FY2026 Appropriations for U.S. Environmental Protection Agency

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TL/DR –

The Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026 (P.L. 119-74) provided $8.82 billion in appropriations for the U.S. Environmental Protection Agency (EPA), $319.8 million less than the FY2025 annual enacted appropriations of $9.14 billion. Additional funding from the Infrastructure Investment and Jobs Act (IIJA) increased the total to $20.82 billion, still $319.8 million less than the total enacted appropriations for FY2025. The EPA’s annual discretionary spending is typically appropriated among 10 statutory accounts with funding increases in the State and Tribal Assistance Grants (STAG) account, decreases in five accounts and flat funding for three accounts compared to FY2025.


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Overview of 2026 EPA Funding

With the passing of the Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026 (P.L. 119-74), funding was secured for the U.S. Environmental Protection Agency (EPA). The Act was enacted on January 23, 2026, after a lapse in appropriations, during which the EPA functioned under a continuing resolution, the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (P.L. 119-37). The funding was generally at the 2025 fiscal year (FY) levels.

Under P.L. 119-74, the EPA was granted $8.82 billion for FY2026, which is $319.8 million (3.5%) less than the previous fiscal year. However, it is $4.66 billion (111.9%) more than the President’s requested budget for the EPA, which was $4.16 billion. The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), which came into effect in 2021, provided an additional $12.01 billion for EPA for FY2026. Therefore, the total funding for the EPA for FY2026, combining P.L. 119-74 and P.L. 117-58, is $20.82 billion. This is $319.8 million (1.5%) less than the total enacted appropriations for EPA for FY2025.

Funding Distribution Details

The EPA’s funding has been a combination of regular annual appropriations, additional funding from the IIJA and the Inflation Reduction Act (IRA), and other supplemental appropriations. Ten statutory accounts usually comprise the EPA’s annual discretionary spending. These include Buildings and Facilities (B&F), Environmental Programs and Management (EPM), Hazardous Substance Superfund (Superfund), Hazardous Waste Electronic Manifest System Fund (HWMSF), Inland Oil Spill Program (IOS), Leaking Underground Storage Tank Trust Fund Program (LUST), Office of Inspector General (OIG), Science and Technology (S&T), State and Tribal Assistance Grants (STAG), and Water Infrastructure Finance and Innovation Act Fund (WIFIA).

The STAG and EPM accounts have historically seen the most considerable funding, followed by the Superfund and S&T accounts. It’s worth noting that the distribution of funding among these accounts has remained fairly consistent over the years, save for the Superfund account.

Changes in FY2026 Funding Levels

Compared to the FY2025 enacted appropriations, the FY2026 appropriations in P.L. 119-74 included funding increases for one EPA appropriations account (STAG), decreases in five accounts (EPM, IOS, LUST, S&T, and Superfund), and stable funding for three accounts (B&F, OIG, and WIFIA).

The STAG account received $4.41 billion in FY2026, which was an increase of $27.9 million (0.6%) from the previous fiscal year. Following the provisions of IIJA advance appropriations, the STAG account’s total funding for FY2026 is $16.03 billion. On the other hand, the EPM account saw a decrease in funding, with regular enacted appropriations for FY2026 amounting to $3.11 billion, indicating a decrease of $80.4 million (2.5%) from FY2025.

Similarly, the S&T account had regular enacted appropriations for FY2026 of $744.2 million, $11.9 million (1.6%) less than the previous fiscal year. The Superfund account experienced a significant decrease of $255.0 million (47.4%) from FY2025’s annual enacted appropriations of $537.70 million.

Policy Issues and Future Considerations

Several policy issues related to EPA appropriations could be considered by Congress. These may include recent agency reorganization efforts, reductions in force, and how these changes may impact the EPA’s ability to implement its statutory responsibilities effectively.

In 2025, EPA announced plans to consolidate, transfer, add, and eliminate certain offices and programs, including the creation of a new Office of Finance and Administration and the elimination of the Office of Environmental Justice and External Civil Rights. These changes were met with mixed views, and as decisions on EPA FY2027 appropriations and future fiscal years approach, Congress will need to consider how these changes may impact the allocation of agency appropriations.

Other possible issues for consideration include the potential impact of the end of IIJA advance appropriations after FY2026 on the EPA’s ability to carry out its responsibilities, the balance of Superfund cleanup funding from appropriations or tax receipts, and potential funding issues for EPA research and development activities following the closure of the Office of Research and Development.

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