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OMB M-26-11 Cancels 2026 Penalty Inflation Adjustments Under Federal Civil Penalties Act

OMB Memorandum M-26-11 cancels the 2026 annual civil monetary penalty inflation adjustment under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, citing lack of October 2025 CPI-U data from BLS due to a lapse in federal appropriations. The Act requires October BLS data for annual cost-of-living adjustments and provides no alternative calculation method; OMB concludes it lacks statutory authority to use an alternative and warns that any effort to do so would face significant litigation risk. Agencies remain required to publish a Federal Register notice reflecting the annual adjustment outcome and to maintain and report penalty updates through their Agency Financial Reports per OMB Circular A-136.