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Keeping the Federal Government Running

Updated: Oct 1, 2022

President Biden signed into law (September 30) a Continuing Resolution (CR) to temporarily enable the financing of the Federal Government for the start the new, FY 2023 fiscal year (section-by-section summary).

Overall, this CR will permit Federal agencies to operate at FY 2022 funding levels, with some special considerations, through December 16, nearly the first full quarter of FY 2023.

Some of the key special considerations of the bill include:

  • More than $16 billion in resources related to Ukraine. Nearly $12.4 billion of funding covers support for Ukraine including $4.5 billion for additional direct country budgetary support, $3.0 billion for the Ukraine Security Assistance Initiative, $2.8 billion for DOD to offset increased costs tied to an increased operational tempo in the European theater; $2 billion towards the cost of replenishment of U.S. Defense Department (DOD) donated supplies and equipment; and, $35 million to help Ukraine prepare for potential nuclear and radiological incidents. The CR also includes $3.7 billion in additional authority to draw down U.S. military supplies and equipment to send to Ukraine.

  • $2.5 billion in emergency funding to respond to the Hermit's Peak/Calf Canyon Fire.

  • Other significant emergency funding including $2 billion for "unmet" 2020 and 2021 disaster recovery needs via the Community Development Block Grant program; $1.8 billion for refugee and entrant assistance, $1.0 billion for the Low Income Home Energy Assistance Program; $112.5 million in emergency funding for U.S. Federal courthouses and related facilities, as well as $59.6 million for operations; $62 million for the national 988 Suicide Lifeline; $20 million in emergency funding for Jackson, Mississippi water/wastewater infrastructure; and $21 million for the newly-created Office of the National Cybersecurity Director.

  • Provides FEMA with flexibility on its rate of spending rate from the Disaster Relief Fund (DRF) to respond to disasters during the CR period, which means FEMA could spend up to the full FY 2022 funding level of the DRF, or $18.8 billion.

  • Provides long-term program/activity reauthorizations/extensions of Food and Drug Administration (FDA) fee programs, generally through 2027.

The Biden Administration had sought $47 billion in emergency funding that included $22.4 billion for COVID-19 response and $4.5 billion to respond to the Monkeypox outbreak, but both items were excluded in the Senate proposal.

In addition, the Senate Majority leader removed permitting reforms from the proposal that had been opposed by a significant number Members of Congress, particularly Democrats as articulated in letter to House leaders, but also some Republicans in the House and Senate. The opposition was likely significant enough that the CR with permitting reforms would not have made it through at least the Senate, and potentially the House.

Consideration of full year, FY 2023 funding during a so-called "lame duck" session of Congress after the November elections is possible; however, depending on the outcome final FY 2023 funding decisions could also just be deferred until the next Congress, which means another short-term CR will need to be enacted beyond December 16. But that could lead to undesirable spending constraints in key areas pressed for resources in an inflationary environment, such as military spending.

There is currently no consensus at this time on what is likely to happen after the elections regarding full-year FY 2023 funding decisions.


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