This week, Congressional leaders released the bill text and joint explanatory statement of the bicameral and bipartisan agreement reached on Fiscal Year 2026 Labor-HHS funding, which includes responsible funding levels of federal public health programs important to local health departments. Notably, the bill rejects large cuts and the proposed restructuring of the Department of Health and Human Services (HHS) that was included in the President’s FY26 Budget Request. Overall, the bill proposes HHS receive $116.5 billion, which is $100 million below the FY25 enacted level but well above the President’s Budget Request and the House bill. 

The Labor-HHS appropriations bill is included in a four-bill “minibus” package that also includes Defense, Transportation, and Homeland Security. NACCHO expects a House vote on the final passage of the minibus later this week, which will then likely be followed by a vote in the Senate next week. Congress has indicated the goal is to get the bill signed into law before January 30, 2026 when current funding is set to lapse.

Below is an initial analysis of how the bill fares for programs that matter most to local health departments. This initial analysis will be updated as more details become available.

Centers for Disease Control and Prevention (CDC)

The bill provides $9.147 billion for the Centers for Disease Control and Prevention (CDC), which is a slight decrease from $9.166 billion in FY25, though notably higher than the initial FY26 proposals in both the House and Senate. Most programs would receive level funding, or a slight increase in funding in FY26:  

• Public Health Infrastructure and Capacity, $360 million (+$10 million from FY25)   
• Public Health Data Modernization, $185 million (+$10 million from FY25)
• Public Health Emergency Preparedness Cooperative Agreements, $735 million (no change)
• 317 Vaccine Program, $681.9 million (no change)
• Social Determinants of Health (no funding allocated)
• Domestic HIV Programs, including Ending the Epidemic, $1 billion (no change)
• Viral Hepatitis, $46 million (+$3 million from FY25)
• Sexually Transmitted Infections, $164 million (-$10 million from FY25)
• Epidemiology and Lab Capacity Program, $40 million (no change)
• Environmental Health program, $242.8 million (no change)
• Injury Prevention and Control, $761.4 million (no change)
• Chronic Disease Programs, $1.4 billion (-$1 million from FY25)
• Tobacco Prevention and Control, $246.5 million (no change)
• Birth Defects and Developmental Disabilities, $205.1 million (-$1 million from FY25)

The bill also includes language that highlights the need for HHS to have responsible staffing levels to complete their responsibilities and to ensure additional notification and oversight in relation to potential reorganization as proposed by the Administration. 

SEC. 239. The Department of Health and Human Services shall support staffing levels necessary to fulfill its statutory responsibilities including carrying out programs, projects, and activities funded in this title of this Act in a timely manner: Provided, That the Secretary shall submit a detailed plan and justification to the Committees on Appropriations of the House of Representatives and the Senate, and make publicly available to allow for an independent review not less than 60 days prior to initiating the execution of any reorganization moving functions, pursuant to any authorities otherwise provided, carried out by the Centers for Disease Control and Prevention to another component of the Department of Health and Human Services, relative to how such functions are funded in this Act.  

Administration for Strategic Preparedness and Response (ASPR)

The bill includes $3.692 billion for ASPR, a slight increase from $3.634 billion in FY25.

• Medical Reserve Corps program at $6.24 million (no change)
• Hospital Preparedness Program at $307.055 (+$2 million from FY25)

Health Resources and Services Administration (HRSA)

The bill includes $8.927 billion in discretionary funding for HRSA, an increase from $8.85 billion in FY25. Within HRSA, the bill would provide $2.571 billion for the Ryan White Program, including $165 million for the Ending the HIV/AIDS Epidemic Initiative, which is level funding from FY25. Unfortunately, no funds were included for the Public Health Workforce Loan Repayment Program, a key NACCHO priority.

Substance Abuse and Mental Health Services Administration (SAMHSA)  

The bill includes $7.4 billion in funding for SAMHSA, which is approximately level funding from FY25 levels.

Joint Explanatory Statement

The Joint Explanatory Statement is a document produced by the conference committee that addresses the differences between the House and the Senate. Along with the text in this section, the House and Senate Committee reports, which are documents accompanying the funding bills developed by each chamber, [AC2] have standing unless otherwise noted to the contrary. These other reports include language about the importance of ensuring federal funding reaches the local health department level championed by NACCHO. For more information on the committee reports, see our analyses of the House and Senate FY26 proposals.

Notable language for local health departments from the Joint Explanatory Statement includes: 

CDC - Public Health Data Modernization-The agreement includes funding to advance progress on the initial five key pillars of public health data modernization and the implementation of enterprise-level public health data systems at CDC and State, territorial, local, and Tribal health departments. Within 90 days of enactment of this Act, the agreement directs CDC to provide a briefing on the program’s progress and plans.

CDC - Opioid Overdose Prevention-The agreement directs CDC to fund awards to State, local, and Tribal health departments at no less than the percentage of overall funding provided for this program in fiscal year 2024.

CDC - Suicide-The agreement encourages CDC to prioritize funding to public health departments for comprehensive suicide prevention programs.

SAMHSA - Harm[AC3]  Reduction- The agreement recognizes the Administration’s efforts to prioritize prevention, treatment, and long-term recovery in relation to substance use disorder, including the availability and provision of opioid overdose reversal medications such as naloxone to reduce overdose deaths.

ASPR - Strategic National Stockpile (SNS) State Strategic Stockpiles-The agreement directs ASPR to provide a briefing within 180 days of the enactment of this Act on agency guidance and technical assistance for State strategic stockpiles.

HHS - Payment Management System (PMS)-In addition to the directives included under this heading in Senate Report 119-55, the agreement directs HHS to provide advance notification to the Committees prior to implementing any restrictions that would delay disbursement of funds to grantees through PMS. The agreement further directs HHS to ensure that disbursements through PMS are processed within five business days, except under extraordinary circumstances. For any delays of more than five business days, HHS is directed to brief the Committees on the circumstances justifying such delays.

HHS- Grant Management.— Grant terminations can significantly and negatively impact the implementation of programs funded in this Act, as they are intended to be implemented by this agreement. HHS is directed to consult with the Committees prior to terminating grants. The agreement includes a provision requiring notification to the Committees no less than three days prior to announcing or providing notice of a grant termination.