Appropriations for FY2004: Labor, Health and Human Services, and Education

CRS Report for Congress
Appropriations for FY2004:
Labor, Health and Human Services,
and Education
Updated March 10, 2004
Paul M. Irwin
Specialist in Social Legislation
Domestic Social Policy Division


Congressional Research Service ˜ The Library of Congress

The annual consideration of appropriations bills (regular, continuing, and supplemental) by
Congress is part of a complex set of budget processes that also encompasses the
consideration of budget resolutions, revenue and debt-limit legislation, other spending
measures, and reconciliation bills. In addition, the operation of programs and the spending
of appropriated funds are subject to constraints established in authorizing statutes.
Congressional action on the budget for a fiscal year usually begins following the submission
of the President’s budget at the beginning of each annual session of Congress.
Congressional practices governing the consideration of appropriations and other budgetary
measures are rooted in the Constitution, the standing rules of the House and Senate, and
statutes, such as the Congressional Budget and Impoundment Control Act of 1974.
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
Appropriations Subcommittees on Labor, Health and Human Services, and Education, and
Related Agencies. It summarizes the status of the bill, its scope, major issues, funding
levels, and related congressional activity, and is updated as events warrant. The report lists
the key CRS staff relevant to the issues covered and related CRS products.
NOTE: A Web version of this document with active links is
available to congressional staff at:
[ h t t p : / / w w w .crs.gov/products/appropriati o ns / a pppa g e . s ht m l ] .



Appropriations for FY2004: Labor, Health and
Human Services, and Education
Summary
This report tracks the progress of the bill providing FY2004 appropriations for
the Departments of Labor, Health and Human Services, and Education, and Related
Agencies (L-HHS-ED). This legislation provides discretionary funds for three major
federal departments and related agencies. The report summarizes L-HHS-ED
discretionary funding issues but not authorization or entitlement issues.
On February 3, 2003, the President submitted the FY2004 budget request to the
Congress. The L-HHS-ED request was $135.6 billion in discretionary funds; the
comparable FY2003 amount was $134.7 billion, enacted primarily through
P.L. 108-7. The House and Senate FY2004 L-HHS-ED proposals — H.R. 2660
(H.Rept. 108-188) and H.R. 2660 (S. 1356, S.Rept. 108-81), respectively — were
combined in H.R. 2673 (H.Rept. 108-401), the Consolidated Appropriations Act,
2004, which provides $140.1 billion of discretionary funds for L-HHS-ED, prior to
a reduction (see page 9). Five continuing resolutions, P.L. 108-84 (H.J.Res. 69), as
amended, provided temporary FY2004 funding until H.R. 2673 was signed into law,
as P.L. 108-199, on January 23, 2004.
Department of Labor (DOL): DOL discretionary appropriations were $11.8
billion in FY2003; $11.9 billion is enacted for FY2004. Most programs would be
funded approximately at FY2003 levels. DOL activities include the Workforce
Investment Act (WIA) and the Bureau of International Labor Affairs. Restrictions
on new DOL regulations for overtime pay were not included in P.L. 108-199.
Department of Health and Human Services (HHS): HHS discretionary
appropriations were $60.1 billion in FY2003; $62.1 billion is enacted for FY2004.
The National Institutes of Health (NIH) would be increased by $1.0 billion, and the
Centers for Disease Control and Prevention (CDC) by $260 million. Community
Health Centers, Substance Abuse and Mental Health Services Administration
(SAMHSA), Low-Income Home Energy Assistance Program (LIHEAP), and Head
Start would receive increases of at least $100 million.
Department of Education (ED): ED discretionary appropriations were $53.1
billion in FY2003, $56.0 billion is enacted for FY2004. Title I Part A Grants to
Local Educational Agencies would be increased by $728 million, Individuals with
Disabilities Education Act (IDEA) Part B Grants to States by $1.3 billion, and Pell
Grants by $713 million. Impact Aid, Teacher Quality, and Perkins Vocational
Education programs would be funded at approximately their FY2003 levels.
Related Agencies: Discretionary appropriations for related agencies were $9.6
billion in FY2003, $10.2 billion is enacted for FY2004. Supplemental Security
Income (SSI) discretionary activities would be increased by $157 million, and
Administrative Expenses of the Social Security Administration would be increased
by $320 million. The Corporation for Public Broadcasting (CPB) and the
Corporation for National and Community Service (CNCS) would be funded at about
their FY2003 levels.



Area of ExpertiseNameTelephone
CoordinatorPaul M. Irwin7-7573
Department of Labor
Job training and employment servicesAnn Lordeman7-2323
Labor market informationLinda Levine7-7756
Labor standards enforcementWilliam G. Whittaker7-7759
Mine Safety and Health AdministrationEdward B. Rappaport7-7740
Occupational Safety and Health AdministrationEdward B. Rappaport7-7740
Older Americans Act, employment programsCarol V. OShaughnessy7-7329
Pension and Welfare BenefitsPaul J. Graney7-2290
Trade Adjustment AssistancePaul J. Graney7-2290
Unemployment compensationCelinda Franco7-7360
Veterans EmploymentPaul J. Graney7-2290
Welfare-to-WorkGene Falk7-7344
Workforce Investment ActAnn Lordeman7-2323
Department of Health and Human Services
Abortion, legal issuesKaren J. Lewis7-6190
Abortion, legal issuesJon Shimabakuro7-7990
Abortion proceduresJudith A. Johnson7-7077
AIDS, Ryan White programsJudith A. Johnson7-7077
Bioterrorism, HHS fundingHolly Harvey7-4913
Bioterrorism, HHS fundingC. Stephen Redhead7-2261
Bioterrorism, HHS fundingPamela W. Smith7-7048
Cancer researchJudith A. Johnson7-7077
Centers for Disease Control and PreventionPamela W. Smith7-7048
Child care and developmentMelinda Gish7-4618
Child welfareEmilie Stoltzfus7-2324
Child welfareKaren Spar7-7319
Cloning, Stem Cell ResearchJudith A. Johnson7-7077
Community Health CentersSharon Kearney Coleman7-7367
Family Planning, Title XSharon Kearney Coleman7-7367
Head StartMelinda Gish7-4618
Health professions education and trainingBernice Reyes-Akinbileje7-2260
Immigration and refugee policyRuth Wasem7-7342
ImmunizationPamela W. Smith7-7048
Low-Income Home Energy Assistance ProgramEmilie Stoltzfus7-2324
Maternal and Child Health Block GrantSharon Kearney Coleman7-7367
MedicaidElicia Herz7-1377
MedicareJennifer O’Sullivan7-7359
Needle exchange, AIDSJudith A. Johnson7-7077
NIH, health research policyPamela W. Smith7-7048
NIH, health research policyJudith A. Johnson7-7077
Older Americans ActCarol V. OShaughnessy7-7329
Social Services Block GrantMelinda Gish7-4618



Area of ExpertiseNameTelephone
State Childrens Health Insurance ProgramEvelyne Baumrucker7-8913
Stem Cell Research, CloningJudith A. Johnson7-7077
Substance Abuse and Mental Health ServicesC. Stephen Redhead7-2261
Welfare reformVee Burke7-7304
Welfare reformGene Falk7-7344
Department of Education
Adult education and literacyPaul M. Irwin7-7573
After-school programsGail McCallion7-7758
Assessment in educationWayne C. Riddle7-7382
Bilingual educationJeffrey J. Kuenzi7-8645
Charter SchoolsDavid Smole7-0624
Education block grantsRebecca R. Skinner7-6600
Education of the Disadvantaged, Title IWayne C. Riddle7-7382
Education technologyCharmaine Jackson7-4894
English Language AcquisitionJeffrey J. Kuenzi7-8645
Higher EducationJames B. Stedman7-7356
Impact AidRebecca R. Skinner7-6600
Indian EducationRoger Walke7-8641
Pell GrantsJames B. Stedman7-7356
Reading programsGail McCallion7-7758
Rehabilitation ActSidath Panangala7-0623
Safe and Drug-Free Schools and CommunitiesEdith Fairman Cooper7-7019
School facilitiesSusan Boren7-6899
Special education, IDEARichard N. Apling7-7352
Special education, IDEA, legal issuesNancy Lee Jones7-6976
Student aidJames B. Stedman7-7356
Student loansAdam Stoll7-4375
Teacher recruitment, preparation, and trainingJeffrey J. Kuenzi7-8645
21st Century Community Learning CentersGail McCallion7-7758
Vocational and Technical EducationRebecca R. Skinner7-6600
Related Agencies
Corporation for National and Community ServiceAnn Lordeman7-2323
(VISTA, Senior Corps)
Corporation for Public BroadcastingGlenn McLoughlin7-7073
Library ServicesGail McCallion7-7758
Museum ServicesSusan Boren7-6899
National Labor Relations BoardGail McCallion7-7758
National Labor Relations Board, legal issuesJon Shimabukuro7-7990
Railroad Retirement BoardDawn Nuschler7-6283
Social Security AdministrationGeoffrey Kollmann7-7316
Supplemental Security IncomeAlexa Matthews7-7382



Contents
Most Recent Developments..........................................1
P.L. 108-199 (H.R. 2673) Enacted.............................1
Senate Bill H.R. 2660 (S. 1356) Passed.........................1
House Bill H.R. 2660 Passed.................................1
President’s Budget Submitted................................1
Summary and Key Issues............................................2
Program Level and Current Year Appropriations.....................3
President’s Request............................................4
House Bill...................................................6
Senate Bill...................................................7
Public Law...................................................8
“Across-the-Board” Reductions for FY2004.....................9
Funding Highlights........................................9
Modification of Existing Programs and Activities...............10
Earmarks for Specific Projects...................................11
302(a) and 302(b) Allocation Ceilings.............................11
Advance Appropriations.......................................12
Major Funding Trends.........................................13
World Wide Web Sites........................................14
Department of Labor..............................................16
Key Issues..................................................16
President’s Request.......................................16
House Bill..............................................17
Senate Bill..............................................17
Public Law..............................................17
Overtime Pay Regulation...................................17
CRS Products................................................18
World Wide Web Sites........................................18
Detailed Appropriations Table...................................18
Department of Health and Human Services.............................21
Key Issues..................................................21
President’s Request.......................................21
House Bill..............................................22
Senate Bill..............................................23
Public Law..............................................23
Abortion: Funding Restrictions..............................23
Embryonic Stem Cell Research: Funding Restrictions............24
CRS Products................................................24
World Wide Web Sites........................................25
Detailed Appropriations Table...................................25
Department of Education...........................................28
Key Issues..................................................28
President’s Request.......................................28
House Bill..............................................29



Public Law..............................................30
Pell Grants..............................................30
Student Aid Program Administration.........................31
IDEA Part B Grants to States................................31
Forward Funding and Advance Appropriations..................32
CRS Products................................................33
World Wide Web Sites........................................34
Detailed Appropriations Table...................................34
Related Agencies.................................................37
Key Issues..................................................37
President’s Request.......................................37
House Bill..............................................38
Senate Bill..............................................38
Public Law..............................................38
CRS Products................................................38
World Wide Web Sites........................................39
Detailed Appropriations Table...................................39
Related Legislation...............................................42
FY2004 Continuing Resolution, P.L. 108-84 (H.J.Res. 69)............42
FY2004 Budget Resolution, H.Con.Res. 95/S.Con.Res. 23............43
FY2003 Wartime Supplemental, P.L. 108-11 (H.R. 1559).............43
FY2003 Omnibus Appropriations, P.L. 108-7 (H.J.Res. 2).............44
“Across-the-Board” Reductions for FY2003....................44
FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111)..........44
Appendix A: Terminology.........................................45
Appendix B: Scope of L-HHS-ED Appropriations......................46
List of Tables
Table 1. Legislative Status of Labor, Health and Human Services, and Education
Appropriations, FY2004........................................1
Table 2. Summary of L-HHS-ED Appropriations........................4
Table 3. FY2004 302(b) Discretionary Allocations for L-HHS-ED..........12
Table 4. L-HHS-ED Discretionary Funding Trends from FY1999..........14
Table 5. Department of Labor Discretionary Appropriations...............16
Table 6. Detailed Department of Labor Appropriations...................19
Table 7. Department of Health and Human Services
Discretionary Appropriations....................................21
Table 8. Detailed Department of Health and Human Services Appropriations.26
Table 9. Department of Education Discretionary Appropriations...........28
Table 10. Detailed Department of Education Appropriations..............35
Table 11. Related Agencies Discretionary Appropriations.................37
Table 12. Detailed Related Agencies Appropriations.....................40
Table B.1. Scope of the L-HHS-ED Bill, FY2003.......................46



Appropriations for FY2004:
Labor, Health and Human Services,
and Education
Most Recent Developments
P.L. 108-199 (H.R. 2673) Enacted. Following a series of five continuing
resolutions, the Departments of Labor, Health and Human Services, and Education,
and Related Agencies (L-HHS-ED) Appropriations Act, 2004, was enacted on
January 23, 2004, as Division E of P.L. 108-199, the Consolidated Appropriations
Act, 2004 (H.R. 2673, H.Rept. 108-401). Prior to the application of a 0.59%
reduction for most discretionary programs (see page 9), the act provides $140.1
billion for L-HHS-ED discretionary programs.
Senate Bill H.R. 2660 (S. 1356) Passed. On September 10, 2003, the
Senate amended and passed H.R. 2660 (S. 1356, S.Rept. 108-81); the bill would
provide $139.3 billion in discretionary appropriations for L-HHS-ED programs.
House Bill H.R. 2660 Passed. On July 10, 2003, the House amended and
passed H.R. 2660 (H.Rept. 108-188); the bill would provide $138.3 billion in
discretionary appropriations for L-HHS-ED programs.
President’s Budget Submitted. On February 3, 2003, the President
submitted the FY2004 budget to Congress, requesting $135.6 billion in discretionary
funds for L-HHS-ED programs; $134.7 billion was the comparable FY2003 amount.
Table 1 summarizes the L-HHS-ED legislative status.
Table 1. Legislative Status of Labor, Health and Human
Services, and Education Appropriations, FY2004
Subco mmit t ee Confer. Conference Public
markupH.Rept.HouseS.Rept.Senatereportreport approvalLaw
108-188 passage 108-81 passage H.Rept . 108-199
108-401H o use Sena t e H o use Sena t e
6/19/03 6/25/03 6/25/0333-23 7/10/03215-208 6/26/0325-4 9/10/0394-0 11/25/03 12/8/03242-176 1/22/0465-28 1/23/04
11-711-3(a)(b)(c)(d)(e)(f) (g)(h)
a H.R. 2660: The House Committee on Appropriations approved its version of the FY2004
L-HHS-ED appropriations on June 25, and ordered the bill reported. H.R. 2660 (H.Rept. 108-188)
was introduced and reported on July 8, 2003.



b H.R. 2660: The House passed H.Res. 312 (H.Rept. 108-192), the rule for the floor consideration
of H.R. 2660, by voice vote; see Congressional Record, Daily Edition, July 9, 2003, p. H6396-6417.
The House amended and passed H.R. 2660 on July 10, 2003; see Congressional Record, Daily
Edition, July 10, 2003, p. H6470-6581. House approval was by a vote of 215-208 (Roll Call no. 353),
p. H6581.c
S. 1356: The Senate Committee on Appropriations introduced, approved, and reported its version
of the FY2004 L-HHS-ED appropriations, S. 1356 (S.Rept. 108-81), on June 26, 2003.d
H.R. 2660: The Senate amended and passed H.R. 2660, on September 10, 2003; see Congressional
Record, Daily Edition, September 10, 2003, p. S11263-11303, S11307-11315, S11321-11341.
Included in the amendments were the provisions of S. 1356. Senate approval was by a vote of 94-0
(Roll Call no. 347), p. S11241.e
H.R. 2673: The text of the conference report H.Rept. 108-401on the Consolidated Appropriations
Act, 2004, is reprinted in the Congressional Record, Daily Edition, November 25, 2003, Book II, p.
H12323-12746; supplementary tables are printed in the Congressional Record, Daily Edition,
December 8, 2003, p. H12768-12812.f
H.R. 2673: The House approved the conference agreement on H.R. 2673, the Consolidated
Appropriations Act, 2004; see Congressional Record, Daily Edition, December 8, 2003, p. H12766-
12845. House approval was by a vote of 242 to 176 (Roll Call no. 676), p. H12845.g
H.R. 2673: The Senate approved H.R. 2673; see Congressional Record, Daily Edition, January 22,
2004, p. S129-157. Senate approval was by a vote of 65 to 28 (Roll Call no. 3), p. S156.h
Five FY2004 continuing resolutions, beginning with P.L. 108-84 (H.J.Res. 69), as amended,
provided temporary funding for most L-HHS-ED programs for the period October 1, 2003, through
January 23, 2004, the date that H.R. 2673 was signed into law as P.L. 108-199.
FY2003 L-HHS-ED appropriations were enacted in several stages, including
eight continuing resolutions — P.L. 107-229, as amended; regular FY2003
L-HHS-ED appropriations — P.L. 108-7 (H.J.Res. 2, H.Rept. 108-10), February 20,

2003; and the Emergency Wartime Supplemental Appropriations Act, 2003 —


P.L. 108-11 (H.R. 1559, H.Rept. 108-76), April 16, 2003. For additional legislative
details, see “Related Legislation” on page 42.
Note on Most Recent Data. In this report, data on FY2003 and FY2004
appropriations are based on the L-HHS-ED table in the H.R. 2673 conference report
of November 25, 2003, H.Rept. 108-401. The FY2004 conference amounts are the
pre-reduction amounts stated in the conference report, prior to the application of a
0.59% reduction for most discretionary appropriations required elsewhere in that
report (see page 9); FY2003 amounts in the conference tables are post-reduction,
reflecting the 0.65% reduction from most FY2003 discretionary programs required
by P.L. 108-7 (see page 44). 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.
Summary and Key Issues
This report describes the President’s proposal for FY2004 appropriations for
L-HHS-ED programs, as submitted to the Congress February 3, 2003, and the
congressional response to that proposal. It compares the President’s FY2004 request
to the FY2003 L-HHS-ED amounts. It tracks legislative action and congressional
issues related to the FY2004 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 42).
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 45. For a
discussion of the jurisdiction of the L-HHS-ED bill, see “Appendix B: Scope of the
L-HHS-ED Bill,” page 46.
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 FY2003, the
L-HHS-ED bill accounted for $130.2 billion (16.6%) and the Defense bill accounted
for $371.0 billion (47.4%) of the estimated $782.2 billion total for all federal
discretionary budget authority, as reported in Budget of the United States Government
Fiscal Year 2004, Table S-8. This section summarizes the larger funding changes
proposed for L-HHS-ED and related issues such as 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 FY2004, including both
discretionary and mandatory appropriations. The table shows various aggregate
measures of FY2003 enacted and FY2004 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.
!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 11).
!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 FY2004 act that cannot be spent
before FY2005 at the earliest (discussed later, page 12).



!Scorekeeping adjustments are made to account for special funding
situations; the Congressional Budget Office (CBO) monitors these
adjustments.
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)
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.
Table 2. Summary of L-HHS-ED Appropriations
($ in billions)
FY2003a FY2004 FY2004 FY2004 FY2004
Type of budget authorityfinal requestHouseSenateenacted
Discretionary appropriations
Program level: current bill for$134.7$135.6$138.3$139.3$140.1
any year
Current year: current year from132.4138.0138.0137.6139.8
any bill
Advances for future years (from21.518.919.219.319.3
the current bill)
Advances from prior years19.221.519.319.319.3
(from previous bills)
Scorekeeping adjustments0.0-0.2-0.4-1.7-0.3
Current year discretionary and mandatory funding
Discretio nary 132.4 138.0 138.0 137.6 139.8
Mand atory 290.8 325.9 332.0 326.0 332.0
Total current year423.2463.9470.0463.6471.8
Grand total of funding for L-HHS-ED bill, any year
Grand total any year$431.0$469.7$478.4$473.6$480.3
Source: Amounts are based on the FY2004 conference report H.Rept. 108-401, November 25, 2003;
FY2004 conference amounts do not reflect the cuts from most discretionary programs required
elsewhere in the conference bill (see page 9).
Note: Both FY2003 and FY2004 mandatory amounts are estimates that are subject to adjustments
after the close of their respective fiscal years.
a The FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
President’s Request
With regard to the President’s budget, the primary issues raised during
congressional consideration of any appropriations request generally relate to



proposed funding changes. The summary below notes changes proposed for FY2004
discretionary budget authority of at least $100 million compared to the FY2003
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 FY2004 request with the FY2003 funding
for many of the major programs in the L-HHS-ED bill. Overall, $135.6 billion in
discretionary appropriations at the program level is requested for L-HHS-ED, a 0.7%
increase over the comparable FY2003 amount of $134.7 billion. At the time that the
President’s FY2004 request was submitted to the Congress (February 3, 2003), the
regular FY2003 L-HHS-ED appropriations provided by P.L. 108-7 (signed into law
on February 20, 2003), had not yet been enacted.
!For Department of Labor (DOL) programs, the FY2004 request
includes a reduction of $248 million for job training programs
authorized by the Workforce Investment Act of 1998 (WIA) and a
reduction of $136 million for the Bureau of International Labor
Affairs (ILAB). Overall, $11.6 billion in discretionary
appropriations is requested for DOL, a 1.7% decrease compared to
the FY2003 amount of $11.8 billion.
!For Department of Health and Human Services (HHS) programs, the
request proposes an increase of $681 million for National Institutes
of Health (NIH). An additional $122 million is proposed for
Community Health Centers; however, the $104 million Community
Access Program would be eliminated. Other increases include an
additional $255 million for Substance Abuse and Mental Health
Services Administration (SAMHSA), $169 million for the Centers
for Medicare and Medicaid Services (CMS) Program Management,
$311 million for Low-Income Home Energy Assistance Program
(LIHEAP), $148 million for Head Start, and $101 million for Safe
and Stable Families. Requested decreases include reductions of
$312 million for Health Professions and $151 million for
Community Services Block Grant (CSBG). The request would
eliminate the $295 million Health Care and Other Facilities
program. Overall, $60.9 billion in discretionary appropriations is
requested for HHS, a 1.3% increase over the FY2003 amount of
$60.1 billion.
!For Department of Education (ED) programs, the request would
provide increases of $1.4 billion for Pell Grants, $666 million for
Title I Part A Grants to Local Educational Agencies (LEAs) for the
Education of the Disadvantaged, and $655 million for Special
Education Part B Grants to States under the Individuals with
Disabilities Education Act (IDEA). Proposed decreases would
include reductions of $172 million for Impact Aid, $394 million for
21st Century Community Learning Centers (21CCLC), $414 million
for the Fund for the Improvement of Education (FIE), $326 million
for the Perkins Vocational Education program, and $132 million for



the Fund for the Improvement of Postsecondary Education (FIPSE).
Funding would be eliminated for the $168 million Rural Education
and $161 million Smaller Learning Communities programs.
Discretionary funding of $842 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 savings of $795 million from the consolidation
of certain related expenses for student aid administrative activities.
Overall, $53.2 billion in discretionary appropriations is requested for
ED, a 0.2% increase over the FY2003 amount of $53.1 billion.
!For the related agencies, the budget proposes increases of $218
million for Supplemental Security Income (SSI) discretionary
activities and $427 million for the Limitation on Administrative
Expenses at the Social Security Administration (SSA). The budget
would not provide a two-year advance appropriations for the
Corporation for Public Broadcasting (CPB) for FY2006; $390
million was provided in the FY2003 bill (for FY2005). Overall,
$9.9 billion in discretionary appropriations is requested for related
agencies, a 3.1% increase over the FY2003 amount of $9.6 billion.
House Bill
On July 8, 2003, the House Committee on Appropriations reported its version
of the L-HHS-ED appropriations for FY2004, as H.R. 2660 (H.Rept. 108-188). The
House amended and passed H.R. 2660 on July 10, 2003. The House accepted two
amendments during floor consideration, one to require research regarding the
effectiveness of drugs and biological products and the other to increase school safety
funding. On October 2, 2003, the House voted to instruct the conferees to agree to
the Senate provisions regarding overtime regulations issued by DOL.
House Highlights. Overall, the House bill would provide program level
discretionary appropriations of $138.3 billion for L-HHS-ED programs. The
comparable amount requested by the President is $135.6 billion; the FY2003 amount
was $134.7 billion. The House 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, $125 million more than the FY2004
request. Overall, the House bill would provide $11.7 billion for
discretionary appropriations for DOL, $0.1 billion more than
requested but $0.1 billion less than the FY2003 amount.
!For HHS programs, the House bill would fund Health Professions
at a level $382 million higher than requested; the Children’s
Hospital Graduate Medical Education at $106 million higher; and
the Centers for Disease Control and Prevention (CDC) at $322
million higher. The request would eliminate the Community Access
program; the House would maintain FY2003 funding at $104
million. The House bill would reduce LIHEAP funding by $200



million; Safe and Stable Families would be $100 million less than
the request; and the Public Health and Social Services Emergency
Fund (PHSSEF) would receive $119 million less than requested.
Overall, the House bill would provide $61.2 billion for discretionary
appropriations for HHS, $0.3 billion more than requested and $1.1
billion more than the FY2003 amount.
!For ED programs, compared to the FY2004 request by the President,
the House bill would provide $1.5 billion more for all programs in
aggregate under the Elementary and Secondary Education Act of
1965 (ESEA), $222 million more for Impact Aid, $400 million more
for 21st Century Community Learning Centers, $107 million more
for FIE, $345 million more for IDEA Part B Grants to States, and
$319 million more for Perkins Vocational Education. The House
would maintain funding for two programs that would be eliminated
under the request: Rural Education and Smaller Learning
Communities. The House bill would not agree to the President’s
request to consolidate student loan administrative activities.
Overall, the House bill would provide $55.4 billion for discretionary
appropriations for ED, $2.2 billion more than requested and $2.3
billion more than the FY2003 amount.
!For related agencies, the House bill would provide a two-year
advance appropriations of $330 million for the CPB, which would
not receive funding under the request. It would provide $107
million less than requested for the SSA Limitation on
Administrative Expenses. Overall, the House bill would provide
$10.0 billion for discretionary appropriations for related agencies,
$0.1 billion more than the amount requested and $0.4 million more
than the FY2003 amount.
Senate Bill
On June 26, 2003, the Senate Committee on Appropriations reported its version
of the FY2004 L-HHS-ED appropriations, as S. 1356 (S.Rept. 108-81). The Senate
amended and passed H.R. 2660 on September 10, 2003; the provisions of S. 1356
were included in the Senate amendment to the House bill, along with several other
amendments. In total, the Senate accepted 43 amendments during floor
consideration. Many of these amendments would make funding adjustments for
specific programs which would not significantly change the size of the overall bill.
However, among the more notable amendments agreed to by the Senate was a
proposal by Senator Harkin that would prohibit a DOL regulatory change to prevent
certain workers from receiving overtime compensation, and a proposal by Senator
Dodd that would increase funding for IDEA Part B Grants to States by $1.2 billion
by means of an offset created by an extension of Customs User Fees.
Senate Highlights. Overall, the FY2004 Senate bill would provide program
level discretionary appropriations of $139.3 billion for L-HHS-ED programs. The
comparable amount requested by the President is $135.6 billion. The House bill
would provide $138.3 billion; the FY2003 amount was $134.7 billion.



!For DOL programs, the Senate bill differs in a number of respects
from the House bill, but not by as much as $100 million for any
single program. Overall, the Senate bill would provide $11.9 billion
in discretionary appropriations for DOL, $0.2 billion more than the
House bill, $0.3 billion more than requested, and $0.1 billion more
than the FY2003 amount of $11.6 billion.
!For HHS programs, the Senate bill differs in several respects from
the House bill. The Senate bill would provide $319 million more
than the House bill for NIH, $200 million more for LIHEAP, and
$151 million more for the Community Services Block Grant. The
Senate would provide $171 million less for SAMHSA. Funding
would be eliminated for the $104 million Community Access
program. The Children’s Hospital Graduate Medical Education
would not receive specific funding but would be consolidated with
Health Professions. Overall, the Senate bill would provide $61.3
billion in discretionary appropriations for HHS, $0.1 billion more
than the House bill, $0.4 billion more than requested, and $1.2
billion more than the FY2003 amount of $60.1 billion.
!For ED programs, the Senate bill differs with the House bill in
several respects. The Senate would provide $572 million less than
the House bill would provide for all ESEA programs in aggregate,
and ED Departmental Management would receive $109 million less
than the House bill. However, IDEA Part B Grants to States would
receive $1.2 billion more than the House amount. Overall, the
Senate bill would provide $55.8 billion in discretionary
appropriations for ED, $0.4 billion more than the House amount,
$2.6 billion more than requested, and $2.7 billion more than the
FY2003 amount of $53.1 billion.
!For related agencies, the Senate bill differs with the House bill for
a number of programs, but with only one program is the difference
as great as $100 million. The Senate bill would provide $5.4 billion
for the SSA Limitation on Administrative Expenses, $107 million
more than what the House bill would provide. Overall, the Senate
bill would provide $10.3 billion in discretionary appropriations for
the related agencies, $0.3 billion more than the House bill, $0.4
billion more than requested, and $0.7 billion more than the FY2003
amount of $9.6 billion.
Public Law
H.R. 2673, the Consolidated Appropriations Act, 2004, was signed into law on
January 23, 2004, as P.L. 108-199. This act combined the remaining seven FY2004
appropriations bills that had not yet been enacted into a single, omnibus bill.
Division E of the act is the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2004. Division H, the
Miscellaneous Appropriations and Offsets Act, 2004, includes additional L-HHS-ED
appropriations in Section 167. Section 168 of Division H requires reductions to be



made to FY2004 appropriations for most discretionary programs (described below).
The House approved the H.R. 2673 conference report, H.Rept. 108-401, on
December 8, 2003, by a vote of 242 to 176 (Roll Call no. 676). The Senate approved
the H.R. 2673 conference report on January 22, 2004, by a vote of 65 to 28 (Roll Call
no. 3).
“Across-the-Board” Reductions for FY2004. In an effort to meet the
overall spending limitations requested by the President, the H.R. 2673 conferees
included two reductions in discretionary appropriations — one for defense, the other
for non-defense appropriations. These provisions are specified in P.L. 108-199,
Division H, “Miscellaneous Appropriations and Offsets,” Section 168. The defense
reduction requires a rescission of $1.8 billion from unobligated balances that remain
available from the FY2001 anti-terrorism supplemental, P.L. 107-38; the FY2002
anti-terrorism supplemental, P.L. 107-117; and unobligated balances from any
appropriations for the Department of Defense.
The non-defense reduction requires a decrease of 0.59% from most domestic
discretionary appropriations found in H.R. 2673, as well as from certain FY2004
appropriations enacted separately and advance appropriations for FY2004 enacted
in previous years. This reduction will yield an estimated $2.8 billion (see
Congressional Record, Daily Edition, December 12, 2003, p. H12812; also see CRS
Report RS21684, FY2004 Consolidated Appropriations: Reference Guide). For
such eligible appropriations, the 0.59% reduction must be applied to “each
discretionary account and each item of budget authority” and to each program,
project, and activity within each such account or item. FY2004 supplemental
appropriation acts and discretionary amounts from FY2004 Defense and Military
Construction Appropriations Acts are excluded, as are advance appropriations for
FY2005 or later that would be enacted through H.R. 2673. Although the exact
percentage of the non-defense reduction procedure is specified, the actual application
and reductions for each account or line item would be determined by the Office of
Management and Budget (OMB) and the individual agencies. Within 30 days of
enactment of the bill, OMB is required to report the account and amount of each
rescission. The FY2004 conference data in this report are based on the stated
funding levels, unadjusted by the application of the required reduction procedures,
as the exact reduction for each program was not specified by the Congress.
In addition, Section 515 of the FY2004 L-HHS-ED bill requires a $50 million
reduction of funds otherwise provided for L-HHS-ED administrative and related
expenses on a pro rata basis. Within 15 days of enactment, OMB is required to
report the account and amount of each reduction.
Funding Highlights. Several L-HHS-ED programs receive FY2004 funding
above their FY2003 level, including some above the President’s request. Funding
for a few programs is provided at a level less than in FY2003. Overall, as shown in
Table 2, the FY2004 discretionary total for L-HHS-ED programs is $140.1 billion,
prior to the offsets required elsewhere in the conference agreement. The FY2004
amount is $5.4 billion (4.0%) more than the FY2003 amount of $134.7 billion; the
President requested $135.6 billion for FY2004. The FY2004 bill includes $19.3
billion in advance appropriations for FY2005 and later; the FY2003 appropriations
included $21.5 billion for FY2004 and later. Compared to FY2003 funding levels,



the FY2004 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, several funding changes are made, but none by as much
as $100 million. Overall, the conference agreement, as enacted,
provides $11.9 billion in discretionary appropriations for DOL, less
than $0.1 billion more than in FY2003.
!For HHS, compared to FY2003 amounts, $122 million more is
provided for Community Health Centers, $260 million more for the
CDC, $1.0 billion more for the NIH, $116 million more for
SAMHSA, $100 million more for CMS Program Management, $211
million more for LIHEAP, and $148 million more for Head Start.
Funding is reduced by $110 million for the PHSSEF. Overall, the
conference agreement provides $62.1 billion in discretionary
appropriations for DHHS, $2.0 billion more than in FY2003.
!For ED, funding is increased by $827 million for all ESEA
programs in aggregate, including $728 million more for the Title I
Part A Grants to LEAs, as well as $1.3 billion more for IDEA Part B
Grants to States and $713 million more for Pell Grants. Overall, the
conference agreement provides $56.0 billion in discretionary
appropriations for ED, $2.9 billion more than in FY2003.
!For Related Agencies, funding is increased by $157 million for SSI
discretionary activities and by $320 million for the SSA Limitation
on Administrative Expenses. Overall, the conference agreement
provides $10.2 billion in discretionary appropriations for the
L-HHS-ED related agencies, $0.5 billion more than in FY2003.
Modification of Existing Programs and Activities. P.L. 108-199, in
addition to enacting appropriations, authorizes various new projects or modifies
existing provisions that govern the use of appropriated funds for L-HHS-ED.
!Section 106 of Division E of P.L. 108-199 specifies the conditions
under which DOL must re-propose a rule concerning respirable coal
dust which incorporates the use of Personal Dust Monitors.
!Section 108 amends the woodworking provisions of the Fair Labor
Standards Act (FLSA) to exempt certain youth ages 14 to 18 years
old from specific FLSA requirements.
!Section 215 modifies the authority of HHS to carry out international
health activities, including programs for HIV/AIDS and other
diseases.
!Section 218 requires a report on the possible role of NIH in the
promotion of inventions and products developed with federal funds.
!Section 220 designates the Senator Paul D. Wellstone NIH Muscular
Dystrophy Cooperative Research Centers program in honor of the
late Senator.
!Section 221 allows the use of funds in support of the NIH Roadmap
for Medical Research Initiative to coordinate biomedical research
activities that transcend the capability of individual NIH institutes.



!Section 305 requires a special study for the simplification of need
analysis methodologies and applications of federal student financial
assistance programs.
!Section 516 prevents the use of L-HHS-ED funds under the Library
Services and Technology Act by any library that has not made the
certifications required by the Children’s Internet Protection Act.
!Section 517 prevents the use of L-HHS-ED funds under the ESEA
Title II Part D Enhancing Education Though Technology Act of
2001 by any elementary or secondary school that has not made the
certifications required by the Children’s Internet Protection Act.
!Section 104 of Division H of P.L. 108-199 authorizes and
appropriates $500,000 for the Commission on the Abraham Lincoln
Study Abroad Fellowship Program to promote study abroad by
students at institutions of higher education in the United States.
!Section 157 directs the DOL Pension Benefit Guaranty Corporation
(PBGC) to restore certain pension benefits under the Republic Steel
Retirement Plan.
Earmarks for Specific Projects
The earmarking of funds for specific projects in appropriations bills has become
a topic of contention for the Congress and the Administration, 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. The President has
urged the elimination of congressional earmarks in appropriations in recent years, but
the Congress has continued the practice.
In terms of numbers of L-HHS-ED earmarks, the FY2004 conference report,
H.Rept. 108-401, included an estimated 2,000 earmarks for specific L-HHS-ED
projects. The estimated number for L-HHS-ED was approximately 1,600 earmarks
in FY2002 and seven earmarks in FY1996.
In terms of dollar amounts for L-HHS-ED earmarks, the FY2004 estimated total
was $876 million, or 0.18% of the grand total L-HHS-ED appropriation. For
FY2002, the estimated amount was $1.0 billion, or 0.25% of the grand total; for
FY1996, the estimated amount was $15 million, or 0.01% of the grand total.
302(a) and 302(b) Allocation Ceilings
The maximum budget authority for annual L-HHS-ED appropriations is
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 the various 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 Committees on Appropriations
for enactment in annual appropriations. For FY2004, the Congress agreed to the
budget resolution, H.Con.Res. 95, conference report H.Rept. 108-71, on April 11,

2003. The resolution provides for an FY2004 discretionary total of $784.5 billion.


For procedural information, see CRS Report 98-721, Introduction to the Federal
Budget Process.
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 often do get
adjusted during the year as the various appropriations bills progress toward final
enactment. The 302(b) discretionary allocations for the FY2004 appropriations bills
that were agreed to by the House and Senate Committees on Appropriations are
shown in Table 3. Comparable amounts for FY2003, the President’s FY2004
budget, and the FY2004 conference agreement are also shown. Both the 302(a) and
the 302(b) allocations regularly become contested issues in their own right.
Table 3. FY2004 302(b) Discretionary Allocations for L-HHS-ED
(budget authority in billions of dollars)
FY2003 FY2004 FY2004
enactedrequestFY2004 HouseFY2004 Senateconference
comparable comparable a llo ca t io n a llo ca t io n comparable
$132.4 $138.0 $138.0 $137.6 $139.8
Source: The FY2004 House allocation is based on H.Rept. 108-228, July 22, 2003. The FY2004
Senate allocation is based on S.Rept. 108-175, October 29, 2003. Comparable amounts from the
FY2003 enacted, FY2004 request, and FY2004 conference agreement are based on the FY2004
conference report H.Rept. 108-401, November 25, 2003; the FY2004 conference amount does not
reflect the discretionary cuts required elsewhere in the bill (see page 9).
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. 108-7,
which enacted FY2003 L-HHS-ED appropriations, provided $390 million for the
Corporation for Public Broadcasting (CPB) for use in FY2005. Advance
appropriations may be used to meet several objectives. These might include the
provision of long-term budget information to 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 how they are counted in budget ceilings. Advance appropriations avoid the 302(a)
and 302(b) allocation ceilings for the current year, but must be counted in the year
in which it first becomes available. This procedure uses 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 32).
The FY1999 and FY2000 annual L-HHS-ED appropriations bills provided
significant increases in advance appropriations for discretionary programs. These
amounts stabilized at approximately $19 billion, or about 14 to 15% of L-HHS-ED
discretionary appropriations, for the period FY2000 through FY2002, then increased
to $21.5 billion in FY2003. 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 it has not
been repeated. For FY2004, the President’s request would provide L-HHS-ED
advance appropriations of $18.9 billion; the House bill, $19.2 billion; and the Senate
bill and the conference agreement, $19.3 billion. From FY1998 to the present, the
advance appropriations enacted 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, $21.5 billion;
!FY2004, as requested by the President, $18.9 billion;
!FY2004, as passed by the House, $19.2 billion;
!FY2004, as passed by the Senate, $19.3 billion; and
!FY2004, as agreed to by conference, $19.3 billion.
Section 106 of P.L. 108-84 (H.J.Res. 69), enacted September 30, 2003, amended the
FY2003 L-HHS-ED appropriations enacted by P.L. 108-7 to make a one-time
reduction to the FY2003 advance appropriations for FY2004 of $2.2 billion, and to
increase regular FY2003 appropriations by the same amount.
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
large, omnibus reconciliation bills. Table 4 shows the trend in discretionary budget
authority under the L-HHS-ED appropriations for FY1999 through FY2003.
As shown in Table 4, total L-HHS-ED discretionary funds increased by 45.5%
during this five-year period. The five-year increase is reduced to an estimated 35.8%
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 15.4% share of the federal total in FY1999 to an estimated 17.4% in
FY2003. 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 5.0% in FY1999 to an estimated 6.0% in FY2003.



Table 4. L-HHS-ED Discretionary Funding Trends from FY1999
(budget authority in billions of dollars)
Type of fundsFY1999FY2000FY2001FY2002FY2003estimate a
L-HHS-ED discretionary$89.5$87.1$110.5$123.7$130.2
L-HHS-ED discretionary in$95.9$91.5$113.3$125.3$130.2
estimated FY2003 dollars
L-HHS-ED % of all federalb15.4%14.9%16.6%16.8%17.4%
discretionary funds
L-HHS-ED % of total federal5.0%4.8%5.6%5.9%6.0%
budget authority
Total federal discretionary$581.8$584.4$663.8$734.7$749.0
Total federal budget authority$1,776.7$1,824.9$1,959.7$2,090.1$2,154.4
GDP deflator1.04771.06791.09401.10801.1221
Source: Federal totals and the GDP deflator are based on the Budget of the United States Government
Historical Tables Fiscal Year 2004, 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.
a FY2003 estimates were based on the FY2003 budget request since FY2003 appropriations were not
yet enacted at the time of submission of the FY2004 budget request in February 2003; FY2003
amounts do not include any supplemental appropriations and rescissions for L-HHS-ED and other
appropriations that were enacted for FY2003.b
Discretionary funds include both defense and non-defense activities.
World Wide Web Sites
General information on budget and appropriations may be found at these
websites. Specific L-HHS-ED agency sites are listed in relevant sections of this
report.
House Committees
[ h ttp://www.house.gov/appropriations]
[ http://www.house.gov/budget/]
Senate Committees
[ h ttp://www.senate.gov/~appropriations/]
[ h ttp://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/legi slative/sap/index .html]



Department of Labor
The FY2004 budget proposal for discretionary appropriations at the Department
of Labor (DOL) is $11.6 billion, $0.2 billion (1.7%) less than the FY2003
appropriations of $11.8 billion, as shown in Table 5. As passed, the House bill
would provide $11.7 billion; the Senate bill as passed would provide $11.9 billion;
and the conference agreement, as enacted, provides $11.9 billion, prior to offsets
required elsewhere in the conference agreement (see page 9).
Table 5. Department of Labor Discretionary Appropriations
($ in billions)
FY2003a FY2004 FY2004 FY2004 FY2004
Fundingfinal requestHouseSenateenacted
Appropriatio ns $11.8 $11.6 $11.7 $11.9 $11.9
Source: Amounts are based on the FY2004 conference report H.Rept. 108-401, November 25, 2003;
FY2004 conference amounts do not reflect the discretionary cuts required elsewhere in the conference
bill. Amounts represent discretionary programs funded by L-HHS-ED appropriations; appropriations
for mandatory programs are excluded.
a FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
Mandatory DOL programs included in the FY2003 L-HHS-ED bill were funded
at $3.1 billion, and consist of the Black Lung Disability Trust Fund ($1.0 billion),
Federal Unemployment Benefits and Allowances ($1.0 billion), Advances to the
Unemployment Insurance and Other Trust Funds ($0.5 billion), Special Benefits for
Disabled Coal Miners ($0.4 billion), Employment Standards Administration Special
Benefits programs ($0.2 billion), and Energy Employees Occupational Illness Fund
($0.1 billion).
Key Issues
President’s Request. The President’s FY2004 budget request for DOL
proposes reductions in several job training programs, and the elimination of grants
under the Bureau of International Labor Affairs (ILAB). Discretionary changes of
at least $100 million requested for DOL programs under the President’s FY2003
budget include the following:
!A reduction of $248 million is requested for programs authorized by
the Workforce Investment Act of 1998 (WIA), which is funded at
$5.2 billion in FY2003. These reductions would include a decrease
of $49 million for Dislocated Worker Assistance State Grants,
funded at $1.2 billion in FY2003; $29 million for Dislocated Worker
Assistance Secretary’s Reserve, funded at $306 million in FY2003;
and $110 million for other WIA federal activities, funded at $212
million in FY2003. No funds would be provided for the $77 million
Migrant and Seasonal Farmworkers program or the $44 million



Youth Opportunity Grants. On the other hand, $53 million more
would be provided for Job Corps, funded at $1.5 billion in FY2003.
!The ILAB would be funded at $12 million, a reduction of $136
million; $148 million is provided in FY2003. Under the request, the
ILAB grants program would be eliminated.
House Bill. The House bill, as passed, is similar to the President’s request for
DOL programs with the exception that WIA programs would be funded at $5.1
billion, $125 million more than requested but $123 million less than the FY2003
amount. In particular, Dislocated Workers Assistance programs, both State Grants
and Secretary’s Reserve, would be level funded, and funding for Migrant and
Seasonal Farmworkers would be set at $60 million, $17 million less than the FY2003
amount.
Senate Bill. The Senate bill, as passed, differs little from the House bill for
DOL programs, and in no place by as much as $100 million. WIA programs would
be funded at $5.1 billion, $64 million above the House proposal and $189 million
above the President’s request. In particular, Dislocated Worker Assistance State
Grants would receive $25 million more than the House amount, and Migrant and
Seasonal Farmworkers program would be provided an increase of $17 million;
however, the Dislocated Workers Assistance Secretary’s reserve would receive $29
million less than the House amount. For the ILAB, the Senate bill would provide
$108 million, $96 million more than the House or the request, but $40 million less
than the FY2003 amount. The Senate bill would include a rescission, estimated to
be $211 million, from unexpended Welfare-to-Work funds for formula grants to the
states; neither the President nor the House made such a proposal, and none was
enacted for FY2003.
Public Law. Under the FY2004 conference agreement, as enacted, funding
levels would change from FY2003 to FY2004 for a number of DOL discretionary
programs, but no change would be as great as $100 million. The agreement does
include a rescission of unexpended Welfare-to-Work funds for formula grants to the
states, estimated to be $176 million; the reduction would not rescind unexpended
funds estimated to be needed by the states to close out their grant programs.
Overtime Pay Regulation. Section 13(a)(1) of the Fair Labor Standards Act
(FLSA) exempts from the Act’s minimum wage and overtime pay requirements
employers of bona fide executive, administrative or professional employees. To be
classified as bona fide, workers must meet two qualifying standards established
administratively by the Secretary of Labor: an earnings threshold and a duties test.
On March 31, 2003, DOL proposed the revision of both tests. The action quickly
became contentious and legislative action was proposed that would prevent the
Department from denying overtime pay to persons currently covered under FLSA
overtime pay requirements. On July 10, 2003, the House defeated a restrictive
amendment to H.R. 2660 by Representative Obey by a vote of 210 to 213; the
amendment would have prevented DOL from reclassifying workers who are currently
eligible to receive overtime compensation. On September 10, 2003, the Senate
approved a comparable amendment proposed by Senator Harkin by a vote of 54 to
45. On October 2, 2003, the House instructed its conferees to support the Senate
provision. The White House threatened to veto an L-HHS-ED bill that includes such



a prohibition. Subsequently, the FY2004 conference agreement, as enacted,
removed all proposed restrictions on the reclassification of overtime status by DOL.
For further discussion of this issue, see CRS Report RL32088, The Fair Labor
Standards Act: A Historical Sketch of the Overtime Pay Requirements of Section
13(a)(1), and CRS Report RL31995, The Fair Labor Standards Act: Exemption of
“Executive, Administrative and Professional” Employees Under Section 13(a)(1).
For a Statement of Administration Policy responding to the proposed prohibition, see
[ http://www.whitehouse.gov/omb/legi slative/sap/108-1/s1356sap-s.pdf] .
CRS Products
CRS Report 97-724, Ergonomics in the Workplace: Is It Time for an OSHA
Standard?, by Edward Rappaport.
CRS Report 97-536, Job Training Under the Workforce Investment Act: An
Overview, by Ann Lordeman.
CRS Report RL31277, Temporary Programs to Extend Unemployment
Compensation, by Jennifer E. Lake.
CRS Report 95-742, Unemployment Benefits: Legislative Issues in the 108th
Congress, by Celinda Franco.
CRS Report RS21397, Unemployment Benefits: Temporary Extended
Unemployment Compensation (TEUC) Program, by Celinda Franco.
CRS Report RS21484, Workforce Investment Act of 1998 (WIA): Reauthorization
of Title I Job Training Programs, by Ann Lordeman.
CRS Report RS20244, The Workforce Investment Act: Training Programs Under
Title I at a Glance, by Ann Lordeman.
World Wide Web Sites
Department of Labor
[ http://www.dol.gov]
[ h ttp://www.dol.gov/_sec/budget2004/overview-toc.htm]
[ http://www.dol.gov/_sec/budget2004/tablesa.htm#authority]
Detailed Appropriations Table
Table 6 shows the appropriations details for offices and major programs of
DOL.



Table 6. Detailed Department of Labor Appropriations
($ in millions)
FY2003a FY2004 FY2004 FY2004 FY2004
Office or major programfinal requestHouseSenateenacted
Employment and Training Administration (ETA)
Training and Employment
Services (TES), Workforce899900900900900
Investment Act (WIA) Adult
Training Grants to States
WIA Youth Training9951,0011,0451,0011,001
WIA Dislocated Worker1,4611,3831,4611,4571,457
Assista nc e
–Dislocated Worker Assistance,1,1551,1061,1551,1801,180
State Grants (non-add)
–Dislocated Worker Assistance,306277306277277
Secretary’s Reserve (non-add)
WIA Migrant and Seasonal770607777
Farmwo rkers
WIA Job Corps1,5131,5661,5411,5411,546
WIA Youth Opportunity Grants440000
(YOG)
WIA Other Federal Activities212102114165180
WIA/TES subtotal5,2004,9525,0775,1415,161
Community Service Employment442440440442441
for Older Americans
Federal Unemployment Benefits9721,3381,3381,3381,338
and Allowances (mandatory)
State Unemployment Insurance
and Employment Service2,6342,6512,6342,6452,634
Operations (SUI/ESO)
Unemployment Compensation
SUI/ESO Employment Service842875862856856
SUI/ESO One-Stop Career99101999999
Ce nte r s
SUI/ESO Work Incentives Grants2020202020
SUI/ESO subtotal3,5953,6473,6153,6203,609
Advances to Unemployment Trust463467467467467
Fund and other funds (mandatory)
ETA Program Administration175183172179174
ETA subtotal10,84711,02711,10911,18711,190
Employee Benefits Security116129129121125
Ad mi ni str a tio n
Pension Benefit Guaranty
Corporation (PBGC)1317171717
Ad mi ni str a tio n
PBGC program level (non-add)193229229229229



FY2003a FY2004 FY2004 FY2004 FY2004
Office or major programfinal requestHouseSenateenacted
Employment Standards Administration (ESA)
ESA Salaries and Expenses381398398392395
ESA Special Benefits163163163163163
(mandato ry)
ESA Special Benefits for
Disabled Coal Miners397388388388388
(mandato ry)
ESA Energy Employees
Occupational Illness Fund10555555555
(mandato ry)
ESA Black Lung Disability Trust1,0351,0431,0431,0431,043
Fund (mandatory)
ESA subtotal2,0812,0472,0472,0412,044
Occupational Safety and Health450450450463461
Administration (OSHA)
Mine Safety and Health273267267271271
Administration (MSHA)
Bureau of Labor Statistics492512512520522
Office of Disability Employment4747474747
P o licy
Departmental Management,1471212108111
International Labor Affairs
Departmental Management,
Veterans Employment and213220220220220
T r a i ni ng
Departmental Management, Other302328308308308
Welfare-to-Work Rescission (non-000-211-176
add)
Departmental Management663560540636639
subtotal
Working Capital Fund020181014
TOTALS, DEPARTMENT OF LABOR
Total appropriations b14,98315,07615,13615,31415,329
Current year: FY200412,42312,52512,58612,76312,778
Advance year: FY20052,5692,5512,5512,5512,551
Source: Amounts are based on the FY2004 conference report H.Rept. 108-401, November 25, 2003;
conference amounts do not reflect the cuts required for most discretionary programs (see page 9).
a FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
b Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.



Department of Health and Human Services
The FY2004 budget proposal for discretionary appropriations at the Department
of Health and Human Services (HHS) is $60.9 billion, $0.8 billion (1.3%) more than
the FY2003 appropriations of $60.1 billion, as shown in Table 7. As passed, the
House bill would provide $61.2 billion; the Senate bill as passed would provide
$61.3 billion; and the conference agreement, as enacted, provides $62.1 billion, prior
to the offsets required elsewhere in the conference agreement (see page 9).
Table 7. Department of Health and Human Services
Discretionary Appropriations
($ in billions)
FY2003a FY2004 FY2004 FY2004 FY2004
Fundingfinal requestHouseSenateenacted
Appropriatio ns $60.1 $60.9 $61.2 $61.3 $62.1
Source: Amounts are based on the FY2004 conference report H.Rept. 108-401, November 25, 2003;
FY2004 conference amounts do not reflect the discretionary cuts required elsewhere in the conference
bill. Amounts represent discretionary programs funded by L-HHS-ED appropriations; appropriations
for mandatory programs are excluded.
a FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
Mandatory HHS programs included in the L-HHS-ED bill were funded at
$258.5 billion in FY2003, and consist primarily of Grants to States for Medicaid
($164.0 billion), Payments to Medicare Trust Funds ($81.5 billion, virtually all for
Part B Supplementary Medical Insurance), Foster Care and Adoption ($6.6 billion),
Family Support Payments to States ($4.0 billion), and Social Services Block Grant
($1.7 billion).
Key Issues
President’s Request. The President’s FY2004 budget request for HHS
would focus increased support primarily for medical research, with smaller increases
for selected substance abuse and family services programs. At the same time, it
would reduce funding for programs for health professions, health care facilities, and
community services. Discretionary spending changes of at least $100 million are
requested for the following programs.
!An increase of $681 million is requested for the National Institutes
of Health (NIH), which was funded at $27.0 billion in FY2003, to
support activities that maintain and improve health through medical
science. The FY2004 request follows a five-year effort by the
Congress to double the size of NIH funding, beginning at $13.6
billion in FY1998. For additional information, see CRS Issue Brief
IB10117, Federal Research and Development Funding: FY2004.
!An additional $122 million is proposed for Community Health
Centers, which was funded at $1.5 billion in FY2003; however, the



$104 million Community Access Program, which provides the
uninsured with safety-net access to health care, would be eliminated.
!A decrease of $312 million is requested for Health Professions
programs, funded at $421 million in FY2003.
!The Health Care and Other Facilities program, funded at $295
million in FY2003, would be eliminated; funds for this program are
earmarked for construction and renovation projects for designated
recipients.
!An increase of $255 million is requested for the Substance Abuse
and Mental Health Services Administration (SAMHSA); $3.1 billion
was provided for FY2003 for a variety of substance abuse and
mental health activities.
!An increase of $169 million is requested for the Centers for
Medicare and Medicaid Services (CMS) Program Management for
the administration of the Medicare and Medicaid programs; $2.6
billion was the FY2003 amount.
!A increase of $311 million is proposed for the Low-Income Home
Energy Assistance Program (LIHEAP); $1.7 billion was provided
for FY2003.
!An additional $148 million is requested for Head Start, funded at
$6.7 billion in FY2003.
!A decrease of $151 million is requested for the Community Services
Block Grant, which was funded at $646 million in FY2003.
!An additional $101 million is requested for the discretionary portion
of the Promoting Safe and Stable Families program; $99 million in
discretionary funds was provided for FY2003.
House Bill. For HHS programs, the FY2004 House bill, as passed, differs in
several respects from the President’s budget request.
!Health Professions would be provided $282 million more than
requested, but $30 million less than the FY2003 amount of $421
million.
!The Children’s Hospital Graduate Medical Education program
would receive $106 million more than requested and $15 million
more than the FY2003 amount of $290 million.
!The Community Access program would be maintained at $104
million; the request was for termination of funding.
!The CDC would receive $322 million more than the requested
amount and $304 million more than the FY2003 amount of $4.3
billion.
!LIHEAP would receive $200 million less than the request but $111
million more than the FY2003 amount of $1.7 billion.
!Discretionary funding for Promoting Safe and Stable Families would
receive $100 million less than requested but nearly the same as the
FY2003 amount of $99 million.
!The Public Health and Social Services Emergency Fund (PHSSEF)
would receive $119 million less than requested and $110 million
less than the FY2003 amount of $1.9 billion.



Senate Bill. For HHS programs, the FY2004 Senate bill, as passed, differs in
several respects from the House bill.
!The $290 million Children’s Hospital Graduate Medical Education
program would not receive a specific amount; instead, it would be
funded as part of the Health Professions program, which would
receive $83 million more from the Senate than under the House bill.
!Funding for the $104 million Community Access Program would be
eliminated under the Senate bill, the same as the President’s request;
level funding would be provided by the House bill.
!The NIH would receive $319 million more than the House or the
request, and $1.0 billion more than the FY2003 amount of $27.0
billion.
!SAMHSA would receive $171 million less than the House and $235
million less than requested; the Senate bill would provide an
increase of $20 million over the FY2003 amount of $3.1 billion.
!LIHEAP would receive $200 million more than the House and the
same as the amount requested; the Senate bill would provide $311
million more than the FY2003 amount of $1.7 billion.
!The Community Services Block Grant would receive $151 million
more than the House or the request; the Senate bill would maintain
funding at the FY2003 level of $646 million.
Public Law. Under the FY2004 conference agreement, as enacted, a change
in funding from FY2003 to FY2004 of at least $100 million would occur for several
HHS programs.
!Community Health Centers would be funded at $1.6 billion, $122
million more than in FY2003, and the same as requested.
!The CDC would be provided $4.5 billion, $260 million more than
the previous year, and $278 million more than requested.
!The NIH would be funded at $28.0 billion, $1.0 billion above the
FY2003 amount, and $319 million more than requested.
!SAMHSA would receive $3.3 billion, $116 million more than in
FY2003, but $139 million less than requested.
!CMS Program Management would be funded at $2.7 billion, $100
million more than in FY2003, but $69 million less than requested.
!LIHEAP would be provided $1.9 billion, an increase of $211
million, but $100 million below the request.
!Head Start would be funded at $6.8 billion, $148 million more than
in FY2003, but the same as the requested amount.
!The PHSSEF would receive $1.8 billion, $110 million less than the
previous year and $119 million less than requested.
Abortion: Funding Restrictions. Annual L-HHS-ED appropriations
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-HHS-ED 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, 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, 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; no change is made under the FY2004 conference agreement. Current
provisions can be found in §508 and §509 of the FY2004 L-HHS-ED appropriations,
P.L. 108-199. 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 11 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. 104-
99 (§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. However, no change is
made in FY2004; the current provision can be found in §510 of the FY2004
L-HHS-ED appropriations, P.L. 108-199. 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 98-476, AIDS: Ryan White CARE Act, by Judith A. Johnson and
Paulette C. Morgan.
CRS Report RS20712, Charitable Choice, Faith-Based Initiatives, and TANF, by
Vee Burke.
CRS Report RL30785, The Child Care and Development Block Grant: Background
and Funding, by Alice Butler and Melinda Gish.
CRS Report RL31817, Child Care Issues in the 108th Congress, by Melinda Gish.



CRS Report RL31746, Child Welfare Issues in the 108th Congress, by Emilie
Stoltzfus.
CRS Report RS20124, Community Services Block Grants: Background and
Funding, by Karen Spar and Garrine P. Laney.
CRS Report RS21160, The Developmental Disabilities Act: Programs and Funding,
by Sidath V. Panangala.
CRS Issue Brief IB10117, Federal Research and Development Funding: FY2004,
by Michael E. Davey.
CRS Report RL30952, Head Start Issues in the 108th Congress, by Melinda Gish.
CRS Report RS21181, HIV/AIDS International Programs: Appropriations, FY2002-
FY2004, by Raymond W. Copson.
CRS Report RL31358, Human Cloning, by Judith A. Johnson.
CRS Report RL31865, The Low-Income Home Energy Assistance Program
(LIHEAP): Program and Funding Issues, by Emilie Stoltzfus.
CRS Report 97-350, Maternal and Child Health Block Grant, by Sharon Kearney
Coleman.
CRS Report RL31058, Medicare Structural Reform: Background and Options, by
Jennifer O’Sullivan, et. al.
CRS Report RS20873, Reducing Teen Pregnancy: Adolescent Family Life and
Abstinence Education Programs, by Carmen Solomon-Fears.
CRS Report 94-953, Social Services Block Grant (Title XX of the Social Security
Act), by Melinda Gish.
CRS Report RL31015, Stem Cell Research, by Judith A. Johnson.
CRS Report 97-1048, The Title X Family Planning Program, by Sharon Kearney
Coleman.
CRS Report RL31793, Vaccine Policy Issues for the 108th Congress, by Susan Thaul.
CRS Report RL30871, Violence Against Women Act: History, Federal Funding, and
Reauthorizing Legislation, by Garrine P. Laney and Alison Siskin.
CRS Issue Brief IB93034, Welfare Reform: An Issue Overview, by Vee Burke.
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]
[ http://www.hhs.gov/budget/docbudget.htm]
Detailed Appropriations Table
Table 8 shows the appropriations details for offices and major programs of
HHS.



Table 8. Detailed Department of Health and Human Services
Appropriations
($ in millions)
FY2003 aFY2004FY2004FY2004FY2004
Office or major programfinalrequestHouseSenateenacted
Public Health Service (PHS)
Health Resources and Services
Administration (HRSA),1,5051,6271,6271,6271,627
Community Health Centers
National Health Service Corps171213171171171
Health Professions, Nursing1139811350143
Health Professions, Other30811278424296
Maternal and Child Health Block731751733732734
Grant
Abstinence Education5573657370
Ryan White AIDS Programs1,9932,0102,0242,0172,032
Family Planning (Title X)273265273283280
Childrens Hospital Graduate290199305 b305
Medical Education
Health Care and Other Facilities295000368
Community Access Program10401040104
Vaccine Injury Compensation8666666666
(mandato ry)
HRSA, other600425566569575
HRSA subtotal6,5235,7386,3256,0126,771
Centers for Disease Control andc4,2854,2674,5894,4944,545
Prevention (CDC)
National Institutes of Health d26,98327,66427,66427,98327,983
(NIH)
Substance Abuse and Mental
Health Services Administration437433435415415
(SAMHSA) Mental Health Block
Grant
SAMHSA Substance Abuse1,6921,7851,7751,7251,710
Block Grant
SAMHSA, other1,0091,1751,1191,1091,129
SAMHSA subtotal3,1383,3933,3293,1583,254
Agency for Healthcare Research00000
and Quality (AHRQ)
AHRQ program level (non-add)304279304304304
PHS subtotal40,92941,06241,90741,64742,553
Centers for Medicare and Medicaid Services (CMS)
Medicaid Grants to States163,952183,308189,308183,308189,308
(mandato ry)
Payments to Medicare Trust81,46395,08495,08495,08495,084
Funds (mandatory)
CMS Program Management2,5652,7342,6982,7082,665
CMS subtotal247,980281,126287,090281,100287,057



FY2003 aFY2004FY2004FY2004FY2004
Office or major programfinalrequestHouseSenateenacted
Administration for Children and Families (ACF)
Family Support Payments to4,0374,6254,6254,6724,672
States (mandatory)
Low Income Home Energy1,6892,0001,8002,0001,900
Assistance Program (LIHEAP)
Refugee and Entrant Assistance478462462428450
Child Care and Development2,0862,1002,1002,1002,100
Block Grant (CCDBG)
Social Services Block Grant1,7001,7001,7001,7001,700
(Title XX) (mandatory)
Head Start6,6686,8166,8166,8166,816
Child Welfare Services290292292290291
Developmental Disabilities160140161166166
Community Services Block Grant646495495646646
Battered Womens Shelters126124126126126
Other Children and Family755820725738771
Services Programs
Promoting Safe and Stable305305305305305
Families (PSSF) (mandatory)
PSSF (discretionary)9920010099100
Foster Care and Adoption6,6016,8366,8366,8366,836
Assistance (mandatory)
ACF subtotal25,64026,91525,54326,92326,879
Administration on Aging (AOA)1,3671,3441,3771,3611,382
Office of the Secretary, Public1,8871,8961,7771,8561,777
Health and Social Service Fund
Medical Benefits, Commissioned310303330330330
Officers (mandatory)
Office of the Secretary, Other424444425424437
TOTALS, DEPARTMENT OF HEALTH AND HUMAN SERVICES
Total appropriations e318,536353,090359,449353,641360,415
Current year: FY2004262,429290,307296,665290,858297,631
Advance year: FY200556,10762,78462,78462,78462,784
Source: Amounts are based on the FY2004 conference report H.Rept. 108-401, November 25, 2003;
conference amounts do not reflect the cuts required for most discretionary programs (see page 9).
a FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
b Funding for the Childrens Hospital Graduate Medical Education is included in Health Professions.
c The Veterans Affairs and Housing and Urban Development (VA-HUD) appropriations act provides
additional funding for CDC — $83 million in FY2003.d
The VA-HUD appropriations act provides additional funding for NIH — $84 million in FY2003.e
Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.



Department of Education
The FY2004 budget proposal for discretionary appropriations at the Department
of Education (ED) is $53.2 billion, $0.1 billion (0.2%) more than the FY2003
appropriations of $53.1 billion, as shown in Table 9. As passed, the House bill
would provide $55.4 billion; the Senate bill as passed would provide $55.8 billion;
and the conference agreement, as enacted, provides $56.0 billion, prior to the offsets
required elsewhere in the conference agreement (see page 9).
Table 9. Department of Education Discretionary Appropriations
($ in billions)
FY2003 aFY2004FY2004FY2004FY2004
F unding fina l request House Sena t e enacted
Appropriatio ns $53.1 $53.2 $55.4 $55.8 $56.0
Source: Amounts are based on the FY2004 conference report H.Rept. 108-401, November 25, 2003;
FY2004 conference amounts do not reflect the discretionary cuts required elsewhere in the conference
bill. Amounts represent discretionary programs funded by L-HHS-ED appropriations; appropriations
for mandatory programs are excluded.
a FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
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
FY2003.
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. Under the
FY2004 budget request, funding for several programs would be increased, and the
total request for ED discretionary funds would be increased by 0.2%, or $0.1 billion.
However, a decrease of $1.1 billion in aggregate is requested for all programs
authorized by the Elementary and Secondary Education Act of 1965 (ESEA). ESEA
programs were funded at $23.6 billion in FY2003; their reauthorization was the
primary activity of the No Child Left Behind Act of 2001 (NCLBA), P.L. 107-110.
Discretionary spending changes of at least $100 million are requested by the
President for the following programs.
!An increase of $666 million is requested for the ESEA Title I Part
A Grants to Local Educational Agencies (LEAs) program for
FY2004; this program was funded at $11.7 billion in FY2003.
!An additional $655 million would be provided for Special Education
Part B Grants to States program under Individuals with Disabilities
Education Act (IDEA), funded at $8.9 billion in FY2003.
!An additional $1.4 billion is requested for the Pell Grant program,
which was funded at $11.4 billion in FY2003.



!The FY2004 request includes an increase of $842 million to support
a unified discretionary account for the administration of federal
student aid programs, funded at $105 million in FY2003. This
amount would be offset in part by a savings of $795 million through
the consolidation of certain related expenses for student aid
administrative activities currently counted elsewhere.
Along with the increases proposed above, the President’s FY2004 budget would
decrease or terminate funding for several programs.
!Impact Aid would be reduced by $172 million; the FY2003 amount
was $1.2 billion.
!21st Century Community Learning Centers would be decreased by
$394 million; $994 million was provided in FY2003.
!Rural Education funding would be eliminated; the FY2003 amount
was $168 million.
!The Fund for the Improvement of Education (FIE) would be reduced
by $414 million; $473 million was provided in FY2003.
!The Perkins Vocational Education program would be reduced by
$326 million; $1.3 billion was provided in FY2003.
!Smaller Learning Communities would be eliminated; $161 million
was the FY2003 amount.
!The Fund for the Improvement of Postsecondary Education (FIPSE)
would be decreased by $132 million; the program was funded at
$171 million in FY2003.
House Bill. For ED programs, the FY2004 House bill, as passed, differs in
several respects from the President’s budget request.
!All ESEA programs in aggregate would be funded at $24.0 billion
in FY2004 under the House bill, $1.5 billion more than requested
and $438 million more than the FY2003 amount of $23.6 billion.
!Impact Aid would be funded at $1.2 billion, $222 million more than
requested and $50 million more than the FY2003 amount.
!21st Century Community Learning Centers would be funded at $1.0
billion, $400 million more than requested and slightly more than the
FY2003 amount.
!Rural Education would be level funded at $170 million, about the
same as the FY2003 amount; no funds are requested for FY2004.
!The FIE would receive $166 million, $107 million more than
requested but $307 million less than the FY2003 amount.
!IDEA Part B Grants to States would receive $9.9 billion, $345
million more than requested and $1.0 billion more than the FY2003
amount.
!Perkins Vocational Education would be funded at $1.3 billion, $319
million more than requested but about the same as in FY2003.
!Smaller Learning Communities would be funded at $175 million;
no funding is requested; the FY2003 amount was $161 million.



!Pell Grants would receive $12.3 billion, $465 million less than the
request but $885 million more than the FY2003 amount of $11.4
billion.
!The House bill would reject the President’s request to consolidate
student loan administrative activities.
Senate Bill. For ED programs, the FY2004 Senate bill, as passed, differs in
a number of respects with the House bill.
!The Senate bill would provide $23.5 billion for all ESEA programs,
$572 million less that the House amount, but $972 million more
than requested; the FY2003 amount was $23.6 billion.
!IDEA Part B Grants to States would be funded at $11.1 billion, $1.2
billion more than the House and $1.5 billion more than requested;
$8.9 billion was provided for FY2003.
!Departmental Management at ED would receive $465 million, $109
million less than the House amount or the request, and $71 million
less than the FY2003 amount of $536 million.
Public Law. Under the FY2004 conference agreement, as enacted, a change
in funding from FY2003 to FY2004 of at least $100 million would occur for several
ED programs.
!The aggregate funding level for all ESEA programs would be $24.4
billion, $827 million more than the FY2003 amount, and $1.9 billion
more than requested.
!Within the ESEA total, Title I Part A Grants to LEAs would be
funded at $12.4 billion, $728 million more than in FY2003, and $62
million more than requested.
!Funding for IDEA Part B Grants to States would be $10.1 billion,
$1.3 billion more than in FY2003, and $600 million more than
requested.
!Pell Grants would be funded at $12.1 billion, $713 million more
than in FY2003, but $637 million less than requested. The
maximum Pell award would remain at $4,050, the same as in
FY2003, but $50 more than requested.
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
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 Committee
on Appropriations has stated 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. As of January 28,
2004, ED estimated the FY2003 shortfall would be $2.5 billion, which would
increase to $3.2 billion in FY2004 under the provisions and funding levels of the
FY2004 conference agreement. For additional information, see CRS Report
RL31668, Federal Pell Grant Program of the Higher Education Act: Background
and Reauthorization.
Student Aid Program Administration. As it did in FY2003, the
President’s FY2004 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 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. The Congress did not act on the
FY2003 proposal, and the FY2004 conference agreement does not go along with the
FY2004 proposal either. 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 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 FY2003 for Part B grants would take an
estimated $20.2 billion, whereas the FY2003 appropriation was $8.9 billion, the
equivalent of 17.5% of the current APPE times the number of children served. An
additional appropriation of $11.3 billion would have been necessary to provide the
40% authorized maximum for FY2003. In addition, funding requirements for
maximum grants could grow in the future with the possibility of continued growth
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 enabled more
medically fragile children to survive to school age and to receive a public education.



For additional information, see CRS Report RS21447, Individuals with Disabilities
Education Act (IDEA): Current Funding Trends.
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, FY2004 appropriations for some programs will
became available for obligation to the states on July 1, 2004, and will remain
available for a 15-month period until September 30, 2005. 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
from one fiscal year primarily support Pell Grants during the following academic
year, that is, the FY2004 appropriations will be used primarily to support the 2004-
2005 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 FY2004 appropriations, funds normally would have become available
October 1, 2003, under regular funding provisions, but will not become available
until July 1, 2004, under the forward funding provisions discussed above. However,
if the July 1, 2004 forward funding date were to be postponed for obligation by three
months — until October 1, 2004 — the appropriation would be classified as an
advance appropriation since the funds would become available only in a subsequent
fiscal year, FY2005. For example, the FY2004 appropriation for Title I Part A
Grants to LEAs for the Education of the Disadvantaged is $12.3 billion. This amount
includes not only forward funding of $5.1 billion (available July 1, 2004), but also
an advance appropriation of $7.2 billion (available October 1, 2004). 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 three-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 three-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 RL30656, The Administration of Federal Student Loan Programs:
Background and Provisions, by Adam Stoll.
CRS Report RL31618, Campus-Based Student Financial Aid Programs Under the
Higher Education Act, by David Smole.
CRS Report RL31747, The Carl D. Perkins Vocational and Technical Education Act
of 1998: Background and Implementation, by Rebecca R. Skinner and Richard
N. Apling.
CRS Report RL31123, Early Childhood Education: Federal Policy Issues, by Gail
McCallion.
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
Jeffrey J. Kuenzi.
CRS Report RL30448, Even Start Family Literacy Programs: Background and
Reauthorization Issues, by Gail McCallion and Wayne Riddle.
CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act:
Background and Reauthorization, by James B. Stedman.
CRS Report RL30048, Federal Student Loans: Program Data and Default
Statistics, by Adam Stoll.
CRS Report RL31128, Funding for Public Charter School Facilities: Federal
Policy Under ESEA, by David P. Smole.
CRS Issue Brief IB10097, The Higher Education Act: Reauthorization Status and
Issues, by James B. Stedman.
CRS Report RL31885, Impact Aid for Public K-12 Education: General Overview
and Current Status, by Rebecca R. Skinner.
CRS Report RL32085, Individuals with Disabilities Education Act (IDEA): Current
Funding Trends, by Richard N. Apling.
CRS Report RL30810, Individuals with Disabilities Education Act (IDEA): Issues
Regarding “Full Funding” of Part B Grants to States, by Richard N. Apling.
CRS Report RS20366, Individuals with Disabilities Education Act (IDEA):
Overview of Major Provisions, by Richard Apling and Nancy Lee Jones.
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 Gail McCallion.
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 RS20532, The Safe and Drug-Free Schools and Communities Act:
Reauthorization and Appropriations, by Edith Fairman Cooper.
CRS Issue Brief IB98035, School Choice: Current Legislation, by David P. Smole.
CRS Report RL31622, TRIO and GEAR UP Programs: Status and Issues, by Jeffrey
J. Kuenzi.
CRS Report RL31240, 21st Century Community Learning Centers in P.L. 107-110:
Background and Funding, by Gail McCallion.
World Wide Web Sites
Department of Education Home Page
[ http://www.ed.gov/index .jhtml]
[ http://www.ed.gov/about/overview/budget/news.html]
[ http://www.ed.gov/about/overview/budget/index .html]
[ h ttp://www.ed.gov/print/about/overv iew/budget/budget04/index .html]
[ http://www.ed.gov/news/speeches/2003/02/02032003.html]
Detailed Appropriations Table
Table 10 shows the appropriations details for offices and major programs of
ED.



Table 10. Detailed Department of Education Appropriations
($ in millions)
FY2003 aFY2004FY2004FY2004FY2004
Office or major programfinalrequestHouseSenateenacted
Total Elementary and Secondary23,60822,50824,05223,48024,435
Education Act (non-add)
Title I Part A Education for the11,68412,35012,35012,35012,412
Disadvantaged, Grants to LEAs
Even Start248175250175248
Reading First State Grants9941,0501,0501,0001,030
Education for the Disadvantaged,812609857582839
Othe r
Impact Aid1,1881,0161,2381,1931,237
Teacher Quality State Grants2,9312,8502,9312,8502,946
Innovative Education Block Grant382385335345300
Educational Technology State696701696696696
Grants
21st Century Community Learning9946001,0001,0001,005
Ce nte r s
State Assessments384390390390392
Rural Education1680170168169
School Improvement, Other328117276282326
Indian Education122122122122122
Charter School Grants199220220220220
Fund for the Improvement of47359166169430
Education (FIE)
Innovation and Improvement,427528422393457
Othe r
Safe and Drug-Free Schools State469422469422445
Grants
Safe Schools and Citizenship,416334356397418
Othe r
English Language Acquisition
and Enhancement (Bilingual and686665686669685
Immigrant Education)
IDEA Special Education, Part B,8,8749,5299,87411,05910,129
Grants to States
IDEA Special Education, other1,1601,1611,1761,1681,178
Vocational Rehabilitation State2,5332,5842,5842,5842,584
Grants (mandatory)
Rehabilitation Services, other420419415420429
Special Institutions for Persons167159171171171
With Disabilities
Perkins Vocational Education1,3331,0071,3261,3331,343
Adult Education587591600587594
Smaller Learning Communities1610175161175
Community Technology Centers32002010



FY2003 aFY2004FY2004FY2004FY2004
Office or major programfinalrequestHouseSenateenacted
Federal Student Aid
Pell Grants, maximum award (in4,0504,0004,0504,0504,050
dollars, non-add)
Pell Grants11,36512,71512,25012,17712,078
Supplemental Educational760725760760775
Opportunity Grants
Federal Work-Study1,0041,0111,0041,0041,004
Federal Perkins Loans, Capital990999999
Co nt r i b ut i o ns
Federal Perkins Loans, Loan6768676767
Cancellatio ns
Leveraging Educational670676767
Assistance Partnership (LEAP)
Loan Forgiveness for Child Care10000
Federal Family Education Loans,105947120105118
Ad mi ni str a tio n
Direct Loan Reclassification0-795000
Proposal
Office of Postsecondary Education (OPE)
Aid for Institutional Development472470484489488
Fund for the Improvement of171393432155
Postsecondary Education (FIPSE)
Federal TRIO Programs827803835840838
GEAR UP293285300300300
Higher Education, other323301321309314
National Security Education Trust08000
Howard University238237243238240
Institute of Education Sciences (IES)
Research and Statistics390376443475421
Multi-year Grants580585858
Departmental Management
Departmental Management536574574465561
TOTALS, DEPARTMENT OF EDUCATION
Total Appropriations a, b55,64655,80857,96458,41458,573
Current year: FY200438,39140,79742,95343,40343,551
Advance year: FY200517,25515,01115,01115,01115,022
Source: Amounts are based on the FY2004 conference report H.Rept. 108-410, November 25, 2003;
conference amounts do not reflect the cuts required for most discretionary programs (see page 9).
a FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
b Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.



Related Agencies
The FY2004 budget proposal for discretionary appropriations for L-HHS-ED
Related Agencies is $9.9 billion, $0.3 billion (3.1%) more than the FY2003
appropriations of $9.6 billion, as shown in Table 11. As passed, the House bill
would provide $10.0 billion; the Senate bill as passed would provide $10.3 billion;
and the conference agreement, as enacted, provides $10.2 billion, prior to offsets
required elsewhere in the conference agreement (see page 9).
Table 11. Related Agencies Discretionary Appropriations
($ in billions)
FY2003 aFY2004FY2004FY2004FY2004
F unding fina l request House Sena t e enacted
Appropriatio ns $9.6 $9.9 $10.0 $10.3 $10.2
Source: Amounts are based on the FY2004 conference report H.Rept. 108-401, November 25, 2003;
FY2004 conference amounts do not reflect the discretionary cuts required elsewhere in the conference
bill. Amounts represent discretionary programs funded by L-HHS-ED appropriations; appropriations
for mandatory programs are excluded.
a FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
Mandatory programs for related agencies included in the L-HHS-ED bill were
funded at $32.2 billion in FY2003, virtually all of it for the Supplemental Security
Income (SSI) program.
Key Issues
President’s Request. The President’s FY2004 budget for related agencies
would change discretionary spending by at least $100 million for several programs.
!The Corporation for Public Broadcasting (CPB) has been provided
with a two-year advance appropriation in recent years, that is, the
FY2004 L-HHS-ED bill would be expected to provide FY2006
funding for the CPB. Under the President’s FY2004 request, zero
funding would be provided for FY2006. However, $390 million has
already been enacted for FY2005 (as part of the FY2003 L-HHS-ED
bill), and $380 million has been provided for FY2004 (enacted in the
FY2002 bill). The FY2003 amount was $363 million, which was
enacted in FY2001.
!The SSI discretionary appropriation would be increased by $218
million; $2.9 billion was provided for FY2003.
!An additional $427 million is proposed for the SSA Limitation on
Administrative Expenses, which was funded at $4.9 billion in
FY2003.



House Bill. For the related agencies included in the L-HHS-ED bill, the
House bill, as passed, differs from the President’s budget request for several
programs.
!The CPB would be given an advance appropriation of $330 million
for FY2006; the CPB would not receive FY2006 funding under the
request.
!The SSA Limitation on Administrative Expenses would receive $5.3
billion, $107 million less than requested.
Senate Bill. For related agencies, the FY2004 Senate bill, as passed, differs
from the House bill by at least $100 million for one program. The SSA Limitation
on Administrative Expenses would be $5.4 billion, the same as requested but $107
million more than the House amount.
Public Law. Under the FY2004 conference agreement, as enacted, a change
in funding from FY2003 to FY2004 of at least $100 million would occur for two
programs under the L-HHS-ED related agencies.
!The SSI discretionary activities would be funded at $3.1 billion,
$157 million more than the FY2003 amount, but $61 million less
than requested.
!The SSA Limitation on Administrative expenses would receive $5.3
billion, $320 million more than the previous year, but $107 million
less than requested.
CRS Products
CRS Report RL31320, Federal Aid to Libraries: The Library Services and
Technology Act, by Gail McCallion.
CRS Report 98-422, Social Security and the Federal Budget: What Does Social
Security’s Being “Off Budget” Mean?, by David Stuart Koitz.
CRS Report RL32004, Social Security Benefits for Noncitizens: Current Policy and
Legislation, by Dawn Nuschler and Alison Siskin.
CRS Report 94-27, Social Security: Brief Facts and Statistics, by Geoffrey
Kollmann.
CRS Issue Brief IB98048, Social Security Reform, by Geoffrey Kollmann and Dawn
Nuschler.
CRS Report 94-486, Supplemental Security Income (SSI): A Fact Sheet, by
Jennifer E. Lake.
CRS Report RS20419, VISTA and the Senior Volunteer Service Corps: Description
and Funding Levels, by Ann Lordeman.



World Wide Web Sites
Note: Not all of the L-HHS-ED related agencies have websites, and not all websites
include FY2004 budget information.
Armed Forces Retirement Home
[ h ttp://www.afrh.com]
Corporation for National and Community Service
[ http://www.cns.gov]
Corporation for Public Broadcasting
[ h ttp://www.cpb.org]
[ http://www.cpb.org/ about/funding/appropriation.html]
Federal Mediation and Conciliation Service
[ http://www.fmcs.gov]
Institute of Museum and Library Services
[ http://www.imls.gov]
[ http://www.imls.gov/whatsnew/03archive/020303.htm]
Medicare Payment Advisory Commission
[ h ttp://www.medpac.gov/]
National Commission on Libraries and Information Science
[http://www.nclis.gov/]
National Council on Disability
[ http://www.ncd.gov/]
National Labor Relations Board
[ http://www.nlrb.gov]
Railroad Retirement Board
[ h ttp://www.rrb.gov]
[ http://www.rrb.gov/BFO/J ustbudgettoc04.htm]
Social Security Administration
[ http://www.ssa.gov]
[ http://www.ssa.gov/budget/2004bud.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.



Table 12. Detailed Related Agencies Appropriations
($ in millions)
FY2003 aFY2004FY2004FY2004FY2004
Office or major programfinalrequestHouseSenateenacted
Armed Services Retirement Home6765656565
Corporation for National and Community Service (CNCS) b
Volunteers in Service to America9494949494
(VIST A)
Special Volunteer Programs102051010
National Senior Volunteer Corps216212216217215
Program Administration3438383437
CNCS subtotal354364353355356
Corporation for Public
Broadcasting (CPB), 2-Year3900330400400
Advance for FY2006
CPB current year for FY2004363380380380380
(non-add)
CPB Digitalization Program48005550
CPB Interconnection0001010
Federal Mediation and4143434343
Conciliation Service
Federal Mine Safety and Health78888
Review Committee
Institute of Museum and Libraryc244242238244263
Services (IMLS)
Medicare Payment Advisory99999
C o mmi s s i o n
National Commission on11111
Libraries and Information Science
National Council on Disability33333
National Labor Relations Board237243239246244
National Mediation Board1111111111
Occupational Safety and Health1010101010
Review Commission
Railroad Retirement Board 228226219224219



FY2003 aFY2004FY2004FY2004FY2004
Office or major programfinalrequestHouseSenateenacted
Social Security Administration (SSA)
SSA Payments to Social Security2022222222
Trust Fund (mandatory)
SSA Supplemental Security32,17035,83835,83835,84635,846
Income (SSI) (mandatory)
SSA SSI, Discretionary2,9363,1543,0933,1543,093
SSA Limitation on Administrative4,9495,3765,2695,376 5,269
Expenses
SSA Office of Inspector General82908882 88
SSA subtotal40,15744,48044,31044,48044,318
United States Institute for Peace1617171717
TOTALS, RELATED AGENCIES
Total appropriations d41,82545,72245,85746,18346,028
Current year: FY200430,35533,13232,93733,19333,038
Advance year: FY200511,08012,59012,59012,59012,590
Advance year: FY20063900330400400
Source: Amounts are based on the FY2004 conference report H.Rept. 108-401, November 25, 2003;
conference amounts do not reflect the cuts required for most discretionary programs (see page 9).
a FY2003 amounts are post-reduction (see page 44) and based on P.L. 108-7.
b 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 — $387 million in FY2003.c
The IMLS amounts include both Library Services and Museum Services; both programs are funded
through the L-HHS-ED bill beginning with FY2003.d
Appropriations totals include discretionary and mandatory funds, and may be subject to additional
scorekeeping and other adjustments.



Related Legislation
Several proposals related to L-HHS-ED appropriations were considered duringth
the first session of the 108 Congress, including a series of FY2004 continuing
resolutions; the FY2004 budget resolution; the FY2003 emergency wartime
supplemental appropriations; and the Consolidated Appropriations Resolution, 2003,
which provided regular FY2003 appropriations for L-HHS-ED programs and was
enacted following a series of FY2003 continuing resolutions.
FY2004 Continuing Resolution, P.L. 108-84 (H.J.Res. 69)
From October 1, 2003, through January 23, 2004, a series of five continuing
resolutions provided FY2004 appropriations for most ongoing L-HHS-ED programs,
including the costs of direct loans and loan guarantees, on a temporary basis. These
resolutions were necessary because the regular FY2004 L-HHS-ED appropriations
had not enacted by the start of FY2004. Funding under the continuing resolution was
provided at a rate of operations not to exceed the “current rate,” under FY2003
conditions and program authority. New initiatives were prohibited unless otherwise
specifically authorized. For programs with high spend-out rates that normally would
have occurred 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. 108-84 (H.J.Res. 69), provided
temporary appropriations for the period October 1 through
October 31, 2003, as long as regular appropriations were not enacted
sooner. Section 106 of H.J.Res. 69 would amend the FY2003
L-HHS-ED appropriations enacted by P.L. 108-7 by reducing
advance appropriations for FY2004 by $2.2 billion, and increasing
FY2003 appropriations by the same amount. H.J.Res. 69 was passed
by the House and Senate September 25, 2003, and signed into law
by the President on September 30, 2003, as P.L. 108-84.
!2nd Continuing Resolution, P.L. 108-104 (H.J.Res. 75), extended
the provisions of P.L. 108-84 through November 7, 2003.
!3rd Continuing Resolution, P.L. 108-107 (H.J.Res. 76), extended
the provisions of P.L. 108-84 through November 21, 2003.
!4th Continuing Resolution, P.L. 108-135 (H.J.Res. 79), extended
the provisions of P.L. 108-84 through January 23, 2004. (The
extension was until the enactment of regular appropriations, or
January 31, 2004, whichever occurs first.)
!5th Continuing Resolution, P.L. 108-185 (H.J.Res. 84), amended
budget authority in P.L. 108-84 regarding several non-L-HHS-ED
programs, but did not change the duration of the continuing
resolution as amended by P.L. 108-135.



FY2004 Budget Resolution, H.Con.Res. 95/S.Con.Res. 23
The concurrent resolution on the budget sets forth the congressional budget for
FY2004. The resolution proposes federal budget levels for FY2004 through FY2013;
the maximum for total discretionary spending is specified within the context of the
budget resolution. As agreed to in conference, the resolution sets an FY2004 limit
of $784.5 billion in discretionary spending, compared to $840.6 billion enacted for
FY2003, according to the conference report (H.Rept. 108-71, p. 42). 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. Report language usually provides an outline of
the funding assumptions made for selected programs that might be used to reach the
spending targets. Actual FY2004 discretionary appropriations for specific
departments, agencies, and programs, however, are determined only through the
enactment of appropriations bills.
H.Con.Res. 95 (H.Rept. 108-37) was passed by the House on March 21, 2003
(Roll Call no. 82, 215-212). S.Con.Res. 23 (without written report) was passed by
the Senate on March 26, 2003 (Roll Call no. 108, 56-44), before being substituted as
an amendment to H.Con.Res. 95. The conference report for H.Con.Res. 95, H.Rept.

108-71, was agreed to on April 11, 2003, by the House (Roll Call no. 141, 216-211)


and by the Senate (Roll Call no. 34, 51-50). For additional information, see CRS
Report RL31784, The Budget for Fiscal Year 2004.
FY2003 Wartime Supplemental, P.L. 108-11 (H.R. 1559)
Following the enactment into law on February 20, 2003, of final FY2003
omnibus appropriations, the Congress agreed to additional FY2003 appropriations
to meet various special wartime needs. From the total of $79 billion enacted, $158
million was designated for L-HHS-ED programs, including $16 million for the CDC
for the prevention and control of Severe Acute Respiratory Syndrome (SARS), $100
million for the CDC for general activities, and $42 million for compensation for
injuries resulting from smallpox vaccinations, contingent on the enactment of
legislation authorizing such activities. In addition, the law clarifies the language
specifying certain FY2003 award recipients that were designated under P.L. 108-7.
The House passed H.R. 1559 (H.Rept. 108-55) on April 3, 2003 (Roll Call no.

108, 414-12). The Senate amended and passed H.R. 1559 in lieu of S. 762 (S.Rept.


108-33, agreed to by the Senate April 3 by Roll Call no. 125, 93-0). The conference
report, H.Rept. 108-76, was agreed to by the House and the Senate on April 12, and
signed into law by the President on April 16, 2003, as P.L. 108-11, the Emergency
Wartime Supplemental Appropriations Act, 2003. For additional information, see
CRS Report RL31829, Supplemental Appropriations FY2003: Iraq Conflict,
Afghanistan, Global War on Terrorism, and Homeland Security.



FY2003 Omnibus Appropriations, P.L. 108-7 (H.J.Res. 2)
Regular FY2003 funding for L-HHS-ED activities was enacted early in the 108th
Congress, more than four months after the start of FY2003 on October 1, 2002.
Division G of the omnibus provided funds for L-HHS-ED programs.
Seven of the 13 regular FY2003 appropriations bills were combined into a
single piece of legislation, H.J.Res. 2. The conference report on H.J.Res. 2, H.Rept.

108-10, was passed on February 13, 2003, by the House (Roll Call no. 32, 338-83)


and by the Senate (Roll Call no. 34, 76-20). It was signed into law by the President
on February 20, 2003, as P.L. 108-7, the Consolidated Appropriations Resolution,
2003. For information on the FY2003 L-HHS-ED appropriations, see CRS Report
RL31303, Appropriations for FY2003: Labor, Health and Human Services, and
Education. For a guide to the omnibus bill, see CRS Report RS21433, FY2003
Consolidated Appropriations Resolution: Reference Guide.
“Across-the-Board” Reductions for FY2003. P.L. 108-7, Division N,
Title VI “Offsets,” includes Section 601 “Across-the-Board Rescissions” which
required a reduction of 0.65% to most FY2003 discretionary appropriations enacted
elsewhere in the law, including some of the L-HHS-ED appropriations. However,
the reduction did not apply to advance appropriations for FY2004 and excluded
certain specified programs, such as Head Start. Although the exact percentage of the
reduction was specified, the actual application and resulting funding levels were
determined later by the Office of Management and Budget (OMB) and the individual
agencies. The final FY2003 amounts, as approved by OMB, are incorporated into
the FY2004 tables of the House and Senate Committees on Appropriations. As a
result, the tables in the H.J.Res. 2 conference report, H.Rept. 108-10, show pre-
reduction levels, whereas the FY2004 reports from the House and Senate Committees
on Appropriations show post-reduction funding levels for FY2003 appropriations.
FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111)
From October 1, 2002, through February 20, 2003, when P.L. 108-7 was signed
into law, 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 yet enacted. 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. The
FY2003 continuing resolutions were: P.L. 107-229 (H.J.Res. 111), as amended by
P.L. 107-235, P.L. 107-240, P.L. 107-244, P.L. 107-294, P.L. 108-2, P.L. 108-4, and
P.L. 108-5. For additional information, see CRS Report RL30343, Continuing
Appropriations Acts: Brief Overview of Recent Practices.



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.



Appendix B: Scope of L-HHS-ED Appropriations
The FY2003 budget authority for all federal programs was estimated to be
$2,154.4 billion, as shown in Table B.1. Of this amount, the departments and related
agencies funded by the L-HHS-ED bill accounted for $1,152.0 billion (53.5%).
Table B.1. Scope of the L-HHS-ED Bill, FY2003
(Estimated budget authority in billions of dollars)
Estima ted
budgetPercent of
Budget categoryauthorityfederal budget
Total federal budget authority$2,154.4 100.0%
Department of Labor71.33.3%
Department of Health and Human Services507.823.6%
Department of Education60.52.8%
Social Security Administration (On-budget)43.92.0%
Social Security Administration (Off-budget)466.821.7%
Other related agencies1.70.1%
L-HHS-ED agency total1,152.053.5%
L-HHS-ED bill, total current year funds423.119.7%
L-HHS-ED bill, current year mandatory funds290.813.5%
L-HHS-ED bill, current year discretionary funds132.36.2%
Total federal discretionary funds749.034.8%
Source: Budget of the United States Government Historical Tables, Fiscal Year 2004, Tables 5.2 and
5.4; and the FY2003 conference report H.Rept. 108-10, which provides details for the FY2003
L-HHS-ED amounts under P.L. 108-7.
Note: For comparability, this table uses data from the February 2003 OMB budget documents and
the FY2003 conference report of February 13, 2003; the data therefore do not include changes in
scorekeeping, entitlements, or FY2003 supplemental appropriations.
As shown in Table 2 (page 4), the estimated FY2003 appropriations for L-HHS-
ED was $423.1 billion in current year funds — $132.3 billion in discretionary funds
and $290.8 billion in mandatory funds. The L-HHS-ED Appropriations
Subcommittees generally have effective control only over the discretionary funds,
which constitute 6.2% of the aggregate budget authority for all federal departments
and agencies, and 11.6% of the total budget authority for L-HHS-ED departments
and agencies.1 What accounts for the remaining 88.4% ($1,018.6 billion) of
L-HHS-ED funds?


1 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.

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
$424.1 billion and the agency estimated total of $1,152.0 billion in FY2003. 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.2
Second, mandatory programs account for the difference between the L-HHS-ED
total of $424.1 billion and the subtotal of $133.4 billion for discretionary funds in
FY2003. 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 three
L-HHS-ED programs were partially funded in FY2003 by bills other than L-HHS-
ED. FY2003 appropriations from other, non-L-HHS-ED sources are shown for each
of these agencies and programs. Prior to FY2003, the Office of Museum Services
of the Institute of Museum and Library Services (IMLS) was funded through under
the Interior Appropriations, but the entire IMLS has been funded under L-HHS-ED
beginning in FY2003.
!The HHS Food and Drug Administration is funded by the
Agriculture Appropriations ($1.7 billion in FY2003).
!The HHS Indian Health Service is funded by the Interior
Appropriations ($2.9 billion in FY2003).
!The Corporation for National and Community Service (CNCS) —
which is funded under related agencies — receives funds from the
L-HHS-ED bill for programs authorized under the Domestic
Volunteer Service Act of 1973 ($354 million); it also receives funds
from the FY2003 Veterans Affairs and Housing and Urban
Development (VA-HUD) Appropriations for AmeriCorps and other


2 The Social Security Administration (SSA) was separated from HHS and established as an
independent federal agency on Mar. 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 $1,152.0 billion total
for L-HHS-ED departments and agencies in FY2003, the SSA accounted for $510.7 billion,
or 44.3% of the total. As shown in Table B.1, the SSA amount represents $43.9 billion for
designated on-budget activities and $466.8 billion for off-budget activities.

programs authorized by the National Community Service Act ($387
million).
!The Centers for Disease Control and Prevention (CDC) is primarily
funded under L-HHS-ED ($4.3 billion in FY2003); it also receives
funds under the FY2003 VA-HUD Appropriations for the Agency
for Toxic Substances and Disease Registry (ATSDR) ($83 million).
!The National Institutes of Health (NIH) is primarily funded under
L-HHS-ED ($27.0 billion in FY2003); it receives additional funds
under FY2003 VA-HUD Appropriations for certain environmental
health sciences activities ($84 million).