Final FY 2020 Appropriations – GovWin FMA’s First Take

The U.S. House and Senate have passed – and President Trump is expected to sign – two consolidated appropriations bills that provide $1.4T in discretionary funding for fiscal year (FY) 2020. Federal departments and agencies have been operating under the second of two continuing resolutions (CR), which is set to expire on December 20th. The result of these two bills passing will be that all federal departments and agencies are funded through September 2020, the end of the current fiscal year.

The GovWin Federal Market Analysis (FIA) team has looked at all the two bills to see what is noteworthy. H.R. 1158 is the consolidated National Security appropriations (a.k.a. “minibus”) that covers Defense (DOD); Commerce, Justice, and Science; Financial Services and General Government; and Homeland Security (DHS) appropriations. H.R. 1865 is the Domestic and International Assistance consolidated appropriations that covers Labor, Health and Human Services, and Education; Agriculture; Energy and Water; Interior and Environment; Legislative; Military Construction and Veterans Affairs; State and Foreign Operations; and Transportation and Housing and Urban Development appropriations.

FY 2020 Appropriations – Key Departments

Below, we look at how many of the largest and most influential departments are funded for FY 2020. For clarity we have identified which appropriations bill covers each particular department.

Defense

The Defense appropriation in H.R 1158 provides $622.6B in discretionary funding and $70.6B in Overseas Contingency Operations (OCO) funding for a total of $693.2B for the Department of Defense. This is 3.5% less than the $718.3B the DOD requested for Fiscal Year 2020 but nearly $19B above the FY 2019 enacted level.

Funding highlights include:

• Provides $199.4B ($53.9B in OCO) for Operations and Maintenance (O&M)
• Contains $104.4B ($834M in OCO) for Research, Development, Testing, and Evaluation
• Allocates $133.9B ($11.8B in OCO) for Procurement
• Provides $142.4B ($4.49B in OCO) for Military Personnel
• Allots $34.4B ($0 in OCO) for Defense Health and Military Family programs
• Supplies $200M for the DOD’s new 5G program
• Includes $268M for cybersecurity enhancements

Agriculture

H.R. 1865 provides $23.5B in discretionary funding for the Department of Agriculture, 4.9% more than the $22.4B requested for Fiscal Year 2020.

Funding highlights include:

• Allocates $3.16B in discretionary funding for the Food and Drug Administration (FDA)
• Allots $3.2B for the Agricultural Research Service (ARS) and National Institute of Food and Agriculture (NIFA)
• Includes $3.1B for Rural Development (RD)
• Provides $1.45B for the Rural Water and Waste Program
• Apportions $1.1B for the Farm Service Agency (FSA)
• Contains $1.0B for the Animal and Plant Health Inspection Service (APHIS)
• Supplies $1.0B for the Food Safety and Inspection Service (FSIS)
• Provides $829.6M for the Natural Resources Conservation Service (NRCS)

Commerce

The appropriation in H.R. 1158 provides $15.2B in overall discretionary funding, $3.1B above the FY 2019 enacted level and $2.7B above the president’s budget request. 

Funding highlights include:

• Allocates $7.6B to the Bureau of Census, including $6.7B to prepare, execute and complete the decennial census. Total discretionary funding for FY 2020 is a $3.7B increase from the FY 2019 enacted level and $1.4B above the president’s budget request.
• Provides $5.4B for NOAA, including $170M to expand supercomputing and cloud computing capacities for climate and weather research.
• Commits $1B to NIST, $48.5M above the FY 2019 enacted level to enhance research and development of cutting-edge technologies and strengthen U.S. stance in cybersecurity.
• Preserves the Economic Development Administration with $333M, $29M above FY 2019 appropriations, and the Manufacturing Extension Partnership (MEP) Program with $146M, $6M above FY 2019 appropriations.  

Education

H.R. 1865 appropriates $72.8B in base discretionary budget authority for Education, a 13.6% increase from the FY 2020 budget request and a 1.8% increase from FY 2019 enacted levels. 

Funding highlights include:

• Funds K-12 Education at $40.1B including the Individuals with Disabilities Act, as well as $16.3B for Title I Grants to Local Educational Agencies and $13.9B for Special Education.
• Provides $24.5B for federal student aid programs and $2.5B for higher education programs.

Energy

The appropriation bill H.R. 1865 funds the Department of Energy with $38.6B in overall discretionary funding, an increase of $2.9B above the FY 2019 enacted level and $7B above the president’s budget request.  

Funding highlights include:

• Boosts weapons activities with a total of $16.7B for the NNSA, an increase of $1.5B from the FY 2019 enacted level and $200M above the president’s budget request.
• Commits $7.5B for environmental cleanup at 16 nuclear sites across the nation.
• Provides $7B to the Office of Science, an increase of $415M above FY 2019 appropriations and $1.5B above the president’s budget request.
• Funds the Office of Cybersecurity, Energy Security, and Emergency Response (CESER) at $156M, $36M above the FY 2019 enacted level.
• Retains the Advanced Research Projects Agency-Energy (ARPA-E) with $425M, an increase of $59M above the FY 2019 enacted level.

Health and Human Services

H.R. 1865 appropriates $94.9B in base discretionary budget authority for HHS, a 21.5% increase from the FY 2020 budget request and a 4.9% increase from FY 2019 enacted levels.  

Funding highlights include:

• Provides $41.7B to NIH, an increase of $2.6B over FY 2019 enacted level and $7.5B over the budget request. Funding includes $2.8B for Alzheimer’s research, $3.1B for HIV/AIDS research, $500M for the All of Us precision medicine program and $500M for the Brain Research through Application of Innovative Neurotechnologies (BRAIN) initiative.
• Allocates $8B for CDC, an increase of $636M FY 2019 enacted levels and $1.4B above the budget request. Funding includes $854M and $225M in transfers from other funds to construct a new research support building and make campus infrastructure improvements. Funding also includes $230M to address tobacco and e-cigarette issues.
• Allocates $4B for administrative expenses at CMS, an increase of $396M above the budget request.
• Funds substance abuse prevention at $206M through SAMHSA.
• Provides $1.6B for the Health Centers program and $2.4B for the Ryan White HIV/AIDS program through HRSA.

Homeland Security

H.R. 1158 provides $50.5B in net discretionary funding, $1.2B below the President’s budget request but $1.1B above the FY2019 enacted level. Additionally, the appropriation provides $17.8B in major disaster funding.

Funding highlights include:

• Provides $14.9B for Customers and Border Protection (CBP), including $1.375B for 55 miles of physical barrier and $564M for non-intrusive imaging equipment for border points of entry
• Allocates $8.1B to Immigration and Customs Enforcement (ICE), including $30.5M in Alternatives to Detention (ATD) family case management
• Supplies $22.3B for the Federal Emergency Management Agency (FEMA), including $17.8B in disaster relief funding
• Allots $4.9B for the Transportation Security Agency (TSA), including additional funding for an additional 1,090 personnel, 50 canine teams, 320 computed tomography imaging systems, and other threat detection capabilities.
• Appropriates $12B for the U.S. Coast Guard (USCG), of which $10.3B billion is discretionary funding, $373M above the FY 2019 enacted level
• Provides $2.0B for the DHS Cybersecurity and Infrastructure Security Agency (CISA), $334M above the FY 2019 enacted amount, including $947M for the protection of civilian federal networks
• Apportions $432M for the Countering Weapons of Mass Destruction Office (CWMD), which seeks to detect and prevent chemical, biological, and nuclear attacks against the U.S.
• Allocates $132M for the U.S. Citizenship and Immigration Services (USCIS), of which $122M is for E-Verify operations and enhancements
• Provides $737M for the Science and Technology Directorate (S&T)

Housing and Urban Development

The H.R. 1865 appropriation provides $49.1B (counting offset receipts) for the Department of Housing and Urban Development, 11.3% more than the $44.1B requested for in Fiscal Year 2020.

Funding highlights include:

• Designates $53.8B for all housing programs
• Allocates $3.4B for Community Planning and Development
• Includes $2.8B for homeless assistance programs
• Provides $1.4B for the HOME Investment Partnerships Program
• Supplies $290M to combat lead hazards

Interior

The appropriation for Interior in H.R 1865 allocates $13.5B in overall discretionary funding, $545M above the 2019 enacted level and $2.1B above the president’s budget request.

Funding highlights include:

• Provides $3.4B for the NPS, including $2.6B for the operation of the National Park System.
• Funds the BIA/BIE at $3.2B and accepts the separation of BIA and BIE as two different bureaus.
• Allots $1.6B to FWS, $66M above the FY 2019 enacted level and $316M above the president’s budget request.
• Funds the BLM at $1.4B, $24M above FY 2019 appropriations.

Justice

HR. 1158 allocates $32.6B in overall discretionary funding, a $1.7B increase over the FY 2019 enacted level and a $2B increase over the president’s budget request.

Funding highlights include:

• Prioritizes cybersecurity activities at the FBI with $10B in overall discretionary funding, an increase of $376M above the FY 2019 enacted level and $644M above the president’s budget request.
• Designates $3.3B for the USMS, including $1.9B for federal prisoner detention expenses.
• Bolsters cyber enforcement and combatting Transnational Organized Crime (TCO) at the DEA with $2.7B in overall discretionary funding, $34.5M above the FY 2019 enacted level.
• Allots $2.3B to the U.S. Attorney’s Office, a $42.5 increase above the FY 2019 enacted level.
• Provides $3.3B in state and local law enforcement grants, an increase of $246M above FY 2019 appropriations. Grants include programs to combat the opioid crisis, improve firearms background check systems and retains the Community Oriented Policing Services (COPS) program.

Labor

The appropriation in H.R. 1865 provides $12.4B in base discretionary budget authority for Labor, a 13.8% increase from the FY 2020 budget request and a 2.1% increase from FY 2019 enacted levels. 

Funding highlights include:

• Provides $9.3B for the Employment Training Administration which includes $2.8B for Workforce Innovation and Opportunity Act Grants.
• Funds Worker Protection Agencies at $1.7B which includes $242M the Wage and Hour Division and $582M for the Occupational Safety and Health Administration.

NASA

H.R. 1158 appropriates funds NASA with $22.6B in overall discretionary funding, an increase of $1.1B above the FY 2019 enacted level and $600M above the president’s budget request.

Funding highlights include:

• Funds the Exploration program with $6B, which is $967M above the FY 2019 enacted level and includes $2.6B for the Space Launch System and $1.4B for the Orion spacecraft.
• Allocates $7.1B to the Science program, $233M above the FY 2019 enacted level.
• Funds the Space Technology program with $1.1B, a $173M increase from the FY 2019 enacted level.
• Prioritizes research in unmanned aircraft safety and space integration with $784M in overall discretionary funding for the Aeronautics program, $59M above FY 2019 appropriations.

Social Security Administration

H.R. 1865 provides $12.7B for SSA for FY 2020, which is $2.6B above the budget request and $2.5B above the FY 2019 enacted level.

Funding highlights include:

• Allocates $1.6B for reviews and efforts to prevent Social Security Disability fraud, abuse, and improper payments
• Includes an increase of $100M for SSA’s base administrative expenses

State Department

The H.R. 1865 appropriation provides $54.7B in discretionary funding, $14.7B above the President’s FY 2020 budget request, and $500M above the FY 2019 enacted level.

Funding highlights include:

• Provides $9.1B for Diplomatic Programs, of which $5B for DOS day-to-day operations of overseas staff
• Allocates $6.1B for Embassy and Diplomatic Security, equal to the FY 2019 enacted level, including $4.1B in security protection and $2B for embassy security, construction and maintenance
• Provides $1.4B for the U.S. Agency for International Development (USAID), which is unchanged from the FY 2019 enacted level and $100M above the President’s budget request.
• Allots $9.1B for international security assistance, including $1.4B in international narcotics control and law enforcement

Transportation

H.R. 1865 appropriates $24.8B in discretionary funding for the Department of Transportation, 15.8% more than the $21.4B requested for Fiscal Year 2020.

Funding highlights include:

• Provides $46.3B for the Federal Highway Administration (FHWA)
• Includes $17.6B for the Federal Aviation Administration (FAA)
• Supplies $13B for the Federal Transit Administration (FTA)
• Allots $2.8B for the Federal Railroad Administration (FRA)
• Includes $1.0B for the Maritime Administration (MARAD)
• Allocates $989M for the National Highway Traffic Safety Administration (NHTSA)
• Designates $679M for the Federal Motor Carrier Safety Administration (FMCSA)
• Provides $281M for the Pipeline and Hazardous Materials Safety Administration (PHMSA)

Treasury

H.R. 1158 provides $13.1B in base discretionary budget authority for Treasury, a 2.7% increase from the FY 2020 budget request and a 2.3% increase from FY 2019 enacted levels. 

Funding highlights include:

• Provides $169.7M for Terrorism and Financial Intelligence (TFI) and Financial Crimes Enforcement Network (FinCEN).
• Allocates $41M to the Treasury Inspector General.
• Includes $262M for the Community Development Financial Institutions Fund (CDFI) which in part will fund for the Economic Mobility Corps at $2M and a new Small Dollar Loan Program at $5M.  
• Provides $11.5B for the IRS which is an increase of $207.5M above FY 2019 and $38M the budget request. Funding includes $2.5B for Taxpayer Services which encompasses grants for Volunteer Income Tax Assistance, Tax Counseling of the Elderly, Low Income Taxpayer Clinic Grants, and National Taxpayer Advocacy.
• Funds IRS enforcement activities at $5B, operations support at $3.8B and Business Systems Modernization at $180M.

Veterans Affairs

The appropriation in H.R. 1865 provides $91.9B in base discretionary budget authority for VA, a 1.3% decrease from the FY 2020 budget request and a 6.2% increase from FY 2019 enacted levels.  Approximately $75.6B of this discretionary total was provided last year via advance funding in the FY 2019 appropriations bill.

Funding highlights include:

• Funds VA medical care at $80.2B which includes $9.4B in mental healthcare services, $222M in suicide prevention activities, $585M for gender-specific care for women and $1.8B for homeless assistance programs.
• Contains $1.5B to continue implementation of the VA electronic health record system.
• Provides $125M above the budget request for VBA to hire additional claims and appellate staff, as well as fund overtime in order to continue reducing the disability claims backlog. 
• Funds major and minor construction projects at $1.6B.

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GovWin Federal Market Analysis (FMA) team members Christine Fritsch, Angie Petty and Alex Rossino contributed to this article.