Hill Days and the Bumpy FY 24 Appropriations Cycle
Hill Days and the Bumpy FY 24 Appropriations Cycle
Q: Why do we have a “who will blink first” showdown on the debt limit and FY 24 spending?
A: If Congress fails to raise the debt limit in time, a government default will result. That puts our economy at risk and would likely harm the United States’ standing in the world. Because the stakes are so large, past attempts to tie spending and other policy matters to the debt ceiling have mostly failed.
This showdown was predictable in the sense that a Republican-led House of Representatives was certain to clash with the Senate and President Biden on limiting federal spending. The key to the current scenario is that Speaker Kevin McCarthy was able to get almost all of the House Republican caucus to vote for a far-reaching legislative package that both raised the debt ceiling and limits FY 24 spending. That gives him a seat at the table.
The surprise this week was the announcement that the debt limit might be hit at the very beginning of June. Almost everyone thought there would be more time; instead, negotiations will start May 9 and many Democrats have told the President that a clean bill is no longer possible.
Q: Does the debt limit showdown affect the FDA?
A: Yes. Unless superseded by an agreement on the debt ceiling, the House Appropriations Subcommittees will start marking up the 12 appropriations bills in May and June using the FY 24 spending limit in the House-passed debt limit bill. That will cut overall spending considerably–probably back to FY 22 levels. If, as is likely, DoD suffers no cuts and may even get an increase that will leave even less money for domestic programs.
When the House Ag/FDA Subcommittee receives its 302(b) allocation (the maximum amount the subcommittee can spend), we will have a glimpse of how much the subcommittee will need to cut from FY 23 (current year) levels. It seems likely that the overall cut will be deep enough that the subcommittee will need to pick winners and losers rather than cut all programs by a fixed percentage.
So, however painful the process may be, the House Ag/FDA Subcommittee will have to decide how much it values FDA versus other programs under its jurisdiction. When the Senate starts markups, they will face the same problem, albeit we hope with a much higher spending ceiling.
Q: How does this relate to the Alliance’s House and Senate Hill visits over the last two weeks?
A: When the Ag/FDA Subcommittees have to make choices, they are most likely to favor the programs they know and value. Our Hill visits are designed to raise their awareness and help them understand why FDA is worthy and in need of continued support.
After describing the breadth and depth of FDA’s responsibilities, we try to make three main points:
FDA provides a core function of government while carrying out a uniquely difficult mission.
FDA needs more resources each year because of additional responsibilities, increasingly complex science and technology, globalization, and growth in regulated industries.
FDA’s mission and responsibilities are incredibly consequential and visible. It needs resources to protect public health and safety and to set standards for products that encompass 20% of all consumer spending (about $2.7 trillion).
Q: What can Alliance members do to improve FDA’s chances of receiving needed support?
A: Please speak to your elected officials on behalf of the FDA’s resource needs. Let us know if you need help setting up a program to contact Congress.
Also, we will be continuing to meet with House and Senate staff and want to build up a list of Alliance members who would like to participate in future Hill meetings. No commitment is required now; you would be on a list of people that we call first. Let Steven Grossman know of your interest.
.
Editorial Note:
The Analysis and Commentary section is written by Steven Grossman, Executive Director of the Alliance for a Stronger FDA.