EPA Budget Proposals: Potential Impacts on ORD and TSCA in 2026
Three different funding levels have been proposed for the US Environmental Protection Agency (EPA) for fiscal year (FY) 2026.
The President’s Discretionary Budget Request proposes a reduction of 54.5% to EPA’s funding compared to FY 2025. Justification includes increased operational efficiencies and reduced “wasteful spending,” while supporting EPA’s core mission, “common-sense deregulation,” and Powering the Great American Comeback (EPA 2025). Programs and funding facing major reductions or elimination include the Office of Research and Development (ORD), Hazardous Substance Superfund, Environmental Justice initiatives, and various Categorical Grants, including the full elimination of the Toxics Substances Compliance Categorical Grant.
The House Appropriations Committee approved a budget reducing EPA’s funding by 23% compared to FY 2025 (House Committee on Appropriations - Republicans 2025). The Interior, Environment, and Related Agencies Fiscal Year 2026 appropriations bill emphasizes “unleashing American energy,” expanding fossil fuel development, cancelling funding for clean energy and GHG reduction initiatives, and reducing regulatory requirements for chemical and pesticide manufacturers.
The Senate Appropriations Committee approved a budget reduction of just 5% for EPA compared to FY 2025, expressing concern with EPA’s disregard for Congressional directives, including briefing the Committee on its proposed reorganization plans (E&E News 2025). The appropriations bill orders EPA to fund environmental justice activities and maintain the ORD’s staffing levels, effectively halting the closure of both offices.
Vireo continues to monitor developments at the US EPA and other key agencies on behalf of our clients.