As children of all ages prepare for the festivities this weekend, Halloween means something else for Congress this year: the expiration of the first Continuing Resolution (CR).  Congress is working on its second FY 2010 CR (added onto the Interior & Environment appropriations bill) which would extend FY 2009 spending levels for those bills that have not yet been enacted until December 18, 2009.  To date, Congress has passed, and the President has signed, 3 of the 12 annual appropriations bills for FY 2010 (Agriculture, Homeland Security and Energy & Water).  The second FY 2010 CR is expected to be signed into law within the next day or two.

CRs are a symptom of a breakdown in process.  Appropriations bills are rarely passed by October 1^st, the beginning of the fiscal year, and therefore CRs are used to keep the government operating in the absence of regular appropriations bills.  In the last 33 years (FY 1977-FY 2010), Congress and the President have only completed action on all the bills on schedule four times: fiscal years 1977, 1989, 1995, and 1997.  CRs have therefore become a regular part of the annual appropriations process, and since FY 1977, Congress has approved, on average, 5 CRs each year.

Source: CRS Report 7-5700, updated by author.

The appropriations process has slowed down, in part, because appropriations bills have become the context for debates on policy.  Normally policy debates would take place in the debate over authorizing legislation.  However, the authorization process has slowed, as policy debates have become more politicized and harder to resolve.  The result is that policy agreements have not been reached and the appropriations bills have become a forum for the policy debates continue, instead of assuming they are resolved at the authorizing stage.

As a result, many of the regular appropriations bills have been packed into large, omnibus appropriations bills, which must be passed or the government shuts down.  In addition, Congress has sometimes included supplemental appropriations in these CRs, further complicating and slowing the budgetary process.

Senators have passed the 2010 Department of the Interior, Environment, and Related Agencies Appropriations Act (H.R. 2996) conference report by a vote of 72 to 28. Prior to this vote, a motion to waive a point of order that the legislation violated Senate Rule 28 was adopted, 60 to 40. It was offered by Senator John McCain (R-AZ).

This measure was adopted by the House earlier today by a vote of 247 – 178.  It now goes to President Obama for his signature.

The bill would “appropriate $32.24 billion in non-emergency discretionary spending,” according to a Democratic Policy Committee summary.

This amount is $37.4 million below the President’s budget request and $4.74 billion above the enacted Fiscal Year 2009 level, when excluding Fiscal Year 2009 emergency spending levels.

The conference report provides funding “for the Department of the Interior, Environmental Protection Agency, the United States Forest Service, Indian Health Service, Smithsonian Institution, the National Endowment for the Arts and National Endowment for the Humanities and several other related agencies.”

This legislation also includes an extension of the continuing resolution passed by the Senate earlier this year.  It would extend the continuing resolution “applicability for all on-going agencies and activities that would be covered by the regular Fiscal Year 2010 appropriations bills not yet enacted into law through December 18, 2009.”

Division B of the conference report would allow the Small Business Administration to use additional budget authority to prevent a termination of loans guarantees for small businesses.

Division B of the conference report would help maintain the loan limits for single family mortgages provided by the Federal Housing Authority, Government Sponsored Enterprises, and Home Equity Conversion Mortgages at $729,750.

Division B of the conference report would also allow public housing agencies to use funding provided in the 2009 Omnibus for Tenant-Based Housing Vouchers to prevent termination of assistance to families.

No Republican Policy Committee summary was available at publish time.

(credit image – brainz)

Democratic leaders “expect Congress to be in session working on healthcare until mid December,” The Hill reports.

Administration officials such as Vice President Joe Biden had expressed hope that Congress would pass healthcare reform by Thanksgiving, but lawmakers are now hoping to get it done by Christmas.

Senate Democratic leaders are waiting for a cost analysis from the Congressional Budget Office (CBO) before beginning floor debate on healthcare reform.

Senators will pass a continuing resolution this week to keep the government functioning through December 18 so members can finish spending bills before the year is up.

Senate Majority Leader Harry Reid (D-Nev.) announced Thursday morning that the Senate would vote soon to pass a continuing resolution to fund the government until Dec. 18.

The measure, which is attached to a final bill funding the Interior Department, will receive a vote in the Senate Thursday or Friday.

(credit image – redbubble)

While they await their health care overhauls, “Congressional Democrats will this week try to make progress on other initiatives that have been moving at a glacial pace due to the inability of Senate Republicans and Democrats to come to agreement on how to deal with them,” the New York Times reports.

Democrats complain that an extension of unemployment benefits, a major Pentagon policy measure, the remaining spending bills and a series of nominations are being slowed by Republicans who are interested in keeping Congress tied up in knots and denying Democrats victories.

What they’d like to accomplish this week:

After a short week last week, the Senate is hoping to finish off the spending bill for homeland security, which includes restrictions on bringing detainees from the Guantanamo Bay detention facility into the United States.

Democrats would also like to send President Obama the annual Pentagon policy measure, which includes an expansion of the definition of hate crimes to cover those committed due to a victim’s sexual orientation.

Congress has “already passed a one-month, stop-gap spending bill, and lawmakers are already preparing another since it seems likely October will draw to a close without all the measures being finished.”

(credit image – getty)

Today is the first day of the new fiscal year.  Last night the President signed into law the Continuing Resolution (CR) that essentially maintains spending at FY 2009 levels until it expires October 31.  CRs have become a regular part of the annual appropriations process and are used to keep the government operating a fiscal year ends while Congress finishes and enacts the regular appropriations bills.  Thus far, the House has passed all 12 of its appropriations bills while the Senate has passed six.  None of these bills have been signed into law, and the FY 2010 CR includes these appropriations bills that have not been passed by Congress.

Authorizers and appropriators continue to be heavily involved in conferences to settle the differences between the versions of authorization and appropriations bills passed by their respective chambers.  The following chart outlines the current state-of-play of several pieces of legislation that deal directly with national security spending: the National Defense Authorization Act (NDAA); the Defense Appropriations Bill; and the State, Foreign Operations and Related Programs Appropriations bill.

• The Senate and the House Armed Service Committees are in the process of conferencing their bill. Both the Senate and the House have passed their versions of the NDAA, and as authorizing bills, these pieces of legislation establish, continue, or modify DOD authorities and programs.  There are real differences between the two bills concerning DOD’s foreign and security assistance programs, outlined in BFAD’s NDAA comparison piece.

• On the appropriations side, the House passed its version of the Defense Appropriations bill in July, and the Senate appropriations staffers are still working to ready their legislation for the full committee markup. The House and the Senate expect to conference their bills in mid-September.  Defense appropriations measures provide new budget authority for DOD programs, activities, or agencies previously authorized.  This timeframe is especially ambitious because the Defense Appropriations bill will contain, for the first time, funding for both the base budget and overseas contingency operations.  In recent years, supplemental appropriations have been used to provide funds for operations in Iraq and Afghanistan.

• Additionally, the State and Foreign Operations subcommittees also need to conference.  The House passed its version of the bill in June; the Senate bill is awaiting floor action.  The State and Foreign Ops bill provides new budget authority for the Department of State, its personnel, diplomatic security, USAID operating expenses, and US foreign assistance programs.  This bill is of special importance due to the Obama administration’s commitment of raising the prominence (and funding) for diplomatic and development efforts, including doubling foreign assistance by FY 2015. There are real differences between the two bills concerning security assistance programs and civilian capacity building, outlined in BFAD’s State and Foreign Ops comparison piece.

Senators have passed the final conference report to the 2010 Legislative Branch Appropriations Act (H.R. 2918) by a vote of 62 to 38.  Prior to that, members also voted to waive rule-related points of order against the measure by a vote of 61 to 39 and a budget point of order from Senator Judd Gregg (R-NH) by a vote of 61 to 39.

According to a Democratic Policy Committee summary, the bill would provide “$4.656 billion for operations of the legislative branch, an increase of $155 million, or 3.5 percent, over the amounts appropriated for legislative branch agency operations in 2009.”  No Republican summary was available at publish time.

In addition, House and Senate conferees attached a Continuing Resolution (CR) onto the appropriations bill which will keep the government functioning at current spending levels through October 31 of this year.

The summary notes that the following programs would be extended for one month under the CR:

• Intelligence programs and counter-drug activities;
• Guantanamo Bay restrictions;
• Stop-loss payments to U.S. troops;
• Child nutrition programs;
• Surface and aviation transportation programs;
• Housing programs, including the Mutual Mortgage Insurance Fund, the Government;
• National Mortgage Association, HOPE VI, and FHA Home Equity Conversion;
• Mortgages at a slightly reduced formula;
• Flood insurance and pre-disaster mitigation programs;
• Religious worker, physician, and investor visa programs;
• E-verify;
• The Chemical Facility Security Program; and
• The Ryan White Program.

According to the AP, the CR “would patch over problems in the struggling postal service and pay for soon-to-expire highway programs for an additional month as well.”

The Postal Service could delay $4 billion in payments due next month to a health care fund for retirees. Some $5.4 billion is supposed to be paid, but officials say they don’t have enough money to make the payment.

The measure also would extend the federal highway program for one month. Congress is working on a three-month extension.

As for ACORN (Association of Community Organizations for Reform Now), the bill has language “saying the organization could not receive federal dollars under the stopgap measure or any prior legislation.”

(credit image – John Schneider)

Apparently the Dem-controlled Congress doesn’t care about taking care of the people’s business.  As pointed out below not ONE 2010 appropriations bill has been passed.  But that hasn’t stopped Congress from making sure its’ appropriations bill for next year is passed.

Having failed to send the President even one completed appropriations bill so far this year,
Congress nevertheless has made sure to fund itself while other agencies contend with temporary
funding in a continuing resolution [CR]. Fiscal year 2010 starts at midnight next week Thursday,
and without a CR non-essential government activities would shut down at that point.

…

Division A of the conference report provides $4.7 billion in funding for the fiscal year 2010
Legislative Branch appropriations bill, some $254 million, or 5.7 percent, more than last year’s
scored level. The bill funds House and Senate operations, committees, and Member offices, as
well as support agencies such as the Congressional Budget Office [CBO], the Library of
Congress, and the Capitol Police. (Source: Appropriations Alert)

Where’s the outrage?  At a time when households and businesses across the country are having to tighten their belts when it comes to spending, this Congress is INCREASING its’ funding by 5.7%!  This is ludicrous & inexcusable.

The state-run media should be asking two questions.  First why the increase?  Second why is this being done before one appropriations bill is sent to the President?

Perhaps the local media (unless it’s also state-run) should start doing its job and ask those questions of  Congressman Steve Kagen since he voted for this yesterday.  Apparently Pelosi’s puppet from the WI 8th Congressional district has no problem with this.  I wonder how many of his constituents would if they were aware of this.

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A House-Senate panel “on Thursday approved legislation to keep the government from closing down when the new budget year starts next week and employed a $4 billion bookkeeping maneuver to keep the financially troubled Postal Service afloat,” the AP reports.

The one-month stopgap spending measure is needed because Congress has failed to complete work on any of the 12 annual spending bills for agency budgets that it passes each year.

The legislation was attached to a $4.7 billion measure funding the budget for Congress beginning Oct. 1. The House-Senate meeting was officially called to wrap up negotiations on that bill. But the meeting was dominated by discussion of other matters, including the decision to attach the stopgap measure, which is known as a continuing resolution, or a CR.

The financially struggling Postal Service “would be allowed to cover a budget shortfall by reducing its annual payment to a health care fund for retirees by $4 billion.”

Other provisions per the article:

• The measure would also extend the federal highway program for one month (Congress is working on a three-month extension)
• Given the controversy swirling about ACORN, officially the Association of Community Organizations for Reform Now, Democrats inserted language saying the group could not receive funding under the stopgap measure or any prior legislation.

The stopgap measure “would extend funding for the operating budgets of Cabinet departments and other agencies at current levels through Oct. 31.”

With the beginning of “the new fiscal year just a week away, Democrats controlling Congress are preparing to push through a stopgap spending bill to guarantee against a government shutdown,” the AP reports.

The routine measure is needed because Congress has failed to wrap up work on any of the 12 annual spending bills for agency budgets that it passes each year.

Several of the bills, including measures funding the departments of Agriculture, Homeland Security and Veterans Affairs are in House-Senate talks and are likely to soon face final votes and be presented to President Barack Obama.

Republicans “are bristling because Democrats are planning to add the monthlong stopgap spending bill to a $4.7 billion measure funding the operations of Congress.”

Congress is “set to begin advancing a stop-gap spending bill to keep the government open after Sept. 30, since the House and Senate are so far batting zero on the annual spending bills,” the New York Times reports.

Though the House passed all 12 of its versions of the measures before the August break, the going has been slower in the Senate. As a result – as has been the case in recent years – Congress will have to approve what is known as a continuing resolution to keep money flowing to the Pentagon and the other agencies while the final measures are worked out.

The situation is not quite as bad as it has been in previous sessions. Leaders of both parties have informally agreed to try to get the bills finished this year, rather than extending the fight into 2010 and assembling a giant measure that encompasses much of the government.

Senators have unanimously approved an extension of a continuing resolution, passed last September, which keeps the government funded at current levels. It will be extended through Tuesday.

The House passed the extension bill today by a vote of 328-50.

The AP reports that House Republicans “unsuccessfully tried to freeze most domestic agencies at current levels, but were easily defeated” during today’s rather brief debate. They wanted to recommit the bill in an effort to make this extension last through September, which would effectively kill the Omnibus.

Majority Leader Harry Reid (D-NV) locked in a unanimous consent agreement earlier today which provided for automatic passage of the extension so long as it was not changed from when it was passed last year.

Work on the $410 billion Omnibus Appropriations bill (H.R. 1105) will pick back up on Monday.  There are around 12 or 13 amendments left to consider after Democratic leaders fell one vote short of holding final votes last night.  More on that here.

At least four of those amendment votes will begin in the early evening hours on Monday.  Right now, it looks like final passage of the Omnibus will not take place until Tuesday.

Several major automakers are gearing up for a new round of lobbying when Congress returns for an expected post-election session next month.  They want to expedite the process of obtaining the $25 billion in loan funding which Congress approved for them last month in a continuing resolution.

Reuters reports:

U.S. automakers could turn to Congress after the November election to try to expedite $25 billion in government-backed loans, which Detroit manufacturers consider crucial to reversing their steep downward spiral.

The prospect of an economic stimulus bill moving before year’s end or in early January could provide an opening for General Motors Corp, Ford Motor Co and Chrysler LLC and their allies on Capitol Hill to get the money moving faster than is now expected as financial pressures grow more acute, especially at GM.

“A stimulus package could be a vehicle for further steps. I think people will take another look at whether there is a need for more clarity,” Alan Reuther, legislative director for the United Auto Workers, said.

Auto lobbyists do not discount the possibility of again working with sympathetic lawmakers on the loan issue, but note the chances of a stimulus package clearing the House of Representatives and Senate within the next few months are uncertain.

The Senate has passed a stopgap spending bill, or continuing resolution (HR 2638), by a vote of 78 to 12 (with one member, Burr, voting “Present”).  The measure keeps government programs functioning through March 6.  It also contains a few new spending bills.

Major provisions include:

• $23 billion in hurricane and flood relief
• $25 billion in loans to automakers meant to “help them retool manufacturing plants to produce hybrid and electric vehicles”
• $7.5 billion to cover the cost of auto loan defaults; the money would not be used if the loans are properly repaid
• $488 billion in funding for the Department of Defense / Pentagon
• $40 billion for “domestic security operations” / Homeland Security
• $73 billion to pay for veterans’ care programs / military construction projects
• lifts the ban on offshore drilling, although most do not expect any significant new leases to be awarded until next year at the earliest (when a new president will likely promote a comprehensive energy package with new provisions)
• over 2,300 various earmark requests worth upwards of $6.6. billion (per Taxpayers for Common Sense)

The Senate has passed a procedural (cloture) motion to limit debate on a stopgap spending measure, or continuing resolution (HR 2638), by a vote of 83 to 12.  The motion required 60 affirmative votes to pass.

Passage of this motion sets the Senate up for a final vote on the measure this afternoon.  Thirty Hours of post-cloture debate are available, but Senate leaders believe they will reach agreement to waive the full use of that time.  The House passed the resolution last week by a vote of 370 to 58.

Provisions include:

• $23 billion in hurricane and flood relief
• $25 billion in loans to automakers meant to “help them retool manufacturing plants to produce hybrid and electric vehicles”
• $7.5 billion to cover the cost of auto loan defaults; the money would not be used if the loans are properly repaid
• $488 billion in funding for the Department of Defense / Pentagon
• $40 billion for “domestic security operations” / Homeland Security
• $73 billion to pay for veterans’ care programs / military construction projects
• lifts the ban on offshore drilling, although most do not expect any significant new leases to be awarded until next year at the earliest (when a new president will likely promote a comprehensive energy package with new provisions)
• over 2,300 various earmark requests worth upwards of $6.6. billion (per Taxpayers for Common Sense)
• provides for the continuation of other government programs at Fiscal Year 2008 levels through March 6 of next year.

A procedural (cloture) vote on the continuing resolution is scheduled to take place on Saturday morning.

The package includes the following provisions, per a previous post on this blog:

• $23 billion in hurricane and flood relief
• $25 billion in loans to automakers meant to “help them retool manufacturing plants to produce hybrid and electric vehicles”
• $7.5 billion to cover the cost of auto loan defaults; the money would not be used if the loans are properly repaid
• $488 billion in funding for the Department of Defense / Pentagon
• $40 billion for “domestic security operations”
• $41 billion to pay for medical care for war veterans
• lifts the ban on offshore drilling, although most do not expect any significant new leases to be awarded until next year at the earliest (when a new president will likely promote a comprehensive energy package with new provisions)

It also reportedly includes over 2,000 earmarks worth upwards of $6.6. billion.

A recent LA Times/Bloomberg poll shows that 55 percent of the American people do not support a taxpayer bailout of the financial sector of the economy, while only 31 percent think it is the government’s responsibility to provide these funds to the struggling firms. The first plan presented, drawn up by Treasury Secretary Henry Paulson and the Bush administration, has drawn fire from many legislators and political action groups. The Paulson plan calls for $700 billion dollars to be spent to purchase the assets that the mortgage companies are unable to sell, a transfer of more authority over the markets to the Federal Reserve, and no oversight or judicial review. That would be a hard pill to swallow for any legislation, let alone a taxpayer bailout of financial corporations.

Alternatives to the plan under development since June were the biggest topic on Capitol Hill today as legislators fought to include things like equity stakes in the struggling corporations, offering the money strictly as a loan, pay restrictions for executives, and providing assistance to distressed homeowners as they worked to finalize details on a bi-partisan plan. Interestingly, the only thing not being thoroughly considered is that any bailout plan conceived be used as a last resort, rather than the first option. With over half of the population against a bailout, why is no one talking about letting the free market forces work?

While Congress works toward a “bipartisan solution,” the people from all over the political spectrum are organizing into groups against a bailout. The National Taxpayers’ Union, MoveOn.org, True Majority, Downsize DC, Credo, and FreedomWorks and many others have all begun petitions and movements against the bailout. Political action committees and candidates for office have also equipped concerned citizens with the tools to let Congress know what they think about the pending legislation.

Even with all of the fervor among the American people, Congress still worked toward crafting legislation today, striking an agreement in principle that serves both Democrats and Republicans, yet abandons the beliefs of a majority of citizens. I stand as someone who is firmly against using taxpayer money to socialize the losses when the taxpayers did not directly benefit from the profitable times.

Should the petitions and outrage among the people stop or stall the bailout plan, Congress has a plan to add it to the Continuing Resolution, legislation that authorizes the spending necessary to perform the functions of the Federal Government. Since voting against a bill that combines the bailout with the legislation that funds the Federal Government would result in a shutdown of the government, this plan appeals to Congressional leaders. This action also gives Congress a pass on the obligation that spending legislation originate in the House, as the Continuing Resolution has already passed the House. Now, the Senate could simply take the Continuing Resolution, add language authorizing the bailout, send it back to the House for an up-or-down vote and push it along to President Bush to sign.

It appears that our elected representatives seem to have already decided that the bailout will happen, regardless of the will of the people. How excited are you to be paying just over $2000 each to cover someone else’s mistakes?

The Senate is preparing to take up a stopgap spending measure, known as a continuing resolution, to keep government programs functioning through March 6 of next year.  The resolution must be passed in the absence of individual spending bills, which will be delayed until the 2009 session when a new president will be in office.

The House passed the measure yesterday with relative ease, as the New York Times reports:

Unwilling to risk one last fiscal standoff with President Bush, the House on Wednesday passed a stopgap spending measure that pushes critical spending and energy decisions off until 2009 and into the hands of the next president.

The legislation, which would keep the federal government operating through March 6, represents a gamble by Democrats that they can get a better deal on domestic spending and other initiatives from the next occupant of the White House.

One of the final must-pass measures of the year, the bill, technically known as a continuing resolution and approved on a vote of 370 to 58, totals more than $630 billion.

The legislation includes the following provisions, according to the article:

• $23 billion in hurricane and flood relief
• $25 billion in loans to automakers meant to “help them retool manufacturing plants to produce hybrid and electric vehicles”
• $7.5 billion to cover the cost of auto loan defaults; the money would not be used if the loans are properly repaid
• $488 billion in funding for the Department of Defense / Pentagon
• $40 billion for “domestic security operations”
• $41 billion to pay for medical care for war veterans
• lifts the ban on offshore drilling, although most do not expect any significant new leases to be awarded until next year at the earliest (when a new president will likely promote a comprehensive energy package with new provisions)

Additionally, Taxpayers for Common Sense reports that over 2,000 earmarks worth around $6.6 billion are currently included in the resolution.

Senators could begin the debate on this measure as early as today. It is expected to pass.

Update: A procedural vote will take place on this package on Saturday, September 27.

Behind-the-scenes work continues on a continuing resolution to keep the government functioning past October 1, when fiscal year 2008 funding is set to expire.  The resolution is necessary because no new spending bills have been passed by Congress.

The Associated Press reports on some of the likely contents within the massive package:

While top-level congressional leaders haven’t made final decisions, elements of the year-end budget package are likely to include:

_Stopgap government funding. Most federal agencies would see their budgets frozen at current levels for several weeks or even into March. Lawmakers want to avoid a postelection “lame duck” session, but fear the White House will force them to return to session in November in hopes Congress would approve a free trade pact with Colombia.

_Security-related budgets. More than $600 billion to fund the 2009 budgets for the Pentagon, Homeland Security Department and the Department of Veterans Affairs.

_Disaster aid. Up to $25 billion in emergency funding for victims of Gulf Coast hurricanes, midwestern floods and other natural disasters.

_Automaker loans. More than $7 billion is provided to subsidize $25 billion in loans to help the “Big Three” U.S. automakers retool their plants to build cleaner, more energy efficient cars.

_Heating subsidies. Democrats want to double the budget to $5.1 billion for a popular program providing heating subsidies for the poor.

Democrats were also weighing whether to try to add another extension of unemployment benefits to the year-end budget package. Another option would be to add the unemployment insurance coverage to a subsequent $50 billion-plus measure to stimulate the economy with infrastructure spending, aid to states and additional food stamp benefits.

Within the package, Defense Department / Pentagon funding alone could total some $488 billion.

It’s unclear how the offshore drilling debate will play out.  It’s safe to say that with all the bailout talk the energy debate has lost some of its momentum.  With that being said, members still have to address whether a continuation of the moratorium on offshore drilling will be included in the package or if it will be lifted and, if so, what restrictions will be placed on it.