HOUSE APPROPRIATORS RATIFY FY2007 LABOR-HHS-EDUCATION SPENDING BILL

June 15, 2006

On June 13, the House appropriations committee approved a $141.9 billion fiscal year 2007 spending bill for the Departments of Labor, HHS and Education.  Consistent with an agreement struck during last month's debate over the budget resolution, the bill approved by the panel is $4.1 billion above the President's budget request, but only $842 million (0.6%) more than the FY2006 level.  In fact, after deducting rescissions and other offsets, the operating program level supported by the bill is actually $698 million below the FY2006 level. 

(The House action came only days after House-Senate conferees completed their work on an emergency supplemental spending bill, where they agreed to "deem" $873 billion as the limit on all discretionary spending—the same as the President's budget request.  In so doing, lawmakers ignored the Specter-Harkin amendment, which would have freed up an additional $7 billion for health and education programs in the Senate.) 

Each of the three cabinet departments funded in the committee-passed bill receives slightly less than last year.  In addition, the committee-approved measure terminates funding for 56 programs, yielding savings of $1.66 billion, primarily in the Department of Education. 

Action on the bill, which was originally scheduled to be taken up by the full House on June 21, may be delayed indefinitely.  During consideration by the House appropriations committee, lawmakers voted to adopt an amendment by Rep. Steny Hoyer (D-Maryland), increasing the minimum wage by $2.10.  House leaders would prefer to avoid a contentious debate over the issue, so they may decide to postpone the bill's consideration until after the elections.  Following are highlights of the measure.

Department of Labor

  • The bill terminated five Labor Department programs, totaling $110.1 million, and rescinds $325 million from prior year unexpended balances in the Workforce Investment Act program, including funds for the adult, dislocated worker and youth formula grant programs.
  • The committee cut $12 million from senior employment programs, eliminating part-time minimum wage jobs for 3,000 seniors.
  • An increase of $32 million is provided for worker protection, including the Mine Safety Health Administration (+$1.2 million) and OSHA (+$13.6 million).

Department of HHS

  • The National Institutes of Health would be funded at a program level of $28.3 billion, the same as the President's budget request and the FY2006 level, and about 3.7 percent less in research inflation-adjusted terms.  To help support increases in centrally-funded NIH activities, most individual institutes are cut approximately 0.7 percent.
  • The committee provided $313 million for health professions and nurse training programs, restoring the $32 million geriatric training program that was eliminated in FY2006 and continuing training in primary care medicine and dentistry, scholarships for the disadvantaged and area health education centers.
  • Funding for the Health IT initiative was recommended at $98 million, or $37 million more than the FY2006 level but $18 million less than the President's request.

Department of Education

  • Overall, the committee bill includes $58.9 billion for the Department of Education, a cut of $5.6 billion below FY2006 and $1.8 billion more than the President's request.
  • Maximum Pell grants are increased $100 to $4,150, while Title I grants for the educationally disadvantaged are level-funded at $12.7 billion.
  • Reading programs ($2 billion) and Head Start ($6.8 billion) are level-funded.