Sponsors
Introduced July 31, 2025 by Shelley Moore Capito · Last progress July 31, 2025
The bill increases oversight, evaluation funding, research preparedness, and some student‑aid and ethical safeguards while imposing sizable rescissions, new policy restrictions (notably on reproductive and harm‑reduction services), salary caps, and added reporting/compliance burdens that reduce flexibility and may limit service access.
Taxpayers and the public: federal agencies and grantees must provide much more detailed, regular reporting (quarterly operating plans, unobligated balances, staffing and grant notices), increasing transparency about how taxpayer dollars are allocated and spent.
State and local governments, program administrators, and students/participants: the bill creates dedicated set‑asides and authority to fund program evaluations and multi‑year availability for evaluation dollars, which should improve program design and outcomes via evidence-based review.
State governments, Departments (DOL/HHS/ED), and program managers: limited transfer and reprogramming authorities (small percentage transfers and certain authorized NIH/DHHS transfers) give agencies some flexibility to shift funds toward higher priorities or urgent needs without new legislation.
Immigrants, unemployed workers, state and local programs, and taxpayers: the bill rescinds several large unobligated balances (including roughly $1.6B and additional hundreds of millions across agencies), reducing contingency funds and overall resources available for programs through FY2026.
People seeking reproductive health care, harm‑reduction services, and certain public‑health programs: broad prohibitions and restrictions on abortion funding/coverage, limits on Title X confidentiality, bans on funding for sterile needles/syringes in many cases, and other coverage restrictions will materially reduce access to reproductive and harm‑reduction services.
Scientists, senior program leaders, and grantees: capping grant‑funded salaries at Executive Level II (with limited exceptions) will make it harder for many institutions and programs to recruit and retain senior investigators and experienced managers, potentially weakening program quality.
Based on analysis of 10 sections of legislative text.
Sets FY2026 spending rules across Labor, HHS, Education, and CNCS, including salary caps, 1% transfer authority with limits, forced-child-labor procurement bans, Title X conditions, and grantee transparency requirements.
Sets conditions and limits on FY2026 federal spending across multiple agencies (Labor, HHS, Education, and the Corporation for National and Community Service). It caps salaries paid with appropriated funds at the Executive Level II rate in many places, allows limited transfers of up to 1% between discretionary programs (with a maximum 3% increase to any receiving account and 15 days’ notice to Appropriations Committees), bans procurement of goods or services produced with forced or indentured child labor in previously identified industries/locations, and attaches program-specific requirements (including new conditions on Title X family-planning funding and changes to AmeriCorps program rules). Also restricts certain departmental uses of internal fees and assessments unless reported to appropriations committees, requires public disclosure by grantees of federal funding shares, authorizes limited reception/representation expenses, permits agencies to transfer unspent prior-year balances into current accounts for like purposes, and makes targeted changes affecting student aid administration, loan outreach, and higher-education endowment scholarship uses.