House and Senate Leaders Reach Agreement to Complete the FY 2024 Appropriations Bills
Senate Majority Leader Chuck Schumer (D-NY) and House Speaker Mike Johnson (R-LA)
reached an agreement on final topline budget numbers that will allow Congress
to complete action on the 12 appropriations bills for the current fiscal year,
FY 2024. The White House has expressed its support for the compromise.
The agreement does not change the statutory caps for defense and non-defense discretionary
(NDD) spending that were enacted in the Fiscal Responsibility Act (FRA), which
reduced overall NDD spending by about $40 billion, or 5.7%. Defense discretionary
spending increased by nearly $28 billion, or 3.2%. However, as part of the FRA,
there were “side agreements” – or, in essence, handshake agreements –
that certain budget management mechanisms would be used as they are every year.
These tools often lead to savings in one area that allow funds to be provided in another.
This most recent agreement renegotiates those “side agreements,”
reducing the number of budgetary mechanisms that will be used to fund other areas.
However, since programs that fund dental, medical, and nursing education and training
programs were generally not cut below the FY 2023 level (they were not increased
either as we had requested), but fared better than most other non-health care
workforce programs, we would expect those programs to remain flat funded in FY 2024 at the FY 2023 level.
This is not the best news, but it is preferrable to an agreement that included
deeper cuts than those already anticipated, which was the goal of some House Republican
members. This Schumer/Johnson deal is not home free, as several House Republicans
have expressed opposition. But the Democratic members and Republican moderates
believe this is the best opportunity to avoid a government shutdown and will likely support it.