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Author: Christy Gullion

President to Propose an End to Sequestration

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President Obama will advocate for an end to sequestration by proposing equal budget increases in both defense and non-defense discretionary spending in his FY2016 budget to be released on Monday. Obama is giving a ‘sneak peak’ of his budget to House Democrats at their  retreat in Philadelphia today. According to a White House source, the proposal would reverse cuts for domestic priorities and match those investments dollar-for-dollar with the resources our troops need to keep America safe.

Spending caps for FY2016 are due to be set at $1.016 trillion as required the 2011 Budget Control Act (PL 112-25), which exchanged an increase in the deficit for a decade’s worth of strict spending caps, and across-the-board cuts if Congress does not adhere to the caps.

Both Republican and Democrats have expressed a desire for raising some spending levels, but Obama’s proposal is not likely to gain support among Republicans because of how he plans to pay for them. Obama’s plan would be fully paid for with cuts elsewhere and closing tax loopholes. But any tax increase will be a non-starter with Republicans, who have rejected similar proposals before. Obama is probably hoping that his proposal for increased defense spending will help draw the GOP into negotiations.

Welcome 114th Congress! Oh, and it’s Snowing!

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Photo of White House covered in snow earlier this morning, taken by Peter Alexander of NBC.

The 114th Congress convenes today under a blanket of snow in Washington, DC. While the snow is expected to taper off by midday, disagreements over budget priorities that have stymied Congress in recent years won’t go away so soon and are likely to lead to the first vetoes of appropriations bills in nearly a decade. This is largely due to the change in leadership as Republicans regain control of both the House and Senate for the first time in eight years. But today they will work through the usual ceremonial chores of swearing in new members while trying to unify support for GOP leadership and their legislative agenda.

As they do at the beginning of each Congress, House lawmakers will vote today on procedural parameters for the next two years, adopting a rules package Republicans are using to advance their desires for tax scoring. House GOP leaders have proposed a controversial “dynamic scoring” mandate that would require congressional budget analyst to account for overall economic impacts of tax or spending changes when considering major legislation. This will have a huge impact on any tax reform legislation proposed this Congress, as well as any bill that requires new funding.

Quickly after the controversial rules vote, the House will consider legislation that would exempt veterans from the employee quota used to determine which companies are required to provide health care to their workers under the Affordable Care Act (ACA). This bill is intended to both erode part of the 2010 health care law and open jobs for veterans. The legislation is expected to receive wildly bipartisan support, as it did last spring when it passed the House 406-1 before floundering in the Senate.

It is shaping up to be a busy and controversial session of Congress. With both chambers under Republican control, we are likely to see many more bills move through the legislative process than in previous years. However, much of that legislation will be ripe for a veto by the President.

 

‘Cromnibus’ Advances to the Senate

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The House yesterday approved the FY2015 ‘cromnibus’ bill funding all areas of federal government through September 30, 2015 except for Homeland Security, which is subject to a continuing resolution (CR) through February 2, 2015. The House vote as close – 219 to 206 – and delayed several hours as GOP leaders worked their members to support the massive $1.1 billion year-end spending package.

The House and Senate also both passed a two-day stopgap spending measure to avoid a government shutdown, as the current CR was set to expire midnight Thursday. The Senate will take at least a day to process and vote on the so-called cromnibus before sending it to the President, who has said he will sign it into law. That vote could come as early as this afternoon but could also stretch into early next week. If that happens, another short-term CR will be necessary.

The fiscal 2014 and 2015 omnibuses were largely a result of the 2013 budget deal that set domestic and defense spending caps and created the sequester if Congress did not adhere to those caps. No similar deal is in place for next year, and a GOP-controlled Congress will have less incentive to make such a deal with Democrats.

Appropriations Update: Shutdown Possible?

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Congress returns to the Capitol today to begin a long week of work before the Thanksgiving break. There are roughly 11 working days before the next continuing resolution (CR) runs out on December 11th so Congress continues to consider their options for completing FY 2015 appropriations. House and Senate Republican leaders keep insisting they don’t want another government shutdown, but rank-and-file members continue to look for ways to oppose President Obama’s executive actions on immigration and environmental policies. This caustic political environment is eerily similar to the one that led to last year’s government shutdown.

So far, House and Senate appropriators insist they are making headway in writing a FY 2015 omnibus spending package that they hope to have ready for the floors by the week of December 8th. That won’t leave lawmakers much time to complete their work so options are also being considered, such as another short-term CR – for a week or so – to allow lawmakers time to vote on the omnibus, a year-long CR to fund government through September 2015, or a shutdown to force the President to take action (or not take action) on certain policies. Unfortunately, we won’t know which way they are leaning until after Thanksgiving.

In other budget news, last week the House GOP considered lifting the ban on earmarks. They had their most extensive debate in years over reviving earmarks for states, local governments, public utilities, or other public entities, but ultimately they decided to keep the ban that has been in place since 2011. The debate suggests there is some interest in returning to earmarks that some appropriators believe would help move the annual spending bills. Under current House rules, appropriations bills can include specific line-item spending projects as long as the President includes it in his budget. At least for now, earmarks will be off the table for the 114th Congress.

Final Action on CR Today

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Yesterday, the House approved a $1 trillion continuing resolution (CR) to keep the government funded through December 11, 2014. The 21-page CR would fund the government at an annual rate of $1.012 trillion. The 319-108 vote sends the bill to the Senate, which is also expected to approve the measure. The Senate will start considering the House-passed CR this afternoon and there could be more than four hours of debate before final passage in the Senate.

The measure was approved in the House after lawmakers first voted to add language authorizing a program to train and equip moderate Syrian rebel groups to fight the Islamic State in Iraq and Syria (ISIS). The measure also includes additional funding to fight the Ebola epidemic, to assist the Department of Veterans Affairs, and to beef up support for the Commodity Supplemental Food Program, which helps low-income people obtain nutritious food. Finally, the bill extends the charter for the Export-Import Bank, which backs US exports, through June 30, 2015. No new funding for border-related issues is included in the bill.

The legislation fulfills the guidelines of the budget agreement reached by budget committee chairmen Congressman Paul Ryan (R-WI) and Senator Patty Murray (D-WA) last December, and comes after both chambers failed to pass all 12 individual appropriations measures. The House had passed seven FY 2015 appropriations bills under an open amendment process, while the Senate did not pass any.

With action taken on the CR, Congress will adjourn until after the November elections, returning to work on November 12th. At that time, they will begin negotiating a final FY 2015 omnibus measure before the new December 11th deadline.