Sneak Preview: Appropriations Packages Fund Numerous Grant Programs
(The following was excerpted from a recent Thompson Grants Compliance Expert article.) Recent federal fiscal year (FY) 2026 appropriation packages signed into law, which fund the federal government through Sept. 30, contain various provisions that will affect grants, including requirements for the Department of Health and Human Services (HHS), the largest grantmaking agency, to notify Congress before terminating a grant.
Within the Consolidated Appropriations Act of 2026 (Pub. L. 119-75), which includes the FY 2026 Labor, Health and Human Services, and Related Agencies appropriations bill, Congress has extended the funding for several public health programs and rejected the Trump administration’s efforts to significantly cut public health funding and restructure departments within public health agencies.
Of note, the bill requires HHS to notify congressional appropriations committees at least three days prior to announcing or providing notice of a grant termination. In addition, HHS must provide advance notification to the committees prior to implementing any restrictions that would delay the disbursement of funds to grantees through the Payment Management System (PMS). HHS also is directed to ensure that PMS disbursements are processed within five business days, except under extraordinary circumstances.
Further, the bill calls for HHS to support staffing levels necessary to fulfill its statutory responsibilities for overseeing programs, projects and activities funded under the bill, and rejects the Trump administration’s proposed 40% cut for biomedical research. It also requires the National Institutes of Health (NIH) to report monthly to Congress regarding grant awards, terminations and cancellations to ensure transparency and accountability. The Substance Abuse and Mental Health Services Administration (SAMHSA) is directed to consult with the appropriation committees not less than three weeks prior to issuing a funding opportunity announcement (FOA) for any competitive grant program and provide a draft FOA to the committees not less than five days prior to publicly issuing it.
(The full version of this story has now been made available to all for a limited time here.)
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