Funding for Veterans Private Health Care Delays Conference on FY19 Energy & Water, Military Construction-Veterans Affairs, Legislative Branch Minibus

Last week, conferees for the FY19 postponed their formal conference negotiations on the minibus package (H.R. 5895) that includes the FY19 Energy & Water, Military Construction-Veterans Affairs, and Legislative Branch spending bills. Conferees gave different reasons for the postponement. House Republicans said it was due to scheduling conflicts, but Senate Appropriations Committee Chairman Richard Shelby (R-AL) said the meeting was scuttled because there is more work to be done on funding for veterans’ health care (i.e. how to pay for a shortfall in the Veterans Choice Program).

Last month, the President signed into law a bill that consolidated the Veterans Choice program with several other existing community care programs. Prior to this consolidation, the Choice program was funded through mandatory spending (outside of the spending caps). After the consolidation, the consolidated programs are now designated as discretionary spending, and therefore subject to the annual budget caps. Since then, appropriators have been trying to figure out how to account for the additional spending needs of the program as the shift came after the FY19 budget caps were agreed upon.

The White House sent a letter to Congress this week cautioning lawmakers against raising the spending caps to accommodate shifts in funding for the Veterans Choice Program. Many Democrats and some Senate Republicans (including Senate Appropriations Committee Chairman Richard Shelby, R-AL) are insisting that $1.1B be spent beyond the agreed upon FY19 spending caps. The White House accused Democrats of using veterans funding as a ploy to raise the spending caps and demanded Congress fit the $1.1B additional needed in FY19 within the nondefense spending cap. House Budget Committee Chairman Steve Womack (R-AR) and Senate Budget Committee Chairman Michael Enzi (R-WY) sent a letter to Appropriators this week insisting that funding for these programs be kept within the topline $597B nondefense spending cap for FY19.

If the conflict isn’t resolved, it could lead to a stop-gap funding bill (continuing resolution) in September.

House Passed FY19 Interior-Environment and Financial Services Minibus

The House passed the FY19 Interior-Environment and Financial Services appropriations minibus on the House Floor this week by a vote of 217-199. The House has now passed six of its 12 annual spending bills.

Fifteen Republicans and all Democrats voted against the bill. Democrats opposed the package mostly because of Republican policy riders including those that would attempt to roll back environmental regulations. Democrats also voted against the bill because of procedural concerns, noting that the rule governing consideration of the measure allowed only a single hour for general debate on both bills combined. Republicans defended the process stating that it allowed for 87 amendments to be considered.

The White House issued a statement of administration policy expressing support for many of the measure’s provisions, but disagreed with funding levels for specific programs.

White House Statement of Administration Policy

https://www.whitehouse.gov/wp-content/uploads/2018/07/saphr6147h_20180718.pdf

House Appropriations Subcommittee Marks Up FY19 Homeland Security Bill

The House Homeland Security Appropriations Subcommittee marked up its $51.4B FY19 spending bill this week. This is an increase of $3.7B above the FY18 enacted level. The Senate FY19 Homeland Security spending bill provides $48.3B in funding, $3.1B less than the House bill. This is a large discrepancy that will have to be resolved in House-Senate conference talks.

The bill included $5B for the President’s proposed border wall more than three times the $1.6B the President requested in his FY19 budget request. The Senate allocated $1.6B for the wall in their bill. The President recently asked the GOP to appropriate $5B. House Appropriators would make the $5B available through FY23. It would provide for over 200 miles of new physical barrier construction.

The full committee will mark up the bill on Wednesday, July 25.

House FY19 Homeland Security Appropriations Bill Text

https://docs.house.gov/meetings/AP/AP15/20180719/108583/BILLS-115-SC-AP-FY2019-HSecurity-HomelandBill.pdf

House FY19 Homeland Security Appropriations Bill Summary

https://appropriations.house.gov/news/documentsingle.aspx?DocumentID=395381

Senate to Consider FY19 Agriculture, Financial Services, Interior-Environment, and Transportation-HUD Minibus Spending Bill Next Week

The Senate is considering taking up the House-passed FY19 Interior-Environment and Financial Services spending package on the floor next week and adding two more bills: Agriculture and Transportation-HUD.

Meanwhile, the White House sent two letters to Senate Appropriators this week outlining their concerns with the FY19 Labor HHS Education and Defense spending bills.

White House Letter to Senate Appropriators re: FY19 Labor HHS Education Bill

https://www.whitehouse.gov/wp-content/uploads/2018/07/Shelby_LHHS_Letter.pdf

White House Letter to Senate Appropriators re: FY19 Defense Bill

https://www.whitehouse.gov/wp-content/uploads/2018/07/Shelby_DOD_Letter_July162018.pdf

FY2019 Appropriations Bills Status

House and Senate Conference on MilCon-VA, E&W, Leg Branch Minibus

The House and Senate were scheduled to begin conference negotiations on the minibus package (H.R. 5895) that includes the FY19 Energy & Water, Military Construction-Veterans Affairs, and Legislative Branch spending bills, but postponed the meeting. Conferees gave different reasons for the postponement. House Republicans said it was due to scheduling conflicts. Senate Appropriations Committee Chairman Richard Shelby (R-AL) said the meeting was scuttled because there is more work to be done on funding for veterans’ health care (i.e. how to pay for a shortfall in the Veterans Choice Program). More work needs to be done behind the scenes before the conference committee can officially gather. Lawmakers are hoping to pass this minibus measure by September in an effort to show progress in fixing what many describe as a broken appropriations process.

The House appointed its conferees before the July 4^threcess, and the Senate signed off on its conferees this week. Conferees for the Senate are: Chairman Shelby (R-AL), Alexander (R-TN), Boozman (R-AR), Daines (R-MT), Lankford (R-OK), Ranking Member Leahy (D-VT), Feinstein (D-CA), Schatz (D-HI), and Murphy (D-CT). Conferees for the House are: Chairman Frelinghuysen (R-NJ), Simpson (R-ID), Carter (R-TX), Fortenberry (R-NE), Calvert (R-CA), Fleischmann (R-TN), Herrera Beutler (R-WA), Taylor (R-VA), Ranking Member Lowey (D-NY), Kaptur (D-OH), Wasserman Schultz (D-FL), Ryan (D-OH), and Visclosky (D-IN).

In related news, the Senate voted 94-5 this week to pass a motion by Sen. Bill Cassidy (R-LA) instructing conferees negotiating the appropriations bill to reauthorize the National Flood Insurance Program until January 31, 2019. The current authorization expires at the end of this month. Senators voting against the motion were Barrasso (R-WY), Enzi (R-WY), Flake (R-AZ), Lankford (R-OK), and Lee (R-UT).

House Floor Next Week

The full House of Representatives will consider the FY19 Interior-Environment and Financial Services appropriations bills on House floor next week. Members had until 10 am on Wednesday to file amendments to the bill – 160 were submitted for the Interior division of the bill and 76 were submitted for the Financial Services division of the bill.

House FY19 Labor HHS Education Appropriations Bill

The House Appropriations Committee marked up its $177.1B FY19 Labor HHS Education spending bill this week and passed it out of committee by a party line vote of 30-22. Before approving the bill, House appropriators added about $200M for programs ranging from school safety initiatives to substance abuse treatment in a manager’s package. Committee aides said the original draft bill was $200M below the amount it was allowed to spend for “advance appropriations” for FY2020. Advance appropriations are typically used for some education programs since the school year straddles two fiscal years; so $200M in proposed special education funds were shifted to FY2020.

The following amendments were adopted during full committee consideration:

• Cole –The amendment makes technical and non-controversial changes to the bill and report. The amendment was adopted on a voice vote.
• DeLauro –The amendment requires HHS to submit a plan to reunify immigrant children with their parents. The amendment was adopted on a voice vote.
• Cole –The amendment clarifies standards for family detention. The amendment would permit detention of families as a unit. The amendment was adopted on a vote of 31-21.
• Pingree– The amendment supports efforts to house immigrant children who are siblings together. The amendment was adopted on a voice vote.
• Aderholt –The amendment prohibits discrimination against a child welfare service provider based on the provider’s religious or moral beliefs. The amendment was adopted on a vote of 29-23.
• Clark– The amendment prohibits the administration of medication to unaccompanied alien children unless certain conditions deem such medication medically necessary. The amendment was adopted on a voice vote.
• Pocan –The amendment expresses a sense of Congress regarding family separations and the reunification of immigrant families. The amendment was adopted on a voice vote.
• Wasserman Schultz– The amendment requires an Inspector General report on family separation and reunification politics. The amendment was adopted on a voice vote.
• Ruppersberger– The amendment reaffirms HHS statutory responsibilities for unaccompanied alien children. The amendment was adopted on a voice vote.
• DeLauro– The amendment directs $10 million to fund mental health services for children separated from their families at the border. The amendment was adopted on a voice vote.
• Clark –The amendment prohibits funding for HHS to use questions of religion in the process of family reunification. The amendment was adopted on a voice vote.
• Clark– The amendment requires a report on pre-literate unaccompanied alien children. The amendment was adopted on a voice vote.
• Kaptur –The amendment adds language to protect personal and genetic information of children and adults if used in the process of family reunification. The amendment was adopted on a voice vote.
• Clark– The amendment requires a report on the mental health of separated children. The amendment was adopted on a voice vote.
• McCollum– The amendment allows for student loan deferment for those undergoing cancer treatment. The amendment was adopted on a voice vote.
• Kaptur –The amendment requires a report on prescription drug prices. The amendment was adopted on a vote of 26-25.
• Cole –The amendment adds language related to student loan collection, requiring performance metrics be met before certain Federal Student Aid agency employees can receive a performance bonus. The amendment was adopted on a voice vote.
• Price –The amendment changes language in the Managers Amendment and the Committee report to include reporting requirements related to the separation of children and the reunification process. The amendment was adopted on a voice vote.

House FY19 Labor HHS Education Appropriations Bill Text

https://docs.house.gov/meetings/AP/AP07/20180615/108431/BILLS-115-SC-AP-FY2019-LaborHHS-LaborBill.pdf

House FY19 Labor HHS Education Appropriations Report Language

https://appropriations.house.gov/uploadedfiles/labor_report.pdf 

House FY19 Labor HHS Education Appropriations Bill Summary

https://appropriations.house.gov/news/documentsingle.aspx?DocumentID=395353

OMB Letter to House Appropriators on FY19 Labor HHS Education Bill

https://www.whitehouse.gov/wp-content/uploads/2018/06/House-LHHS-Frelinghuysen.pdf

Senate

Senate Appropriations Committee Chairman Richard Shelby (R-AL) said this week that he hopes to bring the FY19 Defense appropriations bill to the Senate floor before the end of the month (likely the week of July 23). He added that the bill could be paired with the FY19 Labor HHS Education spending bill.

Office of Management and Budget Director Mick Mulvaney sent three separate letters to the Senate Appropriations Committee regarding their State Foreign Operations, Financial Services, and Homeland Security FY19 spending bills. While the letters point out concerns the administration has with specific funding levels included for programs in all three of the bills, they do not include a presidential veto threat. The Senate Appropriations Committee approved all three of these bills in full committee on June 21.

OMB Letter to Senate Appropriators re: State Foreign Operations Appropriations Bill

https://www.whitehouse.gov/wp-content/uploads/2018/07/Shelby_-SFA.pdf 

OMB Letter to Senate Appropriators re: Financial Services Appropriations Bill

https://www.whitehouse.gov/wp-content/uploads/2018/07/Shelby_FSGG.pdf

OMB Letter to Senate Appropriators re: Homeland Security Appropriations Bill

https://www.whitehouse.gov/wp-content/uploads/2018/07/Shelby_HomelandSecurity.pdf 

FY2019 Appropriations Bills Status