The White House Office of Management and Budget (OMB) approved NOAA’s fiscal year (FY) 2025 spend plan, and the outcome represents a significant reshaping of the agency’s resources. According to Bloomberg Government, the plan claws back $239 million from NOAA, with the steepest reductions hitting the National Ocean Service and Oceanic and Atmospheric Research. The National Marine Fisheries Service and the satellite division also take hits while the National Weather Service and the Office of Marine and Aviation Operations see modest increases.
If formalized and sent to Congress, this move would be unprecedented. Spend plans have not historically been used to reduce overall funding for an agency, as doing so may violate the Impoundment Control Act.
Recently, Friends of NOAA invited ESP Advisors CEO Emily Patrolia to sit down with former NOAA Budget Director John Potts to unpack the reported FY25 spend plan and the budget mechanics behind it. John spent more than three decades in NOAA’s budget and finance offices, including as CFO for both the Office of Marine and Aviation Operations and the National Weather Service, before leading the entire agency’s $6 billion plus budget portfolio. The full recording can be viewed here.
Below is our summary of that discussion, plus additional analysis.
What is a spend plan?
A spend plan is essentially an agency’s execution blueprint for the funding it receives from Congress. While Congress appropriates funds with detailed instructions, agencies have limited discretion to shift money across budget lines, provided they:
- Do not spend more or less than the total amount appropriated
- Follow the spirit of congressional and presidential intent
- Explain any necessary changes in a spend plan submitted to Congress within 45 days of appropriations being enacted
These adjustments are meant to address real-world developments, such as lower-than-expected costs or delayed grant approvals, not to serve as a tool for sweeping policy changes.
Is this normal?
No. Under a Continuing Resolution (CR), agencies are expected to operate close to prior-year funding levels, making only modest adjustments. The spend plan is designed to reconcile operational realities with the budget baseline, not to slash topline funding.
By clawing back funds and delaying its submission to Congress (NOAA’s FY25 plan was due in April and has still not been sent as of this writing), OMB is breaking with long-standing norms. While Congress’ main recourse is through future appropriations, ignoring its role in this process risks escalating tensions and creating greater uncertainty for agencies like NOAA.
John, reflecting on his 34 years at NOAA, emphasized: “I’ve never seen a spend plan this late.” He added that while small internal shifts are routine, he has never seen a spend plan that reduces the overall funding level provided by Congress.
Setting the stage for FY26?
OMB’s FY25 plan doesn’t just reallocate resources, it depletes unobligated FY25 funds, squeezing NOAA this year and shaping the starting point for FY26. This strategy could make it easier for the administration to argue for lower annual appropriations next year.
However, John stressed that even if the FY25 reductions are implemented, they do not automatically reset the baseline. Congress typically begins from prior enacted appropriations, not agency spend plans. Attempts to “re-baseline” could be challenged in court under the Impoundment Control Act, which prohibits the executive branch from withholding or canceling funds without congressional approval.
The practical implications are significant, including:
- Roughly $60 million cut from the capital budget during a critical satellite transition from GOES-R to GEOXO
- Major reductions in climate and weather research, threatening the research-to-operations pipeline
- Delayed or canceled grants and contracts for coastal resilience and habitat restoration
Because many of these are multi-year programs, the cuts will constrain NOAA’s operations well into FY26. Advocates warn these reductions could undermine NOAA’s core missions, from wildfire preparedness to fisheries management and space weather monitoring, long after FY25 ends.
What comes next
Congress is expected to pass another CR this fall to avoid a government shutdown, meaning NOAA will once again face mid-year adjustments. Leaders from both parties on the House and Senate Appropriations Committees—the “Appropriations Four Corners”—are already pressing the Department of Commerce to affirm that FY24 levels remain the intended baseline. The outcome of that debate will shape NOAA’s trajectory in FY26 and beyond.
Stakeholders who depend on NOAA services will need to prepare for heightened uncertainty and sharpen their strategies for engaging Congress and the administration. For those who receive funding from NOAA, John advised: respond quickly to RFPs or grant solicitations, submit complete documents on time, and stay current on invoicing and payments to ensure funds are obligated before year-end.
John and Emily also encouraged organizations to continue and expand engagement, share the on-the-ground impacts of FY25 plan during FY26 negotiations in Congress, and be aware that the executive branch is already preparing the FY27 President’s Budget, an opportunity to influence future priorities by explaining the importance of these programs to the nation.
How to get involved
Friends of NOAA is an independent, volunteer organization made up of diverse stakeholders who support the mission, products, and services of the National Oceanic and Atmospheric Administration (NOAA). Consider joining if your organization is not already a member.At ESP Advisors, we help clients move from reactive to proactive federal advocacy. For organizations in the ocean and science space, we navigate the shifting landscape of federal budget and policy decisions—whether it’s understanding CRs, anticipating rescissions, or responding to spend plans. Our team ensures you stay ahead of the changes that matter most. Contact us today to learn how ESP Advisors can help.
