CBO predicts nondefense spending bills won’t face automatic cuts post-April 30

The nonpartisan Congressional Budget Office (CBO) said Wednesday that even if Congress fails to pass the six remaining spending bills by the April 30 deadline, funding for non-defense programs will not be subject to automatic spending cuts. announced.

prediction This is a potentially key issue in an ongoing funding battle between Republicans and Democrats that could lead to a partial government shutdown as early as next weekend.

This means defense programs could still be cut by 1%, which could equate to a cut of up to $11 billion, CBO said.

Under a budget cap agreement brokered between President Biden and House Republican leaders last year, funding for defense and non-defense programs would be cut off in fiscal 2023 if lawmakers don’t complete funding work by April. This will result in a uniform 1% reduction from the current level. The deadline is the 30th.

There were initially concerns that non-defense programs, which include many of Democrats’ priorities, would see bigger cuts than Democrats had previously negotiated.

in Expected from early JanuaryCBO said that under the level of fines recorded at the time, non-defense programs could have seen cuts of up to 5%, or $41 billion.

But new CBO projections based on six government funding bills that Congress passed last week suggest non-defense programs could be protected from cuts, potentially increasing Democratic influence in funding fights. It turns out that there is something.

Over the weekend, Biden signed a package that includes six of the government’s 12 annual funding bills, providing year-round funding to departments including the Department of Veterans Affairs, Agriculture, Interior, Transportation, Housing and Urban Development, Justice, Commerce and Energy. approved funding. office.

The six bills were written under top-line spending agreements that are largely in line with the Fiscal Responsibility Act, and the bipartisan debt limit agreement reached on short notice last year includes spending that Congress must address heading into fiscal year 2024. It contained an upper limit.

Lawmakers continue to work toward agreement on six remaining bills, including funding for the departments of Defense, Labor, Health and Human Services, Education, and Homeland Security.

In the meantime, these offices are being funded through a stopgap measure that freezes spending at fiscal year 2023 levels.

“Non-defense funding in these laws is $3 billion below the $736 billion cap,” CBO said, adding that in conjunction with the funding bill passed last week and taking into account the stopgap, “therefore, non-defense funding in these laws is $3 billion below the $736 billion cap.” There is no need to seize budgetary resources,” he added.

However, the agency said, “Ultimately, the Office of Management and Budget (OMB) has the authority to determine whether sequestration is necessary and to calculate the percentage reduction, if any.”

Updated at 3:52pm EDT