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Federal Spending Cuts Planned

House Republicans are still considering options for how best to keep their campaign promise to cut federal spending and the overall size of government. Today they will consider a resolution that would require the House Budget Committee Chairman to set FY11 non-security discretionary spending limits at FY08 levels. The full House expects to vote on the measure early next week. If approved, which is likely, the vote would put the chamber on record in support of cutting non-security discretionary spending before President Obama gives his State of the Union Address to Congress next Tuesday.

Once the House sets a new FY11 discretionary spending cap, House GOP appropriators will start assembling an extension of the stopgap resolution that is now funding the government, including cuts to non-security domestic spending. The current CR, which runs through March 4th, generally continues funding at FY10 levels. Since the Senate’s Democratic majority is unlikely to go along with the House proposals, the two chambers and the President will eventually need to strike an agreement on funding the government for the remainder of the year.

The House Republican leadership also needs to turn their attention to the upcoming vote to raise the nation’s debt ceiling and development of an FY12 budget resolution. While lowering non-security discretionary spending to FY08 levels would be a major victory for Republicans, it is clear that they intend to push for even deeper cuts for FY12. The House Majority Leader has stated that Republicans won’t agree to increase the nation’s debt ceiling without strong assurances of cuts in federal spending. The House Republicans will almost certainly use the debt ceiling vote as a bargaining chip to lock in an agreement with Democrats and the President on spending cuts for FY12 and beyond.

Meanwhile, the House unanimously passed the second of its weekly GOP bills to cut spending yesterday. The amended bill (HR 292) eliminates the requirement that the Government Printing Office (GPO) print hard copies of introduced legislation for use by members of the House and Senate. Instead, they would only be published in electronic form, saving a significant portion of the $7 million the GPO is expected to spend on congressional printing this year.

White House Oil Spill Commission Report Released

Yesterday, the commission tasked by President Obama to examine the BP Deepwater Horizon undersea accident of last spring released its findings and recommendations. The commission addressed a range of topics from the need for increased regulation to funding for oil spill research to long-term restoration of the Gulf. 

Some of the ideas offered:

  • Create a distinct environmental science office within the Department of Interior;
  • Formalize the role of the National Oceanic and Atmospheric Administration in offering input on  environmental protection in Interior leasing decisions;
  • Assign responsibility for congressional oversight of drilling safety and environmental protection to one specific committee in each chamber and require annual oversight hearings;
  • Provide mandatory funding for oil spill research and response technology at a level equal to or greater than that authorized by the Oil Pollution Act of 1990;
  • Significantly increase the Oil Pollution Act’s liability cap and financial responsibility requirements for offshore facilities;
  • Dedicate 80% of any Clean Water Act penalties from the Deepwater Horizon spill to long-term restoration of the Gulf of Mexico; and
  • Along with federal agencies and responsible parties, take steps to restore consumer confidence in the aftermath of a significant spill.

It is expected that Congress will again try to assemble an oil spill bill. During the previous Congress, ideological differences over government regulation and the liability cap hampered efforts to pass a bill. Previous drafts have contained significant investments in research and development, and we will push for those provisions to remain in the mix going forward.

Pell Grant Cuts on the Table Says Key Senator

Senator Lamar Alexander (R-TN) (former Secretary of Education under President George H.W. Bush) is quoted in today’s Congressional Quarterly as stating that cuts to the Pell Grant program, along with the rest of the domestic discretionary budget, are on the table as Congress now attempts to reduce spending through the FY11 and FY12 appropriations processes.

In December 2010, the former Congress passed a temporary spending measure intended to keep the government running while lawmakers try to agree on a permanent budget for the current fiscal year. The spending measure included $5.7 billion to plug a deficit in the Pell program, created by expanded student eligibility. The funding seemingly stabilized Pell for the coming 2011-12 academic year. However, Congress can undo much of that as they finalize fiscal year 2011 appropriations. Support for Pell will be at the forefront of UW advocacy efforts in the coming weeks.

Tucson Tragedy Puts Legislative Schedule on Hold

The shooting over the weekend of Congresswoman Gabrielle Giffords (D-AZ) and 19 others has prompted House leaders to cancel pending action on legislation this week, including their plans to vote on repealing health care reform. Instead, the House will be in session for two days this week but the only business will occur Wednesday when the chamber will consider resolutions honoring the victims of the shooting in Tucson. No recorded votes are expected this week.

Also postponed is the second of the House Republican’s promised weekly votes to cut federal spending. The measure they intended to bring up this week calls for the elimination of a requirement that the Government Printing Office (GPO) print hard copies of all bills and resolutions introduced in Congress, thus saving on printing costs and requiring users to view documents on-line.

The short work week will culminate with an already planned House Republican annual issues retreat on Thursday and Friday. At their retreat, Republicans will be discussing how they plan to achieve their many goals in this Congress, including cutting federal spending and overturning or slowing Obama’s health care reforms. The Senate, meanwhile, last week began a two-week recess and won’t return until the week of January 24th.

Fiscal Issues Dominate First Days in Congress

The 112th Congress convened Wednesday amid ceremonial pomp in the House with the election of Speaker John Boehner (R-OH). Their first order of business was to adopt a rules package for the 112th Congress that is designed to advance Republican priorities to control federal spending, cut the deficit, and makes the chamber more accountable to the public.

On Thursday, the House adopted a resolution that would make 5 percent reductions the next two years to the budgets for House offices, including those of members, leaders, and committees. Republicans estimate that the cuts will save more than $35 million in the first year alone and see the measure as the first of many steps to fulfill their promise to cut federal spending.  House Budget Committee Chairman Paul Ryan (R-WI) said that in addition to cutting current-year spending, further cuts to discretionary spending would be made for FY12. The plan in coming months is to cut FY11 non-security funding down to 2008 levels, which would now amount to a cut of about $60 billion given that domestic agencies will have been funded at 2010 levels for five months of the fiscal year by the time the existing CR expires March 4th.

Also on Thursday, US Treasury Secretary Tim Geithner called on Congress to raise the existing $14.29 trillion debt limit soon, as he estimates the current ceiling will be reached sometime between March 31 and May 16 and that the government now is only $335 billion away from that limit. Raising the debt limit simply allows the government to fund obligations established by both Republican and Democratic Congresses and wouldn’t alter or increase the nation’s obligations. Geithner also emphasized that a default is very different from a temporary shutdown of the government caused by the failure to enact appropriations bills, such as occurred in late 1995 and early 1996. Even if Congress were to immediately cut spending to 2008 levels as suggested by Republicans, it would only delay the need to increase the debt limit by no more than two weeks. Republicans in both chambers say they will agree to raise the debt limit only if the White House agrees to major cuts in federal spending. Although some rank-and-file Republicans have said they won’t agree to any increase and see it as a way of prompting a government shutdown, GOP leaders have maintained that an increase will have to occur and have eschewed any talk of government shutdowns.

Several measures were introduced in the House yesterday that would reduce federal agency budgets by 5, 10, or 15 percent. These measures will likely act as legislative vehicles for the ongoing debate about how to reduce federal spending and likely will come into play as Congress addresses the issues of increasing the debt limit. The Republican leadership in the House will certainly use these or similar measures as bargaining chips with the White House to force spending cuts in exchange for their support on raising the debt limit.

The House and Senate calendars diverge over the next few weeks. The House starts with general organizing committee meetings over the next two weeks and has scheduled a break for the week of January 31st. The Senate, though technically in session, does not return for regular business until January 24th and does not have another scheduled break until the Presidents Day recess starting February 21st.