Status of FY 24 and FY 25 Funding for FDA: Addressing Some FAQs
Q: What are the necessary steps for the FY 24 Ag/FDA appropriations to be completed by the new deadline of March 1?
A: The process is essentially stalled until subcommittee allocations are agreed upon. The subcommittee allocation process has two components: do the sum of monies allocated total the amounts agreed to by Speaker Johnson and the Senate; and within the allocations, which subcommittees may receive larger allocations and which smaller ones?
With regard to totals, Speaker Johnson continues to receive pressure – primarily from House Freedom Caucus members – to reduce spending below the agreed-upon levels. With regard to the subcommittee allocations, this is always a zero-sum game regarding which subcommittees receive more and which less. The Alliance closely monitors the 302(b) allocation that goes to the Ag/FDA subcommittee.
Q: Do we have any better sense of the likely outcome of FY 24 Appropriations for FDA?
A: Not really. The most likely outcome is that FDA will receive its FY 23 spending level ($3.5 billion) plus or minus 1% ($35 million). In that case, monies for new initiatives and funding of mandated pay raises ($105 million) would have to be found within existing funding levels.
While this is the most likely outcome, it is still possible that FDA could 1/ receive a larger increase (reflecting expanding mission and growing responsibilities) or 2/ be subject to a larger cut (probably as a result of across-the-board cutbacks in non-defense programs rather than anything related to FDA performance).
Q: Aren’t we supposed to begin the FY 25 appropriations process in early February?
A: Traditionally, yes. But it is not a mandate. In recent years it has not even been the norm.
For example, the FY 24 President’s request was released on March 9, 2023. The FY 23 request was released on March 28, 2022. The FY 2022 request was not released until April 9, 2021. However, that was the first offered by President Biden and it is expected that the budget will be delayed in the first year of a presidency.
Q: What are the consequences of a delayed release of the President’s budget request?
A: A delay in the release of the President’s budget request tends to compress the early stages of the appropriations process. It is not a causative factor in Congress’ failure to complete appropriations bills by October 1, which results from disagreements over total spending levels and the relative levels of defense and nondefense spending.
However, unless the FY 24 bills are completed soon, OMB will have to set the base year in the President’s request as “FY 24 CR levels extrapolated to a full year.” Those numbers will always differ from the FY 24 final –sometimes marginally and sometimes substantially–meaning there will be confusion all year in describing what the President asked for.
Editorial Note:
The Analysis and Commentary section is written by Steven Grossman, Executive Director of the Alliance for a Stronger FDA.