The U.S. House of Representatives advanced a government funding package—the Consolidated Appropriations Act of 2026—totaling roughly $1.2 trillion, which will fund federal agencies, including the Department of Health and Human Services and the Department of Labor, through the end of fiscal year 2026. The bipartisan vote was 341-88.
Three things CHROs should know:
PBM reform included, ACA subsidy extension excluded: The bill delinks pharmacy benefit manager (PBMs) compensation from prescription drug list prices, limiting payment to bona fide service fees tied solely to drug benefit management services in Part D and Medicare Advantage-prescription drug (MA-PD) plans.
- It also requires PBMs to fully pass through all rebates, discounts, and other remuneration to Part D, MA-PD, and group health plans, and requires transparency through new annual or semi-annual reporting requirements.
- Notably absent is an extension of enhanced ACA marketplace subsidies, which expired at the end of 2025. According to Centers for Medicare & Medicaid Services, nearly 93% of the 24.3 million ACA marketplace enrollees relied on enhanced subsidies last year. The Urban Institute estimates that 4.8 million people could lose coverage without an extension.
Bottom line: Long-awaited CHRO Association-supported PBM reform could finally be achieved, while the exclusion of ACA subsidies will (again) become a political flashpoint that could complicate government funding later this year.
NLRB funding reduced: The measure cuts funding for the National Labor Relations Board by $5 million—the first reduction in more than a decade.
Bottom line: The cut is expected to constrain the agency’s capacity to pursue aggressive enforcement, litigate complex cases, and issue new guidance amid existing backlogs and staffing pressures.
DOL gets a raise: The bill allocates $13.7 billion in discretionary funding for the Department of Labor, representing a $65 million increase over FY2025 and roughly $4 billion above the Administration’s budget request.
- Funding for the Employee Benefits Security Administration is held flat at $191 million, sustaining the agency’s oversight of private-sector, employment-based group health plans, including enforcement of mental health and substance use disorder parity requirements.
- The bill also maintains $260 million for the Wage and Hour Division, supporting the agency’s enforcement of minimum wage and overtime requirements, independent contractor classification, recordkeeping and pay practices.
Bottom line: The funding increase strengthens the Department’s ability to enforce existing laws, conduct investigations, and pursue compliance—particularly in areas already prioritized by the Administration.
What’s next: The Senate is slated to take up the measure next week, with the January 30 government funding deadline fast approaching. With the House out next week, the margin for error is narrow as lawmakers seek to avoid another government shutdown.
