Steptoe is tracking the fast-moving developments in the federal appropriations process on behalf of our clients. Below are the top developments you need to know.
The Topline:
With the holidays on the horizon, the House left town this week without a bicameral agreement on topline spending levels, which appropriators need in order to distribute subcommittee funding allocations and begin writing a final bill. This leaves very little time to reach an agreement by the January 19 and February 2 deadlines. Staff-level talks between House and Senate leadership haven't been fruitful this week, and the Senate has yet to return a counter-offer to the House on the topline negotiations.
With regard to supplemental aid for Ukraine, Israel, and border security, Leader Schumer announced that the Senate will remain in session on Monday to give negotiators time to work through the weekend in an effort to reach a framework agreement. While the White House has recently become more involved and offered concessions on immigration policy in a bid to win over Republicans, the talks remain deadlocked and senators have expressed skepticism that a deal can be reached by Monday.
House:
- Dec. 13 - Negotiations over a government
funding framework are almost certain to slip until January, when
lawmakers return from the holiday recess with just two weeks to
strike a deal on spending limits and reconcile their differences
over several spending bills before the first of two shutdown
deadlines on Jan. 19. Top appropriators are starting to get
anxious, awaiting the outcome of staff-level talks between Speaker
Johnson and Senate Majority Leader Chuck Schumer. Politico Pro
- Related: Rosa DeLauro (D-CT), her party's top appropriator in the House, agreed it's "unrealistic" to think they'll meet the first of two shutdown deadlines Jan. 19, even if there's a deal on a government funding framework by the end of the year. Reconciling the bills could take between four to six weeks, DeLauro estimates. Politico Pro
- Related: Since Republicans have sworn off the traditional "omnibus" bundling of a dozen annual spending bills, leaders might also need to agree on how to package the bills at the outset of the upcoming debate. After settling on a toplines framework, it typically takes weeks for Congress to debate the finer points, print bill text and whip enough support before an accord is shipped off to the president. Politico
- Related: Never mind the stalemate over fiscal 2024 appropriations. The largest bloc of House conservatives wants to get the ball rolling on the fiscal 2025 budget process. Republican Study Committee Chairman Kevin Hern (R-OK), presented a memo to his membership that calls on Speaker Johnson, to start discussing a fiscal 2025 budget resolution as soon as this month so Congress can finish the appropriations process on time next year. House Republicans did not adopt a budget resolution this year. CQ
- Dec. 12 – Speaker Johnson is facing major pressure from his right flank to nix any money that might fall outside of the debt deal's strict spending limits, including a side agreement that would soften steep nondefense cuts. Earlier this summer, Senate Democrats and Republicans also agreed to add $14 billion in emergency funding to their fiscal 2024 bills. Lawmakers in the upper chamber aren't likely to bend to conservative demands to forgo some of those routine mechanisms allowing Congress to classify money outside the spending caps. Politico Pro
- Dec. 12 - Ukrainian President Volodymyr Zelensky came to Congress to appeal for more aid to resist Russia's invasion, and Republican leaders told him to first wait for an elusive US deal on immigration. Speaker Johnson said he told Zelensky that Republicans "stand with him and against Putin's brutal invasion" but won't send more aid until Democrats accept "a transformative change" in US border policies. Republicans' demands on the US-Mexico border have delayed new Ukraine assistance for months. BGOV
Senate:
- Dec. 14 - The Senate is planning to delay its
holiday recess and stay in session next week as lawmakers signaled
they could be close to a bipartisan border security deal that would
clear a path for aid to Ukraine and Israel. The change in schedule
came after several days of intense negotiations among senators of
both parties and White House staff who were struggling to reach a
deal on immigration policies designed to curb the flow of migrants
at the southern border. CQ
- Related: Senate Majority Leader Schumer says negotiators will keep working "to get closer to an agreement" on immigration policy and the emergency aid the issue is delaying for Israel, Ukraine and Taiwan. On the other side, Senate Minority Leader Mitch McConnell (R-KY) says he's "hopeful we can reach an agreement." Politico Pro
- Related: Top Senate and Biden administration officials met Tuesday with Homeland Security Secretary Alejandro Mayorkas in hopes of reaching an elusive deal on border security measures that could unlock support for aid to Ukraine and Israel. Senators emerged from the nearly two-hour session claiming progress toward a potential compromise, while declining to discuss details. CQ
- Dec. 11 - The federal deficit totaled $383 billion during October and November, the first two months of fiscal year 2024, the Congressional Budget Office notes in its monthly budget update. That's $47 billion more than the deficit logged for the same time last year. Politico Pro
- Dec. 11 - Tax writers are negotiating a potential deal to revive lapsed business tax incentives and expand the child tax credit, but Washington is still waiting to see if there's a way to pass any tax provisions in the coming months. CQ
Administration:
- Dec. 14 - In new letters to Senate Appropriations Committee Chair Patty Murray (D-WA) and Vice Chair Susan Collins (R-ME), Secretary of Defense Lloyd J. Austin III and our nation's top defense leaders detailed how a first-ever full-year continuing resolution (CR) for the Department of Defense would have severe repercussions for our national defense strategy, servicemembers and their families, and our military readiness. These letters can be found below:
Next Week
Hearings
- None
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
