other related matters. Both GSA and the applicant
or recipient shall be entitled to introduce all relevant evidence on the issues as stated in the notice for hearing or as
determined by the Officer conducting the hearing at the outset of or during the hearings. Any person (other than a Government
employee considered to be on official business) who, having been invited or requested to appear and testify as a witness on
the Government's behalf, attends at a time and place scheduled for a hearing provided for by this part, may be reimbursed
for his or her travel and actual expenses of attendance in an amount not to exceed the amount payable under the standardized
travel regulations to a Government employee traveling on official business.

(2) Technical rules of evidence shall not apply to hearings conducted pursuant to this part, but rules or principles designed
to assure production of the most credible evidence available and to subject testimony to test by cross-examination shall be
applied where reasonably necessary by the officer conducting the hearing. The hearing officer may exclude irrelevant, immaterial,
or unduly repetitious evidence. All documents and other evidence offered or taken for the record shall be open to examination
by the parties and opportunity shall be given to refute facts and arguments advances on either side of the issues. A transcript
shall be made of the oral evidence except to the extent the substance thereof is stipulated for the record. All decisions
shall be based upon the hearing record and written findings shall be made.

(e) Consolidated Joint Hearings. In cases in which the same or related facts are asserted to constitute non-compliance with this regulation with respect to
two or more Federal statutes, authorities, or other means by which Federal financial assistance is extended and to which this
part applies, or noncompliance with this part, and the regulations of one or more other Federal departments or agencies issued
under Title VI, the responsible GSA official may, by agreement with such other departments or agencies where applicable, provide
for the conduct of consolidated or joint hearings, and for the application to such hearings of rules of procedures not inconsistent
with this part. Final decisions in such cases, insofar as this regulation is concerned, shall be made in accordance with § 105-9.123.

§ 105-9.123 Decisions and notices.

(a) Decisions by hearing examiners. After a hearing is held by a hearing examiner such hearing examiner shall either make an initial decision, if so authorized,
or certify the entire record including his recommended findings and proposed decision to the Agency designated reviewing authority
for final decision. A copy of such initial decision or certification shall be mailed to the applicant or recipient and to
the complainant, if any. Where the initial decision referred to in this paragraph or in paragraph (c) of this section is made
by the hearing examiner, the applicant or recipient or the counsel for GSA may, within the period provided for in the rules
of procedure issued by GSA official, file with the reviewing authority exceptions to the initial decision, with his or her
reasons therefore. Upon the filing of such exceptions the reviewing authority shall review the initial decision and issue
a decision including the reasons therefore. In the absence of exceptions the initial decision shall constitute the final decision,
subject to the provisions of paragraph (e) of this section.

(b) Decisions on record or review by the reviewing authority. Whenever a record is certified to the reviewing authority for decision or it reviews the decision of a hearing examiner pursuant
to paragraph (a) or (c) of this section, the applicant or recipient shall be given reasonable opportunity to file with it
briefs or other written statements of its contentions, and a copy of the final decision of the reviewing authority shall be
given in writing to the applicant or recipient and to the complainant, if any.

(c) Decisions on record where a hearing is waived. Whenever a hearing is waived pursuant to § 105-9.122(a) the reviewing authority shall make its final decision on the record
or refer the matter to a hearing examiner for an initial decision to be made on the record. A copy of such decision shall
be given in writing to the applicant or recipient, and to the complainant, if any.

(d) Rulings required. Each decision of a hearing examiner or reviewing authority shall set forth a ruling on each findings, conclusion, or exception
presented, and shall identify the requirement or requirements imposed by or pursuant to this part with which it is found that
the applicant or recipient has failed to comply.

(e) Review in certain cases by the Administrator. If the Administrator has not personally made the final decision referred to in paragraph (a), (b), or (c) of this section,
a recipient or applicant or the counsel for GSA may request the Administrator to review a decision of the Reviewing Authority
in accordance with rules of procedure issued by the responsible GSA official. Such review is not a matter of right and shall
be granted only where the Administrator determines there are special and important reasons therefore. The Administrator may
grant or deny such request, in whole or in part. He or she may also review such a decision in accordance with rules of procedure
issued by the responsible GSA official. In the absence of a review under this paragraph, a final decision referred to in paragraphs
(a), (b), (c) of this section shall become the final decision of GSA when the Administrator transmits it as such to Congressional
committees with the report required under section 602 of the Act. Failure of an applicant or recipient to file an exception
with the Reviewing Authority or to request review under this paragraph shall not be deemed a failure to exhaust administrative
remedies for the purpose of obtaining judicial review.

(f) Content of orders. The final decision may provide for suspension or termination of, or refusal to grant or continue Federal financial assistance,
in whole or in part, to which this regulation applies, and may contain such terms, conditions and other provisions as are
consistent with and will effectuate the purposes of the Act and this regulation, including provisions designed to assure that
no Federal financial assistance to which this regulation applies will thereafter be extended under such law or laws to the
applicant or recipient determined by such decision to be in default in its performance of an assurance given by it pursuant
to this regulation, or to have otherwise failed to comply with this regulation unless and until it corrects its noncompliance
and satisfies the responsible GSA official that it will fully comply with this regulation.

(g) Post-termination proceedings. (1) An applicant or recipient adversely affected by an order issued under paragraph (f) of this section shall be restored
to full eligibility to receive Federal financial assistance if it satisfies the terms and conditions of that order

  for such eligibility or if it brings itself into compliance with this part and provides reasonable assurance that it will
  fully comply with this part.

(2) Any applicant or recipient adversely affected by an order entered pursuant to paragraph (f) of this section may at any
time request the responsible GSA official to restore fully its eligibility to receive Federal financial assistance. Any such
request shall be supported by information showing that the applicant or recipient has met the requirements of paragraph (g)(1)
of this section. If the responsible GSA official determines that those requirements have been satisfied, he or she shall restore
such eligibility.

(3) If the responsible GSA official denies any such request, the applicant or recipient may submit a request for a hearing
in writing, specifying why it believes such official to have been in error. It shall therefore be given an expeditious hearing,
with a decision on the record, in accordance with rules of procedure issued by the responsible GSA official. The applicant
or recipient will be restored to such eligibility if it proves at such hearing that it satisfied the requirements of paragraph
(g)(1) of this section. While proceedings under this paragraph are pending, the sanctions imposed by the order issued under
paragraph (f) of this section shall remain in effect.

§ 105-9.124 Remedial action by recipient.

If GSA finds a recipient discriminated against on the basis of age, the recipient must take any remedial action that GSA may
require to overcome the effects of the discrimination. If another recipient exercises control over the recipient that discriminated,
GSA may require both recipients to take remedial action.

§ 105-9.125 Exhaustion of administrative remedies.

(a) A complainant may file a civil action following the exhaustion of administrative remedies under the Act. Administrative
remedies are exhausted if:

(1) 180 calendar days elapse after the complainant files the complaint and GSA makes no finding with regard to the complaint;
or

(2) GSA Issues a finding in favor of the recipient.

(b) If GSA fails to make a finding within 180 days or issues a finding in favor of the recipient, GSA must:

(1) Promptly advise the complainant of this fact;

(2) Advise the complainant of his or her right to bring civil action for injunctive relief; and

(3) Inform the complainant:

(i) That the complainant may bring civil action only in a United States district court for the district in which the recipient
is located or transacts business;

(ii) That a complainant prevailing in a civil action has the right to be awarded the costs of the action, including reasonable
attorney's fees, but that the complainant must demand these costs in the complaint;

(iii) That before commencing the action the complainant must give 30 calendar days notice by registered mail to the Secretary,
HHS, The Administrator, the Attorney General of the United States, and the recipient;

(iv) That the notice must state the alleged violation of the Act, the relief requested, the court in which the complainant
is bringing the action, and whether or not attorney's fees are demanded in the event the complainant prevails; and

(v) That the complainant may not bring an action if the same alleged violation of the Act by the same recipient is the subject
of a pending action in any court of the United States.

§ 105.9-126 Alternate funds disbursal.

If GSA withholds Federal financial assistance from a recipient under this regulation, the Administrator may disburse the assistance
to an alternate recipient; any public or nonprofit private organization; or agency or State or political subdivision of the
State. The Administrator requires any alternate recipient to demonstrate:

(a) The ability to comply with this regulation; and

(b) The ability to achieve the goals of the Federal Statutes authorizing the Federal financial assistance.

[FR Doc. 2026-04486 Filed 3-5-26; 8:45 am] BILLING CODE 6820-UD-P

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