January 5, 2017

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115th Congress and Funding: Quick Update

As part of our advocacy effort, AASA belongs to the Children's Budget Coalition. Here are three items of note from the first meeting of 2017:   

    • HOW IT IMPACTS APPROPRIATIONS: The House Rules for the 115th Congress, which were adopted on Tuesday, contain several provisions that relate to budget and appropriations matters.  Check out this section by section summary of all the Rules and attached are the summaries of the relevant appropriations and budget sections.  
    • HOLMAN RULE OVERVIEW: The new House Rules reinstate the “Holman Rule,” a 19th century House rule that was rescinded in 1983.  Under the rule, amendments to appropriations bills being considered on the House floor can cut the number or salaries of federal employees covered by the bills provided they are paid with Treasury Department funds.  The rule will be reinstated only for the first session of the 115th Congress. The purpose of this provision is to see if the reinstatement of the Holman rule will provide Members with additional tools to reduce spending during consideration. The reinstatement of the rule is part of a “far broader strategy” in Congress to change the nature of the federal workforce, including the way federal workers are hired and fired.  There are conservatives in the House who want to cut the number of government employees and roll back salaries on an agency-by-agency, program-by-program basis.  The rule will allow them to introduce amendments to this end.  Before this rule change, an agency’s budget could be cut broadly, but a specific program, employee or groups of employees could not be targeted because of civil service protections.  Rep. Steny H. Hoyer (D-Md.) stated that he's “deeply concerned” that the rule “would make it easier for the Majority to circumvent the current legislative process to fire or cut the pay of federal employees.”  The rule could allow “far-reaching changes to the nonpartisan civil service on the basis of ideology,” Hoyer said. Read this related article from the Washington Post.
  • FY 17 BUDGET RECONCILIATION BILL:  PROCESS, TIMELINE & UPDATE The bills reconciliation instructions direct four relevant committees (Senate Finance & HELP and House Ways & Means and Energy & Commerce) to draft legislation by January 27th which would reduce the deficit by at least $1 billion over ten years.  The instructions do not specify the changes to be made, but they are universally understood to involve repeal of substantial parts of the ACA.  Once both the Senate and House pass the budget resolution, the House Ways & Means and Energy & Commerce will hold markups and produce the actual legislation to repeal the ACA.   They will then submit their legislation to the House Budget Committee to be combined into a single package for consideration by the full House.  Note that the Senate Finance & HELP would normally draft their own legislation, but it’s widely expected that they will consider whatever reconciliation legislation passes the House.  Congress is aiming to have the legislation to the President’s desk by the end of February. The resolution overcame its first procedural hurdle in the Senate yesterday even though lawmakers made clear after a morning meeting with Vice President-elect Mike Pence that any replacement plan is at least months away.  The Senate voted 51-48 yesterday afternoon to proceed to the resolution, S. Con. Res. 3, which would set up a filibuster-proof process, ensuring the chamber’s consideration of legislation repealing parts of Obamacare and replacing it, either as one bill or as separate measures.
  • FY 18 PRESIDENT’S BUDGET:  OUTLINE IN FEBRUARY & FULL BUDGET COMING IN MAY: President-elect Donald Trump plans to submit a fiscal 2018 budget request to Congress but it may not come until later in the spring, lawmakers and staff said Wednesday.  While it is the usual practice of presidents to submit a budget for the fiscal year beginning after their election, there was a lack of certainty about whether Trump would and even some speculation he would skip it. Rep. Tom Cole, R-Okla., said it's likely the president’s budget request would not be submitted to Congress until May, months after the statutory deadline of the first Monday in February.  Separately, a GOP aide said he has heard Trump may submit an outline of the budget in late February.

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