Policy Spotlight: FY2026 Appropriations Update

As Congress advances FY2026 appropriations, several spending bills have moved forward while major packages, including Labor, Health and Human Services, Education, and Related Agencies (LHHS), remain unresolved. 

According to the House Appropriations Committee, the House approved full-year FY2026 funding in early January for Commerce, Justice, Science; Energy and Water Development; and Interior and Environment. In addition, earlier action provided full-year funding for Agriculture, Military Construction and Veterans Affairs, and the Legislative Branch, while a continuing resolution is keeping the rest of the government funded through January 30, 2026. However, several major bills are still pending.

The LHHS appropriations bill, which funds many workforce, education, public health, and youth-serving programs, has been approved at the committee level in both the House and Senate but has not yet been brought to the floor in either chamber. Senate and House Appropriations leaders have indicated that differences between the two versions will need to be negotiated before final passage. Until those negotiations are complete, agencies funded through LHHS continue operating under temporary funding, with further appropriations action expected in the coming weeks. 

At the agency level, HUD recently withdrew the FY2025 Continuum of Care (CoC) and Youth Homeless Demonstration Program NOFO, pausing that competition while HUD revises the notice following a preliminary injunction in litigation. The funding process remains on hold until further direction from the courts and HUD, though a revised version is available for public review.  

Additionally, the Department of Labor’s YouthBuild 2025 grant competition is now open, offering funds for pre-apprenticeship training, education, and holistic supports for opportunity youth with applications due March 2, 2026.