FY18 Appropriations, Emergency Funding, and Debt Ceiling Update

Hurricane Harvey Funding, FY18 Continuing Resolution, and Debt Ceiling Bill

The House passed the $7.85B Hurricane Harvey emergency funding bill (HR 601) earlier in the week by a vote of 419 to 3. Reps. Justin Amash (R-MI), Andy Biggs (R-AZ), and Thomas Massie (R-KY) were the no votes. President Trump, Senate Minority Leader Chuck Schumer (D-NY), and House Minority Leader Nancy Pelosi (D-CA) then worked out an agreement to include an FY18 continuing resolution (CR) funding the government through December 8 as well as lifting the debt ceiling until December 8 on the emergency funding bill. Both provisions were attached to HR 601 when the Senate took up the measure. Senate Majority Leader Mitch McConnell (R-KY) was clear that the agreement to add the CR and the debt extension was between President Trump and Democratic leaders. Republicans had tried to get an 18-month debt ceiling extension.

The Senate amended the House-passed bill so that it included $7.4B for the Federal Emergency Management Agency, $450M for the Small Business Administration Disaster Loan Program (of which up to $225M may be used for administrative expenses to carry out the program), and $7.4B in Community Development Block Grant (CDBG) funding through the Department of Housing and Urban Development for areas most affected by 2017 disasters. The Senate bill also included an FY18 CR funding the federal government at current levels through December 8, and an extension of the debt ceiling through December 8. The CR also included a limited number of “anomalies,” which are programmatic or funding changes. The Senate passed the bill by a vote 80 of 17 (all no votes were from Republicans). The House then took up the bill and passed it by a vote of 316 to 90 (all no votes were from Republicans). The bill now goes to the President for his signature.

The bill temporarily suspends the debt limit through December 8 at which time it will be reset to a higher level that will include the debt issued while the debt limit was not in effect. This will also allow the Treasury Department to reset its extraordinary measures. The new amount of time granted by the extraordinary measures will depend on a number of factors, including Treasury’s borrowing patterns, incoming receipts, and the government’s rate at which is burns through cash. Extraordinary measures could meet the Treasury’s needs through next year’s April 15 tax date. If that happens, the debt ceiling debate could extend through August or September of 2018.

Section-By-Section Summary

https://www.appropriations.senate.gov/imo/media/doc/090617-CONTINUING-APPROPRIATIONS-ACT-FY18-SECTION-BY-SECTION.pdf

Additional Summary Information

https://rules.house.gov/sites/republicans.rules.house.gov/files/115/PDF/SA%20to%20HA%20to%20SA%20to%20HR%20601/Additional%20Summary%20Information.pdf

FY18 House Omnibus

The House began consideration of its $1.23T FY2018 omnibus appropriations bill this week but delayed a final vote on the bill citing the impending hurricane. They will resume consideration of the bill next week. The bill isn’t likely to be passed by the Senate as it exceeds the FY18 budget caps by $72B.

Senate

The Senate Appropriations Committee marked up and reported out two FY18 spending bills this week leaving the committee with four more FY18 spending bills to complete.

State Foreign Ops

The Senate Appropriations Committee approved its FY18 State, Foreign Operations, and Related Programs spending bill this week and reported it out of committee unanimously. The bill provides $51.2B in discretionary funding, of which $30.4B is for enduring costs and $20.8B is for Overseas Contingency Operations (OCO). This is $10.7B above the President’s FY18 budget request as scored by the Congressional Budget Office, and $1.9B below the FY17 enacted level. Funding for the agencies in the bill are at, or close to, the FY17 levels.

The bill included the Taylor Force Act, which would restrict U.S. economic aid to the West Bank and Gaza until the Palestinian Authority stops paying terrorists guilty of violence against Israelis and Americans. There is also a new provision to prohibit assistance to the central government of a country that contributes to the nuclear, ballistic missile, or cyber-intrusion/cyber-warfare capabilities of the Government of North Korea. The bill continues a prohibition on enforcement of any rules or regulations implemented by the Export-Import Bank, Overseas Private Investment Corporation, or the World Bank that would prohibit coal-fired power plants. The bill repeals the Mexico City policy, but continues the long-standing prohibition on the use of Federal funds for abortion as a method of family planning.

Committee members also highlighted that the bill does not endorse the reorganization or redesign of any part of the Department of State, USAID, or any other entity funded in the bill absent consultation with the committee.

Bill Text:

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20State%20Foreign%20Operations%20Appropriations%20Bill%20-%20S1780.pdf

Report Language:

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20State%20Foreign%20Operations%20Appropriations%20-%20Report%20115-152.pdf

Labor HHS

The Senate Appropriations Committee also approved its $164.1B FY18 Labor HHS Education spending bill by a vote of 29 to 2. The bill is $3B above the FY17 enacted level and $27.5B above the President’s FY18 budget request. The bill provides $36.1B for the NIH ($2B more than FY17), $12B for the Department of Labor ($61.5M below FY17), $79.4B for the Department of Health and Human Services ($1.7B more than FY17), $68.3B for the Department of Education ($29M above FY17), $235M for the Institute for Museum and Library Services ($4M above FY17), $445M for the Corporation for Public Broadcasting (level with FY17), $1.02B for the Corporation for National and Community Service ($11M below FY17), and $274M for the National Labor Relations Board, $12B for the Social Security Administration.

Bill Text:

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Labor%20HHS%20Education%20Appropriations%20Bill%20-S1771.pdf

Report Language:

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Labor%20HHS%20Education%20Appropriations%20-%20Report%20115-150.pdf

Status of FY18 Appropriations Spending Bills