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Government Affairs Home > Washington Highlights > December 13, 2002

FY 2003 Funding High Priority for New Congress

December 13, 2002 - Completing the FY 2003 appropriations process will be a major priority for the 108th Congress when it convenes in January. At this time, only two of the 13 appropriations bills that fund the federal government for FY 2003 have been signed into law. The other 11 bills - including the Labor-HHS-Education and VA-HUD-Independent Agencies bills - are currently being funded through a continuing resolution (CR) that essentially funds programs at FY 2002 levels through Jan. 11, 2003.

Following the election, Republican leaders from Congress met with President Bush and agreed that FY 2003 discretionary spending should not exceed $750 billion. Almost half of this total has already been appropriated in the defense and military construction bills, leaving $385 billion for non-defense discretionary spending. However, the 11 remaining appropriations bills that have been approved by the Senate Appropriations Committee total $395 billion, which means that $10 billion needs to be cut from these bills. On Dec. 3, the Senate leadership revised the 302(b) allocations, which set the spending limits for the individual subcommittees.

The Labor-HHS bill reportedly will lose approximately $2.8 billion from the $134.1 billion bill approved by the Senate Appropriations Committee last July. While the President's budget proposed a $3.7 billion (16 percent) increase for the National Institutes of Health (NIH) to complete the five-year doubling effort, it also proposed significant cuts in health professions, the Agency for Healthcare Research and Quality (AHRQ), and portions of the Centers for Disease Control and Prevention not related to homeland security. The situation for the VA-HUD appropriations bill is similar to the Labor-HHS bill; appropriators will have to cut between $2 and $3 billion from the House and Senate bills they crafted earlier this year.

Congressional leaders are currently discussing a strategy to complete the FY 2003 appropriations process prior to the President's State of the Union Address at the end of January. This strategy calls for Congress to pass another CR prior to Jan. 11, perhaps extending until late January. Reportedly, the Senate Appropriations Committee will meet during the week of Jan. 6 to approve the remaining 11 appropriations bills at the newly revised levels. Although there is still discussion of passing the bills individually, it is more likely that the bills will be bundled into an omnibus package that will be attached to yet another CR. The House and Senate would then vote on this latter CR, which would be subject to limited debate.

Information:
Dave Moore, Senior Associate Vice President
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

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