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

CRS Report for Congress
Appropriations for FY2003:
Labor, Health and Human Services,
and Education
Updated March 14, 2003
Paul M. Irwin
Specialist in Social Legislation
Domestic Social Policy Division

Congressional Research Service ˜ The Library of Congress

Appropriations are one part of a complex federal budget process that includes budget
resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and
budget reconciliation bills. The process begins with the President’s budget request and is
bound by the rules of the House and Senate, the Congressional Budget and Impoundment
Control Act of 1974 (as amended), the Budget Enforcement Act of 1990, and current
program authorizations.
This report is a guide to one of the 13 regular appropriations bills that Congress considers
each year. It is designed to supplement the information provided by the House and Senate
Labor, Health and Human Services, and Education Appropriations Subcommittees. It
summarizes the current legislative status of the bill, its scope, major issues, funding levels,
and related legislative activity. The report lists the key CRS staff relevant to the issues
covered and related CRS products.
This report is updated as soon as possible after major legislative developments, especially
following legislative action in the committees and on the floor of the House and Senate.
NOTE: A Web version of this document with active links is
available to congressional staff at:
[http://www.crs.gov/products/appropriations/apppage.shtm l ] .

Appropriations for FY2003: Labor, Health and
Human Services, and Education
Summary
This report tracks the legislative progress of the FY2003 appropriations for the
Departments of Labor, Health and Human Services, and Education, and Related
Agencies (L-HHS-ED). This Act provides discretionary funds for three federal
departments and related agencies. The report summarizes L-HHS-ED discretionary
funding issues, but not authorization or entitlement issues.
On February 4, 2002, the President submitted the FY2003 budget request to the
Congress. The L-HHS-ED request is $130.7 billion in discretionary funds; the
comparable FY2002 amount was $128.1 billion, enacted primarily through P.L. 107-
116. In the 108^th Congress, an FY2003 L-HHS-ED bill was introduced in the House
as H.R. 246; the Senate-passed version was included in H.J.Res. 2. The conference
version of H.J.Res. 2 was signed into law as P.L. 108-7 on February 20, 2003,
providing $135.8 billion in discretionary funds for L-HHS-ED, prior to an “across-
the-board” reduction (discussed on page 10). A series of eight continuing
resolutions, P.L. 107-229, as amended, provided interim FY2003 appropriations
through February 20, 2003.
Department of Labor (DOL): DOL discretionary appropriations were $12.0
billion in FY2002; $11.9 billion is enacted for FY2003. Compared to FY2002
funding levels, Unemployment Compensation increased $234 million, and
Workforce Investment Act programs decreased $263 million.
Department of Health and Human Services (HHS): HHS discretionary
appropriations were $56.9 billion in FY2002; $60.7 billion is enacted for FY2003.
Increases include $3.8 billion for the National Institutes of Health, $172 million for
Community Health Centers, $121 million for Ryan White Aids Programs, $155
million for Program Management at Centers for Medicare and Medicaid Services,
and $131 million for Head Start. The Public Health and Social Services Emergency
Fund is reduced by $414 million, and the Low-Income Home Energy Assistance
Program Emergency Allocation is eliminated.
Department of Education (ED): ED discretionary appropriations were $49.9
billion in FY2002; $53.4 billion is enacted for FY2003. Increases include $1.4
billion for Title I Part A Grants to Local Educational Agencies and $1.4 billion for
Individuals with Disabilities Education Act (IDEA) Part B Grants to States. An
increase of $100 million is provided for Reading First State Grants, $100 million for
Teacher Quality State Grants, and $125 million for Pell Grants.
Related Agencies: Discretionary appropriations for related agencies were $9.2
billion in FY2002; $9.7 billion is enacted for FY2003. An increase of $351 million
is provided for Administrative Expenses at the Social Security Administration.

Key Policy Staff
^CRS
^{Area of E}^x^pertis^e^N^am^e^Divⁱ^sioⁿ^Telepho^ne
^Co^o^r^dina^t^o^r^Pau^l^{M. Irw}ⁱⁿ^D^S^P^7-⁷⁵⁷³
^Depa^rt^m^e^nt^o^f^La^bo^r
^{Job t}^r^aiⁿⁱⁿ^g^an^{d em}^pl^oy^m^eⁿ^t^s^e^rvⁱ^ces^Aⁿⁿ^L^o^rdem^an^D^S^P⁷^-²³²³
^L^a^{bor m}^a^rk^etⁱⁿ^f^o^rm^atⁱ^oⁿ^Lⁱⁿ^{da L}^e^vⁱⁿ^e^D^S^P⁷^-⁷⁷⁵⁶
^L^a^{bor s}^t^an^dards^en^f^o^rcem^en^t^W^illiam^{G. W}^h^ittak^e^r^D^SP^7-⁷⁷⁵⁹
^Miⁿ^e^S^a^f^e^t^y^an^{d H}^eal^t^h^A^d^mⁱⁿⁱ^s^t^ratⁱ^oⁿ^E^dw^{ard B. R}^a^ppaport^D^S^P^7-⁷⁷⁴⁰
^O^ccu^patⁱ^oⁿ^a^l^S^a^f^e^t^y^an^{d H}^eal^t^h^A^d^mⁱⁿⁱ^s^t^ratⁱ^oⁿ^E^dw^{ard B. R}^a^ppaport^D^S^P^7-⁷⁷⁴⁰
^O^l^d^e^r^A^m^e^rⁱ^c^aⁿ^{s A}^c^t^,^e^m^p^l^o^y^m^e^nt^p^r^o^g^r^a^m^s^Ca^r^o^l^V^.^O^’^Sha^ughne^ssy^D^S^P⁷^-⁷³²⁹
^Pen^sⁱ^oⁿ^an^{d Wel}^f^{are Ben}^e^fⁱ^t^s^Pau^l^{J. G}^r^an^ey^D^S^P⁷^-²²⁹⁰
^T^r^{ade A}^d^j^u^s^t^m^eⁿ^t^A^s^sⁱ^s^t^an^ce^Pau^l^{J. G}^r^an^ey^D^S^P⁷^-²²⁹⁰
^Uⁿ^em^pl^oy^m^eⁿ^t^com^p^en^s^a^tⁱ^oⁿ^C^elⁱⁿ^{da F}^r^an^co^D^S^P⁷^-⁷³⁶⁰
^Wel^f^are-^t^o^-^W^ork^G^en^{e F}^a^l^k^D^S^P⁷^-⁷³⁴⁴
^Work^f^o^{rce In}^v^e^s^t^m^eⁿ^t^A^c^t^Aⁿⁿ^L^o^rdem^an^D^S^P⁷^-²³²³
^Depa^rt^m^e^nt^o^f^H^e^a^l^t^h^a^{nd H}^u^m^a^{n Serv}^ices
^A^bortⁱ^oⁿ^,^l^e^g^a^lⁱ^s^s^u^es^K^a^ren^{J. L}^e^wⁱ^s^A^L^D^7-⁶¹⁹⁰
^A^bortⁱ^oⁿ^,^l^e^g^a^lⁱ^s^s^u^es^Jon^S^hⁱ^m^abak^u^r^o^A^L^D^7-⁷⁹⁹⁰
^A^bortⁱ^oⁿ^procedu^r^es^Ju^di^t^h^A^.^Johⁿ^s^on^D^S^P⁷^-⁷⁰⁷⁷
^A^I^D^S^{, R}^y^an^Whⁱ^t^e^prog^ram^s^Ju^di^t^h^A^.^Johⁿ^s^on^D^S^P⁷^-⁷⁰⁷⁷
^Bi^ot^errori^s^m^{, H}^H^S^f^uⁿ^dⁱⁿ^g^C^{. S}^t^eph^eⁿ^R^e^dh^ead^D^S^P⁷^-²²⁶¹
^Bi^ot^errori^s^m^{, H}^H^S^f^uⁿ^dⁱⁿ^g^P^am^el^{a W. S}^mⁱ^t^h^D^S^P⁷^-⁷⁰⁴⁸
^C^aⁿ^{cer res}^earch^Ju^di^t^h^A^.^Johⁿ^s^on^D^S^P⁷^-⁷⁰⁷⁷
^C^eⁿ^t^ers^f^o^{r D}ⁱ^s^eas^{e C}^oⁿ^t^rol^an^{d Prev}^en^tⁱ^oⁿ^P^am^el^{a W. S}^mⁱ^t^h^D^S^P⁷^-⁷⁰⁴⁸
^C^hⁱ^l^d^{care an}^{d dev}^e^l^opm^en^t^M^elⁱⁿ^{da G}ⁱ^s^h^D^S^P⁷^-⁴⁶¹⁸
^C^h^{ild w}^e^lf^are^E^m^{ilie Stoltzf}^u^s^D^SP^7-²³²⁴
^C^l^onⁱⁿ^g^,^S^t^em^C^e^l^l^R^e^s^earch^Ju^di^t^h^A^.^Johⁿ^s^on^D^S^P⁷^-⁷⁰⁷⁷
^Co^m^m^uni^t^y^H^e^a^l^t^h^Ce^nt^e^r^s^S^ha^r^o^{n K}^e^a^r^ne^y^D^S^P⁷^-⁷³⁶⁷
^Co^le^m^aⁿ
^Fam^ily^P^l^anⁿⁱⁿ^g^,^T^{itle X}^S^h^a^r^oⁿ^Kearⁿ^e^y^D^S^P⁷^-⁷³⁶⁷
^Co^le^m^aⁿ
^H^{ead S}^t^art^M^elⁱⁿ^{da G}ⁱ^s^h^D^S^P⁷^-⁴⁶¹⁸
^Health^prof^es^sⁱ^on^s^edu^cation^an^{d train}ⁱⁿ^g^B^e^rn^ice^D^S^P⁷^-²²⁶⁰
^Rey^e^s-^A^kⁱⁿ^b^ilej^e
^Im^mⁱ^g^r^atⁱ^oⁿ^an^{d ref}^u^g^{ee pol}ⁱ^c^y^R^u^t^h^Was^e^m^D^S^P^7-⁷³⁴²
^Im^m^uⁿⁱ^zatⁱ^oⁿ^P^am^el^{a W. S}^mⁱ^t^h^D^S^P⁷^-⁷⁰⁴⁸
^L^o^w^-^In^com^e^Hom^e^En^erg^y^A^s^sⁱ^s^t^an^{ce P}^r^og^ram^E^m^{ilie Stoltzf}^u^s^D^SP^7-²³²⁴
^Matern^{al an}^{d C}^h^{ild Health}^B^l^ock^Gran^t^S^h^a^ron^Kearn^e^y^D^S^P⁷^-⁷³⁶⁷
^Co^le^m^aⁿ
^Medi^cai^d^E^lⁱ^cⁱ^a^H^e^rz^D^S^P⁷^-¹³⁷⁷
^Medicare^J^enⁿⁱ^f^e^{r O’}^Su^lliv^an^DSP⁷^-⁷³⁵⁹
^N^eedl^e^ex^ch^an^g^e^{, A}^I^D^S^Ju^di^t^h^A^.^Johⁿ^s^on^D^S^P⁷^-⁷⁰⁷⁷
^N^I^H^,^h^eal^t^h^res^earch^polⁱ^c^y^P^am^el^{a W. S}^mⁱ^t^h^D^S^P⁷^-⁷⁰⁴⁸
^N^I^H^,^h^eal^t^h^res^earch^polⁱ^c^y^J^u^dⁱ^t^h^A^.^Johⁿ^s^on^D^S^P⁷^-⁷⁰⁷⁷
^O^l^d^e^r^A^m^e^rⁱ^c^aⁿ^{s A}^c^t^C^a^r^o^l^V^.^O^’^Sha^ughne^ssy^D^S^P⁷^-⁷³²⁹
^S^o^ci^al^S^e^rvⁱ^ces^Bl^ock^G^r^an^t^M^elⁱⁿ^{da G}ⁱ^s^h^D^S^P⁷^-⁴⁶¹⁸

^CRS
^{Area of E}^x^pertis^e^N^am^e^Divⁱ^sioⁿ^Telepho^ne
^S^t^at^{e C}^hⁱ^l^d^ren^’^s^H^eal^t^h^In^s^u^ran^{ce Prog}^ram^E^v^e^l^yⁿ^e^Bau^m^ru^ck^er^D^S^P⁷^-⁸⁹¹³
^S^t^em^C^e^l^l^R^e^s^earch^{, C}^l^onⁱⁿ^g^J^u^dⁱ^t^h^A^.^Johⁿ^s^on^D^S^P⁷^-⁷⁰⁷⁷
^S^u^bs^t^aⁿ^{ce A}^b^u^s^{e an}^{d Men}^t^al^H^eal^t^h^S^e^rvⁱ^ces^C^.^S^t^eph^eⁿ^R^e^dh^ead^D^S^P⁷^-²²⁶¹
^T^{obacco s}^e^ttlem^eⁿ^t^C^.^Steph^eⁿ^R^e^dh^ead^DSP⁷^-²²⁶¹
^Wel^f^{are ref}^o^rm^V^{ee Bu}^rk^e^D^S^P^7-⁷³⁰⁴
^Wel^f^{are ref}^o^rm^G^eⁿ^e^F^a^l^k^D^S^P⁷^-⁷³⁴⁴
^Depa^rt^m^e^nt^o^f^Educa^t^ioⁿ
^A^d^u^{lt edu}^cation^an^{d literacy}^P^a^u^l^{M. Irw}ⁱⁿ^D^SP^7-⁷⁵⁷³
^A^f^ter-^s^c^h^{ool prog}^ram^s^{Gail McC}^a^llion^D^SP^7-⁷⁷⁵⁸
^A^s^s^e^s^s^m^en^tⁱⁿ^edu^catⁱ^oⁿ^W^ayⁿ^e^C^.^Rⁱ^ddl^e^D^S^P^7-⁷³⁸²
^Bⁱ^lⁱ^ngua^l^e^d^uc^a^tⁱ^oⁿ^J^e^{ff K}^u^eⁿ^zⁱ^D^S^P⁷^-⁸⁶⁴⁵
^C^h^art^e^{r S}^c^h^ool^s^D^avⁱ^d^S^m^ol^e^D^S^P^7-⁰⁶²⁴
^Edu^catⁱ^oⁿ^bl^ock^g^r^an^t^s^Beck^y^S^kⁱⁿⁿ^e^r^D^S^P^7-⁶⁶⁰⁰
^Edu^cation^of^th^{e Dis}^a^dv^an^tag^e^{d, T}^{itle I}^W^ayⁿ^e^C^.^Rⁱ^ddle^D^SP^7-⁷³⁸²
^Edu^catⁱ^oⁿ^t^echⁿ^o^l^o^g^y^Jam^e^s^{B. S}^t^edm^aⁿ^D^S^P^7-⁷³⁵⁶
^E^{nglish L}^a^ngua^ge^A^c^q^u^isitioⁿ^J^e^{ff Kue}ⁿ^zⁱ^DSP⁷^-⁸⁶⁴⁵
^Im^pact^Aⁱ^d^B^eck^y^S^kⁱⁿⁿ^e^r^D^S^P^7-⁶⁶⁰⁰
^In^di^an^Edu^catⁱ^oⁿ^R^og^{er Wal}^k^e^D^S^P^7-⁸⁶⁴¹
^Pel^l^G^r^an^t^s^Jam^e^s^{B. S}^t^edm^aⁿ^D^S^P^7-⁷³⁵⁶
^R^eadin^g^prog^ram^s^{Gail McC}^a^llion^D^SP^7-⁷⁷⁵⁸
^R^e^h^a^bilitation^A^c^t^S^idath^P^aⁿ^aⁿ^g^a^la^DSP⁷^-⁰⁶²³
^Saf^e^an^{d Dru}^g^-^{Free Sch}^ools^an^{d C}^o^m^m^uⁿ^ities^E^dith^Fairm^aⁿ^C^ooper^D^SP^7-⁷⁰¹⁹
^Sch^{ool f}^acilities^S^u^s^an^B^o^ren^D^SP^7-⁶⁸⁹⁹
^S^p^eci^al^edu^catⁱ^oⁿ^,^ID^EA^Rⁱ^ch^{ard N}^.^A^p^lⁱⁿ^g^D^S^P^7-⁷³⁵²
^S^p^eci^al^edu^catⁱ^oⁿ^,^ID^EA^{, l}^e^g^a^lⁱ^s^s^u^es^N^aⁿ^c^y^L^{ee Jon}^e^s^A^L^D^7-⁶⁹⁷⁶
^S^t^u^d^en^t^ai^d^J^am^es^{B. S}^t^edm^aⁿ^D^S^P^7-⁷³⁵⁶
^S^t^u^d^en^t^l^o^an^s^A^dam^S^t^ol^l^D^S^P^7-⁴³⁷⁵
^T^each^{er recru}^itm^en^{t, preparation}^,^an^{d train}ⁱⁿ^g^Jam^e^s^{B. S}^t^edm^aⁿ^D^S^P^7-⁷³⁵⁶
²¹^st^C^eⁿ^t^u^r^y^C^o^m^m^uⁿ^ity^L^earnⁱⁿ^g^C^eⁿ^t^ers^G^{ail McC}^a^llion^D^SP^7-⁷⁷⁵⁸
^V^o^catⁱ^oⁿ^a^l^an^{d T}^echⁿⁱ^cal^Edu^catⁱ^oⁿ^B^eck^y^S^kⁱⁿⁿ^e^r^D^S^P^7-⁶⁶⁰⁰
^{Related Agencies}
^Co^r^p^o^r^atioⁿ^f^o^r^Natioⁿ^a^{l an}^d^Co^m^m^uⁿ^ity^Ser^v^ice^Aⁿⁿ^L^o^rdem^an^D^S^P⁷^-²³²³
^(VIS^T^A^{, S}^eⁿⁱ^{or C}^o^rps⁾
^C^o^rporatⁱ^oⁿ^f^o^{r Pu}^blⁱ^c^Broadcas^tⁱⁿ^g^G^l^eⁿⁿ^McL^o^u^g^h^lⁱⁿ^R^S^I⁷^-⁷⁰⁷³
^Lⁱ^brary^Serv^ices^{Gail McC}^a^llion^D^SP^7-⁷⁷⁵⁸
^Mu^s^e^u^m^S^e^rvⁱ^ces^S^u^s^aⁿ^Boren^D^S^P^7-⁶⁸⁹⁹
^Nation^a^{l L}^a^{bor R}^e^lation^s^B^o^ard^G^{ail McC}^a^llion^D^SP^7-⁷⁷⁵⁸
^N^a^tⁱ^o^na^l^La^b^o^r^Re^l^a^tⁱ^o^{ns B}^o^a^r^d^,^l^e^ga^lⁱ^ssue^s^J^o^{n Shi}^m^a^b^ukur^o^A^LD⁷^-⁷⁹⁹⁰
^R^aⁱ^l^r^{oad R}^e^tⁱ^r^em^en^t^Board^D^awⁿ^N^u^s^c^h^l^er^D^S^P⁷^-⁶²⁸³
^S^o^ci^al^S^ecu^ri^t^y^A^d^mⁱⁿⁱ^s^t^ratⁱ^oⁿ^G^eof^f^r^ey^K^o^l^l^m^anⁿ^D^S^P^7-⁷³¹⁶
^S^u^ppl^em^en^t^a^l^S^ecu^ri^t^y^In^com^e^Jenⁿⁱ^f^e^{r L}^a^k^e^D^S^P⁷^-⁰⁶²⁰
^Dⁱ^vⁱ^sⁱ^on^abbrevⁱ^a^tⁱ^ons:^A^L^D^{= A}^m^eri^can^L^a^w^;^D^S^P^{= Dom}^e^s^{tic Social P}^o^licy^;^an^{d R}^S^{I = R}^e^s^o^u^r^ces^,
^Scien^{ce, an}^{d In}^du^s^t^ry^.

Contents
Most Recent Developments..........................................1
Status ...........................................................1
Summary and Key Issues............................................3
Program Level and Current Year Appropriations.....................3
Funding Changes Requested by the President........................5
House Legislative Proposal, as Introduced..........................7
Senate Legislative Proposal, as Passed.............................8
FY2003 Public Law Summary....................................9
“Across-the-Board” Reductions..............................10
Earmarks for Specific Projects...................................11
302(a) and 302(b) Allocation Ceilings.............................12
Advance Appropriations.......................................13
Major Funding Trends.........................................13
Continuing Resolutions........................................14
Terrorism and Homeland Security Assistance.......................15
World Wide Web Sites........................................16
Department of Labor..............................................17
Key Issues..................................................17
President’s Request.......................................17
House Bill, as Introduced...................................18
Senate Bill, as Passed......................................18
Public Law..............................................18
CRS Products................................................18
World Wide Web Sites........................................19
Detailed Appropriations Table...................................19
Department of Health and Human Services.............................22
Key Issues..................................................22
President’s Request.......................................22
House Bill, as Introduced...................................23
Senate Bill, as Passed......................................24
Public Law..............................................24
Bioterrorism Preparedness..................................25
Abortion: Funding Restrictions..............................25
Embryonic Stem Cell Research: Funding Restrictions............26
CRS Products................................................26
World Wide Web Sites........................................27
Detailed Appropriations Table...................................27
Department of Education...........................................30
Key Issues..................................................30
President’s Request.......................................30
House Bill, as Introduced...................................31
Senate Bill, as Passed......................................32

Pell Grants..............................................32
Student Aid Program Administration.........................33
IDEA Part B Grants to States................................34
Forward Funding and Advance Appropriations..................34
CRS Products................................................35
World Wide Web Sites........................................36
Detailed Appropriations Table...................................36
Related Agencies.................................................39
Key Issues..................................................39
President’s Request.......................................39
House Bill, as Introduced...................................40
Senate Bill, as Passed......................................40
Public Law..............................................40
CRS Products................................................40
World Wide Web Sites........................................40
Detailed Appropriations Table...................................41
Related Legislation...............................................44
FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111)..........44
FY2002 Supplemental Appropriations, P.L. 107-206 (H.R. 4775).......45
FY2003 Budget Resolution, H.Con.Res. 353/S.Con.Res. 100..........46
Department of Homeland Security, P.L. 107-296 (H.R. 5005)..........46
Appropriations Action in the 107^th Congress, First Session............47
Appendix A: Terminology.........................................49
Appendix B: Scope of L-HHS-ED Appropriations......................50
Appendix C: Terrorism Funding in L-HHS-ED Appropriations ............53
List of Tables
Table 1. Legislative Status of Labor, Health and Human Services, and
Education Appropriations, FY2003................................1
Table 2. Summary of L-HHS-ED Appropriations........................4
Table 3. 302(b) Discretionary Allocationsfor L-HHS-ED Programs.........12
Table 4. L-HHS-ED Discretionary Funding Trends from FY1998..........14
Table 5. Department of Labor Discretionary Appropriations...............17
Table 6. Detailed Department of Labor Appropriations...................20
Table 7. Department of Health and Human Services Discretionary
Appropriations ...............................................22
Table 8. Detailed Department of Health and Human Services Appropriations.28
Table 9. Department of Education Discretionary Appropriations...........30
Table 10. Detailed Department of Education Appropriations..............37
Table 11. Related Agencies Discretionary Appropriations.................39
Table 12. Detailed Related Agencies Appropriations.....................42
Table B.1. Scope of the L-HHS-ED Bill, FY2002.......................50

Appropriations for FY2003:
Labor, Health and Human Services,
and Education
Most Recent Developments
P.L. 108-7 Enacted. Following a series of eight continuing resolutions, the
Departments of Labor, Health and Human Services, and Education, and Related
Agencies (L-HHS-ED) Appropriations Act, 2003, was enacted February 20, 2003,
as part of P.L. 108-7 (H.J.Res. 2). Prior to a reduction for most discretionary
programs, the Act provides $135.8 billion for L-HHS-ED discretionary programs.
Senate Version of H.J.Res. 2 Passed. On January 23, 2003, the Senate
passed H.J.Res. 2 that would provide $140.5 billion in discretionary L-HHS-ED
appropriations, prior to required cut to most discretionary programs.
House Bill H.R. 246 Introduced. On January 8, 2003, L-HHS-ED
Subcommittee Chairman Regula introduced an FY2003 bill, H.R. 246, that would
provide $131.0 billion in discretionary funds for L-HHS-ED programs.
President’s FY2003 Budget Submitted. On February 4, 2002, the
President submitted the FY2003 budget request to Congress, proposing $130.7
billion in discretionary funds for L-HHS-ED programs. Including supplemental
appropriations, the FY2002 L-HHS-ED discretionary total was $128.1 billion.
Status
Table 1. Legislative Status of Labor, Health and Human
Services, and Education Appropriations, FY2003
^Subco^m^mⁱ^t^t^ee^Conference
^ma^r^k^u^p^Hou^s^e^Hou^s^e^Sena^t^e^Sena^t^e^Conferenc^rep^{ort ap}^p^r^oval^Public
^Repo^rt^p^a^s^s^age^Repo^rt^p^a^s^s^age^{e Report}^la^w^H^o^use^S^ena^t^e^H^o^u^se^Sena^t^e
^H.J^.^R^e^{s. 2}^H.R^e^p^t^.^02/^13/⁰³^02/^13/⁰³^P.^L^.^108-⁷
^—^a^—^b^——^—^c^01/^23/⁰³^d^108-¹⁰^e^338-⁸³^f^76-²⁰^g^02/^20/⁰³
^69-²⁹^02/^13/⁰³^h
^a^Th^e^Hou^s^e^L^-^H^H^S^-^E^D^A^ppropri^a^tⁱ^oⁿ^s^S^u^bcom^mⁱ^t^t^{ee beg}^aⁿ^h^eariⁿ^g^s^on^F^Y^{2003 appropri}^a^tⁱ^oⁿ^s^on
^F^e^bru^a^ry^{13, 2002. D}^u^riⁿ^g^t^h^e¹⁰⁷^th^Coⁿ^g^r^ess^an^d^w^ith^o^u^{t Co}^m^m^{ittee m}^a^r^k^u^p^{, Ho}^u^s^{e A}^p^p^r^o^p^r^iatioⁿ^s
^Co^m^mⁱ^t^t^e^e^Chaⁱ^r^m^aⁿ^Y^o^{ung i}ⁿ^t^r^o^d^u^c^e^d^t^h^e^P^r^e^sⁱ^d^eⁿ^t^’^{s FY}²⁰⁰³^L-H^H^S^{-ED requ}^es^{t as}^{a bill,}^th
^H.^R^.⁵³²⁰^{, on}^S^e^pt^em^{ber 4, 2002. D}^u^riⁿ^g^t^h^{e 108}^Coⁿ^g^r^{ess an}^d^w^ith^o^u^{t Co}^m^m^{ittee m}^a^r^k^u^p^,

^Su^bcom^m^{ittee C}^h^airm^an^R^e^g^u^l^{a in}^trodu^{ced a dif}^f^e^ren^t^v^e^rs^ion^of^th^{e FY2003 L}^-^HHS-^E^{D bill,}
^H.R^.²⁴⁶^{, on}^Jan^u^a^ry^{8, 2003.}^b
^Th^e^Sena^t^e^L^-^H^H^S^-^E^D^A^ppropri^a^tⁱ^oⁿ^s^S^u^bcom^mⁱ^t^t^{ee beg}^aⁿ^h^eariⁿ^g^s^on^F^Y²⁰⁰³^appropri^a^tⁱ^oⁿ^s^on
^Febru^a^ry^{28, 2002. On}^J^u^ly^{16, 2002, th}^{e Su}^bco^m^mⁱ^{ttee m}^a^rk^{ed u}^p^an^{d reported ou}^{t a bill by}
^unaⁿⁱ^m^o^{us c}^o^nseⁿ^t^.^c
^S^.²⁷⁶⁶^w^a^s^{reported (S.R}^{ept. 107-}²¹⁶⁾^by^th^e^A^ppropriation^s^C^o^m^m^{ittee on}^J^u^ly^{22, 2002, bu}^{t th}^e^th
^b^{ill m}^a^d^eⁿ^o^f^u^r^t^h^e^r^p^r^o^g^r^e^{ss d}^u^rⁱⁿ^g^th^{e 1}⁰⁷^Co^ngr^e^ss.^d
^H.J.Res^.²^w^a^s^am^en^{ded an}^{d pas}^s^e^{d by}^t^h^{e S}^eⁿ^a^t^e^on^Jan^u^a^ry^{23, 2003, t}^o^creat^{e an}^omⁿⁱ^bu^s
^{FY2003 appropriation}^s^{bill th}^{at w}^o^u^l^{d con}^s^{olidate th}^{e rem}^aⁱⁿⁱⁿ^g^{11 of}^th^{e 13 reg}^u^l^{ar appropriation}^s
^b^{ills n}^o^{t y}^e^{t en}^acted^{. Fo}^r^Sen^a^{te co}ⁿ^s^id^er^atioⁿ^o^f^H^.^J^.^R^e^s^.²^,^see^C^ongr^es^sⁱ^onal^Recor^d^{, Daily}
^Edition^,^J^aⁿ^u^a^ry^{15, 2003,}^p.^S340-^839;^J^aⁿ^u^a^ry^{16, p. S999-}^{1064; J}^aⁿ^u^a^ry^{17, p.}^S1101-¹¹²³^an^d
^S^1132-¹¹³⁴^;^J^aⁿ^u^a^r^y²¹^,^p^.^S^1171-^{1234 an}^{d S}^1238-^1241;^Jan^u^a^ry^{22, p. S}^1302-^{1307 an}^{d S}¹³²⁵^-
^1359;^an^{d Jan}^u^a^ry^{23, p. S}^1379-^{1419 an}^d^S^1421-^1460.^S^eⁿ^a^t^e^approv^al^w^a^s^by^R^o^l^l^C^a^l^lⁿ^o^{. 28 (69-}
^29),^Jan^u^a^ry^{23, 2003, p. S}^{1437. F}^o^{r t}^e^x^t^of^t^h^{e S}^eⁿ^a^t^e^am^en^dm^en^t^t^o^H^.^J.R^e^s^.^{2, s}^ee^C^ongr^es^sⁱ^onal
^Recor^d^{, Daily}^Edition^,^J^aⁿ^u^a^ry^{28, 2003, p. S1512-}^1642.^e
^Th^e^tex^t^{of con}^f^eren^{ce rep}^{ort H.Rep}^t^{. 108-10}^,^fⁱ^l^e^d^F^e^b^r^u^a^r^y¹³^,^2003,^w^a^s^p^rⁱⁿ^t^e^dⁱⁿ^t^h^e
^C^ongr^es^sⁱ^onal^Recor^d^{, Daily}^Edition^,^Febru^a^ry^{13, 2003 [B}^ook^{II], p. H707-}^H1276.^f
^Fo^r^H^o^{use pa}^ssa^g^e^of^th^{e con}^f^eren^{ce report, s}^ee^C^ongr^es^sⁱ^onal^Recor^d^{, Daily}^Ed^itioⁿ^,^Feb^r^u^a^r^y¹³^,
^{2003, p. H}^589-^{673. R}^o^l^l^cal^lⁿ^o^{. 32 (338-}^{83), F}^e^bru^a^ry^{13, 2003, p. H}^671-^2.^g
^Fo^r^Sena^t^e^pa^ssa^g^e^of^th^{e con}^f^eren^{ce report, s}^ee^C^ongr^es^sⁱ^onal^Recor^d^{, Daily}^Ed^itioⁿ^,^Feb^r^u^a^r^y¹³^,
^{2003, p. S}^2428-^{39. R}^o^l^l^cal^lⁿ^o^{. 34 (76-}^{20), F}^e^bru^a^ry^{13, 2003, p. S}^2439.^h
^Eⁱ^gh^t^FY^{2003 con}^tⁱⁿ^uⁱⁿ^g^res^ol^u^tⁱ^oⁿ^s^,^b^e^giⁿⁿⁱ^{ng w}ⁱ^t^h^P.L^.^{107-229 (H.J.R}^es^{. 111)}^{, as}^am^en^ded,
^provⁱ^d^{ed t}^e^m^porary^f^uⁿ^dⁱⁿ^g^f^o^{r L}^-^H^H^S^-^E^D^prog^ram^s^f^r^om^O^c^t^{ober 1, 2002, t}^o^F^e^bru^a^ry^{20, 2003.}
Data Note. In this report, data on FY2002 and FY2003 appropriations are
based on the FY2003 conference report H.Rept. 108-10, February 13, 2003.
Amounts based on a source other than the FY2003 conference report are noted where
relevant. In most cases data represent net funding for specific programs and activities
and take into account current and forward funding and advance appropriations;
however, all data are subject to additional budgetary scorekeeping. Except where
noted, budget data refer only to those programs within the purview of the L-HHS-ED
appropriations bill, and not to all programs within the jurisdiction of the relevant
departments and agencies. The FY2003 amounts for the Senate and conference
versions of the bill do not reflect subsequent cuts to most discretionary programs
required elsewhere in the Senate and conference versions, as discussed on page 10.
Final FY2003 appropriations that reflect these reductions were not specified in the
bills, and are not yet available in a form comparable to those provided in the
conference report.
FY2004 Budget Request. On February 3, 2003, the President submitted the
FY2004 budget to the Congress. Overall, the President requests discretionary
appropriations of $135.1 billion for L-HHS-ED programs (Budget of the U.S.
Government, Fiscal Year 2004, Table S-8). FY2004 budget details related to
L-HHS-ED programs will be separately addressed in a forthcoming CRS report.
FY2002 Appropriations. FY2002 L-HHS-ED appropriations were enacted
in several stages, including: eight continuing resolutions — P.L. 107-44, as
amended; regular FY2002 L-HHS-ED appropriations — P.L. 107-116 (H.R. 3061,
H.Rept. 107-342), January 10, 2002; the FY2002 anti-terrorism supplemental
appropriation — P.L. 107-117 (H.R. 3338, H.Rept. 107-350), January 10, 2002; and
further emergency FY2002 supplemental appropriations — P.L. 107-206 (H.R. 4775,
H.Rept. 107-593), August 2, 2002. For additional legislative details, see Related
Legislation, page 44.

Summary and Key Issues
This report describes the President’s proposal for FY2003 appropriations for
L-HHS-ED programs, as submitted to the Congress February 4, 2002, and the
congressional response to that proposal. It compares the President’s FY2003 request
to the FY2002 L-HHS-ED amounts. It tracks legislative action and congressional
issues related to the FY2003 L-HHS-ED appropriations bill, with particular attention
paid to discretionary programs. In addition, the report summarizes activities related
to the annual budget process, such as the congressional budget resolution, continuing
resolutions, and supplemental appropriations (see Related Legislation, page 44).
However, the report does not follow specific funding issues related to mandatory
L-HHS-ED programs — such as Medicare or Social Security — nor will it follow the
authorizing legislation necessary prior to funding some of the President’s initiatives.
For a glossary of budget terms, see Appendix A: Terminology, page 49. For a
discussion of the jurisdiction of the L-HHS-ED bill, see Appendix B: Scope of the
L-HHS-ED Bill, page 50. For a separate description of terrorism funding, see
Appendix C: Terrorism Funding in the L-HHS-ED Bill, page 53.
The L-HHS-ED bill typically is one of the more controversial of the 13 regular
appropriations bills, not only because of the size of its funding total and the scope of
its programs, but also because of the continuing importance of various related issues,
such as restrictions on the use of federal funds for abortion and stem cell research.
This bill provides most of the discretionary funds for three federal departments and
several related agencies including the Social Security Administration (SSA). Of the
13 annual appropriations bills, the L-HHS-ED bill is the largest single source of
discretionary funds for domestic federal programs; the Defense bill is the largest
source of discretionary funds among all federal programs. For FY2002, the
L-HHS-ED bill accounted for $124.6 billion (17.9%) and the Defense bill accounted
for $320.5 billion (46.0%) of the estimated $696.5 billion total for all federal
discretionary budget authority, as reported in Budget of the United States Government
Fiscal Year 2003, Table S-8. This section summarizes the larger funding changes
proposed for L-HHS-ED and related issues such as funds for anti-terrorism activities,
earmarks for specific projects, 302(b) allocations, and advance appropriations. Later
sections will provide additional details for each L-HHS-ED department.
Program Level and Current Year Appropriations
Table 2 summarizes the L-HHS-ED appropriations for FY2003, including both
discretionary and mandatory appropriations. The table shows various aggregate
measures of FY2002 final and FY2003 proposed L-HHS-ED appropriations,
including discretionary program level, current year, and advance appropriations, as
well as scorekeeping adjustments.
^!Program level appropriations reflect the total discretionary
appropriations in a given bill, regardless of the year in which they
will be spent, and therefore include advance funding for future years.
Unless otherwise specified, appropriations levels in this report refer
to program level amounts.

^!Current year appropriations represent discretionary
appropriations in a given bill for the current year, plus discretionary
appropriations for the current year that were enacted in prior years.
Current year discretionary appropriations are similar to the amount
counted for the 302(b) allocations ceilings (discussed later, page 12).
^!Advance appropriations are funds that will not become available
until after the fiscal year for which the appropriations are enacted –
for example, funds included in the FY2003 Act that cannot be spent
until FY2004 at the earliest (discussed later, page 13).
^!Scorekeeping adjustments are made to account for special funding
situations; the Congressional Budget Office (CBO) monitors these
adjustments.
Table 2. Summary of L-HHS-ED Appropriations
($ in billions)
^FY²⁰⁰²^a^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Ty^{pe o}^f^budg^et^a^u^t^h^o^r^it^y^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^Dis^cretionary^{appropriations}
^P^r^o^g^r^a^m^lev^e^{l: cu}^r^r^eⁿ^t^b^{ill f}^o^r^$128.1^$130.7^$131.0^$140.5^$135.8
^an^y^y^ear
^C^u^rren^t^y^{ear: cu}^rren^t^y^{ear f}^r^om^127.2^131.9^130.8^136.5^133.4
^an^y^b^ill
^A^d^v^aⁿ^ces^f^o^{r f}^u^tu^{re y}^ears^(f^rom^19.3^18.9^19.3^23.0^21.5
^th^{e cu}^r^r^eⁿ^t^b^ill)
^A^d^v^aⁿ^ces^f^r^om^{prior y}^ears^18.8^19.2^19.2^19.2^19.2
⁽^f^r^o^m^p^r^ev^io^u^s^b^ills)
^Scorek^eepin^g^adj^u^s^t^m^eⁿ^t^s^-^0.4⁰^.9^-⁰^.1^-⁰^.2^-⁰^.1
^{Current y}^e^a^r^discretio^na^ry^a^{nd m}^a^nda^to^ry^funding
^Dⁱ^s^c^retⁱ^oⁿ^a^ry^127.2^131.9^130.8^136.5^133.4
^Man^d^at^ory^272.9^290.6^290.7^290.7^290.7
^T^o^t^a^l^cu^rren^t^y^ear^400.1^422.5^421.5^427.2^424.1
^G^r^a^{nd t}^o^t^a^{l o}^f^f^unding^f^o^{r L-}^H^H^S^-^E^{D bill, a}ⁿ^y^y^e^a^r
^G^r^an^{d t}^o^t^a^l^an^y^y^ear^$411.8^$426.8^$427.3^$436.8^$432.0
^Source:^A^m^ouⁿ^t^s^{are bas}^e^{d on}^t^h^{e F}^Y²⁰⁰³^con^f^eren^ce^report^(H^.R^ept^.^108-^10,^F^e^bru^a^ry^{13, 2003).}
^T^h^{e FY2003}^am^ouⁿ^t^s^f^o^{r th}^{e Sen}^a^{te an}^{d con}^f^eren^{ce v}^e^rs^ion^s^of^th^{e bill do n}^o^{t ref}^l^{ect s}^u^bs^equ^eⁿ^t^cu^ts
^t^o^m^o^s^t^di^s^c^retⁱ^oⁿ^a^ry^prog^ram^s^requⁱ^r^{ed el}^s^e^w^h^{ere i}ⁿ^t^h^os^{e v}^e^rsⁱ^oⁿ^s^(s^{ee pag}^e^10).
^No^te:^Bot^h^F^Y^{2002 an}^{d F}^Y^{2003 m}^aⁿ^d^at^ory^am^ouⁿ^t^s^{are es}^tⁱ^m^at^es^t^h^at^{are s}^u^bj^ect^t^o^adj^u^s^t^m^eⁿ^t^s
^af^{ter th}^{e clos}^{e of}^th^{eir res}^p^ectiv^{e f}ⁱ^s^{cal y}^ears^.
^a^T^h^{e F}^Y^{2002 am}^ouⁿ^t^s^{are bas}^e^{d on}^P.L^.^107-^{116, P.L}^.^107-^{117, an}^{d P.L}^.^107-^206.
Because appropriations may consist of mixtures of budget authority enacted in
various years, two summary measures are frequently used — program level
appropriations and current year appropriations. How are these measures related? For
an “operational definition,” program level funding equals (a) current year, plus (b)

advances for future years, minus (c) advances from prior years, and minus (d)
scorekeeping adjustments. Table 2 shows these amounts, along with current year
funding for mandatory programs and some grand totals for the L-HHS-ED bill.
Other FY2002 Discretionary Estimates. The two estimates for FY2002
L-HHS-ED discretionary appropriations that are shown in Table 2 — $128.1 billion
for program level and $127.2 billion for current year appropriations — are based on
the FY2003 conference report. Several other estimates exist that may differ because
of supplemental appropriations, rescissions, scorekeeping adjustments, and other
definitional distinctions. The Office of Management and Budget (OMB) estimated
the FY2002 L-HHS-ED discretionary total to be $124.6 billion (Budget of the United
States Government Fiscal Year 2003, Table S-8). The FY2002 L-HHS-ED
conference report table in H.Rept. 107-342 (page 228) gave $123.4 billion as the
FY2002 current year discretionary total. The CBO keeps track of discretionary
appropriations for each Appropriations Subcommittee bill, and shows the total
regular and emergency amount for L-HHS-ED in “CBO’s Current Status of
Discretionary Appropriations,” available at [http://www.cbo.gov/]. According to the
CBO, the final FY2002 L-HHS-ED discretionary total is $127.2 billion for both the
House and the Senate (visited February 28, 2003). The CBO amounts include
supplemental appropriations and rescissions; however, during a given fiscal year,
CBO data may reflect legislation that has been reported or passed only by the House
or the Senate, and do not necessarily distinguish amounts actually enacted.
Funding Changes Requested by the President
With regard to the President’s budget, the primary issues raised during the
congressional consideration of any appropriations request generally relate to
proposed funding changes. The summary below notes changes proposed for FY2003
discretionary budget authority of at least $100 million compared to the FY2002
amount. Viewing this list by itself should be done with caution, since the relative
impact of a $100 million funding change to a $500 million program (a 20% increase
or decrease) is greater than a $100 million change to a $5 billion program (a 2%
increase or decrease). Later in this report, the discussions of budgets for individual
departments include tables to compare the FY2003 request with the FY2002 funding
for many of the major programs in the L-HHS-ED bill. Overall, $130.7 billion in
discretionary appropriations at the program level is requested for L-HHS-ED, a 2.0%
increase over the FY2002 amount of $128.1 billion. At the time of the initial
FY2003 request, the comparable FY2002 amount was $127.3 billion; P.L. 107-206
provided FY2002 supplemental appropriations of nearly $1.0 billion.
^!For Department of Labor (DOL) programs, a reduction of $0.5
billion is requested for job training programs authorized by the
Workforce Investment Act of 1998 (WIA). Overall, $11.5 billion in
discretionary appropriations is requested for DOL, a 4.2% decrease
compared to the FY2002 amount of $12.0 billion.
^!For Department of Health and Human Services (HHS) programs, the
largest discretionary funding change (in absolute terms) is a
requested increase of $3.8 billion for National Institutes of Health
(NIH). An increase of $115 million is requested for Community

Health Centers; however, the $120 million Community Access
Program would be eliminated. Other increases include $130 million
additional for Head Start and $130 million more for Safe and Stable
Families. An initial $184 million is requested for the Health
Facilities Construction Consolidation proposal. Requested decreases
include a $368 million reduction for Health Professions; $390
million less for the Centers for Disease Control and Prevention
(CDC); $300 million less for the Low-Income Home Energy
Assistance Program (LIHEAP); and a $366 million reduction for the
Public Health and Social Services Emergency Fund (PHSSEF). The
request would eliminate the $312 million Health Care and Other
Facilities program. Overall, $59.5 billion in discretionary
appropriations is requested for HHS, a 4.6% increase over the
FY2002 amount of $56.9 billion.
^!For Department of Education (ED) programs, the two largest
discretionary changes (in absolute terms) would be a $1.0 billion
increase each for Title I Part A Grants to Local Educational
Agencies (LEAs) for the Education of the Disadvantaged and the
Individuals with Disabilities Education Act (IDEA) Part B Grants to
States. After enactment of a $1.0 billion FY2002 supplemental, Pell
Grants would be decreased by $0.5 billion. The maximum award
under Pell Grants would be $4,000, the same as for FY2002. Other
major increases include $100 million more for the Reading First
programs, and $100 million for a new Charter Schools Facilities
Initiative. Decreases would include elimination of the $163 million
Rural Schools program; a $749 million decrease for Fund for the
Improvement of Education (FIE); and $142 million less for the Fund
for the Improvement of Postsecondary Education (FIPSE).
Discretionary funding of $932 million is requested to support the
creation of a new unified discretionary account for the
administration of federal student aid programs. This proposal would
be offset in part by a $797 million reduction obtained through a
reclassification of certain mandatory funds for student aid
administrative activities. Overall, $50.3 billion in discretionary
appropriations is requested for ED, a 0.8% increase over the FY2002
amount of $49.9 billion.
^!For the related agencies, the budget proposes an increase of $351
million for the Limitation on Administrative Expenses at the Social
Security Administration (SSA). The budget would eliminate the 2-
year advance appropriations for the Corporation for Public
Broadcasting (CPB); $380 million was provided in FY2002.
Overall, $9.3 billion in discretionary appropriations is requested for
related agencies, a 1.1% increase over the FY2002 amount of $9.2
billion.

House Legislative Proposal, as Introduced
On January 8, 2003, Representative Ralph Regula, Chairman of the House
Subcommittee on L-HHS-ED Appropriations, introduced H.R. 246, a bill to provide
FY2003 appropriations for L-HHS-ED programs. H.R. 246 was not agreed to by
either the Committee or Subcommittee, and was not passed by the House.
House Highlights. Overall, H.R. 246, as introduced, would provide program
level discretionary appropriations of $131.0 billion for L-HHS-ED programs. The
comparable amount requested by the President is $130.7 billion; the FY2002 amount
was $128.1 billion. The bill differs from the President’s request in a number of
details.
^!For DOL programs, the House bill proposes that WIA programs
would be funded at $5.1 billion, $102 million more than the FY2003
request. Overall, the House bill would provide $11.7 billion for
discretionary appropriations for DOL, $0.2 billion more than
requested but $0.3 billion less than the FY2002 amount.
^!For HHS programs, the House bill would fund Health Professions
at a level $375 million more than requested; the CDC would receive
$315 million more; and LIHEAP would receive $300 million more
than the request. However, the $300 million LIHEAP Emergency
Allocation would be eliminated under the House bill. The PHSSEF
would receive $212 million more than requested. The Community
Access program would be maintained at $120 million; termination
of funding is requested. The NIH would receive $0.7 billion less
than requested; discretionary funding for Promoting Safe and Stable
Families would receive $130 million less than requested. The House
bill does not accept the $184 million requested for the Health
Facilities Construction Consolidation proposal. Overall, the House
bill would provide $59.5 billion for discretionary appropriations for
HHS, the same as requested but $2.6 billion more than the FY2002
amount.
^!For ED programs, the House bill would provide $500 million less
than requested for Title I Part A Grants to LEAs, and $500 million
less for IDEA Part B Grants to States as well. Teacher Quality
would receive $100 million more than the request; the FIE would
receive $227 million more; Pell Grants would receive $337 million
more. Rural Education would be level funded at $163 million; no
funds are requested. The House bill would reject the President’s
request to fund mandatory student loan administrative activities on
a discretionary basis. Overall, the House bill would provide $50.3
billion for discretionary appropriations for ED, the same as
requested but $0.4 billion more than the FY2002 amount.
^!For related agencies, the House bill would provide appropriations at
approximately the level requested by the President with the
exception that the CPB would receive a 2-year advance

appropriation of $380 million for FY2005; the CPB would not
receive FY2005 funding under the request. Overall, the House bill
would provide $9.6 billion for discretionary appropriations for
related agencies, $0.3 billion more than the amount requested and
$0.4 million more than the FY2002 amount.
During the 107^th Congress, on September 4, 2002, Representative C. W. Bill
Young, Chairman of the House Appropriations Committee, introduced H.R. 5320,
a bill to provide FY2003 appropriations for L-HHS-ED programs in the exact same
amounts proposed by the President in the FY2003 budget request. The House
Appropriations Committee neither marked up nor reported H.R. 5320; the House did
not vote on this bill.
Senate Legislative Proposal, as Passed
On January 15, 2003, the Senate began consideration of an FY2003 omnibus
appropriations amendment to H.J.Res. 2, which would provide funds for 11 out of
the 13 annual appropriations acts that had not yet been enacted, including L-HHS-ED
appropriations. Following a series of amendments, the Senate passed H.J.Res. 2 on
January 23, 2003.
Senate Reduction. As passed by the Senate, H.J.Res. 2 included procedures
to reduce most discretionary appropriations from the amount otherwise enacted. The
intent was to meet the overall spending limitations requested by the President. The
cuts would apply to most FY2003 appropriations in H.J.Res. 2, as well as to advance
appropriations for FY2003 enacted in previous appropriations Acts. Section 601
(“Across-the-Board Rescissions”) of Division N of H.J.Res 2 provides for a
reduction of 1.6%. However, one of the floor amendments (§309 of Division G)
added $5.0 billion for innovative education programs and, to prevent the total for the
bill from increasing, directed that the percent specified for the cut should be
increased accordingly to account for the additional funds. The exact percentage was
never specified in the bill. The CBO reportedly made a preliminary calculation that
estimated the reduction to be 2.852%, which in turn would have decreased the
Senate-passed discretionary total by $11.392 billion. P.L. 108-7 also includes a
reduction to most discretionary programs, but the decrease is stated as 0.65%,
without further adjustments (see page 10). Senate and conference data in this report
are based on the unadjusted funding levels, enacted prior to the application of the
reductions, as the exact reductions for each program are not specified in the bill.
Senate Highlights. Overall, the FY2003 Senate bill, as passed, but prior to
the required reduction described above, would provide program level discretionary
appropriations of $140.5 billion for L-HHS-ED programs. The comparable amount
requested by the President is $130.7 billion; the FY2002 amount was $128.1 billion.
^!For DOL programs, the Senate bill would provide $80 million for
the WIA Migrant and Seasonal Farmworker Program; the FY2003
request is for zero funding. Overall, the Senate bill would provide
$11.8 billion in discretionary appropriations for DOL, $0.3 billion
more than requested but $0.2 billion less than the FY2002 amount.

^!For HHS programs, the Senate bill would provide NIH with an
increase of $3.7 billion, the same as requested in the FY2003 budget.
The bill would provide $399 million more than the request for
Health Professions; $115 million more for Ryan White AIDS
Programs; $344 million more for the CDC; and a net increase of
$300 million for the LIHEAP programs. The Community Access
Program would be funded at $120 million, the same as in FY2002;
no funds are requested. Overall, the Senate bill would provide $60.9
billion in discretionary appropriations for HHS, $1.4 billion more
than requested and $4.0 billion more than the FY2002 amount.
^!For ED programs, the Senate bill would provide a new FY2003
program of $5.0 billion for Innovative Education under Title I Part A
Grants; no funds are requested. IDEA Part B Grants to States would
be funded at $10.0 billion, $1.5 billion more than requested and $2.5
billion more than in FY2002. The Senate bill would not go along
with the $100 million request for Charter School Facilities, but it
would provide $175 million for Rural Education for which no funds
are requested. FIE programs would receive $642 million more than
requested, and Pell Grants would be funded at $317 million more
than the request. The maximum award under Pell Grants would be
increased to $4,100, an amount that is $100 more than requested or
provided in FY2002. The Senate bill would not support the
President’s proposal to unify the mandatory part of federal student
aid program administration. Overall, the Senate bill would provide
$58.2 billion in discretionary appropriations for ED, $7.9 billion
more than requested and $8.3 billion more than the FY2002 amount.
^!For related agencies, the Senate bill would provide appropriations at
approximately the level requested by the President for FY2003,
except that a 2-year advance appropriation of $395 million would be
provided for the CPB. Overall, the Senate bill would provide $9.6
billion in discretionary appropriations, $0.3 billion more than the
request and $0.4 billion more than the FY2002 amount.
During the 107^th Congress, the Senate Appropriations Committee reported a bill,
S. 2766, S.Rept. 107-216, on July 22, 2002, to provide program level discretionary
appropriations of $136.8 billion for L-HHS-ED programs in FY2003. The Senate did
not vote on this bill.
FY2003 Public Law Summary
H.J.Res. 2, the Consolidated Appropriations Resolution, 2003, was signed into
law by the President on February 20, 2003, as P.L. 108-7. The H.J.Res. 2 conference
report, H.Rept. 108-10, was approved by the House (roll call no. 32, 338-83) and by
the Senate (roll call no. 34, 76-20) on February 13, 2003. P.L. 108-7, Division G, is
the Departments of Labor, Health and Human Services, and Education, and Related
Agencies Appropriations Act, 2003. Division N of P.L. 108-7 requires a reduction
to be made to appropriations otherwise enacted for most discretionary programs.

“Across-the-Board” Reductions. In an effort to meet the overall spending
limitations requested by the President, the conference version of H.J.Res. 2 — like
the Senate-passed version of the bill — requires a reduction to be made to most
discretionary appropriations enacted elsewhere in the bill. The decrease applies to
most FY2003 appropriations found in H.J.Res. 2, as well as to advance
appropriations for FY2003 enacted in previous appropriations Acts. For eligible
appropriations, the reduction is to be applied to “each discretionary account and each
item of budget authority” and to each program, project, and activity within such
accounts or items. FY2003 discretionary amounts from Defense and Military
Construction Appropriations Acts are excluded, as are advance appropriations for
FY2004 or later in P.L. 108-7 and certain other specified exemptions, such as
appropriations in the bill for Head Start.
As stated in P.L. 108-7, Division N, Title VI “Offsets,” Section 601 “Across-
The-Board Rescissions,” the reduction is 0.65%. Although the exact percentage of
the final cut is specified, the reduced dollar amount for any account or line item is
not. On February 19, 2003, the OMB issued Bulletin No. 03-02, providing guidance
to departments and agencies regarding the procedures to be used in implementing the
reduction. Subject to OMB approval, agency determinations were to be completed
by February 28, 2003. However, there is no automatic procedure for publication of
the reduced funding amounts. Both Senate and conference data in this report are
based on the unadjusted funding levels, enacted prior to the application of the
reductions, as the exact reductions for each program are not yet known.
Funding Highlights. Several L-HHS-ED programs receive FY2003 funding
above the FY2002 level, including some above the President’s request; funding for
a few programs is less than in FY2002. As shown previously in Table 2, the FY2003
bill includes $135.8 billion in discretionary funding, $7.7 billion (6.0%) more than
the FY2002 amount of $128.1 billion. The FY2003 L-HHS-ED bill includes $21.5
billion in advance appropriations; the comparable FY2002 amount was $19.2 billion.
Discretionary funding for HHS, ED, and the related agencies aggregate is increased
for FY2003; the amount for DOL is slightly below the FY2002 funding level.
Compared to FY2002 funding levels, FY2003 appropriations are increased or
decreased by at least $100 million for the following programs; additional details and
funding amounts are provided in the separate agency summaries.
^!For DOL, WIA programs in aggregate are decreased, including
Youth Training and Youth Opportunity Grants. Funding for
Emergency Expenses for Workers Compensation Programs is
eliminated. Unemployment Compensation is increased.
^!For HHS, funding is increased for the NIH, Community Health
Centers, Ryan White AIDS Programs, Program Management at
Centers for Medicare and Medicaid Services (CMS), and Head Start.
Funding is reduced for the Public Health and Social Services
Emergency Fund (PHSSEF). Funding is eliminated for the LIHEAP
Emergency Allocation.
^!For ED, funding is increased for Title I Part A Grants to LEAs,
Reading First State Grants, Teacher Quality State Grants, IDEA
Special Education Part B Grants to States, and Pell Grants.

^!For Related Agencies, funding is increased for the SSA Limitation
on Administrative Expenses.
Modification of Existing Programs and Activities. In addition to
enacting appropriations, the FY2003 L-HHS-ED bill, as enacted, amends program
authorities or otherwise modifies provisions governing for the use of appropriations.
^!Section 103 prohibits the use of funds appropriated in the Act for the
purchase of goods produced by forced or indentured child labor,
as provided in Executive Order 13126 of June 12, 1999.
^!Section 217 amends the Older Americans Act to transfer the
Nutrition Services Incentives Program from the Department of
Agriculture to HHS.
^!Section 219 transfers $100 million available from the LIHEAP
Emergency Allocation to the regular LIHEAP program, for
allocation under the LIHEAP state grant formula.
^!Section 514 prohibits the transfer of any funds enacted under this
Act to any other governmental entity unless expressly allowed under
this Act or any other appropriation act.
^!P.L. 108-7, Division N, Title IV amends Temporary Assistance for
Needy Families (TANF) and Medicare provisions, including an
extension of TANF through June 30, 2003; a temporary increase of
Medicare payments to rural and other hospitals; and an
extension of federal payments for Medicare Part B through Medicaid
for qualifying individuals through September 30, 2003. For
additional information, see CRS Issue Brief IB93034, Welfare
Reform: An Issue Overview.
Earmarks for Specific Projects
The earmarking of funds for specific projects in appropriations bills has become
a topic of contention between the Administration and the Congress, and the issue
extends to L-HHS-ED projects. In some instances, L-HHS-ED appropriations are
earmarked for specific recipients or locations, either in the public law or in the
conference report. For the most part, the authorizing statute gives the general
purpose for such earmarks, such as “projects for the improvement of postsecondary
education,” but subsequently an appropriations act or conference report designates
specific recipients by means of earmarks. Such designations usually bypass standard
administrative procedures for an agency’s competitive distribution of awards. For
FY2002, P.L. 107-116 (conference report H.Rept. 107-342) included an estimated
1,600 earmarks for specific projects for which an estimated $1.0 billion was
appropriated. As shown in Table 2, the FY2002 L-HHS-ED appropriation was
$411.8 billion in aggregate, and represented $127.6 billion for current year
discretionary funds. These earmarks therefore represent 0.2% of the L-HHS-ED total
— and 0.8% of the discretionary L-HHS-ED total — in FY2002. The President
proposed the elimination of congressional earmarks in appropriations for each of the
past 2 years, but the Congress has continued this practice. The President again
proposed the abolition of earmarks in the FY2003 budget request.

302(a) and 302(b) Allocation Ceilings
The maximum budget authority for annual L-HHS-ED appropriations is usually
determined through a two-stage congressional budget process. In the first stage, the
Congress agrees to overall spending totals in the annual concurrent resolution on the
budget. Subsequently, these amounts are allocated among committees, usually
through the statement of managers for the conference report on the budget resolution.
These amounts are known as the 302(a) allocations. They include the discretionary
totals available to the House and Senate Appropriations Committees for enactment
in annual appropriations. The House and the Senate considered budget resolutions
for FY2003, H.Con.Res. 353 and S.Con.Res. 100, but they have not yet reached an
agreement. For legislative details, see Related Legislation, page 44; for procedural
information, see CRS Report 98-721, Introduction to the Federal Budget Process;
and for a discussion of possible alternative actions if the Congress fails to agree to
a budget resolution, see CRS Report RL31443, The “Deeming Resolution”: A
Budget Enforcement Tool.
In the second stage of the process, the appropriations committees allocate the
302(a) discretionary funds among their subcommittees for each of the 13 annual
appropriations bills. These amounts are known as the 302(b) allocations. These
allocations must add up to no more than the 302(a) discretionary allocation, and form
the basis for enforcing budget discipline, since any bill reported with a total above
the ceiling is subject to a point of order. The 302(b) allocations can and do get
adjusted during the year as the various appropriations bills progress toward final
enactment. Despite the lack of a House-Senate agreement on the FY2003 budget
resolution, the initial 302(b) allocations for the FY2003 L-HHS-ED appropriations^th
bills were announced by the appropriations committees during the 107 Congress,
as shown in Table 3. Comparable amounts for FY2002 and the President’s FY2003
budget are also shown. Subject to scorekeeping considerations, 302(b) allocations
are similar to current year discretionary appropriations. Both the 302(a) and the

302(b) allocations regularly become contested issues in their own right.

Table 3. 302(b) Discretionary Allocations
for L-HHS-ED Programs
(budget authority in billions of dollars)
^FY²⁰⁰²^FY²⁰⁰³^FY²⁰⁰³
^fiⁿ^a^l^request^FY^{2003 Hou}^s^e^FY^{2003 S}^eⁿ^a^te^enacted
^com^p^arab^l^e^com^p^arab^l^e^a^llo^ca^tⁱ^oⁿ^a^llo^ca^tⁱ^oⁿ^com^p^arab^l^e
^$127.2^$131.9^$129.9^$134.1^$133.4
^Source:^T^h^{e H}^o^u^s^{e F}^Y^{2003 al}^l^o^catⁱ^oⁿⁱ^s^bas^e^{d on}^H^.^R^e^pt^{. 107}^-^{567 (Ju}^l^y^{11, 2002);}^t^h^{e S}^eⁿ^a^t^e
^FY2003^allocation^is^bas^e^{d on}^th^{e Sen}^a^{te A}^ppropriation^s^C^o^m^m^ittee^pres^s^releas^e^of^A^ugust⁵^,^2002.
^T^h^{e com}^p^arabl^e^F^Y^{2002 appropri}^a^tⁱ^oⁿ^s^{, F}^Y^{2003 bu}^dg^et^requ^es^t^,^an^d^F^Y²⁰⁰³^en^act^ed^am^ouⁿ^t^s^are
^bas^e^d^on^t^h^e^H^.^R^e^pt^.^108-¹⁰^con^f^eren^{ce report}^(F^ebru^ary^{13, 2003);}^t^h^{e con}^f^eren^{ce am}^ouⁿ^t^doesⁿ^o^t
ⁱⁿ^clu^d^{e th}^{e redu}^ction^requ^{ired els}^e^w^h^er^{e in}^th^{e con}^f^eren^{ce report (s}^{ee pag}^e^10).
^No^te:^Un^{der cu}^rren^t^s^c^orek^eepin^g^prov^is^ion^s^{, adv}^aⁿ^{ce a}^ppropriation^s^th^{at w}^e^{re en}^{acted as}^{part of}^th^e
^F^Y^{2002 appropri}^a^tⁱ^oⁿ^s^{are cou}ⁿ^t^edⁱⁿ^F^Y^{2003 or l}^a^t^e^{r, an}^{d an}^y^adv^aⁿ^{ce appropri}^a^tⁱ^oⁿ^s^en^act^{ed as}
^part^of^t^h^{e F}^Y^{2003 appropri}^a^tⁱ^oⁿ^s^w^o^u^l^{d be cou}ⁿ^t^{ed i}ⁿ^F^Y^{2004 or l}^a^t^e^r.

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. 107-
116, which enacted FY2002 L-HHS-ED appropriations, provided $380 million for
the Corporation for Public Broadcasting (CPB) for use in FY2004. The enactment
of advance appropriations can be undertaken to meet several objectives. These
include the provision of long-term budget information to agencies and other
recipients, such as state and local educational systems, to enable better planning of
future program activities and personnel levels. The more contentious aspect of
advance appropriations, however, is that they avoid the 302(a) and 302(b) allocation
ceilings for the current year. However, such funding must be counted in the year in
which it first becomes available, thereby using up ahead of time part of what will be
counted against the allocation ceiling in future years. For an example of the impact
of advance appropriations on program administration, see the discussion below in the
section on ED (page 34).
The FY1999 and FY2000 annual L-HHS-ED appropriations bills provided
significant increases in advance appropriations for discretionary programs. From
FY2000 to FY2002, these amounts stabilized at approximately $19 billion, or about
15% of L-HHS-ED discretionary appropriations. For FY2002, the President’s budget
proposed the elimination of advance appropriations for federal discretionary
programs, including those for L-HHS-ED programs. The Congress rejected that
proposal, and continued the funding of advance appropriations. For FY2003, the
President’s request would slightly reduce advance appropriations for L-HHS-ED
programs; H.R. 246 would maintain the FY2002 level; the Senate bill, as passed,
would increase the amount to $23.0 billion; and the final bill increases advance
appropriations to $21.5 billion. From FY1998 to the present, the annual amounts of
advance appropriations in L-HHS-ED bills have been as follows:
^!FY1998, $4.0 billion;
^!FY1999, $8.9 billion;
^!FY2000, $19.0 billion;
^!FY2001, $18.8 billion;
^!FY2002, $19.3 billion;
^!FY2003, as requested by the President, $18.9 billion;
^!FY2003, in H.R. 246, as introduced in the House, $19.3 billion;
^!FY2003, in H.J.Res. 2, as passed by Senate, $23.0 billion; and
^!FY2003, as enacted by P.L. 108-7, $21.5 billion.
Major Funding Trends
The L-HHS-ED appropriations bills combine mandatory and discretionary
funds; however, the Appropriations Committees fully control only the discretionary
funds. Mandatory funding levels for programs included in the annual appropriations
bills are modified through changes in the authorizing legislation. These changes
typically are accomplished through the authorizing committees and combined into

large, omnibus reconciliation bills. Table 4 shows the trend in discretionary budget
authority under the L-HHS-ED appropriations for FY1998 through FY2002.
Total L-HHS-ED discretionary funds increased by 53.6% during this 5-year
period. The 5-year increase is reduced to an estimated 42.1% after adjustment for
inflation by use of the Gross Domestic Product (GDP) deflator. When compared to
all federal discretionary budget authority, the L-HHS-ED portion increased from
15.3% share of the federal total in FY1998 to an estimated 17.4% in FY2002. When
compared to all federal budget authority, both discretionary and nondiscretionary
(mandatory), the L-HHS-ED portion of the federal total increased during this period
from 4.8% in FY1998 to an estimated 6.0% in FY2002.
Table 4. L-HHS-ED Discretionary Funding Trends from FY1998
(budget authority in billions of dollars)
^T^y^{pe of funds}^FY¹⁹⁹⁸^FY1999^FY2000^FY2001^FY²⁰⁰²^es^ti^m^a^te^a
^L^-^H^H^S^-^E^D^di^s^c^retⁱ^oⁿ^a^ry^$81.1^$89.5^$87.1^$110.5^$124.6
^L^-^HHS-^E^{D d}ⁱ^scretioⁿ^a^ryⁱⁿ^$87.7^$95.5^$91.1^$112.9^$124.6
^es^tⁱ^m^at^{ed F}^Y^{2002 dol}^l^a^rs
^L^-^HHS-^E^{D % o}^f^{all f}^e^d^e^ral^b^15.3%^15.4%^14.9%^16.4%^17.4%
^dⁱ^sc^r^e^tⁱ^o^na^r^y^fund^s
^L^-^HHS-^E^{D % o}^f^to^{tal f}^e^d^e^r^a^l^4.8%^5.0%^4.8%^5.6%^6.0%
^bu^dg^et^au^t^h^ori^t^y
^T^o^t^a^l^f^e^deral^di^s^c^retⁱ^oⁿ^a^ry^$529.6^$581.9^$584.4^$671.9^$717.8
^T^o^t^a^l^f^e^deral^bu^dg^et^au^t^h^ori^t^y^$1,692.3^$1,776.7^$1,825.⁰^$1,959.7^$2,085.0
^G^D^P^def^l^at^or^1.0339^1.0474^1.0690^1.0937^1.1177
^Source:^F^e^deral^t^o^t^a^l^s^an^{d t}^h^{e G}^D^P^def^l^at^or^are^bas^e^d^on^t^h^e^Budget^of^t^h^{e U}ⁿⁱ^t^e^{d St}^at^es^G^o^ver^nm^ent
^Hⁱ^s^t^orⁱ^c^al^T^abl^es^Fi^s^c^al^Y^e^ar²⁰⁰³^{, T}^a^bl^es^{5.2, 5.4, an}^{d 10.1. T}^h^e^L^-^H^H^S^-^E^D^di^s^c^retⁱ^oⁿ^a^ry^bu^dg^et
^au^th^ority^am^ouⁿ^t^s^{are bas}^e^{d on}^th^e^Budget^of^t^h^{e U}ⁿⁱ^t^e^d^St^at^es^G^o^ver^nm^ent^f^r^om^v^a^riou^s^y^ears^,^an^d
^th^er^ef^o^r^{e m}^a^yⁿ^o^{t b}^e^co^m^p^letely^com^p^{arable f}^r^om^y^{ear to y}^ear.
^a^Es^tⁱ^m^at^es^{are bas}^e^{d on}^F^Y^{2002 appropri}^a^tⁱ^oⁿ^s^en^act^{ed as}^of^t^h^e^s^u^bmⁱ^s^sⁱ^on^of^t^h^e^F^Y²⁰⁰³^bu^dg^et
^requ^es^tⁱⁿ^F^e^bru^a^ry^2002;^t^h^ey^{do n}^o^tⁱⁿ^cl^u^d^{e an}^y^s^u^ppl^e^m^en^t^a^l^appropri^a^tⁱ^oⁿ^s^an^{d res}^cⁱ^s^sⁱ^on^s^f^o^r
^L^-^HHS-^E^{D an}^{d oth}^e^{r bills}^th^{at w}^e^{re en}^{acted later in}^FY2002.^b
^Discr^e^tioⁿ^a^r^y^f^uⁿ^d^{s in}^clu^d^{e b}^o^t^h^d^e^f^eⁿ^s^{e an}^dⁿ^oⁿ^-^d^e^f^eⁿ^s^{e activ}^ities.
Continuing Resolutions
From October 1, 2002, until February 20, 2003, L-HHS-ED agencies operated
under a series of eight continuing resolutions that, with certain exceptions, required
FY2003 program funding to be conducted on a daily basis at a rate not to exceed the
“current rate” under regular FY2002 funding levels and program authority. The
resolutions prohibited the initiation of new programs and prevented funding increases
in existing programs, even to respond to increases in the need for services or the
numbers of eligible beneficiaries. Programs with high spend-out rates in the early

part of the fiscal year were restricted from spending at a rate that would have
impinged on the final FY2003 funding decisions.¹
What were the implications of continuing resolutions for L-HHS-ED programs?
Some agencies may have experienced complications in program operations and
grants administration. For programs with high spend-out rates early in the fiscal year,
for example, the Impact Aid program, lower rates may have been required until final
funding was enacted. Discretionary grants programs may have had the entire grants
process put on hold until regular funding became available. Programs for which
large increases were anticipated in FY2003, such as those at NIH, delayed grants for
new projects while a continuing resolution was in effect. For the large increases
proposed for HHS bioterrorism research and development programs to support
homeland security, funding was not available to support such efforts under a
continuing resolution. Most education formula grants and some job training funds
would not have been affected until July 1, 2003, or later, when the grants were first
scheduled to be made available to the states; however, local budgets and staffing
decisions may have been delayed until final grant amounts are specified. Earmarks
for specific projects would not be funded during most continuing resolutions — as
noted above, the FY2002 L-HHS-ED appropriations provided approximately $1.0
billion for 1,600 local recipients. For legislative details on FY2003 continuing
resolutions, see Related Legislation, p. 44.
Terrorism and Homeland Security Assistance
One of the key issues of L-HHS-ED appropriations in the past year has been the
funding for activities that relate to preparing for and responding to terrorism. Several
L-HHS-ED programs, particularly those dealing with bioterrorism, address these
needs directly. Some of these activities are to be transferred to the newly established
Department of Homeland Security (DHS) under the Homeland Security Act of 2002,
P.L. 107-296, enacted November 25, 2002. Other L-HHS-ED programs, such as
emergency grants for dislocated workers, are available to provide assistance in
response to many kinds of emergencies, including terrorism. Both types of programs
were in place prior to the terrorist attacks of September 11, 2001; the funding for
both types of programs has been augmented since that date. For funding details for
specific L-HHS-ED terrorism programs, see Appendix C: Terrorism Funding in the
L-HHS-ED Bill, page 53.
Other Assistance Available for Emergencies. Some L-HHS-ED
programs are designed with enough flexibility that their funds might be used to
respond to emergencies. For example, the National Emergency Grants under the

¹ The term “current rate” as used in a continuing resolution refers to the amount of money
available for an activity during the previous fiscal year. This amount usually means the
appropriations for the previous year with adjustments for any supplemental appropriations,
rescissions, unobligated balances, and sometimes for advance appropriations provisions as
well. One-time FY2002 funding for specific activities, including earmarks for specific
projects, were subject to exclusion when calculating the current rate for FY2003, under
October 4, 2002 OMB instructions to federal agencies. The OMB exclusions were added
as §134 of P.L. 107-229 by P.L. 107-240, the third Continuing Resolution. In short, the
current rate will not necessarily correspond to the FY2002 amounts stated in this report.

DOL Dislocated Workers program, or the Low-Income Home Energy Assistance
Program (LIHEAP) or the Social Services Block Grant (SSBG) programs
administered by HHS might be available for such situations. In addition, other
L-HHS-ED programs automatically address some types of emergency needs, as in the
case of the DOL Unemployment Compensation program, which provides financial
assistance for those suddenly finding themselves unemployed.
World Wide Web Sites
General information on budget and appropriations may be found at these web
sites. Specific L-HHS-ED agency sites are listed in relevant sections of this report.
House Committees
[ 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 FY2003 budget proposal for discretionary appropriations at the Department
of Labor (DOL) is $11.5 billion, $0.5 billion (4.2%) less than the FY2002
appropriations of $12.0 billion, as shown in Table 5. As introduced in the House,
H.R. 246 would provide $11.7 billion; as passed by the Senate, H.J.Res. 2 would
provide $11.8 billion; and the conference agreement provides $11.9 billion in
discretionary appropriations. The stated FY2003 Senate and conference totals have
not been reduced as required by other Senate and conference provisions (see
page 10).
Table 5. Department of Labor Discretionary Appropriations
($ in billions)
^FY²⁰⁰²^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^F^unding^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^A^ppropri^a^tⁱ^oⁿ^s^$12.0^$11.5^$11.7^$11.8^$11.9
^Source:^A^m^ouⁿ^t^s^{are bas}^e^{d on}^t^h^e^F^Y²⁰⁰³^con^f^eren^ce^report^(H^.R^ept^.^108-^10,^F^e^bru^a^ry^{13, 2003).}
^T^h^{e FY2003 am}^ouⁿ^t^s^f^o^{r th}^{e Sen}^a^{te an}^{d con}^f^eren^{ce v}^e^rs^ion^s^of^th^{e bill do n}^o^{t ref}^l^{ect s}^u^bs^equ^eⁿ^t^cu^ts
^to^m^o^{st d}ⁱ^scr^e^tioⁿ^a^r^y^p^r^o^g^r^a^m^s^r^e^q^u^ir^ed^elsew^h^er^{e in}^th^o^s^{e v}^e^r^s^ioⁿ^s^.
^No^te:^S^u^ppl^em^en^t^a^l^s^{are i}ⁿ^cl^u^d^ed^fo^r^FY^{2002. A}^m^ouⁿ^t^s^s^h^owⁿ^repres^en^t^di^s^c^retⁱ^oⁿ^a^ry^prog^ram^s
^f^uⁿ^d^{ed by}^L^-^H^H^S^-^E^D^appropri^a^tⁱ^oⁿ^s^;^appropri^a^tⁱ^oⁿ^s^f^o^{r m}^aⁿ^d^at^ory^prog^ram^s^{are ex}^cl^u^d^ed.
Mandatory DOL programs included in the FY2002 L-HHS-ED bill were funded
at $2.2 billion, and consist of the Black Lung Disability Trust Fund ($1.0 billion),
Federal Unemployment Benefits and Allowances ($0.5 billion), Advances to the
Unemployment Insurance and Other Trust Funds ($0.4 billion), Energy Employees
Occupational Illness Fund ($0.1 billion), and Employment Standards Administration
Special Benefits programs ($0.1 billion).
Key Issues
President’s Request. The President’s FY2003 budget request for DOL
focuses on job training programs. Reductions are proposed for some of these
programs, including some that were receiving supplemental funds that were provided
in response to the terrorist attacks of September 11, 2001. Discretionary changes of
at least $100 million requested for DOL programs under the President’s FY2003
budget include the following:
^!A reduction of $445 million is requested for programs authorized by
the Workforce Investment Act of 1998 (WIA), which was funded at
$5.5 billion in FY2002. Regarding specific WIA programs, $127
million less is requested for Youth Training, funded at $1.1 billion
in FY2002; $180 million less is proposed for Youth Opportunity
Grants, funded at $225 million in FY2002; and $153 million less is
requested for Other Federally Administered WIA programs, funded
at $267 million in FY2002. Other Federally Administered programs

include the Pilot and Demonstration programs ($130 million in
FY2002), for which $35 million is requested; and Responsible
Reintegration of Youthful Offenders ($55 million in FY2002), for
which zero funding is requested. The WIA Migrant and Seasonal
Farmworker program ($80 million in FY2002) would also be
eliminated under the FY2003 request.
^!Emergency Expenses for Workers Compensation Programs, which
were provided $175 million under the P.L. 107-117 FY2002
Supplemental, would receive no funding under the FY2003 request.
^!Unemployment Compensation would funded at $2.7 billion, $251
million more than the FY2002 amount of $2.4 billion.
House Bill, as Introduced. As introduced, the House bill is similar to the
President’s request with the exception that WIA programs would be funded at $5.1
billion, $102 million more than the FY2003 request but $343 million less than the
FY2002 amount. Dislocated Workers State Grants would receive $1.2 billion, $102
million more than in FY2002, and funding for Migrant and Seasonal Farmworkers
would be set at $75 million, $5 million less than the FY2002 amount.
Senate Bill, as Passed. For DOL programs, the FY2003 Senate bill differs
little from the President’s budget request with the exception of several of the
federally administered WIA programs. In particular, two WIA programs, for which
no funds are requested, would be continued at their FY2002 funding levels —
Migrant and Seasonal Farmworkers ($80 million) and the Responsible Reintegration
of Youthful Offenders ($55 million).
Public Law. Under P.L. 108-7, as enacted, a change in funding from FY2002
to FY2003 of at least $100 million occurs for several DOL programs.
^!WIA programs receive $5.2 billion in FY2003, $182 million more
than the request but $263 million less than in FY2002. With regard
to specific WIA programs, Youth Training receives $1.0 billion, the
same as the request but $127 million less than in FY2002. Youth
Opportunity Grants are funded at $45 million, the same as the
request but $180 million less than in FY2002. Migrant and Seasonal
Farmworkers receives $77 million and Responsible Reintegration of
Youthful Offenders receives $55 million — both programs would
have been eliminated under the request.
^!Emergency Expenses for Workers Compensation Programs receive
no funding for FY2003, the same as the request; the FY2002 amount
was $175 million.
^!Unemployment Compensation is funded at $2.7 billion, $17 million
less than requested but $234 million more than in FY2002.
CRS Products
CRS Report RL31501, Child Labor in America: History, Policy, and Legislative
Issues, by William G. Whittaker.
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 RL31336, Older Americans Act: Programs and Funding, by Carol
O’Shaughnessy.
CRS Report RL31277, Temporary Programs to Extend Unemployment
Compensation, by Jennifer E. Lake.
CRS Report RS21078, Trade Adjustment Assistance for Workers: Legislation in the

107^th Congress, by Paul J. Graney.

CRS Report 95-742, Unemployment Benefits: Legislative Issues in the 107^th
Congress, by Celinda M. Franco.
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/budget2003/overview-toc.htm]
[ http://www.dol.gov/_sec/budget2003/tables.htm#budgetauth]
[ http://www.dol.gov/_sec/media/congress/2132002ec.htm]
Detailed Appropriations Table
Table 6 shows the appropriations details for offices and major programs of
DOL.

Table 6. Detailed Department of Labor Appropriations
($ in millions)
^FY²⁰⁰²^a^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Offi^{ce or m}^a^{jor p}^r^ogram^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^Em^pl^oym^e^nt^{and T}^r^aiⁿⁱ^{ng Adm}ⁱⁿⁱ^s^t^r^a^tⁱ^{on (}^E^T^A⁾
^T^r^aⁱⁿⁱ^{ng a}ⁿ^d^E^m^p^l^o^y^m^e^nt
^S^e^rvⁱ^ces^(T^ES^{), Work}^f^o^rce⁹⁵⁰⁹⁰⁰⁹⁰⁰⁹⁰⁰⁹⁰⁰
^I^nve^st^m^e^nt^A^c^t⁽^W^I^A⁾^A^d^ul^t
^T^r^ainⁱⁿ^g^Gran^ts^{to States}
^WIA^Y^o^u^t^h^T^r^aiⁿⁱⁿ^g^1,128^1,001^1,045^1,001^1,001
^W^I^A^Dis^l^{ocated W}^o^rk^er^b^1,371^1,443^1,485^1,383^1,464
^A^ssistaⁿ^c^e
^–Dis^{located W}^o^r^ker^As^sⁱ^s^t^ance,^1,129^1,106^1,208^1,106^1,157
^St^at^{e G}^r^ant^s⁽^non-add)
^–Dis^{located W}^o^r^ker^As^sⁱ^s^t^ance,²⁴²³³⁷²⁷⁷²⁷⁷³⁰⁷
^Secr^et^ar^y’s^Res^e^r^{ve (}^non-add)
^WIA^{Job C}^o^rps¹^,459^1,532^1,519^1,519^1,519
^W^I^A^Mig^r^an^{t an}^{d Seas}^on^al⁸⁰⁰⁷⁵⁸⁰⁷⁷
^F^a^rm^w^o^rk^ers
^WIA^Y^o^u^t^h^O^pport^uⁿⁱ^t^y^G^r^an^t^s²²⁵⁴⁵⁰⁴⁵⁴⁵
^(YOG)
^W^I^A^oth^e^{r f}^e^derally^admⁱⁿⁱ^s^t^ered²⁶⁷¹¹⁴¹¹³¹⁹²²¹¹
^prog^ram^s
^WIA^s^u^bt^ot^alⁱⁿ^T^E^S⁵^,480^5,035^5,137^5,120^5,217
^TE^S^,^O^t^h^e^r⁵¹¹¹¹
^Co^m^m^uⁿ^ity^Ser^v^{ice Em}^p^l^o^y^m^eⁿ^t⁴⁴⁵⁴⁴⁰⁴⁴⁰⁴⁴⁰⁴⁴⁵
^f^o^{r Older A}^m^erican^s
^W^o^rk^{er C}^o^m^p^en^s^a^tion^P^r^og^ram^s¹⁷⁵⁰⁰⁰⁰
^E^m^e^r^ge^nc^y^E^x^p^e^nse^s
^F^e^deral^Uⁿ^em^pl^oy^m^eⁿ^t^Ben^e^fⁱ^t^s
^an^{d A}^llow^aⁿ^ces^{, T}^r^ade⁴¹⁶⁸⁷¹⁹⁷²⁹⁷²⁹⁷²
^Ad^j^u^s^t^m^eⁿ^t^aⁿ^d^N^A^F^T^A
^A^c^tiv^{ities (}^m^an^d^a^to^r^y⁾
^{State Un}^em^ploy^m^eⁿ^t^In^s^u^ran^c^e
^an^{d Em}^pl^oy^m^eⁿ^t^S^e^rvⁱ^c^e^2,417^2,668^2,651^2,651^2,651
^Op^er^atioⁿ^s⁽^S^UI^/ESO)
^Uⁿ^em^pl^oy^m^eⁿ^t^C^o^m^p^en^s^a^tⁱ^oⁿ
^S^U^I/^ES^O^Em^pl^oy^m^eⁿ^t^S^e^rvⁱ^c^e⁸⁴⁷⁸²⁶⁸⁴⁷⁸⁴⁷⁸⁴⁷
^{SUI/ESO On}^e-^{Stop C}^a^reer¹²⁰¹¹³¹⁰⁰¹⁰⁰¹⁰⁰
^Ce^nte^r^s
^S^U^I/^ES^O^Work^In^cen^tⁱ^v^es^G^r^an^t^s²⁰²⁰²⁰²⁰²⁰
^S^U^I/^ES^O^s^u^bt^ot^al^3,404^3,627^3,618^3,618^3,618
^A^d^va^nc^e^s^t^o^Uⁿ^e^m^p^l^o^y^m^e^nt^T^r^ust⁴⁶⁴⁴⁶³⁴⁶³⁴⁶³⁴⁶³
^Fund^aⁿ^d^o^t^he^r^fund^{s (}^m^aⁿ^d^a^t^o^r^y⁾
^ET^A^Prog^ram^A^d^mⁱⁿⁱ^s^t^ratⁱ^oⁿ¹⁶¹¹⁷¹¹⁷²¹⁷⁸¹⁷⁶
^ET^A^s^u^bt^ot^al^10,550^10,608^10,803^10,792^10,892
^P^eⁿ^s^ioⁿ^an^d^W^e^lf^ar^{e B}^eⁿ^e^f^its¹¹¹¹¹⁷¹¹⁷¹¹⁷¹¹⁷

^A^d^mⁱⁿⁱ^str^a^tioⁿ

^FY²⁰⁰²^a^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Offi^{ce or m}^a^{jor p}^r^ogram^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^P^eⁿ^s^ioⁿ^B^eⁿ^e^f^{it Gu}^ar^an^ty
^C^o^rporatⁱ^oⁿ^(PBG^C⁾¹²¹³¹³¹³¹³
^A^d^mⁱⁿⁱ^str^a^tioⁿ
^PBGC^pr^ogr^{am level (}^non-add)¹⁹⁰¹⁹³¹⁹³¹⁹³¹⁹³
^Em^pl^oym^e^nt^St^andar^ds^Admⁱⁿⁱ^s^t^r^a^tⁱ^{on (}^E^SA)
^ES^A^S^a^l^a^ri^es^an^{d Ex}^pen^s^es³⁷⁰²⁹⁴³⁸¹³⁸⁵³⁸⁴
^ESA^{Special B}^eⁿ^e^f^its¹²¹¹⁶³¹⁶³¹⁶³¹⁶³
^(m^an^dat^o^ry⁾
^ES^A^En^erg^y^Em^ploy^ees
^Occu^p^a^tioⁿ^a^{l I}^lln^{ess Fu}ⁿ^d¹³¹¹⁰⁵¹⁰⁵¹⁰⁵¹⁰⁵
^(m^an^dat^o^ry⁾
^E^S^A^B^l^a^c^k^L^{ung Disa}^b^ility^T^r^ust^1,036^1,035^1,035^1,035^1,035
^F^uⁿ^d^(m^an^dat^o^ry⁾
^ES^A^s^u^bt^ot^al^1,658^1,597^1,684^1,688^1,687
^Occu^p^a^tioⁿ^a^{l Saf}^e^ty^an^d^Health⁴⁴³⁴³⁷⁴⁴⁴⁴⁶²⁴⁵³
^A^d^mⁱⁿⁱ^st^r^a^tⁱ^o^{n (}^O^SH^A⁾
^Min^e^Saf^e^ty^an^d^Health²⁵³²⁵⁴²⁵⁴²⁷²²⁷⁵
^A^d^mⁱⁿⁱ^st^r^a^tⁱ^o^{n (}^M^SH^A⁾
^Bu^reau^of^L^a^{bor S}^t^atⁱ^s^tⁱ^c^s⁴⁷⁴⁴⁹⁸⁴⁹⁸⁴⁹⁷⁴⁹⁵
^Of^fⁱ^{ce o}^f^Disab^ility^Em^p^l^o^y^m^eⁿ^t³⁸⁴⁷⁴³⁴⁷⁴⁷
^P^o^licy
^D^e^p^a^r^t^m^e^nt^a^l^M^a^na^ge^m^e^nt^,¹⁴⁸⁵⁵⁵⁵¹⁴⁸¹⁴⁸
^Iⁿ^terⁿ^atioⁿ^a^{l L}^a^b^o^r^A^f^f^a^ir^s
^D^e^p^a^r^t^m^e^nt^a^l^M^a^na^ge^m^e^nt^,
^V^e^t^e^ran^s^Em^pl^oy^m^eⁿ^t^an^d²¹³²¹⁰²¹⁰²¹⁸²¹⁴
^T^r^aⁱⁿⁱ^ng
^D^e^part^m^eⁿ^t^al^Man^a^g^e^m^eⁿ^t^{, O}^t^h^e^r²⁹³³²⁶³⁰²³¹¹³⁰⁵
^D^e^p^a^r^t^m^e^nt^a^l^M^a^na^ge^m^e^nt⁶⁵⁴⁵⁹¹⁵⁶⁷⁶⁷⁷⁶⁶⁷
^s^u^bt^ot^al
^T^O^T^A^L^S^{, DE}^PART^M^E^NT^{OF L}^A^B^O^R
^T^o^{tal ap}^p^r^o^p^r^iatioⁿ^s^c^14,192^14,163^14,425^14,566^14,647
^C^u^rren^t^y^ear:^F^Y²⁰⁰³^11,729^11,699^11,962^12,103^12,184
^A^d^v^aⁿ^{ce y}^ear:^F^Y²⁰⁰³^2,463^2,463^2,463^2,463^2,463
^Source:^A^m^ouⁿ^t^s^are^bas^e^d^on^t^h^{e F}^Y^{2003 con}^f^eren^{ce report}^H^.^R^e^pt^{. 108-}^{10, F}^e^bru^a^ry^13,^2003;
^Sen^a^{te an}^{d con}^f^eren^{ce data do n}^o^{t ref}^l^{ect cu}^ts^requ^{ired f}^o^{r m}^o^s^t^dis^c^retion^a^ry^f^uⁿ^d^s^(s^{ee pag}^e^10).
^a^T^h^{e F}^Y^{2002 am}^ouⁿ^t^s^{are bas}^e^{d on}^P.L^.^107-^{116, P.L}^.^107-^{117, an}^{d P.L}^.^107-^206.
^b^T^h^{e actu}^a^{l FY2002 appropriation}^f^o^{r Dis}^l^{ocated W}^o^rk^{er A}^s^sⁱ^s^t^an^{ce w}^a^s^{$1,549 m}^illion^an^{d n}^o^t
^{$1,371 m}^illion^;^th^{e dif}^f^e^ren^{ce is}^{a res}^c^is^sⁱ^on^f^r^om^{FY2001 appropriation}^s^th^{at w}^a^s^en^{acted th}^rou^g^h
^P^.^{L. 107-}^{20, bu}^{t im}^plem^en^{ted in}^{FY2002; th}^{e res}^c^is^sⁱ^on^w^a^s^{$177.5 m}^illion^,^w^h^ich^con^s^is^ted^o^f
^{$110.0 m}^illion^f^o^{r State Gran}^ts^an^{d $67.5 m}^illion^f^o^{r th}^{e Secretary}^’^s^R^e^s^e^rv^e.^c
^A^p^p^r^o^p^r^iatioⁿ^s^to^talsⁱⁿ^clu^d^e^dⁱ^scr^e^tioⁿ^a^r^y^an^d^m^aⁿ^d^ato^r^y^f^uⁿ^d^{s, an}^d^m^a^y^b^e^su^b^j^{ect to}^ad^d^itioⁿ^a^l
^s^c^orek^eepin^g^an^{d oth}^e^{r adj}^u^s^t^m^eⁿ^t^s^.

Department of Health and Human Services
The FY2003 budget proposal for discretionary appropriations at the Department
of Health and Human Services (HHS) is $59.5 billion, $2.6 billion (4.6%) more than
the FY2002 appropriations of $56.9 billion, as shown in Table 7. As introduced in
the House, H.R. 246 would provide $59.5 billion; as passed by the Senate, H.J.Res. 2
would provide $60.9 billion; and the conference agreement provides $60.7 billion in
discretionary appropriations. The stated FY2003 Senate and conference totals have
not been reduced as required by other Senate and conference provisions (see
page 10).
Table 7. Department of Health and Human Services
Discretionary Appropriations
($ in billions)
^FY²⁰⁰²^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^F^unding^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^A^ppropri^a^tⁱ^oⁿ^s^$56.9^$59.5^$59.5^$60.9^$60.7
^Source:^A^m^ouⁿ^t^s^{are bas}^e^d^on^t^h^e^F^Y²⁰⁰³^con^f^eren^ce^report^(H^.R^ept^.^108-^{10, F}^e^bru^a^ry^{13, 2003).}
^T^h^{e FY2003 am}^ouⁿ^t^s^f^o^{r th}^{e Sen}^a^{te an}^{d con}^f^eren^{ce v}^e^rs^ion^s^of^th^{e bill}^doⁿ^o^{t ref}^l^{ect s}^u^bs^equ^eⁿ^t^cu^ts
^to^m^o^{st d}ⁱ^scr^e^tioⁿ^a^r^y^p^r^o^g^r^a^m^s^r^e^q^u^ir^ed^elsew^h^er^{e in}^th^o^s^{e v}^e^r^s^ioⁿ^s^.
^No^te:^S^u^ppl^em^en^t^a^l^s^a^r^eⁱⁿ^c^l^u^d^{ed f}^o^{r F}^Y^{2002. A}^m^ouⁿ^t^s^s^h^owⁿ^repres^en^t^di^s^c^retⁱ^oⁿ^a^ry^prog^ram^s
^f^uⁿ^d^{ed by}^L^-^H^H^S^-^E^D^appropri^a^tⁱ^oⁿ^s^;^appropri^a^tⁱ^oⁿ^s^f^o^{r m}^aⁿ^d^at^ory^prog^ram^s^{are ex}^cl^u^d^ed.
Mandatory HHS programs included in the FY2002 L-HHS-ED bill were funded
at $248.7 billion, and consist primarily of Grants to States for Medicaid ($153.7
billion), Payments to Medicare Trust Funds ($82.0 billion, virtually all for Part B
Supplementary Medical Insurance), Foster Care and Adoption ($6.6 billion), and
Social Services Block Grant ($1.7 billion).
Key Issues
President’s Request. The President’s FY2003 budget request for HHS
would focus increased support primarily for medical research, with smaller increases
for selected health care and early childhood development programs. At the same
time, it would reduce funding for programs for health professions, health care
facilities, disease control and prevention, and home energy assistance for low-income
people. Discretionary spending changes of at least $100 million are requested for the
following programs.
^!An increase of $3.8 billion is requested for the National Institutes of
Health (NIH), which was funded at $23.4 billion in FY2002, to
support activities that maintain and improve health through medical
science. This is the largest increase in discretionary funds (in terms
of absolute dollars) in the entire FY2003 L-HHS-ED budget request.
The FY2003 request would complete a 5-year effort by the Congress
to double the size of NIH funding, from $13.6 billion in FY1998 to

$27.2 billion in FY2003 (Archived CRS Issue Brief IB10100,
Federal Research and Development Funding: Fiscal Year 2003).
^!An additional $115 million is proposed for Community Health
Centers, which was funded at $1.3 billion in FY2002; however, the
$120 million Community Access Program, which provides the
uninsured with safety-net access to health care, would be eliminated.
^!A decrease of $278 million is requested for the Health Professions
program, funded at $388 million in FY2002.
^!The Health Care and Other Facilities program, funded at $312
million in FY2002, would be eliminated; funds for this program are
earmarked for construction and renovation projects for designated
recipients.
^!A decrease of $390 million is requested for the Centers for Disease
Control and Prevention (CDC); $4.4 billion was provided for
FY2002 for the prevention and control of diseases, injuries, and
disabilities. The decrease is due primarily to a one-time buildup in
FY2002 of vaccines and other pharmaceuticals to combat
bioterrorism threats.
^!A decrease of $300 million is proposed for the Low-Income Home
Energy Assistance Program (LIHEAP); $1.7 billion was
appropriated for FY2002. The LIHEAP Emergency Allocation of
$300 million would be level funded.
^!An additional $131 million is requested for Head Start, funded at
$6.5 billion in FY2002.
^!An additional $130 million is requested for the discretionary portion
of the Promoting Safe and Stable Families program; $70 million in
discretionary funds was provided for FY2002.
^!The Public Health and Social Services Emergency Fund (PHSSEF)
would be reduced by $366 million; this account was funded at $2.7
billion in FY2002, primarily for bioterrorism and emergency
response programs.
^!An initial $184 million is requested for the Health Facilities
Construction Consolidation proposal, which would eventually
combine funding from several HHS accounts into a single fund for
health facilities construction.
House Bill, as Introduced. For HHS programs, the FY2003 House bill
differs in several respects from the President’s budget request.
^!The NIH would receive $0.7 billion less than requested, but $3.1
billion more than in FY2002.
^!Health Professions would receive $283 million more than requested,
and $5 million more than the FY2002 amount.
^!The Community Access program would be maintained at $120
million; the request was for termination of funding.
^!The CDC would receive $315 million more than the requested
amount, but $75 million less than in FY2002.
^!LIHEAP would receive $300 million more than the request but the
same amount as in FY2002. However, the $300 million LIHEAP

Emergency Allocation would be eliminated; the request would
maintain the FY2002 funding level.
^!Discretionary funding for Promoting Safe and Stable Families would
receive $130 million less than requested, but the same as in FY2002.
^!The PHSSEF would receive $212 million more than requested but
$154 million less than the FY2002 amount.
^!The House bill would not accept the $184 million requested for the
Health Facilities Construction Consolidation proposal.
Senate Bill, as Passed. For HHS programs, the FY2003 Senate bill differs
in several respects from the President’s budget request.
^!Health Professions would receive $314 million more than the
FY2003 request, and $36 million more than the FY2002 amount of
$388 million.
^!Ryan White AIDS Programs would receive $140 million more than
the request and $141 million more than the FY2002 amount of $1.9
billion.
^!The Community Access Program would receive $120 million, the
same as in FY2002; no funds are requested.
^!The CDC would receive $344 million more than the request, but $46
million less than the FY2002 level of $4.4 billion.
^!LIHEAP would receive $300 million more than the request, the
same as the FY2002 amount of $1.7 billion. The LIHEAP
Emergency Allocation would be eliminated; the request is for $300
million, the same as the FY2002 amount.
^!The Senate bill would not provide any funds for the $184 million
Health Facilities Construction Consolidation proposed in the
FY2003 budget.
Public Law. Under P.L. 108-7, as enacted, a change in funding from FY2002
to FY2003 of at least $100 million occurs for several HHS programs.
^!The NIH receives $27.2 billion for FY2003, the same as the FY2003
request but $3.8 billion more than in FY2002.
^!For Community Health Centers, $1.5 billion is provided, $57 million
more than requested and $172 million more than in FY2002.
^!Ryan White AIDS Programs are provided $2.0 billion, $120 million
more than requested and $121 million more than in FY2002.
^!For the Centers for Medicare and Medicaid Services (CMS)
Program Management, $2.9 billion is provided, $74 million more
than requested and $155 million more than the FY2002 amount.
^!Funding for the LIHEAP Emergency Allocation is eliminated; the
request was for $300 million, the same as the FY2002 amount. The
regular LIHEAP program would be funded at $1.7 billion, the same
as in FY2002 but $300 million more than the request.
^!Head Start receives $6.7 billion, the same as requested but $131
million more than in FY2002.

^!The Public Health and Social Services Emergency Fund (PHSSEF)
is funded at $2.2 billion, $48 million less than requested and $414
million less than in FY2002.
Bioterrorism Preparedness. The President’s FY2003 budget request
proposes $4.3 billion for HHS bioterrorism preparedness programs and activities.
Of this amount, $2.3 billion would be provided through the PHSSEF, and $2.0
billion through other accounts, primarily those for NIH. The request includes funds
for strengthening the federal medical and public health response capacity, upgrading
CDC’s facilities, improving state and local public health preparedness, developing
vaccines and maintaining the National Pharmaceutical Stockpile (NPS), preparing
the nation’s hospitals, expanding FDA’s regulatory oversight of drugs and other
biological products, and securing facilities to conduct critical scientific work. For
additional information, see Appendix C: Terrorism Funding in the L-HHS-ED Bill,
page 53, and CRS Report RL31263, Public Health Security and Bioterrorism
Preparedness and Response Act (P.L. 107-188): Provisions and Changes to
Preexisting Law.
For FY2002, HHS received $3.0 billion to improve bioterrorism preparedness
at the federal, state, and local levels. The FY2002 L-HHS-ED Appropriations Act,
P.L. 107-116, included $243 million for anti-bioterrorism activities, and the FY2002
Anti-Terrorism Supplemental, P.L. 107-117, provided an additional $2.8 billion as
part of the $20 billion anti-terrorism emergency spending package. P.L. 107-117
allocated the anti-bioterrorism funding under several broad categories, including
$593 million for the NPS, $512 million to purchase smallpox vaccine, $865 million
for state and local health departments, $135 million to upgrade hospital capacity,
$100 million to upgrade CDC’s facilities and capacity, and $155 million for NIH
research and lab construction. In addition, the HHS Food and Drug Administration
(FDA) — regularly funded under the Agriculture Appropriations Act — received
$151 million for FDA lab security, vaccine approval, and food safety.
Abortion: Funding Restrictions. L-HHS-ED appropriations acts regularly
contain restrictions that limit — for one year at a time — the circumstances under
which federal funds can be used to pay for abortions. The Congress has not actually
amended these restrictions since FY1999, but given the perennial volatility of this
issue, these provisions may be revisited at any time during consideration of L-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 103^rd Congress modified the
provisions to permit federal funding of abortions in cases of rape or incest. The
FY1998 L-HHS-ED Appropriations Act, P.L. 105-78, extended the Hyde provisions
to prohibit the use of federal funds to buy managed care packages that include
abortion coverage, except in the cases of rape, incest, or life endangerment. For
FY1999, the FY1998 Hyde Amendments were continued, along with a clarification
to ensure that the restrictions apply to all trust fund programs (namely, Medicare)
funded by the FY1999 L-HHS-ED Appropriations Act, P.L. 105-277, as well as an
assurance that Medicare + Choice plans cannot require the provision of abortion
services. Annual appropriations acts since FY1999 have repeated without change the
FY1999 funding restrictions. Current provisions can be found in §508 and §509 of

the FY2003 L-HHS-ED Appropriations Act, P.L. 108-7. For additional information,
see CRS Issue Brief IB95095, Abortion: Legislative Response.
Embryonic Stem Cell Research: Funding Restrictions. On August 9,
2001, President Bush announced a decision to use federal funds for research on
human embryonic stem cells for the first time, but limited the funding to “existing
stem cell lines.” Although NIH developed a registry which listed 78 cell lines
eligible for use in federally funded research, subsequently many of the lines were
found to be unavailable or unsuitable for research. The NIH registry currently lists
only 9 cell lines available for general research purposes. Embryonic stem cells have
the ability to develop into virtually any cell in the body, and may have the potential
to treat medical conditions such as diabetes and Parkinson’s disease. The use of stem
cells, however, frequently raises difficult ethical and social issues regarding embryo
and fetal tissue research. An FY1996 appropriations continuing resolution, P.L. 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. The current provision
can be found in §510 of the FY2003 L-HHS-ED appropriations, P.L. 108-7. For
additional information, see CRS Report RL31015, Stem Cell Research and CRS
Report RL31358, Human Cloning.
CRS Products
CRS Issue Brief IB95095, Abortion: Legislative Response, by Karen J. Lewis, et. al.
CRS Report RL30731, AIDS Funding for Federal Government Programs: FY1981-
FY2003, by Judith A. Johnson.
CRS Report 98-476, AIDS: Ryan White CARE Act, by Judith A. Johnson and
Paulette C. Morgan.
CRS Report RL31225, Bioterrorism: Summary of a CRS/National Health Policy
Forum Seminar on Federal, State, and Local Public Health Preparedness, by
Robin J. Strongin, Contractor, and C. Stephen Redhead, Coordinator.
CRS Report RL30785, The Child Care and Development Block Grant: Background
and Funding, by Alice Butler and Melinda Gish.^th
CRS Report RL30944, Child Care Issues in the 107 Congress, by Melinda Gish.
CRS Report RL30894, Child Welfare: The Promoting Safe and Stable Families
Program, by Emilie Stoltzfus and Karen Spar.
CRS Report RS20124, Community Services Block Grants: Background and
Funding, by Karen Spar and M. Ann Wolfe.
CRS Report RS21160, The Developmental Disabilities Act: Programs and Funding,
by Sidath V. Panangala.
CRS Report 97-757, Federal Health Centers Program, by Sharon Kearney Coleman.
CRS Issue Brief IB10100, Federal Research and Development Funding: Fiscal Year

2003, coordinated by John Dimitri Moteff (Archived).

CRS Report RL30952, Head Start: Background and Funding, by Alice Butler and
Melinda Gish.
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 RL30483, Medical Research Funding: Summary of a CRS Seminar on
Challenges and Opportunities of Proposed Large Increases for the National
Institutes of Health, by John K. Iglehart, Contractor, and Pamela W. Smith,
Coordinator.
CRS Report RL31058, Medicare Structural Reform: Background and Options, by
Jennifer O’Sullivan, et. al.
CRS Report RL31336, Older Americans Act: Programs and Funding, by Carol
O’Shaughnessy.
CRS Report RL31263, Public Health Security and Bioterrorism Preparedness and
Response Act (P.L. 107-188): Provisions and Changes to Preexisting Law, by
C. Stephen Redhead 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 Grants (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.January 4, 2005
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]
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)
^FY²⁰⁰²^a^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Offi^{ce or m}^a^{jor p}^r^ogram^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^Pu^b^{lic Hea}^lth^S^e^{rvice (}^P^HS⁾
^Health^R^e^s^o^u^r^ces^an^{d Serv}^ices
^A^d^mⁱⁿⁱ^st^r^a^tⁱ^o^{n (}^H^RSA⁾^,^1,343^1,458^1,458^1,534^1,515
^Co^m^m^uⁿ^ity^Health^Cen^t^er^s
^HRSA^Natioⁿ^a^{l Health}^Ser^v^ice¹⁴⁵¹⁸⁹¹⁵⁵¹⁸⁹¹⁷²
^Co^r^p^s
^H^R^S^A^H^eal^t^h^Prof^es^sⁱ^on^s³⁸⁸¹¹⁰³⁹³⁴²⁴⁴²⁴
^HRSA^Materⁿ^{al an}^d^Ch^ild^Health⁷³¹⁷³²⁷²⁷⁷⁴²⁷³⁵
^Bl^oc^k^G^r^aⁿ^t
^HR^SA^A^b^s^tin^en^{ce Edu}^cation¹⁰⁷³⁶⁰⁴⁰⁵⁵
^HR^SA^R^y^an^W^h^{ite A}^I^DS^1,910^1,911^1,930^2,051^2,031
^Pr^og^r^a^m^s
^HRSA^Fam^ily^P^l^anⁿⁱⁿ^g⁽^T^{itle X)}²⁶⁵²⁶⁵²⁶⁵²⁸⁵²⁷⁵
^HR^SA^Health^C^a^{re an}^d^Oth^e^r³¹²⁰⁰⁰²⁹⁸
^Facilities
^HR^SA^C^o^m^m^uⁿ^ity^A^cces^s¹²⁰⁰¹²⁰¹²⁰¹²⁰
^Pr^og^r^a^m
^HR^SA^Vaccin^e^In^j^u^ry⁸²⁸⁶⁸⁶⁸⁶⁸⁶
^Co^m^p^en^satioⁿ⁽^m^an^d^a^to^r^y⁾
^H^R^S^A^{, ot}^h^e^r⁸⁵⁸⁶³⁴⁷⁸⁴⁸⁷⁷⁸⁵⁴
^H^R^S^A^s^u^bt^ot^al^6,164^5,458^5,978^6,348^6,565
^C^eⁿ^t^ers^f^o^{r Dis}^eas^{e C}^oⁿ^t^{rol an}^d^b^4,364^3,974^4,289^4,318^4,297
^P^r^ev^en^tion^(C^DC⁾
^Natioⁿ^a^{l I}ⁿ^stitu^{tes o}^f^Health^c^23,374^27,170^26,481^27,160^27,160
^(NIH)
^Su^bs^tan^{ce A}^b^u^s^{e an}^{d Men}^t^al
^Health^Ser^v^{ices A}^d^mⁱⁿⁱ^str^a^tioⁿ⁴³³⁴³³⁴³⁸⁴³³⁴⁴⁰
⁽^S^AM^H^S^A)^M^eⁿ^t^a^l^H^e^a^l^t^h^B^l^o^c^k
^Gran^t
^SA^MHSA^Sub^s^{tance A}^b^use^1,725^1,785^1,745^1,723^1,703
^Bl^oc^k^G^r^aⁿ^t
^S^A^MH^S^A^{, ot}^h^e^r⁹⁷⁶⁹⁷⁵⁹⁸⁵⁹⁷⁴^1,015
^S^A^MH^S^A^s^u^bt^ot^al^3,134^3,193^3,168^3,130^3,158
^A^g^en^cy^f^o^{r Health}^{care R}^e^s^earch³⁰³³⁰⁹⁰
^an^d^Qu^ality⁽^A^HRQ)
^{AHRQ pr}^ogr^{am level}⁽^non-add)²⁹⁹²⁵⁰²⁹⁹³⁰⁹³⁰⁴
^PH^S^s^u^bt^ot^al^37,039^39,795^39,919^41,265^41,180
^C^e^nt^er^s^f^o^r^M^e^di^car^e^{and M}^e^di^cai^d^Ser^vⁱ^ces⁽^C^M^S⁾
^{Medicaid Gran}^ts^{to States}^153,721^163,951^163,951^163,951^163,951
^(m^an^dat^o^ry⁾
^P^a^y^m^en^ts^{to Medicare T}^r^u^s^t^81,979^81,463^81,463^81,463^81,463
^F^uⁿ^d^s^(m^an^dat^o^ry⁾
^C^M^S^Prog^ram^Man^a^g^e^m^eⁿ^t^2,427^2,508^2,550^2,560^2,582
^C^M^S^s^u^bt^ot^al^238,127^247,922^247,964^247,974^247,996

^FY²⁰⁰²^a^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Offi^{ce or m}^a^{jor p}^r^ogram^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^Adminis^t^r^a^{tion for}^C^h^ildr^e^{n and Families}⁽^A^C^F⁾
^F^a^mⁱ^l^y^S^u^pport^Pay^m^en^t^s^t^o^4,096^4,037^4,037^4,037^4,037
^States^(m^an^datory⁾
^L^o^{w I}ⁿ^c^o^me^H^o^me^Eⁿ^e^r^g^y^1,700^1,400^1,700^1,700^1,700
^A^ssistaⁿ^c^e^P^r^o^g^r^a^m⁽^L^I^H^E^A^P⁾
^L^I^HEA^P^Em^er^g^eⁿ^c^y^A^llo^catioⁿ³⁰⁰³⁰⁰⁰⁰⁰
^R^e^f^u^g^{ee an}^{d En}^t^r^an^t^A^s^sⁱ^s^t^an^ce⁴⁶⁰⁴⁵³⁴⁴⁷⁴⁴³⁴⁴⁷
^C^hⁱ^l^d^C^a^{re an}^{d D}^e^v^e^l^opm^en^t^2,100^2,100^2,100^2,100^2,100
^Bl^oc^k^G^r^aⁿ^t^(C^C^D^BG⁾
^{Social Serv}^ices^B^l^ock^Gran^t^1,700^1,700^1,700^1,700^1,700
⁽^T^{itle XX)}⁽^m^an^d^a^to^r^y⁾
^H^{ead S}^t^art⁶^,537^6,668^6,668^6,668^6,668
^C^hⁱ^l^d^Wel^f^{are S}^e^rvⁱ^ces²⁹²²⁹²²⁹²²⁹²²⁹²
^Dev^e^lo^p^m^en^{tal Disab}^ilities¹⁴⁰¹⁴¹¹⁴¹¹⁴⁷¹⁴⁶
^C^o^m^m^uⁿⁱ^t^y^S^e^rvⁱ^ces^Bl^ock^G^r^an^t⁶⁵⁰⁵⁷⁰⁵⁷⁰⁶⁵⁰⁶⁵⁰
^Vⁱ^ol^en^t^C^rⁱ^m^{e R}^e^du^ctⁱ^oⁿ¹⁴²¹⁴²¹⁴²¹⁴⁹¹⁴⁵
^Oth^e^r^Ch^ild^r^eⁿ^an^d^Fam^ily⁶⁶⁵⁷⁸⁰⁶⁵⁴⁷⁴³⁷⁴²
^S^e^rvⁱ^ces^P^r^og^ram^s
^R^e^s^cⁱ^s^sⁱ^on^of^m^aⁿ^d^at^ory^f^uⁿ^d^s^-²¹⁰⁰⁰⁰
^Prom^otⁱⁿ^g^S^a^f^e^an^{d S}^t^abl^e³⁰⁵³⁰⁵³⁰⁵³⁰⁵³⁰⁵
^Fam^{ilies (}^P^SSF)⁽^m^and^a^to^r^y⁾
^P^{SSF (}^d^iscr^etio^nar^y⁾⁷⁰²⁰⁰⁷⁰²⁰⁰¹⁰⁰
^F^o^s^t^{er C}^a^{re an}^{d A}^doptⁱ^oⁿ^6,640^6,601^6,601^6,601^6,601
^A^s^sⁱ^s^t^an^{ce (m}^an^datory⁾
^A^C^F^s^u^bt^ot^al^25,776^25,688^25,426^25,734^25,632
^A^d^mⁱⁿⁱ^s^t^ratⁱ^oⁿ^on^A^gⁱⁿ^g^(A^O^A⁾¹^,347^1,341^1,356^1,369^1,376
^Of^fⁱ^{ce of}^th^{e Secretary}^,^P^u^blic^2,661^2,295^2,507^2,256^2,247
^Health^an^{d Social Serv}^{ice Fu}ⁿ^d
^R^e^tirem^en^{t P}^a^y^an^{d Medical}
^B^eⁿ^e^f^its^{, C}^o^m^mⁱ^s^sⁱ^on^{ed Of}^fⁱ^cers²⁶²²⁵¹²⁵¹²⁵¹²⁵¹
^(m^an^dat^o^ry⁾
^Health^{Facilities Co}ⁿ^s^tr^u^c^tioⁿ⁰¹⁸⁴⁰⁰⁰
^C^oⁿ^s^olⁱ^d^atⁱ^oⁿ^Propos^al
^O^f^fⁱ^{ce of}^t^h^{e S}^ecret^ary^,^O^t^h^e^r⁴⁴³⁴⁶¹⁴³²⁴⁵⁰⁴⁴⁰
^T^O^T^A^L^S^{, DE}^PART^M^E^NT^{OF HE}^AL^T^H^{AND HUM}^{AN SE}^RVICE^S
^T^o^{tal ap}^p^r^o^p^r^iatioⁿ^s^d^305,656^317,938^317,856^319,199^319,122
^C^u^rren^t^y^ear:^F^Y²⁰⁰²^254,799^261,831^261,749^263,192^263,016
^A^d^v^aⁿ^{ce y}^ear:^F^Y²⁰⁰³^50,856^56,107^56,107^56,107^56,107
^Source:^A^m^ouⁿ^t^s^{are bas}^e^{d on}^t^h^{e F}^Y^{2003 con}^f^eren^{ce report}^H^.^R^e^pt^.^108-^10,^F^e^bru^a^ry^13,^2003;
^Sen^a^{te an}^{d con}^f^eren^{ce data do n}^o^{t ref}^l^{ect cu}^ts^requ^{ired f}^o^{r m}^o^s^t^dis^c^retion^a^ry^f^uⁿ^d^s^(s^{ee pag}^e^10).
^a^T^h^{e F}^Y^{2002 am}^ouⁿ^t^s^{are bas}^e^{d on}^P.L^.^107-^{116, P.L}^.^107-^{117, an}^{d P.L}^.^107-^206.
^b^T^h^{e Veteran}^s^A^f^f^a^{irs an}^d^Ho^u^sⁱⁿ^g^an^d^Urb^aⁿ^Dev^e^lo^p^m^en^t^(VA^-^HUD)^A^p^p^r^o^p^r^iatioⁿ^s^A^c^{t p}^r^o^v^id^es
^addition^a^{l f}^uⁿ^dⁱⁿ^g^f^o^{r C}^D^C^{— $78 m}^illionⁱⁿ^FY2002.^c
^T^h^{e VA}^-^{HUD A}^ppropriation^s^A^c^{t prov}^ides^a^ddition^a^{l f}^uⁿ^dⁱⁿ^g^f^o^{r NIH — $81 m}^illionⁱⁿ^FY2002.^d
^A^p^p^r^o^p^r^iatioⁿ^s^to^talsⁱⁿ^clu^d^{e d}ⁱ^scr^e^tioⁿ^a^r^y^an^d^m^aⁿ^d^ato^r^y^f^uⁿ^d^{s, an}^d^m^a^y^b^e^su^b^j^{ect to}^ad^d^itioⁿ^a^l
^s^c^orek^eepin^g^an^{d oth}^e^{r adj}^u^s^t^m^eⁿ^t^s^.

Department of Education
The FY2003 budget proposal for discretionary appropriations at the Department
of Education (ED) is $50.3 billion, $0.4 billion (0.8%) more than the FY2002
appropriations of $49.9 billion, as shown in Table 9. As introduced in the House,
H.R. 246 would provide $50.3 billion; as passed by the Senate, H.J.Res. 2 would
provide $58.2 billion; and the conference agreement provides $53.4 billion in
discretionary appropriations. The stated FY2003 Senate and conference totals have
not been reduced as required by other Senate and conference provisions (see
page 10).
Table 9. Department of Education Discretionary Appropriations
($ in billions)
^FY²⁰⁰²^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^F^unding^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^A^ppropri^a^tⁱ^oⁿ^s^$49.9^$50.3^$50.3^$58.2^$53.4
^Source:^A^m^ouⁿ^t^s^{are bas}^e^{d on}^t^h^e^F^Y²⁰⁰³^con^f^eren^ce^report^(H^.R^ept^.^108-^10,^F^e^bru^a^ry^{13, 2003).}
^T^h^{e FY2003 am}^ouⁿ^t^s^f^o^{r th}^{e Sen}^a^{te an}^{d con}^f^eren^{ce v}^e^rs^ion^s^of^th^{e bill do n}^o^{t ref}^l^{ect s}^u^bs^equ^eⁿ^t^cu^ts
^to^m^o^{st d}ⁱ^scr^e^tioⁿ^a^r^y^p^r^o^g^r^a^m^s^r^e^q^u^ir^ed^elsew^h^er^{e in}^th^o^s^{e v}^e^r^s^ioⁿ^s^.
^No^te:^S^u^ppl^em^en^t^a^l^s^{are i}ⁿ^cl^u^d^ed^fo^r^FY^{2002. A}^m^ouⁿ^t^s^s^h^owⁿ^repres^en^t^di^s^c^retⁱ^oⁿ^a^ry^prog^ram^s
^f^uⁿ^d^{ed by}^L^-^H^H^S^-^E^D^appropri^a^tⁱ^oⁿ^s^;^appropri^a^tⁱ^oⁿ^s^f^o^{r m}^aⁿ^d^at^ory^prog^ram^s^{are ex}^cl^u^d^ed.
A single mandatory ED program is included in the L-HHS-ED bill; the
Vocational Rehabilitation State Grants program was funded at $2.5 billion in
FY2002.
Key Issues
President’s Request. The amount of federal support for education has been
a priority of both the Congress and the White House in recent years, and the FY2003
budget request for ED would increase federal funds for both elementary and
secondary education programs and for assistance at the postsecondary level.
Discretionary spending changes of at least $100 million are requested by the
President for the following programs.
^!An increase of $1.0 billion is requested for the Title I Part A Grants
to Local Educational Agencies (LEAs) program authorized under the
Elementary and Secondary Education Act of 1965 (ESEA), which
was funded at $10.4 billion in FY2002.
^!An additional $100 million is requested for Reading First programs,
funded at $975 million in FY2002.
^!$100 million is requested for a new Charter Schools Facilities
Initiative.
^!An additional $1.0 billion would be provided for Special Education
Part B Grants to States program under IDEA, funded at $7.5 billion
in FY2002.

^!The FY2003 request includes a proposal for $932 million to support
the creation of a new unified discretionary account for the
administration of federal student aid programs. This amount would
be offset in part by a savings of $795 million through the
reclassification of certain mandatory funds for student aid
administrative activities.
Along with the increases proposed above, the President’s budget would decrease
or terminate funding for several programs.
^!An decrease of $0.5 billion is requested for the Pell Grant program
that provides aid to low- and middle-income undergraduate students;
the FY2002 funding level of $11.3 billion includes $1.0 billion
supplemental from P.L. 107-206 that was enacted after the request
was made. The requested maximum award would be kept at the
FY2002 level of $4,000. The President’s FY2003 budget included
a separate request for an FY2002 supplemental appropriation of $1.3
billion for Pell Grants. Under the request, these funds would be
offset by the cancellation of an equal amount of FY2002
appropriations for programs or projects that were not included in the
President’s FY2002 request.
^!Rural Education funding would be eliminated; the FY2002 amount
was $163 million.
^!The Fund for the Improvement of Education (FIE) would be reduced
by $749 million; $833 million was provided in FY2002.
^!The Fund for the Improvement of Postsecondary Education (FIPSE)
would be decreased by $142 million; the program was funded at
$181 million in FY2002.
House Bill, as Introduced. For ED programs, the FY2003 House bill differs
in several respects from the President’s budget request.
^!ESEA Title I Part A Grants would receive $500 million less than
requested, but $500 million more than in FY2002.
^!Teacher Quality would receive $100 million more than the request
and the FY2002 amount.
^!Rural Education would be level funded at $163 million; no funds
were requested.
^!The FIE would receive $227 million more than requested but $522
million less than the FY2002 amount.
^!IDEA Part B Grants to States would receive $500 million less than
requested but $500 million more than the FY2002 amount.
^!Pell Grants would receive $337 million more than the request but
$114 million less than the FY2002 amount of $11.3 billion (which
includes the $1.0 billion supplemental enacted through P.L. 107-

206, August 2, 2002).

^!The House bill would reject the President’s request to fund
mandatory student loan administrative activities on a discretionary
basis.

Senate Bill, as Passed. For ED programs, the FY2003 Senate bill differs
in several respects from the President’s budget request.
^!The Senate proposes $5.0 billion for Innovative Education Programs
that would provide grants to States and LEAs under ESEA Title I
Part A, with funds available for any purpose specified by the ESEA,
the IDEA, or the Higher Education Act of 1965 (HEA); no funds are
requested for this activity.
^!No funds would be provided for Charter School Facilities, and none
were provided in FY2002; $100 million is requested.
^!Rural Education would receive $12 million more than the FY2002
amount of $163 million; no funds are requested.
^!FIE programs would receive $652 million more than the request but
$97 million less than the FY2002 amount of $833 million.
^!IDEA programs would receive $1.5 billion more than requested and
$2.5 billion more than in FY2002.
^!Pell Grants would be funded at $317 million more than the request
but $134 million less than the FY2002 amount of $11.3 billion
(which includes the $1.0 billion supplemental enacted through P.L.
107-206, August 2, 2002); the Senate bill would increase the
maximum award to $4,100, which is $100 more than the requested
award and the FY2002 maximum award of $4,000.
^!The Senate bill would reject the President’s proposal to fund
mandatory student loan administrative activities on a discretionary
basis.
Public Law. Under P.L. 108-7, as enacted, a change in funding from FY2002
to FY2003 of at least $100 million occurs for several ED programs.
^!For Title I Part A Grants to LEAs, $11.8 billion is provided for
FY2003, $400 million more than requested and $1.4 billion more
than in FY2002.
^!For Reading First State Grants, $1.0 billion is provided, the same as
the request and $100 million more than in FY2002.
^!For Teacher Quality State Grants, $3.0 billion is provided, $100
million more than requested and in FY2002.
^!For IDEA Special Education Part B Grants to States, $8.9 billion is
provided, $400 million more than requested and $1.4 billion more
than in FY2002.
^!For Pell Grants, $11.4 billion is provided, $576 million more than
requested and $125 million more than in FY2002. The Pell Grant
maximum award is increased $50, to $4,050; the request was for a
maximum award of $4,000, the same as in FY2002.
^!The conference agreement rejects the President’s proposal to fund
mandatory student loan administrative activities on a discretionary
basis.
Pell Grants. The funding level for Pell Grants has been a continuing issue.
The program provides assistance to undergraduate students based on financial need.
Aggregate program costs depend largely on the maximum award and the number of

student recipients. The maximum award is currently set when appropriations are
enacted, usually well before the start of the program year. The number of student
awards, however, cannot be determined until the final award is claimed; this final
accounting takes place after most decisions have been made on the following year’s
appropriations. Funding shortfalls for Pell Grants are not new; the Senate
Appropriations Committee states that shortfalls have occurred in 6 of the past 12
years (S.Rept. 107-156, p. 75, May 29, 2002).
Appropriations for Pell Grants make funds available for 2 full fiscal years to
provide administrative flexibility regarding potential shortfalls and surpluses. Under
this provision, a shortfall in one fiscal year can be reimbursed with funds obtained
from the following fiscal year; similarly, a surplus can be carried forward and used
in the following year. Currently, some FY2002 funds are needed to make up a
projected FY2001 shortfall, for which a final accounting should occur sometime in
FY2003. FY2002 funds used for the FY2001 shortfall will not be available to make
awards for the 2002-2003 academic year. As the Congress considered the amount
needed for FY2003 appropriations for Pell Grants, it had to consider not only the
projected size and number of awards for the 2003-4004 academic year, but also the
sufficiency of FY2002 appropriations needed for the 2002-2003 academic year and
the estimated FY2001 shortfall as well.
For FY2003, the President requests $10.9 billion for Pell Grants, with a $4,000
maximum award. As introduced, the House bill would provide $11.2 billion, with
a maximum award of $4,000; as passed, the FY2003 Senate bill would provide $11.2
billion, with a $4,100 maximum award. The FY2003 conference agreement provides
$11.4 billion (prior to the reduction, see page 10), with a maximum award of $4,050.
The President requested an FY2002 supplemental appropriation of $1.3 billion for
Pell Grants (for details, see Budget of the United States Government Appendix, Fiscal
Year 2003, pages 1195-1197). An FY2002 supplemental of $1.0 billion was enacted
as part of P.L. 107-206, which brought the FY2002 appropriations total to $11.3
billion. The FY2002 maximum award was $4,000. An ED Budget Service table of
March 4, 2003, shows a projected FY2003 shortfall of $1.9 billion under the
President’s FY2003 proposal and $1.5 billion under the FY2003 conference
agreement. These ED estimates include the use of $1.2 billion from FY2003
appropriations to fund a projected FY2002 shortfall. Cost estimates for FY2003 and
FY2002, and possibly FY2001, are subject to change. For additional information,
see CRS Report RL31668, Federal Pell Grant Program of the Higher Education Act:
Background and Reauthorization.
Student Aid Program Administration. The President’s FY2003 budget
proposes the consolidation of the administration of federal student aid programs into
a new unified discretionary account. If enacted, this account would combine the
following: (1) administrative funds for the Direct Loan (DL) program that support
loan origination, servicing, and collection; (2) account maintenance fees for the
Federal Family Education Loan (FFEL) program guaranty agencies; (3) other funds
that partially support administrative activities for the FFEL program; and (4) other
ED personnel and operational funds related to student aid program administration.
These funds are currently provided through a disparate set of mandatory,
discretionary, and subsidy accounts. The proposal would switch the DL program
administrative funds, which are currently mandatory appropriations, to discretionary

appropriations. Similarly, account maintenance fees which partially support FFEL
program guaranty agencies would cease to be mandatory appropriations and would
become discretionary appropriations. Much of the financing of FFEL program
administrative costs, however, would continue to be done through mandatory subsidy
payments to lenders. The Higher Education Act (HEA) provisions that provide the
underlying statutory authority for these funds would have to be changed to
accommodate this proposal. For additional information on the cost, financing, and
design of the FFEL and DL programs, see CRS Report RL30048, Federal Student
Loans: Program Data and Default Statistics, and CRS Report RL30656, The
Administration of Federal Student Loan Programs: Background and Provisions.
IDEA Part B Grants to States. The IDEA is the major federal program
providing assistance to states and school districts to help them fulfill their
constitutional obligation to provide a free appropriate public education to children
with disabilities. In 1975, the Congress authorized state payments up to a maximum
amount of 40% of the national average per-pupil expenditure (APPE) times the
number of children with disabilities ages 3 and above that each state serves. The
rationale for this formula was the assumption that the education of children with
disabilities cost twice the national APPE — 100% more than the “average” child —
and the maximum federal share of the extra cost would be 40%. Appropriations have
never been sufficient to reach the 40% level. Some view this deficiency as a promise
made that has not yet been kept. Achieving the 40% funding level for FY2002 for
Part B grants would take an estimated $18.2 billion, whereas the FY2002
appropriation was $7.5 billion, the equivalent of 16.5% of the current APPE times
the number of children served. An additional appropriation of $10.7 billion would
have been necessary to provide the 40% authorized maximum for FY2002. In
addition, funding requirements for maximum grants are likely to grow in the future,
as increases are anticipated for both the APPE and the number of children with
disabilities served. The latter may increase in part as a result of medical advances
that have resulted in more medically fragile children surviving to school age and
receiving a public education. For additional information, see CRS Report 97-433,
Individuals with Disabilities Education Act: Full Funding of State Formula.
Forward Funding and Advance Appropriations. Many of the larger ED
programs have either authorization or appropriations provisions that allow funding
flexibility for school program years that differ from the federal fiscal year. For
example, many of the elementary and secondary education formula grant programs
receive appropriations that become available for obligation to the states on July 1 of
the same year as the appropriations, and remain available through the end of the
following fiscal year. That is, FY2003 appropriations for some programs became
available for obligation to the states on July 1, 2003, and will remain available for a
15-month period until September 30, 2004. This budgetary procedure is popularly
known as “forward” or “multi-year” funding, and is accomplished through funding
provisions in the L-HHS-ED appropriations bill.
Forward funding in the case of elementary and secondary education programs
was designed to allow additional time for school officials to develop budgets in
advance of the beginning of the school year. For Pell Grants for undergraduates,
however, aggregate program costs for individual students applying for postsecondary
educational assistance cannot be known with certainty ahead of time. Appropriations

from one fiscal year primarily support Pell Grants during the following academic
year, that is, the FY2003 appropriations will be used primarily to support the 2003-
2004 academic year. Unlike forward funded programs, however, the funds for Pell
Grants remain available for obligation for 2 full fiscal years. Thus, if cost estimates
turn out to be too low, funds may be borrowed from the following year’s
appropriations, or conversely, if the estimates are too high, the surplus may be
obligated during the following year.
An advance appropriation occurs when the appropriation is provided for a
fiscal year beyond the fiscal year for which the appropriation was enacted. In the
case of FY2003 appropriations, funds normally would have become available
October 1, 2002, under regular funding provisions, but did not become available until
July 1, 2003, under the forward funding provisions discussed above. However, if the
July 1, 2003 forward funding date were to be postponed for obligation by 3 months
— until October 1, 2003 — the appropriation would be classified as an “advance
appropriation” since the funds would become available only in a subsequent fiscal
year, FY2004. For example, the FY2003 conference report includes an appropriation
of $11.8 billion (prior to the reduction, see page 10) for Title I Part A Grants to LEAs
for the Education of the Disadvantaged. This amount includes not only forward
funding of $2.9 billion (available July 1, 2003), but also an advance appropriation of
$8.8 billion (available October 1, 2003). Like forward funding, advance
appropriations are accomplished through provisions in the annual appropriations bill.
What is the impact of these changes in funding provisions? At the program or
service level, relatively little is changed by the 3-month delay in the availability of
funds, since most expenditures for a standard school year occur after October 1. At
the appropriations level, however, a significant technical difference occurs because
forward funding is counted as part of the current fiscal year, and is therefore fully
included in the current 302(b) allocation for discretionary appropriations. Under
federal budget scorekeeping rules, an advance appropriation is not counted in the
302(b) allocation until the following year. In essence, a 3-month change from
forward funding to an advance appropriation for a given program allows a one-time
shift from the current year to the next year in the scoring of discretionary
appropriations. For additional information on budget enforcement procedures, see
CRS Report 98-720, Manual on the Federal Budget Process.
CRS Products
CRS Report RL31487, Education for the Disadvantaged: Overview of ESEA
Title I-A Amendments Under the No Child Left Behind Act, by Wayne Riddle.
CRS Report RL31315, Education of Limited English Proficient and Recent
Immigrant Students: Provisions of the No Child Left Behind Act of 2001, by
Jeffrey J. Kuenzi.
CRS Report RL31353, Educational Research, Statistics, and Evaluation:
Legislation in the 107^th Congress, by Paul M. Irwin.
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 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 RL30075, Impact Aid: Status and Overview of 2000 Reauthorization
and 2001 Amendments, by Richard N. Apling.
CRS Report 97-433, Individuals with Disabilities Education Act: Full Funding of
State Formula, 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 RL31460, Individuals with Disabilities Education Act (IDEA): State
Grant Formulas, by Richard N. Apling.
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 108^th Congress, by Charmaine Jackson.
CRS Report RL31378, Rehabilitation Act: Programs and Funding, by Sidath V.
Panangala.
CRS Report RS20375, Rural Education: Legislative Initiatives, by James B.
Stedman and Richard N. Apling.
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 RS20171, School Facilities Infrastructure: Background and Legislative
Proposals, by Susan Boren.
CRS Report RL31240, 21^st 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 .jsp]
[ http://www.ed.gov/offices/OUS/budget.html]
[ http://www.ed.gov/offices/OUS/Budget03/index .html]
[ http://www.ed.gov/offices/OUS/budnews.html]
[ h ttp://www.ed.gov/offices/OUS/Budget03/03testimony/index .html]
Detailed Appropriations Table
Table 10 shows the appropriations details for offices and major programs of
ED.

Table 10. Detailed Department of Education Appropriations
($ in millions)
^FY²⁰⁰²^a^FY²⁰⁰³^b^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Offi^{ce or m}^a^{jor p}^r^ogram^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^O^f^fⁱ^{ce of}^El^em^ent^a^r^y^{and Secondar}^{y Educat}ⁱ^{on (}^O^ESE)
^T^o^t^a^l^El^em^ent^a^r^y^{and Secondar}^y^21,960^22,002^22,157^27,796^23,755
^Educatⁱ^{on Act}⁽^non-add)
^T^{itle I}^P^a^r^t^A^Ed^u^catioⁿ^f^o^r^th^e^10,350^11,350^10,850^11,350^11,750
^Disad^v^an^tag^e^d^,^Gr^an^{ts to}^L^E^A^s
^T^{itle I}^P^a^r^t^A^Iⁿⁿ^o^v^a^tiv^e⁰⁰⁰⁵^,000⁰
^Ed^u^catioⁿ^P^r^o^g^r^a^m^s
^Ev^en^S^t^art²⁵⁰²⁰⁰²⁵⁰²⁰⁰²⁵⁰
^R^eadiⁿ^g^Fⁱ^rs^t^S^t^at^{e G}^r^an^t^s⁹⁰⁰^1,000^1,000^1,000^1,000
^Ed^u^catioⁿ^f^o^r^th^{e Disad}^v^an^tag^e^d^,⁸⁴⁷⁸³⁵⁸³⁷⁶²⁸⁸⁵³
^Oth^e^r
^Im^pact^Aⁱ^d¹^,144^1,141^1,185^1,177^1,196
^S^c^h^ool^Im^prov^em^en^t^(S^I),^2,850^2,850^2,950^2,850^2,950
^T^each^{er Qu}^ality^{State Gran}^ts
^SI^I^nno^va^tⁱ^v^e^E^d^uc^a^tⁱ^o^{n B}^l^o^c^k³⁸⁵³⁸⁵³⁸⁵³⁸⁵³⁸⁵
^Gran^t
^S^I^Edu^catⁱ^oⁿ^a^l^T^echⁿ^o^l^o^g^y⁷⁸⁵⁷²³⁷²³⁷⁸⁷⁷⁸⁶
^SI²¹^st^Ce^nt^ur^y^Co^m^m^uni^t^y^1,000^1,000^1,000^1,000^1,000
^Le^a^rⁿⁱ^{ng Ce}^nt^e^r^s
^S^I^S^a^f^e^an^{d D}^r^u^g^-^F^r^{ee S}^c^h^ool^s⁶⁵⁴⁶⁴⁴⁶⁴⁴⁶⁴⁴⁶²⁸
^S^I^Magⁿ^e^t^S^c^h^ool^s¹¹⁰¹¹⁰¹¹⁰¹¹⁰¹¹⁰
^S^I^C^h^art^e^{r S}^c^h^ool^s²⁰⁰²⁰⁰²⁰⁰²⁰⁰²⁰⁰
^SI^Ch^ar^ter^Sch^o^o^l^{s Facilities}⁰¹⁰⁰⁵⁰⁰²⁵
^S^I^S^t^at^{e A}^s^s^e^s^s^m^en^t^s³⁸⁷³⁸⁷³⁸⁷³⁸⁷³⁸⁷
^S^I^R^u^ral^Edu^catⁱ^oⁿ¹⁶³⁰¹⁶³¹⁷⁵¹⁶⁹
^{SI Fu}ⁿ^d^f^o^{r th}^{e Im}^prov^em^en^{t of}⁸³³⁸⁴³¹¹⁷³⁶⁸¹⁵
^Edu^catⁱ^oⁿ^(F^IE)
^S^c^h^ool^Im^prov^em^en^t^,^ot^h^e^r⁴⁷⁰³⁰¹⁴²⁵⁵¹⁴⁵⁹⁸
^In^di^an^Edu^catⁱ^oⁿ¹²⁰¹²²¹²²¹²²¹²²
^E^{nglish L}^a^ngua^ge^A^c^q^u^isitioⁿ
^aⁿ^d^E^nha^nc^e^m^eⁿ^t⁽^Bⁱ^lⁱ^ngua^l^aⁿ^d⁶⁶⁵⁶⁶⁵⁶⁶⁵⁶⁹⁰⁶⁹⁰
^I^m^mⁱ^g^r^an^{t Ed}^u^catioⁿ⁾
^{Office of Special E}^{ducation and Rehab}^{ilitative Ser}^v^ices⁽^O^SERS)
^IDEA^{Special Edu}^cation^,^P^a^{rt B}^,^7,529^8,529^8,029^10,029^8,929
^Gran^ts^{to States}
^ID^EA^S^p^eci^al^Edu^catⁱ^oⁿ^,^ot^h^e^r¹^,144^1,159^1,159^1,162^1,167
^Vo^catioⁿ^a^{l Reh}^a^b^ilitatioⁿ^State^2,481^2,533^2,533^2,533^2,533
^Gran^ts^(m^an^datory⁾
^Reh^a^b^ilitatioⁿ^Ser^v^{ices, o}^t^h^e^r⁴⁶⁴⁴⁶⁸⁴²³⁴²⁶⁴²³
^Sp^{ecial I}ⁿ^stitu^tioⁿ^s^f^o^r^P^e^r^s^oⁿ^s¹⁶⁶¹⁶⁰¹⁶⁴¹⁶⁹¹⁶⁸
^W^ith^Disab^ilities
^Of^fⁱ^{ce of}^Vocatⁱ^onal^{and Adul}^t^Educatⁱ^{on (}^O^VAE)
^Perkⁱⁿ^s^V^o^catⁱ^oⁿ^a^l^Edu^catⁱ^oⁿ¹^,321^1,307^1,329^1,322^1,342
^A^d^u^l^t^Edu^catⁱ^oⁿ⁵⁹¹⁵⁹¹⁵⁹¹⁵⁹¹⁵⁹¹
^In^{carcerated You}^t^h^Of^f^eⁿ^d^ers²²⁰⁰²⁵²⁴

^FY²⁰⁰²^a^FY²⁰⁰³^b^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Offi^{ce or m}^a^{jor p}^r^ogram^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^Of^fⁱ^{ce of}^St^udent^Fi^nanci^a^l^As^sⁱ^s^t^{ance Pr}^ogr^ams⁽^O^SFAP)
^Pel^l^G^r^ant^s^,^m^a^xi^m^u^m^aw^ar^{d (}ⁱⁿ^4,000^4,000^4,000^4,100^4,050
^dol^l^a^r^s^,^non-add)
^P^e^{ll Gr}^an^ts^a,^b^11,314^10,863^11,200^11,180^11,439
^Su^p^p^l^em^en^{tal Ed}^u^catioⁿ^a^l⁷²⁵⁷²⁵⁷²⁵⁷²⁵⁷⁶⁵
^O^pport^uⁿⁱ^t^y^G^r^an^t^s
^F^e^deral^Work^-^S^t^u^dy^1,011^1,011^1,011^1,011^1,011
^Fed^e^r^a^{l P}^e^r^kⁱⁿ^{s L}^o^an^{s, Cap}^ital¹⁰⁰¹⁰⁰¹⁰⁰¹⁰⁰¹⁰⁰
^Co^nt^rⁱ^b^u^tⁱ^o^ns
^F^e^deral^P^e^rkⁱⁿ^s^L^o^an^s^,^L^o^an⁶⁸⁶⁸⁶⁸⁶⁸⁶⁸
^Can^cellatioⁿ^s
^Le^ve^r^a^gi^{ng E}^d^uc^a^tⁱ^o^na^l⁶⁷⁰⁶⁷⁶⁷⁶⁷
^A^s^sⁱ^s^t^an^{ce P}^a^rtⁿ^e^rs^hⁱ^{p (L}^EA^P⁾
^L^o^an^Forg^iv^en^es^s^f^o^{r C}^h^{ild C}^a^re¹¹¹¹¹
^Fed^e^r^a^{l Fam}^ily^Ed^u^catioⁿ^L^o^an^s,⁴⁹⁰⁰⁰⁰
^A^d^mⁱⁿⁱ^str^a^tioⁿ
^O^f^fⁱ^{ce of}^Pos^t^s^econdar^{y Educat}ⁱ^{on (}^O^PE)
^Aⁱ^d^f^o^r^Iⁿ^stitu^tioⁿ^a^{l Dev}^e^lo^p^m^en^t⁴³⁹⁴⁵⁴⁴⁵⁴⁴⁷⁵⁴⁷⁵
^Fuⁿ^d^f^o^{r th}^{e Im}^prov^em^en^{t of}¹⁸¹³⁹³⁹¹²⁷¹⁷³
^P^o^s^t^s^econ^d^ary^Edu^cation^(FIP^SE)
^F^e^deral^T^R^IO^Prog^ram^s⁸⁰³⁸⁰³⁸¹⁰⁸³³⁸³³
^G^E^A^R^U^P²⁸⁵²⁸⁵²⁸⁵²⁹⁵²⁹⁵
^Hⁱ^g^h^e^{r Edu}^catⁱ^oⁿ^,^ot^h^e^r³²³³⁰²³¹⁶³¹⁸³²⁵
^H^o^w^a^{rd U}ⁿⁱ^v^ersⁱ^t^y²³⁷²³⁷²⁴⁰²⁴⁰²⁴⁰
^Co^l^l^e^ge^H^o^usi^{ng a}ⁿ^d^A^c^a^d^e^mⁱ^c¹¹¹¹¹
^{Facilities L}^o^an^{s, A}^d^mⁱⁿⁱ^str^a^tioⁿ
^O^f^fⁱ^{ce of}^Educatⁱ^onal^Res^e^ar^{ch and Im}^pr^ovem^ent⁽^O^ERI)
^R^e^s^earch^an^{d S}^t^atⁱ^s^tⁱ^c^s³⁸⁶⁴³³³⁹⁸³³⁹³⁹³
^Mu^lti-^y^ear^Gr^an^ts⁵⁸⁰⁰⁵⁸⁵⁸
^D^e^part^m^eⁿ^t^al^Man^a^g^e^m^eⁿ^t⁵³⁷⁵³⁹⁵³⁹⁵³⁹⁵⁴⁰
^S^t^u^d^en^t^Aⁱ^{d A}^d^mⁱⁿⁱ^s^t^ratⁱ^oⁿ^C^o^s^t^s⁰⁹³²¹⁰⁵¹⁰⁵¹⁰⁵
^Stu^d^en^{t A}ⁱ^{d R}^eclas^sⁱ^fⁱ^cation⁰^-⁷⁹⁵⁰⁰⁰
^Propos^al
^T^O^T^A^L^S^{, DE}^PART^M^E^NT^{OF E}^DUCAT^ION
^T^o^{tal A}^p^p^r^o^p^r^iatioⁿ^s^a,^b^,^c^52,417^52,843^52,843^60,696^55,979
^C^u^rren^t^y^ear:^F^Y²⁰⁰³^37,406^37,832^37,832^41,940^38,724
^A^d^v^aⁿ^{ce y}^ear:^F^Y²⁰⁰⁴^15,011^15,011^15,011^18,755^17,255
^Source:^A^m^ouⁿ^t^s^{are bas}^e^{d on}^t^h^e^F^Y²⁰⁰³^con^f^eren^ce^report^H^.^R^e^pt^.^108-^{10, F}^e^bru^a^ry^{13, 2003;}
^Sen^a^{te an}^{d con}^f^eren^{ce data do n}^o^{t ref}^l^{ect cu}^ts^requ^{ired f}^o^{r m}^o^s^t^dis^c^retion^a^ry^f^uⁿ^d^s^(s^{ee pag}^e^10).
^a^T^h^{e F}^Y^{2002 am}^ouⁿ^t^s^{are bas}^e^{d on}^P.L^.^107-^116,^P.L^.^107-^117,^an^d^P.L^.^107-^206,^w^hⁱ^c^hⁱⁿ^cl^u^d^es
^an^{FY2002 s}^u^pplem^en^{tal appropriation}^s^of^{$1.0 billion}^f^o^{r P}^e^{ll Gran}^ts^th^{at is}ⁱⁿ^clu^d^{ed in}^th^{e table.}^b
^T^h^{e F}^Y^{2003 bu}^dg^et^of^F^e^bru^a^ry^{4, 2002, i}ⁿ^cl^u^d^{ed a}ⁿ^F^Y^{2002 s}^u^ppl^em^en^t^a^l^requ^es^t^of^$1,276
^m^illioⁿ^f^o^r^P^e^{ll Gr}^an^{ts, w}^h^ich^{is n}^o^{t sh}^o^wⁿⁱⁿ^th^{e tab}^l^e.^c
^A^p^p^r^o^p^r^iatioⁿ^s^to^{tals in}^clu^d^{e d}ⁱ^scr^e^tioⁿ^a^r^y^an^d^m^aⁿ^d^ato^r^y^f^uⁿ^d^s,^an^d^m^a^y^b^e^su^b^j^ect^to^ad^d^itioⁿ^a^l
^s^c^orek^eepin^g^an^{d oth}^e^{r adj}^u^s^t^m^eⁿ^t^s^.

Related Agencies
The FY2003 budget proposal for discretionary appropriations for L-HHS-ED
Related Agencies is $9.3 billion, $0.1 billion (1.1%) more than the FY2002
appropriations of $9.2 billion, as shown in Table 11. As introduced in the House,
H.R. 246 would provide $9.6 billion; as passed by the Senate, H.J.Res. 2 would
provide $9.6 billion; and the conference agreement provides $9.7 billion in
discretionary appropriations. The stated FY2003 Senate and conference totals have
not been reduced as required by other Senate and conference provisions (see
page 10).
Table 11. Related Agencies Discretionary Appropriations
($ in billions)
^FY²⁰⁰²^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^F^unding^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^A^ppropri^a^tⁱ^oⁿ^s^$9.2^$9.3^$9.6^$9.6^$9.7
^Source:^A^m^ouⁿ^t^s^{are bas}^e^{d on}^t^h^e^F^Y²⁰⁰³^con^f^eren^ce^report^(H^.R^ept^.^108-^10,^F^e^bru^a^ry^{13, 2003).}
^T^h^{e FY2003 am}^ouⁿ^t^s^f^o^{r th}^{e Sen}^a^{te an}^{d con}^f^eren^{ce v}^e^rs^ion^s^of^th^{e bill do n}^o^{t ref}^l^{ect s}^u^bs^equ^eⁿ^t^cu^ts
^to^m^o^{st d}ⁱ^scr^e^tioⁿ^a^r^y^p^r^o^g^r^a^m^s^r^e^q^u^ir^ed^elsew^h^er^{e in}^th^o^s^{e v}^e^r^s^ioⁿ^s^.
^No^te:^S^u^ppl^em^en^t^a^l^s^{are i}ⁿ^cl^u^d^ed^fo^r^FY^{2002. A}^m^ouⁿ^t^s^s^h^owⁿ^repres^en^t^di^s^c^retⁱ^oⁿ^a^ry^prog^ram^s
^f^uⁿ^d^{ed by}^L^-^H^H^S^-^E^D^appropri^a^tⁱ^oⁿ^s^;^appropri^a^tⁱ^oⁿ^s^f^o^{r m}^aⁿ^d^at^ory^prog^ram^s^{are ex}^cl^u^d^ed.
Mandatory programs for related agencies included in the FY2002 L-HHS-ED
bill were funded at $30.3 billion, including $29.4 billion for the Supplemental
Security Income (SSI) program, $0.4 billion for the Special Benefits for Disabled
Coal Miners program, and $0.4 billion for payments to the Social Security Trust
Fund.
Key Issues
President’s Request. The President’s FY2003 budget for related agencies
would change discretionary spending by at least $100 million for several programs.
^!The Corporation for Public Broadcasting (CPB) would have its 2-
year advance appropriation for FY2005 eliminated; it will receive
$380 million for FY2004 which was enacted by the FY2002
L-HHS-ED bill, and has received $365 million for FY2003 enacted
by the FY2001 bill.
^!An additional $351 million is proposed for the SSA Limitation on
Administrative Expenses, which was funded at $4.6 billion in
FY2002.
An increase of $68 million is proposed for the Corporation for National and
Community Service (CNCS) programs, including an additional $50 million to
expand service opportunities for seniors under special volunteer programs; FY2002
funding for CNCS was $328 million.

House Bill, as Introduced. For the related agencies included in the L-HHS-
ED bill, the House bill differs from the President’s budget request by providing an
advance appropriation for CPB of $380 million for FY2005; the CPB would not
receive FY2005 funding under the request. In addition, the CNCS would receive $46
million less than requested under the House bill, including $50 million less than
requested for Special Volunteer Programs.
Senate Bill, as Passed. For related agencies, the FY2003 Senate bill differs
from the President’s budget request by at least $100 million for one program. The
CPB would receive a 2-year advance appropriation of $395 million for FY2005;
funding for FY2005 would not be provided under the FY2003 request.
Public Law. Under P.L. 108-7, as enacted, a change in funding from FY2002
to FY2003 of at least $100 million occurs for one of the related agency programs.
The SSA Limitation on Administrative Expenses is funded at $5.0 billion, the same
as the request and $351 million more than in FY2002.
CRS Products
CRS Report RS20287, Arts and Humanities: Background on Funding, by Susan
Boren.
CRS Report RL30186, Community Service: A Description of AmeriCorps, Foster
Grandparents, and Other Federally Funded Programs, by Ann Lordeman and
Alice D. Butler.
CRS Report RL31320, Federal Aid to Libraries: The Library Services and
Technology Act, by Gail McCallion.
CRS Report RS21246, National and Community Service: Reauthorization of the
National and Community Service Act of 1990 and the Domestic Volunteer
Service Act of 1973, by Ann Lordeman.
CRS Report RS20548, Public Broadcasting: Frequently Asked Questions, by
Bernevia McCalip.
CRS Report RS20408, Railroad Retirement and Unemployment Benefits: A Fact
Sheet, by Rachel W. Kelly.
CRS Report RS20165, Social Security and Medicare “Lock Box,” by David Stuart
Koitz et al.
CRS Report 98-422, Social Security and the Federal Budget: What Does Social
Security’s Being “Off Budget” Mean?, by David Stuart Koitz.
CRS Issue Brief IB98048, Social Security Reform, by Geoffrey Kollmann and 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 web sites, and not all web
sites include FY2003 budget information.

Armed Forces Retirement Home
[ h ttp://www.afrh.com]
Corporation for National and Community Service
[ http://www.cns.gov]
[ h ttp://www.cns.gov/news/factsheets/fy03budget.html]
Corporation for Public Broadcasting
[ h ttp://www.cpb.org]
Federal Mediation and Conciliation Service
[ http://www.fmcs.gov]
Institute of Museum and Library Services
[ http://www.imls.gov]
Medicare Payment Advisory Commission
[ h ttp://www.medpac.gov/]
National Commission on Libraries and Information Science
[http://www.nclis.gov/]
[ http://www.nclis.gov/news/FY2003.Appropriations.Testimony.pdf]
[ http://www.nclis.gov/news/FY2003AppropriationsJ u stification.pdf]
National Council on Disability
[ http://www.ncd.gov/]
National Education Goals Panel
[ http://www.negp.gov/]
National Labor Relations Board
[ http://www.nlrb.gov]
Railroad Retirement Board
[ h ttp://www.rrb.gov]
Social Security Administration
[ http://www.ssa.gov]
[ http://www.ssa.gov/budget/2003bud.html]
United States Institute of Peace
[ http://www.usip.org]
Detailed Appropriations Table
Table 12 shows the appropriations details for offices and major programs of the
L-HHS-ED related agencies.

Table 12. Detailed Related Agencies Appropriations
($ in millions)
^FY²⁰⁰²^a^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Offi^{ce or m}^a^{jor p}^r^ogram^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^A^r^m^e^{d S}^e^rvⁱ^ces^R^e^tⁱ^r^em^en^t^H^o^m^e⁷¹⁶⁷⁶⁷⁶⁷⁶⁸
^C^o^r^por^atⁱ^{on f}^o^r^N^a^tⁱ^onal^{and C}^o^m^m^uni^t^y^Ser^vⁱ^{ce (}^CNCS⁾^b
^Voluⁿ^t^eersⁱⁿ^Serv^{ice to A}^m^erica⁸⁵⁹⁴⁹⁴⁹⁴⁹⁴
^(VIS^T^A⁾
^{Special Volu}ⁿ^t^{eer P}^r^og^ram^s⁵⁵⁵⁵¹⁰¹⁰
^N^a^tⁱ^oⁿ^a^l^S^eⁿⁱ^{or V}^o^l^uⁿ^t^{eer C}^o^rps²⁰⁶²¹³²¹⁷²¹³²¹⁷
^P^r^o^g^r^a^{m A}^d^miⁿⁱ^s^t^r^a^tⁱ^oⁿ³²³⁴³⁴³⁴³⁵
^C^N^C^S^s^u^bt^ot^al³²⁸³⁹⁶³⁵⁰³⁵¹³⁵⁶
^Co^r^p^o^r^atioⁿ^f^o^r^P^u^b^lic
^B^r^oadcas^tin^g^(C^P^B^{), 2-}^Year³⁸⁰⁰³⁸⁰³⁹⁵³⁹⁰
^A^d^va^nc^e
^C^{PB cur}^r^e^nt^year⁽^non-add)³⁵⁰³⁶⁵³⁶⁵³⁶⁵³⁶⁵
^CP^B^Dig^italizatioⁿ^P^r^o^g^r^a^m²⁵²⁵²⁵⁴⁹⁴⁹
^Fed^e^r^a^{l Med}ⁱ^atioⁿ^an^d⁴⁰⁴¹⁴¹⁴¹⁴¹
^Coⁿ^c^iliatioⁿ^Ser^v^ice
^Fed^e^r^a^{l Min}^e^Saf^e^ty^an^d^Health⁷⁷⁷⁷⁷
^Revⁱ^ew^Co^m^m^ittee
^Iⁿ^stitu^{te o}^f^Mu^seu^m^an^d^Lⁱ^b^r^ar^y^c²²⁵²¹⁰²¹⁰²⁰³²⁴⁵
^S^e^rvⁱ^ces^(IML^S⁾
^–M^us^eum^Ser^vⁱ^ces⁽^non-add)²⁷²⁹^N^/^S^N^/^S^N^/^S
^–Lⁱ^b^r^a^r^y^Ser^vⁱ^ces⁽^non-add)¹⁹⁸¹⁸¹^N^/^S^N^/^S^N^/^S
^{Medicare P}^a^y^m^en^{t A}^d^vⁱ^s^o^ry⁸⁹⁸⁸⁹
^C^o^mmi^s^sⁱ^oⁿ
^Natioⁿ^a^{l Co}^m^mⁱ^ssioⁿ^oⁿ¹⁰¹¹¹
^Lⁱ^b^r^ar^{ies an}^d^Iⁿ^f^o^r^m^atioⁿ^Scien^c^e
^Natioⁿ^a^{l Co}^uⁿ^c^{il o}ⁿ^Disab^ility³³³³³
^Natioⁿ^a^{l Ed}^u^catioⁿ^Go^{als P}^aⁿ^e^l^<⁰^.⁵⁰⁰⁰⁰
^N^a^tⁱ^oⁿ^a^l^L^a^{bor R}^e^l^a^tⁱ^oⁿ^s^Board²²⁷²³³²²⁷²³⁸²³⁹
^Natioⁿ^a^{l Med}ⁱ^atioⁿ^B^o^ar^d¹¹¹¹¹¹¹¹¹¹
^Occu^p^a^tioⁿ^a^{l Saf}^e^ty^an^d^Health⁹¹⁰¹⁰¹⁰¹⁰
^R^e^vⁱ^e^w^C^o^mmi^s^sⁱ^oⁿ
^R^aⁱ^l^r^{oad R}^e^tⁱ^r^em^en^t^Board²⁴¹²²⁸²³⁰²²⁸²³⁰

^FY²⁰⁰²^a^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³^FY²⁰⁰³
^Offi^{ce or m}^a^{jor p}^r^ogram^fiⁿ^a^l^request^Hou^s^e^Sena^t^e^enacted
^Soci^a^l^Securⁱ^t^y^Admⁱⁿⁱ^s^t^r^a^tⁱ^{on (}^SSA)
^SSA^P^a^y^m^en^ts^{to Social Secu}^rity⁴³⁴²⁰²⁰²⁰²⁰
^T^r^ust^Fund⁽^m^aⁿ^d^a^t^o^r^y⁾
^SSA^Sp^{ecial B}^e^nef^{its f}^o^r
^Dis^a^{bled C}^o^{al Min}^e^rs⁴⁴¹³⁹⁷³⁹⁷³⁹⁷³⁹⁷
^(m^an^dat^o^ry⁾
^SSA^Su^pplem^en^{tal Secu}^rity^29,440^32,162^32,162^32,170^32,170
^In^com^e^(S^S^I^{) (m}^an^dat^o^ry⁾
^S^S^A^S^S^I^{, D}ⁱ^s^c^retⁱ^oⁿ^a^ry^2,927^2,936^2,936^2,936^2,936
^SSA^Lⁱ^m^itatioⁿ^oⁿ^A^d^mⁱⁿⁱ^str^a^tiv^e^4,649^5,000^5,000^5,000^5,000
^Ex^pen^s^es
^SSA^Of^fⁱ^{ce of}^In^s^p^{ector Gen}^e^ral⁷⁵⁸³⁸³⁸³⁸³
^S^S^A^s^u^bt^ot^al^37,966^40,598^40,598^40,606^40,606
^Un^ited^{States In}^stitu^{te f}^o^{r P}^eace¹⁵¹⁶¹⁵¹⁶¹⁶
^TO^TA^LS,^R^E^LA^TED^A^G^EN^C^I^ES
^T^o^{tal ap}^p^r^o^p^r^iatioⁿ^s^d^39,558^41,854^42,184^42,234^42,282
^C^u^rren^t^y^ear:^F^Y²⁰⁰³^28,280^30,676^30,627^30,662^30,715
^A^d^v^aⁿ^{ce y}^ear:^F^Y²⁰⁰⁴^10,898^11,177^11,177^11,177^11,177
^A^d^v^aⁿ^{ce y}^ear:^F^Y²⁰⁰⁵³⁸⁰⁰³⁸⁰³⁹⁵³⁹⁰
^Source:^A^m^ouⁿ^t^s^{are bas}^e^{d on}^t^h^{e F}^Y²⁰⁰³^con^f^eren^ce^report^H^.^R^e^pt^.^108-^10,^F^e^bru^a^ry^{13, 2003;}
^Sen^a^{te an}^{d con}^f^eren^{ce data do n}^o^{t ref}^l^{ect cu}^ts^requ^{ired f}^o^{r m}^o^s^t^dis^c^retion^a^ry^f^uⁿ^d^s^(s^{ee pag}^e^10).
^No^te:^“^N^{/S” m}^ean^{s th}^{at th}^{e am}^o^uⁿ^t^w^a^{s n}^o^{t sp}^ecifⁱ^edⁱⁿ^th^{e r}^e^lev^aⁿ^t^b^{ill o}^r^tab^l^e.
^a^T^h^{e F}^Y^{2002 am}^ouⁿ^t^s^{are bas}^e^{d on}^107-^{116, P.L}^.^107-^{117, an}^{d P.L}^.^107-^206.
^b^L^-^HHS-^E^{D f}^uⁿ^d^s^{are prov}^{ided on}^ly^f^o^{r C}^N^C^S^Do^m^e^{stic Vo}^luⁿ^t^eer^Ser^v^{ice A}^c^{t p}^r^o^g^r^a^m^s^{. I}ⁿ
^a^d^d^itioⁿ^,^th^{e Veteran}^s^A^f^f^a^irs-^Ho^u^sⁱⁿ^g^an^d^Urb^aⁿ^Dev^e^lo^p^m^en^{t (VA}^-^{HUD) A}^p^p^r^o^p^r^iatioⁿ^s^A^c^t
^provⁱ^d^es^f^uⁿ^d^s^f^o^{r C}^N^C^S^A^m^eri^C^orps^G^r^aⁿ^t^s^an^{d ot}^h^e^{r prog}^ram^s^uⁿ^d^{er t}^h^{e N}^a^tⁱ^oⁿ^a^l^C^o^m^m^uⁿⁱ^t^y
^Serv^{ice A}^c^{t — $407 m}^illionⁱⁿ^FY2002.^c
^T^h^{e IML}^S^am^ouⁿ^t^sⁱⁿ^clu^d^e^bo^t^h^Lⁱ^brary^Serv^ices^an^{d Mu}^s^e^u^m^Serv^ices^;^h^o^w^e^v^e^r,^$27^m^illion^of
^t^h^e^F^Y²⁰⁰²^am^o^uⁿ^t^s^h^o^wⁿ^w^a^s^p^r^o^vⁱ^d^e^d^f^o^r^M^u^s^e^u^m^S^e^r^vⁱ^c^e^s^f^r^o^m^t^h^e^F^Y^{2002 V}^A^-^H^U^D
^A^p^p^r^o^p^r^iatioⁿ^s^A^c^t.^d
^A^p^p^r^o^p^r^iatioⁿ^s^to^{tals in}^clu^d^{e d}ⁱ^scr^e^tioⁿ^a^r^y^an^d^m^aⁿ^d^ato^r^y^f^uⁿ^d^s,^an^d^m^a^y^b^e^su^b^j^{ect to}^ad^d^itioⁿ^a^l
^s^c^orek^eepin^g^an^{d oth}^e^{r adj}^u^s^t^m^eⁿ^t^s^.

Related Legislation
Several proposals related to L-HHS-ED appropriations were considered during^nd^th
the 2 Session of the 107 Congress, including a series of FY2003 continuing
resolutions, further FY2002 supplemental appropriations, the FY2003 budget
resolutions, and the establishment of a new Department of Homeland Security.
Several additional FY2003 continuing resolutions were enacted early in the 108^th
Congress, prior to the passage of the Consolidated Appropriations Resolution, 2003,
(P.L. 108-7, enacted February 20, 2003).
FY2003 Continuing Resolution, P.L. 107-229 (H.J.Res. 111)
From October 1, 2002, through February 20, 2003, a series of eight continuing
resolutions extended appropriations for FY2003 on a temporary basis for most
ongoing L-HHS-ED programs, including the costs of direct loans and loan
guarantees. These resolutions were necessary because the regular FY2003
L-HHS-ED appropriations were not enacted by the start of FY2003. Funding under
the continuing resolution was provided at a rate of operations not to exceed the
“current rate,” under FY2002 conditions and program authority. New initiatives
were prohibited unless otherwise specifically authorized. For programs with high
spend-out rates that normally would occur early in the fiscal year, special restrictions
prohibited spending levels that would impinge on final funding decisions. For
additional information, see CRS Report RL30343, Continuing Appropriations Acts:
Brief Overview of Recent Practices.
^!1^st Continuing Resolution, P.L. 107-229 (H.J.Res. 111), provided
temporary appropriations for the period October 1 through
October 4, 2002, as long as regular appropriations were not enacted
sooner. Section 114 of the resolution extends funding through the
entire first quarter of FY2003, through December 31, 2002, for the
Temporary Assistance for Needy Families (TANF) and mandatory
child care programs (these funds were originally provided in the
1996 welfare reform law). The resolution also extends the rules for
transitional Medicaid through December 31, 2002; these rules
provide coverage for up to one year for families moving from
welfare to work. The resolution was passed by the House (roll call
no. 423, 370-1) and the Senate (by unanimous consent) on
September 26, 2002. It was signed into law by the President on
September 30, 2002, as P.L. 107-229.
^!2^nd Continuing Resolution, P.L. 107-235 (H.J.Res. 112), extended
the provisions of P.L. 107-229 through October 11, 2002.
^!3^rd Continuing Resolution, P.L. 107-240 (H.J.Res. 122), extended
the provisions of P.L. 107-229 through October 18, 2002. In
addition, it requires the current rate to be reduced by the exclusions
listed in OMB instructions to federal agencies on October 4, 2002,
regarding one-time FY2002 appropriations, and requires OMB to
submit to the Committees on Appropriations monthly reports on the
rate of obligations under the continuing resolutions. It extends

specified Medicaid provisions to a date 60 days beyond the
expiration of the period specified in P.L. 107-229, as amended.
^!4^th Continuing Resolution, P.L. 107-244 (H.J.Res. 123), extended
the provisions of P.L. 107-229 through November 22, 2002.
^!5^th Continuing Resolution, P.L. 107-294 (H.J.Res. 124), extended
the provisions of P.L. 107-229 through January 11, 2003. In
addition, it authorizes the transfer of up to $640 million for the new
Department of Homeland Security (DHS), including $140 million
for salaries and expenses associated with start-up costs for the new
department. It amends §114 of P.L. 107-229 to extend certain
TANF provisions automatically to the date specified by the
continuing resolution, as amended, at the level provided for during
the corresponding period in FY2002.
^!6^th Continuing Resolution, P.L. 108-2 (H.J.Res. 1), extended the
provisions of P.L. 107-229 through January 31, 2003.
^!7^th Continuing Resolution, P.L. 108-4 (H.J.Res. 13), extended the
provisions of P.L. 107-229 through February 7, 2003.
^!8^th Continuing Resolution, P.L. 108-5 (H.J.Res. 18), extended the
provisions of P.L. 107-229 through February 20, 2003. On that date,
H.J.Res. 2, the Consolidated Appropriations Resolution, 2003, was
signed into law as P.L. 107-8, enacting all remaining FY2003
appropriations, including funding for L-HHS-ED programs.
FY2002 Supplemental Appropriations, P.L. 107-206
(H.R. 4775)
On March 21, 2002, the President submitted to the Congress a request for an
FY2002 supplemental appropriations for emergency funding in support of the war
on terrorism, homeland security, and economic revitalization. The request included
supplemental appropriations of $700 million for L-HHS-ED programs. In addition,
as part of the regular FY2003 budget, the President requested an FY2002
supplemental of $1.3 billion for Pell Grants, with the amount to be offset by
rescissions in FY2002 appropriations from other L-HHS-ED programs.
As passed by the House, H.R. 4775 would have provided an additional $1.3
billion for L-HHS-ED programs, including $1.0 billion for Pell Grants. H.R. 4775,
H.Rept. 107-480, was passed by the House May 24, 2002 (roll call no. 206, 280-
136). The Senate amendment to the House bill would have provided $1.8 billion for
L-HHS-ED programs, including $1.0 billion for Pell Grants. The Senate proposal
incorporated the provisions of S. 2551, S.Rept. 107-156, as reported by the Senate
Appropriations Committee. H.R. 4775 was passed by the Senate on June 7, 2002
(roll call no. 145, 71-22).
The H.R. 4775 conference agreement provides $1.0 billion for Pell Grants.
An additional $91.5 million would have been provided for other L-HHS-ED
programs, primarily the Public Health and Social Services Emergency Fund
(PHSSEF). However, the availability of the latter funds were made conditional on
the funds being requested by the President; on August 13, 2002, the President
announced that there would be no such request, thereby reducing the amount of

appropriations available to be spent. The agreement also includes a rescission of $75
million from existing FY2002 appropriations for NIH facilities and L-HHS-ED
administration. No additional funds were provided for job training or dislocated
worker programs. The H.R. 4775 conference report, H.Rept. 107-593, was agreed
to by the House on July 23 (roll call no. 328, 397-32), and by the Senate July 25,
2002 (roll call no. 188, 92-7). H.R. 4775 — the 2002 Supplemental Appropriations
Act for Further Recovery From and Response To Terrorist Attacks on the United
States — was signed into law by the President on August 2, 2002, as P.L. 107-206.
For additional information on specific L-HHS-ED programs, see Appendix C:
Terrorism Funding in the L-HHS-ED, Bill, page 53. For additional information on
H.R. 4775, see CRS Report RL31404, Supplemental Appropriations for FY2002:
Combating Terrorism and Other Issues.
FY2003 Budget Resolution, H.Con.Res. 353/S.Con.Res. 100
The concurrent resolution on the budget sets forth the congressional budget for
FY2003. The House version of the resolution proposes federal budget levels for
FY2004 through FY2007; the Senate version proposes budget levels for FY2004
through FY2012. The maximum for total discretionary spending is specified within
the context of the budget resolution. As reported, the House version of the resolution
would set an FY2003 limit of $759.1 billion in discretionary spending, compared to
$709.3 billion enacted for FY2002 (H.Rept. 107-376, p. 70). The Senate-reported
version proposes a total FY2003 discretionary limit of $768.1 billion (S.Rept. 107-
141, p. 59). Typically, budget resolutions also specify the budget reconciliation
process for the modification of mandatory spending limits and tax cut legislation, and
set spending targets for functional categories of the budget. They may establish
“reserve fund” mechanisms for activities such as Medicare or student loans, and may
contain “sense of the Congress” declarations concerning programs such as Graduate
Medical Education at Children’s Teaching Hospitals or mental health parity. Report
language usually provides an outline of the funding assumptions made for selected
programs that might be used to reach the spending targets. Actual FY2003
discretionary appropriations for specific departments, agencies, and programs,
however, are determined only through the enactment of appropriations bills.
H.Con.Res. 353 (H.Rept. 107-376), was passed by the House on March 20,
2002 (roll call no. 79, 221-209). S.Con.Res. 100 (S.Rept. 107-141), was reported
by the Senate Budget Committee on March 22, 2002. For additional information, see
CRS Issue Brief IB10102, The Budget for Fiscal Year 2003; also see CRS Report
RL31443, The “Deeming Resolution”: A Budget Enforcement Tool.
Department of Homeland Security, P.L. 107-296 (H.R. 5005)
On June 6, 2002, the President called for the creation of a Department of
Homeland Security (DHS) to direct or coordinate federal activities related to
domestic defense against terrorism. The proposal would have combined 22 activities
from other federal agencies, including two from HHS: (1) emergency preparedness
and response concerning chemical, biological, radiological, and nuclear response
assets ($2.1 billion requested for FY2003); and (2) chemical, biological, radiological,
and nuclear countermeasures concerning civilian bio-defense research programs

($2.0 billion requested for FY2003). The President’s proposal was modified and
agreed to by Congress; the establishment of DHS became effective January 24, 2003
(60 days after enactment). Overall, 30 programs and other activities are to be
transferred from other agencies, including four from HHS. For these four HHS
activities, the President requested a total of $376 million for FY2003.
The President submitted the DHS proposal to Congress on June 18, 2002; it was
introduced as H.R. 5005 on June 24, 2002, by request, and referred to 12 Committees
plus the new House Select Committee on Homeland Security. The bill was amended
and reported, H.Rept. 107-609, Part I, by the House Select Committee on Homeland
Security July 24, 2002, and passed the House July 26, 2002, by a vote of 295 to 132
(roll call no. 367). A Senate bill to create a DHS, S. 2452, S.Rept. 107-175, was
reported by the Senate Committee Governmental Affairs on June 24, 2002, and a
revised version of S. 2452 was ordered reported July 25, 2002. H.R. 5005 was
amended and passed the Senate on November 19, 2002, by a vote of 90 to 9 (roll call
no. 249). The House agreed to the Senate amendment by unanimous consent on
November 22. H.R. 5005 — the Homeland Security Act of 2002 — was signed into
law by the President November 25, 2002, as P.L. 107-296.
Appropriations Action in the 107^th Congress, First Session
Most FY2002 appropriations for L-HHS-ED activities were provided through
P.L. 107-116, the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2002, which was signed
into law by the President on January 10, 2002 (H.R. 3061, conference report H.Rept.
107-342). For additional information, see CRS Report RL30103, Appropriations for
FY2002: Labor, Health and Human Services, and Education. Other legislation in
the first session related to L-HHS-ED appropriations included the following:
^!The FY2002 Anti-Terrorism Supplemental — Division B, the
Emergency Supplemental Act, 2002, of P.L. 107-117 (H.R. 3338),
the Department of Defense and Emergency Supplemental
Appropriations for Recovery from and Response to Terrorist Attacks
on the United States Act, 2002 — transferred and allocated $20
billion appropriated by P.L. 107-38. Of the $20 billion total, $2.9
billion was allocated for L-HHS-ED activities in FY2002. The
House amended and passed H.R. 3338 on November 28, 2001 (roll
call no. 458, 406-20). The Senate amended and passed H.R. 3338
on December 7, 2001 (by voice vote). The conference report,
H.Rept. 107-350, was passed by the House (roll call no. 510, 408-6)
and by the Senate (roll call no. 380, 94-2) on December 20, 2001.
H.R. 3338 was signed into law by the President on January 10, 2002.
For additional information, see CRS Report RL31173, Combating
Terrorism: Emergency Supplemental Appropriations —
Distribution of Funds to Departments and Agencies.
^!The FY2001 Anti-Terrorism Supplemental, P.L. 107-38 (H.R.
2888) was the 2001 Emergency Supplemental Appropriations Act
for Recovery from and Response to Terrorist Attacks on the United
States. It provided $40 billion of emergency funds to respond to the

attacks of September 11, 2001, assist its victims, and deal with
“other consequences” of the attack. Not less than 50% of these
funds must be spent on disaster recovery activities and assistance for
New York, Virginia, and Pennsylvania. Of the total $40 billion, $20
billion could not be obligated until enacted in a subsequent
emergency appropriations bill (see P.L. 107-117, above). The
Director of OMB was required to submit quarterly reports to the
Committees on Appropriations describing the use of supplemental
funds beginning no later than January 2, 2002. Of the $20 billion
that does not require additional legislation, $155 million was
allocated for L-HHS-ED programs. On September 14, 2001, (1) the
House passed H.R. 2888 (roll call no. 341, 422-0); (2) the Senate
passed the bill without amendment (by unanimous consent); and (3)
the bill was sent to the White House. The bill was signed into law
by the President on September 18, 2001.
^!The Supplemental Appropriations Act, 2001, P.L. 107-20 (H.R.
2216), provided $6.5 billion in new budget authority primarily for
the Department of Defense. For additional information, see CRS
Report RL30995, Supplemental Appropriations for FY2001:
Defense Readiness and Other Programs. L-HHS-ED provisions
included: a net decrease of $217.5 million for WIA training
programs at DOL; $300 million additional for the LIHEAP
Emergency Allocation; $161 million additional for Title I Part A
Grants to LEAs for the Education of the Disadvantaged; and smaller
increases for several L-HHS-ED programs, as well as amendments
and technical corrections to other statutes. The House amended and
passed H.R. 2216 (H.Rept. 107-102) on June 20, 2001 (roll call
no.176, 341-87). The Senate amended the House bill by inserting
the text of S. 1077 (S.Rept. 107-33), as amended, on July 10, 2001
(roll call no. 228, 92-1). The conference report on H.R. 2216,
H.Rept. 107-148, was passed by the House (roll call no. 256, 375-

30) and by the Senate (by unanimous consent) on July 20, 2001.

The bill was signed into law by the President on July 24, 2001.
^!Eight continuing resolutions (CRS Report RL30343, Continuing
Appropriations Acts: Brief Overview of Present Practices) provided
temporary funding for L-HHS-ED programs in FY2002 prior to the
enactment of P.L. 107-116 on January 10, 2002. The resolutions
were: P.L. 107-44, as amended by P.L. 107-48, P.L. 107-53, P.L.

107-58, P.L. 107-70, P.L. 107-79, P.L. 107-83, and P.L. 107-97.

^!H.Con.Res. 83, the FY2002 budget resolution, sets forth for the
Congress the annual levels for the federal budget through FY2011
(for additional information, see CRS Issue Brief IB10079, The
Budget for Fiscal Year 2002). H.Con.Res. 83 (H.Rept. 107-26) was
passed by the House March 28, 2001 (roll call no. 70, 222-205).
The resolution was amended and passed by the Senate April 6, 2001
(roll call no. 86, 65-35). The conference report, H.Rept. 107-60, was
agreed to by the House (roll call no. 104, 221-207) on May 9, and by
the Senate (roll call no. 98, 53-47) on May 10, 2001.

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 FY2002 budget authority for all federal programs was estimated to be
$2,085.0 billion, as shown in Table B.1. Of this amount, the departments and related
agencies funded by the L-HHS-ED bill accounted for $1,058.2 billion (50.8%).
Table B.1. Scope of the L-HHS-ED Bill, FY2002
(Estimated budget authority in billions of dollars)
^Estⁱ^m^a^t^e^d
^budg^et^{Percent of}
^B^{udget category}^au^th^ori^t^y^f^e^dera^{l budg}^et
^T^o^t^a^l^f^e^deral^bu^dg^et^au^t^h^ori^t^y^$2,085.0^100.0%
^D^e^part^m^eⁿ^t^of^L^a^bor^59.4²^.8%
^D^e^part^m^eⁿ^t^of^H^eal^t^h^an^{d H}^u^m^aⁿ^S^e^rvⁱ^ces^468.5^22.5%
^D^e^part^m^eⁿ^t^of^Edu^catⁱ^oⁿ^55.3²^.7%
^{Social Secu}^rity^A^d^mⁱⁿⁱ^s^t^ration^(On^-^bu^dg^et)^44.7²^.1%
^S^o^cⁱ^a^l^S^e^c^u^rⁱ^t^y^Ad^mⁱⁿⁱ^st^r^a^tⁱ^o^{n (}^O^ff-b^ud^ge^t⁾^428.8^20.6%
^Oth^e^{r related ag}^en^cies^1.5⁰^.1%
^L^-^H^H^S^-^E^D^ag^en^cy^t^o^t^a^l¹^,058.2^50.8%
^L^-^HHS-^E^{D bill, total cu}^rren^t^y^{ear f}^uⁿ^d^s^395.9^19.0%
^L^-^HHS-^E^{D bill, cu}^rren^{t y}^{ear m}^aⁿ^d^atory^f^uⁿ^d^s^272.5^13.1%
^L^-^HHS-^E^{D bill, cu}^rren^{t y}^{ear dis}^c^retion^a^ry^f^uⁿ^d^s^123.4⁵^.9%
^T^o^t^a^l^f^e^deral^di^s^c^retⁱ^oⁿ^a^ry^f^uⁿ^d^s^717.8^34.4%
^Source:^Budget^of^t^h^e^Uⁿⁱ^t^e^{d St}^at^es^G^o^ver^nm^ent^Hⁱ^s^t^orⁱ^c^al^T^abl^es^{, Fi}^s^c^al^Y^e^ar²⁰⁰³^{, T}^a^bl^es^{5.2 an}^d
^5.4;^an^{d t}^h^e^L^-^H^H^S^-^E^D^con^f^eren^{ce report}^H^.^R^e^pt^{. 107-}^{342, w}^hⁱ^c^h^provⁱ^d^es^det^aⁱ^l^s^f^o^{r t}^h^{e F}^Y²⁰⁰²
^L^-^H^H^S^-^E^D^am^ouⁿ^t^s^uⁿ^d^{er P.L}^.^107-^116.
^No^te:^{For com}^p^arability^{, th}^is^{table u}^s^es^{data f}^r^om^th^{e Febru}^a^ry²⁰⁰²^OMB^bu^dg^et^docu^m^en^ts^an^d
^th^{e F}^Y^{2002 con}^f^eren^{ce report of}^Decem^{ber 19, 2001; th}^{e data th}^eref^{ore do n}^o^{t in}^clu^d^e^c^h^aⁿ^g^e^sⁱⁿ
^s^c^orek^eepin^g^,^en^titlem^eⁿ^t^s^,^{or s}^u^pplem^en^{tal appr}^opriation^s^th^{at m}^a^y^{be m}^a^{de later du}^rin^g^FY2002.
The estimated FY2002 appropriations for L-HHS-ED was $395.9 billion in
current year funds — $123.4 billion in discretionary funds and $272.5 billion in
mandatory funds. The L-HHS-ED Appropriations Subcommittees generally have
effective control only over the discretionary funds, which constitute 5.9% of the
aggregate budget authority for all federal departments and agencies, and 11.7% of the
total budget authority for L-HHS-ED departments and agencies.² What accounts for
the remaining 88.3% ($934.8 billion) of L-HHS-ED funds?

² 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
$395.9 billion and the agency estimated total of $1,058.2 billion in FY2002. The
major programs in this group include Unemployment Compensation, Medicare,
Railroad Retirement, Temporary Assistance for Needy Families (TANF, the welfare
assistance program), Student Loans, State Children’s Health Insurance, and Social³
Security benefits.
Second, mandatory programs account for the difference between the
L-HHS-ED total of $395.9 billion and the subtotal of $123.4 billion for discretionary
funds in FY2002. Although annual appropriations are made for these programs —
these are sometimes called “appropriated entitlements” — in general the amounts
provided must be sufficient to cover program obligations and entitlements to
beneficiaries. For these programs, as well as the programs funded through trust funds
and permanent authorities, most changes in funding levels are made through
amendments to authorizing legislation rather than through annual appropriations
bills. Federal administrative costs for these programs typically are subject to annual
discretionary appropriations, however. For L-HHS-ED agencies, these programs
include Supplemental Security Income, Black Lung Disability payments, Foster Care
and Adoption, the Social Services Block Grant, and Vocational Rehabilitation, as
well as general (non-earmarked) fund support for Medicare and Medicaid.
Third, two HHS agencies are fully funded in other appropriations bills, and
four L-HHS-ED programs were partially funded in FY2002 by bills other than
L-HHS-ED. FY2002 appropriations from other, non-L-HHS-ED sources are shown
for each of these agencies and programs.
^!The HHS Food and Drug Administration is funded by the
Agriculture Appropriations ($1.4 billion in FY2002).
^!The HHS Indian Health Service is funded by the Interior
Appropriations ($2.8 billion).
^!The Corporation for National and Community Service (CNCS)
— which is funded under related agencies — is funded by L-HHS-
ED for programs authorized under the Domestic Volunteer Service
Act of 1973 ($328 million); it also received funds from the FY2002
Veterans Affairs and Housing and Urban Development (VA-HUD)
Appropriations for AmeriCorps and other programs authorized by
the National Community Service Act ($407 million).

³ The Social Security Administration (SSA) was separated from HHS and established as an
independent federal agency on March 31, 1995. Within the L-HHS-ED bill, however, the
SSA merely was transferred from HHS to “related agency” status. The operation of the
Social Security trust funds is considered off-budget. Of the estimated $1,058.2 billion total
for L-HHS-ED departments and agencies in FY2002, the SSA accounted for $473.5 billion,
or 44.7% of the total. As shown in Table B.1, the SSA amount represents $44.7 billion for
designated on-budget activities and $428.8 billion for off-budget activities.

^!The Institute of Museum and Library Services (IMLS) is funded
under L-HHS-ED for the Library Services and Technology Act
programs of the Office of Library Services ($198 million in
FY2002); it received additional funds under the FY2002 Interior
Appropriations for the Office of Museum Services ($27 million).
However, for FY2003, all IMLS activities will be funded in the
L-HHS-ED bill.
^!The Centers for Disease Control and Prevention (CDC) is
primarily funded under L-HHS-ED ($4.3 billion in FY2002); it also
received funds under the FY2002 VA-HUD Appropriations for the
Agency for Toxic Substances and Disease Registry (ATSDR) ($78
million).
^!The National Institutes of Health (NIH) is primarily funded under
L-HHS-ED ($23.5 billion in FY2002); it received additional funds
under FY2002 VA-HUD Appropriations for certain environmental
health sciences activities ($81 million).

Appendix C: Terrorism Funding in
L-HHS-ED Appropriations
Several L-HHS-ED programs include activities that relate to preparing for and
responding to terrorism. Many of these programs were in place prior to the terrorist
attacks of September 11, 2001, but significant funding increases have been enacted
since. Details related to L-HHS-ED activities follow the summary.
^!On November 25, 2002, the Homeland Security Act of 2002 was
signed into law by the President as P.L. 107-296, establishing the
Department of Homeland Security (DHS). Four programs from
HHS are to be transferred to the new department, for which $376
million is requested for FY2003.
^!On June 18, 2002, the President proposed the transfer of two current
clusters of HHS activities to his proposed Department of Homeland
Security (DHS): (1) civilian biodefense research programs, with an
FY2003 request of $2.0 billion; and (2) chemical, biological,
radiological, and nuclear response assets, with an FY2003 request of
$2.1 billion.
^!On March 20, 2002, the President proposed an FY2002 emergency
supplemental that would include an additional $750 million for
dislocated worker programs at the Department of Labor (DOL), and
an FY2002 rescission of $50 million from HHS programs.
^!On February 4, 2002, the President proposed for FY2003 $4.3
billion, mostly for Department of Health and Human Services (HHS)
programs, that prevent, or respond to, bioterrorism, including public
health and hospital preparedness.
^!For FY2002, regular appropriations provided $0.2 billion for anti-
bioterrorism activities and supplemental appropriations provided an
additional $2.8 billion for HHS, primarily for bioterrorism and
response programs, and another $220 million for DOL, primarily for
emergency worker compensation programs. A rescission of $75
million was also enacted that reduced previously enacted funding for
National Institutes of Health (NIH) facilities and L-HHS-ED
administrative expenses.
^!For FY2001, $291 million was enacted before the terrorist attacks of
September 11, 2001, primarily for HHS bioterrorism programs; after
the attacks, an additional $126 million was enacted for HHS
programs for health-related needs in disaster areas and $29 million
for DOL programs for temporary jobs to clean up afer the disaster.
Department of Homeland Security Programs. The Homeland Security
Act of 2002, P.L. 107-296, established DHS, effective January 24, 2003 (60 days
after enactment). Overall, 30 programs and other activities are to be transferred to
the new department from other agencies, including four from HHS, as follows:
^!Office of Emergency Preparedness ($14 million appropriated for
FY2002; $15 million requested for FY2003);

^!National Disaster Medical System ($10 million appropriated for
FY2002; $11 million requested for FY2003);
^!Metropolitan Medical Response System ($25 million appropriated
for FY2002; $50 million requested for FY2003); and
^!Strategic National [Pharmaceutical] Stockpile ($650 million
appropriated for FY2002, including a $593 million supplemental;
$300 million requested for FY2003).
Terrorism Funding, FY2003. The President’s FY2003 budget request
proposes an increase in terrorism funding for some L-HHS-ED programs, primarily
bioterrorism activities at HHS. Under the request, $4.3 billion of funding is
requested for bioterrorism programs, as follows:
^!$1,637 million for Centers for Disease Control and Prevention
(CDC) activities for state and local public health preparedness and
the National Pharmaceutical Stockpile (NPS), among other
activities, compared to FY2002 funding of $2,298 million – the
decrease is due primarily to a one-time buildup in FY2002 of
vaccines and other pharmaceuticals to combat bioterrorism threats;
^!$618 million for Health Resources and Services Administration
(HRSA) activities for hospital preparedness and infrastructure,
compared to FY2002 funding of $135 million;
^!$1,748 million for research and facilities security activities at the
National Institutes of Health (NIH), compared to FY2002 funding of
$274 million; and
^!$150 million for the Office of the Secretary for the Office of
Emergency Preparedness and the Office of Public Health
Preparedness, compared to FY2002 funding of $117 million.
In addition, the HHS Food and Drug Administration (FDA) would be funded at $159
million for food safety and vaccine approval, compared to $158 million in FY2002.
The FDA is regularly funded in the Agriculture Appropriations Act. For more
information on bioterrorism programs, see CRS Report RL31263, Public Health
Security and Bioterrorism Preparedness and Response Act (P.L. 107-188):
Provisions and Changes to Preexisting Law.
On September 3, 2002, the President submitted a supplemental FY2003
request for $1.0 billion that would fund some of the activities left unfunded by the
President’s failure to approve of the $5.1 billion contingent FY2002 emergency
appropriations that were enacted through P.L. 107-206 (discussed below). For
L-HHS-ED activities, the new request includes an additional $100 million for the
CDC for the International Mother and Child HIV Prevention Initiative, along with
an equal amount for the same initiative funded through the Agency for International
Development.
The Consolidated Appropriations Resolution, 2003 (P.L. 108-7, enacted
February 20, 2003) provides, among other provisions, regular FY2003 funding for
L-HHS-ED programs as well as the four activities being transferred to DHS.
However, the exact FY2003 amount for bioterrorism at NIH and CDC is not

specified in the bill, nor is the amount specified for some of the DHS activities. In
particular, $15 million is provided for the Office of Emergency Preparedness, $300
million for the Strategic National [Pharmaceutical] Stockpile (SNS), and $100
million for smallpox vaccine at the SNS — these activities are to be transferred to
DHS. Funding apparently is provided for two other DHS activities — the National
Disaster Medical System (NDMS) and the Metropolitan Medical Response System
(SMRS) — but exact amounts were not specified in the L-HHS-ED bill, as enacted.
Terrorism Funding, FY2002. Most FY2002 L-HHS-ED terrorism funding
originates with the $40 billion supplemental appropriations enacted by P.L. 107-38,
the 2001 Emergency Supplemental Appropriations Act for Recovery from and
Response to Terrorist Attacks on the United States. Of this $40 billion, the second
$20 billion could not be obligated until its allocation was specified in another
appropriations act. The required specification was enacted through Division B of
P.L. 107-117, the Department of Defense and Emergency Supplemental
Appropriations for Recovery from and Response to Terrorist Attacks on the United
States Act, 2002. Of the $20 billion requiring another appropriations act, P.L. 107-

117 (H.R. 3338, H.Rept. 107-350) designated $2.9 billion for L-HHS-ED activities.

An estimated additional $315 million was provided through the regular FY2002 L-
HHS-ED Appropriations which were enacted by P.L. 107-116.
Note: Although enacted as FY2001 appropriations under P.L. 107-38, the
second $20 billion could not be obligated under P.L. 107-117 before FY2002, at the
earliest, and most agencies appear to have counted these funds as if they were
FY2002 appropriations.
Activities at DOL include $220.1 million from the P.L. 107-117 Emergency
Supplemental, as follows:
^!$32.5 million for Training and Employment Services for an
Emergency Employment Clearinghouse for New York City;
^!$4.1 million for emergency expenses under the State Unemployment
Insurance and Employment Service Operations (SUI/ESO) program;
^!$175.0 million for emergency expenses for Workers Compensation
Programs;
^!$1.6 million for emergency expenses under the Pension and Welfare
Benefits Administration (PWBA);
^!$1.0 million for emergency expenses at Occupational Safety and
Health Administration (OSHA); and
^!$5.9 million for emergency expenses under DOL Departmental
Management.
Activities at HHS include $2,666.8 million from the P.L. 107-117 Emergency
Supplemental, as follows:
^!$12.0 million for the Centers for Disease Control and Prevention
(CDC) for emergency services personnel and rescue and recovery
personnel;

^!$140.0 million for the Public Health and Social Services Emergency
Fund (PHSSEF) to support grants for health care related expenses
and lost revenues directly attributable to the public health emergency
resulting from September 11, 2001;
^!$2,504.3 million for the PHSSEF to support activities related to
countering potential biological, disease, and chemical threats to
civilian populations (these funds were subsequently allocated to
specific HHS accounts); and
^!$10.5 million for emergency expenses at the National Institute of
Environmental Health Sciences at NIH.
Other L-HHS-ED activities funded by P.L. 107-117 include $10.0 million for
Project SERV (School Emergency Response to Violence) program at the Department
of Education (ED); $0.2 million for emergency expenses at the National Labor
Relations Board (NLRB); and $7.5 million for emergency expenses at the Social
Security Administration (SSA).
Further FY2002 Emergency Funding. On March 20, 2002, the President
proposed an FY2002 supplemental appropriation of $27.1 billion for terrorism,
defense, homeland security, and economic revitalization. Of this amount, $750
million would have been for dislocated worker programs, mostly under Training and
Employment Services programs at DOL. The proposal would have rescinded $20
million for the Community Access Program to provide health care for the uninsured
at the HHS Health Resources and Services Administration (HRSA) and $30 million
for NIH construction projects that are not yet underway. In the President’s FY2003
budget, an FY2002 supplemental of $1.3 billion was requested for Pell Grants, with
the additional funds to be offset by rescissions in FY2002 appropriations for other
L-HHS-ED programs. For the President’s request for Pell Grants, see Budget of the
United States Government Appendix, Fiscal Year 2003, pp. 1195-1197; for program
information, see the Pell Grants section of this report (page 32).
On May 24, 2002, the House passed H.R. 4775, the 2002 Supplemental
Appropriations Act for Further Recovery From and Response To Terrorist Attacks
on the United States. With a $28.8 billion total, the bill would provide $300 million
for job training programs under the Workforce Investment Act of 1998 (WIA) at⁴
DOL. At HHS, $1 million would be provided for the CDC for Disease Control,
Research, and Training, and $0.5 million for the Domestic Violence Hotline; a
rescission of $30 million would be made for NIH Buildings and Facilities. At ED,
an additional $1.0 billion would be provided for Pell Grants.
On June 7, 2002, the Senate amended and passed its version of H.R. 4775, the
2002 Supplemental Appropriations Act for Further Recovery From and Response To
Terrorist Attacks on the United States. With a $32.6 billion total, the Senate version
of the bill would provide $400 million for WIA job training programs at DOL. At
HHS, $315 million would be provided for the CDC for Disease Control, Research,

⁴ H.R. 4775 amounts for the House bill, the Senate amendment, and the conference
agreement are based on the July 24, 2002 unofficial staff table of the House Appropriations
Committee.

and Training. A rescission of $30 million would be made for NIH Buildings and
Facilities; however, an additional $72 million would be provided for emergency
expenses for counter terrorism facilities at NIH. An additional $90 million would be
provided for the PHSSEF. At ED, an additional $1.0 billion would be provided for
Pell Grants. The Senate version of the bill would reduce by $45 million FY2002
L-HHS-ED administrative expenses.
The H.R. 4775 conference report, H.Rept. 107-593, the 2002 Supplemental
Appropriations Act for Further Recovery From and Response To Terrorist Attacks
on the United States, was passed by the House on July 23, and the Senate on July 24,
2002. Of the $30.0 billion total ($28.9 billion discretionary), the bill would provide
$90.0 million for the PHSSEF, $1.0 million for the CDC, $0.5 million for the
Domestic Violence Hotline, and $1.0 billion for Pell Grants. In addition, the bill
would rescind $30 million for NIH Buildings and Facilities and $45 million for
L-HHS-ED administrative expenses. The conference agreement included no funds
for WIA job training or dislocated worker programs. H.R. 4775 was signed into law
by the President on August 2, 2002, as P.L. 107-206.
Of the funding provided by P.L. 107-206, $5.1 billion was designated as
contingent emergency appropriations, available only if subsequently requested by the
President. On August 13, 2002, the President announced the decision that these
funds would not be requested, thereby reducing the total available from P.L. 107-206
to $24.9 billion. This reduction includes funds for L-HHS-ED programs — the
supplemental amounts of $90.0 million for the PHSSEF, $1.0 million for the CDC,
and $0.5 million for the Domestic Violence Hotline will not be available as a
consequence of the President’s decision. For additional information on P.L. 107-206,
see CRS Report RL31406, Supplemental Appropriations for FY2002: Combating
Terrorism and Other Issues.
Terrorism Funding, FY2001. Enacted prior to the September 11, 2001
terrorist attacks on the United States, regular FY2001 L-HHS-ED Appropriations for
programs to prepare for or respond to terrorism totaled $291 million for three
programs at the Department of Health and Human Services (HHS). The OMB
summarized this information in its August 2001 report, Annual Report to Congress
on Combating Terrorism, available at:
[ http://www.whitehouse.gov/omb/legi slative/nsd_annual_report2001.pdf] .
^!The Centers for Disease Control and Prevention (CDC) received
$181 million for the Rapid Response and Advanced Technology
Laboratory, which was established specifically for bioterrorism-
related activities; the Laboratory Response Network, which provides
containment and diagnostic capabilities for public health
laboratories; and the National Pharmaceutical Stockpile, which was
developed to ensure the availability of critical medical supplies and
equipment;
^!The National Institutes of Health (NIH) received $50 million for
conducting basic and applied research on likely bioterrorism
chemical and biological agents; and

^!The HHS Office of the Secretary, Office of Emergency Preparedness
(OEP), received $60 million for managing the Metropolitan Medical
Response System, which provides funds and technical assistance to
local areas for coordinating emergency services, and the National
Disaster Medical System, which, in partnership with other federal
agencies, provides emergency medical care for mass casualties and
other disasters.
Supplemental FY2001 Funding. On September 18, 2001, the President
signed into law P.L. 107-38, the 2001 Emergency Supplemental Appropriations Act
for Recovery from and Response to Terrorist Attacks on the United States. The Act
provided $40 billion of FY2001 funds to respond to the terrorist attacks of September
11, 2001. Of the total $40 billion, $10 billion was available for obligation by the
President immediately, $10 billion was available for obligation following a 15-day
notification of the Congress, and $20 billion would be available for obligation only
after the allocations were enacted in another emergency appropriations act. As noted
previously, the second $20 billion is sometimes counted by agencies as FY2002
appropriations.
Of the $20 billion provided by P.L. 107-38 that did not need additional
legislation, $155 million was distributed for L-HHS-ED programs, as follows:
^!$126 million for HHS activities for health-related needs in areas
affected by the disaster; and
^!$29 million for Department of Labor (DOL) activities, mostly for
temporary jobs to assist the cleanup and restoration efforts in New
York City.
For more information on terrorism, see CRS Report RL31173, Terrorism
Funding: Emergency Supplemental Appropriations — Distribution of Funds to
Departments and Agencies.