Members are back in their districts/states for the August recess, but when they return in September they face a pretty daunting “to do” list with only 12 legislative days to complete some of the items on the list. Raising the debt ceiling to avoid default while simultaneously approving a spending deal to avert a government shutdown will be hefty lifts for Republican leadership. And all of this comes on the heels of failing to repeal and replace the Affordable Care Act (“Obamacare”) so there is pressure on GOP leaders to demonstrate an ability to deliver on some campaign promises while they control both the Executive and Legislative branches of government.

FY18 Appropriations

The FY18 spending bills need to be passed and signed into law by September 30, or Congress needs to pass a continuing resolution (CR) before then in order to avoid a government shutdown. Deep rifts over spending priorities could lead to a shutdown, but the more likely scenario is a short-term CR extending funding for the government for a few months, possibly through mid-December, at current funding levels. The CR could also include must-pass items such as a reauthorization of the Children’s Health Insurance Program and a raise in the debt limit.

The House Rules Committee posted a notice to members on its website this week informing them that they intend to take up the eight remaining FY18 appropriations bills in a single bill when they return from recess in September. They are likely to take up the bill the first week when they return. House Rules Committee Chairman Pete Sessions (R-TX) said that the committee will issue a deadline for amendment submission prior to the end of the August recess. The eight remaining bills are likely to be combined on the floor with the “security-bus” the House passed before the recess, effectively creating an FY18 omnibus spending bill. While the eight new bills will be subject to a limited number of amendments during floor consideration in September, the four bills already passed by the House would not be amended. Even though the House could potentially finish all of their FY18 spending bills before the end of the fiscal year, many members and staff still anticipated needing a CR to avoid a shutdown at the end of September. And if the House FY18 omnibus bill were enacted into law, the topline spending level of $1.13T and the defense discretionary spending level would break the caps set by the Budget Control Act of 2011 (BCA) triggering automatic spending cuts, or sequestration.

There are about a dozen conservatives in the House who won’t vote for most spending bills and also don’t want to increase the debt ceiling without corresponding spending cuts. That means that Republicans will need support from Democrats to both raise the debt ceiling and keep the government funded. Democrats will require a spending deal in return for their votes. The White House is pushing a deal that would lift the caps set by the Budget Control Act of 2011 in return for funding for the President’s proposed border wall with Mexico.

Status of FY18 Appropriations Spending Bills

Debt Ceiling

The debt ceiling is currently at the limit of $19.8T. The previous extension of the debt limit expired on March 15, and the Treasury Department has been using “extraordinary measures” to continue paying the nation’s bills since then. Treasury Secretary Steven Mnuchin has set a deadline of September 29 for Congress to raise the debt ceiling.

Health Care Reform

While Congressional Republicans want to use the August recess to talk about tax reform, their constituents are pressing them to stay focused on healthcare. Republicans are divided over whether to give up on health care reform or to continue the battle while also pursuing changes to the tax code. Senate Majority Leader Mitch McConnell (R-KY) said this week that there is a change the Senate could revive the measure to repeal and replace “Obamacare,” but acknowledged that the window for that is rapidly closing. McConnell noted that Senate Health, Education, Labor and Pensions Committee Chairman Lamar Alexander (R-TN) is working on a bipartisan approach that would involve subsidies for insurance companies. But he cautioned that Democrats would have to support some “real reforms” in the measure so that it isn’t just an insurance company bailout.

Tax Reform

Republican leaders announced last month that they plan to start hearings on a tax bill in September with the hope of holding a House vote in October and a Senate one in November. White House Director of Legislative Affairs, Marc Short reiterated that timeline this week when he said that the Trump Administration sees a bill to overhaul the tax code passing the House in October and being cleared by the Senate the following month. But this week Senate Majority Leader McConnell refused to put a timeline on tax reform. Learning from his experience with deadline for repealing Obamacare, McConnell is concerned about setting artificial deadlines that are “unrelated to the reality of the complexity of legislating.”

In order to move forward with tax reform, the House and Senate have to pass an FY18 budget resolution with reconciliation instructions that will prevent Democrats from filibustering their legislation in the Senate. House Republicans have been divided over their FY18 budget resolution and were unable to pass the measure before they left for the August recess. The Senate has yet to do an FY18 budget resolution. And the looming deadlines to fund the government and raise the debt ceiling in the tight House and Senate September floor schedules doesn’t leave much time for consideration of FY18 budget resolutions on the floor.

The biggest problem for Republicans is agreeing on the scope of their potential tax package. An increasing number of Republicans want to scale back the goal of comprehensive reform in favor of narrower tax cuts as they view the latter as more achievable. Others, like Senate Finance Committee Chairman Orrin Hatch (R-UT), House Speaker Paul D. Ryan (R-WI), and the White House, are still calling for comprehensive tax reform. Some Republicans are also calling for parts of the tax-reform package to be retroactive having some changes take effect as early as January 2017. This would add to the cost of tax reform and lawmakers would need to find more ways to pay for those retroactive cuts. In the end, Republicans may have to settle for a simple tax cut rather than a sweeping overhaul like some had imagined.

When the House and Senate reconvene after the August recess, the House is scheduled to be in session 12 days and the Senate 17 days before the end of the fiscal year. Senators of both parties have acknowledged the need for passing another stopgap continuing resolution (CR) when they return in September. The CR would likely extend current funding levels into the new fiscal year.

The House passed a $790B “securitybus” appropriations bill before leaving for the August recess. Senate Majority Leader Mitch McConnell (R-KY) executed a procedural move on that bill that sets it up for potential action on the Senate floor. However, the bill violates the 2011 Budget Control Act and would trigger sequestration. Senate Appropriations Ranking Democrat Patrick Leahy (D-VT) said the four-bill minibus would not get the 60 votes needed for passage on the floor. A new bipartisan budget deal may be needed to raise spending limits in order for any FY18 appropriations bills to have a chance of passing in the Senate.

Sen. James Lankford (R-OK) suggested an appropriations bill plan for after the August recess in which three minibus bills with four titles each would be brought to the Senate floor under a structured rule. Lankford said he had discussed the idea with leadership.

Status of FY18 Appropriations Spending Bills

FY18 Budget Resolution Pushed Off Until September

House Speaker Paul D. Ryan (R-WI) is now promising a vote on an FY18 budget resolution in early September when the House returns from its August recess. The FY18 budget resolution is crucial to Republican plans for tax reform this fall. It has been stalled due to internal Republican disagreements. House Budget Committee Chairwoman Diane Black (R-TN) said this week that scrapping the border adjustment tax would make it easier for her to get support for the FY18 budget resolution. Earlier this week, Speaker Ryan, Senate Majority Leader Mitch McConnell (R-KY), Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-UT), and House Ways and Means Committee Chairman Kevin Brady (R-TX) issued a joint statement on tax reform in which they wrote that they “are now confident that, without transitioning to a new domestic consumption-based tax system, there is a viable approach for ensuring a level playing field between American and foreign companies and workers, while protecting American jobs and the U.S. tax base.  While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.”

Joint Statement on Tax Reform:

https://www.whitehouse.gov/the-press-office/2017/07/27/joint-statement-tax-reform

FY18 Appropriations

House

The House voted 235-192 this week to pass HR 3219, the Make America Secure Appropriations Act. Five Republicans (Amash-MI, Duncan-TN, Jones-NC, Massie-KY, and Sanford-SC) voted against the bill and five Democrats (Bishop-GA, Crist-FL, Gottheimer-NJ, O’Halleran-AZ, and Sinema-AZ) voted for the bill. The “security-bus” included the FY18 Defense, Energy & Water, Legislative Branch, and Military Construction-Veterans Affairs spending bills. The $790B bill also included $1,571,239,000 for the Department of Homeland Security to construct physical barriers along the southwest border of the United States in the Rio Grande Valley of Texas and in San Diego, California. Democrats opposed the measure stating that it could never become law because the defense funding level exceeds the cap set by the 2011 Budget Control Act. If enacted as is, it would trigger sequestration. Democrats also opposed the inclusion of funding for the border wall, and were angered that Republicans stripped a provision from the bill that was approved on a bipartisan basis during committee consideration. The provision would have repealed the 2001 Authorization for Use of Military Force within eight months of the bill being signed into law, and would have required Congress pass another AUMF to continue the campaign against ISIS. While the bill passed the House, it will be difficult for it to get the 60 votes needed in the Senate for passage.

Senate

The Senate Appropriations Committee took up three FY18 spending bills this week and reported them out of committee. The committee will not hold any markup sessions next week.

Commerce, Justice, Science

The Senate Appropriations Committee marked up its FY18 Commerce, Justice, Science spending bill today and reported it out by a vote of 30-1. The $56.4B bill, which is $3.2B below FY17 enacted levels and $4.4B above the President’s FY18 budget request, funds the U.S. Departments of Commerce and Justice, the National Aeronautics and Space Administration, the National Science Foundation, and other agencies.

The bill funds the Department of Commerce at $9.16B ($76.4M below FY17) including $495 for the International Trade Administration ($2M above FY17), $254M for the Economic Development Administration, $3.5B for the U.S. Patent and Trademark Office, $944M for the National Institute of Standards and Technology ($8M below FY17 and $219M above the President’s FY18 budget request), $5.6B for the National Oceanic and Atmospheric Administration ($85.1M below FY17), and $1.52B for the Bureau of the Census ($51M above FY17 and $24M above the President’s FY18 budget request).

The bill funds the Department of Justice at $29.1B ($121M above FY17 and $740M above the President’s FY18 budget request) including $9B for the Federal Bureau of Investigation ($213M above the President’s FY18 budget request), $2.5B for the Drug Enforcement Administration ($50M above FY17), $2.8B for the United States Marshals Service, $2.1B for the Executive Office for United States Attorneys and the 94 U.S. Attorneys offices, $7.1B for the Federal Prison System, $2.3B for state and local law enforcement and crime prevention grant programs, and $3.64B distribution from the Crime Victim Fund ($1.06B above FY17).

The bill also funds NASA at $19.5B ($124M below FY17 and $437M above the President’s FY18 budget request), the National Science Foundation at $7.31B ($151M below FY17 and $658M above the President’s FY18 budget request), $385M for the Legal Services Corporation (equal to FY17), $91.5M for the International Trade Commission (equal to FY17 and $3.9M above the President’s FY18 budget request), and $57.6M for the Office of the United States Trade Representative.

Senate FY18 Commerce, Justice, Science Appropriations Summary

https://www.appropriations.senate.gov/news/majority/committee-approves-fy2018-commerce-justice-science-appropriations-bill

Senate FY18 Commerce, Justice, Science Appropriations Bill Text

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Commerce%20Justice%20Science%20Appropriations%20Bill,%20S1662.pdf

Senate FY18 Commerce, Justice, Science Report Language

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Commerce%20Justice%20Science%20Appropriations%20Bill,%20Report%20115-1391.pdf 

Legislative Branch

The Senate Appropriations Committee marked up its FY18 Legislative Branch spending bill and reported it out on a unanimous vote of 31-0. The bill provides $3.171B in discretionary budget authority. An additional $1.319B is reserved for the House. Total funding accommodated in the bill is $4.490B, which is $50M more than the FY17 enacted level and $192M less than the President’s FY18 budget request. The bill provides $899.8M for the U.S. Senate ($28.6M above FY17). The increase provides for investments in Senate cybersecurity capabilities and training to Senators and their staff. The bill also maintains the Member pay freeze first implemented in 2009. The bill also provides $422.5M for the U.S. Capitol Police ($29.2M above FY17), $454.0M for the Architect of the Capitol ($38.9M above FY17 and $125.8M below the President’s FY18 budget request), $638.9M for the Library of Congress ($6.9M above FY17 and $48.8M below the President’s FY18 budget request), $562.8M for the Government Accountability Office (GAO) ($18.3M above FY17 and $27.9M below the President’s FY18 budget request), $48.1M for the Congressional Budget Office (CBO) ($1.6M above FY17 and $1.8M below the President’s FY18 budget request), and $117M for the Government Publishing Office.

Senate FY18 Legislative Branch Appropriations Summary

https://www.appropriations.senate.gov/news/majority/fy2018-legislative-branch-appropriations-bill-approved

Senate FY18 Legislative Branch Appropriations Bill Text

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Legislative%20Branch%20Appropriations%20Bill,%20S1648.pdf

Senate FY18 Legislative Branch Report Language

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Legislative%20Branch%20Appropriations%20Bill,%20Report%20115-137.pdf

Transportation HUD

The Senate Appropriations Committee approved its FY18 Transportation, Housing and Urban Development, and Related Agencies appropriations bill this week by a unanimous vote of 31-0. The $60.058B bill funds the Department of Transportation, the Department of Housing and Urban Development, and other related agencies. The bill is $2.407B above FY17 enacted levels and $12.385B more than the President’s FY18 budget request.

The bill provides $19.47B in discretionary funding for the Department of Transportation ($978M above FY17), of which $550M is for TIGER Grants ($50M above FY17), $44.97B is from the Highway Trust Fund for the Federal-Aid Highways program ($968M above FY17), $16.97B is for the FAA ($563M above FY17), $1.1B for the FAA Next Generation Air Transportation System, $1.974B for the Federal Railroad Administration ($122M above FY17), $12.129B for the Federal Transit Administration ($285M below FY17), $577.6M for the Maritime Administration ($55M above FY17), $908.6M for NHTSA, $744.8M for the Federal Motor Carrier Safety Administration ($68M of this is to complete the modernization of border facilities to improve inspections along the Southern border), and $272M for the Pipeline and Hazardous Materials Safety Administration. The bill also blocks the administration from pursuing privatization of the air traffic control system and rejects the President’s proposals to reduce the FAA workforce, raises the cap on the Passenger Facility Charge from $4.50 to $8.50, eliminates the Contract Weather Program, consolidates offices and leases, and prevents the construction of new facilities.

The bill provides $40.244B for the Department of Housing and Urban Development ($1.4B above FY17), of which $6.85B is for Community Planning and Development programs ($47M above FY17), $2.456B for homeless assistance programs, and $160M to combat lead hazards ($15M above FY17).

Senate FY18 Transportation HUD Appropriations Summary

https://www.appropriations.senate.gov/news/majority/committee-advances-fy2018-transportation-hud-appropriations-bill

Senate FY18 Transportation HUD Appropriations Bill Text

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Transportation,%20HUD%20Appropriations%20Bill,%20S1655.pdf 

Senate FY18 Transportation HUD Report Language

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Transportation,%20HUD%20Appropriations%20Bill,%20Report%20115-138.pdf

Status of FY18 Appropriations Spending Bills

House of Representatives

The House will consider a four-bill “Security-bus” appropriations package on the House floor next week. The bill, HR 3219, the Make America Secure Appropriations Act), includes the FY18 Defense, Military Construction-Veterans Affairs, Legislative Branch, and Energy & Water spending bills. The bill will also include$1.6B for a southwest border wall. But it will not include language that was added in committee in an amendment offered by Rep. Barbara Lee (D-CA) that would have required Congress to authorize military operations in Iraq and Syria. The amendment had been approved in committee with bipartisan support.

House Majority Leader Kevin McCarthy (R-CA) predicted that members would offer hundreds of amendments and that votes would go late into the night. Some conservatives are threatening to withhold their support for the measure, asking for greater clarity on the FY18 budget resolution and tax reform before they lend their support to this bill.

Homeland Security

The House Appropriations Committee marked up its $44.3B FY18 Homeland Security spending bill this week. The bill is $1.9B above FY17 enacted levels. The bill was approved by a vote of 30 to 22.

The bill includes $13.8B for Customs and Border Protection ($1.6B above FY17), $7B for Immigration and Customs Enforcement ($619.7M above FY17), $10.5B for the U.S. Coast Guard ($31.7M above FY17), $7.2B for the Transportation Security Administration ($159.8M below FY17), $1.8B for Cybersecurity and Protection of Communications, $2B for the U.S. Secret Service ($101M below FY17), and $7.3B for the Federal Emergency Management Agency. The bill also includes $1.6B for physical barrier construction along the U.S. southern border and $6.8B for disaster relief and emergency response activities. The legislation does not fund most Citizen and Immigration Services (CIS) activities, as these are funded outside the appropriations process. However, the bill does contain $131M for E-Verify. The bill does not include an increase in TSA passenger fees nor a redirection of Brand USA Travel Promotion fees (both of which were included in the President’s FY18 budget request).

The following amendments to the bill were approved by the full committee:

• Carter – The amendment made technical and other noncontroversial changes and additions to the report. The amendment was adopted on a voice vote.
• Aderholt– The amendment adds bill language prohibiting use of ICE funding to pay for an abortion or require anyone to perform or facilitate an abortion. The amendment was adopted on a vote of 29-21.
• Newhouse– The amendment adds bill language changing the H-2-A seasonal agriculture worker program from seasonal to year round. The amendment was adopted on a voice vote.
• Herrera Beutler– The amendment adds bill language that would grant lawful permanent resident status in the U.S. to Charlie Gard and his family for the purposes of medical treatment. The amendment was adopted on a voice vote.
• Wasserman-Schultz– The amendment adds bill language changing the statute of limitations on the recovery of FEMA Public Assistance Grants. The amendment was adopted on a voice vote.

House FY18 Homeland Security Bill Text:

https://appropriations.house.gov/uploadedfiles/homeland_07.11.17_xml.pdf

House FY18 Homeland Security Report Language:

https://appropriations.house.gov/uploadedfiles/23916.pdf

Interior and Environment

The House Appropriations Committee marked up its $31.4B FY18 Interior and Environment spending bill this week and reported out of committee by a vote of 30 to 21.

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. In total, the bill provides $31.4B, $824M below the FY17 enacted level and $4.3B above the President’s budget request. The bill funds wildland firefighting and prevention programs at $3.4B ($334M below FY17), $465M for the “Payments In Lieu of Taxes” (PILT) program, $7.5B for the EPA ($528M below FY17), $2.9B for the Bureaus of Indian Affairs and Education ($10M above FY17), $5.1B for the Indian Health Service ($97M above FY17), $213M for the Office of Surface Mining ($40M below FY17), $1.2B for the Bureau of Land Management ($46M below FY17), $2.9B for the National Park Service ($64M below FY17), $5.2B for the U.S. Forest Service, $1.5B for the U.S. Fish and Wildlife Service ($38M below FY17), $1B for the U.S. Geological Survey ($46M below FY17), $885 for the Smithsonian Institution ($22M above FY17), $145M for the National Endowments for the Arts and Humanities ($5M below FY17), $16.6M for the Eisenhower Memorial Commission, $275M for the Land and Water Conservation Fund ($125M below FY17), and $11M for the Chemical Safety and Hazard Investigation Board (same as FY17).

The following amendments to the bill were adopted by the full committee:

• Calvert– The Manager’s amendment makes technical and noncontroversial changes to the bill and report. The amendment was adopted on a voice vote.
• Harris– The amendment limits funds for activities related to wind turbines less than 24 nautical miles from the State of Maryland shoreline. The amendment was adopted on a voice vote.
• Aderholt– The amendment changes bill language requiring that all iron and steel used in water infrastructure projects be sourced within the United States. The amendment was adopted on a voice vote.
• Stewart– The amendment makes changes to bill language regarding the management of wild horses and burros. The amendment was adopted on a voice vote.

House FY18 Interior Bill Text:

https://appropriations.house.gov/uploadedfiles/fy18_interior_xml.pdf

House FY18 Interior Report Language:

https://appropriations.house.gov/uploadedfiles/23918.pdf

Labor, Health and Human Services, Education

The House Appropriations Committee marked up its $156B FY18 Labor HHS Education spending bill this week and reported it out of committee by a vote of 28 to 22.

The legislation includes funding for programs within the Department of Labor, the Department of Health and Human Services, the Department of Education, and other related agencies. In total, the draft bill includes $156 billion in discretionary funding, which is a reduction of $5 billion below the FY17 enacted level. The bill provides $10.8B for the Department of Labor ($1.3B less than FY17), $77.6B for HHS ($542M less than FY17), $66B for the Department of Education ($2.4B less than FY17), $1B for the Corporation for National and Community Service (same as last year), $445M for the Corporation for Public Broadcasting (same as last year), $249M for the National Labor Relations Board (NLRB) ($25M less than FY17), and $12.5B for the Social Security Administration (same as last year). The bill includes some policy provisions prohibiting the NLRB from applying its revised “joint-employer” standard in new cases and proceedings and from exercising jurisdiction over Tribal governments. The legislation also contains several provisions to stop the implementation of ObamaCare – including prohibiting the use of any new discretionary funding to implement ObamaCare. Finally, several programs were terminated including:

• Employment Service Grants ($671 million);
• International Labor Affairs Grants ($60 million), consistent with the budget request;
• CDC Climate Change program ($10 million), consistent with the budget request;
• Economic Development Grants ($20 million), consistent with the budget request;
• “Striving Readers” program ($190 million), consistent with the budget request;
• Health Careers Opportunity Program ($14 million), consistent with the budget request; and
• Overseas foreign language study program ($7 million), consistent with the budget request.

The following amendments to the FY 2018 LHHS Appropriations bill were adopted by the full committee:

• Cole –The amendment makes technical and non-controversial changes to the bill and report. The amendment was adopted on a voice vote.
• Harris– The amendment adds a provision prohibiting NLRB from enforcing the interpretation regarding “micro unions”/specialty healthcare. The amendment was adopted on a voice vote.
• Stewart– The amendment adds a provision prohibiting the Department of Labor from enforcing the minimum wage rule on recreational operators on Federal lands. The amendment was adopted on a voice vote.

House FY18 Labor HHS Education Bill Text:

http://docs.house.gov/meetings/AP/AP07/20170713/106250/BILLS-115HR-SC-AP-FY2018-LaborHHS-LaborHHSFY2018.pdf

House FY18 Labor HHS Education Report Language:

https://appropriations.house.gov/uploadedfiles/23920.pdf

State and Foreign Operations

The House Appropriations Committee marked up its $47.4B FY18 State and Foreign Operations spending bill this week and reported it out by voice vote.

The legislation funds the State Department, the United States Agency for International Development, and other international activities. In total, the bill provides $47.4 billion in both regular discretionary and Overseas Contingency Operations (OCO) funding. This total is $10 billion below the FY17 enacted level, when counting additional funds provided in the Security Assistance Appropriations Act of 2017. Within this amount, OCO funding totals $12 billion, which supports operations and assistance in areas of conflict, such as Iraq, Afghanistan, and Pakistan. The bill provides $15.4B in base and OCO funding for the State Department ($2.6B less than FY17), $8.8B in base and OCO funding for International Security Assistance ($624M less than FY17), $1.5B for the United States Agency for International Development (USAID) ($115M less than FY17), and $888M for multilateral assistance ($1.2B less than FY17). The bill also provides policy provisions on Syria, Egypt, Afghanistan, the Palestinian Authority, countering Russian influence and aggression, records management at State and USAID, Guantanamo Bay, assistance to foreign governments and local organizations, multi-year funding commitments, UN reform, North Africa strategy, the UN Arms Trade Treaty, OPIC anti-coal regulations, Mexico City Policy, and other anti-abortion measures.

The following amendments to the bill were adopted by the full committee:

• Rogers – The manager’s amendment makes technical and noncontroversial changes to the bill and report. The amendment was adopted on a voice vote.
• Dent – The amendment would modify the quorum requirement for the Export-Import Bank Board through September 30, 2019. The amendment was adopted on a voice vote.
• Calvert –The amendment adds report language expressing disappointment with a recent UNESCO designation related to Israel. The amendment was adopted on a voice vote.

House FY18 State Foreign Operations Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap–stateforop-fy2018stateforeignoperationsappropriations.pdf

House FY18 State Foreign Operations Report Language:

https://appropriations.house.gov/uploadedfiles/23926.pdf

Transportation HUD

The House Appropriations Committee marked up its FY18 Transportation, Housing and Urban Development spending bill this week. The committee approved a manager’s amendment and passed the bill by a vote of 31 to 20.

The legislation includes funding for the Department of Transportation, the Department of Housing and Urban Development, and other related agencies. In total, the bill reflects an allocation of $56.5B in discretionary spending – $1.1B below FY17 and $8.6B above the President’s budget request. The bill includes $17.8B for the Department of Transportation ($646M above FY17) – $16.6B for the Federal Aviation Administration ($153M above FY17), $45B for the Federal-aid Highways Program ($968M above FY17), $2.2B for the Federal Railroad Administration ($360M above FY17), $11.75B for the Federal Transit Administration ($662M above FY17), $490.6M for the Maritime Administration ($31.9M below FY17), $927M for the National Highway Traffic Safety Administration ($15M above FY17), and $268M for the Pipeline and Hazardous Materials Safety Administration ($3.7M above FY17). The bill eliminates the National Infrastructure Investment grants (also known as TIGER grants), which were funded at $500M in FY17. The bill funds the Department of Housing and Urban Development at $38.3B ($487M below FY17) and provides $6.6B for Community Planning and Development Programs ($209M below FY17).

House FY18 Transportation HUD Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap-fy2018-transhud-transportationhoushingandurbandevelopment.pdf

House FY18 Transportation HUD Report Language:

https://appropriations.house.gov/uploadedfiles/23928.pdf

Senate

The Senate Appropriations Committee set temporary spending levels for their FY18 spending bills this week. The Senate funding levels would bust the caps set by the Budget Control Act for both defense and nondefense discretionary spending. Without a budget resolution in place, Appropriators decided to choose spending limits to get the FY18 process started. The committee set a $551B limit on defense (not counting Global War on Terrorism funds) and $518.5B for nondefense accounts. Those levels exceed the deficit law’s caps of $549 billion for defense and $515.4 billion for nondefense spending. 

Agriculture

The Senate Appropriations Committee marked up and passed out of subcommittee and full committee its FY18 Agriculture spending bill. The bill was approved by the full committee by a vote of 31 to 0. The bill provided $20.525B in funding, which is $325M below the FY17 enacted level. The bill funds Agriculture research at $2.55B, the Animal and Plant Health Inspection Service at $953.2M ($143.2M above the President’s budget request and $7M above FY17), the Natural Resources Conservation Service at $874.1M ($9.6M above FY17 and $108.1M above the President’s budget request), the Farm Service Agency at $1.521B, the Food Safety and Inspection Service at $1.038B ($6M above FY17), Rural Development at $675.3M, the Food and Drug Administration at $2.8B ($1M over FY17), WIC at $6.35B (level with FY17), SNAP at $73.612B ($4.868B below FY17), Child Nutrition Programs at $24.243B, Food For Peace grants at $1.6B, and the McGovern-Dole International Food for Education and Child Nutrition Program at $206.62M. The bill also includes a provision that seeks to address the ongoing economic challenges facing U.S. cotton producers by designating cotton as an “other oilseed” under Title I of the 2014 Farm Bill. This would allow cotton producers to participate in the Price Loss Coverage program.

Senate FY18 Agriculture Appropriations Summary

https://www.appropriations.senate.gov/news/majority/fy2018-agriculture-appropriations-bill-gains-committee-approval

Senate FY18 Agriculture Appropriations Bill Text

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Agriculture%20Appropriations%20Bill%20-%20S16031.pdf

Senate FY18 Agriculture Report Language

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Agriculture%20Appropriations%20Bill,%20Report%20115-131.pdf

Energy & Water

The Senate Appropriations Committee marked up and passed out of subcommittee and full committee its FY18 Energy & Water spending bill. The bill was approved by the full committee by a vote of 30 to 1. The $38.4B bill is $629M above the FY17 enacted level and $4.1B above the President’s FY18 budget request. The bill funds the Department of Energy at $31.46B ($718M above FY17 and $3.6B above the President’s budget request), Nuclear Security at $13.7B ($747M above FY17), the Army Corps of Engineers at $6.2B ($190M above FY17 and $1.2B above the President’s budget request), the Bureau of Reclamation at $1.3B ($190M above the President’s budget request), Science Research at $5.55B ($158M above FY17), Environmental Cleanup at $6.6B ($214M above FY17), Energy Programs at $11.1B ($183M below FY17, but $3.6B above the President’s budget request), Fossil Energy Research and Development at $573M ($95M below FY17 and $293M above the President’s budget request), and Nuclear Energy Research and Development at $917M ($214M above the President’s budget request). The bill also includes a pilot program for consolidated nuclear waste storage and funding to allow DOE to store nuclear waste at private facilities that are licensed by the Nuclear Regulatory Commission.

Senate FY18 Energy & Water Appropriations Bill Summary

https://www.appropriations.senate.gov/news/majority/senate-fy2018-energy-and-water-development-appropriations-bill-advances

Senate FY18 Energy & Water Appropriations Bill Text

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Energy%20and%20Water%20Development%20Appropriations%20Act%20-%20S1609.pdf

Senate FY18 Energy & Water Appropriations Report Language

https://www.appropriations.senate.gov/imo/media/doc/FY2018%20Energy%20and%20Water%20Development%20Appropriations%20Act%20-%20Report%20115-132.pdf

The Senate will mark up its FY18 Transportation HUD and Commerce Justice Science spending bills in subcommittee and full committee next week.

Status of FY18 Appropriations Spending Bills

House Appropriations Committee to Complete FY18 Appropriations Bills Next Week

House Appropriators held several subcommittee and full committee markups this week and are on track to have all 12 FY18 spending bills reported out of committee by the end of next week. Next week, House leadership will begin to whip a 12-bill omnibus spending package that would be considered on the House floor before the August recess. House Rules Committee Chairman Pete Sessions (R-TX) said that a 12-bill omnibus would proceed under a structured rule, which limits amendments when it is being debated on the House floor. We’ll know next week if House leadership has the votes to pass an omnibus measure.

Meanwhile, the House Appropriations Committee continues to work on its FY18 spending bills. Right now, they are writing the bills to a topline of $511B for nondefense discretionary and $621.5B for defense discretionary. The FY18 subcommittee allocations for their 12 FY18 spending bills are listed in the chart below (with FY17 allocations for comparison). The House’s FY18 spending plan busts current spending caps ($1.065T for FY18 – $549B for defense and $516B for non defense) and would need a change in budget law to avoid sequestration. The House budget increases defense spending (Defense and MilCon VA) at the expense of nondefense spending (Transportation-HUD, Labor HHS Education, and Financial Services). Any change to budget law would require 60 votes in the Senate, so it would have to be done on a bipartisan basis.

FY18 House Appropriations Subcommittee Allocations

Agriculture

The full House Appropriations Committee approved their $20B FY18 Agriculture Appropriations bill this week by voice vote. The legislation funds agricultural and food programs and services, including food and medical product safety, animal and plant health programs, rural development and farm services, agricultural trade, financial marketplace oversight, and nutrition programs. The bill is $876M below the FY17 enacted level and $4.64B above the President FY18 budget request.

Three amendments to the bill were adopted during full committee consideration:

Rep. Aderholt (R-AL) – The amendment makes technical and noncontroversial changes to the bill and report. The amendment was adopted on a voice vote.

Rep. Womack (R-AR) – The amendment would require robust cost-benefit analysis by the Commodity Futures Trading Commission and provide clarification regarding inter-affiliate swap transactions. The amendment was adopted on a voice vote.

Rep. Newhouse (R-WA) – The amendment adds bill and report language to enable legal migrant farm workers to utilize certain farm labor housing. The amendment was adopted on a voice vote.
House FY18 Agriculture Appropriations Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-fc-ap-fy2018-ap00-fy18agriculturebill.pdf

House FY18 Agriculture Appropriations Report Language:

https://appropriations.house.gov/uploadedfiles/hrpt-115-hr_.pdf

Commerce, Justice, Science

The full House Appropriations Committee approved their $54B FY18 Commerce Justice Science (CJS) Appropriations bill this week by a vote of 31 to 21. The bill funds the Departments of Commerce and Justice, the National Aeronautics and Space Administration (NASA), the National Science Foundation (NSF), and other related agencies. The bill is $2.6B below the FY17 enacted level and $4B above the President FY18 budget request.

Five amendments to the bill were adopted during full committee consideration:

Rep. Culberson (R-TX) – The manager’s amendment makes technical and noncontroversial changes to the bill and report. The amendment was adopted on a voice vote.

Rep. Harris (R-MD) – The amendment prohibits implementing or enforcing a critical habitat designation for Atlantic Sturgeon in the Chesapeake Bay. The amendment was adopted on a voice vote.

Rep Cartwright (D-PA) – amended by Rep. Culberson – The amendment requires risk assessments for certain IT purchases from Russia, North Korea, and Iran. The amendment was adopted on a voice vote.

Rep. Harris (R-MD) –The amendment prohibits funding in the bill from being used to implement a new EEOC requirement making businesses report certain demographic information of employees. The amendment was adopted on a vote of 29-20.

Rep. McCollum (D-MN)/Rep. Cole (R-OK) – The amendment changes Justice Department funding designations for Native Americans. The amendment was adopted on a voice vote.

House FY18 Commerce Justice Science Bill Text:

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

House FY18 Commerce Justice Science Report Language:

https://appropriations.house.gov/uploadedfiles/cjs.report.07.13.17.pdf

Energy & Water

The full House Appropriations Committee approved their $37.56B FY18 Energy and Water Appropriations bill this week by voice vote. The legislation provides annual funding for national defense nuclear weapons activities, the Army Corps of Engineers, various programs under the Department of Energy (DOE), and other related agencies. The bill is $209M below the FY17 enacted level and $3.65B above the President FY18 budget request. The only amendment adopted during the full committee markup was a manager’s amendment making technical and noncontroversial changes to the bill and report. The amendment was adopted on voice vote.

House FY18 Energy and Water Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-fc-ap-fy2018-ap00-fy18energyandwaterdevelopmentappropriationsbill.pdf

House FY18 Energy and Water Report Language:

https://appropriations.house.gov/uploadedfiles/hrpt-115-hr-p2.pdf

Financial Services and General Government

The full House Appropriations Committee approved their $20.231B FY18 Financial Services and General Government Appropriations bill this week by a vote of 31-21. 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 bill is $1.284B below the FY17 enacted level and $2.483B below the President’s FY18 budget request. Funding for the IRS was cut by $149M from the FY17 enacted level. Under the legislation, the agency will also be subject to increased oversight and transparency. Several other policy provisions aimed at reducing regulations and financial requirements were also included.

Six amendments were adopted during full committee consideration:

Rep. Graves (R-GA) – The manager’s amendment makes technical and noncontroversial changes to the bill and report, and adds certain authorization language. The amendment was adopted on a voice vote.

Rep. Moolenaar (R-MI) – The amendment adds language to define the term “pyramid promotion scheme” and limits funds for enforcement actions outside the definition. The amendment was adopted on a voice vote.

Rep. Harris (R-MD) – The amendment prohibits funds for doctor-assisted suicide in the District of Columbia, and repeals the DC Death with Dignity Act. The amendment was adopted on a vote of 28-24.

Rep. Lowey (D-NY) – The amendment increases the Office of Government Ethics by $349,000 – equal to the Administration’s request. These funds are offset by a reduction in the Department of Treasury department-wide systems and capital investments program. The amendment was adopted on a voice vote.

Rep. Young (R-IA) – The amendment Requires GSA to post National Environmental Policy Act (NEPA) findings online for which the GSA Administrator has solicited public comment. The amendment was adopted on a voice vote.

Rep. Aguilar (D-CA) – The amendment adds language allowing those individuals authorized to be employed under the Deferred Action for Childhood Arrivals program to be eligible for employment by the federal government. The amendment was adopted on a voice vote.

House FY18 Financial Services Bill Text:

https://appropriations.house.gov/uploadedfiles/6.28_fsgg_bill_xml.pdf

House FY18 Financial Services Report Language:

https://appropriations.house.gov/uploadedfiles/fsgg.report.07.13.17.pdf

Homeland Security

The House Homeland Security Appropriations Subcommittee marked up its $44.3B FY18 spending bill this week. The bill is $1.9B above FY17 enacted levels. The bill includes $13.8B for Customs and Border Protection ($1.6B above FY17), $7B for Immigration and Customs Enforcement ($619.7M above FY17), $10.5B for the U.S. Coast Guard ($31.7M above FY17), $7.2B for the Transportation Security Administration ($159.8M below FY17), $1.8B for Cybersecurity and Protection of Communications, $2B for the U.S. Secret Service ($101M below FY17), and $7.3B for the Federal Emergency Management Agency. The bill also includes $1.6B for physical barrier construction along the U.S. southern border and $6.8B for disaster relief and emergency response activities. The legislation does not fund most Citizen and Immigration Services (CIS) activities, as these are funded outside the appropriations process. However, the bill does contain $131M for E-Verify. The bill does not include an increase in TSA passenger fees nor a redirection of Brand USA Travel Promotion fees (both of which were included in the President’s FY18 budget request). The bill will be marked up in full committee Tuesday.

House FY18 Homeland Security Bill Text:

https://appropriations.house.gov/uploadedfiles/homeland_07.11.17_xml.pdf

Interior and Environment

The House Interior and Environment Appropriations Subcommittee marked up its $31.4B FY18 spending bill this week. 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. In total, the bill provides $31.4B, $824M below the FY17 enacted level and $4.3B above the President’s budget request. The bill funds wildland firefighting and prevention programs at $3.4B ($334M below FY17), $465M for the “Payments In Lieu of Taxes” (PILT) program, $7.5B for the EPA ($528M below FY17), $2.9B for the Bureaus of Indian Affairs and Education ($10M above FY17), $5.1B for the Indian Health Service ($97M above FY17), $213M for the Office of Surface Mining ($40M below FY17), $1.2B for the Bureau of Land Management ($46M below FY17), $2.9B for the National Park Service ($64M below FY17), $5.2B for the U.S. Forest Service, $1.5B for the U.S. Fish and Wildlife Service ($38M below FY17), $1B for the U.S. Geological Survey ($46M below FY17), $885 for the Smithsonian Institution ($22M above FY17), $145M for the National Endowments for the Arts and Humanities ($5M below FY17), $16.6M for the Eisenhower Memorial Commission, $275M for the Land and Water Conservation Fund ($125M below FY17), and $11M for the Chemical Safety and Hazard Investigation Board (same as FY17). The bill will be marked up in full committee next Tuesday.

House FY18 Interior Bill Text:

https://appropriations.house.gov/uploadedfiles/fy18_interior_xml.pdf

Labor, Health and Human Services, Education

The House Labor, HHS, and Education Appropriations Subcommittee marked up its $156B FY18 spending bill this week. The legislation includes funding for programs within the Department of Labor, the Department of Health and Human Services, the Department of Education, and other related agencies.

In total, the draft bill includes $156 billion in discretionary funding, which is a reduction of $5 billion below the FY17 enacted level. The bill provides $10.8B for the Department of Labor ($1.3B less than FY17), $77.6B for HHS ($542M less than FY17), $66B for the Department of Education ($2.4B less than FY17), $1B for the Corporation for National and Community Service (same as last year), $445M for the Corporation for Public Broadcasting (same as last year), $249M for the National Labor Relations Board (NLRB) ($25M less than FY17), and $12.5B for the Social Security Administration (same as last year). The bill includes some policy provisions prohibiting the NLRB from applying its revised “joint-employer” standard in new cases and proceedings and from exercising jurisdiction over Tribal governments. The legislation also contains several provisions to stop the implementation of ObamaCare – including prohibiting the use of any new discretionary funding to implement ObamaCare. Finally, several programs were terminated including:

• Employment Service Grants ($671 million);
• International Labor Affairs Grants ($60 million), consistent with the budget request;
• CDC Climate Change program ($10 million), consistent with the budget request;
• Economic Development Grants ($20 million), consistent with the budget request;
• “Striving Readers” program ($190 million), consistent with the budget request;
• Health Careers Opportunity Program ($14 million), consistent with the budget request; and
• Overseas foreign language study program ($7 million), consistent with the budget request.

The bill will be marked up in full committee next Wednesday.

House FY18 Labor HHS Education Bill Text:

https://appropriations.house.gov/uploadedfiles/turn_4_xml.pdf

State and Foreign Operations

The House State and Foreign Operations Appropriations Subcommittee marked up its $47.4B FY18 spending bill this week. The legislation funds the State Department, the United States Agency for International Development, and other international activities. In total, the bill provides $47.4 billion in both regular discretionary and Overseas Contingency Operations (OCO) funding. This total is $10 billion below the FY17 enacted level, when counting additional funds provided in the Security Assistance Appropriations Act of 2017. Within this amount, OCO funding totals $12 billion, which supports operations and assistance in areas of conflict, such as Iraq, Afghanistan, and Pakistan. The bill provides $15.4B in base and OCO funding for the State Department ($2.6B less than FY17), $8.8B in base and OCO funding for International Security Assistance ($624M less than FY17), $1.5B for the United States Agency for International Development (USAID) ($115M less than FY17), and $888M for multilateral assistance ($1.2B less than FY17). The bill also provides policy provisions on Syria, Egypt, Afghanistan, the Palestinian Authority, countering Russian influence and aggression, records management at State and USAID, Guantanamo Bay, assistance to foreign governments and local organizations, multi-year funding commitments, UN reform, North Africa strategy, the UN Arms Trade Treaty, OPIC anti-coal regulations, Mexico City Policy, and other anti-abortion measures. The bill will be marked up in full committee next Wednesday.

House FY18 State Foreign Operations Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap–stateforop-fy2018stateforeignoperationsappropriations.pdf

Transportation HUD

The House Transportation, Housing and Urban Development Appropriations Subcommittee marked up its FY18 spending bill this week. The legislation includes funding for the Department of Transportation, the Department of Housing and Urban Development, and other related agencies. In total, the bill reflects an allocation of $56.5B in discretionary spending – $1.1B below FY17 and $8.6B above the President’s budget request. The bill includes $17.8B for the Department of Transportation ($646M above FY17) – $16.6B for the Federal Aviation Administration ($153M above FY17), $45B for the Federal-aid Highways Program ($968M above FY17), $2.2B for the Federal Railroad Administration ($360M above FY17), $11.75B for the Federal Transit Administration ($662M above FY17), $490.6M for the Maritime Administration ($31.9M below FY17), $927M for the National Highway Traffic Safety Administration ($15M above FY17), and $268M for the Pipeline and Hazardous Materials Safety Administration ($3.7M above FY17). The bill eliminates the National Infrastructure Investment grants (also known as TIGER grants), which were funded at $500M in FY17. The bill funds the Department of Housing and Urban Development at $38.3B ($487M below FY17) and provides $6.6B for Community Planning and Development Programs ($209M below FY17). The bill will be marked up in full committee Monday evening.

House FY18 Transportation HUD Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap-fy2018-transhud-transportationhoushingandurbandevelopment.pdf

Senate Appropriators Begin Considering FY18 Spending Bills

In contrast to the House Appropriations Committee, the Senate is moving considerably slowler and will not be able to mark up all of its spending bills before the August recess.

Military Construction-Veterans Affairs

The Senate Appropriations Committee marked up and unanimously approved its $88.9B FY18 Military Construction-Veterans Affairs spending bill in subcommittee and full committee this week. The bill is $6.1B above the FY17 enacted level, which includes a $4B increase for Department of Veterans Affairs programs and a $1.8B increase for military construction. The bill provides $9.5B to fund 214 military construction projects and $331M in Overseas Contingency Operations (OCO) funding for construction projects in direct support of military operations in the Middle East. The Department of Veterans Affairs is funded at $78.4B in discretionary funding, Arlington National Cemetery at $81M, the Armed Forces Retirement Home at $64.3M, the American Battle Monuments Commission at $79M and the U.S. Court of Appeals for Veterans Claims at $33.6M.

Senate FY18 Military Construction-Veterans Affairs Bill Text

https://www.appropriations.senate.gov/imo/media/doc/FY18%20MilCon-VA%20Bill%20S15572.pdf

Senate FY18 Military Construction-Veterans Affairs Report Language

https://www.appropriations.senate.gov/imo/media/doc/FY18%20MilCon-VA%20Report%20115-130.pdf

Status of FY18 Appropriations Spending Bills

The House Appropriations Committee is proceeding with appropriations bills based on spending limits that the House Budget Committee is considering for the FY18 budget resolution. Appropriators marked up five FY18 appropriations bills this week based on those spending limits. However, as mentioned above, these spending limits will trigger sequestration without a new bipartisan deal removing the caps set by the 2011 Budget Control Act. Despite no agreement on the overall spending limits, Democrats on the House Appropriations Committee did agree to advance a few FY18 spending bills this week.

Agriculture

The Agriculture Appropriations subcommittee marked up its FY18 spending bill on Wednesday. The $144.9B FY18 Agriculture Appropriations bill is $8.5B less than what was appropriated in FY17, but $4.64B above President Trump’s FY18 budget request. Discretionary funding in the bill is $20B, which is $876M less than FY17 enacted levels. In addition to funding agricultural and food programs and services, the bill includes some policy provisions. One provision would allow schools demonstrating a financial hardship to seek an exemption from the whole grain nutrition standards. Another provision would prevent further implementation of sodium reduction standards. And a final provision would provide schools with flexibility in serving low-fat flavored milk.

FY18 Agriculture Appropriations Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap-fy2018-agriculture-agriculture.pdf

Summary:

https://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394939 

Commerce, Justice, Science,

The Commerce, Justice, Science (CJS) Appropriations subcommittee marked up its FY18 spending bill on Thursday. The $54B CJS spending bill is $2.6B less than FY17 enacted funding levels, but $4.8B above the President’s FY18 budget request. The bill funds the Departments of Commerce at $29B, an increase of $349M over FY17 and includes provisions related to import applications on shotguns for sporting purposes, the importation of “curios and relics” firearms, the export of firearms to Canada, and a prohibition on “gun-walking” (i.e. the “Fast and Furious” operation). The bill makes these four provisions permanent law. The bill funds NASA at $19.9B, which is $219M above the FY17 enacted level. The Department of Commerce is funded at $8.3B, a reduction of $892M from FY17. And the National Science Foundation is funded at $7.3B, which is a $133M cut from FY17.

Other policy provisions included in the bill are a prohibition on the transfer or release of Guantanamo detainees into the U.S., a prohibition on unauthorized reporting and registration requirements on consumers purchasing multiple rifles or shotguns, a requirement for federal agencies to conduct supply chain reviews before procuring sensitive IT systems, a prohibition on NASA and OSTP from engaging in bilateral activities with China unless authorized, and a prevention of settlement money from going to activist groups by prohibiting DOJ from entering into civil settlement agreements in which the defendant is required to make a donation to a third party.

FY18 Commerce, Justice, Science Appropriations Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap-fy2018-cjs-commercejusticescience.pdf

Summary:

https://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394951

Defense

The Defense Appropriations Subcommittee marked up its FY18 Defense spending bill in subcommittee on Monday evening and full committee on Thursday morning. The bill provides $658.1B for the Department of Defense. This includes $584.2B in discretionary funding (an increase of $68.1B from FY17 enacted levels and $18.4B above the President’s FY18 budget request) and $73.9B in Overseas Contingency Operations (OCO)/Global War on Terrorism (GWOT) funding. The additional OCO/GWOT funds are targeted towards higher troop levels, readiness efforts, and equipment recapitalization and modernization. This also includes additional training time, facilities and aircraft repairs, procurement of modernized equipment, and the research and development of new military capabilities. The bill fully funds a 2.4% pay increase for the military.

During the full committee markup, members approved an amendment offered by Rep. Barbara Lee (D-CA) that repeals the Authorization of the Use of Military Force (AUMF) that was enacted after 9/11. The House Foreign Affairs Committee later said that the amendment should have been ruled out of order as they believe it violates House rules. The final bill was passed out of full committee by voice vote.

FY18 Defense Appropriations Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap-fy2018-defense-defense.pdf

FY18 Defense Appropriations Report Language:

https://appropriations.house.gov/uploadedfiles/hrpt-115-hr.pdf

Summary:

https://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394930

Energy & Water

The House Energy & Water Appropriations Subcommittee marked up their FY18 spending bill this week. The legislation provides annual funding for national defense nuclear weapons activities, the Army Corps of Engineers, various programs under the Department of Energy (DOE), and other related agencies.

The bill totals $37.56B– $209M below the FY17 enacted level and $3.65B above the President’s budget request. The bill provides $13.9B for DOE’s nuclear weapons security programs, a $976M increase above FY17. The Army Corps of Engineers is funded at $6.16B, an increase of $120M above FY17 and $1.16B above the President’s budget request. Included in the legislation is $6.4B for environmental management activities, $24.6M below FY17. Funding for energy programs within DOE is $9.6B– a decrease of $1.7B below FY17 and $2.3B above the President’s request. Science research is funded at $5.4B – the same as the FY17 enacted level. The bill continues congressional efforts to support the Yucca Mountain nuclear repository, providing $90M for the Nuclear Waste Disposal program, $30M for Defense Nuclear Waste Disposal, and $30M for the Nuclear Regulatory Commission to continue the adjudication of DOE’s Yucca Mountain License application. The bill also includes some policy provisions that would authorize the EPA Administrator and the Secretary of the Army to withdraw from the Waters of the United States rule, restrict the application of the Clean Water Act in certain agricultural areas, allow for the possession of firearms on Corps of Engineers lands, and prohibit new nuclear nonproliferation projects in Russia without certain notifications from the Secretary of Energy.

FY18 Energy & Water Appropriations Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap-fy2018-energywater-energyandwater.pdf

Summary:

https://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394941

Legislative Branch

The House Appropriations Committee marked up their FY18 Legislative Branch Appropriations bill on Thursday and reported it out of full committee by voice vote. The bill provides annual funding for the offices of Members of the House of Representatives, the support agencies of Congress, security and police forces, services for visitors, and Capitol operations and maintenance. The total included for the House and joint operations, excluding Senate-only items, is $3.58B. This is $100M above FY17 and $228M below the President’s request. Additional funding is included to increase security for Members of Congress, staff, and their constituents in the wake of the shooting at the Congressional baseball team practice this month. The legislation also includes a provision to freeze the pay of Members of Congress, preventing any pay increases in fiscal year 2018. A freeze on the salaries of representatives has been in place since 2010. The bill also funds the Library of Congress at $648M (an increase of $16M above FY17) and the Government Accountability Office (GAO) at $568M (an increase of $450 thousand above FY17). The committee accepted an amendment offered by Rep. Barbara Lee (D-CA) that adds report language encouraging more training to avoid hiring bias in House offices.

FY18 Legislative Branch Bill Text:

http://docs.house.gov/meetings/AP/AP24/20170623/106178/BILLS-115-SC-AP-FY2018-LegBranch.pdf

FY18 Legislative Branch Report Language:

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

Summary

https://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394925

House Proposes Funding Levels for FY18 Budget Resolution

The House Budget Committee was planning to mark up their FY18 budget resolution next week, but nothing has been scheduled yet. Republican members of the committee have apparently agreed on topline spending levels of $621.5B for defense and $511B for non-defense plus $65B in Overseas Contingency Operations (OCO) funding. These funding levels are $72.5B above the FY18 defense discretionary cap of $549B (and $18.5B more than President Trump requested in his FY18 budget) and $5B below the non-defense discretionary cap of $516B (but $32B more than President Trump requested in his FY18 budget). Raising the defense level above the statutory cap will require a bipartisan budget deal with Democrats to change the law in order to avoid sequestration. The FY18 budget resolution will also include reconciliation instructions requiring a minimum of $150B in savings over 10 years from entitlement programs. The reconciliation bill will be the vehicle for tax reform.

Republican Study Committee (RSC) Chairman Mark Walker (R-NC) said his group officially supports these topline spending levels, but is calling for $200B in mandatory spending savings in reconciliation instructions. If GOP members cannot agree on an FY18 budget resolution, the House might need to pass a deeming resolution to set topline discretionary spending levels.

House Continues Marking Up FY18 Appropriations Bills

While the House GOP conference meeting this morning did not finalize topline spending level decisions for an FY18 budget resolution nor an appropriations strategy, House Appropriators are moving forward with marking up their FY18 spending bills to a nondefense topline spending level of $511B. Defense hawks want additional funding for military spending ($640B), so the topline defense spending level is not settled yet for appropriators.

House Appropriators are working to get most of their FY18 spending bills done by mid-July. House leaders will then have to decide how to package the bills for floor votes – one omnibus with all 12 bills or several “minibuses.” Former House Appropriations Chairman Hal Rogers (R-KY) said that he doesn’t believe a summer omnibus spending bill is possible given the time limitations. The House is scheduled to be in session four more weeks before the start of the August recess, so they would have to post an omnibus bill in about three weeks in order to be considered on the House floor their final week of session.

Legislative Branch Appropriations Bill

The House continued the FY18 appropriations process this week by marking up their Legislative Branch spending bill. The bill provides funding for the offices of Members of the House of Representatives, the support agencies of Congress, security and police forces, services for visitors, and Capitol operations and maintenance. The total included for the House and joint operations, excluding Senate-only items, is $3.58B. This is $100 million above the FY17 level and $228 million below the President’s request. Additional funding is included to increase security for Members of Congress, staff, and their constituents in the wake of the shooting at the Congressional baseball team practice this month. The legislation also includes a provision to freeze the pay of Members of Congress, preventing any pay increases in FY18. A freeze on the salaries of representatives has been in place since 2010. The bill was approved by the subcommittee by voice vote and no amendments were offered.

Bill Text:

http://docs.house.gov/meetings/AP/AP24/20170623/106178/BILLS-115-SC-AP-FY2018-LegBranch.pdf

The House has three markups on the schedule for next week: Defense (Monday 7:00 PM), Agriculture (Wednesday 10:00 AM), and Energy & Water (Wednesday 11:00 AM).

The House Appropriations Committee marked up and reported out their first FY18 spending bill this week and agreed to the interim 302(b) suballocation for the Military Construction-Veterans Affairs (MilCon-VA) spending bill. Instead of agreeing to 302(b) allocations for all 12 spending bills, the committee intends to bring up one bill at a time with an “interim” allocation that is an estimate of what might be available once a budget resolution is passed. The interim allocation for the MilCon-VA bill was approved on a party-line vote of 29 to 22.

The $88.8B FY18 MilCon-VA spending bill was passed by unanimous voice vote after the committee accepted a manager’s package and an amendment offered by Rep. Debbie Wasserman Schultz (D-FL) that eliminates the waiver process for the hiring freeze for hiring of additional counselors for the 24-hour Veteran Crisis Line (VCL). The committee rejected an amendment offered by Rep. Barbara Lee (D-CA) that would have prohibited the use of funds to establish the White House Veterans Complaint Hotline. Lee thought the new hotline was redundant. Rep. Marcy Kaptur (D-OH) questioned the appropriateness of funding for this initiative to be in the MilCon-VA bill since it is a White House function. Lee’s amendment failed by voice vote.

The bill includes $2.1B more than FY17 funding levels for military construction and $5.3B more than FY17 funding levels for the Department of Veterans Affairs. The bill is $573M less than the President’s FY18 budget request.

FY18 MilCon-VA Bill Text:

https://appropriations.house.gov/uploadedfiles/bills-115hr-sc-ap-fy2018-milcon-subcommitteedraft.pdf

FY18 MilCon-VA Report Language:

https://appropriations.house.gov/uploadedfiles/hrpt-115-hr-fy2018-milcon.pdf

FY18 MilCon-VA Summary:

https://appropriations.house.gov/news/documentsingle.aspx?DocumentID=394909

On the Senate side, Senate Majority Leader Mitch McConnell (R-KY) instructed appropriators to rely on spending limits from FY17 as they write their bills for FY18. McConnell said that these levels would then be adjusted once they reach a budget agreement. If no new budget deal is reached, they will be bound by the discretionary spending caps in the 2011 Budget Control Act.

While appropriators haven’t let the lack of an FY18 budget resolution stop them from doing their work, the timeline for getting one passed has been further delayed. The House Budget Committee this week postponed a markup of an FY18 budget resolution that was tentatively scheduled for next week.

The House Appropriations Committee scheduled its first markup of an FY18 appropriations bill for next week. The FY18 Military Construction-Veterans Affairs (MilCon-VA) spending bill will be marked up in subcommittee on Monday, June 12 at 7:00 pm. The MilCon-VA bill is traditionally the easiest of the 12 spending bills to pass through Congress. The text of the FY18 MilCon-VA bill should be posted online Sunday evening. House Commerce-Justice-Science Appropriations Subcommittee Chairman John Culberson (R-TX) said that his bill is currently being drafted and will be marked up soon.

The House and Senate have not produced an FY18 budget resolution yet, which usually sets the overall topline spending level that appropriators then use to determine their subcommittee allocations. The 2011 Budget Control Act set an overall cap on discretionary spending of $1.065T for FY18. This is $5B less than what was appropriated in FY17. Many Republicans and Democrats consider this spending level to be too low, but changing those levels will require an FY18 budget agreement. The House and Senate Budget Committees are expected to begin work on their own budget resolutions in the coming weeks, but it’s not clear when those measures will go to the floor for consideration and then get reconciled into a compromise version. The Senate Budget Committee has a hearing scheduled for next week with Treasury Secretary Steven Mnuchin on the President’s FY18 budget request.

House Republicans are interested in passing a 12-bill omnibus measure by the August recess. The bills still need to be marked up in their respective subcommittees and then full committee before being compiled into an omnibus for consideration on the House floor. With the House scheduled to be in session only 27 more days before the August recess, appropriators will have to act quickly. Some House members have suggested working on weekends to get their bills done. And the House Freedom Caucus suggested to Republican Leadership that they cancel the August recess to continue to work on tax reform and FY18 appropriations.

While new administrations have been held captive to a 100-day agenda timeline, in January of this year House Speaker Paul D. Ryan (R-WI) and Senate Majority Leader Mitch McConnell (R-KY) laid out an ambitious 200-day agenda for Congress. When the 100-day mark of President Trump’s term came around in April, the Republican leaders reiterated that they were more focused on their 200-day agenda. The agenda the Republican leaders outlined in January included some specific timelines:

• Pass repeal and replace legislation for Obamacare and send it to President Trump by early April
• Pass a defense and border wall supplemental funding bill by April
• Pass an infrastructure bill by early summer
• Complete a tax overhaul and revamp of the IRS by August

The 200-day mark falls on August 7^th. When Congress returns next week, the House is scheduled to be in session 31 days before the August recess while the Senate is scheduled to be in session 35 days. Here’s what House and Senate Republicans want to accomplish during those seven weeks, as well as the hurdles they will potentially face.

Repealing and Replacing “Obamacare”

Republicans are trying to repeal and replace the Affordable Care Act otherwise known as “Obamacare;” and they are trying to do this without Democratic votes. But divisions within their own party aren’t making it easy.

The House passed its bill to repeal and replace the 2010 health care law on May 4. Senate leadership staff met this week with Senate staff on three committees to begin drafting the Senate bill, as they do not plan on taking up the House-passed measure. A discussion draft may be available as early as next week. Their goal is to finish work on their bill by the August recess.

They need to move quickly because they are using FY17 budget reconciliation instructions, which allow them to pass the bill by a simple majority vote in the Senate and avoid a Democratic filibuster. But it’s unclear how long the FY17 reconciliation vehicle will last. The Senate parliamentarian has not yet ruled if reconciliation instructions expire at the end of the fiscal year on September 30. And the Senate wants to get moving on an FY18 budget resolution with reconciliation instructions to move a tax reform bill. The House and Senate will have to complete a final conferenced health care repeal and replace bill before they can complete the conference on an FY18 budget resolution.

FY18 Budget Resolution

The House and Senate want to pass an FY18 budget resolution for a number of reasons. First, this year sequestration cuts set by the 2011 Budget Control Act are back in effect. Congress will have to decide if they want to offset those in some ways in order to raise the defense and nondefense spending caps for FY18. Second, as mentioned above, Republicans want to include reconciliation instructions for tax reform in an FY18 budget resolution. Reconciliation allows the Senate to consider a measure through special budget rules that only require a simple majority for passage and don’t allow for a filibuster by the minority party. Finally, Republicans criticized Democrats when they controlled Congress for going years without adopting a budget. Then they were unable to adopt a budget resolution in FY17 when they controlled both the House and Senate. While they didn’t suffer at the polls because of this, they would like to avoid giving Democrats opposition talking points. The House plans to unveil its FY18 budget plans in mid-June and hopes to pass a resolution before the July 4^th recess. The House is likely to have an easier time with a budget resolution than the Senate.

Tax Reform

Republicans want to reform the tax code for the first time in decades, but they are trying to do it without support from Democrats. They need the FY18 budget resolution’s reconciliation instructions to do this, but they can’t do that until they finish repealing and replacing “Obamacare.” While tax reform is a ways off in either chamber, Republicans are eager to show some progress. Speaker Ryan is still pushing a border adjustment tax that would tax imports and exempt exports, but that proposal is facing opposition from conservative groups, retailers, and fellow Republicans. Republicans need to find a way to pay for their tax reform proposal if they don’t want to add to the deficit. Without the border adjustment tax, they will have to find a pay for to offset the tax rate cuts that Republicans want included in their tax reform measure.

Raising the Debt Limit

Last week the Trump administration informed Congress that they would have to approve a debt ceiling increase sooner than expected. The Treasury Department said it needs to be raised before the August recess. While Treasury Secretary Steve Mnuchin said they wanted a “clean” debt ceiling hike with no strings attached, OMB Director Mick Mulvaney contradicted Mnuchin saying that he favors attaching spending reforms to any increase in the federal debt ceiling. Mulvaney said that Mnuchin’s comments did not necessarily represent the position of the administration.

Conservative groups want to tie spending cuts to a debt ceiling bill and have discussed several options:

• Pairing a debt limit increase with prioritizing the payment of interest in case the debt limit is not raised.
• A balanced budget amendment.
• Caps on mandatory spending.
• Extending the sequester.
• Adding work requirements to government assistance programs.
• Matching any debt limit increase with spending cuts, as was done with the 2011 deficit reduction law.

Republicans will probably need Democrats’ support to pass a clean measure. However, Senate Democrats may push for their own concessions (health care or FY18 spending caps) if their votes will be needed to avoid a government default.

FY18 Appropriations Bills

Congress is behind schedule on the FY18 appropriations process, and there is little time for them to pass each of the 12 spending bills separately on the House and Senate floors given their other priorities. In order to avoid a government shutdown on October 1, Rep. Tom Graves (R-GA) raised the possibility of the House approving an omnibus appropriations bill before the August recess. Republicans will likely need Democrats support to pass the FY18 spending bills. And while President Trump called for a “good shutdown” to fix the “mess” in Washington, Republicans in Congress want to avoid a shutdown.

This ambitious summer agenda means that an infrastructure investment bill will be delayed. But moving up the debt ceiling debate and FY18 spending bills from the fall to this summer could free up some time later this year for transportation issues. The White House is expected to release details on their infrastructure plan next week. One transportation issue that will definitely get attention this fall is the FAA reauthorization bill, which Congress has to pass or extend before it expires on September 30.