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

Congressional research reportMar 14, 2003

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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)

DSP

7-....

(name redacted)

DSP

7-....

(name redacted)

DSP

7-....

Edward B. Rappaport

DSP

7-....

Edward B. Rappaport

DSP

7-....

Carol V. O’Shaughnessy DSP

7-....

(name redacted)

DSP

7-....

(name redacted)

DSP

7-....

(name redacted)

DSP

7-....

(name redacted)

DSP

7-....

(name redacted)

DSP

7-....

Department of Health and Human Services

Abortion, legal issues

Abortion procedures

AIDS, Ryan White programs

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

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

Evelyne Baumrucker

(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)

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)

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)

DSP

7-....

Glenn McLoughlin

(name redacted)

Jon Shimabukuro

(name redacted)

Geoffrey Kollmann

Jennifer Lake

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

—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

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.

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.

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.

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.

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.

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.

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.

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.

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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

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

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.

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)

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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

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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.

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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

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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.

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“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.

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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)

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

Type of funds

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.

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.

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

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

Farmworkers

WIA Youth Opportunity Grants

225

(YOG)

WIA other federally administered

267

114

programs

WIA subtotal in TES

5,480

5,035

TES, Other

Community Service Employment

445

440

for Older Americans

Worker Compensation Programs

175

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

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

1,045

1,001

1,485

1,383

1,464

1,208

1,106

1,157

277

307

1,519

113

192

211

5,137

5,120

5,217

440

445

972

2,651

847

100

3,618

463

172

10,803

178

10,792

176

10,892

117

CRS-21

Office or major program

FY2002

final a

FY2003

request

FY2003

House

FY2003

Senate

FY2003

enacted

193

294

381

385

384

163

105

1,035

1,597

1,684

1,688

1,687

437

444

462

453

254

272

275

498

497

495

148

210

218

214

326

302

311

305

Pension Benefit Guaranty

Corporation (PBGC)

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

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

591

567

677

667

14,163

14,425

14,566

14,647

Current year: FY2003

11,729

11,699

11,962

12,103

12,184

Advance year: FY2003

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).

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.

Appropriations totals include discretionary and mandatory funds, and may be subject to additional

scorekeeping and other adjustments.

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

$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

HRSA Ryan White AIDS

1,910

1,911

Programs

HRSA Family Planning (Title X)

265

HRSA Health Care and Other

312

Facilities

HRSA Community Access

120

Program

HRSA Vaccine Injury

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

(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

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

727

742

735

1,930

2,051

2,031

265

285

275

298

120

784

5,978

877

6,348

854

6,565

4,289

4,318

4,297

26,481

27,160

438

433

440

1,745

1,723

1,703

985

3,168

974

3,130

1,015

3,158

309

299

39,919

309

41,265

304

41,180

163,951

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

States (mandatory)

Low Income Home Energy

1,700

1,400

1,700

Assistance Program (LIHEAP)

LIHEAP Emergency Allocation

300

Refugee and Entrant Assistance

460

453

447

443

Child Care and Development

2,100

Block Grant (CCDBG)

Social Services Block Grant

1,700

(Title XX) (mandatory)

Head Start

6,537

6,668

Child Welfare Services

292

Developmental Disabilities

140

141

147

Community Services Block Grant

650

570

650

Violent Crime Reduction

142

149

Other Children and Family

665

780

654

743

Services Programs

Rescission of mandatory funds

-21

Promoting Safe and Stable

305

Families (PSSF) (mandatory)

PSSF (discretionary)

200

Foster Care and Adoption

6,640

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

(mandatory)

Health Facilities Construction

184

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

447

2,100

1,700

6,668

292

146

650

145

742

305

100

6,601

25,632

1,376

2,247

251

440

319,122

Current year: FY2002

254,799

261,831

261,749

263,192

263,016

Advance year: FY2003

50,856

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).

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.

The VA-HUD Appropriations Act provides additional funding for NIH — $81 million in FY2002.

Appropriations totals include discretionary and mandatory funds, and may be subject to additional

scorekeeping and other adjustments.

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

$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

Education Programs

Even Start

250

200

250

Reading First State Grants

900

1,000

Education for the Disadvantaged,

847

835

837

Other

Impact Aid

1,144

1,141

1,185

School Improvement (SI),

2,850

2,950

Teacher Quality State Grants

SI Innovative Education Block

385

Grant

SI Educational Technology

785

723

SI 21 Century Community

1,000

Learning Centers

SI Safe and Drug-Free Schools

654

644

SI Magnet Schools

110

SI Charter Schools

200

SI Charter Schools Facilities

100

SI State Assessments

387

SI Rural Education

163

SI Fund for the Improvement of

833

311

Education (FIE)

School Improvement, other

470

301

425

Indian Education

120

122

English Language Acquisition

and Enhancement (Bilingual and

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

Vocational Rehabilitation State

2,481

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

Incarcerated Youth Offenders

FY2003

Senate

FY2003

enacted

27,796

23,755

11,350

11,750

5,000

200

1,000

250

1,000

628

853

1,177

1,196

2,850

2,950

385

787

786

1,000

644

110

200

387

175

628

110

200

387

169

736

815

514

122

598

122

690

10,029

8,929

1,162

1,167

2,533

426

423

169

168

1,322

591

1,342

591

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

dollars, non-add)

11,314

10,863

11,200

Pell Grants a, b

Supplemental Educational

725

Opportunity Grants

Federal Work-Study

1,011

Federal Perkins Loans, Capital

100

Contributions

Federal Perkins Loans, Loan

Cancellations

Leveraging Educational

Assistance Partnership (LEAP)

Loan Forgiveness for Child Care

Federal Family Education Loans,

Administration

Office of Postsecondary Education (OPE)

Aid for Institutional Development

439

454

Fund for the Improvement of

181

Postsecondary Education (FIPSE)

Federal TRIO Programs

803

810

GEAR UP

285

Higher Education, other

323

302

316

Howard University

237

240

College Housing and Academic

Facilities Loans, Administration

Office of Educational Research and Improvement (OERI)

Research and Statistics

386

433

398

Multi-year Grants

Departmental Management

537

539

Student Aid Administration Costs

932

105

Student Aid Reclassification

-795

Proposal

TOTALS, DEPARTMENT OF EDUCATION

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

100

475

127

173

833

295

318

240

833

295

325

240

339

539

105

393

540

105

60,696

55,979

Current year: FY2003

37,406

37,832

41,940

38,724

Advance year: FY2004

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).

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.

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.

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

FY2003

request

FY2003

House

FY2003

Senate

FY2003

enacted

$9.2

$9.3

$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

FY2003

request

Corporation for National and Community Service (CNCS)

FY2003

House

FY2003

Senate

FY2003

enacted

Volunteers in Service to America

(VISTA)

Special Volunteer Programs

National Senior Volunteer Corps

206

213

217

213

217

Program Administration

328

396

350

351

356

Corporation for Public

Broadcasting (CPB), 2-Year

Advance

380

395

390

CPB current year (non-add)

350

365

CPB Digitalization Program

Federal Mediation and

Conciliation Service

Federal Mine Safety and Health

Review Committee

Institute of Museum and Library

Services (IMLS) c

225

210

203

245

–Museum Services (non-add)

N/S

–Library Services (non-add)

198

181

N/S

Medicare Payment Advisory

Commission

National Commission on

Libraries and Information Science

National Council on Disability

National Education Goals Panel

< 0.5

National Labor Relations Board

227

233

227

238

239

National Mediation Board

Occupational Safety and Health

Review Commission

241

228

230

228

230

CNCS subtotal

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

SSA Special Benefits for

Disabled Coal Miners

(mandatory)

441

397

SSA Supplemental Security

Income (SSI) (mandatory)

29,440

32,162

32,170

SSA SSI, Discretionary

2,927

2,936

SSA Limitation on Administrative

Expenses

4,649

5,000

SSA Office of Inspector General

SSA subtotal

37,966

40,598

40,606

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

Advance year: FY2005

380

395

390

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.

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.

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.

Appropriations totals include discretionary and mandatory funds, and may be subject to additional

scorekeeping and other adjustments.

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.

! 2 Continuing Resolution, P.L. 107-235 (H.J.Res. 112), extended

the provisions of P.L. 107-229 through October 11, 2002.

! 3 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.

! 4 Continuing Resolution, P.L. 107-244 (H.J.Res. 123), extended

the provisions of P.L. 107-229 through November 22, 2002.

! 5 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.

! 6 Continuing Resolution, P.L. 108-2 (H.J.Res. 1), extended the

provisions of P.L. 107-229 through January 31, 2003.

! 7 Continuing Resolution, P.L. 108-4 (H.J.Res. 13), extended the

provisions of P.L. 107-229 through February 7, 2003.

! 8 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.

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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.

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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)

Estimated

budget

authority

Percent of

federal budget

$2,085.0

100.0%

Department of Labor

59.4

2.8%

Department of Health and Human Services

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%

Budget category

Total federal budget authority

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?

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.

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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.

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

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