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Federal Funding Update

October 26, 2023

On Oct. 25, the House elected a new Speaker—Rep. Mike Johnson (R-LA)—to replace former Speaker Kevin McCarthy (R-CA). Speaker Johnson shared a letter to his colleagues laying out a tentative schedule for federal funding. He endorsed a plan to bring up 12 individual spending bills, rather than an omnibus spending bill to fund federal agencies. Moreover, the Speaker proposed extending the federal government funding beyond Nov. 17 through a “stop gap measure” expiring on “Jan. 15 or April 15 (based on what can obtain Conference consensus.)”

This week the Biden administration also asked Congress for $56 billion in emergency supplemental funding for child care, disaster and response aid, international food assistance, and other domestic priorities.

Outlook

The federal government is currently operating under a continuing resolution until Nov. 17. ASTHO’s government affairs team is uncertain whether a shutdown can be avoided. According to media reports, some members of the House indicated they will support extending funding for the federal government only if the bill includes a 30% reduction in funding from current levels; if enacted, that would significantly impact public health and other program areas. Additionally, Speaker Johnson did not acknowledge Biden’s request for emergency supplemental funding in his dear colleague letter.

It is important to note that Congress is still in the early days of negotiating a proposal to avoid a government shutdown. The House will be in session next week.

Key Provisions of Biden’s Funding Request for Critical Domestic Needs

  • $23.5 billion for Disaster Response and Other Needs
    • $9 billion for the Disaster Relief Fund so FEMA can address ongoing disaster response and recovery efforts.
    • $160 million for HRSA to support health center infrastructure needs in responding to, recovering, and mitigating current and future disaster events and ensuring continuity of access to high quality primary care for underserved populations.
    • $68 million for CDC to develop clinician and community guidance regarding exposures, conduct health and environmental assessments, implement enhanced surveillance, and build capacity for laboratory testing and biomonitoring.
    • $144 million for SAMHSA to expand substance use and mental health prevention and treatment services in areas affected by the Maui fires.
    • $111 million for ASPR to replace and pre-position medical caches, improve infrastructure and information technology for response and recovery activities, and support the Medical Reserve Corps.
  • $16 billion for Child Care
    • HHS for an additional year of child care stabilization funding to help keep child care providers afloat, mitigating the likelihood that providers will close or raise costs for families.
  • $1.6 billion Energy Assistance
    • HHS Low Income Home Energy Assistance Program (LIHEAP) grants to help cover home heating costs and prevent drastic service and benefit cuts compared to last year.
  • $1.55 billion for Countering Fentanyl
    • SAMHSA State Opioid Response grants to provide treatment, harm reduction, and recovery support services in all States and territories.