U.S. House Bill Would Slash Department of Labor’s 2027 Budget

The U.S. House of Representatives Appropriations Committee on Thursday, June 4, approved legislation that would impose significant budget cuts on the Department of Labor (DOL).

The Labor, Health and Human Services, Education, and Related Agencies Appropriations Bill provides a total discretionary allocation of $189.3 billion, which is $5.6 billion (3%) below the fiscal year 2026 enacted total. This bill prioritizes funding for biomedical research, biodefense and rural health, and puts states in charge of education oversight.

The DOL funding changes would have the biggest impact on employers and their HR functions. Specific details of note include:

• The overall department budget would drop by 26%, from $13.3 billion to $9.8 billion.
• Wage and Hour Division (WHD) funding would be cut by 9.6%, to $235 million.
• The National Labor Relations Board (NLRB) budget would drop by one-third, to $200 million.
• Occupational Safety and Health Administration (OSHA) funding would be reduced by 8.3%, to $577 million.
• The Equal Employment Opportunity Commission (EEOC) budget would be cut by 12.8%, to $380 million.
• The Office of Federal Contract Compliance Programs (OFCCP) would receive no funding and be eliminated. The committee stated elimination of the OFCCP, which enforces equal employment opportunity and antidiscrimination laws among companies that do business with the federal government, would be consistent with President Donald Trump’s Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”
• The Bureau of International Labor Affairs (BILA) also would receive no funding and be eliminated. The bureau was initially created “to promote a fair global playing field for workers in the United States and around the world — by enforcing trade commitments, strengthening labor standards, and combating international child labor, forced labor and human trafficking.”
• $290 million would fund apprentice programs to support implementation of Executive Order 14278, “Preparing Americans for High-Paying Skilled Trade Jobs of the Future.”

Full committee markup of the bill will occur on Tuesday, June 9.

The Senate Appropriations Committee has yet to introduce or mark up its legislation for the 2027 budget. Senate appropriators are waiting to draft their text until they fully evaluate the House’s proposals.

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