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Congress Passes $1.8 Trillion FY 2016 Spending and Tax Extension Bill

This morning the House & Senate approved a $1.8 trillion fiscal year 2016 omnibus spending bill, averting a government shutdown and funding the federal establishment through September 2016. The measure passed with a 316-113 vote in the House followed by a 65-33 vote in the Senate. President Obama is said to sign the measure into law imminently. We encourage you to review our FY2016 Omnibus Analysis. Please let Christy Gullion, UW Director of Federal Relations (cgullion@uw.edu), or Sarah Castro, UW Associate Director of Federal Relations (smcastro@uw.edu), know if you have questions.

 

As noted in a previous post, highlights of the bill include:

  • The National Institutes of Health received $32 billion, $2 billion above current levels.
  • The National Science Foundation is funded at $7.5 billion, an increase of $119 million, and directorates such as Social and Behavioral Sciences were funded at FY 2015 levels.
  • NASA is funded at $19.3 billion, an increase of $1.3 billion above the fiscal year 2015 enacted level to advance America’s leadership in space and science. Within this total, $4 billion is provided for Exploration, including funding to keep the Orion Multi-Purpose Crew Vehicle and Space Launch System on schedule, and $5.6 billion is provided for science programs.
  • Defense research was funded at $69.8 billion for research, development, testing, and evaluation of new defense technologies, which was minor increases.
  • The maximum Pell Grant award is increased to $5,915.
  • Title VI International Education programs were held at FY 2015 levels.
  • NOAA received $5.8 billion, which is $325 million above the fiscal year 2015 enacted level. Funding was included for the National Weather Service to provide critical weather information to the public, and investments in new and existing weather satellites that are essential to maintain and improve weather forecasts, including the Polar Follow On program.
  • Maximum Pell Grant award to $5,915, funded by a combination of discretionary and mandatory funds.

 

In addition to omnibus appropriations, the bill includes a $680 million tax package, which makes permanent several tax provisions that were previously subject to extensions including the research and experimentation tax credit and several charitable donation tax breaks. More information on this can be found here.

Short Term CR through December 16

The House Appropriations Committee on Wednesday released a five-day continuing resolution (CR) that would keep federal agencies operative through midnight on December 16th. The stopgap would provide omnibus negotiators with additional time to strike a deal on a $1.1 trillion agreement to close out fiscal 2016. Both chambers must pass the resolution by the end of the day Friday (December 11th) to extend current budget authority and avoid government shutdown.

It appears that December 16th was the shortest possible extension needed to finish appropriations work that’s still left, but the tight turnaround time runs the risk of another stopgap being needed.

Congress is scheduled to adjourn for the year on December 18th. While lawmakers say funding levels for agencies have largely been settled, a tax extenders package and “40 to 42” policy riders are still being negotiated, including language related to campaign finance, labor regulations, abortion, treatment of Syrian refuges, and environmental regulations.

Members will be in session tomorrow, but not over the weekend. Depending on the progress of negotiations, members will convene on Monday or Tuesday.

Read more from The Hill and Roll Call.

 

December 11th Deadline Looming

The House and Senate return to Washington, DC today after a weeklong break for the Thanksgiving holiday. They are expected to be in session for approximately 15 days, giving them limited time to finish work on an several critical pieces of legislation, including an omnibus bill before the current continuing resolution expires on December 11th. But that omnibus is still mired down by issues such as addressing any last-minute funding requests for security after the Paris terrorist attack, resolving disputes on potential policy riders such as the treatment of Syrian refugees, and potentially blocking funding for Planned Parenthood.

All of these issues and others related to EPA regulations and water rights have some DC insiders speculating that lawmakers will miss the December 11th deadline and instead approve another short term CR – possibly running through March 2016 or even the end of the fiscal year on September 30th.

Before the Thanksgiving recess, congressional aides insisted that they would finish the omnibus by December 11th. The next few days may determine whether appropriators can still meet that deadline.

Read more here.

 

FY 2016 Clock is Ticking

Congress is in recess this week for the Thanksgiving holiday, but not all is quiet in Washington, DC. On Tuesday, French President Francois Hollande is visiting the White House in the wake of the Paris Attacks. At the Capitol, the clock is still ticking for deadlines on reauthorizing highway and transit programs and an FY 2016 omnibus spending bill. The coming days will be critical in determining whether appropriators will be able to strike another $1.1 trillion government-wide spending agreement. But national security concerns following last week’s Paris attacks and disagreement over whether or not to allow Syrian refugees to enter the U.S. add another major layer of complication to the negotiations. Lawmakers will return from their Thanksgiving break with just two weeks to reach a deal before the December 11th deadline when the current continuing resolution runs out. Read more here.

The refugee dispute is only one of a host of controversial policy provisions, known as riders that could doom speedy passage of the omnibus bill. Among the contentious riders yet to be resolved is a fight over whether to strip funding from Planned Parenthood, a measure to block EPA water regulations, the implementation of the Dodd-Frank financial overhaul, and e-cigarette regulations. Even if the fights over riders can be resolved, funding levels remain in doubt, particularly after the Paris attack, which could trigger new spending requests for defense, homeland security or intelligence.

But this week will be quiet with most action taking place behind the scenes as appropriators continue to negotiate a final bill.

Senate Passes Budget Around 3 am

The Senate cleared a bipartisan budget and debt limit accord early Friday morning which would send the legislation to the President’s desk. Roughly 72 hours after it was unveiled and buying roughly two years of relative budgetary stability after months of partisan sniping on spending, the Senate passed HR1314 shortly after 3 am. The House passed the measure Wednesday evening.

Just after  3 am, the upper chamber passed the deal by a vote of 64-35, roughly 90 minutes after voting to cut off debate on the legislation. Eighteen Republicans voted in favor of final passage, including Senate GOP Leadership, while 35 Republicans voted against the measure.  Forty-four Democrats and two independent senators who conference with Democrats backed the package. See the vote total here.

The budget deal would raise discretionary spending caps for defense and nondefense accounts by $80 billion above the sequester level for fiscal 2016 and fiscal 2017 and suspend the debt limit until March 15, 2017. The increased discretionary spending is offset with cuts to various entitlement programs and revenue raisers.

The President announced his support earlier this week.