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Updates on FY25 Budget

Federal Legislative Updates
Ohio Legislative Updates
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Updates on FY25 Budget

Recent developments in Washington around the FY25 budget and Trump Administration actions

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CONGRESS Updates

OVERVIEW

We just missed a federal government shutdown on Friday, March 14 during the final hours of the expiring Continuing Resolution (CR). Instead Congress passed and President Trump signed a full-year funding CR for FY 2025 (HR 1968) that includes cuts and authorities usually not included in a CR.

FUNDING LEVELS

The CR set overall funding levels for FY 2025 at $1.6 trillion, with $893 billion for defense and $708 billion for non-defense spending. It provided a $6 billion increase for the Department of Defense compared to FY 2024 levels and $9.98 billion for immigration enforcement, while reducing non-defense spending by $13 billion overall—mainly due to the removal of earmarks and some other cuts.

It includes small shifts in funding:

  • Energy and Water Development and Related Agencies (-$0.1 billion)
  • Legislative Branch (-$0.1 billion)
  • Military Construction
  • Department of Veterans Affairs and Related Agencies (-$7.3 billion)
  • Transportation, Housing, Urban Development and Related Agencies (-$3.1 billion)

NOTABLE CHANGES

The bill:

  • Omits $15.9 billion in House Community Project Funding and Senate Congressionally Directed Spending projects.
  • Rescinds $20.2 billion in IRS funding from the Inflation Reduction Act.
  • Gives the Department of Defense (DoD) greater flexibility to initiate new projects than is typically allowed under continuing resolutions.
  • Reduces funding for the National Institutes of Health’s (NIH) Innovation Account from $407 million to $127 million—a 69% cut.
  • Reduces the Congressionally Directed Medical Research Program (CDMRP) funding from $1.509 billion to $650 million—a 57% cut.
  • Adds $7.6 billion for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)—over $500 million increase over FY 2024.
  • Extends Medicare telehealth flexibilities through the end of the fiscal year, including eligibility for additional providers, continued use by Federally Qualified Health Centers (FQHCs), allowances for audio-only telehealth, and telehealth for hospice face-to-face encounters.

Overall funding for scientific research and development during the current fiscal year, which ends on September 30, is on track to be ~$193 billion, representing a 3.5% cut compared to FY2024 enacted levels.

Administration Updates

President Trump—On March 14, President Trump signed an executive order to eliminate seven federal agencies, including the Minority Business Development Agency and the Community Development Financial Institutions Fund. Trump also rescinded 18 executive orders signed by President Biden, including the biotechnology September 2022 order. He has signed nearly 100 executive orders at this point. See the full list here.

Courts—Judges in California and Maryland found the Trump administration acted unlawfully when it directed mass layoffs of probationary workers – workers who were either recently hired or promoted to new positions. The judges ordered the probationary employees to be reinstated until further proceedings. In addition, Supreme Court Justice John Roberts rebuked Trump's call for the impeachment of a federal judge who has tried to stop the administration from deporting hundreds of alleged Venezuelan gang members via the Alien Enemies Act, a 1798 law last used during World War II.