Spending season began in the U.S. House of Representatives on February 25 as the House Appropriations Committee released awaited guidance to Members of Congress on how to formally develop fiscal year (FY) 2027 funding requests. This information is essential for directing individual House offices on how to properly submit their fiscal priorities to the Committee and for ensuring that Members of Congress adequately communicate FY 2027 opportunities to the public.

What Does an Annual Spending Bill Do?

Discretionary federal programs and activities across departments are funded by 12 annual appropriations bills according to jurisdiction. There are three types of requests:

• Community Project Funding Requests (formerly known as earmarks): These fund specific projects in individual communities and must have a federal nexus. They also must meet other requirements established by federal law, House rules and the Appropriations Committee to ensure only high-quality projects are funded. This year, House offices have set early March submission deadlines for earmark requests from the public.
• Programmatic: These fund a specific initiative at a specified level. Most, but not all, federal programs receive line-item appropriations that Congress must enact each year. Programmatic requests include items like federal water infrastructure programs at USDA, healthcare workforce training initiatives at HHS, worker safety programs at DOL and management of areas administered by the National Park Service within DOI.
• Language: Rather than directing funding to a particular office or agency, bill or report language encourages, urges, expects, or directs some type of action by a federal entity, like a formal study or recommendations on a topic of interest. Language requests are also used to signal lawmaker priorities and areas where committees may focus future legislative activity or oversight.

Why Does This Process Matter to Me or My Business?

If your business receives federal grants or contracts, regularly interacts with any agency for oversight or licensing, relies on federal sources of data, or supports an entity that falls under these categories, this process is relevant to you. Any related organization seeking to advance its mission should be plugged into how federal spending may impact their objectives.

What Happens Next?

Individual Members of Congress have begun inviting stakeholders to submit proposals for FY 2027 funding and the House Appropriations Committee soon will commence hearings with Administration officials to examine upcoming year priorities, likely in March and April. With the President’s FY 2027 budget expected in early April, the Committee intends to begin marking up legislation in May and aims for a floor vote before the August recess. The U.S. Senate typically produces its legislation concurrently and the two chambers reconcile their versions before final enactment. The federal fiscal year runs through Sept. 30.

Are There Opportunities for Me to Engage in This Process? How Can I Stay Informed?

The Polsinelli Public Policy Group helps clients understand how a federal public policy strategy can advance their business objectives, minimize or eliminate regulatory and legislative obstacles, and provide access to a broader advocacy network to stay ahead of emerging sector initiatives. We are available to guide clients and prospective clients through appropriations and any aspect of the federal legislative or regulatory process, issue spot and identify policy areas of interest and execute tailored policy campaigns as another avenue for achieving your organization’s goals.

Further contributions to this article by Sylvia Kornegay, Steve Stranne, Julius W Hobson Jr, Mark W Weller, Michael M Gaba, Christopher C Rorick, Clare Chmiel, Ronke Fabayo