Through this final rule, HUD eliminates the restrictions for Fair Housing Initiatives Program (FHIP) grantees and for Fair Housing Assistance Program (FHAP) agencies that currently bar FHIP and FHAP funded entities from using HUD funds to deploy fair housing testers with prior felony convictions or convictions of crimes involving fraud or perjury. The final rule ensures that FHIP and FHAP funded entities are able to fully investigate criminal background screening policies that are potentially discriminatory under federal civil rights laws by using a diverse group of testers with actual criminal convictions. This final rule also improves inclusivity in HUD programs for people with criminal convictions, consistent with President Joseph R. Biden's March 31, 2022 Proclamation on Second Chance Month and Secretary Marcia Fudge's April 12, 2022 Memorandum, "Eliminating Barriers That May Unnecessarily Prevent Individuals with Criminal Histories from Participating in HUD Programs," and is based on a HUD determination that no valid interest is served by categorically barring FHIP and FHAP funded entities from using testers with such convictions.