Overview
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
Despite initial momentum upon Speaker Johnson’s election, House Republicans have begun losing steam this week, with House leadership pulling both the Financial Services and General Government Appropriations bill (H.R. 4664) and the Transportation, Housing and Urban Development Appropriations bill (H.R. 4820) from consideration due to disagreements within the party. The path forward remains murky, with the November 17 deadline fast approaching and many predicting a shutdown.
Speaker Johnson (R-LA) listened to the GOP conference’s concerns and desires for the Continuing Resolution (CR) this week. The Speaker remains mum about what path he prefers, but he will need to file legislation tonight or this weekend to have it on the floor Tuesday, as he indicated. The wide range of legislative possibilities floated this week is too many to count or detail here. However, at the end of the day, we want to remind clients that the final product must pass both Chambers and be signed by the President to succeed.
Meanwhile, Senator Schumer has filed a motion to proceed on (presumably) a clean CR. This motion will ripen next week, giving the Senate an opportunity to pass their own CR and send it to the House before the end of the week.
As we reported last Friday, Congress indeed has a way of stumbling into a shutdown by not preserving enough time for the political machinations needed to pass such legislation. This is different than an intentional shutdown used as a negotiating tool. Our team doesn’t see support for a deliberate shutdown. Further, we remain cautiously optimistic that appropriators and leadership will reach a deal before the deadline next Friday.
Passage of a supplemental spending package for Israel, Ukraine, and border security remains deadlocked, though Israel funding has been floated as an option for inclusion on the CR. A bipartisan group of senators has banded together to find a path forward. Still, Sen. Chris Murphy (D-CT), a member of the bipartisan group, has cast doubt on the likelihood of success in these negotiations.
The House Republican Steering Committee is expected to meet on Monday, November 13, to determine which member will fill a vacancy on the House Appropriations Committee. There are currently three members vying for the seat: Reps. Lori Chavez-DeRemer (R-OR), Chuck Edwards (R-NC), and Nick LaLota (R-NY).
House
- November. 9 - House Republicans bailed again on passage of one of their fiscal 2024 funding bills today, heading home for Veterans Day weekend without a final vote on the Financial Services spending measure. Both centrist and conservative Republicans threatened to vote against the $25 billion bill, which is usually among the least controversial of the 12 annual appropriations measures. Politico Pro
- November. 8 - House Republicans are expected to roll out their plan for a stopgap spending measure in the next 24 to 48 hours, senior appropriators leaving a meeting with Speaker Johnson said. Johnson has been considering a “laddered” approach in which four bills would be extended to Dec. 7 and the rest to Jan. 19, or a more straightforward continuing resolution to January that would include thus far unspecified “stipulations.” CQ
- November. 8 - Speaker Johnson’s goal of passing the remaining five funding bills before Thanksgiving is in jeopardy. The Financial Services, Transportation-HUD, Commerce-Justice-Science, Labor-HHS-Education, and Agriculture-FDA bills all have significant problems that could impede Republicans’ ability to even bring the measures to the floor in the coming weeks. Politico Pro
- November. 8 - The contest for the open House Republican appropriations seat will remain a three-person race, as Rep. Burgess Owens (R-UT) has decided to pass on a run. CQ
- November. 8 - House Budget Republicans have launched their own task force devoted to reforming the federal budget process, noting they eventually plan to share their findings with their Senate counterparts. The panel will be led by Rep. Rudy Yakym (R-IN.). Politico Pro
- November. 7 - House leaders abruptly postponed a final vote on their fiscal 2024 Transportation-HUD appropriations bill Tuesday night amid concern that the measure lacked enough support to pass. The decision, which marked the second delay in as many weeks, came after some Republicans had threatened to oppose the measure over its cuts to Amtrak and transit grants. A vote on passage had been scheduled for Tuesday night after a long series of amendment votes, but leaders announced they were pulling the bill shortly after 10 p.m., just as the time for a final vote was nearing. CQ
Senate
- November. 9 - Senators introduced a bill Wednesday to create a bipartisan debt commission, signaling bicameral interest in a measure emphasized recently by the House’s new speaker. The bill, offered by Sens. Mitt Romney (R-UT) and Joe Manchin (D-WV), would create a bipartisan, bicameral panel tasked with recommending measures to stabilize the federal debt and improve the solvency of trust funds that support major entitlement programs. BGOV
- November. 8 - As bipartisan Senate talks over the border get under way, the lead Democrats involved are offering a warning: Don’t get your hopes too high for a deal. Semafor
- Related: John Cornyn (R-TX) issued a filibuster threat today against any aid package to Ukraine that doesn't include border security and immigration reforms. Cornyn’s ultimatum comes as Senate Majority Leader Chuck Schumer (D-NY) claims the border security and immigration policies Senate Republicans rolled out Monday are “a total non-starter,” as he calls for bipartisan cooperation to avoid a shutdown next week, deliver aid to Israel and Ukraine, and humanitarian assistance for Gaza. Politico Pro
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- Related: A group of Senate Republicans outlined a border and immigration proposal yesterday, aiming to attach it to a broader bill with aid for Ukraine and Israel. The proposal could be attached to a stopgap funding bill to keep the government running beyond Nov. 17. BGOV
Administration
- November. 8 - Homeland Security Secretary Alejandro Mayorkas told Senate appropriators that the Biden administration isn’t going to accept "piecemeal" policy demands GOP senators want tied to whatever emergency aid package might move through Congress, as he fielded questions about the Biden administration's $13.6 billion emergency funding request for handling the surge of undocumented immigrants at the U.S.-Mexico border. Politico Pro
- The White House released the following Statement of Administration Policy:
Next Week
Hearings:
- House
Floor Action:
- House
- Senate
- Continuing Resolution consideration by full Senate (time/date TBD)
