Overview
FY27 Guidance Released. While Fiscal Year 2026 (FY26) funding for the Department of Homeland Security (DHS) continues to dominate headlines, much of the substantive work on Capitol Hill has shifted to FY27. This week, the House Appropriations Committee released guidance for FY27 requests announcing that Members must submit their priorities to the Committee by March 13; consequently, Member portals must close before then with many offices setting new deadlines – some as early as today – for submissions. Some Member portals in the Senate have also already closed, though the Senate committee has yet to issue its FY27 guidance.
The FY27 House guidance includes several notable changes. First, Members may now submit up to 20 Community Project Funding requests, an increase from the previous limit of 15. While the overall 1% discretionary spending cap for earmarks remains, the higher request limit allows funding to be distributed across a wider range of projects.
In addition, the House has reopened a narrow portion of the Labor-HHS-Education bill for earmarks for the first time in three years. Under the new rules, requests will be accepted only within the Health Resources and Services Administration (HRSA) account, which primarily funds hospitals. Though limited in scope, this presents a valuable opportunity for healthcare stakeholders. The Senate already allows earmarks to this bill.
DHS: Continued Funding Stalemate. The FY26 DHS appropriations bill remains stalled, leaving several agencies in shutdown status, including DHS, the Transportation Security Administration (TSA), U.S. Customs and Border Protection (CBP), and the Federal Emergency Management Agency (FEMA).
On Sunday, DHS suspended the Global Entry program, which expedites clearance for pre-approved, low-risk travelers entering the United States. The Department initially planned to suspend TSA's PreCheck program as well but reversed course. DHS stated the Global Entry suspension was necessary to "preserve limited funds and personnel" during the partial shutdown. Some lawmakers have questioned this decision, noting that both Global Entry and TSA PreCheck operated during the 43-day shutdown last fall, and suggesting the move may be intended to increase pressure on Congress.
Still, absent significant constituent outcry, there has been little movement toward resolving the stalemate. Both sides appear to be awaiting the President's FY27 budget request, expected soon now that the State of the Union has concluded.
Spotlight on Defense. Defense funding is expected to be a central focus in the FY27 appropriations cycle. In his State of the Union address this week, President Trump said he had "no choice" but to approve trillion-dollar defense budgets, signaling continued support for significant increases in military spending.
Of a similar note, according to a new report from Taxpayers for Common Sense, lawmakers added nearly $34 billion in "program additions" in FY26 for more than 1,000 research and procurement projects. These additions are distinct from formal earmarks, are typically proposed anonymously, and face less scrutiny. The report found that congressional increases in these accounts rose roughly 60 percent in FY26 compared to FY24 (FY25 totals were skewed by a full-year continuing resolution and temporary spending caps).
The combination of a rising defense budget and the substantial funding available through program additions makes defense appropriations a significant area of opportunity for stakeholders seeking to secure funding for projects in FY27.
With deadlines approaching quickly, stakeholders should be preparing community project proposals, programmatic requests, and report language for submission through Member portals. To discuss how these developments may affect your FY27 priorities, please contact the authors listed above.
