The Current State of OSHA

As of late 2025, the Occupational Safety and Health Administration (OSHA) is operating under complex and evolving circumstances shaped by the ongoing federal government shutdown, pending budget decisions, and recent leadership changes. Despite these challenges, OSHA continues to perform its essential mission of ensuring safe and healthful working conditions for employees across the United States.

Limited Federal Operations Amid Shutdown

With the federal government now more than a month into a shutdown, OSHA has entered its contingency mode, prioritizing only critical operations. While most routine inspections and compliance activities are suspended, the agency continues to respond to imminent danger reports, workplace fatalities, and catastrophic incidents.

It’s important to note that 22 states and territories, including California (Cal/OSHA) and North Carolina (NC-OSHA), operate their own state plans. These agencies remain fully functional and continue regular enforcement, training, and consultation activities independent of the federal shutdown.

A Budget in Question

The fiscal year 2026 OSHA budget remains unresolved, with three competing proposals creating uncertainty over the agency’s future capacity.

• Senate Proposal: Maintains OSHA’s FY 2025 funding at $632.3 million with 1,810 full-time equivalent (FTE) positions. It would fully fund state plan grants at $120 million and continue the Susan Harwood Training Grant Program at $12.8 million. The Senate plan supports enforcement, outreach, and training without reducing inspections or compliance initiatives.
• House Proposal: Would reduce funding to $582.4 million and lower staffing to 1,587 FTEs. It also cuts $4.8 million from state plan grants and reduces funding for compliance assistance and whistleblower programs. Projected inspection targets would fall to 24,929 nationwide.
• Administration Proposal: Mirrors the House’s budget goals and aligns with its emphasis on deregulation.

Until a new federal budget is approved, OSHA continues to operate under stopgap measures, making long-term planning for inspections, compliance assistance, and training programs more difficult.

Restoring Function at the Review Commission

The Occupational Safety and Health Review Commission (OSHRC), which adjudicates disputes arising from OSHA citations, regained partial functionality in October 2025 after the Senate confirmed Jonathan Snare as a commissioner.

Since April, OSHRC has operated without commissioners, preventing full Commission-level review of Administrative Law Judge (ALJ) decisions. Snare’s appointment allows new cases to proceed through the ALJ process, and parties can now appeal unfavorable rulings to the U.S. courts of appeals if needed. Although the Commission still lacks a quorum for full review, employers and workers once again have a pathway for resolution of contested cases.

Revised Penalty Reductions for Small Employers

In July 2025, OSHA announced major revisions to its Field Operations Manual (FOM), focusing on small-business penalty relief. The updated framework expands eligibility for penalty reductions to employers with up to 25 employees, compared to 10 under the previous policy.

Key revisions include:

• Up to 70 percent penalty reduction for small employers (25 employees or fewer).
• Up to 80 percent reduction for willful-serious violations if the company has 20 or fewer employees.
• Sliding-scale reductions for employers with up to 50 employees.
• Additional reductions (15–25 percent) for employers with effective safety and health programs, strong inspection histories, or prompt correction of hazards.

The updates are designed to encourage proactive safety programs and faster hazard abatement while easing the financial burden on small businesses.

Leadership and Policy Direction

David Keeling, confirmed as Assistant Secretary of Labor for Occupational Safety and Health, now leads OSHA. Keeling, who previously held safety leadership positions at Amazon and UPS, is expected to balance enforcement with cooperative compliance approaches.

Among the agency’s ongoing initiatives is the development of a national heat illness prevention standard. Under Keeling’s leadership, the final rule is anticipated to offer flexibility for employers while maintaining protections for outdoor and indoor workers exposed to high temperatures.

Looking Ahead

As OSHA navigates the combined pressures of a prolonged government shutdown, uncertain funding, and leadership transitions, its core responsibilities remain unchanged: responding to imminent hazards, investigating workplace fatalities, and supporting state plan partners.

While political debates may shape future funding and enforcement priorities, OSHA’s mission—to protect America’s workforce through education, enforcement, and outreach—continues. The coming months will determine how effectively the agency can sustain that mission amid fiscal and administrative challenges.