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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.

Senate Approves Budget Deal, Sends to President to Sign

Just after 3:00am Eastern, the Senate approved the two-year budget deal that the House agreed to on Wednesday without changes. With the deal headed to Obama’s desk — where he’s expected to sign it — lawmakers will now turn their attention to passing either 12 individual spending bills or one large omnibus bill.

House Approves Budget Deal

The House on Wednesday passed a two-year budget package that includes a suspension of the debt ceiling by a vote of 266-167. As has become custom, the measure passed with minimal Republican support: 187 Democrats voted for the measure but only 79 Republicans did. The measure now moves to the Senate, which could take it up as early as tomorrow. The budget measure (HR 1314) would raise discretionary spending caps by $80 billion for defense and domestic spending in both 2016 and 2017, splitting the amount evenly between the two categories.

The Senate is expected to take up the bill quickly, even though GOP presidential candidate and US Senator Rand Paul (R-KY) vowed to filibuster the legislation. Because the underlying legislation that’s being used as a vehicle for the deal has already passed the Senate, the measure could see a vote to cut off debate in the chamber tomorrow. Action could occur over the weekend, though votes might get pushed to Monday, just one day before Treasury Secretary Lew’s November 3rd debt ceiling deadline.