FY17 Appropriations Update – November 18, 2016

After President-Elect Donald Trump weighed in on the FY17 appropriations process telling Republican leaders that he prefers a short-term continuing resolution (CR) extending current funding levels through February or March of next year, Speaker of the House Paul D. Ryan (R-WI) decided to not move ahead on any FY17 appropriations bills during the lame duck session and instead pass another CR. The current CR expires on December 9. House Appropriations Committee Chairman Hal Rogers (R-KY) expressed disappointment in the decision, but was hopeful that the new Congress and new administration would finish the bills in the spring. Senate Majority Leader Mitch McConnell (R-KY) said last week that he would support legislation funding the federal government through the end of the fiscal year, but now appears resigned to follow the House’s lead with a short-term CR. Other Republican senators were less eager to embrace this decision.

Lawmakers did acknowledge the need to account for anomalies as well as emergency funding priorities (hurricane and flood relief, the opioid epidemic, and the lead-contaminated water system in Flint, MI) in a CR. With the conference on the Water Resources Development Act (WRDA) at an impasse, the CR may be a more likely route for aid to Flint, MI.

It is also unclear if the CR will include the recent $11.6B war supplemental submitted by the Administration to Congress, or if that will move in a stand-alone bill. The war supplemental request includes $5.8B for military operations against the Islamic State and in Afghanistan, along with $5.8B for related work by the State Department and the U.S. Agency for International Development. The additional funding would bring President Obama’s total request for war spending needs in FY17 to $85.3B. House Armed Services Committee Chairman Mac Thornberry (R-TX) said he thought the $11.6B request was insufficient, but didn’t say how much he thought was necessary. Sen. Tom Cotton (R-AR) said he plans to introduce a $26B supplemental funding bill that would go toward military readiness as well as overseas operations. Cotton has been rumored to be on Trump’s short list for Secretary of Defense.

Finally, the final appropriations process next spring could be difficult with Congress negotiating with a new president and administration who will be busy preparing the FY18 budge request, and the debt ceiling expiring on March 15.

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