The FRA’s Discretionary Spending Caps Under a CR: FAQs

The FRA’s Discretionary Spending Caps Under a CR: FAQs

link to page 1

INSIGHTi

The FRA’s Discretionary Spending Caps
Under a CR: FAQs
Updated November 8, 2023
What is the FRA and how does it limit discretionary spending?
The Fiscal Responsibility Act (FRA, P.L. 118-5), enacted in June 2023, temporarily suspended the debt
limit and reinstituted enforceable discretionary spending limits for FY2024 and FY2025 for both defense
and nondefense discretionary spending. The defense limits represent an increase in both fiscal years from
the FY2023 enacted level, while the nondefense limits represent a decrease in both fiscal years from the
FY2023 enacted level, as shown in Table 1.
Table 1.FRA Discretionary Limits on Budget Authority for FY2024 and FY2025
In Billions of Nominal Dollars
Fiscal Year
Defense Discretionary
Nondefense Discretionary
Total
FY2023 (enacted)
$858.36
$743.89
$1,602.25
FY2024
$886.35
$703.65
$1,590.00
FY2025
$895.21
$710.69
$1,605.90
Source: P.L. 118-5.
Note: This table shows only base spending, which excludes funding that would be exempt from budgetary enforcement.
If discretionary appropriations are enacted that exceed the limit in either category, a sequester is triggered
making across-the-board reductions within the applicable category (defense and/or nondefense). In most
cases, the President would issue such a sequester order within 15 calendar days after the end of a session
of Congress. Certain types of spending, such as spending designated as being for emergency purposes, are
effectively exempt from the limits.
What does the FRA require if a CR is in effect?
The FRA includes a provision that has been described as incentivizing Congress to enact regular full-year
appropriations legislation instead of relying on continuing resolutions (CRs). This provision requires that
Congressional Research Service
https://crsreports.congress.gov
IN12183
CRS INSIGHT
Prepared for Members and
Committees of Congress

link to page 2
Congressional Research Service
2
if a CR is in effect on January 1 of 2024 or 2025 for any budget account, the discretionary spending limits
for that fiscal year would be automatically revised to the levels shown below in Table 2. The revised
levels would result in an increase in nondefense discretionary budget authority and a decrease for defense
discretionary spending levels when compared with the original levels.
Table 2.FRA Discretionary Limits on Budget Authority for FY2024 and FY2025, with
Revisions
In Billions of Nominal Dollars
Revised Defense
Revised Nondefense
Revised Total
Fiscal Year
Discretionary
Discretionary
Discretionary
FY2024
$849.78
$736.45
$1,586.23
+/- Original caps (% change)
-$36.57 (-4.13%)
$32.80 (+4.66%)
-$3.77 (-0.24%)
FY2025
$849.78
$736.45
$1,586.23
+/- Original caps (% change)
-$45.43 (-5.07%)
$25.76 (+3.62%)
-$19.67 (-1.22%)
Sources: P.L. 118-5 and the Congressional Budget Office cost estimate referenced in P.L. 118-5 as “table 1–S of H.R.
2617, published on December 21, 2022.”
Note: This table shows only base spending, which excludes funding that would be exempt from budgetary enforcement.
When would a sequester occur under a CR?
Under such a scenario, a sequester order would be issued on April 30 of either 2024 or 2025. The FRA
states that the revised limits would revert to the original FRA limits if full-year appropriations were
enacted before April 30.

Source: P.L. 118-5.
Does the FRA include an automatic CR or an automatic omnibus?
No. The FRA does not provide for the automatic enactment or implementation of spending legislation
(either a CR or regular appropriations) at any point during the fiscal year. As in other years, if
appropriations have not been enacted (either for the whole fiscal year or temporarily through a CR) at any
point beginning on October 1, a funding gap and partial government shutdown would occur.

link to page 3 link to page 4 link to page 5 link to page 3 link to page 4 link to page 5 Congressional Research Service
3
How do the FRA limits and revisions compare to FY2023 spending?
In FY2023, Congress enacted a total of $1.602 trillion in base discretionary spending. This includes
$858.36 billion in the defense category and $743.89 billion in the nondefense category. Compared to
these levels, the discretionary caps for FY2024 and FY2025 enacted in the FRA would provide a slight
decrease in total discretionary spending for FY2024 and then a slight increase in total discretionary
spending for FY2025. As shown in Table 3, Figure 1, and Figure 2, the caps would provide for nominal
increases in defense discretionary spending for both FY2024 and FY2025 while decreasing in nominal
terms nondefense discretionary spending for both fiscal years compared to FY2023 enacted discretionary
spending in these categories.
Table 3.Discretionary Spending for FY2024 and FY2025 Under the FRA Compared to
FY2023 Enacted Discretionary Spending (No Revisions)
In Billions of Nominal Dollars
Fiscal Year
Defense Discretionary
Nondefense Discretionary
Total Discretionary
FY2024
$886.35
$703.65
$1,590.00
+/- FY2023 (% change)
$27.99 (+3.26%)
-$40.24 (-5.41%)
-$12.25 (-0.76%)
FY2025
$895.21
$710.69
$1,605.90
+/- FY2023 (% change)
$36.85 (+4.29%)
-$33.2 (-4.46%)
$3.65 (+0.23%)
Source: P.L. 118-5.
Note: This table shows base spending, which excludes funding that would be exempt from budgetary enforcement.
If a CR is in effect for any discretionary account on January 1 of either 2024 (FY2024) or 2025 (FY2025),
the FRA requires that the discretionary spending limits be revised for that fiscal year to reflect enacted
levels for defense and nondefense categories for FY2023, decreased by 1 percent. Under this scenario,
both defense and nondefense discretionary spending would decrease slightly in nominal terms in FY2024
and FY2025 compared to FY2023 enacted levels (as shown in Table 4, Figure 1, and Figure 2).
Table 4.Discretionary Spending for FY2024 and FY2025 Under the FRA Compared to
FY2023 Enacted Discretionary Spending (with Revisions)
In Billions of Nominal Dollars
Revised Defense
Revised Nondefense
Revised Total
Fiscal Year
Discretionary
Discretionary
Discretionary
FY2024
$849.78
$736.45
$1,586.23
+/- FY2023 (% change)
-$8.58 (-1%)
-$7.44 (-1%)
-$16.02 (-1%)
FY2025
$849.78
$736.45
$1,586.23
+/- FY2023 (% change)
-$8.58 (-1%)
-$7.44 (-1%)
-$16.02 (-1%)
Sources: P.L. 118-5 and CBO’s “Status of Discretionary Appropriations” report for FY2023.
Note: This table shows only base spending, which excludes funding that would be exempt from budgetary enforcement.

Congressional Research Service
4
Figure 1. FY2024 FRA Limits and Revisions Compared to FY2023 Spending
In Billions of Nominal Dollars

Source: P.L. 118-5 and CBO’s “Status of Discretionary Appropriations” report for FY2023.
Notes: This figure shows only base spending, which excludes funding that would be exempt from budgetary enforcement.

Congressional Research Service
5
Figure 2. Projected Discretionary Spending Under the FRA as Enacted and with Revision
Base Enacted (or Projected) Discretionary Spending (in Billions of Nominal Dollars): FY2020-FY2025

Sources: Information compiled from P.L. 118-5 and CBO’s “Status of Discretionary Appropriations” reports for FY2020-
FY2023.
Note: This figure shows only base spending, which excludes funding that would be exempt from budgetary enforcement.

Author Information

Drew C. Aherne
Megan S. Lynch
Analyst on Congress and the Legislative Process
Specialist on Congress and the Legislative Process

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However,

Congressional Research Service
6
as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the
permission of the copyright holder if you wish to copy or otherwise use copyrighted material.

IN12183 · VERSION 4 · UPDATED