BIS and Customs Funding Appropriations: Where We Are and What's It All Mean

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Jan. 26, 2026
By: Marvin E. McPherson

While we may not see a dollar-for-dollar increase, funding appropriations for BIS may herald increased enforcement activity. This is true because an expansion in resources is on the way.

On January 23, 2026, President Trump signed into law an increase in funding for the Bureau of Industry and Security (BIS) within the Department of Commerce. For exporters, the funding increase underscores that enforcement activity related to controlled items, sensitive technologies, high-risk destinations, and diversion risks is expected to continue and may intensify. The additional funding is expected to support BIS’s licensing, enforcement, and compliance activities under the Export Administration Regulations (EAR).

In contrast, the failure to enact full-year appropriations for the Department of Homeland Security (DHS) and other agencies may result in a partial government shutdown affecting trade-related functions, including those of U.S. Customs and Border Protection (CBP). This concern has become more acute in the wake of the shooting of Alex Pretti in Minneapolis, with Democrats promising to block DHS funding.

 In the event that funding is not secured by midnight on January 30, CBP will continue to perform essential border security and cargo processing functions pursuant to statutory exceptions for national security and public safety.  Reduced staffing and administrative capacity may slow certain customs-related activities, particularly non-routine entry processing, post-entry matters, and administrative requests (see CBP contingency and shutdown guidance).

Importers should be aware that CBP’s enforcement authority remains fully intact during the funding lapse. Compliance reviews, penalty actions, audits, and other enforcement matters delayed during the shutdown may resume once normal operations are restored.

Exporters and importers should pay close attention to congressional funding levels for the BIS and CBP because appropriations directly affect the scope and intensity of trade enforcement activity. Increased funding for BIS can translate into expanded investigative capacity, more licensing and end-use reviews, and heightened scrutiny of export compliance programs. Similarly, additional resources for CBP support more robust import audits, focused examinations, and post-entry compliance reviews. As a result, shifts in agency funding levels can materially affect a company’s enforcement risk, making it critical ensure your compliance programs are sufficiently resourced and up to date.

If your company has questions regarding your import or export compliance program, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.