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Appropriations Outlook for Next Week

The Association of American Universities (AAU) released the following outlook today for the appropriations process scheduled to resume next week when congress returns from recess:  

The Senate Appropriations Committee will begin moving its FY12 bills next week as soon as the Senate returns from the August recess on September 6.  Two bills will be marked up that day in their respective subcommittees: Energy and Water and Homeland Security.  CQ Today reports that the full committee is expected to meet shortly after the subcommittee markups to adopt the FY12 spending cap and allocate funding among the panel’s 12 subcommittees.  Just one funding bill, Military Construction-Veterans, was approved by the Senate before the recess. 

 Senate Democratic leaders delayed approval of an FY12 budget resolution, which sets the discretionary spending ceiling for the fiscal year, because they could not gain majority support for any particular level of spending.  The issue was resolved on August 2 with enactment of the Budget Control Act, which included a discretionary spending total of $1.043 trillion for FY12.  That is $7 billion less than the FY11 level, but about $23 billion more than the level in the House-passed FY12 budget resolution.  

Earlier this year, the House passed an FY12 Budget Resolution that cut $30 billion from discretionary spending in FY11, and then approved six of its 12 appropriations bills based on those numbers.  The remaining bills include Commerce-Justice-Science, which funds the National Science Foundation and NASA, and Labor-HHS-Education, which funds the National Institutes of Health and student aid.

At this writing, House Republican leaders have not said how they will move forward on the remaining FY12 bills in light of the increased spending total, but they have expressed support for abiding by the higher overall number.  House Majority Leader Eric Cantor (R-VA), said in a memorandum to his Republican colleagues on August 17, “While all of us would like to have seen a lower discretionary appropriations ceiling for the upcoming fiscal year, the debt limit agreement did set a level of spending that is a real cut from the current year level.  I believe it is in our interest to enact into law full-year bills at this new lower level.”  House Appropriations Committee Chairman Hal Rogers (R-KY) stated his commitment to maintaining “the responsible 2012 spending level agreed to by the House, Senate, and White House under the recent debt ceiling agreement.” 

 While the Senate appropriations process is finally moving forward, the new fiscal year is just one month away, so there seems little chance that the House and Senate can approve all of their bills and reconcile them with one another by October 1.  The more likely scenario is congressional approval of one or more continuing resolutions to sustain funding into the new fiscal year, followed by some type of omnibus appropriations package.

Deficit Reduction Committee Complete

House Minority Leader Nancy Pelosi has tapped her three choices to serve on the deficit reduction super committee: Representatives James Clyburn (D-SC), Xavier Becerra (D-CA), and Chris Van Hollen (D-MD).  Pelosi vowed to appoint Democrats who would protect entitlement programs and push for revenue increases.  All 12 committee members are now in place.

More Super Committee Names

House Speaker John Boehner has appointed Ways and Means Chairman Dave Camp (R-MI), Energy and Commerce Chairman Fred Upton (R-MI), and Republican Conference Chairman Jeb Hensarling (R-TX) as the House GOP members of the deficit reduction “super committee.”  Hensarling will be co-chairman of the committee.  Senate Minority Leader Mitch McConnell also announced Wednesday the Senate Republican members:  Jon Kyl (R-AZ), Pat Toomey (R-PA), and Rob Portman (R-OH).

On Tuesday, Senate Majority Leader Harry Reid announced the Senate Democratic members of the committee: Patty Murray of Washington, John Kerry of Massachusetts and Max Baucus of Montana.  Murray will be the other co-chair.

House Minority Leader Nancy Pelosi has yet to name the House Democratic members of the committee.

Murray Tapped for “Super Committee”

Senate Majority Leader Harry Reid plans to tap Senator Patty Murray (D-WA) to serve as the co-chair of the deficit reduction super committee, which was created through the debt legislation approved last week.  According to Democratic sources, the other two picks for the Senate Democrats will be Senator Max Baucus (D-MT) and John Kerry (D-MA).

Debt Deal Done!

The House approved the deficit reduction bill last night by a vote of 269-161; 95 Democrats and 66 Republicans voted against the measure.  Congressmen Adam Smith and Jim McDermott voted no, while the remaining members of our delegation voted in favor of the bill. The Senate is expected to clear deficit reduction legislation at noon today.  And while it is not on the President’s schedule for today, he is largely expected to sign the bill before the close of business.  With his signature, a six-month-long battle over raising the debt ceiling ends but the next round begins with future fights over spending, taxes, and entitlement programs.  

With that vote, the House went into recess last night and is not expected back in DC until after Labor Day.  The Senate will join their House colleagues once they conclude their vote.

As I reported yesterday, the legislation would cap discretionary spending for FY12 and FY13, effectively freezing it at current levels and only adjusting it to match historical levels of inflation (2.2 percent) through 2021. It would also create a joint congressional committee tasked with finding between $1.2 trillion and $1.5 trillion in new savings, and sending a proposal to the House and Senate floor for guaranteed votes by December 23rd.  If those savings are not enacted, sweeping automatic budget cuts would be triggered.

Democrats are hopeful that the debt limit deal might generate more spending for domestic programs, while Republicans are concerned about cuts in defense.  The allocations would reverse cuts set in April by the House Republicans’ budget target, which would have lopped $30 billion from discretionary spending compared with FY11.  The Labor-HHS-Education and Transportation-HUD bills had been set to include the majority of those cuts and have yet to be unveiled in the House.  The extra funds could ease the path of those bills when they are marked up in September.  With an allocation to work from, Senate appropriators also hope to begin moving bills, which are almost certain to differ from their House-passed counterparts.