Budget reductions loom for various agencies due to the House's funding plan
The Republican Party (GOP) has unveiled its spending package for 2026, aiming to reduce spending in the short-term. The package targets a total of $9.4 billion in federal funding, with public media and foreign aid being major targets for cuts.
The U.S. Forest Service is set to experience a 1.2% reduction in its spending for 2026. The House Appropriations Committee is currently considering budget plans for the remaining components of the spending package, including the departments of Commerce, State, Justice, Energy, Interior, Transportation and Housing and Urban Development, and many smaller agencies.
One of the most significant proposed cuts is a 26% staffing reduction at the Department of Housing and Urban Development (HUD). The Senate Appropriations Committee bill for FY26 increases funding for several HUD programs compared to FY25. However, the Emergency Housing Voucher funding is not extended, posing risks for current recipients.
The State Department and many related small agencies would take a 22% budget cut under the GOP's House appropriations package for 2026. On the other hand, the Federal Prison System, a component of DOJ, would allow the Bureau of Prisons to hire another 587 correctional officers in 2026.
The Department of Health and Human Services (HHS) faces a substantial 26-43.6% cut to its discretionary budget compared to current levels, including a proposed cut of over $30 billion. The proposed discretionary budget for the Department of Labor (DOL) is reduced significantly from $13.3 billion to $8.6 billion in FY26, reflecting deep funding cuts.
However, there are some areas of resistance to cuts. The National Institutes of Health (NIH) will receive a roughly 1% increase over the 2025 budget, indicating bipartisan support for maintaining or modestly increasing NIH funding despite initial GOP proposals to slash it.
In terms of water infrastructure, significant cuts are proposed, including a 24% ($661.9 million) reduction from FY25 levels in funds for the Clean Water and Drinking Water State Revolving Funds (SRFs). This cut translates to a collective loss of $137.1 million for Great Lakes states, although some losses are offset through Community Project Funding directed by members of Congress.
The GOP spending package also includes provisions for the Federal Aviation Administration (FAA). The FAA would receive roughly $10.4 billion for 2026, aiming to increase agency staffing and hire 2,500 more air traffic controllers. The Commerce Department is slated for a 2.5% budget reduction under the House's proposal for 2026, while the National Oceanic and Atmospheric Administration would face a 6% reduction in its spending for 2026.
Senate Appropriations Committee Chairwoman Susan Collins has expressed concerns about a lack of detail from the Office of Management and Budget about where exactly the rescissions would take place. The National Science Foundation would see a 23% spending cut for the agency under the House appropriators' 2026 budget proposal. The EPA would take a 23% budget cut from its current funding levels under the Republicans' bill.
In summary, the proposed 2026 GOP budget plan includes deep cuts or freezes in discretionary spending for many federal programs such as HHS and DOL, modest increases or flat funding in some critical housing programs under HUD, major cuts in water infrastructure funding, and rejection of extreme cuts to NIH in favor of a small increase, reflecting a mix of austerity priorities and targeted support.
The proposed staffing levels at the Department of Housing and Urban Development (HUD) are set to decrease by 26%, causing potential concerns for the people benefiting from its programs. The Federal Aviation Administration (FAA), however, aims to increase its agency staffing and hire more air traffic controllers.
The budget of the Federal Prison System, a component of DOJ, is not subjected to the general budget cuts as it allows the Bureau of Prisons to hire another 587 correctional officers in 2026. On the contrary, the budget for the National Science Foundation faces a significant 23% reduction under the House appropriators' 2026 budget proposal.
