On March 9, 2024, President Biden signed the Consolidated Appropriations Act, 2024 into law, which includes $459 billion in FY2024 discretionary government funding. On March 23, 2024, President Biden signed the Further Consolidated Appropriations Act, 2024 into law, which includes $1.2 trillion in FY2024 discretionary government funding.
Congress overcame many obstacles and policy riders to pass the $1.6 trillion discretionary FY2024 budget, averting a government shutdown and funding the federal government through September 30, 2024.
While the federal government saw a 2.4% decrease in overall discretionary funding compared to FY2023, in today’s contentious political environment, this marginal decrease is considered a success for many entities reliant on the yearly funding process. Overall, most non-defense funding is about even with current levels at $773 billion.
Agencies such as the Department of Education, National Endowment for the Humanities, National Endowment for the Arts, National Institutes of Health, and Health Resources and Services and Administration saw marginal decreases or level funding. This is a major win considering Congress passed the budget six months into the current fiscal year 2024.
How Will This Affect Funding Opportunities for Colleges and Universities?
While many interest groups were advocating for higher discretionary spending and may be disappointed by the flat line and marginal cuts, there is good news for institutions of higher education interested in securing federal grant funding through the various federal agencies.
1. Expanded Support for STEM Education
With a focus on Science, Technology, Engineering, and Mathematics (STEM) education, the National Science Foundation’s budget emphasizes grant opportunities that provide support to equip students with skills relevant to the rapidly evolving job market.
Institutions can leverage this support to strengthen their STEM programs and prepare graduates to join the workforce in high-demand fields.
2. Investment in Healthcare:
The FY2024 budget includes modest increases to telehealth programs, rural health and select health care workforce programs. Despite a 5.9% overall budget decrease from FY2023, most Health Resources and Services Administration (HRSA) programs remain level funded.
Notably, the HRSA Nurse Education, Practice, Quality and Retention (NEPQR) program saw an increase of $5 million from FY23.
3. Increased Support for Minority-Serving Institutions (MSIs):
Funding was included to support minority serving institutions. Of note, the Department of Education (ED) received $908 million to support MSIs and Historically Black Colleges and Universities (HBCUs), an $8 million increase over FY2023 enacted levels.
Of the approximately $4.5 million increase for HBCUs, $3 million is reserved for community colleges. Additionally, two programs from the Department of Education which are reserved for Hispanic-Serving Institutions (HSIs) received modest increases during a time many other programs saw decreased funding.
Congressionally Directed Spending Project Funding for Colleges and Universities
Additionally, Congress continued to support Congressionally Directed Spending projects, or Earmarks, in the FY2024 enacted budget. Congressionally Directed Spending projects provide transformative funding for institutions of higher education for technology, equipment, research, academic programming, and economic development initiatives.
Congress appropriated $1.3 billion to colleges and universities through earmarks submitted by their Members of Congress. In total, 483 individual institutions of higher education received funding for one or more earmark projects, with Congress funding a total of 707 projects for colleges and universities. The project funding amounts range from $20,000 to $36 million, with a median project funding amount of $1 million.
To read more about FY2024 earmarks for institutions of higher education, check out Inside Higher Ed’s recent article, “Congress Send $1.3 Billion to Colleges in Federal Earmarks.”
Implications and Funding Opportunities for Institutions of Higher Education
As institutions navigate the FY2024 federal budget
landscape, understanding the implications and priorities outlined by key
agencies such as the NSF, Department of ED, and HRSA is essential for strategic
planning and grant seeking endeavors. By leveraging available funding, IHEs can
continue to secure funding to support students & institutional priorities.
For more information on how to position your institution to secure available funding opportunities, Click Here to schedule an introductory consultation with our team.
About McAllister & Quinn: McAllister & Quinn is a premier federal grant consulting and government relations firm. Based in Washington, DC, McAllister & Quinn’s unique approach has helped clients secure over $15 billion in federal grants.