Bill Funds OFCCP for Fiscal Year 2026
- Feb 7
- 2 min read
A budget agreement between the U.S. House and Senate for federal fiscal year (FY) 2026 funds the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) at approximately the same level as FY 2025. OFCCP funding was included in the Consolidated Appropriations Act of 2026. The act was signed by the President on February 3, 2026. This act funds the Department of Labor, the Department of Defense, and several other federal agencies. The federal fiscal year 2026 began on October 1, 2025.
The section of the bill relating to OFCCP reads as follows:
For necessary expenses for the Office of Federal Contract Compliance Programs, $100,976,000.
There is no language in the bill regarding employment levels or operations at OFCCP.
OFCCP Use of FY 2026 Funding
The FY 2026 appropriation for OFCCP is $10,000,000 less than the amount appropriated for OFCCP during FY 2025. The level of funding for OFCCP is surprising in light of an initial proposal from the House of Representatives that would have entirely eliminated funding for OFCCP. This proposal was consistent with the Trump administration's FY 2026 budget justification for OFCCP which would have eliminated OFCCP and transferred its responsibilities to other agencies. Conversely, the Senate had initially proposed to fund OFCCP at $105,976,000. The final budget agreement between the House and Senate funds OFCCP at a level much more consistent with the Senate's proposal for the agency.
While OFCCP has now received funding for FY 2026, it is not clear how this money will be spent. OFCCP continues to have responsibility for enforcing Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA). However, OFCCP is no longer enforcing Executive Order 11246, which required federal contractors and subcontractors to prevent discrimination based on race, ethnicity, sex, and other classifications. After the rescission of Executive Order 11246, the Trump administration released a memo stating that headcount at OFCCP would be reduced from 479 to 50 employees. The funding provided in the budget agreement for FY 2026 is inconsistent with this staffing level.
Recent OFCCP Activities
OFCCP traditionally has focused most of its resources on compliance reviews of federal contractors and subcontractors. There is no evidence that OFCCP has conducted any compliance reviews since February of 2025. OFCCP may be handling complaint investigations under Section 503 and VEVRAA, but there are no publicly available records regarding the number or nature of complaint investigations the agency has completed.
While OFCCP has not provided any information on recent compliance reviews or complaint investigations, the agency has taken public action on several regulatory initiatives.
On July 1, 2025, the agency published proposed changes to the regulations regarding the laws the agency has enforced.
On January 2, 2026, the agency published proposed changes to the forms applicants and employees can use to file discrimination complaints against federal contractors and subcontractors.
On January 7, 2026, the agency published a notice soliciting comments on information collections associated with VEVRAA.
As of the publication date of this blog, none of the initiatives noted above have been finalized.
