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News and updates

Congress and White House Agree on Budget Deal

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Late yesterday, a potential budget agreement between the White House and Congress was released. It would boost both defense and domestic spending over the budget caps for the next two years, and lift the nation’s debt limit through March 2017. If the deal holds, it would eliminate the dual threats of a government shutdown and a debt default until after the November 2016 elections.

The Bipartisan Budget Act of 2015, which has not yet been finalized, would boost defense and domestic spending above sequestration levels by $50 billion in the first year and $30 billion in the second year. In each year, there would be an additional $16 billion spent using the Overseas Contingency Operations fund. It would also curtail a huge increase in Medicare premiums due to go into effect in January for some beneficiaries.

Specifically, the deal would:

  • Increase discretionary spending by $80 billion above sequester-level spending caps (PL 112-25), with the increase split evenly between defense and nondefense programs. Sequester relief of $50 billion would be applied to FY 2016 and $30 billion for FY 2017.
  • Include an additional $32 billion in Overseas Contingency Operations war account funding, split evenly between FY 2016 and FY 2017. That means spending would rise by $66 billion above the caps for FY 2016 and $46 billion above the caps for FY 2017.
  • Draw offsets from other legislation, such as the House-passed 21st Century Cures medical research initiative (HR 6).
  • Raise the debt limit, giving Republicans the opportunity to sell the package as raising the debt limit in exchange for constraints on spending. Democrats will insist that it is a so-called clean debt limit increase that is attached to other legislation. Two aides said the government’s borrowing authority increase would likely last through March 2017.

While it is no grand bargain like the Murray-Ryan Budget Deal from 2013, it will eliminate the risk of sequester cuts and provide some certainty in federal budget and appropriations for research universities.

Debt Ceiling Plan Alludes House GOP

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The U.S. government is 12 calendar days – or 7 scheduled congressional work days – from reaching the debt limit without a clear plan of what to do. GOP leaders are so far refusing to advance a ‘clean’ debt ceiling bill that both President Obama and Democrats would support. The problem there is that the GOP leadership can’t find the 30 Republican votes they would need to join with all 188 Democrats to pass such a proposal.

One option under discussion is a proposal from the conservative Republican Study Committee, which would require House committees to produce legislation to enact spending cuts contained in the budget resolution – basically a series of cuts to equal the amount raised for the debt ceiling. This type of measure is unlikely to get a vote and even if it did, the President and Senate Democrats would block its passage. They are insisting on a ‘clean’ debt ceiling increase or suspension.

Treasury Secretary Jacob Lew has estimated that he would exhaust “extraordinary measures” to extend the government’s borrowing authority by November 3, 2015.

Read more from Politico here.

What We’re Reading This Week

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Here’s a selection of articles the Federal Relations team is reading this week.

Old Building$$ – While specifically about aging infrastructure on college campuses of agricultural research buildings, it really rings true about much of campus science-related infrastructure and the fact that deferred maintenance continues to be delayed. Read more at Ag Web. 

Back to the Future Technology likelihood (VOX).

Cracking Down on Accreditors – Before he leaves office, Education Secretary Arne Duncan is preparing to unveil a package of proposals aimed at forcing colleges that receive federal money to improve graduation rates and to provide students with job skills by focusing on the accrediting agencies. Read more at The Wall Street Journal.

Speaker Ryan?  – Rep. Paul Ryan (R-WI) announced that he will seek the position of Speaker, provided that he has the support of the whole House GOP caucus. The House Freedom Caucus is a little wary about his “demands” saying he’s setting them up for the blame if he ultimately doesn’t run. Read more at Politico. 

Deep Pockets – There are five races right now where the deep pockets, and self-funding, of the candidates could have a significant impact on who wins. Read more at Roll Call. 

Dress for Success – Looking the part is half the battle in DC. And that look is mainly Brooks BrothersHow do you look like a staffer and land that job? Read more at Roll Call.

October 21, 2015 – It was Back to the Future Day this week! How did the future stack up to the 1980s vision? Cars don’t fly but we do have holograms (not that eat you) and hoverboards (kinda, but they’re not the norm), but the Cubs might have a chance at winning the World Series!  Read more at the New York Times and at Vulture and at Vox.

To celebrate the release of the long awaited, much anticipated Star Wars: The Force Awakens trailer, here’s some background on how lightsabers get their different colors. Read it at Vox.