Order Code RL31303
Report for Congress
Received through the CRS Web
Appropriations for FY2003:
Labor, Health and Human Services,
and Education
July 1, 2002
Paul M. Irwin
Specialist in Social Legislation
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

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Appropriations are one part of a complex federal budget process that includes budget
resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and
budget reconciliation bills. The process begins with the President’s budget request and is
bound by the rules of the House and Senate, the Congressional Budget and Impoundment
Control Act of 1974 (as amended), the Budget Enforcement Act of 1990, and current
program authorizations.
This report is a guide to one of the 13 regular appropriations bills that Congress considers
each year. It is designed to supplement the information provided by the House and Senate
Labor, Health and Human Services, and Education Appropriations Subcommittees. It
summarizes the current legislative status of the bill, its scope, major issues, funding levels,
and related legislative activity. The report lists the key CRS staff relevant to the issues
covered and related CRS products.
This report is updated as soon as possible after major legislative developments, especially
following legislative action in the committees and on the floor of the House and Senate.
NOTE: A Web version of this document with active links is
available to congressional staff at:
[http://www.crs.gov/products/appropriations/apppage.shtml].

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Appropriations for FY2003: Labor, Health and Human
Services, and Education
Summary
This report tracks the enactment by the 107th Congress of the FY2003
appropriations for the Departments of Labor, Health and Human Services, and
Education, and Related Agencies (L-HHS-ED). This Act provides discretionary
funds for three federal departments and related agencies. The report summarizes
L-HHS-ED discretionary funding issues, but not authorization or entitlement issues.
On February 4, 2002, the President submitted the FY2003 budget request to the
Congress. The L-HHS-ED request is $131.7 billion for discretionary programs; the
comparable FY2002 amount is $127.3 billion, enacted primarily through P.L. 107-
116. The L-HHS-ED Appropriations Subcommittees of the House and Senate have
begun hearings on the FY2003 request, but FY2003 bills will become available only
after the full Appropriations Committees report legislation.
U.S. Department of Labor (DOL): DOL discretionary appropriations are
$12.4 billion in FY2002; $11.5 billion is requested for FY2003. A decrease of $0.5
billion is requested for job training programs under the Workforce Investment Act.
U.S. Department of Health and Human Services (DHHS): DHHS
discretionary appropriations are $56.7 billion in FY2002; $59.3 billion is requested
for FY2003. Increases are requested of $3.7 billion for the National Institutes of
Health, $130 million for Head Start, $130 million for Safe and Stable Families, and
$141 million for the Administration on Aging. An initial $184 million is requested
for the Health Facilities Construction Consolidation Initiative. An increase of $114
million is requested for Community Health Centers, but the $120 million Community
Access Program would be eliminated. A decrease of $368 million is proposed for
Health Professions, $422 million less for the Centers for Disease Control and
Prevention, $300 million less for the Low-Income Home Energy Assistance Program,
and $137 million less for the Public Health and Social Service Emergency Fund. The
request would eliminate the $315 million Health Care and Other Facilities program.
U.S. Department of Education (ED): ED discretionary appropriations are
$48.9 billion in FY2002; $51.6 billion is proposed for FY2003. Increases are
requested of $1.0 billion each for Title I Part A Grants to Local Educational Agencies
and for the Individuals with Disabilities Education Act (IDEA) Part B Grants to
States. An additional $0.5 billion is requested for Pell Grants, along with an FY2002
supplemental of $1.3 billion. An increase of $100 million is requested for Reading
First. The new Charter Schools Facilities Initiative would be funded at $100 million.
Decreases would include the elimination of the $163 million Rural Schools program,
$749 million less for Fund for the Improvement of Education (FIE), and $142 million
less for the Fund for the Improvement of Postsecondary Education (FIPSE).
Related Agencies: Discretionary appropriations for related agencies are $9.2
billion in FY2002; $9.7 billion is requested for FY2003. Increases are requested of
$351 million for Administrative Expenses at the Social Security Administration, and
$68 million more for the Corporation for National and Community Service.

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Key Policy Staff
CRS
Area of Expertise
Name
Division
Tel.
Coordinator
Paul M. Irwin
DSP
7-7573
U.S. Department of Labor
Job training and employment services
Ann Lordeman
DSP
7-2323
Labor market information
Linda Levine
DSP
7-7756
Labor standards enforcement
William G. Whittaker
DSP
7-7759
Mine Safety and Health Administration
Edward B. Rappaport
DSP
7-7740
Occupational Safety and Health Administration
Edward B. Rappaport
DSP
7-7740
Older Americans Act, employment programs
Carol V. O’Shaughnessy
DSP
7-7329
Pension and Welfare Benefits
Paul J. Graney
DSP
7-2290
Trade Adjustment Assistance
Paul J. Graney
DSP
7-2290
Unemployment compensation
Celinda Franco
DSP
7-7360
Welfare-to-Work
Christine Devere
DSP
7-2587
Welfare-to-Work
Gene Falk
DSP
7-7344
Workforce Investment Act
Ann Lordeman
DSP
7-2323
U.S. Department of Health and Human Services
Abortion, legal issues
Karen J. Lewis
ALD
7-6190
Abortion, legal issues
Jon Shimabakuro
ALD
7-7990
Abortion procedures
Judith A. Johnson
DSP
7-7077
AIDS, Ryan White programs
Judith A. Johnson
DSP
7-7077
Bioterrorism, DHHS funding
C. Stephen Redhead
DSP
7-2261
Bioterrorism, DHHS funding
Pamela W. Smith
DSP
7-7048
Cancer research
Judith A. Johnson
DSP
7-7077
Centers for Disease Control and Prevention
Pamela W. Smith
DSP
7-7048
Child care and development
Melinda Gish
DSP
7-4618
Child welfare
Emilie Stoltzfus
DSP
7-2324
Cloning, Stem Cell Research
Judith A. Johnson
DSP
7-7077
Community Health Centers
Sharon Kearney Coleman
DSP
7-7367
Family Planning, Title X
Sharon Kearney Coleman
DSP
7-7367
Head Start
Melinda Gish
DSP
7-4618
Health professions education and training
Bernice Reyes-Akinbileje
DSP
7-2260
Immigration and refugee policy
Ruth Wasem
DSP
7-7342
Immunization
Pamela W. Smith
DSP
7-7048
Low-Income Home Energy Assistance Program
Emilie Stoltzfus
DSP
7-2324
Maternal and Child Health Block Grant
Sharon Kearney Coleman
DSP
7-7367
Medicaid
Elicia Herz
DSP
7-1377
Medicare
Jennifer O’Sullivan
DSP
7-7359
Needle exchange, AIDS
Judith A. Johnson
DSP
7-7077
NIH, health research policy
Pamela W. Smith
DSP
7-7048
NIH, health research policy
Judith A. Johnson
DSP
7-7077
Older Americans Act
Carol V. O’Shaughnessy
DSP
7-7329
Social Services Block Grant
Melinda Gish
DSP
7-4618

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CRS
Area of Expertise
Name
Division
Tel.
State Children’s Health Insurance Program
Evelyne Baumrucker
DSP
7-8913
Stem Cell Research, Cloning
Judith A. Johnson
DSP
7-7077
Substance Abuse and Mental Health Services
C. Stephen Redhead
DSP
7-2261
Tobacco settlement
C. Stephen Redhead
DSP
7-2261
Welfare reform
Vee Burke
DSP
7-7304
Welfare reform
Gene Falk
DSP
7-7344
U.S. Department of Education
Adult education and literacy
Paul M. Irwin
DSP
7-7573
After-school programs
Gail McCallion
DSP
7-7758
Assessment in education
Wayne C. Riddle
DSP
7-7382
Bilingual education
Jeff Kuenzi
DSP
7-8645
Charter Schools
David Smole
DSP
7-0624
Education block grants
Paul M. Irwin
DSP
7-7573
Education of the Disadvantaged, Title I
Wayne C. Riddle
DSP
7-7382
Education technology
James B. Stedman
DSP
7-7356
English Language Acquisition
Jeff Kuenzi
DSP
7-8645
Impact Aid
Richard N. Apling
DSP
7-7352
Indian Education
Roger Walke
DSP
7-8641
Pell Grants
James B. Stedman
DSP
7-7356
Reading programs
Gail McCallion
DSP
7-7758
Rehabilitation Act
Carol V. O’Shaughnessy
DSP
7-7329
Safe and Drug-Free Schools and Communities
Edith Fairman Cooper
DSP
7-7019
School facilities
Susan Boren
DSP
7-6899
Special education, IDEA
Richard N. Apling
DSP
7-7352
Special education, IDEA, legal issues
Nancy Lee Jones
ALD
7-6976
Student aid
James B. Stedman
DSP
7-7356
Student loans
Adam Stoll
DSP
7-4375
Teacher recruitment, preparation, and training
James B. Stedman
DSP
7-7356
21st Century Community Learning Centers
Gail McCallion
DSP
7-7758
Vocational and Technical Education
Richard N. Apling
DSP
7-7352
Related Agencies
Corporation for National and Community
Ann Lordeman
DSP
7-2323
Service (VISTA, Senior Corps)
Corporation for Public Broadcasting
Glenn McLoughlin
RSI
7-7073
Library Services
Gail McCallion
DSP
7-7758
Museum Services
Susan Boren
DSP
7-6899
National Labor Relations Board
Gail McCallion
DSP
7-7758
National Labor Relations Board, legal issues
Jon Shimabukuro
ALD
7-7990
Railroad Retirement Board
Dawn Nuschler
DSP
7-6283
Social Security Administration
Geoffrey Kollmann
DSP
7-7316
Supplemental Security Income
Jennifer Lake
DSP
7-0620
Division abbreviations: ALD = American Law; DSP = Domestic Social Policy; and RSI = Resources,
Science, and Industry.

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Contents
Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary and Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Program Level and Current Year Appropriations . . . . . . . . . . . . . . . . . . . . . 3
Terrorism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Other Assistance Available for Emergencies . . . . . . . . . . . . . . . . . . . . . 5
Earmarks for Specific Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Funding Changes Proposed by the President . . . . . . . . . . . . . . . . . . . . . . . . . 6
302(a) and 302(b) Allocation Ceilings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Advance Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Major Funding Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Related World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
U.S. Department of Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
For Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Selected World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
U.S. Department of Health and Human Services . . . . . . . . . . . . . . . . . . . . . . . . . 16
Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Bioterrorism Preparedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Abortion: Annual Funding Restrictions . . . . . . . . . . . . . . . . . . . . . . . 18
Embryonic Stem Cell Research: Funding Restrictions . . . . . . . . . . . . 18
For Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Selected World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
U.S. Department of Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Pell Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Student Aid Program Administration . . . . . . . . . . . . . . . . . . . . . . . . . 25
IDEA Part B Grants to States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Forward Funding and Advance Appropriations . . . . . . . . . . . . . . . . . . 25
For Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Selected World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

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Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
For Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Selected World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Related Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
FY2003 Budget Resolution, H.Con.Res. 353/S.Con.Res. 100 . . . . . . . . . . 36
Further FY2002 Supplemental Appropriations, H.R. 4775 . . . . . . . . . . . . . 36
Appropriations Action in the 107th Congress, First Session . . . . . . . . . . . . 37
Appendix A: Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Appendix B: Scope of the L-HHS-ED Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Appendix C: Terrorism Funding in the L-HHS-ED Bill . . . . . . . . . . . . . . . . . . 43
Terrorism Funding, FY2003 Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Terrorism Funding, FY2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Further FY2002 Emergency Funding . . . . . . . . . . . . . . . . . . . . . . . . . 45
Terrorism Funding, FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Supplemental FY2001 Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
List of Tables
Table 1. Legislative Status of Labor, Health and Human Services,
and Education Appropriations, FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Table 2. Summary of L-HHS-ED Appropriations . . . . . . . . . . . . . . . . . . . . . . . . 3
Table 3. 302(b) Discretionary Allocations for L-HHS-ED Programs . . . . . . . . . . 8
Table 4. L-HHS-ED Discretionary Funding Trends from FY1998 . . . . . . . . . . 10
Table 5. Department of Labor Discretionary Appropriations . . . . . . . . . . . . . . . 12
Table 6. Detailed Department of Labor Appropriations . . . . . . . . . . . . . . . . . . . 14
Table 7. U.S. Department of Health and Human Services
Discretionary Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Table 8. Detailed Department of Health and Human Services Appropriations . 21
Table 9. Department of Education Discretionary Appropriations . . . . . . . . . . . 23
Table 10. Detailed Department of Education Appropriations . . . . . . . . . . . . . . 29
Table 11. Related Agencies Discretionary Appropriations . . . . . . . . . . . . . . . . . 31
Table 12. Detailed Related Agencies Appropriations . . . . . . . . . . . . . . . . . . . . . 34
Table B.1. Scope of the L-HHS-ED Bill, FY2002 . . . . . . . . . . . . . . . . . . . . . . . 40

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Appropriations for FY2003:
Labor, Health and Human Services,
and Education
Most Recent Developments
The FY2003 appropriations process began when the President submitted the
FY2003 budget request to Congress on February 4, 2002. House and Senate
Subcommittees on Labor, Health and Human Services, and Education (L-HHS-ED)
Appropriations have been holding hearings on the FY2003 request.
In related action, the House passed its version of the FY2003 congressional
budget resolution, H.Con.Res. 353, on March 20, 2002. The Senate Budget
Committee reported its version of the resolution, S.Con.Res. 100, on March 22, but
the full Senate has not yet acted on it. On May 24, 2002, the House passed an
FY2002 Supplemental Appropriations, H.R. 4775; the Senate amended and passed
its version of H.R. 4775 on June 7, 2002.
Status
Table 1 tracks the key legislative steps that are necessary to enact the FY2003
L-HHS-ED Appropriations Act. House and Senate Appropriations Subcommittees
have begun to hold hearings on the FY2003 budget request, but a bill will not be
formally introduced until after markup at the full committee level.
Table 1. Legislative Status of Labor, Health and Human
Services, and Education Appropriations, FY2003
Subcommittee
Conference
markup
report approval
House
House
Senate
Senate
Conference
House
Senate
Report
passage
Report
passage
Report
House
Senate
Public law
— a
— b
— — — — — — — —
Note: uc = unanimous consent.
a The House L-HHS-ED Appropriations Subcommittee began hearings on FY2003 appropriations on
February 13, 2002.
b The Senate L-HHS-ED Appropriations Subcommittee began hearings on FY2003 appropriations on
February 28, 2002.

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CRS-2
Congressional consideration continues to be given to FY2002 L-HHS-ED
Appropriations. Regular FY2002 L-HHS-ED Appropriations were enacted through
P.L. 107-116 (H.R. 3061, H.Rept. 107-342, January 10, 2002). Additional L-HHS-
ED appropriations were enacted through the FY2002 anti-terrorism supplemental
P.L. 107-117 (H.R. 3338, H.Rept. 107-350, January 10, 2002), an Act that also
provides the Department of Defense Appropriations for FY2002. Further FY2002
supplemental appropriations for some L-HHS-ED programs are proposed in the
House and Senate versions of H.R. 4775, but a conference agreement has not yet
been reached. For legislative details, see Related Legislation, page 36.
DATA NOTE: Unless otherwise indicated in this report, data on FY2002
appropriations and the FY2003 budget request are based on the April 15, 2002 staff
table of the House Appropriations Committee. The FY2002 amounts include
allocations from P.L. 107-117, the Department of Defense and Emergency
Supplemental Appropriations for Recovery from and Response to Terrorist Attacks
on the United States Act, 2002 (enacted January 10, 2002). In most cases data
represent net funding for specific programs and activities and take into account
current and forward funding and advance appropriations; however, all data are
subject to additional budgetary scorekeeping. Except where noted, budget data refer
only to those programs within the purview of the L-HHS-ED appropriations bill, and
not to all programs within the jurisdiction of the relevant departments and agencies.
Summary and Key Issues
This report describes the President’s proposal for FY2003 appropriations for
L-HHS-ED programs, as submitted to the Congress February 4, 2002. It compares
the President’s FY2003 request to the FY2002 L-HHS-ED amounts. It tracks
legislative action and congressional issues related to the FY2003 L-HHS-ED
appropriations bill, with particular attention paid to discretionary programs. In
addition, the report summarizes activities related to the annual budget process, such
as the congressional budget resolution, continuing resolutions, and supplemental
appropriations (see Related Legislation, page 36). However, the report does not
follow specific funding issues related to mandatory L-HHS-ED programs — such as
Medicare or Social Security — nor will it follow the authorizing legislation necessary
prior to funding some of the President’s initiatives. For a glossary of budget terms,
see Appendix A: Terminology, page 39. For a discussion of the jurisdiction of the
L-HHS-ED bill, see Appendix B: Scope of the L-HHS-ED Bill, page 40. For a
separate description of terrorism funding, see Appendix C: Terrorism Funding in the
L-HHS-ED Bill, page 43.
The L-HHS-ED bill typically is one of the more controversial of the 13 regular
appropriations bills, not only because of the size of its funding total and the scope of
its programs, but also because of the continuing importance of various related issues,
such as restrictions on the use of federal funds for abortion and stem cell research.
This bill provides most of the discretionary funds for three federal departments and
several related agencies including the Social Security Administration (SSA). Of the
13 annual appropriations bills, the L-HHS-ED bill is the largest single source of
discretionary funds for domestic federal programs; the Defense bill is the largest

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CRS-3
source of discretionary funds among all federal programs. For FY2002, the
L-HHS-ED bill accounted for $124.6 billion (17.9%) and the Defense bill accounted
for $320.5 billion (46.0%) of the estimated $696.5 billion total for all federal
discretionary budget authority, as reported in Budget of the United States Government
Fiscal Year 2003, Table S-8. This section summarizes the larger funding changes
proposed for L-HHS-ED and related budget issues such as the funding of activities
related to terrorism, earmarks for specific projects, 302(b) allocations, and advance
appropriations. Later sections will provide additional details for each L-HHS-ED
department.
Program Level and Current Year Appropriations
Table 2 summarizes the L-HHS-ED appropriations for FY2003, including both
discretionary and mandatory appropriations.
Table 2. Summary of L-HHS-ED Appropriations
($ in billions)
FY2002
FY2003
FY2003
FY2003
FY2003
Type of budget authority
enacted a
request
House
Senate
conference
Discretionary appropriations
Program level: current bill for
$127.3
$131.7
— — —
any year
Current year: current year from
126.3
132.2
— — —
any bill
Advances for future years (from
19.3
19.3
— — —
the current bill)
Advances from prior years
18.8
19.2
— — —
(from previous bills)
Scorekeeping adjustments
-0.5
0.6
—
—
—
Current year discretionary and mandatory funding
Discretionary
126.3
132.2
— — —
Mandatory
272.8
288.7
— — —
Total current year
399.1
420.9
—
—
—
Grand total of funding for L-HHS-ED bill, any year
Grand total any year
$410.9
$417.8
—
—
—
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002. Data are given only for
programs included in the L-HHS-ED appropriations bill.
Note: Both FY2002 and FY2003 mandatory amounts are estimates that are subject to adjustments
after the close of their respective fiscal years.
a The FY2002 amounts are based on P.L. 107-116 and P.L. 107-117.

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CRS-4
Table 2 shows various aggregate measures of the FY2002 enacted and the
proposed FY2003 L-HHS-ED appropriations, including discretionary program level,
current year, and advance appropriations, as well as scorekeeping adjustments for the
L-HHS-ED bill.
! Program level appropriations reflect the total discretionary
appropriations in a given bill, regardless of the year in which they
will be spent, and therefore include advance funding for future years.
Unless otherwise specified, appropriations levels in this report refer
to program level amounts.
! Current year appropriations represent discretionary
appropriations in a given bill for the current year, plus discretionary
appropriations for the current year that were enacted in prior years.
Current year discretionary appropriations are similar to the amount
counted for the 302(b) allocations ceilings (discussed later, page 7).
! Advance appropriations are funds that will not become available
until after the fiscal year for which the appropriations are enacted –
for example, funds included in the FY2002 Act that cannot be spent
until FY2003 at the earliest.
! Scorekeeping adjustments are made to account for special funding
situations; the Congressional Budget Office (CBO) monitors these
adjustments.
Because appropriations may consist of mixtures of budget authority enacted in
various years, two summary measures are frequently used — program level
appropriations and current year appropriations. How are these measures related? For
an “operational definition,” program level funding equals (a) current year, plus (b)
advances for future years, minus (c) advances from prior years, and minus (d)
scorekeeping adjustments. Table 2 shows these amounts, along with current year
funding for mandatory programs and some grand totals for the L-HHS-ED bill.
Other FY2002 Discretionary Estimates. The two estimates for FY2002
L-HHS-ED discretionary appropriations that are shown in Table 2 — $127.3 billion
for program level and $126.3 billion for current year appropriations — are based on
the April 15, 2002 staff table of the House Appropriations Committee. Several other
estimates exist that may differ because of scorekeeping and other definitional
distinctions. The Office of Management and Budget (OMB) estimated the FY2002
L-HHS-ED discretionary total to be $124.6 billion (Budget of the United States
Government Fiscal Year 2003, Table S-8). The FY2002 L-HHS-ED conference
report table in H.Rept. 107-342 (page 228) shows $123.4 billion as the current year
discretionary total. The CBO keeps track of discretionary appropriations for each
Appropriations Subcommittee bill, and shows the total regular and emergency
amount for L-HHS-ED in “CBO’s Current Status of Discretionary Appropriations,”
available at [http://www.cbo.gov/]. According to the CBO, the FY2002 L-HHS-ED
discretionary total is $127.5 billion for the House and $128.1 billion for the Senate
(downloaded June 14, 2002). The CBO amounts include supplemental
appropriations and rescissions; however, CBO data may reflect legislation that has
been reported or passed only by the House or the Senate, and do not necessarily
distinguish amounts actually enacted.

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CRS-5
Terrorism
One of the key issues of L-HHS-ED appropriations in the past year has been the
level of funding for activities that relate to preparing for and responding to terrorism.
Several L-HHS-ED programs, particularly those dealing with bioterrorism, address
these needs directly. Other L-HHS-ED programs, such as emergency grants for
dislocated workers, are available to provide assistance in response to many kinds of
emergencies, including terrorism. Both types of programs were in place prior to the
terrorist attacks of September 11, 2001. The funding for both types of programs has
been augmented since that date. Annual L-HHS-ED terrorism funding levels are as
follows.
! For FY2003, the President proposes $4.3 billion, mostly for U.S.
Department of Health and Human Services (DHHS) programs that
prevent, or respond to, bioterrorism, including public health and
hospital preparedness.
! On March 20, 2002, the President proposed an FY2002 emergency
supplemental that would include an additional $750 million for
dislocated worker programs at the U.S. Department of Labor (DOL),
and an FY2002 rescission of $50 million from DHHS programs.
! For FY2002 to date, $3.0 billion has been enacted for DHHS
bioterrorism programs and $220 million for DOL primarily for
emergency worker compensation programs.
! For FY2001, $291 million was enacted before the terrorist attacks of
September 11, 2001, primarily for DHHS bioterrorism programs;
after the attacks, an additional $126 million was enacted for DHHS
programs for health-related needs in disaster areas and $29 million
for DOL programs for temporary jobs to clean up after the disaster.
For funding details for specific L-HHS-ED terrorism programs, see Appendix C:
Terrorism Funding in the L-HHS-ED Bill, page 43.
Other Assistance Available for Emergencies. Some L-HHS-ED
programs are designed with enough flexibility that their funds might be used to
respond to emergencies. For example, the National Emergency Grants under the
DOL Dislocated Workers program, or the Low-Income Home Energy Assistance
Program (LIHEAP) or the Social Services Block Grant (SSBG) programs
administered by DHHS might be available for such situations. In addition, other
L-HHS-ED programs automatically address some types of emergency needs, as in the
case of the DOL Unemployment Compensation program, which provides financial
assistance for those suddenly finding themselves unemployed. For additional
information on assistance available for layoffs and unemployment benefits in times
of emergencies, see: [http://www.congress.gov/brbk/html/ebter96.html].
Earmarks for Specific Projects
The earmarking of funds for specific projects in appropriations bills has become
an issue of contention between the Administration and the Congress, and the issue
extends to L-HHS-ED projects. In some instances, L-HHS-ED appropriations are

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CRS-6
earmarked for specific recipients or locations, either in the public law or in the
conference report. For the most part, the authorizing statute gives the general
purpose for such earmarks, such as “projects for the improvement of postsecondary
education,” but subsequently an appropriations act or conference report designates
specific recipients by means of earmarks. Such designations usually bypass standard
administrative procedures for an agency’s competitive distribution of awards. For
FY2002, P.L. 107-116 (conference report H.Rept. 107-342) included an estimated
1,600 earmarks for specific projects for which an estimated $1.0 billion has been
appropriated. As shown in Table 2, the total FY2002 L-HHS-ED appropriation was
$411.1 billion ($126.3 billion for current year discretionary funds). These earmarks
therefore represent 0.2% of the L-HHS-ED total (0.8% of the discretionary total) for
FY2002. The President has proposed the elimination of congressional earmarks in
appropriations for the past two years, but the Congress has continued this practice.
The President again has proposed abolition in the FY2003 budget request.
Funding Changes Proposed by the President
With regard to the President’s FY2003 budget, the issues in the early stages of
the appropriations process generally relate to proposed funding changes. The
summary below notes changes proposed for discretionary budget authority of at least
$100 million compared to the L-HHS-ED appropriations for FY2002. Viewing this
list by itself should be done with caution, since the relative impact of a $100 million
funding change to a $500 million program (a 20% increase or decrease) is greater
than a $100 million change to a $5 billion program (a 2% increase or decrease).
Later on in this report, the discussions for budgets of individual departments include
tables to compare the FY2003 request with the FY2002 funding for many of the
major programs in the L-HHS-ED bill. Overall, $131.7 billion in discretionary
appropriations is requested for L-HHS-ED, a 3.5% increase over the FY2002 amount
of $127.3 billion.
! For DOL programs, a reduction of $0.5 billion is requested for job
training programs authorized by the Workforce Investment Act of
1998 (WIA). Overall, $11.5 billion in discretionary appropriations
is requested for DOL, a 7.3% decrease compared to the FY2002
amount of $12.4 billion.
! For DHHS programs, the largest discretionary funding change (in
absolute terms) is a requested increase of $3.7 billion for the
National Institutes of Health (NIH). An increase of $114 million is
requested for Community Health Centers; however, the $120 million
Community Access Program would be eliminated. Other increases
include $130 million additional for Head Start and $130 million
more for Safe and Stable Families. An initial $184 million is
requested for the Health Facilities Construction Consolidation
proposal. Requested decreases include a $368 million reduction for
Health Professions; $422 million less for the Centers for Disease
Control and Prevention (CDC); $300 million less for the Low-
Income Home Energy Assistance Program (LIHEAP); and a $137
million reduction for the Public Health and Social Services
Emergency Fund (PHSSEF). The request would eliminate the $312

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CRS-7
million Health Care and Other Facilities program. Overall, $59.3
billion in discretionary appropriations is requested for DHHS, a
4.6% increase over the FY2002 amount of $56.7 billion.
! For ED programs, the two largest discretionary changes (in absolute
terms) would be a $1.0 billion increase each for Title I Part A Grants
to Local Educational Agencies (LEAs) for the Education of the
Disadvantaged and the Individuals with Disabilities Education Act
(IDEA) Part B Grants to States. An additional $0.5 billion is
requested for Pell Grants, along with a $1.3 billion FY2002
supplemental. Other major increases include $100 million more for
the Reading First programs, and $100 million for a new Charter
Schools Facilities Initiative. Decreases would include elimination
of the $163 million Rural Schools program; a $749 million decrease
for Fund for the Improvement of Education (FIE); and $142 million
less for the Fund for the Improvement of Postsecondary Education
(FIPSE). Discretionary funding of $932 million is requested to
support the creation of a new unified discretionary account for the
administration of federal student aid programs. This proposal would
be offset in part by a $797 million reduction obtained through a
reclassification of certain mandatory funds for student aid
administrative activities. Overall, $51.6 billion in discretionary
appropriations is requested for ED, a 5.5% increase over the FY2002
amount of $48.9 billion.
! For the related agencies, the budget includes proposed increases of
$351 million additional for Social Security Administration (SSA)
Limitation on Administrative Expenses Overall, $9.7 billion in
discretionary appropriations is requested for related agencies, a 5.4%
increase over the FY2002 amount of $9.2 billion.
302(a) and 302(b) Allocation Ceilings
The maximum budget authority for annual L-HHS-ED appropriations is usually
determined through a two-stage congressional budget process. In the first stage, the
Congress agrees to overall spending totals in the annual concurrent resolution on the
budget. Subsequently, these amounts are allocated among committees, usually
through the statement of managers for the conference report on the budget resolution.
These amounts are known as the 302(a) allocations. They include the discretionary
totals available to the House and Senate Appropriations Committees for enactment
in annual appropriations. Currently, the Congress is considering a budget resolution
for FY2003, H.Con.Res. 353/S.Con.Res. 100, but it has not yet reached an
agreement. For legislative details, see Related Legislation, page 36; for procedural
information, see CRS Report 98-721, Introduction to the Federal Budget Process;
and for a discussion of possible alternative actions if the Congress fails to agree to
a budget resolution, see CRS Report RL31443, The “Deeming Resolution”: A
Budget Enforcement Tool.
In the second stage of the process, the appropriations committees allocate the
302(a) discretionary funds among their subcommittees for each of the 13 annual

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CRS-8
appropriations bills. These amounts are known as the 302(b) allocations. These
allocations must add up to no more than the 302(a) discretionary allocation, and form
the basis for enforcing budget discipline, since any bill reported with a total above
the ceiling is subject to a point of order. The 302(b) allocations can and do get
adjusted during the year as the various appropriations bills progress toward final
enactment. Despite the lack of a House-Senate agreement on the FY2003 budget
resolution, the initial 302(b) allocations for the FY2003 L-HHS-ED appropriations
bills have been announced by the appropriations committees, as shown in Table 3.
Comparable amounts for FY2002 and the President’s FY2003 budget are also shown.
Subject to scorekeeping considerations, 302(b) allocations are similar to current year
discretionary appropriations. Both the 302(a) and the 302(b) allocations regularly
become contested issues in their own right.
Table 3. 302(b) Discretionary Allocations
for L-HHS-ED Programs
(budget authority in billions of dollars)
FY2002
FY2003
FY2003
FY2003
FY2003
enacted
request
House
Senate
conference
comparable
comparable
allocation
allocation
comparable
$126.1
$131.4
$129.9
$134.0
—
Source: The House FY2003 allocation is based on the House Appropriations Committee press release
of June 24, 2002; the Senate FY2003 allocation is based on the Senate Appropriations Committee
press release of June 27, 2002. The comparable FY2002 enacted appropriations and the FY2003
budget request data are based on the June 26, 2002 staff table of the House Appropriations Committee.
The FY2002 comparable amount is based on P.L. 107-116 and P.L. 107-117.
Note: Under current scorekeeping provisions, advance appropriations that were enacted as part of the
FY2002 appropriations are counted in FY2003 or later, and any advance appropriations enacted as
part of the FY2003 appropriations would be counted in FY2004 or later.
Advance Appropriations
Advance appropriations occur when funding enacted in one fiscal year cannot
be spent until the following fiscal year, at the earliest (see CRS Report RS20441,
Advance Appropriations, Forward Funding, and Advance Funding). For example,
P.L. 107-116, which enacted FY2002 L-HHS-ED appropriations, provided $380
million for the Corporation for Public Broadcasting (CPB) for use in FY2004. The
enactment of advance appropriations can be undertaken to meet several objectives.
These include the provision of long-term budget information to agencies and other
recipients, such as state and local educational systems, to enable better planning of
future program activities and personnel levels. The more contentious aspect of
advance appropriations, however, is that they avoid the 302(a) and 302(b) allocation
ceilings for the current year. However, such funding must be counted in the year in
which it first becomes available, thereby using up ahead of time part of what will be
counted against the allocation ceiling in future years. For an example of the impact
of advance appropriations on program administration, see the discussion below in the
section on ED (page 25).

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CRS-9
The FY1999 and FY2000 annual L-HHS-ED appropriations bills provided
significant increases in advance appropriations for discretionary programs. Since
FY2000, these amounts appear to have stabilized at approximately $19 billion, or
about 15% of the current L-HHS-ED discretionary appropriation. Annual amounts
from FY1998 to the present are as follows:
! FY1998, $4.0 billion;
! FY1999, $8.9 billion;
! FY2000, $19.0 billion;
! FY2001, $18.8 billion;
! FY2002, $19.3 billion, as enacted by P.L. 107-116; and
! FY2003 request, $19.3 billion.
For FY2002, the President’s budget proposed the elimination of advance
appropriations for federal discretionary programs, including those for L-HHS-ED
programs, for FY2003 and beyond. The Congress rejected that proposal, and
increased such funding for L-HHS-ED programs instead. For FY2003, the
President’s request would maintain advance appropriations for L-HHS-ED programs
at the current level. In general, the House-passed version of the FY2003 budget
resolution would maintain advance appropriations only for programs currently
receiving such appropriations; see §301 of H.Con.Res. 353.
Major Funding Trends
The L-HHS-ED appropriations bills combine mandatory and discretionary
funds; however, the Appropriations Committees fully control only the discretionary
funds. Mandatory funding levels for programs included in the annual appropriations
bills are modified through changes in the authorizing legislation. These changes
typically are accomplished through the authorizing committees and combined into
large, omnibus reconciliation bills. Table 4 shows the trend in discretionary budget
authority under the L-HHS-ED appropriations for FY1998 through FY2002.

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CRS-10
Table 4. L-HHS-ED Discretionary Funding Trends from FY1998
(budget authority in billions of dollars)
FY2002
Type of funds
FY1998
FY1999
FY2000
FY2001
estimate a
L-HHS-ED discretionary
$81.1
$89.5
$87.1
$110.5
$124.6
L-HHS-ED discretionary in
$87.7
$95.5
$91.1
$112.9
$124.6
estimated FY2002 dollars
L-HHS-ED % of all federal
discretionary funds b
15.3%
15.4%
14.9%
16.4%
17.4%
L-HHS-ED % of total
4.8%
5.0%
4.8%
5.6%
6.0%
federal budget authority
Total federal discretionary
$529.6
$581.9
$584.4
$671.9
$717.8
Total federal budget $1,692.3 $1,776.7 $1,825.0 $1,959.7
$2,085.0
authority
GDP deflator
1.0339
1.0474
1.0690
1.0937
1.1177
Source: Federal totals and the GDP deflator are based on the Budget of the United States Government
Historical Tables Fiscal Year 2003, Tables 5.2, 5.4, and 10.1. The L-HHS-ED discretionary budget
authority amounts are based on the Budget of the United States Government from various years, and
therefore may not be completely comparable from year to year.
a Estimates are based on FY2002 appropriations enacted as of the submission of the FY2003 budget
request in February 2002; they would not include any supplemental appropriations and rescissions for
L-HHS-ED and other bills that might be enacted later in FY2002.
b Discretionary funds include both defense and non-defense activities.
Total L-HHS-ED discretionary funds have increased by 53.6% during this
5-year period. The 5-year increase is reduced to an estimated 42.1% after adjustment
for inflation by use of the Gross Domestic Product (GDP) deflator. When compared
to all federal discretionary budget authority, the L-HHS-ED portion increased from
15.3% share of the federal total in FY1998 to an estimated 17.4% in FY2002. When
compared to all federal budget authority, both discretionary and nondiscretionary
(mandatory), the L-HHS-ED portion of the federal total increased during this period
from 4.8% in FY1998 to an estimated 6.0% in FY2002.
Related World Wide Web Sites
General information on budget and appropriations may be found at these web
sites. Specific L-HHS-ED agency sites are listed in relevant sections of this report.
House Committees
[http://www.house.gov/appropriations]
[http://www.house.gov/budget/]
Senate Committees
[http://www.senate.gov/~appropriations/]
[http://www.senate.gov/~budget/]

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CRS-11
Congressional Budget Office (CBO)
[http://www.cbo.gov]
Congressional Research Service (CRS)
[http://www.crs.gov/products/appropriations/apppage.shtml]
General Accounting Office (GAO)
[http://www.gao.gov/]
Government Printing Office (GPO)
[http://w3.access.gpo.gov/usbudget/index.html]
Office of Management & Budget (OMB)
[http://www.whitehouse.gov/OMB/budget/index.html]
[http://www.whitehouse.gov/OMB/legislative/sap/index.html]

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CRS-12
U.S. Department of Labor
The FY2003 budget proposal for discretionary appropriations at the U.S.
Department of Labor (DOL) is $11.5 billion, $0.9 billion (7.3%) less than the
FY2002 appropriations of $12.4 billion, as shown in Table 5.
Table 5. Department of Labor Discretionary Appropriations
($ in billions) a
FY2001
FY2002
FY2002
FY2002
FY2002
Funding
enacted b
request
House
Senate
conference
Appropriations
$12.4
$11.5
—
—
—
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002.
a The amounts shown represent only discretionary programs funded by the L-HHS-ED appropriations
bill; appropriations for mandatory programs are excluded.
b The FY2002 amounts are based on P.L. 107-116 and P.L. 107-117.
Mandatory DOL programs included in the FY2002 L-HHS-ED bill were funded
at $2.2 billion, and consist of the Black Lung Disability Trust Fund ($1.0 billion),
Federal Unemployment Benefits and Allowances ($0.5 billion), Advances to the
Unemployment Insurance and Other Trust Funds ($0.4 billion), Energy Employees
Occupational Illness Fund ($0.1 billion), and Employment Standards Administration
Special Benefits programs ($0.1 billion).
Key Issues
President’s Request. The President’s FY2003 budget request for DOL
focuses on job training programs. Reductions are proposed for some of these
programs, including some that are receiving supplemental funds that were provided
in response to the terrorist attacks of September 11, 2001. Discretionary changes of
at least $100 million requested for DOL programs under the President’s FY2003
budget include the following:
! A reduction of $0.5 billion is requested for programs authorized by
the Workforce Investment Act of 1998 (WIA), which is funded at
$5.5 billion in FY2002. Regarding specific WIA programs, $127
million less is requested for Youth Training, funded at $1.1 billion
in FY2002; $180 million less is proposed for Youth Opportunity
Grants, funded at $225 million in FY2002; and $232 million less is
requested for Other Federally Administered WIA programs, funded
at $346 million in FY2002. Other Federally Administered programs
include Migrant and Seasonal Farmworkers ($80 million in FY2002)
— a program proposed for elimination in the request — as well as
Pilot and Demonstration programs ($130 million in FY2002), for
which $35 million is requested.

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CRS-13
! Emergency Expenses for Workers Compensation Programs, which
are provided $175 million under the P.L. 107-117 FY2002
Supplemental, would receive no funding under the FY2003 request.
For Additional Reading
CRS Products.
CRS Report 97-724, Ergonomics in the Workplace: Is it Time for an OSHA
Standard?, by Edward Rappaport.
CRS Report 97-536, Job Training Under the Workforce Investment Act: An
Overview, by Ann Lordeman.
CRS Report RL31336, Older Americans Act: Programs and Funding, by Carol
O’Shaughnessy.
CRS Report RL31277, Temporary Programs to Extend Unemployment
Compensation, by Jennifer E. Lake.
CRS Report RS21078, Trade Adjustment Assistance for Workers: Legislation in the
107th Congress, by Paul J. Graney.
CRS Report 95-742, Unemployment Benefits: Legislative Issues in the 107th
Congress, by Celinda M. Franco.
CRS Report RS20244, The Workforce Investment Act: Training Programs Under
Title I at a Glance, by Ann Lordeman.
Selected World Wide Web Sites.
U.S. Department of Labor
[http://www.dol.gov]
[http://www.dol.gov/_sec/budget2003/overview-toc.htm]
[http://www.dol.gov/_sec/budget2003/tables.htm#budgetauth]
[http://www.dol.gov/_sec/media/congress/2132002ec.htm]
Detailed Appropriations Table
Table 6 shows the appropriations details for offices and major programs of
DOL.

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CRS-14
Table 6. Detailed Department of Labor Appropriations
($ in millions)
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Employment and Training Administration (ETA)
Training and Employment
Services, Workforce Investment
950
900
—
—
—
Act (WIA) Adult Training Grants
to States
WIA Youth Training
1,128
1,001
—
—
—
WIA Dislocated Worker
Assistance b
1,372
1,383
— — —
WIA Job Corps
1,459
1,532
—
—
—
WIA Youth Opportunity Grants
225
45
— — —
(YOG)
WIA other federally administered
346
114
— — —
programs
WIA subtotal
5,480
4,975
—
—
—
Training and Employment
5
1
— — —
Services (TES), Other
Community Service Employment
445
440
— — —
for Older Americans
Worker Compensation Programs
175
0
— — —
Emergency Expenses
Federal Unemployment Benefits
and Allowances, Trade
416
13
— — —
Adjustment and NAFTA
Activities (mandatory)
State Unemployment Insurance
and Employment Service
2,792
2,728
— — —
Operations (SUI/ESO)
Unemployment Compensation
SUI/ESO Employment Service
847
826
—
—
—
SUI/ESO One-Stop Career
120
113
— — —
Centers
SUI/ESO Work Incentives Grants
20
20
—
—
—
SUI/ESO subtotal
3,779
3,687
—
—
—
Advances to Unemployment Trust
464
463
— — —
Fund and other funds (mandatory)
ETA Program Administration
161
172
—
—
—
ETA subtotal
10,925
9,751
—
—
—
Pension and Welfare Benefits
111
117
— — —
Administration
Pension Benefit Guaranty
Corporation (PBGC)
12
13
— — —
Administration
PBGC program level (non-add)
190
193
—
—
—

---

CRS-15
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Employment Standards Administration (ESA)
ESA Salaries and Expenses
370
294
—
—
—
ESA Special Benefits
121
163
— — —
(mandatory)
ESA Energy Employees
Occupational Illness Fund
136
105
— — —
(mandatory)
ESA Black Lung Disability Trust
1,035
1,035
— — —
Fund (mandatory)
ESA subtotal
1,663
1,597
—
—
—
Occupational Safety and Health
443
437
— — —
Administration (OSHA)
Mine Safety and Health
254
254
— — —
Administration (MSHA)
Bureau of Labor Statistics
475
498
—
—
—
Office of Disability Employment
38
47
— — —
Policy
Departmental Management,
148
55
— — —
International Labor Affairs
Departmental Management,
Veterans Employment and
213
210
— — —
Training
Departmental Management, Other
294
326
—
—
—
Departmental Management
655
591
— — —
subtotal
TOTALS, DEPARTMENT OF LABOR
Total appropriations c
14,577
13,301
— — —
Current year: FY2003
12,113
10,842
—
—
—
Advance year: FY2003
2,463
2,463
—
—
—
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002.
a The FY2002 amounts are based on P.L. 107-116 and P.L. 107-117.
b The actual FY2002 appropriation for Dislocated Worker Assistance is $1,549 million and not $1,372
million; the difference is an FY2001 rescission of $177 million enacted through P.L. 107-20.
c Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.

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CRS-16
U.S. Department of Health and Human Services
The FY2003 budget proposal for discretionary appropriations at the U.S.
Department of Health and Human Services (DHHS) is $59.3 billion, $2.6 billion
(4.6%) more than the FY2002 appropriations of $56.7 billion, as shown in Table 7.
Table 7. U.S. Department of Health and Human Services
Discretionary Appropriations
($ in billions) a
FY2002
FY2003
FY2003
FY2003
FY2003
Funding
enacted b
request
House
Senate
conference
Appropriations
$56.7
$59.3
—
—
—
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002.
a The amounts shown represent discretionary programs funded by the L-HHS-ED appropriations bill;
appropriations for mandatory programs are excluded, as are DHHS discretionary amounts funded in
other appropriations bills.
b The FY2002 amounts are based on P.L. 107-116 and P.L. 107-117.
Mandatory DHHS programs included in the FY2002 L-HHS-ED bill were
funded at $248.7 billion, and consist primarily of Grants to States for Medicaid
($153.7 billion), Payments to Medicare Trust Funds ($82.0 billion, virtually all for
Part B Supplementary Medical Insurance), Foster Care and Adoption ($6.6 billion),
and Social Services Block Grant ($1.7 billion).
Key Issues
President’s Request. The President’s FY2003 budget request for DHHS
focuses increased support primarily for medical research, with smaller increases for
selected health care and early childhood development programs. At the same time,
it would reduce funding for programs for health professions, health care facilities,
disease control and prevention, and home energy assistance for low-income people.
Discretionary spending changes of at least $100 million are requested for the
following programs.
! An increase of $3.7 billion is requested for the National Institutes of
Health (NIH), which currently is funded at $23.5 billion, to support
activities that maintain and improve health through medical science.
This is the largest increase in discretionary funds (in terms of
absolute dollars) in the FY2003 L-HHS-ED budget request. The
FY2003 request would complete a 5-year effort by the Congress to
double the size of NIH funding, from $13.6 billion in FY1998 to
$27.2 billion in FY2003 (see CRS Issue Brief IB10100, Federal
Research and Development Funding: Fiscal Year 2003).
! An additional $114 million is proposed for Community Health
Centers, which is funded at $1.3 billion in FY2002; however, the

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CRS-17
$120 million Community Access Program, which provides the
uninsured with safety-net access to health care, would be eliminated.
! A decrease of $368 million is requested for the Health Professions
program, which is funded at $663 million in FY2002.
! The Health Care and Other Facilities program, which is funded at
$312 million in FY2002, would be eliminated; funds for this
program are earmarked for construction and renovation projects for
designated recipients.
! A decrease of $422 million is requested for the Centers for Disease
Control and Prevention (CDC); $4.3 billion is provided for FY2002
for the prevention and control of diseases, injuries, and disabilities.
The decrease is due primarily to a one-time buildup in FY2002 of
vaccines and other pharmaceuticals to combat bioterrorism threats.
! A decrease of $300 million is proposed for the Low-Income Home
Energy Assistance Program (LIHEAP); $1.7 billion is appropriated
for FY2002. The LIHEAP Emergency Allocation of $300 million
would be level funded.
! An additional $130 million is requested for Head Start, which is
funded at $6.5 billion in FY2002.
! An additional $130 million is requested for the discretionary portion
of the Promoting Safe and Stable Families program; $70 million in
discretionary funds is provided for FY2002.
! The Public Health and Social Services Emergency Fund (PHSSEF)
would be reduced by $137 million; this account is funded at $2.4
billion in FY2002, primarily for bioterrorism and emergency
response programs.
! An initial $184 million is requested for the Health Facilities
Construction Consolidation proposal, which would eventually
combine funding from several DHHS accounts into a single fund for
health facilities construction.
Bioterrorism Preparedness. The President’s FY2003 budget request
proposes $4.3 billion for DHHS bioterrorism preparedness programs and activities.
Of this amount, $2.3 billion would be provided through the PHSSEF, and $2.0
billion through other accounts, primarily those for NIH. The request includes funds
for strengthening the federal medical and public health response capacity, upgrading
CDC’s facilities, improving state and local public health preparedness, developing
vaccines and maintaining the National Pharmaceutical Stockpile (NPS), preparing
the nation’s hospitals, expanding FDA’s regulatory oversight of drugs and other
biological products, and securing facilities to conduct critical scientific work. For
additional information, see Appendix C: Terrorism Funding in the L-HHS-ED Bill,
page 43, and CRS Report RL31263, Public Health Security and Bioterrorism
Preparedness and Response Act (P.L. 107-188): Provisions and Changes to
Preexisting Law.
For FY2002, DHHS funding totals $3.0 billion to improve bioterrorism
preparedness at the federal, state, and local levels. The FY2002 L-HHS-ED
Appropriations Act, P.L. 107-116, includes $243 million for anti-bioterrorism
activities, and the FY2002 Anti-Terrorism Supplemental, P.L. 107-117, provides an
additional $2.8 billion as part of the $20 billion anti-terrorism emergency spending

---

CRS-18
package. P.L. 107-117 allocates the anti-bioterrorism funding under several broad
categories, including $593 million for the NPS, $512 million to purchase smallpox
vaccine, $865 million for state and local health departments, $135 million to upgrade
hospital capacity, $100 million to upgrade CDC’s facilities and capacity, and $155
million for NIH research and lab construction. In addition, the DHHS Food and Drug
Administration (FDA) — regularly funded under the Agriculture Appropriations Act
— receives $151 million for FDA lab security, vaccine approval, and food safety.
Abortion: Annual Funding Restrictions. L-HHS-ED appropriations acts
regularly contain restrictions that limit — for one year at a time — the circumstances
under which federal funds can be used to pay for abortions. The Congress has not
actually amended these restrictions since FY1999. However, given the perennial
volatility of this issue, it may be revisited at any time during consideration of FY2003
L-HHS-ED appropriations. From FY1977 to FY1993, abortions could be funded
only when the life of the mother was endangered. Restrictions on appropriated funds,
popularly referred to as the Hyde Amendments, generally apply to all L-HHS-ED
funds. Medicaid is the largest program affected. The 103rd Congress modified the
provisions to permit federal funding of abortions in cases of rape or incest. The
FY1998 L-HHS-ED Appropriations Act, P.L. 105-78, extended the Hyde provisions
to prohibit the use of federal funds to buy managed care packages that include
abortion coverage, except in the cases of rape, incest, or life endangerment. For
FY1999, the FY1998 Hyde Amendments were continued, along with a clarification
to ensure that the restrictions apply to all trust fund programs (namely, Medicare)
funded by the FY1999 L-HHS-ED Appropriations Act, P.L. 105-277, as well as an
assurance that Medicare + Choice plans cannot require the provision of abortion
services. The FY2000, FY2001, and FY2002 L-HHS-ED Appropriations Acts have
repeated without change the FY1999 funding restrictions. Current provisions can be
found in §508 and §509 of the FY2002 L-HHS-ED Appropriations Act, P.L. 107-
116. For additional information, see CRS Issue Brief IB95095, Abortion:
Legislative Response.
Embryonic Stem Cell Research: Funding Restrictions. On August 9,
2001, President Bush announced a decision to use federal funds for research on
human embryonic stem cells for the first time, but limited the funding to “existing
stem cell lines.” Embryonic stem cells have the ability to develop into virtually any
cell in the body, and may have the potential to treat medical conditions such as
diabetes and Parkinson’s disease. The use of stem cells, however, frequently raises
difficult ethical and social issues regarding embryo and fetal tissue research. An
FY1996 appropriations continuing resolution, P.L. 104-99 (§128), prohibited NIH
funds from being used for the creation of human embryos for research purposes or
for research in which human embryos are destroyed. From FY1997 through FY2002,
annual appropriations acts extended the prohibition to all L-HHS-ED funds, but the
NIH is the agency primarily affected. The restriction, originally introduced by
Representative Jay Dickey, has not changed significantly since it was first enacted.
However, given the potential volatility of this issue, it may also be revisited at any
time during consideration of the FY2003 L-HHS-ED appropriations. The current
provision can be found in §510 of the FY2002 L-HHS-ED appropriations, P.L. 107-
116. For additional information, see CRS Report RL31015, Stem Cell Research and
the related issue in CRS Report RL31358, Human Cloning.

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CRS-19
For Additional Reading
CRS Products.
CRS Issue Brief IB95095, Abortion: Legislative Response, by Karen J. Lewis, et. al.
CRS Report RS20873, Reducing Teen Pregnancy: Adolescent Family Life and
Abstinence Education Programs, by Carmen Solomon-Fears.
CRS Report RL30731, AIDS Funding for Federal Government Programs: FY1981-
FY2003, by Judith A. Johnson.
CRS Report 98-476, AIDS: Ryan White CARE Act, by Judith A. Johnson and
Paulette C. Morgan.
CRS Report RL31263, Public Health Security and Bioterrorism Preparedness and
Response Act (P.L. 107-188): Provisions and Changes to Preexisting Law, by
C. Stephen Redhead, et. al.
CRS Report RL31225, Bioterrorism: Summary of a CRS/National Health Policy
Forum Seminar on Federal, State, and Local Public Health Preparedness, by
Robin J. Strongin, Contractor, and C. Stephen Redhead, Coordinator.
CRS Report RL30785, The Child Care and Development Block Grant: Background
and Funding, by Alice Butler and Melinda Gish.
CRS Report RL30944, Child Care Issues in the 107th Congress, by Melinda Gish.
CRS Report RL30894, Child Welfare: The Promoting Safe and Stable Families
Program, by Emilie Stoltzfus and Karen Spar.
CRS Report RS20124, Community Services Block Grants: Background and
Funding, by Karen Spar and M. Ann Wolfe.
CRS Report 97-757, Federal Health Centers Program, by Sharon Kearney.
CRS Report RL30952, Head Start: Background and Funding, by Alice Butler and
Melinda Gish.
CRS Report RL31358, Human Cloning, by Judith A. Johnson.
CRS Report 94-211, The Low-Income Home Energy Assistance Program (LIHEAP),
by Emilie Stoltzfus.
CRS Report 97-350, Maternal and Child Health Block Grant, by Sharon Kearney.
CRS Report RL30483, Medical Research Funding: Summary of a CRS Seminar on
Challenges and Opportunities of Proposed Large Increases for the National
Institutes of Health, by John K. Iglehart, Contractor, and Pamela W. Smith,
Coordinator.
CRS Report RL31058, Medicare Structural Reform: Background and Options, by
Jennifer O’Sullivan, et. al.
CRS Report RL31336, Older Americans Act: Programs and Funding, by Carol
O’Shaughnessy.
CRS Issue Brief IB10100, Federal Research and Development Funding: Fiscal Year
2003, by John Dimitri Moteff, Coordinator.
CRS Report 94-953, Social Services Block Grants (Title XX of the Social Security
Act), by Melinda Gish.
CRS Report RL31015, Stem Cell Research, by Judith A. Johnson.
CRS Report 97-1048, The Title X Family Planning Program, by Sharon Kearney.
CRS Issue Brief IB93034, Welfare Reform: An Issue Overview, by Vee Burke.
CRS Electronic Briefing Book, Welfare Reform,
[http://www.congress.gov/brbk/html/ebwlf1.shtml].

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CRS-20
Selected World Wide Web Sites.
U.S. Department of Health and Human Services
[http://www.hhs.gov]
[http://www.hhs.gov/budget/]
[http://www.hhs.gov/budget/document.htm]
Detailed Appropriations Table
Table 8 shows the appropriations details for offices and major programs of
DHHS.

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CRS-21
Table 8. Detailed Department of Health and Human Services
Appropriations
($ in millions)
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Public Health Service (PHS)
Health Resources and Services
Administration (HRSA),
1,344
1,458
— — —
Community Health Centers
HRSA National Health Service
153
193
— — —
Corps
HRSA Health Professions
663
295
—
—
—
HRSA Maternal and Child Health
732
732
— — —
Block Grant
HRSA Abstinence Education
10
73
—
—
—
HRSA Ryan White AIDS
1,911
1,911
— — —
Programs
HRSA Family Planning (Title X)
265
265
—
—
—
HRSA Health Care and Other
312
0
— — —
Facilities
HRSA Community Access
120
0
— — —
Program
HRSA Vaccine Injury
82
86
— — —
Compensation (mandatory)
HRSA, Other
574
445
—
—
—
HRSA subtotal
6,166
5,458
—
—
—
Centers for Disease Control and
Prevention (CDC) b
4,296
3,874
— — —
National Institutes of Health
(NIH) c
23,456
27,170
— — —
Substance Abuse and Mental
Health Services Administration
433
433
— — —
(SAMHSA) Mental Health Block
Grant
SAMHSA Substance Abuse
1,725
1,785
— — —
Block Grant
SAMHSA, Other
978
975
—
—
—
SAMHSA subtotal
3,136
3,193
—
—
—
Agency for Healthcare Research
3
0
— — —
and Quality (AHRQ)
AHRQ program level (non-add)
296
250
—
—
—
PHS subtotal
37,057
39,695
—
—
—
Centers for Medicare and Medicaid Services (CMS)
Medicaid Grants to States
153,721
158,692
— — —
(mandatory)
Payments to Medicare Trust
81,979
81,463
— — —
Funds (mandatory)
CMS Program Management
2,432
2,508
—
—
—
CMS subtotal
238,132
242,663
—
—
—

---

CRS-22
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Administration for Children and Families (ACF)
Family Support Payments to
4,008
2,878
— — —
States (mandatory)
Low Income Home Energy
1,700
1,400
— — —
Assistance Program (LIHEAP)
LIHEAP Emergency Allocation
300
300
—
—
—
Refugee and Entrant Assistance
460
453
—
—
—
Child Care and Development
2,100
2,100
— — —
Block Grant (CCDBG)
Social Services Block Grant
1,700
1,700
— — —
(Title XX) (mandatory)
Head Start
6,538
6,668
—
—
—
Child Welfare Services
292
292
—
—
—
Developmental Disabilities
141
141
—
—
—
Community Services Block Grant
650
570
—
—
—
Violent Crime Reduction
142
142
—
—
—
Other Children and Family
665
780
— — —
Services Programs
Rescission of mandatory funds
-21
0
—
—
—
Promoting Safe and Stable
305
305
— — —
Families (mandatory)
Promoting Safe and Stable
70
200
— — —
Families (discretionary)
Foster Care and Adoption
6,640
4,855
— — —
Assistance (mandatory)
ACF subtotal
25,689
22,784
—
—
—
Administration on Aging (AOA)
1,348
1,341
—
—
—
Office of the Secretary, Public
2,432
2,295
— — —
Health and Social Service Fund
Retirement Pay and Medical
Benefits, Commissioned Officers
242
0
— — —
(mandatory)
Health Facilities Construction
0
184
— — —
Consolidation Proposal
Office of the Secretary, Other
445
460
—
—
—
TOTALS, DEPARTMENT OF HEALTH AND HUMAN SERVICES
Total appropriations d
305,344
309,423
— — —
Current year: FY2002
254,488
308,023
—
—
—
Advance year: FY2003
50,856
1,400
—
—
—
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002.
a The FY2002 amounts are based on P.L. 107-116, and P.L. 107-117.
b The Veterans Affairs and Housing and Urban Development (VA-HUD) Appropriations Act provides
additional funding for CDC — $78 million in FY2002.
c The VA-HUD Appropriations Act provides additional funding for NIH — $81 million in FY2002.
d Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.

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CRS-23
U.S. Department of Education
The FY2003 budget proposal for discretionary appropriations at the U.S.
Department of Education (ED) is $51.6 billion, $2.7 billion (5.5%) more than the
FY2002 appropriations of $48.9 billion, as shown in Table 9.
Table 9. Department of Education Discretionary Appropriations
($ in billions) a
FY2002
FY2003
FY2003
FY2003
FY2003
Funding
enacted b
request
House
Senate
conference
Appropriations
$48.9
$51.6 —
—
—
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002.
a These amounts represent only discretionary programs funded in the L-HHS-ED appropriations bill;
appropriations for mandatory programs are excluded.
b The FY2002 amounts are based on P.L. 107-116 and P.L. 107-117.
A single mandatory ED program is included in the L-HHS-ED bill; the
Vocational Rehabilitation State Grants program is funded at $2.5 billion in FY2002.
Key Issues
President’s Request. The amount of federal support for education has been
a priority of both the Congress and the White House in recent years, and the FY2003
budget request for ED would increase federal funds for both elementary and
secondary education programs and for assistance at the postsecondary level.
Discretionary spending changes of at least $100 million are requested by the
President for the following programs.
! An increase of $1.0 billion is requested for the Title I Part A Grants
to Local Educational Agencies (LEAs) program, which is funded at
$10.4 billion in FY2002.
! An additional $100 million is requested for Reading First programs,
which are funded at $975 million in FY2002.
! $100 million is requested for a new Charter Schools Facilities
Initiative.
! An additional $1.0 billion would be provided for Special Education
Part B Grants to States program under IDEA, funded at $7.5 billion
in FY2002.
! An increase of $549 million is requested for the $10.3 billion Pell
Grant program that provides aid to low- and middle-income
undergraduate students. The proposed maximum award would be
left at the FY2002 level of $4,000. In addition, the President’s
FY2003 budget included a separate request for an FY2002
supplemental appropriation of $1.3 billion for Pell Grants. These
funds would be offset by the cancellation of an equal amount of

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CRS-24
FY2002 appropriations for programs or projects that were not
included in the President’s FY2002 request.
! The FY2003 request includes a proposal for $932 million to support
the creation of a new unified discretionary account for the
administration of federal student aid programs. This amount would
be offset in part by a savings of $797 million through the
reclassification of certain mandatory funds for student aid
administrative activities.
Along with the increases proposed above, the President’s budget would decrease
or terminate funding for several programs.
! Rural Education funding would be eliminated; the FY2002 amount
is $163 million.
! The Fund for the Improvement of Education (FIE) would be reduced
by $749 million; $833 million is provided in FY2002.
! The Fund for the Improvement of Postsecondary Education (FIPSE)
would be decreased by $142 million; the program is funded at $181
million in FY2002.
Pell Grants. Under the FY2002 L-HHS-ED bill, the Pell Grant maximum
award was increased to $4,000, an amount $250 above the FY2001 maximum of
$3,750. The $1.6 billion increase in appropriations originally was thought to be
sufficient to pay for the increased maximum awards (see H.Rept. 107-229, p. 7, and
S.Rept. 107-84, p. 313). Pell Grant appropriations are available for 2 full fiscal
years, but generally go to fund awards for the school year that begins near the end of
the initial fiscal year. For example, the FY2002 appropriations will be available from
October 1, 2001, through September 30, 2003, but for the most part these funds will
be used to meet the estimated program costs for the academic year 2002-2003.
In an October 30, 2001 letter from OMB, the Administration indicated that the
level of Pell Grant funding proposed for FY2002 might be sufficient only to continue
the previous maximum award level of $3,750. The reason given was that new
projections of program costs for FY2001 (for academic year 2001-2002) were
exceeding previous estimates, thereby creating the potential for an FY2001 funding
shortfall. If such a shortfall actually occurs, part of the FY2002 appropriations would
then be used to cover the FY2001 shortfall. Consequently, any funds so used would
be unavailable for FY2002 expenditures. Since the FY2002 L-HHS-ED conference
agreement specifies the $4,000 maximum and, according to current OMB estimates,
provides insufficient funds to pay full program costs, ED was left with two
alternative courses of action: (1) request an FY2002 supplemental appropriation to
fund the full $4,000 maximum; or (2) pay the $4,000 maximum by borrowing when
necessary from the subsequent FY2003 appropriation to cover any FY2002 shortfall
that might occur. The Administration has elected the first alternative; an FY2002
supplemental request of $1.3 billion was included with the President’s FY2003
budget submission. House and Senate versions of H.R. 4775 FY2002 supplemental
would provide an additional $1.0 billion for FY2002 funding of Pell Grants. For
details about the supplemental request, see Budget of the United States Government
Appendix, Fiscal Year 2003, pages 1195-97.

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CRS-25
Student Aid Program Administration. The Administration’s FY2003
budget proposes the consolidation of the administration of federal student aid
programs into a new unified discretionary account. This account would combine the
following: (1) administrative funds for the Direct Loan (DL) program that support
loan origination, servicing, and collection; (2) account maintenance fees for the
Federal Family Education Loan (FFEL) program guaranty agencies; (3) other funds
that partially support administrative activities for the FFEL program; and (4) other
ED personnel and operational funds related to student aid program administration.
These funds are currently provided through a disparate set of mandatory,
discretionary, and subsidy accounts. The proposal would switch the DL program
administrative funds, which are currently mandatory appropriations, to discretionary
appropriations. Similarly, account maintenance fees which partially support FFEL
program guaranty agencies would cease to be mandatory appropriations and would
become discretionary appropriations. Much of the financing of FFEL program
administrative costs, however, would continue to be done through mandatory subsidy
payments to lenders. The Higher Education Act (HEA) provisions that provide the
underlying statutory authority for these funds would have to be changed to
accommodate this proposal. For additional information on the cost, financing, and
design of the FFEL and DL programs, see CRS Report RL30048, Federal Student
Loans: Program Data and Default Statistics, and CRS Report RL30656, The
Administration of Federal Student Loan Programs: Background and Provisions.
IDEA Part B Grants to States. The IDEA is the major federal program
providing assistance to states and school districts to help them fulfill their
constitutional obligation to provide a free appropriate public education to children
with disabilities. In 1975, the Congress authorized state payments up to a maximum
amount of 40% of the national average per-pupil expenditure (APPE) times the
number of children with disabilities ages 3 and above that each state serves. The
rationale for this formula was the assumption that the education of children with
disabilities cost twice the national APPE — 100% more than the “average” child —
and the maximum federal share of the extra cost would be 40%. Appropriations have
never been sufficient to reach the 40% level. Some view this deficiency as a promise
made that has not yet been kept. Achieving the 40% funding level for FY2002 for
Part B grants would take an estimated $18.2 billion, whereas the FY2002
appropriation is $7.5 billion, the equivalent of 16.5% of the current APPE times the
number of children served. An additional appropriation of $10.7 billion would be
necessary to provide the 40% authorized maximum for FY2002. In addition, funding
requirements for maximum grants are likely to grow in the future, as increases are
anticipated for both the APPE and the number of children with disabilities served.
The latter may increase in part as a result of medical advances that have resulted in
more medically fragile children surviving to school age and receiving a public
education. For additional information, see CRS Report 97-433, Individuals with
Disabilities Education Act: Full Funding of State Formula.
Forward Funding and Advance Appropriations. Many of the larger ED
programs have either authorization or appropriations provisions that allow funding
flexibility for school program years that differ from the federal fiscal year. For
example, some of the elementary and secondary education formula grant programs
receive funding through appropriations that become available for obligation to the
states on July 1 of the same year as the appropriations, and remain available through

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CRS-26
the end of the following fiscal year. That is, FY2002 appropriations for some
programs became available for obligation to the states on July 1, 2002, and will
remain available for a 15-month period until September 30, 2003. This budgetary
procedure is popularly known as “forward” or “multi-year” funding, and is
accomplished through funding provisions in the L-HHS-ED appropriations bill.
Forward funding in the case of elementary and secondary education programs
was designed to allow additional time for school officials to develop budgets in
advance of the beginning of the school year. For Pell Grants, however, aggregate
program costs for individual students applying for postsecondary educational
assistance cannot be known with certainty ahead of time. Appropriations from one
fiscal year primarily support Pell Grants during the following academic year, that is,
the FY2002 appropriations will be used primarily to support the 2002-2003 academic
year. Unlike forward funded programs, however, the funds remain available for
obligation for 2 full fiscal years. Thus, if cost estimates turn out to be too low, funds
may be borrowed from the following year’s appropriations, or conversely, if the
estimates are too high, the surplus may be obligated during the following year.
An advance appropriation occurs when the appropriation is provided for a
fiscal year beyond the fiscal year for which the appropriation was enacted. In the
case of FY2002 appropriations, funds normally would have become available
October 1, 2001, under regular funding provisions, but would not become available
until July 1, 2002, under the forward funding provisions discussed above. However,
if the July 1, 2002 forward funding date were to be postponed for obligation by 3
months — until October 1, 2002 — the appropriation would be classified as an
“advance appropriation” since the funds would become available only in the next
fiscal year, FY2003. For example, the FY2002 appropriation is $10.4 billion for
Title I Part A Grants to LEAs for the Education of the Disadvantaged. This amount
includes not only forward funding of $3.2 billion (available July 1, 2002), but also
an advance appropriation of $7.2 billion (available October 1, 2002).
What is the impact of these changes in funding provisions? At the program or
service level, relatively little is changed by the 3-month delay in the availability of
funds, since most expenditures for a standard school year occur after October 1. At
the appropriations level, however, a significant technical difference occurs because
forward funding is counted as part of the current fiscal year, and is therefore fully
included in the current 302(b) allocation for discretionary appropriations. Under
federal budget scorekeeping rules, an advance appropriation is not counted in the
302(b) allocation until the following year. In essence, a 3-month change from
forward funding to an advance appropriation for part or all of the annual
appropriations for a given program allows a one-time shift from the current year to
the next year in the scoring of discretionary appropriations. For additional
information on budget enforcement procedures, see CRS Report 98-720, Manual on
the Federal Budget Process.

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CRS-27
For Additional Reading
CRS Products.
CRS Issue Brief IB10029, Education for the Disadvantaged: ESEA Title I
Reauthorization Issues, by Wayne Riddle.
CRS Report RL31315, Education of Limited English Proficient and Recent
Immigrant Students: Provisions of the No Child Left Behind Act of 2001, by
Jeffrey J. Kuenzi.
CRS Report RL30448, Even Start Family Literacy Programs: Background and
Reauthorization Issues, by Gail McCallion and Wayne Riddle.
CRS Issue Brief IB10097, The Higher Education Act: Reauthorization Status and
Issues, by James B. Stedman.
CRS Report RL30075, Impact Aid: Status and Overview of 2000 Reauthorization
and 2001 Amendments, by Richard N. Apling.
CRS Report 97-433, Individuals with Disabilities Education Act: Full Funding of
State Formula, by Richard N. Apling.
CRS Report RS20366, Individuals with Disabilities Education Act (IDEA):
Overview of Major Provisions, by Richard Apling and Nancy Lee Jones.
CRS Report RS20009, Institutional Aid under Title III and Title V of the Higher
Education Act: Provisions and Status, by James B. Stedman.
CRS Electronic Briefing Book, K-12 Education,
[http://www.congress.gov/brbk/html/ebedd1.shtml]
CRS Report RL31284, K-12 Education: Highlights of the No Child Left Behind Act
of 2001 (P.L. 107-110), by Wayne Riddle.
CRS Report RL30834, K-12 Teacher Quality: Issues and Legislative Action, by
James B. Stedman.
CRS Report RL31241, Reading First and Early Reading First: Background and
Funding, by Gail McCallion.
CRS Report RL31378, Rehabilitation Act: Programs and Funding, by Sidath V.
Panangala.
CRS Report RS20375, Rural Education: Legislative Initiatives, by James B.
Stedman and Richard N. Apling.
CRS Report RS20532, The Safe and Drug-Free Schools and Communities Act:
Reauthorization and Appropriations, by Edith Fairman Cooper.
CRS Issue Brief IB98035, School Choice: Current Legislation, by David P. Smole.
CRS Report RS20171, School Facilities Infrastructure: Background and Legislative
Proposals, by Susan Boren.
CRS Report RL31240, 21st Century Community Learning Centers in P.L. 107-110:
Background and Funding, by Gail McCallion.
Selected World Wide Web Sites.
U.S. Department of Education Home Page
[http://www.ed.gov/index.jsp]
[http://www.ed.gov/offices/OUS/budget.html]
[http://www.ed.gov/offices/OUS/Budget03/index.html]
[http://www.ed.gov/offices/OUS/budnews.html]
[http://www.ed.gov/offices/OUS/Budget03/03testimony/index.html]

---

CRS-28
Detailed Appropriations Table
Table 10 shows the appropriations details for offices and major programs of
ED.

---

CRS-29
Table 10. Detailed Department of Education Appropriations
($ in millions)
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Office of Elementary and Secondary Education (OESE)
Title I Part A Education for the
10,350
11,350
— — —
Disadvantaged, Grants to LEAs
Even Start
250
200
—
—
—
Reading First
975
1,075
—
—
—
Education for the Disadvantaged,
772
760
— — —
Other
Impact Aid
1,144
1,141
—
—
—
School Improvement (SI),
2,850
2,850
— — —
Teacher Quality
SI Innovative Education Block
385
385
— — —
Grant
SI Educational Technology
785
723
—
—
—
SI 21st Century Community
1,000
1,000
— — —
Learning Centers
SI Safe and Drug-Free Schools
654
644
—
—
—
SI Magnet Schools
110
110
—
—
—
SI Charter Schools
200
200
—
—
—
SI Charter Schools Facilities
0
100
—
—
—
SI State Assessments
387
387
—
—
—
SI Rural Education
163
0
SI Fund for the Improvement of
833
84
— — —
Education (FIE)
School Improvement, Other
470
301
—
—
—
Indian Education
120
122
—
—
—
English Language Acquisition
and Enhancement (Bilingual and
665
665
— — —
Immigrant Education)
Office of Special Education and Rehabilitative Services (OSERS)
IDEA Special Education, Part B,
7,529
8,529
— — —
Grants to States
IDEA, Other
1,144
1,159
—
—
—
Vocational Rehabilitation State
2,481
2,616
— — —
Grants (mandatory)
Rehabilitation Services, Other
464
386
—
—
—
Special Institutions for Persons
166
160
— — —
With Disabilities
Office of Vocational and Adult Education (OVAE)
Perkins Vocational Education
1,321
1,307
—
—
—
Adult Education
591
591
—
—
—
Incarcerated Youth Offenders
22
0
—
—
—

---

CRS-30
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Office of Student Financial Assistance Programs (OSFAP)
Pell Grants, maximum award (in
4,000
4,000
— — —
dollars, non-add)
Pell Grants
10,314
10,863
—
—
—
Supplemental Educational
725
725
— — —
Opportunity Grants
Federal Work-Study
1,011
1,011
—
—
—
Federal Perkins Loans, Capital
100
100
— — —
Contributions
Federal Perkins Loans, Loan
68
68
— — —
Cancellations
Leveraging Educational
67
0
— — —
Assistance Partnership (LEAP)
Loan Forgiveness for Child Care
1
1
—
—
—
Federal Family Education Loans,
49
0
— — —
Administration
Office of Postsecondary Education (OPE)
Aid for Institutional Development
439
454
—
—
—
Federal TRIO Programs
803
803
—
—
—
Fund for the Improvement of
181
39
— — —
Postsecondary Education (FIPSE)
GEAR UP
285
285
—
—
—
Other Higher Education
323
302
—
—
—
Howard University
237
237
—
—
—
College Housing and Academic
1
1
— — —
Facilities Loans, Administration
Office of Educational Research and Improvement (OERI)
Research and Statistics
386
433
—
—
—
Multi-year Grants
58
0
—
—
—
Departmental Management
542
539
—
—
—
Student Aid Administrative Costs
0
932
—
—
—
Student Aid Reclassification
0
-797
— — —
Proposal (mandatory)
TOTALS, DEPARTMENT OF EDUCATION
Total Appropriations c
51,422
52,841
— — —
Current year: FY2003
36,411
37,830
—
—
—
Advance year: FY2004
15,011
15,011
—
—
—
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002.
a The FY2002 amounts are based on P.L. 107-116 and P.L. 107-117.
b The FY2003 budget request of February 4, 2002, included an FY2002 supplemental request of
$1,276 million for Pell Grants; this request is not shown in the table.
c Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.

---

CRS-31
Related Agencies
The FY2003 budget proposal for discretionary appropriations for L-HHS-ED
Related Agencies is $9.7 billion, $0.5 billion (5.4%) more than the FY2002
appropriations of $9.2 billion, as shown in Table 11.
Table 11. Related Agencies Discretionary Appropriations
($ in billions) a
FY2002
FY2003
FY2003
FY2003
FY2003
Funding
enacted b
request
House
Senate
conference
Appropriations
$9.2
$9.7
—
—
—
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002.
a These amounts represent only discretionary programs funded by the L-HHS-ED appropriations bill;
appropriations for mandatory programs are excluded.
b The FY2002 amounts are based on P.L. 107-116 and P.L. 107-117.
Mandatory programs for related agencies included in the FY2002 L-HHS-ED
bill are funded at $30.3 billion, including $29.4 billion for the Supplemental Security
Income (SSI) program, $0.4 billion for the Special Benefits for Disabled Coal Miners
program, and $0.4 billion for payments to the Social Security Trust Fund.
Key Issues
President’s Request. The President’s FY2003 budget for related agencies
would change discretionary spending by at least $100 million for only one program.
! An additional $351 million is proposed for the SSA Limitation on
Administrative Expenses, which is funded at $4.6 billion in FY2002.
A smaller increase of $68 million is proposed for the Corporation for National
and Community Service (CNCS) programs, including an additional $50 million to
expand service opportunities for seniors under special volunteer programs; FY2002
funding for CNCS is $328 million. For the Corporation for Public Broadcasting
(CPB), $395 million is requested in FY2005 advance funding, an increase of $15
million; $380 million has been enacted for FY2004, and $350 million for FY2003.
For Additional Reading
CRS Products.
CRS Report RL30186, Community Service: A Description of AmeriCorps, Foster
Grandparents, and Other Federally Funded Programs, by Ann Lordeman and
Alice D. Butler.
CRS Report RL31320, Federal Aid to Libraries: The Library Services and
Technology Act, by Gail McCallion.

---

CRS-32
CRS Report RS20548, Public Broadcasting: Frequently Asked Questions, by
Bernevia McCalip.
CRS Report RS20408, Railroad Retirement and Unemployment Benefits: A Fact
Sheet, by Rachel W. Kelly.
CRS Report 98-422, Social Security and the Federal Budget: What Does Social
Security’s Being “Off Budget” Mean?, by David Stuart Koitz.
CRS Report RS20165, Social Security and Medicare “Lock Box”, by David Stuart
Koitz, et al.
CRS Electronic Briefing Book, Social Security,
[http://www.congress.gov/brbk/html/ebssc1.shtml]
CRS Issue Brief IB98048, Social Security Reform, by Geoffrey Kollmann and Dawn
Nuschler.
CRS Report 94-486, Supplemental Security Income (SSI): A Fact Sheet, by
Jennifer E. Lake.
CRS Report RS20419, VISTA and the Senior Volunteer Service Corps: Description
and Funding Levels, by Ann Lordeman.
Selected World Wide Web Sites.
Note: Not all of the L-HHS-ED related agencies have web sites, and not all web
sites include FY2003 budget information.
Armed Forces Retirement Home
[http://www.afrh.com]
Corporation for National and Community Service
[http://www.cns.gov]
[http://www.cns.gov/news/factsheets/fy03budget.html]
Corporation for Public Broadcasting
[http://www.cpb.org]
Federal Mediation and Conciliation Service
[http://www.fmcs.gov]
Institute of Museum and Library Services
[http://www.imls.gov]
[http://www.imls.gov/whatsnew/current/020402.htm]
Medicare Payment Advisory Commission
[http://www.medpac.gov/]
National Commission on Libraries and Information Science
[http://www.nclis.gov/]
[http://www.nclis.gov/news/FY2003.Appropriations.Testimony.pdf]
[http://www.nclis.gov/news/FY2003AppropriationsJustification.pdf]
National Council on Disability
[http://www.ncd.gov/]

---

CRS-33
National Education Goals Panel
[http://www.negp.gov/]
National Labor Relations Board
[http://www.nlrb.gov]
Railroad Retirement Board
[http://www.rrb.gov]
[http://www.rrb.gov/BFO/Justbudgettoc03.htm]
Social Security Administration
[http://www.ssa.gov]
[http://www.ssa.gov/budget/2003bud.html]
United States Institute of Peace
[http://www.usip.org]
Detailed Appropriations Table
Table 12 shows the appropriations details for offices and major programs of the
L-HHS-ED related agencies.

---

CRS-34
Table 12. Detailed Related Agencies Appropriations
($ in millions)
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Armed Services Retirement Home
71
67
—
—
—
Corporation for National and Community Service (CNCS) b
CNCS Volunteers in Service to
85
94
— — —
America (VISTA)
CNCS National Senior Volunteer
206
213
— — —
Corps
CNCS Program Administration
32
34
—
—
—
CNCS, Other
5
55
—
—
—
CNCS subtotal
328
396
—
—
—
Corporation for Public
Broadcasting (CPB), 2-Year
380
395
— — —
Advance
CPB current year (non-add)
350
365
—
—
—
CPB Digitalization Program
25
25
—
—
—
Federal Mediation and
40
41
— — —
Conciliation Service
Federal Mine Safety and Health
7
7
— — —
Review Committee
Institute of Museum and Library
Services (IMLS) c
225
210
— — —
Medicare Payment Advisory
8
8
— — —
Commission
National Commission on
1
0
— — —
Libraries and Information Science
National Council on Disability
3
3
—
—
—
National Education Goals Panel
< 0.5
0
—
—
—
National Labor Relations Board
227
233
—
—
—
National Mediation Board
11
11
—
—
—
Occupational Safety and Health
9
10
— — —
Review Commission
Railroad Retirement Board
241
228
—
—
—

---

CRS-35
FY2002
FY2003
FY2003
FY2003
FY2003
Office or major program
enacted a
request
House
Senate
conference
Social Security Administration (SSA)
SSA Payments to Social Security
434
20
— — —
Trust Fund (mandatory)
SSA Special Benefits for
Disabled Coal Miners
441
397
— — —
(mandatory)
SSA Supplemental Security
29,440
32,162
— — —
Income (SSI) (mandatory)
SSA SSI, Discretionary
2,927
2,936
—
—
—
SSA Limitation on Administrative
4,649
5,000
— — —
Expenses
SSA Office of Inspector General
75
83
—
—
—
SSA subtotal
37,966
40,598
—
—
—
United States Institute for Peace
15
16
—
—
—
TOTALS, RELATED AGENCIES
Total appropriations d
39,559
42,249
— — —
Current year: FY2003
28,280
30,676
—
—
—
Advance year: FY2004
10,898
11,177
—
—
—
Advance year: FY2005
380
395
— — —
Source: Amounts are based on the April 15, 2002 staff table of the House Appropriations Committee;
FY2002 appropriations are subject to further legislation during FY2002.
a The FY2002 amounts are based on 107-116 and P.L. 107-117.
b Funds are provided only for CNCS Domestic Volunteer Service Act programs — the Corporation
also receives VA-HUD appropriations for AmeriCorps Grants and other programs under the National
Community Service Act ($407 million in FY2002).
c The IMLS amounts include both Library Services and Museum Services; however, $27 million of
the FY2002 amount shown has been provided for Museum Services from the FY2002 VA-HUD
Appropriations Act.
d Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.

---

CRS-36
Related Legislation
Several proposals related to L-HHS-ED appropriations are being considered by
the 2nd Session of the 107th Congress, including the FY2003 budget resolution and
further FY2002 supplemental appropriations.
FY2003 Budget Resolution, H.Con.Res. 353/S.Con.Res. 100
The concurrent resolution on the budget sets forth the congressional budget for
FY2003. The House version of the resolution proposes federal budget levels for
FY2004 through FY2007; the Senate version proposes budget levels for FY2004
through FY2012. The maximum for total discretionary spending is specified within
the context of the budget resolution. As reported, the House version of the resolution
would set an FY2003 limit of $759.1 billion in discretionary spending, compared to
$709.3 billion enacted for FY2002 (H.Rept. 107-376, p. 70). The Senate-reported
version proposes a total FY2003 discretionary limit of $768.1 billion (S.Rept. 107-
141, p. 59). Typically, budget resolutions also specify the budget reconciliation
process for the modification of mandatory spending limits and tax cut legislation, and
set spending targets for functional categories of the budget. They may establish
“reserve fund” mechanisms for activities such as Medicare or student loans, and may
contain “sense of the Congress” declarations concerning programs such as Graduate
Medical Education at Children’s Teaching Hospitals or mental health parity. Report
language usually provides an outline of the funding assumptions made for selected
programs that might be used to reach the spending targets. Actual FY2003
discretionary appropriations for specific departments, agencies, and programs,
however, are to be determined only through the enactment of individual
appropriations bills.
H.Con.Res. 353 (H.Rept. 107-376), was passed by the House March 20, 2002
(roll call no. 79, 221-209). S.Con.Res. 100 (S.Rept. 107-141), was reported by the
Senate Budget Committee on March 22, 2002. For additional information, see CRS
Issue Brief IB10102, The Budget for Fiscal Year 2003; also see CRS Report
RL31443, The “Deeming Resolution”: A Budget Enforcement Tool.
Further FY2002 Supplemental Appropriations, H.R. 4775
On March 21, 2002, the President submitted to the Congress a request for an
additional $27.1 billion in FY2002 supplemental appropriations for emergency
funding in support of the war on terrorism, homeland security, and economic
revitalization. Of that amount, an additional $700 million would be provided for
L-HHS-ED programs. The President also requested an FY2002 supplemental of $1.3
billion in the FY2003 budget for Pell Grants. Under the request, these funds would
be offset by rescissions in FY2002 appropriations already enacted for L-HHS-ED
programs.
On May 24, 2002, the House passed H.R. 4775, the 2002 Supplemental
Appropriations Act for Further Recovery From and Response To Terrorist Attacks
on the United States. With a $28.8 billion total, the House bill would provide an
additional $1.3 billion for L-HHS-ED programs, including $1.0 billion for Pell

---

CRS-37
Grants. H.R. 4775, H.Rept. 107-480, was passed by the House May 24, 2002 (roll
call no. 206, 280-136).
On June 7, 2002, the Senate amended and passed H.R. 4775, the 2002
Supplemental Appropriations Act for Further Recovery From and Response To
Terrorist Attacks on the United States. The Senate version incorporated as one of its
amendments S. 2551, S.Rept. 107-156, as reported by the Senate Appropriations
Committee. With a $31.5 billion total, the Senate would provide $1.8 billion for
L-HHS-ED programs, including $1.0 billion for Pell Grants. H.R. 4775 was passed
by the Senate June 7, 2002 (roll call no. 145, 71-22).
H.R. 4775 amounts are based on the June 12, 2002 staff table of the House
Appropriations Committee. For additional information on specific L-HHS-ED
programs, see Appendix C: Terrorism Funding in the L-HHS-ED, Bill, page 43. For
additional information on H.R. 4775, see CRS Report RL31404, Supplemental
Appropriations for FY2002: Combating Terrorism and Other Issues.
Appropriations Action in the 107th Congress, First Session
Most FY2002 appropriations for L-HHS-ED activities were provided through
P.L. 107-116, the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2002, which was signed
into law by the President on January 10, 2002 (H.R. 3061, conference report H.Rept.
107-342. For additional information, see CRS Report RL30103, Appropriations for
FY2002: Labor, Health and Human Services, and Education. Other legislation in
the first session related to L-HHS-ED appropriations included the following:
! The FY2002 Anti-Terrorism Supplemental — Division B, the
Emergency Supplemental Act, 2002, of P.L. 107-117 (H.R. 3338),
the Department of Defense and Emergency Supplemental
Appropriations for Recovery from and Response to Terrorist Attacks
on the United States Act, 2002 — transferred and allocated $20
billion previously appropriated by P.L. 107-38 (discussed below).
Of the $20 billion total, $2.9 billion was allocated for L-HHS-ED
activities in FY2002. The House amended and passed H.R. 3338 on
November 28, 2001 (roll call no. 458, 406-20). The Senate amended
and passed H.R. 3338 on December 7, 2001 (by voice vote). The
conference report, H.Rept. 107-350, was passed by the House (roll
call no. 510, 408-6) and by the Senate (roll call no. 380, 94-2) on
December 20, 2001. H.R. 3338 was signed into law by the President
on January 10, 2002. For additional information, see CRS Report
RL31173, Combating Terrorism: Emergency Supplemental
Appropriations — Distribution of Funds to Departments and
Agencies.
! The FY2001 Anti-Terrorism Supplemental, P.L. 107-38 (H.R.
2888) was the 2001 Emergency Supplemental Appropriations Act
for Recovery from and Response to Terrorist Attacks on the United
States. It provided $40 billion of emergency funds to respond to the
attacks of September 11, 2001, assist its victims, and deal with

---

CRS-38
“other consequences” of the attack. Not less than 50% of these
funds must be spent on disaster recovery activities and assistance for
New York, Virginia, and Pennsylvania. Of the total $40 billion, $20
billion could not be obligated until enacted in a subsequent
emergency appropriations bill (see P.L. 107-117, above). The
Director of OMB was required to submit quarterly reports to the
Committees on Appropriations describing the use of supplemental
funds beginning no later than January 2, 2002. Of the $20 billion
that does not require additional legislation, $155 million was
allocated for L-HHS-ED programs. On September 14, 2001, (1) the
House passed H.R. 2888 (roll call no. 341, 422-0); (2) the Senate
passed the bill without amendment (by unanimous consent); and (3)
the bill was sent to the White House. The bill was signed into law
by the President on September 18, 2001.
! The Supplemental Appropriations Act, 2001, P.L. 107-20 (H.R.
2216), provided $6.5 billion in new budget authority primarily for
the U.S. Department of Defense. For additional information, see
CRS Report RL30995, Supplemental Appropriations for FY2001:
Defense Readiness and Other Programs. L-HHS-ED provisions
included: a net decrease of $217.5 million for WIA training
programs at DOL; $300 million additional for the LIHEAP
Emergency Allocation; $161 million additional for Title I Part A
Grants to LEAs for the Education of the Disadvantaged; and smaller
increases for a few other L-HHS-ED programs, as well as
amendments and technical corrections to other statutes. The House
amended and passed H.R. 2216 (H.Rept. 107-102) on June 20, 2001
(roll call no.176, 341-87). The Senate amended the House bill by
inserting the text of S. 1077 (S.Rept. 107-33), as amended, on July
10, 2001 (roll call no. 228, 92-1). The conference report on H.R.
2216, H.Rept. 107-148, was passed by the House (roll call no. 256,
375-30) and by the Senate (by unanimous consent) on July 20, 2001.
The bill was signed into law by the President on July 24, 2001, as
P.L. 107-20.
! Eight continuing resolutions (CRS Report RL30343, Continuing
Appropriations Acts: Brief Overview of Present Practices) provided
temporary funding for L-HHS-ED programs in FY2002 prior to the
enactment of P.L. 107-116 on January 10, 2002. The resolutions
were as follows: P.L. 107-44, as amended by P.L. 107-48, P.L. 107-
53, P.L. 107-58, P.L. 107-70, P.L. 107-79, P.L. 107-83, and P.L.
107-97.
! H.Con.Res. 83, the FY2002 budget resolution, sets forth for the
Congress the annual levels for the federal budget through FY2011
(for additional information, see CRS Issue Brief IB10079, The
Budget for Fiscal Year 2002). H.Con.Res. 83 (H.Rept. 107-26) was
passed by the House March 28, 2001 (roll call no. 70, 222-205).
The resolution was amended and passed by the Senate April 6, 2001
(roll call no. 86, 65-35). The conference report, H.Rept. 107-60, was
agreed to by the House (roll call no. 104, 221-207) on May 9, and by
the Senate (roll call no. 98, 53-47) on May 10, 2001.

---

CRS-39
Appendix A: Terminology
Note: Definitions are based on CRS Report 98-720, Manual on the Federal Budget
Process.
Advance appropriation is budget authority that will become available in a fiscal
year beyond the fiscal year for which the appropriations act is enacted; scorekeeping
counts the entire amount in the fiscal year it first becomes available for obligation.
Appropriation is budget authority that permits federal agencies to incur obligations
and to make payments out of the Treasury for specified purposes. Appropriations
represent the amounts that agencies may obligate during the period of time specified
in the law. Annual appropriations are provided in appropriations acts; most
permanent appropriations are provided in substantive law. Major types of
appropriations are regular, supplemental, and continuing.
Budget authority is legal authority to incur financial obligations that normally result
in the outlay of federal government funds. Major types of budget authority are
appropriations, borrowing authority, and contract authority. Budget authority also
includes the subsidy cost of direct and guaranteed loans, but excludes the portion of
loans that is not subsidized.
Budget resolution is a concurrent resolution passed by both Houses of Congress, but
not requiring the signature of the President, setting forth the congressional budget for
at least 5 fiscal years. It includes various budget totals and functional allocations.
Discretionary spending is budget authority provided in annual appropriations acts,
other than appropriated entitlements.
Entitlement authority is the authority to make payments to persons, businesses, or
governments that meet the eligibility criteria established by law; as such, it represents
a legally binding obligation on the part of the federal government. Entitlement
authority may be funded by either annual or permanent appropriations acts.
Forward funding is budget authority that becomes available after the beginning of
one fiscal year and remains available into the next fiscal year; the entire amount is
counted or scored in the fiscal year it first becomes available.
Mandatory (direct) spending includes: (a) budget authority provided in laws other
than appropriations; (b) entitlement authority; and (c) the Food Stamp program.
Rescission is the cancellation of budget authority previously enacted.
Scorekeeping is a set of procedures for tracking and reporting on the status of
congressional budgetary actions.
Supplemental appropriation is budget authority provided in an appropriations act
in addition to regular appropriations already provided.

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CRS-40
Appendix B: Scope of the L-HHS-ED Bill
The FY2002 budget authority for all federal programs is estimated to be
$2,085.0 billion, as shown in Table B.1. From this amount, the departments and
related agencies funded by the L-HHS-ED bill receive $1,058.2 billion (50.8%).
Table B.1. Scope of the L-HHS-ED Bill, FY2002
(Estimated budget authority in billions of dollars)
Estimated
budget
Percent of
Budget category
authority
federal budget
Total federal budget authority
$2,085.0
100.0%
U.S. Department of Labor
59.4
2.8%
U.S. Department of Health and Human Services
468.5
22.5%
U.S. Department of Education
55.3
2.7%
Social Security Administration (On-budget)
44.7
2.1%
Social Security Administration (Off-budget)
428.8
20.6%
Other related agencies
1.5
0.1%
L-HHS-ED agency total
1,058.2
50.8%
L-HHS-ED bill, total current year funds
395.9
19.0%
L-HHS-ED bill, current year mandatory funds
272.5
13.1%
L-HHS-ED bill, current year discretionary funds
123.4
5.9%
Total federal discretionary funds
717.8
34.4%
Source: Budget of the United States Government Historical Tables, Fiscal Year 2003, Tables 5.2 and
5.4; and the L-HHS-ED conference report H.Rept. 107-342, which provides details for the FY2002
L-HHS-ED amounts under P.L. 107-116.
Note: For comparability, this table uses data from the February 2002 OMB budget documents and
the FY2002 conference report of December 19, 2000; the data therefore do not include changes in
scorekeeping, entitlements, or supplemental appropriations that may be made later during FY2002.
The estimated FY2002 appropriations for L-HHS-ED was $395.9 billion in
current year funds — $123.4 billion in discretionary funds and $272.5 billion in
mandatory funds. The L-HHS-ED Appropriations Subcommittees generally have
effective control only over the discretionary funds, which constitute 5.9% of the
aggregate budget authority for all federal departments and agencies, and 11.7% of the
total budget authority for L-HHS-ED departments and agencies.1 What accounts for
the remaining 88.3% ($934.8 billion) of L-HHS-ED funds?
1 The annual congressional budget resolution sets aggregate budget goals; House and Senate
committees initiate and report legislation to achieve these targets. Typically, appropriations
committees develop proposals to meet discretionary targets through appropriations bills.
Likewise, authorizing committees develop proposals to meet mandatory targets; these
proposals are often reported by separate authorizing committees and combined into a single,
omnibus reconciliation bill.

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First, some DOL, DHHS, and ED programs receive automatic funding without
congressional intervention in the annual appropriations process; these programs
receive funds from permanent appropriations and trust funds instead. These
programs account for most of the difference between the L-HHS-ED bill total of
$395.9 billion and the agency estimated total of $1,058.2 billion in FY2002. The
major programs in this group include Unemployment Compensation, Medicare,
Railroad Retirement, Temporary Assistance for Needy Families (TANF, the welfare
assistance program), Student Loans, State Children’s Health Insurance, and Social
Security benefits.2
Second, mandatory programs account for the difference between the
L-HHS-ED total of $395.9 billion and the subtotal of $123.4 billion for discretionary
funds in FY2002. Although annual appropriations are made for these programs —
these are sometimes called “appropriated entitlements” — in general the amounts
provided must be sufficient to cover program obligations and entitlements to
beneficiaries. For these programs, as well as the programs funded through trust funds
and permanent authorities, most changes in funding levels are made through
amendments to authorizing legislation rather than through annual appropriations
bills. Federal administrative costs for these programs typically are subject to annual
discretionary appropriations, however. For L-HHS-ED agencies, these programs
include Supplemental Security Income, Black Lung Disability payments, Foster Care
and Adoption, the Social Services Block Grant, and Vocational Rehabilitation, as
well as general (non-earmarked) fund support for Medicare and Medicaid.
Third, two DHHS agencies are fully funded in other appropriations bills, and
three L-HHS-ED programs are partially funded elsewhere as well. FY2002
appropriations are shown for program or agency.
! The DHHS Food and Drug Administration is funded by the
Agriculture Appropriations ($1.4 billion).
! The DHHS Indian Health Service is funded by the Interior
Appropriations ($2.8 billion).
! The Corporation for National and Community Service (CNCS)
— which is funded under related agencies — is funded by L-HHS-
ED for programs authorized under the Domestic Volunteer Service
Act of 1973 ($328 million); it also receives funds from the Veterans
Affairs and Housing and Urban Development (VA-HUD)
Appropriations for AmeriCorps and other programs authorized by
the National Community Service Act ($407 million).
2 The Social Security Administration (SSA) was separated from DHHS and established as
an independent federal agency on March 31, 1995. Within the L-HHS-ED bill, however,
the SSA merely was transferred from DHHS to “related agency” status. The operation of
the Social Security trust funds is considered off-budget. Of the estimated $1,058.2 billion
total for L-HHS-ED departments and agencies in FY2002, the SSA accounted for $473.5
billion, or 44.7% of the total. As shown in Table B.1, the SSA amount represents $44.7
billion for designated on-budget activities and $428.8 billion for off-budget activities.

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! The Institute of Museum and Library Services (IMLS) is funded
under L-HHS-ED for the Library Services and Technology Act
programs of the Office of Library Services ($198 million); it
receives additional funds under the FY2002 Interior Appropriations
for the Office of Museum Services ($27 million). However, for
FY2003, all IMLS activities will be funded in the L-HHS-ED bill.
! The Centers for Disease Control and Prevention (CDC) is
primarily funded under L-HHS-ED ($4.3 billion); it also receives
funds under the FY2002 VA-HUD Appropriations for the Agency
for Toxic Substances and Disease Registry (ATSDR) ($78 million).
! The National Institutes of Health (NIH) is primarily funded under
L-HHS-ED ($23.5 billion); it receives additional funds under VA-
HUD Appropriations for certain environmental health sciences
activities ($81 million).

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Appendix C: Terrorism Funding in the L-HHS-ED
Bill
Several L-HHS-ED programs include activities that relate to preparing for and
responding to terrorism. Many of these programs were in place prior to the terrorist
attacks of September 11, 2001, but significant increases have been enacted since. An
annual L-HHS-ED summary is given first, followed by descriptive details.
! For FY2003, the President proposes $4.3 billion, mostly for U.S.
Department of Health and Human Services (DHHS) programs that
prevent, or respond to, bioterrorism, including public health and
hospital preparedness.
! On March 20, 2002, the President proposed an FY2002 emergency
supplemental that would include an additional $750 million for
dislocated worker programs at the U.S. Department of Labor (DOL),
and an FY2002 rescission of $50 million from DHHS programs.
! For FY2002 to date, $3.0 billion has been enacted for DHHS
bioterrorism programs and $220 million for DOL primarily for
emergency worker compensation programs.
! For FY2001, $291 million was enacted before the terrorist attacks of
September 11, 2001, primarily for DHHS bioterrorism programs;
after the attacks, an additional $126 million was enacted for DHHS
programs for health-related needs in disaster areas and $29 million
for DOL programs for temporary jobs to clean up afer the disaster.
Terrorism Funding, FY2003 Request
The President’s FY2003 budget request proposes an increase in terrorism
funding for some L-HHS-ED programs, primarily bioterrorism activities at DHHS.
Under the request, $4.3 billion of funding is requested for bioterrorism programs, as
follows:
! $1,637 million for Centers for Disease Control and Prevention
(CDC) activities for state and local public health preparedness and
the National Pharmaceutical Stockpile (NPS), among other
activities, compared to FY2002 funding of $2,298 million – the
decrease is due primarily to a one-time buildup in FY2002 of
vaccines and other pharmaceuticals to combat bioterrorism threats;
! $618 million for Health Resources and Services Administration
(HRSA) activities for hospital preparedness and infrastructure,
compared to FY2002 funding of $135 million;
! $1,748 million for research and facilities security activities at the
National Institutes of Health (NIH), compared to FY2002 funding of
$274 million; and
! $150 million for the Office of the Secretary for the Office of
Emergency Preparedness and the Office of Public Health
Preparedness, compared to FY2002 funding of $117 million.

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In addition, the DHHS Food and Drug Administration (FDA) would be funded at
$159 million for food safety and vaccine approval, compared to $158 million in
FY2002. The FDA is regularly funded in the Agriculture Appropriations Act. For
more information on bioterrorism programs, see CRS Report RL31263, Public
Health Security and Bioterrorism Preparedness and Response Act (P.L. 107-188):
Provisions and Changes to Preexisting Law.
Terrorism Funding, FY2002
Most FY2002 L-HHS-ED terrorism funding originates with the $40 billion
supplemental appropriations enacted by P.L. 107-38, the 2001 Emergency
Supplemental Appropriations Act for Recovery from and Response to Terrorist
Attacks on the United States. Of this $40 billion, the second $20 billion could not
be obligated until its allocation was specified in another appropriations act. The
required specification was enacted through Division B of P.L. 107-117, the
Department of Defense and Emergency Supplemental Appropriations for Recovery
from and Response to Terrorist Attacks on the United States Act, 2002. Of the $20
billion requiring another appropriations act, P.L. 107-117 (H.R. 3338, H.Rept. 107-
350) designated $2.9 billion for L-HHS-ED activities. An estimated additional $315
million has been provided through the regular FY2002 L-HHS-ED Appropriations
which were enacted by P.L. 107-116.
Note: Although enacted as FY2001 appropriations under P.L. 107-38, the
second $20 billion could not be obligated under P.L. 107-117 before FY2002, at the
earliest, and most agencies appear to be counting these funds as if they were FY2002
appropriations.
Activities at DOL include $220.1 million from the P.L. 107-117 Emergency
Supplemental, as follows:
! $32.5 million for Training and Employment Services for an
Emergency Employment Clearinghouse for New York City;
! $4.1 million for emergency expenses under the State Unemployment
Insurance and Employment Service Operations (SUI/ESO) program;
! $175.0 million for emergency expenses for Workers Compensation
Programs;
! $1.6 million for emergency expenses under the Pension and Welfare
Benefits Administration (PWBA);
! $1.0 million for emergency expenses at Occupational Safety and
Health Administration (OSHA); and
! $5.9 million for emergency expenses under DOL Departmental
Management.
Activities at DHHS include $2,666.8 million from the P.L. 107-117 Emergency
Supplemental, as follows:
! $12.0 million for the Centers for Disease Control and Prevention
(CDC) for emergency services personnel and rescue and recovery
personnel;

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! $140.0 million for the Public Health and Social Services Emergency
Fund (PHSSEF) to support grants for health care related expenses
and lost revenues directly attributable to the public health emergency
resulting from September 11, 2001;
! $2,504.3 million for the PHSSEF to support activities related to
countering potential biological, disease, and chemical threats to
civilian populations (these funds were subsequently allocated to
specific DHHS accounts); and
! $10.5 million for emergency expenses at the National Institute of
Environmental Health Sciences at NIH.
Other L-HHS-ED activities funded by P.L. 107-117 include $10.0 million for
Project SERV (School Emergency Response to Violence) program at the U.S.
Department of Education (ED); $0.2 million for emergency expenses at the National
Labor Relations Board (NLRB); and $7.5 million for emergency expenses at the
Social Security Administration (SSA).
Further FY2002 Emergency Funding. On March 20, 2002, the President
proposed an FY2002 supplemental appropriation of $27.1 billion for terrorism,
defense, homeland security, and economic revitalization. Of this amount, $750
million would be for dislocated worker programs, mostly under Training and
Employment Services programs at DOL. The proposal would rescind $20 million
for the Community Access Program to provide health care for the uninsured at the
DHHS Health Resources and Services Administration (HRSA) and $30 million for
NIH construction projects that are not yet underway. In the President’s regular
FY2003 budget submission, an FY2002 supplemental of $1.3 billion was requested
for Pell Grants, with the additional funds to be offset by rescissions in appropriations
for other L-HHS-ED programs. For the President’s request for Pell Grants, see
Budget of the United States Government Appendix, Fiscal Year 2003, pages 1195-97;
for program information, see Pell Grants (page 24).
On May 24, 2002, the House passed H.R. 4775, the 2002 Supplemental
Appropriations Act for Further Recovery From and Response To Terrorist Attacks
on the United States. With a $28.8 billion total, the bill would provide $300 million
for job training programs under the Workforce Investment Act of 1998 (WIA) at
DOL.3 At DHHS, $1 million would be provided for the CDC for Disease Control,
Research, and Training, and $0.5 million for the Domestic Violence Hotline; a
rescission of $30 million would be made for NIH Buildings and Facilities. At ED,
an additional $1.0 billion would be provided for Pell Grants.
On June 11, 2002, the Senate amended and passed its version of H.R. 4557, the
2002 Supplemental Appropriations Act for Further Recovery From and Response To
Terrorist Attacks on the United States. With a $31.5 billion total, the Senate version
of the bill would provide $400 million for WIA job training programs at DOL. At
DHHS, $315 million would be provided for the CDC for Disease Control, Research,
and Training. A rescission of $30 million would be made for NIH Buildings and
3 H.R. 4775 amounts are based on the June 12, 2002 staff table of the House Appropriations
Committee.

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Facilities; however, an additional $72 million would be provided for emergency
expenses for counter terrorism facilities at NIH. An additional $90 million would be
provided for the PHSSEF. At ED, an additional $1.0 billion would be provided for
Pell Grants. The Senate version of the bill would reduce by $45 million FY2002
L-HHS-ED administrative expenses.
Terrorism Funding, FY2001
Enacted prior to the September 11, 2001 terrorist attacks on the United States,
regular FY2001 L-HHS-ED Appropriations for programs to prepare for or respond
to terrorism totaled $291 million for three programs at the U.S. Department of Health
and Human Services (DHHS). The OMB summarized this information in its August
2001 report, Annual Report to Congress on Combating Terrorism, available at:
[http://www.whitehouse.gov/omb/legislative/nsd_annual_report2001.pdf].
! The Centers for Disease Control and Prevention (CDC) received
$181 million for the Rapid Response and Advanced Technology
Laboratory, which was established specifically for bioterrorism-
related activities; the Laboratory Response Network, which provides
containment and diagnostic capabilities for public health
laboratories; and the National Pharmaceutical Stockpile, which was
developed to ensure the availability of critical medical supplies and
equipment;
! The National Institutes of Health (NIH) received $50 million for
conducting basic and applied research on likely bioterrorism
chemical and biological agents; and
! The DHHS Office of the Secretary, Office of Emergency
Preparedness (OEP), received $60 million for managing the
Metropolitan Medical Response System, which provides funds and
technical assistance to local areas for coordinating emergency
services, and the National Disaster Medical System, which, in
partnership with other federal agencies, provides emergency medical
care for mass casualties and other disasters.
Supplemental FY2001 Funding. On September 18, 2001, the President
signed into law P.L. 107-38, the 2001 Emergency Supplemental Appropriations Act
for Recovery from and Response to Terrorist Attacks on the United States. The Act
provided $40 billion of FY2001 funds to respond to the terrorist attacks of September
11, 2001. Of the total $40 billion, $10 billion was available for obligation by the
President immediately, $10 billion was available for obligation following a 15-day
notification of the Congress, and $20 billion would be available for obligation only
after the allocations were enacted in another emergency appropriations act. As noted
previously, the second $20 billion is sometimes counted by agencies as FY2002
appropriations.
Of the $20 billion provided by P.L. 107-38 that did not need additional
legislation, $155 million was distributed for L-HHS-ED programs, as follows:

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! $126 million for DHHS activities for health-related needs in areas
affected by the disaster; and
! $29 million for U.S. Department of Labor (DOL) activities, mostly
for temporary jobs to assist the cleanup and restoration efforts in
New York City.
For more information on terrorism, see CRS Report RL31173, Terrorism
Funding: Emergency Supplemental Appropriations — Distribution of Funds to
Departments and Agencies; and the CRS Electronic Briefing Book on Terrorism at
[http://www.congress.gov/brbk/html/ebter1.shtml].

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