On July 31, the Senate Appropriations Committee approved its FY26 Labor, Health and Human Services, and Education bill by a bipartisan vote of 26-3. The bill includes $48.7 billion for the National Institutes of Health (NIH), which represents a $400 million increase over FY25. It also includes $7.374 billion for the National Cancer Institute (a $150 million increase) and keeps the funding level for the Advanced Research Projects Agency for Health (ARPA-H) at $1.5 billion. Furthermore, the bill included language limiting the ability of the White House Office of Management and Budget (OMB) to "forward fund" research grants in FY26. Forward funding is when money becomes available in the current fiscal year but is intended to cover obligations for activities in the following fiscal year.

The next step in the process is for the funding bill to receive a vote by the full Senate. The House Appropriations Committee has yet to approve its version of the FY26 Labor-HHS bill and both chambers must agree on a compromise before the legislation is sent to President Donald Trump's desk. Government funding will run out after September 30 and it is unlikely that Congress will reach a long-term deal before that deadline. Consequently, Congress will either extend current funding levels temporarily or cause a shutdown.