Markup of FY27 Interior, Environment, and Related Agencies Bill and the FY27 Transportation, Housing and Urban Development, and Related Agencies Bill

House Appropriations Committee
   Interior, Environment, and Related Agencies Subcommittee
   Transportation, and Housing and Urban Development, and Related Agencies Subcommittee
H-140 Capitol

05/21/2026 at 08:00AM

Subcommittee markup

Department of the Interior FY2027 Proposed Budget

EPA FY2027 Proposed Budget

Transportation FY2027 Proposed Budget

The budget calls for $15.9 billion for the Department of the Interior, a $2.3 billion decrease from the fiscal 2026 enacted level.

The budget agains calls for the unification of the Interior and Agriculture departments’ wildland firefighting activities under a single agency within the Interior Department.

The budget also calls for consolidating the Endangered Species Act and Marine Mammal Protection Act permitting within one agency in the Interior Department.

The fiscal year 2027 budget in detail:

  • Renewable Energy: cuts $45 million from the Bureau of Land Management and Bureau of Ocean Energy Management and eliminates renewable energy funding which includes onshore and offshore wind energy.
  • Bureau of Land Management: cuts $480 million and slashes funding for Wildlife and Aquatic Habitat Management by $139 million, which includes funding for sage grouse and threatened and endangered species.
  • US Fish and Wildlife (FWS): cuts $526 million, decreasing the National Wildlife Refuge System by 20 percent, eliminates grant programs managed by States, Tribes, and other nations, and moves NOAA’s National Marine Fisheries Service into FWS ($125 million transfer).
  • National Park Service: cuts $1.06 billion
  • U.S. Geological Survey (USGS): cuts $526 million, a 37 percent reduction that eliminates ecosystems, and dramatically cuts funding for core science and natural hazards.
  • Bureau of Indian Affairs: cuts $378 million, including the elimination of the Indian Guaranteed Loan program and the Indian Land Consolidation program, and a 34 percent reduction in funds that support self-governance and directly fund tribal operations.
  • Bureau of Indian Education: cuts $436 million, a 32 percent reduction; some eliminations include funding for Tribal Colleges and Universities, Replacement School Construction, and Early Child and Family Development.
  • Wildland Fire: Transfers all U.S. Forest Service Wildland Fire Management functions to DOI.

Details of National Park Service: cuts $1.06 billion

  • Operation of the National Park System: cuts $760 million or 26 percent. The skinny budget suggests they may change the funding formula to defund or drastically cut support for smaller or less visited park units.
  • National Recreation and Preservation: cuts $86 million or 93 percent
  • Historic Preservation Fund: cuts $170 million, or a 94 percent cut, and eliminates everything except funding for Historically Black Colleges and Universities (HBCUs).
  • Construction: cuts $40 million, or a 45 percent cut.

The budget also calls for a $10 billion mandatory fund to establish the Presidential Capital Stewardship Program within the National Park Service. The fund’s purpose would be “to coordinate, plan, and execute targeted, priority construction and beautification [sic] projects in and around Washington, D.C.”

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.

The FY 2027 President’s Budget requests $114.1 billion in budgetary resources for the Department of Transportation (DOT), including $26.8 billion in discretionary budget authority and $87.3 billion in mandatory budget authority.

From the American Public Transportation Association:

The budget requests $16.3 billion (-23 percent) for public transit and $2.8 billion (-82 percent) for passenger rail in FY 2027.

The budget does not request to continue any advance appropriations under the Infrastructure Investment and Jobs Act (IIJA), which results in substantial cuts to key public transit and passenger rail investments, including:

  • Capital Investment Grants (-$1.6 billion)
  • Low or No Emission Competitive Grants (-$1.05 billion)
  • State of Good Repair grants (-$950 million)
  • All Station Accessibility Program (-$350 million)
  • Ferry Competitive Grants (-$250 million)
  • Federal-State Partnership for Intercity Passenger Rail Grants (-$7.2 billion)
  • Railroad Crossing Elimination Grants (-$500 million)