Members of Congress are in their August recess period. Senators expect to reconvene on September 5 while members of the House of Representatives will do likewise on September 12. Once they return, they must face the arduous task of reaching agreement on the amount of spending for 12 appropriation bills for the new fiscal year that begins on October 1. Major differences presently exist between Democrats and Republicans, especially on non-military kinds of expenditures.
Thus far, work in the Senate has proceeded more smoothly. No bills have been passed yet, but it is significant that the Appropriations Committee in that chamber already has completed work on all 12 annual spending bills, where they received bipartisan support. For example, the Committee approved on a vote of 26-2, its fiscal year (FY) 2024 Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS) spending bill that includes $224.4 billion in funding, a roughly $14.5 billion increase. The National Institutes of Health would receive $47.7 billion, which represents a net increase of $265 million (0.6%) over the comparable FY 2023 funding level. The U.S. Department of Health and Human Services Department (HHS) would receive $117 billion, which includes a $250 increase in the maximum Pell Grant award. Each year, this form of assistance helps more than six million students at all stages of life pursue post-secondary education and further their careers.
The Military Spending-Veterans Affairs bill passed in the House, but it is expected that more unwieldy patterns will characterize efforts to reach agreement on the other 11 appropriation bills. For example, despite objections by Democrats, the House Labor, Health and Human Services, Education, and Related Agencies Appropriations Subcommittee on July 14 approved by voice vote a draft FY 2024 spending bill that would reduce by $60.3 billion (29%) funding for several agencies and programs within the Departments of Health and Human Services (HHS), Education, and Labor. Just as significantly, the Agency for Healthcare Research and Quality and several programs within the Centers for Disease Control and Prevention would be eliminated.
The situation is somewhat different in 2023 because earlier this year it was necessary for Congress to reach agreement on how to avert a default on the nation’s debt. The result is that federal spending on domestic programs must be flat for FY 2024. Unless the House and Senate are able to pass all 12 appropriations bills before Jan. 1, 2024, the earlier budget agreement will result in a forced 1% percent cut to all agencies. A sub-group of Republican members called the Freedom Caucus favors major spending reductions across a vast range of programs. Democrats are opposed and since they are a majority in the Senate, the two chambers are on a collision course. If unable to pass all 12 spending bills by September 30, short term measures will have to be implemented to enable the government to continue functioning.