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FMA Washington Report: July 7, 2023
Update on FY24 Appropriations and 2024 Pay Raise

The House Appropriations Financial Services and General Government Subcommittee advanced its Fiscal Year 2024 funding bill by voice vote on June 22. The measure, one of twelve annual appropriations bills that fund the federal government, is now cleared for consideration by the full committee. Notably for federal managers, the bill stayed silent on the subject of federal employee pay, effectively endorsing the 5.2 percent pay raise for 2024 as proposed by President Biden.

While there are several potential hurdles that could block the proposed raise, which would be the largest boost since 1980’s 9 percent, this is a positive development for the federal workforce writ large. The bill does include provisions aimed at telework, Internal Revenue Service (IRS) funding, the Office of Personnel Management (OPM), and more.

Specifically, the bill would rescind FMA-supported funding for the IRS included in 2022’s Inflation Reduction Act to provide additional resources for the beleaguered agency. OPM’s budget would be left at FY22 levels, a cut of nearly $50 million. The legislation would also require agencies to return telework policies to pre-Covid 19 pandemic levels.

The bill next heads to the full Appropriations Committee for consideration before it can go to the full House. The Senate will debate its own version before a measure can be presented to President Biden to be signed into law.

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