House Appropriations Subcommittee Releases FY 2023 Financial Services and General Government Funding Bill
SUMMARY: The House Appropriations Subcommittee on Financial Services and General Government has released its FY 2023 spending bill which provides increased agency funding for several NTEU agencies and follows the President’s proposal for a 4.6 percent pay increase for federal employees in 2023.
The House Appropriations Subcommittee on Financial Services and General Government (FSGG), which determines funding for the IRS, the Treasury Department, SEC, and other NTEU-represented agencies and has jurisdiction over government-wide employee issues, has released its FY 2023 bill. The Subcommittee is scheduled to vote to approve the bill tomorrow and the House Appropriations Committee plans to consider the bill next week.
As you know, the President has proposed a 4.6 percent pay increase for federal employees for 2023, but his budget request was silent as to whether any amount is allocated for locality pay. According to the Federal Employee Pay Comparability Act of 1990, federal employees should receive a 4.1 percent pay increase in 2023 before locality pay is added. The Subcommittee bill is silent on the amount of the pay increase, thus deferring to the President’s proposal of 4.6 percent. NTEU will continue to work with Congress and the Administration in support for the FAIR Act (H.R. 6398/S. 3518), which provides an average 5.1 percent increase consisting of a 4.1 percent across-the-board increase and an average 1.0 percent for locality pay.
The bill also continues the ban on funding new outsourcing activities under Office of Management and Budget (OMB) Circular A-76, which is important given recent renewed calls by some in Congress to outsource additional federal jobs.
With regard to specific agency funding, the bill would provide IRS with roughly $13.6 billion for FY 2023, an increase of more than $1 billion over the current level. This includes an additional $630 million to improve and expand taxpayer services, and $682 million to strengthen taxpayer compliance and help close the tax gap. The request also would also provide IRS with a much-needed increase in funding for business systems modernization (BSM) to continue upgrading its aging IT systems. The bill also continues language prohibiting the IRS from paying bonuses to employees or hiring former employees without considering conduct and compliance with Federal tax law. To help address the current backlog of tax returns and correspondence, the bill continues language providing IRS with direct hire authority for positions to process backlogged tax returns and return information.
The Bureau of Fiscal Service would also see an increase in funding for FY 2023 under the bill. The agency would be provided with more than $372 million, an increase of $16.5 million over the current FY 2022 level. This additional funding will support Fiscal Service’s central role in government-wide financial operations.
The bill would provide $2.2 billion for the NTEU represented Securities & Exchange Commission, an increase of $207 million, matching the President’s request. At Federal Communications Commission, the Subcommittee also provided the President’s request for a $8 million increase. NTEU believes these increases are needed to further the agency’s important missions.
Please be assured as Congress continues consideration of FY 2023 funding legislation, NTEU will continue to fight for a fair pay raise and adequate funding to ensure agencies have the staffing and resources needed to meet their missions. I will update you on further developments.
Anthony M. Reardon