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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.

 

 

 

 

Trump Administration Higher Ed Plans

As of late Wednesday night, Republicans have officially maintained a majority in the House. Republicans will maintain control over House and gain the White House and Senate.

On the campaign trail higher education had considerable focus. President-elect Trump has suggested plans to eliminate the Department of Education. In his previous term, Trump proposed merging the Departments of Education and Labor, but Congress ultimately did not enact the idea.

Echoing the House Republican’s efforts over the last year, Trump’s plans to curb woke ideology in higher education will likely remain a top priority for the Administration. While Trump is limited in his ability to immediately cut off funds to universities, there are a number of other avenues the President may use to push back against DEI initiatives and other programs that he has deemed Marxist and leftist.

Trump has suggested using the military to crackdown on student protests on campuses and using civil-rights laws to challenge the teaching of critical race theory. Another tool that the Trump Administration has said they will consider using is the accreditation system. Many are predicting he may shift some of the responsibilities of accreditors to the Department of Education, where he could exert more influence.

Other plans floated by the incoming Trump Administration include increasing the tax on university endowments, ending President Biden’s student-debt forgiveness program, and using Title IX to ban transgender athletes from competing in women’s sports.

Read more here and here.

Shutdown Averted… For Now?

Not quite at the literal 11th hour– but close to it– the federal government managed to avoid having to shut itself down last Saturday evening over the lack of funds to continue operating.  The dreaded government shutdown– something that most of Washington had been expecting for the past two weeks– was prevented at the end as a continuing resolution (CR) to keep the government funded through November 17 was adopted in both chambers on bipartisan votes and signed into law at the last minute.

There was plenty of drama building up to the last-minute, temporary, funding extension.  After the House Republican leadership finally acknowledged early Saturday that it did not have the votes within its conference to pass a bill with only Republican votes due to the recalcitrance of some of the the hard-right members, the Speaker sought to bring to the floor a CR that was relatively “clean.”  It extended government funding at this year’s current levels through November 17, extended the authority of the Federal Aviation Administration and the National Flood Insurance Program, and included $16 billion in emergency disaster relief.  It did not include, something that would prove to be an issue in the Senate later that day, additional funding for efforts in Ukraine.  The package that was being brought to the floor caught the House Democrats by surprise.

Ultimately, after a review of the package to ensure that there were no “poison pills” for their party in the legislation, all but one House Democrat joined a majority of the House Republicans in approving the measure.  Ninety House Republicans voted against the bill.

When the Senate took up the House-passed the bill shortly afterwards, progress was delayed because of the lack of additional funding for Ukraine.  After assurances from the Senate leadership that efforts would be made on this front, the hold on the legislation from Michael Bennet (D-CO) was released and the chamber adopted it 88 to 9.  It was signed into law by President Biden before the end of the evening.

The extension of government funding through November 17 buys, in theory, additional time for the lawmakers to actually finish additional parts of the annual appropriations process.  None of the 12 annual appropriations bills for FY2024 has been signed into law yet.

All of these activities related to the CR has ultimately led to another set of dramatic activities currently playing out in the House this week, which we discuss in the next post.

 

Sen. Appropriations Committee Finishes Its Work, Clears Last 4 Bills

By clearing the last four bills yesterday, the Senate Appropriations Committee has reported out all 12 spending bills for a fiscal year for the first time in five years.  The committee reported out favorably yesterday the following FY2024 spending measures:  Labor-HHS-Education; Defense; Interior and the Environment; and Homeland Security.  Unlike the situation in the House, where the leadership had to pull the Agriculture spending bill from a floor vote because it lacked enough support even among the Republicans, the committee process in the Senate yesterday was very bipartisan.  The Interior bill passed by a vote of 28 – 0, the Defense bill was approved 27 – 1, the Labor-HHS bill was adopted 26 – 2, and the vote was 24 – 4 on the Homeland Security legislation.  

Labor-HHS-Education

HEALTH AND HUMAN SERVICES

  • NIH

The Senate legislation would fund the National Institutes of Health at a total of $47.8 billion, an increase of $943 million above the current level.  The total includes $1.5 billion for ARPA-H, which represents level funding under the Senate version of the bill.  Within the NIH, the bill would increase, among other programs, mental health and Alzheimer’s research by $100 million each and while cancer research would see an increase of $60 million.

  • Title VII Health Professions and Title VIII Nursing Programs

The legislation proposes to fund the Title VII Health Professions programs at a total of $529 million, an increase of $20 million.

At the same time, the Title VIII Nursing programs would see a total of $302.5 million, a $2-million increase over this year.

DEPARTMENT OF EDUCATION

  • Student Aid and Higher Education
    • Pell Grant– The maximum award would increase by $250 to $7,645
    • SEOG– $900 million (a decrease of $10 million)
    • Federal Work Study– $1.22 billion (a decrease of $10 million)
    • International Education– $85.7 million (level funded)
    • TRIO– $1.19 billion (level funded)
    • GEAR UP– $338 million (level funded)
    • GAANN– $23.5 million (level funded)
  • Institute of Education Sciences (IES)
    • IES would be funded at $793 million, a cut of $14.5 million

Interior

USGS

  • Climate Adaptation Science Centers– $63.1 million (level funded)
  • ShakeAlert– $29.6 million (level funded)

NATIONAL ENDOWMENT FOR THE HUMANITIES

  • $207 million (level funded)

Defense

Under the committee-approved bill, defense basic research would be see an increase of 10.5 percent for a total of $3.22 billion.

  • Army basic research:  $672.5 million (an increase of 5.8%)
  • Navy basic research:  $793.5 million (an increase of 15.2%)
  • Air Force basic research:  $711.9 million (an increase of 16.3%)
  • Defense-wide basic research:  $862.3 million (a decrease of 7.0%)
  • DARPA:  $4.1 billion (0.7% increase)

Both chambers are now in recess until after Labor Day. 

FY24 Appropriations Process Is Underway: President’s Budget Request is Released

Earlier this month, the FY2024 President’s Budget Request (PBR) was released outlining the administration’s priorities for the coming fiscal year. The overall request is self-described as a blueprint to build on the past two years to “grow the economy from the bottom up and middle out by investing in America, lowering costs for families, protecting and strengthening Medicare and Social Security, and reducing the deficit by nearly $3 trillion over the next decade”. 

The FY24 PBR included:   

  • $8,215 per Pell Grant award (an $820 increase over FY23)  
  • $21 billion in discretionary spending for CHIPS & Science-authorized activities including $1.2 billion for the Directorate of Technology Innovation and Partnerships (TIP)  
  • $48.26 billion for NIH (an increase of 1.7% over FY23)  
  • $2.5 billion for ARPA-H (a $1 billion increase over FY23)  
  • $27.2 billion for NASA (a 7.1% increase over FY23), and  
  • $11.3 billion for NSF (an 18.6% increase over FY23 enacted level of $9.5 billion)  

Now the House and Senate will review the request and vote on a Budget Resolution that decides on topline numbers for discretionary funding. Here is where things could get tricky as the new divided Congress will likely have trouble coming to an agreement. 

Check out a more complete list of programs and accounts on our updated appropriations tracker, including the FY24 budget request numbers, here. We will continue to add to this once more budget justifications are released and as the appropriations process continues.