President’s FY 2027 Budget Proposal Moves Enforcement of Section 503 & VEVRAA to a new Office of Civil Rights at DOL

On April 3, 2026, the Office of Management and Budget released the president’s proposed federal budget for fiscal year (FY) 2027. The budget proposal reduces overall funding for the Department of Labor (DOL) by $3.5 billion, or an almost 26% decrease from the 2026 enacted level of funding. 

Once again, the budget proposal includes defunding the Office of Federal Contract Compliance Programs (OFCCP), but would move the agency’s enforcement functions under Section 503 of the Rehabilitation Act of 1973 and Vietnam Era Veterans Readjustment Act (VEVRAA) to a proposed new Office of Civil Rights.

It is important to note that the president’s budget proposal is what the White House is requesting for FY 2027 – final funding for federal agencies is determined by Congress. The president’s FY 2026 budget request proposed eliminating OFCCP and moving enforcement of Section 503 to the Equal Employment Opportunity Commission and VEVRAA to the Veterans’ Employment and Training Service. This did not take effect, as Congress provided OFCCP with $101 million in funding, and the agency remained responsible for both Section 503 and VEVRAA enforcement.

Federal contractors should take note that even if the president’s budget proposal for OFCCP is ultimately approved and finalized by Congress for FY 2027, the obligations of federal contractors under Section 503 and VEVRAA remain unchanged. Berkshire is committed to keeping contractors informed and will continue to report on developments related to OFCCP’s FY 2027 funding and Section 503 and VEVRAA enforcement.