Author: jnurse

**Update 3/2, the House and Senate have agreed to a two week extension (along the lines described below) temporarily avoiding a government shutdown at the end of the week.**

Congress and the White House have five days to agree on a path forward on FY11 appropriations, given that the continuing resolution (CR) that is currently funding government operations expires on March 4th. The House and Senate remain far apart on a permanent plan to fund the remainder of FY11. As a result, a two-week CR extension is currently being discussed as a means for buying additional time to reach a permanent agreement. The short-term extension would cut $4 billion from current funding levels, largely coming from an early end to eight programs proposed for elimination in FY12 by President Obama, and the termination of $2.7 billion of earmarks. The bill also provides temporary relief for the Pell Grant program, maintaining the maximum award level at $5,550 for the coming academic year. House and Senate leaders appear to support the two week extension, as the alternative would likely be a shutdown of the government at the end of the week.

Early Saturday morning, the House of Representatives passed a spending plan (H.R. 1) for the remainder of fiscal year 2011. The legislation would sharply reduce spending across the spectrum of government, including within research and student aid agencies. The measure passed despite unanimous Democratic opposition joined by three Republican votes against. The House vote sets up a budget showdown with the Senate and White House, which have already stated their opposition. Steps forward will need to take place by March 4^th, when current funding for the government expires.

The House considered and adopted a number of amendments of interest:

• #214:  John Kline (R-MN)—Prevents Education Department from implementing “Gainful Employment” regulation (289 to 136, 1 voted “present)
• #267:  Steve King (R-IA)—Prohibits use of funds from CR to carry out provisions of the health care law.  There may be an impact on student aid provisions contained in the law (241 to 187)
• #233:  Ralph Hall (R-TX)—Prohibits use of funds to establish a NOAA Climate Service (233 to 187)

Chairman’s Statement and Successful Amendments

Yesterday, Preisident Obama issued a veto threat on the spending proposal (H.R. 1) that is advancing in the House to cut $100 billion from the FY11 request. As widely reported, H.R. 1 would result in severe reductions for nearly all agencies -including those that provide research and student aid support. The Statement of Administration Policy reads:

“The Administration strongly opposes House passage of H.R. 1, making appropriations for the Department of Defense and the other departments and agencies of the Government for the fiscal year ending September 30, 2011, and for other purposes. The Administration is committed to cutting spending and reducing the deficit so that current government spending does not add to the debt and has put forward a plan to do just that. However, the Administration does not support deep cuts that will undermine our ability to out-educate, out-build, and out-innovate the rest of the world. The bill proposes cuts that would sharply undermine core government functions and investments key to economic growth and job creation, and would reduce funding for the Department of Defense to a level that would leave the Department without the resources and flexibility needed to meet vital military requirements. If the President is presented with a bill that undermines critical priorities or national security through funding levels or restrictions, contains earmarks, or curtails the drivers of long-term economic growth and job creation while continuing to burden future generations with deficits, the President will veto the bill.

The Administration looks forward to working with the Congress to refine the legislation to allow critical government functions to operate without interruption for the remainder of the fiscal year underway.”