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CR Adopted, Government Funded… At Least Through March 14

Just after midnight Saturday, the Senate cleared by a vote of 85 to 11 the continuing resolution that had been approved by the House just a few hours earlier, sending the measure to The White House for the President’s signature.  The legislative package keeps the government funded through March 14, meaning that Congress will need to tackle the question of how to fund the remainder of FY2025 once again the first part of next year.

Now, It’s the Senate’s Turn

After a frantic day of discussions, just after 6 PM ET, the House was finally able to pass a continuing resolution to keep the government funded past midnight.  The House leadership brought the bill up under the suspension of the rules, meaning that it needed the support of two-thirds of those Members who voted.  It was eventually agreed to by a vote of 366 to 34, with one Member voting “Present.”

This version of the continuing resolution is a much smaller package than the one that was defeated earlier this week.  Although there are other provisions, its main contents are:  1) an extension of government funding through March 14, 2025; 2) funding for disaster relief; 3) sections related to a set of health-care programs; and 4) one-year extensions of programs funded by the Farm Bill.

It is now up to the Senate to clear the bill and to send it to President Biden’s desk before the clock strikes midnight.

Is there a Plan C?

A slimmed-down version of a legislative package to keep the federal lights on past midnight tonight was defeated last night on the House floor.  While this bill was much shorter than the original continuing resolution, it also contained a provision that threw a new wrinkle into the debate:  an increase in the debt ceiling through early January 2027.  Ultimately, when the legislation was brought to the floor, it was defeated 174-235, with one abstention.

The bill was brought up for a vote under “suspension of the rules,” meaning that it would have required a two-thirds of the votes to pass.  The bill was opposed by almost all Democrats and 38 Republicans bucked their leadership and the President-Elect.

While conversations are still on-going, no alternative has emerged as of this morning.  

Please keep an eye on this space for updates.

Ok, what now? Will we or won’t we shut down?

The three-month Continuing Resolution (CR) was unveiled late Tuesday. After its contents were digested throughout the day yesterday, the dynamics around the CR passing changed drastically last night. A government shutdown starting at midnight Saturday is now a very real possibility.  While a shutdown is possible, it is important to keep in mind that only certain parts and functions of the federal government would be shut down and federal employees will be furloughed. Many parts of the academic research community will feel the impact of the shutdown.

A host of basic federal functions and services will be temporarily shut down, with federal employees furloughed.  For example, while National Parks may remain open (they have been closed during shutdowns), they will be devoid of staff and services.  Visa processing will cease and State Department employees in consulates overseas will not be able to do any screening.

Many of the functions related to the federal research enterprise, such as the processing and reviewing of grant applications, will be temporarily unavailable. Significant portions of the funding agencies’ staff will be furloughed, and they will be legally prohibited from performing any of their duties, so all work products including emails, phone calls, etc. are prohibited.  Questions related to proposals, applications, and other issues will not be answered during the shutdown.

Activities deemed essential will continue, however, even during a shutdown.  Employees of the Transportation Security Administration will continue to screen passengers at airports. Members of the military will continue to be on duty and serve, but those who manage shipbuilding will be furloughed.  The Social Security Administration will continue to process monthly checks to seniors.  However, none of these essential workers will be paid for their efforts during the shutdown.

Even at the agencies forced to shut down many of their functions, a number of employees and activities are classified as “essential” employees, meaning that they would still be working and functioning throughout the shutdown to maintain the agencies’ critical services.  In the academic context, examples include continuing to support labs with animal subjects.  Agencies prepare for shutdown scenarios and each agency updates its policies regarding employees and functions that are considered “essential.”  Each agency is prepared for this latest potential shutdown.

As a result of change in law after the last shutdown, each federal employee is guaranteed back-pay from their furlough.  Unfortunately, federal contractors have no such guarantee.

Please continue to check this space for updates.

 

Congress Unveils Spending Bill

After much anticipation, Congressional leaders finally unveiled the Further Continuing Appropriations and Disaster Relief Supplemental Appropriations Act, 2025, a Continuing Resolution (CR) that would stave off the government shutdown slated for Friday night. The 1,547-page legislative package would fund the government through March 14, 2025.

Speaker Mike Johnson (R-LA) is seeking to pass the bill through the House Rules Committee, which would allow it to then pass through the full House with just a simple majority. A number of prominent GOP members, however, have cast doubt on its ability to pass through the committee. If that is the case, Johnson would have to bring up the CR for consideration on the House floor under a procedure called Suspension of the Rules, which would require a two-thirds majority for passage. This would require Johnson to rely heavily on House Democrats to pass the bill.

While the most significant purpose of this CR is the continuation of government funding through March 2025, the legislation contains a vast array of important riders and add-ons. The additional provisions are known as a Christmas tree provisions.

The bill overhauls the pharmacy benefit managing process, provides $100 billion in disaster relief aid and $30 billion in aid to farmers, and contains language restricting U.S. capital investment in China. Also notable are provisions that set aside billions of dollars for the Navy to purchase more nuclear-powered Virginia-class attack submarines and the first pay raise for Members of Congress in 15 years.

Some of these provisions have garnered criticism from both Democrats and Republicans. The biggest hurdle to passage appears to be GOP hardliners, such as Reps. Chip Roy and Michael Cloud both of Texas, who have taken issue with the limited amount of time Members will have to consider the bill, as well as the lack of measures to offset spending. Elon Musk has also chimed in, posting on his website X that “this bill should not pass, any member of the House or Senate who votes for this outrageous spending bill deserved to be voted out in 2 years!”

Some more mainstream members have also voiced opposition to the “Christmas tree bill,” with, Rep. Nicole Malliotakis (R-NY) arguing that Republican leadership “should be fighting to deliver wins for our members, not the Democrats.”

Some House Democrats have also signaled their intention to oppose the bill, such as Rep. Jared Golden (D-ME). In a statement put out by his office, Golden cited the congressional pay raise, as well as the addition of more generous healthcare benefits for members, as his rationale for not backing the bill.

Faced with heavy opposition, Johnson’s leadership team is reportedly considering a plan B. The backup plan would drop the $100 billion in disaster aid and the $30 billion in farmer aid, among many other attachments, and focus on passing a “clean CR,” and then dealing with the other issues in the new year.

Whichever path Johnson and fellow leaders choose to take, they will need to act quickly. If the CR is able to pass the House, it will still need to be considered and voted on by the Senate, all before midnight on Friday.