Proposed FY26 R&D Cuts Rejected by Congressional Appropriators
Congress is now in recess through Labor Day and will return on September 2nd to a jam-packed calendar as it pushes ahead with appropriations bills for fiscal year 2026 (FY26). The House and Senate Appropriations Committees (and subcommittees) spent May, June, and July drafting and marking up their respective appropriations title bills; and while the process is not yet complete, the work completed demonstrates that Congress has little appetite for the Trump administration’s proposed funding cuts to R&D at federal science agencies.
What Funding Cuts Were Rejected?
Department of Commerce Cuts:
- Both committees rejected the administration’s proposed wind down of the Economic Development Administration, which includes the Tech Hubs program authorized by the CHIPS and Science Act. The committees also rejected proposed cuts to the National Institute of Standards and Technology.
- They also rejected the administration’s proposed elimination of the Office of Oceanic and Atmospheric Research within the National Oceanic and Atmospheric Administration. Both committees also rejected cuts to climate research programs.
National Aeronautics and Space Administration Cuts:
- Both committees rejected the administration’s proposed cuts to NASA, in particular the Science Directorate. Senate appropriators explicitly rejected the administration’s proposed mission terminations for Earth Science, Planetary Science, Astrophysics, and Heliophysics.
National Institutes of Health Cuts:
- National Institutes of Health Cuts Senate appropriators rejected proposed cuts to the NIH, instead approving a funding increase from the FY25 level. They also rejected the administration’s proposed restructuring of NIH and consolidation of institutes and centers. The approved funding recommendation also included an amendment to restrict NIH from increasing the share of multi-year grants that are fully funded upfront in FY26 compared to FY24.
National Science Foundation Cuts:
- Both committees rejected the administration’s proposed topline cut to NSF. Senate appropriators chose to maintain a topline of $9.0 billion for the agency, just slightly below FY25 enacted level. Both the House and Senate Commerce, Justice, and Science (CJS) title bills provide between $200 and $205 million for NSF’s Engines program for FY26.
Funding Differences Between the House and Senate
While both the House and Senate Appropriations Committees rejected most of the administration’s topline funding cuts to R&D agencies, the committees differed in their recommended funding levels for certain agencies. The House Appropriations subcommittee approved CJS title provides $7.0 billion for NSF, well above the administration’s proposed $3.9 billion, but considerably below the $9.06 billion enacted in FY25 and the Senate proposed $9.0 billion for FY26. NASA’s Science Directorate is also provided with $6.0 billion for FY26 compared to the Senate Committee’s recommendation of $7.3 billion. Likewise, the Senate bill provides $6.1 billion for NOAA compared to the House bill’s $5.8 billion; although both are above the administration’s proposed $4.5 billion topline for the agency.
The Senate Appropriations Committee also added direction in its bills to prohibit agencies from making changes to negotiated indirect costs rates for institutions of higher education as they were applied in fiscal year 2024 (FY24). The corresponding House bills do not address this.
When Will Final Funding Levels be Decided?
Both committees still have markups for title bills to complete before the start of FY26. While the work of the appropriations committees is historically a bipartisan endeavor, partisan disagreements delayed committee work this cycle and will continue to loom large over the process when Congress returns from its August recess in September. As in previous years, Congress is expected to pass a continuing resolution for the remainder of the 2025 calendar year to keep the government funded past October 1, as the House and Senate attempt to reconcile their funding proposals. Higher education institutions should therefore expect appropriations work for FY26 to continue through November or December.
For more information or to discuss how these developments may impact your institution, please contact information@jm-aq.com
