Congress Releases FY23 Omnibus Funding Bill
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Congress Releases FY23 Omnibus Funding Bill

Brownstein Client Alert, Dec. 20, 2020

The Senate Appropriations Committee released the contents of a bipartisan $1.7 trillion omnibus package for fiscal year (FY) 2023 early on Dec. 20. Topline funding levels were agreed to last week as part of a deal to pass a one-week continuing resolution (CR) extending government funding through Friday, Dec. 23. Final passage is expected by Friday night but no government shutdown is expected if a House vote is slightly delayed into Saturday. A major winter weather event is expected to disrupt travel through many parts of the United States later this week and is creating additional pressure on lawmakers hoping to get home for the holidays.

Defense spending increased by $76 billion, up approximately 10% from FY2022 levels, to reach $858 billion, and domestic spending grew by $42.5 billion, or 5.5%, to $772.5 billion. The 12-bill FY23 package also includes $44.9 billion in additional aid for Ukraine and $40.6 billion for drought and natural disaster relief, but President Biden’s request for $10 billion in COVID-19 response funding was left out. Several previously enacted bills will receive implementation funding through the omnibus, such as $58.7 billion for programs under the Infrastructure and Investment and Jobs Act (P.L. 117-58), $1.8 billion to the CHIPS and Science Act of 2022 (P.L. 117-167), and $5 billion for the Cost of War Toxic Exposures Fund to implement the PACT Act (P.L. 117-168). The latter is part of the $118.7 billion allocated for veterans’ medical care, a $21.7 billion increase from FY2022.

Several tax extenders, such as the expanded child tax credit and research and development tax credits, were notably absent from the bill after efforts to broker a deal failed. However, a compromise SECURE 2.0 retirement package, two-year extensions of the low-volume hospital (LVH) adjustment program and Medicare-dependent hospital (MDH) program, and a two-year delay of the 4% Medicare sequester cut under PAYGO were included. The bill will also stave off 2.5% of a scheduled 4.5% cut to the Medicare physician fee schedule in 2023, and 1.25% of cuts in 2024. Versions of a handful of extraneous bills like the Electoral Count Reform and Presidential Transition Improvement Act (S. 4573) and the No TikTok on Government Devices Act (S. 1143) were attached to the package, which will be the last legislative vehicle of the 117th Congress.

Other notable provisions include $47.5 billion for the National Institutes of Health (NIH), $9.2 billion for the Centers for Disease Control and Prevention (CDC), $10 billion for the Environmental Protection Agency (EPA), $8 billion for the Child Care and Development Block Grant, $6.4 billion for border security, $1.6 billion for the State Opioid Response Grant, $1 billion for the Mental Health Block Grant, $324 million for maternal health services, and $130 million for Children’s Mental Health Services.

The omnibus increased overall funding across all 12 appropriations bills compared to FY2022 levels. Topline funding for each funding category is included below, and additional details can be found here and here.

 

Appropriations Category

Proposed FY2023 Funding

Change from FY2022

Agriculture, Rural Development, Food and Drug Administration, and Related Agencies

$25.5 billion

+$355 million

Commerce, Justice, Science, and Related Agencies

$83.9 billion

+$8.1 billion

Defense

$797.7 billion

+$69.3 billion

Energy and Water Development and Related Agencies

$54.7 billion

+$1.8 billion

Financial Services and General Government

$27.7 billion

+$2.1 billion

Homeland Security

$60.7 billion

+$3.2 billion

Interior, Environment, and Related Agencies Appropriations

$40.5 billion

+$2.5 billion

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

$209.9 billion

+$14.8 billion

Legislative Branch

$6.9 billion

+$975 million

Military Construction, Veterans Affairs, and Related Agencies

$303.8 billion

+$34 billion

State, Foreign Operations, and Related Programs

$61.8 billion

+$3.8 billion

Transportation, and Housing and Urban Development, and Related Agencies

$91 billion

+$9.9 billion

 


THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING THE DATAILS OF THE OMNIBUS BILL. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTION.

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