Appropriations for FY2003: Labor, Health and Human Services, and Education

This report tracks the legislative progress 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 $130.7 billion in discretionary funds; the comparable FY2002 amount was $128.1 billion, enacted primarily through P.L. 107-116 . In the 108th Congress, an FY2003 L-HHS-ED bill was introduced in the House as H.R. 246 ; the Senate-passed version was included in H.J.Res. 2 . The conference version of H.J.Res. 2 was signed into law as P.L. 108-7 on February 20, 2003, providing $135.8 billion in discretionary funds for L-HHS-ED, prior to an "across-the-board" reduction (discussed on page 10). A series of eight continuing resolutions, P.L. 107-229 , as amended, provided interim FY2003 appropriations through February 20, 2003. Department of Labor (DOL): DOL discretionary appropriations were $12.0 billion in FY2002; $11.9 billion is enacted for FY2003. Compared to FY2002 funding levels, Unemployment Compensation increased $234 million, and Workforce Investment Act programs decreased $263 million. Department of Health and Human Services (HHS): HHS discretionary appropriations were $56.9 billion in FY2002; $60.7 billion is enacted for FY2003. Increases include $3.8 billion for the National Institutes of Health, $172 million for Community Health Centers, $121 million for Ryan White Aids Programs, $155 million for Program Management at Centers for Medicare and Medicaid Services, and $131 million for Head Start. The Public Health and Social Services Emergency Fund is reduced by $414 million, and the Low-Income Home Energy Assistance Program Emergency Allocation is eliminated. Department of Education (ED): ED discretionary appropriations were $49.9 billion in FY2002; $53.4 billion is enacted for FY2003. Increases include $1.4 billion for Title I Part A Grants to Local Educational Agencies and $1.4 billion for Individuals with Disabilities Education Act (IDEA) Part B Grants to States. An increase of $100 million is provided for Reading First State Grants, $100 million for Teacher Quality State Grants, and $125 million for Pell Grants. Related Agencies: Discretionary appropriations for related agencies were $9.2 billion in FY2002; $9.7 billion is enacted for FY2003. An increase of $351 million is provided for Administrative Expenses at the Social Security Administration.

Order Code RL31303 CRS Report for Congress Received through the CRS Web Appropriations for FY2003: Labor, Health and Human Services, and Education Updated March 14, 2003 name redacted Specialist in Social Legislation Domestic Social Policy Division Congressional Research Service ˜ The Library of Congress 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]. Appropriations for FY2003: Labor, Health and Human Services, and Education Summary This report tracks the legislative progress 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 $130.7 billion in discretionary funds; the comparable FY2002 amount was $128.1 billion, enacted primarily through P.L. 107116. In the 108th Congress, an FY2003 L-HHS-ED bill was introduced in the House as H.R. 246; the Senate-passed version was included in H.J.Res. 2. The conference version of H.J.Res. 2 was signed into law as P.L. 108-7 on February 20, 2003, providing $135.8 billion in discretionary funds for L-HHS-ED, prior to an “acrossthe-board” reduction (discussed on page 10). A series of eight continuing resolutions, P.L. 107-229, as amended, provided interim FY2003 appropriations through February 20, 2003. Department of Labor (DOL): DOL discretionary appropriations were $12.0 billion in FY2002; $11.9 billion is enacted for FY2003. Compared to FY2002 funding levels, Unemployment Compensation increased $234 million, and Workforce Investment Act programs decreased $263 million. Department of Health and Human Services (HHS): HHS discretionary appropriations were $56.9 billion in FY2002; $60.7 billion is enacted for FY2003. Increases include $3.8 billion for the National Institutes of Health, $172 million for Community Health Centers, $121 million for Ryan White Aids Programs, $155 million for Program Management at Centers for Medicare and Medicaid Services, and $131 million for Head Start. The Public Health and Social Services Emergency Fund is reduced by $414 million, and the Low-Income Home Energy Assistance Program Emergency Allocation is eliminated. Department of Education (ED): ED discretionary appropriations were $49.9 billion in FY2002; $53.4 billion is enacted for FY2003. Increases include $1.4 billion for Title I Part A Grants to Local Educational Agencies and $1.4 billion for Individuals with Disabilities Education Act (IDEA) Part B Grants to States. An increase of $100 million is provided for Reading First State Grants, $100 million for Teacher Quality State Grants, and $125 million for Pell Grants. Related Agencies: Discretionary appropriations for related agencies were $9.2 billion in FY2002; $9.7 billion is enacted for FY2003. An increase of $351 million is provided for Administrative Expenses at the Social Security Administration. Key Policy Staff Area of Expertise Coordinator Name CRS Division (name redacted) DSP Telephone 7-.... Department of Labor Job training and employment services Labor market information Labor standards enforcement Mine Safety and Health Administration Occupational Safety and Health Administration Older Americans Act, employment programs Pension and Welfare Benefits Trade Adjustment Assistance Unemployment compensation Welfare-to-Work Workforce Investment Act (name redacted) (name redacted) (name redacted) DSP Edward B. Rappaport Edward B. Rappaport Carol V. O’Shaughnessy (name redacted) (name redacted) (name redacted) (name redacted) (name redacted) DSP 7-.... DSP 7-.... 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... Department of Health and Human Services Abortion, legal issues Abortion, legal issues Abortion procedures AIDS, Ryan White programs Bioterrorism, HHS funding Bioterrorism, HHS funding Cancer research Centers for Disease Control and Prevention Child care and development Child welfare Cloning, Stem Cell Research Community Health Centers Family Planning, Title X Head Start Health professions education and training Immigration and refugee policy Immunization Low-Income Home Energy Assistance Program Maternal and Child Health Block Grant Medicaid Medicare Needle exchange, AIDS NIH, health research policy NIH, health research policy Older Americans Act Social Services Block Grant Karen J. Lewis ALD 7-.... Jon Shimabakuro ALD 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... Sharon Kearney DSP 7-.... Coleman Sharon Kearney DSP 7-.... Coleman (name redacted) DSP 7-.... (name r DSP 7-.... edacted) Ruth Wasem DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... Sharon Kearney DSP 7-.... Coleman Elicia Herz DSP 7-.... Jennifer O’Sullivan DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... (name redacted) DSP 7-.... Carol V. O’Shaughnessy DSP 7-.... (name redacted) DSP 7-.... Area of Expertise Name State Children’s Health Insurance Program Stem Cell Research, Cloning Substance Abuse and Mental Health Services Tobacco settlement Welfare reform Welfare reform Evelyne Baumrucker (name redacted) (name redacted) (name redacted) (name redacted) (name redacted) CRS Division Telephone DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... Department of Education Adult education and literacy After-school programs Assessment in education Bilingual education Charter Schools Education block grants Education of the Disadvantaged, Title I Education technology English Language Acquisition Impact Aid Indian Education Pell Grants Reading programs Rehabilitation Act Safe and Drug-Free Schools and Communities School facilities Special education, IDEA Special education, IDEA, legal issues Student aid Student loans Teacher recruitment, preparation, and training 21st Century Community Learning Centers Vocational and Technical Education (name redacted) (name redacted) (name redacted) Jeff Kuenzi David Smole Becky Skinner (name redacted) James B. Stedman Jeff Kuenzi Becky Skinner (name redacted) James B. Stedman (name redacted) Sidath Panangala (name redacted) (name redacted) (name redacted) (name redacted) James B. Stedman (name redacted) James B. Stedman (name redacted) Becky Skinner DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... ALD 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... DSP 7-.... Related Agencies Corporation for National and Community Service (VISTA, Senior Corps) Corporation for Public Broadcasting Library Services Museum Services National Labor Relations Board National Labor Relations Board, legal issues Railroad Retirement Board Social Security Administration Supplemental Security Income (name redacted) Glenn McLoughlin (name redacted) (name redacted) (name redacted) Jon Shimabukuro (name redacted) Geoffrey Kollmann Jennifer Lake DSP 7-.... RSI 7-.... DSP 7-.... DSP 7-.... DSP 7-.... ALD 7-.... DSP 7-.... DSP 7-.... DSP 7-.... Division abbreviations: ALD = American Law; DSP = Domestic Social Policy; and RSI = Resources, Science, and Industry. Contents Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Summary and Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Program Level and Current Year Appropriations . . . . . . . . . . . . . . . . . . . . . 3 Funding Changes Requested by the President . . . . . . . . . . . . . . . . . . . . . . . . 5 House Legislative Proposal, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Senate Legislative Proposal, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 FY2003 Public Law Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 “Across-the-Board” Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Earmarks for Specific Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 302(a) and 302(b) Allocation Ceilings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Advance Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Major Funding Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Continuing Resolutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Terrorism and Homeland Security Assistance . . . . . . . . . . . . . . . . . . . . . . . 15 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Department of Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 House Bill, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Senate Bill, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Public Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Department of Health and Human Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 House Bill, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Senate Bill, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Public Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Bioterrorism Preparedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Abortion: Funding Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Embryonic Stem Cell Research: Funding Restrictions . . . . . . . . . . . . 26 CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Department of Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 House Bill, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Senate Bill, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Public Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Pell Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Student Aid Program Administration . . . . . . . . . . . . . . . . . . . . . . . . . 33 IDEA Part B Grants to States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Forward Funding and Advance Appropriations . . . . . . . . . . . . . . . . . . 34 CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Related Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Key Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 House Bill, as Introduced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Senate Bill, as Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Public Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Detailed Appropriations Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Related Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111) . . . . . . . . . . 44 FY2002 Supplemental Appropriations, P.L. 107-206 (H.R. 4775) . . . . . . . 45 FY2003 Budget Resolution, H.Con.Res. 353/S.Con.Res. 100 . . . . . . . . . . 46 Department of Homeland Security, P.L. 107-296 (H.R. 5005) . . . . . . . . . . 46 Appropriations Action in the 107th Congress, First Session . . . . . . . . . . . . 47 Appendix A: Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Appendix B: Scope of L-HHS-ED Appropriations . . . . . . . . . . . . . . . . . . . . . . 50 Appendix C: Terrorism Funding in L-HHS-ED Appropriations . . . . . . . . . . . . 53 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 . . . . . . . . . . . . . . . . . . . . . . . . 4 Table 3. 302(b) Discretionary Allocationsfor L-HHS-ED Programs . . . . . . . . . 12 Table 4. L-HHS-ED Discretionary Funding Trends from FY1998 . . . . . . . . . . 14 Table 5. Department of Labor Discretionary Appropriations . . . . . . . . . . . . . . . 17 Table 6. Detailed Department of Labor Appropriations . . . . . . . . . . . . . . . . . . . 20 Table 7. Department of Health and Human Services Discretionary Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Table 8. Detailed Department of Health and Human Services Appropriations . 28 Table 9. Department of Education Discretionary Appropriations . . . . . . . . . . . 30 Table 10. Detailed Department of Education Appropriations . . . . . . . . . . . . . . 37 Table 11. Related Agencies Discretionary Appropriations . . . . . . . . . . . . . . . . . 39 Table 12. Detailed Related Agencies Appropriations . . . . . . . . . . . . . . . . . . . . . 42 Table B.1. Scope of the L-HHS-ED Bill, FY2002 . . . . . . . . . . . . . . . . . . . . . . . 50 Appropriations for FY2003: Labor, Health and Human Services, and Education Most Recent Developments P.L. 108-7 Enacted. Following a series of eight continuing resolutions, the Departments of Labor, Health and Human Services, and Education, and Related Agencies (L-HHS-ED) Appropriations Act, 2003, was enacted February 20, 2003, as part of P.L. 108-7 (H.J.Res. 2). Prior to a reduction for most discretionary programs, the Act provides $135.8 billion for L-HHS-ED discretionary programs. Senate Version of H.J.Res. 2 Passed. On January 23, 2003, the Senate passed H.J.Res. 2 that would provide $140.5 billion in discretionary L-HHS-ED appropriations, prior to required cut to most discretionary programs. House Bill H.R. 246 Introduced. On January 8, 2003, L-HHS-ED Subcommittee Chairman Regula introduced an FY2003 bill, H.R. 246, that would provide $131.0 billion in discretionary funds for L-HHS-ED programs. President’s FY2003 Budget Submitted. On February 4, 2002, the President submitted the FY2003 budget request to Congress, proposing $130.7 billion in discretionary funds for L-HHS-ED programs. Including supplemental appropriations, the FY2002 L-HHS-ED discretionary total was $128.1 billion. Status Table 1. Legislative Status of Labor, Health and Human Services, and Education Appropriations, FY2003 Subcommittee markup House House Senate Senate Conferenc House Senate Report passage Report passage e Report —a a —b — — —c Conference report approval House Senate Public law P.L. H.J.Res. 2 H.Rept. 02/13/03 02/13/03 108-7 01/23/03 108-10 338-83 f 76-20 g 02/20/03 69-29 d 02/13/03 e h The House L-HHS-ED Appropriations Subcommittee began hearings on FY2003 appropriations on February 13, 2002. During the 107th Congress and without Committee markup, House Appropriations Committee Chairman Young introduced the President’s FY2003 L-HHS-ED request as a bill, H.R. 5320, on September 4, 2002. During the 108th Congress and without Committee markup, CRS-2 Subcommittee Chairman Regula introduced a different version of the FY2003 L-HHS-ED bill, H.R. 246, on January 8, 2003. b The Senate L-HHS-ED Appropriations Subcommittee began hearings on FY2003 appropriations on February 28, 2002. On July 16, 2002, the Subcommittee marked up and reported out a bill by unanimous consent. c S. 2766 was reported (S.Rept. 107-216) by the Appropriations Committee on July 22, 2002, but the bill made no further progress during the 107th Congress. d H.J.Res. 2 was amended and passed by the Senate on January 23, 2003, to create an omnibus FY2003 appropriations bill that would consolidate the remaining 11 of the 13 regular appropriations bills not yet enacted. For Senate consideration of H.J.Res. 2, see Congressional Record, Daily Edition, January 15, 2003, p. S340-839; January 16, p. S999-1064; January 17, p. S1101-1123 and S1132-1134; January 21, p. S1171-1234 and S1238-1241; January 22, p. S1302-1307 and S13251359; and January 23, p. S1379-1419 and S1421-1460. Senate approval was by Roll Call no. 28 (6929), January 23, 2003, p. S1437. For text of the Senate amendment to H.J.Res. 2, see Congressional Record, Daily Edition, January 28, 2003, p. S1512-1642. e The text of conference report H.Rept. 108-10, filed February 13, 2003, was printed in the Congressional Record, Daily Edition, February 13, 2003 [Book II], p. H707-H1276. f For House passage of the conference report, see Congressional Record, Daily Edition, February 13, 2003, p. H589-673. Roll call no. 32 (338-83), February 13, 2003, p. H671-2. g For Senate passage of the conference report, see Congressional Record, Daily Edition, February 13, 2003, p. S2428-39. Roll call no. 34 (76-20), February 13, 2003, p. S2439. h Eight FY2003 continuing resolutions, beginning with P.L. 107-229 (H.J.Res. 111), as amended, provided temporary funding for L-HHS-ED programs from October 1, 2002, to February 20, 2003. Data Note. In this report, data on FY2002 and FY2003 appropriations are based on the FY2003 conference report H.Rept. 108-10, February 13, 2003. Amounts based on a source other than the FY2003 conference report are noted where relevant. 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. The FY2003 amounts for the Senate and conference versions of the bill do not reflect subsequent cuts to most discretionary programs required elsewhere in the Senate and conference versions, as discussed on page 10. Final FY2003 appropriations that reflect these reductions were not specified in the bills, and are not yet available in a form comparable to those provided in the conference report. FY2004 Budget Request. On February 3, 2003, the President submitted the FY2004 budget to the Congress. Overall, the President requests discretionary appropriations of $135.1 billion for L-HHS-ED programs (Budget of the U.S. Government, Fiscal Year 2004, Table S-8). FY2004 budget details related to L-HHS-ED programs will be separately addressed in a forthcoming CRS report. FY2002 Appropriations. FY2002 L-HHS-ED appropriations were enacted in several stages, including: eight continuing resolutions — P.L. 107-44, as amended; regular FY2002 L-HHS-ED appropriations — P.L. 107-116 (H.R. 3061, H.Rept. 107-342), January 10, 2002; the FY2002 anti-terrorism supplemental appropriation — P.L. 107-117 (H.R. 3338, H.Rept. 107-350), January 10, 2002; and further emergency FY2002 supplemental appropriations — P.L. 107-206 (H.R. 4775, H.Rept. 107-593), August 2, 2002. For additional legislative details, see Related Legislation, page 44. CRS-3 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, and the congressional response to that proposal. 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 44). 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 49. For a discussion of the jurisdiction of the L-HHS-ED bill, see Appendix B: Scope of the L-HHS-ED Bill, page 50. For a separate description of terrorism funding, see Appendix C: Terrorism Funding in the L-HHS-ED Bill, page 53. 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 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 $696.5 billion total for all federal discretionary budget authority, as reported in Budget of the United States Government Fiscal Year 2003, Table S-8. This section summarizes the larger funding changes proposed for L-HHS-ED and related issues such as funds for anti-terrorism activities, earmarks for specific projects, 302(b) allocations, and advance appropriations. Later sections will provide additional details for each L-HHS-ED department. Program Level and Current Year Appropriations Table 2 summarizes the L-HHS-ED appropriations for FY2003, including both discretionary and mandatory appropriations. The table shows various aggregate measures of FY2002 final and FY2003 proposed L-HHS-ED appropriations, including discretionary program level, current year, and advance appropriations, as well as scorekeeping adjustments. ! Program level appropriations reflect the total discretionary appropriations in a given bill, regardless of the year in which they will be spent, and therefore include advance funding for future years. Unless otherwise specified, appropriations levels in this report refer to program level amounts. CRS-4 ! ! ! Current year appropriations represent discretionary appropriations in a given bill for the current year, plus discretionary appropriations for the current year that were enacted in prior years. Current year discretionary appropriations are similar to the amount counted for the 302(b) allocations ceilings (discussed later, page 12). Advance appropriations are funds that will not become available until after the fiscal year for which the appropriations are enacted – for example, funds included in the FY2003 Act that cannot be spent until FY2004 at the earliest (discussed later, page 13). Scorekeeping adjustments are made to account for special funding situations; the Congressional Budget Office (CBO) monitors these adjustments. Table 2. Summary of L-HHS-ED Appropriations ($ in billions) FY2002 final a FY2003 request FY2003 House FY2003 Senate FY2003 enacted Program level: current bill for any year $128.1 $130.7 $131.0 $140.5 $135.8 Current year: current year from any bill 127.2 131.9 130.8 136.5 133.4 Advances for future years (from the current bill) 19.3 18.9 19.3 23.0 21.5 Advances from prior years (from previous bills) 18.8 19.2 19.2 19.2 19.2 Scorekeeping adjustments -0.4 0.9 -0.1 -0.2 -0.1 Type of budget authority Discretionary appropriations Current year discretionary and mandatory funding Discretionary 127.2 131.9 130.8 136.5 133.4 Mandatory 272.9 290.6 290.7 290.7 290.7 Total current year 400.1 422.5 421.5 427.2 424.1 $427.3 $436.8 $432.0 Grand total of funding for L-HHS-ED bill, any year Grand total any year $411.8 $426.8 Source: Amounts are based on the FY2003 conference report (H.Rept. 108-10, February 13, 2003). The FY2003 amounts for the Senate and conference versions of the bill do not reflect subsequent cuts to most discretionary programs required elsewhere in those versions (see page 10). 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, P.L. 107-117, and P.L. 107-206. 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) CRS-5 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 — $128.1 billion for program level and $127.2 billion for current year appropriations — are based on the FY2003 conference report. Several other estimates exist that may differ because of supplemental appropriations, rescissions, scorekeeping adjustments, 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) gave $123.4 billion as the FY2002 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 final FY2002 L-HHS-ED discretionary total is $127.2 billion for both the House and the Senate (visited February 28, 2003). The CBO amounts include supplemental appropriations and rescissions; however, during a given fiscal year, 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. Funding Changes Requested by the President With regard to the President’s budget, the primary issues raised during the congressional consideration of any appropriations request generally relate to proposed funding changes. The summary below notes changes proposed for FY2003 discretionary budget authority of at least $100 million compared to the FY2002 amount. 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 in this report, the discussions of budgets for 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, $130.7 billion in discretionary appropriations at the program level is requested for L-HHS-ED, a 2.0% increase over the FY2002 amount of $128.1 billion. At the time of the initial FY2003 request, the comparable FY2002 amount was $127.3 billion; P.L. 107-206 provided FY2002 supplemental appropriations of nearly $1.0 billion. ! For Department of Labor (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 4.2% decrease compared to the FY2002 amount of $12.0 billion. ! For Department of Health and Human Services (HHS) programs, the largest discretionary funding change (in absolute terms) is a requested increase of $3.8 billion for National Institutes of Health (NIH). An increase of $115 million is requested for Community CRS-6 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; $390 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 $366 million reduction for the Public Health and Social Services Emergency Fund (PHSSEF). The request would eliminate the $312 million Health Care and Other Facilities program. Overall, $59.5 billion in discretionary appropriations is requested for HHS, a 4.6% increase over the FY2002 amount of $56.9 billion. ! For Department of Education (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. After enactment of a $1.0 billion FY2002 supplemental, Pell Grants would be decreased by $0.5 billion. The maximum award under Pell Grants would be $4,000, the same as for FY2002. 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, $50.3 billion in discretionary appropriations is requested for ED, a 0.8% increase over the FY2002 amount of $49.9 billion. ! For the related agencies, the budget proposes an increase of $351 million for the Limitation on Administrative Expenses at the Social Security Administration (SSA). The budget would eliminate the 2year advance appropriations for the Corporation for Public Broadcasting (CPB); $380 million was provided in FY2002. Overall, $9.3 billion in discretionary appropriations is requested for related agencies, a 1.1% increase over the FY2002 amount of $9.2 billion. CRS-7 House Legislative Proposal, as Introduced On January 8, 2003, Representative Ralph Regula, Chairman of the House Subcommittee on L-HHS-ED Appropriations, introduced H.R. 246, a bill to provide FY2003 appropriations for L-HHS-ED programs. H.R. 246 was not agreed to by either the Committee or Subcommittee, and was not passed by the House. House Highlights. Overall, H.R. 246, as introduced, would provide program level discretionary appropriations of $131.0 billion for L-HHS-ED programs. The comparable amount requested by the President is $130.7 billion; the FY2002 amount was $128.1 billion. The bill differs from the President’s request in a number of details. ! For DOL programs, the House bill proposes that WIA programs would be funded at $5.1 billion, $102 million more than the FY2003 request. Overall, the House bill would provide $11.7 billion for discretionary appropriations for DOL, $0.2 billion more than requested but $0.3 billion less than the FY2002 amount. ! For HHS programs, the House bill would fund Health Professions at a level $375 million more than requested; the CDC would receive $315 million more; and LIHEAP would receive $300 million more than the request. However, the $300 million LIHEAP Emergency Allocation would be eliminated under the House bill. The PHSSEF would receive $212 million more than requested. The Community Access program would be maintained at $120 million; termination of funding is requested. The NIH would receive $0.7 billion less than requested; discretionary funding for Promoting Safe and Stable Families would receive $130 million less than requested. The House bill does not accept the $184 million requested for the Health Facilities Construction Consolidation proposal. Overall, the House bill would provide $59.5 billion for discretionary appropriations for HHS, the same as requested but $2.6 billion more than the FY2002 amount. ! For ED programs, the House bill would provide $500 million less than requested for Title I Part A Grants to LEAs, and $500 million less for IDEA Part B Grants to States as well. Teacher Quality would receive $100 million more than the request; the FIE would receive $227 million more; Pell Grants would receive $337 million more. Rural Education would be level funded at $163 million; no funds are requested. The House bill would reject the President’s request to fund mandatory student loan administrative activities on a discretionary basis. Overall, the House bill would provide $50.3 billion for discretionary appropriations for ED, the same as requested but $0.4 billion more than the FY2002 amount. ! For related agencies, the House bill would provide appropriations at approximately the level requested by the President with the exception that the CPB would receive a 2-year advance CRS-8 appropriation of $380 million for FY2005; the CPB would not receive FY2005 funding under the request. Overall, the House bill would provide $9.6 billion for discretionary appropriations for related agencies, $0.3 billion more than the amount requested and $0.4 million more than the FY2002 amount. During the 107th Congress, on September 4, 2002, Representative C. W. Bill Young, Chairman of the House Appropriations Committee, introduced H.R. 5320, a bill to provide FY2003 appropriations for L-HHS-ED programs in the exact same amounts proposed by the President in the FY2003 budget request. The House Appropriations Committee neither marked up nor reported H.R. 5320; the House did not vote on this bill. Senate Legislative Proposal, as Passed On January 15, 2003, the Senate began consideration of an FY2003 omnibus appropriations amendment to H.J.Res. 2, which would provide funds for 11 out of the 13 annual appropriations acts that had not yet been enacted, including L-HHS-ED appropriations. Following a series of amendments, the Senate passed H.J.Res. 2 on January 23, 2003. Senate Reduction. As passed by the Senate, H.J.Res. 2 included procedures to reduce most discretionary appropriations from the amount otherwise enacted. The intent was to meet the overall spending limitations requested by the President. The cuts would apply to most FY2003 appropriations in H.J.Res. 2, as well as to advance appropriations for FY2003 enacted in previous appropriations Acts. Section 601 (“Across-the-Board Rescissions”) of Division N of H.J.Res 2 provides for a reduction of 1.6%. However, one of the floor amendments (§309 of Division G) added $5.0 billion for innovative education programs and, to prevent the total for the bill from increasing, directed that the percent specified for the cut should be increased accordingly to account for the additional funds. The exact percentage was never specified in the bill. The CBO reportedly made a preliminary calculation that estimated the reduction to be 2.852%, which in turn would have decreased the Senate-passed discretionary total by $11.392 billion. P.L. 108-7 also includes a reduction to most discretionary programs, but the decrease is stated as 0.65%, without further adjustments (see page 10). Senate and conference data in this report are based on the unadjusted funding levels, enacted prior to the application of the reductions, as the exact reductions for each program are not specified in the bill. Senate Highlights. Overall, the FY2003 Senate bill, as passed, but prior to the required reduction described above, would provide program level discretionary appropriations of $140.5 billion for L-HHS-ED programs. The comparable amount requested by the President is $130.7 billion; the FY2002 amount was $128.1 billion. ! For DOL programs, the Senate bill would provide $80 million for the WIA Migrant and Seasonal Farmworker Program; the FY2003 request is for zero funding. Overall, the Senate bill would provide $11.8 billion in discretionary appropriations for DOL, $0.3 billion more than requested but $0.2 billion less than the FY2002 amount. CRS-9 ! For HHS programs, the Senate bill would provide NIH with an increase of $3.7 billion, the same as requested in the FY2003 budget. The bill would provide $399 million more than the request for Health Professions; $115 million more for Ryan White AIDS Programs; $344 million more for the CDC; and a net increase of $300 million for the LIHEAP programs. The Community Access Program would be funded at $120 million, the same as in FY2002; no funds are requested. Overall, the Senate bill would provide $60.9 billion in discretionary appropriations for HHS, $1.4 billion more than requested and $4.0 billion more than the FY2002 amount. ! For ED programs, the Senate bill would provide a new FY2003 program of $5.0 billion for Innovative Education under Title I Part A Grants; no funds are requested. IDEA Part B Grants to States would be funded at $10.0 billion, $1.5 billion more than requested and $2.5 billion more than in FY2002. The Senate bill would not go along with the $100 million request for Charter School Facilities, but it would provide $175 million for Rural Education for which no funds are requested. FIE programs would receive $642 million more than requested, and Pell Grants would be funded at $317 million more than the request. The maximum award under Pell Grants would be increased to $4,100, an amount that is $100 more than requested or provided in FY2002. The Senate bill would not support the President’s proposal to unify the mandatory part of federal student aid program administration. Overall, the Senate bill would provide $58.2 billion in discretionary appropriations for ED, $7.9 billion more than requested and $8.3 billion more than the FY2002 amount. ! For related agencies, the Senate bill would provide appropriations at approximately the level requested by the President for FY2003, except that a 2-year advance appropriation of $395 million would be provided for the CPB. Overall, the Senate bill would provide $9.6 billion in discretionary appropriations, $0.3 billion more than the request and $0.4 billion more than the FY2002 amount. During the 107th Congress, the Senate Appropriations Committee reported a bill, S. 2766, S.Rept. 107-216, on July 22, 2002, to provide program level discretionary appropriations of $136.8 billion for L-HHS-ED programs in FY2003. The Senate did not vote on this bill. FY2003 Public Law Summary H.J.Res. 2, the Consolidated Appropriations Resolution, 2003, was signed into law by the President on February 20, 2003, as P.L. 108-7. The H.J.Res. 2 conference report, H.Rept. 108-10, was approved by the House (roll call no. 32, 338-83) and by the Senate (roll call no. 34, 76-20) on February 13, 2003. P.L. 108-7, Division G, is the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2003. Division N of P.L. 108-7 requires a reduction to be made to appropriations otherwise enacted for most discretionary programs. CRS-10 “Across-the-Board” Reductions. In an effort to meet the overall spending limitations requested by the President, the conference version of H.J.Res. 2 — like the Senate-passed version of the bill — requires a reduction to be made to most discretionary appropriations enacted elsewhere in the bill. The decrease applies to most FY2003 appropriations found in H.J.Res. 2, as well as to advance appropriations for FY2003 enacted in previous appropriations Acts. For eligible appropriations, the reduction is to be applied to “each discretionary account and each item of budget authority” and to each program, project, and activity within such accounts or items. FY2003 discretionary amounts from Defense and Military Construction Appropriations Acts are excluded, as are advance appropriations for FY2004 or later in P.L. 108-7 and certain other specified exemptions, such as appropriations in the bill for Head Start. As stated in P.L. 108-7, Division N, Title VI “Offsets,” Section 601 “AcrossThe-Board Rescissions,” the reduction is 0.65%. Although the exact percentage of the final cut is specified, the reduced dollar amount for any account or line item is not. On February 19, 2003, the OMB issued Bulletin No. 03-02, providing guidance to departments and agencies regarding the procedures to be used in implementing the reduction. Subject to OMB approval, agency determinations were to be completed by February 28, 2003. However, there is no automatic procedure for publication of the reduced funding amounts. Both Senate and conference data in this report are based on the unadjusted funding levels, enacted prior to the application of the reductions, as the exact reductions for each program are not yet known. Funding Highlights. Several L-HHS-ED programs receive FY2003 funding above the FY2002 level, including some above the President’s request; funding for a few programs is less than in FY2002. As shown previously in Table 2, the FY2003 bill includes $135.8 billion in discretionary funding, $7.7 billion (6.0%) more than the FY2002 amount of $128.1 billion. The FY2003 L-HHS-ED bill includes $21.5 billion in advance appropriations; the comparable FY2002 amount was $19.2 billion. Discretionary funding for HHS, ED, and the related agencies aggregate is increased for FY2003; the amount for DOL is slightly below the FY2002 funding level. Compared to FY2002 funding levels, FY2003 appropriations are increased or decreased by at least $100 million for the following programs; additional details and funding amounts are provided in the separate agency summaries. ! ! ! For DOL, WIA programs in aggregate are decreased, including Youth Training and Youth Opportunity Grants. Funding for Emergency Expenses for Workers Compensation Programs is eliminated. Unemployment Compensation is increased. For HHS, funding is increased for the NIH, Community Health Centers, Ryan White AIDS Programs, Program Management at Centers for Medicare and Medicaid Services (CMS), and Head Start. Funding is reduced for the Public Health and Social Services Emergency Fund (PHSSEF). Funding is eliminated for the LIHEAP Emergency Allocation. For ED, funding is increased for Title I Part A Grants to LEAs, Reading First State Grants, Teacher Quality State Grants, IDEA Special Education Part B Grants to States, and Pell Grants. CRS-11 ! For Related Agencies, funding is increased for the SSA Limitation on Administrative Expenses. Modification of Existing Programs and Activities. In addition to enacting appropriations, the FY2003 L-HHS-ED bill, as enacted, amends program authorities or otherwise modifies provisions governing for the use of appropriations. ! ! ! ! ! Section 103 prohibits the use of funds appropriated in the Act for the purchase of goods produced by forced or indentured child labor, as provided in Executive Order 13126 of June 12, 1999. Section 217 amends the Older Americans Act to transfer the Nutrition Services Incentives Program from the Department of Agriculture to HHS. Section 219 transfers $100 million available from the LIHEAP Emergency Allocation to the regular LIHEAP program, for allocation under the LIHEAP state grant formula. Section 514 prohibits the transfer of any funds enacted under this Act to any other governmental entity unless expressly allowed under this Act or any other appropriation act. P.L. 108-7, Division N, Title IV amends Temporary Assistance for Needy Families (TANF) and Medicare provisions, including an extension of TANF through June 30, 2003; a temporary increase of Medicare payments to rural and other hospitals; and an extension of federal payments for Medicare Part B through Medicaid for qualifying individuals through September 30, 2003. For additional information, see CRS Issue Brief IB93034, Welfare Reform: An Issue Overview. Earmarks for Specific Projects The earmarking of funds for specific projects in appropriations bills has become a topic 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 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 was appropriated. As shown in Table 2, the FY2002 L-HHS-ED appropriation was $411.8 billion in aggregate, and represented $127.6 billion for current year discretionary funds. These earmarks therefore represent 0.2% of the L-HHS-ED total — and 0.8% of the discretionary L-HHS-ED total — in FY2002. The President proposed the elimination of congressional earmarks in appropriations for each of the past 2 years, but the Congress has continued this practice. The President again proposed the abolition of earmarks in the FY2003 budget request. CRS-12 302(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. The House and the Senate considered budget resolutions for FY2003, H.Con.Res. 353 and S.Con.Res. 100, but they have not yet reached an agreement. For legislative details, see Related Legislation, page 44; 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 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 were announced by the appropriations committees during the 107th Congress, 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 final comparable FY2003 request comparable FY2003 House allocation FY2003 Senate allocation FY2003 enacted comparable $127.2 $131.9 $129.9 $134.1 $133.4 Source: The House FY2003 allocation is based on H.Rept. 107-567 (July 11, 2002); the Senate FY2003 allocation is based on the Senate Appropriations Committee press release of August 5, 2002. The comparable FY2002 appropriations, FY2003 budget request, and FY2003 enacted amounts are based on the H.Rept. 108-10 conference report (February 13, 2003); the conference amount does not include the reduction required elsewhere in the conference report (see page 10). 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. CRS-13 Advance Appropriations Advance appropriations occur when funding enacted in one fiscal year cannot be spent until a subsequent fiscal year (see CRS Report RS20441, Advance Appropriations, Forward Funding, and Advance Funding). For example, P.L. 107116, 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 34). The FY1999 and FY2000 annual L-HHS-ED appropriations bills provided significant increases in advance appropriations for discretionary programs. From FY2000 to FY2002, these amounts stabilized at approximately $19 billion, or about 15% of L-HHS-ED discretionary appropriations. For FY2002, the President’s budget proposed the elimination of advance appropriations for federal discretionary programs, including those for L-HHS-ED programs. The Congress rejected that proposal, and continued the funding of advance appropriations. For FY2003, the President’s request would slightly reduce advance appropriations for L-HHS-ED programs; H.R. 246 would maintain the FY2002 level; the Senate bill, as passed, would increase the amount to $23.0 billion; and the final bill increases advance appropriations to $21.5 billion. From FY1998 to the present, the annual amounts of advance appropriations in L-HHS-ED bills have been as follows: ! ! ! ! ! ! ! ! ! FY1998, $4.0 billion; FY1999, $8.9 billion; FY2000, $19.0 billion; FY2001, $18.8 billion; FY2002, $19.3 billion; FY2003, as requested by the President, $18.9 billion; FY2003, in H.R. 246, as introduced in the House, $19.3 billion; FY2003, in H.J.Res. 2, as passed by Senate, $23.0 billion; and FY2003, as enacted by P.L. 108-7, $21.5 billion. 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 CRS-14 large, omnibus reconciliation bills. Table 4 shows the trend in discretionary budget authority under the L-HHS-ED appropriations for FY1998 through FY2002. Total L-HHS-ED discretionary funds 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. Table 4. L-HHS-ED Discretionary Funding Trends from FY1998 (budget authority in billions of dollars) Type of funds FY1998 FY1999 FY2000 FY2001 FY2002 estimate a L-HHS-ED discretionary $81.1 $89.5 $87.1 $110.5 $124.6 L-HHS-ED discretionary in estimated FY2002 dollars $87.7 $95.5 $91.1 $112.9 $124.6 L-HHS-ED % of all federal discretionary funds b 15.3% 15.4% 14.9% 16.4% 17.4% L-HHS-ED % of total federal budget authority 4.8% 5.0% 4.8% 5.6% 6.0% Total federal discretionary $529.6 $581.9 $584.4 $671.9 $717.8 Total federal budget authority $1,692.3 $1,776.7 $1,825.0 $1,959.7 $2,085.0 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 do not include any supplemental appropriations and rescissions for L-HHS-ED and other bills that were enacted later in FY2002. b Discretionary funds include both defense and non-defense activities. Continuing Resolutions From October 1, 2002, until February 20, 2003, L-HHS-ED agencies operated under a series of eight continuing resolutions that, with certain exceptions, required FY2003 program funding to be conducted on a daily basis at a rate not to exceed the “current rate” under regular FY2002 funding levels and program authority. The resolutions prohibited the initiation of new programs and prevented funding increases in existing programs, even to respond to increases in the need for services or the numbers of eligible beneficiaries. Programs with high spend-out rates in the early CRS-15 part of the fiscal year were restricted from spending at a rate that would have impinged on the final FY2003 funding decisions.1 What were the implications of continuing resolutions for L-HHS-ED programs? Some agencies may have experienced complications in program operations and grants administration. For programs with high spend-out rates early in the fiscal year, for example, the Impact Aid program, lower rates may have been required until final funding was enacted. Discretionary grants programs may have had the entire grants process put on hold until regular funding became available. Programs for which large increases were anticipated in FY2003, such as those at NIH, delayed grants for new projects while a continuing resolution was in effect. For the large increases proposed for HHS bioterrorism research and development programs to support homeland security, funding was not available to support such efforts under a continuing resolution. Most education formula grants and some job training funds would not have been affected until July 1, 2003, or later, when the grants were first scheduled to be made available to the states; however, local budgets and staffing decisions may have been delayed until final grant amounts are specified. Earmarks for specific projects would not be funded during most continuing resolutions — as noted above, the FY2002 L-HHS-ED appropriations provided approximately $1.0 billion for 1,600 local recipients. For legislative details on FY2003 continuing resolutions, see Related Legislation, p. 44. Terrorism and Homeland Security Assistance One of the key issues of L-HHS-ED appropriations in the past year has been the 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. Some of these activities are to be transferred to the newly established Department of Homeland Security (DHS) under the Homeland Security Act of 2002, P.L. 107-296, enacted November 25, 2002. 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. For funding details for specific L-HHS-ED terrorism programs, see Appendix C: Terrorism Funding in the L-HHS-ED Bill, page 53. 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 1 The term “current rate” as used in a continuing resolution refers to the amount of money available for an activity during the previous fiscal year. This amount usually means the appropriations for the previous year with adjustments for any supplemental appropriations, rescissions, unobligated balances, and sometimes for advance appropriations provisions as well. One-time FY2002 funding for specific activities, including earmarks for specific projects, were subject to exclusion when calculating the current rate for FY2003, under October 4, 2002 OMB instructions to federal agencies. The OMB exclusions were added as §134 of P.L. 107-229 by P.L. 107-240, the third Continuing Resolution. In short, the current rate will not necessarily correspond to the FY2002 amounts stated in this report. CRS-16 DOL Dislocated Workers program, or the Low-Income Home Energy Assistance Program (LIHEAP) or the Social Services Block Grant (SSBG) programs administered by HHS 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. 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/] 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] CRS-17 Department of Labor The FY2003 budget proposal for discretionary appropriations at the Department of Labor (DOL) is $11.5 billion, $0.5 billion (4.2%) less than the FY2002 appropriations of $12.0 billion, as shown in Table 5. As introduced in the House, H.R. 246 would provide $11.7 billion; as passed by the Senate, H.J.Res. 2 would provide $11.8 billion; and the conference agreement provides $11.9 billion in discretionary appropriations. The stated FY2003 Senate and conference totals have not been reduced as required by other Senate and conference provisions (see page 10). Table 5. Department of Labor Discretionary Appropriations ($ in billions) Funding Appropriations FY2002 final FY2003 request FY2003 House FY2003 Senate FY2003 enacted $12.0 $11.5 $11.7 $11.8 $11.9 Source: Amounts are based on the FY2003 conference report (H.Rept. 108-10, February 13, 2003). The FY2003 amounts for the Senate and conference versions of the bill do not reflect subsequent cuts to most discretionary programs required elsewhere in those versions. Note: Supplementals are included for FY2002. Amounts shown represent discretionary programs funded by L-HHS-ED appropriations; appropriations for mandatory programs are excluded. 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 were 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 $445 million is requested for programs authorized by the Workforce Investment Act of 1998 (WIA), which was 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 $153 million less is requested for Other Federally Administered WIA programs, funded at $267 million in FY2002. Other Federally Administered programs CRS-18 ! ! include the Pilot and Demonstration programs ($130 million in FY2002), for which $35 million is requested; and Responsible Reintegration of Youthful Offenders ($55 million in FY2002), for which zero funding is requested. The WIA Migrant and Seasonal Farmworker program ($80 million in FY2002) would also be eliminated under the FY2003 request. Emergency Expenses for Workers Compensation Programs, which were provided $175 million under the P.L. 107-117 FY2002 Supplemental, would receive no funding under the FY2003 request. Unemployment Compensation would funded at $2.7 billion, $251 million more than the FY2002 amount of $2.4 billion. House Bill, as Introduced. As introduced, the House bill is similar to the President’s request with the exception that WIA programs would be funded at $5.1 billion, $102 million more than the FY2003 request but $343 million less than the FY2002 amount. Dislocated Workers State Grants would receive $1.2 billion, $102 million more than in FY2002, and funding for Migrant and Seasonal Farmworkers would be set at $75 million, $5 million less than the FY2002 amount. Senate Bill, as Passed. For DOL programs, the FY2003 Senate bill differs little from the President’s budget request with the exception of several of the federally administered WIA programs. In particular, two WIA programs, for which no funds are requested, would be continued at their FY2002 funding levels — Migrant and Seasonal Farmworkers ($80 million) and the Responsible Reintegration of Youthful Offenders ($55 million). Public Law. Under P.L. 108-7, as enacted, a change in funding from FY2002 to FY2003 of at least $100 million occurs for several DOL programs. ! ! ! WIA programs receive $5.2 billion in FY2003, $182 million more than the request but $263 million less than in FY2002. With regard to specific WIA programs, Youth Training receives $1.0 billion, the same as the request but $127 million less than in FY2002. Youth Opportunity Grants are funded at $45 million, the same as the request but $180 million less than in FY2002. Migrant and Seasonal Farmworkers receives $77 million and Responsible Reintegration of Youthful Offenders receives $55 million — both programs would have been eliminated under the request. Emergency Expenses for Workers Compensation Programs receive no funding for FY2003, the same as the request; the FY2002 amount was $175 million. Unemployment Compensation is funded at $2.7 billion, $17 million less than requested but $234 million more than in FY2002. CRS Products CRS Report RL31501, Child Labor in America: History, Policy, and Legislative Issues, by (name redacted). CRS Report 97-724, Ergonomics in the Workplace: Is it Time for an OSHA Standard?, by Edward Rappaport. CRS-19 CRS Report 97-536, Job Training Under the Workforce Investment Act: An Overview, by (name redacted). CRS Report RL31336, Older Americans Act: Programs and Funding, by Carol O’Shaughnessy. CRS Report RL31277, Temporary Programs to Extend Unemployment Compensation, by (name redacted). CRS Report RS21078, Trade Adjustment Assistance for Workers: Legislation in the 107th Congress, by (name redacted). CRS Report 95-742, Unemployment Benefits: Legislative Issues in the 107th Congress, by Celinda M. Franco. CRS Report RS20244, The Workforce Investment Act: Training Programs Under Title I at a Glance, by (name redacted). World Wide Web Sites Department of Labor [http://www.dol.gov] [http://www.dol.gov/_sec/budget2003/overview-toc.htm] [http://www.dol.gov/_sec/budget2003/tables.htm#budgetauth] [http://www.dol.gov/_sec/media/congress/2132002ec.htm] Detailed Appropriations Table Table 6 shows the appropriations details for offices and major programs of DOL. CRS-20 Table 6. Detailed Department of Labor Appropriations ($ in millions) Office or major program FY2002 final a FY2003 request Employment and Training Administration (ETA) Training and Employment Services (TES), Workforce 950 900 Investment Act (WIA) Adult Training Grants to States WIA Youth Training 1,128 1,001 WIA Dislocated Worker 1,371 1,443 Assistance b –Dislocated Worker Assistance, 1,129 1,106 State Grants (non-add) –Dislocated Worker Assistance, 242 337 Secretary’s Reserve (non-add) WIA Job Corps 1,459 1,532 WIA Migrant and Seasonal 80 0 Farmworkers WIA Youth Opportunity Grants 225 45 (YOG) WIA other federally administered 267 114 programs WIA subtotal in TES 5,480 5,035 TES, Other 5 1 Community Service Employment 445 440 for Older Americans Worker Compensation Programs 175 0 Emergency Expenses Federal Unemployment Benefits and Allowances, Trade 416 871 Adjustment and NAFTA Activities (mandatory) State Unemployment Insurance and Employment Service 2,417 2,668 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 3,404 3,627 Advances to Unemployment Trust 464 463 Fund and other funds (mandatory) ETA Program Administration 161 171 ETA subtotal 10,550 10,608 Pension and Welfare Benefits 111 117 Administration FY2003 House FY2003 Senate FY2003 enacted 900 900 900 1,045 1,001 1,001 1,485 1,383 1,464 1,208 1,106 1,157 277 277 307 1,519 1,519 1,519 75 80 77 0 45 45 113 192 211 5,137 1 5,120 1 5,217 1 440 440 445 0 0 0 972 972 972 2,651 2,651 2,651 847 847 847 100 100 100 20 3,618 20 3,618 20 3,618 463 463 463 172 10,803 178 10,792 176 10,892 117 117 117 CRS-21 Office or major program FY2002 final a Pension Benefit Guaranty Corporation (PBGC) 12 Administration PBGC program level (non-add) 190 Employment Standards Administration (ESA) ESA Salaries and Expenses 370 ESA Special Benefits 121 (mandatory) ESA Energy Employees Occupational Illness Fund 131 (mandatory) ESA Black Lung Disability Trust 1,036 Fund (mandatory) ESA subtotal 1,658 Occupational Safety and Health 443 Administration (OSHA) Mine Safety and Health 253 Administration (MSHA) Bureau of Labor Statistics 474 Office of Disability Employment 38 Policy Departmental Management, 148 International Labor Affairs Departmental Management, Veterans Employment and 213 Training Departmental Management, Other 293 Departmental Management 654 subtotal TOTALS, DEPARTMENT OF LABOR Total appropriations c 14,192 Current year: FY2003 Advance year: FY2003 FY2003 request FY2003 House FY2003 Senate FY2003 enacted 13 13 13 13 193 193 193 193 294 381 385 384 163 163 163 163 105 105 105 105 1,035 1,035 1,035 1,035 1,597 1,684 1,688 1,687 437 444 462 453 254 254 272 275 498 498 497 495 47 43 47 47 55 55 148 148 210 210 218 214 326 302 311 305 591 567 677 667 14,163 14,425 14,566 14,647 11,729 11,699 11,962 12,103 12,184 2,463 2,463 2,463 2,463 2,463 Source: Amounts are based on the FY2003 conference report H.Rept. 108-10, February 13, 2003; Senate and conference data do not reflect cuts required for most discretionary funds (see page 10). a The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206. The actual FY2002 appropriation for Dislocated Worker Assistance was $1,549 million and not $1,371 million; the difference is a rescission from FY2001 appropriations that was enacted through P.L. 107-20, but implemented in FY2002; the rescission was $177.5 million, which consisted of $110.0 million for State Grants and $67.5 million for the Secretary’s Reserve. c Appropriations totals include discretionary and mandatory funds, and may be subject to additional scorekeeping and other adjustments. b CRS-22 Department of Health and Human Services The FY2003 budget proposal for discretionary appropriations at the Department of Health and Human Services (HHS) is $59.5 billion, $2.6 billion (4.6%) more than the FY2002 appropriations of $56.9 billion, as shown in Table 7. As introduced in the House, H.R. 246 would provide $59.5 billion; as passed by the Senate, H.J.Res. 2 would provide $60.9 billion; and the conference agreement provides $60.7 billion in discretionary appropriations. The stated FY2003 Senate and conference totals have not been reduced as required by other Senate and conference provisions (see page 10). Table 7. Department of Health and Human Services Discretionary Appropriations ($ in billions) Funding Appropriations FY2002 final FY2003 request FY2003 House FY2003 Senate FY2003 enacted $56.9 $59.5 $59.5 $60.9 $60.7 Source: Amounts are based on the FY2003 conference report (H.Rept. 108-10, February 13, 2003). The FY2003 amounts for the Senate and conference versions of the bill do not reflect subsequent cuts to most discretionary programs required elsewhere in those versions. Note: Supplementals are included for FY2002. Amounts shown represent discretionary programs funded by L-HHS-ED appropriations; appropriations for mandatory programs are excluded. Mandatory HHS 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 HHS would focus 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 $3.8 billion is requested for the National Institutes of Health (NIH), which was funded at $23.4 billion in FY2002, 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 entire 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 CRS-23 ! ! ! ! ! ! ! ! ! $27.2 billion in FY2003 (Archived CRS Issue Brief IB10100, Federal Research and Development Funding: Fiscal Year 2003). An additional $115 million is proposed for Community Health Centers, which was funded at $1.3 billion in FY2002; however, the $120 million Community Access Program, which provides the uninsured with safety-net access to health care, would be eliminated. A decrease of $278 million is requested for the Health Professions program, funded at $388 million in FY2002. The Health Care and Other Facilities program, 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 $390 million is requested for the Centers for Disease Control and Prevention (CDC); $4.4 billion was 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 was appropriated for FY2002. The LIHEAP Emergency Allocation of $300 million would be level funded. An additional $131 million is requested for Head Start, 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 was provided for FY2002. The Public Health and Social Services Emergency Fund (PHSSEF) would be reduced by $366 million; this account was funded at $2.7 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 HHS accounts into a single fund for health facilities construction. House Bill, as Introduced. For HHS programs, the FY2003 House bill differs in several respects from the President’s budget request. ! ! ! ! ! The NIH would receive $0.7 billion less than requested, but $3.1 billion more than in FY2002. Health Professions would receive $283 million more than requested, and $5 million more than the FY2002 amount. The Community Access program would be maintained at $120 million; the request was for termination of funding. The CDC would receive $315 million more than the requested amount, but $75 million less than in FY2002. LIHEAP would receive $300 million more than the request but the same amount as in FY2002. However, the $300 million LIHEAP CRS-24 ! ! ! Emergency Allocation would be eliminated; the request would maintain the FY2002 funding level. Discretionary funding for Promoting Safe and Stable Families would receive $130 million less than requested, but the same as in FY2002. The PHSSEF would receive $212 million more than requested but $154 million less than the FY2002 amount. The House bill would not accept the $184 million requested for the Health Facilities Construction Consolidation proposal. Senate Bill, as Passed. For HHS programs, the FY2003 Senate bill differs in several respects from the President’s budget request. ! ! ! ! ! ! Health Professions would receive $314 million more than the FY2003 request, and $36 million more than the FY2002 amount of $388 million. Ryan White AIDS Programs would receive $140 million more than the request and $141 million more than the FY2002 amount of $1.9 billion. The Community Access Program would receive $120 million, the same as in FY2002; no funds are requested. The CDC would receive $344 million more than the request, but $46 million less than the FY2002 level of $4.4 billion. LIHEAP would receive $300 million more than the request, the same as the FY2002 amount of $1.7 billion. The LIHEAP Emergency Allocation would be eliminated; the request is for $300 million, the same as the FY2002 amount. The Senate bill would not provide any funds for the $184 million Health Facilities Construction Consolidation proposed in the FY2003 budget. Public Law. Under P.L. 108-7, as enacted, a change in funding from FY2002 to FY2003 of at least $100 million occurs for several HHS programs. ! ! ! ! ! ! The NIH receives $27.2 billion for FY2003, the same as the FY2003 request but $3.8 billion more than in FY2002. For Community Health Centers, $1.5 billion is provided, $57 million more than requested and $172 million more than in FY2002. Ryan White AIDS Programs are provided $2.0 billion, $120 million more than requested and $121 million more than in FY2002. For the Centers for Medicare and Medicaid Services (CMS) Program Management, $2.9 billion is provided, $74 million more than requested and $155 million more than the FY2002 amount. Funding for the LIHEAP Emergency Allocation is eliminated; the request was for $300 million, the same as the FY2002 amount. The regular LIHEAP program would be funded at $1.7 billion, the same as in FY2002 but $300 million more than the request. Head Start receives $6.7 billion, the same as requested but $131 million more than in FY2002. CRS-25 ! The Public Health and Social Services Emergency Fund (PHSSEF) is funded at $2.2 billion, $48 million less than requested and $414 million less than in FY2002. Bioterrorism Preparedness. The President’s FY2003 budget request proposes $4.3 billion for HHS 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 53, 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, HHS received $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, included $243 million for anti-bioterrorism activities, and the FY2002 Anti-Terrorism Supplemental, P.L. 107-117, provided an additional $2.8 billion as part of the $20 billion anti-terrorism emergency spending package. P.L. 107-117 allocated 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 HHS Food and Drug Administration (FDA) — regularly funded under the Agriculture Appropriations Act — received $151 million for FDA lab security, vaccine approval, and food safety. Abortion: 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, but given the perennial volatility of this issue, these provisions may be revisited at any time during consideration of L-HHSED 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. Annual appropriations acts since FY1999 have repeated without change the FY1999 funding restrictions. Current provisions can be found in §508 and §509 of CRS-26 the FY2003 L-HHS-ED Appropriations Act, P.L. 108-7. 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.” Although NIH developed a registry which listed 78 cell lines eligible for use in federally funded research, subsequently many of the lines were found to be unavailable or unsuitable for research. The NIH registry currently lists only 9 cell lines available for general research purposes. 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. 10499 (§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. Since FY1997, 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 L-HHS-ED appropriations. The current provision can be found in §510 of the FY2003 L-HHS-ED appropriations, P.L. 108-7. For additional information, see CRS Report RL31015, Stem Cell Research and CRS Report RL31358, Human Cloning. CRS Products CRS Issue Brief IB95095, Abortion: Legislative Response, by Karen J. Lewis, et. al. CRS Report RL30731, AIDS Funding for Federal Government Programs: FY1981FY2003, by (name redacted). CRS Report 98-476, AIDS: Ryan White CARE Act, by (name redacted) and (name redacted). 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 (name redacted) , Coordinator. CRS Report RL30785, The Child Care and Development Block Grant: Background and Funding, by Alice Butler and (name redacted). CRS Report RL30944, Child Care Issues in the 107th Congress, by (name redacted). CRS Report RL30894, Child Welfare: The Promoting Safe and Stable Families Program, by (name redacted) and (name redacted). CRS Report RS20124, Community Services Block Grants: Background and Funding, by (name redacted) and M. Ann Wolfe. CRS Report RS21160, The Developmental Disabilities Act: Programs and Funding, by Sidath V. Panangala. CRS Report 97-757, Federal Health Centers Program, by Sharon Kearney Coleman. CRS Issue Brief IB10100, Federal Research and Development Funding: Fiscal Year 2003, coordinated by John Dimitri Moteff (Archived). CRS Report RL30952, Head Start: Background and Funding, by Alice Butler and (name redacted). CRS Report RL31358, Human Cloning, by (name redacted). CRS-27 CRS Report RL31865, The Low-Income Home Energy Assistance Program (LIHEAP): Program and Funding Issues , by (name redacted). CRS Report 97-350, Maternal and Child Health Block Grant, by Sharon Kearney Coleman. 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 (name redacted), 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 Report RL31263, Public Health Security and Bioterrorism Preparedness and Response Act (P.L. 107-188): Provisions and Changes to Preexisting Law, by (name redacted) et al. CRS Report RS20873, Reducing Teen Pregnancy: Adolescent Family Life and Abstinence Education Programs, by (name redacted). CRS Report 94-953, Social Services Block Grants (Title XX of the Social Security Act), by (name redacted). CRS Report RL31015, Stem Cell Research, by (name redacted). CRS Report 97-1048, The Title X Family Planning Program, by Sharon Kearney Coleman.January 4, 2005 CRS Issue Brief IB93034, Welfare Reform: An Issue Overview, by (name redacted). World Wide Web Sites 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 HHS. CRS-28 Table 8. Detailed Department of Health and Human Services Appropriations ($ in millions) Office or major program FY2002 final a FY2003 request Public Health Service (PHS) Health Resources and Services Administration (HRSA), 1,343 1,458 Community Health Centers HRSA National Health Service 145 189 Corps HRSA Health Professions 388 110 HRSA Maternal and Child Health 731 732 Block Grant HRSA Abstinence Education 10 73 HRSA Ryan White AIDS 1,910 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 858 634 HRSA subtotal 6,164 5,458 Centers for Disease Control and 4,364 3,974 Prevention (CDC) b National Institutes of Health 23,374 27,170 (NIH) c 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 976 975 SAMHSA subtotal 3,134 3,193 Agency for Healthcare Research 3 0 and Quality (AHRQ) AHRQ program level (non-add) 299 250 PHS subtotal 37,039 39,795 Centers for Medicare and Medicaid Services (CMS) Medicaid Grants to States 153,721 163,951 (mandatory) Payments to Medicare Trust 81,979 81,463 Funds (mandatory) CMS Program Management 2,427 2,508 CMS subtotal 238,127 247,922 FY2003 House FY2003 Senate FY2003 enacted 1,458 1,534 1,515 155 189 172 393 424 424 727 742 735 60 40 55 1,930 2,051 2,031 265 285 275 0 0 298 120 120 120 86 86 86 784 5,978 877 6,348 854 6,565 4,289 4,318 4,297 26,481 27,160 27,160 438 433 440 1,745 1,723 1,703 985 3,168 974 3,130 1,015 3,158 3 309 0 299 39,919 309 41,265 304 41,180 163,951 163,951 163,951 81,463 81,463 81,463 2,550 247,964 2,560 247,974 2,582 247,996 CRS-29 Office or major program FY2002 final a FY2003 request FY2003 House FY2003 Senate Administration for Children and Families (ACF) Family Support Payments to 4,096 4,037 4,037 4,037 States (mandatory) Low Income Home Energy 1,700 1,400 1,700 1,700 Assistance Program (LIHEAP) LIHEAP Emergency Allocation 300 300 0 0 Refugee and Entrant Assistance 460 453 447 443 Child Care and Development 2,100 2,100 2,100 2,100 Block Grant (CCDBG) Social Services Block Grant 1,700 1,700 1,700 1,700 (Title XX) (mandatory) Head Start 6,537 6,668 6,668 6,668 Child Welfare Services 292 292 292 292 Developmental Disabilities 140 141 141 147 Community Services Block Grant 650 570 570 650 Violent Crime Reduction 142 142 142 149 Other Children and Family 665 780 654 743 Services Programs Rescission of mandatory funds -21 0 0 0 Promoting Safe and Stable 305 305 305 305 Families (PSSF) (mandatory) PSSF (discretionary) 70 200 70 200 Foster Care and Adoption 6,640 6,601 6,601 6,601 Assistance (mandatory) ACF subtotal 25,776 25,688 25,426 25,734 Administration on Aging (AOA) 1,347 1,341 1,356 1,369 Office of the Secretary, Public 2,661 2,295 2,507 2,256 Health and Social Service Fund Retirement Pay and Medical Benefits, Commissioned Officers 262 251 251 251 (mandatory) Health Facilities Construction 0 184 0 0 Consolidation Proposal Office of the Secretary, Other 443 461 432 450 TOTALS, DEPARTMENT OF HEALTH AND HUMAN SERVICES Total appropriations d 305,656 317,938 317,856 319,199 FY2003 enacted 4,037 1,700 0 447 2,100 1,700 6,668 292 146 650 145 742 0 305 100 6,601 25,632 1,376 2,247 251 0 440 319,122 Current year: FY2002 254,799 261,831 261,749 263,192 263,016 Advance year: FY2003 50,856 56,107 56,107 56,107 56,107 Source: Amounts are based on the FY2003 conference report H.Rept. 108-10, February 13, 2003; Senate and conference data do not reflect cuts required for most discretionary funds (see page 10). a The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206. 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. b CRS-30 Department of Education The FY2003 budget proposal for discretionary appropriations at the Department of Education (ED) is $50.3 billion, $0.4 billion (0.8%) more than the FY2002 appropriations of $49.9 billion, as shown in Table 9. As introduced in the House, H.R. 246 would provide $50.3 billion; as passed by the Senate, H.J.Res. 2 would provide $58.2 billion; and the conference agreement provides $53.4 billion in discretionary appropriations. The stated FY2003 Senate and conference totals have not been reduced as required by other Senate and conference provisions (see page 10). Table 9. Department of Education Discretionary Appropriations ($ in billions) Funding Appropriations FY2002 final FY2003 request FY2003 House FY2003 Senate FY2003 enacted $49.9 $50.3 $50.3 $58.2 $53.4 Source: Amounts are based on the FY2003 conference report (H.Rept. 108-10, February 13, 2003). The FY2003 amounts for the Senate and conference versions of the bill do not reflect subsequent cuts to most discretionary programs required elsewhere in those versions. Note: Supplementals are included for FY2002. Amounts shown represent discretionary programs funded by L-HHS-ED appropriations; appropriations for mandatory programs are excluded. A single mandatory ED program is included in the L-HHS-ED bill; the Vocational Rehabilitation State Grants program was 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 authorized under the Elementary and Secondary Education Act of 1965 (ESEA), which was funded at $10.4 billion in FY2002. An additional $100 million is requested for Reading First programs, 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. CRS-31 ! 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 $795 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. ! ! ! ! An decrease of $0.5 billion is requested for the Pell Grant program that provides aid to low- and middle-income undergraduate students; the FY2002 funding level of $11.3 billion includes $1.0 billion supplemental from P.L. 107-206 that was enacted after the request was made. The requested maximum award would be kept at the FY2002 level of $4,000. The President’s FY2003 budget included a separate request for an FY2002 supplemental appropriation of $1.3 billion for Pell Grants. Under the request, these funds would be offset by the cancellation of an equal amount of FY2002 appropriations for programs or projects that were not included in the President’s FY2002 request. Rural Education funding would be eliminated; the FY2002 amount was $163 million. The Fund for the Improvement of Education (FIE) would be reduced by $749 million; $833 million was provided in FY2002. The Fund for the Improvement of Postsecondary Education (FIPSE) would be decreased by $142 million; the program was funded at $181 million in FY2002. House Bill, as Introduced. For ED programs, the FY2003 House bill differs in several respects from the President’s budget request. ! ! ! ! ! ! ! ESEA Title I Part A Grants would receive $500 million less than requested, but $500 million more than in FY2002. Teacher Quality would receive $100 million more than the request and the FY2002 amount. Rural Education would be level funded at $163 million; no funds were requested. The FIE would receive $227 million more than requested but $522 million less than the FY2002 amount. IDEA Part B Grants to States would receive $500 million less than requested but $500 million more than the FY2002 amount. Pell Grants would receive $337 million more than the request but $114 million less than the FY2002 amount of $11.3 billion (which includes the $1.0 billion supplemental enacted through P.L. 107206, August 2, 2002). The House bill would reject the President’s request to fund mandatory student loan administrative activities on a discretionary basis. CRS-32 Senate Bill, as Passed. For ED programs, the FY2003 Senate bill differs in several respects from the President’s budget request. ! ! ! ! ! ! ! The Senate proposes $5.0 billion for Innovative Education Programs that would provide grants to States and LEAs under ESEA Title I Part A, with funds available for any purpose specified by the ESEA, the IDEA, or the Higher Education Act of 1965 (HEA); no funds are requested for this activity. No funds would be provided for Charter School Facilities, and none were provided in FY2002; $100 million is requested. Rural Education would receive $12 million more than the FY2002 amount of $163 million; no funds are requested. FIE programs would receive $652 million more than the request but $97 million less than the FY2002 amount of $833 million. IDEA programs would receive $1.5 billion more than requested and $2.5 billion more than in FY2002. Pell Grants would be funded at $317 million more than the request but $134 million less than the FY2002 amount of $11.3 billion (which includes the $1.0 billion supplemental enacted through P.L. 107-206, August 2, 2002); the Senate bill would increase the maximum award to $4,100, which is $100 more than the requested award and the FY2002 maximum award of $4,000. The Senate bill would reject the President’s proposal to fund mandatory student loan administrative activities on a discretionary basis. Public Law. Under P.L. 108-7, as enacted, a change in funding from FY2002 to FY2003 of at least $100 million occurs for several ED programs. ! ! ! ! ! ! For Title I Part A Grants to LEAs, $11.8 billion is provided for FY2003, $400 million more than requested and $1.4 billion more than in FY2002. For Reading First State Grants, $1.0 billion is provided, the same as the request and $100 million more than in FY2002. For Teacher Quality State Grants, $3.0 billion is provided, $100 million more than requested and in FY2002. For IDEA Special Education Part B Grants to States, $8.9 billion is provided, $400 million more than requested and $1.4 billion more than in FY2002. For Pell Grants, $11.4 billion is provided, $576 million more than requested and $125 million more than in FY2002. The Pell Grant maximum award is increased $50, to $4,050; the request was for a maximum award of $4,000, the same as in FY2002. The conference agreement rejects the President’s proposal to fund mandatory student loan administrative activities on a discretionary basis. Pell Grants. The funding level for Pell Grants has been a continuing issue. The program provides assistance to undergraduate students based on financial need. Aggregate program costs depend largely on the maximum award and the number of CRS-33 student recipients. The maximum award is currently set when appropriations are enacted, usually well before the start of the program year. The number of student awards, however, cannot be determined until the final award is claimed; this final accounting takes place after most decisions have been made on the following year’s appropriations. Funding shortfalls for Pell Grants are not new; the Senate Appropriations Committee states that shortfalls have occurred in 6 of the past 12 years (S.Rept. 107-156, p. 75, May 29, 2002). Appropriations for Pell Grants make funds available for 2 full fiscal years to provide administrative flexibility regarding potential shortfalls and surpluses. Under this provision, a shortfall in one fiscal year can be reimbursed with funds obtained from the following fiscal year; similarly, a surplus can be carried forward and used in the following year. Currently, some FY2002 funds are needed to make up a projected FY2001 shortfall, for which a final accounting should occur sometime in FY2003. FY2002 funds used for the FY2001 shortfall will not be available to make awards for the 2002-2003 academic year. As the Congress considered the amount needed for FY2003 appropriations for Pell Grants, it had to consider not only the projected size and number of awards for the 2003-4004 academic year, but also the sufficiency of FY2002 appropriations needed for the 2002-2003 academic year and the estimated FY2001 shortfall as well. For FY2003, the President requests $10.9 billion for Pell Grants, with a $4,000 maximum award. As introduced, the House bill would provide $11.2 billion, with a maximum award of $4,000; as passed, the FY2003 Senate bill would provide $11.2 billion, with a $4,100 maximum award. The FY2003 conference agreement provides $11.4 billion (prior to the reduction, see page 10), with a maximum award of $4,050. The President requested an FY2002 supplemental appropriation of $1.3 billion for Pell Grants (for details, see Budget of the United States Government Appendix, Fiscal Year 2003, pages 1195-1197). An FY2002 supplemental of $1.0 billion was enacted as part of P.L. 107-206, which brought the FY2002 appropriations total to $11.3 billion. The FY2002 maximum award was $4,000. An ED Budget Service table of March 4, 2003, shows a projected FY2003 shortfall of $1.9 billion under the President’s FY2003 proposal and $1.5 billion under the FY2003 conference agreement. These ED estimates include the use of $1.2 billion from FY2003 appropriations to fund a projected FY2002 shortfall. Cost estimates for FY2003 and FY2002, and possibly FY2001, are subject to change. For additional information, see CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act: Background and Reauthorization. Student Aid Program Administration. The President’s FY2003 budget proposes the consolidation of the administration of federal student aid programs into a new unified discretionary account. If enacted, 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 CRS-34 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 was $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 have been 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, many of the elementary and secondary education formula grant programs receive appropriations that become available for obligation to the states on July 1 of the same year as the appropriations, and remain available through the end of the following fiscal year. That is, FY2003 appropriations for some programs became available for obligation to the states on July 1, 2003, and will remain available for a 15-month period until September 30, 2004. 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 for undergraduates, however, aggregate program costs for individual students applying for postsecondary educational assistance cannot be known with certainty ahead of time. Appropriations CRS-35 from one fiscal year primarily support Pell Grants during the following academic year, that is, the FY2003 appropriations will be used primarily to support the 20032004 academic year. Unlike forward funded programs, however, the funds for Pell Grants 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 FY2003 appropriations, funds normally would have become available October 1, 2002, under regular funding provisions, but did not become available until July 1, 2003, under the forward funding provisions discussed above. However, if the July 1, 2003 forward funding date were to be postponed for obligation by 3 months — until October 1, 2003 — the appropriation would be classified as an “advance appropriation” since the funds would become available only in a subsequent fiscal year, FY2004. For example, the FY2003 conference report includes an appropriation of $11.8 billion (prior to the reduction, see page 10) for Title I Part A Grants to LEAs for the Education of the Disadvantaged. This amount includes not only forward funding of $2.9 billion (available July 1, 2003), but also an advance appropriation of $8.8 billion (available October 1, 2003). Like forward funding, advance appropriations are accomplished through provisions in the annual appropriations bill. 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 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. CRS Products CRS Report RL31487, Education for the Disadvantaged: Overview of ESEA Title I-A Amendments Under the No Child Left Behind Act, 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 (name redacted). CRS Report RL31353, Educational Research, Statistics, and Evaluation: Legislation in the 107th Congress, by (name redacted). CRS Report RL30448, Even Start Family Literacy Programs: Background and Reauthorization Issues, by (name redacted) and Wayne Riddle. CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act: Background and Reauthorization, by James B. Stedman. CRS-36 CRS Report RL31128, Funding for Public Charter School Facilities: Federal Policy Under ESEA, by (name redacted). 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 (name redacted). CRS Report 97-433, Individuals with Disabilities Education Act: Full Funding of State Formula, by (name redacted). CRS Report RS20366, Individuals with Disabilities Education Act (IDEA): Overview of Major Provisions, by Richard Apling and (name redacted). CRS Report RL31460, Individuals with Disabilities Education Act (IDEA): State Grant Formulas, by (name redacted). 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 (name redacted). CRS Report RL31647, Reauthorization of Title III and Title V of the Higher Education Act: Issues for the 108th Congress, by Charmaine Jackson. CRS Report RL31378, Rehabilitation Act: Programs and Funding, by Sidath V. Panangala. CRS Report RS20375, Rural Education: Legislative Initiatives, by James B. Stedman and (name redacted). CRS Report RS20532, The Safe and Drug-Free Schools and Communities Act: Reauthorization and Appropriations, by (name redacted). CRS Issue Brief IB98035, School Choice: Current Legislation, by (name redacted). CRS Report RS20171, School Facilities Infrastructure: Background and Legislative Proposals, by (name redacted). CRS Report RL31240, 21st Century Community Learning Centers in P.L. 107-110: Background and Funding, by (name redacted). World Wide Web Sites 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] Detailed Appropriations Table Table 10 shows the appropriations details for offices and major programs of ED. CRS-37 Table 10. Detailed Department of Education Appropriations ($ in millions) Office or major program FY2002 final a FY2003 request b FY2003 House Office of Elementary and Secondary Education (OESE) Total Elementary and Secondary 21,960 22,002 22,157 Education Act (non-add) Title I Part A Education for the 10,350 11,350 10,850 Disadvantaged, Grants to LEAs Title I Part A Innovative 0 0 0 Education Programs Even Start 250 200 250 Reading First State Grants 900 1,000 1,000 Education for the Disadvantaged, 847 835 837 Other Impact Aid 1,144 1,141 1,185 School Improvement (SI), 2,850 2,850 2,950 Teacher Quality State Grants SI Innovative Education Block 385 385 385 Grant SI Educational Technology 785 723 723 st SI 21 Century Community 1,000 1,000 1,000 Learning Centers SI Safe and Drug-Free Schools 654 644 644 SI Magnet Schools 110 110 110 SI Charter Schools 200 200 200 SI Charter Schools Facilities 0 100 50 SI State Assessments 387 387 387 SI Rural Education 163 0 163 SI Fund for the Improvement of 833 84 311 Education (FIE) School Improvement, other 470 301 425 Indian Education 120 122 122 English Language Acquisition and Enhancement (Bilingual and 665 665 665 Immigrant Education) Office of Special Education and Rehabilitative Services (OSERS) IDEA Special Education, Part B, 7,529 8,529 8,029 Grants to States IDEA Special Education, other 1,144 1,159 1,159 Vocational Rehabilitation State 2,481 2,533 2,533 Grants (mandatory) Rehabilitation Services, other 464 468 423 Special Institutions for Persons 166 160 164 With Disabilities Office of Vocational and Adult Education (OVAE) Perkins Vocational Education 1,321 1,307 1,329 Adult Education 591 591 591 Incarcerated Youth Offenders 22 0 0 FY2003 Senate FY2003 enacted 27,796 23,755 11,350 11,750 5,000 0 200 1,000 250 1,000 628 853 1,177 1,196 2,850 2,950 385 385 787 786 1,000 1,000 644 110 200 0 387 175 628 110 200 25 387 169 736 815 514 122 598 122 690 690 10,029 8,929 1,162 1,167 2,533 2,533 426 423 169 168 1,322 591 25 1,342 591 24 CRS-38 Office or major program FY2002 final a FY2003 request b FY2003 House Office of Student Financial Assistance Programs (OSFAP) Pell Grants, maximum award (in 4,000 4,000 4,000 dollars, non-add) 11,314 10,863 11,200 Pell Grants a, b Supplemental Educational 725 725 725 Opportunity Grants Federal Work-Study 1,011 1,011 1,011 Federal Perkins Loans, Capital 100 100 100 Contributions Federal Perkins Loans, Loan 68 68 68 Cancellations Leveraging Educational 67 0 67 Assistance Partnership (LEAP) Loan Forgiveness for Child Care 1 1 1 Federal Family Education Loans, 49 0 0 Administration Office of Postsecondary Education (OPE) Aid for Institutional Development 439 454 454 Fund for the Improvement of 181 39 39 Postsecondary Education (FIPSE) Federal TRIO Programs 803 803 810 GEAR UP 285 285 285 Higher Education, other 323 302 316 Howard University 237 237 240 College Housing and Academic 1 1 1 Facilities Loans, Administration Office of Educational Research and Improvement (OERI) Research and Statistics 386 433 398 Multi-year Grants 58 0 0 Departmental Management 537 539 539 Student Aid Administration Costs 0 932 105 Student Aid Reclassification 0 -795 0 Proposal TOTALS, DEPARTMENT OF EDUCATION 52,843 52,843 Total Appropriations a, b, c 52,417 FY2003 Senate FY2003 enacted 4,100 4,050 11,180 11,439 725 765 1,011 1,011 100 100 68 68 67 67 1 1 0 0 475 475 127 173 833 295 318 240 833 295 325 240 1 1 339 58 539 105 393 58 540 105 0 0 60,696 55,979 Current year: FY2003 37,406 37,832 37,832 41,940 38,724 Advance year: FY2004 15,011 15,011 15,011 18,755 17,255 Source: Amounts are based on the FY2003 conference report H.Rept. 108-10, February 13, 2003; Senate and conference data do not reflect cuts required for most discretionary funds (see page 10). a The FY2002 amounts are based on P.L. 107-116, P.L. 107-117, and P.L. 107-206, which includes an FY2002 supplemental appropriations of $1.0 billion for Pell Grants that is included in the table. b The FY2003 budget of February 4, 2002, included an FY2002 supplemental request of $1,276 million for Pell Grants, which 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-39 Related Agencies The FY2003 budget proposal for discretionary appropriations for L-HHS-ED Related Agencies is $9.3 billion, $0.1 billion (1.1%) more than the FY2002 appropriations of $9.2 billion, as shown in Table 11. As introduced in the House, H.R. 246 would provide $9.6 billion; as passed by the Senate, H.J.Res. 2 would provide $9.6 billion; and the conference agreement provides $9.7 billion in discretionary appropriations. The stated FY2003 Senate and conference totals have not been reduced as required by other Senate and conference provisions (see page 10). Table 11. Related Agencies Discretionary Appropriations ($ in billions) Funding Appropriations FY2002 final $9.2 FY2003 request FY2003 House FY2003 Senate FY2003 enacted $9.3 $9.6 $9.6 $9.7 Source: Amounts are based on the FY2003 conference report (H.Rept. 108-10, February 13, 2003). The FY2003 amounts for the Senate and conference versions of the bill do not reflect subsequent cuts to most discretionary programs required elsewhere in those versions. Note: Supplementals are included for FY2002. Amounts shown represent discretionary programs funded by L-HHS-ED appropriations; appropriations for mandatory programs are excluded. Mandatory programs for related agencies included in the FY2002 L-HHS-ED bill were 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 several programs. ! ! The Corporation for Public Broadcasting (CPB) would have its 2year advance appropriation for FY2005 eliminated; it will receive $380 million for FY2004 which was enacted by the FY2002 L-HHS-ED bill, and has received $365 million for FY2003 enacted by the FY2001 bill. An additional $351 million is proposed for the SSA Limitation on Administrative Expenses, which was funded at $4.6 billion in FY2002. An 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 was $328 million. CRS-40 House Bill, as Introduced. For the related agencies included in the L-HHSED bill, the House bill differs from the President’s budget request by providing an advance appropriation for CPB of $380 million for FY2005; the CPB would not receive FY2005 funding under the request. In addition, the CNCS would receive $46 million less than requested under the House bill, including $50 million less than requested for Special Volunteer Programs. Senate Bill, as Passed. For related agencies, the FY2003 Senate bill differs from the President’s budget request by at least $100 million for one program. The CPB would receive a 2-year advance appropriation of $395 million for FY2005; funding for FY2005 would not be provided under the FY2003 request. Public Law. Under P.L. 108-7, as enacted, a change in funding from FY2002 to FY2003 of at least $100 million occurs for one of the related agency programs. The SSA Limitation on Administrative Expenses is funded at $5.0 billion, the same as the request and $351 million more than in FY2002. CRS Products CRS Report RS20287, Arts and Humanities: Background on Funding, by (name redacted). CRS Report RL30186, Community Service: A Description of AmeriCorps, Foster Grandparents, and Other Federally Funded Programs, by (name redacted) and Alice D. Butler. CRS Report RL31320, Federal Aid to Libraries: The Library Services and Technology Act, by (name redacted). CRS Report RS21246, National and Community Service: Reauthorization of the National and Community Service Act of 1990 and the Domestic Volunteer Service Act of 1973, by (name redacted). 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 RS20165, Social Security and Medicare “Lock Box,” by David Stuart Koitz et al. CRS Report 98-422, Social Security and the Federal Budget: What Does Social Security’s Being “Off Budget” Mean?, by David Stuart Koitz. CRS Issue Brief IB98048, Social Security Reform, by Geoffrey Kollmann and (nam e redacted). CRS Report 94-486, Supplemental Security Income (SSI): A Fact Sheet, by (name redacted). CRS Report RS20419, VISTA and the Senior Volunteer Service Corps: Description and Funding Levels, by (name redacted). 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. CRS-41 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] 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/] National Education Goals Panel [http://www.negp.gov/] National Labor Relations Board [http://www.nlrb.gov] Railroad Retirement Board [http://www.rrb.gov] 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-42 Table 12. Detailed Related Agencies Appropriations ($ in millions) Office or major program Armed Services Retirement Home FY2002 final a 71 FY2003 request 67 Corporation for National and Community Service (CNCS) Volunteers in Service to America (VISTA) FY2003 House FY2003 Senate FY2003 enacted 67 67 68 b 85 94 94 94 94 5 55 5 10 10 206 213 217 213 217 32 34 34 34 35 328 396 350 351 356 Corporation for Public Broadcasting (CPB), 2-Year Advance 380 0 380 395 390 CPB current year (non-add) 350 365 365 365 365 CPB Digitalization Program 25 25 25 49 49 Federal Mediation and Conciliation Service 40 41 41 41 41 Federal Mine Safety and Health Review Committee 7 7 7 7 7 Institute of Museum and Library Services (IMLS) c 225 210 210 203 245 –Museum Services (non-add) 27 29 N/S N/S N/S –Library Services (non-add) 198 181 N/S N/S N/S Medicare Payment Advisory Commission 8 9 8 8 9 National Commission on Libraries and Information Science 1 0 1 1 1 National Council on Disability 3 3 3 3 3 National Education Goals Panel < 0.5 0 0 0 0 National Labor Relations Board 227 233 227 238 239 11 11 11 11 11 9 10 10 10 10 241 228 230 228 230 Special Volunteer Programs National Senior Volunteer Corps Program Administration CNCS subtotal National Mediation Board Occupational Safety and Health Review Commission Railroad Retirement Board CRS-43 Office or major program FY2002 final a FY2003 request FY2003 House FY2003 Senate FY2003 enacted Social Security Administration (SSA) SSA Payments to Social Security Trust Fund (mandatory) 434 20 20 20 20 SSA Special Benefits for Disabled Coal Miners (mandatory) 441 397 397 397 397 29,440 32,162 32,162 32,170 32,170 SSA SSI, Discretionary 2,927 2,936 2,936 2,936 2,936 SSA Limitation on Administrative Expenses 4,649 5,000 5,000 5,000 5,000 75 83 83 83 83 37,966 40,598 40,598 40,606 40,606 15 16 15 16 16 Total appropriations d 39,558 41,854 42,184 42,234 42,282 Current year: FY2003 28,280 30,676 30,627 30,662 30,715 Advance year: FY2004 10,898 11,177 11,177 11,177 11,177 Advance year: FY2005 380 0 380 395 390 SSA Supplemental Security Income (SSI) (mandatory) SSA Office of Inspector General SSA subtotal United States Institute for Peace TOTALS, RELATED AGENCIES Source: Amounts are based on the FY2003 conference report H.Rept. 108-10, February 13, 2003; Senate and conference data do not reflect cuts required for most discretionary funds (see page 10). Note: “N/S” means that the amount was not specified in the relevant bill or table. a The FY2002 amounts are based on 107-116, P.L. 107-117, and P.L. 107-206. L-HHS-ED funds are provided only for CNCS Domestic Volunteer Service Act programs. In addition, the Veterans Affairs-Housing and Urban Development (VA-HUD) Appropriations Act provides funds for CNCS 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 was 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. b CRS-44 Related Legislation Several proposals related to L-HHS-ED appropriations were considered during the 2nd Session of the 107th Congress, including a series of FY2003 continuing resolutions, further FY2002 supplemental appropriations, the FY2003 budget resolutions, and the establishment of a new Department of Homeland Security. Several additional FY2003 continuing resolutions were enacted early in the 108th Congress, prior to the passage of the Consolidated Appropriations Resolution, 2003, (P.L. 108-7, enacted February 20, 2003). FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111) From October 1, 2002, through February 20, 2003, a series of eight continuing resolutions extended appropriations for FY2003 on a temporary basis for most ongoing L-HHS-ED programs, including the costs of direct loans and loan guarantees. These resolutions were necessary because the regular FY2003 L-HHS-ED appropriations were not enacted by the start of FY2003. Funding under the continuing resolution was provided at a rate of operations not to exceed the “current rate,” under FY2002 conditions and program authority. New initiatives were prohibited unless otherwise specifically authorized. For programs with high spend-out rates that normally would occur early in the fiscal year, special restrictions prohibited spending levels that would impinge on final funding decisions. For additional information, see CRS Report RL30343, Continuing Appropriations Acts: Brief Overview of Recent Practices. ! ! ! 1st Continuing Resolution, P.L. 107-229 (H.J.Res. 111), provided temporary appropriations for the period October 1 through October 4, 2002, as long as regular appropriations were not enacted sooner. Section 114 of the resolution extends funding through the entire first quarter of FY2003, through December 31, 2002, for the Temporary Assistance for Needy Families (TANF) and mandatory child care programs (these funds were originally provided in the 1996 welfare reform law). The resolution also extends the rules for transitional Medicaid through December 31, 2002; these rules provide coverage for up to one year for families moving from welfare to work. The resolution was passed by the House (roll call no. 423, 370-1) and the Senate (by unanimous consent) on September 26, 2002. It was signed into law by the President on September 30, 2002, as P.L. 107-229. 2nd Continuing Resolution, P.L. 107-235 (H.J.Res. 112), extended the provisions of P.L. 107-229 through October 11, 2002. 3rd Continuing Resolution, P.L. 107-240 (H.J.Res. 122), extended the provisions of P.L. 107-229 through October 18, 2002. In addition, it requires the current rate to be reduced by the exclusions listed in OMB instructions to federal agencies on October 4, 2002, regarding one-time FY2002 appropriations, and requires OMB to submit to the Committees on Appropriations monthly reports on the rate of obligations under the continuing resolutions. It extends CRS-45 ! ! ! ! ! specified Medicaid provisions to a date 60 days beyond the expiration of the period specified in P.L. 107-229, as amended. 4th Continuing Resolution, P.L. 107-244 (H.J.Res. 123), extended the provisions of P.L. 107-229 through November 22, 2002. 5th Continuing Resolution, P.L. 107-294 (H.J.Res. 124), extended the provisions of P.L. 107-229 through January 11, 2003. In addition, it authorizes the transfer of up to $640 million for the new Department of Homeland Security (DHS), including $140 million for salaries and expenses associated with start-up costs for the new department. It amends §114 of P.L. 107-229 to extend certain TANF provisions automatically to the date specified by the continuing resolution, as amended, at the level provided for during the corresponding period in FY2002. 6th Continuing Resolution, P.L. 108-2 (H.J.Res. 1), extended the provisions of P.L. 107-229 through January 31, 2003. 7th Continuing Resolution, P.L. 108-4 (H.J.Res. 13), extended the provisions of P.L. 107-229 through February 7, 2003. 8th Continuing Resolution, P.L. 108-5 (H.J.Res. 18), extended the provisions of P.L. 107-229 through February 20, 2003. On that date, H.J.Res. 2, the Consolidated Appropriations Resolution, 2003, was signed into law as P.L. 107-8, enacting all remaining FY2003 appropriations, including funding for L-HHS-ED programs. FY2002 Supplemental Appropriations, P.L. 107-206 (H.R. 4775) On March 21, 2002, the President submitted to the Congress a request for an FY2002 supplemental appropriations for emergency funding in support of the war on terrorism, homeland security, and economic revitalization. The request included supplemental appropriations of $700 million for L-HHS-ED programs. In addition, as part of the regular FY2003 budget, the President requested an FY2002 supplemental of $1.3 billion for Pell Grants, with the amount to be offset by rescissions in FY2002 appropriations from other L-HHS-ED programs. As passed by the House, H.R. 4775 would have provided an additional $1.3 billion for L-HHS-ED programs, including $1.0 billion for Pell Grants. H.R. 4775, H.Rept. 107-480, was passed by the House May 24, 2002 (roll call no. 206, 280136). The Senate amendment to the House bill would have provided $1.8 billion for L-HHS-ED programs, including $1.0 billion for Pell Grants. The Senate proposal incorporated the provisions of S. 2551, S.Rept. 107-156, as reported by the Senate Appropriations Committee. H.R. 4775 was passed by the Senate on June 7, 2002 (roll call no. 145, 71-22). The H.R. 4775 conference agreement provides $1.0 billion for Pell Grants. An additional $91.5 million would have been provided for other L-HHS-ED programs, primarily the Public Health and Social Services Emergency Fund (PHSSEF). However, the availability of the latter funds were made conditional on the funds being requested by the President; on August 13, 2002, the President announced that there would be no such request, thereby reducing the amount of CRS-46 appropriations available to be spent. The agreement also includes a rescission of $75 million from existing FY2002 appropriations for NIH facilities and L-HHS-ED administration. No additional funds were provided for job training or dislocated worker programs. The H.R. 4775 conference report, H.Rept. 107-593, was agreed to by the House on July 23 (roll call no. 328, 397-32), and by the Senate July 25, 2002 (roll call no. 188, 92-7). H.R. 4775 — the 2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks on the United States — was signed into law by the President on August 2, 2002, as P.L. 107-206. For additional information on specific L-HHS-ED programs, see Appendix C: Terrorism Funding in the L-HHS-ED, Bill, page 53. For additional information on H.R. 4775, see CRS Report RL31404, Supplemental Appropriations for FY2002: Combating Terrorism and Other Issues. 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. 107141, 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 determined only through the enactment of appropriations bills. H.Con.Res. 353 (H.Rept. 107-376), was passed by the House on 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. Department of Homeland Security, P.L. 107-296 (H.R. 5005) On June 6, 2002, the President called for the creation of a Department of Homeland Security (DHS) to direct or coordinate federal activities related to domestic defense against terrorism. The proposal would have combined 22 activities from other federal agencies, including two from HHS: (1) emergency preparedness and response concerning chemical, biological, radiological, and nuclear response assets ($2.1 billion requested for FY2003); and (2) chemical, biological, radiological, and nuclear countermeasures concerning civilian bio-defense research programs CRS-47 ($2.0 billion requested for FY2003). The President’s proposal was modified and agreed to by Congress; the establishment of DHS became effective January 24, 2003 (60 days after enactment). Overall, 30 programs and other activities are to be transferred from other agencies, including four from HHS. For these four HHS activities, the President requested a total of $376 million for FY2003. The President submitted the DHS proposal to Congress on June 18, 2002; it was introduced as H.R. 5005 on June 24, 2002, by request, and referred to 12 Committees plus the new House Select Committee on Homeland Security. The bill was amended and reported, H.Rept. 107-609, Part I, by the House Select Committee on Homeland Security July 24, 2002, and passed the House July 26, 2002, by a vote of 295 to 132 (roll call no. 367). A Senate bill to create a DHS, S. 2452, S.Rept. 107-175, was reported by the Senate Committee Governmental Affairs on June 24, 2002, and a revised version of S. 2452 was ordered reported July 25, 2002. H.R. 5005 was amended and passed the Senate on November 19, 2002, by a vote of 90 to 9 (roll call no. 249). The House agreed to the Senate amendment by unanimous consent on November 22. H.R. 5005 — the Homeland Security Act of 2002 — was signed into law by the President November 25, 2002, as P.L. 107-296. 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 appropriated by P.L. 107-38. 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 CRS-48 ! ! ! attacks of September 11, 2001, assist its victims, and deal with “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 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 several 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, 37530) and by the Senate (by unanimous consent) on July 20, 2001. The bill was signed into law by the President on July 24, 2001. 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: 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-49 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. CRS-50 Appendix B: Scope of L-HHS-ED Appropriations The FY2002 budget authority for all federal programs was estimated to be $2,085.0 billion, as shown in Table B.1. Of this amount, the departments and related agencies funded by the L-HHS-ED bill accounted for $1,058.2 billion (50.8%). Table B.1. Scope of the L-HHS-ED Bill, FY2002 (Estimated budget authority in billions of dollars) Budget category Total federal budget authority Estimated budget authority Percent of federal budget $2,085.0 100.0% 59.4 2.8% 468.5 22.5% 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% 1.5 0.1% 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% Department of Labor Department of Health and Human Services Other related agencies L-HHS-ED agency total 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, 2001; 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.2 What accounts for the remaining 88.3% ($934.8 billion) of L-HHS-ED funds? 2 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. CRS-51 First, some DOL, HHS, 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.3 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 HHS agencies are fully funded in other appropriations bills, and four L-HHS-ED programs were partially funded in FY2002 by bills other than L-HHS-ED. FY2002 appropriations from other, non-L-HHS-ED sources are shown for each of these agencies and programs. ! ! ! 3 The HHS Food and Drug Administration is funded by the Agriculture Appropriations ($1.4 billion in FY2002). The HHS 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-HHSED for programs authorized under the Domestic Volunteer Service Act of 1973 ($328 million); it also received funds from the FY2002 Veterans Affairs and Housing and Urban Development (VA-HUD) Appropriations for AmeriCorps and other programs authorized by the National Community Service Act ($407 million). The Social Security Administration (SSA) was separated from HHS and established as an independent federal agency on March 31, 1995. Within the L-HHS-ED bill, however, the SSA merely was transferred from HHS 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. CRS-52 ! ! ! 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 in FY2002); it received 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 in FY2002); it also received 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 in FY2002); it received additional funds under FY2002 VA-HUD Appropriations for certain environmental health sciences activities ($81 million). CRS-53 Appendix C: Terrorism Funding in L-HHS-ED Appropriations 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 funding increases have been enacted since. Details related to L-HHS-ED activities follow the summary. ! ! ! ! ! ! On November 25, 2002, the Homeland Security Act of 2002 was signed into law by the President as P.L. 107-296, establishing the Department of Homeland Security (DHS). Four programs from HHS are to be transferred to the new department, for which $376 million is requested for FY2003. On June 18, 2002, the President proposed the transfer of two current clusters of HHS activities to his proposed Department of Homeland Security (DHS): (1) civilian biodefense research programs, with an FY2003 request of $2.0 billion; and (2) chemical, biological, radiological, and nuclear response assets, with an FY2003 request of $2.1 billion. On March 20, 2002, the President proposed an FY2002 emergency supplemental that would include an additional $750 million for dislocated worker programs at the Department of Labor (DOL), and an FY2002 rescission of $50 million from HHS programs. On February 4, 2002, the President proposed for FY2003 $4.3 billion, mostly for Department of Health and Human Services (HHS) programs, that prevent, or respond to, bioterrorism, including public health and hospital preparedness. For FY2002, regular appropriations provided $0.2 billion for antibioterrorism activities and supplemental appropriations provided an additional $2.8 billion for HHS, primarily for bioterrorism and response programs, and another $220 million for DOL, primarily for emergency worker compensation programs. A rescission of $75 million was also enacted that reduced previously enacted funding for National Institutes of Health (NIH) facilities and L-HHS-ED administrative expenses. For FY2001, $291 million was enacted before the terrorist attacks of September 11, 2001, primarily for HHS bioterrorism programs; after the attacks, an additional $126 million was enacted for HHS programs for health-related needs in disaster areas and $29 million for DOL programs for temporary jobs to clean up afer the disaster. Department of Homeland Security Programs. The Homeland Security Act of 2002, P.L. 107-296, established DHS, effective January 24, 2003 (60 days after enactment). Overall, 30 programs and other activities are to be transferred to the new department from other agencies, including four from HHS, as follows: ! Office of Emergency Preparedness ($14 million appropriated for FY2002; $15 million requested for FY2003); CRS-54 ! ! ! National Disaster Medical System ($10 million appropriated for FY2002; $11 million requested for FY2003); Metropolitan Medical Response System ($25 million appropriated for FY2002; $50 million requested for FY2003); and Strategic National [Pharmaceutical] Stockpile ($650 million appropriated for FY2002, including a $593 million supplemental; $300 million requested for FY2003). Terrorism Funding, FY2003. The President’s FY2003 budget request proposes an increase in terrorism funding for some L-HHS-ED programs, primarily bioterrorism activities at HHS. 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. In addition, the HHS 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. On September 3, 2002, the President submitted a supplemental FY2003 request for $1.0 billion that would fund some of the activities left unfunded by the President’s failure to approve of the $5.1 billion contingent FY2002 emergency appropriations that were enacted through P.L. 107-206 (discussed below). For L-HHS-ED activities, the new request includes an additional $100 million for the CDC for the International Mother and Child HIV Prevention Initiative, along with an equal amount for the same initiative funded through the Agency for International Development. The Consolidated Appropriations Resolution, 2003 (P.L. 108-7, enacted February 20, 2003) provides, among other provisions, regular FY2003 funding for L-HHS-ED programs as well as the four activities being transferred to DHS. However, the exact FY2003 amount for bioterrorism at NIH and CDC is not CRS-55 specified in the bill, nor is the amount specified for some of the DHS activities. In particular, $15 million is provided for the Office of Emergency Preparedness, $300 million for the Strategic National [Pharmaceutical] Stockpile (SNS), and $100 million for smallpox vaccine at the SNS — these activities are to be transferred to DHS. Funding apparently is provided for two other DHS activities — the National Disaster Medical System (NDMS) and the Metropolitan Medical Response System (SMRS) — but exact amounts were not specified in the L-HHS-ED bill, as enacted. 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. 107117 (H.R. 3338, H.Rept. 107-350) designated $2.9 billion for L-HHS-ED activities. An estimated additional $315 million was provided through the regular FY2002 LHHS-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 have counted 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 HHS 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; CRS-56 ! ! ! $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 HHS 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 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 have been for dislocated worker programs, mostly under Training and Employment Services programs at DOL. The proposal would have rescinded $20 million for the Community Access Program to provide health care for the uninsured at the HHS Health Resources and Services Administration (HRSA) and $30 million for NIH construction projects that are not yet underway. In the President’s FY2003 budget, an FY2002 supplemental of $1.3 billion was requested for Pell Grants, with the additional funds to be offset by rescissions in FY2002 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, pp. 1195-1197; for program information, see the Pell Grants section of this report (page 32). 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.4 At HHS, $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 7, 2002, the Senate amended and passed its version of H.R. 4775, the 2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks on the United States. With a $32.6 billion total, the Senate version of the bill would provide $400 million for WIA job training programs at DOL. At HHS, $315 million would be provided for the CDC for Disease Control, Research, 4 H.R. 4775 amounts for the House bill, the Senate amendment, and the conference agreement are based on the July 24, 2002 unofficial staff table of the House Appropriations Committee. CRS-57 and Training. A rescission of $30 million would be made for NIH Buildings and 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. The H.R. 4775 conference report, H.Rept. 107-593, the 2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks on the United States, was passed by the House on July 23, and the Senate on July 24, 2002. Of the $30.0 billion total ($28.9 billion discretionary), the bill would provide $90.0 million for the PHSSEF, $1.0 million for the CDC, $0.5 million for the Domestic Violence Hotline, and $1.0 billion for Pell Grants. In addition, the bill would rescind $30 million for NIH Buildings and Facilities and $45 million for L-HHS-ED administrative expenses. The conference agreement included no funds for WIA job training or dislocated worker programs. H.R. 4775 was signed into law by the President on August 2, 2002, as P.L. 107-206. Of the funding provided by P.L. 107-206, $5.1 billion was designated as contingent emergency appropriations, available only if subsequently requested by the President. On August 13, 2002, the President announced the decision that these funds would not be requested, thereby reducing the total available from P.L. 107-206 to $24.9 billion. This reduction includes funds for L-HHS-ED programs — the supplemental amounts of $90.0 million for the PHSSEF, $1.0 million for the CDC, and $0.5 million for the Domestic Violence Hotline will not be available as a consequence of the President’s decision. For additional information on P.L. 107-206, see CRS Report RL31406, Supplemental Appropriations for FY2002: Combating Terrorism and Other Issues. 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 Department of Health and Human Services (HHS). 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 bioterrorismrelated 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 CRS-58 ! The HHS 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: ! ! $126 million for HHS activities for health-related needs in areas affected by the disaster; and $29 million for 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. 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