The Occupational Safety and Health Administration's (OSHA) fiscal year (FY) 2026 congressional budget justification suggested significant headcount reductions over the next two years and a corresponding reduction in inspection activity. The One Big Beautiful Bill Act did not specify funding levels, whether directly or indirectly, for OSHA or the U.S. Department of Labor. But on July 31, 2025, the Senate Committee on Appropriations reported out a bill ( S. 2587) by a vote of 26-3 that could dispel rumors of OSHA's shrinking budget and headcount: the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Bill, 2026 would maintain OSHA's funding at FY 2025 levels.
Quick Hits
- S. 2587 calls for setting OSHA's FY 2026 budget at $632,309,000, which would maintain FY 2025's funding level.
- Key priorities include enforcement, compliance assistance, state plan grants, workplace violence prevention, opioid use guidance, and continued exemptions for small farms.
- The Voluntary Protection Program (VPP) and Susan Harwood Training Grant Program would receive dedicated funding with protections against reductions.
- The proposed budget underscores congressional focus on worker safety, health training, and targeted risk mitigation.
As a result of S. 2587, OSHA would receive $632,309,000 for salaries and expenses in fiscal year 2026, consistent with the previous year's appropriation. This funding would support OSHA's core mission of enforcing the Occupational Safety and Health Act of 1970 (OSH Act) across U.S. workplaces. The appropriations bill introduces new language that would require OSHA to adhere to specific program allocations as detailed in the appropriations report.
Specifically, the appropriations bill includes provisions that the Voluntary Protection Program (VPP) would receive a minimum allocation of $3.5 million within OSHA's Federal Compliance Assistance budget. OSHA would be prohibited from reducing funding or staffing for VPP, the Safety and Health Achievement Recognition Program (SHARP), or Federal Compliance Assistance, and from collecting fees from participants in these programs.
The appropriations bill would authorize OSHA to retain up to $499,000 annually from course tuition and fees for its training institute courses, supporting occupational safety and health training in the private sector. The bill would provide $120 million for grants to states under section 23(g) of the OSH Act. These grants support state-administered occupational safety and health programs, which must be at least as effective as the federal program.
The longstanding exemption for small farming operations (employing ten or fewer people) from OSHA regulation would be continued, except for those with temporary labor camps. Language included in S. 2587 urges OSHA to address workplace violence in healthcare and social services and to issue guidance on opioid overdose reversal medication in the workplace. The agency is directed to provide briefings on these initiatives within specified timeframes.
The Susan Harwood Training Grant Program would be allocated $12,787,000. The grant program provides training to disadvantaged, underserved, low-income, or other at-risk workers, informing them of their rights and employers of their responsibilities under the OSH Act.
The proposed appropriations emphasize the importance of OSHA's enforcement activities, particularly in protecting workers' rights, ensuring prevailing wage protections, and combating exploitative child labor. The bill would direct OSHA to provide briefings and reports on initiatives related to opioid use and workplace violence prevention.
The appropriations bill includes language to prevent reductions in funding or staffing for key compliance assistance and recognition programs. It is silent as to further headcount reductions or hiring freezes.
The FY 2026 appropriations would maintain funding for OSHA, ensuring continued support for enforcement, compliance assistance, training, and state partnership programs. Congressional priorities are reflected in the focus on workplace safety, health training, and targeted initiatives addressing emerging risks such as opioid use and workplace violence, while maintaining longstanding exemptions and protections for small employers and state-administered programs. While many bemoaned the potential demise of OSHA, particularly in light of Representative Andy Biggs's (R-AZ) “Nullify the Occupational Safety and Health Administration Act”—“ NOSHA Act” (H.R. 86)—it seems unlikely this Congress will act to eliminate the agency.
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