A federal court on September 23 entered an order vacating community integration requirements from Section 504 disability protections regulations. The action closed Texas v. Kennedy, a case brought by the U.S. Department of Health and Human Services, Texas, Florida, and Alaska challenging regulations updated in 2024 that required states to serve disabled people in community settings rather than institutions.
Section 504 of the Rehabilitation Act prohibits discrimination based on disability by recipients of federal funds. The Supreme Court's decision in Olmstead v. L.C. established that states must provide services to people with disabilities in community settings when appropriate. In June 2026, the U.S. Department of Justice's Office of Legal Counsel issued a memo arguing that states are not legally required to provide community-based care, prompting the federal challenge.
The court granted the request to vacate all references to community integration throughout the Section 504 regulations, including the entire integration provision.
California Attorney General Rob Bonta said his office will enforce disability protections statewide. "The segregation and isolation of people with disabilities is discrimination and is illegal in California," Bonta said. He noted that over 4.7 million Californians identify as having a disability and committed to using "the full force of my office to protect the rights of Californians with disabilities."