The Impact of a Continuing Resolution

Funding by Continuing Resolution (CR) is a significant restraint on fast-growing agencies with ever-increasing responsibilities, such as FDA.

Under a CR, FDA resources are capped—it can only spend to the level of funds available in the prior fiscal year. There are also restrictions on the start of new programs, although there can be ways to show that some modest effort in the prior fiscal year is a predicate for new activities under the CR.

CR’s occur because Congress and the President cannot agree on how much money is to be spent, in total and in certain programs. When that occurs, appropriations bills stall and CR’s become necessary. Eventually, agreement is reached, but often well into the new fiscal year. Twenty-five years ago, 1997, was the last time all twelve appropriations bills were passed by October 1.

We are nearing 130 CR’s since 1998. The most dysfunctional year was FY 2001, which saw 21 CR’s. Most fiscal years involve between 3 and 8 CR’s and the average is 5 CR’s per year.

For FDA, a CR means that Congress’s will regarding agency funding has been thwarted. Right now, the differential between the House and Senate proposed funding levels for FY 23 and the CR is substantial.

House. The House on Wednesday, July 20, by a vote of 220-207 passed H.R. 8294, which combines funding from six subcommittee bills – Transportation, Housing and Urban Development; Agriculture, Rural Development; Energy and Water Development; Financial Services and General Government; Interior, Environment; Military Construction, and Veterans Affairs.

FDA funding is included in the Agriculture division of this bill. The House-passed bill mirrors the measure approved by the Appropriations Committee on June 23, 2022. Under the bill, BA (budget authority) funding for FDA would reach $3.645 billion, an increase of $341 million (10%) and slightly more than the President’s Request.

Senate. The draft Agriculture/FDA Senate bill, released five weeks ago, would provide FDA with a $229 million increase in its FY 23 budget authority (BA) funding. This breaks down to a nearly $211 million increase in salaries and expenses (S&E) and an $18 million increase in buildings and facilities (B&F).

A Senate summary document provides the following additional information: “Total discretionary funding for FDA $3.545 billion, an increase of $229 million over fiscal year 2022. Included in these increases are $43.5 million for food safety; $49.8 million for medical product safety; and $85 million for cross cutting activities. The bill also includes $5 million to implement the ALS ACT. In response to the current infant formula crisis, the bill also includes additional resources for maternal and infant formula health.”

Conclusion. When the appropriations process becomes center stage again, proposed numbers may go up or down. At the moment, the CR will cost the agency $229 million under the Senate bill and $341 million under the House bill. Those monies may be recouped once appropriations bills pass, but in the interim the agency has less to spend. FDA must also proceed into the fiscal year with limitations on its ability to align funding, programming, and personnel.

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