President’s FY 2027 Budget Request (Released April 2026)
The Administration released its FY 2027 budget in April 2026, setting the starting point for congressional negotiations. The request maintained level funding across early childhood programs and continued several policy positions from FY 2026.
Key elements affecting MSHS and Head Start programs
- Head Start:
- Flat funding at $12.271B.
- No COLA, which directly affects MSHS grantees’ ability to address rising personnel costs and inflation.
- No dedicated increases for quality improvement or Early Head Start expansion.
- Head Start set‑asides:
- Tribal Colleges: Reduced to $8M.
- Marshall Islands/Micronesia: Eliminated.
- These changes don’t directly impact MSHS but reduce flexibility within the overall Head Start account.
- CCDBG:
- Level funding at $8.831B, maintaining FY 2026 levels.
- Stable CCDBG funding helps maintain child care subsidy access for families who may also be eligible for MSHS services.
- PDG Birth–5:
- Zeroed out for the second consecutive year.
- CSBG:
- Eliminated in the President’s Budget (as in prior years), though Congress typically restores funding.
What this means for MSHS:
The President’s Budget signaled no new investments in Head Start or MSHS, emphasizing maintenance of current service levels rather than expansion or cost‑of‑living adjustments.
House FY 2027 Appropriations Action (June 2026)
The House Appropriations Subcommittee on Labor–HHS marked up its FY 2027 bill on June 4, and the full Appropriations Committee approved it on June 5, 2026. The House bill diverges from the President’s Budget in several notable ways, including modest increases for key programs.
House actions affecting MSHS and Head Start
- Head Start:
- Topline increase of $10M (to $12.366B).
- After set‑asides: Increase of $91M (to $12.309B).
- No COLA, meaning MSHS grantees must continue absorbing rising costs within existing allocations.
- Tribal Colleges: Increased to $12M (+$2M).
- Marshall Islands/Micronesia: Zeroed out.
- CCDBG:
- Level‑funded at $8.831B, consistent with the President’s Budget.
- The House places CCDBG in a different section of the bill, but the topline remains unchanged.
- CSBG:
- Increased by $5M (to $815M), rejecting the Administration’s proposed elimination.
- PDG Birth–5:
- Remains unfunded.
What this means for MSHS:
The House bill provides slightly more funding for Head Start overall, which may help stabilize MSHS budgets. However, the absence of a COLA continues to pose challenges for staff recruitment, retention, and meeting rising operational costs.
At this stage, the House bill is the most reliable indicator of congressional intent.
Senate FY 2027 Appropriations Status (as of July 2026)
The Senate has not yet released its FY 2027 Labor–HHS bill. National early childhood organizations report that the Senate is still working to establish overall spending allocations (302(b) levels) before subcommittee markups can proceed.
Key Senate context
Senate Democrats along with some Republicans circulated a Dear Colleague letter (April 2026) urging strong investments in early childhood programs, including Head Start and child care.
Year‑Over‑Year Federal Funding for Head Start & Related Early Childhood Programs (FY24–FY27)
| HHS PROGRAMS | Final FY24 | Final FY25 (CR) | Final FY26 | FY27 President’s Budget | FY27 House |
| Head Start – Topline | 12,271,820,000 | 12,271,820,000 | 12,356,820,000 | 12,271,820,000 | 12,366,820,000 |
| Head Start\* | 11,942,820,000 | 11,942,820,000 | 12,217,820,000 | 12,217,820,000 | 12,308,820,000 |
| COLA | 275,000,000 | 275,000,000 | 75,000,000 | 0 | 0 |
| Quality Improvement | – | – | – | – | – |
| Designation Renewal | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 |
| EHS Expansion / Partnerships | – | – | – | – | (included in topline) |
| Tribal Colleges | 8,000,000 | 8,000,000 | 10,000,000 | 8,000,000 | 12,000,000 |
| Marshall Islands / Micronesia | – | – | 8,000,000 | 0 | 0 |
| Research, Evaluation, Admin | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 |
| PDG Birth–5 (Preschool Development Grants) | 312,000,000 | 543,000,000 | 0 | 0 | 0 |
| CSBG – Community Services Block Grant | 804,383,000 | 804,383,000 | 810,383,000 | 0 | 815,383,000 |
| CCDBG – Child Care & Development Block Grant | 8,746,387,000 | 8,746,387,000 | 8,831,387,000 | 8,831,387,000 | 8,831.387 |
Looking Ahead
We will continue monitoring the appropriations process closely and share updates as soon as the Senate releases its FY 2027 proposal. In the meantime, please take a moment to submit any follow‑up notes or outcomes from your June congressional visits using this form NAFHSA 2026 Capitol Hill Day Feedback Form. Your feedback helps strengthen our collective advocacy.