FY24 Appropriations Recap and Outlook

With the end of the Fiscal Year quickly approaching on September 30, Congress is racing to finish its work on the FY24 appropriations bills before heading out on August recess next week.  

Both the House and Senate Appropriations Committees have completed their subcommittee and full committee markups of their respective State, Foreign Operations, and Related Programs (SFOPS) bills in recent weeks. Educational and cultural exchanges were funded at $700.95M (approx. 10% decrease) by the House bill and $779.5M (approx. 0.25% increase) by the Senate bill. See the chart below for more details and a comparison with the President’s budget request and current enacted level. 

Here are the key things you need to know: 

• We know from the details available that notable cuts in the House bill impact Professional and Cultural Exchanges, including the International Visitor Leadership Program. The bill also includes a slight decrease for Academic Programs, but outlines increases for Young Leaders Initiatives. 

• On the other hand, the Senate bill holds Professional and Cultural Exchanges steady, and provides increases to Exchanges Support and the American Spaces program. However, it also includes cuts to the Academic Programs topline.  

• The funding cuts in the House bill, while disappointing, are not unexpected given the change in majority, debt ceiling deal, and concessions made by Speaker McCarthy in his campaign for the role. We are heartened by the slight increase in the Senate bill, which is a win in this difficult climate.  

• There will be a challenging road ahead to find a compromise between these two bills. In the 11 legislative days after the upcoming August recess and before the end of the fiscal year, lawmakers must overcome not only the divide over funding in the bills, but also pressure from House Republicans for even more cuts and a desire to pass each of the twelve appropriations bills individually.  

These appropriations bills remind us of how important our collective advocacy was this cycle in avoiding severe cuts in this particularly tight funding environment. They also demonstrate the long journey to reach our funding goals and therefore, how we must keep up the pressure and not become complacent after the past number of years with steady increases.  

Resources: 

• House bill text (pg. 4 for ECE funding level), report (pg. 18 for detailed budget table), press release 

• Senate bill text (pg. 8 for ECE funding level), report (pg. 20 for detailed budget table), press release 

  FY23 Adjusted Enacted  FY24 Biden Administration Request  FY24 House Bill  FY24 Senate Bill  Total  777.5 M   783.7 M 700.95 M  779.5 M  Academic Programs  389,639  381,766  387,274  373,939  Fulbright Program  287,500  282,250  287,500  287,800  Madeleine K. Albright Young Women Leaders Program  1500  1,500    1,500  Global Academic Exchanges  63,981  62,702    63,981  Special Academic Exchanges  22,158  18,875  22,133  22,158  Benjamin Gilman International Scholarship Program  17,000  16,200  17,000  17,000  South Pacific Scholarships  1,000  1,000  1,000  1,000  Vietnam Education Foundation Act      2,500  2,500  Tibet Fund  675  700  675    Professional and Cultural Exchanges  227,500  222,515  185,759  227,500  International Visitor Program  105,000  102,627  100,151  105,000  Citizen Exchanges Program  115,000  113,388    115,000  Congress-Bundestag Exchange Program      4,125  4,125  Special Professional and Cultural Exchanges  7,000  6,500    7500  Ngwang Choephel Fellows  750  750  750  750  J. Christopher Stevens Virtual Exchange  6,000  5,000    6,000  Arctic Exchange Program  750  750  750  750  Special Initiatives    66,814  49,100  55,500  Young Leaders Initiatives  37,500  48,814  43,100  37,500  Countering State Disinformation and Pressure  12,000  12,000    12,000  Community Engagement Exchange Program  6,000  6,000    6,000  Pawel Adamowicz Exchange Program  1,000  1,000  1,000    Program and Performance  15,800  13,530    13,500  Exchanges Support  89,061  99,090    92,100  American Spaces  16,000  14,939    17,000 

Biden Administration’s FY24 Budget Request: Proposed Exchanges Funding Explained

The Fiscal Year 2024 (FY24) appropriations cycle is officially in full swing with the release of the Biden Administration’s proposed budget late last week. The President’s $6.8 trillion request, while unlikely to be enacted in the current divided Congress, presents a starting point for the negotiations to come.

The FY24 proposed budget includes $70.6 billion (an $8.9 billion increase compared to FY23) in discretionary non-emergency funding for the International Affairs Budget. As a portion of this larger international affairs funding, State Department Educational and Cultural Exchange (ECE) programs are budgeted at $783.7 million, a $6.2 million (0.8%) increase from the current FY23 enacted level of $777.5 million.

In reviewing the State Department’s Congressional Budget Justification (CBJ, pg. 57-61), there are three notable takeaways:

1. The proposed ECE budget has an overall increase, but the majority of flagship ECA programs include cuts.
   While this year’s topline request is approximately $6 million more than current funding, a closer look shows that it includes cuts across the board to key programs like Fulbright (-$2.25M), Gilman (-$800k), and IVLP (-$2.73M). See specific line items in the table below.

2. Majority of increased funding goes toward the Young Leaders Initiatives and Exchanges Support.
   The main areas of increased investment include the Young African Leader’s Initiative (+$5.1M), Young South-East Asian Leaders Initiative (+$6.2M), and Exchanges Support (+$10M). The CBJ notes that the additional funding for Exchanges Support is devoted to “the FY 2024 projected American Pay Raise, one new position to support YSEALI, IT modernization, and various working capital funds and other IT support charges.”

3. The language around programming focuses on competing with China and Russia, which is in line with the proposals for the International Affairs Budget as a whole.
   The justifications for both the Academic Programs and Professional and Cultural Exchanges requests highlight that funding in these areas is needed to help the U.S. compete with China and Russia in attracting international students, as well as presenting alternatives to their influence vis-à-vis sharing American values around the world. This emphasis fits into the larger picture of the Administration using the resources proposed in the International Affairs Budget as a means to counter Chinese global influence and support Eastern Europe against Russian authoritarianism, which is well outlined in USGLC’s budget analysis.

While an increased topline request for exchanges is positive, the proposed cuts to ECA’s flagship programs referenced above would hinder the ability of exchange programs to meet the goals set by the Administration.

As a result, the Administration's request reinforces the importance of our continued advocacy efforts during the FY24 cycle. In our advocacy activities over the coming weeks and months, we will continue to promote our community’s request for ECE funding at $855 million.