Last Updated: April 16, 2025

Recent Update: On April 11, 2025, the 17 plaintiff states filed another Joint Status Report announcing they "have no intention to seek any relief from this Court on Count 3 (Section 504 is Unconstitutional)." While this represents a retreat from their broadest challenge, the states continue to challenge the 2024 updated regulations. The case remains on hold with the court as parties negotiate next steps.

In September 2024, seventeen states filed a lawsuit that sent shockwaves through the disability community. The case, originally titled Texas v. Becerra and now known as Texas v. Kennedy following the administration change, represents one of the most significant challenges to disability rights in decades. This comprehensive analysis explains what the lawsuit is about, why Section 504 matters, and what's at stake for millions of Americans with disabilities.

What is Texas v. Kennedy?

Filed on September 26, 2024, in the Northern District of Texas, this lawsuit represents a coordinated effort by 17 states to challenge the Department of Health and Human Services (HHS) 2024 updated regulations implementing Section 504 of the Rehabilitation Act. The plaintiff states include Texas, Alaska, Alabama, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, South Carolina, South Dakota, Utah, and West Virginia.

The lawsuit initially asked the court not only to invalidate the 2024 regulations but also to declare Section 504 itself unconstitutional - a request that would have eliminated half a century of disability rights protections. While the states have recently backed away from their constitutional challenge, they continue to oppose key aspects of the updated regulations.

What is Section 504 and Why Does It Matter?

Section 504 is a foundational disability rights law that prohibits discrimination against people with disabilities by recipients of federal funding. Signed into law over 50 years ago as part of the Rehabilitation Act of 1973, Section 504 established that:

"No otherwise qualified individual with a disability in the United States... shall, solely by reason of her or his disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance."

This powerful civil rights protection applies to virtually all sectors of society that receive federal funding, including:

• Healthcare providers and hospitals that accept Medicare or Medicaid

• Educational institutions from preschools to universities

• State and local government agencies

• Housing programs that receive federal assistance

• Public transportation systems

• Employment in federally funded workplaces

Real-World Impact of Section 504

Section 504 ensures that schools provide accommodations to students with disabilities through "504 Plans." It requires healthcare facilities to have accessible medical equipment, provide sign language interpreters, and make other reasonable accommodations. It guarantees people with disabilities the right to receive services in the most integrated setting appropriate to their needs rather than being unnecessarily segregated or institutionalized.

The 2024 HHS Final Rule: What Changed?

In May 2024, HHS finalized updates to its Section 504 regulations. These updates were designed to strengthen protections for people with disabilities and provide clearer guidance to entities receiving federal funding. Key provisions in the updated regulations include:

1. Integration Mandate: Requirements for providing services in "the most integrated setting" appropriate to individuals' needs

2. Enhanced Protections: Clarified standards for education, childcare, and child welfare systems

3. Disability Definition: Recognition that gender dysphoria may be considered a disability in some circumstances

4. Anti-Discrimination: Stronger protections against practices that result in segregation or institutionalization

What Are the States Objecting To?

The lawsuit challenges several aspects of the 2024 regulations:

1. Gender Dysphoria as a Disability

The plaintiff states object to HHS's statement that "gender dysphoria... may be considered a physical or mental impairment" entitled to protection. They argue this contradicts statutory language that excludes "gender identity disorders not resulting from physical impairments" from the definition of disability.

April 10, 2025 Update: HHS published a "clarification" in the Federal Register stating that the language about gender dysphoria in the preamble to the 2024 regulations "does not have the force or effect of law" and "cannot be enforced." This addresses one of the states' key complaints.

2. The "Integration Mandate"

The lawsuit challenges the requirement that recipients of federal funding must "administer a program or activity in the most integrated setting appropriate to the needs of a qualified person with a disability." The states claim this exceeds HHS's statutory authority.

3. The "At Risk" Theory of Discrimination

The states object to provisions that prohibit actions creating a "serious risk of institutionalization" even when no actual institutionalization has occurred or is imminent.

Critical Issues Remain: While the states have withdrawn their constitutional challenge to Section 504 itself, their continued opposition to the integration mandate and community-based services requirements threatens critical protections established by the Supreme Court in Olmstead v. L.C. that prevent unnecessary institutionalization of people with disabilities.

Recent Developments in the Case

The case has seen several significant developments since it was filed:

Date	Development
February 19, 2025	Joint Status Report filed where states attempted to "clarify" their position but maintained their constitutional challenge
April 10, 2025	HHS published a clarification in the Federal Register rejecting the statement that gender dysphoria could be a disability
April 11, 2025	States filed another Joint Status Report withdrawing their constitutional challenge to Section 504 itself

Current Status and Next Steps

Currently, the case is paused with a "stay" on proceedings. The parties have agreed to file another joint status report by June 21, 2025.

Several important questions remain unanswered:

• Will the states continue to challenge the integration mandate and other aspects of the 2024 regulations?

• Will the current administration vigorously defend these regulations?

• If not, will other parties be permitted to intervene to defend them?

Potential Impact if Regulations are Invalidated

While the constitutional threat to Section 504 has been withdrawn, the continued challenge to the 2024 regulations could still have serious consequences for people with disabilities:

Area	Potential Impact
Community Living	Weakened protections against unnecessary institutionalization and segregation of people with disabilities
Healthcare Access	Reduced requirements for accessible medical equipment and effective communication
Child Welfare	Fewer protections for parents with disabilities and children with disabilities in the child welfare system
Education	Less clarity about accommodations required in educational settings

How You Can Help Protect Section 504

If you live in one of the 17 plaintiff states, contact your state Attorney General and urge them to withdraw completely from this harmful lawsuit. Share your personal stories about how Section 504 has impacted your life or the lives of your loved ones.

Disability rights organizations are mobilizing to defend the Section 504 regulations, including preparing potential amicus briefs and organizing advocacy campaigns.

Learn More About Taking Action

The Historical Significance of Section 504

Section 504 holds a special place in disability rights history. Its implementing regulations were secured only after the longest occupation of a federal building in U.S. history – the 1977 Section 504 sit-in, where disability activists occupied the San Francisco HEW (now HHS) office for 28 days. This protest, led by disability rights advocates including Judy Heumann, was a pivotal moment in the disability rights movement.

The regulations that protesters fought for established the foundation for accessible buildings, transportation, and communication that we now take for granted. The Americans with Disabilities Act (ADA), passed in 1990, was modeled after Section 504 and expanded many of its protections.

Conclusion: What's at Stake

While the plaintiff states have stepped back from their broadest constitutional challenge to Section 504, this case represents a significant moment for disability rights in America. The outcome could shape how disability discrimination protections are interpreted and enforced for years to come.

For millions of Americans with disabilities and their families, Section 504 provides essential protections that enable full participation in society. Understanding this lawsuit and its potential implications is crucial for anyone concerned with civil rights and disability justice.

Stay updated on developments in this critical case by following disability rights organizations and legal news sources. The future of disability rights may depend on our collective response to this challenge.

504 Under Attack: Understanding the Texas v. Kennedy Lawsuit and Its Impact on Disability Rights