FY17 Appropriations Update – June 17, 2016

FY17 Appropriations

House

Floor

The House passed its $575.8B FY17 Department of Defense appropriations bill on Thursday by a vote of 282 to 138. Forty-eight Democrats voted for the measure while six Republicans (Amash, Duncan, Jones, Labrador, Massie, and Mulvaney) voted against it. The Office of Management and Budget (OMB) issued a Statement of Administration Policy stating that they would recommend that the President veto the measure in its current form over the redirection of Overseas Contingency Operations (OCO) funds as well as several policy provisions (BRAC, Guantanamo Bay Detainee restrictions, etc). The bill, as passed by the House, only provides enough OCO funding for war operations through April 30, 2017, which would require the new President to submit a request for supplemental appropriations soon after being sworn in to office. An amendment offered by Rep. Rick Mulvaney (R-SC) restricting OCO funding to actual war needs was rejected by a vote of 306 to 112.

White House Statement of Administration Policy:

https://www.whitehouse.gov/sites/default/files/omb/legislative/sap/114/saphr5293r_20160614.pdf

Homeland Security

The House Appropriations Committee was scheduled to mark up its $41.1B Homeland Security Appropriations bill this week, but postponed the markup after the shooting in Orlando. Committee members cited the potential need to consider additional resources the Department of Homeland Security might need to combat violent extremism in the wake of this tragedy. The new markup has been scheduled for 10:30 am on Wednesday, June 22.

House FY17 Homeland Security Appropriations Bill Text:

http://appropriations.house.gov/uploadedfiles/bills-114hr-fc-ap-fy2017-ap00-hsecurity.pdf

House FY17 Homeland Security Appropriations Report Language:

http://appropriations.house.gov/uploadedfiles/hrpt-114-hr-fy2017-hsecurity.pdf

Financial Services

The House Appropriations Committee marked up and reported out its $21.7B FY17 Financial Services spending bill by a vote of 30 to 17. The markup included votes on a dozen contentious amendments regarding securities regulation, insurance negotiations, and more. The bill provides annual funding for the Treasury Department, the Judiciary, the Small Business Administration, the Securities and Exchange Commission, and other related agencies.

The full committee adopted the following amendments to the bill:

Rep. Crenshaw – The manager’s amendment makes technical and noncontroversial changes to the bill and report. The amendment was adopted on a voice vote.

Rep. Fleischmann – The amendment revises the definition of a high cost mortgage and mortgage originator as those terms apply to manufactured housing. The amendment was adopted on a vote of 31-17.

Rep. Wasserman Schultz – The amendment provides an additional $1.3 million for the Consumer Product Safety Commission’s “Virginia Graeme Baker” Pool and Spa Safety Act grant program, offset by a cut to the General Services Administration’s Operating Expenses account. The amendment was adopted on a voice vote.

Rep. Culberson – The amendment prohibits funding for the IRS to audit a church unless the audit is approved by the IRS Commissioner, reported to the tax committees, and takes effect 90 days after such notice.  The amendment was adopted on a vote of 31-17.

Rep. Palazzo/Rep. Cuellar – The amendment prohibits funding for the Consumer Financial Protection Bureau (CFPB) to finalize or implement a rule that would restrict payday lending until the CFPB completes a report, with public comment, on the impact of the rule on populations with limited access to credit, and until it identifies existing credit products available to replace the current sources of short-term, small-dollar credit. The amendment was adopted on a vote of 30-18.

Rep. Kaptur – The amendment restores mail delivery standards to the July 1, 2012 level. The amendment was adopted on a voice vote.

Rep. Rigell – The amendment prohibits funds for an executive order (EO 13673) that requires federal contractors to comply with burdensome labor standard reporting requirements that could hurt their contracting ability, without due process. The amendment also requires an analysis and impact statement on the new standards before they are allowed to continue.  The amendment was adopted on a vote of 29-19.

Rep. Harris – The amendment prohibits funding for abortions through OPM-negotiated “multi-state qualified health plans” offered under Obamacare. The amendment was adopted on a vote of 30-17.

House FY17 Financial Services Appropriations Bill Text:

http://appropriations.house.gov/uploadedfiles/bills-114hr-fc-ap-fy2017-ap00-fservices.pdf

House FY17 Financial Services Appropriations Report Language:

http://appropriations.house.gov/uploadedfiles/hrpt-114-hr-fy2017-fservices.pdf

House FY17 Financial Services Appropriations Summary:

http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394563

Interior and Environment

The House Appropriations Committee approved its $32.1B Interior and Environment Appropriations bill by a vote of 31 to 18. The legislation includes funding for the Department of the Interior, the Environmental Protection Agency (EPA), the Forest Service, the Indian Health Service, and various independent and related agencies. The bill provides $32.095B, $64M below the FY16 enacted level and $1B below the President’s budget request. Included is $480M to fully fund “Payments in Lieu of Taxes” (PILT) – which provides funds to local communities with federal land to help offset losses in property taxes – and $3.9B for the Department of the Interior and U.S. Forest Service to prevent and combat wildfires. Democrats on the committee used the markup to push for emergency funding to combat the Zika virus, address the water contamination issue in Flint, MI, and to strip the bill of 33 environmental policy riders.

House FY17 Interior and Environment Appropriations Bill Text:

http://appropriations.house.gov/uploadedfiles/bills-114hr-fc-ap-fy2017-ap00-interior.pdf

House FY17 Interior and Environment Appropriations Report Language:

http://appropriations.house.gov/uploadedfiles/hrpt-114-hr-fy2017-interior.pdf

House FY17 Interior and Environment Appropriations Summary:

http://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394564

Senate

Floor

The Senate considered its $56.3B FY17 Commerce, Justice, Science appropriations bill on the Senate floor this week, but was stopped by a Democratic filibuster on Wednesday that lasted nearly 15 hours. Democrats pushed for floor votes on gun control measures, and claimed partial victory by securing two floor votes – one from Sen. Chris Murphy (D-CT) ensuring that all individuals who should be prohibited from buying a firearm are listed in the National Instant Criminal Background System and require a background check for every firearm sale (closing the gun show loophole), and another amendment offered by Sen. Dianne Feinstein (D-CA) authorizing the Attorney General to deny requests to transfer a firearm to known or suspected terrorists. The Senate will also vote on an amendment from Sen. Chuck Grassley (R-IA) to improve the availability of records to the National Instant Criminal Background System and another amendment from Sen. John Cornyn (R-TX) for Securing our Homeland from radical Islamists by Enhancing Law Enforcement Detection (SHIELD), which would require a court order for a gun sale to be blocked. The Senate will vote on these amendments on Monday evening. With no bipartisan agreement in place, neither side is expected to get the 60 votes required under Senate rules to advance the measures. Sen. Susan Collins (R-ME) is working on an amendment that would restrict gun purchases for those on the no-fly list but allow those denied purchasing a gun the right to appeal in court with their legal fees paid if they win. Collins would also include a “five-year look-back” that would notify the FBI if anyone who was previously on the no-fly list purchased a gun.

Financial Services

The Senate Appropriations Committee marked up its $22.4B FY17 Financial Services and General Government Appropriations bill in subcommittee and full committee this week. The bill funds the Department of Treasury, Small Business Administration, the federal judiciary, the Internal Revenue Service, the Securities and Exchange Commission, and a variety of independent federal agencies. The $22.4B measure is $1B below the FY16 enacted level. The bill largely avoided “poison pill” policy riders, which was reflected in the 30 to 0 vote to report the bill out of committee. During full committee consideration, the committee adopted an amendment lifting the ban on travel to Cuba. The committee also approved amendments allowing U.S. banks to extend credit to Cuban buyers of U.S. agriculture goods and allowing aircraft to refuel in the U.S. on flights to and from Cuba.

Senate FY17 Financial Services Appropriations Bill Text:

https://www.vantagepointstrat.com/senate-fy17-financial-services-approps-bill-text/

Senate FY17 Financial Services Appropriations Report Language:

https://www.vantagepointstrat.com/senate-fy17-financial-services-approps-report-language/

Senate Majority Summary FY17 Financial Services Appropriations Bill:

http://www.appropriations.senate.gov/news/majority/appropriations-committee-approves-fy2017-financial-services-and-general-government-appropriations-bill

Senate Minority Summary FY17 Financial Services Appropriations Bill:

http://www.appropriations.senate.gov/news/minority/fy17-fsgg-full-committee-markup-bill-summary

Interior and Environment

The Senate Appropriations Committee marked up its $32.03B FY17 Interior and Environment Appropriations bill in subcommittee and full committee this week. The bill funds the Department of Interior, Bureau of Land Management, National Park Service, U.S. Fish and Wildlife, U.S. Geological Survey, Office of Surface Mining, Indian Health Service, Bureau of Indian Affairs, Environmental Protection Agency, U.S. Forest Service, the Smithsonian, and a number of other agencies. The Senate bill is $125M below the FY16 enacted level and $1.1B below the President’s FY17 budget request. The bill was approved by a vote of 16 to 14. Democrats objected to the inclusion of several “poison pill” policy riders in the bill that would undo Obama administration environmental regulations.

Senate FY17 Interior and Environment Appropriations Bill Text:

https://www.vantagepointstrat.com/senate-fy17-interior-approps-bill-text/

Senate FY17 Interior and Environment Appropriations Report Language:

https://www.vantagepointstrat.com/senate-fy17-interior-approps-report-language/

Senate Majority Summary FY17 Interior and Environment Appropriations Bill:

http://www.appropriations.senate.gov/news/majority/committee-approves-fy2017-interior-environment-appropriations-bill

Senate Minority Summary FY17 Interior and Environment Appropriations Bill:

http://www.appropriations.senate.gov/news/minority/fy17-interior-and-environment-full-committee-bill-summary

Zika Virus Funding Conference

With just one week left before the House adjourns for the July 4th recess, conferees on the Zika virus funding bill appear to be closer to striking a final deal. They met publicly on Wednesday, but the 15-minute session didn’t demonstrate a lot of progress on the two main issues. They still need to work out agreements on how much emergency funding is needed, and whether or not the funding should be offset with cuts to other programs. House Majority Leader Kevin McCarthy (R-CA) said that the House could vote on the final conference agreement next week if a final package is agreed to by the conferees. With reports of three babies in the U.S. having been born with Zika virus related birth defects, the pressure is on Congress to negotiate a final emergency spending agreement.

Subcommittee House Senate
Agriculture Subcommittee: April 13

Full Committee: April 19

Subcommittee: May 17

Full Committee: May 19

Commerce-Justice-Science Subcommittee: May 18

Full Committee: May 24

Subcommittee: April 19

Full Committee: April 21

Floor: Week of June 20

Defense Subcommittee: May 11

Full Committee: May 17

Floor: June 16

Subcommittee: May 24

Full Committee: May 26

Energy & Water Subcommittee: April 13

Full Committee: April 19

Floor: Pulled after voted down

Subcommittee: April 13

Full Committee: April 14

Floor: May 12

Financial Services Subcommittee: May 25

Full Committee: June 9

Floor: Week of June 20

Subcommittee: June 15

Full Committee: June 16

Homeland Security Subcommittee: June 9

Full Committee: June 22

Subcommittee: May 24

Full Committee: May 26

Interior Subcommittee: May 25

Full Committee: June 15

Subcommittee: June 14

Full Committee: June 16

Labor HHS Education Subcommittee: June 7

Full Committee: June 9

Legislative Branch Subcommittee: April 20

Full Committee: May 17

Floor: June 10

Full Committee: May 19
Military Construction – Veterans Affairs Subcommittee: March 22

Full Committee: April 13

Floor: May 19

Subcommittee: April 13

Full Committee: April 14

Floor: May 19

State Foreign Operations
Transportation HUD Subcommittee: May 18

Full Committee: May 24

Subcommittee: April 19

Full Committee: April 21

Floor: May 19

 

FY16 vs. FY17 302(b) Allocations

  FY16 302(b) FY17 House 302(b) FY17 Senate 302(b)
Agriculture $21.75B $21.3B $21.2B
Commerce Justice Science $55.7B $56B $56.3B
Defense* $572.7B $575.7B $572.7B
Energy & Water $37.2B $37.4B $37.5B
Financial Services $23.2B $21.7B $22.4B
Homeland Security* $41.12B $41.1B $41.2B
Interior $32.16B $32.095B $32.03B
Labor HHS Education $162.1B $161.9B
Legislative Branch $4.37B $3.48B

(excludes Senate only items)

$4.4B
Military Construction/VA* $79.9B $81.6B $83B
State Foreign Ops* $52.68B $52.1B
Transportation HUD $57.6B $58.2B $56.5B

*Includes Overseas Contingency Operations (OCO) funding.

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