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L aCongressional
            'Research Service-






  The FRA's Discretionary Spending Caps

  Under a CR: FAQs



  Updated November 8, 2023

  What   is the FRA   and   how   does  it limit discretionary spending?

  The Fiscal Responsibility Act (FRA, P.L. 118-5), enacted in June 2023, temporarily suspended the debt
  limit and reinstituted enforceable discretionary spending limits for FY2024 and FY2025 for both defense
  and nondefense discretionary spending. The defense limits represent an increase in both fiscal years from
  the FY2023 enacted level, while the nondefense limits represent a decrease in both fiscal years from the
  FY2023 enacted level, as shown in Table 1.

        Table I.FRA  Discretionary Limits on Budget Authority for FY2024  and FY2025
                                   In Billions of Nominal Dollars
     Fiscal Year  Defense Discretionary Nondefense Discretionary            Total
   FY2023 (enacted)      $858.36                 $743.89                    $1,602.25
   FY2024                 $886.35                $703.65                    $1,590.00
   FY2025                 $895.21                $710.69                    $1,605.90
     Source: P.L. 118-5.
     Note: This table shows only base spending, which excludes funding that would be exempt from budgetary enforcement.
  If discretionary appropriations are enacted that exceed the limit in either category, a sequester is triggered
  making across-the-board reductions within the applicable category (defense and/or nondefense). In most
  cases, the President would issue such a sequester order within 15 calendar days after the end of a session
  of Congress. Certain types of spending, such as spending designated as being for emergency purposes, are
  effectively exempt from the limits.

  What   does  the  FRA   require   if a CR  is in effect?

  The FRA includes a provision that has been described as incentivizing Congress to enact regular full-year
  appropriations legislation instead of relying on continuing resolutions (CRs). This provision requires that

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