FY 2013 Appropriations | The Continuing Resolution

Photo of marble columnsUpdated March 27

Congress completed its FY 2013 appropriations work on March 21, 2013 with passage of H.R. 933. Highlights of H.R. 933 follow the background summary below.

BACKGROUND

FY 2013 federal domestic (most state-federal programs) and defense (economic implications for states) discretionary spending were previously subject to a continuing resolution (CR). Because the Congress did not finish any of its 12 annual appropriations bills by Sept. 30, 2012, the House and Senate agreed to a CR that kept all discretionary programs funded at their FY 2012 levels for FY 2013 plus 0.612 percent (the increase authorized by spending caps established by the Budget Control Act of 2011) through March 27, 2013. To resolve this issue, the House and Senate introduced and passed H.R. 933 that will fund the federal government until Sept. 30, 2013, the end of the federal fiscal year.
 
HIGHLIGHTS OF H.R. 933.

(1) Reduces discretionary spending by $85 billion to accommodate sequestration. This wipes out the 0.612% increase mentioned above for the remainder of the fiscal year. States can expect most domestic discretionary accounts not exempt from sequestration to be reduced by five percent for the remainder of FY 2013 and defense discretionary accounts to be reduced by nearly eight percent for the same time frame.

(2) Extends authorization and funding for the Temporary Assistance for Needy Families (TANF) block grant through September 30, 2013.

(3) Provides flexibility to accomplish sequestration to programs housed in the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, State and Veterans Affairs. All other departments and agencies must follow the stricter application of sequestration called for in the 2011 Budget Control Act.

(4) Allows transportation funding to track MAP-21, thereby protecting these programs from sequestration.

(5) Reduces funding for the Women, Infants and Children (WIC) program, State Criminal Alien Assistance Program (SCAAP),  Byrne Justice Assistance Grants and the State Homeland Security Grant Program (SHSGP) by one percent or less due to changes made by the Senate and accepted by the House.

(6) Reduces funding for Economic Development Assistance (EDA), Refugee Assistance, the Clean Water and Safe Drinking Water State Revolving Funds (SRFs), Juvenile Accountability Block Grant and State Unemployment Administration by amounts exceeding five percent due to Senate changes and other factors accepted by the House.

(7) Adds $55 million to forestall projected furloughs of food inspectors.

A Federal Funds Information for States (FFIS) report highlighting discretionary and mandatory program funding differences between FY 2012 and FY 2013 can be viewed here.