Overview
- The Departments of the Interior and Commerce finalized the rulemaking and published the final rule in the Federal Register on July 14, 2026, removing the agencies’ long‑standing regulatory definitions that treated habitat modification or degradation alone as ‘harm.’
- The rule is scheduled to take effect 60 days after publication on September 14, 2026, but multiple conservation groups have filed federal lawsuits and signaled motions for emergency injunctions that are likely to delay or narrow its implementation.
- Agencies say the change follows the Supreme Court’s 2024 Loper Bright decision limiting deference to agency interpretations and will reduce permitting requirements and compliance costs for developers, landowners, fishers and energy projects.
- Conservation groups and scientists warn the rescission removes a key tool for protecting species because habitat loss is the leading driver of extinction, while the rule is explicitly prospective and leaves existing incidental take permits and habitat conservation plans in force.
- The coming litigation will test whether the agencies lawfully replaced decades of regulatory interpretation without violating precedent or procedural requirements, and the outcome will determine whether federal habitat protections under the ESA are narrowed nationwide or restored.