Congressional appropriators are backing the Pentagon’s push to speed up weapons buying, but warn that speed “must be factored alongside cost, performance, lethality and scalability.”

The House released the final 2026 minibus funding package early Tuesday, which includes money for the Departments of Defense, Homeland Security, Labor, Education, Housing and Urban Development, Transportation and Health and Human Services. If passed, the bill would increase defense spending to more than $839 billion — roughly $8.4 billion above the White House’s fiscal 2026 request. House leaders plan to vote on the package later this week. 

Congressional negotiators said they “strongly support” the Defense Department’s acquisition reforms, but pushed back on the Pentagon’s efforts to seek additional authorities or changes to its budget and appropriations framework until it fixes its internal processes. 

“Rapid delivery of ineffective weapon systems at exorbitant cost will not serve the warfighter well,” the appropriators wrote. 

Lawmakers also raised concerns about joint requirements process reform and deep cuts to the department’s acquisition workforce that could jeopardize its ability to carry out Defense Secretary Pete Hegseth’s acquisition reform agenda.

Budget flexibility

Hegseth recently unveiled a plan to overhaul the department’s acquisition system — some of those reform proposals made it into the fiscal 2026 defense policy bill, which became law in December.

At the very end of the document, Hegseth instructed the department to “improve budget flexibility.” 

“Where additional authorities are required, the [undersecretary of defense for acquisition and sustainment], in coordination with the military departments, shall develop a legislative engagement plan to ensure Congress is informed of and aligned with proposed reforms requiring any statutory change,” Hegseth wrote. “All actions will comply with applicable statutes, appropriations law, and procurement integrity requirements.”

That language was likely to become a friction point with Congressional leaders, and now appropriators are saying that reforms laid out in Hegseth’s memo are “internal in nature,” and that the Defense Department needs to “demonstrate progress on these internal procedures and administrative measures” before pursuing additional budget flexibility.

For instance, lawmakers said above-threshold transfer and reprogramming requests are often slowed because “a significant amount of the subcommittees’ time is consumed by waiting for the department to provide requested additional details and justification for these requests.”

“Providing this information alongside the submission of the request would accelerate consideration and create a nimbler process without altering existing authority or reprogramming thresholds,” the appropriators said.

Congressional leaders urged the department’s comptroller and the services’ assistant secretaries to work with the House and Senate Defense Appropriations Subcommittees to improve the amount of detail and justification provided in reprogramming submissions.

Congress gave the department some budget flexibility in 2024 but stopped short of granting broader authorities the department and reform advocates have been seeking that would allow DoD to move money more freely within its accounts without explicit congressional approval.

The Defense Department has also been pushing to change the hardware-centric budgeting model Congress uses to plan and execute the Pentagon’s spending by moving away from the traditional “colors of money” tied to different phases of weapons development. And while DoD has run several pilot projects to test the idea, lawmakers have been hesitant to authorize broader adoption of the approach due to the department’s inability to provide Congress with sufficient data showing the new approach would be more effective than traditional appropriation practices.

“To date, the agreement observes no new or compelling justification or quantitative analysis to support proposals that would alter the current appropriations framework, including with respect to reprogramming thresholds, notification requirements, new start guidelines, or consolidation into a single color of money,” the appropriators said.

“Consideration of legislative changes to the appropriations structure is premature until the Department has demonstrated full and effective use of its existing flexibilities and addressed persistent internal delays,” they added.

Army’s agile funding request rejected

While appropriators approved all 13 budget line-item consolidations requested by the Army in its fiscal 2026 budget, they flatly rejected the Army’s “agile funding” request to raise notification threshold for reprogramming or transfers from $15 million to $50 million for procurement programs and to $25 million for research and development efforts.

“The Department already has sufficient authorities to restructure its internal programming and budgeting processes, and many current challenges with execution can be solved by actions within the Department and do not require statutory change or congressional intervention … Increasing reprogramming thresholds alone is unlikely to improve program execution. Decisions to unilaterally move funding in the year of execution without sufficient oversight introduce uncertainty to both the programs impacted and the industrial base, increasing the risk of development and procurement delays,” the appropriators said.

“The House and Senate Defense Appropriations Subcommittees discourage the secretary of defense and the service secretaries from submitting future requests of this nature,” they added.

Joint requirements reform risks

The Defense Department kicked off the process of dismantling its decades-old Joint Capabilities Integration and Development System (JCIDS) process last year — and Hegseth ordered the Joint Requirements Oversight Council (JROC), which oversees the process, to stop validating service-level requirements to the “maximum extent permitted by law.”

House and Senate appropriators said they support the reform but want more detail on how defense officials plan to mitigate potential risks, such as the military services potentially prioritizing service-specific solutions over joint ones or top-down decision-making stifling bottom-up innovation.

The deputy secretary of defense, vice chairman of the Joint Chiefs of Staff and service secretaries have 60 days to brief appropriators on how they plan to address those risks. 

Workforce is the linchpin of acquisition reform

DoD leaders have long warned that the depth of this administration’s workforce cuts could cripple the department’s ability to execute Hegseth’s acquisition reforms.

Appropriators echoed those concerns, saying they are “concerned that recent reductions to the acquisition workforce, the effects of which have yet to be realized, will negatively affect the Department of Defense’s ability to achieve the initial speed and agility sought by this reform effort.”

Lawmakers directed the defense secretary along with service secretaries to submit an acquisition workforce strategy, including a comprehensive assessment of the personnel needed to execute Hegseth’s and Congress’ proposed acquisition reforms.

If you would like to contact this reporter about recent changes in the federal government, please email anastasia.obis@federalnewsnetwork.com or reach out on Signal at (301) 830-2747.

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Congressional appropriators are seeking less aggressive budget cuts for the IRS than what the Trump administration has proposed.

Members of the House and Senate appropriations committees, in the latest package of spending bills for fiscal 2026, are also renewing efforts to shrink federal office space.

Funding for the State Department remains relatively unchanged, despite a massive reorganization carried out last year.

Meanwhile, lawmakers want agencies to use artificial intelligence tools to speed up the delivery of public-facing benefits and services.

Here are a few highlights from the FY 2026 spending bills on Financial Services and General Government, as well as National Security and the State Department.

Less dramatic cuts for the IRS

The spending package still includes budget cuts for the IRS, but less severe cuts than what the Trump administration and House Republicans proposed.

The minibus would give the IRS an $11.2 billion budget for the rest of fiscal 2026 — a $1.1 billion, or nearly 9% cut from current spending levels. This would be the fourth consecutive year the IRS has seen spending cuts or a flat budget.

Republican appropriators said the spending package “restrains the IRS,” while investing more funds in public-facing taxpayer services.

IRS would spend $3 billion on taxpayer services — about $256 million above current spending levels. But its enforcement budget would shrink to $5 billion — about a $439 million cut compared to current levels.

The Trump administration proposed a $9.8 billion annual budget for the agency — more than a 20% spending cut from current spending levels.

In recent years, the IRS has tapped into a multi-billion-dollar modernization fund from the Inflation Reduction Act to address shrinking annual appropriations. Moving around these funds, however, leaves the IRS with less funding to address long-standing problems with its outdated IT systems.

Democrats on the appropriations committee said the spending deal rejects “poison pill” provisions from earlier proposals. That includes a provision that would block the IRS from creating its own free tax filing software.

The IRS officially shut down Direct File, the agency’s free online tax filing platform that ran for two years, and is exploring alternatives operated by tax preparation companies. The spending bill grants the IRS authority to make new hires more quickly to help address backlogged tax returns.

Under this spending deal, the Small Business Administration would also receive a $1.25 billion budget under this spending deal, rejecting the Trump administration’s plan to cut its funding by over 40%.

GSA funding to offload underutilized office space

Lawmakers are calling on the General Services Administration to accelerate its plans to offload underutilized federal office space. The spending deal, however, falls short of what GSA officials have said is necessary to address a multi-billion-dollar maintenance backlog.

The spending bill allows GSA to spend $9.7 billion from the Federal Buildings Fund. That fund includes rent payments GSA collects from agencies working out of GSA-owned facilities. Included in those funds, GSA receives $166 million in funding for new federal construction projects, and $934 million for federal building repairs.

In a joint explanatory statement, appropriators wrote that they are concerned that deferred maintenance costs for federal real estate are “rising at an unsustainable rate.”

The spending deal would require GSA to conduct a study examining the “administrative and regulatory burdens” GSA faces in the real estate disposal process, and to brief the appropriations committees on its findings.

GSA currently has about $24 billion in deferred maintenance projects. Ed Forst, GSA’s newly confirmed administrator, recently told a Senate panel that about $6 billion is “urgently needed” within the next year or two to address the deferred maintenance backlog. The maintenance backlog, he added, is “likely underestimated,” and will only grow if left unaddressed.

The Public Buildings Reform Board, which advises GSA on underutilized federal properties it should sell or offload, recently told a House subcommittee that GSA will need about $50 billion to address a backlog of deferred maintenance and repairs in federal buildings.

GSA currently receives about $600 million annually to address those needs. Given those spending levels, the board estimates GSA’s portfolio would have to shrink by about 80% to keep up with its maintenance backlog.

The spending deal would give $3.6 million to the Public Buildings Reform Board. The board is set to disband by the end of this year. Members of the board, however, say their work is far from finished, and have asked Congress to consider reauthorizing the board.

The spending bill also supports President Donald Trump’s executive order designating classical architectural styles as the preferred style for new construction projects.

AI tools to deliver public-facing services

The spending bill also focused on GSA’s government IT portfolio, and directs GSA to help deliver benefits and services to the public more quickly through AI tools.

The spending bill awards $1.4 million to GSA’s Office of Technology Policy to make federal websites more accessible for people with disabilities, as required by Section 508 of the 1973 Rehabilitation Act.

“As the nation’s population ages, there will be more people with disabilities who rely on accessibility tools to access government resources. This underscores the importance of making Federal websites, apps, kiosks, and other technology accessible in the coming decades,” the joint explanatory statement states.

More than half of all federal websites have at least one accessibility issue, according to data collected in 2024 by GSA and the Office of Management and Budget.

The spending package also directs GSA to help agencies improve their public-facing benefits and services through AI tools. The spending deal, however, doesn’t put any funding behind this goal.

“Congress recognizes the importance of improving customer satisfaction for constituents seeking information about benefits and government resources,” appropriators wrote in their joint explanatory statement. “The agreement encourages the GSA to work with federal agencies to develop improved customer experiences when interfacing with their government on its progress toward issuing this guidance.”

State Department funding intact, spares independent agencies from elimination 

Lawmakers are proposing modest budget cuts for the State Department, despite going through its largest reorganization in decades.

The minibus gives the State Department a $9.7 billion operating budget, an essentially flat budget compared to the department’s current $9.8 billion operations budget.

The minibus requires the State Department to give Congress quarterly updates on staffing levels, hiring and attrition for its civil service and Foreign Service ranks. The State Department laid off nearly 1,350 employees last summer. It also eliminated or consolidated hundreds of offices and programs.

The bill also rejects the Trump administration’s deep cuts planned for some independent agencies — including the Millennium Challenge Corporation and the U.S. Agency for Global Media, which includes Voice of America. But it doesn’t address the Trump administration’s dismantling of the U.S. Agency for International Development last year. All USAID programs spared from elimination have been folded into the State Department.

Senate Appropriations Committee Vice Chairwoman Patty Murray (D-Wash.) said the spending package reflects “tough negotiations under extremely challenging circumstances,” but is a “significantly better outcome than another yearlong continuing resolution.”

Senate Appropriations Committee Chairwoman Susan Collins (R-Maine) said the “appropriations process continues to move forward and advance priorities of the American people.”

House Appropriations Committee Ranking Member Rosa DeLauro (D-Conn.) said the minibus rejects “extreme cuts to humanitarian aid programs.”

House Appropriations Committee Chairman Tom Cole (R-Okla.) said that with this spending package, lawmakers “are advancing President Trump’s vision of a golden age defined by security, responsibility, and growth.”

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Congressional appropriators are rejecting some of the most severe agency budget cuts proposed by the Trump administration, and are looking to put additional guardrails on unilateral agency reorganizations that could further shrink the federal workforce.

A “minibus” of three spending bills for fiscal 2026, released by the House and Senate appropriations committees on Monday, prohibits covered agencies from using congressional funds to carry out most agency reorganization activities until they provide advanced notice to appropriators. Those activities include unilaterally reprogramming funds to create or eliminate programs, projects or activities, relocate any office or employees, or cut more than 5% of the employees or funding that support a program, project or activity.

It also prohibits agencies from carrying out these reorganizations using “general savings,” including savings from a reduction in personnel, “which would result in a change in existing programs, projects, or activities as approved by Congress.”

This language applies to a wide swath of agencies — including the departments of Justice, Interior, Commerce and Energy, as well as the Environmental Protection Agency, the National Science Foundation and NASA.

The spending package also includes language ensuring that the National Weather Service, the Bureau of Land Management, the Fish and Wildlife Service, the Forest Service and the EPA maintain staffing levels that allow them to carry out their statutory obligations.

Democrats on the appropriations committees said the spending deal reasserts Congress’s power of the purse, and seeks to rein in the Trump administration’s repurposing of agency budgets and unilateral agency reorganizations.

The Government Accountability Office found last year that several agencies unlawfully withheld congressional appropriations last year through a process called impoundment. GAO is still reviewing dozens of cases of potential impoundment.

Republican appropriators said the spending deal reflects “current fiscal constraints,” and trims the budgets of the Interior Department, EPA and the Forest Service to reflect recent staffing cuts.

The Trump administration sought to lay off about 4,000 federal employees during the recent government shutdown. Office of Management and Budget Director Russ Vought said last October that layoffs at these agencies were justified because lawmakers allowed funds for these programs to expire, indicating they were no longer congressional priorities.

A stopgap spending bill, set to expire on Jan. 30, has put a hold on layoffs at some agencies. The Interior Department was poised to eliminate more than 2,000 positions.

Steep cuts at other agencies, however, have already gone into effect. A recent inspector general report found that the Energy Department lost about 20% of its employees in fiscal 2025 through a combination of voluntary separation incentives, retirements and “other human resource actions.”

The National Park Service and the EPA have also lost about 25% of their workforce under the Trump administration.

The minibus spending package generally seeks modest spending reductions for covered agencies, but departs from the Trump administration’s calls for major budget cuts.  It would cut the EPA’s budget by about 4% in fiscal 2026 — a far cry from the 55% budget cut the Trump administration proposed.

Lawmakers are also proposing a nearly 4% budget cut for the National Science Foundation, rejecting the Trump administration’s request to cut NSF’s budget by about 57% in FY 2026.

The minibus offers a $24.43 billion budget for NASA, a nearly 2% decrease from current spending levels. But the package rejects most of the Trump administration’s proposals to cut NASA’s science budget by nearly half and terminate 55 operating and planned missions.

Lawmakers are seeking a $160 million budget increase for the Energy Department’s Office of Science — about a 2% boost from current spending levels, rejecting the Trump administration’s calls to cut more than $1 billion from its current budget. DOE’s Office of Science supports research being conducted by 22,000 researchers at 17 national labs and over 300 universities.

Lawmakers are proposing a $3.27 billion budget for the National Park Service, about a 2% overall budget decrease. The spending plan includes flat funding for National Park Service operations. The Trump administration proposed cutting the NPS operating budget by nearly $1 billion.

The National Parks Conservation Association said in a statement that the bill includes key provisions “seeking to retain and rehire urgently needed Park Service staff, which would help restore the agency’s capacity to protect our parks, as well as require congressional notification of any plans for future mass firings.”

NPCA President and CEO Theresa Pierno said that the association had been “sounding the alarm on the need for park funding and staffing for months, and Congress listened.”

Senate Appropriations Committee Vice Chairwoman Patty Murray (D-Wash.) said in a statement that Democrats, as part of these negotiations, “defeated heartless cuts,” and are reasserting congressional control of how agencies spend appropriated funds.

Murray said language in the minibus bill prevents President Donald Trump and cabinet secretaries from “unilaterally” deciding how to spend taxpayer dollars. A yearlong continuing resolution for fiscal 2025, she added, lacked these detailed funding directives for hundreds of programs, and “turned over decision-making power to the executive branch to fill in the gaps itself.”

“Importantly, passing these bills will help ensure that Congress, not President Trump and Russ Vought, decides how taxpayer dollars are spent — by once again providing hundreds of detailed spending directives and reasserting congressional control over these incredibly important spending decisions,” Murray said.

Sen. Chris Van Hollen (D-Md.), ranking member of the committee’s subcommittee on commerce, justice, science and related agencies, said the spending package rejects the Trump administration’s deep cuts to scientific agencies, including NASA Goddard, the National Oceanic and Atmospheric Administration and the National Institute of Standards and Technology. All three agencies are based in Maryland.

“Our bill makes clear that Congress, on a bipartisan basis, will not accept this administration’s reckless, harmful cuts,” Van Hollen said in a statement.

Van Hollen said the bill “is not perfect,” but requires the Trump administration to provide more details on plans to relocate the FBI’s headquarters to the Reagan Building in downtown Washington, D.C., before it can tap into funds Congress had set aside for the project.

Before it taps into those funds, the FBI must give congressional appropriators an architectural and engineering plan for the new headquarters building.

“This is an important step to reassert Congress’s oversight role in the relocation of the FBI headquarters and to ensure the new headquarters meets the mission and security needs of the FBI,” Van Hollen said.

Committee Chairwoman Susan Collins (R-Maine) called the minibus a “fiscally responsible package that restrains spending while providing essential federal investments” in water infrastructure, energy and national security, and scientific research.

“The package supports our law enforcement and provides funding for national weather forecasting and oceans and fisheries science to save lives and livelihoods,” she said. “It provides investments in our public lands and upholds our commitments to tribal communities.”

House Appropriations Committee Chairman Tom Cole (R-Okla.) said the bipartisan spending package “reflects steady progress toward completing FY26 funding responsibly.”

House Appropriations Committee Ranking Member Rosa DeLauro (D-Conn.) said the spending package “reasserts Congress’s power of the purse.”

“Rather than another short-sighted stop-gap measure that affords the Trump Administration broader discretion, this full-year funding package restrains the White House through precise, legally binding spending requirements,” DeLauro said.

Congress has already passed FY 2026 spending bills that cover the Department of Agriculture and the Department of Veterans Affairs, military construction and the legislative branch.

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Republicans on the Senate Appropriations Committee have put forward a 2026 homeland security spending bill that would staunch some workforce cuts at the Department of Homeland Security.

The committee released a draft version of the fiscal 2026 homeland security appropriations measure on Friday. Lawmakers will return to Capitol Hill after the holidays with a deadline to pass annual spending bills for most federal agencies by Jan. 30, when the current continuing resolution expires.

Lead appropriators in the House and Senate reached an agreement on funding allocations for the remainder of fiscal 2026 over the weekend. While they did not release specific numbers, House Appropriations Committee Chairman Tom Cole (R-Okla.) said the allocations would fall below projected spending levels under the CR.

“This pathway forward aligns with President Trump’s clear direction to rein in runaway, beltway-driven spending,” Cole said in a statement. “We will now begin expeditiously drafting the remaining nine full-year bills to ensure we are ready to complete our work in January.”

What’s the topline Senate DHS funding package?

Senate appropriators’ draft homeland security spending bill includes $92.3 billion for DHS in fiscal 2026, including nearly $66 billion in discretionary spending and $26.3 billion for the Disaster Relief Fund.

Those totals roughly align with what House Appropriations included in their homeland security spending package over the summer. It also comes after DHS received $165 billion in additional funding through fiscal 2029 under the One Big Beautiful Bill Act passed in July.

However, Senate Appropriations Committee Vice Chairwoman Patty Murray (D-Wash.) slammed the Senate committee’s draft proposal, calling it a “partisan bill” and saying Republicans didn’t work with Democrats to finalize a negotiated bill.

“We need more accountability from President Trump’s out-of-control Department of Homeland Security, and as we proceed to conference negotiations on this bill and the remainder of our bills, I am going to keep working to produce the strongest possible legislation,” Murray said. “American families should be able to count on their own government to support them through serious natural disasters and to enforce our immigration laws humanely and in accordance with the law.”

FEMA staffing concerns

The report on the draft homeland security spending bill, however, shows committee Republicans have some concerns about workforce cuts at the Federal Emergency Management Agency.

Roughly 2,500 FEMA staff have left the agency since the spring. The Trump administration has also expressed a desire to move more of FEMA’s responsibilities to state and local governments.

“The committee is concerned that staffing levels are insufficient to effectively and efficiently execute FEMA’s statutory missions,” the report on the draft bill states.

The bill would provide an additional $40 million for FEMA to hire staff to critical positions in its regional operations, and response and recovery divisions, respectively.

The report on the draft bill also stipulates that FEMA “shall maintain a workforce consistent with the personnel and full-time equivalents funded by the pay and non-pay amounts provided in this act.”

“FEMA shall not reduce staffing in such a way that it lacks sufficient staff to issue guidance, provide payments, and provide technical assistance and operational support to grantees in a timely manner; review and approve plans for obligating and expending Federal funds; review expenditures and reports for waste, fraud, and abuse; and perform all other necessary duties to allow recipients to proceed without unnecessary interruption,” the report continues.

CISA cut softened

Like their House counterparts, Senate appropriators are also looking to shore up funding at the Cybersecurity and Infrastructure Security Agency, rejecting steeper CISA cuts proposed by the Trump administration.

The draft Senate bill includes roughly $2.8 billion for CISA in fiscal 2026, just below 2025 funding levels for the cyber agency.

The bill would also reject proposed cuts at CISA’s National Risk Management Center. It would provide $126 million for the NRMC to maintain fiscal 2024 service and staffing levels.

Lawmakers direct CISA to provide a briefing “on the NRMC’s strategic engagement with election stakeholders, including engagement progress to date, future engagement plans and priorities, and information regarding any identified election security risks and shortfalls that should be mitigated in the near-, mid-, and long-terms.”

CISA has lost one-third of its workforce, roughly 1,000 staff, since the spring through a combination of voluntary departures, early retirements and terminations.

The Trump administration’s budget request would reduce CISA’s annual budget by nearly $500 million. It also proposed staff cuts at some CISA divisions, including the NRMC.

Like with FEMA, Senate appropriators also include language in their bill that CISA “shall maintain a workforce consistent with the personnel and full-time equivalents funded by the pay and non-pay amounts provided in this act.”

“CISA shall not reduce staffing in such a way that it lacks sufficient staff to effectively carry out its statutory missions,” the bill states, pointing to the agency’s efforts to secure federal civilian executive branch agencies, work with state and local governments, other sector risk management agencies, international partners and other stakeholders.

It further stipulates that CISA should maintain “no fewer” than 10 regional field offices across the country and directs CISA to employ at least one cybersecurity advisor per state.

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