Larry Jones and Legislative Staff
August 5, 2002

Unlike most previous years when both houses of Congress passed most of the regular appropriations bills before leaving for the August recess, this year members went on recess after passing only three of the 13 spending measures needed to keep federal agencies and programs operating when the new fiscal years begins on October 1. Both houses have adopted bills approving funds for defense, military construction and the legislative branch. The House has also approved two additional measures for the Department of Interior and for Treasury and Postal Services.

A partisan dispute between the White House and Democratic congressional leaders over spending limits on discretionary programs has stalled the appropriations approval process. President Bush wants to limit such spending to $759 billion, the amount adopted by the Republican controlled House in its fiscal year 2003 budget. Senate Democrats want to set discretionary spending at $770.29 billion, eleven billion more than the White House wants.

But some Republicans in both houses have acknowledged that the limit imposed by the White House is too low and will make it almost impossible for members to reach agreement on many of the spending measures. Some Republicans fear the lower limit will force cuts in popular programs and cause them to face unhappy voters in the November elections. As a result, some Republicans have publicly supported the higher limit set by Senate Democrats.

When members return from recess the first week of September, they will have very little time left to complete action on most of the appropriations measures, including those that have in the past proven very contentious and taken weeks to hammer out an agreement acceptable to members of both parties. Considering the challenge and time involved, some members of Congress are speculating that both houses will aim to reach agreement on the non-controversial measures and send them to the President soon after they return. On other spending bills, particularly those that involve disputes over spending limits or partisan issues, they speculate Congress will agree to roll them into an omnibus continuing resolution which will fund affected agencies and programs at current levels until after the November elections.

Below is a summary of where things stand on the appropriations process as of August 2 for key programs of interest to the nation's mayors.

Arts and Parks (Staff Contact Tom McClimon)

The House passed its version of the Interior Appropriations bill on July 17. Although the Senate Appropriations Committee approved the measure on June 27, the full Senate will not take it up until after it returns from the August recess.

Urban Parks - The Urban Parks and Recreation Recovery Program (UPARR) is to be funded at $30 million, the same amount as appropriated for this current fiscal year. The Senate Appropriations Committee is only recommending $10 million for the UPARR program.

The state and local government assistance program of the Land and Water Conservation Fund is to be funded at $154 million for FY 2003, an increase of $10 million over the current level. The Senate Committee, however, is recommending $144 million.

Arts and Humanities - The House passed bill provides for $126 million for the National Endowment for the Arts, a $10 million increase over current year funding. The House bill also provides for $131 million for the National Endowment for the Humanities, an increase of $5 million over the current level.

Community Development and Housing (Staff Contact: Gene Lowe)

The Senate Appropriations Committee approved the Veterans Administration/Housing and Urban Development and Independent Agencies funding bill on July 25. The House will take up its version of the bill when Congress returns in September.

Community Development Block Grants (CDBG) - Funded at $5 billion. The entitlement or formula grant program within CDBG was increased from slightly less than $4.4 billion to $.4.6 billion. The so-called "wealthy community" proposal of the administration was rejected.

HOME Investment Partnerships Program - Funded at $1.95 billion, a $100 million increase over last year's spending level. The administration's American Dream Downpayment program was not funded.

Public Housing Operating Program - Funded at $3.53 billion, an increase of $35 million over last year's level.

Public Housing Capital Program - Funded at $2.786 billion, $360 million above the administration's budget request.

HOPE VI - Funded at $574 million, the same as last year's funding level.

Section 8 Renewals - Funded at $17.1 billion. This includes funds to renew Shelter Plus Care vouchers. Also included is funding for 15,000 new incremental vouchers, which is below the administration's budget request for 34,000.

Homeless Assistance Grants - Funded at $1.215 billion, which is $92.5 million above last year's spending level.

Section 202 Elderly Housing - Funded at $783 million, $9 million above the administration's request.

Section 811 Housing for People with Disabilities - Funded at $250 million, which meets the administration's budget request

Crime Control and Public Safety (Staff Contact Ed Somers)

The Senate Appropriations Committee approved its version of the FY 2003 Commerce, Justice, State appropriations bill on July 18. The House Appropriations Committee is not expected to act until after members return from the recess in September. Early indications are that funding for Department of Justice Programs will be greatly reduced by the House Appropriations Committee.

Community Oriented Police Services (COPS) - The COPS program would be funded at $737 million, including $330 million for hiring police officers and other personnel and $100 million for a new communications interoperability program.

Local Law Enforcement Block Grant (LLEBG) - The Local Law Enforcement Block Grant would be funded at $400 million, a slight reduction resulting from the earmark for the Boys and Girls Clubs increasing from $70 million to $80 million.

Education (Staff Contact: Joan Crigger)

The Senate Appropriations Committee unanimously approved the Labor-Health and Human Services and Education spending bill on July 18. House action is not expected until Congress returns in September.

Title I Education Grants - Title I was funded at $11.85 billion, an increase of $1.5 billion over last year and $500 million over the President's budget request.

21st Century Community Learning Centers - Funded at $1.09 billion, an increase of $90 million over last year and the President's budget request .

Pell Grants - Increases the maximum grant from $4,000 to $4,100, an increase of $100 more than the President's budget proposal.

Teacher Quality State Grants - Funded at $3.1 billion, an increase of $250 million over last year and the President's budget request (formerly 100,000 Teachers/Class Size Reduction combined with Eisenhower Professional Development State Grants.

Energy (Staff Contact: Debra DeHaney-Howard)

The Senate Appropriations Committee approved passed the energy and water spending bill on July 24. The bill appropriates $26.3 billion for energy and water programs, an increase of $800 million above the White House budget request.

Renewable Energy Resources - Funded at $450 million, an increase of $43 million more than the President's budget request.

Energy Conservation Programs - Funded at $922 million, an increase of $20 million above the President's budget request.

Weatherization Assistance - Funded at $240 million, which is $37 million less than the President's request.

Environment (Staff Contact: Judy Sheahan)

The Senate Appropriations Committee unanimously approved the Environmental Protection Agency's spending bill on July 25. The $8.3 billion bill is expected to be voted on by the full Senate in September. House action is also expected in September.

Clean Water State Revolving Loan Fund - The Clean Water Revolving Loan Fund was funded at $1.4 billion, a $200 million increase over the President's budget request and a $325 million increase over last year.

Drinking Water State Revolving Loan Fund - The Drinking Water State Revolving Loan Fund was funded at $875 million, a $25 million increase over both the President's budget request and what was appropriated last year.

Superfund - Superfund was funded at $1.3 billion, a $25 million increase over both last year's appropriation and the President's budget request.

Brownfields - As a result of the Brownfields legislation signed into law, the Brownfields program was funded at $200 million, which meets the President's budget request. It represents an increase over last year's budget by $108 million.

Health and Human Services (Staff Contact: Crystal Swann)

The Senate Appropriations Committee approved its version of the FY 2003 Labor, Health and Human Services and Education spending bill on July 18. The measure provides $5.8 billion more in discretionary spending than President Bush's request. The bill would appropriate $136.7 billion in funding for the Labor; Health and Human Services and Education departments.

AIDS Programs - Funded at $5.7 billion for AIDS research, prevention and services, including: $2 billion for Ryan White programs, an increase of $161 million over the fiscal year 2002 level; and $860 million for AIDS prevention programs at the Centers for Disease Control and Prevention.

Bioterrorism Initiative - Funded at $3.7 billion to address bioterrorism threats.

Substance Abuse - Funded at $2.3 billion for substance abuse prevention and treatment programs. This is an increase of $92.6 million over the FY 2002 enacted level. The recommendation restores proposed reductions to substance abuse prevention programs and supports an increase of $70 million for the substance abuse prevention and treatment block grant.

Head Start - Funded at $6.9 billion for the Head Start Program. This represents an increase of $332 million over the FY 2002 level and $202 million over the President budget request. This amount will support the enrollment of an additional 20,000 children, bringing Head Start enrollment to more than 935,000.

Low-income Home Energy Assistance - Funded at $2 billion for heating and cooling assistance for low-income individuals and families, $300 million more than the President's budget request. Of this amount, $300 million supports additional energy assistance during emergencies.

Job Training (Staff Contact: Joan Crigger)

The Senate Appropriations Committee unanimously approved the FY 2003 Labor-Health and Human Services and Education spending bill on July 18. The measure restores the President's cuts in funding for adult, dislocated worker and youth formula funding, and restores the Youth Opportunity Grant Funding. House action is not expected until Congress returns in September.

Youth Opportunity Grants - The Youth Opportunity Grant program would be funded at the FY 2002 level of $225 million. The President's Budget proposes to eliminate any future Youth Opportunity Grants by only providing $44.5 million in funding to complete the five-year commitment to the current 36 grantees (24 cities).

Youth Training Formula Grants - The year-round youth training formula grants would be funded at the FY 2002 level of $1.128 billion. The President's Budget cut the year-round youth formula program by $127 million to a level of $1.001 billion.

Adult Formula Grants - The Adult formula grants would be funded at the FY 2002 level of $950 million. The President's budget funds the adult formula grants at $900 million - a $50 million cut.

Dislocated Worker Formula Grants - The dislocated worker formula grants would be funded at the FY 2002 funding level of $1.54 billion (the level before the $177.5 million rescission in the FY 2001 Supplemental Appropriations bill). The President's Budget funds dislocated worker formula grants at $1.383 billion, a cut of $166 million below the FY 2002 level.

H-1B Skills Grants - The Senate Appropriations Committee did not include the President's proposal to eliminate the H-1B Skills Grants and transfer the funds to Alien Labor Certification. H-1B Skills Grants are awarded to businesses and mayors- Workforce Boards to provide skills training to employed and unemployed workers for jobs in occupations where skills shortages exist.

Transportation (Staff Contact: Ron Thaniel)

The Senate Appropriations Committee approved a $64.6 billion FY 2003 Transportation spending bill on July 25. House action is not expected until Congress returns in September.

Federal Aid Highways - Highway aid was funded at $31.8 billion maintaining the fiscal year 2002 enacted level of $31.8 billion, an increase of $8.6 billion over the President's budget request.

Amtrak - Amtrak was funded at $1.2 billion, an increase of $679 million over last year and $679 million over the President's budget request.

Transportation Security Administration - The Transportation Security Administration was funded at $4.95 billion, an increase of $3.6 billion over last year and $150 million more than the President's request. Of that total, $200 million is earmarked for airport modifications needed to install explosive-detection systems and trace detection systems for checked baggage.

Coast Guard - The Coast Guard was funded at $5.8 billion, which in conjunction with $300 million in the FY 2003 Defense spending bill would be an $832.3 million increase over the FY 2002 enacted level and $165 million more than the President's budget request.

Federal Aviation Administration - The Federal Aviation Administration was funded at $13.6 billion maintaining FY 2002 enacted levels and $200 million less than the President has proposed.

Federal Transit Administration - The Federal Transit Administration was funded at $7.3 billion, an increase of $600 million over enacted FY 2002 levels and $100 million more than the President has proposed.