House Appropriations Committee Advances 2027 Funding Cuts to EBSA
The House Appropriations Committee on June 9 moved forward with an annual spending bill that would cut funding from the Department of Labor (DOL) and the Employee Benefits Security Administration (EBSA).
In a 34-28 vote, the Committee said it had “taken a close look at every program funded in [the Fiscal Year 2027 Labor, Health and Human Services, Education, and Related Agencies bill]” to “end senseless progressive overreach” in the DOL, the Department of Health and Human Services (HHS), and the Department of Education (DOE).
“This bill advances educational opportunities, restores accountability, and ensures taxpayer dollars are directed towards core functions like biomedical research, biodefense infrastructure, and rural health,” said Subcommittee Chairman Robert Aderholt (R-AL), in a statement.
The bill would slash EBSA’s spending budget by $10 million, down from $191.1 million to $181.1 million. It would also cut funding for the Pension Benefit Guaranty Corporation (PBGC), from $10 million to $484,264,000.
For fiscal year 2027, the Committee recommended a total of $189,279,000,000 in discretionary funding and $208,165,381,000 in programmatic funding, for a decrease of close to $16 million from fiscal year 2026.
The Committee also touched on claims of common interest agreements within EBSA. Last year, industry experts from Groom Law Group, the ERISA Industry Committee (ERIC), and the Employee Stock Ownership Association testified before the U.S. House of Representatives Education and Workforce Subcommittee on issues of transparency and oversight within the agency.
Multiple pieces of legislation, including the “Balance the Scales Act” would increase congressional oversight while reducing common interest agreements.
“The Committee understands that the DOL Office of Inspector General’s fiscal year 2026 workplan includes an investigation into allegations of EBSA sharing confidential information regarding employee benefit plans and their fiduciaries and will follow this ongoing work. The Committee also notes congressional oversight activities related to this matter,” the Committee stated in its report.
While the Committee would retain the Social Security Administration’s (SSA) funding at $15 billion, it did provide recommendations for the agency to implement as it faces claims of long wait times and general customer service delays.
“The Committee directs SSA to take steps to avoid field office closures, reduced office hours, and increased delays to appointments for beneficiaries seeking in-person support,” stated the report.
“The Committee also directs SSA to provide a monthly report of performance metrics that measure SSA’s progress on addressing key service delivery functions, including staff levels and appointment waiting times by field office, as well as the average time that 1– 800 number callers wait to receive a callback. Additionally, the Committee urges SSA to seek public and stakeholder input in advance of policy and operations changes when appropriate,” the Committee added.
The recommendations come as Social Security Administration Commissioner Frank Bisignano touted shorter wait times on the agency’s customer service phone line last week in written testimony to the House and Ways Means Committee.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.