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The Federal Budget: Spending, Taxes, and Debt

EPIC Analysis: Sequester Impacts for Potential FY24 Spending Options

The Federal Budget: Spending, Taxes, and Debt EPIC Explainers Infographics, Tables, & Charts ResourceFebruary 28, 2024 By Brittany Madni
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Congress is considering three major options for discretionary spending for the remainder of fiscal year 2024: (1) a short-term continuing resolution (CR), (2) a full-year CR, and (3) a full- year appropriations package at levels established under the Johnson-Schumer spending deal. The Fiscal Responsibility Act included two different potential caps: either Sec. 101 in the case of full year appropriations, or Sec. 102 in the case of a short-term CR on April 30, 2024. Under the FRA, only a short-term CR in effect on April 30, 2024, will trigger a 1% sequester across all discretionary spending (defense and non-defense discretionary). Any full-year appropriations package, including a full-year CR, does not trigger the 1% sequester. Instead, the FRA statutory caps for defense and non-defense discretionary spending apply. Those are outlined in Table 1. Only appropriations bills spending above those caps would snap back down to FRA cap levels. This means no defense cuts under a full-year CR. A full-year appropriations package and a full-year CR are subject to the same FRA statutory discretionary caps. However, a full-year CR should not include the side deals and gimmicks already included in the Johnson-Schumer spending deal.

Table 1. Sequester Impacts for FY 2024 Under Various Funding Scenarios (Billions of Dollars)[1]

Short-Term CR (CR Apr. 30-Sept. 29)

Full-Year CR (CR through Sept. 30)

Johnson-Schumer (Package through Sept. 30)
What does this bill include? What does it look like?

Short-term “stop gap” CR that does not go through the rest of the year.

CR for the remainder of FY24 for all 12 appropriations bills.

All 12 appropriations bills passed(omni, minibuses, etc.) + side deals.
How much does this spend subject to FRA caps?

DOD = 860 NDD = 777 Other[2] = 54

DOD = 860 NDD = 777 Other = 54

DOD = 886 NDD = 704 Other = 95
How much is total discretionaryw/ gimmicks?

1,690

1,690

1,685
Which FRA cap applies?

Sec. 102[3]

(1% sequester)

Sec. 101[4]

(numerical cap)

Sec. 101

(numerical cap)
Would there be a sequester?

DOD: YES (-$10) NDD: YES (-$41)

DOD: NO NDD:YES (-$73)

DOD: NO NDD:NO5
When is the cap enforced?

On April 30, 2024, not before

Within 15 days of enactment

Within 15 days of enactment of the last enacted bill
End Result Subject to Caps

DOD = 850 NDD = 736

DOD = 860 NDD = 704

DOD = 886 NDD = 704[5]
Total Discretionary Spend

1,614 + supp?

1,617 + supp?

1,685 + supp?

References

  1. Numbers may not add due to rounding. ↩
  2. Other = Adjustments + Gimmicks. For more details, see “EPIC Analysis: Comparative Tables for FY24 Spending Deals,” Jan. 10, 2024. ↩
  3. Sec. 102 of the FRA sets the sequester for a short-term CR at the Pelosi FY23 Omnibus – 1% across-the-board. ↩
  4. Sec. 101 of the FRA sets a dollar amount not a 1% cut as the sequester for exceeding the FRA caps. This cap also applies across-the-board for each category, but under a full-year CR, a sequester is necessary only for non-defense discretionary funding. ↩
  5. A sequester is avoided under Johnson-Schumer thanks to gimmicks employed to avoid enforcement of the FRA caps. ↩

Author

Brittany A. Madni

Brittany A. Madni

Executive Vice President

Brittany A. Madni is the Executive Vice President of the Economic Policy Innovation Center (EPIC). She served as a Congressional aide and trusted senior advisor for a decade on Capitol Hill, developing a nuanced understanding of the legislative process with an emphasis on budget and appropriations strategy. Prior to joining EPIC, Madni was Deputy Chief of Staff and Legislative Director for Congresswoman Ashley Hinson (R-IA). Madni helped Rep. Hinson start her office in 2021, where she was instrumental in developing the Congresswoman’s policy priorities and spearheading her work on the House Appropriations Committee. Before serving with Rep. Hinson, Madni served as a senior policy advisor at the U.S. House Budget Committee under Congressman Steve Womack (R-AR) and Congressman Diane Black (R-TN). There, she managed the health and tax policy functions, as well as oversight of the Congressional Budget Office. During her tenure on the Committee, she played a critical role in developing the 2017 Republican health reform bill, along with several enacted federal budgets. Madni also served as first Legislative Director for Congressman Troy Balderson (R-OH), where she helped shape the then-freshman Congressman’s policy platforms and built his legislative team. She began her time as Congressional staff working for Congressman Tom McClintock (R-CA), where she handled budget and health care policy, among other issues. Madni’s first jobs in Washington were a series of internships on Congressional committees, where she assisted with oversight of the administration. Madni holds an M.P.S. in legislative affairs from The George Washington University’s Graduate School of Political Management and a B.A. in English and political science from Boston College. Originally from Florida, she now lives in Virginia with her husband, their son, and their dog, Pepper.

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