Why It Matters

Congress has yet to pass full-year fiscal 2027 appropriations for the Labor, Health and Human Services, and Education (LHHS) departments, leaving a $189.3 billion discretionary funding package stalled in committee, according to a new Congressional Research Service (CRS) report.

The House Appropriations Committee bill would cut non-defense discretionary funding for LHHS by $5.6 billion, a 2.9 percent reduction from the prior year. The Senate Appropriations Committee has not marked up its version of the fiscal year 2027 LHHS bill, and the fiscal year 2027 budget submission lacked some information typically included and some fiscal year 2027 congressional justifications were structured according to Administration proposals for departmental reorganizations rather than the existing fiscal year 2026 account structure.

At stake is funding for the largest single source of non-defense discretionary spending in the federal government, which covers the Department of Labor, Department of Education, Social Security Administration, and more than a dozen related agencies.

The Big Picture

Instead of a final appropriations law, Congress enacted a continuing resolution that President Trump signed on September 2, funding LHHS programs through December 11 at fiscal 2026 levels. The Senate had passed that continuing resolution by 90-6 on August 8, and the House followed with a 370-48 vote on September 1.

Funding for Continuing Disability Reviews and Reemployment Services would remain flat or rise modestly, at $2.124 billion and $0.400 billion respectively, compared to prior-year levels.

The Bottom Line

The Bottom Line

Funding for Continuing Disability Reviews and Reemployment Services would remain flat or rise modestly, at $2.124 billion and $0.400 billion respectively, compared to prior-year levels. The House committee bill includes targeted increases for program integrity work, proposing $3.182 billion for Health Care Fraud and Abuse Control and related activities, up from $3.104 billion in fiscal 2026. Funding for Continuing Disability Reviews and Reemployment Services would remain flat or rise modestly, at $2.124 billion and $0.400 billion respectively, compared to prior-year levels. The House committee bill includes targeted increases for program integrity work, proposing $3.182 billion for Health Care Fraud and Abuse Control and related activities, up from $3.104 billion in fiscal 2026. Funding for Continuing Disability Reviews and Reemployment Services would remain flat or rise modestly, at $2.124 billion and $0.400 billion respectively, compared to prior-year levels.

With no full-year appropriations enacted and the continuing resolution expiring December 11, Congress faces a compressed timeline to resolve competing spending priorities before the year end.

With no full-year appropriations enacted and the continuing resolution expiring December 11, Congress faces a compressed timeline to resolve competing spending priorities before the year end.

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