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FY 2015 Appropriations Process Stalled

There are just two weeks left until Congress adjourns for the month of August (August 1st—September 5th). This week lawmakers will return to DC and try to advance a few pieces of legislation – including refilling the Highway Trust Fund and reaching a deal on veterans’ health care legislation – before the end of August.

On the appropriations front, there is not much news to report. With the Senate’s regular appropriations work stalled and an emergency spending request for migrant children taking up time and energy on Capitol Hill, a full government-wide continuing resolution (CR) now appears to be a near certainty for the fall. Congress has until September 30th – the end of the federal fiscal year – to complete appropriations work. Many senior appropriators say they now see a 12-bill CR as a near inevitability. The more pressing question in coming weeks for appropriators will be not if, but how long stopgap legislation would last and if any other provisions, including perhaps some border spending, might be attached to it. If a CR is approved, we are likely to see an omnibus spending bill in the lame-duck session after the midterm elections.

In other news, Cora B. Marrett announced that she will resign her position as Deputy Director of the National Science Foundation (NSF) effective August 24th. Marrett was confirmed as NSF Deputy Director in 2011. She has also served as NSF’s acting director and acting deputy director. Marrett served as the first assistant director for the Social, Behavioral, and Economic Sciences directorate, and as assistant director for the Education and Human Resources directorate.

This Week in Congress

Today the Senate reconvenes at 2 p.m. and is in a period of morning business until 6 p.m. No votes are expected.

In the other chamber, the House reconvenes at 2 p.m. for legislative business and is expected to begin consideration of a number of bills, including HR 5016, which would make appropriations for financial services in FY 2015. Roll call votes will be postponed until 6:30 p.m.

Here’s what we’ll be paying attention to in committee this week:

TUESDAY, JULY 15

Senate Appropriations Committee
Fiscal 2015 Appropriations: Defense
Subcommittee Markup
10 AM; 192 Dirksen Senate Building

House Appropriations Committee
Fiscal 2015 Appropriations: Interior-Environment
Full Committee Markup
9 AM; 2359 Rayburn Building

THURSDAY, JULY 17

Senate Appropriations Committee
Fiscal 2015 Appropriations: Defense
Full Committee Markup
10:30 AM; 106 Dirksen Senate Building

Senate Commerce, Science & Transportation Committee
Research and Development Investments
Full Committee Hearing
2 PM; 253 Russell Senate Buliding

House Energy & Commerce Committee
Technological Advancements in Health Care
Subcommittee Joint Hearing
9:30 AM; 2123 Rayburn House Building

House Science, Space & Technology
Innovative Medical Achievements
Subcommittee Hearing
9 AM; 2318 Rayburn House Building
 

Congress Back for 4-Week Summer Session

Democrats and Republicans are returning to the Capitol today after a weeklong break to celebrate the Fourth of July. But they appear to be more focused on the midterm elections rather than on moving legislation. Hopes have dimmed that Congress will get much done this year since they only have 29 legislative days left in 2014, and the majority of that time will be in the next four weeks.

It is possible, however, that they may find the political will to get a few things done between now and the August recess. Some prospects include veterans healthcare (in light of the recent VA scandals), funding for highway and bridge projects, and maybe a couple of FY 2015 appropriations bills.

House Republicans will use July to continue moving spending bills through the committee process and onto the floor, though it remains unclear if they’ll succeed in advancing all 12 appropriations bills before the end of the fiscal year on September 30th. The House will continue to move forward this week, with the chamber scheduled to consider its FY 2015 Energy-Water appropriations bill as early as Wednesday. Passage of this sixth appropriations measure would put the House halfway to completion of all 12 annual bills. The Senate, however, has yet to pass any of its spending bills and chances are slim that they will complete any before the August recess.

December’s bipartisan budget deal between Senator Patty Murray (D-WA) and Representative Paul Ryan (R-WI) has established a top-line figure that many think will grease the process, even as some members on the far left and far right are pushing back. Congress has until October 1st to act to prevent another shutdown, and the debate over appropriations will extend beyond the August recess and likely push up against that deadline. If the sides can’t agree on individual spending bills, they’ll likely pursue a shorter-term stopgap measure – a so-called continuing resolution – to take them at least into the lame-duck session after the November elections.

Student Loan Interest Rates Rise

Annual student loan interest rates increase tomorrow, July 1st. This represents the first full year loan rates will be tied to the 10-year Treasury note under the deal struck by Congress last summer. Rates will rise from 3.86 to 4.66 percent for undergraduate Stafford loans, 5.41 to 6.21 percent for graduate Stafford loans and 6.41 to 7.21 percent for parent and graduate PLUS Loans. The maximum Pell Grant will also increase tomorrow by $85 to $5,730. The Institute for College Access and Success offers a helpful fact sheet breaking down the changes.

The Week Ahead

Both the House and Senate are in recess for the 4th of July. The Senate will return July 7th and the House will return July 8th.