As they have performed repeatedly over the years, when it comes to the essential task of passing spending legislation to enable the federal government to continue functioning, members in both congressional chambers realize it may not be in anyone’s best interest to approach too closely to the edge of a metaphorical abyss. To produce 12 spending bills for fiscal year 2024, which began on October 1 last year, Congress recently was able to pass an additional continuing resolution (H.R. 7463) on February 29 with the House approving the measure by a vote of 320-99 and by 77-13 in the Senate. The CR extends fiscal year (FY) 2023 funding for four annual spending bills, including the Military Construction and Veterans Affairs spending bill through March 8, while continuing FY 2023 funding for the other eight spending bills, including the Labor, Health and Human Services, and Education and Defense bills until March 22.
Daily reports from the National Journal provide good snapshots of what is unfolding. Congress on March 3 released a package of six government bills that would fund a half-dozen agencies for the remainder of the fiscal year through September 30. The next hurdle is passing the package in both chambers ahead of a shutdown looming on March 8 at midnight. The $460 billion package for FY 2024 is the culmination of months of negotiations between congressional leaders that entailed a contentious appropriations process that saw multiple stopgap funding measures, and threatened several near-shutdowns.
The latest bipartisan package includes funding for the Agriculture, Interior, Energy, Veterans Affairs, Transportation, and Housing and Urban Development departments, the Environmental Protection Agency, and the Food and Drug Administration. Passage is expected. Lawmakers then immediately must pivot and fund the rest of the government by March 22, a new date members secured with the continuing resolution. If they fail to pass all 12 appropriations bills by April 30, a 1%, across-the-board cut to federal discretionary spending, essentially everything but entitlement programs would go into effect. Although the funding bill for the Health and Human Services Department (HHS) was not a part of this deal (its funding runs out March 22), lawmakers managed to include an increase to doctors’ pay under Medicare. Specifically, the agreement would change the pay increase from 1.25% to 2.93%. The arrangement only partially offsets the 3.4% reduction in payment that became effective at the beginning of this year.
Not to be forgotten is the high drama that preceded attempts to pass all 12 spending bills. Unhappiness with the performance of Rep. Kevin McCarthy (R-CA), who was criticized by members of his party’s Freedom Caucus for failing to oppose a bipartisan approach to government funding and not being successful in enacting steep budgetary cuts, he lost his position as House speaker. He was succeeded by Michael Johnson, a relatively unknown colleague from Louisiana. Oddly enough, the latter will function in the same manner that affected his predecessor adversely. A single vote to vacate the chair also could end Speaker Johnson’s occupancy of that position.