[Federal Register Volume 91, Number 87 (Wednesday, May 6, 2026)]
[Rules and Regulations]
[Pages 24366-24368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-08950]
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DEPARTMENT OF THE TREASURY
Bureau of the Fiscal Service
31 CFR Parts 337 and 345
RIN 1530-AA34
Eliminating Unnecessary Regulations
AGENCY: Bureau of the Fiscal Service, Fiscal Service, Treasury.
ACTION: Direct final rule.
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SUMMARY: Pursuant to an Executive order, the Department of the Treasury
(Treasury), Bureau of the Fiscal Service (Fiscal Service) is conducting
a review of existing regulations, with the goal of reducing regulatory
burden by revoking existing regulations that meet the criteria set
forth in the Executive order. In support of that objective, this direct
final rule streamlines title 31 of the Code of Federal Regulations
(CFR) by removing regulations that are no longer necessary or no longer
have any current or future applicability.
DATES: This rule is effective upon July 6, 2026 without further action,
unless significant adverse comment is received by June 5, 2026. If
Fiscal Service receives significant adverse comments, it will publish a
timely withdrawal in the Federal Register informing the public that
this rule will not take effect.
ADDRESSES: Submit comments electronically through the Federal
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eRulemaking Portal: (https://www.regulations.gov) or by mail to: Attn:
E.O. 14219 Comments, Elizabeth Spears, Senior Counsel, Bureau of Fiscal
Service, P.O. Box 396, Parkersburg, WV 26106-1328. Because paper mail
may be subject to delay, it is recommended that comments be submitted
electronically. Comments will be available for public inspection on
(https://www.regulations.gov). In general, comments received, including
attachments and other supporting materials, are part of the public
record and are available to the public. Do not submit any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT: Sara C. Badger, Special Assets &
Liabilities Division, Office of Accounting, Division Director or Jared
Waters, Program Manager, via email at [email protected], by
telephone at (304) 480-5299, or via U.S. Mail at Bureau of the Fiscal
Service, P.O. Box 396, Parkersburg, WV 26106-1328, for information on
the removal of the following parts of 31 CFR:
--part 337 (https://www.ecfr.gov/current/title-31/part-337)
--part 345 (https://www.ecfr.gov/current/title-31/part-345)
SUPPLEMENTARY INFORMATION:
Background
On April 9, 2025, the President issued a Presidential Memorandum,
Directing the Repeal of Unlawful Regulations, to implement Executive
Order 14219, Ensuring Lawful Governance And Implementing The
President's ``Department of Government Efficiency'' Deregulatory
Initiative (Deregulatory E.O.), 90 FR 10583 (Feb. 19, 2025). The
Deregulatory E.O. directed the heads of executive departments and
agencies to review their regulations and repeal those which are
unlawful or impose undue burdens, among other things.
This Direct Final Rule
This direct final rule removes regulations that are no longer
necessary, or have no current or future applicability and, therefore,
no longer provide useful guidance. Removing these regulations from the
Code of Federal Regulations will streamline title 31 and increase
clarity.
Explanation of Provisions
In accordance with the purposes described above, the regulations
removed are:
31 CFR part 337, Supplemental Regulations Governing Federal Housing
Administration Debentures
The Federal Housing Administration (FHA) provides mortgage
insurance on single-family, multifamily, manufactured home, and
hospital loans made by FHA-approved lenders throughout the United
States and its territories. The FHA, through Fiscal Service as its
agent, issued debentures under 31 CFR part 337 to settle claims on
certain insured mortgages.
The rescission action taken under this rule follows FHA's cost-
savings measure to remove the option of mortgagees to elect payment of
FHA insurance claims in debentures instead of cash. The Federal Housing
Commissioner, as delegated by the Secretary of the Department of
Housing and Urban Development, has the option of paying insurance
claims in either cash or debentures issued with respect to a loan or
mortgage insured by FHA under the provisions of the National Housing
Act (the Act) pursuant to 24 CFR 207.259(a)(1).
In 2015, FHA amended its regulations to bring consistency in
determining the method of payment for FHA insurance claims. The changes
eliminated provisions in HUD's regulations that provided mortgagees the
ability to request and receive payment of an insurance claim on a loan
insured under the Act in debentures. 80 FR 51466, 51468, Final Rule,
Federal Housing Administration (FHA): Standardizing Method of Payment
for FHA Insurance Claims (Aug. 25, 2015).
The debenture offering under 31 CFR part 337 remained open out of
an abundance of caution while FHA implemented cash payments as the
uniform, consistent method of paying insurance claims. In consultation
with FHA, Fiscal Service has determined that the offering is
unnecessary. Accordingly, FHA instructed that the annual interagency
agreement between FHA and Fiscal Service that was referenced in 80 FR
51466, 51466 and which was implemented through its service provider,
the Administrative Resource Center who serviced the outstanding
debentures, would not renew in Fiscal Year 2026. Therefore, Fiscal
Service is removing 31 CFR part 337.
Nonetheless, Fiscal Service continues to be responsible for
disbursing cash payments under 31 U.S.C. 3321 under its disbursement
function. Fiscal Service issued the final debenture pursuant to the Act
on February 3, 2011, and made the last maturity payment, with interest,
upon the redemption of a debenture submitted by an owner for payment on
July 2, 2012. In keeping with FHA's rule changes, Fiscal Service
redeemed all other remaining matured outstanding debentures
($209,264.15 in principal and interest) on October 1, 2025. These
redeemed debentures no longer contribute to the statutory debt limit
calculation codified at 31 U.S.C. 3101; however, Fiscal Service will
maintain the corresponding subsidiary ownership records until such time
as final payment is made to the owners.
31 CFR Part 345, Regulations Governing 5 Percent Treasury Certificates
of Indebtedness--R.E.A. Series
Fiscal Service is eliminating the Regulations Governing 5 Percent
Certificates of Indebtedness--R.E.A. Series promulgated in 31 CFR part
345 which were offered to the borrowers of the Rural Electrification
Administration (R.E.A.) and the Rural Telephone Bank. REA was abolished
in 1994, and its functions were assumed by Rural Utilities Service
(RUS). In consultation with RUS, Fiscal Service has determined that
this part is unnecessary. Moreover, the Rural Telephone Bank was
liquidated in 2006, and all of the bank shares were redeemed. There are
no remaining outstanding obligations left in the R.E.A. Series.
Therefore, Fiscal Service is removing 31 CFR part 345.
Procedural Requirements
This direct final rule is not a significant regulatory action under
Executive Order 12866, as amended. Therefore, a regulatory assessment
is not required. Because no notice of proposed rulemaking is required,
an analysis under the Regulatory Flexibility Act, 5 U.S.C. 601 et seq.,
does not apply.
The Fiscal Service is issuing this rule as a direct final rule.
Although the Administrative Procedure Act (APA; 5 U.S.C. 551-559)
generally requires agencies to provide notice and an opportunity for
comment, section 553(b)(B) of the APA provides an exception when the
agency ``for good cause finds'' that notice and comment are
``impracticable, unnecessary, or contrary to the public interest.''
Because this rule removes regulations that are no longer necessary or
have no current or future applicability, the Fiscal Service has
determined that it is unnecessary to undertake notice-and-comment
rulemaking under 5 U.S.C. 553.
List of Subjects
31 CFR Part 337
Government securities.
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31 CFR Part 345
Government securities.
0
For the reasons stated in the preamble and under the authority of 31
U.S.C. 321, Fiscal Service removes 31 CFR Parts 337 and 345.
By the Department of the Treasury.
Gary E. Grippo,
Acting Fiscal Assistant Secretary.
[FR Doc. 2026-08950 Filed 5-5-26; 8:45 am]
BILLING CODE 4810-AS-P