WITH LOOMING FUNDING DEADLINE HOUSE AND SENATE STRIKE TOPLINE DEAL: SUBCOMMITTEES ARE LEFT WITH MIXED REACTIONS

ECA Staff | 01/30/2024

Top lawmakers have agreed to top-line number allocations for each of the 12 appropriation bills. This allows for appropriations subcommittee leaders to begin negotiations on the details of their annual funding bills.Lawmakers face deadlines on March 1 and 8 to avoid partial government shutdowns. Four bills which make up about 20% of the discretionary funding face the first deadline, March 1. The rest of the eight bills have a March 8 deadline.   

However, House and Senate negotiators have reached a deal on top-line allocations, following weeks of negotiations since January 7th. The details of the bill-by-bill allocation agreement have not been made public. However, key lawmakers have given broad outlines to the funding levels in the deal struck by Senator Patty Murray (D-WA) and Representative Kay Granger (R-TX). 

While some subcommittees are faced with cuts to their previous number, such as Interior-Environment and Labor- Health and Human Services (HHS)-Education. The Energy and Water Subcommittee, Chair Representative Chuck Fleischmann is maintaining positive, “There’s optimism in the room. If there were going to be sticking points, it’s probably going to be over the rides.”  The Chairman reported that the bill’s defense and nondefense allocations are in good shape. He also reported that subcommittee leaders should be able to work out funding levels. However, subcommittee leaders need to be prepared to leave the toughest questions regarding policy riders to congressional leaders.

There is some reason to think that the bills may pass under suspension of the rules. That would be floor debate on the bills would be limited and all floor amendments would be prohibited, and final passage requires a two-thirds supermajority in the House. 

It is important to remember that due to a provision in the Fiscal Responsibility Act (FRA) negotiated last year between President Biden and House Republicans, Congress faces an automatic sequestration of 1% across all agencies' budget on May 1 if Congress has not yet approved full-year funding. This was designed to incentivize lawmakers to complete their budgeting work.The FRA would result in nearly a 10% cut across the board which could impact almost every agency. With most appropriation subcommittees declining meetings until bills pass, it can be expected for lawmakers to prioritize and do their best to reach the March deadlines.

While lawmakers continue to work towards FY24 appropriations bills to fund the government through September 30, FY25’s budget request is pushed further down. This gives local governments and communities time to make their requests and priorities known to local congressional members. 

ECA will continue to provide updates as appropriation bills continue to move forward.