New House Appropriations Committee Chair Makes Important Changes to FY 2025 Earmark Process

At a Glance

• Under new House Appropriations Committee guidance, only state, local and tribal governments, along with public colleges and universities, are eligible for CPF funding under the THUD appropriations bill.
• Chairperson Tom Cole argued that CPF funding for certain LGBTQ+ projects under the EDI account led to a politicized process that has hampered passage of the THUD bill.
• Ranking Member Rosa DeLauro vowed to undo the change in the next congress if Democrats retake control of the House.

Following the long-delayed passage of Fiscal Year (FY) 2024 appropriations funding legislation, the House is moving forward by setting deadlines for FY 2025 programmatic, language and Community Project Funding (CPF) requests. With recently released full Appropriations Committee guidance by new Appropriations Chairperson Tom Cole (R-OK), the FY 2025 process and deadlines put pressure on members and staff to make definitive decisions on their submissions. These guidelines also make notable changes to CPF funding under the Transportation, Housing and Urban Development (THUD) appropriations bill, specifically removing nonprofits and private universities as eligible entities under the Economic Development Initiative (EDI) account. Under the new guidance, only state, local and tribal governments are eligible, along with public colleges and universities. Notably, many impacted stakeholders have voiced frustration about the exclusion of nonprofits and private universities.

Chairperson Cole, who took over the committee from retiring Rep. Kay Granger (R-TX), argued that CPF funding for certain LGBTQ+ projects under the EDI account led to a politicized process that has hampered passage of the THUD bill since earmarks were reintroduced during the FY 2022 appropriations process. Chairperson Cole, before assuming leadership of the full committee, was formerly the leader of the THUD subcommittee.

In a letter to lawmakers released last week, Chairperson Cole said “similar to previous reforms made in this Congress, this change aims to ensure projects are consistent with the community development goals of the federal program.” In response, Ranking Member Rosa DeLauro (D-CT) blasted the last-minute change in recipient eligibility by saying that the change will impact more than just the projects that focus on LGBTQ+ issues, and will include YMCAs and Boys & Girls Clubs, as well as private universities and community groups serving seniors and veterans. Ranking Member DeLauro vowed to undo the change in the next congress if Democrats retake control of the House.

These changes further divide guidance and approach between House and Senate Appropriators. Last year, Chairperson Granger set guidance that prohibited CPF funding for projects under the Labor-HHS-Education bill. Chairperson Cole stated an interest in bringing back those earmarks, but due to the condensed FY 2025 appropriations timeline that it was unlikely to happen this year. The Senate currently allows (and allowed last year) both earmarks for the Labor-HHS Education bill and for nonprofits to receive funding under the EDI account of the THUD bill.

With the November elections quickly approaching, it is unlikely that FY 2025 appropriations will be enacted before the end of the fiscal year (the end of September). Like the FY 2021 appropriations process, during the 2020 election, we could see some movement during the lame duck session.

The full guidance for FY 2025 can be found on the Appropriations Committee website. Programmatic and report language requests have a deadline of May 1, and CPF projects have a deadline of May 3. Offices are then required to post their CPF requests online by May 17, in keeping with the program’s transparency rules.