EPA Keeps $8.8B Budget After Congress Blocks 54% Slash
March 3, 2026 · 2 min read
Claire Cummings
The Environmental Protection Agency will operate with an $8.8 billion budget in FY2026 after Congress decisively rejected the Trump administration's proposal to cut the agency by more than half. President Trump signed the spending package on January 26, 2026.
The White House had requested just $4.16 billion for the EPA — a 54% reduction from the FY2025 enacted level of $9.14 billion that would have been unprecedented in the agency's 55-year history. Instead, bipartisan appropriators negotiated a figure representing a modest 3.5% decrease from the prior year.
$1.6 Billion in Community Grants Preserved
The enacted budget preserves the bulk of EPA's Community Grants program, with $1.6 billion appropriated for 1,163 community grants projects supporting water infrastructure and environmental protection. These grants remain accessible through EPA's regional offices and Grants.gov.
The overall Interior, Environment, and related agencies package allocated more than $38 billion — $9.5 billion above what the administration sought. The bipartisan deal represented a compromise: the House had originally proposed a 23% cut, while the Senate negotiated a 5% reduction, ultimately landing at approximately 3.5%.
What Grant Seekers Should Watch
The White House's original proposal had targeted several specific programs for elimination, including atmospheric protection ($108.4 million), resource recovery and hazardous waste grants ($101.4 million), environmental justice initiatives ($100 million), and the Diesel Emissions Reduction Grant Program ($90 million). Applicants in these areas should verify current program status and funding levels through their EPA regional office.
Environmental advocates caution that the $8.8 billion figure, while far above the administration's request, remains historically low when adjusted for inflation. Real purchasing power continues to erode, and the same political dynamics will repeat when FY2027 negotiations begin later this year.
Organizations working in water infrastructure, waste management, and community environmental health should act while funding remains stable. Granted aggregates EPA and other environmental funding opportunities — for deeper analysis, visit the Granted blog.