October 31, 2019

H.R.2740 – Minibus Appropriations: LHHS-Defense-E&W

NOTEWORTHY

Background: The federal government is currently operating under the terms of a continuing resolution that expires November 21. To date, none of the 12 annual appropriations bills has been enacted into law. Unless the House and Senate can complete action on all 12 spending bills for 2020 before the deadline, another continuing resolution will be necessary.

Floor Situation: On October 17, Leader McConnell filed cloture on the motion to proceed to H.R.2740. This vote will occur after the Senate completes its work on S.3055. Sixty votes are required to invoke cloture. A September cloture vote on the motion to proceed to HR 2740 failed, 51-44.

Executive Summary: H.R.2740 passed the House as a four-bill minibus containing subcommittee appropriations for (1) Labor, Health and Human Services, Education; (2) Defense; (3) State and Foreign Operations; and (4) Energy and Water. The House subcommittee allocations of budget authority and outlays that underpin the House spending bill do not reflect the contours of the most recent discretionary cap deal.

This notice provides a summary of the Senate version of three of those bills: (1) Labor, Health and Human Services, Education, as reported by the subcommittee; (2) Defense, S.2474; and (3) Energy and Water, S.2470.

OVERVIEW OF THE ISSUE

Each year, Congress must consider 12 appropriations measures that provide discretionary funding for the federal government’s numerous activities – e.g., national defense, education, and homeland security – and agency operations. Generally, these bills provide one-year money that expires at the end of the federal fiscal year, September 30. So far, the House and Senate have not agreed to any appropriations bill for fiscal year 2020, which began October 1. As a consequence, the federal government is operating under the terms of a continuing resolution, which will expire November 21. Unless the House and Senate can complete action on all 12 spending bills for 2020 before the deadline, another continuing resolution will be necessary.

H.R.2740 passed the House as a four-bill minibus containing subcommittee appropriations for (1) Labor, Health and Human Services, Education; (2) Defense; (3) State and Foreign Operations; and (4) Energy and Water. The House subcommittee allocations of budget authority and outlays that underpin the House spending bill does not reflect the contours of the most recent discretionary cap deal.

This notice provides a summary of the Senate version of three of those bills: (1) Labor, Health and Human Services, Education, as reported by the subcommittee; (2) Defense, S.2474; and (3) Energy and Water, S.2470.

The tables included in each section compare 2019 enacted discretionary spending (2019 regular appropriations plus the two supplementals) with the Senate’s 2020 proposed levels. The president’s request and House-passed amounts are omitted because they do not reflect the revised budget parameters contained in the Bipartisan Budget Act of 2019. BBA19 increased the 2020 post-sequester defense discretionary spending cap by $101 billion and nondefense discretionary cap by $78 billion.

In this notice, discretionary spending is broken down into two categories: base and cap-adjusted. Base funding refers to amounts of budget authority that count toward the limits of defense and nondefense discretionary spending imposed by budget law. Cap-adjusted spending refers to amounts that are permitted above those limits. Specifically, the Balanced Budget and Emergency Deficit Control Act (as amended) allows cap adjustments for amounts designated for overseas contingency operations, natural disasters, emergencies, certain program integrity efforts, wildfire suppression, and the 2020 census.

NOTABLE BILL PROVISIONS

Labor, Health and Human Services, Education, and Related Agencies

 

Comparison of Discretionary Spending: Labor, Health and Human Services, Education

Budget Authority ($M)

HR 2740

Note: Table does not include funding for CURES which is exempt from the caps.

Source: CBO Status of Senate Appropriations for 2019, 2020

 

The LHHS bill funds the programs, activities, and administration of the Department of Labor, the Department of Health and Human Services – except for the Food and Drug Administration, the Indian Health Service, and the Agency for Toxic Substances and Disease Registry – the Department of Education, and more than a dozen related agencies, including the Social Security Administration.

Department of Labor

The bill provides $12.1 billion in discretionary appropriations for the department, which is $28 million more than in fiscal year 2019.

  1. $2.8 billion in formula grants to states for employment and training activities for adults, youth, and dislocated workers.

  2. $170 million for federal registered apprenticeship programs, $10 million more than fiscal year 2019.

  3. $1.7 billion for Job Corps, which provides youth with career-specific training at centers around the country. DOL must notify Congress before it closes, deactivates, or starts a pilot project at a Job Corps center.

  4. $89.5 million for the YouthBuild program’s education and skills development activities for low-income youth who are not working or in school.

  5. $3.4 billion for state agencies administering unemployment insurance and employment services.

  6. $306 million for Veterans Employment and Training Service activities, or $6 million more than fiscal year 2019. Part of the increase is for activities intended to reduce occupational licensing and credentialing barriers for military spouses.

  7. $559 million for the Occupational Safety and Health Administration.

  8. $615 for the Bureau of Labor Statistics.

  9. Ends the Workforce Data Quality Initiative, which the president’s budget also proposed to eliminate.

  10. $453 million for the Pension Benefit Guaranty Corporation’s administrative expenses.

Department of Health and Human Services

Fiscal year 2020 discretionary funding for HHS totals $93.4 billion, an increase of $2.9 billion. The bill upholds the Hyde domestic abortion ban and the Weldon conscience protection amendment, restricting abortion funding. Additionally, the bill maintains the Dickey amendment, including no new provisions related to gun research.

Health Resources and Services Administration

  1. $1.6 billion for Community Health Centers.

  2. $120 million to fund the president’s “Ending the HIV Epidemic” initiative, of which $70 million is provided for Ryan White HIV/AIDs program to increase treatment and the use of antiretroviral therapy for people living with HIV.

  3. $1.1 billion for the Bureau of Health Professions.

  4. $17.3 million for the National Cord Blood Inventory, an increase of $1 million.

  5. $10.2 million for the Office of Pharmacy Affairs.

  6. $311 million for rural health programs, including $110 million for opioid response. 

  7. $26.5 million for the Office for the Advancement of Telehealth.

  8. $286.5 million for the Title X Family Planning program, level with 2019 funding. Title X funding for abortions is restricted, and pregnancy counselling services are required to be “non-directive.”

  9. $340 million for Children’s Hospitals Graduate Medical Education program, an increase of $15 million over fiscal year 2019 funding levels.

  10. The Health Careers Opportunity Program is eliminated, as proposed in the president’s budget.

Centers for Disease Control and Prevention

  1. $7.5 billion for the CDC.

  2. $140 million for CDC activities to support the president’s ending the HIV epidemic initiative.

  3. $850.2 million to the Office of Public Health Preparedness and Response.

  4. $10 million for the BOLD initiative, a public health response addressing Alzheimer’s disease and establishing Centers of Excellence focused on early detection and diagnosis of the disease.

National Institutes of Health 

  1. $42.1 billion for NIH, an increase of $3 billion from fiscal year 2019 levels.

    1. $350 million increase for Alzheimer’s research, for a total of $2.8 billion. 

    2. $500 million to the BRAIN Initiative, an increase of $71 million from 2019 appropriation, to advance innovative technologies aimed at better mapping and understanding the human brain.

    3. $500 million, a $161 million increase, for the All of Us precision medicine initiative.

    4. $50 million to fund the pediatric cancer data initiative, as requested by the president’s budget.

    5. Increases funding for buildings and facilities on the NIH Bethesda campus by more than $100 million to address a backlog in maintenance on campus.

    6. $492 million, available until expended, as outlined by the 21st Century Cures Act, to fund the NIH Cures Innovation Fund, which advances biomedical research.

Substance Abuse and Mental Health Services Administration

  1. $5.9 billion for SAMHSA.

  2. $1.66 billion for mental health services.

  3. $103 million for Project AWARE, to increase awareness of mental health issues among school-aged youth and connect families with services.

  4. $17.2 million for suicide prevention, with funds targeting training programs for National Suicide Prevention Lifeline counselors.

  5. $722.6 million for the Mental Health Block Grant.

  6. $125 million for the Children’s Mental Health Services program.

  7. $200 million for Certified Community Behavioral Health Centers, an increase of $50 million, to expand behavioral health and substance use disorder prevention and treatment services.

Agency for Healthcare Research and Quality is funded at $256 million.

Centers for Medicare and Medicaid Services

  1. $182 million for reducing the Medicare appeals backlog.

  2. $5.3 billion for the Child Care Development Block Grant, a $25 million increase.

  3. No new funds for Obamacare in fiscal year 2020. Continues to restrict funding for Obamacare’s Risk Corridor Program; requires CMS notify Congress in advance of any ACA-related data or grants information provided to the public; and requires publication of workforce numbers needed to administer ACA provisions. 

  4. Rescinds $9.4 billion in CHIP-related spending: $3.3 billion in unobligated budget authority from the Children’s Health Insurance Fund and $6.1 billion from the Child Enrollment Contingency Fund. Both rescissions are ChIMPs.

Administration for Children and Families 

  1. $26.8 million for Victims of Trafficking programs, level with 2019 funding. 

  2. $5.3 billion for Child Care and Development Block Grant, an increase of $25 million to assist states in improving child care programs.

  3. $10.1 billion for Head Start, level with 2019 funding. $50 million is targeted at funding staff recruitment and retention and ensuring quality services are provided to enrollees.

Administration for Community Living is funded at $2.2 billion.

Office of the Secretary

  1. $561.7 million for the Biomedical Advanced Research and Development Authority.

  2. $260 million for Pandemic Influenza Preparedness.

  3. $735 million for Project BioShield.

Related Agencies

  1. $11.5 billion for the Social Security Administration, of which $1.6 billion is targeted at preventing waste, fraud, abuse, and improper payments in the Social Security, Medicare, and Medicaid programs. These efforts are estimated to save $9.6 billion over 10 years in taxpayer dollars.

Department of Education

The bill provides $71.4 billion in discretionary appropriations for the department.

  1. $15.9 billion for Title I grants to provide education services in low-income schools and districts, level with the fiscal year 2019 level.

  2. $1.2 billion for student support and academic enrichment grants, a $50 million increase from fiscal year 2019. These grants can be used for a variety of activities, including school safety.

  3. $105 million for safe schools national activities, a $10 million increase from the current level.

  4. $460 million for charter schools, or $20 million more than fiscal year 2019.

  5. $12.4 billion for IDEA grants, which provides education and related services for children with disabilities. The amount is level with fiscal year 2019.

  6. $22.5 billion in current year discretionary funding. Increases the maximum Pell Grant award a student could receive in the 2020-2021 academic year by 2.2%, to $6,330. Appropriations acts have increased the discretionary part of the Pell Grant program since automatic increases in the mandatory part of the program stopped in 2017. Provides and maintains year-round Pell eligibility to enable students to stay enrolled throughout the year.

  7. Rescinds $1.3 billion in discretionary unobligated Pell Grant balances.

  8. $1.3 billion for career and technical education grants to states, the same as in fiscal year 2019.

  9. $1.8 billion for the department’s student aid administration activities, which involves servicing federal student loans. This is $100 million above fiscal year 2019.

  10. $100 million for the temporary expanded public service loan forgiveness program, which is for some student borrowers who would have been eligible for forgiveness but were repaying in the wrong plan. Congress has provided $700 million for this program since 2018, and the department has spent about $41 million as of the end of fiscal year 2019. 

Related Agencies

  1. $224 million for the Institute of Museum and Library Sciences, a $2 million increase from fiscal year 2019.

  2. $274 million for the National Labor Relations Board, level with fiscal year 2019.

S.2474 - Department of Defense

Comparison of Discretionary Spending: Defense

Budget Authority ($M)

HR 2740

Source: CBO Status of Senate Appropriations for 2019, 2020

 

 

(Total amounts below include base and overseas contingency operations funding)

Pay Raise and Military Personnel  

  1. $147.5 billion for military pay, supporting a 3.1% pay raise for troops.

  2. $249.2 million increase in military personnel funding for Operation Guardian Support, the National Guard’s mission to assist Customs and Border Protection on the nation’s southern border. 

Operation and Maintenance

  1. $254 billion for operation and maintenance, a $10.8 billion increase over fiscal year 2019.

  2. Funds 31 Brigade Combat Teams, five Army security force assistance brigades, and provides for 25 Combat Training Center readiness rotations.

  3. $781 million increases in funding for Navy ship depot maintenance.

  4. $72.4 million for Operation and Maintenance of the new Space Force.

Procurement

  1. $144 billion for procurement of weapon systems and other programs.

  2. $9.3 billion for 96 F-35 Joint Strike Fighter aircraft:$1.7 billion for 24 F/A-18E/F Hornet aircraft for the Navy. Recommends $992 million for eight F-15EX fighter aircraft for the Air Force with six of these aircraft being funded with procurement appropriations and two aircraft funded with research and development appropriations.

    1. $5.3 billion for 60 F-35A Joint Strike Fighters for the Air Force, an increase of 12 aircraft over the budget request;

    2. $1.8 billion for 16 F-35B short-takeoff vertical landing Joint Strike Fighters for the Marine Corps; an increase of six aircraft over the budget request; and

    3. $2.2 billion for 20 F-35C carrier variant Joint Strike Fighters for the Navy.

  3. $24.4 billion for shipbuilding to fully fund 14 ships.

  4. $1.7 billion for the upgrade of 165 Army M1A2 Abrams tanks.

  5. $1.5 billion for Army and Marine Corps Joint Light Tactical Vehicles.

  6. $806.8 million for remanufacture of 48 AH-64 Apache Block IIIA helicopters. 

  7. $850 million for the National Guard and Reserve Equipment program.

Research and Development

  1. $105.1 billion for research and development, $9 billion above the fiscal year 2019 level.

  2. $2.9 billion in research and development for the new B-21 long-range strike bomber.

  3. Increases funding above the president’s budget request in areas identified as high priority for DOD, including cyberspace, 5G, hypersonic weapons, directed energy, and other enhancements.

  4. $1.0 billion in medical research for priorities including ALS, breast cancer and other cancers, traumatic brain injury, chronic pain, orthotics, and prosthetics.

Allies and Partners

  1. $3.7 billion for the Afghanistan Security Forces Fund.

  2. $400 million for the Baltic nations for a regional air defense system.

  3. $500 million for cooperative missile defense programs with Israel. Includes $250 million for Ukraine.

Transfer Authority

Provides DOD with $4 billion in general transfer authority under section 8005, and $2 billion in special transfer authority under section 9002, the same transfer amount available in fiscal year 2019 appropriations for the Pentagon. This is consistent with the Bipartisan Budget Act of 2019.

Disaster Funding

$1.7 billion for disaster relief related to the consequences of hurricanes, flooding, and earthquakes occurring in fiscal year 2019.

S. 2470 – Energy and Water Development and Related Agencies

Comparison of Discretionary Spending: Energy and Water

Budget Authority ($M)

HR 2740

Source: CBO Status of Senate Appropriations for 2019, 2020

The Energy and Water Development and Related Agencies appropriations bill provides funding for civil works projects of the U.S. Army Corps of Engineers, the Department of the Interior’s Bureau of Reclamation and Central Utah Project, the Department of Energy, the Nuclear Regulatory Commission, the Appalachian Regional Commission, and several other independent agencies. DOE typically accounts for about 80% of the bill’s funding.

Spending in this bill totals $48.9 billion, $4.2 billion above the 2019 enacted level and $10.8 billion above the budget request. Notable provisions in the bill include:

  1. $7.8 billion for the Army Corps of Engineers, which is $752 million above the 2019 enacted level and $2.8 billion above the budget request.

  2. $7.2 billion for the Department of Energy Office of Science, $630 million above the 2019 enacted level and $1.7 billion above the budget request. This includes significant investments in clean energy.

  3. $800 million for technologies to advance fossil energy resource research and development.

  4. $1.5 billion for nuclear energy research and development.

ADMINISTRATION POSITION

As of the date of publication, a Statement of Administration Policy was not available.

COST

CBO has not provided an official estimate for H.R.2740, but the agency does track the discretionary budgetary effects of 2020 appropriations here.