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IPFS News Link • Government Debt & Financing

Two Weeks To Fix Three Problems - Will Republicans Cave Again?

•, by Mike Shedlock

Shutdown Deadlines

January 19: A partial shutdown turns off funding for the departments of Agriculture, Transportation, and Housing and Urban Development.

February 3: Complete Shutdown.

April 30: This date is in play if there is another clean continuing resolution that punts the decisions further. This is the lead chart, discussed below, in which spending caps will be enforced by sequestration, across-the-board reductions applied to budgetary resources as set by the Fiscal Responsibility Act of 2023.

Statutory Limits on Discretionary Funding

Please consider the CBO letter to the House Chair of the Budget Committee Re: Implementing the Statutory Limits on Discretionary Funding for Fiscal Year 2024

Dear Chairman Arrington and Ranking Member Boyle: At your request, the Congressional Budget Office is providing information concerning implementation of the caps on most discretionary funding for fiscal year 2024 as established by the Fiscal Responsibility Act of 2023 (FRA; Public Law 118-5). The FRA sets separate caps (in law they are called limits) on defense funding (in law, revised security, which is budget function 050) and on nondefense funding (revised nonsecurity, which covers all other budget functions).

Section 101 specifies caps for 2024 of $886 billion for defense and $704 billion for nondefense funding.

Section 102 Caps. CBO estimates that the annualized base budget authority provided by the current continuing resolution exceeds the section 102 defense cap by $10 billion and the nondefense cap by $41 billion. Thus, on April 30, 2024, OMB would be required to cancel 1 percent of sequestrable defense budgetary resources and 5 percent of sequestrable nondefense budgetary resources