Congressional Round-Up: a Status Report on Annual Funding and Security Related Legislation in the 108th Congress
Introduction
Congress recessed the second week in October having enacted only four of the thirteen annual appropriations bills that fund government operations for the coming fiscal year, which began on October 1. The four enacted were Defense, Military Construction, Homeland Security and the District of Colombia. To avoid having portions of the federal government shut down and to permit the continued federal operations normally funded by the remaining nine appropriations bills, Congress also enacted a “continuing resolution.” This legislation provides temporary funding for the federal government at current levels (i.e., the funding levels set in the previous fiscal year) for agencies whose appropriation has yet to be approved. The current continuing resolution expires on November 20, but could be extended indefinitely.
Congress is set to return to session after the elections to complete the appropriations bills and perhaps take up some additional important legislation. The “lame duck” session is scheduled to start on November 16. First and foremost on Congress’s agenda is completion of the annual spending legislation needed to avoid a shutdown of the U.S. government.
The following is a status report and summaries of critical legislation, particularly those bills related to national security:
Overall Federal Funding
Currently roughly half of all federal spending that Congress must approve each year is being funded under a continuing resolution (described above). There are three basic strategies that Congress might adopt to complete its appropriations work. First, it could approve funding for each of the remaining nine appropriations bills, but this path is unlikely, given the amount of time it would take. Second, Congress could opt to bundle some or all of the remaining appropriations bills into a single, massive “omnibus” appropriation. This method can greatly expedite the process and has been used regularly in the past, but is unpopular because such bills are inevitably loaded with political “pork,” and give congressional appropriators huge authority to determine funding levels Finally, Congress could adopt a new continuing resolution that would carry through until the next Congress begins in January, or even to the end of the fiscal year. This method would be highly irregular, and politically unpopular, in that it would indicate that Congress was abdicating its fiscal responsibilities. Failing to adopt one of these methods would result in the shutting down of those federal agencies for which separate appropriations had not already been approved – a very unlikely outcome.
National Security
Each year Congress enacts seven major pieces of legislation related to U.S. national security – the budget resolution, the annual Department of Defense authorization bill and five appropriations bills: defense; military construction; homeland security; energy & water (which funds the Pentagon’s nuclear weapons activities through the Department of Energy); and foreign operations. Congress finalized its work on the defense authorization bill just before recessing in October. As noted above, the appropriations for defense, military construction, and homeland security were adopted prior to the recess. Still remaining are the foreign operations and energy & water bills. Earlier in the year Congress abandoned hopes of passing a budget resolution (see below).
Energy And Water Appropriations
The Energy and Water Appropriations Subcommittees, chaired in the House by Ohio Republican David Hobson and in the Senate by New Mexico Republican Pete Domenici, have jurisdiction over funding for nuclear weapons programs. The House subcommittee’s FY’05 appropriations bill “zeros out” (does not fund) or dramatically reduced funding for a number of important programs supported by the Bush Administration that would promote the production and testing of a new generation of nuclear weapons. These positions were later approved by the full House. Specifically, the subcommittee refused to fund the administration’s request for: $27.6 million for the Robust Nuclear Earth Penetrator (the so-called “bunker buster”); $9.0 million for the Advanced Concepts Initiative (which could be used to fund development low-yield nuclear weapons); $29.8 million for the Modern Pit Manufacturing Facility (to support production of new nuclear weapons); and reduced by one-half the administration’s $30.0 million request for the Test Readiness program, which would accelerate the U.S. ability to return to full-scale, underground nuclear tests at the Nevada Test Site within 18 months of a decision to test. The Senate has not yet acted on its version of this legislation, although in the past the Senate has generally supported the administration’s requests for these programs.
Other Funding
In addition to those bills related to national security, there are seven other appropriations bills that must be adopted by Congress. They are: Agriculture, Rural Development, and Related Agencies; Commerce, Justice, State and the Judiciary; Interior; Labor, Health and Human Services, and Education; Legislative Branch; Transportation/Treasury and General Government Agencies; and VA/HUD-Independent Agencies.
Debt-Limit Increase
There is one other “must do” piece of legislation awaiting Congress when it returns from recess; increasing the limit on the national debt. The total amount of debt carried by the U.S. government is limited by statute, and this limit is known as the “debt ceiling.” The limit is one way to monitor federal spending, and is meant to insure that the federal government does not spend more than has been approved by the American people (i.e. Congress). Currently the debt ceiling is $7.4 trillion, and the government is poised to exceed that ceiling within weeks, if not days. On Oct. 14, Treasury Secretary John Snow told Congress that he had had to borrow temporarily from a federal employee retirement savings fund in order to avoid the government’s first ever default on its financial obligations. In a letter, he informed Congress that it is “imperative” the debt ceiling be increased by mid-November.
War Supplemental
The annual defense budget does not cover the cost of the war in Iraq and Afghanistan, which are funded through special supplemental appropriations packages. Funding for operations in Iraq and Afghanistan for last year (fiscal year 2004), were part of an $87 billion supplemental spending package approved last November, which also included roughly $20 billion for reconstruction in those countries. With members of Congress preparing to leave Washington to campaign, the Pentagon requested, and Congress approved, a down payment $25 billion to cover war costs for the first part of fiscal year 2005. This money was included as part of the regular fiscal year 2005 defense appropriations bill. At the time of its request, the Pentagon cautioned that this was simply an interim request to get them through the elections and the early part of the year when Congress is only briefly in session. Initial estimates put the follow-on request at around an additional $50 billion. On October 26, however, the Washington Post reported that the Pentagon was preparing a request for a further $70 billion, and that according to Defense Department sources, these figures were yet to be finalized. While Congress will have to act on this legislation at some point during the coming months, it won’t need to do so during the “lame duck” session. Should Congress approve an additional $70 billion, total funding for the two conflicts will have reached roughly $225 billion.
Intelligence Overhaul
Both the House and Senate have passed separate versions of legislation to reform the U.S. intelligence community. The members of the independent Sept. 11 commission support provisions of the bipartisan Senate bill that would create the job of national intelligence director to coordinate the government’s intelligence agencies. The commission members oppose the Republican-authored House version of the bill because it places too many limits on the intelligence director’s budget and personnel authority and includes a number of contentious law enforcement provisions, including easing restrictions on the deportation of foreigners, which could derail enactment of the legislation. The White House had urged congressional leaders to pass compromise legislation before the Nov. 2 election, but Congress failed to meet this deadline.
Budget Resolution
Each year as part of the annual budget process, Congress enacts a budget resolution. It is not a law, but it sets spending guidelines and limits that the various congressional committees use in developing their annual spending legislation. According to the Budget Impoundment and Control Act of 1974, the final action by Congress on the budget resolution is supposed to occur by April 15, although this deadline is frequently waived. This year Congress failed to enact a budget resolution, due primarily to differences between the House and Senate over how to fund the legislation’s tax cut provisions.
Additional Resources
For more information, see the following Center Fact Sheets:
“Highlights of House and Senate Conference Agreement on the Fiscal Year 2005 Defense Authorization Bill,” October 8, 2004.
“Highlights of Conference Agreement on the Fiscal Year 2005 Defense Appropriations Bill,” August 5, 2004.
“Congressional Action on Non-Proliferation: 2004 in Review,” October 21, 2004.