Q&A on regular order appropriation and impact of delays on FY 23 funding cycle

Q: What is “regular order” appropriations?
A: The year usually starts with the State of the Union (SOTU) in late January, followed by the President’s Budget Request submitted to Congress in February. By April, the House and Senate are supposed to agree on a budget that contains a ceiling for federal discretionary spending (known as the 302(a) number because that’s the section of the Budget Act that calls for its determination). Subsequently, in May/June, the Appropriations Committees take the 302(a) number and divides it among the twelve subcommittees (the 302(b) numbers). Appropriators, during May, June, and July, devote themselves to marking up all the spending bills, passing the bills, gaining conference agreements on numbers (July, August, September) and sending the bills to the President for signature by September 30 or earlier. This straightforward process, called “regular order appropriations,” was last achieved more than a decade ago. The FY 23 funding cycle is not likely to be completed under regular order.

Q: In what ways will this year’s FY 23 appropriations cycle initially differ from “regular order?”
A: The lack of completion of FY 22 appropriations is an immediate barrier to progress. The Appropriations chairs and ranking members in the House and Senate will continue to negotiate against the February 18 deadline for adopting appropriations bills or passing a new CR. As a practical matter, it is difficult to negotiate the 302(a) and 302(b) numbers for FY 23 if the FY 22 process has not been completed.

Q: Does the President have a role in how the FY 23 process unfolds over the next few months?
A: No as to FY 22 and yes as to FY 23. The President has limited opportunities to impact the FY 22 appropriations endgame. That really needs to be resolved by House and Senate leadership and senior appropriators. As to FY 23, the White House has implicitly acknowledged that producing an FY 23 Presidential Budget Request in the regular timeframe (early February) will be of limited value without closure on the FY 22 base. For that reason, plus the possible revival of a reconciliation package, the President’s State of the Union will be on March 1. Presumably, the President’s Budget Request will be presented to Congress a week or two later. However, nothing prevents the request from going to Congress before the SOTU or long afterward.

Q: Do these delays push back the entire FY 23 appropriations process?
A: Only to a degree. As 2022 is an election year, Members of Congress will be trying to spend as much time campaigning as possible. Typically, this means that FY 23 appropriations will need to be completed (or a two-month CR enacted) by the first week of October. So early delays in moving forward on FY 23 appropriations are likely to result in compression rather than extension of the FY 23 appropriations process.

Editorial Note: The week’s Analysis and Commentary section was written by the Alliance’s Executive Director, Steven Grossman.