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Category: Legislation

Three Week Deal…Some Ancillary Fixes

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As part of the three week deal signed into law on Saturday, the measure (H.J.Res. 28) would reopen the nine Cabinet departments and several independent agencies closed during the shutdown through February 15. Beyond funding these agencies, there were other significant items included in this agreement.

Back Pay

Federal employees will receive back pay as part of the agreement. Most employees should be expect to receive their two missed paychecks by the end of the week. Government contractors may or may not receive missed pay depending on the nature of their contract. States or grantees that helped fill the gap during the shutdown can expect to be reimbursed.

Conference Committee

As part of the agreement, the House and Senate will convene a conference committee to work out a deal on FY 2019 Homeland Security spending, including the fate of the Administration’s demand for $5.7 billion for border wall construction, which is spending Congressional Democrats have long opposed.

Pay-Go

Under the Pay-As-You-Go Act of 2010 (PL 111-139), the White House Office of Management and Budget (OMB)  is supposed to issue a report within 14 days after the end of a Congressional session outlining whether enacted laws added to the deficit over five or 10 years. If so, then the OMB has to implement across-the-board cuts to any programs not exempt from the statute, to eliminate the excess.

Routinely, since the 2010 law was enacted, Congress has simply decreed that certain pricey provisions will not be added. For example, Congress removed the impact of the $1.5 trillion, 10-year tax cuts from the OMB’s calculations as part the 2017 stopgap appropriations bill both were signed into law the same day.

The stopgap spending bill includes provisions delaying roughly $800 million in spending cuts, mainly (about 90 percent) impacting Medicare. Because Congress did not act in time, the OMB should have had to implement the cuts, but the shutdown delayed implementation.

That Pay-Go “debit” will pop up again next year unless Congress eliminates it once again on any FY 2019 final package. A House-passed, $271.8 billion package (HR 648) of six appropriations measures would have wipe out the scorecard’s existing debit, so only future legislation increasing deficits would count for the OMB’s calculations.

 

But Will He Sign It?

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Following the Senate’s lead from last week, the House cleared yesterday the massive spending package that combines the annual Labor-HHS-Education and Defense spending bills by a vote of 361-61.  The Senate approved it by a vote of 93 to 7.  The bill also includes a continuing resolution (CR) that would fund through December 7 the other agencies and programs whose funding bills are not signed into law by next Monday.

Earlier this week, there had been some uncertainty about whether the president would actually sign the package because it did not contain the funding his wants for a border wall along the Southern border.  It now appears that he will indeed sign it.

The CR could now apply to a larger number of bills– seven– than originally hoped for.  House and Senate negotiators have spent the last several weeks trying to reach a compromise on a combined package of four more appropriations measures and it remains uncertain at this point whether an agreement can be reached and signed into law before the House recesses on Friday.  Among the bills under discussion are those that would fund the departments of Interior and Agriculture.

First Spending Bills to be Cleared by Friday?

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The conference report for the package that contains the first three appropriations bills of FY2019– Energy and Water, Legislative Branch, and Military Construction-Veterans Affairs– was quickly adopted by the Senate yesterday by a vote of 92 to 5.  An agreement between the House and Senate negotiators was reached on it earlier this week.

The House is scheduled to take up the measure later today and is expected to clear it by Friday, clearing it for the President’s signature.  As noted above, these three bills, if signed into law, would represent the first spending bills approved for FY2019, which starts on Oct 1.

On a related note, House and Senate conferees are scheduled to formally meet today on two other sets of spending bills.  The first combines the Labor-Health and Human Services-Education and Defense bills and second pulls together the Interior, Agriculture, Transportation-Housing, and Financial Services bills.

Progress as Deadline on Spending Bills Approaches?

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Even as most of the national media is focused on the Supreme Court confirmation hearings as Congress returns to work this week, we could see progress on the appropriations front.  The next fiscal year, FY2019, starts October 1 and none of the 12 spending bills have been signed into law so far.

Although hurdles still remain, it appears that House and Senate negotiators are making progress on a package of three bills– made up of the Energy and Water Development, Military Construction-Veterans Affairs, and Legislative Branch measures– as they get ready to formally meet as a conference committee later today.  At the same time, on a separate track, there appears to be movement on a second package of bills, which contains the Labor-Health and Human Services and Defense bills, which are the two largest spending measures.

Both chambers have agreed to their respective versions of the three-bill package and negotiators must hash out the differences.

On the other hand, while the defense bill has been passed by both houses, only the Senate has been able to move on the Labor-HHS measure.  Because the House version of the latter bill is viewed by some as being much more controversial than the Senate version with respect to policy provisions contained in it, it will not be brought to the House floor for a vote.  Instead, the House agreed yesterday to go to conference with the Senate on the two-bill package without the full House having considered the Labor-HHS bill.  In addition, negotiations between the two sides have begun on the contours of a package.

Congressional leadership hopes to get these five bills signed into law before October 1.  The current thinking is that programs funded through spending bills not adopted by the start of FY2019 would be funded on a short-term basis through a continuing resolution until the other measures can be signed into law.