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
Senate FY18 Commerce, Justice, Science Appropriations Bill Text
Senate FY18 Commerce, Justice, Science Report Language
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
Senate FY18 Legislative Branch Appropriations Bill Text
Senate FY18 Legislative Branch Report Language
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
Senate FY18 Transportation HUD Appropriations Bill Text
Senate FY18 Transportation HUD Report Language
Status of FY18 Appropriations Spending Bills
| Subcommittee | House Action | Senate Action |
| Agriculture | Subcommittee: June 28
Full Committee: July 12 |
Subcommittee: July 19
Full Committee: July 20 |
| Commerce Justice Science | Subcommittee: June 29
Full Committee: July 13 |
Subcommittee: July 25
Full Committee: July 27 |
| Defense | Subcommittee: June 26
Full Committee: June 29 |
|
| Energy & Water | Subcommittee: June 28
Full Committee: July 12 |
Subcommittee: July 19
Full Committee: July 20 |
| Financial Services | Subcommittee: June 29
Full Committee: July 13 |
|
| Homeland Security | Subcommittee: July 12
Full Committee: July 18 |
|
| Interior | Subcommittee: July 12
Full Committee: July 18 |
|
| Labor HHS | Subcommittee: July 13
Full Committee: July 19 |
|
| Legislative Branch | Full Committee: June 29 | |
| MilCon-VA | Subcommittee: June 12
Full Committee: June 15 |
Subcommittee: July 12
Full Committee: July 13 |
| State Foreign Ops | Subcommittee: July 13
Full Committee: July 19 |
|
| Transportation HUD | Subcommittee: July 11
Full Committee: July 17 |
Subcommittee: July 25
Full Committee: July 27 |