On October 6, 2026, the Government Accountability Office (GAO) affirmed that the Department of Health and Human Services (HHS) violated federal lawopens in new window by withholding more than $78 million appropriated to the Agency for Healthcare Research and Quality (AHRQ) for fiscal year 2025.
GAO found that HHS did not obligate or spend the funds before the fiscal year ended. The watchdog determined that the withholding constituted an impoundment—not a permissible programmatic delay—because the department did not send Congress the special message required to propose rescinding the money. At the center of GAO’s decision is the Impoundment Control Act (ICA), which limits the executive branch’s authority to delay or cancel congressionally approved spending. The law requires the administration to notify Congress and follow prescribed procedures when seeking to defer or rescind appropriated funds. GAO’s ruling reiterates that agencies cannot allow appropriations to lapse by withholding them outside that process.
Although the ruling concerns fiscal year 2025 funding, it also raises immediate questions about subsequent actions affecting AHRQ’s budget. On October 4, the Office of Management and Budget rescinded nearly $1 billion in congressionally appropriated funds, including $28 million from AHRQ (PDF, 368KB)opens in new window. The action has been described as a pocket rescission because it did not provide Congress with the full 45-day review period contemplated under the ICA. This prompted bipartisan objection and intensified scrutiny of whether AHRQ’s current-year appropriation is being obligated as Congress directed.
The decision has immediate implications for the health services research community. AHRQ supports evidence on patient safety, health care quality, access, delivery, and costs. Funding interruptions or uncertainty can delay grants, weaken research capacity, and slow the development and adoption of findings that improve care and reduce avoidable spending.
Given these consequences for research and patient care, APA Services will continue advocating to safeguard AHRQ funding and ensure that researchers can access the resources Congress provided to strengthen the nation’s health care system.
For more information, email Angela L. Sharpe.