Our General Manager of Strategic Growth, Tris Carpenter, has assembled an update on Federal spending legislation churning its way through Congress. Congressional leaders are (hopefully) reaching a bipartisan deal this week on a $1.5 trillion spending measure to finance Federal agencies for the remainder of Fiscal Year 2022. Included within this measure will likely be $13.6 billion in emergency aid for Ukraine and $15.6 billion in spending for vaccines, testing, and treatments for COVID-19. In addition, we share an update on the FY 2023 budget request process and the President’s four-point economic rescue plan.

Here are some fast facts on everything you need to know about the current Federal spending legislation landscape:

FY 2022 Budget Appropriations
  • More than five months into this fiscal year, and the White House is still waiting for Congress to pass a FY 2022 budget
  • Congress has previously passed three stopgap bills to further keep funding at existing FY 2021 levels since October 1st
  • Washington now faces a Friday, March 11th deadline to fund federal agencies and avoid a government shutdown
  • Stopgap measures lead to constant stop-and-start contract cycles; creating inefficiency and disruption for individual Federal contractors which rely upon steady, dependable federal funding
  • Agreement will need to address diminishing agency purchasing power and rising Federal contractor costs as inflation increases
Pandemic and Ukraine Aid Package
  • Congress is debating ~$13.6 billion in emergency humanitarian, military, and economic assistance for Ukraine; including ~$6.7 billion to cover deployment of U.S. troops to NATO countries, increase intelligence and cybersecurity support, and replenish the supply of military weapons
  • Emergency aid would also include ~$15 billion in spending for additional vaccines, oral antivirals and monoclonal antibodies, testing, as part of the new coronavirus response strategy
  • Attempting to append both measures in a catchall $1.5 trillion spending measure to finance Federal agencies for the remainder of Fiscal Year 2022
FY 2023 Budget Appropriations
  • With the State of the Union address, the annual President’s budget request formulation for FY 2023 has started this month
  • Expected to ask Congress for a $770+ billion defense budget for FY 2023 as the Pentagon seeks to modernize the military
  • White House has not said when the President will send the FY 2023 spending proposal to Congress, however it will likely be mid-April at the earliest
Build Back Better (Reconciliation Bill)
  • House passed a scaled-down $1.75+ trillion bill (CBO appraised at $2.3 trillion) and sent to the Senate on November 19th; however, it was rejected by a key Democratic senator
  • President has shifted from the Build Back Better bill to a four-point economic rescue plan; calling for reforms on housing, education, and climate; includes moving goods cheaper and faster; reducing everyday costs; promoting competition; and eliminating barriers to jobs