2023-2024 Federal & State Budgets

Over the weekend, President Biden signed into law an appropriations package containing funding for the Defense, Financial Services, Homeland Security, Labor-Health and Human Services-Education, Legislative Branch, and State and Foreign Operations through September 30, 2024, the end of the current fiscal year.

Last night, Congress released bill text and explanatory statements for the Defense, Financial Services, Homeland Security, Labor-Health and Human Services-Education, Legislative Branch, and State and Foreign Operations FY2024 appropriations bills. The $1.2 trillion package funds agencies within the six bills through September 30, 2024, the end of the current fiscal year.

With essentially flat funding overall per the budget agreement by congressional leaders and President Biden, Congress simply does not have the resources to make the investments we know are needed to advance our nation’s global competitiveness, support the workforce, drive scientific discovery and innovations, and provide ladders of economic mobility to low-income students.

Most of public universities’ U.S. Department of Education priorities, including Pell, Supplemental Education Opportunity Grants (SEOG) and Federal Work Study (FWS) are flat funded. Flat funding is never the goal but given that SEOG and FWS were proposed for elimination in the relevant House bill and proposed for a small cut in the Senate bill, it is a great advocacy victory to end up with no cuts.

The National Institutes of Health receives $47.081 billion for FY24, $378 million below last year’s funding level. With $678 million in mandatory funding under the 21st Century Cures Act expiring, appropriators were able to minimize the cut, but not completely prevent the harm. This funding level will make it difficult for NIH to advance new biomedical research that is critical to improving the health of patients and communities nationwide.

On Department of Defense research programs, while some university defense research accounts were increased over FY2023 levels, many other accounts were cut. APLU’s appropriations chart provides the more nuanced details.

APLU is encouraged that the USAID Feed the Future Innovation Labs, an important global agriculture research program, received a boost in funding of $10 million to $72 million.
The House is expected to take up the legislation under suspension of the rules on Friday, despite the chamber’s 72-hour rule for considering new legislation. The Senate would then follow suit this weekend. Despite this timeline, a brief lapse in funding is likely, though the White House is unlikely to force agencies to implement shutdown contingency plans.

Over the weekend, President Biden signed into law H.R. 4366, a package containing the Agriculture-FDA, Commerce-Justice-Science, Energy and Water Development, Interior-Environment, Military Construction-VA, and Transportation-HUD appropriations bills, after the Senate passed the legislation 75-22 on Friday.

Congress now turns its attention towards passing the remaining six bills, which are operating under a Continuing Resolution that expires on March 22. The remaining bills, Defense, Financial Services, Homeland Security, Labor-HHS-Education, Legislative Branch, and State and Foreign Operations, account for roughly 70 percent of the government’s discretionary spending.

Over the weekend, President Biden signed into law a continuing resolution (H.R. 2872) to fund the government into March.

The bill extends funding for the Agriculture-FDA, Energy-Water, Military Construction-VA, and Transportation-HUD bills through March 1, with the remaining eight bills extended to March 8. The funding measure does not contain any supplemental funding or border security packages.

The package received bipartisan support in both chambers. The House passed the bill under suspension of the rules on a 313-108 vote and the Senate passed the bill 77-18.

The House and Senate are likely to consider a continuing resolution this week to extend funding for the Agriculture, Military Construction-VA, Energy-Water, and Transportation-HUD appropriations bills through March 1, with the remaining bills extended through March 8. House and Senate leadership support the legislation.

The extension agreement follows Senate Majority Leader Chuck Schumer (D-NY) invoking cloture on a CR package late last week and arrives amid continued conversations between Speaker Mike Johnson (R-LA) and House Republicans over topline spending levels.

Given the limited time before the first portion of the laddered CR expires on January 19, a brief shutdown could occur if any senator objects to fast-tracking the legislation or if the House is unable to pass the legislation under suspension of the rules.

House and Senate leadership continue negotiations over a final FY24 appropriations package ahead of the January 19 deadline to avoid a partial government shutdown.

Despite an agreement on topline funding levels, obstacles towards a final agreement remain. Chair Murray and House Appropriations Ranking Member Rosa DeLauro (D-CT) have spoken out against including poison pill riders and Senate negotiators continue discussing a supplemental border security package that could also include military aid for Israel and Ukraine.

Over the weekend, Majority Leader Schumer and Speaker Johnson reached an agreement on FY24 topline spending that includes $886 billion in defense spending and $773 billion for non-defense discretionary (NDD) funding, the levels set in the Fiscal Responsibility Act (FRA) and inclusive of the side deal for non-defense spending reaching by President Biden and then-Speaker Kevin McCarthy (R-CA).

House Education and the Workforce Committee Chair Virginia Foxx (R-VA) this afternoon introduced the College Cost and Reduction Act (H.R. 6951). According to the press release on college costs, the bill would ensure information about costs and return on investment are available to prospective students and their families, hold institutions financially responsible for degrees that leave students with unaffordable debt, and fund institutions based on student outcomes. The legislation would limit the amount of federal student aid a student can receive annually at the median cost of attendance for students enrolled in similar degree programs nationally.

Among other provisions, the bill:

• includes language on standardized financial aid award letters
• creates the Pell Plus program to provide enhanced Pell awards to juniors and seniors
• replaces the Federal Supplemental Education Opportunity Grant with the performance-based PROMISE grant program
• adjusts the annual and aggregate limits on federal student loans
• sunsets the Grad PLUS and Parent PLUS student loan programs

The bill also includes previously introduced higher education bills, including several with bipartisan support. The press release also includes a section by section summary of H.R. 6951.

The Department of Education announced January 8 that the 24-25 FAFSA form is now available continuously, following the soft launch with limited availability on December 30. ED shares that over one million students have submitted the 24-25 FAFSA form to date.

ED shared a list of known bugs on the FAFSA form and will update the page as further issues are identified and existing issues are resolved. Students who successfully complete the form will receive an unofficial estimate of federal aid eligibility, and ED will send financial aid data to institutions in late January.

ED expects more than 17 million students will complete the FAFSA this year. Altogether, Pell eligibility expansion, the automated IRS data match, and a generally shorter FAFSA form are expected to provide maximum Pell Grants to an additional 1.5 million students.

Earlier today, Senators Bill Cassidy (R-LA), Ranking Member on the Health, Education, Labor, and Pensions Committee, and John Fetterman (D-PA) introduced the Protecting Students on Campus Act of 2024.

According to the press release, the legislation would improve awareness of how to report alleged civil rights violations, ensure institutions receive federal funding to handle these complaints, and require reporting from the Assistant Secretary of Civil Rights to provide frequent updates to Congress on receive complaints.

The Senators cite rising antisemitic incidences and attacks on college campuses and the Department of Education’s responsibility to ensure institutions receiving federal funds do not discriminate against students in a press release on protecting students, which also includes a summary of the Protecting Students on Campus Act of 2024.

Senate Majority Leader Chuck Schumer (D-NY) and Speaker Mike Johnson (R-LA) reached an agreement on FY24 topline spending over the weekend. The deal includes $886 billion in defense spending and $773 billion for non-defense discretionary (NDD) funding, the levels set in the Fiscal Responsibility Act (FRA) and inclusive of the side deal for non-defense spending reaching by President Biden and then-Speaker Kevin McCarthy (R-CA). Under the agreement, defense spending would increase 3 percent and non-defense discretionary funding would remain roughly flat. Majority Leader Schumer and Speaker Johnson did not announce subcommittee allocations, nor was an agreement on a border security package or aid for Ukraine and Israel shared.

The deal includes new accounting to fund the $69 billion side deal that brings FY24 NDD spending on par with FY23, including rescinding over $20 billion from the IRS, eliminating $10.5 billion in emergency spending from the agreement, $10 billion in Changes in Mandatory Programs (CHIMPs), and $1.4 billion from the Commerce Department’s nonrecurring expense fund, among others.

The agreement comes ahead of the January 19 deadline to avoid a partial government shutdown. Agencies receiving appropriations through the Agriculture, Energy & Water, Military Construction-Veterans Affairs, and Transportation-HUD bills are funded through January 19, with the other eight bills funded through February 2. Speaker Johnson previously stated his opposition to another short-term continuing resolution (CR), but Politico reports now that an agreement on toplines has been reached, he will likely support a CR through March 1 to enable Congress to draft and pass the legislation. Beyond the tight timeline, additional hurdles remain toward finalizing FY24 appropriations, including potential of a supplemental package that could include border security, military aid for Israel and Ukraine, and the forthcoming negotiation on inclusion of policy riders.

The Department of State, in conjunction with the Department of Homeland Security, announced new interview waiver authorities effective January 1, 2024. Consular officers retain the authority and discretion to waive in-person interviews for certain nonimmigrant visa cases.

Under the new guidance, interview waiver authorities now cover first-time H-2 applicants and other nonimmigrant visa applicant categories (including F, M, J, H-1Bs, among others) who were previously issued a nonimmigrant visa in any classification other than a B visa and are applying within 48 months of their most recent nonimmigrant visa’s expiration date.

This authority will be reviewed annually and remains in place until further notice. This is both an expansion (now all nonimmigrant categories are eligible) and a restriction (individuals who previously entered the U.S. on a B visa are no longer eligible) of the temporary interview waiver authority granted during COVID.

Last week, U.S. Citizenship and Immigrations Services announced an inflation adjustment to premium processing fees. The fees go into effect on February 26, 2024, and USCIS states the revenue generated will provide premium processing services, make improvements to adjudications processes, respond to adjudication demands, and fund USCIS adjudication and naturalization services.

Under the rule, premium process for Form I-129, Petition for a Nonimmigrant worker, will increase to $2,805 for H-1B petitioners, among others, and Form I-539, Application to Extend/Change Nonimmigrant Status will increase to $1,965 for F-1 petitioners, among others.  

The National Center for Education Statistics (NCES) released an updated data set for the Integrated Postsecondary Education Data System (IPEDS). IPEDS collects information annual from Title IV eligible institutions of higher education. For the first time, the data set includes institutions’ use of legacy admissions. 

The State Department announced earlier this week a domestic visa renewal pilot program for a limited number of H-1B workers. Currently, workers on a H-1B visa must travel back to their home country and secure an appointment at a US consular office before returning to the U.S. Under the pilot, up to 20,000 H-1B holders will be able to renew their visa by mail beginning in January. A Federal Register Notice that details exact eligibility requirements is expected in December.

On Tuesday, the House passed a “laddered” continuing resolution under suspension of the rules in a bipartisan 336-95 vote. The CR extends funding for agencies in the Agriculture, Energy-Water, Military Construction-VA, and Transportation-HUD bills through January 19 and agencies in remaining bills through February 2. The Senate passed the bill Wednesday evening in a bipartisan 87-11 vote. President Biden is expected to sign the legislation ahead of Friday evening’s deadline.

The House and Senate continue their consideration of FY24 appropriations bills.

The House elected Rep. Mike Johnson (R-LA) as Speaker Wednesday afternoon on a party-line vote. Immediately following his election, the House began voting on a resolution in support of Israel, followed by beginning debate on the Energy and Water Development bill. Meanwhile, the Senate began floor consideration of an appropriations package Wednesday afternoon.

On October 3, the House voted to vacate the speakership. The House Republican Conference plans to host a candidate forum Tuesday, October 10 and then possibly hold a full House vote for speaker October 11. The House will not proceed to legislative business until a new speaker is chosen.

Over the weekend, President Biden signed into law a continuing resolution funding the government through November 17. The CR, which passed both chambers with bipartisan support, extends funding at FY23 levels and includes disaster relief, a reauthorization of the Federal Aviation Administration, and the National Flood Insurance Program. Notably, the package omitted aid for Ukraine and border security provisions, two issues that will likely need resolved in an ultimate FY24 package.

With three days left until a potential government shutdown, both chambers continue consideration of funding packages. The Senate considers a continuing resolution using the Federal Aviation Administration Reauthorization Act as the vehicle, while the House moves forward with four appropriations bills. Emergency disaster relief spending, aid for Ukraine, and overall spending levels in FY24 remain hurdles that will need to be resolved in a package that ultimately passes both chambers.

With government funding set to expire on September 30, the House and Senate continue their consideration of FY24 appropriations bills, while the White House is pushing for $44 billion in emergency supplemental funds and released a list of funding anomalies in the case of a continuing resolution.

Last night, President Biden vetoed the resolution that would overturn the administration’s student loan forgiveness plan, which would waive up to $10,000 in federal loans for most borrowers and $20,000 for borrowers who received Pell Grants.

The resolution, advanced under the Congressional Review Act after the Government Accountability Office identified the forgiveness plan as a rule, was passed with both Democratic and Republican support in both chambers.  

President Biden signed the Fiscal Responsibility Act (H.R. 3476) into law over the weekend, suspending the debt ceiling until 2025 and setting defense and non-defense discretionary funding levels for FY24 and FY25.

In FY24, non-defense discretionary spending – which includes programs such as student aid and scientific research – remains roughly flat. Under the agreement, spending on non-defense discretionary programs would increase by 1 percent in FY 2025.

While FY 2024 non-defense discretionary spending appears roughly flat in the agreement details, the actual FY 2024 allocated amount in the legislation is much lower than FY 2023 levels. This is because the deal includes the redistribution of rescinded funding that will ultimately be allocated to non-defense discretionary programs, bringing FY24 non-defense levels to what the White House says is roughly FY 2023 levels. The deal includes other provisions, such as the restart of student loan repayment.

Earlier today, the Senate voted to overturn President Biden’s student loan forgiveness plan, which would waive up to $10,000 in federal loans for most borrowers and $20,000 for borrowers who received Pell Grants. Three Democrats joined all Republicans in voting yes, with the final tally being 52-46. The resolution passed the House last week 218-203, with two Democrats joining Republicans in voting yes. President Biden is expected to exercise his veto.

Yesterday, the House voted to overturn President Biden’s student loan forgiveness plan, which would waive up to $10,000 in federal loans for most borrowers and $20,000 for borrowers who received Pell Grants. Two Democrats joined Republicans in voting yes, with the final tally being 218-203.

Earlier this year, the Government Accountability Office identified the forgiveness plan as a rule, allowing the House to use the Congressional Review Act (CRA) to overturn the policy. The resolution now heads to the Senate, where Republicans can use the CRA to force a simple majority vote. Prospects for passage are uncertain. All but one Senate Republican have signed onto the resolution led by HELP Committee Chair Bill Cassidy (R-LA). Several moderate Democrats’ positions are unclear. If the bill passes the Senate, President Biden is expected to exercise his veto.

The White House released an update to the National Artificial Intelligence Research and Development Strategic Plan this week, adding a new strategy to existing principles from 2016 and 2019 versions of the plan.

The new strategy underscores a principled and coordinated approach to international collaboration in AI research by prioritizing collaborations to address global challenges, such as environmental sustainability, healthcare, and manufacturing, and supporting the development and implementation of international guidelines and standards for AI.

The plan further calls for focusing federal investments in R&D to promote responsible innovation, serve the public good, protect people’s rights and safety, uphold democratic values, and ensure continued U.S. leadership in the development and use of trustworthy AI systems.

The State Higher Education Executive Officers Association (SHEEO) released their annual State Higher Education Finance (SHEF) report detailing support for public higher education across all fifty states. The report finds that FY22 per-student spending exceeded pre-recession per-student levels for the first time since 2008, increasing 5 percent beyond inflation last year.

The findings also indicate that historical patterns following economic recessions reversed in 2021 and 2022, with education appropriations increasing for the 10th straight year, rather than decreasing. Additional data includes public FTE enrollment, state and local government funding, state public financial aid per FTE, net tuition revenue, total education revenue, and student share.

On March 9, the White House unveiled its long-awaited FY2024 President’s Budget Request (PBR) to Congress with agencies releasing further details on Monday, March 13. Totaling $6.9 trillion dollars, the PBR allocates $1.73 trillion for discretionary spending at federal agencies in FY2024, including $841 billion for nondefense programs (8 percent above FY2023 levels) and $886.4 billion for defense spending (3.3 percent above FY2023).

APLU developed a detailed analysis of the PBR, including funding levels and policy language for programs of interest to APLU institutions at priority agencies. The budget includes a number of proposed increases to APLU priority accounts. As examples, the PBR includes an $820 increase to the Pell Grant maximum; $21 billion in CHIPS and Science Act-authorized activities; and a $11.3 billion topline for the National Science Foundation. Some agencies have not yet shared their more detailed information on the PBR. APLU will update our analysis as further information is available from EDA, EPA, and NOAA.

As you are aware, the PBR is the beginning of the process. To secure increases we support in the PBR and build on the proposed budget where it does not meet the APLU request, advocacy by public research universities on Capitol Hill is crucial.

APLU’s FY2024 appropriations priorities chart has been updated to reflect President Biden’s request to Congress.

The White House released its FY24 Budget Request earlier this afternoon, proposing to increase the maximum Pell Grant by $500; invest $375 million in the National Institutes for Standards and Technology programs; provide $277 million for the Manufacturing Extension Partnership; invest $21 billion in discretionary spending for CHIPS and Science Act-authorized activities; and support cutting edge research at national laboratories and universities through the Department of Energy’s Office of Science.

The plan also includes components of Build Back Better such as a federal-state partnership to achieve free community college and tuition subsidies for qualifying students at Minority Serving Institutions.

The White House is expected to release the supplemental materials, detailing proposed spending at the subaccount level, on Monday.

Politico reports the President’s Budget Request for FY24 is expected to be released on March 9.

Led by advocacy in partnership with the League of Conservation Voters and Upgrade NY, the enacted state budget includes $30 million for the replacement of two absorption chillers with a new, high efficiency electric chiller and a new heat recovery/heat pump chiller tied to a new geothermal well field.

This project is estimated to reduce the University’s carbon emissions by 16% by electrifying 100% of its cooling, switching from fossil-fuel fired heating to beneficial electrification for the entire campus during the summer months, and achieving net zero energy readiness for the Physical Education building.

New York State agencies have lacked ready access to the meteorological expertise needed to rapidly interpret critical weather information to ensure a coordinated response to extreme weather events.

To address this, the University will be entering a partnership with the State of New York — backed by UAlbany’s expertise — to serve as a clearinghouse within state government for the real-time interpretation and distribution of information critical to saving lives and property when severe weather strikes.
 

Funding for UAlbany’s NYSTAR Center of Excellence (COE) in Atmospheric and Environmental Prediction and Innovation (Weather and Climate Analytics) was restored to last year’s level of $1,000,000, in parity with the other 13 COEs. Our COE will continue to bring businesses and researchers together to devise innovative solutions to problems faced by weather-sensitive industries.

While funding was not included for a newly proposed COE in RNA Research and Therapeutics in partnership with the University of Rochester, we will continue our advocacy in the coming year.

• The Center for Autism and Related Disabilities at the University at Albany (CARD Albany) is a university-affiliated resource center that brings research and practice together in community settings. The budget funds the Center at $2.24 million, an increase of $500,000 over last year's level.
• Just for the Kids (NYKids) within the School of Education is the only New York-focused, evidenced-based school improvement program in the State that compares the performance of equally-resourced and similarly challenged schools, and then identifies the best practices that explain what relates to the "achievement gap" between high-achieving schools and lower-performing schools. This initiative was level-funded at $235,000.
• The School of Social Welfare received level funding of $210,000 for evaluating the Dwyer Peer-to-Peer Veterans Program that uses new and innovative support interventions to help veterans with PTSD transition and reintegrate back into civilian life.
• The Center for Women in Government and Civil Society received $100,000 for the Immigrant Integration Index that seeks to quantify the moderating effects of nativity status, race/ethnicity and gender in shaping socioeconomic outcomes of foreign-born New Yorkers.

The following are College of Integrated Health Sciences initiatives included in the Enacted Budget:

• $261,600 in level funding for the Public Health Management Leaders of Tomorrow program (PHLOT), established in 2006, that strengthens the public health infrastructure across New York by providing programs (e.g., tuition awards, internship stipends, leadership training and scholarships) designed to offer novel educational opportunities to state and local public health professionals, as well as to the next generation of public health leaders at the College of Integrated Health Sciences.
• $487,000 for Physician Workforce Studies - the Center for Health Workforce Studies, under contract with the NYS Department of Health, monitors the state's health workforce and identifies areas around the state with shortages of primary care, oral health and behavioral health providers.
• $32,000 for Public Health Live, a monthly webcast series designed to provide continuing education opportunities on public health issues.

Highlights

• $163 million in additional state-operated and statutory college operating aid intended to increase enrollment, strengthen academic programs, and support the evolution of the SUNY system

• $1.5 billion State Endowment Match for the University Centers ($0.5 billion state/$1 billion privately raised) that sunsets in three years (a minimum of $25 million and maximum of $200 million available receipt of matching dollars for any institution)

• $75 million for transformational innovation, workforce, and student experience investments

• Continued support for the "TAP Gap" under current tuition levels

• $53 million in continued support for hiring additional full-time faculty at state-operated campuses and community colleges

• The SUNY Board of Trustees is provided additional flexibility in setting differential non-resident undergraduate and non-resident graduate rates of tuition for state-operated institutions for a three-year period starting in 2023-24

• $18 million for another round of the SUNY Investment and Performance Fund

• $350,000 for the creation of the SUNY Black Leadership Institute

• $10.8 million in one-time, direct state tax support for the expansion of Child Care Centers across SUNY (state-operated campuses and community colleges)

• Note: The Enacted Budget does not include the following:

  • Predictable resident undergraduate tuition for state-operated campuses

  • Competitive tuition for resident undergraduate students at the University Centers

  • Academic program review reforms

  • Enhanced Maintenance of Effort (MOE)

SUNY Capital

Includes the Executive's proposed $100 million in flexible capital and $370 million in capital (an increase of $170 million from what was originally proposed) to support both the Digital Transformation initiative and other capital projects

$650 million in critical maintenance, an increase of $100 million over last year (UAlbany receives $11.66 million -- previously $9.85 million)

Student Financial Aid and Support

• Tuition Assistance Program (TAP)

  • TAP is funded at $897 million, comparable to last year's level

• Opportunity Programs

  • The Educational Opportunity Program (EOP) was level-funded at $43.8 million

  • The Science and Technology Entry Program (STEP) was level-funded at $21.5 million

  • The Collegiate Science and Technology Entry Program (C-STEP) was level-funded at $16.3 million

  • The Liberty Partnership Program funding was level-funded at $25 million

The following economic development initiatives were also included in the Enacted Budget:

• $1.7 billion to fully fund the consolidation of Wadsworth Laboratories' five facilities into one modern site on the Harriman Campus by 2030

• $225 million in grant funding and tax credits for the Regional Economic Development Council (REDC) for investment in innovative plans for regional job creation and community development 

• $100 million for a new round of Downtown Revitalization awards

• $45 million for GO-SEMI, the Governor's Office of Semiconductor Expansion, Management, and Integration to lead the growth of New York State's semiconductor industry

• $14 million for the Centers of Excellence (COE), the same as last year's level

• $15 million for the Centers for Advanced Technology (CAT) program, the same as last year’s level