The House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies has released its “Fiscal Year 2027 Community Project Funding Guidance.” 

The submission deadline for a Member of Congress to request funding on your behalf is March 20, 2026, at 6:00 P.M. EST. 

More Limited Use of Funds

Available CPF funding is more limited than in prior years and may now be used only for:

The cost of limited-scope construction, renovation, or capital equipment purchases for facilities providing health, mental health, or substance use disorder services, health professional training, or medical research.

In addition to construction and renovation, CPF funding may also support capital equipment, such as:

• Laboratory equipment
  
• X-ray machines
  
• Telehealth technology
  
• Health information technology systems

Eligible Entities

Eligibility is restricted to: 

• State, local, and Tribal governments 
• Non-profit entities that are: 
  • Certified rural health clinics
  • Federally Qualified Health Centers (FQHCs)
  • Designated Critical Access Hospitals
  • Rural hospitals

New and Concerning Eligibility Restrictions

The Guidance introduces a new category of ineligible entities that is very broad and quite vague. Entities may be excluded if they: 

• “perform or promote abortions, including providing referrals, counseling, lobbying, and training related to abortions; furnish or develop any item intended to procure abortions; or provide financial support for such entities. The exceptions described in section 507(a) of division B of the Consolidated Appropriations Act, 2026 (P.L. 119–75) shall apply.”
• “conduct research using embryonic stem cells (if such tissue is obtained pursuant to an induced abortion) or human germline gene modification.”
• “facilitate, promote access to, or refer for psychological, behavioral, or medical interventions performed for the purposes of intentionally changing the body of an individual (including by disrupting the body’s development, inhibiting its natural functions, or modifying its appearance) to no longer correspond to the individual’s biological sex.”

Why This Matters

These provisions raise significant concerns as: 

1. They go beyond traditional appropriations riders, which typically limit how federal funds may be used but do not regulate an organization’s non-federally funded activities.
2. These restrictions apply to activities of the entity itself, whether or not the activities are federally funded. 
3. The language is vague, particularly regarding referrals for elective abortion services or gender affirming care (regardless of age).

Practical Implications

For many FQHCs and similarly situated organizations, these new provisions may create substantial risk in pursuing CPF funding this year.

Some organizations may determine it is prudent to delay pursuing an earmark and monitor whether the Guidance changes under a new Congress in January.

For those who choose to proceed, we recommend exercising caution in any statements or representations regarding organizational activities.

For questions about the new Community Project Funding Guidance, or to discuss submitting a request to your Member of Congress to request funding prior to March 20, 2026, please contact Feldesman Partner Adam J. Falcone or Managing Partner Edward T. Waters.