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FY 2024 Funding Update: Implications for SGO Members

News Article
Oct 18, 2023

On September 30, Congress passed and the president signed a continuing resolution (CR) to maintain federal funding at current fiscal year (FY) 2023 levels until November 17, preventing a government shutdown. This decision highlighted significant disagreements, leading to the removal of Speaker Kevin McCarthy (R-CA) on October 3. After three weeks without a Speaker, the House elected Mike Johnson (R-LA) to the position on October 25.

However, with less than a month before government funding expires and continued division in the legislature, another CR may be necessary ahead of the November 17 deadline to complete the work required to finalize FY 2024 funding and prevent a government shutdown. At this time, there is no indication if Congress will contemplate a short or long-term CR. It’s important to note that any long-term CR going into the new year will trigger a one percent across the board cut to programs as required by the Fiscal Responsibility Act (H.R. 3746), the June debt limit deal.

Since the government is and may continue to be funded under a CR for the foreseeable future, it is important that SGO members understand the impact of long-term CRs. While CRs are preferable to government shutdowns, reliance on CRs may result in a compromised ability to conduct research, administer critical health programs, build long-term plans, and set strategic priorities. As an example, if the National Institutes of Health is forced to adjust their strategy, it could result in them issuing non-competing research grant awards below the award level. Of note, once final appropriations are enacted, upward adjustments are made. However, this lack of certainty and potential delays in funding can cause substantial disruption for researchers.

With government funding hanging in the balance and competing demands for aid unresolved, progress will continue to be challenging. SGO members will continue to be updated as these issues evolve.