From October 1, 2017, through January 19, 2018, Interior, Environment, and Related Agencies received appropriations under continuing resolutions (CRs) because no regular appropriations were enacted before the start of the 2018 fiscal year. The CR expired after January 19, before being extended on January 22, 2018, until February 8, 2018. As a result of the lapse in funds, a partial government shutdown went into effect. Agencies in the Interior bill generally operated under "contingency" plans that summarize activities that would cease and activities that would continue during a lapse in appropriations.

Currently, the CR generally provides funding at the FY2017 level, minus an across-the-board reduction of 0.6791%. It also generally provides funds for continuing projects and activities, under the same authority and conditions and to the same extent and manner as for FY2017. However, the CR included exceptions ("anomalies") that changed the purposes or amounts of funds, extended expiring provisions of law, or made other changes to existing law.

For FY2018, President Trump requested $27.26 billion for Interior, Environment, and Related Agencies. For DOI agencies (Title I), the request was $10.62 billion, or 38.9% of the total requested. For EPA (Title II), the request was $5.66 billion, or 20.7% of the total. For the roughly 20 entities funded in Title III, the request was $10.99 billion, or 40.3% of the total.

H.R. 3354, as passed by the House on September 14, 2017, contained $31.50 billion in appropriations for FY2018 for Interior, Environment, and Related Agencies. On November 20, 2017, the Senate Appropriations Committee released a chairmen's draft that included $32.60 billion for the bill, an amount $1.09 billion (3.5%) higher than the House-passed level.

The President's request, House-passed bill, and Senate chairmen's draft would provide lower appropriations for FY2018 than the $32.63 billion enacted for FY2017. Under each of the three FY2018 proposals (President, House, Senate chairmen's draft), funding for Title II (EPA) would have the largest dollar reduction from FY2017 levels of the three titles. Specifically, the President's overall request was a decrease of $5.37 billion (16.5%) from the total FY2017 appropriations. Funding for each of the bill's three titles was decreased, with EPA funding reduced by $2.40 billion (29.8%). The $31.50 billion in the House-passed bill would be a reduction of $1.13 billion (3.5%) from FY2017. The House-passed bill decreased funding for each of the three titles, with EPA declining by $665.1 million (8.3%). The $32.60 billion in the Senate chairmen's draft would be a reduction of $35.2 million (0.1%). The Senate chairmen's draft would decrease funding for DOI agencies and EPA (by $149.5 million, 1.9%, for EPA), while increasing funding for Related Agencies.

This report first presents a brief overview of the major agencies in the annual Interior appropriations bill. It then describes the appropriations requested by President Trump for FY2018. It next compares the FY2018 funding levels requested by the President, passed by the House, and contained in the Senate chairmen's draft with each other and with FY2017 appropriations. Finally, it summarizes the current status, including the government shutdown due to a lapse in continuing appropriations (provided through January 19, 2018).

Introduction

The President's request of $27.26 billion for FY2018 would be a decrease of $5.37 billion (16.5%) from the total FY2017 enacted appropriations of $32.63 billion. This FY2017 total includes $407.0 million in emergency funding for wildfire suppression of the Forest Service and DOI.¹⁶

Under the President's proposal, the total for each of the bill's three titles would decrease by a different amount relative to FY2017 enacted levels. Funding for DOI agencies would decrease by $1.64 billion (13.4%) when compared to FY2017. EPA appropriations would decrease by $2.40 billion (29.8%), the largest dollar amount and percentage of the three titles. The total for all Related Agencies in Title III would decline by $1.33 billion (10.8%).

With regard to DOI, the President proposed decreases below FY2017 enacted levels for 8 of the 10 agencies. The decreases varied in dollar amount and percentage of appropriations, with the smallest dollar decrease of $83.3 million (5.3%) for the Department-Wide Programs account. The overall reduction for Department-Wide Programs reflected the President's elimination of funding for the FLAME Wildfire Suppression Reserve account. The President continued to seek funds for fire suppression through DOI's Wildland Fire Management account, however.¹⁷ Within the Department-Wide Programs Account, the President also sought to reduce funding for the Payments in Lieu of Taxes Program (PILT), from $465.0 million in FY2017 to $396.9 million in FY2018. PILT compensates counties and local governments for nontaxable lands within their jurisdictions. The proposed decreases for the other seven DOI agencies exceeded $100.0 million. The largest was for the National Park Service, with a reduction of $378.5 million (12.9%). Some of this reduction was proposed for facility operation and maintenance, land acquisition, and grant programs. The next-largest decrease was for Indian Affairs—$371.7 million (13.0%), reflecting reductions for education and construction programs, among others.

Two DOI agencies would receive increased appropriations for FY2018 under the President's request. Appropriations for the Bureau of Ocean Energy Management would increase by $39.6 million (53.0%), largely because of a decrease in expected revenue from rental receipts and cost-recovery fees. Thus, the Administration anticipates funding a higher amount of the agency's budget through appropriations. Appropriations for the Bureau of Safety and Environmental Enforcement also would increase, by $31.9 million (38.3%), in large part due to a rescission of appropriations for FY2017. Such rescissions have the effect of offsetting appropriations.

Within the overall decrease for EPA, the President sought reductions for most, but not all, accounts.¹⁸ The $880.5 million (33.9%) decrease for the Environmental Programs and Management account was the largest overall dollar decrease for EPA accounts. This account funds a broad array of activities supporting EPA's development and enforcement of pollution-control regulations and standards, technical assistance, and administrative and operational expenses. The President proposed lower amounts for various programs within the account, among them geographic programs, enforcement, clean air, and water-quality protection. The second-largest decrease from FY2017 enacted levels, $593.7 million (16.8%), was proposed for EPA's account for State and Tribal Assistance Grants. Within this account, the President proposed reductions for a variety of state and tribal categorical grant programs.¹⁹ However, the President sought level funding in the account for grants to states for wastewater infrastructure projects through the Clean Water State Revolving Fund and for drinking water infrastructure grants to states through the Drinking Water State Revolving Fund.

Under the President's FY2018 request, 18 of the 21 Title III agencies that were funded in FY2017 would receive varying funding decreases. The President proposed the largest dollar declines for the two biggest agencies. Appropriations for the Forest Service would be cut by $879.8 million (15.7%), primarily through lower funding for capital improvement and maintenance, cooperative forestry, land acquisition, and fire suppression. Similar to the DOI proposal, the Forest Service proposal would eliminate funding for the Forest Service's FLAME account. However, the President's request included funding for wildfire suppression through the Wildland Fire Management account. The President also proposed a $300.6 million (6.0%) decrease for the Indian Health Service, reflecting reduced funding for clinical services, health facilities, and other programs. The Smithsonian Institution would receive the largest increase of Title III agencies—$83.7 million (9.7%)—largely dedicated to revitalizing facilities. In addition, the President sought $7.0 million in FY2018 for one entity that did not receive appropriations in FY2017—the World War I Centennial Commission.

H.R. 3354, as passed by the House on September 14, 2017, contained $31.50 billion in appropriations for FY2018 for Interior, Environment, and Related Agencies. The draft chairmen's recommendation released by the Senate Appropriations Committee on November 20, 2017, included $32.60 billion for the bill, an amount $1.09 billion (3.5%) higher than the House-passed level.²⁰ Both bills included $465.0 million for PILT, level with the FY2017 appropriation.

The bills differed in terms of the amount, type, and accounts for addressing wildland fires. The Senate draft contained higher overall funding for wildland fires, including $506.8 million in emergency appropriations for managing wildland fires ($11.6 million for DOI and $495.2 million for the Forest Service). Such emergency funding typically does not count towards a subcommittee's allocation for the bill.²¹ The House-passed bill did not include emergency appropriations. The Senate chairmen's draft also proposed a cap adjustment to the discretionary spending limits in law for certain wildland fire suppression activities.²² The measures would fund some Forest Service activities currently funded under the Wildland Fire Management account under other Forest Service accounts.²³

The Senate chairmen's draft contained higher appropriations than H.R. 3354 for each of the three titles of the bill, with an additional $109.8 million (0.9%) for DOI agencies, $515.6 million (7.0%) for EPA, and $471.3 million (3.9%) for Related Agencies. Most, but not all, DOI agencies would receive higher funding under the Senate chairmen's draft than under the House-passed bill.

The measures included differing amounts for many EPA accounts, with the biggest dollar difference for Environmental Programs and Management—the Senate chairmen's draft had $499.2 million (25.2%) more). Although the draft reflected more money for certain activities in this account (e.g., clean air and geographic programs), the variation between the measures was primarily due to a $386.9 million general reduction for the account in the House bill only.

The measures also reflected differing appropriations levels for many Title III agencies. The Forest Service accounted for the largest dollar difference, with $564.2 million (10.8%) more in the Senate chairmen's draft than in H.R. 3354. Nearly all Forest Service accounts would receive higher funds under the draft, including accounts for State and Private Forestry, Capital Improvement and Maintenance, Land Acquisition, and Wildland Fire Management. The inclusion of the emergency appropriations for wildland fires contributed to the larger overall appropriation in the Senate chairmen's draft. However, the House bill provided higher funding than the draft for some Title III agencies. For instance, for the Indian Health Service, the House bill would provide $96.0 million (1.9%) more than the $5.04 billion in the Senate chairmen's draft. A key difference was the inclusion of funds in the House bill for the Indian Health Care Improvement Fund, which seeks to eliminate deficiencies among Indian health programs.²⁴

Both H.R. 3354 as passed by the House and the Senate chairmen's draft would provide lower appropriations for FY2018 than were enacted for FY2017 ($32.63 billion). The $31.50 billion in the House passed bill would be a reduction of $1.13 billion (3.5%), while the $32.60 billion in the Senate chairmen's draft would be a reduction of $35.2 million (0.1%).

H.R. 3354 Compared with FY2017 Appropriations

For each of the three titles of the bill, H.R. 3354 would decrease funds by a different amount relative to the FY2017 enacted levels. Funding for DOI agencies would decrease by $189.3 million (1.5%). Funding for EPA would decline by $665.1 million (8.3%), the largest dollar amount and percentage of the three titles. The total for all Related Agencies in Title III would decrease by $281.5 million (2.3%).

Although 5 of the 10 DOI agencies would share in the overall decrease, another 5 DOI agencies would increase under the House-passed bill. The largest recommended dollar decrease was $205.5 million (32.4%) for the Departmental Offices account. Much of the decline would result from moving funding for the Office of Natural Resources Revenue from the Departmental Offices account to the Department-Wide Programs account.²⁵ Of the five DOI agencies that would receive increased funding, the largest dollar amount would be $67.8 million (26.8%) for the Office of Surface Mining Reclamation and Enforcement. The increase was primarily the result of additional funds for grants to states for reclaiming abandoned mine lands and related activities.

Within the overall decrease for EPA, the account with the largest dollar decline would be Environmental Programs and Management, with $616.6 million (31.1%) less than FY2017 enacted appropriations. Programs in the account that would be reduced include clean air, enforcement, water-quality protection, and geographic programs. The general reduction of $386.9 million in the account in the House bill also contributed to its overall lower amount relative to FY2017. In contrast, the House bill would increase funds for some EPA accounts, including a tripling of funding for the Water Infrastructure Finance and Innovation Program, with FY2018 funding of $30.0 million. The program helps finance water infrastructure projects.²⁶

Of the 21 Title III agencies funded in FY2017, the largest dollar reduction—$358.4 million (6.4%)—would apply to the Forest Service, largely from reducing funds for wildfire suppression (through eliminating the FLAME account).²⁷ H.R. 3354, as passed by the House, would increase funds for some Title III agencies, with the largest dollar amount—$97.0 million (1.9%)—for the Indian Health Service. The additional funds would be used for hospital and health clinics, the Indian Health Care Improvement Fund,²⁸ and other programs, although funding for some activities would decrease, e.g., contract support costs.

The Senate chairmen's draft would decrease funding for DOI agencies and EPA, while increasing funding for Related Agencies. The overall DOI decrease of $79.5 million (0.6%) was composed of reductions for four agencies, increases for five agencies, and level funding for one agency. The largest recommended dollar decrease was $164.4 million (25.9%) for the Departmental Offices account, again primarily from moving funding for the Office of Natural Resources Revenue to the Department-Wide Programs account. Due to this transfer, the Department-Wide Programs account would receive the largest dollar increase, of $74.2 million (4.8%). However, funding for some Department-Wide Programs would be reduced, with a decline for wildland fire fighting of $58.0 million (5.8%) from the FY2017 level.

The Senate chairmen's draft would fund EPA at $149.5 million (1.9%) less than the FY2017 appropriation. The EPA account with the largest dollar decrease, of $117.5 million (4.5%), would be Environmental Programs and Management. Programs in the account that would be reduced include clean air, enforcement, and water quality protection. The Science and Technology account, which includes funds for research and development, would have the next largest dollar decline, specifically $72.4 million (10.3%). However, funding for some accounts would rise under the draft. Like the House bill, the Senate chairmen's draft would triple funding for the Water Infrastructure Finance and Innovation Program from $10.0 million appropriated in FY2017 to $30.0 million for FY2018.

Title III agencies would increase by $189.8 million (1.5%) in FY2018 under the Senate chairmen's draft. The largest dollar increase—of $205.8 million (3.7%)—was for the Forest Service, largely from higher funding for wildland fires (through multiple accounts). Other Forest Service accounts and programs also would receive additional funds under the draft, including the Capital Improvement and Maintenance account, for facilities and other areas. Although the Senate chairmen's draft contained nearly level funding for the Indian Health Service, monies would be allocated differently than in FY2017. For instance, the draft (like the House-passed bill) would provide additional funds for hospital and health clinics but lower funds for contract support costs.

Both H.R. 3354 as passed by the House and the Senate chairmen's draft would provide higher FY2018 appropriations than requested by President Trump for FY2018 ($27.26 billion). The $31.50 billion in H.R. 3354 was $4.24 billion (15.6%) higher than the President's FY2018 requested appropriations. The $32.60 in the Senate chairmen's draft was $5.34 billion (19.6%) higher than the President's request.

H.R. 3354 Compared with President Trump's FY2018 Request

Of DOI agencies, the Bureau of Ocean Energy Management would receive the largest dollar decrease under H.R. 3354 relative to the President's request for FY2018, specifically $25.0 million (21.9%) less. The difference is attributable to rescissions of appropriations in H.R. 3354 that did not appear in the President's budget request.

EPA funding would be $1.74 billion (30.7%) higher under the FY2018 House-passed bill than was requested by the President for FY2018. For most accounts, the bill contained higher amounts than sought by the President. The largest dollar differences were for the following three accounts. First, the State and Tribal Assistance Grants account would receive $605.7 million (20.6%) more under the bill than was requested by the President, largely due to higher amounts for a variety of categorical grants. Second, the Hazardous Substance Superfund account would receive $354.3 million (46.5%) more under the bill than under the Administration's request, for remedial and other cleanup, enforcement, and other activities. Third, for Environmental Programs and Management, the bill contained $263.9 million (15.4%) more than the President's request. Programs in the account that would receive higher funding include geographic programs, for which the President did not seek funds, and clean air. As noted, the House bill total for this account reflected a general reduction of $386.9 million (as well as a rescission of $41.0 million).

H.R. 3354 would provide Title III agencies with $1.05 billion (9.6%) more in FY2018 than sought by the President. Thirteen agencies would share in the overall increase for Title III agencies, with the three largest dollar increases as follows. First, for the Forest Service, the House-passed bill included $521.3 million (11.1%) more than the President requested. Most Forest Service accounts would receive higher funding under the bill, including larger appropriations for Capital Improvement and Maintenance ($255.0 million, or 301.1% more) for facilities, roads, and trails; the National Forest System ($134.0 million, or 7.7% more); and State and Private Forestry ($71.2 million, or 60.3% more), especially for cooperative forestry programs. Second, for the Indian Health Service, H.R. 3354 contained $397.6 million (8.4%) more than proposed by the President, with higher amounts for hospital and health clinics, Indian health facilities, and the Indian Health Care Improvement Fund. The Administration did not seek appropriations for this fund. Third, the bill included more funding for the National Endowment for the Arts ($116.0 million, or 399.7% more) and the National Endowment for the Humanities ($102.7 million, or 242.7% more) than the President requested. The House bill contained grant funding for these entities, which the President had proposed to eliminate for FY2018, with one exception for the National Endowment for the Humanities.

A handful of agencies would receive less funding under H.R. 3354 than the President requested for FY2018, among them the Dwight D. Eisenhower Memorial Commission and the Smithsonian Institution. For the memorial commission, the bill contained $70.2 million (80.9%) less than the President's request, essentially for construction of the memorial. For the Smithsonian Institution, the bill contained $59.9 million (6.3%) less than the request, primarily for revitalizing facilities.

The Senate chairmen's draft also contained higher appropriations for FY2018 than the Administration's request for each of the bill's three titles. In a number of cases, the draft would provide the largest dollar increases to the same agencies and programs as the House bill. The draft contained $1.56 billion (14.7%) more for DOI agencies than the President's request, with higher appropriations for 8 of the 10 agencies. The Senate chairmen's draft provided the largest dollar increases for the National Park Service and Bureau of Indian Affairs. For the National Park Service, the draft contained an additional $388.7 million (15.2%) for a variety of activities, including facility operations and maintenance, land acquisition and outdoor recreation grants to states, visitor services, and the Historic Preservation Fund. For the Bureau of Indian Affairs, the draft included an additional $379.3 million (15.2%) for education programs and school construction, public safety and justice, and land and water claims settlements, among other programs. As under the House bill, the Bureau of Ocean Energy Management would receive the largest dollar decrease under the Senate chairmen's draft—$15.0 million (13.1%)—due to a rescission of appropriations.

EPA funding would be $2.25 billion (39.9%) higher under the Senate committee draft than was requested by the President for FY2018. The three accounts that would receive the largest increases under the Senate draft were the following. First, for Environmental Programs and Management, the draft contained $763.1 million (44.4%) more than the President's request. This was in part because the draft funded geographic programs, while the President's request did not, and contained higher funding for clean air. Second, the State and Tribal Assistance Grants account would receive $619.6 million (21.1%) more under the draft than under the President's request, largely due to additional monies for categorical grants. Third, the Hazardous Substance Superfund account would receive $328.7 million (43.1%) more under the bill than under the Administration's request, for remedial and other cleanup, enforcement, and other activities.

Title III agencies would be funded at $1.52 billion (13.9%) more in FY2018 under the Senate chairmen's draft than under the President's request. For the Forest Service, the draft contained $1.09 billion (23.0%) more than the President requested, with most accounts receiving higher funding. Wildland Fire Management would receive $380.5 million (15.2%) more, in part due to the inclusion of emergency appropriations for wildfires. Capital Improvement and Maintenance would be funded at $301.5 million (356.0%) more, and State and Private Forestry would have an additional $188.5 million (159.8%) in part for cooperative forestry programs. For the Indian Health Service, the Senate chairmen's draft contained $301.6 million (6.4%) more than proposed by the President, with higher amounts for hospital and health clinics and Indian health facilities. The Senate chairmen's draft included grant funding for the National Endowment for the Arts and the National Endowment for the Humanities, which the President would largely eliminate. As a result, the draft had $120.8 million (416.4%) more for the Arts and $107.5 million (254.2%) more for the Humanities.

The Dwight D. Eisenhower Memorial Commission and the Smithsonian Institution were among the Title III agencies that would receive less funding than requested by the President for FY2018. The $70.0 million (80.6%) less for the Memorial Commission reflects lower funding for construction, and the $68.6 million (7.2%) less for the Smithsonian is primarily because of lower funding for revitalizing facilities.

From October 1, 2017, through January 19, 2018, Interior, Environment, and Related Agencies received appropriations under continuing resolutions. Continuing appropriations were provided because no regular appropriations were enacted before the start of the 2018 fiscal year on October 1, 2017. Continuing appropriations expired after January 19, 2018, before being extended on January 22, 2018 (through February 8, 2018). As a result of the funding lapse, a partial government shutdown went into effect. During the funding gap, agencies generally were prohibited by the Antideficiency Act from spending funds in advance of or in excess of appropriations. Exceptions in the law allowed some agency functions to continue, for instance, for "emergencies involving the safety of human life or the protection of property."²⁹ Under guidance issued by the Office of Management and Budget, agencies in the Interior bill developed and operated under plans that generally summarized agency activities that would cease and agency activities that would continue during a lapse in appropriations for FY2018. These plans also typically identified the number of employees expected to continue working and the number expected to be furloughed.³⁰

Currently, Interior, Environment, and Related Agencies are receiving continuing appropriations through February 8, 2018.³¹ The CR generally provides funding at the FY2017 level (in Division G, P.L. 115-31), minus an across-the-board reduction of 0.6791% for the period covered. It also generally provides funds for continuing projects and activities, under the same authority and conditions and to the same extent and manner as for FY2017.³²

However, the CR included several exceptions related to Interior, Environment, and Related Agencies. These "anomalies" changed the purposes or amounts of funds, extended expiring provisions of law, or made other changes in existing law. They related to a transfer of funds for wildland fire suppression; funding levels for the operation of the National Park System, EPA's Water Infrastructure Finance and Innovative Program Account, and Indian health services and facilities; and an extension of authorities related to recreation fees, the Dwight D. Eisenhower Memorial Commission, and EPA pesticide fee collection.³³

For FY2018, a total of $576.5 million in emergency supplemental appropriations has been enacted for wildland fires.³⁴ Of the total, $526.5 million was for the Forest Service, with $184.5 million for Wildland Fire Management and $342.0 million for the FLAME account. The remaining $50.0 million was for DOI Wildland Fire Management.³⁵