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Category: Budget

Budget Resolution Under Consideration

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The FY21 joint budget resolution under consideration by the House and Senate will give “reconciliation” instructions to 11 authorizing committees, directing them to report legislation related to spending, revenue, or debt. The Democrats’ joint resolution carves out an addition $1.9 trillion in deficit spending by changing the top level discretionary spending amount for FY21.

The 3 committees with the largest instructions are:

  • Finance ($1.296 trillion)
  • Health, Education, Labor, and Pensions ($305 billion)
  • Baking, Housing, and Urban Affairs ($89 billion)

The deadline to report legislation is February 16th.

The reconciliation process can be used as a vehicle to pass large agenda items such as a minimum wage increase, COVID relief, and additional stimulus checks, as long as it is related to the budget. Congress is limited to one reconciliation measure each year from each of the categories of direct spending, revenue and the debt limit.

There are various restrictions as to how this process can be used. In the Senate, reconciliation bills are not subject to the filibuster (can pass by simple majority) and amendments must be germane to the bill, however the Byrd Rule applies which limits the provisions included. For a more detailed overview, you can read here.

Bipartisan COVID Relief Bill Unveiled

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A bipartisan group of Senators have introduced a “middle ground” COVID relief bill which they hope can work for both sides of the aisle and pass before the holidays. The $908 billion bill includes some relief for state, local, and tribal governments, the USPS, $300/week unemployment supplements, help for small businesses, testing and tracing, housing assistance, a reauthorization of the paycheck protection program, and more. The bill does not include another round of $1,200 stimulus checks.

An overview is available here, however the actual bill has not been made available yet.

Some of the $908 billion is repurposed from prior spending bills, rather than new spending.

It is unclear whether the bill has enough support to pass in either chamber, or whether the President would sign it. Democrats continue to push for greater spending while Republicans want a smaller price tag.

Read more here.

Stimulus Bill Fails in Senate

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The Senate today voted on a GOP-introduced $500 billion stimulus package, however the bill failed on a 51-44 vote.

Negotiations continue between House Democrats and the Administration. The two sides are potentially very close to reaching a deal on an almost $2 trillion package. Senate Majority leadership reportedly does not support such a large price tag. An agreement would need to be reached between the House, Senate, and Administration in the next few days in order to pass both chambers and be signed into law before the November 3rd elections.

Updates here.

House Updates HEROES Act

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House Democrats have released an updated, smaller, “HEROES Act 2.0”, totaling approximately $2.2 trillion. This COVID relief bill would provide support for small businesses, airline workers, childcare, food security, the Census, education, local governments, and healthcare. Specifically, $39 billion would go to colleges and universities, $3 billion would go to research relief for NIH, and $2.9 billion would go to research relief for NSF. Research relief for other agencies is not included.

A one-pager is available here.

A vote is expected in the coming days. The Senate is not expected to take action, however negotiations between House Democrats, Senate Republicans, and the Administration continue.