On January 15th, the Senate, in an 82-15 vote, passed a funding package that included three bicameral, bipartisan fiscal year (FY) 2026 appropriations bills: the Commerce, Justice, Science, and Related Agencies; Energy and Water Development; and Interior, Environment, and Related Agencies bills. The bill now heads to the president’s desk to be signed into law. The House cleared the package in an overwhelming 397-28 vote on January 8th.
WHAT’S IN THE PACKAGE?
Economic Development Administration Funding
This appropriations package provides $466 million for the Economic Development Administration (EDA) in FY 2026, a modest $2 million reduction below FY 2025 levels. Given the previously submitted proposals for EDA funding in FY 2026, this is a strong reaffirmation of the agency’s role in regional economic development. Below are programmatic items whose funding levels changed for FY 2026 (in thousands of dollars):
Additionally, the bill eliminates the Good Jobs Challenge program, appearing to replace it with $10 million for Workforce Training Grants, while also adding a new $18 million line item for the Recompete program.
Regional Commission Funding
The package also provides funding to Federal-State Regional Commissions (in thousands of dollars):
The newly authorized Mid-Atlantic Regional Commission and Southern New England Regional Commission and reauthorized Northern Great Plains Regional Authority are not currently active and did not receive funding for FY 2026.
IMPACT TO NADO MEMBERS
For Regional Development Organizations (RDOs), this package signals continued stability for funding of critical regional development programs and entities by boosting adjustment‑focused EDA programs, adding new workforce investments, and sustaining funding for Regional Commissions.
LOOKING AHEAD
Congress has four funding bills left to pass before the January 30th deadline: Defense, Transportation-HUD, Labor-HHS-Education and Homeland Security.
NADO will continue to closely monitor the Fiscal Year 2026 Appropriations process, providing analyses on the impacts of legislation to our members.