Aug. 7, 2019

Spending Caps Deal Allows Funding Bills to Move

On August 6, 2019 by Jodi Boyne

The White House and Congress reached a deal to raise the federal budget caps for fiscal years 2020 and 2021.  

The budget deal, passed by the House and expected to be passed by the Senate prior to its departure for August recess, would raise federal non-defense discretionary spending by $56.5 billion above the fiscal year 2019 cap over the two-year period.

For FY20, nondefense discretionary spending would increase from $605 billion in FY19 to $632 billion; in FY21 nondefense discretionary funding would increase to $634 billion. An increase to the caps is critical to FY20 and FY21 appropriations for non-defense discretionary spending for HUD and Older Americans Act programs.

While the budget deal as passed by the House, would eliminate sequestration for so-called discretionary programs like senior housing and community-based services, it would extend the 2% Medicare payment cut sequestration through fiscal year 2029.

The budget deal makes it more likely appropriations bills will be completed closer to the Oct. 1 start of FY20 and represents a shift in policy for the White House, which had requested Congress keep the FY20 caps in place.