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House Passes Two Appropriations Bills and Looks Forward

This week, the full House considered and passed the Military Construction and Veterans Affairs and Legislative Affairs bills on Wednesday and Thursday respectively.  Both measures are considered uncontroversial and passed by overwhelmingly.

It is unclear when the full House will take up the Commerce, Justice, and Science bill, which the House Appropriations Committee also unveiled and passed this week. Potential policy riders, including NASA’s involvement with Russia, could derail it.

The House is expected to unveil the Transportation, HUD Appropriations Bill next week, and rumors are that Homeland Security will follow soon after.

As these measures continue through the Appropriations process, the Office of Federal Relations will continue to monitor them and provide period updates on their progress.

House Appropriations Committee Releases Three Bills

The House Appropriations Committee released three appropriations bills for FY 15, or a quarter of the annual appropriations measures, today. The bills released were: Legislative Affairs (HR 4487); Military Construction and Veterans Affairs (HR 4486); and Commerce, Justice and Science.

The bills are expected to marked up by the House Committee on Tuesday and Wednesday.

The full House is expected to pass the Legislative Affairs and Military Construction and Veterans Affairs bills on Thursday.

The draft released today that would fund the Commerce Department, Justice Department and science agencies through fiscal 2015 and expand on recent increases for law enforcement and space exploration  is a $51.2 billion spending bill.

Overall, the measure represents a $398 million cut from current funding, even as it provides notable boosts in targeted areas.

The Justice Department, the biggest recipient of funds in the bill, would receive $27.8 billion, a $383 million increase from current funding, according to a committee overview. The Commerce Department would receive $8.4 billion, a $171 million boost.

NASA, the largest component of the science funding, would get $17.9 billion, an increase of $250 million from fiscal 2014. The National Science Foundation would get $7.4 billion in fiscal 2015, a $237 million increase compared to fiscal 2014.

To cut costs, the bill “eliminates several existing programs for a savings of over $250 million, and $469 million in unused prior-year funding is rescinded,” according to the committee overview.

Other points of interest:

National Aeronautics and Space Administration (NASA) – NASA is funded at $17.9 billion in the bill, which is $250 million above the 2014 enacted level. This funding includes: $5.2 billion for NASA Science programs – $42 million above the 2014 enacted level. This includes funding above the President’s request for planetary science to ensure the continuation of critical research and development programs.

National Institute of Standards and Technology (NIST) – NIST is funded at $856 million in the bill, which is $5.8 million above the fiscal year 2014 enacted level and $44.2 million below the President’s request. Within this total, important core research activities are funded at $671 million to help advance U.S. competitiveness, innovation, and economic growth, and improve cyber security. The bill also includes $130 million for the Manufacturing Extension Partnership program, which provides training and technical assistance to U.S. manufacturers in order to boost growth in this important sector of our economy.”

National Oceanic and Atmospheric Administration (NOAA) – The legislation contains $5.3 billion for NOAA, virtually equal to the fiscal year 2014 enacted level. Within this total, National Weather Service operations and systems are funded above the President’s request, denying proposed cuts to hurricane forecasting and tsunami warning grants. The bill includes full funding for the Joint Polar Satellite System weather satellite program and the Geostationary Operational Environmental Satellite to help maintain and improve weather forecasting to warn communities about potentially devastating natural disasters.”

National Science Foundation (NSF) – The legislation funds NSF at $7.4 billion, an increase of $237 million above the fiscal year 2014 enacted level. This funding is targeted to programs that foster innovation and U.S. economic competitiveness, including funding for research on advanced manufacturing, cybersecurity, neuroscience and STEM education.

As these measures continue through the Appropriations process, the Office of Federal Relations will continue to monitor them.

Welcome Back Congress!

Members of Congress return to Washington, DC today after a two-week recess period. Today marks a nine-week work period where at least one chamber will be in session. But the House will recess again in two weeks, the Senate will take off all of Memorial Day week, and the House will take another recess the first week in June. Then both chambers will recess for the week of Fourth of July. After that, there are just four weeks until the five-week August recess, which stretching through the first week in September. That break will be followed by maybe as few as a dozen working days before early October when the House leadership has promised members they can go home to campaign full time for the mid-term elections. The Senate is likely to follow suit.

That’s not much time for genuine legislating, especially given that both parties plan to spend much of the time using the Capitol as a sound stage for their political messaging.

This week, the House is expected to begin considering the first two FY2015 appropriations bills of the season: Military Construction-VA and Legislative Branch. The Commerce-Science-Justice measure will be next in the queue, with the House Appropriations subcommittee taking it up Wednesday. Senate appropriators are moving more slowly on their bills but we expect to see a lot of action on appropriations measures between now and the August recess period.

First Two FY 2015 Bills to Advance

The first two FY 2015 bills are set to move through the House Appropriations subcommittees today: Military Construction-VA and Legislative Branch.

The Military Construction-VA bill proposes $71.5 billion in discretionary spending for the VA and the military construction accounts of the Defense Department, a decrease of $1.8 billion from the FY 2014 enacted level, with the cuts coming from the military construction portion. The Legislative Branch bill would provide $3.3 billion for the House and joint operations, about $122.5 million less than requested and matching FY 2014 spending. As is customary with the Legislative Branch spending bill, the House and Senate will each defer to the other chamber in setting its own funding levels.

Today in the Senate, Finance Chairman Ron Wyden (D-OR) will lead a markup of tax extenders legislation with the hope of ending the impasse over temporary tax breaks that expired at the start of the year. The package would extend for two years popular business tax preferences such as the credit for research and exploration and individual breaks for mortgage interest and mortgage debt relief. But only 45 of the 55 breaks that expired December 31st made Wyden’s list. Nearly 100 amendments to the bill have been filed so the final outcome is yet to be seen. We will report more after the committee markup.

Ryan Reveals House FY15 Budget

House Budget Chairman Paul Ryan unveiled the House FY15 Budget today. The measure proposes to cut $5.1 trillion over a decade in a bid to erase the federal deficit, while calling once again for dramatic changes to Medicare, Medicaid, and the tax code.

The House proposal would significantly reduce federal support for college access. The Ryan Budget would  eliminate the interest subsidy for all subsidized undergraduate student loans — based on a CBO estimate last year,that would increase loan costs to students by some $50 billion over ten years. The proposed budget would eliminate all mandatory funding for Pell, shifting it totally to discretionary funding, while freezing the maximum Pell grant for the next decade. That essentially means that $870 in the maximum grant would have to be funded by increased discretionary funds or the maximum be cut from $5,730 to $4,860.

Additionally, the Ryan Budget proposes to cut Non Discretionary Defense (NDD) funding by $761 billion below the current caps, and more than doubles down on the sequester cuts by shifting all of the cuts scheduled for defense starting in FY16 to NDD funding. In FY 16, the NDD cap would be cut from $492 billion to $450 billion, an 8.5% cut.  By the end of the ten year window, NDD would be cut by 22%.

The nearly 100-page blueprint is likely be the last formal budget proposal from Ryan, the Republican chairman of the Budget Committee who wants to move to the more powerful Ways and Means Committee next year.

The House Budget Committee is expected to mark up the legislation Wednesday in a session expected to last well into the night.

The Office of Federal Affairs is continuing to review the legislation and will provide updates as the measure changes in the legislative process.