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Shutdown Averted… For Now?

Not quite at the literal 11th hour– but close to it– the federal government managed to avoid having to shut itself down last Saturday evening over the lack of funds to continue operating.  The dreaded government shutdown– something that most of Washington had been expecting for the past two weeks– was prevented at the end as a continuing resolution (CR) to keep the government funded through November 17 was adopted in both chambers on bipartisan votes and signed into law at the last minute.

There was plenty of drama building up to the last-minute, temporary, funding extension.  After the House Republican leadership finally acknowledged early Saturday that it did not have the votes within its conference to pass a bill with only Republican votes due to the recalcitrance of some of the the hard-right members, the Speaker sought to bring to the floor a CR that was relatively “clean.”  It extended government funding at this year’s current levels through November 17, extended the authority of the Federal Aviation Administration and the National Flood Insurance Program, and included $16 billion in emergency disaster relief.  It did not include, something that would prove to be an issue in the Senate later that day, additional funding for efforts in Ukraine.  The package that was being brought to the floor caught the House Democrats by surprise.

Ultimately, after a review of the package to ensure that there were no “poison pills” for their party in the legislation, all but one House Democrat joined a majority of the House Republicans in approving the measure.  Ninety House Republicans voted against the bill.

When the Senate took up the House-passed the bill shortly afterwards, progress was delayed because of the lack of additional funding for Ukraine.  After assurances from the Senate leadership that efforts would be made on this front, the hold on the legislation from Michael Bennet (D-CO) was released and the chamber adopted it 88 to 9.  It was signed into law by President Biden before the end of the evening.

The extension of government funding through November 17 buys, in theory, additional time for the lawmakers to actually finish additional parts of the annual appropriations process.  None of the 12 annual appropriations bills for FY2024 has been signed into law yet.

All of these activities related to the CR has ultimately led to another set of dramatic activities currently playing out in the House this week, which we discuss in the next post.

 

Sen. Appropriations Committee Finishes Its Work, Clears Last 4 Bills

By clearing the last four bills yesterday, the Senate Appropriations Committee has reported out all 12 spending bills for a fiscal year for the first time in five years.  The committee reported out favorably yesterday the following FY2024 spending measures:  Labor-HHS-Education; Defense; Interior and the Environment; and Homeland Security.  Unlike the situation in the House, where the leadership had to pull the Agriculture spending bill from a floor vote because it lacked enough support even among the Republicans, the committee process in the Senate yesterday was very bipartisan.  The Interior bill passed by a vote of 28 – 0, the Defense bill was approved 27 – 1, the Labor-HHS bill was adopted 26 – 2, and the vote was 24 – 4 on the Homeland Security legislation.  

Labor-HHS-Education

HEALTH AND HUMAN SERVICES

  • NIH

The Senate legislation would fund the National Institutes of Health at a total of $47.8 billion, an increase of $943 million above the current level.  The total includes $1.5 billion for ARPA-H, which represents level funding under the Senate version of the bill.  Within the NIH, the bill would increase, among other programs, mental health and Alzheimer’s research by $100 million each and while cancer research would see an increase of $60 million.

  • Title VII Health Professions and Title VIII Nursing Programs

The legislation proposes to fund the Title VII Health Professions programs at a total of $529 million, an increase of $20 million.

At the same time, the Title VIII Nursing programs would see a total of $302.5 million, a $2-million increase over this year.

DEPARTMENT OF EDUCATION

  • Student Aid and Higher Education
    • Pell Grant– The maximum award would increase by $250 to $7,645
    • SEOG– $900 million (a decrease of $10 million)
    • Federal Work Study– $1.22 billion (a decrease of $10 million)
    • International Education– $85.7 million (level funded)
    • TRIO– $1.19 billion (level funded)
    • GEAR UP– $338 million (level funded)
    • GAANN– $23.5 million (level funded)
  • Institute of Education Sciences (IES)
    • IES would be funded at $793 million, a cut of $14.5 million

Interior

USGS

  • Climate Adaptation Science Centers– $63.1 million (level funded)
  • ShakeAlert– $29.6 million (level funded)

NATIONAL ENDOWMENT FOR THE HUMANITIES

  • $207 million (level funded)

Defense

Under the committee-approved bill, defense basic research would be see an increase of 10.5 percent for a total of $3.22 billion.

  • Army basic research:  $672.5 million (an increase of 5.8%)
  • Navy basic research:  $793.5 million (an increase of 15.2%)
  • Air Force basic research:  $711.9 million (an increase of 16.3%)
  • Defense-wide basic research:  $862.3 million (a decrease of 7.0%)
  • DARPA:  $4.1 billion (0.7% increase)

Both chambers are now in recess until after Labor Day. 

FY24 Appropriations Process Is Underway: President’s Budget Request is Released

Earlier this month, the FY2024 President’s Budget Request (PBR) was released outlining the administration’s priorities for the coming fiscal year. The overall request is self-described as a blueprint to build on the past two years to “grow the economy from the bottom up and middle out by investing in America, lowering costs for families, protecting and strengthening Medicare and Social Security, and reducing the deficit by nearly $3 trillion over the next decade”. 

The FY24 PBR included:   

  • $8,215 per Pell Grant award (an $820 increase over FY23)  
  • $21 billion in discretionary spending for CHIPS & Science-authorized activities including $1.2 billion for the Directorate of Technology Innovation and Partnerships (TIP)  
  • $48.26 billion for NIH (an increase of 1.7% over FY23)  
  • $2.5 billion for ARPA-H (a $1 billion increase over FY23)  
  • $27.2 billion for NASA (a 7.1% increase over FY23), and  
  • $11.3 billion for NSF (an 18.6% increase over FY23 enacted level of $9.5 billion)  

Now the House and Senate will review the request and vote on a Budget Resolution that decides on topline numbers for discretionary funding. Here is where things could get tricky as the new divided Congress will likely have trouble coming to an agreement. 

Check out a more complete list of programs and accounts on our updated appropriations tracker, including the FY24 budget request numbers, here. We will continue to add to this once more budget justifications are released and as the appropriations process continues.   

Much-Awaited Omnibus Spending Bill Finally Released

 

Nearly three months into the new fiscal year and after months of seemingly little-to-no negotiations,

Congressional leaders released the much-awaited FY2023 omnibus appropriations package late yesterday.  Coming in at more than 4,100 pages, it contains all 12 spending bills for FY2023.  The current short-term government funding measure expires at midnight Saturday and Congressional leaders are working to get the new measure passed before then.

The Office of Federal Relations is in the process of digging through the package and details will emerge throughout the process.  We will share new information contained in the bill along the way.  In the meantime, we wanted to highlight a few of the initial highlights from the bill below:

  • The Pell Grant maximum would increase by $500 and the new maximum would increase to $7,395 for the next academic year.
  • NIH would be funded at $47.5 billion, an increase of $2.5 billion.
  • ARPA-H would see a total of $1.5 billion, which is also authorized, an increased of $500 M. ARPA-H will be administratively within NIH, but the bill prohibits ARPA-H, including its headquarters, from being physically located on any part of the existing NIH campus, and it requires ARPA-H to have offices or facilities in not less than 3 geographic areas. Further, in determining the location of these offices or facilities, the director is required to make “fair and open consideration” of the characteristics of the intended location and the extent to which the location will facilitate the advancement of the goals and functions of the agency.
  • NSF would be funded at $9.87 billion for FY2023, with the appropriators acknowledging that expectations were set for the agency by the CHIPS and Science Act, passed earlier this year.
    • Of the funds allocated to NSF, approximately $7.8 M would be for the Research and Related Activities Account while $1.37 billion would be for the Education and Human Resources Account.
  • Within NASA, which would be funded at $25.4 billion, $7.8 billion would go to Science. Space Grant would be funded at $58 million.
  • NOAA Oceanic and Atmospheric Research would be funded at $661.3 million, which would include funding of $104 million for the cooperative institutes.
  • Base Sea Grant would be funded at $80 million while Sea Grant Aquaculture would see a funding level of $14 million.

With respect to a provision that applies to a host of programs across different departments and agencies, the bill would wave “PAYGO” rules, which would implement mandatory sequester cuts to various programs, for FY2023 and FY2024.

As we said above, we will continue to dig through the legislation and the accompanying reports.  Both are available on the Senate Appropriations Committee webpage here.


 

Senate Clears Reconciliation Package; House to Take It Up Friday

After a marathon series of votes on amendments over the weekend, the Senate cleared by a vote of 51-50 a version of the reconciliation budget package.  With all 50 Democrats supporting the measure and all 50 Republicans voting against it, Vice President Harris cast the tie-breaking vote.  Because the measure isa reconciliation bill, which provided it procedural protections, it could move forward in the Senate with a simple majority vote.

The House is currently scheduled to take it up on Friday.

We will provide further details about the bill  in the near future.