HR 7463: Extension of Continuing Appropriations and Other Matters Act, 2024

HR 7463 in plain English: This law extends temporary government funding to prevent a federal shutdown, pushing deadlines to March 8 or March 22, 2024, depending on the agency. It also changes how student financial aid eligibility is calculated under FAFSA and provides additional funding for Federal Pell Grants totaling billions of dollars over multiple years.

Stated purpose

To temporarily continue funding federal agencies at existing levels and prevent a government shutdown, while also adjusting how student financial aid eligibility is calculated and providing additional funding for Federal Pell Grants.

Key points

• Extends federal agency funding through March 8, 2024, for four specific agency groups, and through March 22, 2024, for most other agencies.
• Most programs are funded at FY2023 spending levels during the extension period.
• Adds $1.17 billion for Pell Grants in FY2024, $3.17 billion in FY2025, $2.17 billion in FY2026, and $1.236 billion annually starting FY2027.
• Changes the FAFSA student aid index calculation so a dependent student's available income cannot be less than -$1,500 for 2024-2025 or less than $0 from 2025-2026 onward.

Arguments supporters make

• Passing a continuing resolution is the responsible way to keep the government open and avoid disruptions to public services, federal workers, and military readiness while full budget negotiations continue.
• Fixing the student aid index formula corrects a technical problem that was causing some students to receive incorrect aid calculations, making the system fairer for families filling out the FAFSA.
• More Pell Grant funding helps low- and middle-income students afford college without taking on additional debt, broadening access to higher education.

Arguments opponents make

• Relying on short-term continuing resolutions instead of passing a full budget keeps agencies locked into prior-year spending levels and prevents them from adjusting programs to current needs, creating ongoing uncertainty.
• Exempting the Pell Grant spending increase from pay-as-you-go rules adds billions to the deficit without any offsetting savings or new revenue, raising concerns about fiscal responsibility.
• The student aid index floor change could reduce aid for some students whose calculated index was previously below -$1,500, meaning not all affected students benefit equally from the adjustment.

Tradeoffs

Keeping the government funded through a short-term CR avoids an immediate shutdown but delays the harder work of passing a complete budget, trading long-term stability for short-term relief. The Pell Grant funding boost expands college access but adds to the federal deficit by bypassing normal budget-balancing requirements.

Current status in Congress: Became law.

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