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Montana part of multi-state lawsuit over Section 504 changes, advocates raise concerns

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GREAT FALLS — Montana is one of several states involved in an ongoing federal lawsuit challenging changes made in 2024 to Section 504 of the Rehabilitation Act of 1973, a law that requires programs receiving federal funding to provide accommodations for people with disabilities.

At the center of the case is how the federal government defines when someone is “at risk” of being placed in an institutional setting, and how far states must go to prevent that.

Madison Collier reports - watch the video here:

Montanans react to "504" lawsuit

In a statement to MTN News, Attorney General Austin Knudsen’s office said the lawsuit is focused on returning Section 504 rules to how they were applied before the 2024 update.

“Attorney General Knudsen is seeking Section 504 return to the status quo, after a Biden-era rule would have put federal funding at risk for disabled people. Attorney General Knudsen’s lawsuit seeks to protect students served by Section 504 in Montana. However, bad faith actors are attempting to scare Montanans into believing that the lawsuit puts Section 504 of the Rehabilitation Act in jeopardy.

On background:In January, the Trump Administration proposed a revision to the Biden-era rule, that will reverse the rule’s inclusion of gender dysphoria as a federally protected disability. Attorney General Knudsen recently wrote a letter in support of President Trump’s revision.

The Biden rule is also unconstitutional by effectively restricting states from expanding or experimenting with services for people with disabilities and incentivizes decreasing services to avoid liability concerns. We are waiting to see how and if the Trump Administration decides to act on that before dropping the lawsuit.”

The Attorney General’s office also pointed to concerns about how the updated rule could affect how states manage and deliver services, particularly when it comes to legal risk and flexibility.

The 2024 update to Section 504 included expanded language around what it means for someone to be “at risk” of institutionalization and reinforced requirements that services be provided in the most integrated setting possible.

That framework is tied to the U.S. Supreme Court’s Olmstead v. L.C. decision, which affirmed that people with disabilities have the right to receive services in community-based settings when appropriate.

The lawsuit filed by multiple states asks the court to block or roll back those updated provisions.

Disability advocates across Montana argue those changes are essential to protecting the rights of people with disabilities, particularly the ability to live independently in their communities.

A flyer distributed by advocacy groups, including Disability Rights Montana and the state’s network of Independent Living Centers, warns the lawsuit could weaken safeguards that prevent unnecessary institutionalization.

Look at the full flyer: here

Those groups say Section 504 protections help ensure access to services many Montanans rely on, including:

Shyla Patera, a policy and peer coordinator with Northcentral Independent Living, said those protections have long shaped what daily life looks like for people with disabilities.

“Americans with disabilities have the right to live, work and play in our communities and environments of choice where possible,” Patera said.

She said Section 504 has served as a foundation for broader disability rights laws and access to services.

“If we didn’t have Section 504 and some of the disability rights laws that we do, I wouldn’t have had the life I have had,” Patera said. “We wouldn’t have what we have today.”

The case remains ongoing, with states asking the court to revisit the 2024 changes.

Meanwhile, the federal government is also considering revisions to the rule, which could impact how the lawsuit moves forward.

For now, both sides agree on the importance of Section 504, but continue to disagree on how it should be applied, and what those changes could mean for people who rely on disability services across Montana.