Steptoe has been consistently 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
Action item: If you have pending FY24 federal funding or appropriations-related interests, now is the time to be engaging Appropriators.
Newly-elected Speaker Johnson has put forth an ambitious schedule leading up to the funding deadline on November 17, and the Senate passed its first three-bill "minibus" this week. While we don't expect any of these bills to become law soon, we are anticipating a continuing resolution (CR) will pass extending government funding, though Congress has the knack for stumbling into a shutdown now and then. Complicating the passage of a CR, Speaker Johnson Thursday floated the idea of a "laddered CR," giving different funding extensions for different appropriations bills, or even different agencies. This unvetted proposal will most likely not ripen in time for CR consideration. Speaker Johnson has been clear he supports continuing government funding but is certainly open to new ideas and quickly learning while on the job. So many things can change, but we do still see a narrow but achievable path for enacting most or all of the FY24 appropriations bills next year.
The supplemental appropriations bills providing funding to Israel, Ukraine, and border security are fluid at the moment as differences remain between the parties on policy (border security language) and on procedure (using revenue offsets or not, and how to package the bills separately or together.) There are procedural ways to accommodate both chambers on the packaging issue, but the other issues will need to be addressed.
Finally, this week, House Appropriations Committee Chair Kay Granger's (R-TX) announcement that she will not seek re-election in 2024 has triggered a race for the next House Appropriations top Republican. This race will be pivotal to the trajectory of the appropriations process in the 119th Congress.
House:
- November 3 - The House on Friday voted 213-203 to approve a $25.4 billion fiscal 2024 funding bill for the EPA and Interior Department, a measure that would dramatically slash funds for the agencies and the Biden administration's climate change priorities, but which has no hope of passing the Democratic-controlled Senate or being signed by President Joe Biden. Politico Pro
- November 3 – The House Appropriations Committee is looking to fill a vacant seat following former Rep. Chris Stewart's (R-UT) resignation, that Rep. Burgess Owens is considering seeking the appointment. Also, in the running are Reps. Lori Chavez-DeRemer (R-OR), Nick LaLota (R-NY) and Chuck Edwards (R-NY). The Republican Steering Committee is not expected to make a decision until after they meet to decide on Vice-Chair for the Republican conference. Roll Call
- November 2 - The House passed a bill on Thursday to provide $14.3 billion in aid to Israel as it fights a war against Hamas – a move that sets up a clash with the Democratic-led Senate in an early leadership test for Speaker Mike Johnson. CNN
- Related: President Biden would veto legislation that would provide aid only to Israel, even if a GOP proposal that simultaneously cut funding to the IRS were removed, National Security Council spokesman John Kirby said to reporters. BGOV
- November 2 - House Republicans passed their fiscal 2024 funding bill Wednesday night to fund Congress and the agencies that support it, again blocking their own cost-of-living pay increase. In a 214-197 vote, the chamber approved the Legislative Branch funding bill, with four Democrats voting in support. It marks the sixth fiscal 2024 measure to pass the House this year and the second to succeed on the floor since new Speaker Mike Johnson was sworn in last week. Politico Pro
- November 2 - House GOP leaders are putting off consideration of fiscal 2024 appropriations for the departments of Transportation and Housing and Urban Development, after some Republicans said they would oppose the measure over its cuts to Amtrak and other rail operations. CQ
- November 1 - House Appropriations Chairwoman Kay Granger announced she will not seek reelection. Granger said she will serve out the remainder of her term and "work with our new Speaker and my colleagues to advance our conservative agenda and finish the job I was elected to do." CNN
- October 31 - House Republicans unveiled a revised version of their Labor-HHS-Education appropriations bill that includes a number of new conservative social policy riders related to abortion, gun control and diversity. Revised Bill Text; CQ
- Related: The House Rules Committee sent out notices giving members until Nov. 3 to submit amendments for the fiscal 2024 Labor-HHS-Education bill (HR 5894), and until Nov. 6 for the Commerce-Justice-Science bill (HR 5893). The Rules panel would then meet the week of Nov. 13 to consider what amendments would be allowed during floor debate. CQ
Senate:
- November 2 - Senate Republicans are preparing an offer on border and immigration policy, aiming to tie it to a bill with aid to Ukraine, Israel, and the Indo-Pacific. The GOP proposal on border measures is meant to give the emergency funding bill enough backing among conservatives to overcome hardliners' opposition to further Ukraine aid. BGOV
- November 1 - The Senate passed its three-bill funding package, nearly two months after the measure cleared its first legislative hurdle in the upper chamber. Senators approved the $280 billion funding bundle in an 82-15 vote, following weeks of haggling over amendments that threatened to sink the fiscal 2024 measure at times. The legislation combines the Agriculture-FDA, Military Construction-VA and Transportation-HUD bills, considered some of the least controversial spending measures. Politico Pro
- October 31 - Senate appropriators are mulling a continuing resolution that would run until mid-December, which would put the chamber on a collision course with new Speaker Mike Johnson, who's been pushing to kick final spending decisions into next year. CQ
Administration:
- The White House released several Statements of Administration Policies this week vowing to veto spending bills put forward by House Republicans, which includes their supplemental funding bill for Israel, Interior-Environment, and Transportation-Housing and Urban Development. These Statements of Administration Policies can be found below:
Next Week
Hearings:
- Senate Appropriations Committee
- Wednesday, November 8 at 10am: Full Committee Hearing: "A Review of the President's Supplemental Request for the Departments of Health and Human Services and Homeland Security". (Link)
- House Rules Committee
Floor Action:
- House
Deadlines:
- House Rules Committee
- Friday, November 3 at 1:00pm: Amendments for the Labor, Health and Human Services, Education, and Related Agencies (R. 5894) are due. List of submitted amendments can be found here.
- Monday, November 6 at 12:00pm: Amendments for the Commerce, Justice, Science, and Related Agencies (R. 5893) bill are due. List of submitted amendments can be found here.
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.