Budget Brief 13-06
March 27, 2013

Before adjourning for the Easter recess, Congress approved a bill (H.R. 933) to fund the federal government for the remainder of fiscal year (FY) 2013, which ends on September 30, 2013. H.R. 933 includes a combination of five new appropriations bills and a continuing resolution (CR) for the remaining program areas. The funding levels in the bill are in effect for the entire fiscal year and replace the annualized levels included in the first CR. H.R. 933 does not reverse the March 1, 2013, sequester included in the Budget Control Act of 2011 (BCA; P.L. 112-25). As such, final FY 2013 funding levels for programs subject to sequester are determined by subtracting sequester cuts from funding levels in the final spending bill. The final FY 2013 funding levels mitigate or worsen the effects of sequester in some instances.

This Budget Brief describes the provisions in H.R. 933 relevant to states. Table 1 includes final FY 2013 funding levels for major grant programs that reflect both the March 1 sequester and the final spending bill. Compared to FY 2012, states will see a -$4.6 billion funding reduction for the major discretionary programs on Table 1. The mandatory programs are estimated to increase 7%, in part because most of the programs are exempt from sequester and funding for the largest program, Medicaid, is projected to increase by almost $18 billion.