FY18 Continuing Resolution Set to Expire Next Friday

The House Appropriations Committee introduced another FY18 continuing resolution (CR) this week that would fund most of the federal government through January 19, 2018. The current CR expires on December 22. This new CR also includes a full-year funding bill for the Department of Defense, $2.1B for the Veterans Choice program, and a fix for the Children’s Health Insurance Program (CHIP), extending funding for the program for five years and extending funding for community health centers for two years. The full year defense bill includes the additional funds for missile defense that were requested by the Trump administration. The bill does not include emergency aid for hurricane and fire states and territories. The House plans to vote on the measure after they have completed action on a tax reform conference bill.

House and Senate Republicans admit that they do not have the 60 votes needed for passage in the Senate. Democrats are reluctant to fund the military for the full year before reaching an agreement with Republicans on nondefense spending. The budget caps for FY18 are $549B for defense and $516B for nondefense. A few weeks ago, Republicans offered to increase the defense limit by $54B and nondefense by $37B. The same increases would be allowed for FY19 as well. Democrats rejected the offer, demanding equivalent increases in defense and nondefense spending.

The Senate may strip out the full-year defense spending bill as well as the CHIP provision because of the way it was financed. They may also add emergency funding for disaster relief for hurricane and wildfire victims. The House is expected to release a third disaster aid package today. Their package is expected to be significantly larger than the $44B the administration requested on November 17.

House FY18 Continuing Resolution

https://rules.house.gov/sites/republicans.rules.house.gov/files/BILLS-115HJRes124IH.pdf

Administration’s November 17 Emergency Funding Request

https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/Letters/fy_2018_hurricanes_supp_111717.pdf

House and Senate Pass Another FY18 Continuing Resolution

The House passed an FY18 continuing resolution (CR) funding the government through December 22 by a vote of 235 to 193. Voting against the bill were 18 Republicans (Amash-MI, Biggs-AZ, Brooks-AL, Gaetz-FL, Garrett-VA, Gohmert-TX, Gosar-AZ, Griffith-VA, Harris-MD, Hollingsworth-IN, Jones-NC, Labrador-ID, Massie-KY, Mooney-WV, Perry-PA, Ratcliffe-TX, Wittman-VA, and Zeldin-NY) and 175 Democrats. Fourteen Democrats (Bustos-IL, Crist-FL, Gottheimer-NJ, Murphy-FL, O’Halleran-AZ, Peters-CA, Peterson-MN, Rosen-NV, Ruiz-CA, Schneider-IL, David Scott-VA, Sinema-AZ, Speier-CA, and Walz-MN) voted for the measure. Five members (one Republican – Bridenstine-OK and four Democrats – Brownley-CA, Kennedy-MA, Lawson-FL, and Pocan-WI) did not vote.

The Senate then passed the two-week CR by a vote of 81 to 14. The fourteen members who voted against the measure were: Booker (D-NJ), Cruz (R-TX), Ernst (R-IA), Gillibrand (D-NY), Harris (D-CA), Hirono (D-HI), Lee (R-UT), Markey (D-MA), McCain (R-AZ), Merkley (D-OR), Rounds (R-SD), Sanders (I-VT), Sasse (R-NE), and Warren (D-MA).

The President signed the measure into law today.

Congressional leaders now need to broker a long-term funding agreement to fund the federal government for the rest of FY18. House and Senate leadership met with the President yesterday, but they don’t seem to be any closer on a final spending deal. The deal leadership is discussing reportedly includes $200B in additional spending – $73B for defense, $56B for non-defense, and $70B for emergency spending. House Speaker Paul D. Ryan (R-WI) speculated that a third CR may be needed in order to give the Appropriations Committee enough time to assemble an FY18 omnibus appropriations bill once they have agreement on topline spending levels.

Negotiators are hoping to get a deal on the budget caps before the Dec. 22 deadline. If lawmakers aren’t able to get a deal on the budget, sequestration is set to start in mid-January, which will spark automatic spending cuts. Senate Republicans need the support of Democrats to pass an FY18 omnibus spending measure. Democrats are asking for parity in increases in defense and nondefense spending. They may be willing to support an increase in defense spending if it was matched with an equal increase on the nondefense side. Democrats are also asking for an extension of the Children’s Health Insurance Program (CHIP) and a legislative fix for the Deferred Action for Childhood Arrivals (DACA) program. Republicans are also pushing for funding for a southwest border wall.

FY18 Appropriations Continuing Resolution Expires Next Friday

House Republicans discussed plans to pass another FY18 continuing resolution (CR) funding the government through December 22. And House Appropriations Committee Chairman Rodney Frelinghuysen (R-NJ) indicated in a newsletter to constituents that the CR will last through 12/22. The current CR expires next Friday, December 8. House conservatives are concerned that a deadline right before Christmas will lead to approval of a massive spending bill. They prefer a one-month CR funding the government through January with some increases for defense spending. Democrats also declined to support the short-term CR because of a series of tweets from the President earlier this week. Democratic leaders boycotted a meeting with the President on Tuesday after he attacked them for being “weak on crime.” Democrats may also be withholding their support for another CR in order to increase their leverage in year-end negotiations, more specifically, to include a solution for “Dreamers” in the final spending deal.

While there isn’t consensus over how long the next CR should be or what should be attached to it, there is agreement that the spending caps set by the 2011 Budget Control Act must be raised to get a bipartisan deal on a final spending package. Republicans have offered a $54B increase in defense spending and a $37B increase in non-defense spending. Democrats are asking for parity between defense and non-defense spending increases.

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

Chairman’s Mark Released: November 21
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

Chairman’s Mark Released: November 20
Homeland Security Subcommittee: July 12

Full Committee: July 18

Floor: September 14

Chairman’s Mark Released: November 21
Interior Subcommittee: July 12

Full Committee: July 18

Floor: September 14

Chairman’s Mark Released: November 20
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