The $1.3T FY 2018 Omnibus Budget Bill – What’s in it?

As the expiration of the fifth Continuing Resolution (CR) for fiscal year (FY) 2018 quickly approached, the U.S. Congress moved forward on the Consolidated Appropriations Act of 2018, an omnibus spending bill that funds all federal departments and agencies for the remaining six months of FY 2018. The president had floated via Twitter the possibility of vetoing the bill, but chose to sign the bill Friday afternoon, thus averting a partial government shutdown that would have resulted if an agreement could not be reached by the expiration of the latest CR on March 23.

The bill provides $1.3T in total discretionary funding across all 12 annual appropriations bills and aligns with the budget caps set by the Bipartisan Budget Act of 2018 enacted in January.

The GovWin Federal Market Analysis (FMA) team has looked at the details of the bill to glean the high points of how the major departments and agencies will fair and what priorities are stressed. Below is a summary table followed by key funding details and initiatives arranged by appropriations bill.

Agriculture

The Agriculture appropriation provides $23.3B in discretionary funding for the Department of Agriculture, 9.9% more than the $21.2B enacted in Fiscal Year 2017.

Funding highlights include:

• $4B for rural infrastructure development.
• $3B for the Agricultural Research Service.
• $2.9B in discretionary funding for the Food and Drug Administration.
• $1.7B for Farm Service Agency discretionary programs.
• $1B for the Food Safety and Inspection Service.

Commerce, Justice, Science

The Commerce, Justice, Science appropriation provides $59.6B in discretionary funding for FY 2018 to strengthen law enforcement, invest in cutting-edge science and technology and enhance economic growth.

Funding highlights include:

• $20.7B for the Department of Commerce, a $1.9B increase compared to FY 2017.
  • $7.5M for Commerce to create a broadband map.
  • $2.8B for ramp up costs of the 2020 Census.
• $29.9B for the Department of Justice, a $1.3B increase over FY 2017 levels.
  • $659M in increased funding for federal prosecutors and investigators to fight opioid and other drug trafficking, terrorism, human trafficking, gun crimes, immigration crimes and cybercrime.
  • Provides 100 additional judge teams with a $65M increase under EOIR to reduce the backlog of immigration cases.
  • $391.5M increase above FY 2017 levels for state and local law enforcement programs such as opioid-related grants and the State Criminal Alien Assistance program.
  • Requires agencies to conduct supply chain reviews to reduce cyber-espionage threats.
• $20.7B for NASA, a $1.1B increase above FY 2017.
• $301M increase for research grants at the National Science Foundation to enhance advanced manufacturing, physics, mathematics, cybersecurity, neuroscience, and STEM education.
• $1B provided to NWS to improve weather forecasting, a $34M increase from FY 2017.

Defense

The Defense appropriation provides $589.5B in discretionary funding and $65.2B in Overseas Contingency Operations (OCO) funding for a total of $654.7B for the Department of Defense. Added to $4.8B in contingency funding already approved by Congress, this total grows to $659.5B, 10.2% more than the $598.4B enacted in Fiscal Year 2017.

Funding highlights include:

• $238B ($50B in OCO) for Operations and Maintenance to support readiness, training, equipment and facility maintenance, and base operations.
• $89.2B ($900M in OCO) for Research, Development, Testing, and Evaluation.
• $144.3B ($10.6B in OCO) for equipment Procurement.
• $137.7B ($4.3B in OCO) for Military Personnel.
• $34.4B ($0 in OCO) for Defense Health and Military Family programs.

Energy and Water

The Energy and Water appropriation allocates $43.2B in discretionary funding for FY 2018 to prioritize national security and critical infrastructure, improve national water resources and progress towards a solution in energy independence.

Funding highlights include:

• $14.7B for the nuclear weapons security program under the Department of Energy, a $1.7B increase from FY 2017 levels.
• $248M provided for research and development in protecting the electric grid from cyberattacks and resilience in extreme weather.
• $6.83B, an additional $789M above FY 2017, to the Army Corps of Engineers to improve and rebuild national water resource infrastructures.
• $12.9B in total funding for Department of Energy’s energy programs.
• $727M for research and development in advance coal, natural gas, oil, and other fossil energy technologies.
• $1.2B for advanced reactor technologies in nuclear energy innovation.

Financial Services

The Financial Services appropriation provides funding for Treasury, the Judiciary, SBA, SEC, and other related agencies for FY 2018 at $23.4B, a $2B increase over FY 2017 enacted levels.

Funding highlights include:

• Provides $11.43B for the IRS, an increase of $195.6M over FY 2017 enacted levels.
  • $320M is slated to upgrade schedules, forms, and systems to reflect the new tax code.
  • $350M to support customer service, fraud prevention, and cybersecurity.
• Provides $415.5M for the Office of National Drug Control Policy (ONDCP) to fighting the opioid epidemic.
• Provides $700.8M for SBA which includes full funding of $29B for 7(a) and $7.5B for 503 small business loans.
• Allows GSA to spend $9.1B out of the Federal Buildings Fund, $228.8M above FY 2017 enacted levels.
• Includes $100M the newly established Technology Modernization Fund for upgrades and improvements to IT systems across the government.

Homeland Security

The Homeland Security appropriation provides $47.7B in discretionary funding for FY 2018, an increase of $5.3B above the FY 2017 enacted level and targets funds to security operations, border and immigration enforcement.

Funding highlights include:

• $7.4B for disaster relief and emergency response activities through FEMA, $573M above the President’s FY 2018 request, and $3B for FEMA’s grants programs.
• $14B for CBP, $1.8B above the FY 2017 enacted level, including nearly $1.6B for physical barriers along the Southwest border and associated technology like $170M in surveillance technology and $190M for new aircraft and sensors.
• $7.1B for ICE, $641M above the FY 2017 enacted level, including $4.1B for detention and removal, $2.2B for investigations programs and $122M for critical infrastructure and equipment.
• $1.9B for NPPD for cybersecurity and communications protection to enhance critical infrastructure and prevent hacking, of which $1.1B is to secure civilian .gov networks, protect election infrastructure and modernize emergency communications.
• $2B for the US Secret Service, a decrease of $53M from FY 2017 due to the draw down after the 2016 election cycle.
• $7.9B for TSA, an increase of $115M over FY 2017, including a $64M increase over the FY 2018 request to expedite the procurement and testing of more effective and capable screening equipment.
• $12.1B for the US Coast Guard, $1.7B above the FY 2017 enacted level, including $7.4B for operations and training to sustain readiness and response capabilities and $2.7B for modernization and recapitalization of vessels, aircraft, and facilities.

Interior/Environment

The Interior/Environment appropriation allots $35.2M in discretionary funding for FY 2018 to address infrastructure and deferred maintenance priorities, protect natural resources, rein in regulations at the EPA and other agencies and support Native American communities.

Funding highlights include:

• $3.2B for the National Parks Service to prioritize its operations and maintenance backlog.
• $3.8B to fund wildland firefighting and prevention programs under Interior and USDA/Forest Service.
• Freezes EPA base funding at FY 2017 levels, or $8.06B, reduces staffing levels by 650 positions and reduces $23.5M in funding for agency regulatory activities.
• Directs EPA, USDA and DOE to establish clear policies for carbon neutrality of biomass and prohibits changes by EPA to certain agricultural exemptions under the Clean Water Act.
• $3.1B (+$204M vs. FY 2017) in funding for the Bureaus of Indian Affairs and Education, including $5.5B (+$498M vs. FY 2017) for the Indian Health Service.

Labor, Health and Human Services, Education

The Labor, Health and Human Services, Education appropriation provides funding for Labor, HHS, Education, and SSA at $177.1B, a $16B increase over FY 2017 enacted levels.   

Funding highlights include:

• Includes funding for opioid abuse treatment and reduction.
  • $1B in new funding for grants to states and Indian tribes to address the opioid epidemic.
  • $476M, a $350M increase, at CDC to support increased opioid overdose surveillance and prevention activities.
• Provides $78B for HHS, a $10B increase over FY 2017 enacted levels.
  • $37B for NIH, a $3B increase.
  • $8.3B for CDC, a $1.1B increase.
  • $5B for SAMHSA, a $1.3B increase.
  • $7B for HRSA, a $550M increase.
  • $4B for CMS, same as FY 2017 levels.
  • $28B for ACF, a $4B increase.
• Provides $12.2B for Labor, a $129M increase from FY 2017 enacted levels.
  • $10B for the Employment Training Administration (ETA), a $44M increase, to include $2.8B job training grants to states.
• Includes $70.9B for Education, a $2.6B above FY 2017 enacted levels.
  • $12.3B for IDEA special education grants to states, an increase of $275M

• Supports SSA with $12.9B, an increase of $480M over FY 2017, which supports IT modernization to reduce the backlog of disability adjudication hearings.

Military Construction and Veterans Affairs

The Military Construction and Veterans Affairs appropriation provides s $92B in FY 2018 discretionary funding, $9.6 billion above FY 2017 enacted levels, for rebuilding the military, housing and training them, and providing robust benefits to the nation’s veterans.

Funding highlights include:

• Funds military construction at $10.1B, a $2.4B increase over FY 2017.
  • $750M in Overseas Contingency Operations funding for projects in countries with ongoing U.S. operations.
  • Funds 203 military construction projects across the country and overseas.
  • $1.4B for construction, operation, and maintenance of military family housing.
  • $708M for construction and alterations for new or existing military medical facilities, an increase of $404M.
• Provides $185.4B in discretionary and mandatory funding for the VA, an increase of $8.5B above FY 2017 levels.
  • $81.5B in discretionary funding, an increase of $7.1B.
  • $68.8B for VA Medical Care.
    • $8.4B in mental health care services.
    • $196M in suicide prevention outreach.
    • $316M for traumatic brain injury treatment.
    • $7.3B for homeless veterans.
    • $782M for the new VA electronic health record system.

State and Foreign Operations

The State and Foreign Operations appropriation provides $54.0B in total discretionary funding for FY 2018, a decrease of $3.4B from the FY 2017 enacted level. The total includes $16B in base and Overseas Contingency Operations (OCO) funding for the State Department, $1.8B below FY 2017 due to reduced costs of United Nations international peacekeeping missions and a one-time supplemental appropriations in 2017 for counter-ISIS operations.

Funding highlights include:

• $12B in total OCO funding to support operations and assistance in areas of conflict, such as Iraq and Afghanistan.
• $6B for embassy security, upgrades and security personnel at more than 275 overseas diplomatic facilities.
• $1.6B for USAID and the USAID Office of Inspector General, $24M below the FY 2017 enacted level.
• $16.8B in base and OCO funding for bilateral assistance to foreign countries, $900M below the FY 2017 enacted level.
• $9B in base and OCO funding for international security assistance to protect national security at home and abroad.
• $345M for antiterrorism programs to fight ISIS and other terrorist groups.

Transportation and Housing and Urban Development

The Transportation and Housing and Urban Development appropriation allots $27.3B in discretionary funding for the Department of Transportation, 46.7% more than the $18.6B enacted in Fiscal Year 2017.

Funding highlights include:

• $86.2B for maintaining national transportation infrastructure.
• $45B for the Federal Highway Safety Administration.
• $18B for the Federal Aviation Administration.
• $13.5B for the Federal Transit Administration.
• $3.1B for the Federal Railroad Administration.

The appropriation also provides $42.7B for the Department of Housing and Urban Development, 10% more than the $38.8B enacted in Fiscal Year 2017.

Funding highlights include:

• $30.3B for Public and Indian Housing.
• $12.5B for other housing programs.
• $7.7B for Community Planning and Development.
• $230M for the Office of Lead Hazard Control and Healthy Homes.

Implications

By some estimates, the bill includes more than $2B for IT modernization efforts in the coming months, plus $100M to seed the new IT Modernization Fund.

With the president’s signature agencies are now freed from the uncertainties of operating under a CR to move forward with the funding priorities outlined above.

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