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Hiccup with a CR

Writing a stopgap spending measure, known as a Continuing Resolution (CR), to avoid a government shutdown on October 1st, just got a bit harder than lawmakers anticipated.

Typically, CRs extend current funding levels into the new fiscal year for a short duration. Unfortunately, there’s a hitch this time. If current FY2016 funding is simply extended, it would exceed the FY 2017 discretionary spending caps as set by Sequestration in 2011. How much will it exceed? According to the nonpartisan Congressional Budget Office (CBO), a straight extension will exceed the caps by $10 billion.As scored by CBO for the purposes of a stopgap, FY 2016 base discretionary spending comes in at $1.080 trillion, $10 billion above the $1.070 trillion, FY 2017 limit.

The CBO explained that most of the excess spending comes from the scheduled expiration of some spending cuts in fiscal 2017, as previously passed in prior fiscal years.

So some of the same budget maneuvers that allowed Congress to spend billions more dollars in FY 2016 are now complicating the crafting of a stopgap funding measure to keep the government operating when the fiscal year ends on Sept. 30. The maneuvers that were used in FY 2016 include changes in mandatory programs, or so-called CHIMPs, that inflated nondefense spending in FY 2016. CHIMPs refer to provisions in appropriations bills that reduce or constrain mandatory spending, providing an offset for higher discretionary spending.

In preparing for a stopgap spending measure, the CBO’s score must eliminate any savings that do not automatically continue into the next year, including changes in mandatory programs that appropriators often make to free up extra money for discretionary projects. Changes in mandatory programs, mostly from an expiring cut to the Children’s Health Insurance Fund,  account for $5.6 billion of the lost savings. Further, the CBO score assumes that a CR extends the entirety of the subsequent fiscal year, not a short duration — a prudent move since it is currently unclear how long the CR will last. The date being cited most often now is December 9th. 

It is not yet clear whether the overage problem can be fixed through some simple technical corrections, or whether it could mean trimming any popular programs. 

Meanwhile, the House Republican Caucus remains deeply divided on how to proceed. Despite the Constitution clearly stating that the power of the purse originates in the House, the Senate will go first in trying to pass a short-term CR next week to keep the federal government functioning through the November election.

Stay tuned.

They’re BACK!!!!

After seven weeks of recess, the House and Senate are back to work today.  Congressional lawmakers now have approximately 17 legislative days to figure out how to avoid a government shutdown before the new fiscal year (FY 2017) begins on October 1. As we saw last year (a non-election year), coming to an agreement on how to allocate federal fiscal resources is already and tough job. Now, with re-election campaigns now in high gear, political tensions have only grown worse since Congress adjourned in mid-July, further complicating the difficult dealmaking to come.

Adding another layer of complications and vitriol, at least on the House side, the House Freedom caucus, a vocal group of about 40 hard-core conservatives, are blaming GOP leadership for the defeat of one of the caucus’s most active members, Rep. Tim Huelskamp (R-KS), in a party primary in August.

Much of this week will likely be spent drawing battle lines over the expected stopgap measure, known as a continuing resolution (CR), that would extend current FY 2016 funding levels into the new fiscal year (FY 2017) for a short length of time. While a typical CR simply extends all current funding levels for a specified amount of time, pressure is building to add money to combat the Zika virus. A $1.1 billion Zika package collapsed in July in a partisan standoff, although efforts could be made to revive it with modifications. The Senate is feeling pressure to include Zika funding from Senators like Floridian Marco Rubio, who’s state has been particularly impacted. Flood relief for Louisiana is as expected to be discussed.

The length of the CR is also in question. Fiscal hawks of the House Freedom Caucus have long been arguing for a CR into March of 2017 to wait until the new President is in office. Many others in Congress, namely the Democrats, want to clear the decks for the new President and pass an omnibus measure in December — something the staunch conservatives in Congress have vowed to fight in the lame duck session. In fact, Senate Democrats have been very vocal on this issue, and without the support of the Senate Democrats on any CR measure, the Senate Republicans cannot overcome the 60-vote threshold to defeat cloture. 

Look for much posturing to come!

Last Week!!!

With only five days left before a seven-week summer recess, Congress will at least try to keep up appearances. The House Appropriations Committee is scheduled to complete work on the final two of the 12 annual spending bills needed to fund the government for FY 2017. Meanwhile, the full House is set to vote on its FY 2017 Interior-Environment spending bill, which would be the fifth bill to pass the House this year.

By the time Congress reconvenes in September, there simply will not be enough time left to complete work on all of the regular spending bills before the new fiscal year begins on Oct. 1. To avoid a politically deadly government shutdown one month before the elections, some kind of stopgap spending measure, known as a Continuing Resolution (CR), will need to be approved. House Conservatives have expressed concerns about a short-term CR. 

On the Senate side of the Hill, the upper body’s rejection of a procedural vote on the FY 2017 Defense spending bill last Thursday may signify the final nail in the coffin for the regular FY 2017 appropriations process, as Democrats rebel and talk increasingly turns to staving off a government shutdown with a stopgap measure.  Regardless, he Defense spending bill is up, but the chamber could also pivot to take action on the FAA bill or the final version of a bill to fight opioid addiction. The House approved the opioid conference report on Friday.

House Approves Opioid Conference Report

In a remarkable change of pace, the House and Senate came to a conference agreement on S.524, Comprehensive Addiction and Recovery Act this Wednesday. The agreement contains numerous provisions to combat increasing rates of opioid drug abuse, including through modifications to prescribing and pain management practices, by creating or modifying programs to expand access to treatment, particularly access to opioid overdose reversal drugs or medication-assisted treatment that eases withdrawal symptoms, and by establishing or strengthening specific programs for vulnerable groups such as drug-addicted infants. It also requires the Veterans Affairs Department (VA) to take several actions to better manage and track the use of opioids by veterans.

In both chambers and in the conference committee process, Democrats sought to add hundreds of millions of dollars in appropriations to ensure that individuals suffering from opioid addiction would have access to treatment; however, those efforts were blocked. Because of the lack of funding, the Administration has expressed opposition to the agreement — but has not issued a formal veto threat.

Today, the House almost unanimously approved legislation, by a vote of 407-5, to combat opioid overdoses after Democrats dropped their opposition to the bill at the last minute. The vote all but assures that the bill will sail through the Senate and head to President Obama’s desk next week. The legislation, a top priority for GOP leaders, is expected to be one of Congress’s biggest achievements this year.

House Starts Pushing CR

The House Freedom Caucus is pushing for a vote next week on a six-month stopgap funding measure that would last until March 2017 and effectively end the appropriations process for the year. The plan would postpone decisions on FY 2017 spending until a new president and Congress are elected.

At present, House Republican Leadership is considering the proposal, but is highly unlikely such a measure would be considered for a vote next week. Both the House and Senate are scheduled to leave July 15 for the national political conventions and a summer recess that is set to last until after Labor Day. When the chambers return, there is a high chance House Leadership would consider such a measure for a vote.