Congress Averts Government Shutdown with Stopgap Funding Legislation

United States CapitalOn Friday the House and Senate successfully passed a second “continuing resolution” (CR)— short-term stopgap funding legislation that temporarily extends current Federal Fiscal Year (FY) 2016 spending levels through April 28th, 2017. The legislation provides funding for the federal government until this date or until a separate full-year appropriations bill is enacted into law. The current 2016 fiscal year began this past October and the federal government has been operating under the auspices of an earlier CR passed by Congress just before this deadline.

While it had seemed likely that Congress would pass comprehensive spending legislation for the full fiscal year during the current lame duck session of Congress, as they have several times in years past, incoming President-Elect Donald Trump requested that these critical funding decisions be further delayed until next spring.

This decision leaves the outlook for funding for important federal programs, like the Carl D. Perkins Act, uncertain in the interim. This year’s earlier CR required a 0.496 percent across-the-board cut to all discretionary federal programs, including the Perkins Act’s basic state grant program. Due to the Budget Control Act’s (BCA) sequester caps, which significantly restrict the amount of funding available for programs like Perkins each year through the next decade, this reduction translated into $5.5 million in fewer funding for Perkins, students, and the CTE programs the law supports.

At that time, the U.S. Department of Education (USDE) revised states’ Perkins allocations in October and 30 states received reduced grants amounts due to the passage of this temporary legislation.

This most recent CR re-adjusts this half percent reduction somewhat to 0.19 percent to stay within the BCA caps. However, USDE is not likely to reimburse states for the difference between these two spending cuts until a full-year spending bill is successfully enacted.

The ongoing uncertainty caused by the current series of stopgap funding measures from Congress is already creating uncertainty for states and local school districts who need to prepare budgets for the upcoming academic year. Moreover, the budget process for the next federal fiscal year (2018) will begin in late winter of 2017 further complicating matters as efforts to fund federal programs like Perkins increasingly overlap.

Advance CTE encourages the CTE community to let their members of Congress know how important it is to restore cuts to Perkins in the coming months and pass comprehensive legislation that replaces these counterproductive CRs moving forward. To do so click here. Be sure to check back as the outlook for Perkins funding continues to evolve.

Steve Voytek, Government Relations Manager

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