The Trump Administration’s proposed Fiscal Year 2026 budget outlines a substantial funding reduction for the Occupational Safety and Health Administration (OSHA). According to the Congressional Budget Justification, the administration is seeking to trim OSHA’s total budget by approximately 8%, decreasing the agency’s funding from $632.3 million in FY 2025 to $582.4 million in FY 2026.
Enforcement Programs Face Largest Cuts
The most notable decrease targets OSHA’s enforcement division, which would see its budget reduced by $23.7 million. This contraction is expected to impact the agency’s ability to conduct workplace inspections and pursue enforcement actions.
Additionally, the proposal includes a workforce reduction from 1,810 to 1,587 full-time equivalent positions, eliminating 223 roles. While the budget does not specify the exact mechanisms for these staffing changes, they may result from attrition, retirements, or voluntary buyouts rather than layoffs.
Implications for Employers and Workers
If enacted, the budget cuts could significantly shift how OSHA operates. With fewer resources and compliance officers available, the agency is likely to:
- Scale back scheduled or “programmed” inspections, particularly those not triggered by imminent danger or formal complaints.
- Rely more heavily on written correspondence—such as hazard alert letters or requests for documentation—instead of sending inspectors onsite in response to complaints or serious incidents.
- Slow the development and release of new safety standards and interpretive guidance, continuing a trend of delayed regulatory updates in recent years.
Employers should remain attentive to OSHA’s evolving enforcement priorities and consider proactive compliance strategies to reduce risk in a potentially less regulated environment.
If you have any questions regarding the FY 2026 Budget, please contact any member of the Forework team.