The Fiscal Responsibility Act proposes extending the debt ceiling until January1st, 2025. However, this extension could result in a substantial reduction in Research and Development(R&D) funding, particularly in the non-defense sector, with a potential $8 billion decrease and a subsequent1% increase in the following years.
FY 2024 debt ceiling for nondefense programs, excluding veterans' healthcare, is approximately 7 percent lower than the previous year. Without adjustments to current spending, it would surpass the limit, triggering automatic cuts to most nondefense discretionary programs. The Veterans Affairs Department is safeguarded from these cuts.
Total discretionary spending is capped at $1.59trillion for FY 2024, representing a decrease from the $1.73 trillion allocated in FY 2023.Additionally, post-FY 2024,spending levels are slated for only a 1% increase over the next five years. It's worth noting that all discretionary caps from FY 2025 onward can be waived.
Promoting Partnerships To Improve Veterans’ Health