June 30, 2022
House and Senate Appropriations committee leaders have yet to come to an agreement on topline spending numbers for fiscal year 2023, largely due to disagreements on defense spending and earmarks. Generally, Republicans want large defense spending increases while keeping non-defense spending at FY 2022 levels – a nonstarter for Democrats. Congressional Republicans are somewhat split on earmark spending, with more traditional Republicans opposing the newly-branded practice of “community project funding.” The House Appropriations Committee completed markups on all 12 spending bills this past week. Majority Leader Steny Hoyer (D-MD) has indicated he will bring as many bills to the floor as possible when Congress reconvenes in mid-July. Senate Appropriations Chair Pat Leahy (D-VT) said he plans to mark up the Senate’s version of appropriations bills regardless of a topline deal, although no schedule is expected until after July 4th. Also this week, Senator Leahy suffered a fall that will require surgery and a potentially lengthy absence from the Senate as he recovers. This could complicate the committee’s schedule, not to mention legislative business in the Senate.
Of note, appropriations leaders Senators Leahy and Richard Shelby (R-AL) are retiring, making this their last appropriations cycle. Senators Patty Murray (D-WA) and Susan Collins (R-ME) will likely take over the committee next year. Given this fact, both could play a large role in this year’s process. But if Republicans take the majority in the House and/or the Senate, the FY 2023 budget could be the last omnibus of President Biden’s first term. The federal government could pass continuing resolutions for the next two years if Congressional Republicans and President Biden are unable to agree on government spending levels.
Highlights of FY 2023 House Appropriations Committee Markups:
- The bill provides $761.681 billion in discretionary spending, a 4.5 percent increase or $33.207 billion more than the $728.474 billion in FY 2022. It is in line with President Biden’s budget request, a funding level endorsed by the Secretary of Defense.
- $450 million to support the Iraqi Security Forces, Kurdish Peshmerga, and the Syrian Democratic Forces Counter-ISIS Fund. No funds may be used to establish a military base in Iraq or to exercise U.S. control over any oil resource of Iraq or Syria.
- Prohibits funds for denying leave to servicemembers or civilians requesting leave to obtain an abortion.
- For fiscal year 2023, the draft bill appropriates a total of $5.702 billion, an increase of $954.4 million or 20.1 percent, from the $4.802 billion in FY 2022.
- Important policy changes include the need to confront the crisis of systemic racism. The bill includes language directing the Architect of the Capitol to remove statues or busts in the United States Capitol that represent figures who participated in the Confederate Army or government.
Military Construction, Veterans Affairs, and Related Agencies
- The bill provides $314.1 billion, an increase of $29.5 billion – more than 10 percent – above the $284.6 billion in FY 2022. Of this amount, discretionary funding for programs such as veterans’ health care and military construction totals $150.5 billion, an 18 percent increase or $23 billion from the $127.5 billion enacted in FY 2022.
Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
- The bill provides funding of $27.2 billion – an increase of $2.075 billion, or 8 percent – above the $25.125 billion in FY 2022.
- The bill provides $28.6 billion in funding for child nutrition programs. This is an increase of $1.7 billion above the $26.9 billion in FY 2022.
- The bill provides total funding of $85.67 billion, including $60.3 billion within the subcommittee’s funding allocation, $19.95 billion for major disaster response and recovery, and $5.4 billion that is offset by fee collections. The total within the subcommittee allocation is a 3 percent increase or $2.7 billion above the $82.97 billion in FY 2022.
Financial Services and General Government
- The bill includes $29.8 billion in funding, an increase of $4.3 billion – 17 percent – more than the $25.5 billion in FY 2022.
- The bill provides a total of $15.6 billion in discretionary appropriations for the Department of the Treasury, an increase of $1.3 billion from the $14.3 billion in FY 2022.
- The bill provides $400 million for Election Security Grants, an increase of $325 million above the FY 2022 enacted level.
- Important policy changes include new language making Dreamers eligible for Federal employment.
Interior, Environment, and Related Agencies
- The draft bill includes $44.8 billion in regular appropriations, an increase of $6.8 billion – 18 percent – more than the $38 billion in FY 2022.
- The bill provides a total of $11.5 billion for EPA – an increase of $2 billion from the $9.5 billion in the previous fiscal year.
Department of State, Foreign Operations, and Related Programs
- The bill provides $64.57 billion which is a 15 percent increase from last year’s $8.475 billion.
- The bill recommends over $3.6 billion to address the climate crisis and other environmental issues.
- $11 billion will be invested in global health and the prevention of future pandemics. This is almost a $1.146 billion increase from the $9.854 billion in FY 2022.
- The bill contains a total of $30.86 billion for bilateral economic assistance to foreign countries – an increase of $3.48 billion from the $27.38 billion in FY 2022.
- It bars the reinstatement of the Mexico City policy, which previously had barred funding for international non-governmental organizations that referred patients for abortions.
Labor, Health and Human Services, Education, and Related Agencies
- The bill provides $242.1 billion, an increase of $28.5 billion – 13 percent – above the $213.6 billion in FY 2022.
- The bill provides a total of $124.2 billion for HHS, an increase of $15.6 billion above the $108.6 billion in FY 2022 and $298 million below the President’s budget request.
- The bill includes a total of $10.5 billion for the CDC, an increase of $2 billion above the $8.5 billion in FY 2022 and $231 million below the President’s budget request.
- The bill funds the Substance Use And Mental Health Service Administration (SAMHSA) at $9.2 billion – an increase of $2.6 billion above the $6.6 billion in FY 2022.
- The bill eliminates the Hyde and Weldon amendments, a long-standing discriminatory policy that denied low-income women their legal right to an abortion.
Transportation, Housing and Urban Development and Related Agencies
- The bill provides funding of $90.9 billion, an increase of $9.9 billion – more than 12 percent – above the $81 billion in 2022. This includes an increase of $8.9 billion for the Department of Housing and Urban Development and $837 million for the Department of Transportation.
- Includes more than $2.6 billion to reduce emissions, increase resiliency, and address historical inequities in transportation and housing programs.
- The bill provides a total of $62.7 billion for HUD – an increase of almost $9 billion above the $53.7 billion in FY 2022 and $1.1 billion above the President’s 2023 budget request.
Commerce, Justice, Science, and Related Agencies
- The bill provides $85.7 billion, an increase of $7.6 billion – 9.7 percent – above the comparable $78.1 billion in 2022.
- The bill includes $11.6 billion for the Commerce Department, an increase of $1.7 billion above the $9.9 billion in FY 2022.
- The bill funds DOJ at $38.1 billion, an increase of $3.3 billion above the $34.8 billion in FY 2022.
- Includes funding for the United States Attorneys for investigations and prosecutions associated with the January 6 U.S. Capitol attacks and the rising challenge of domestic terrorism.
Energy and Water Development, and Related Agencies
- The Energy and Water bill provides $56.275 billion, an increase of more than 6 percent or $3.4 billion above the $52.875 billion in FY 2022.
- The bill provides a total of $8.889 billion to the Army Corps of Engineers, an increase of $545 million above the FY 2022 enacted level and $2.288 billion above the request.
- The bill provides a total of $48.2 billion for the Department of Energy, an increase of $3.3 billion above the $44.9 billion in FY 2022.