After weeks of negotiations between Congressional Leadership and the White House, legislation to prevent a government default was signed into law by President Biden on June 4. This debt limit bill, the Fiscal Responsibility Act of 2023 (H.R.3746), establishes budget caps on discretionary spending for Fiscal Year (FY) 24 and FY 25, claws back funding from COVID-19 relief bills and the Inflation Reduction Act (IRA), and suspends the debt limit until January 1, 2025, among many other provisions.

For FY 24, the total spending is set to $1.59 trillion with $886 billion for Defense spending and $703 billion for the non-discretionary spending programs. FY 25 spending levels will be capped at a 1 percent increase above FY 24 levels, $895 billion for defense and $710 billion for nondefense. The bill rescinds $28 billion from unobligated funds from prior COVID-19 relief bills and $21.4 billion from the IRA. Programs such as the Emergency Rental Assistance, Emergency Housing Vouchers, Indian Health Service, and State and Local Recovery Funds were protected from the bill according to a document shared by the Administration. HUD’s Green and Resilient Retrofit program and the Department of Energy’s rebate programs also remained untouched, as was the Environmental Protection Agency’s Greenhouse Gas Reduction Fund.