House Appropriations bill includes funding for OFCCP

On January 20, 2026, the House Appropriations Committee released the Consolidated Appropriations Act, 2026, which advances funding for the rest of fiscal year 2026 for several federal agencies and departments. 

Included in this funding is $13.7 billion for the Department of Labor, which includes $101 million for the Office of Federal Contract Compliance Programs (OFCCP). While the spending bill reduces funding to OFCCP by about $10 million compared to 2024 and 2025, the fact that the agency is receiving this level of funding is notable considering the rollercoaster of OFCCP funding proposals we have seen in the past year.

In June 2025, the administration released a proposed budget that would eliminate OFCCP and reassign its responsibilities for enforcing Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) to other agencies. A few months later, however, the Senate Appropriations Committee approved an appropriations bill for fiscal year 2026 that included over $105 million for OFCCP’s “salaries and expenses”.

The Consolidated Appropriations Act, 2026 released by the House Appropriations Committee aligns with the Senate Appropriations Committee’s appropriations bill and does not make mention of the White House’s proposal for eliminating OFCCP. The money allocated to OFCCP in the Act is listed as being for “salaries and expenses” with no further details.

The Act moves to the House floor this week, and the clock is ticking before the next funding deadline on January 30, 2026. If lawmakers are unable to pass further appropriations by the 30^th, a partial government shutdown will occur as many of the continuing resolutions providing funding will expire.

It remains to be seen what this means for federal contractors. As of now, nothing has changed as far as requirements and enforcement. Contractors should still be completing their plans for individuals with disabilities and veterans as required under Section 503 and VEVRAA, as well as related compliance obligations. While OFCCP has not been carrying out audits of federal contractors for the past year, the authority to do so still lies with the agency. In addition, the agency continues to actively investigate Section 503 and VEVRAA complaints. Given this continued enforcement and what seems to a renewed budget, contractors should ensure that their house is in order when it comes to Section 503 and VEVRAA compliance. Contractors should also watch developments with respect to the new anti-DEI contract certifications, with some speculating the Department of Labor, including OFCCP, may have a role in enforcing those provisions once finalized.