CSAC Bulletin Article

House Approves Omnibus Spending Bill; Senate Action Awaits

On Wednesday, March 9, the House of Representatives passed a massive $1.5 trillion fiscal year (FY) 2022 omnibus appropriations package. The bipartisan legislation (H.R. 2471) provides funding for every federal department and agency, as well as emergency humanitarian assistance and military aid to Ukraine. Passage of the legislation came hours after congressional leaders agreed to strip billions of dollars of supplemental COVID-19 funding from the bill in response to concerns from some members of Congress that the spending would be partially offset by repurposing previously allocated coronavirus relief funds.

All told, the omnibus provides $730 billion in funding for non-defense discretionary programs, a $46 billion increase over FY 2021 spending levels (or a roughly 6.7 percent funding boost). With regard to the Pentagon, the bill includes $782 billion for defense and related security spending, an increase of $42 billion (or 5.6 percent more than FY 2021).

As anticipated, the final legislation provides significant funding increases for a number of programmatic areas of importance to California’s counties, including transportation and housing, human services, health, climate resiliency, natural resources, and others. Notably, the bill fully funds for FY 2022 the array of programs – both new and existing – that were authorized under the landmark Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58).

The budget package also includes billions of dollars in congressionally directed spending for more than 4,000 local and regional projects. Such projects, often referred to as earmarks, were brought back by congressional leaders under a revised process after an eleven-year hiatus.

Legislative action now turns to the Senate, where the chamber’s leaders have expressed a desire to clear the omnibus before the end of this week. Under the terms of a new Continuing Resolution (CR), the Senate will technically have until the middle of March to complete work on the appropriations measure.

To follow are select highlights from key spending Divisions of H.R. 2471:

Labor, Health and Human Services

The final omnibus provides a total of $213.6 billion for Labor, Health and Human Services, Education, and related agencies, or a 7.7 percent increase over FY 2021 spending levels.

Department of Labor

The bill includes a total of $13.2 billion in discretionary appropriations for Labor Department programs, a 5.2 percent increase. Key funding levels include:

  • $9.8 billion for the Employment and Training Administration, an increase of $412 million, or a four percent boost over the FY 2021 enacted level. Within this amount, the bill provides:
    • $870 million for adult training, an $8 million increase.
    • $933.1 million for youth training, a $12 million increase.
    • $1.075 billion for dislocated worker assistance programs, or $14 million more than FY 2021.

Department of Health and Human Services

The legislation provides a total of $108.3 billion for HHS, $11.3 billion above the FY 2021 enacted level (or a 12 percent increase). Highlights include:

Human Services

  • The bill reauthorizes the Temporary Assistance for Needy Families (TANF/CalWORKs) program through September 30, 2022.
  • $6.165 billion for the Child Care and Development Block Grant, an increase of $254.3 million.
  • $3.8 billion for the Low-Income Home Energy Assistance Program, $50 million above the FY 2021 level.
  • $11 billion for Head Start, a $288.7 million increase (+3 percent).
  • $857.6 million for the Mental Health Block Grant, a $100 million boost (+13 percent).
  • $101.6 million for the recently-enacted Suicide Prevention Hotline, a $77.6 million increase in order to transition to the 988 hotline later this year.
  • $3.9 billion for substance use treatment, or a nearly $100 million increase above the FY 2021 enacted level (+2 percent). Funding includes:
    • $1.85 billion for the Substance Abuse Prevention and Treatment Block Grant, a $50 million increase (+3 percent).
    • $1.5 billion for State Opioid Response Grants, a $25 million increase (+3 percent).
  • $1.7 billion (level funding) for the Social Services Block Grant.
  • $755 million for the Community Services Block Grant, a $10 million increase.
  • $806 million for Older Americans Act meal programs, a $15 million increase.
  • $268.7 million for Child Welfare Services, or the same level of funding as FY 2021.

Health

  • $490 billion for the Medicaid program to meet anticipated needs. The FY 2022 funding level reflects a $64.3 billion increase (15 percent more than FY 2021).
  • Public health is receiving a new $200 million investment for public health infrastructure and capacity building.
  • $715 million for the Public Health Emergency Preparedness Cooperative Agreement Program for state and local public health departments, an increase of $20 million over FY 2021.

Transportation, Housing and Urban Development, and Related Agencies

The omnibus provides $157 billion in total budgetary resources for the Department of Transportation (DOT), Department of Housing and Urban Development (HUD), and related agencies, an increase of $20.3 billion compared to FY 2021.

Transportation – H.R. 2471 provides $102.9 billion for the Transportation Department, an increase of $16.2 billion above previous spending. Key highlights include:

  • $57.5 billion for the Federal Highway Administration (FHWA) for core highway formula programs funded from the Highway Trust Fund, consistent with the increased spending levels authorized under the IIJA, as well as $2.4 billion for various highway infrastructure programs and projects.
  • $775 million for National Infrastructure Investments (RAISE/TIGER/BUILD grants), including not less than $20 million for grants to assist areas of persistent poverty and historically disadvantaged communities. An additional $25 million is included for a new technical assistance and capacity building program.
  • $16.3 billion for the Federal Transit Administration, including $13.4 billion for Transit Formula Grants to expand bus fleets and increase the transit state of good repair, consistent with the IIJA; $2.3 billion for Capital Investment Grants; and, $504.3 million for Transit Infrastructure Grants and projects.
  • 18.1 billion for the Federal Aviation Administration (FAA), $495 million above FY 2021, including $1.5 billion for aviation safety initiatives and $554 million for discretionary Airport Improvement Program grants and projects.

Housing – The omnibus provides a total of $53.7 billion for HUD, an increase of $4 billion above FY 2021. Highlights include:

  • $27.4 billion for Tenant-based Rental Assistance, a $1.5 billion increase to serve existing households in the program.
  • $8.45 billion for Public Housing, $645.5 million above FY 2021, including $3.2 billion to meet the full annual capital accrual need.
  • $3.3 billion in formula funding for the Community Development Block Grant (CDBG), a cut of $150 million.
  • $1.5 billion for the HOME Investments Partnerships Program, a $150 million increase.
  • $3.2 billion for Homeless Assistance Grants, an increase of $213 million (+7 percent).
  • The U.S. Interagency Council on Homelessness will receive the same level of funding as FY 2021 – $3.8 million.

Agriculture, Rural Development, FDA and Related Agencies

The Department of Agriculture and related agencies will receive discretionary funding of roughly $25.1 billion in FY 2022 – an increase of $1.4 billion, or six percent. In total, the bill includes $234.2 billion for discretionary and mandatory spending programs.

Rural Development – The bill provides significant funding increases for clean water and wastewater systems, housing assistance, and broadband to help bridge the digital divide in rural areas. Highlights include:

  • Rural Housing – Over $2 billion for the Rural Housing Service, an annual increase of $182 million, including a $40 million increase for Rental Assistance to fund expiring FY 2022 contracts.
  • Rural Utilities – The Rural Utilities Service will be funded at over $1.2 billion, an increase of $482 million. The ReConnect broadband program is receiving $450 million, which is in addition to the $2 billion in program funding included in the IIJA.
  • Rural Business – Rural business programs are funded at $131 million, an increase of $34 million.

Food and Nutrition Programs – The legislation includes discretionary funding, as well as mandatory funding required by law, for various food and nutrition programs within the Department of Agriculture, including:

  • $140.4 billion for the Supplemental Nutrition Assistance Program (SNAP), a $26 billion increase (+23 percent) to help meet anticipated program needs. The enhanced funding will ensure that participants receive increased benefits consistent with the Thrifty Food Plan, as well as emergency allotments to continue to address the pandemic.
  • $6 billion for the WIC program, also known as the Special Supplemental Nutrition Program for Women, Infants and Children program. This includes $834 million to increase the amounts of fruits and vegetables in WIC Food Package funding.
  • $26.8 billion for Child Nutrition Programs that support school meals, or a seven percent increase over FY 2021. Included in the funding is $45 million for the Summer Electronic Benefit program to allow children to receive an EBT card for meals if their school is closed due to the pandemic.

Commerce, Justice, Science (CJS) and Related Agencies

The CJS Division of H.R. 2471 provides a total of $75.8 billion, which includes $35.2 billion for the Department of Justice (DOJ), a $1.4 billion increase over FY 2021, and $9.9 billion for the Department of Commerce, an increase of $989 million.

With regard to DOJ grants to state and local law enforcement agencies, the final bill includes a total of $3.9 billion, which represents an increase of roughly $500 million when compared to FY 2021. This includes a total of $674.5 million for the Byrne-Justice Assistance Grant program, of which $382 million will be available to support state, local, tribal, and territorial criminal justice systems (a six percent increase).

The bill also boosts funding for the COPS program by roughly 33 percent. Under the legislation, COPS Hiring grants are funded at $246 million, an increase of $9 million. Funding also is included for programs that support training for officers to properly handle interactions with individuals who have mental illness or a disability ($10 million), officer mental health and wellness ($8 million), the purchase of body cameras ($35 million) and bulletproof vests ($30 million), and rural law enforcement needs ($8 million).

Additionally, H.R. 2471 includes over $572 million for grant programs to address substance use disorders; $135 million for the STOP School Violence Act; $234 million for the State Criminal Alien Assistance Program (SCAAP); and, $2.6 billion for programs funded by the Crime Victims Fund, a $585 million increase.

With regard to the Violence Against Women Act (VAWA), the legislation provides $575 million for key grant programs, a 12 percent increase. In addition, H.R. 2471 includes a long-overdue, multi-year reauthorization and update of the VAWA statute.

Energy and Water Development and Related Agencies

H.R. 2471 provides nearly $55 billion for programs under the purview of the Department of Energy (DOE), the U.S. Army Corps of Engineers (USACE), and the Bureau of Reclamation. The funding represents an increase of $3.2 billion above the FY 2021 enacted level.

Among other water-related programs, the bill includes $155 million to fund Western drought initiatives authorized by the WIIN Act, including programs that fund water storage, water recycling, reuse, and desalination projects. The legislation also includes $500 million for the Water Infrastructure Finance and Innovation Act (WIFIA) to help support low-cost loans for non-federal water infrastructure.

With regard to the USACE, the final budget includes $8.34 billion for Agency programs and projects, or $548 million more than FY 2021. The omnibus also includes roughly $2.05 billion for projects that are eligible to be funded under the Harbor Maintenance Trust Fund, or an increase of $370 million.

Finally, the bill includes $3.2 billion for the Department of Energy, an increase of $338 million, for various energy efficiency and renewable energy programs.

Department of Homeland Security

H.R. 2471 provides over $81 billion in discretionary resources for the Department of Homeland Security (DHS) and related agencies, as well as $18.8 billion for major disaster response and recovery activities.

Federal Emergency Management Agency – The bill provides $23.9 billion for FEMA, $2.19 billion above the FY2021 enacted level, including:

  • $18.8 billion for disaster response and recovery efforts; and
  • $3.6 billion for various grant programs, including:
    • $645 million for the State Homeland Security Grant Program (SHSGP);
    • $740 million for the Urban Areas Security Initiative (UASI);
    • $720 million for firefighter grant programs;
    • $130 million for the Emergency Food and Shelter program; and,
    • $40 million for the Next Generation Warning System to improve the capabilities of public broadcasters to send critical emergency and civil defense warnings;

Notably, H.R. 2471 also increases, from 75 percent to at least 90 percent, the Federal cost share for response and recovery efforts for disasters and emergencies that were declared or occurred in 2020 and 2021.

Interior, Environment, and Related Agencies

The Interior Division of the omnibus spending package includes $38 billion in resources, or an increase of nearly $1.9 billion. The bill also provides an additional $2.45 billion under the fire suppression cap adjustment. Key highlights include:

  • $5.7 billion for the Forest Service, an increase of $316 million. Funding is included to improve forest restoration and fire risk reduction efforts and to increase year-round staffing to carry out this work. The bill also increases hazardous fuels reduction projects to $187 million to allow the Forest Service to treat more of the highest-risk acres. Additionally, the Collaborative Forest Landscape Restoration Program is doubled to $28 million.
  • $3.845 billion for fire suppression, of which $2.45 billion is provided to the Wildfire Suppression Operations Reserve Fund, $100 million more than FY 2021. The additional funding provides the Forest Service and the Department of the Interior with an assured amount of funding to be used when regular appropriated funds are spent. The bill also provides funds to improve compensation for federal firefighters.
  • Full funding for the Payments-in-Lieu-of-Taxes (PILT) program, estimated at a total of $515 million.
  • $9.56 billion for the Environmental Protection Agency (EPA), $323 million above the FY 2021 enacted level, including:
    • $4.35 billion for State and Tribal Assistance Grants, a $38 million increase above the 2021 enacted level. Within this amount, the bill includes:
      • $2.77 billion for Clean Water and Drinking Water State Revolving Funds, equal to the 2021 enacted level.
      • $43 million for Combined Sewer Overflow grants, a $3 million increase.
      • $92 million for Brownfields cleanups, a $1 million boost in funding.
      • $92 million for Diesel Emissions Reductions grants, a $2 million increase.
  • $100 million for environmental justice activities at EPA, a nearly $90 million increase. Funding will support grants to environmental justice communities and will bolster EPA’s ability to integrate environmental justice principals across its entire mission, including clean air, clean water, toxic chemicals, and waste management.
  • $420 million for EPA clean air programs aimed at combatting climate change and addressing air pollution in communities across the country. The bill also establishes a new grant program to support community efforts to mitigate the health hazard posed by wildfire smoke.
  • Nearly $2.8 billion for the Clean Water and Drinking Water State Revolving Funds; $178 million for grants to address non-point source pollution; $43 million to address combined sewer overflows; and, nearly $70 million for EPA water infrastructure loans.
  • $1.9 billion for deferred maintenance projects for the National Park Service, the Bureau of Land Management, the Fish and Wildlife Service, the Bureau of Indian Education, and the Forest Service as part of a five-year deferred maintenance initiative under the Great American Outdoors Act (GAOA).
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