House Republicans and White House negotiators reached a deal over the weekend on a legislative package that would suspend the debt ceiling until January 2025, set limits on federal spending in fiscal years (FY) 2024 and 2025 for defense and non-defense programs, rescind some unspent COVID relief funding, change some Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) rules that would limit eligibility for some, and reallocate some of the Internal Revenue (IRS) funding provided in the Inflation Reduction Act. Congressional leaders in the House and Senate are now working to pass H.R. 3746, The Fiscal Responsibility Act of 2023, before the United States defaults on June 5.
Notably, the Fiscal Responsibility Act will place caps on FY 2024 and FY 2025 non-defense funding, which includes funding for education and workforce development programs. After a number of adjustments, the deal will hold non-defense spending roughly flat in FY 2024 and increase it by 1% in 2025. If Congress does not complete this year’s appropriations process before January 1, 2024, the bill would also enact an automatic continuing resolution which would prevent a government shutdown by implementing a 1 percent across-the-board funding cut from the previous fiscal year.
Both the House and Senate Appropriations Committees were delayed in marking up their FY 2024 Labor, Health and Human Services, Education and Related Agencies appropriations bills because of the debt limit impasse. Once the debt limit bill has been passed, appropriators will resume work on an appropriations bill that will include funding for CTE programs. Their jobs will be much more challenging though, and it will be very difficult to secure any increases for any education or workforce programs under these caps.
Despite these challenges, ACTE is closely monitoring developments in the appropriations process, and we will keep you updated so that you can continue to advocate for the highest possible levels of CTE spending within this budget agreement. Please let us know if you have any questions!