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Government Affairs Home > Washington Highlights > June 13, 2003

GOP Leaders, White House Reach Agreement on Added FY 2004 Spending

June 13, 2003 - Republican congressional leaders and the Administration have agreed to a plan that will add $5.2 billion to the amount available for FY 2004 appropriations. The agreement breaks an impasse that had prevented the appropriations subcommittees from beginning work on the FY 2004 spending bills.

As a result of the budget deal, House Appropriations Committee Chair Bill Young (R-Fla.) June 11 released proposed funding allocations for each of the 13 House Appropriations subcommittees. The allocations - also known as 302(b) allocations - still must be approved by the full Appropriations Committee.

Under the chairman's allocations, the Labor-HHS-Education subcommittee would receive $138 billion, an increase of $3.7 billion over the FY 2003 level but only $56 million above what President Bush requested for FY 2004. The VA-HUD-Independent Agencies subcommittee would get $90 billion, an increase of $ 3 billion over the current year and $600 million more than the President's request.

In a press statement accompanying the release of the allocations, Chairman Young stated, "This agreement limits the growth of discretionary spending to 3% and will facilitate the orderly consideration of individual bills in Committee and through the House. It is my hope to pass thirteen bills in the House before the August break. " The House Labor-HHS-Education subcommittee is tentatively scheduled to mark up its bill June 19.

Chairman Young's announcement came a few hours after he and Senate Appropriations Committee Chair Ted Stevens (R-Alaska) reached agreement with Vice President Cheney to free up $5.2 billion in additional funding for FY 2004. Under the budget resolution that Congress approved in April, discretionary spending in FY 2004 is limited to $784.7 billion, an amount that was $2.2 billion less than the President's budget request and at least $5 billion below what is needed to meet all of the assumptions in the budget resolution.

The budget deal reached by the appropriators and the White House calls for $3 billion to be shifted from the FY 2003 wartime supplemental into FY 2004. In addition, $2.2 billion in advance appropriations in the Labor-HHS bill were re-allocated from FY 2004 to FY 2003. Together, these two maneuvers add $5.2 billion to be divided among the appropriations subcommittees in FY 2004.

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

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