Application of the Rehabilitation Act and Americans with Disabilities Act to State Institutionalization of Patients with Severe Mental Illness or Disabilities

CourtDepartment of Justice Office of Legal Counsel
DecidedJune 18, 2026
StatusPublished

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Application of the Rehabilitation Act and Americans with Disabilities Act to State Institutionalization of Patients with Severe Mental Illness or Disabilities, (olc 2026).

Opinion

(Slip Opinion)

Application of the Rehabilitation Act and Americans with Disabilities Act to State Institutionalization of Patients with Severe Mental Illness or Disabilities In prohibiting discrimination on the basis of disability, neither section 504 of the Rehabili- tation Act nor Title II of the Americans with Disabilities Act (“ADA”) imposed an inte- gration mandate on states in their treatment of mentally disabled individuals. Nor does either statute authorize the responsible Executive Branch agencies to impose such a mandate. A statutory mandate that states treat mentally disabled patients in maximally integrated settings would raise serious questions regarding the scope of Congress’s power under the Fourteenth Amendment, the Interstate Commerce Clause, and the Spending Clause. In Olmstead v. L.C. ex rel. Zimring, 527 U.S. 581 (1999), the Supreme Court did not hold that section 504 of the Rehabilitation Act or Title II of the ADA require states to treat mentally disabled patients in the most integrated setting appropriate to their needs.

June 18, 2026

MEMORANDUM OPINION FOR THE COUNSEL TO THE PRESIDENT

Since the early 1970s, Congress has enacted a number of legislative measures aimed at eliminating discrimination against disabled individuals in the United States. 1 One aspect of this antidiscrimination effort has been to ensure that services are available to individuals with disabilities on the same terms as to other individuals. In 1973, Congress passed the Rehabili- tation Act, section 504 of which prohibited discrimination based on disa- bility by entities administering “any program or activity receiving Federal financial assistance.” Pub. L. No. 93-112, § 504, 87 Stat. 355, 394 (codi- fied as amended at 29 U.S.C. § 794). In 1990, Title II of the Americans with Disabilities Act (“ADA”) applied that prohibition to the provision of public services by any “public entity.” Pub. L. No. 101-336, § 202, 104 Stat. 327, 337 (codified at 42 U.S.C. § 12132). In implementing these statutory proscriptions against discrimination, the Department of Health & Human Services (“HHS”) and the Depart-

1 Throughout history, the law has used terms to describe individuals with disabilities—

particularly mental or cognitive disabilities—that many consider cruel, disparaging, or even shameful. E.g., Michael Clemente, Note, A Reassessment of Common Law Protec- tions for “Idiots,” 124 Yale L.J. 2746, 2763–64 (2015). We take those terms as we find them without normative judgment regarding either their use or the people they describe.

1 50 Op. O.L.C. __ (June 18, 2026)

ment of Justice (“DOJ”) have required covered entities to administer their programs “in the most integrated setting appropriate to the needs of a qualified person with a disability.” 45 C.F.R. § 84.76(b) (HHS); see also 28 C.F.R. § 35.130(d) (DOJ) (nearly identical). 2 Imposing what is now known as the “integration mandate,” these regulations dictate the setting in which states must provide healthcare services to individuals with men- tal illness or disabilities. In promulgating its version of the mandate, DOJ explained that the “most integrated setting” is “a setting that enables individuals with disabilities to interact with nondisabled persons to the fullest extent possible.” 56 Fed. Reg. 35,694, 35,705 (July 26, 1991); accord 45 C.F.R. § 84.10 (HHS). Citing these regulations, the Supreme Court held in Olmstead v. L.C. ex rel. Zimring that “unjustified institu- tional isolation of persons with disabilities is a form of discrimination” prohibited under Title II. 527 U.S. 581, 600 (1999). Over the past two decades, DOJ’s Civil Rights Division (“CRT”) has relied on its integration mandate and Olmstead to pressure states into discharging individuals from mental-health institutions. See Olmstead: Community Integration for Everyone, ADA.gov (June 22, 2022), https:// perma.cc/LD7X-B8B3. By threatening or bringing federal enforcement action, CRT has successfully elicited consent decrees, remedial orders, or out-of-court agreements in nearly a dozen states, obligating the partici- pants to meet DOJ’s deinstitutionalization benchmarks. 3 As a result of these efforts, states typically agree to deinstitutionalize “based on each individual’s needs and not on the availability, perceived or actual, of current community resources and capacity.” Class Action Settlement Agreement at 14, United States v. New Hampshire, No. 12-cv-53 (D.N.H. Feb. 12, 2014), Dkt. 105. They also usually commit to “avoid admitting

2 The Secretary of HHS inherited the duties of the Secretary of Health, Education, and

Welfare for implementing section 504. See Pub. L. No. 96-88, § 301(a)(4)(A), 93 Stat. 668, 678 (1979) (codified at 20 U.S.C. § 3441(a)(4)(A)); see also 20 U.S.C. § 3508. The Attorney General has the same responsibility with respect to Title II. Pub. L. No. 101- 336, § 204, 104 Stat. at 337 (codified at 42 U.S.C. § 12134). 3 Memorandum for R. Jonas A. Geissler, Deputy Assistant Attorney General, Civil

Rights Division, from James Fletcher, Trial Attorney, Civil Rights Division, et al., Re: List of DRS Olmstead Matters in Various Stages (Apr. 6, 2026); Memorandum for R. Jonas A. Geissler, Deputy Assistant Attorney General, Civil Rights Division, Re: SPL Open Olmstead Matter (Apr. 6, 2026).

2 Whether the Rehabilitation Act or ADA Impose or Authorize an Integration Mandate

persons with developmental disabilities to [institutions], except where individuals’ acute psychiatric needs cannot be addressed in a more inte- grated service or treatment setting.” Id. at 15. You have asked us three questions relating to the integration mandate: (1) whether Olmstead conclusively decided that section 504 of the Reha- bilitation Act and Title II of the ADA impose (or authorize the imposition of) the integration mandate; (2) assuming the question remains open, whether Congress constitutionally could impose such a mandate; and (3) whether Congress statutorily did impose such a mandate.4 Having sought and considered the views of HHS, CRT, and the Office of Legal Policy (“OLP”), 5 we now answer the first and third questions in the nega- tive. Because we conclude that Congress has not imposed an integration mandate on states, we do not need to resolve the second question concern- ing such a mandate’s constitutionality. Nevertheless, the canon of consti- tutional avoidance—which applies due to the serious constitutional ques- tions posed by the mandate—supports our statutory conclusion.

I.

We start with whether Olmstead conclusively imposes an integration mandate as a requirement of Title II. We conclude that it does not. Alt- hough many have read Olmstead quite broadly, the Court’s actual holding was narrow: that “unjustified institutional isolation of persons with disa- bilities is a form of discrimination” prohibited under Title II. 527 U.S. at 600. This holding leaves several issues unresolved and forms the back- drop for the remainder of our analysis.

4 See E-mail for T. Elliot Gaiser, Assistant Attorney General, Office of Legal Counsel,

from Samuel D.

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