As the clock ticks closer to the fiscal year 2024, the looming threat of a government shutdown becomes more palpable. Welcome to the budget brinkmanship of 2023, where the House and Senate are racing against time to secure federal funding before the September 30 deadline.
The pressure is mounting with a limited number of legislative days left this month. Surprisingly, none of the essential appropriations bills have made it through both chambers, with only the Military Construction and Veterans Affairs bill passing the House.
Currently, we're looking at three potential outcomes:
- Congress Stalls, Government Shuts Down: If Congress fails to act, the government will shut down at midnight on September 30.
- Partial Funding with Continuing Resolutions (CRs): Congress might pass one or more CRs, extending FY2023 funding at current levels to a later date, potentially pushing the shutdown threat to the holiday season.
- Entire Appropriations Passage: Congress passes all 12 separate appropriations bills, ensuring the government remains funded through September 30, 2024.
Diving Deeper into the Scenarios:
- No Appropriations by September 30: Simply put, no funding means a government shutdown until an agreement is reached.
- Partial Appropriations Passage: This would result in a partial government shutdown. Funded agencies would continue operations, while the unfunded ones would halt. However, Congress can use a CR to temporarily fund these agencies at FY2023 levels.
- Full Continuing Resolution: This is essentially a temporary fix, maintaining previous funding levels while Congress works on the full-year appropriations bills. The nature of the CR can vary:Clean CR: A straightforward extension of FY2023 funding. While many Democrats and some Republicans support this, a significant number of House conservatives oppose it based on the current funding levels.Conditional CR: Some conservatives might push for policy changes to FY2023 funding levels to prevent a shutdown. This could create friction among Democrats and possibly Senate Republicans.CR Duration: The length of a CR is still up in the air. Historically, CRs have been used as a pressure tactic, with expiration dates set just before major holidays.
If Congress fails to finalize a permanent funding bill after a CR, they might need another CR or face another shutdown. Moreover, if all appropriations bills aren't signed by the end of 2023, an automatic 1% cut to discretionary spending will be triggered.
FAQs on the Funding Debate:
- What happens during a shutdown? Essential employees continue working without pay, while non-essential staff are furloughed. Although benefits like Social Security and Medicare remain unaffected, some programs funded through appropriations, like WIC and school meals, might be halted.
- What about additional funding requests? President Biden has requested an additional $40 billion for various purposes, including Ukraine support and disaster relief. This "supplemental appropriations request" is typically handled outside the regular funding process. However, some conservative members have expressed reservations about continued funding for Ukraine.
As we navigate this intricate maze of federal funding, it's crucial to stay informed and understand the potential implications of each scenario. The coming days will undoubtedly be filled with negotiations, debates, and decisions shaping the fiscal landscape for the upcoming year.
