Deal Needed to Finish FY18 Appropriations

Congressional leaders are negotiating a budget deal with the Administration that would raise budget caps on discretionary spending by about $182B over two years. The proposed deal would increase defense spending by $54B above the $549B limit for FY18 and non-defense spending by $37B above the $515.6B limit for FY18. Those same increases would be applied in FY19 when the caps are $562B for defense and $529.2B for non-defense. The budget deal may not include a legislative fix for the Deferred Action for Childhood Arrivals or funding for a southwest border wall.

Democrats have apparently rejected the offer and are insisting on parity between defense and non-defense spending increases. Conservatives want to offset the spending limit increases with cuts to other programs, including entitlements. And defense hawks could push for additional defense spending in line with the levels provided in the final FY18 National Defense Authorization Act sent to the President this week for his signature. That bill authorized $626B for base Pentagon funding.

Senate Majority Leader Mitch McConnell (R-KY) said a budget deal could be reach by the end of this month, and may be announced as early as next week.

Another FY18 Continuing Resolution?

House Speaker Paul D. Ryan (R-WI) said that the House is considering extending the continuing resolution (CR) past its current expiration date of December 8, but they are not talking about extending it into next year. Ryan said the extension is a possibility to give appropriators more time to write and negotiate their bills. Senate Appropriations Committee Chairman Thad Cochran (R-MS) is also ruling out a new CR that extends into the new year. Extending the CR into CY2018 could lead to some issues (per CBO), as the spending levels would trigger sequestration.

The House has already passed an omnibus FY18 appropriations bill. The Senate has passed eight of their 12 FY18 spending bills out of committee, but hasn’t considered any of the bills on the Senate floor. The four remaining bills are Defense, Financial Services, Homeland Security, and Interior. The Senate Appropriations Committee plans to unveil the four remaining bills next week as chairman’s marks. The bills will not be marked up in full committee.

House Freedom Caucus Chairman Mark Meadows said he would oppose a short-term stopgap spending bill that ends just before the winter holidays. He is instead pushing for a temporary spending measure lasting into the new year.

Status of FY18 Appropriations Spending Bills

Subcommittee House Action Senate Action
Agriculture Subcommittee: June 28

Full Committee: July 12

Floor: September 14

Subcommittee: July 19

Full Committee: July 20

Commerce Justice Science Subcommittee: June 29

Full Committee: July 13

Floor: September 14

Subcommittee: July 25

Full Committee: July 27

Defense Subcommittee: June 26

Full Committee: June 29

Floor: July 27

Energy & Water Subcommittee: June 28

Full Committee: July 12

Floor: July 27

Subcommittee: July 19

Full Committee: July 20

Financial Services Subcommittee: June 29

Full Committee: July 13

Floor: September 14

Homeland Security Subcommittee: July 12

Full Committee: July 18

Floor: September 14

Subcommittee: Postponed

Full Committee: Postponed

Interior Subcommittee: July 12

Full Committee: July 18

Floor: September 14

Subcommittee: Postponed

Full Committee: Postponed

Labor HHS Subcommittee: July 13

Full Committee: July 19

Floor: September 14

Subcommittee: September 6

Full Committee: September 7

Legislative Branch Full Committee: June 29

Floor: July 27

Full Committee: July 27
MilCon-VA Subcommittee: June 12

Full Committee: June 15

Floor: July 27

Subcommittee: July 12

Full Committee: July 13

State Foreign Ops Subcommittee: July 13

Full Committee: July 19

Floor: September 14

Subcommittee: September 6

Full Committee: September 7

Transportation HUD Subcommittee: July 11

Full Committee: July 17

Floor: September 14

Subcommittee: July 25

Full Committee: July 27

House and Senate Make Progress on Tax Reform

After four days of debate this week, the House Ways and Means Committee approved a bill to rewrite the tax code. H.R. 1, the Tax Cuts and Jobs Act, was approved on a party-line vote of 24-16. The House Rules Committee will meet on Wednesday at noon to consider the measure, and the full House is expected to vote on the bill on the House floor next Thursday.

The Senate Finance Committee released a description of the Chairman’s Mark of the “Tax Cuts and Jobs Act” this week. To comply with the rules of the Senate, the measure cannot add more than $1.5T to the debt over 10 years. The committee plans to make adjustments to the legislation during markup next week as Democrats could make a procedural challenge under the Senate’s Byrd Rule if the bill increases annual deficits after the first 10 years.

The Senate Finance Committee will begin consideration of the bill on Monday at 3 PM. And the week of November 27 is possible for Senate floor consideration of the tax reform bill. Senate reconciliation rules require 20 hours of debate followed by a “vote-a-rama.” After the House and Senate pass their respective tax bills, they are expected to quickly appoint conferees and begin to work out the differences in their bills in a conference committee in December.

The conference committee will have a number of differences to resolve. Because Republicans can only lose two votes in the Senate, the final bill may more closely resemble the Senate’s plan than the House’s plan.

Senate Energy and Natural Resources Committee Chairwoman Lisa Murkowski (R-AK) released a four-page reconciliation bill this week that would open the Arctic National Wildlife Refuge (ANWR) in Alaska to oil and gas drilling. The FY18 budget resolution reconciliation instructions required Murkowski’s committee to come up with $1B in revenue over the next 10 years. According to the Congressional Budget Office (CBO), the measure would net $1.092B over the next decade. The bill will be marked up in committee on November 15 at 9 AM. Democrats and environmental groups oppose the measure.

House Rules Committee Print of H.R. 1:

http://docs.house.gov/billsthisweek/20171113/BILLS%20-115HR1-RCP115-39.pdf

Congressional Budget Office Estimate of H.R. 1:

https://www.cbo.gov/publication/53297?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=812526&utm_campaign=0

Description of Senate Finance Committee Chairman’s Mark of the “Tax Cuts and Jobs Act”:

https://www.finance.senate.gov/imo/media/doc/11.9.17%20Chairman’s%20Mark.pdf

Joint Committee on Taxation Score of Senate Draft Proposal:

https://www.finance.senate.gov/imo/media/doc/11.9.17%20JCT.pdf

Congressional Budget Office Cost Estimate of Proposed ANWR Legislation:

https://www.cbo.gov/publication/53301?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=812526&utm_campaign=Express_2017-11-09_08%3a00

House Releases Tax Reform Proposal, Markup Next Week

House Releases Tax Reform Proposal, Markup Next Week

After several months of negotiations between the big six (Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, House Speaker Paul D. Ryan, Senate Majority Leader Mitch McConnell, House Ways and Means Committee Chairman Kevin Brady, and Senate Finance Committee Chairman Orrin Hatch), the House Ways and Means Committee released its tax code overhaul plan this week.

The House Ways and Means Committee will begin marking up H.R. 1, the Tax Cuts and Jobs Act on Monday at noon. Chairman Kevin Brady (R-TX) expects the markup to last through Thursday. He is hopeful the bill would then be considered on the House floor the week of November 13. Brady wants all amendments to be offered during committee markup to avoid amendments being offered on the House floor. Senate Majority Leader Mitch McConnell said the Senate is aiming to introduce its own tax reform bill as early as next week (Nov 8?). Majority Leader McConnell may delay the Thanksgiving recess to vote on their tax reform bill.

The House and Senate will use the budget reconciliation process to pass the tax reform measure, which will only require a majority vote in both chambers. Assuming all Democrats vote against the measure, the House cannot lose more than 22 Republicans and the Senate Republicans cannot lose more than two votes from its members. The process also limits Senate debate to 20 hours.

Here are some of the highlights of H.R. 1:

Individual Tax

  • Lowers individual tax rates to 12%, 25%, and 35% but maintains rate at 39.6% for high income Americans (over $1M)
  • Increases the standard deduction from $6,350 to $12,000 (individuals) and from $12,700 to $24,000 (married)
  • Expands Child Tax Credit from $1000 to $1600
  • Continues the deduction for charitable contributions
  • Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000
  • Continues the deduction for state and local property taxes up to $10,000
  • Repeals the Alternative Minimum Tax
  • Doubles the exemption for the estate tax and repeals it after 6 years
  • No changes to tax treatment of 401(K) contribution limits

Business and Corporate Tax

  • Lowers corporate tax rate to 20% down from 35%
  • Allows businesses to immediately write off full cost of new equipment
  • Preserves the R&D tax credit
  • Makes it “easier” and “far less costly” to repatriate earnings
  • Establishes new safeguards to distinguish between individual wage income and pass-through business income

Other Provisions

  • New 1.4% tax on private university endowments for schools with more than $100,000 per student
  • Tax-exempt religious organizations would no longer be barred from political speech

Original Introduced Bill Text:

https://waysandmeansforms.house.gov/uploadedfiles/bill_text.pdf

Amendment in the Nature of a Substitute (Chairman’s Mark):

https://waysandmeans.house.gov/wp-content/uploads/2017/11/20171106-Amendment-in-the-Nature-of-a-Substitute-to-H.R.-1.pdf

Section-By-Section Summary:

https://waysandmeansforms.house.gov/uploadedfiles/tax_cuts_and_jobs_act_section_by_section_hr1.pdf

Joint Committee on Taxation Estimated Revenue Effects:

https://waysandmeans.house.gov/wp-content/uploads/2017/11/20171106-JCT-Score-H.R.-1.pdf

House Passes FY18 Budget Resolution Paving Way for Tax Reform

The House passed the FY18 budget resolution (H. Con. Res. 71) that provides the path forward for tax reform. The House agreed to the version that was passed by the Senate last week.

The FY18 budget resolution allows for an additional $1.5T in annual deficits over the next decade to make way for tax cuts. The resolution includes reconciliation instructions that would allow Republicans to pass future tax reform legislation without the risk of a Democratic filibuster in the Senate. The measure also could allow Republicans to push through plans to open part of Alaska’s Arctic National Wildlife Refuge to oil and gas drilling. And budget reconciliation instruction calls for the Senate Energy and Natural Resources Committee to reduce deficits by at least $1 billion over 10 years, which could be raised through sales of federal leases to oil drilling companies and royalties from any oil or gas produced.

The FY18 budget resolution has no requirement to cut entitlements to pay for the tax cuts, which is something House conservatives had wanted in the budget. In return for their support and vote on the budget, members of the Republican Study Committee were assured by House Speaker Paul D. Ryan (R-WI) that there would be a vote on the House floor next spring on a constitutional amendment requiring a balanced budget, along with deficit-reduction legislation that includes cuts to entitlement programs. House Budget Committee Chairwoman Diane Black (R-TN) said this week that she expects the FY19 budget resolution could propose up to $500B in mandatory spending reductions.

The vote in the House was 216-212 with 20 Republicans voting against the budget. Some Republicans from New York and New Jersey voted against the budget this time as they wanted assurances that the state and local tax (SALT) deduction would not be eliminated as part of a tax code overhaul. Getting rid of the deduction would bring in an additional $1.3T in new tax revenue over the next 10 years.

The House first passed the FY18 budget resolution on October 5 by a vote of 219-206 with 18 Republicans voting against the budget. Ten Republicans voted no both times, so there are combined 28 Republican members who at one point voted no on the FY18 budget resolution. Republicans can only afford to lose 22 votes on tax reform, so this is going to be a difficult balancing act by House Republican leadership to bring some of their members back on board.

Below are the members who voted against the FY18 budget resolution in the House during either the first round or second round of consideration:

Amash (MI)

Blum (IA)

Buck (CO)

Comstock (VA)

Costello (PA)

Dent (PA)

Donovan (NY)

Duncan (TN)

Faso (NY)

Fitzpatrick (PA)

Gaetz (FL)

Jenkins (KS) – member of the House Ways and Means Committee

Jones (NC)

Katko (NY)

King (NY)

Lance (NJ)

LoBiondo (NJ)

MacArthur (NJ)

Massie (KY)

Mast (FL)

McKinley (WV)

Meehan (PA)

Ros-Lehtinen (FL)

Sanford (SC)

Smith (NJ)

Stefanik (NY)

Tenney (NY)

Zeldin (NY)

Bold – the 10 Republicans who voted no both times

House Ways and Means Committee Chairman Kevin Brady (R-TX) announced that the tax overhaul bill will be released on November 1 and that the committee will begin marking up the measure on November 6. The markup is expected to last several days. Speaker Ryan wants to pass a tax overhaul before Thanksgiving.

Chairman Brady expects to have a static score from the Joint Committee on Taxation (JCT) when they begin to mark up the bill. A dynamic score from the JCT isn’t expected until after the markup. The dynamic score is important as Republicans say tax cuts will spur enough new economic growth to create additional revenue that traditional budget scoring rules don’t recognize.

Finally…speaking of taxes, National Economic Council Director Gary Cohn said this week that Congress will have an opportunity to vote on a federal gasoline tax increase as part of an infrastructure bill early next year.

Senate Healthcare Committee Leaders Announce ObamaCare Deal

Senate Health, Education, Labor and Pensions Committee Chairman Lamar Alexander (R-TN) and Ranking Member Patty Murray (D-WA) announced a deal to stabilize the individual health insurance markets. In addition to Alexander and Murray, the bill was cosponsored by Republican Senators Mike Rounds (R-SD), Lindsey Graham (R-SC), John McCain (R-AZ), Bill Cassidy (R-LA), Susan Collins (R-ME), Joni Ernst (R-IA), Lisa Murkowski (R-AK), Charles Grassley (R-IA), Johnny Isakson (R-GA), Richard Burr (R-NC), and Bob Corker (R-TN), and Democratic Senators Angus King (I-ME), Jeanne Shaheen (D-NH), Joe Donnelly (D-IN), Amy Klobuchar (D-MN), Heidi Heitkamp (D-ND), Al Franken (D-MN), Joe Manchin (D-WV), Tom Carper (D-DE), Tammy Baldwin (D-WE), Claire McCaskill (D-MO), and Maggie Hassan (D-NH).

While the bill had 12 Republican and 12 Democrat sponsors/cosponsors, it appeared to have collapsed soon after it was announced. President Trump was initially onboard with the deal, but soon backpedaled his support after House Speaker Paul D. Ryan (R-WI) came out against it and the Republican Study Committee panned it as a bailout for health insurance companies. But the President was back on board after learning of the Republican cosponsors. Senate Majority Leader Mitch McConnell (R-KY) has not taken a position on the bill.

The Congressional Budget Office projects health care premiums will rise 20-25% without congressional action. This deal would extend ObamaCare insurance stabilization payments in exchange for giving states more flexibility to waive federal regulations. The bill also allows all individuals to purchase a lower-premium “copper” plan on the individual market regardless of age or hardship status; requires HHS to report on consumer outreach, education, and assistance activities; and requires HHS to promulgate regulations for the implementation of Health Care Choice Compacts, which would allow plans to be sold across state lines in the individual or small group market.

Alexander made an impassioned speech on the Senate floor this week and remains optimistic on the deal he reached with Murray. One likely scenario is that it is included in a year-end “grand deal” package that includes some perks and concessions for both Republicans and Democrats on FY18 appropriations, funding for a border wall, and a legislative fix for the Deferred Action for Childhood Arrivals Program.

Bill Text

https://www.help.senate.gov/imo/media/doc/THE%20BIPARTISAN%20HEALTH%20CARE%20STABILIZATION%20ACT%20OF%202017-%20TEXT.pdf

Section-by-Section Summary

https://www.help.senate.gov/imo/media/doc/THE%20BIPARTISAN%20HEALTH%20CARE%20STABILIZATION%20ACT%20OF%202017-%20SECTION%20BY%20SECTION.pdf

FY2018 Appropriations Update

House Passes FY18 Emergency Supplemental Appropriations Bill

The House passed a $36.5B FY18 emergency supplemental appropriations bill (H.Res. 569) on Thursday by a vote of 353 to 69. All 69 no votes were from Republicans. Hardline conservatives complained that the cost of the package should be offset with cuts to other programs. Others were concerned about continuing to fund the National Flood Insurance Program without reforms to what they consider is an unsustainable program.

The legislation provides $18.7B for the Federal Emergency Management Agency’s (FEMA) Disaster Relief Fund (DRF), $576.5M for wildfire-fighting efforts, and $16B for debt relief for the National Flood Insurance Program (NFIP), which now needs additional funds to make necessary insurance claims payments to individuals. In addition, it includes $1.27B for the Disaster Nutrition Assistance Program (DNAP) that enables low-income residents in Puerto Rico to receive the same emergency nutrition assistance that other hurricane-affected states already receive. Earlier this month, OMB Director Mick Mulvaney sent a request to congress for an additional $12.77B for FEMA’s Disaster Relief Fund, $576.5M for wildfire efforts, and $16B for debt relief for the National Flood Insurance Program plus reforms to the program.

The Senate is expected to take up the measure when they return next week, but exact timing isn’t clear. The Senate may work on their FY18 budget resolution first, but Senate Majority Leader Mitch McConnell (R-KY) could schedule the supplemental vote early in the week.

OMB Letter to Congress:

https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/Letters/Letter%20regarding%20additional%20funding%20and%20reforms%20to%20address%20impacts%20of%20recent%20natural%20disasters.pdf

House FY18 Emergency Supplemental Appropriations Bill Text:

http://docs.house.gov/billsthisweek/20171009/HR____SUPP.pdf

Senate Schedules Homeland Security and Interior Appropriations Markups

The Senate has scheduled two subcommittee markups (Interior Appropriations and Homeland Security Appropriations) for Tuesday, October 17 and a full committee markup for the two bills on Thursday, October 19.

Status of FY18 Appropriations Spending Bills

Subcommittee House Action Senate Action
Agriculture Subcommittee: June 28

Full Committee: July 12

Floor: September 14

Subcommittee: July 19

Full Committee: July 20

Commerce Justice Science Subcommittee: June 29

Full Committee: July 13

Floor: September 14

Subcommittee: July 25

Full Committee: July 27

Defense Subcommittee: June 26

Full Committee: June 29

Floor: July 27

Energy & Water Subcommittee: June 28

Full Committee: July 12

Floor: July 27

Subcommittee: July 19

Full Committee: July 20

Financial Services Subcommittee: June 29

Full Committee: July 13

Floor: September 14

Homeland Security Subcommittee: July 12

Full Committee: July 18

Floor: September 14

Subcommittee: October 17

Full Committee: October 19

Interior Subcommittee: July 12

Full Committee: July 18

Floor: September 14

Subcommittee: October 17

Full Committee: October 19

Labor HHS Subcommittee: July 13

Full Committee: July 19

Floor: September 14

Subcommittee: September 6

Full Committee: September 7

Legislative Branch Full Committee: June 29

Floor: July 27

Full Committee: July 27
MilCon-VA Subcommittee: June 12

Full Committee: June 15

Floor: July 27

Subcommittee: July 12

Full Committee: July 13

State Foreign Ops Subcommittee: July 13

Full Committee: July 19

Floor: September 14

Subcommittee: September 6

Full Committee: September 7

Transportation HUD Subcommittee: July 11

Full Committee: July 17

Floor: September 14

Subcommittee: July 25

Full Committee: July 27

House and Senate Move Forward on FY2018 Budget Resolutions

The House and Senate both moved forward this week with their FY2018 budget resolutions. The House adopted its plan by a vote of 219 to 206. All Democrats and 18 Republicans voted against the measure. The Senate Budget Committee approved its FY18 budget resolution on a party-line vote of 12 to 11. The Senate is expected to take up the measure on the Senate floor the week of October 16 where its prospects in the full Senate aren’t certain. Senate Republicans can only lose two votes in order for it to pass the full Senate.

Both budget resolutions included reconciliation instructions for their respective tax writing committees to produce tax overhaul legislation. Republican leaders hope to conference their two budget resolutions quickly as House leaders want to unveil their tax reform legislation before the end of the month.

While budget resolutions typically are considered in the month of April preceding the beginning of the new fiscal year, Congress couldn’t move forward with an FY18 budget resolution until they had completed the FY17 budget resolution process. The FY17 budget resolution included reconciliation instructions for repealing and replacing the Affordable Care Act (“Obamacare”). The FY17 reconciliation instructions expired on September 30.

Senate

The Senate Budget Committee’s FY18 budget resolution provides $549B in defense spending, $516B in nondefense spending, and $77B in Overseas Contingency Operations spending for FY18. The Senate budget resolution complies with the spending caps imposed by the Budget Control Act of 2011. The defense level of spending increases to $684B in FY2027 while nondefense grows at a much slower rate to $537B in FY2027.

The budget resolution also includes two reconciliation instructions to Senate committees. The first would allow the Finance Committee to pass tax cuts that would reduce revenues and change outlays and increase the deficit by not more than $1.5 trillion over the next 10 years. The second instructs the Energy and Natural Resources Committee to save at least $1 billion over the next 10 years.

During committee markup, Sens. Tim Kaine (D-VA) and Kamala Harris (D-CA) offered an amendment to retain a rule to require there to be a Congressional Budget Office (CBO) score on committee-reported legislation 28 hours before it is voted on. The Senate budget resolution proposes repealing the rule, which is enforced by a point of order that can be waived with 60 votes. The amendment was not agreed to.

Sen. John Kennedy (R-LA) offered an amendment to establish a deficit neutral reserve fund to implement work requirements for certain recipients of welfare programs not including Social Security, Medicare, unemployment insurance, and workers’ compensation. The amendment was approved.

FY18 Senate Budget Resolution

https://www.budget.senate.gov/imo/media/doc/FY2018.FINAL%20TEXT%20OF%20MARK.pdf

FY18 Senate Budget Resolution Tables

https://www.budget.senate.gov/imo/media/doc/FY18%20Budget%20Tables.pdf

FY18 Senate Budget Resolution Summary

https://www.budget.senate.gov/imo/media/doc/FY18%20Budget%20Res%20-%20Title%20By%20Title%20Summary.pdf

House

The House FY18 budget resolution provides $622B in defense spending, $511B in nondefense spending, and $87B in Overseas Contingency Operations spending for FY18. The defense level of spending increases to $740B in FY2027 while nondefense decreases to $424B in FY2027.

The defense spending level in the House budget resolution is $73B over the FY18 spending caps set by the Budget Control Act of 2011. There is widespread recognition that a new bipartisan budget deal will be required to avoid sequestration in FY2018. Democrat support will be needed for any new budget deal.

FY18 House Budget Resolution

https://www.congress.gov/115/bills/hconres71/BILLS-115hconres71rh.pdf

FY18 House Budget Resolution Report

https://www.gpo.gov/fdsys/pkg/CRPT-115hrpt240/pdf/CRPT-115hrpt240.pdf

FY18 House Budget Resolution Tables

https://budget.house.gov/wp-content/uploads/2017/07/Summary-Tables-1.pdf

FY18 House Budget Resolution Summary

https://budget.house.gov/wp-content/uploads/2017/07/Summary-PDF-for-web.pdf

FY2018 Budget Resolution Update

While fiscal year 2018 officially begins on Sunday October 1, 2018, the House and Senate are just beginning action on passing their FY18 budget resolutions. The House and Senate budget resolutions include reconciliation instructions that will pave the way for a future tax reform measure. Reconciliation instructions allow the legislation to pass with a simple 51-vote majority in the Senate rather than usual 50-vote supermajority. In addition, Senate debate on a reconciliation bill is limited to 20 hours (10 hours on conference reports), and amendments must be germane.

The House may consider their FY18 budget resolution (H. Con. Res. 71) on the floor next week. The House Rules Committee announced that amendments are due to the committee by 3:00 PM on Monday, October 2. The House budget resolution requires the House Ways and Means Committee to submit reconciliation legislation by October 6. The budget resolution has been stalled since it was passed out of committee in July but was recently endorsed by the conservative House Freedom Caucus.

House FY18 Budget Resolution Bill Text:

https://www.gpo.gov/fdsys/pkg/BILLS-115hconres71rh/pdf/BILLS-115hconres71rh.pdf

House FY18 Budget Resolution Report Language:

https://www.gpo.gov/fdsys/pkg/CRPT-115hrpt240/pdf/CRPT-115hrpt240.pdf

The Senate Budget Committee released their FY18 budget resolution today, which also includes reconciliation instructions. The committee will mark up the resolution next Wednesday and Thursday. The Senate budget resolution balances the budget in 10 years, but assumes an average economic growth rate of 2.6%. The Senate Finance Committee has until November 13 to draft a tax reform measure that costs no more than $1.5T over the next 10 years. The Senate budget resolution also directs the Senate Energy and Natural Resources Committee to identify at least $1B over 10 years in deficit savings. The committee’s chairman Sen. Lisa Murkowski (R-AK) may opt to open the Arctic National Wildlife Refuge to oil and gas drilling to come up with this $1B.

Senate FY18 Budget Resolution:

https://www.budget.senate.gov/imo/media/doc/FY2018.FINAL%20TEXT%20OF%20MARK.pdf

Senate FY18 Budget Resolution Tables:

https://www.budget.senate.gov/imo/media/doc/FY18%20Budget%20Tables.pdf

Senate FY18 Budget Resolution Summary:

https://www.budget.senate.gov/imo/media/doc/FY18%20Budget%20Res%20-%20Title%20By%20Title%20Summary.pdf

Senate Budget Committee Justification for Tax Reform:

https://www.budget.senate.gov/imo/media/doc/FINAL.Tax%20Reform%20Resolution.9.27.17.pdf

House Passes FY18 Appropriations Omnibus

The House passed a $1.23T spending bill (H.R. 3354) that funds the government for FY18, which begins on October 1. The bill was passed by a vote of 211 to 198 with one Democrat (Rep. Peterson – MN) voting in favor of passage and 14 Republicans voting against passage (Reps. Amash – MI, Biggs – AZ, Brooks – AL, Buck – CO, DeSantis – FL, Duncan – TN, Jones – NC, Katko – NY, LoBiondo – NJ, Massie – KY, Messer – IN, Rokita – IN, Sanford – SC, and Sensenbrenner – WI). The bill doesn’t stand a chance in the Senate as Democrats are expected oppose it if it came to the floor as it violates the statutory cap on defense spending by $72B. If it were to become law it would trigger across-the-board sequestration cuts to defense programs of about 13 percent. The measure also includes some “poison pills” that Democrats object to, including funding for the President’s wall on the Southwest border.

The Senate Appropriations Committee has marked up and reported out eight of their 12 annual spending bills, but none have been considered on the Senate floor. The committee will not consider any bills next week because of the shortened work week.

Congress passed a short-term continuing resolution (CR) funding the government for FY18 from October 1 through December 8 and the President signed it into law. Congress now needs to come up with a final FY18 spending deal by December 8. Treasury Secretary Steven Mnuchin said that the President will demand an increase in defense spending when he and Congress negotiate the end-of-the-year budget deal. Democrats are likely to require an equal raise in non-defense spending in order for their votes on any deal.

Status of FY18 Appropriations Spending Bills

Subcommittee House Action Senate Action
Agriculture Subcommittee: June 28

Full Committee: July 12

Floor: September 14

Subcommittee: July 19

Full Committee: July 20

Commerce Justice Science Subcommittee: June 29

Full Committee: July 13

Floor: September 14

Subcommittee: July 25

Full Committee: July 27

Defense Subcommittee: June 26

Full Committee: June 29

Floor: July 27

Energy & Water Subcommittee: June 28

Full Committee: July 12

Floor: July 27

Subcommittee: July 19

Full Committee: July 20

Financial Services Subcommittee: June 29

Full Committee: July 13

Floor: September 14

Homeland Security Subcommittee: July 12

Full Committee: July 18

Floor: September 14

Interior Subcommittee: July 12

Full Committee: July 18

Floor: September 14

Labor HHS Subcommittee: July 13

Full Committee: July 19

Floor: September 14

Subcommittee: September 6

Full Committee: September 7

Legislative Branch Full Committee: June 29

Floor: July 27

Full Committee: July 27
MilCon-VA Subcommittee: June 12

Full Committee: June 15

Floor: July 27

Subcommittee: July 12

Full Committee: July 13

State Foreign Ops Subcommittee: July 13

Full Committee: July 19

Floor: September 14

Subcommittee: September 6

Full Committee: September 7

Transportation HUD Subcommittee: July 11

Full Committee: July 17

Floor: September 14

Subcommittee: July 25

Full Committee: July 27