Texas v. Kennedy Update: Court Removes Section 504 Community Living Rules

A federal judge has approved an agreement in Texas v. Kennedy, a lawsuit involving Louisiana and four other states.

The court removed parts of federal Section 504 rules that explained how Section 504 applies to helping people with disabilities live and receive services in their communities.

This decision does not end Section 504, the Americans with Disabilities Act (ADA), or the U.S. Supreme Court’s Olmstead decision.

What happened?

On September 23, 2026, a federal judge approved an agreement between the U.S. Department of Health and Human Services (HHS) and five states: Louisiana, Texas, Alaska, Florida and Montana.

The court removed several parts of HHS’s 2024 Section 504 rules about community living.

These included:

• The definition of “most integrated setting”;
• The part of the rules about community integration; and
• Other language that said programs should give priority to services in the most integrated setting that is right for the person.

The court’s decision applies across the country, not just in the five states involved in the lawsuit.

The case is now closed.

What has not changed?

This is important.

Section 504 is still law.

The ADA is still law.

The U.S. Supreme Court’s Olmstead v. L.C. decision still stands.

Section 504 still protects people with disabilities from discrimination in programs and services that receive federal funding.

The ADA still protects people with disabilities from discrimination.

The Olmstead decision says that keeping people with disabilities separated from their communities when it is not needed can be discrimination under the ADA.

The court’s decision in Texas v. Kennedy did not change these laws or overturn Olmstead.

So, what did change?

The court removed HHS rules that gave states and programs clear direction about helping people with disabilities live and receive services in their communities.

The rules said services should be provided in the most integrated setting appropriate to a person’s needs.

In plain language, this means people with disabilities should have the chance to live, receive services and take part in their communities when that is right for them.

It can mean getting services at home or in the community instead of in an institution or another separate setting.

Without these rules, it may be less clear how Section 504 will be used to protect people who want to live and receive services in their communities.

Why does this matter?

Community-based services can help people with disabilities live in their own homes, stay close to family and friends, work and take part in their communities.

For some people, home- and community-based services, also called HCBS, can make it possible to live in the community instead of in a more restrictive setting.

The court’s decision does not mean community-based services are ending.

It also does not mean people with disabilities have lost all protections against being placed in institutions when they could be served in the community.

However, the decision removes federal rules that clearly explained how HHS should apply Section 504 to community living.

This may create more questions about how these protections will be used and enforced in the future.

What are disability organizations doing?

The Defend Community Integration Coalition is a group of national disability organizations working to protect the right of people with disabilities to live in their communities.

The National Association of Councils on Developmental Disabilities (NACDD) is part of this coalition. NACDD is the national membership association for state and territorial Developmental Disabilities Councils, including the Louisiana Developmental Disabilities Council.

The coalition has stressed that Section 504, the ADA and the Olmstead decision are still in place.

At the same time, the coalition has raised concerns about removing the HHS rules that gave states and programs clear direction about supporting people in community settings.

The coalition says it will continue working to protect community living for people with disabilities.

What happens next?

The Texas v. Kennedy case is now closed.

The Council will continue to follow how this decision may affect federal rules, guidance and enforcement related to community living.

We will share updates as more information becomes available.

Learn More and Stay Involved

NACDD has also launched Home Sweet Home: Your Community. Your Choice. This is a national campaign about community living.

The campaign has plain-language information and tools to help people with disabilities, families and advocates talk about why community living matters and build support in their own communities.

You can learn more through NACDD’s Home Sweet Home campaign.

People can also continue learning where candidates for the U.S. House and U.S. Senate stand on disability issues, including home- and community-based services and community living.

Asking the same questions of all candidates can help voters understand their views and priorities.

You can use the Louisiana Secretary of State’s Candidate Inquiry page to see who is running for office and find candidate contact information.

The Council does not support or oppose candidates for public office.fice.