White House Releases FY27 Budget Request 

Overview

On April 3rd 2026, the White House released the President’s FY 2027 (FY27) discretionary budget request to Congress, outlining the administration’s proposal for spending for the fiscal year beginning October 1, 2026. 

The release of this budget officially kicks off the FY27 appropriations process. The President’s budget request is technically due to Congress by the first Monday in February. Although it sets priorities for the fiscal year starting October 1, the proposal is non-binding, acting only as a recommendation. Congress frequently ignores or significantly alters the request, with final spending decisions made through the appropriations process. See NADO’s blog on appropriations HERE.

What’s in the President’s Budget

Overall, the President’s Budget for FY27 proposes a 10-percent discretionary funding cut compared to FY26 for non-defense funding. For further details, see the Budget Appendix. Below is a list of proposed cuts and additions to relevant agencies and programs for Regional Development Organizations (RDOs):

Department of Agriculture

The Budget requests $20.8 billion in discretionary budget authority for USDA for FY2027, a $4.9 billion or 19-percent decrease from the FY2026 enacted level.

• Rural Business Service (RBS) (–$82 million). Eliminated
• Community Facilities Grant Earmarks (–$659 million) Eliminated

Department of Commerce

The Budget requests $9.2 billion in discretionary budget authority for the Department of Commerce for FY2027, a $1.3 billion or 12.2-percent decrease from the FY2026 enacted level.

• Economic Development Administration (EDA) (–$449 million) Eliminated
  • This zeroes out EDA’s budget for FY27. However, in FY26, Congress opted to level fund EDA despite the White House zeroing it out in the President’s Budget. 
• National Institute of Standards and Technology (NIST) (–$993 million) Reduced
• National Telecommunications and Information Administration (NTIA) (–$2.2 billion) Reduced

Department of Homeland Security

The Budget requests $63 billion in discretionary budget authority for DHS for FY2027, a $2.2 billion or 3.3-percent decrease from the FY2026 Continuing Resolution level.

• FEMA Non-Disaster Grant Programs (–$1.3 billion) Non-Disaster Eliminated

Department of Housing and Urban Development

The Budget requests $73.5 billion in discretionary budget authority for HUD for FY2027, a $10.7 billion or 13-percent decrease from the FY2026 enacted level.

• Community Development Block Grant (CDBG) (–$3.3 billion) Eliminated
  • This is the sixth time that President Trump has attempted to end the CDBG program. Congress has ignored his request each time.
• HOME Investment Partnerships Program (–$1.3 billion) Eliminated
• Homeless Assistance Programs (–$393 million) Eliminated

Department of Labor

The Budget requests $9.9 billion in discretionary budget authority for the Department of Labor (DOL) for FY2027, a $3.5 billion or 25.9-percent decrease from the FY2026 enacted level.

• Job Corps (–$1.6 billion) Eliminated
• Senior Community Service Employment Program (SCSEP) (–$395 million) Eliminated

Department of Transportation

The Budget requests $26.6 billion in discretionary budget authority for the Department of Transportation for FY2027, a $1.6 billion or 6.2-percent increase from the FY2026 enacted level.

• Big, Beautiful Infrastructure (+$1.3 billion) Increased 
  • The Budget provides $770 million for the Nationally Significant Multimodal Freight & Highway Projects discretionary grants program to and an additional $714 million to repair or replace highway bridges in disrepair.

Department of Treasury

The Budget requests $11.5 billion in gross discretionary budget authority for Treasury’s domestic programs for FY2027, a $1.5 billion or 12-percent decrease from the FY2026 enacted level.

• Community Development Financial Institutions (CDFI) Fund (–$204.5 million) Eliminated

Environmental Protection Agency

The Budget requests $4.2 billion in discretionary budget authority for the Environmental Protection Agency (EPA) for FY2027, a $4.6 billion or 52-percent decrease from the FY2026 enacted level.

• State Revolving Funds (SRF) (– ~$2.5 billion) Nearly Eliminated
• Categorical Grants (– ~$1 billion) Reduced

Small Business Administration

The Budget requests $329 million in discretionary budget authority for the Small Business Administration (SBA) for 2027, a $671 million or 67-percent decrease from the 2026 enacted level.

• Entrepreneurial Development Programs (–$309 million) Nearly Eliminated
• Salaries and Expenses (S&E) (–$170 million) Reduced

Regional Commissions

The Budget provides $120 million for the Appalachian Regional Commission (ARC), a 40% reduction from FY 2026 funding.

The Budget eliminates funding for all other Regional Commissions.

Next Steps

Within the six weeks following submission of the President’s Budget, the various congressional committees should ideally report their spending and revenue proposals to the House and Senate budget committees. After each budget committee compiles this information, Congress is supposed to pass a concurrent budget resolution. However, failure to pass a budget resolution has recently become more common.

All 12 appropriations bills need to be passed by September 30. However, Congress oftentimes passes a short-term Continuing Resolution to fund the government while appropriators continue their work to draft and pass funding bills. 

NADO will keep its members informed as the FY27 Appropriations process continues.