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White House Signals Concerns with FY16 House’s Financial Services and Senate’s Defense Funding Bills

Continuing its theme, the White House, though the White House’s Office of Management and Budget (OMB) Director Shaun Donovan, signaled concerns with two more Congressional appropriations bills. Donovan wrote the House Appropriators about the FY16 Financial Services and General Government appropriations bill and Senate Appropriators about the FY16 Defense appropriations bill.

The White House warned that the House’s FY16 Financial Services spending bill, scheduled to be marked up today, would jeopardize the independence of financial regulators, cost billions of dollars in lost tax revenue and hinder implementation of the 2010 health care overhaul.

Similar to previous warnings about the House and Senate NDAA bills and the House’s FY16 Defense spending bill,  Donovan warned that, “The president’s senior advisers would recommend he veto any legislation that implements the current Republican budget framework.” According to the OMB, the Senate’s legislation would implement a “gimmick” by shifting money to war accounts, the Overseas Contingency Operations (OCO) funding,  from core budget lines. He also criticized the Senate Appropriations measure’s proposal for “unnecessary” funding of a National Guard and Reserve Component Equipment Account. ​

The White House and Congressional Democrats have been very vocal on a need for Congress to collectively come to the table and cut another deal, similar to the one Senator Patty Murray (D-WA) and Congressman Paul Ryan (R-WI) cut in 2013 in 2013 (Murray-Ryan), to avoid the cuts as required by the Budget Control Act of 2011(sequester). The House is crafting all bills, legislative and appropriations, under the financial caps and resrtaints set by the Budget Control Act, which was binding until 2021.

Read the the letter to House Appropriators about the House’s FY16 Financial Services bill here. 

Read the letter to Senate Appropriators about the Senate’s FY16 Defense bill here. 

OMB Signals Concerns on House FY16 Interior Bill

Due to be marked up today, the White House signaled concerns to House Appropriators about their $30.2 billion FY16 Interior-Environment spending bill. Office of Management and Budget (OMB)  Director Shaun Donovan criticized the measure for the proposed cuts to the US Environmental Protection Agency (EPA) as well as riders to block implementation of various air and water rules.

The Interior-Environment appropriations bill funds the EPA, U.S. Forest Service, Interior Department, the Smithsonian, and Indian Health Service. Donovan criticized the measure for its “misplaced priorities” and funding levels that fall 9 percent below the President’s request as well as cuts to the Indian Health Service and Interior’s climate resilience, land management and conservation efforts.

This letter from Donovan is not the first effort the Administration has used to signal displeasure with House Appropriations bills. Donovan wrote similar letter about the House CJS measure, and the White House has issued veto threats on the NDAA and House Defense appropriations bills.

Read the OMB letter to House Appropriations here. 

White House Issues Veto Threat on House FY16 Defense Approps Bill

The White House issued a Statement of Administrative Policy (SAP) recommending a veto of the House’s FY16 Defense appropriations bill today. The House is considering the FY16 Defense appropriations on the Floor currently. This is not the first veto threat for a House appropriations bill this year. The SAP cites the inappropriate use of the Overseas Contingency Operating fund as a primary driver in the decision. That concern was previously raised during the House NDAA consideration.

Read the SAP here. 

COMPETES Passes the House

After an interesting debate, the House narrowly passed HR 1806 – the America COMPETES Reauthorization of 2016 but a vote of 217-205. The bill was largely along party line vote with all Democrats and 23 Republicans voting against the measure. Earlier this week, the White House issued a veto threat.

As previously discussed, the bill authorizes science programs across the federal government, boosts funding for the National Science Foundation and the Energy Department’s Science office while cutting funds for climate and renewable energy research. It also bars DOE research from being used in any federal regulations. Only six of the twelve amendments stood for floor votes when debate ended and most of the Democratic measures failed. Most amendments passed via voice vote, including a Democratic amendment to reauthorize DOE’s Energy Innovation Hubs. Later, however, efforts to scrap language requiring NSF grants to include a “national interest” justification, and Science Committee ranking member Eddie Bernice Johnson’s attempt to rewrite the bill entirely, failed.

A Democratic amendment that sought to continue allowing DOE to produce drop-in biofuels with the Pentagon failed more narrowly than the overall bill passed: 208-215.

Other amendments that passed included:

  • A measure from Rep. Mike Kelly (R-PA) that would add $5 million for manufacturing partnerships by decreasing funding for the Office of Energy Efficiency and Renewable Energy by the same amount
  • An amendment from Rep. Sheila Jackson Lee (D-TX) creating workshops to instruct teachers in robotics and other STEM-related learning.
  • An amendment by Rep. Morgan Griffith (R-VA) that would allow House and Senate leaders to appoint members to several science advisory boards in the bill.

Earlier in the day, the House also passed HR 880 – the American Research and Competitiveness Act of 2015, which would permanently extend the R&D tax credit.

Both measures now move to the Senate.

OMB Letter of Concern to House Appropriators about FY16 CJS

As this process gets ever more interesting, the Office of Management and Budget (OMB) Director Sean Donovan sent a letter to House Appropriations Committee’s Chairman Hal Rogers (R-KY) and Ranking Member Nita Lowey (D-NY) about the draft FY16 CJS Appropriations bill. The letter expressed strong concern on the funding levels for science and innovation due to the adherence of the committee to the Sequestration framework levels. The Committee is expected to mark up the bill this morning.

The letter says in part:

“Its shortsighted funding cuts undermine both fiscal responsibility and economic competitiveness, since they would prevent investments that both reduce future costs to taxpayers and inform business decision making, improve weather forecasting, support business expansion into new markets, and spur development of innovative technologies.”

Read the letter here.