The Fiscal Year 2027 Environmental Protection Agency Budget

House Energy and Commerce Committee
   Environment Subcommittee
2123 Rayburn

04/28/2026 at 10:00AM

Subcommittee hearing.

Hearing memo

Witness:

For the U.S. Environmental Protection Agency (EPA or Agency), the President seeks $4.2 billion in base discretionary budget authority for FY 2027—a reduction of $4.6 billion (a 52.4 percent reduction) from the FY 2026 enacted level of $8.8 billion. EPA’s budget request would support a workforce of 12,500 full-time equivalent (FTE) workers.

EPA requests $1.7 million in new funding to administer the Good Samaritan Remediation of Abandoned Hardrock Mines Act of 2024. This program will issue “Good Samaritan” permits and investigative sampling permits to remediators of legacy hardrock mines, who will be exempt from liability under the Comprehensive Environmental Response, Compensation, and Liability Act and the Clean Water Act.

EPA seeks the reconsideration of greenhouse gas (GHG) regulations and National Emission Standards for Hazardous Air Pollutants (NESHAP). In FY 2027, EPA intends to address New Source Performance Standards (NSPS) actions under the Clean Air Act for sources of air pollutants in multiple categories including those in the power plant, oil, and natural gas sectors.

EPA plans to identify Brownfields and Superfund sites for qualifying AI projects and develop guidance for more efficient environmental reviews for certain reuse.

EPA seeks to reduce regulations on the auto industry and encourage domestic manufacturing. In FY 2027, EPA will reconsider and reevaluate three major on-road vehicle regulations.

The FY 2027 budget request proposes reductions in the following program areas:

Clean and Drinking Water State Revolving Loan Funds. EPA proposes a reduction of $2.5 billion. The reduction would return primary responsibility for funding local water infrastructure projects to states. The budget would provide $305 million to allow states to adjust to alternative funding sources.

Categorical Grants. EPA proposes a reduction of $1.1 billion. The proposed budget includes an approximately 91 percent decrease from FY 2026 enacted levels. This includes elimination of most categorical grants while maintaining funding for the Tribes and Underground Injection Control grants.

Office of Research and Development. EPA proposes a reduction of $235 million. The proposed budget would provide $281 million for statutorily required research in support of EPA’s core mission areas.

Federal Support for Air Quality Management. EPA proposes a reduction of $112.7 million. This program supports the development of state implementation plans and administers air grants. Civil Enforcement. EPA proposes a reduction of $94.1 million. The proposed budget would provide $137 million for the Civil Enforcement Program which ensures compliance with environmental laws and regulations.

Criminal Enforcement. EPA proposes a reduction of $54.6 million. The proposed budget would provide $33.9 million for the Criminal Enforcement Program which enforces environmental laws investigating criminal conduct.

Research: Air and Energy. EPA proposes a reduction of $63.2 million. The proposed budget would include $32.0 million for this research program that provides assessments of air quality impacts.

Targeted Airshed Grants. EPA proposes a reduction of $31.6 million. The proposed budget would provide $36.2 million for the Targeted Airshed program.

Water Infrastructure Finance and Innovation Fund (WIFIA). EPA proposes a reduction of $64 million. The WIFIA program provides low-cost loans for large water and wastewater projects.