While the nation awaits Congressional action on sequestration, appropriators are proactively addressing the expiration of the continuing resolution (CR) on March 27. The federal government is currently being funded by a CR that has been providing FY12 levels of funding since the beginning of FY13. House Committee on Appropriations Chair Harold Rogers (R-KY) has said that he expects to introduce legislation soon that will provide final funding for all federal departments. The House is expected to advance the two FY13 appropriations bills on which the House and Senate Committees on Appropriations have reached agreement, the Department of Defense bill and the Military Construction-Veterans Affairs bill. The other 10 appropriations bills, including the Transportation, Housing and Urban Development, and Related Agencies bill and the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies bill, would be funded through a CR attached to the other legislation. The CR is expected to fund the agencies at FY12 funding levels through the remainder of FY13. There are very few anomalies expected in the CR. An “anomaly,” in the context of a CR, is any special provision that is included to address the particular needs of a program. Because CRs typically continue the previous fiscal year’s funding into the current fiscal year, programs in CRs are level-funded, which can pose a challenge for many programs. The committee is expected to consider increasing funding for the public housing operating fund, which was underfunded in FY12, with one-time reserve contributions from public housing agencies (PHAs) filling the gap. These reserves are now exhausted for this purpose and PHAs would be severely underfunded in FY13 if the FY12 funding levels continue. The President’s FY14 budget is still under development, but the House and Senate have already started their work on the FY14 budget (see Memo, 2/15) with several hearings scheduled. After recess the Senate will hold its third budget hearing, “The Impacts of Federal Investments,” on February 26 at 10:30am in room 608 of the Dirksen Senate office building. The House Committee on Financial Services will hold its annual “Budget Views and Estimates” hearing on February 26 at 10am in room 2128 of the Rayburn House office building. The Senate Committee on Finance is scheduled to hold a hearing on February 26, “The Ten Year Budget and Economic Outlook.” Douglas Elmendorf, director of the Congressional Budget Office, Robert Greenstein, President of the Center on Budget and Policy Priorities, and Douglas Holtz-Eakin, President of The American Action Forum, will testify. The hearing will be held in room 215 of the Senate Dirksen office building.