Congress Update

April 25, 2008

On March 13, the House passed its budget resolution and on March 14, the Senate passed its own.  The next step would be for the House and the Senate to meet in conference to negotiate the differences between the two; however that process has seemed to have stalled.  It appears that the sticking point is over the Alternative Minimum Tax (AMT).  Hill sources indicate that the so-called "blue-dog democrats" are holding up the budget reconciliation due to the recent "pay-go" rules and will not support the reconciliation unless there are cuts in other programs or tax hikes to pay for an AMT fix.

            There have been a number of self-imposed deadlines (following the original April 15^th deadline) by budget committee members to reconcile the two budgets, but each of them has been extended.  It appears that the Appropriations Committees will begin their work and set their own top-line numbers by mid-May even if a final budget is not passed by both the Senate and the House.  And indeed, with each passing week, that scenario seems more likely.

            There are various predictions as to what will happen with the appropriations bills this year.  Some sources indicate that Congress will pass an appropriations bill, but the President will most likely veto it because it will be above his stated limit.  Others indicate that Congress will just pass continuing resolutions until the election, when at that time, Congress will decide whether to pass a final budget.

            Currently, the House leadership is working on the FY 08 emergency supplemental (with some money for FY 09) that will fund the wars in Iraq and Afghanistan.  As reported in Congressional Daily, the leadership has agreed to limit domestic spending and controversial war policies in the supplemental.  In a controversial move, though, the legislation is expected to bypass the Appropriations Committee and go straight to the House floor for a vote.  The purpose is to avoid allowing anti-war Democrats to add controversial provisions as well as limit Republican amendments.  There is currently no firm timetable for passage of the supplemental.

          As each legislative day passes the time for consideration of either a budget final resolution, let alone a full appropriations package, becomes more limited. There is also the question of a possible "Lame-duck" session after the election, likely to be decided closer to the election when the Congress breaks before the start of full campaign season. Finally, the 150 Account's own destiny will likely be determined in the end by the House and Senate leadership - not only if it is placed in the appropriations schedule but whether we will see another omnibus appropriation bill either after the election or even in early 2009.

Secretary Rice Testifies Before Senate

April 9, 2008

    On April 9, 2008, the Senate Appropriations Subcommittee on State and Foreign Operations held a hearing concerning the FY09 budget, with Secretary of State Condoleezza Rice testifying.  Chairman Patrick Leahy (D-VT) opened with remarks indicating his desire to pass a state and foreign operations appropriations bill this year, even though the presidential election threatens to derail that process.  Senator Judd Gregg (R-NH), Ranking Member, indicated that he wants to push for the passage of the Colombia Free Trade Agreement, remove restrictions on South Africans wishing to enter the United States, and reevaluate PEFPAR (the President’s Emergency Plan for AIDS Relief), expressing concern that the amount of money devoted to the program could crowd out other worthy projects.

Supporting U.S. Engagement Abroad

Phone: 202.994.5519 :: Fax: 202.338.6820 :: 2101 E St. NW Washington, DC 20036 :: colead@afsa.org

Last modified: 05/02/08