Congress Completes Action on FY 2024 Appropriations; Push to Extend Affordable Connectivity Program Continues
April 4, 2024
Ahead of a two-week Congressional recess, lawmakers cleared and President Biden signed into law two separate fiscal year 2024 appropriations Acts. Combined, the measures provide funding for all federal departments and agencies through September 30 of this calendar year.
The first spending measure – the Consolidated Appropriations Act, 2024 – provides funding for a number of major departments, including Agriculture, Commerce, Energy, Interior, Justice, Housing & Urban Development, and Transportation. The Act (P.L. 118-42) also funds dozens of other agencies and bureaus.
The second package – entitled the Further Consolidated Appropriations Act, 2024 (P.L. 118-47) – funds the Departments of Defense, Health and Human Services, Homeland Security, Labor, Treasury, and State, as well as a number of independent agencies and governmental bodies.
As a unified package, the two budget bills adhere to the topline appropriations levels that were announced by congressional leaders in early January. Incidentally, final spending also largely tracks the funding targets that were negotiated between President Biden and then-House Speaker Kevin McCarthy (R-CA) as part of the Fiscal Responsibility Act (P.L. 118-5).
All told, the enacted budget provides $773 billion in domestic discretionary resources for fiscal year 2024. Although that level of spending is roughly on par with FY 2023 levels, lawmakers imposed cuts across a number of individual departments, agencies, and programs while others received notable increases. With regard to discretionary defense spending, the final budget provides $825 billion or a roughly 3.4 percent boost in funding.
The recent congressional action on the two appropriations measures concludes a lengthy and tumultuous budget cycle for the fiscal year that began last October. In the intervening months, lawmakers were forced to pass several Continuing Resolutions in order to avoid a series of partial government shutdowns. In the end, the final spending bills garnered relatively strong bipartisan backing in the upper chamber as a majority of Senate Republicans joined most Democrats in supporting the legislation. In the GOP-controlled House, however, Speaker Mike Johnson (R-LA) was forced to rely heavily on Democratic votes in order to get the bills over the finish line due to strong opposition from conservative members of the Freedom Caucus.
To follow are key funding highlights of the final appropriations Acts for fiscal year 2024.
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
The Agriculture spending title of P.L. 118-42 provides discretionary funding of $26.3 billion, or a roughly three percent decrease compared to FY 2023. The Act includes a total of $211 billion when accounting for both discretionary and mandatory programs.
U.S. Department of Agriculture – For USDA nutrition programs, the final budget provides $1.03 billion in additional funds for the Special Supplemental Nutrition Program for Women, Infants, and Children program (WIC). Without the increase, states would have been forced to create waiting lists for the program during the summer.
Notably, lawmakers rejected an optional Supplemental Nutrition Assistance Program-choice pilot program proposed by House Republican leadership, which would have given five states the opportunity to apply for a USDA waiver to limit food purchasing choices, including a prohibition on using SNAP benefits to purchase soda, candy, and highly-processed foods. The final spending law does not include any SNAP policy changes.
With regard to USDA rural development programs, the Act reduces overall program spending by roughly $500 million. Among the programs receiving budget reductions are the ReConnect broadband program, the Distance Learning, Telemedicine and Broadband Program, and the Community Connect Grant Program. USDA’s water and wastewater disposal program also was cut under the final budget.
Commerce, Justice, Science and Related Agencies
The Commerce, Justice, Science (CJS) title of P.L. 118-42 provides non-defense topline resources of $69.9 billion, or a 16 percent reduction from the FY 2023 enacted level. This title funds the Department of Justice and the Department of Commerce, as well as related agencies.
Department of Justice |
|
|
Total Funding |
$37.5 Billion |
- $1 Billion |
State & Local Law Enforcement Grants |
$2.5 Billion |
+$58 Million |
Byrne-Justice Assistance Grants |
$345 Million |
- $67 Million |
State Criminal Alien Assistance Program |
$234 Million |
$0 |
COPS Programs |
$665 Million |
+ $1.6 Million |
Violence Against Women Act |
$633 Million |
- $67 Million |
Second Chance Act |
$117 Million |
- $8 Million |
The final budget provides $345 million in base funding for Byrne-Justice Assistance Grants, a 16 percent cut compared to FY 2023, as well as over $350 million in community project funding (earmarks) through the Byrne program. Additionally, the Act provides $234 million for the State Criminal Alien Assistance Program (SCAAP), the same level of funding as FY 2023, and $664.5 million for Community Oriented Policing Services (COPS) programs, or a modest $1.6 million increase.
Victims of Crime Act – The final budget sets Victims of Crime Act (VOCA) funding at $1.353 billion. While the spending allocation is $153 million more than the Biden administration’s budget request, the final spending level represents a $1.9 billion cut. It should be noted that the reduction in VOCA funding was anticipated and reflects the fact that deposits into the Crime Victims Fund are at a historic low.
Violence Against Women Act – The Consolidated Appropriations Act provides $633 million for Violence Against Women Act (VAWA) grants, or a cut of $67 million compared to FY 2023. In addition, the final budget includes $50 million for Community Violence Intervention and Prevention programs and $117 million for Second Chance Act programs (a 6.4 percent reduction).
Comprehensive Addiction and Recovery Act grants – The final budget provides communities and first responders with over $579 million in dedicated grant program funding to respond to substance use disorder, including opioids, and to crack down on drug trafficking. The bulk of the funding is for Comprehensive Addiction and Recovery Act (CARA) grants for specialized court docket programs like drug, mental health, and veteran treatment courts and substance abuse treatment programs administered by state and local correctional facilities.
DEPARTMENT OF COMMERCE – P.L. 118-42 provides $10.8 billion to the Department of Commerce, a cut of $229 million from the FY 2023 enacted level. This includes $468 million for community economic development programs through the Economic Development Administration (EDA), including $100 million for Public Works grants, $25 million for the Good Jobs Challenge Program, and $50 million for the Regional Innovation Program. The Act also provides $41 million for the Regional Technology and Innovation Hub Program, which was authorized for the first time in the CHIPS and Science Act of 2022.
Energy and Water Development and Related Agencies
The final budget provides $58.2 billion in FY 2024 resources for the Energy and Water Development funding title. The defense portion of the allocation totals $33.2 billion, which is $1.89 billion (6 percent) above the FY 2023 enacted level. Non-defense spending is $24.9 billion, or two percent below previous spending.
U.S. Army Corps of Engineers – P.L. 118-42 provides nearly $8.7 billion for programs and projects under the purview of the U.S. Army Corps of Engineers, or $21 million above the FY 2023 enacted level. The Act includes over $2.77 billion for the Harbor Maintenance Trust Fund, a $253 million increase in spending, as well as $456 million for construction projects on the inland waterways system, fully funding ongoing work for FY 2024. Roughly $2.2 billion is included for flood and storm damage reduction activities.
BUREAU OF RECLAMATION – The Act provides a total of $1.9 billion in resources for the Bureau of Reclamation, a slight decrease in spending. Within Reclamation’s budget, the Act directs over $135 million for rural water projects and includes $134 million for water storage projects authorized by the WIIN Act.
U.S. Department of Energy – P.L. 118-42 provides a total of $50.2 billion for the Department of Energy, including $3.5 billion for Energy Efficiency and Renewable Energy programs, or the same level of funding as FY 2023. Of the aforementioned total, $471 million is dedicated to State and Community Energy Programs (or level funding) to support the Weatherization Assistance Program, Weatherization Readiness Fund, State Energy Program, Local Government Energy Program, and Energy Future Grants.
Finally, the budget Act includes $200 million for Cybersecurity, Energy Security, and Emergency Response activities, equal to previous spending levels. Among other activities, funding is dedicated to programs that protect energy infrastructure, as well as programs designed to reduce the risks of and impacts from cybersecurity events.
Interior, Environment, and Related Agencies
The FY 2024 Interior, Environment, and Related Agencies title includes $41.3 billion in funding for the U.S. Department of the Interior (not including the Bureau of Reclamation), the U.S. Environmental Protection Agency (EPA), the U.S. Forest Service, and other related agencies. The overall funding level is $11.4 billion below the FY 2023 enacted levels.
U.S. Department of the Interior – The final budget provides a total of $14.7 billion for the Interior Department, which is approximately $31 million above FY 2023.
Bureau of Land Management |
|
|
Total Funding |
$1.38 Billion |
- $81 Million |
Annual and Deferred Maintenance |
$55 Million |
- $21 Million |
Fish and Wildlife Service |
|
|
Total Funding |
$1.72 Billion |
- $51 Million |
Construction |
$19.3 Million |
- $10.6 Million |
National Park Service |
|
|
Total Funding |
$3.33 Billion |
- $150 Million |
Construction |
$172 Million |
- $68 Million |
U.S. Environmental Protection Agency – The budget Act provides a total of $9.2 billion for the EPA, which is a reduction of $977 million. The biggest reduction ($745 million) came out of the Hazardous Substance Superfund program, although the Infrastructure Investment and Jobs Act (IIJA) provides the Superfund with a separate pot of funding that will more than make up for the loss of discretionary funding.
The Clean Water and Drinking Water State Revolving Funds, which provide resources for water and wastewater projects, are funded at FY 2023 levels.
U.S. FOREST SERVICE – The budget law provides $8.4 billion for the U.S. Forest Service, which is $1.3 billion above the FY 2023 enacted level. Of this amount, $3.8 billion is for non-fire responsibilities, which is $157 million below previous spending. The remaining $4.6 billion is reserved for wildland fire management, which is an increase of nearly $1.5 billion.
U.S. Forest Service |
|
|
State, Private, and Tribal Forestry |
$303 Million |
- $34.4 Million |
Capital Maintenance |
$156 Million |
- $2 Million |
Wildfire Suppression – The budget fully funds essential wildfire preparedness and suppression efforts by providing over $4 billion for wildfire suppression, of which $2.65 billion is provided to the Wildfire Suppression Operations Reserve Fund. The Reserve Fund provides the Forest Service and the Interior Department an assured amount of funding to be used when major fire activity requires expenditures exceeding regular base suppression operations funding. This funding level – in addition to carryover balances – will meet projected needs for FY 2024 wildfires.
Wildland Firefighter Pay – The budget law continues the additional pay authority provided by the IIJA and protects current staffing levels.
Payments-in-Lieu-of-Taxes – The final budget fully funds the Payments-in-Lieu-of-Taxes (PILT) program. In FY 2023, the Interior Department distributed more than $578 million in PILT funding to over 1,900 local governments. In all, 57 California counties received over $61 million last year. The FY 2024 budget Act fully funds payments to counties through the PILT program, which are estimated at a total of $515 million.
Labor, Health and Human Services
P.L. 118-47 provides over $222 billion in funding for the Departments of Labor, Health and Human Services, and Education, or a roughly 7.2 percent increase compared to previous spending.
U.S. DEPARTMENT OF LABOR – The Department of Labor is receiving $14.3 billion for FY 2024, with funding frozen for employment and training programs, including $885 million for adult training under the Workforce Innovation and Opportunity Act (WIOA) and $948 million for youth training. The Dislocated Worker Assistance program is also level-funded at $1.09 billion.
U.S. Department of Labor |
|
|
Total Funding |
$13.7 Billion |
- $145 Million |
Employment and Training Programs |
$2.9 Billion |
$0 |
Adult Training |
$886 Million |
$0 |
Youth Training |
$948 Million |
$0 |
Dislocated Worker Assistance |
$1.1 Billion |
$0 |
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES – The vast majority of programs under the purview of the U.S. Department of Health and Human Services are funded at last year’s levels (with departmental revenues totaling $116.8 billion). One notable exception is the Child Care Development Block Grant (CCDBG), which was increased by nine percent over FY 2023 to $8.75 billion.
Additionally, the final Appropriations Act provides a number of notable policy changes and programmatic extensions, as follows:
TANF and Child Welfare Programs Extended – The Temporary Assistance for Needy Families (TANF) was extended through September 30, 2024. The final budget Act extends child welfare prevention services (Title IV-B) through December 31, 2024. Both programs are pending reauthorization.
IMD Reforms Made Permanent for SUD Treatment – P.L. 118-47 makes permanent a state option to waive the Institutions for Mental Disease (IMD) exclusion for Substance Use Disorder (SUD) treatment. Under the law, states have the option to waive the requirement that such services be provided in facilities with 16 beds or fewer in order to receive Medicaid reimbursement. The permanent waiver allows SUD services to be provided to an individual for up to 30 days over a one-year period.
States Required to Suspend Rather than Terminate Medicaid Upon Arrest – The Act mandates that states suspend, rather than terminate, Medicaid benefits upon an individual’s incarceration. The policy continues to allow states to apply for Section 1115 waivers to resume coverage before release, but does not mandate that particular policy.
DSH Payment Cuts Delayed – The legislation once again delays the $8 billion annual cut to Medicaid Disproportionate Share (DSH) hospital payments (cuts are now delayed to January 1, 2025). DSH provides supplementary payments to hospitals serving large numbers of uninsured and Medicaid patients, including those in county-owned facilities.
Transportation, Housing and Urban Development and Related Agencies
The Transportation-Housing and Urban Development funding title of P.L. 118-42 provides $103 billion in discretionary spending for federal highway, transit, aviation, and housing programs. After accounting for dramatic declines in housing revenues this year, the funding levels in the Act provide for a net increase of $1.7 billion, or 1.6 percent, from FY 2023. The law also provides $79.4 billion for roads, bridges, and transit infrastructure programs funded through the Highway Trust Fund (HTF), an increase of $1.8 billion from previous levels.
U.S. Department of Transportation – The Act provides a total of $106.4 billion in budgetary resources, or an increase of $15.5 million from FY 2023. These amounts are in addition to the $36.8 billion in discretionary spending under the Infrastructure Investment and Jobs Act (IIJA) for FY 2024.
Federal Highway Administration – Under the final budget, $60.8 billion is provided to the Federal Highway Administration for road, bridge, and highway safety formula programs funded through the HTF, consistent with the IIJA, as well as an additional $2.2 billion for Highway Infrastructure programs and projects.
Federal Transit Administration – The Federal Transit Administration is funded at $16.6 billion, including $13.9 billion for Transit Formula Grants to expand bus fleets and increase the transit state of good repair, consistent with the IIJA. The Act also provides a total of $2.4 billion for Capital Investment Grants to create new transit routes nationwide, as well as $252 million for Transit Infrastructure Grants and projects to assist transit agencies in purchasing low and no emission buses and to carry out other key local projects.
Federal Transit Administration |
|
|
Total Funding |
$16.6 Billion |
- $365 Million |
Transit Formula Grants |
$13.9 Billion |
+ $356 Million |
Capital Investment Grants |
$2.2 Billion |
- $5 Million |
Transit Infrastructure Grants |
$252 Million |
- $290 Million |
Federal Aviation Administration – The Act provides $20.1 billion for the Federal Aviation Administration (FAA), $1.1 billion above FY 2023. This includes a seven percent increase from 2023 for FAA operations to expand the national air traffic controller workforce by 1,800 personnel, as well as $1.7 billion to support 125 new personnel to carry out flight standards, aircraft certification, and accident prevention activities. With regard to the Airport Improvement Program (AIP), the final budget provides just over $3 billion in funding, a slight decrease compared to FY 2023.
U.S. Department of Housing and Urban Development – The Department of Housing and Urban Development is receiving $75.5 billion in FY 2024, or an increase of $3.4 billion. Among other program enhancements, the final budget boosts funding for Homeless Assistance Grants, bringing total program funding to $4.05 billion (a 12 percent increase). The funding will assist over 750,000 people experiencing homelessness and more than 350,000 individuals in emergency shelters.
P.L. 118-42 also provides $32.4 billion for Tenant-based Rental Assistance, an increase of $2.1 billion, which will ensure that more than 2.3 million very low and extremely low-income households nationwide receive program assistance. Within the allocation, $30 million is available for housing vouchers for youth aging out of foster care. The Act also includes over $16 billion for Project-based Rental Assistance, which will help house more than 1.2 million very low and low-income households, an increase of $2 billion above FY 2023.
Finally, the Community Development Block Grant (CDBG) was level-funded at $3.3 billion, while the HOME Investment Partnership program was cut by 17 percent (from $1.5 billion down to $1.25 billion in FY 2024).
U.S. Housing and urban development |
|
|
Total Funding |
$70 Billion |
+$11.9 Billion |
Community Development Block Grant |
$3.3 Billion |
$0 |
Homeless Assistance Grants |
$4 Billion |
+ $418 Million |
Tenant-based Rental Assistance |
$32.4 Billion |
+ $2.1 Billion |
Project-based Rental Assistance |
$16 Billion |
+ $2 Billion |
Home Investment Partnership Program |
$1.25 Billion |
- $250 Million |
Homeland Security
The Department of Homeland Security will be funded at $90.4 billion in FY 2024, an increase of nearly $4 billion. When excluding offsetting collections and major disaster funding, the total provided in the bill is $61.8 billion, which is $1.1 billion above the FY 2023 enacted level.
FEMA |
|
|
Disaster Relief Fund |
$20.3 Billion |
+ $316 Million |
Assistance to Firefighters Grants |
$324 Million |
- $36 Million |
SAFER (Firefighter Hiring) Grants |
$324 Million |
- $36 Million |
Emergency Food and Shelter |
$117 Million |
- $13 Million |
U.S. Customs and Border Protection – The final budget provides $20 billion to U.S. Customs and Border Protection, an increase of $3.3 billion from the FY 2023 enacted level. The spending will support 22,000 Border Patrol Agents and provide for a total of 41,500 detention beds, which is 7,500 more than the previous year.
Shelter and Services Program – The Shelter and Services Program, which provides funding to county governments and non-profits in areas experiencing an influx of migrants, is in line for $650 million – a cut of $150 million.
Border Management Requirements – The law will provide over $1.7 billion for border management requirements, including Border Patrol processing facilities, transportation requirements, migrant medical needs, and other related support costs. The Biden administration had initially sought $4.7 billion for a “border contingency fund” to tap into when migrant arrivals spiked.
U.S. Immigration and Customs Enforcement – The Act provides $9.56 billion to U.S. Immigration and Customs Enforcement, an increase of over $1.1 billion.
Veterans Affairs
P.L. 118-42 provides a nominal increase for the Department of Veterans Affairs, though certain VA programs received significant increases. For example, Veterans Mental Health Programs and Veterans Homeless Assistance Programs are funded at $16.2 billion and $3.1 billion, respectively (increases of 17 percent and 15 percent). Operating expenses for administering veterans’ benefits are funding at nearly $3.9 billion, or a roughly one percent increase.
Affordable Connectivity Program
With Congress failing to provide funding for the Affordable Connectivity Program (ACP) as part of the fiscal year 2024 appropriations cycle, congressional champions of the ACP and the Biden administration have continued their efforts to preserve the program. For her part, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel earlier this week wrote a series of letters to congressional appropriators highlighting the urgent need to extend ACP funding.
It should be noted that the FCC correspondence comes on the heels of two recent ACP extension-request letters to congressional leaders from House and Senate lawmakers. The House letter, dated March 20, garnered 158 signatures. The Senate correspondence was signed by 33 members, including Senators Alex Padilla (D-CA) and Laphonza Butler (D-CA).
The ACP is an FCC benefit program that helps ensure that low-income individuals and families can afford essential broadband service. Enacted as part of the 2021 Infrastructure Investment and Jobs Act (P.L. 117-58), the program provides a discount of up to $30 per month toward internet service for eligible households and up to $75 per month for households within high-cost areas and qualifying Tribal lands.
In California, there are over 5.8 million ACP-eligible households. To date, nearly three million of those households have been enrolled in the program. Unless Congress takes action to extend ACP funding, April will be the final month that households in California and across the country will receive the full benefit toward the cost of broadband service.
Looking ahead, it remains unclear if congressional leaders will be able to reach an agreement to provide continued funding for the ACP. In the meantime, supporters of the program are continuing to urge Congress to advance bipartisan legislation (H.R. 6929/S. 3565) that would provide $7 billion in new ACP funding. The bill, which has been endorsed by CSAC, has 221 cosponsors in the House, including 39 members of the California congressional delegation.