FY2026 Foreign Operations Bill Sets $3.3 Billion Israel Aid, Rescinds $3.6 Billion in Unspent Funds

This massive spending bill, the National Security, Department of State, and Related Programs Appropriations Act for 2026, is essentially the federal government’s annual credit card statement for diplomacy, foreign aid, and global security. It sets the budget for the State Department, the Peace Corps, and the entire foreign assistance apparatus for the next fiscal year.

The Cost of Diplomacy: What’s Getting Funded

For most of us, the immediate impact is administrative efficiency and global stability. The bill allocates nearly $9 billion for the Department of State’s operations, including $3.76 billion dedicated to Worldwide Security Protection. If you’ve been waiting forever for your passport, there’s good news: the bill specifically sets aside $517 million from existing funds to clear up the huge backlog of passport and visa applications (Title I). This is money available until spent, so hopefully, your next international trip won't involve six months of nail-biting waiting.

On the humanitarian front, the bill sets aside serious cash for global health, including $3.62 billion for global health programs (available through FY2027) and a staggering $5.9 billion for HIV/AIDS prevention and research, mostly through PEPFAR (Title III). This funding is crucial for maintaining global health security and preventing the next pandemic from reaching our shores. It also earmarks $5 billion for international disaster relief and refugee assistance, ensuring the U.S. can respond quickly when major crises hit.

The Big Policy Shifts: Who’s In and Who’s Out

This bill isn't just about dollar amounts; it’s packed with policy mandates that affect global relationships and domestic spending. The most notable mandates involve security assistance to key allies:

• Israel: Receives at least $3.3 billion in Foreign Military Financing grants, which must be delivered within 30 days of the bill becoming law (Section 7041).
• Jordan: Gets at least $1.65 billion in total assistance, including substantial budget support and military financing (Section 7041).
• Egypt: Is allocated $1.425 billion in assistance, primarily military financing, contingent on maintaining its strategic relationship with the U.S. and upholding the 1979 peace treaty with Israel (Section 7041).

These security provisions are non-negotiable and ensure that the U.S. commitment to these partners is locked in for the year.

The Fine Print: Rescissions and Restrictions

One of the most immediate financial impacts of this bill is the clawback of unspent money. The bill permanently rescinds over $3.6 billion in unspent funds from previous years across various accounts, including $775 million from Consular and Border Security Programs and $1.3 billion from Development Assistance (Section 7068). Think of this as the government cleaning out its junk drawer of old appropriations to reduce the national debt.

On the restriction side, the bill is highly prescriptive, reflecting current political priorities:

• Anti-Fentanyl Funding: At least $175 million is mandated for programs specifically aimed at stopping the flow of fentanyl and its precursors from countries like China and Mexico (Section 7036).
• Prohibited Funding: Funds are explicitly banned from going to the central governments of Russia, Iran, North Korea, and Sudan (Sections 7007, 7047, 7042). Aid to the Palestinian Authority is also banned unless the President issues a national security waiver (Section 7040).
• UNRWA and UNFPA: The bill maintains a complete funding ban for both the United Nations Relief and Works Agency (UNRWA) and the United Nations Population Fund (UNFPA) (Section 7048, 7057).

The Bureaucratic Burden: Oversight for the Busy

For anyone involved in government contracting or grant work, this bill doubles down on oversight. Section 7015, the “Notification of changes” rule, is famously restrictive. It means that agencies can’t make major changes to programs, shift more than $1 million in funding, or even cut a program by 10% without giving Congress 15 days' notice. This requirement, while ensuring accountability, can severely slow down emergency responses or necessary administrative adjustments.

Furthermore, the bill introduces sweeping restrictions on funding for programs deemed to promote certain concepts related to race, sex, and systemic bias (Section 7067). This includes banning funds for any program that teaches concepts like one race being inherently superior to another, or that the U.S. is systemically racist or sexist. This kind of language can create significant uncertainty for public diplomacy and grant recipients, forcing them to vet content rigorously to ensure they don't accidentally fall afoul of the new rules.

In short, this bill is the annual blueprint for U.S. global engagement. It ensures that the lights stay on at embassies worldwide, locks in security assistance for allies, and attempts to use the power of the purse to enforce policy mandates—from tackling the fentanyl crisis to restricting which UN bodies receive U.S. cash.