HR5371119th CongressWALLET

Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026

Summary

Keeps many federal programs funded at FY2025 levels into FY2026. This law ended the October 2025 government shutdown by continuing funding for most federal agencies at FY2025 rates through January 30, 2026 (or until full-year FY2026 appropriations are enacted). It also provides full-year FY2026 funding for Agriculture/FDA, Military Construction & Veterans Affairs, and the Legislative Branch, and extends several expiring health and veterans authorities.

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Families & children: Funds core nutrition programs, including SNAP ($107.48B), WIC ($8.2B), and Child Nutrition Programs ($37.84B) for school meals and related grants.
Veterans: Provides VA funding and adds guardrails for the Veterans Electronic Health Record program—$3.4B with quarterly reporting and a partial funding holdback tied to required plans/certifications. It also extends Supportive Services for Very Low-Income Veteran Families funding to $660M for FY2026.
Rural communities & farmers: Supports rural housing and lending, including up to $25B in Section 502 unsubsidized guaranteed loans, and invests in rural connectivity through Distance Learning/Telemedicine/Broadband grants ($40.77M) and a broadband loan & grant pilot ($50.75M).

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Bill Overview

Analyzed Economic Effects

57 provisions identified: 36 benefits, 10 costs, 11 mixed.

One-time payments to three named heirs

Three named people each receive a one-time payment of $174,000 in fiscal year 2026: Ashley Paige Turner, Ramona Grijalva, and Catherine M. Smith.

More help for rural renters

The law adds $48 million for rural housing vouchers. If you live in a Section 515 unit prepaid after September 30, 2005 and do not get Section 521 help, your voucher covers the difference between comparable market rent and what you pay. It also provides about $1.715 billion in 2026 to renew Section 521 rental assistance, including up to 5,000 units where loans cannot be restructured. Contracts for maturing properties may run 10–20 years, but agreements signed this year are funded for one year. A $2 million pilot helps nonprofits and housing authorities keep at‑risk USDA rental properties in the program.

Temporary freeze on federal layoffs

Agencies cannot carry out reductions in force (RIFs) from enactment through January 30, 2026. Any RIF actions from October 1, 2025 to enactment are void. Agencies must rescind notices, restore employees to their September 30, 2025 status, and pay backpay. Exceptions include voluntary separations, court‑ordered actions, and actions at the start of a lapse to manage a shutdown.

More farm and rural business loans

FY2026 loan authorizations include $3.5 billion for guaranteed farm ownership, $2.58 billion for direct farm ownership, $2.0 billion for guaranteed operating, and $1.633 billion for direct operating loans. It also funds emergency, tribal land acquisition, conservation, and eradication loans. The Intermediary Relending Program adds $9 million in loan principal and $2.495 million for loan costs, including set‑asides for Tribes and Mississippi Delta counties through June 30, 2026.

More funding for farm conservation work

NRCS gets $850 million for Conservation Operations, available through September 30, 2027. It includes $34.625 million for Community Project Funding. NRCS can improve plant materials centers and must keep other building alterations under $250,000.

More funding for rural water systems

The law funds rural water and waste programs: $1.015 billion in direct loans, $50 million in guaranteed loans, and $445.865 million for loan costs. It adds many grants, including $110.489 million for Community Project Funding, technical help, circuit riders, and set‑asides for Tribes and Hawaiian Home Lands. Some unused loan subsidy after July 31, 2026 may shift to grants.

Major funding for VA care

The law invests $52.676 billion for veterans’ care, benefits, and research tied to toxic exposures. It adds $900 million to build and improve VA medical facilities. FY2026 funding targets include $3.5 billion for Caregivers, $6.356 billion for telehealth, $3.459 billion for homelessness programs, and $1.429 billion for women veterans’ care. VA can also transfer up to $654.954 million in FY2026 and up to $739.918 million available Oct. 1, 2026 to run joint DoD–VA medical facilities.

VA can shift medical funds for care

The law gives VA more flexibility to fund care. It moves $2.03 billion (available since Oct 1, 2025) from Medical Services to Medical Facilities. For fiscal year 2026, VA can move up to 1% among key medical accounts, and separately move up to 1% into Medical Services for urgent health needs with notice to Congress. For fiscal years 2026–2027, VA can use Medical Community Care money to cover costs that used to come from the Veterans Choice Fund. Money collected for care can also be shifted to Medical Services, Medical Community Care, and combined DOD–VA facilities and stays available until spent.

Keep key defense programs on track

Navy shipbuilding funds can be apportioned to finish prior‑year programs, with listed amounts for carriers, subs, destroyers, amphibs, oilers, and sea bases. The Air Force can apportion up to $199.676 million for rapid E‑7 Wedgetail prototyping and transition to production in FY2026.

More money for E-7 plane development

The law moves $200 million from Air Force aircraft procurement into research and development for the E‑7 Wedgetail. The money supports rapid prototyping to keep the program on schedule and move toward production.

Cancels $350 million forfeiture fund balance

The law permanently rescinds $350 million in unobligated money from the Treasury Forfeiture Fund by September 30, 2026. This reduces the fund’s available balance.

New hemp and cannabinoid limits

One year after enactment, hemp means Cannabis sativa L. with total THC (including THCA) of 0.3% or less by dry weight. Some seeds and hemp‑derived products are excluded if they contain non‑natural or synthetic cannabinoids, or if levels exceed set limits. Final products are excluded if they exceed 0.4 mg per container of total THC and similar‑effect cannabinoids. FDA must publish, within 90 days of enactment, a list of naturally produced cannabinoids and clarify what counts as a “container.”

Faster VA claims and care

VA must keep enough staff to decide claims within a 125‑day goal and give timely appointments. Chapter 31 rehab programs must keep no more than 125 veterans per full‑time staff member. The VA suicide hotline must give immediate help from trained professionals and meet national standards. The VA must send a Cost of War Toxic Exposures Fund spending plan within 30 days and file quarterly obligation reports.

Fertility, IVF, and adoption help for veterans

The VA can pay for fertility counseling and assisted reproductive technology for a covered veteran and their spouse. A covered veteran is one whose service‑connected disability prevents procreation without treatment. Embryo storage has no time limit. Adoption costs can be reimbursed under existing Defense Department limits.

More protections for rural veterans' care

VA cannot close or cut services at VA hospitals or clinics as part of a realignment until it reports how this will affect veterans in rural or highly rural areas. The report must cover travel distances, transportation costs, and local primary and specialty care. VA can also partner with Federally Qualified Health Centers and Tribal providers to serve veterans in rural Alaska, including behavioral health and dental care. Rural Alaska excludes Anchorage and the Fairbanks North Star Borough.

SNAP and other benefits continue

The law keeps SNAP and other mandatory payments at current rates through January 30, 2026. Payments due after October 2025 and up to 30 days after January 30, 2026 can still be made.

VA care and grants extended to 2026

The VA must keep providing nursing home care for eligible veterans through September 30, 2026. Several temporary VA authorities also stay in place until that date. The Parker Gordon Fox suicide prevention grant program remains active through September 30, 2026.

HUD steps to prevent voucher cuts

During fiscal year 2026, HUD can use prior‑year unspent Tenant‑Based Rental Assistance funds to stop rental aid from ending because of 2025 shortfalls. Repurposed emergency funds keep their emergency budget status. This helps current voucher families keep their assistance.

More housing aid for veteran families

The law provides $660 million for fiscal year 2026 for Supportive Services for Very Low‑Income Veteran Families. The funds help very low‑income veteran households get and keep permanent housing. It is treated as enacted on September 30, 2025 and is available through September 30, 2026.

Help for rural energy projects

The law funds a $3 million pilot to place Energy Circuit Riders who help rural communities plan energy‑saving projects. Grants can cover up to 75% of costs for 3–6 years. It also provides $100 million in loan guarantees under REAP for farmers and rural businesses.

More loans for rural small businesses

The law provides $50 million in direct loan principal for rural economic development projects and caps grant costs at $10 million. It also provides $17 million in direct loan principal and $4 million for loan and grant costs for the Rural Microentrepreneur Assistance Program. These funds help rural businesses and farms get financing.

VA contracts open to tribal businesses

VA may convert work to contractor performance when the contractor is at least 51% owned by one or more Indian Tribes or by a Native Hawaiian Organization. Section 842 limits do not block these conversions. This creates new contracting chances for qualifying firms.

Funds to pay public defenders

The law provides $1.564373 billion at a rate for operations to Defender Services in FY2026. Funds can be apportioned as needed to pay panel attorneys and related providers.

More openness in OTC drug reviews

FDA must post detailed minutes of industry negotiations within 30 days and publish a stakeholder plan within one year. FDA must guide Rx‑to‑OTC switches within 18 months and can use real‑world evidence and non‑animal tests for topical OTC reviews. GAO must study the OTC supply chain by Sept. 30, 2027 and the switch process within one year. The transparency rules start Oct. 1, 2025 and end Jan. 31, 2031.

Pay and reimbursements during shutdowns

If a FY2026 shutdown happens, furloughed employees must be paid their normal rate for that period. States and grantees that used non‑federal money to keep federal programs running must be reimbursed with interest. Payments depend on advance appropriations.

VA can shift money among benefits accounts

For fiscal year 2026, VA can move funds among Compensation and Pensions, Readjustment Benefits, and Veterans Insurance and Indemnities after seeking approval or if 30 days pass without a response. VA may also move money between the Board of Veterans Appeals and the Veterans Benefits Administration operating accounts with committee approval. These tools help keep benefits and appeals operations running smoothly.

Grants for rural co-ops and communities

The law provides $20 million for rural cooperative development, with set‑asides for tech transfer, socially disadvantaged groups, value‑added markets, and innovation centers. At least 10% of many rural funds must go to persistent poverty counties when feasible.

VA billing for non-service care

For fiscal year 2026, VA funds cannot pay for certain non‑service‑connected care unless the patient gives current, accurate third‑party insurance information. If someone does not provide that information, VA can bill and collect reasonable charges as a federal debt.

Higher OTC drug maker fees

Starting with the fiscal year beginning Oct. 1, 2025, OTC drug facilities pay annual facility and order‑request fees. The total includes base revenue, inflation, reserves, fixed add‑ons ($2.373M in FY2026; $1.233M in FY2027; $0.854M in FY2028), and sometimes a one‑time workload increase. FDA must set and publish the fees at least 60 days before each fiscal year.

New fee on guaranteed business loans

Borrowers who take a guaranteed Business and Industry loan may be charged a one‑time fee up to 3% of the guaranteed principal. This raises upfront borrowing costs.

No bonuses for late AOC contractors

Starting in fiscal year 2026, the Architect of the Capitol cannot pay incentive or award fees to contractors who are behind schedule or over budget. The AOC may still pay if it finds delays were unforeseeable, caused by the government, or not significant. Contractors face reduced fee income on poor‑performing projects.

U.S. pays into European development bank

The law lets the U.S. subscribe to up to 40,000 more shares of the European Bank for Reconstruction and Development’s paid‑in capital. It authorizes $437,457,804 for Treasury to make the payment, effective only if Congress appropriates the money.

Updates to VA mortgage partial claims

The law updates the VA Partial Claim Program for home loans. It extends a key deadline from 120 to 180 days and clarifies how partial‑claim payments affect guaranty, liquidation, and acquisition costs. It sets servicing duties, defines loss and non‑judicial sale rules, and allows guidance before formal rules. GAO must publish an initial report within one year and then yearly, with counts of claims, denials, refinances, and delinquencies.

USDA facility funds and 10% overhead cap

USDA can use leftover 2017 balances to plan, build, repair, and equip facilities and to buy land. At the same time, USDA may not pay negotiated indirect costs over 10% of total direct costs on certain cooperative agreements with nonprofits for mutual‑interest programs. This helps fund local projects but limits overhead recovery.

Study on Buy American for SNAP

USDA must study whether Buy American rules can apply to SNAP and WIC. The study must review effects on U.S. farming and food supply. A report is due to Congress within one year. This study does not change benefits now.

OTC drug fee rules change over time

Some over‑the‑counter drug program authorities end on set dates. The fee and related sections stop on Oct 1, 2030, and a reporting section stops on Jan 31, 2031. Older fee rules still apply when collecting fees that cover fiscal years before 2026.

VA settlements cannot block speaking to Congress

The VA cannot enter settlement deals that stop a person from talking to Members of Congress or their staff. This applies unless another law or an executive order already blocks sharing the topic for national defense or foreign affairs reasons.

2026 WIC milk limits and SNAP rule freeze

WIC milk limits for FY2026 are set: Package IV up to 16 quarts a month; Package V up to 22; Package VI up to 16; Package VII up to 24. Package III aligns with these changes. USDA cannot enforce the stricter 2016 SNAP “variety” rule until it allows more items to count; until then, it uses the pre-2014 standard. Schools cannot use this Act’s funds to buy poultry or seafood from China for lunches, breakfasts, summer meals, or child and adult care meals.

Keep current VA screening and supply rules

VA breast cancer screening must follow the VHA guidance from Oct 1, 2018 through Jan 1, 2027. VA cannot replace the current VISN system for choosing diabetes monitoring supplies. From Oct 1, 2025 to Sept 30, 2026, VA also cannot run or enforce its 2023 rule changing rates for special modes of transportation.

VA can tap old construction funds

VA may use unobligated balances from major and minor construction to finish certain veterans’ facility projects. VA must ask the House and Senate Appropriations Committees first and can proceed after approval or 30 days without response. VA must state that all cost‑containment options under the agreement were exhausted.

More security for courts and Capitol

The law adds $30 million for U.S. Marshals protective operations (available through Sept. 30, 2027). It provides $28 million for Supreme Court protection, available until spent. It adds $30 million for Capitol Police mutual‑aid reimbursements and training, with 15‑day notice to Congress after obligation.

Up to $10M for Capitol Police mutual aid

Up to $10 million may move on Sept 30, 2026 to the Capitol Police mutual aid reimbursements account. The money stays available until Sept 30, 2030. It pays mutual aid reimbursements and training, with notice to key committees within 15 days of obligation.

USDA must warn before ending big awards

USDA must give written notice at least 3 business days before ending any grant, cooperative agreement, or contract of $1,000,000 or more. The notice must list the recipient, amount, fiscal year, program, award title, and why it is ending. This helps recipients plan.

Emergency safe drinking water help

Up to $54 million is redirected to Safe Drinking Water Act technical assistance and grants in areas with August 2022 emergency declarations. The money keeps its emergency budget status.

Keep Essential Air Service flights running

DOT can apportion funds at the needed rate to keep Essential Air Service operating in FY2026. This helps maintain air links for rural communities.

More funds for No Surprises Act

HHS receives $14 million to run parts of the No Surprises Act from Oct. 1, 2025 through Jan. 30, 2026. This supports dispute resolution and other implementation work.

More staff for Indian Health Service

For fiscal year 2026, the law provides $72.265 million to staff and operate IHS facilities opened, renovated, or expanded in 2025 and 2026. It also provides $8.05 million for facilities operations. Funds may be apportioned up to the rate needed to run these sites.

VA copays continue through Sept 2026

VA keeps its authority to collect hospital and nursing home copays through September 30, 2026. This does not change who pays or how much. It simply keeps the current copay rules in force for one more year.

Higher fees for off-hour meat inspections

USDA can charge plants for inspection outside approved shifts and on federal holidays. The money pays FSIS inspection costs and stays available until spent.

USDA tightens approvals for IT spending

USDA must get CIO approval before buying new IT systems or major upgrades. No IT obligations over $25,000 can be made without written CIO approval. The CIO can allow agencies to obligate up to $250,000 without written approval if they meet performance goals. Congress must be told in writing before money is moved to the CIO.

No award fees for poor performance

Agencies cannot use these funds to pay award or incentive fees to contractors with below‑satisfactory work, who run late, go over budget, or miss basic requirements. An agency may still pay if it finds the problems were unforeseeable, caused by government changes, or not significant, and if the payment follows federal acquisition rules.

Ban on some China-linked office IT buys

For fiscal year 2026, the VA and House offices cannot buy certain office IT gear (computers, printers, or interoperable video equipment) from makers on U.S. government lists tied to China or forced labor. The ban also applies when buying through contractors. It does not apply to services like cloud hosting.

Stronger oversight on big VA projects

VA cannot cancel a contract over $10 million without first telling Congress and showing how services will be replaced. VA cannot expand the scope of major construction without approval and must notify Congress of bid savings of at least $5 million or 5% and before spending them. VA must give 15 days’ notice before moving 25 or more staff between units, and its Inspector General keeps subpoena powers through Sept 30, 2026. VA research starting on or after Jul 1, 2025 may not use dogs, cats, or non‑human primates unless the Secretary personally approves and reports; VA must end this research by Sept 20, 2026 and issue public reports every six months starting Dec 31, 2025.

U.S.-made iron and steel for rural water

Federal funds for rural water and waste projects must use U.S.-made iron and steel. Waivers are allowed if needed, including when U.S. products would raise total project cost by over 25% or are not available in enough quantity or quality. Waiver requests must be posted online for at least 15 days for input. The Secretary can use up to 0.25% of program funds for oversight. State‑approved plans from before the law are exempt.

FDA halts enforcement of produce rule

FDA may not use funds to enforce its 2015 produce safety rule or a related proposed rule. This starts on enactment. Growers face less enforcement, while food‑safety oversight under those texts pauses.

FDA label and over-the-counter changes

Drug sponsors can nominate organizations to speak for them in FDA advice meetings on nonprescription drugs starting October 1, 2025 or on enactment, whichever is later. Beginning with fiscal year 2026, FDA must expand its annual over‑the‑counter report with counts, timelines, safety work, and testing progress through January 31, 2031. For “healthy” claims, from the final rule’s effective date (December 27, 2024) until its compliance date, firms may follow the old federal rules and states cannot enforce different ones during that period.

FDA review of pet food rules

Within 120 days, FDA must report to Congress on costs and steps to set pet and animal food labeling and ingredient standards. The report must cover work with states, timelines, staffing needs, and where new authority is needed.

Sponsors & CoSponsors

Sponsor

Cole

OK • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 1,620 • No: 1,425

house vote • 11/12/2025

On Motion to Concur in the Senate Amendment

Yes: 222 • No: 209

senate vote • 11/10/2025

On Passage of the Bill H.R. 5371

Yes: 60 • No: 40

senate vote • 11/10/2025

On the Cloture Motion H.R. 5371

Yes: 60 • No: 40

senate vote • 11/10/2025

On the Motion to Proceed H.R. 5371

Yes: 60 • No: 40

senate vote • 11/9/2025