Josh Allen Reportedly Restructures Contract, Updated Bills Salary Cap for NFL Free Agency

Buffalo Bills star quarterback Josh Allen just did his team a major favor as NFL free agency officially begins on Wednesday.

According to ESPN's Field Yates, Allen restructured his contract with the Bills, creating $12 million in salary cap space for the 2026 season. Per Spotrac, Buffalo was nearly $16 million over the cap, so Allen's restructured deal provides some much-needed financial relief for the Bills.

Just a year ago, the Bills signed Allen to a record-setting six-year, $330 million contract through the 2030 season that included $250 million guaranteed. He was set to count for a $56.4 million cap hit in 2026 before Wednesday's restructure.

The 2024 NFL MVP, Allen enjoyed another stellar season in 2025, throwing for 3,668 yards, 25 touchdowns and 10 interceptions while adding 579 rushing yards and 14 more scores on the ground. The Bills went 12-5 before losing to the Denver Broncos in the Divisional Round of the playoffs.

After Buffalo's season came to an end, Allen underwent surgery to repair a broken bone in his foot. He's expected to be back at full strength for the start of the 2026 campaign, when Buffalo will be entering a new era under first-year head coach Joe Brady, who replaced the fired Sean McDermott.

The Bills already made a major splash this offseason by trading for star receiver D.J. Moore from the Chicago Bears. However, Buffalo has made modest moves on the free-agent market so far.

Restructuring Allen's deal should allow the Bills to be more aggressive in their free-agent pursuits this offseason as they try to build a roster that can contend for a spot in the Super Bowl.