House and Senate Appropriations Committees Advance FY 2024 Spending Measures
June 22, 2023
Ahead of a two-week recess, appropriators in both chambers made incremental progress this week on their respective fiscal year 2024 spending bills. For its part, the House Appropriations Committee approved four funding measures, including those covering Energy and Water Development, Defense, Homeland Security, and the Legislative Branch. While the panel has advanced six (of 12) bills in total, they are being drafted at funding levels that are approximately $120 billion below what was agreed upon in the recently enacted debt limit deal – the Fiscal Responsibility Act. This was done at the urging of hardline conservatives who were unhappy with the negotiations.
Across Capitol Hill, the Democratic-controlled Senate this week set topline spending levels for each of the 12 FY 2024 appropriations bills. In a break from their House counterparts, the upper chamber is abiding by the $1.59 trillion government funding total established under the Fiscal Responsibility Act. Earlier today, the panel gave the greenlight to its first two spending measures (Agriculture and Military Construction-Veterans Affairs), both of which passed with bipartisan support.
Looking ahead, and with the two chambers working with very different topline funding levels, it will be difficult for congressional negotiators to reconcile their differences later this year. The longer the two chambers are unable to agree on topline spending levels, the greater the threat of a federal government shutdown. Finally, it should be noted that the debt limit deal includes a trigger provision for an automatic one percent cut to discretionary spending programs if Congress does not pass all 12 appropriations bills by January 1, 2024.
Energy and Water Development and Related Agencies – House Bill
The House Energy and Water Development spending bill would provide approximately $58 billion in discretionary funding for the Department of Energy (DOE), the U.S. Army Corps of Engineers, and the Bureau of Reclamation. While this would amount to an increase of nearly $1.3 billion above current levels, the legislation would be offset by rescinding $5.58 billion from the Inflation Reduction Act (IRA). Among other things, the bill would claw back $1 billion from a grant program intended for states and local governments to adopt the latest building energy codes. Pursuant to the legislation, the Army Corps of Engineers would receive nearly $9.6 billion (an increase of $1.3 billion), the Department of Energy would be in line for approximately $43.3 billion (a decrease of $2.9 billion), and over $1.8 billion is set aside for the Bureau of Reclamation (a reduction of $91 million).
Homeland Security – House Bill
The Homeland Security bill would provide over $91.5 billion in total discretionary appropriations for the Department of Homeland Security, which is approximately $2.1 billion above the fiscal year 2023 enacted level. Under the measure, FEMA would receive $26 billion (an increase of two percent). Another $20 billion would be dedicated for major disaster response and recovery activities. It should be noted that the measure calls for a significant increase in funding for U.S. Customs and Border Protection (+19 percent) and Immigration and Customs Enforcement (+16 percent). It also includes $2.1 billion or construction of a physical wall along the southwest border.