Each calendar year, it is customary to complete legislation on appropriations that should have been finished by the previous October 1 deadline when a new fiscal year when into effect. Almost immediately, however, work must begin to produce a new set of spending bills to meet the next October 1 deadline. The year 2024 is proving to be no exception to this process.
House Republicans have announced a plan to complete all 12 appropriation bills by the start of the August 2024 recess. If history serves as a reliable guide, it may be quite challenging to fulfill that aim. A possible obstacle is that these individuals have just a paltry two-vote margin over Democrats. A GOP subgroup called the Freedom Caucus is no advocate of increasing the amount of spending and contributing to an ever growing amount of federal debt. Although it never is assured, it always is possible that a handful of Democrats could support particular spending bills that they like, which could help to offset any defections by Freedom Caucus members. The overall political context also has potential to complicate what happens in the appropriations arena. For example, as a response to the conviction of former President Donald Trump at the end of May in a New York City courtroom, in retaliation, 10 Republican Senators expressed an intention to block certain appropriation measures from being passed in their chamber.
An uncomfortable reality is that interest payments on the national debt are beginning to surpass spending on major initiatives, such as defense and Medicare. The Congressional Budget Office (CBO) on May 21, 2024 released a report indicating that if current laws governing revenues and spending generally remained unchanged, the federal budget deficit would increase significantly in relation to gross domestic product (GDP) over the next 30 years, driving up federal debt. The amount of debt held by the public would soar from 99% of GDP in 2024 to 166% of GDP in 2054—exceeding any previously recorded level and on track to increase further. While these projections are not predictions of budgetary outcomes, they provide lawmakers a benchmark for measuring the effects of policy options or proposed legislation.
Meanwhile, tumult associated with the rollout of revisions to the Free Application to Federal Student Aid (FAFSA) form has prevented many higher education institutions from delivering financial aid offers to students and their families in a timely manner. A result is that some members of Congress are interested in making legislative changes to ensure that the FAFSA process is more efficient and effective. Nonetheless, despite the wrangling that often characterizes what transpires on Capitol Hill, an example was provided in the May 2024 issue of this newsletter of the many occasions when bipartisan harmony is achieved. The purpose of S. 2016, CONNECT for Health Act of 2023, is to expand coverage of telehealth services through Medicare, make permanent telehealth flexibilities that were enacted during COVID, make it easier for patients to connect with their doctors, and help improve health outcomes. The bill had 65 Senate co-sponsors in May. That number remains unchanged.