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Appropriations Process Stalled

Congress is beginning to wrap up their work in preparation for their August break. Later this week, House members are expected to leave until after Labor Day. The Senate is scheduled to be in session next week, but they could decide to wrap up sooner. Regardless, lawmakers will be leaving DC with no real movement toward resolving the bipartisan gulf over sequestration.

House and Senate appropriation committees have completed work on all 12 spending bills in their respective chambers. That is an accomplishment that has escaped Congress in recent years. But despite the committees’ efforts to advance appropriations bills through the committee process, House and Senate leaders have had a tough time bringing those bills to the floor for consideration due to partisan positions that collectively ended the process in mid-July.

When lawmakers return to the Capital after Labor Day, they will have only about three legislative weeks before the October 1st start to the federal fiscal year to reach a funding agreement that would stave off a partial government shutdown. In other words, timing is tight, the stakes are high, and appropriators are frustrated. There is no doubt that a continuing resolution (CR) will be necessary but yet there is no agreement on how long a CR will run, or whether or not we will see the two sides come together to negotiate a budget deal like the one we saw in 2012 to stave off sequestration.

House Looking at a Continuing Resolution

House Speaker John Boehner (R-OH) today said that Congress will need a continuing resolution before the end of the FY2015, which is September 30th.

There are three types of federal appropriations measures. Regular appropriations bills provide most of the funding that is provided in all appropriations measures for a fiscal year and must be enacted by October 1, the beginning of the fiscal year. These are the 12 regular appropriations bills which have been passing the House and Senate up until earlier this month.  If regular bills are not enacted by the beginning of the new fiscal year, Congress adopts continuing resolutions (CR) to continue funding, generally until regular bills are enacted. Supplemental appropriations bills provide additional appropriations to become available during a fiscal year.

The House has been largely stalled in moving appropriations bills forward since the FY2015 Interior Appropriations bill issues with the Confederate flag. It has largely been speculated that Congress will move towards a CR, which is a very commonly used funding device, and then begin working on a larger omnibus appropriations bill — a bill that combines many of the appropriations bills into one package. Omnibus appropriations bills are typically moved as straight up or down votes, at or near to the Christmas holidays.

While Boehner gave no indication as to how long a CR would be crafted or what it would look like, his mention is the first admission by senior Congressional leadership that a CR will happen.

What We’re Reading This Week, July 20-24

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

Aliens – Stephen Hawking and Russian entrepreneur and VC, Yuri Milner, have announced a $100 million effort to search for alien life called Breakthrough Listen. Recent discoveries have shown the building blocks to life exist in abundance elsewhere in the universe. Milner’s also footing the whole bill. Read more at the Washington Post. 

Trump Unifying – Presidential candidate appears to be a great party unifier and uniter of political parties…because neither one wants to be associated with him. Read more in the Washington Post.

Nixon and Elvis

Questionable GI Benefits – VA Secretary Robert McDonald has been asked by several Senators to investigate allegations that a number of questionable unaccredited educational institutions have received GI Bill benefits despite federal regulations to prevent it. The Center for Investigative Reporting recently published a piece that said veterans were using the benefit to attend unaccredited sex, Bible and massage schools. The VA did not respond to a weekend request for comment. The request from the senators comes as veterans who attended for-profit Corinthian Colleges that collapsed seek to have their GI Bill benefits reset, and as the Senate begins to focus more on reauthorizing the Higher Education Act. Read the report here.

Paying More for College – Student loans and debt may be dominating higher education policy debates, but six in 10 families didn’t borrow to pay for college in 2015, and parents’ out-of-pocket spending surpassed scholarships and grants as the top source of funds for the first time since 2010. However, an annual Sallie Mae report found that when families did borrow, the student took on nearly three-fourths of the debt. Read the Sallie Mae report here. 

Are You In? Or Out? – As yet another presidential hopeful throws their name into contention this week, there are now a significant number of people running for the presidential nomination, last count 16. So many are running that Fox News has said they will only invite the top 10 candidates in the polls. How do you calculate the top 10 is giving some candidates concerns. Read more in the New York Times. 

Harper Lee – While Harper Lee’s recent publication, Go Set a Watchman, has been controversial (and heartbreaking) for a number of reasons, the book has spurred great conversation about the duality and conflicts of Atticus Finch. How do you resolve the Atticus of To Kill a Mockingbird with the Atticus that joins the Citizens Council in Watchman? Politico has a long form story on why, yes, this conflict makes sense for a white man living in the South of the 1930s. 

Making Lemonade – Lindsay Graham makes a video on how to destroy a cell phone. 

Senate Finance Passes Tax Extenders

The Senate Finance Committee marked up and passed a tax extenders package today by a vote of 23-3. The bill , among many other proposed tax breaks, would extend the teacher tax credit, the above the line deduction for qualified tuition and expenses, and the research tax deduction all through the end of 2016. A number of education-related amendments have been filed in advance of the markup. One, from Sen. Richard Burr (R-N.C.), would extend the teacher tax credit to qualifying homeschool families. Another would repeal the tax imposed on student loans forgiven due to repayment under the income-based repayment program. Neither of these amendments passed.

While this measure passed the Senate Finance Committee fairly easily, its path forward remains unclear.

House Ways and Means Committee Chair Paul Ryan has stated that his committee will take up tax extenders in the Fall. Chairman Ryan has been adamant about addressing the shortfalls prior to December to ensure certainty for business and taxpayers.

Read a summary of the Senate package here. 

 

Senate Hearing on HEA

The Senate will be holding a hearing on the HEA this Wednesday entitled Reauthorizing the Higher Education Act: Exploring Barriers and Opportunities within Innovation. The hearing will be held at 10 am on Wednesday, July 22.

Watch the hearing here.