Since President Trump's budget proposal was released last month, the budget and appropriations process has proceeded slowly, as Republican budget writers continue negotiations over how to approach modifying the 2011 Budget Control Act's (BCA) so called "budget caps" that limit total discretionary defense and non-defense spending. Among the challenges facing budget negotiators include defense hawks, who are demanding the BCA defense caps be raised and Democratic (and significant Republican) opposition to President Trump's proposal that includes an increase in defense spending and equivalent cuts non-defense spending. Movement on the budget is also complicated by the fact that the FY18 budget will set the rules for the upcoming debate over tax reform (see below), further slowing the process. Finally, Republicans are also slow walking the FY18 budget to allow time to move forward with repeal of the ACA, which must take place under the FY17 budget resolution before a FY18 budget resolution can be adopted.
Without an approved budget – or a deeming resolution – the Appropriations Committee cannot then divide the proposed spending amounts among the 12 spending bills. The 1974 budget law does allow the House to bring appropriations bills to the floor after May 15 without a budget resolution or deeming resolution, but functionally, appropriators cannot write bills until they have their suballocations. Given the time pressures, this week House and Senate appropriators are marking up the first appropriations bills of the cycle, the Military Construction-Veterans Affairs appropriations bill – traditionally the easiest of the 12 bills to advance. This could present challenges later on if GOP leaders attempt to craft a larger spending agreement in September, potentially forcing cuts elsewhere in order to ensure the entire budget fits within the budget caps.
Takeaway: With the delayed start to the budget and appropriations season and a very full summer and fall schedule, it is increasingly likely that Congress will either have to adopt a continuing resolution to keep the government open past September 30 and/or combine the 12 bills into an omnibus bill or a series of so-called "minibuses."
