Proposed FY27 Budget Would Move VEVRAA And Section 503 Enforcement To New DOL Civil Rights Office

April 9, 2026

What's New

The president’s proposed FY 2027 budget, submitted to Congress on April 3, 2026, would establish a new Office of Civil Rights within the Department of Labor and transfer enforcement of Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act to that office. The proposal again calls for eliminating the Office of Federal Contract Compliance Programs, following a similar proposal last year.

The budget would also move administration of most whistleblower protection statutes currently enforced by OSHA to the new Office of Civil Rights and consolidate responsibility for equal employment opportunity protections for DOL employees and applicants and for individuals served by certain workforce training programs. The budget requests $35.4 million and authorization for 110 full-time equivalent employees.

What It Means

The FY 2027 budget proposal is the starting point for congressional appropriations negotiations. Congress rejected a similar proposal to eliminate OFCCP last year. While consolidating these functions within DOL may address some prior concerns, the outcome remains uncertain.

If enacted, the proposal would represent a significant restructuring of how VEVRAA, Section 503, and several whistleblower laws are administered, potentially affecting how federal contractors and employers interact with DOL on compliance and enforcement matters.

What You Should Do

CWC members should monitor the progress of the FY 2027 appropriations process and related legislative developments. This CWC funding resource will be updated as Congress considers the proposal and advances appropriations bills.

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