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FY 2017 Omnibus Released

At 2 am last night, House and Senate appropriators released the FY 2017 Omnibus, which  comprises the 11 unfinished FY 2017 appropriations bills, providing fresh spending instructions for nearly every corner of the federal government and formally appropriates more than $1 trillion in discretionary spending for FY 2017, in keeping with the spending limits agreed to last year. A high level overview is below.

Overall, the FY 2017 Omnibus provides an annualized total of $1.07 trillion in base spending for FY 2017, or $1.16 trillion including Overseas Contingency Operations (OCO) funding. Beyond the top line, and widely reported, the FY 2017 Omnibus includes a $2 billion increase to NIH or a 6.2 percent increase over current levels. The deal includes an extra $1.5 billion to enhance border security, but there is no money to begin construction of Trump’s wall along the Mexican border.  Additionally, appropriators absolutely rejected about $18 billion in cuts to domestic discretionary programs that Trump had suggested to avoid further expanding the deficit in his FY 2017 supplemental request. To boost funding for the military and border security, lawmakers increased by $15 billion the OCO spending, which does not count against statutory budget cap.

While the budget numbers will look big on paper, they will have less meaning in the real world because most of the money to be formally appropriated has already been spent, since there are only five months remaining in the current FY 2017, which runs through Sept. 30.

The most recent stopgap (H.J.Res. 99), enacted Friday, keeps the government open through May 5. The Omnibus legislation could see a House could vote as soon as Wednesday. Once the Omnibus passes the House, it will move on to the Senate.

The legislation did resolve a significant amount of big political sticking points, including:

  • provide a permanent fix for a depleted health fund needed by thousands of retired coal miners;
  • shore up Puerto Rico’s troubled Medicaid program with an extra $295 million;
  • provide $2 billion in disaster relief for California, West Virginia, Louisiana and North Carolina;
  • combat wildfires with an extra $407 million;
  • $68 million to reimburse local law enforcement agencies for the costs of protecting Trump and his family, predominantly in Manhattan;
  • provide $100 million to combat opioid abuse; and
  • preserve federal funding for Planned Parenthood.

 


 

Labor-H

                Health Provisions

  • NIH — $34.1 billion (+$2.0 million)
    • Fogarty Center receives $72,213,000 (+$1.7 million)
  • AHRQ received: $324,000,000 (Slight cut of ~$8 million)
  • SAMSHA — $3.6 billion (+ $130.5 million above the previous Administration’s budget request. Includes an increase of $150 million for treatment of opioid and heroin programs)
  • CDC – $7.3 billion (+ $22 million above the fiscal year 2016 enacted level. This includes $6.3 billion in appropriated funds, as well as $891 million in transfers from the Prevention and Public Health Fund.)
    • NIOSH– $335.2M (about + $4M)
  • ERC Program $29 million (+$500 thousand)
  • AFF Program $25.5 million (+$500 thousand)
    • Chronic Disease Prevention — $1.112 billion ($777.6 million in discretionary, $338.0 million in transfers)
  • Prevention research centers — $25.5 M
  • Worker Health will receive “not less than FY16 levels”
  • HRSA — $6.4 billion for HRSA (+ $77 million)
    • Health Professions Title VII – $301M (- , but language below in dentistry
    • Nursing Title VIII — $229 million (level)
  • National Institute of Nursing Research receives $150,273,000 for nursing research.

Report language of note:

NIH

“Funding from the 21st Century Cures Act was previously appropriated for fiscal year 2017 by section 194 of the Continuing Appropriations Act, 2017. Per the authorization, $300,000,000 is transferred to the National Cancer Institute for cancer research and $52,000,000 will be allocated from the NIH Innovation Fund, in this agreement reflected in the Office of the Director, for the Precision Medicine Initiative cohort ($40,000,000), the BRAIN Initiative ($10,000,000), and regenerative medicine research ($2,000,000).”

 

Education Provisions

  • IES — $605.267 million (- $13 million)
  • GEAR Up — $339.7 million (+$17 million)
  • TRIO — $950 million (+$50 million)
  • Pell
    •  Maximum award will be increased to $5,935, funded by a combination of discretionary and mandatory funds
    • Year-round Pell restored
    • $1.3 B in surplus reallocated
  • Title VI international– $72.2 million (flat)

 

Report language of note:

TRIO:

There is concern that the Department has rejected and made ineligible for review several fiscal year 2017 grant applications based on minor formatting issues. The Department is strongly encouraged to provide flexibility to such applicants by permitting submission of a corrected application. The Department should include consistent formatting requirements across all TRIO competitions in the future.”

 

Defense

Research Accounts:

6.1:  $2.28 Billion (level)

6.2:  $5.30 billion (+$30 million)

 

USDA

AFRI — $375 million (+$25 million)

McIntire-Stennis — $33.9 million (level)

 

CJS

  • NSF– $7.4 overall
    • MREFC– $209.0 Million (+$8.7 million, $121.9 million for 3 research vessels)
  • NOAA
    •  Integrated Ocean Observing System– $30.7 million (+$1.2 million)
  • Adopts IOOS language from both bills (will need to go through again) and encourages use of HF radars
    • OAR CI’s– $60.0 M (level)
    • Sea Grant– $63.0 M (- $10.0 M)
  • NASA
    • Space Grant– $40.0 M (level)
    • Earth Science– $1.92 B (level)

E&W

  • EERE — $761 million (+$40 million)
    • Water Power Energy R&D $84 million (+$14 million)
  • ARPA-E — $276 million (+$15 million)
  • Office of Science – $5.4 billion (+$40 million)
    • Fusion — $330 million (+$7 million)

 

Interior

  • EPA Science and Technology — $91.9 million (-$9 million)
    The bill provides $713,823,000 to be partially offset by a $7,350,000 rescission for a net discretionary appropriation of$706,473,000. The bill transfers $15,496,000 from the Hazardous Substance Superfund account to this account.

    • Chemical safety and sustainability – $ 126.9 million (-$9 million)
    • National priorities — $4.1 million (-$10 million, but over the FY2017 request of $0)
    • Safe and sustainable water resources — $106.2 million (-$1.1 million)
    • Sustainable and healthy communities — $ 134.3 million (-$5.6 million)
  • USGS
    • CRU’s– $17.4 million (level)
    • Earthquake Early Warning– $10.2 M (+ $2 M)
  • NEH– $149.8 million (+$1.9 million)

 

 

This Week in Congress, April 24-28

Here is a selection of committee meetings happening this week.

 

TUESDAY, APRIL 25

 

Senate Judiciary

INTELLECTUAL PROPERTY AND INNOVATION

April 25, 10 a.m., 226 Dirksen Bldg.

Full Committee Hearing

 

 

WEDNESDAY, APRIL 26

 

Senate Commerce, Science & Transportation

FREE ENTERPRISE IN SPACE

April 26, 10 a.m., 253 Russell Bldg.

Subcommittee Hearing

 

Senate Environment & Public Works

WOTUS RULE REVIEW

April 26, 10 a.m., 406 Dirksen Bldg.

Full Committee Hearing

 

Senate Health, Education, Labor & Pensions

PENDING LEGISLATION/GOTTLIEB NOMINATION

April 26, 9:30 a.m., 430 Dirksen Bldg.

Full Committee Markup

 

Senate Homeland Security & Governmental Affairs

FEDERAL PROGRAMS WASTE AND FRAUD

April 26, 10 a.m., 342 Dirksen Bldg.

Full Committee Hearing

 

Senate Special Aging

AGING WITHOUT COMMUNITY

April 26, 1:30 p.m., 562 Dirksen Bldg.

Full Committee Hearing

 

House Oversight & Government Reform

UNFUNDED MANDATES

April 26, 10 a.m., 2154 Rayburn Bldg.

Subcommittee Hearing

 

House Science, Space & Technology

SPACE LIFE SEARCH

April 26, 10 a.m., 2318 Rayburn Bldg.

Full Committee Hearing

 

House Transportation & Infrastructure

HAZARDOUS MATERIAL TRANSPORT INFRASTRUCTURE

April 26, 10 a.m., 2167 Rayburn Bldg.

Subcommittee Hearing

 

 

THURSDAY, APRIL 27

 

Senate Banking, Housing & Urban Affairs

ASSESSING RUSSIA SANCTIONS

April 27, 10 a.m., 538 Dirksen Bldg.

Full Committee Hearing

 

House Education & the Workforce

STRENGTHENING SCHOOL ACCREDITATION

April 27, 10 a.m., 2175 Rayburn Bldg.

Full Committee Hearing

 

House Oversight & Government Reform

BORDER WALL SECURITY

April 27, 10 a.m., 2154 Rayburn Bldg.

Subcommittee Hearing

Shut Down Show Down?

Congress is back this week after a two week Passover/Easter Recess, and the first order of business is reaching some agreement to keep the government open beyond 12:01 am Saturday morning. Tensions over funding have risen during the recess as the Administration has begun a hard push for more defense money and a significant amount ($1.4 billion) to begin work on a wall along the Mexican border. Initially, OMB Director Mulvaney had insinuated that the lack of funding for the Administrations priorities (in both the FY2017 supplemental request and the FY2018 skinny budget) would result in a veto. In recent days, however, Administration officials generally have stopped short of insinuating the President would veto any FY2017 measure not including these funds.

Democrats in the House and Senate have been very vocal that including any funding for a border wall is a nonstarter. Mulvaney has suggested that a path forward with Democrats would be including funding for insurance subsidies under Obamacare that are used to reduce the cost of co-payments and deductibles, which is something the Trump Administration has vowed to cut.

Realistically, Republican leadership in the House and Senate know that no continuing resolution (CR) or omnibus for FY2017 can pass either body without some Democratic support. Bottom line: Democratic cooperation is needed in the Senate for any spending deal to pass because 60 votes are required to advance legislation and Republicans control only 52 seats.

As negotiations continue to drag on, the more likely a short term is likely to move, simply to give Congress more time to negotiate a broader package or figure out a resolution for FY2017.

Additionally, House Republicans are working with the White House to try to revive a replacement plan for Obamacare as negotiations continue on a compromise that might win a majority vote. However, Members return to Capitol Hill this week with no sign of an imminent deal that would overcome objections from both moderate and conservative camps,

What’s driving this push? The Trump Administration’s first 100 days in office winds up on Saturday. Traditionally, the first 100 days of a new administration is the most active and influential (CNN has a good overview). While the Trump Administration has not been as successful legislatively as it would have liked, there have been successes in rolling back Obama Administration regulations and confirming a Supreme Court nominee. That said, Trump Administration officials would like a big win prior to Saturday and pushing some version of Obamacare repeal and a FY2017 are the two options being pushed right now.

Meanwhile, the debt ceiling is likely to make a summer appearance. Technically, the federal government exceeded its spending authority on March 15th. The Treasury has been using so-called extraordinary measures to extend the government’s borrowing capacity for several more months. That capacity should last until “sometime this fall” before Congress would need to raise the debt limit again, according to an estimate from the Congressional Budget Office. Treasury Secretary Steve Mnuchin has privately accelerated the timeframe for Congress to address the issue and raise the debt ceiling to some time this summer. This move would coincide with tax reform provisions (or perhaps still Obamacare repeal) that Congress would consider.

Stay tuned.

 

OMB Director Mulvaney Pushing for Sanctuary City Language in FY2017

OMB Director Mick Mulvaney is pushing House lawmakers to include language in the FY2017 omnibus appropriations bill to restrict federal funding grants for cities that do not enforce federal immigration policies. The goal is to bring the House Freedom Caucus on board with a government funding bill.

Such a provision, known as a rider, would put the already delicate negotiations under further strain, as Congressional Republicans already struggle to deal with the Administration’s supplemental request to begin building a border wall. A rider prohibiting federal funds from going to sanctuary cities would guarantee zero Democratic support.  

Despite recent changes to the Senate rules regarding confirming Supreme Court Justices, the Senate will need 60 votes to move forward with any appropriations bill and Senate Republicans are only 52 votes. 

When Congress returns on April 25th from its two-week recess for Passover and Easter, it will have 4 legislative days to pass some vehicle (an omnibus or another CR) for FY2017 funding or risk a shutdown.

Stay tuned.

This week in Congress, April 3-7

Here is a selection of committee meetings happening this week.

 

Tuesday, April 4

 

Senate Appropriations

NATIONAL WATER HAZARDS AND VULNERABILITIES

April 4, 2:30 p.m., 192 Dirksen Bldg.

Subcommittee Hearing

 

Senate Armed Services

CYBER THREATS TO THE U.S.

April 4, 2:30 p.m., SVC-217, U.S. Capitol

Subcommittee Hearing

 

Senate Energy & Natural Resources

ENERGY DELIVERY SYSTEM CYBERSECURITY

April 4, 10 a.m., 366 Dirksen Bldg. Updated

Full Committee Hearing

 

Senate Homeland Security & Governmental Affairs

SOUTHWEST BORDER FENCING

April 4, 9:30 a.m., 342 Dirksen Bldg.

Full Committee Hearing

 

House Agriculture

FARM BILL

April 4, 10 a.m., 1300 Longworth Bldg.

Subcommittee Hearing

 

House Appropriations

JOB TRAINING PROGRAMS/FEDERAL SUPPORT

April 4, 10 a.m., 2358-C Rayburn Bldg.

Subcommittee Hearing

 

House Energy & Commerce

PUBLIC-PRIVATE HEALTHCARE CYBERSECURITY

April 4, 10:15 a.m., 2322 Rayburn Bldg.

Subcommittee Hearing

 

House Judiciary

CAMPUS FIRST AMENDMENT PROTECTIONS

April 4, 11:30 a.m., 2237 Rayburn Bldg.

Subcommittee Hearing

 

 

Wednesday, April 5

 

GOTTLIEB NOMINATION

April 5, 10 a.m., 430 Dirksen Bldg.

Full Committee Hearing

 

House Armed Services

CONTINUING RESOLUTION CONSEQUENCES

April 5, 10 a.m., 2118 Rayburn Bldg.

Full Committee Hearing