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Shutdown Averted… For Now?

Not quite at the literal 11th hour– but close to it– the federal government managed to avoid having to shut itself down last Saturday evening over the lack of funds to continue operating.  The dreaded government shutdown– something that most of Washington had been expecting for the past two weeks– was prevented at the end as a continuing resolution (CR) to keep the government funded through November 17 was adopted in both chambers on bipartisan votes and signed into law at the last minute.

There was plenty of drama building up to the last-minute, temporary, funding extension.  After the House Republican leadership finally acknowledged early Saturday that it did not have the votes within its conference to pass a bill with only Republican votes due to the recalcitrance of some of the the hard-right members, the Speaker sought to bring to the floor a CR that was relatively “clean.”  It extended government funding at this year’s current levels through November 17, extended the authority of the Federal Aviation Administration and the National Flood Insurance Program, and included $16 billion in emergency disaster relief.  It did not include, something that would prove to be an issue in the Senate later that day, additional funding for efforts in Ukraine.  The package that was being brought to the floor caught the House Democrats by surprise.

Ultimately, after a review of the package to ensure that there were no “poison pills” for their party in the legislation, all but one House Democrat joined a majority of the House Republicans in approving the measure.  Ninety House Republicans voted against the bill.

When the Senate took up the House-passed the bill shortly afterwards, progress was delayed because of the lack of additional funding for Ukraine.  After assurances from the Senate leadership that efforts would be made on this front, the hold on the legislation from Michael Bennet (D-CO) was released and the chamber adopted it 88 to 9.  It was signed into law by President Biden before the end of the evening.

The extension of government funding through November 17 buys, in theory, additional time for the lawmakers to actually finish additional parts of the annual appropriations process.  None of the 12 annual appropriations bills for FY2024 has been signed into law yet.

All of these activities related to the CR has ultimately led to another set of dramatic activities currently playing out in the House this week, which we discuss in the next post.

 

Sen. Appropriations Committee Finishes Its Work, Clears Last 4 Bills

By clearing the last four bills yesterday, the Senate Appropriations Committee has reported out all 12 spending bills for a fiscal year for the first time in five years.  The committee reported out favorably yesterday the following FY2024 spending measures:  Labor-HHS-Education; Defense; Interior and the Environment; and Homeland Security.  Unlike the situation in the House, where the leadership had to pull the Agriculture spending bill from a floor vote because it lacked enough support even among the Republicans, the committee process in the Senate yesterday was very bipartisan.  The Interior bill passed by a vote of 28 – 0, the Defense bill was approved 27 – 1, the Labor-HHS bill was adopted 26 – 2, and the vote was 24 – 4 on the Homeland Security legislation.  

Labor-HHS-Education

HEALTH AND HUMAN SERVICES

  • NIH

The Senate legislation would fund the National Institutes of Health at a total of $47.8 billion, an increase of $943 million above the current level.  The total includes $1.5 billion for ARPA-H, which represents level funding under the Senate version of the bill.  Within the NIH, the bill would increase, among other programs, mental health and Alzheimer’s research by $100 million each and while cancer research would see an increase of $60 million.

  • Title VII Health Professions and Title VIII Nursing Programs

The legislation proposes to fund the Title VII Health Professions programs at a total of $529 million, an increase of $20 million.

At the same time, the Title VIII Nursing programs would see a total of $302.5 million, a $2-million increase over this year.

DEPARTMENT OF EDUCATION

  • Student Aid and Higher Education
    • Pell Grant– The maximum award would increase by $250 to $7,645
    • SEOG– $900 million (a decrease of $10 million)
    • Federal Work Study– $1.22 billion (a decrease of $10 million)
    • International Education– $85.7 million (level funded)
    • TRIO– $1.19 billion (level funded)
    • GEAR UP– $338 million (level funded)
    • GAANN– $23.5 million (level funded)
  • Institute of Education Sciences (IES)
    • IES would be funded at $793 million, a cut of $14.5 million

Interior

USGS

  • Climate Adaptation Science Centers– $63.1 million (level funded)
  • ShakeAlert– $29.6 million (level funded)

NATIONAL ENDOWMENT FOR THE HUMANITIES

  • $207 million (level funded)

Defense

Under the committee-approved bill, defense basic research would be see an increase of 10.5 percent for a total of $3.22 billion.

  • Army basic research:  $672.5 million (an increase of 5.8%)
  • Navy basic research:  $793.5 million (an increase of 15.2%)
  • Air Force basic research:  $711.9 million (an increase of 16.3%)
  • Defense-wide basic research:  $862.3 million (a decrease of 7.0%)
  • DARPA:  $4.1 billion (0.7% increase)

Both chambers are now in recess until after Labor Day. 

What Will They Come Up With Next?

After turning back approximately a dozen amendments during the floor debate last night, the Senate adopted by a 63 to 36 vote the debt limit bill, clearing it for the President’s signature later today.  The Treasury Department had been warning that the nation would lose its ability to pay all of its bills next Monday.  The House cleared the bill earlier this week.  

While the fight over the debt limit has become much more partisan and political recently, this year’s fight represents the closest the nation has come to actually defaulting on its debts.

Almost There…

After much back-and-forth and a final round of negotiations last weekend, the White House and House Speaker Kevin McCarthy (R-CA) came to an agreement on a debt ceiling package earlier this week.   Yesterday evening, the House passed the legislation in a bipartisan manner, by a vote of 314 – 117.  The Senate must now take it up.

While its details are still being digested, the package contains the following provisions, among others:

  • a suspension of the debt limit until January 1, 2025 
  • essentially a freeze in discretionary spending for both FY2024 and FY2025 relative to FY2023, the current fiscal year
    • as part of the spending limits for the next two years, the legislation sets separate spending caps on “security” and “non-security” programs for the next two fiscal years
  • a mandatory cut of one percent in discretionary spending if all 12 annual appropriations are not signed into law by January 1 each fiscal year for the next two years
  • prohibition on further extensions of the student loan repayment deferrals– repayments would restart by early September

The legislation also includes a package of recissions, the details of which are still being assessed.  We will share additional information about them as they come to light.

Not surprisingly, there was drama in the House before the floor vote, as some members of the hard-right wing of the House Republicans blasted the deal.  There were questions about whether, procedurally, McCarthy had enough support to even bring the bill to the floor.  

As noted above, the bill now goes to the Senate, where both Majority Leader Charles Schumer (D-NY) and Minority Leader Mitch McConnell (R-KY) urged support for it among their colleagues.

Read more about the developments here, here, and here