Congressional Deal Funds DOL, Rejects Plan To Eliminate OFCCP

January 21, 2026

What's New

A bipartisan agreement to fund the Department of Labor for the remainder of fiscal year 2026 was announced on January 20, 2026. While the spending deal would cut funding of several enforcement agencies, the cuts are not as steep as the White House proposed. Notably, the deal provides $101 million for OFCCP, a nine percent cut from last year’s funding of $111 million.

The Administration had proposed eliminating OFCCP and transferring its remaining functions to the EEOC and DOL-VETS. The spending deal does not do so.

The bill also allocates $260 million to the Wage and Hour Division, matching last year’s level and exceeding the Administration’s request by $25 million. The National Labor Relations Board would receive $294.2 million, a cut of $5 million from last year and $9 million more than the Administration’s proposal.

Congress is expected to pass the measure before funding expires January 30.

What It Means

Although OFCCP’s responsibilities have been significantly reduced following the rescission of Executive Order 11246 last year, Congress is not willing to endorse eliminating the agency entirely. The White House is expected to release its FY 2027 budget proposal in the coming weeks which may revisit the proposed reorganization.

What You Should Do

CWC members can consult this resource for updates on FY 2026 government funding legislation.

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