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Wednesday, May 8, 2013

Labor, Health and Human Services, and Education: FY2013 Appropriations Overview



Karen E. Lynch, Coordinator
Specialist in Social Policy

David H. Bradley
Specialist in Labor Economics

Gail McCallion
Specialist in Social Policy

Pamela W. Smith
Analyst in Biomedical Policy

Scott Szymendera
Analyst in Disability Policy


This report provides an overview of actions taken by Congress to provide FY2013 appropriations for the accounts funded by the Departments of Labor, Health and Human Services, and Education, and Related Agencies (L-HHS-ED) appropriations bill. The L-HHS-ED bill provides funding for all accounts subject to the annual appropriations process at the Departments of Labor (DOL) and Education (ED). It provides annual appropriations for most agencies within the Department of Health and Human Services (HHS), with certain exceptions (e.g., the Food and Drug Administration is funded via the Agriculture bill). The L-HHS-ED bill also provides funding for more than a dozen related agencies, including the Social Security Administration. 

Continuing Resolutions:
On March 26, 2013, President Obama signed into law the Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6). Division F of this law includes a full-year continuing resolution (CR) for L-HHS-ED. With limited exceptions, the full-year CR generally funds discretionary L-HHS-ED programs at their FY2012 levels, minus an across-theboard rescission of 0.2% per Section 3004, as interpreted by the Office of Management and Budget (OMB). The full-year CR superseded a six-month CR for FY2013 (P.L. 112-175) that had been enacted on September 28, 2012. The six-month CR generally funded discretionary L-HHSED programs at their FY2012 rates, plus 0.612%. 

Sequestration:
On March 1, 2013, President Obama issued a sequestration order, as required under the terms of the Budget Control Act of 2011 and the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. The order called for an across-the-board cut of 5.0% for non-exempt nondefense discretionary funding, 2.0% for certain Medicare funding (per a special rule), and 5.1% for other non-exempt nondefense mandatory funding. Because the sequester was ordered before the enactment of the FY2013 full-year CR, OMB calculated the amounts to be sequestered based on annualized funding levels in place under the six-month FY2013 CR (P.L. 112-175). In light of the enactment of the full-year appropriations law, the effect of these reductions at the account, program, project, and activity level remains unclear, pending further guidance from OMB as to how these reductions are to be applied. 

Disaster Relief Funding:
On January 29, 2013, the President signed into law a supplemental appropriations bill in response to Hurricane Sandy (P.L. 113-2). This disaster supplemental included roughly $827 million for L-HHS-ED programs and activities, the majority of which ($800 million) went to HHS to support health, mental health, and social services needs in affected states, including costs related to the construction and renovation of damaged health, mental health, biomedical research, child care, and Head Start facilities. 

House Actions on L-HHS-ED Bill (112
th Congress): On July 18, 2012, the House Appropriations L-HHS-ED Subcommittee approved a draft FY2013 L-HHS-ED bill. This bill was not introduced or marked up by the full committee prior to the end of the 112th Congress. A detailed table on programs funded by the bill was not made publicly available and, as such, this report includes only limited information on the draft House subcommittee bill. 

Senate Actions on L-HHS-ED Bill (112
th Congress): On June 14, 2012, the Senate Appropriations Committee reported its FY2013 L-HHS-ED bill (S. 3295, S.Rept. 112-176). The committee report estimated that this bill included $166.0 billion in discretionary funds, which is about 1.2% more than the committee’s estimate of comparable FY2012 funds ($164.1 billion). In
addition, the committee report estimated the bill included $611.6 billion in mandatory funds, for a combined total of $777.6 billion (+4.9% from the comparable FY2012 funding level). 

President’s Request:
On February 13, 2012, prior to the initiation of congressional action on FY2013 appropriations, the Obama Administration released the FY2013 President’s Budget. The President’s Budget, as estimated in the committee report accompanying the FY2013 Senate bill (S.Rept. 112-176), called for $166.1 billion in discretionary funding for L-HHS-ED accounts (+1.2% from FY2012). In addition, the President requested $611.6 billion in mandatory funding, for a combined total of $777.6 billion (+4.9% from FY2012) in L-HHS-ED appropriations. 

DOL Snapshot:
The FY2013 Senate committee bill from the 112
th Congress would have provided roughly $12.3 billion in discretionary funding for DOL. This amount is 1.7% less than the comparable FY2012 funding level of $12.6 billion and 3.0% more than the FY2013 request of $12.0 billion, as estimated in S.Rept. 112-176. 

HHS Snapshot:
The FY2013 Senate committee bill from the 112
th Congress would have provided roughly $71.0 billion in discretionary funding for HHS. This amount is 2% more than the comparable FY2012 funding level of $69.6 billion and 1.4% more than the FY2013 request of $70.0 billion, as estimated in S.Rept. 112-176. 

ED Snapshot:
The FY2013 Senate committee bill from the 112
th Congress would have provided roughly $68.5 billion in discretionary funding for ED. This amount is 0.6% more than the comparable FY2012 funding level of $68.1 billion and 2.0% less than the FY2013 request of $69.9 billion, as estimated in S.Rept. 112-176. 

Related Agencies Snapshot:
The FY2013 Senate committee bill from the 112
th Congress would have provided roughly $14.1 billion in discretionary funding for L-HHS-ED related agencies. This amount is 2.3% more than the comparable FY2012 funding level of $13.8 billion and 0.2% less than the FY2013 request of $14.2 billion, as estimated in S.Rept. 112-176.

Date of Report: April 25, 2013
Number of Pages: 42
Order Number: R42588
Price: $29.95

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