Article
Federal Appropriations for FY24
After months of negotiation and four stopgap measures, President Biden signed a second “minibus” package – totaling $1.2 trillion – on March 23, 2024. The measure funded the Defense and Homeland Security departments and increased pay for troops and federal employees by 5.2%.
The first tranche of bills was enacted on March 9, 2024, and includes a $2.3 billion boost for veterans’ medical care and a $1 billion increase for the Special Supplemental Nutrition Program for Women, Infants, and Children.
Appropriations overview
First FY24 minibus
- Agriculture, rural development, and the Food and Drug Administration: Includes mandatory nutrition programs and international food aid.
- Commerce, Justice, and Science: Includes NASA and the National Science Foundation.
- Energy and Water Development: Includes nuclear weapons. Water refers to the Army Corps of Engineers and some Interior Department programs.
- Interior and Environment: Includes the EPA, USDA’s Forest Service, HHS’s Indian Health Service, Smithsonian, Kennedy Center, and the National Endowment for the Arts.
- Military Construction and Veterans Affairs: Funds the construction of military bases and housing as well as VA benefits, administration, and claims processing.
- Transportation and Housing and Urban Development: Allows DOT to spend tax revenue from highway and air travel. Funds HUD programs.
Second FY24 minibus
- Defense: Includes most DoD funding as well as classified funding for intelligence programs; excludes military construction.
- Financial Services and General Government: Includes the IRS, financial regulators, judiciary, the GSA, D.C. government, and the White House.
- Homeland Security: Covers only the Department of Homeland Security (DHS) – Labor, Health and Human Services, and Education: The largest nondefense appropriation; it includes the Social Security Administration and National Labor Relations Board.
- Legislative Branch: Sets the budget for Congress itself, as well as the Library of Congress, GAO, CBO, and CRS.
- State and Foreign Operations: Funds the State Department and foreign aid programs.
What is the breakdown of FY24’s discretionary spending?
The $1.6 trillion in discretionary spending for FY24 is split between $842 billion for defense programs and $758 billion for nondefense activities, reflecting respective 3% and 7% boosts from FY23 enacted levels.
However, during their negotiations, lawmakers struck a side deal to provide more nondefense money beyond the nondefense discretionary spending cap, which contributed to delays in passing the budget.
Despite increases in spending, the defense and nondefense dollar amounts are in alignment with caps set under the Fiscal Responsibility Act – the 2023 debt ceiling agreement that established top level discretionary spending limits for FY24 and FY25.
What partisan concessions are included in the FY24 federal budget?
After months of drawn-out negotiations, both parties walked away with political wins.
Republicans celebrated provisions to increase the number of border patrol agents, prohibit the government from banning gas stoves, ban U.S. embassies from displaying LGBTQ+ Pride flags, and halt funding to the United Nations Relief and Works Agency. The bill also maintains the Hyde Amendment, which restricts funding for abortions except in cases of rape, incest, or threat to the woman’s life.
Meanwhile, Democrats secured funding increases for childcare and educational programing, Title X family planning and other reproductive services, mental health and substance abuse resources, as well as cancer and Alzheimer’s disease research. Democratic leaders also extolled the spending package’s authorization of 12,000 new visas for Afghans who helped the U.S. during the Afghanistan War.
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What are the key policy priorities for FY24 appropriations spending?
Defense
The Pentagon and defense-related activities received $824.3 billion in discretionary funding, which is $26.8 billion more than FY23 enacted levels. The total amount in the bill was $825 billion when including mandatory funds.
Minibus highlights:
- Provide $9.8 billion for 86 F-35s and $1.8 billion for 10 additional P-8A surveillance aircraft
- Provide $7.1 billion for two Virginia-class boats
- Authorize multiyear procurement for six munitions programs and submarines
- Support a 5.2% pay increase for service members and the civilian workforce
Key riders omitted:
- Bar DOD’s policy providing travel allowance for service members to obtain abortion services
- Block funds to implement climate-related contractor disclosure rule
Energy and water
The Energy Department, Army Corps of Engineers, and related agencies received $58.2 billion in discretionary funding for FY24. That amount was $11.1 billion more than FY23 and $1.7 billion less than what was requested.
Minibus highlights:
- Require drawdown and sale of 1 million barrels of oil from Strategic Petroleum Reserves, close North Gasoline Supply Reserve
- Transfer $2.7 billion in unobligated funds from 2023 bipartisan infrastructure law to boost domestic nuclear fuel production
- Bar Russian or Chinese citizens from accessing Energy Department nuclear weapons facilities without congressional notification
Key riders omitted:
- Rescind $4.5 billion from Democrats’ climate, health, and tax law for home electrification rebates
- Bar energy standards enforcement for gas stoves
Financial services
Federal departments and agencies funded by the Financial Services and General Government appropriations bill — which also covers Washington, D.C., and the federal judiciary — received $26.1 billion for FY24. The amount is $1.1 billion less than FY23 enacted levels.
Minibus highlights:
- Rescind $10.2 billion from Democrats’ climate, health, and tax law for IRS
- Provide $200 million for construction of the new FBI headquarters without specifying a location
- Ban funds for the Consumer Product Safety Commission to implement or enforce a rule to ban gas stoves as a product class
- Require Office of Management and Budget to report on federal agency plans for return to work and telework policies
Key riders omitted:
- Bar funds for the IRS to develop free tax filing software before seeking congressional approval
- Bar funds to states and cities that allow noncitizen residents to vote in federal elections
Homeland security
The Homeland Security Department (DHS) received $61.8 billion in base discretionary funds for FY24, a $1.1 billion increase from FY23. It also received $20.3 billion in disaster relief money, bringing total discretionary funding for the department to $89.8 billion.
Minibus highlights:
- Provide $3.4 billion for custody operations to fund detention bed level of 41,500
- Fund 22,000 border patrol agents, an increase of 2,000 compared with FY23
- Provide $283.5 million to acquire new border security technology, including surveillance towers with AI capabilities
Key riders omitted:
- Allocate $2.1 billion for border wall construction; require DHS to obligate funding for the wall within 120 days of enactment
- Bar funds for the Shelter and Services Program, which reimburses local governments that support migrants released from DHS custody
Interior and environment
The Environmental Protection Agency (EPA), Interior Department, and other land management agencies received $38.6 billion in discretionary funding.
Minibus highlights:
- Provide additional $2.65 billon for wildfire suppression outside spending caps
- Extend a waiver on pay caps for firefighters engaged in wildfire suppression through FY24
- Provide $2.8 billion for EPA clean water and drinking water funds, including $1.4 billion in earmarks
Key riders omitted:
- Rescind $7.8 billion from EPA greenhouse gas fund
- Block several climate-focused rules from the Biden administration
- Require the Interior Department to resume onshore and offshore oil and gas lease sales
Transportation and housing
The Transportation and Housing and Urban Development departments received $89.5 billion in discretionary funding for FY24. Total budgetary resources in the measure, including money from highway trust fund programs, were $176.9 billion, $2.3 billion more than FY23 and $1.4 billion less than requested.
Minibus highlights:
- Eliminate or reduce earmarked funding for some LGBTQ causes
- Bar DOT from enforcing Covid-19 mask mandate
- Extend Rental Assistance Demonstration Program through FY29
Key riders omitted:
- Block rules requiring speed-limiting devices for trucks, highway greenhouse gas reduction plans
- Block funds for California high-speed rail project
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