Overview
Federal funding is allocated by Congress to Community Health Centers (CHCs) through both the annual appropriations process and extensions of the Community Health Center Fund. Discretionary (annual) funding for CHCs expires on September 30, 2026. Mandatory (multi-year) funding for CHCs will expire on December 31, 2026.
Without timely Congressional action, CHCs may have to consider scaling back certain services, pausing necessary workforce recruitment, or delaying the launch of new projects. Availability of federal funding only on a short-term basis affects CHCs’ ability to expand their reach and serve the 100 million Americans without a usual source of primary care.
Latest from NACHC
April 2026:
NACHC sent letters to the House and Senate Appropriations Committees outlining annual funding needs and policy priorities for Fiscal Year 2027, which begins on October 1, 2026. These letters request a $300 million increase over the annual (discretionary) CHC funding enacted by Congress for Fiscal Year 2026.
A bipartisan letter calling for “robust funding” for CHCs in FY27 led by Representatives Gus Bilirakis (R-FL) and Diana DeGette (D-CO) secured support from a record 297 Members of Congress. A similar letter led by Senators Roger Wicker (R-MS) and Jack Reed (D-RI) had 57 bipartisan signatories.
March 2026:
NACHC sent a letter to Health Resources and Services Administration leader Tom Engels requesting the Administration to use the recent $300 million increase in mandatory CHC funding to support CHCs with costs of implementing new technologies, such as Artificial Intelligence tools, offering integrated behavioral health and nutrition services, addressing workforce development needs and expanding access to care in new areas.
Advocate for renewal of Community Health Center funding:
Urge Congress to pass a bipartisan solution for health centers to receive stable, long-term funding.
Background on Funding
Mandatory Funding
NACHC is focused on advocating with Congress to enact a multi-year extension and increase of the mandatory Community Health Center Fund, which provides about 70% of federal funding for CHCs and ensures stability for Section 330 grantees. This funding stream is under the purview of the Energy and Commerce (E&C) Committee in the House of Representatives and the Health, Education, Labor and Pensions (HELP) Committee in the Senate. CHCs recently received $4.6 billion in mandatory funding.
Annual Appropriations
NACHC is working with Congress to ensure discretionary CHC funding, which makes up about 30% of total federal CHC funding, is robustly supported in the annual appropriations for FY27. This funding stream is under the purview of the House and Senate Appropriations Committees. CHCs received $1.858 billion in discretionary funding in FY26.
Additional Resources
VIDEO: How Congress Determines CHC Funding (November 2024)
NACHC National Fly-In and Current Policy Papers
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