Federal appropriations update: Are we headed for a shutdown?

Congress is back in session after its annual August recess, and at the top of their to-do list is addressing spending for the fiscal year that begins October 1. As we touched on last month, lawmakers are staring down a fast-approaching deadline for action on FY 2024 spending. It is clear that Congress will not pass the 12 annual spending bills by the end of the month, meaning that if they do not pass a temporary spending measure known as a continuing resolution (CR) by then, the federal government could be forced to shut down on October 1, 2023. Given that possibility, it is important to review what that could mean for afterschool programs, particularly those supported by federal funding.

Where FY 2024 appropriations stand

This week, the House and Senate are considering very different fiscal year (FY) 2024 appropriations bills. The Senate is starting with a package of three bills that passed the Senate Appropriations Committee unanimously: the Military Construction-VA bill, Agriculture, and Transportation-HUD bill.  Across the Capitol, the House tried to consider its defense appropriations bill, but politics prevented those efforts. Some House Republicans want to wait to see that the total of all 12 bills is no more than the FY 2022 level of discretionary funding before debating any one of them. That level is below the sum of the defense and non-defense spending levels set in June by the Fiscal Responsibility Act. Democrats are not expected to support any of the House Republican appropriations bills due to their low funding levels for non-defense programs and a number of policy changes. Since the FY 2024 bills will not be enacted before the start of the new fiscal year on October 1, both parties in Congress are working to negotiate an agreement to temporarily extend current funding through a CR. Those negotiations are complicated; House Freedom Caucus members want any continuing resolution to cut funding and include policy changes Democrats will not support. Additionally, there are disagreements around emergency funding for Ukraine and disaster relief.

What a shutdown could mean

Due to the lack of consensus around overall spending levels and the political challenges around passing a continuing resolution, agencies are preparing for a possible government shutdown—full or partial—next month. In the event of a shutdown, the impact will largely be felt by federal agencies and employees. Each agency has a shutdown “contingency plan” that describes which functions would continue and which would be suspended. Some agencies share the specific numbers of employees who would remain at work and how many would be sent home on unpaid furlough; others don’t. Constitutional checks and balances mean that a shutdown wouldn’t stop Congress from working, but each Congressional office would determine who would continue to work and whether constituent meetings would continue. (The U.S. Capitol Police would be affected by a shutdown, likely limiting public access to Congressional buildings.)

A shutdown should not impact federal grants like 21^st Century Community Learning Centers (21^st CCLC), Childcare Development Block Grant vouchers, or school meals. Funds for these programs have been delivered to providers, so there is no reason to be concerned with the disruption other federal programs might experience. Federal offices that support programs, like U.S. Department of Education staff, Corporation for National and Community Service staff who oversee VISTA and AmeriCorps, and others, will not be accessible by phone, email or in-person during a shutdown. Questions or support needed from these offices will have to wait until the government is funded again. For state education agencies navigating federal grants, including American Rescue Plan ESSER funding, the inability to reach federal Department of Education staff could pose challenges. Similarly, any pending federal funding opportunities or guidance may be delayed by a shutdown.

With regard to education funding, Impact Aid to schools and Head Start Centers could feel the direct negative impacts of a shutdown, as was the case during the 2018-2019 and 2013 federal government shutdowns. In 2019, afterschool programs housed at federal properties, including military bases, museums, U.S. Department of Interior and/or National Park Service facilities, were forced to close for the duration of the shutdown. Programs that are funded directly though federal grants should consider reaching out reach out to their program officer at the federal level in September with any questions on possible impact of a shutdown.

Federal government shutdowns add to the uncertainty facing afterschool programs seeking sustainable funding, and could impact the work of state agencies that support local afterschool programs. Friends of afterschool and summer learning can weigh in with Congress about the importance of preventing a shutdown next month and continuing robust investments in afterschool funding, which provides support for local school and community-based organizations that serve more than 1 million children.