Federal Managers Association
- FMA STATEMENT ON HOUSE PASSAGE OF DEBT CEILING COMPROMISE - May 31, 2023
Alexandria, VA – President Biden and congressional leaders negotiated a debt ceiling solution, resulting in the Fiscal Responsibility Act (H.R. 3746). The House of Representatives passed the bill by a vote of 314-117 on May 31 and the Senate is expected to follow suit. The bill suspends the debt ceiling and prevents a catastrophic default. The compromise also caps funding for all agencies other than the Department of Defense and the Department of Veterans Affairs, claws back a significant piece of IRS funding, and institutes other spending caps, among other provisions. Federal Managers Association (FMA) National President Craig Carter made the following comments on the compromise bill:
"As I said earlier this month, FMA knows hitting the debt ceiling and the resulting default would be disastrous for the country and the world. We are relieved the Biden Administration and congressional leaders hammered out a compromise bill to prevent that default, and support this necessary action.
“The bill is certainly not a perfect solution, particularly the constraints it will place on feds going forward. We are very concerned about capping funding for all agencies except the Department of Defense and Veterans Affairs for Fiscal Year 2024 and the limits on future spending levels and what that means for staffing, compensation, and the operations of the federal workforce. This will exacerbate ongoing problems of recruitment and retention for federal managers and impact the services provided to the American people. We are also disappointed with the claw back of nearly $20 billion from the $80 billion of funding for the IRS. Having said that, this compromise deal prevents an unprecedented default without the even-more drastic cuts proposed earlier this month.
“FMA commends Congress and the Biden Administration for coming together to reach a compromise for the good of the country.”