• Out with the Old and In with the Old

    By Manish Naik

    Director of Legislative Services

    After facing two potential government shutdowns in the first six weeks of federal FY 2024, Congress spared themselves from the possibility of another for the remainder of 2023, although not by passing any final appropriations bills. The temporary funding extensions, or Continuing Resolutions (CRs), that Congress routinely approves to avoid a shutdown are often scheduled to expire before Thanksgiving or Christmas, pressuring members of Congress to complete work on appropriations before adjourning. This year, however, a two-step, multi-month CR was approved a week before Thanksgiving, allowing Congress to enjoy the fall and winter holidays while leaving many funding questions unanswered.

    The two-step CR ensured that funding decisions are front and center when Congress returns in the new year, with some federal agencies having a new deadline in mid-January, while the remainder of spending bills, including funding for the U.S. Department of Education and its programs, must be completed by early February. The White House and Senate Democrats initially opposed this two-step process introduced by new Speaker of the House Mike Johnson, since it creates the potential for multiple shutdowns and some federal agencies and programs getting funded while others don’t.

    Eventually, the lack of funding cuts or policy riders in the extension, as well as pushing another possible government shutdown past the holidays and into the new year, was enough for Democrats to help Speaker Johnson pass his two-step CR. As a result, funding for the 2024-25 school year, as part of the FY 2024 Labor, Health and Human Services, and Education appropriations bill, continues on a temporary basis for the time being. Final education funding levels have to be decided on the second step of the CR on February 2nd, further delaying the federal grant information that is needed to help local school districts develop their budgets for the next school year.

    When Congress in early January, there is likely to be more drama around the drawn-out and lengthy FY2024 appropriations cycle. It is possible that despite the additional extensions that have been approved, the House and Senate is still unable to agree even on topline spending levels, not to mention funding for individual programs. While House Republican leaders seem to have accepted the overall spending levels that were negotiated and approved as part of the debt ceiling bill, a lack of specific agreement with the Senate’s priorities could make a deal elusive.

    The best outcome for education would be the slight increase that the Senate appropriations committee included for FY 2024, although that is not a certainty. After all of the chaos of the past few months, including multiple government shutdown deadlines, multiple Speakers of the House, and repeated threats to federal education funding, Congress is still going to wait until the last minute to determine final spending levels for education.