House Passes FY2026 Spending Package, Rejects 40 Percent NIH Cut

The U.S. House of Representatives has passed a bipartisan FY2026 spending package that preserves and modestly increases federal support for education and research, rejecting the Trump administration's proposed 40 percent cut to the National Institutes of Health.

The Numbers That Matter

NIH receives $48.7 billion in discretionary funding, a $415 million increase over FY2025. The Department of Education gets $79 billion, up $217 million and roughly $12 billion above the administration's request. The Institute of Education Sciences receives $790 million, tripling the administration's $261 million proposal.

Critically, the package blocks the administration's proposed 15 percent cap on NIH indirect cost reimbursement rates. It also includes protective language preventing changes to negotiated indirect cost rates across all Department of Health and Human Services research agencies.

Pell Grants hold at a maximum of $7,395 for the 2026-27 academic year. Funding for TRIO, GEAR UP, and programs supporting HBCUs, Hispanic Serving Institutions, and Tribal Colleges all received increases.

A Senate Showdown Looms

The package now faces an uncertain path in the Senate, where Democrats may block the broader legislation unless Department of Homeland Security funding is separated over ICE-related concerns. A government shutdown remains possible if the impasse cannot be resolved.

Why Researchers Should Watch Closely

While the House bill represents a win for the research community, the OMB only approved release of NIH funds on March 16, well into the fiscal year. This delay compressed the agency's timeline for awarding new grants. Researchers waiting on funding decisions should monitor Senate negotiations closely, as further delays could push award announcements deeper into the summer.

Grant seekers can track real-time federal funding developments on grantedai.com. In-depth analysis of the spending package is available on the Granted blog.