Budget Briefs

After a record 35-day partial federal government shutdown, Congress passed—and the president signed—a third continuing resolution (CR) for fiscal year (FY) 2019. The CR (H.J.Res.28):

• keeps the federal government operating through February 15, 2019
• is retroactive to December 22, 2018, the expiration date of the last CR
• reimburses states for costs incurred operating federal programs during the shutdown (which also applies to future lapses in FY 2019 should they occur)
• continues funding for the Supplemental Nutrition Assistance Program (SNAP)
• extends Violence Against Women Act (VAWA) programs through February 15 (other programs—such as Temporary Assistance for Needy Families [TANF]—have been extended by separate legislation)

Temporary Assistance for Needy Families (TANF) is one of the few Department of Health and Human Services (HHS) grant programs affected by the partial government shutdown. This Budget Brief explains why and addresses key things to know about TANF during the shutdown.  

While a partial federal government shutdown is the most immediate problem facing states, its resolution will be followed closely by another impending budget dilemma: the return to strict spending caps set by the Budget Control Act of 2011 (BCA) for fiscal year (FY) 2020.

Until now, Congress has relaxed the BCA caps through a series of laws (each entitled the Bipartisan Budget Agreement [BBA]). However, no such agreement is in place for FY 2020 or beyond. As a result, non-defense discretionary spending is slated to decline by -$55 billion (-9%). Some in Congress have suggested incorporating a larger agreement to relax the FY 2020 spending caps into a deal to end the partial shutdown.

This brief revisits the BCA in the context of the current shutdown and the upcoming FY 2020 budget process.

The second fiscal year (FY) 2019 continuing resolution (CR)—which funds the portion of federal spending not covered by full-year spending bills enacted earlier this year—will expire on Friday. While Congress just announced an agreement on another short-term CR through February 8 and the president appears to support it, the risk of a federal shutdown likely will continue until a final budget is enacted.

Should a partial shutdown occur, state officials will have questions about their ability to operate federal grant programs in the absence of a current appropriation. The answers to those questions vary by program. FFIS Budget Brief 18-17 provides answers to general questions; this brief provides targeted summary information about specific grant programs.

Appendix: links to the sources of program-specific details

A little more than two months into fiscal year (FY) 2019, a second continuing resolution (CR) has been adopted to fund the portion of federal spending not covered by five full-year spending bills enacted earlier this year. This CR amends a nearly identical one that expired on December 7, extending it through December 21, and adding a short-term extension of the National Flood Insurance Program.

The CR covers about half the discretionary spending tracked in FFIS’s database, as shown in the chart below. The agencies listed on the chart are covered by the CR and would potentially be affected by a partial government shutdown. Table 1 at the end of this brief shows the latest funding levels for about 100 of the largest individual grant programs; those listed in italics are funded under the CR.

UPDATE (12/13): The spreadsheet below includes a more robust list of grant programs funded by the CR.

FFIS answers frequently asked questions about federal government shutdowns.

Congress passed an agreement that combines full-year appropriations for Labor-Health and Human Services (HHS)-Education and Defense with a continuing resolution (CR) for all remaining programs that extends until December 7, 2018.

This report describes funding and policy provisions affecting HHS grant programs (Budget Brief 18-14 summarized the CR and Budget Brief 18-15 focused on education and labor programs). All HHS programs covered in this brief are either level-funded or receive increases. Additionally, the bill continues programs first funded in FY 2018 and includes a few new grants. Funding for major grant programs under both the CR and the agreement is included in Table 1 at the end of the brief.

Appropriators from the House and Senate released a compromise bill (H.R. 6157) to combine full-year appropriations for Defense and Labor-Health and Human Services-Education (LHHS) with a continuing resolution (CR) for all remaining programs that extends until December 7, 2018. The Senate has adopted the agreement and the House is expected to vote on it in the coming days. Budget Brief 18-14 summarizes the CR portion of the bill.

This brief summarizes provisions in the LHHS bill that affect Department of Education (ED) and Department of Labor (DOL) programs. Provisions affecting the Department of Health and Human Services (HHS) will be addressed in Budget Brief 18-16. Proposed funding for major grant programs under both the CR and the LHHS bill is included in Table 1 at the end of this brief.

Correction: Rather than limiting state Wagner-Peyser Employment Services administrative funding to 20%, the agreement rejected the limitation.

With the start of fiscal year (FY) 2019 less than two weeks away, appropriators from the House and Senate released a compromise bill (H.R. 6157) to combine full-year appropriations for Defense and Labor-Health and Human Services-Education (LHHS) with a partial-year continuing resolution (CR) for all remaining programs. The Senate adopted the agreement yesterday, and the House is expected to vote on the measure next week when it returns from recess.

This brief summarizes provisions of the CR. The LHHS spending bill will be analyzed separately in forthcoming briefs. Proposed funding for major grant programs under both the CR and the LHHS bill is provided in Table 1 at the end of this brief. 

Fiscal year (FY) 2019 appropriations for the Department of Agriculture (USDA) have been approved by the House and Senate appropriations committees, both of which have rejected most of the president’s proposals. This brief summarizes provisions of interest to states.

Fiscal year (FY) 2019 appropriations for the Department of Homeland Security (DHS) have been approved by the House and Senate appropriations committees, both of which have rejected most of the president’s proposals. This brief summarizes appropriations action to date for state and local programs administered by the Federal Emergency Management Agency (FEMA).

The Labor-Health and Human Services (HHS)-Education appropriations bill is one of the largest and includes funding for scores of state and local grant programs. Both the House and Senate appropriations committees have approved their respective fiscal year (FY) 2019 bills. The full Senate plans to take up its bill soon, as part of a two-bill “minibus” along with Defense. The House hasn’t indicated its intentions.

This brief highlights funding and other provisions of interest to states in the two bills. 

The House and Senate appropriations committees have approved their respective Interior-Environment spending bills for fiscal year (FY) 2019. The bills also cover related agencies that oversee state grants, including the Forest Service, National Endowment for the Arts, and National Endowment for the Humanities. This brief highlights funding and other provisions of interest to states in the House and Senate bills.

This brief describes House and Senate action on the Commerce-Justice-Science (CJS) appropriation, which has passed the appropriations committee in both chambers.

The House and Senate appropriations committees have each approved Transportation-Housing and Urban Development (T-HUD) spending bills for fiscal year (FY) 2019. The House bill would increase combined T-HUD appropriations by $1.5 billion compared to FY 2018, while the Senate would increase funding by $1.1 billion. This brief summarizes funding and other provisions of interest in the bills.

As expected, the White House has released a proposal to rescind $15.4 billion in previously appropriated federal spending, which would reduce outlays by an estimated $3 billion. This Budget Brief describes the proposals in the rescission package that affect state and local grant programs.

For the first time in some time, states will see notable increases in many discretionary grant programs in fiscal year (FY) 2018, and almost no funding reductions. In the wake of the Bipartisan Budget Agreement of 2018 (BBA), which raised discretionary spending caps under the Budget Control Act (see Budget Brief 18-04), Congress passed the Consolidated Appropriations Act of 2018 (P.L. 115-141). The bill was signed on March 23, the expiration date of the fifth continuing resolution that had provided FY 2018 funding absent appropriations.

The omnibus is notable for reasons beyond its generous spending. It also creates new grant programs that target funds to areas of congressional interest. The most prominent of these are opioid abuse, infrastructure, school violence, and lead in drinking water.

This Budget Brief describes funding and policy provisions in the omnibus that are relevant to states. Table 1 lists funding for selected grant programs. Compared to FY 2017, states will see a 9% increase in the discretionary programs included on the table; mandatory programs are estimated to increase 3%.

The president’s fiscal year (FY) 2019 budget was released on February 12, 2018, just three days after enactment of legislation that reset discretionary spending caps for both FY 2018 and FY 2019. Accordingly, the president’s budget proposed less discretionary spending than the new caps allow, and an addendum was released to stake a claim to some of—but not all—the additional resources.

This Budget Brief highlights significant provisions of the proposed budget, and incorporates spending requested in the budget addendum.

In the early hours of February 9, Congress passed a fifth continuing resolution (CR) for fiscal year (FY) 2018, which the president signed. This CR—the Bipartisan Budget Act (BBA) of 2018 (P.L. 115-123)—extends funding for six weeks, through March 23. Running more than 600 pages, it incorporates a plethora of policy changes, many of which are important for states. This brief summarizes these provisions, including:

• Increasing the discretionary spending caps
• Extending mandatory sequestration
• Providing additional disaster assistance
• Suspending the debt limit
• Creating a committee on budget process reform
• Extending, implementing, or reauthorizing certain health and human services programs
• Incorporating a host of tax extenders and modifications
• Offsetting a portion of the new spending provided in the bill with cuts and changes to other programs

While not part of the legislative language, an informal agreement was reached as part of the BBA negotiations, under which increased funding for non-defense discretionary programs would be targeted to specific priorities in FY 2018 and FY 2019, including:

• Opioids and mental health ($3 billion/year)
• Infrastructure ($10 billion/year)
• Child care ($2.9 billion/year)
• Veterans’ health ($2 billion/year)
• Higher education ($2 billion/year)
• The National Institutes of Health (NIH, $1 billion/year)

After a three-day federal government shutdown, Congress passed—and the president signed—a fourth continuing resolution (CR) for fiscal year (FY) 2018. The CR (H.R. 195):

• keeps the federal government operating through February 8, 2018

• reimburses states for costs incurred for operating federal programs during the shutdown (this provision also applies to future funding lapses in FY 2018 should they occur)

• extends funding for the Children’s Health Insurance Program (CHIP) and related programs through FY 2023

• suspends the Affordable Care Act (ACA) health insurer tax for calendar year (CY) 2019 (the tax will still be in effect in CY 2018)

The federal government is just hours away from a potential shutdown. Should that occur, state officials will have questions about their ability to operate federal grant programs in the absence of a current appropriation. The answers to those questions vary by program.

FFIS Budget Brief 17-21 provides answers to many such general questions, and the FFIS website includes additional materials from federal sources. This brief provides targeted summary information about some of the largest programs.

This brief identifies key issues that must be resolved before a final budget for fiscal year (FY) 2018 can be enacted. It also highlights other issues that will require congressional attention in the coming weeks and months, outlines the FY 2019 budget process, and identifies potential congressional priorities in 2018.