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HR6938119th CongressWALLET
Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026
Sponsored By: Representative Cole
Became Law
Summary
This law sets FY2026 federal funding and detailed spending rules across major departments and programs. It funds Commerce, Justice, Science, Energy, Interior, and Environment accounts while tightening limits on transfers, reprogramming, and agency reporting.
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- Families and communities get big infrastructure and environmental support, including Clean Water State Revolving Fund funding of about $1.6 billion and Drinking Water SRF funding of about $1.1 billion, plus directed land and park project allocations.
- Tribes and Native communities receive major program support with roughly $4.8 billion for Indian Health Service furnished services and about $1.1 billion for Bureau of Indian Education operations and school construction.
- Research, technology, and science sectors gain multi-billion dollar investments with NASA science at $7.3 billion and the National Science Foundation at $7.2 billion, alongside funding for NIST, USPTO fee management, and CHIPS implementation guidance.
This law also creates strict reprogramming notices, quarterly balance reporting, audit and transparency rules, and many program‑specific prohibitions and matching requirements.
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Bill Overview
Analyzed Economic Effects
63 provisions identified: 41 benefits, 12 costs, 10 mixed.
More money for immigration courts and help
Immigration courts receive $800 million for FY2026. At least $27.5 million funds the Legal Orientation Program. $10 million comes from immigration fees. Up to $50 million remains available until September 30, 2030 to build out and modify courtroom space.
Independent checks on nuclear construction
Before building any high-hazard nuclear facility, the Department of Energy must get independent oversight by its Office of Enterprise Assessments. Construction funds cannot be used until that safety review confirms compliance with nuclear safety rules.
More wildfire funds and local fire support
The law moves $763.514 million to Interior’s Wildland Fire Management (not for suppression), $65 million to Interior’s Inspector General, and $146.486 million to Forest Service Operations. Interior can also give grants to volunteer and rural fire groups for wildland fire training and equipment and can transfer excess firefighting gear to them.
Big funding for reactors and the grid
The law moves major funds to energy priorities. It transfers $3.1 billion to Nuclear Energy for up to two Generation 3+ small modular reactor awards and $375 million to the Grid Deployment Office for transformer and grid component supply chains. It also redirects other unobligated balances ($1.15 billion for energy efficiency and renewables, $100 million for nuclear, $140 million for fossil energy, $150 million for science, and $150 million for Title 17 loans). The Secretary must report details to Congress within 15 days. It also keeps Western Area Power Administration Colorado River Basin power funds from being swept to the Treasury this year, leaving them available for power operations.
No SPR oil sales to China-linked buyers
Oil from the Strategic Petroleum Reserve cannot be sold to any buyer owned, controlled, or influenced by the Chinese Communist Party. Any sale must also include a condition that the oil is not exported to the People’s Republic of China.
More funding to promote U.S. exports
The International Trade Administration gets $582 million for FY2026. $94 million stays available through September 30, 2027. Up to $20 million can come from fees. At least $16.4 million goes to China trade enforcement. Money can fund grants and activities to help U.S. firms export.
EPA facility projects capped at $300K
In FY2026, each construction, repair, or renovation project paid from certain EPA accounts cannot exceed $300,000. This cap applies to Science and Technology, Environmental Programs and Management, Inspector General, Superfund, and the Leaking Underground Storage Tank Program.
Higher offshore inspection fees in 2026
For FY2026, above‑water facilities pay $10,500 (no wells), $17,000 (1–10 wells), or $31,500 (more than 10 wells) annually. Drilling rigs pay $30,500 per inspection in 500+ feet of water, or $16,700 if under 500 feet. Non‑rig well operations pay $13,260 (≥2,500 ft), $11,530 (500–2,499 ft), or $4,470 (<500 ft) per inspection. Bills follow the law’s quarterly and 30‑day payment timelines.
Cancels unused funds in Commerce and Justice
By September 30, 2026, the law permanently cancels unobligated balances including $60 million (EDA), $15 million (Census Working Capital Fund), $36 million (Office on Violence Against Women), $250 million (Office of Justice Programs), $25 million (COPS), $210 million (DOJ Working Capital Fund), and $113.2 million (DOJ Assets Forfeiture Fund). Commerce and Justice must report the rescissions by September 1, 2026. Emergency or disaster relief funds are not rescinded.
Tribal health funding, with new limits
The law funds Indian Health Service care and operations. $4.79 billion is available from October 1, 2026 through September 30, 2028. It includes $996.755 million for Purchased/Referred Care, $54 million for catastrophic emergencies, up to $53 million for loan repayment, $58 million for accreditation emergencies, and $2.5 million for alcohol and drug treatment grants. Funds to tribes by contracts or compacts are obligated at award and can be used without a fiscal year limit. It extends an Alaska Native health authority date to October 1, 2026. At the same time, money that becomes available on October 1, 2026 cannot be used to implement the IHS electronic health record or the Indian Health Care Improvement Fund. Choosing or starting a new EHR IT system requires 90 days’ advance consultation with the Appropriations Committees. For FY2026, contract support cost funds in this Act are the only funds for those costs and cannot pay prior-year claims.
More Great Lakes cleanup; tighter dredging
The EPA can move up to $369 million to other agencies for Great Lakes restoration projects, including planning, research, monitoring, outreach, and on‑the‑ground work. At the same time, no funds may be used to place dredged material from Lake Erie into open lake unless a State approves it under Clean Water Act section 401. Until a State approves open‑lake placement, the Army Corps must keep using upland placement.
Tighter controls on moving water funds
The law limits how funds for key water programs can be moved or reprogrammed. For Title I: it bans creating or ending programs by reprogramming and sets caps for Investigations, Construction, and Operations & Maintenance (for example, up to 25% with a $150,000 cap for some Investigations, and 15% with dollar caps for Construction and O&M). For Title II (Bureau of Reclamation): it caps transfers (15% or $400,000), requires prior approval for some transfers over $500,000 or $5,000,000, and requires quarterly reports. For Title III: transfers are limited to authorized cases, and agencies must send semiannual reports listing amounts and purposes.
New hiring paths at EPA and Interior
EPA can hire up to 100 people at any one time each year through 2031 under special authority after consulting OPM. EPA’s Office of Chemical Safety and Office of Water can bring on students and recent grads for temporary work, with a combined $2 million cap and limited employee status for certain laws. Interior can directly appoint qualified local residents into jobs at or below GS‑9 or WG‑15 in local field units, following merit and notice rules. NOAA can set fixed or alternative relocation rates after consulting employees and personnel experts. Interior can fund nonprofits to place older Americans in its programs, but cannot displace current staff, fill jobs where a worker was laid off, or disrupt existing contracts.
No license for small gun-parts exports
You do not need an export license to send certain firearm parts to Canada if the wholesale value is $500 or less per transaction and you meet the paperwork and eligibility rules. The exemption does not cover fully automatic firearms or certain major parts unless the end user is a Canadian federal or local government. The President can temporarily require licenses if Canada’s controls are inadequate, with notice in the Federal Register.
10% of EDA funds to high-poverty counties
At least 10% of Public Works and Stevenson‑Wydler section 27 grants must go to persistent poverty counties. A persistent poverty county has 20% or more of people in poverty over the past 30 years, including U.S. territories.
Caps on special payments by agencies
Commerce and Justice can use available funds to make payments under 22 U.S.C. 2680b(i)(2). Total payments are capped at $5 million (Commerce) and $10 million (Justice).
Commerce budget shifts and NOAA flexibilities
IIJA funds shift to Commerce: $507 million to NOAA Operations, $50 million to NTIA Salaries and Expenses, $16.276 million to EDA programs, and $44 million to NOAA Procurement. Commerce may move up to 5% between accounts (no account may rise more than 10%) with oversight. NOAA can accept and use consensual funds, services, and equipment; permitting funds go to NOAA Operations and stay available until September 30, 2027.
Unified federal policy on forest bioenergy
Energy, Agriculture, and EPA must align policy on forest bioenergy. They count forest biomass as carbon‑neutral only when use does not cause forests to be converted to non‑forest land. Policies should encourage private investment, support forest health, and recognize State initiatives.
Advance pay and lower coastal matches
For FY2026, Commerce can make advance payments when officials certify the public interest. For NOAA coastal zone projects funded under the Procurement, Acquisition and Construction heading, applicants can request a waiver of up to 50% of their required cost share. These steps help projects start and reduce local cash needs.
Advance payments for large flood projects
The Army provides advance payments to non‑Federal sponsors of certain flood risk projects already under construction. The project must be in the Civil Works PPP Pilot Program guidance, have a partnership agreement that lists Federal and Non‑Federal work, and a Federal share over $700 million. Payments count toward the Federal share, and the agreement must be amended before payments.
Interior can tap funds for emergency repairs
When Interior’s emergency‑specific funds are spent, the Secretary may use title appropriations to repair or replace facilities and equipment damaged by fires, floods, storms, or other causes. The Secretary must approve these uses. All amounts used must later be replenished by a supplemental appropriation.
Interior emergency funding and accounting rules
Interior may use or transfer no‑year funds for emergencies like wildfires, floods, earthquakes, oil spills, and emergency reclamation. For wildfires, this starts only when normal suppression funds will run out within 30 days. All emergency uses must be replenished by a supplemental appropriation. BIA may record obligations against receivables in FY2026, and repayments from Aging Infrastructure projects must return to that account each year.
More money for lands and water programs
Interior and the Forest Service must fund programs exactly as listed in the explanatory tables. The law adds $50 million, with indexing, to carry out section 7(a) of Public Law 89‑108. It raises a legal threshold to $500,000 in title 54 of the U.S. Code and lifts a program cap to $1 billion in the public land management law. It also increases Reclamation drought relief funding to $130 million.
Grant overhead rates frozen at 2024
Commerce, NASA, NSF, and DOE must keep using the same negotiated indirect cost rates they used in fiscal year 2024. They cannot spend funds to change those rates or develop new changes. This keeps overhead rules stable for grants and other assistance.
Quarterly reports on disaster repair costs
Interior, the U.S. Forest Service, and EPA must send cost estimates every quarter within 30 days after the quarter ends. EPA must include costs to repair and improve resiliency of drinking water and wastewater systems in states, territories, and on tribal lands.
Faster CHIPS allocations and oversight
Within 45 days of enactment, Commerce must allocate CHIPS funds to the listed NIST projects. Within 45 days, the National Science Foundation must allocate CHIPS workforce and education funds to the listed projects. Commerce and NSF may reallocate certain amounts only after consulting and notifying the Appropriations Committees.
Overtime waivers for some federal workers
In FY2026, agencies apply premium and overtime pay waivers under section 1701. Services done in one calendar year but paid the next are ignored when applying the cap rules. This can reduce overtime or premium pay for covered federal employees.
NASA and OSTP China ties restricted
NASA and the White House Office of Science and Technology Policy cannot start or carry out bilateral work with China or Chinese-owned companies unless a later law allows it. They also cannot host official Chinese visitors. An exception is allowed after consulting the FBI and sending a certification to Congress at least 30 days before the activity, confirming no tech/data transfer risk and no interaction with officials tied to human rights abuses.
San Luis drain plan and repayments
Interior cannot pick the final discharge point for the San Luis Unit drain until California and the Secretary agree on a plan that meets state water‑quality standards approved by EPA. The Secretary must classify cleanup and drainage program costs as reimbursable or not. Reimbursable costs must be collected from beneficiaries until fully repaid, and future drainage service and study costs are fully reimbursable.
Stricter rules for big DOE projects
The Energy Department faces tighter controls on large projects and awards. DOE cannot approve CD-2 or CD-3 for projects over $100,000,000 without an independent cost estimate. For awards of $1,000,000 or more, DOE must give Congress 3 business days’ notice; big lab funding ($25,000,000+) also needs notice, and DOE must file quarterly reports on smaller grants. DOE cannot give $10,000,000+ awards to any “entity of concern.” Projects asking for over $100,000,000 must use internal, independent project management procedures. The law also applies existing authorities to NETL site support prime contractors.
Faster park and conservation project funding
Interior and Agriculture must allocate Land and Water Conservation Fund (LWCF) money for FY2026 to named projects within 45 days and provide project lists in 30 days, with reprogramming and notice rules. Legacy Restoration Fund project lists are due in 30 days, and funds must be allocated within 45 days after approval. NPS may retain up to 7% of State Conservation Grants for state admin matches. Some LWCF‑governed funds may be reallocated to the Federal Highway Administration for covered transportation projects.
Alaska timber and incinerator rules
In Alaska Region 10, no timber sale can be advertised if the appraisal shows a deficit (price won’t cover costs and normal profit). Western red cedar not needed by Alaska processors must be offered to processors in the contiguous 48 States first; leftovers can be exported. All yellow cedar can be sold at export prices. For small, remote incinerators in Alaska, EPA cannot enforce the March 21, 2011 rule; older rules apply until a new rule is issued.
Water projects must use U.S. steel
State Revolving Fund water projects must use U.S.-produced iron and steel. EPA can waive this for public interest, if needed materials are not reasonably available in the right quality, or if using U.S. iron and steel would raise total project cost by more than 25%. EPA must post a public notice with 15 days for informal comment before a waiver. EPA may keep up to 0.25% of SRF funds to manage this requirement.
BLM to fast-track some mining claims
If you have a mining claim in the Public Land Order 7921 area and request a validity determination, BLM gives your request priority. BLM aims to complete it within three years. This deadline is a target and does not guarantee an outcome.
More flexibility for DOE small-business awards
DOE can move SBIR/STTR and Technology Commercialization Fund dollars within each account without the usual reprogramming limits. Award administration must be coordinated with the offices that manage those accounts. This helps small businesses by smoothing how funds are allocated to awards.
ATF canine center stays in Virginia
ATF cannot use funds to move the Canine Training Center or the National Canine Division from Front Royal, Virginia. These facilities stay in place, preserving local operations and jobs.
Funds to offset Corps fish losses
The Army may transfer up to $8.733 million to the Fish and Wildlife Service to mitigate fisheries lost due to Corps of Engineers projects. The money comes from Operation and Maintenance funds in this title.
Grants for forest and grassland collaboratives
The Forest Service can fund collaboratives involving tribes, state and local governments, nonprofits, for‑profits, and schools. Money can support facilitation, planning, projects, technical help, operations, and participant costs. Awards follow public notice and competition where Title 2 rules apply.
Long-term care contracts for wild horses
Interior can sign and renew cooperative agreements and contracts up to 10 years for long‑term care of excess wild horses and burros on private land. The usual 5‑year limit for such contracts does not apply here.
More public reporting by agencies
BSEE, BOEM, and OSM must post short descriptions of approvals or departures within 15 business days, excluding confidential business info. Commerce, NASA, and NSF must report quarterly on official travel to China, including purpose. DOJ must send quarterly reports on the Crime Victims Fund, Working Capital Fund, Three Percent Fund, and Asset Forfeiture Fund with detail matching FY2024.
More time for wildfire spending reports
Wildfire suppression reports are due in 180 days instead of 90 days. Reports must also show spending in the first two quarters of the next fiscal year that came from the prior year’s suppression operations.
No funds to target religion or lobby
Money in this law cannot be used to investigate or prosecute religious institutions because of their beliefs. Funds also cannot be used to influence Congress on laws or appropriations, except for communications allowed under 18 U.S.C. 1913.
No moving Guantanamo detainees to U.S.
Funds cannot be used to build, buy, or modify U.S. facilities to house certain Guantanamo detainees. Funds also cannot be used to transfer or release those detainees into the United States or its territories. Changes at the Guantanamo Bay Naval Station are still allowed.
Park land for Long Bridge rail project
Interior may convey about 4.4 acres of National Park Service land to Virginia or D.C. for the Long Bridge rail project. The land must be used for rail‑related infrastructure or it can revert to the Park Service after restoration to the Secretary’s satisfaction. The authority ends once the conveyance is complete.
Protects peaceful school-board protesters
The Justice Department cannot use this law’s funds to target or investigate parents who peacefully protest at school board meetings and are not suspected of a crime. This protection applies upon enactment.
Sage-grouse ESA proposed rules blocked
Interior cannot use funds to write or issue proposed Endangered Species Act rules for the greater sage‑grouse or the Columbia Basin sage‑grouse. This stops those specific proposals.
Stronger budget oversight at nuclear agency
The Nuclear Regulatory Commission must tell Congress 30 days before reprogramming that changes a program by more than $500,000 or 10%, whichever is less. NRC can waive the 30 days only if notice would create a serious risk to health, the environment, welfare, or national security, and must notify within 3 days after. NRC must also send monthly reports with budget authority, unobligated balances, and unliquidated obligations for each program.
Tribal funding cap and lease timing
In fiscal year 2026, no tribe’s Tribal Priority Allocation cut may exceed 10%, except when fixing dual enrollment, overlapping service areas, or inaccurate distribution methods. For leases under Indian Self-Determination section 105(l), the first lease term now starts no earlier than the date the lease proposal is received.
Two new Smithsonian museums protected
No funds may be used to close, delay, merge, move, cut, or otherwise reduce the Smithsonian American Women’s History Museum or the National Museum of the American Latino. Their operations and development are protected.
Waivers for justice grants in hardship
The Attorney General may waive certain rules for reentry demonstration projects and some Prison Rape Elimination Act grants made in FY2023–FY2026. A grantee must request a waiver and have an AG finding of fiscal hardship.
Water and energy laws extended
The Bay-Delta law now uses 2026 instead of 2022, and one line is raised from $30,000,000 to $32,600,000. Another law is extended through 2027. A separate rule now allows up to seven renewals, not three, and removes a company name reference.
Marked hatchery salmon for easier fishing
In FY2026, the Fish and Wildlife Service mass marks hatchery salmon and steelhead that are meant for harvest. The marks must be easy for commercial and recreational fishers to see.
More support for tribal schools and programs
Tribal recipients of Tribally‑Controlled School Grants can use interagency vehicles and services like Indian Self‑Determination contractors. For FY2026, EPA may award cooperative agreements to tribes or authorized intertribal consortia to help run federal environmental programs when no acceptable tribal program exists. These EPA agreements cannot draw from State assistance funds.
Livestock spared GHG reporting and permits
Agencies cannot use funds to require farms to report greenhouse gases from manure systems. Agencies also cannot require Clean Air Act Title V permits for CO2, N2O, water vapor, or methane that come from biological processes in livestock production. These protections start upon enactment.
EPA can collect FY2026 program fees
EPA may collect fees under the Solid Waste law and pesticide registration service fees in FY2026. The law does not list exact amounts here. Collected fees can be used and stay available until spent.
Large contracts require tax compliance certification
For any contract or grant over $5,000,000, the bidder must certify it filed all required federal tax returns for the past three years, has no criminal conviction under the tax code, and has no unpaid federal tax assessment older than 90 days unless it is on an approved plan, accepted offer in compromise, or in a non‑frivolous proceeding.
Limits on prison spending and services
DOJ funds cannot pay for abortions except to save the mother’s life or in cases of rape or incest. DOJ funds also cannot be used to require or help perform abortions; BOP must still provide escort services so inmates can get permitted care offsite. Federal prisons cannot buy cable TV or recreational audiovisual gear, but may buy items for training, religious, or education programs. The Bureau of Prisons and U.S. Marshals may transport maximum or high-security prisoners only to facilities BOP certifies as appropriately secure.
Live tissue training requires AG approval
Agencies cannot use funds for live tissue training unless the Attorney General issues a written, non-delegable decision that it is medically necessary and cannot be replicated by alternatives.
Government-funded networks must block porn
Funds in this law cannot maintain or create a network unless it blocks the viewing, downloading, and exchanging of pornography. Law enforcement, prosecution, adjudication, and victim‑assistance uses are exempt when needed for those activities.
Army Corps fees and contract limits
The Army Corps can collect recreation fees at any recreation site inside a Corps project. The Corps also cannot award or change contracts that commit money beyond unobligated appropriations, unless reprogramming is allowed. Existing integrated design and construction contracts are exempt, but must be modified within 60 days and reported to Congress.
Gun imports eased; lead rules blocked
Agencies cannot spend money to deny qualified permits to import U.S.-origin curios or relics. They also cannot deny or stall eligible shotgun import applications unless the same model was denied before January 1, 2011. No funds may be used to regulate lead content in ammunition, components, or fishing tackle. The government cannot spend to implement the Arms Trade Treaty until the Senate ratifies it. Federal officers cannot facilitate transfer of an operable gun to a suspected cartel agent unless they continuously control or monitor it.
Health studies allowed; cap on profiles
In fiscal year 2026, ATSDR may do alternative health studies instead of some CERCLA health assessments and does not have to follow certain CERCLA deadlines for those studies. ATSDR may issue no more than 40 new toxicological profiles in FY2026. Existing profiles can still be updated.
Pause on Lava Ridge wind permit
Interior cannot grant or renew a right‑of‑way for the Lava Ridge Wind Project until it analyzes alternatives to reduce harm to wildlife, cultural sites, roads, hunting, and wetlands. The Secretary must consult local officials and stakeholders, finish consultations and seek feedback by September 30, 2026, and brief Congress.
Sponsors & CoSponsors
Sponsor
Cole
OK • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
senate vote • 1/15/2026
On Passage of the Bill H.R. 6938
Yes: 82 • No: 15
senate vote • 1/15/2026
On the Cloture Motion H.R. 6938
Yes: 85 • No: 14
senate vote • 1/12/2026
On Cloture on the Motion to Proceed H.R. 6938
Yes: 80 • No: 13
house vote • 1/8/2026
On Passage
Yes: 397 • No: 28
house vote • 1/8/2026
On Retaining Divisions B and C
Yes: 419 • No: 6
house vote • 1/8/2026
On Retaining Division A
Yes: 375 • No: 47
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