FY2017 Appropriations Update

The current FY17 continuing resolution (CR) expires on April 28 leaving only one week for Congress to act on it when they return from recess in order to avoid a government shutdown. Eleven of the 12 FY17 appropriations bills are currently funded under the CR. Some key sticking points in the negotiations are the supplemental funding requested by President Trump in March for the southwest border wall and funding for key Obamacare programs. Democrats are in favor of the latter, but not the former. Democrats could also block the omnibus if it includes riders or “poison pills” such as language barring federal grants from going to “sanctuary cities.” A long-term spending deal for FY17 will need some Democrat support to get through the Senate. When asked, White House spokesman Sean Spicer would not rule in or out a veto by President Trump if an FY17 spending deal does not include funding for the border wall. Office of Management and Budget (OMB) Director Mick Mulvaney echoed the concern about a veto saying this week, “The President has to sign off on this stuff. The President needs to see his priorities funded if he’s going to be participating in signing these bills.” As for the FY17 supplemental funding requested by the President for the Department of Defense, House Armed Services Committee Chairman Mac Thornberry (R-TX) is pressing appropriators to allow the Pentagon to roll over into FY18 any supplemental funds appropriated for FY17 giving them more time to spend it before the end of the fiscal year on September 30.

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