Six months into the new fiscal year, four continuing resolutions have been passed to keep the government open beyond October 1st.cent At the beginning of fiscal year 2024, Congress approved and signed all 12 annual spending bills into law.
best case scenario
For local governments, passing all 12 bills in two legislative packages was the best-case scenario in an unusually contentious spending cycle. Critical programs for local governments as pressure mounts in Congress to address the national debt following trillions of dollars in unbudgeted emergency spending related to COVID-19 stabilization and recovery Funding levels have been present since the beginning of the spending cycle, although a variety of outcomes were anticipated. emergency. And this is actually true for him in 24 years as well.
But the immediate threat of a year-long continuing resolution to lock in spending levels for FY23 for the entirety of FY24 and the more serious threat of foreclosure have both been overcome. A one-year CR would mean that the new program would be implemented without his FY24 funding, and the existing program would not be able to account for the cost of inflation. The possibility of foreclosure was imposed by an earlier debt limitation agreement to incentivize lawmakers of both parties with the threat of automatic 1% cuts to all federal agencies. Over time, the reinterpretation of the debt ceiling law by Congress and White House budget officials will result in a staggering 9% to 10% reduction in nearly all federal aid that local governments are eligible to receive. It has developed into a threat. Advocacy of NLC members was essential to preventing both of these negative outcomes.
Overall, federal funding for FY24 is in strict compliance with spending limits originally agreed to by Congress and the White House before former House Speaker Kevin McCarthy was removed from leadership.
positive results
Positive outcomes for cities and towns include: Significant increases in HUD's affordable housing and homelessness programs. This will ensure the renewal of all existing housing vouchers despite rising costs due to inflation. Direct funding to local governments under the CDBG program was also spared cuts, but funding for the HOME grant program was reduced. Funding for public transportation fell by 2%, but this level is enough to ensure funding for 96% of the total authorized under the bipartisan infrastructure law.
Under the U.S. Environmental Protection Agency (EPA), The state revolving fund for clean water and drinking water is a level reserve fund The 2023 comparisons were $1,638 million and $1,126 million, respectively. But more than half of that amount ($1.4 billion combined between the two accounts) is earmarked for drinking water, wastewater, and stormwater infrastructure construction support and water quality protection. Although Earmark also responds to local needs, NLC's position is that funding for Earmark should and should be provided additionally.
Within the US Department of Energy, Municipal energy efficiency and renewable energy programs fared well with roughly flat funding. This includes a $366 million Weatherization Assistance Program to help low-income households improve energy efficiency and a $66 million State Energy Program to support state and local energy efficiency and renewable energy programs. will appear. moreover, New programs are expected to continue receiving funding starting in FY22, including the $12 million Local Government Energy Program (LGEP).supporting local governments in implementing clean energy projects and programs. $27 million Energy Future Grant; Provides financial and technical assistance to support local, state, and tribal government-led partnership efforts to advance innovation in clean energy programs.
Challenges to local government priorities
In a bigger blow to local government priorities: Most of the Homeland Security grant programs tracked by NLC will be cut by about 10 percent., contains deeper cuts for some programs. Brownfield phase-outs, safe water subsidies for small and disadvantaged communities, lead reduction subsidies in drinking water, and sewer overflow control subsidies were also enacted.
FY24 appropriations also failed to fund the Affordable Connectivity Program (ACP)., offering eligible enrolled households $30 off per month on broadband service. The ACP, created under the bipartisan Infrastructure Act, is expected to run out of current funding in April. Without additional funding from Congress, more than 23 million participating households are at risk of losing broadband service. NLC members recently sent a letter to Congress calling for immediate action to prevent the disconnection of these households.
More information is available on NLC's federal budget tracker.
