FY2014 Continuing Resolutions: Overview of Components
Released: 2014-02-24T00:00:00

Introduction

Congress uses an annual appropriations process to fund discretionary spending, which supports the projects and activities of most federal government agencies. The timetable associated with this process requires that the enactment of these regular appropriations bills occurs prior to the beginning of the fiscal year (October 1). If regular appropriations are not enacted by that time, continuing appropriations (often referred to as "continuing resolutions" or CRs) may be used to provide funding until the annual appropriations process has been concluded.

A total of four CRs were enacted during the FY2014 appropriations process. No regular appropriations acts for FY2014 were enacted by the start of the fiscal year. A "narrow" CR to provide funds for certain Department of Defense (DOD) and Department of Homeland Security (DHS) activities in the absence of a "broad" CR or annual appropriations (the Pay Our Military Act; H.R. 3210 ; P.L. 113-39 , 113 th Congress) had become law. As a result, a funding gap commenced for affected projects and activities on October 1. During the funding gap, one additional CR was enacted (the Department of Defense Survivor Benefits Continuing Appropriations Resolution, 2014; H.J.Res. 91 ; P.L. 113-44 ), to provide appropriations for military death gratuities. After 16 full days, the funding gap was terminated on October 17 with the enactment of a "broad" CR that funded projects and activities funded in the previous fiscal year (the Continuing Appropriations Act, 2014; H.R. 2775 ; P.L. 113-46 ). This funding was to expire on January 15, 2014. To allow additional time to conclude the annual appropriations process, that funding was extended to January 18, 2014 (Making further continuing appropriations for fiscal year 2014, and for other purposes; H.J.Res. 106 ; P.L. 113-73 ).

This report summarizes the components of the four FY2014 continuing resolutions. For information on the congressional consideration of FY2014 appropriations measures, including these four CRs, see CRS Report R43338, Congressional Action on FY2014 Appropriations Measures , by [author name scrubbed]. For general information on the content of CRs and historical data on CRs enacted between FY1977 and FY2014, see CRS Report R42647, Continuing Resolutions: Overview of Components and Recent Practices , by [author name scrubbed].

Enacted FY2014 Continuing Resolutions

Table 1 summarizes the contents of the four FY2014 CRs with regard to their coverage, expiration, formula, anomalies, and estimated annualized amount of discretionary spending.

C overage relates to the purposes for which funds are provided. The projects and activities funded by a CR are typically specified with reference to regular and supplemental appropriations acts from the previous fiscal year. When a CR refers to one of those appropriations acts and provides funds for the projects and activities included in such an act, the CR is often referred to as "covering" that act. The duration of a CR refers to the period of time for which budget authority is provided for covered activities. This duration is limited by an expiration date, which may occur prior to the close of the fiscal year ("temporary" or "interim" continuing appropriations), or may extend through the end of the fiscal year ("full-year" continuing appropriations). That expiration date may be superseded by the enactment of annual appropriations or a further CR. A formula is typically used by CRs to provide budget authority at a restricted level without prescribing a specific amount. The formula is used to calculate an annualized rate of budget authority for each project and activity. Alternatively, a continuing appropriations act may provide specific amounts for covered projects and activities in the text of the act, or by reference. Anomalies are provisions in a CR that designate exceptions to the duration, formula, or purpose for which any referenced funding or other authority is extended. The Congressional Budget Office (CBO) has estimated the annualized discretionary spending for FY2014 under these CRs using two different measures: "total regular appropriations" and "total spending." Total regular appropriations is an estimate of only the annualized discretionary budget authority that is subject to the Budget Control Act (BCA) discretionary spending limits. Total spending is an estimate of annualized discretionary budget authority that includes budget authority not subject to the discretionary spending limits because it was designated for the purposes of Section 251(b) of the Balanced Budget and Emergency Control Act of 1985 (Title II of P.L. 99-177 , 2 U.S.C. 900-922; BBEDCA).

The contents of these four FY2014 CRs are discussed further in the subsections below.

P.L. 113-39 (Pay Our Military Act)

The first CR to be enacted for FY2014 was an "automatic" CR, meaning that it provided funding for specified activities that would become available automatically during a FY2014 funding gap, and expire when an applicable regular appropriations act or CR was enacted.

This CR provided a mechanism to cover projects and activities in three different categories:

(1) Pay and allowances to members of the Armed Forces (as defined in section 101(a)(4) of title 10, United States Code), including reserve components thereof, who perform active service during such period;

(2) Pay and allowances to the civilian personnel of the Department of Defense (and the Department of Homeland Security in the case of the Coast Guard) whom the Secretary concerned determines are providing support to members of the Armed Forces described in paragraph (1); and

(3) Pay and allowances to contractors of the Department of Defense (and the Department of Homeland Security in the case of the Coast Guard) whom the Secretary concerned determines are providing support to members of the Armed Forces described in paragraph (1).

The duration of the budget authority that was provided by this mechanism began on October 1, 2013, due to the absence of enacted regular or continuing appropriations, and terminated on October 17, 2013, with the enactment of the Continuing Appropriations Act of 2014 ( P.L. 113-46 ).

The formula for this mechanism provided FY2014 funds for each day of a funding gap at an indefinite level for all covered projects and activities (i.e., "such sums as are necessary").

There were no anomalies in this CR.

No CBO cost estimate was issued while the measure was under consideration.

P.L. 113-44 (Department of Defense Survivor Benefits Continuing Appropriations Resolution, 2014)

The second CR for FY2014 was the Department of Defense Survivor Benefits Continuing Appropriations Resolution, 2014 ( H.J.Res. 91 ; P.L. 113-44 ), which was enacted on October 10, 2013. This CR provided funds to cover the following activities in the Department of Defense "Operation and Maintenance" and "Military Personnel" accounts:

(1) The payment of a death gratuity under sections 1475-1477 and 1489 of title 10, United States Code.

(2) The payment or reimbursement for funeral and burial expenses authorized under sections 1481 and 1482 of title 10, United States Code.

(3) The payment or reimbursement of authorized funeral travel and travel related to the dignified transfer of remains and unit memorial services under section 481f of title 37, United States Code.

(4) The temporary continuation of a basic allowance of housing for dependents of members dying on active duty, as authorized by section 403(l) of title 37, United States Code.

The duration of funds under this CR began on October 10, 2013, and was to terminate on December 15, 2013, unless superseded by the enactment of a regular or continuing appropriations act. These funds were superseded by the enactment of P.L. 113-46 , on October 17, 2013.

The funding formula for each covered project and activity was at the rate the projects and activities were funded in the previous year's appropriations act (the Department of Defense Appropriations Act, 2013; Division C of P.L. 113-6 ). This rate was calculated based on the amount of funding available for that project or activity under the terms of that act, including the effects of any provisions reducing FY2013 budget authority. The formula also included any reduction that applied to those FY2013 funds pursuant to the March 1 presidential sequestration order.

There were no anomalies in this CR.

According to CBO, the total amount of annualized budget authority for regular appropriations in this CR was $116 million. When spending was included in the calculation that was designated under Section 251(b) of the BBEDCA (for OCO/GWOT), the total CBO-estimated amount of annualized budget authority in the CR was $150 million.

P.L. 113-46 (Continuing Appropriations Act, 2014)

The third CR for FY2014 was the Continuing Appropriations Act, 2014 ( H.R. 2775 ; P.L. 113-46 ; hereinafter "the FY2014 CR"), which was enacted on October 17, 2013. This act superseded the funding provided under the two narrow FY2014 CRs.

Coverage

This CR broadly covered all 12 regular appropriations bills by providing budget authority for projects and activities funded in FY2013 by Divisions A-F of the Consolidated and Further Continuing Appropriations Act, 2013 ( P.L. 113-6 ; Hereinafter, "the FY2013 Consolidated Act"), with an exception. This included any FY2013 budget authority that was designated as for "Overseas Contingency Operations/Global War on Terrorism" (OCO/GWOT), "continuing disability reviews and redeterminations," "health care fraud abuse control," and "disaster relief," and thus exempt from the statutory discretionary spending limits.

Budget authority was provided by the FY2014 CR under the same authority and conditions, and to the same extent and manner, as was provided in the FY2013 Consolidated Act. In addition, under the terms of this CR, none of the funds provided were to be used to initiate or resume an activity for which budget authority was not available in FY2013. Effectively, this provision extended many of the provisions in the FY2013 Consolidated Act that stipulated or otherwise placed limits on agency authorities during FY2013. A goal of these and similar provisions in other CRs, as well as many of the other provisions discussed in the sections below, was to protect the ability for Congress to ultimately provide annual funding in the manner and for the purposes it chooses in whatever final appropriations measures are enacted.

Duration and Expiration

Funding in the FY2014 CR was effective as of October 1, 2013, and was to terminate on January 15, 2014. This CR also provided that budget authority for some or all projects and activities could be superseded by the enactment of the applicable regular appropriations act or another CR prior to or on January 15. For projects and activities funded in the FY2014 CR that were not subsequently funded in the applicable full-year appropriations act enacted prior to or on January 15, budget authority under the CR would immediately cease upon such enactment.

Formula

The FY2014 CR provided budget authority for projects and activities that were funded in the FY2013 Consolidated Act, at the rate that they were funded therein. This rate was calculated based on the amount of funding available under the terms of the previous year's appropriations act, including any provisions reducing FY2013 budget authority that were included in those acts. More broadly, this rate was also to reflect the impact of the across-the-board rescissions in Division G of the Consolidated and Further Continuing Appropriations Act of 2013 ( P.L. 113-6 ), as well as any reduction that occurred pursuant to the March 1 presidential sequestration order.

Anomalies and Extensions of Expiring Authorities

Many of the anomalies in this CR affected the funding levels that would otherwise be provided by the formula for covered activities. For example, a provision in the CR stated,

Notwithstanding section 101, amounts are provided for "The Judiciary—Courts of Appeals, District Courts, and Other Judicial Services—Salaries and Expenses" at a rate of operations of $4,820,181,000: Provided, That notwithstanding section 302 of Division C, of P.L. 112-74 as continued by P.L. 113-6 , not to exceed $25,000,000 shall be available for transfer between accounts to maintain minimum operating levels.

In this and other such instances, an alternative amount of annualized funding is provided for a specified project or activity, which may be higher or lower than what the CR's formula would provide.

Other anomalies affected the purpose for which funds could be spent with reference to the FY2013 appropriations acts, or the duration of the authority to spend such funds. For example, the CR provides,

Notwithstanding any other provision of this joint resolution, the District of Columbia may expend local funds under the heading "District of Columbia Funds" for such programs and activities under title IV of H.R. 2786 (113 th Congress), as reported by the Committee on Appropriations of the House of Representatives, at the rate set forth under "District of Columbia Funds—Summary of Expenses" as included in the Fiscal Year 2014 Budget Request Act of 2013 (D.C. Act 20-127), as modified as of the date of the enactment of this joint resolution.

In effect, this provision allowed for the District of Columbia to spend local funds for an alternative set of purposes (and amounts) than what would have been provided under Section 101, as well as to spend those funds beyond the expiration date in Section 106.

Provisions in the CR also extended expiring statutory authorities. For example, the CR provided,

The authority provided by sections 1205 and 1206 of the National Defense Authorization Act for Fiscal Year 2012 ( P.L. 112-81 ) shall continue in effect, notwithstanding subsection (h) of section 1206, through the earlier of the date specified in section 106(3) of this joint resolution or the date of the enactment of an Act authorizing appropriations for fiscal year 2014 for military activities of the Department of Defense.

Extensions of statutory authorities in the CR, unless otherwise indicated, were in effect through January 15, 2014.

Estimated Annualized Discretionary Spending and Statutory Budget Enforcement

According to CBO, the total amount of annualized budget authority for regular appropriations subject to the BCA limits (including projects and activities funded at the rate for operations and anomalies) was $986.3 billion. When spending was included in the CBO estimate that was designated under Section 251(b) of the BBEDCA for OCO/GWOT, continuing disability reviews and redeterminations, health care fraud abuse control, or disaster relief, the total amount of annualized budget authority in the CR was $1.088 trillion.

At the time it was enacted, the annualized levels of spending in the FY2014 CR would have exceeded one of the two statutory discretionary spending limits. While nondefense spending in the CR was estimated by CBO to be the equivalent of an annual level of $468.3 billion, which was about $1 billion below the existing nondefense limit, the estimate for defense spending was $518 billion, about $20 billion above the existing defense limit. The BCA limits, however, were not to be enforced until 15 calendar days after the congressional session adjourned sine die . In the interim, the Bipartisan Budget Act ( P.L. 113-67 ) amended the FY2014 limits to be $520.5 billion in defense spending, and $491.8 billion in nondefense spending (about $1.012 trillion total). Spending in the FY2014 CR was about $2.5 billion below the amended defense limit, and $23.5 billion below the amended nondefense limit.

P.L. 113-73 (Making Further Continuing Appropriations for Fiscal Year 2014, and for Other Purposes)

The fourth CR for FY2014 extended the expiration date of the previous CR ( P.L. 113-46 ) to January 18, 2014. No other amendments to the FY2014 CR were made by the act.