FY2019 Appropriations Update

The Senate has passed nine of its 12 annual FY19 spending bills in four minibus appropriations packages while the House has passed just six of its bills in two minibus appropriations packages and one (Defense) bill. When members of Congress return next week they have 11 days to complete action on the FY19 spending bills before the end of the fiscal year.

Senate Majority Leader Mitch McConnell (R-KY) said that conference approval of the Energy & Water, Legislative Branch, and Military Construction-Veterans Affairs minibus package could come as soon as next week. The Veterans Affairs section of the conference report has been one of the biggest hurdles during the negotiations as funding for a private health care program for veterans would be moved from mandatory spending to discretionary spending (subject to spending caps). This issue may be resolved by adding emergency funding to the package.

McConnell would also like to see conference action on its Defense-Labor HHS Education, Interior-Financial Services, and Agriculture-Transportation/HUD minibus appropriations packages.

In all likelihood, a continuing resolution (CR) will be needed to keep the government open after September 30. And a shutdown is not out of the question as the President has threatened to do this if he does not get the funding he requested for his southwest border wall. In addition to demonstrating to his base his commitment to building a wall, a shutdown could be used as a distraction from the Paul Manafort trial, which is scheduled to begin September 24. If a CR is passed, it could fund the federal government through Thanksgiving or Christmas. And it could be the first of many CRs depending on the outcome of the midterm elections. If the Democrats take control of the House, Republicans may want to lock in current spending levels with a CR that lasts through FY19.

The CR could also become a magnet for other expiring authorization measures as floor time will be limited. The Senate will spend much of its floor time on the nomination of Judge Brett Kavanaugh to serve as a justice on the Supreme Court. A farm bill conference report is also supposed to come up. Sen. John Thune (R-SD), Chairman of the Senate Commerce Committee, said that a multi-year FAA reauthorization (or stopgap authorization) could be added to the CR since its authorization expires on September 30.

FY2019 Appropriations Bills Status

Subcommittee House Action Senate Action
Agriculture Subcommittee: May 9

Full Committee: May 16

Subcommittee: May 22

Full Committee: May 24

Floor: August 1

Commerce Justice Science Subcommittee: May 9

Full Committee: May 17

Subcommittee: June 12

Full Committee: June 14

Defense Subcommittee: June 7

Full Committee: June 13

Floor: June 28

Subcommittee: June 26

Full Committee: June 28

Floor: August 23

Energy & Water Subcommittee: May 7

Full Committee: May 16

Floor: June 8

Subcommittee: May 22

Full Committee: May 24

Floor: June 25

Financial Services Subcommittee: May 24

Full Committee: June 13

Floor: July 19

Subcommittee: June 19

Full Committee: Jun 21

Floor: August 1

Homeland Security Subcommittee: July 19

Full Committee: July 25

Subcommittee: June 19

Full Committee: Jun 21

Interior Environment Subcommittee: May 15

Full Committee: June 6

Floor: July 19

Subcommittee: June 12

Full Committee: June 14

Floor: August 1

Labor HHS Education Subcommittee: June 15

Full Committee: July 11

Subcommittee: June 26

Full Committee: June 28

Floor: August 23

Legislative Branch Subcommittee: April 26

Full Committee: May 8

Floor: June 8

Full Committee: June 14

Floor: June 25

Military Construction VA Subcommittee: April 26

Full Committee: May 8

Floor: June 8

Subcommittee: June 5

Full Committee: June 7

Floor: June 25

State Foreign Operations Subcommittee: June 13

Full Committee: June 20

Subcommittee: June 19

Full Committee: Jun 21

Transportation HUD Subcommittee: May 16

Full Committee: May 23

Subcommittee: June 5

Full Committee: June 7

Floor: August 1

Senate Passes 8th and 9th FY19 Spending Bills

The Senate passed their third “minibus” spending package of the year. The Senate has now passed nine of the 12 annual appropriations bills. The three remaining bills for the Senate to consider on the floor are the Commerce-Justice-Science, Homeland Security, and State Foreign Operations spending bills. The House has reported all of its bills out of committee, but only passed six of them on the House floor. The House still needs to consider the Agriculture, Commerce-Justice-Science, Homeland Security, Labor HHS Education, State Foreign Operations, and Transportation HUD spending bills on the floor when it returns from recess after Labor Day. The House could bypass floor action for some of the bills and go directly to conference with the Senate.

With only a few weeks left before the end of the fiscal year, staff are reportedly “pre-conferencing” some of the spending bills despite lack of action in the House. They have begun doing side-by-side comparisons and identifying issues. They need to work out the topline spending levels for each bill as well as the policy riders. Whichever bills are worked out and agreed upon by September 30 could be attached to a continuing resolution (CR) for final passage. The CR will provide stopgap spending for the agencies that don’t have an FY19 bill signed into law before October 1. The CR is likely to fund the government through the November midterm elections. One potential roadblock to a CR is the President. It isn’t clear that the President will sign a CR or any of the FY19 spending bills without a promise of $5B for his border wall.

FY19 Defense and Labor HHS Education Appropriations Bills

The Senate passed their FY19 Defense and Labor HHS Education appropriations minibus yesterday by a vote of 85 to 7. Sens. Crapo (R-ID), Flake (R-AZ), Lee (R-UT), Paul (R-KY), Risch (R-ID), Sanders (I-VT), and Toomey (R-PA) voted no on the measure. This $854B minibus spending package accounts for roughly 60% of the FY19 appropriations spending. This is the first time since 2009 that the Senate has passed a defense spending bill that was not included in an omnibus spending measure. And if it is signed into law before October 1, it would be the first time since 2006 that a defense bill has been enacted before the beginning of the new fiscal year.

FY19 Energy & Water, Military Construction-Veterans Affairs, Legislative Branch Appropriations Bill Conference

Senate Energy & Water Appropriations Subcommittee Chairman Lamar Alexander (R-TN) said this week that he expects the Senate will take up the FY19 Energy & Water, Military Construction-VA, and Legislative Branch appropriations conference report the first week of September. This means that conferees will sign off on a final conference agreement next week. Conferees canceled a formal meeting in July over a disagreement on funding for veterans health care.

FY2019 Appropriations Bills Status

Subcommittee House Action Senate Action
Agriculture Subcommittee: May 9

Full Committee: May 16

Subcommittee: May 22

Full Committee: May 24

Floor: August 1

Commerce Justice Science Subcommittee: May 9

Full Committee: May 17

Subcommittee: June 12

Full Committee: June 14

Defense Subcommittee: June 7

Full Committee: June 13

Floor: June 28

Subcommittee: June 26

Full Committee: June 28

Floor: August 23

Energy & Water Subcommittee: May 7

Full Committee: May 16

Floor: June 8

Subcommittee: May 22

Full Committee: May 24

Floor: June 25

Financial Services Subcommittee: May 24

Full Committee: June 13

Floor: July 19

Subcommittee: June 19

Full Committee: Jun 21

Floor: August 1

Homeland Security Subcommittee: July 19

Full Committee: July 25

Subcommittee: June 19

Full Committee: Jun 21

Interior Environment Subcommittee: May 15

Full Committee: June 6

Floor: July 19

Subcommittee: June 12

Full Committee: June 14

Floor: August 1

Labor HHS Education Subcommittee: June 15

Full Committee: July 11

Subcommittee: June 26

Full Committee: June 28

Floor: August 23

Legislative Branch Subcommittee: April 26

Full Committee: May 8

Floor: June 8

Full Committee: June 14

Floor: June 25

Military Construction VA Subcommittee: April 26

Full Committee: May 8

Floor: June 8

Subcommittee: June 5

Full Committee: June 7

Floor: June 25

State Foreign Operations Subcommittee: June 13

Full Committee: June 20

Subcommittee: June 19

Full Committee: Jun 21

Transportation HUD Subcommittee: May 16

Full Committee: May 23

Subcommittee: June 5

Full Committee: June 7

Floor: August 1

Senate Begins Consideration of FY19 Defense and Labor HHS Education Appropriations Bill

The Senate kicked off debate on the FY19 Defense and Labor HHS Education Appropriations minibus bill this week, and will resume consideration of the measure next week. The two bills combined make up about 63% of total discretionary spending for FY19. The Senate used the House-passed FY19 Defense spending bill (H.R. 6157) as the vehicle for their minibus.

Senate Appropriations Committee Chairman Richard Shelby (R-AL) predicts that the Senate will clear the package by Labor Day, and possibly as early as next Friday. The first two amendment votes are lined up for Monday evening. Senate Majority Leader Mitch McConnell (R-KY) has requested that senators limit their amendments so that it doesn’t become a “free-for-all” on policy issues. So far this year, the Senate has been able to avoid partisan policy riders. The Labor HHS portion of this minibus, however, could be a magnet for amendments on abortion restrictions, health care coverage, worker protections, and education policy.

Earlier this week, the White House issued a Statement of Administration Policy (SAP). In addition to disagreeing with the overall funding level for the Labor HHS portion of the bill, the SAP objects to certain funding provisions in the bill such as funding a second Littoral Combat Ship, elimination of launch funding for the Evolved Expendable Launch Vehicle, and reductions in funding for the Afghanistan Security Forces Fund, Security Cooperation Fund, the National Background Investigation System, and the Counter-Islamic State of Iraq and Syria Train and Equip Fund.

White House Statement of Administration Policy

https://www.whitehouse.gov/wp-content/uploads/2018/08/saphr6157s_20180815.pdf

On a related note, the White House may be considering another rescissions package. It has been reported the OMB Director Mick Mulvaney has already begun moving ahead on the effort.

FY2019 Appropriations Bills Status

Subcommittee House Action Senate Action
Agriculture Subcommittee: May 9

Full Committee: May 16

Subcommittee: May 22

Full Committee: May 24

Floor: August 1

Commerce Justice Science Subcommittee: May 9

Full Committee: May 17

Subcommittee: June 12

Full Committee: June 14

Defense Subcommittee: June 7

Full Committee: June 13

Floor: June 28

Subcommittee: June 26

Full Committee: June 28

Floor: Week of August 20

Energy & Water Subcommittee: May 7

Full Committee: May 16

Floor: June 8

Subcommittee: May 22

Full Committee: May 24

Floor: June 25

Financial Services Subcommittee: May 24

Full Committee: June 13

Floor: July 19

Subcommittee: June 19

Full Committee: Jun 21

Floor: August 1

Homeland Security Subcommittee: July 19

Full Committee: July 25

Subcommittee: June 19

Full Committee: Jun 21

Interior Environment Subcommittee: May 15

Full Committee: June 6

Floor: July 19

Subcommittee: June 12

Full Committee: June 14

Floor: August 1

Labor HHS Education Subcommittee: June 15

Full Committee: July 11

Subcommittee: June 26

Full Committee: June 28

Floor: Week of August 20

Legislative Branch Subcommittee: April 26

Full Committee: May 8

Floor: June 8

Full Committee: June 14

Floor: June 25

Military Construction VA Subcommittee: April 26

Full Committee: May 8

Floor: June 8

Subcommittee: June 5

Full Committee: June 7

Floor: June 25

State Foreign Operations Subcommittee: June 13

Full Committee: June 20

Subcommittee: June 19

Full Committee: Jun 21

Transportation HUD Subcommittee: May 16

Full Committee: May 23

Subcommittee: June 5

Full Committee: June 7

Floor: August 1

 

While House is in Recess, Senate Continues Work on FY19 Appropriations Bills

The Senate passed its FY19 Agriculture, Interior-Environment, Financial Services, and Transportation HUD minibus spending bill this week by a vote of 92 to 6. Senators voting no on the appropriations minibus were Cruz (R-TX), Johnson (R-WI), Lee (R-UT), Paul (R-KY), Sasse (R-NE), and Toomey (R-PA).

Senate Majority Leader Mitch McConnell said that they are sticking with their plan to approve nine of their 12 FY19 spending bills by the end of August. He hopes the House and Senate can conference the nine bills before the end of the fiscal year. The remaining three bills are Commerce-Justice-Science, Homeland Security, and State Foreign Operations.

The Senate will take up another minibus bill when they return the week of August 13. This minibus will include the Defense and Labor HHS Education spending bills. House conservatives are concerned that by combining these two bills they will lose leverage for the fight over border wall funding in the Homeland Security spending bill. And if Democrats win seats in the House of Representatives in the midterm elections, their leverage could be further compromised if the debate over Homeland Security is put off until after the election.

While President Trump has threatened a shutdown over funding for his border wall, Republicans have said that this threat is not a helpful tactic and isn’t likely to happen.

FY2019 Appropriations Bills Status

Subcommittee House Action Senate Action
Agriculture Subcommittee: May 9

Full Committee: May 16

Subcommittee: May 22

Full Committee: May 24

Floor: August 1

Commerce Justice Science Subcommittee: May 9

Full Committee: May 17

Subcommittee: June 12

Full Committee: June 14

Defense Subcommittee: June 7

Full Committee: June 13

Floor: June 28

Subcommittee: June 26

Full Committee: June 28

Floor: Week of August 13

Energy & Water Subcommittee: May 7

Full Committee: May 16

Floor: June 8

Subcommittee: May 22

Full Committee: May 24

Floor: June 25

Financial Services Subcommittee: May 24

Full Committee: June 13

Floor: July 19

Subcommittee: June 19

Full Committee: Jun 21

Floor: August 1

Homeland Security Subcommittee: July 19

Full Committee: July 25

Subcommittee: June 19

Full Committee: Jun 21

Interior Environment Subcommittee: May 15

Full Committee: June 6

Floor: July 19

Subcommittee: June 12

Full Committee: June 14

Floor: August 1

Labor HHS Education Subcommittee: June 15

Full Committee: July 11

Subcommittee: June 26

Full Committee: June 28

Floor: Week of August 13

Legislative Branch Subcommittee: April 26

Full Committee: May 8

Floor: June 8

Full Committee: June 14

Floor: June 25

Military Construction VA Subcommittee: April 26

Full Committee: May 8

Floor: June 8

Subcommittee: June 5

Full Committee: June 7

Floor: June 25

State Foreign Operations Subcommittee: June 13

Full Committee: June 20

Subcommittee: June 19

Full Committee: Jun 21

Transportation HUD Subcommittee: May 16

Full Committee: May 23

Subcommittee: June 5

Full Committee: June 7

Floor: August 1