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FY2024 Appropriations

We are tracking the status of FY2024 appropriations, where things stand, and what it all means for bond lawyers.

U.S. Capitol Building. Source: Ron Cogswell via Flickr

Last Updated March 25, 2024

Appropriations Work Concluded

Congress passed the final set of appropriations on March 23, 2024. Appropriations for the full federal government are authorized through FY2024, which concludes on September 30, 2024. NABL will update members separately on any relevant supplemental appropriations and FY2025 appropriations as details become available.

Congress and the Administration had until September 30, 2023, to provide appropriations for the federal government’s fiscal year 2024. The Fiscal Responsibility Act (FRA), also known as the Bipartisan Debt Deal enacted in June 2023, set topline budget numbers of $1.59 T for FY2024 and $1.606 T for FY2025. The FRA also contained an automatic restriction to discretionary spending in the event of a CR lasting beyond January 1, 2024.

What’s Next

Congress passed several continuing resolutions (CRs) to avert full and partial government shutdowns throughout the first six months of FY2024. On March 24, Congress passed the last set of full appropriations to authorize spending through the remainder of the fiscal year ending on September 30, 2024.

New to Appropriations

100 US Dollar Bills. Source: Jericho via Wikimedia Commons.
100 US Dollar Bills. Source: Jericho via Wikimedia Commons.
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Final Spending Bills

Consolidated Appropriations Act, 2024: A “minibus” that provides full appropriations through the remainder of FY2024 for six appropriations areas:

  • Military Construction, Veterans Affairs
  • Agriculture, Rural Development, Food and Drug Administration
  • Commerce, Justice, and Science
  • Energy and Water Development
  • Interior and Environment
  • Transportation, Housing and Urban Development (T-HUD)

Further Consolidated Appropriations Act of 2024: A second minibus that provides full appropriations through the remainder of FY2024 for:

  • Defense
  • Financial Services and General Government (IRS + SEC)
  • Homeland Security
  • Labor, Health & Human Services, and Education
  • Legislative Branch
  • State Department and Foreign Operations

Updates

You can track the status of both chambers’ work to complete all 12 appropriations bills here. NABL will continue to keep members informed as information becomes available. [New Updates Highlighted]

Fourth Stopgap Package

Congressional leadership announced a fourth CR that would punt government funding further into March to buy appropriators more time to complete their full FY2024 appropriations work. The new spending deal funds six of the appropriations areas through March 8, and the remaining six through March 22. Members of Congress feel generally confident in their ability to complete FY2024 appropriations work by those new deadlines. Lead appropriators also released final spending bills for the six areas due March 8: Agriculture-FDA; Energy and Water; Military Construction and Veterans Affairs; Transportation & Housing and Urban Development (T-HUD); Interior and Environment; and Commerce-Justice-Science.

Potential Bipartisan Spending Deal

A bipartisan agreement announced on January 7, 2024, provides a framework and topline spending numbers for the remainder of the federal government’s FY2024. Here’s what we know:

Topline
AmountNotes
Total Discretionary Spending $1.659 trillionRoughly equal to FY2023
Non-Defense Programs$772.7 billion< 1 percent cut compared to FY2023
Defense Programs$886.3 billion~3 percent increase compared to FY2023
IRS Funding

The deal does not include additional cuts to Internal Revenue Service (IRS) funding beyond those outlines in the FRA. It proposes, however, an acceleration of a $10 billion reduction scheduled for FY2025. This reduction is coupled with an already scheduled $10 billion reduction for FY2024, summing to a total of $20 billion in cuts to IRS funding for the fiscal year.

Unknowns Remain

Congressional leadership negotiated this package, and it is unclear to what extent both caucuses will support it. The compromise proposes cuts to federal spending that fall well below those sought by conservative Republicans. It also does not address the supplemental spending requests for military aid to Ukraine, Israel, and Taiwan. Republicans will also likely demand some sort of legislative action or agreement on border policy prior to advancing a spending package.

Understanding FRA Restrictions

The Fiscal Responsibility Act (FRA) mandates a one-percent cut to federal discretionary spending authorized under a CR lasting beyond January 1, 2024. The aforementioned OMB memo indicates that neither OMB or agencies will enact cost cutting measures on January 1, citing that such measures are only mandated “after full year appropriations are enacted, or April 30 [2024], whichever comes first.”

The memo goes on to indicate that if the federal government operates on a CR beyond April 30, 2024, OMB “is required to issue a Final Sequestration Report that compares the annualized appropriation levels provided by all discretionary appropriations bills under current law as of April 30 against the section 102 interim spending limits”; and that OMB will issue a Final Sequestration Report within “15 working days after all full-year discretionary appropriations bills are enacted…”

“Laddered” Stopgap Measure

Throughout the week of November 13, 2023, Congress debated and ultimately passed a laddered CR to temporarily fund the government in two tranches. The proposal averted the risk of a federal government shutdown upon the expiration of the previous stop gap measure on November 17. The two tranches will extend authorization for four of the appropriations bills through January 19, 2024, and the remaining eight bills through February 2, 2024, as detailed below:

Thru Jan. 19, 2024
  • Agriculture and FDA
  • Energy and Water Development
  • Military Construction, Veterans Affairs
  • Transportation, Housing and Urban Development (T-HUD)
Thru Feb. 2, 2024
  • Commerce, Justice, and Science
  • Defense
  • Financial Services and General Government
  • Homeland Security
  • Interior and Environment
  • Labor, Health and Human Service
  • Legislative Branch
  • State and Foreign Operations

45-Day-Stopgap Measure

On September 30, 2023, Congress passed a 45-Day-Stopgap measure that maintains federal government spending largely at FY2023 levels through November 17, 2023, and:

  • Extends the National Flood Insurance Program (NFIP) through November 17, 2023.
  • Extends authorization for the Federal Aviation Administration, various air programs, and air travel-related federal taxes through December 31, 2023.
    • Congress last fully authorized the Federal Aviation Administration (FAA) via the FAA Reauthorization Act of 2018 (H.R. 302), which expired on September 30, 2023.
  • Provides supplemental aid for disaster recovery.

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