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Congressional leaders and the White House reached a spending agreement for the rest of fiscal year 2011 on April 8 (H.R. 1473). Federal spending on discretionary programs covered by this final FY2011 continuing resolution would be reduced to $1.049 trillion, $37.5 billion below enacted FY2010 levels. The House Appropriations Committee subsequently released on April 12 both a summary of the overall agreement (Summary Final) and a list of program specific reductions (Program Cuts). Congress subsequently approved a compromise government funding plan April 14. President Obama is expected to sign the legislation on April 15.


EPA's budget was reduced by 16 percent to $8.7 billion. The $1.6 billion cut to EPA's spending includes a $997 million cut to the wastewater and drinking water state revolving funds infrastructure programs. The budget deal also includes a $191 million cut to regional water quality programs, including the President’s Great Lakes Restoration Initiative. These regional programs will now get almost exactly as much as President Obama requested in his FY2012 Budget for regional projects in the Great Lakes, Chesapeake Bay and Puget Sound


EPA had been operating under the FY 2010 enacted funding level of $10.3 billion minus $238 million that was cut from its budget by the earlier three-week continuing resolution that expired April 8. EPA's $8.7 billion budget under the final agreement is $300 million more than the agency requested from Congress for fiscal year 2012.


H.R. 1473 does not contain any of the H.R. 1 16 environmental policy riders aimed at curbing EPA's authority to regulate greenhouse gases, coarse particulates, air toxics in cement kilns, mountaintop mining, or water quality in the Chesapeake Bay and Florida waters.


According to the Congressional Budget Office, however, the budget compromise to cut about $38 billion would reduce federal spending by only $352 million this fiscal year. The analysts found that $13 – 18 Billon of the cuts involve money that existed only on paper and was unlikely to be tapped into the next decade.