Policy Backgrounders

FY2024 Federal Budget

March 22, 2024

Trusted Insights for What’s Ahead^®

This week, Congress faced a self-imposed deadline of Friday to finalize the remaining six appropriations bills for the current Fiscal Year (FY) 2024 to avoid a partial government shutdown. On Monday night, Congressional leaders reached a spending deal for the Department of Homeland Security (DHS), the most significant outstanding disagreement. Lawmakers then raced to draft legislative text for the spending package and bring it to a vote before the deadline, with the House of Representatives voting on Friday to pass the package 286-134 and the Senate intending to vote shortly thereafter – but with no guarantee at press time that it will act before the deadline. Congress risks a temporary partial government shutdown over the weekend as it works through the procedural hurdles to get the spending package passed.

• The six remaining bills cover over 70 percent of discretionary spending and include funding for the Departments of Defense, Education, Homeland Security, Health and Human Services, Labor, State, and Treasury.
• Negotiations around the DHS budget proved to be the most contentious: Congressional leaders and the White House agreed to additional funding for Border Patrol agents, increased beds at detention facilities, and heightened border enforcement activities at the Southern border.
• The expected enactment of the spending package over the next few days means the FY2024 appropriations process will be complete, avoiding the across-the-board discretionary spending cuts mandated by the Fiscal Responsibility Act that would have reduced defense spending by 1 percent based on current funding levels.
• Rep. Marjorie Taylor Greene (R-CO) filed a motion to vacate the chair, forcing a vote on whether Speaker Mike Johnson (R-LA) can stay in his position. Because the motion was filed with insufficient notice, it cannot be considered until after the House returns from its 16-day recess. If the motion passes, all business in the House would cease until election of a new Speaker.