Update from Washington, D.C. 07/20/2012
With transportation reauthorization in the rearview mirror,
Congress has shifted its focus to some of the major fiscal issues
facing the country, including efforts to revise the impending
across-the-board spending cuts in defense and non-defense
programs. The reductions, which were approved as part of last
year’s Budget Control Act (PL 112-25), are scheduled to take
effect on January 2nd.
Republicans and Democrats remain far apart on how to revise the
automatic cuts, known as budget sequestration, though both
parties acknowledge that the reductions need to be modified.
Republicans generally support spending cuts, with some
modifications, while many Democrats argue that additional revenue
must be part of any potential solution. Lawmakers on both sides
of the aisle agree, however, that more information is needed on
how the sequester would be implemented and how the cuts would
impact individual programs and industries.
The House overwhelmingly approved legislation (HR 5872) on July
18 that would require the Obama administration to explain how
sequestration would affect both domestic and defense programs.
Across Capitol Hill, the Senate adopted an amendment to its farm
bill reauthorization measure (S 3240) that would require similar
reports from the Office of Management and Budget, the Defense
Department, and the White House. It is unclear whether Senate
Majority Leader Harry Reid (D-NV) will bring a separate measure
to the floor.
In a related development, House Democrats are calling on GOP
leaders to allow a quick and “clean” vote on a bill to raise the
federal debt ceiling before the nation reaches its borrowing
limit. Although there is no definitive date forecast for when the
debt limit will be breached, Democrats are hoping to avoid the
same budget confrontation that led to the Budget Control Act. For
his part, House Speaker John Boehner (R-OH) continues to maintain
that Congress should cut spending by an amount equivalent to the
debt ceiling increase.
With all of the focus on the budget sequester and debt limit, the
fiscal year 2013 appropriations measures have temporarily taken a
backseat. Thus far, the House Appropriations Committee has
cleared 11 of the 12 annual spending bills, with five measures
approved by the full House. In the Senate, the Appropriations
Committee has approved nine spending bills, but the full chamber
has yet to consider any of the fiscal year 2013 appropriations
measures.
At this point, it is likely that lawmakers will need to approve a
stopgap measure to extend federal funding beyond the end of the
current fiscal year, which ends in September. Leaders of both
parties would be open to an early deal in order to avoid any
threat of a government shutdown before the elections. While there
is no agreement in place on the duration and size of a continuing
resolution (CR), it will likely last beyond election day and
possibly until the end of December.
Perhaps further complicating budget negotiations, the Department
of Health and Human Services recently announced that it would
grant waivers to states, exempting them from the work
requirements written into welfare legislation (PL 104-193)
enacted during the Clinton administration. Under the law, states
generally must enroll half of their participating families in
job-training programs in order to qualify for the funding.
Republicans contend that the waivers will undermine the law’s
goal of weaning people off welfare and guiding them into the
workforce.
Senate Democrats, meanwhile, tried to advance a package outlined
by President Obama that would extend expiring Bush-era tax cuts
on income under $200,000 for single filers and $250,000 for joint
filers. House Republicans, on the other hand, are planning a vote
this month to extend the tax cuts to everyone, including
high-income earners. Both measures are entirely symbolic and have
no chance of passage. They are, instead, intended to draw the
stark differences between the two parties in advance of the
November elections.
In other developments, the House Agriculture Committee approved
its farm bill reauthorization measure (HR 6083) on July 11.
Overall, the legislation would produce a savings of $35 billion
in mandatory funding over the next 10 years, which is $12 billion
more than the Senate-approved bill (S 3240).
Cuts to the Supplemental Nutrition Assistance Program (SNAP),
formally known as food stamps, would make up the biggest savings
– $16.1 billion. This is more than three times the amount
proposed in the Senate bill. Most of the cuts would come from
scaled-back automatic eligibility in the program. During a
marathon markup session, the panel rejected Democratic efforts to
restore funding to the program, as well as a GOP amendment that
would have made even deeper cuts. It is unclear when, or if, HR
6083 will be scheduled for floor time.
In other news, the House last week approved legislation (HR 6079)
that would repeal the Affordable Care Act (ACA) in its entirety.
The move was largely a symbolic response to the Supreme Court’s
recent ruling to uphold the constitutionality of the law. Since
the start of the 112th Congress, House Republicans have made more
than 30 attempts to cut back, dismantle, or defund parts of the
ACA. Like the GOP’s earlier efforts, HR 6079 will likely not be
considered by the Senate.