The Bureau of Indian Affairs, part of the Interior Department, issued a final rule on inflation adjustments for civil monetary penalties, effective January 28, 2021. This rule is part of an annual process mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which aims to keep penalties effective in deterring violations by adjusting for inflation. Using guidance from the Office of Management and Budget (OMB), the Bureau calculated the 2021 cost-of-living adjustment to be 1.01182%. These updated penalties apply to violations occurring after November 2, 2015.
Simple Explanation
The Bureau of Indian Affairs changed the rules to make penalty fees a little bit bigger because things cost more now, so people will still follow the rules. They figured out the new amounts by doing some math to keep up with rising prices.