Legislative Updates - Archives

<< BACK   

LEGISLATIVE UPDATE FOR JUNE 6, 2012:

Budget & Appropriations Update


Sequestration and Non-Defense Discretionary Spending

Sequestration was included in the Budget Control Act (BCA) passed in August of 2011 as a backup procedure to increase the incentive of the Joint “Super” Committee to reach a compromise on $1.2 trillion in spending cuts from 2012 through 2021.  With the Super Committee unable to find agreement the sequestration- or automatic cuts that apply largely across the board- is scheduled to occur starting January 2013.  There are currently multiple proposals being circulated to avoid this scenario.

There are three areas the Administration and Congressional leaders have agreement on in the budget process including: 1) deficit reduction over 10 years and trying to stop debt from rising faster than the economy is growing; 2) no cuts to Medicare/Medicaid and Social Security for current enrollees and those close to the retirement age; and 3) no reduction in defense spending below the caps included in the Budget Control Act.  Due to the agreement in those three areas the only places left to cut spending in the budget are non-defense discretionary (NDD) programs and low income safety net programs.  Those cuts to NDD will total 8.4% across the board in 2013.  For years 2014 through 2021 the remaining amount of the total $54.7 billion in annual NDD cuts will be applied proportionally to: 1) other non-exempt mandatory programs; and 2) the statutory cap on overall NDD funding.

There are several possible outcomes to avoid or delay sequestration.  A lame duck congressional session after the November elections could compromise on spending cuts and revenue, however this is not seen as very likely.  The new Congress in 2013 could pass numerous short term measures to delay the sequestration until a deal is reached.  Or, sequestration could be allowed to go in effect for 2013 and then Congress would spend the year trying to reach a deal to avoid cuts in 2014-2021.  The possibility of a shutdown next spring could also be on the table if pressure from voters to find a compromise leads to the drafting of new legislation.  All of these options and outcomes will be determined by the results of the November elections.

An effort to create a forum made up of the various communities funded within NDD spending is underway.  The NDD Coalition plans to advocate against any more spending cuts to NDD through a two pronged strategy: 1) inside Washington by educating lawmakers, holding Hill events and creating targets in the House and Senate; and 2) outside Washington, by holding in-district meetings, using local media and writing/calling Members of Congress.

Status of FY 2013 Appropriation Bills

HOUSE

 

Appropriations                 Subcommittee      Full Committee        Floor

Subcommittee                  Markup                   Markup                  Action

Agriculture

June 6

 

 

Commerce, Justice and Science

April 19

 

April 26

Passed

May 10

Defense

May 8

May 17

 

Energy & Water

April 18

April 25

 

Financial Services

June 6

 

 

Homeland Security

May 9

May 16

 

Interior & Environment

 

 

 

Labor, Health and Human Services

 

 

 

Legislative Branch

May 18

May 31

 

Military Construction/ Veterans Affairs

May 8

May 16

Passed

May 31

State & Foreign Operations

May 9

May 17

 

Transportation/Housing and Urban Development

June 7

 

 

 SENATE

 

Appropriations                   Subcommittee     Full Committee       Floor

Subcommittee                     Markup                Markup                   Action

Agriculture

 

April 26

 

Commerce, Justice and Science

April 17

April 19

 

Defense

 

 

 

Energy & Water

April 24

April 26

 

Financial Services

 

 

 

Homeland Security

May 15

May 22

 

Interior & Environment

 

 

 

Labor, Health and Human Services

 

 

 

Legislative Branch

 

 

 

Military Construction/ Veterans Affairs

May 15

May 22

 

State & Foreign Operations

May 22

May 24

 

Transportation/Housing and Urban Development

April 17

April 19

 

 

 

 

 

316 Pennsylvania Ave. S.E., Suite 404
Washington, DC 20003
T: 202.547.1866    F: 202.547.1867
Copyright © Madison Associates, 2019