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The Current Continuing Resolution (CR)

On September 26, 2024, a CR, H.R. 9747,was enacted, providing appropriations through December 20, 2024, among other things (P.L. 118-83). According to a cost estimate for H.R. 9747 from the Congressional Budget Office (CBO), the levels of discretionary budget authority in the bill include an annualized base defense level of $888.1 billion and a base nondefense level of $707.6 billion for a total of $1.596 trillion. The annualized amounts provided by the CR, therefore, are estimated by CBO to be in compliance with the FRA defense and nondefense discretionary spending limits for FY2025.

FRA Rules Potentially Applying to CRs Beyond January 1

In addition to establishing spending caps, the FRA included a provision described as incentivizing Congress to enact regular, full-year appropriations legislation instead of relying on short-term CRs. This provision requires that if a CR is in effect on January 1, 2025, for any budget account, the discretionary spending limits for FY2025 are to be revised to the levels shown in Table 2. The revisions would reduce the overall amount of spending permitted for FY2025 by roughly $20 billion, but they would entail a $26 billion increase compared to the original nondefense discretionary spending limit and a $45 billion decrease compared to the original defense discretionary spending limit. These revised levels, however, would not be enforced until April 30, 2025, should a CR still be in effect and would revert back to the original limits upon the enactment of full-year appropriations.

Table 2. FY2025 Original and Revised Discretionary Limits on Budget Authority Under the

FRA

In Billions of Dollars

Defense

Discretionary

Nondefense

Discretionary

Total

Original levels $895.21 $710.69 $1,605.90

Revised levels under a CR $849.78 $736.45 $1,586.23

Difference -$45.43 +$25.67 -$19.67

Sources: P.L. 118-5 and the CBO cost estimate referenced in P.L. 118-5 as “table 1–S of H.R. 2617, published on December 21, 2022,” minus 1%. Notes: These levels reflect only base spending, which excludes funding that would be exempt from budgetary enforcement.

Table 3 provides information on which spending levels would be in effect, and when those levels will be enforced, under three different potential scenarios.

Table 3. Current Potential Enforcement Scenarios

Scenario Limits in Effect Date of OMB Final Sequestration Report

Full-year FY2025 appropriations are enacted for all 12 bills prior to January 1, 2025.

Original limits Within 15 calendar days after the end of a session of Congress

Full-year FY2025 appropriations are enacted for all 12 bills after January 1 but prior to April 30, 2025.

Original limits 15 business days after enactment of all full-year appropriations

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A short-term CR is operational for any appropriations bill on April 30, 2025.

Revised limits April 30, 2025

Full-year appropriations are enacted after April 30, 2025.

Original limits 15 calendar days after the enactment of all full-year appropriations

Sources: FRA; 2 U.S.C. §904; OMB’s Memorandum for the Heads of Executive Departments and Agencies, Frequently Asked Questions Related to Fiscal Year 2024 Discretionary Spending Limits, issued December 22, 2023.

For FY2024, the revised levels were triggered on January 1, 2024, because a CR was still in effect. OMB issued guidance to agencies, however, stating, among other things, that agencies should “not attempt to self-sequester and must continue as normal” in order to comply with current law, as enforcement of the spending limits would not occur until after the enactment of further FY2024 appropriations legislation. All regular appropriations for FY2024 were enacted by April 30, 2024, so the caps reverted back to the original limits enacted by the FRA, and no sequester order was necessary.

Author Information

Drew C. Aherne Analyst on Congress and the Legislative Process

^{Megan S. Lynch}

Specialist on Congress and the Legislative Process

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