Don’t Panic About the “$0” Line Items
Understanding the FY 2026 President’s Budget Request—and Why Your Grant May Still Be Safe
When the White House finally released its FY 2026 President’s Budget Request (PBUD) on May 30, 2025, hundreds of grant programs appeared at “$0.” Understandably, communities, nonprofits, and local governments panicked:
Does a zeroed‑out request mean our vital funding disappears next year?
Short answer: No. The President’s request is the opening bid in a long, highly negotiable appropriations process—not the final word. Below, we unpack what the PBUD really is, why Congress routinely reverses proposed cuts, and how you can position your projects for success.¹
1. What Exactly Is the President’s Budget Request?
|
Myth |
Reality |
|
A PBUD line item is binding. |
It’s a recommendation. Congress—the branch that controls federal spending—can (and often does) ignore, reduce, or expand any figure. |
|
A “$0” request eliminates the program. |
It’s a negotiating tactic. Congress frequently restores funding—even when the President’s party controls both chambers. |
|
The PBUD arrives in February and stays that way. |
Think of it as Draft 1. Subcommittees, floor amendments, and conference committees will edit—and sometimes wholly rewrite—those numbers throughout the year. |
Legal backdrop: Under 31 U.S.C. § 1105, the President must submit a consolidated budget, but the document has no force of law until Congress passes—and the President signs—12 separate appropriations bills.
2. Why Should You Care?
- Signals of policy priorities. For example, consolidating 18 K‑12 grants into one $2 billion program telegraphs what the Administration hopes to negotiate.
- Early warning for advocacy. A “$0” request tells you to marshal data and allies before mark‑ups begin.
- Guide to strategic messaging. Knowing which programs face cuts helps you tailor testimony and coalition letters.
3. Key FY 2026 Grant Headlines
Below are five eye‑catching proposals—and why they’re far from final:
|
Program |
PBUD Level |
Why a Reversal Is Likely |
|
Community Development Block Grant (HUD) |
$0 |
CDBG has been restored every time it was targeted; FY 2025 enacted ≈ $3.3 B. |
|
Economic Development Administration (DOC) |
$0 |
Bipartisan champions in industrial and coal‑country districts routinely defend EDA. |
|
COPS Hiring Program (DOJ) |
$0 |
Mayors and police chiefs lobby hard; Congress almost always restores funding. |
|
Clean Water & Drinking Water SRFs (EPA) |
$155 M / $150 M (‑75 %+) |
State delegations push totals back toward ≈ $1.5 B combined. |
|
Make America Skilled Again Block Grant (DOL) |
$2.97 B (but eliminates WIOA programs) |
Workforce boards and states will fight the consolidation; expect major revisions. |
(Need the full agency‑by‑agency list? Contact us for our detailed PBUD Grant Tracker. [email protected])
4. What a “$0” Really Means—and How to Respond
- Red flag, not a death sentence. Treat it as a cue to educate lawmakers on local impact.
- Subcommittees are the battleground. By floor time, most big decisions are baked in.
- Data beats rhetoric. Show cost‑benefit numbers, jobs created/retained, or match funding at risk.
- Coalitions win. Partner with neighboring jurisdictions or peer nonprofits to present a united front.
5. The FY 2026 Timeline at a Glance — Adjusted for the Late PBUD
|
Phase |
When |
What It Means for You |
|
Pre‑PBUD Hearings & “Chairman’s Marks” |
Early May 2025 |
House and Senate subcommittees began drafting bills using prior‑year levels, before seeing the President’s numbers. Early advocacy here influences the baseline text. |
|
President’s Budget Transmitted |
May 30 2025 |
The PBUD lands nearly four months late. It now serves mainly as a negotiating reference point. |
|
Intensive Mark‑Ups |
June – August 2025 |
Subcommittees and full committees reconcile their drafts with—or against—the PBUD. Prime window for submitting testimony, one‑pagers, and coalition letters. |
|
Floor Votes & Conference |
September 2025 |
House and Senate debate, amend, and pass their bills, then go to conference. Watch for last‑minute funding swaps or policy riders. |
|
Fiscal Year Begins / Likely CR |
October 1 2025 |
FY 2026 starts. If final bills aren’t ready, Congress passes a short‑term Continuing Resolution (CR) keeping FY 2025 levels in place. |
|
Omnibus / Minibus Finalization |
Late 2025 – Early 2026 |
A consolidated spending package—or several minibuses—is signed into law. Agencies then issue NOFOs and guidance tied to final appropriations. |
Bottom line: The late PBUD compresses the timetable but doesn’t change the playbook—timely, data‑driven advocacy during June–August mark‑ups remains critical.
6. Action Steps You Can Take Now
- Identify your exposure. Which priority grants are listed at $0 or significantly cut?
- Schedule briefings. Meet district and Washington staff before mark‑ups intensify.
- Prepare impact sheets. Two pages max: program overview, dollars at stake, local results.
- Join or build coalitions. Amplify your voice with regional or issue‑based partners.
- Plan contingencies. Model budgets assuming full, partial, and delayed federal funding.
7. How CNG Can Help
The Color Nine Group has guided cities, counties, and nonprofits through every budget cycle since 2014. Our team can:
- Map your grant‑risk profile across all 12 appropriations bills
- Craft persuasive testimony and briefing materials for Members and staff
- Coordinate fly‑ins or virtual meetings during critical mark‑up windows
- Monitor amendments in real time so you’re never blindsided
Ready to defend—or even grow—your FY 2026 funding?
Email us at [email protected] or call (202) 545‑0139 for a complimentary strategy session.
Bottom Line
A zero in the President’s Budget Request is not the end of the story. With smart, timely advocacy (and the right partners) your program can emerge from Congress not only intact, but sometimes stronger than before. Let’s make sure it does.
Posted by The Color Nine Group’s Federal Funding Team • June 2025
¹ Source: Grant Funding in PBUD 2026 (internal analysis of the FY 2026 President’s Budget Request).