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Introduced July 31, 2025 by Shelley Moore Capito · Last progress July 31, 2025
Sets FY2026 appropriations conditions and detailed program rules for the Departments of Labor, Health and Human Services, and Education, plus the Corporation for National and Community Service. It imposes salary caps on many grant-paid positions, rescinds and redirects unobligated balances, adds new transfer and reporting limits, changes certain immigration labor rules (H‑2B/H‑2 nonimmigrant windows and prevailing wage rules), authorizes limited DOL law enforcement authorities, restricts some program activities (Title X, USPSTF guidance, gun-control advocacy), and imposes procedural controls on NIH, CDC, BARDA, Job Corps, CNCS/AmeriCorps, and education programs. A large set of cross-cutting conditions requires advance notices to Appropriations Committees for transfers and major transactions, creates new reporting and transparency obligations, places caps on construction and compensation, and rescinds specific unobligated funds by Sept 30, 2026; many provisions take effect on enactment while some apply through FY2026–FY2027 or until specified deadlines.
The bill strengthens oversight, transparency, and some targeted program flexibilities while achieving significant budgetary and policy changes—trading billions in rescinded/held funds and new policy restrictions on research, reproductive health, labor protections, and program flexibility for tighter fiscal control and increased reporting/accountability.
Taxpayers and Congress: federal agencies must produce monthly operating plans, quarterly reports, and face tighter limits on midyear reprogramming, increasing transparency and reducing unexpected midyear shifts in spending.
Students, researchers, and public‑health systems: the bill stabilizes and clarifies funding and contracting authority for biomedical, HIV/opioid, and emergency countermeasure research (including BARDA multi‑year contracts and multi‑year research/evaluation fund availability), improving readiness and continuity for critical research.
Students and K–12/state education agencies: the bill requires timely awarding of formula grants and preserves some endowment income and borrower outreach efforts, making education funding and student aid more predictable and helping some borrowers access cancellation or qualifying repayment plans.
States, service providers, and program beneficiaries: the bill rescinds and places holds on many billions in unobligated and contingency balances (multiple large rescissions and a multi‑billion dollar hold), reducing funds available for planned activities and emergency responses.
Women and patients: broad prohibitions on federal funding for abortion services and coverage (with limited exceptions) restrict access to abortion care through programs covered by this bill.
Researchers, public‑health programs, and communities: prohibitions and policy restrictions (limits on HHS advocacy on gun control, bans on creating/destroying human embryos for research, and other research/advocacy limits) constrain certain biomedical and public‑health research and education activities.
1 competing bill is trying to fund this agency