Legislative Update: FY24 Funding Continues to Take Shape

This week, congressional leaders continued to look ahead to next steps for the 2024 federal budget and appropriations process ahead of important deadlines this fall and early next year. Elsewhere, lawmakers in the House examined innovative approaches to postsecondary education.

House Republicans Propose Significant Cuts to Domestic Spending

After months of on-and-off again negotiations, congressional leaders and President Biden recently reached a deal to suspend the debt ceiling and avert a catastrophic default on the nation’s debt obligations. The agreement, known as the Fiscal Responsibility Act (FRA), extends the nation’s borrowing authority for the next two years and, importantly for the Career and Technical Education (CTE) community, establishes new spending caps for that same period of time for federal fiscal years 2024 (FY24) and 2025 (FY25). The FRA was signed into law by President Biden on June 3, following intense negotiations between Democrats and Republicans. Upon the release of the agreement, House Republican leadership touted the FRA saying, in part, “The Fiscal Responsibility Act does what is responsible for our children, what is possible in divided government, and what is required by our principles and promises.”

More recently, however, House Republicans have signaled that they intend to move forward with FY24 spending bills that do not conform to the spending cap requirements contained in the FRA. In a recent development earlier this week, the top House Republican appropriator, Rep. Kay Granger (R-TX), announced that she plans to move forward with a series of spending bills that reduce federal spending to FY22 levels, rather than FY23 as required by the FRA. Recent press reports have indicated that the committee is planning to advance spending legislation for the Labor, Health and Human Services, Education spending bill, where the Carl D. Perkins Career and Technical Education (Perkins V) and other education programs derive funding from. The bill could potentially include an up to $60 billion cut to funding for this portion of the federal budget—a nearly one-third reduction in funding over current levels of investment.

In the Senate, Appropriations Committee Chair Patty Murray (D-WA) and Ranking Member Susan Collins (R-ME) have indicated that they plan to move forward with FY24 spending proposals in the coming weeks that do conform to the FRA. This puts Congress on a likely path towards another future disagreement over federal spending later this fall, with the chambers potentially moving forward with spending proposals that are dramatically different. This will have the practical effect of making reconciling the differences between the chambers’ proposals even more challenging ahead of the start of FY24, set to begin on October 1. As a reminder, a mandatory, across-the-board sequester cut of one percent to all federal spending would be applied should Congress not reach agreement on full-year FY24 funding  by January 1 of next year. As these efforts continue, Advance CTE will be closely monitoring these developments and engaging with partners on Capitol Hill to ensure the funding needs of the CTE community are realized as part of this ongoing budget and appropriations process for FY24. 

House Examines Postsecondary Innovation

On Wednesday, June 14, the House Education and Workforce Committee held a hearing titled “Postsecondary Innovation: Preparing Students for Tomorrow’s Opportunities.” The hearing focused on the need to fundamentally rethink many aspects of postsecondary education, with witnesses and lawmakers discussing at length the important role career development and planning has both before, during, and after postsecondary experiences to ensure learner success. In addition, the importance of dual and concurrent enrollment opportunities was highlighted extensively during the hearing as was the need to fully invest earlier on in the educational continuum—a key strategy emphasized during the hearing to prepare students earlier on for their future endeavors. A webcast archive of the hearing, including witness testimony, can be found here.

Steve Voytek, Policy Advisor

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