Sponsors
This bill strengthens oversight, transparency, and some targeted program supports while imposing tighter transfer/reprogramming limits, rescissions, and social‑policy restrictions that reduce agencies' flexibility and can limit access to health, workforce, and service programs.
Millions of taxpayers and federal grant recipients get stronger transparency, reporting, and congressional notifications (more frequent notices/reports, public disclosure of federal funding shares, and notice-and-comment for major CNCS changes), improving oversight of how funds are spent.
State and local education and workforce programs are more likely to receive funds on time and avoid service interruptions because the bill requires prompt awarding of formula grants and allows agencies to reallocate unspent prior‑year balances for the same purposes.
Recipients of federal funds and taxpayers benefit from a prohibition on purchasing goods or services made with forced or indentured child labor in identified industries/countries, reducing indirect taxpayer support for abusive supply chains.
Federal agencies, state partners, and beneficiaries lose substantial budgetary agility because tight transfer/reprogramming limits, receiving caps, and lengthy prior‑notice requirements (and related restrictions repeated across agencies) make it harder to shift funding quickly to emerging priorities or emergencies.
Several rescissions and directed funding cuts (including ICE, Dislocated Workers Reserve, DOE unobligated balances, and IES) reduce available program resources and could curtail services, research, or state/local activities supported by those funds.
Restrictions and prohibitions on abortion funding, coupled with Title X conditioning and related eligibility rules, will reduce access to reproductive health services for some patients and may disrupt provider networks and coverage arrangements (including effects on Medicare Advantage participation rules).
Based on analysis of 10 sections of legislative text.
Sets FY2026 appropriations rules: limits transfers, caps certain grant-paid salaries, adds CNCS/AmeriCorps and Title X conditions, requires grantee funding disclosures, and bans forced-child-labor procurement.
Introduced July 31, 2025 by Shelley Moore Capito · Last progress July 31, 2025
Sets rules and limits on FY2026 appropriations for Labor, HHS, Education, and related programs. It limits transfers between accounts, caps certain grant-paid salaries at Executive Schedule Level II, adds programmatic conditions (including Title X parental counseling and mandatory reporting), places restrictions on AmeriCorps/CNCS grants and awards, requires public disclosure of federal share in funded projects, and bars use of funds for lobbying and certain abortion-related coverage. Also includes procurement rules banning use of funds for goods or services produced with forced or indentured child labor in previously identified countries/industries, allows small reception/representation spending at agencies, extends some evaluation fund availability into mid-2026–2027, and sets procedural notification requirements before transfers and contract terminations for specific FY2026 awards.