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OUR PERSPECTIVES

FY25 Budget Anomalies Highlights


 

This week, the White House Office of Management and Budget delivered its list of fiscal year 2025 budget anomalies to Congress. Rather than uniformly continuing Fy24 funding levels across the federal government, the administration has provided a desired list of select programs that should receive increased funding in the pending Continuing Resolution that needs to be negotiated by September 30th to prevent a government shutdown.

 

In addition to stating a preference that the CR only last through mid-December (rather than March as House Speaker Mike Johnson has proposed), the 30-page document outlines desired funding increases across 11 of the 12 congressional subcommittee accounts (all but the Legislative Branch account), as well as a set of increases for general purposes.

 

Some of the (expected) highlights include requests for an additional $15.4 billion to help the Social Security Administration address staffing and customer service issues and an additional $12 billion to alleviate a major shortfall medical care at the Department of Veterans Affairs. There’s also language providing FEMA the authority to obligate Disaster Relief Fund funding at a faster rate in order to keep up with disasters during the CR period.

 

In the Agriculture-Rural Development-FDA title, the administration is seeking $7.7 billion to ensure that women, infants and children can continue receiving federal food assistance through the WIC program. There’s also a request for language to extend authorities for the Livestock Mandatory Reporting program and to provide USDA with additional flexibility to meet the demand for direct and guaranteed farm ownership loans.

 

For Energy and Water, there’s a request to repurpose unobligated Infrastructure Investment and Jobs Act construction funding so that the Army Corps of Engineers is able to complete certain projects in FY25.

 

In addition to the FEMA DRF spending language, there’s a request to provide the DHS (specifically the Coast Guard) with authority to procure a commercially-available polar icebreaker. Also, notable given recent events is a request for authority for the Secret Service to provide increased security during campaigns during the CR period. There’s also a request for almost $2 billion for the procurement of two Virginia-class submarines in the Defense section.

 

For the Interior account, requested anomalies include Forest Service authority to obligate Wildland Fire Management funding for suppressions operations in the (unfortunately likely) event of new wildfires during the CR period. There’s also a request for over $100 million for the Indian Health Service for staffing and operations at newly opened Tribal Health Facilities. There’s also an expansion of Good Neighbor Authority so that States may use their own contracting procedures in carrying out cooperative agreements and contracts with USDA for landscape restoration work.

 

Across the remaining accounts, there are a range of requests for things like additional funding for the Department of Education to administer student aid, refugee resettlement, deferred military construction projects, and more.

 

Upon Congress’ return next week, lawmakers will have three weeks to pass a CR that prevents a shutdown on Oct. 1. While conservatives in the House and Senate are unlikely to back many White House’s requests, like additional funding for student aid administration and Ukraine support, there’s a strong chance that the administration will get its way on things like VA medical support, a Social Security supplement, and wildfire suppression funding given bipartisan support for these issues.

 

The more difficult question relates to the timing of the CR. House conservatives are currently pushing for a funding patch through March and to attach the funding to the SAVE Act, which requires proof of citizenship before registering to vote in a federal election. Democrats have already rejected that plan, preferring to back the President’s preference to fund the government until December and produce a final product before the end of the calendar year. While an early FY25 shutdown is definitely possible, the most likely outcome is that House and Senate negotiates reach an agreement at the 11th hour to avoid complications a month before elections.

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