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FY2026 Interior, EPA, and Related Agencies appropriations: funding, fees, and policy riders

Appropriates billions for public lands, wildfire response, water infrastructure, tribal health, and adds program-level policy directions and new inspection fees.

The Brief

This bill provides annual appropriations for the Department of the Interior, the Environmental Protection Agency, the Forest Service, Indian programs, and related agencies for fiscal year 2026. It funds core land-management operations, National Park Service and Fish & Wildlife programs, geological and scientific research, water infrastructure, the Indian Health Service, and a large increase in wildland fire resources.

Many accounts are multi-year or ‘‘available until expended’’ for construction and certain program lines.

Beyond money, the bill contains operational and policy provisions that matter to managers and regulated entities: it authorizes new nonrefundable offshore inspection fees, instructs or constrains agency rulemaking in several areas (for example on sage‑grouse and lead ammunition), directs program design changes (a USFWS mass‑marking requirement for hatchery salmonids), and requires a formal reinstatement of the name ‘‘Denali.’' Those programmatic riders interact with the appropriations to shift priorities toward near‑term wildfire suppression, water infrastructure financing, tribal health, and energy operations oversight — with attendant implementation and legal challenges for agencies and stakeholders.

At a Glance

What It Does

Appropriates FY2026 funds across DOI bureaus, EPA, Forest Service, and related agencies and creates specific spending authorizations, transfers, and program requirements, including new fee authorities and multi-year availability for many line items.

Who It Affects

State and local governments (drinking and clean water projects), federally recognized tribes (IHS, BIA/BIE contracts and infrastructure funding), public‑land managers and wildland firefighting organizations, oil and gas operators on the Outer Continental Shelf, and conservation and recreation stakeholders.

Why It Matters

The bill reshapes near‑term federal priorities by boosting wildfire suppression funding and contingency reserves, prioritizing water infrastructure subsidies, preserving much operational funding for public lands, and inserting policy riders that limit or direct agency rulemaking — changing where money and regulatory attention will be focused in 2026.

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What This Bill Actually Does

This is a classic annual appropriations measure: it lays out line‑by‑line funding for Interior bureaus (BLM, NPS, USFWS, USGS, BIA and others), EPA program accounts, the Forest Service, the Indian Health Service, and several smaller cultural and science agencies. Many accounts — especially construction, stewardship grants, and some programmatic priorities — are provided with multi‑year availability, while operations funding is provided for the fiscal year.

The bill also includes ‘‘Committee Recommendation’’ tables and lists of Congressionally Directed Spending items; those attachments allocate project‑level funding that implementing agencies must account for.

On wildfire the bill does two things in parallel: it funds ordinary wildland fire preparedness, fuels work, and suppression through regular accounts and it establishes sizeable suppression reserve funds that can be transferred into Interior’s or Agriculture’s wildfire accounts when needed. That structure changes how agencies will manage season‑to‑season cash flow: agencies can draw on appropriated suppression reserves in really bad years but must follow transfer and notification rules to Congress.For water infrastructure, the bill directs large capitalization grants for the Clean Water and Drinking Water State Revolving Funds and instructs States how to use portions of those funds — including minimum required non‑Federal matches, and mandated set‑asides or additional subsides for eligible recipients.

In practice this means States will need to build project lists and intended‑use plans that reflect the bill’s constraints and Congressionally directed items.At the program level the bill contains a string of targeted directives and prohibitions: it requires the Fish and Wildlife Service to implement a mass‑marking program for hatchery salmonids; it prohibits certain rulemaking (for greater sage‑grouse and for regulation of lead ammunition by EPA); it blocks Agency action on GHG reporting from manure management; it requires renaming and related costs for Denali; it authorizes multi‑year contracts for long‑term care of excess wild horses and burros; and it creates new nonrefundable inspection fees the Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement may collect from offshore facilities. Each of those program rules sits alongside the funding lines and becomes an implementation priority for the relevant agency.

The Five Things You Need to Know

1

BLM’s Management of Lands and Resources is funded at $1,256,992,000 with multiple multi‑year items and explicit matches and Congressionally Directed Spending line items.

2

The bill creates a new nonrefundable Outer Continental Shelf inspection fee structure: facility fees of $10,500 / $17,000 / $31,500 depending on well counts, drilling rig fees of $30,500 (≥500 ft depth) or $16,700 (<500 ft), and non‑rig unit fees from $4,470 to $13,260 depending on water depth, billed quarterly or per inspection.

3

Wildland fire receives two large appropriations plus contingency reserves: DOI wildland fire accounts (regular appropriations and a $370,000,000 reserve) and USDA Forest Service wildland fire appropriation ($2,426,111,000) plus a $2,480,000,000 wildfire suppression operations reserve fund that can be transferred to DOI or USDA in severe years.

4

EPA capitalization grants for water infrastructure total billions: $1,638,861,000 for Clean Water SRFs and $1,126,101,000 for Drinking Water SRFs, with provisions requiring State matches and directing that a specified share be used as additional subsidy (up to 10% for CWSRF and 14% for DWSRF at the State level) and for green infrastructure/efficiency projects.

5

Section 129 requires the Secretary of the Interior to reinstate the name ‘‘Denali’’ (with related mapping updates and a $1,000,000 allocation in Departmental Operations upon completion) and bars federal officials from using any other Federal designation for that mountain.

Section-by-Section Breakdown

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Title I: Bureau of Land Management—Management of Lands and Resources

BLM operations, targeted matches, and spending directions

The bill provides the BLM’s base management appropriation and carves out multi‑year authorities for items such as wild horse and burro management, annual and deferred maintenance, and construction. It authorizes specific matches (e.g., up to $3 million for wildlife habitat with at least a dollar‑for‑dollar match by the National Fish and Wildlife Foundation) and ties certain line items to the Congressionally Directed Spending tables in the report. Practically, this requires BLM to manage fee accounts, process mineral administration receipts against the appropriation, and implement multiple project‑specific directives in the accompanying report.

Section 107 (Outer Continental Shelf Inspection Fees)

New nonrefundable OCS inspection fees and billing rules

The bill authorizes BOEM and BSEE to collect new nonrefundable inspection fees for offshore facilities and drilling rigs and to deposit them in the BSEE ‘‘Offshore Safety and Environmental Enforcement’’ account. It sets per‑facility or per‑inspection dollar amounts by facility type and water depth and prescribes billing and payment timelines (quarterly billing for installations in place at fiscal year start; monthly or post‑inspection billing for rigs and non‑rig inspections). This is an explicit user‑fee mechanism aimed at cost recovery for inspections and gives the bureaus a stable offsetting‑receipts stream to expand inspection capacity.

Wildland Fire Management / Reserve Funds

Expanded suppression funding and transfer mechanics

The bill funds traditional preparedness, fuels, and suppression activities and also establishes large suppression reserve funds designated for transfer to DOI and USDA wildfire accounts in high‑cost years. Transfer authority is subject to notification rules to Appropriations committees and specific criteria about fund exhaustion and obligation timelines. The reserve funds increase the Government’s ability to handle catastrophic seasons but create new cross‑agency transfer practices and Congressional notification requirements that agencies must operationalize in their budget execution.

5 more sections
United States Fish & Wildlife Service—Resource Management

Listing and stewardship funding with operational constraints

USFWS receives multi‑year resource management and construction funding. The bill directs that appropriations earmarked for Listing be limited to certain subsections of the Endangered Species Act (explicitly excepting petition processing, rule drafting, and some subsection (c) actions). It also allows transfers of stewardship project funds to other Service appropriations but preserves project‑level reporting and availability rules. This narrows what Listing funds can be used for and shapes how the Service sequences statutory actions under constrained funding lines.

Indian Health Service and Tribal Programs

Multi‑year IHS funding with constraints on Electronic Health Record implementation

The bill allocates several multi‑year appropriations to the Indian Health Service, including funds for Purchased/Referred Care, the Indian Healthcare Improvement Fund, loan repayment, and sanitation and facilities construction. It includes a restriction that Electronic Health Record implementation funds becoming available on October 1, 2026 may not be obligated until the Committees are consulted 90 days in advance — imposing an explicit oversight step before EHR modernization can proceed. The structure emphasizes near‑term care funding while imposing procedural guardrails on major IT transitions.

Environmental Protection Agency—State and Tribal Assistance Grants

SRF capitalization, subsidy rules, and project set‑asides

EPA receives large capitalization grants for Clean Water and Drinking Water State Revolving Funds and sets programmatic requirements: minimum non‑Federal matches, set‑asides for tribal and insular areas, and direction that a fraction of each State’s capitalization must be used for additional subsidy (for example, a baseline 10 percent requirement for CWSRF and 14 percent for DWSRF is described). The bill also earmarks funds for Alaska Village sanitation, border projects, and a list of Congressionally Directed Spending projects that States and EPA must incorporate into State Intended Use Plans.

National Park Service / Denali

Park funding, Centennial Challenge, and Denali renaming

NPS operations and construction accounts receive multi‑year funding for maintenance, cyclic maintenance, and construction projects, and the Centennial Challenge program continues with an expectation of non‑Federal cost share. Separately, section 129 requires the Secretary to reinstate the name ‘‘Denali,’’ update public materials and the USGS GNIS within specified days, and provides $1,000,000 for Departmental Operations on completion — a directed, near‑term administrative task that agencies must prioritize alongside larger park maintenance programs.

Policy Riders — Regulatory Constraints and Programmatic Directives

Targeted prohibitions and program mandates

The bill includes multiple substantive policy riders: a prohibition on issuing a greater sage‑grouse proposed rule, restrictions on EPA regulation of lead ammunition and on manure‑management GHG reporting, a USFWS requirement to implement mass‑marking of hatchery salmonids, authorization for up to 10‑year private contracts for long‑term care of excess wild horses and burros, and other targeted measures. These provisions alter agency rulemaking and program priorities without changing underlying statutes.

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Who Benefits and Who Bears the Cost

Every bill creates winners and losers. Here's who stands to gain and who bears the cost.

Who Benefits

  • State and local governments (water infrastructure) — large SRF capitalization grants, designated subsidy requirements, and Congressionally directed projects provide critical funding for drinking and wastewater projects and can reduce capital costs for municipalities.
  • Federally recognized tribes and tribal health providers — increased Indian Health Service funding lines, sanitation and facilities appropriations, and set‑asides for tribal SRF assistance expand resources for tribal healthcare and infrastructure.
  • Wildland fire managers and firefighters — expanded fuels and suppression appropriations plus massive suppression reserve funds give agencies near‑term cash to hire staff, preposition resources, and avoid emergency reprogramming in major fire seasons.
  • Offshore safety and environmental enforcement bureaus — fee revenue authority creates a dedicated funding stream for inspections and personnel tied to Outer Continental Shelf oversight, enabling capacity expansion without relying solely on annual appropriations.
  • Cultural and conservation projects — National Park maintenance, Historic Preservation competitive grants, and Land and Water Conservation Fund allocations (and Congressionally Directed Spending lists) channel funds to specific preservation, habitat, and recreational projects.

Who Bears the Cost

  • Industry operating offshore facilities (oil & gas) — the new OCS inspection fees impose recurring, nonrefundable costs on operators and will affect project economics and budgeting for inspection compliance.
  • States and borrowers (SRF match) — capitalization grants require non‑Federal matches and programmatic set‑asides, which shift borrowing strategies and require states to supply matching funds or provide higher levels of subsidy administration.
  • Federal agencies (implementation and oversight) — agencies must operationalize new transfer authorities, reporting and notification procedures, and program constraints (for example, IHS IT oversight requirements), increasing administrative workloads.
  • Tribal and local health providers (contract support gap risk) — limits that make available amounts the only FY2026 contract support cost funding can leave unresolved shortfalls for contractors if cost estimates are higher than appropriated amounts.
  • Conservation regulatory goals — policy riders that prohibit certain rulemakings and limit agency regulatory options shift the burden to nonregulatory tools (funding, voluntary programs) or to litigation to resolve statutory obligations.

Key Issues

The Core Tension

The central dilemma in this bill is balancing emergency‑scale, short‑term needs (fire suppression, water system emergencies, backlog repairs) against long‑term ecosystem management and regulatory duties: funding and riders favor immediate response capacity and programmatic direction, but doing so constrains specialized regulatory tools and risks underfunding the administrative capacity needed to implement both the money and the mandates.

The bill blends large, flexible appropriations with tightly prescriptive riders — that mixture creates implementation frictions. Large suppression reserves smooth year‑to‑year firefighting funding but require carefully timed transfers and congressional notifications that could delay emergency responses if procedures are unclear or contested.

Agencies will need to build internal financial controls and interagency memorandums of understanding to move money quickly without breaching notification thresholds. Similarly, repurposing unobligated IIJA balances into wildfire accounts (explicit in the bill) preserves executive flexibility but reassigns funds originally intended for infrastructure projects; states and local recipients of those IIJA balances could see delays or reshuffling of planned projects.

Policy riders present a second set of tradeoffs. Prohibitions (for example on certain sage‑grouse rulemakings, EPA lead‑ammunition regulation, and manure GHG reporting) limit agency regulatory pathways and shift the policy response to statutory conservation responsibilities into appropriations, outreach, or litigation.

Where the bill requires program changes (mass marking of hatchery fish, Denali name reinstatement, or multi‑year wild horse contracts) agencies must redirect staff and funds to execute discrete mandates alongside continuing program responsibilities. Those directed changes are often time‑sensitive and operationally specific, yet appropriations do not always include matching administrative increases, creating execution risk.

Finally, the bill tightens budgetary ceilings for some recurring costs — for example contract support costs for self‑determination agreements — while increasing several large line items. That increases the probability of shortfalls on negotiated contracts or deferred maintenance elsewhere.

Tribes and tribal organizations reliant on contract support face timing and coverage risk if actual costs exceed the amounts Congress specifies as ‘‘the only amounts available’’ for FY2026.

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