Congress Approves FY22 Appropriations with Six Months Until FY23
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On Thursday night, the Senate voted 68-31 to pass a $1.5 trillion appropriations package funding the federal government through the rest of fiscal year (FY) 2022. President Biden signed the bill into law shortly after. The House of Representatives passed the measure (H.R.2471) on Wednesday night with a vote of 361 to 69 and a fourth continuing resolution as a safety measure to prevent a government shutdown.
Having operated under continual resolutions for nearly six months, financial officers and federal managers have relatively little time to adjust to and spend appropriately an entire year's worth of aligned funds before September 30 when FY 2023 begins. The FY22 appropriations budget provides $782 billion for defense-related accounts and $730 billion for non-defense accounts. Non-defense spending secured a $46 billion increase, plus a $42 billion increase in defense spending.
A summary of the omnibus is available by subcommittee:
Hiring, Retention Initiatives
In federal human capital management, hiring has long been a sore spot. A provision in the omnibus requires the Office of Personnel Management (OPM) and the Office of Management and Budget (OMB) to brief lawmakers within 90 days about the federal hiring process and how officials plan to improve it. OPM is currently overhauling the way it evaluates applicants for federal jobs, emphasizing on-the-job experience and skill sets measured by agency experts instead of educational attainment and self-reported proficiency.
The VA Nurse and Physician Assistant RAISE Act (H.R. 5575) passed as part of the omnibus bill will allow advanced practice registered nurses and physician assistants an increase in salary, to reduce record turnover among the Department of Veterans Affairs' (VA) health care workers.
Rep. Lauren Underwood (D-IL) introduced the bill late last year; she explained that the pandemic had exacerbated VA's staffing shortages, and that the bill would allow VA to fill vacancies in high-cost and rural areas.
“Increasing these pay limitations is the right thing to do for the health care professionals who make significant sacrifices to care for those who have served our country," stated Rep. Underwood, "It’s also a critical step to ensure that our veterans have access to the high-quality care they deserve, from the very best clinicians our country has to offer."
As department nurses are experiencing their highest turnover rate in 15 years, VA Secretary Denis McDonough has stated the Veterans Health Administration (VHA) workforce is the department's number-one legislative priority.
A provision in the omnibus requires the VHA to provide the House and Senate appropriations committees with annual reports detailing workforce shortages, including staffing shortages in women's health, rural areas, and remote areas, as well as plans to address workforce issues. However, lawmakers note the VHA has made significant progress in reducing the hiring time for workers. They direct OPM, as part of its own briefings to Congress, to highlight the process reforms implemented by the VHA and other agencies during the pandemic to reduce hiring delays.
The Labor Department will see $13.2 billion in discretionary appropriations for training and apprenticeship programs, state unemployment insurance, and veterans’ employment. A total of $1.8 billion is allocated specifically for worker protection agencies, including the Occupational Safety and Health Administration (OSHA), an increase of $42 million over the level for FY 2021.
No later than 180 days after enactment, the omnibus bill requires the General Services Administration (GSA) to provide the committees with an update on the "future of federal office space." Congress is particularly interested in how GSA can reduce federal agencies' need for office space based on lessons learned during the pandemic as well as the prospect of building a new FBI headquarters in the suburbs of Maryland or Virginia. In addition, the bill provides $209 million to the Department of Homeland Security (DHS) to continue construction of a consolidated campus at Saint Elizabeths' West Campus in the District.
Tax Administration
Through the spending deal, the Internal Revenue Service (IRS) will have its largest budget increase since 2001 with $12.6 billion in funding, as well as direct hiring authority which will allow it to bring on employees quickly to address the backlog of tax returns and correspondence.
According to the Professional Managers Association (PMA), which represents the interests of IRS managers and non-collective bargaining unit employees, the problem plaguing the IRS goes beyond the funding amount itself, but Congress' inability to fund the government on a timely basis.
“Congress passed three continuing resolutions this cycle, they are five months late on FY 2022 funding, and are supposed to be appropriating FY 2023 funds in just six months. The constant inability of Congress to fund the government adequately and on time has widespread ramifications on long-term planning, mission delivery, and taxpayer services,” stated PMA Executive Director Chad Hooper.
While the funding will allow the IRS to take the first step toward rebuilding after severe budget and staff cuts for the past two decades, Congress has not provided the IRS with multi-year funding to modernize its IT system, as the agency and stakeholders have requested repeatedly. The oversight does not appear to be aligned with recent congressional requests given that technology modernization is necessary to improve customer service, eliminate the backlog of tax returns, and reduce burdens associated with paper processing.
Infrastructure
The omnibus provides $775 million in infrastructure investments, unlocking a historic amount of funding from the bipartisan infrastructure bill. By implementing sections of the Infrastructure Investment and Jobs Act (H.R.3684), funds will be allocated to rebuild infrastructure with investments in airports, highways, transit, passenger rail, and port systems.
Appropriations allocated $65.7 billion—a $5.34 billion or 8.9 percent increase from FY 2021—to the Department of Housing and Urban Development (HUD). Funding increases will support vulnerable populations, and includes stipulations for public housing safety, maintenance, and improvement investments. Further, housing choice vouchers will be issued to up to 25,000 homeless individuals and families, and there will be more than 4,000 new low-income housing units for seniors and people with disabilities.
