In the nature of a substitute.

SA 3937, proposed by Ms. Collins, is an amendment to bill H.R. 5371. Its purpose is to replace the existing text of the bill with a new structure called the "Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026." This amendment allocates funding and sets operational rules for several government sectors while extending various public programs.

Funding and Appropriations

• Agriculture and Rural Development: Provides funding for the Department of Agriculture, including billions for rural electric and telecommunications loans (with up to $2 billion for fossil-fueled plants using carbon storage), broadband pilot programs, telemedicine, and distance learning. It also funds domestic food programs like school lunches, WIC, and SNAP, as well as foreign assistance through the Food for Peace program and international child nutrition grants.
• Legislative Branch: Sets the budget for the House and Senate, including salaries and expenses. It provides targeted funding for the protection of Supreme Court Justices and the United States Marshals Service, as well as funds for the Capitol Police and Architect of the Capitol.
• Military Construction: Allocates funds for the Army, Navy, Air Force, and National Guard for facility construction and family housing.
• Veterans Affairs (VA): Provides extensive funding for medical services, community care, telehealth, homelessness programs, and toxic exposure health care.

Program Extensions

• Health and FDA: Extends funding and authority through January 30, 2026, for community health centers, diabetes programs, the No Surprises Act (adding $14 million), and various Medicare services.
• Agriculture: Extends the authorities of the United States Grain Standards Act and the Agriculture Improvement Act of 2018 generally to September 30, 2026.
• Veterans Benefits: Extends authority for hospital copayments, nursing home care for disabled veterans, suicide prevention grants, rural mental health access, and supportive services for low-income veteran families.

Operational Changes and Accountability

• Government Restrictions: Prohibits "reductions in force" (layoffs) for federal employees during specific periods, blocks the use of funds for first-class travel, and prohibits the use of funds to influence congressional action on pending legislation.
• Legislative Accountability: Limits vehicle leasing payments to $1,000 per month, prohibits cost-of-living adjustments for Members in fiscal year 2026, and requires remaining representational allowances to be used for deficit reduction. It also prohibits the purchase of certain Chinese information technology equipment.
• Agency Oversight:
  • Requires the VA Secretary to prioritize treatment for veterans with special needs, lower income, or service-connected disabilities.
  • Prohibits bonuses for contractors who are over budget or behind schedule.
  • Mandates that computer networks block pornography.
  • Requires the use of U.S.-produced iron and steel for certain rural water projects.

FDA and Drug Regulation Updates

• Fee Structures: Establishes new fee revenue for over-the-counter (OTC) monograph drugs for 2026 through 2030.
• Process Improvements: Creates a more predictable process for "Rx-to-nonprescription switches" and allows for "real world evidence" and non-animal testing for topical active ingredients.
• Transparency: Requires the FDA to publish detailed minutes of negotiation meetings with industry stakeholders.

Administrative Provisions

• Provides guidelines for the Department of Defense regarding multi-year procurements and new production.
• Manages the reimbursement of states and grantees that used their own funds during a lapse in appropriations.
• Extends the Inspector General's subpoena authority for the VA and requires GAO reports on the "Partial Claim Program" and the OTC drug supply chain.
• Directs that the budgetary effects will not be entered on Senate or Statutory PAYGO scorecards.