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CR Released, Should Pass This Week

The continuing resolution (CR) was released late last night. The text of the legislation is here. The big news is that the CR will fund the federal government through April 28, 2017. The legislation maintains the current budget cap level of $1.07 trillion put into place under the Budget Control Act of 2011, which results in an across the board cut of .1901%.

The House is expected to vote on the measure on Thursday and the Senate is expected to follow suit on Friday. 

Big Items of Note: 

The Defense Overseas Contingency Fund, which is not subject to budget caps, was increased by $8 billion in response to the Administration’s request to combat ISIS. Of note, the Administration asked for $11.6 billion.  The CR increase does include RDT&E funding that is related to the Global War on Terrorism and the Joint Improvised Explosive Device Defeat Fund received a $87M increase.  The funding will go to both defense-specific funding to combat ISIS as well as non-military spending — such as Humanitarian Assistance, State Department and USAID operations funding, Economic and Stabilization Assistance, and Embassy security funding — to combat ISIS. 

The CR does add funding in FY 2017 to accounts created and highlighted in the Cures bill for opioids, NIH and FDA initiatives, and Flint drinking water. The Cures funding is fully offset per the authorizing bill. Specifically, the totals for the year amount to: 

  • $500 million in grants to states to fight opioid abuse, 
  • $352 for the new NIH Innovations Fund (as created by Cures), 
  • $20 million directed to the FDA Innovation account (as created by cures), and  
  • $50 million is directed to HHS to address health issues relating to a lead-tainted drinking water system in Michigan. 

There is a provision to address President-elect Trump’s Secretary of Defense nominee, Ret. USMC Gen. James. Mattis, who left service three years ago. Under a 1947 federal statute, Secretaries of Defense must be civilians or retired from service for at least 7 years to be eligible to serve; its an effort to assure civilian control of the military. This requirement has been waived once in 1950 for General George C. Marshall. 

Other Items of Note:

There is additional funding to allow continued operations and data collection for continuation of data for weather warnings, including forecasts of severe weather events from NOAA’s Joint Polar Satellite System.

There is a provision allowing additional funding, if needed, for the housing and care of Unaccompanied Alien Children (UAC) after February 1, 2017. The number of UACs has been spiking as of late and was an issue for the FY2017 appropriations cycle. Of note, this funding comes from the Labor-H appropriations bill. 

Additional updates will be posted on our blog. 

House Considers NDAA Today

The House will debate and vote on the compromise National Defense Authorization Act today, likely before noon.

The measure is expected to pass, though it is unclear by how wide a margin. The White House hasn’t indicated where President Barack Obama will come down on the final bill, though it leaves out many of the most controversial provisions that drew Democratic opposition and a veto threat from the administration.

The compromise NDAA ditched the contentious riders, including provisions on the greater sage grouse and workplace protections based on sexual orientation. It’s also expected to include $9 billion on top of the Pentagon’s budget request, incorporating the administration’s $5.8 billion war supplemental request as well as funding to cover military readiness shortfalls.

For FY2017, the NDAA conference agreement would authorize Department of Defense (DoD) Basic Research (6.1) at $2.142 billion (FY16 is $2.309 billion), Science and Technology (6.1-6.3) at $12.489 billion (FY16 is $13.251 billion), and Defense Advanced Research Projects Agency (DARPA) at $2.957 billion (FY16 is $2.891 billion).

The NDAA conference also would extend the Small Business Innovation Research (SBIR) program and Small Business Technology Transfer (STTR) program until FY2022 (Sec. 1834). The bill would not make any changes to the SBIR/STTR set-aside amounts.

The conference agreement would establish the Manufacturing Engineering Education program (Sec.215), to award grants to industry, non-profits, universities or consortiums of such groups, to enhance or establish new programs in manufacturing engineering education. The Manufacturing Engineering Education program language is a slightly modified version of the Manufacturing Universities language originally included in the Senate-passed FY2017 NDAA bill.

 The FY2017 NDAA report, summary fact sheet and joint explanatory statement are posted here.

The Senate is expected to consider the bill next week.

Lame Duck Priorities

Congress is scheduled to return next week for a Lame Duck session of Congress and many items still remain on the 2016 agenda before Trump takes office, including wrapping up the 11 remaining FY 2017 spending bills and a 21st Century Cures bill that both Majority Leader McConnell and Speaker Ryan said was a priority for passage in the Lame Duck session.  While President-elect Trump won’t be signing any bills in the lame duck, he will influence decisions on how to wrap up the 114th Congress.

While it is too soon to tell whether or not Congress will try to address its remaining legislative business in a Lame Duck session of Congress, or wait until President-elect Trump is sworn in on January 20 and Republicans control both the House and the Senate, a few things are fairly certain, dealing with the FY 2017 and the 21st Century Cures bill will be the Lame Duck priories.

FY 2017, Finishing the Fiscal Year

The current Continuing Resolution keeping the federal government open expires on December 9.  Prior to the elections, Republican leaders expressed support for passing a series of “minibuses” that would group appropriations bills together, while Democrats were leaning toward an omnibus bill that would include all of the remaining FY 2017 bills.  House Appropriations Committee Chair Rogers (R-KY) has said no decisions have been made yet on the process, but as of today, the House Appropriations Committee has put conference negotiations on hold pending further analysis.

However, Majority Leader Mitch McConnell said this week that funding the government remains a top priority heading into the lame duck and that lawmakers will wrap up spending bills this year rather than punt to the next Congress via another stopgap spending bill. McConnell said he plans to talk to House Speaker Paul Ryan and President Obama about how the FY 2017 bills could be enacted, but gave little in the way of specifics on how this would be accomplished.

That plan, though, was criticized by conservative House Freedom Caucus prior to the election as the Caucus continues to pushing for a continuing resolution to extend government funding into the next calendar year so that congressional Republicans can negotiate a spending package with Trump rather than Obama.

Must Pass? Should Pass? Legislation

Additionally, outstanding legislative priorities include the 21st Century Cures medical innovation package and mental health reform.  The Cures package is a particular priority of House Energy and Commerce Committee Chair Upton (R-MI), who is term limited as Chair. Upton has been vocal on having a package on the House floor next week when the House returned to session.  However, it’s unclear if the measure will be considered. Prior to the election, Democrats voiced wanting the mandatory funding for the National Institutes of Health in the bill, but also expressed desires to insert prescription drug controls and concerns about offsets. In addition, bringing a large mandatory spending bill to the floor may not help Ryan keep his speakership with his contentious caucus.

Several other issues remain before Congress, including the FY2017 National Defense Authorization Act (NDAA), which has seen some hiccups this year, but must pass annually. Also in limbo is the Water Resources and Development Act (WRDA), which passed the House and Senate respectively and is currently being conferenced.

Trade

The 12-nation Trans-Pacific Partnership agreement, which was a priority for The Obama Administration in the Lame Duck, will not be considered, according to House Ways and Means Chairman Kevin Brady (R-TX).  It will remain ”on hold” until President-elect Donald Trump decides whether to take action on the agreement in the next Congress.

SCOTUS

Supreme Court Justice Nominee Merrick Garland will not receive a confirmation hearing or a vote.  With the Senate remaining in Republican control, it will wait for President Trump to submit a new nominee for the Supreme Court after he is sworn in on January 20, 2017.

At this juncture, there are two likely scenarios for Congress to deal with these issues, and the outlook will be clearer in the coming days.

Clear the Decks

Under this scenario, President-elect Trump would indicate to Congress that he would like them to complete as much business as possible in the remaining days of the 114th Congress.  This would free up both President Trump, and the 115th Congress to focus on his priorities during the first 100 days of his Administration, as well as big-picture items such as a Supreme Court nomination and the debt-ceiling (which could be reached as early as March 2017).  This path would require some degree of cooperation from both the Obama Administration and the conservative element of the Republican conference.

Punting

The second scenario would be for Congress to push off all but must-do issues until after President-Elect Trump is sworn in.  Because Republicans would control both chambers of Congress and the White House, they would, in theory, have the ability to include more of their priorities in these bills before passage.  The risk in this scenario is that it bogs down the new Administration during their first days in office, at which time they will want to unveil new policy ideas, and when they have the most political capital to see those ideas to fruition.

 

White House Issues Veto Threat of Senate’s NDAA

In a Statement of Administration Policy issued by the Office of Management and Budget, the White House issued a veto threat on the Senate NDAA and contends the legislation would “hinder” the administration from executing defense and foreign policy.

“Specifically, the bill attempts to micromanage DoD by impeding the department’s ability to respond to changing circumstances, directing overly prescriptive organizational changes, preventing the closure of Guantanamo and limiting U.S. engagement with Cuba, and includes provisions that set an arbitrary limit on the size of the president’s National Security Council staff,” the White House said.

The veto threat comes during the second full day of Senate floor debate on the annual policy bill.

Last month, the White House similarly threatened a veto of the House version of the bill.

Senate Approps Committee Approves FY2017 Defense and DHS

The Senate Appropriations Committee approved on Thursday two FY2017 spending bills in a pair of 30-0 votes — one for Defense and the other for Homeland Security

The draft Defense measure would provide $574.6 billion in discretionary funds, while the Homeland Security total would be $41.2 billion.