Debt Limit Battle on the Horizon

Posted on July 20, 2015

Both the House and Senate are out today, but return to the Capitol Tuesday with just two weeks left before the House is scheduled to take its summer recess. The Senate will follow suit in three weeks – unless they too decide to call it good and leave town with the House. In that meantime, leaders must reconcile the differing plans between the chambers for reauthorizing highway and transit funds. And both chambers have hearings slated around the review of the Iran nuclear deal.

But the issue we are watching most closely is the pending debt limit situation. The US Treasury estimates that extraordinary measures to stay financially viable will be exhausted in early December and there is a very good chance that November will be the month in which debt ceiling concerns start to escalate in the markets.

Republicans have begun drawing up their wish list in exchange for raising the debt limit this year. But if they decide to insist on conditions for raising the government’s nearly exhausted borrowing ceiling, they will face strong opposition from Democrats and the White House. And to further complicate the issue, the debt limit debate could get mixed up with whatever deal likely will still need to be reached on FY2016 spending.

The debt limit must be addressed or the government will default on its legal obligations, which the Treasury Department warns would result in a financial crisis.

The last time Republicans forced trade offs for their support to raise the debt ceiling was in 2011 when House Speaker John Boehner (R-OH) drove the successful demand to cut spending dollar-for-dollar for any debt limit increase. The result was the Budget Control Act (PL 112025), which ended up making $2.1 trillion in spending cuts in exchange for a $2.1 trillion debt limit increase. But since then, Congress has suspended the debt limit three times, effectively raising the borrowing ceiling, and the GOP has been unable to force spending cuts in exchange for those increases.

While December seems like a long way off, it will be here before you know it. Raising the debt limit is difficult enough in the current political climate, but having it wrapped around the FY2016 appropriations process and reauthorization of highway and transit programs makes a difficult situation even more challenging.

Appropriations Process Breaks Down Over the Confederate Flag

Posted on July 14, 2015July 14, 2015

Congressional Republicans and Democrats are already are blaming each other for causing the next government shutdown, which won’t even happen for another 80 days (October 1^st). That may seem like plenty of time for lawmakers to work through their differences and approve appropriations bills to keep the federal government running, but the news from Capitol Hill today is not to expect any more appropriations bills to make it through the House chamber until Republicans and Democrats work out issues on the Confederate flag. That’s right. The Confederate flag.

Things aren’t much better in the Senate where Democrats have threatened to block all spending bills until Republicans agree to a deal to lift the spending caps and end the threat of sequestration (across-the-board cuts).

So far the House has approved six of their twelve annual spending bills, with the remaining six bills approved by committee and awaiting floor action. They were likely on track to approve all twelve bills before the end of September before the Confederate flag flap. The Senate has not been moving quite as quickly, and is now at a dead stop. They not approved any of their twelve bills, and have moved only five through committee. Proposed bills and report language can be accessed here.

White House Memo on Science Priorities for FY2017

Posted on July 10, 2015July 17, 2015

The White House’s Director of the Office of Management and Budget, Shaun Donovan, and OSTP Director, John Holdren, sent their annual joint FY2017 priorities memo to the science agency heads.

The memo urges agency leaders to take the priorities into consideration as they begin to prepare their FY2017 budget proposals for OMB. Per the memo, “Agency proposals aligned with multi-agency R&D priorities and demonstrating interagency coordination are more likely to be prioritized in FY2017 Budget deliberations.”

Read the memorandum here.

House Pulls FY16 Interior Bill

Posted on July 9, 2015July 9, 2015

The House has pulled their FY16 Interior Appropriations bill amid controversy of a Confederate flag amendment. The House has previously considered and passed three amendments restricting funding for federal lands displaying the Confederate flag. Due to Republican concerns these restrictions might impose, an additional amendment was proposed to allow funding on federally owned park land displaying the Confederate flag. The crux of the issue: Civil War battle fields, the bulk of which are now federal park land and have memorials and cemeteries headstones with the flag on them. The bill did not have the votes to pass the House without the new amendment that allowed display of the Confederate flag on federal lands in some instances. Further, it was unclear that the bill had the votes to pass if the amendment was not included.

The bill was first considered but not finished before the July 4th Recess. It is unclear how the bill will or can move forward.

OMB Writes Letter of Concern about Senate FY16 CJS

Posted on June 25, 2015

The White House Office of Management and Budget Director Shaun Donovan has issued another letter on the FY16 appropriations proposal currently working their way though Congress. Today, Director Donovan’s letter was addressed to the Senate and expressed concern over the Senate’s FY16 CJS spending bill. The letter outlines concerns about underfunding the important investments in a diverse set of agencies and programs (from science agencies like NSF and NOAA to law enforcement as well as the census) and includes highly problematic ideological riders. Over all the letter echo previously seen concerns about Congress crafting these bills in accordance to sequestration funding limitations, while not working on a FY16 budget that would supplant the sequester.

Specically, the letter outlines concerns for maintaining our nation’s ability and capacity at science-focused agencies.

The bill cuts the President’s Budget by $245 million, or 64 percent, for the National Oceanic and Atmospheric Administration’s (NOAA) next generation ofpolar-orbiting weather satellites which puts the continuity of the polar weather observations at substantial risk.
The bill underfunds the National Science Foundation, providing $380 million, or 5 percent, less than the President’s Budget for an agency that carries a major share of the Federal Government’s responsibility to support basic research in science and engineering-research that produces the seed com on which future innovation depends, but by its nature is too uncertain in ultimate application to attract private-sector funding. Compared to the President’s Budget, the bill would lead to about 700 fewer research grants, affecting about 9,100 researchers, technicians, and students.

Read the OMB letter here.