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Perkins Expires

Despite efforts of Senators Tammy Balwin (D-WI) and Patty Murray (D-WA), the Senate was unable to take up the House-passed measure to extend the Perkins program. After the House moved quickly this week to extend Perkins loans and send a measure to the Senate, the two Senate champions attempted to have the Senate quickly consider and pass the measure via a legislative procedure called a Unanimous Consent request. To be considered in this manner, no Senator must object, and HELP Committee Chairman Lamar Alexander (R-TN) did object effectively killing the program, which expired September 30th.

The Senate could still take up the House extension bill that failed to get unanimous consent Wednesday, or Higher Education Act reauthorization could allow for a more permanent reinstatement of a program.

 

Welcome to the New Fiscal Year!

With the passage of a continuing resolution late last night, the federal government is open for business on this first day of FY2016! The threat of shutdown diminished greatly last Friday when House Speaker John Boehner (R-OH) announced his retirement effective October 30, 2015.

The CR will fund federal through December 11 and includes $1.017 trillion in annualized spending, which is roughly equal to the FY2015 level (most programs would be funded under the CR at a rate 0.21 percent lower than enacted FY2015 levels). The CR would continue to fund Planned Parenthood and also provide $700 million in emergency dollars to fight Western wildfires. It would also renew expiring authorizations for the E-Verify program and the so-called Internet Tax Freedom Act (PL 105-277).

So, what happens between now and December 11? There are many possible outcomes for FY2016 appropriations. In the best case scenario, Congress could effectively negotiate a budget deal – similar to the 2013 Murray-Ryan deal – which would lift the budget caps for both defense and non-defense discretionary spending and remove the ongoing threat of sequester. This would pave the way for advancing spending bills (or an omnibus bill) before the December 11th deadline. If a budget deal is slow to materialize, then we could see another short term CR to give Congress more time to negotiate this deal. If budget negotiations fail, we could see the threat of shutdown reemerge or Congress could agree to a yearlong CR at FY2015 levels.

Early signs indicate that a budget deal is possible. Senate Majority Leader Mitch McConnell (R-KY) has already initiated preliminary discussions with President Obama and Speaker Boehner on a possible deal. Additionally, Democratic staff said this week that they are already beginning to set new topline numbers and identify possible offsets.

The Office of Federal Relations will continue to monitor and report on progress.

House GOP Sets Leadership Elections

House Republicans will hold elections for new leaders on Oct 8 in a closed door session. It is expected to be a contentious meeting and election, with multiple candidates vying for each position as the House GOP conference struggles to maintain political strength after Speaker John Boehner’s surprise retirement announcement last week.

Majority Leader Kevin McCarthy (R-CA) is expected to win the speakers gavel. He’s running against Florida Republican Rep. Daniel Webster who unsuccessfully tried to beat Boehner in the speaker election earlier this year.

If McCarthy wins that opens the door for a majority leader election. Reps. Tom Price (R-GA) and Steve Scalise (R-LA), who is the current Majority Whip, are both vying for that post.

If Scalise wins, there will also be a race for Majority Whip.

Shutdown Averted

Earlier this morning, the Senate passed a clean continuing resolution (CR) extending federal funding authority until December 11th. Last week, the Senate tried and failed to pass a CR which would prevent Planned Parenthood from receiving federal funds. The measure failed, which cleared the way for the clean CR.

Just now, the House cleared, 277-151, a two-month stopgap spending bill on Wednesday that will avert a government shutdown. Earlier, the Senate passed the measure 78-20. The bill, which will keep the government funded through Dec. 11, is expected to be quickly signed by President Barack Obama.

The measure was approved only with strong support by House Democrats — a sign of just how angry rank-and-file Republicans remain. In one last display of their fury, House Republicans on Tuesday adopted another resolution to cut off government financing to Planned Parenthood. The resolution was to be sent to the Senate, where Democrats were certain to block it.

 

Power Scramble for House GOP

With Boehner’s retirement announcement, his position, and the power of Speaker, is now up for grabs. His successor — Majority Leader Kevin McCarthy (R-CA) is considered the front-runner — may have just as much difficulty in pacifying conservative Republicans willing to hold important legislation hostage to their priorities.

Some ambitious members already in leadership vying to move up the ladder, but the position of Majority Leader seems to have the greatest horse race in the likely event the current officeholder, McCarthy, succeeds Boehner as Speaker. Thus far, McCarthy appears to have little, if any competition.

Majority Whip Steve Scalise (R-LA) and GOP Conference Chairwoman Cathy McMorris Rodgers (R-WA) have all been speculated to want to the job and have not been hiding their ambitions. They used the weekend to make calls to colleagues to get commitments of support, and they solidified their whip teams to help make the rounds and nudge undecideds.

Late yesterday, Rep. Tom Price, Chairman of the House Budget Committee, announced his intention to run for Majority Leader with two high profile endorsements of Rep. Jeb Henserling (R-TX), Chairman of the House Financial Services Committee, and Rep. Paul Ryan (R-WI), Chairman of the House Ways and Means committee and Vice Presidential candidate in 2012. With those endorsements, McMorris Rogers announced her intention not to run for Speaker and remain Caucus Chair.

Thus far, it is a horserace between Whip Scalise and Pryce for the Majority Leader position. Both are staunch conservatives from southern states. It should be noted that the House GOP conference does not require the current seat holder to withdraw from leadership to run for higher office, so conceivably if Price wins, Scalise could remain the GOP Whip.

Who takes the helm to lead the GOP will have tremendous impact and shape the eventual FY2016 appropriations as well as impact if the functioning of the government.