Overview
Back in Town, Back to Work: After a much-needed break, Congress hit the ground running this week in their effort to address the looming September 30 government funding cliff, with just 11 working days remaining to find a solution. As a reminder, before the recess, the House advanced nine of its twelve appropriations bills through committee and passed two on the floor. The Senate moved eight bills through committee and passed a three-bill minibus in the chamber, covering Ag-FDA, Leg Branch, and MilCon-VA.
This week, progress continued in the House with the chamber narrowly passing Energy and Water (214–213) while also advancing FSGG in full committee and Labor-HHS in subcommittee. On the Senate side, Appropriations Chair Susan Collins (R-ME) indicated that the committee plans to mark up two additional bills next week.
Opening Bids: While talks remain fluid, one strategy being floated is to pass a short-term continuing resolution (CR), providing funding through November for nine appropriations bills, while also attaching to the measure the remaining three-bill minibus passed by the Senate in July. Senate Appropriations Vice Chair Patty Murray (D-WA) expressed an openness to exploring this strategy.
What happens next is uncertain. Congressional leaders have yet to reach an agreement on the overall topline, much less subcommittee allocations. A framework would need to be in place before negotiations begin on a larger deal. House Appropriations Committee Chair Tom Cole (R-OK) noted that these negotiations will likely center on two of the largest and most contentious bills: Defense and Labor-HHS.
Senate Minority Leader Chuck Schumer (D-NY) made clear in a letter to colleagues this week that Democrats will not support any spending bill negotiated solely by Republicans. Meanwhile, Republican fiscal hawks are signaling their preference for a full-year CR over passing individual appropriations bills.
Out of Pocket: Given the fragile state of funding negotiations, the Office of Management and Budget's (OMB) move this week to use what’s known as "pocket rescissions" to cut appropriated spending without congressional approval has come at an inopportune time. House Appropriations Committee Ranking Member Rosa DeLauro (D-CT) argued that the use of pocket rescissions only sows distrust between Republicans and Democrats, as Democrats believe any spending bill that is enacted will ultimately be implemented selectively by the administration.
This time the pushback has been bipartisan. Chairman Cole noted that he would like to hold a vote on the measure. Though he indicated he doesn't have an issue with the substance of the request, he feels it should be approved (or disapproved) by Congress as a matter of process. Chair Collins issued a statement noting the Government Accountability Office (GAO) has "found this type of rescission to be unlawful" under the Impoundment Act and called for a bipartisan appropriations process to reduce spending.
It will be up to the GAO as to whether to pursue a lawsuit against the administration over the rescission of these funds. OMB Director Russ Vought defended the request, saying that pocket rescissions were used by both President Carter and President Ford, while arguing that the GAO should not exist. As lawmakers work to reach a funding deal, the administration's commitment to pursuing recissions continues to cast a shadow on the overall negotiations.
