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Quick Hit – September 8, 2016

by Gene Moran in Blog

As the Labor Day weekend came to a close, both chambers returned to Capitol Hill to proceed with legislative deliberation for FY17. With the end of the fiscal year quickly approaching, Congress must come to an agreement on the conclusion of appropriations bills. Among the most significant, in both size and breadth, is the Defense Appropriations bill.

What is the status of the defense bills?

Defense Appropriations
Before the recess, the Senate defense appropriations bill was unable to proceed to floor action as Democrats raised concerns about spending levels.  Hoping to avoid a government shutdown, Senate Majority Leader Mitch McConnell has signaled he will advance a short-term continuing resolution (CR) to fund the government through December 9th. The CR would also allow more time for the Senate to solidify a position on Zika funding. While House Republicans have yet to publicly reveal their intentions, they will meet behind closed doors on Friday to discuss the newly presented option. Some more conservative House GOP members have even suggested a CR that pushes the timeline into next year, perhaps into March 2017. As of this writing, it is unlikely a CR would extend that long.

As partisan differences continue to create obstacles for the legislative process, this week thePentagon attempted to speed up the process by undercutting the House GOP’s budget plans, led by House Speaker Paul Ryan. The strategy attempts to pit both chambers against each other using pressure from top military officials to underline how the GOP’s budget is hurting national defense. The plan, while bold, is not wholly unexpected; Defense Secretary Carter has been vocal about his opposition to the $18 billion funds taken from a war purse (the OCO account) in a time of war. The most likely outcome at this stage is an omnibus appropriation after the election.

Defense Authorization
The NDAA, which was left in staff conferencing before the recess, is not likely to complete conference before the fiscal year-end and the election break at the end of September. The House and Senate positions on topline funding remain too far apart. Other issues like increased troop strength, increasing wages and hardware acquisition are challenging, but are likely to be resolved. Look for high-profile meetings of Armed Services Chairmen McCain and Thornberry throughout September to keep political heat on the process.

Senate Races

The majority in the Senate hangs in the balance by a few very competitive seats this November. The “top” of the ticket can influence several specific races.

The top five most competitive races with incumbent Republicans to watch heading into November:

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Official Portrait

Florida: Rep. Patrick Murphy (D) (top) is challenging Republican incumbent Senator Marco Rubio (bottom).


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Official Portrait

Illinois: Rep. Tammy Duckworth (D) (top) is challenging Republican incumbent Senator Mark Kirk (bottom).

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Official Portrait

New Hampshire: Governor Maggie Hassan (D) (top) is challenging Republican incumbent Senator Kelly Ayotte (bottom).

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Pat_Toomey,_Official_Portrait,_112th_Congress

Pennsylvania: Katie McGinty (former Environmental Advisor to Vice President Al Gore and Bill Clinton and former Chief of Staff to PA Governor Tom Wolf) (top) is challenging Republican incumbent Senator Pat Toomey (bottom).

@zx_550

Wake Forest University hosts a reception and banquet to honor recipients of the Distinguished Alumni Award, at Winmock on Friday, April 19, 2013.  Award winner Sen. Richard Burr ('78).

North Carolina: Deborah Ross (former Member of North Carolina House of Representatives and attorney) (top) is challenging Republican incumbent Senator Richard Burr (bottom).

 

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Quick Hit – August 5, 2016

by Gene Moran in Blog

The calm before the presidential election storm has begun as the confetti finally settled and both parties’ conventions came to a close last week. With Congress in recess and both presidential nominations firmly in place, now is the perfect opportunity to do a brief recap of where the year has taken us thus far and where we see the legislative path turning in the coming months.

Several events have conspired to bring the legislative process to an effective standstill: the extended Congressional recess through Labor Day; limited scheduled legislative days remaining (21); and, the election quickly approaching in November.  It is highly unlikely that any appropriations bill will get to the President’s desk before the election.

What has happened in 2016 so far?

Appropriations subcommittees in both houses have been busy over the weeks leading up to the current recess, but the movement of House bills through committee overshadows those of the Senate. Here’s the summary of progress in both chambers (defense listed in separate table below):

The Senate:

  • Commerce/Justice/Science – committee approved 30-0 (4/21/16)
  • Energy/Water – initial Senate passage 90-8 (5/12/16)
  • Agriculture – committee approved 30-0 (5/19/16)
  • Legislative Branch – committee approved 30-0 (5/19/16)
  • VA/MILCON – initial Senate passage 89-8 (5/19/16)
  • Transportation HUD – initial Senate passage 89-8 (5/19/16)
  • Homeland Security – committee approved 30-0 (5/26/16)
  • Labor HHS – committee approved 29-1 (6/9/16)
  • Interior-Environment – committee approved 16-14 (6/16/16)
  • Financial Services – committee approved 30-0 (6/16/16)
  • State-Foreign Operations – committee approved 30-0 (6/29/16)
  • Military Construction, Veterans Affairs, and Related Agencies subcommittee was resolving differences on its appropriations bill before the break

The House:

  • Agriculture 5054 – committee approval voice vote (4/19/16)
  • Legislative Branch – initial House passage 295-129 (5/19/16)
  • Agriculture 5393 – committee approval voice vote (5/24/16)
  • State-Foreign Operations – committee approval voice vote (5/24/16)
  • Labor/HHS/Education – initial House passage 233-175 (6/10/16)
  • Commerce/Justice/Science – initial House passage 282-138 (6/16/16)
  • Financial Services – committee approval voice vote (6/22/16)
  • Energy/Water – initial House passage 239-185 (7/7/16)
  • VA/MILCON – committee approval voice vote (7/12/16)
  • Homeland Security – initial House passage 231-196 (7/14/16)
  • Interior-Environment – committee approval 31-19 (7/14/16)

Defense bills recap…

After rejecting a proposed amendment from the House on the FY17 National Defense Authorization Act, the Senate agreed to move the bill to conference when the recess ends after Labor Day. The Senate began instructing its conferees during its last session, most notably including the bill’s sponsor, Senator McCain, and the recently popularized Senator Tim Kaine of Virginia.
The $18 billion shift of OCO funds into the base budget contained in the House version of the NDAA will be the primary point of contention of the September conference. As OCO funding is not subject to congressional discretionary spending ceilings, many Democrats feel that the bill uses OCO inappropriately as a gambit to raise overall defense spending. The House version of the NDAA will attempt to force the President’s hand in passing a resolution to raise defense spending and override the budget caps set in 2011 and reaffirmed in 2015. House Republicans are hoping that shifting funds from OCO will reveal how low the base budget has become; Republicans have recently been underlining the need for increased funding in order to match President Obama’sincreased troop posture in Afghanistan, expressing their frustration that the latter has happened without the former. While an increase in defense spending is a mutually shared goal between both parties, the Democratic administration and its congressional representatives are emphasizing the importance of adhering to the Bipartisan Budget Act of 2015 in which any increase in funding must be distributed equally between defense and non-defense areas.

Going hand in hand with the NDAA are the appropriations bills coming out of the SAC-D and the HAC-D, which would provide the funding for the provisions, detailed in the NDAA. While the House bill has moved along without a hitch, the Senate version has encountered more obstacles; Senate Democrats have prevented it from moving to a floor vote. The bill failed to proceed after a 55-42 vote two weeks ago. SAC Chairman Thad Cochran (R-Miss) commented, “The Senate has a responsibility to give our men and women in uniform the resources they need to defend our nation. We do so in this bipartisan bill. Filibustering its consideration causes uncertainties that endanger our national security…” Senate Democrats are resisting what they see as extremely partisan provisions in the appropriations bill, holding up its progress. The Senate leaders must be able to persuade votes after the recess if the bill is to survive. This standstill will very likely lead to an omnibus bill before the year is up in order to avoid a government shut down.

Recap of defense bills progress:

Screen Shot 2016-08-04 at 11.21.39 PM

Looking ahead…

Pressure will build in September to find short-term relief in a Continuing Resolution that buys time until after the election November 8th.  Elections have a way of clarifying the “trade space” and focusing the political options. Look for a much-maligned Omnibus before Christmas.

Longer term (early 2017), look for a smaller (less than $10B) additional Overseas Contingency Operations (OCO) supplemental appropriation.

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Quick Hit – July 11, 2016

by Gene Moran in Blog

What Does It Mean…

A continuing resolution (CR) to fund the government through the end of the calendar year is increasingly likely as the appropriations process grinds to a standstill. As it stands, the House and Senate only have this week left to work on legislation before breaking for the summer to focus on campaigns and the party conventions. Once Congress returns, there will only be 21 legislative days before the election in which to finish all the remaining bills. To date, the House has passed 6 of 12 individual appropriations bills; the Senate has only passed 3 of the 12 required spending bills.  Open talk of an Omnibus appropriation, rolling all 12 bills into one Trillion-plus-dollar spending bill, may already be heard on the Hill.

Last Week Before Extended Summer Recess…

Legislative business in the House and Senate resumes today, ringing the last week before a long summer recess until after Labor Day in September.

 

The House…

At the end of last week, the House moved forward in a procedural vote to move the National Defense Authorization Act to conference.

Speaker Paul Ryan approved the NDAA progress, saying:

“This legislation gives our military the tools and funding it needs to do its job and keep Americans safe. It also gives our men and women in uniform a well-deserved raise. If there’s anyone who deserves an increase in pay, it’s those who risk their lives every day for the safety of this country. “

The conferees, named by Speaker Ryan last Friday, will meet in a conference committee to discuss a final, combined version of the NDAA bill this Wednesday.  Staff-level conferencing is has already begun.  Committee leaders of SASC and HASC acknowledge the bill will not complete conference before the Summer recess.

The House also continued moving forward on individual appropriations bills with the Labor/HHS moving out of subcommittee by voice vote and the Financial Services appropriations bill clearing the House floor by a largely partisan vote of 239-185.

 

The Senate…

The Senate experienced another flare up last week when Senate Democrats voted down a motion to proceed to debate on the Senate Defense Appropriations Bill. Lingering controversy over the maneuver to transfer OCO money to the base budget in the House version of the bill, and continued frustration over a lack of funding for the Zika virus, prompted Democrats to vote down the measure. This move effectively stalls the appropriations process in the Senate for the moment.

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Quick Hit – June 24, 2016

by Gene Moran in Blog

An Unprecedented Week…

This week has been full of surprises for domestic and international politics; the House Democrats staging a sit-in, the Supreme Court rulings on immigration and affirmative action, the UK decision to leave the European Union…

 

What Does It Mean For Appropriations?

It means an already slow appropriations season has been slowed even further as challenging political issues force their way into already limited legislative time in both chambers.

 

The Senate

Last week, the Senate delegation from Connecticut led a 15 hour filibuster on the Commerce, Justice, Science, and Related Agencies Appropriations Bill. The bill remains in limbo, with amendments still pending.

Next week, on Tuesday, the State, Foreign Operations, and Related Programs Subcommittee will begin its markup of the FY17 Appropriations bill. The full Appropriations Committee is scheduled to take up the bill on Thursday.

It is hoped Senate defense appropriations will proceed to the Senate floor before the July 15th summer recess.

 

The House

The House Democrats staged a historic and highly controversial sit-in on the well of the House floor Wednesday into Thursday. Lost in the hype is that a tool exists for issues that can’t seem to get out of committee but Members believe would survive a majority vote on the floor – a discharge petition to bring a vote straight to the House floor requires 218 signatures. However, a discharge petition would not have attracted the same media attention, as did the sit-in. The House majority voted to end the legislative day late Wednesday night, begin a new day to vote on the VA/MILCON Appropriations Conference Report, and then go on Fourth of July recess a day early. The VA/MILCON legislation passed without debate.

Here is the breakdown of the House VA/MILCON bill:

  • $82.5 billion discretionary spending ($2.6 billion above FY16)
  • $1.1 billion funds for resources to fight Zika virus ($1.1 billion came from the Senate bill version, the House originally passed a $622 million measure)

Democrats were extremely opposed to the measure, and embittered after the House majority passed the bill without debate in a late night session. The Zika funding aspect of the bill will prove challenging to conference with the Senate. Senator Bill Nelson of Florida labels the Zika element of the bill “a disaster.”

With partisan tensions high when the House reconvenes on July 5, it is expected that the Financial Services Appropriation will move to the House floor.

 

In summary

Chances of finished appropriations bills before Congress goes on an extended recess until Labor Day are quite low.

 

Legislative Days Until Summer Recess:

Senate: 11 Days Left

House: 9 Days Left

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Quick Hit – June 20 2016

by Gene Moran in Blog

Last Week…

The House passed its version of the FY17 Defense Appropriations Bill, and the Senate passed its version of the FY17 National Defense Authorization Act.

The House defense appropriations bill is noteworthy for its redistribution of $18 billion from OCO funds to the base budget. The Obama administration has openly opposed this measure, and the president has threatened a veto. The other problem facing the House bill is that the corresponding Senate defense plan, only reflected in the NDAA so far, does not follow this same tactic, setting up a challenging conference scenario.

On Friday, the House floor was overwhelmed with debate on numerous amendments to the bill. Of note were two amendments related to Guantanamo, one that prohibits the transfer of Guantanamo prisoners to U.S. facilities and another that bans federal funds from investigating the possibility of building a new facility for Guantanamo detainees in the U.S.

Up next for the House are consideration of appropriations bills for Financial Services and General Government and VA/MILCON.

House and Senate Defense Legislation:

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The Senate…

The Senate passed its NDAA bill, which Senate Majority Leader Mitch McConnell had previously said he wanted done before the appropriations bill. The NDAA followed the SASC subcommittee mark, which aligned with the president’s original budget request. The bill stands out by including for the first time in U.S. history a provision to include women in the draft. Another standout was the failure of John McCain’s amendment to add an additional $18 billion to overall defense spending. Although the measure failed, Senator Lindsey Graham and other supporters have expressed their intent to continue the push for high spending levels during appropriations considerations.

Movement of Senate defense appropriations to the Senate floor had been anticipated last week, prior to Senate Democrats taking control of the floor for much of a day to express lingering concerns over Congressional inaction on revised gun laws.  Senate defense appropriations should proceed to floor action this week.

The continued disconnect between House and Senate defense spending policy for FY17, the upcoming presidential conventions, and the political turmoil in the aftermath of the tragic events in Orlando bode for slow progress on the appropriations schedule. It is unlikely we will see any of these bills proceed to conference prior to the July break for the presidential conventions.

The Capitol…

In other news, the restoration project on the Capitol Dome is moving along at good speed. The scaffolding has moved down to the base of the dome, and the whole project is expected to be completed by the January Presidential Inauguration.

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Quick Hit: June 13, 2016

by Gene Moran in Blog

Votes Continue, But At A Slow Pace

The Senate…

Last Friday, the Senate voted in a 68-23 decision to proceed to the next step in the voting process on the FY17 National Defense Authorization Act. This motion will allow 30 more hours of debate to consider amendments, of which there are many, before moving to a final vote.

Key Points:

During Friday’s rounds of debate, an amendment put forth by SASC Chairman John McCain that would have raised overall defense spending by $18 billion was voted down. A similar effort from the Democrats to raise defense and non-defense spending by $18 billion was also rejected. This means that the 2011 Budget Caps have been reaffirmed, at least for now.

Remaining Amendments:

There are hundreds of amendments up for consideration on the FY17 NDAA bill. The McCain amendment was one of the principals, now that it has been rejected the two most contentious ones that remain are Sen. Kristin Gillibrand’s amendment to remove military chain of command on sexual assault cases and Sen. Jeanne Shaheen’s amendment to issue visas to Afghan soldiers and translators who have served alongside US military.

Obama’s Veto Threat:

Earlier last week the Obama administration said the president would consider a veto on the Senate NDAA if it included an amendment that would prevent him from closing Guantanamo Bay. However, today, Reuters released a report stating President Obama has ruled out using an executive order to override a Congressional ban on closing Guantanamo. Lack of legal grounding and a fast-approaching election makes an executive order imprudent, according to the administration, and also means the president will likely not meet his goal of closing the facility before the end of his presidency.

The House…

The House is scheduled to take up consideration of the FY17 Defense Appropriations bill tomorrow. The primary part of the bill that has been cause for serious debate it its shift of OCO defense funds to the base budget, thus shortchanging the full OCO budget and betting on a presidential request for more defense funding next year. The maneuver is not popular amongst Democrats or the Obama administration, and seriously threatens a presidential veto if it survives to the final version of the bill.

Appropriations Running Behind…

At this rate, the Senate has passed two appropriations bill and the House has passed one and rejected one. It is likely that the tradition of a “catch-all” bill at the end of the year to prevent a government shutdown is upon us once again.

Coming Up…

This is a busy time of year for the appropriations process. Stay tuned for developments this week, and expect another Capitol Integration “Quick Hit” update next week.

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Quick Hit – May 27, 2016

by Gene Moran in Blog

Disruptions to the Appropriations Process….

The smooth path to FY17 appropriations successes in the House ground to halt as the energy and water appropriations bill was voted down yesterday due to an amendment regarding LGBT rights. As Speaker Paul Ryan stated after the bill’s failure:

“When I became speaker one of the commitments I made to our members was to open up this process. That means … more amendments from both sides of the aisle. It means fewer predetermined outcomes and, yes, more unpredictability.”

An open amendment process for appropriations was a key element of Speaker Ryan’s agreement with Republican factions upon assuming the Speakership. Many lawmakers are already predicting that more controversial amendments and failure to individually pass the 12 necessary spending bills will require a continuing resolution at the end of the year.

How the Appropriations Should Go…

Usually, the appropriations bills reported by the House and Senate in May continue to advance through early June, and move to floor consideration throughout the summer. Both chambers typically aim to finish consideration of appropriations bills before the August recess, although the Senate process sometimes continues through the fall — this year’s August recess begins in mid-July due to the Presidential conventions. The fall and winter have recently been dominated by negotiations to reconcile the differences between the appropriations bills passed in each chamber. Debates between Senate, House, and the administration to find an acceptable compromise is what often prompts the passage of continuing resolutions to a prevent government shutdown at the end of the year.

At this early phase of the process, given the differences in the bills, a desire by Democrats to match any defense increase with non-defense increases, and the potential for politically charged amendments (LGBT rights, for example), it will once again be an exciting process. 

Business leaders should be communicating with their government customer regularly in order to understand the mutual implications of a CR on their specific programs.

The Four Defense Bills in Progress…

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Senate Defense Appropriations

The Senate Defense Appropriations Subcommittee approved a bill for FY17 on Tuesday, and the Senate Appropriations Committee approved the bill Thursday; summary found here. The bill adheres to the original budget agreement from last year, allocating $515.9 billion to base defense budget funding and $58.6 billion to Overseas Contingency Operations.

The main difference between the SAC Defense bill and the HAC Defense bill is that the Senate has chosen not to follow the House maneuver to shift OCO funds to prompt an overall increase in the defense budget next year. The Senate bill cuts approximately $15 billion in spending and will redistribute those funds towards operation readiness, maintenance accounts, shipbuilding, and aircraft procurement. Highlights of the Senate Defense appropriation:

Shipbuilding $2.1 billion increase, 3 additional ships, $1 billion for first Polar Icebreaker Recapitalization Project

Aircraft Procurement $2.5 billion increase (not originally requested)

    $979 million for twelve F-18 aircraft (Navy)

    $507 million for two F-35 carrier variant; and two F-35 vertical take-off, Joint Strike Fighters (Marine Corps)

    $367 million for fifteen Blackhawk helicopters (Army National Guard)

    $187 million for twenty-eight Lakota helicopters (Army)

    $160 million for two C-130J aircraft (Air Force)

    $150 million for two MV-22 helicopters (Marine Corps)

    $103 million for Compass Call aircraft replacement (Air Force)

   $75 million for UH-1N replacement helicopters (Air Force)

Readiness $900 million for National Guard and Reserves equipment account

Space Rockets/Engines — $396.6 million to space launch vehicles or rocket engines, launch procurements will be available to all certified launch providers regardless of where the rocket engine was manufactured (addressing the controversy over US use of Russian RD-180 engines)

OCO enables funding for ongoing threats, operations against ISIL, and the European Reassurance Initiative

Senate Majority Leader Mitch McConnell has stated that he would like to take up the appropriations bill after the NDAA. Expect further action on both of these bills when the Senate reconvenes in June.

Senate NDAA

The Senate voted to move forward with debate on the FY17 National Defense Authorization Act on Wednesday, but Democrats pushed against voting on a final version before the recess. Senate Minority Leader Harry Reid contested that the closed SASC markup session did not give lawmakers enough time to read and fully consider the bill.

Additionally, there are now many amendments to the bill that must be considered. At the forefront is SASC Chairman John McCain’s proposal to increase the Pentagon’s budget by $17 billion to provide the military with some of its “wish list” items such as 14 F/A-18 Super Hornets and 11 F-35 fighters, 36 UH-60 Blackhawk and 17 LUH-72 Lakota helicopters. McCain’s amendment would also raise military personnel salary by 2.1%, all in an effort to fight back against “short-sighted cuts,” said McCain, to the defense budget.

Other amendments, totaling over 170, address the Iran missile program, Guantanamo, the Afghan Special Immigrant Visa program, and more. Expect more amendments and more debate on the NDAA when the Senate returns after Memorial Day.

HLS Appropriations

Thursday, the Senate Appropriations Committee approved a $48.07 discretionary spending level for the Department of Homeland Security. The budget includes $6.7 billion for FEMA Disaster Relief Programs and $163 million for Cost Guard Overseas Contingency funding.

The $48.07 level is $245 million above the FY16 spending level and $740 million above the President’s budget request.

Budget Reform

Committee Chairs of the House and Senate Budget Committees are raising the issue of broad budget reform in Congress. HBC Chairman Tom Price is hoping to leverage support from the conservative wing of the Republican party to support passing a budget, in exchange for some rules changes. Efforts in the House are unlikely to gain Democratic support, but chances for SBC Chairman Mike Enzi are slightly better in the Senate. The proposals currently being made would bring significant changes the how the Congressional budget deals with mandatory spending, regulatory costs, etc., but these types of reforms have a long way to go before they gain bipartisan support.

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Quick Hit – May 13, 2016

by Gene Moran in Blog

An unusually busy two-week stretch for defense bills moving simultaneously (and early) through both the House and Senate.

Diverging Strategy in House vs. Senate NDAA

Yesterday, the Senate Armed Services Committee finished its markup of the National Defense Authorization Act, meaning both chambers have now released their own versions of the NDAA legislation for fiscal year 2017.

The key difference between House and Senate versions is their funding strategy. In the NDAA bill from the House Armed Services Committee, Overseas Contingency Operations (OCO) fund will only extend through April 2017. The effect of this move, supported by Chairman Mac Thornberry, is essentially to shortchange the OCO budget in order to reallocate money to the base budget to fund Pentagon operations. The $23.1 billion in OCO the House NDAA bill shifts to the Pentagon’s base budget is an attempt to bump the defense budget beyond what current spending caps allow, and force the president to request supplemental funding next year.

The Senate Armed Services Committee, led by Chairman John McCain, has not supported Thornberry’s approach. During a closed session ending late Thursday night, the SASC passed a $602 billion defense authorization bill with only three dissenting votes. The Senate subcommittee bill only shifts $5 billion from OCO to base budget funds, as requested by the Obama administration, as opposed to the $23 billion in the House version. McCain would also like to see more funding for defense, but is hoping to achieve this through negotiations on the floor. The SASC markup of the NDAA should be released to the public imminently. The bill can be expected to go to the floor before Memorial Day Weekend.

Other Points of Interest:

Overall, the House NDAA bill is more generous with authorizing funding for the Air Force B-21 bomber program, procurement of Russian RD 180 engines for U.S. manufactured rockets, pay increases for military personnel, and other weapons manufacturing. McCain has vocalized opposition to overspending in these areas, prioritizing the need for broader military reforms in structure, healthcare, etc.  The HASC markup of the NDAA may be found here.

The Senate version of the NDAA also proposes significant restructuring of existing Combatant Commands, a change to the role of the Chairman of the Joint Chiefs of Staff, and further restructuring of OSD’s acquisition leadership organization.

 “This is a reform bill, The NDAA contains the most sweeping reforms of the organization of the Department of Defense in a generation.”

– John McCain, May 12, 2016

House Defense Appropriations:

On Wednesday this week the House Appropriations Committee released the subcommittee draft of the FY17 Defense Appropriations Bill. A full committee markup of the bill is scheduled for this Tuesday, May 17. The current version supports the NDAA proposal from the HASC, shifting about $16 billion in OCO funds to the defense base budget, funding a 2.1% pay increase for military personnel, and expanding weapons infrastructure. Find the full text of the current bill here and stay tuned for developments on Tuesday.

Senate Appropriations Moves Ahead:

Last week, Senate Majority Leader Mitch McConnell was forced to contend with a stall in his appropriations schedule due to a controversial amendment to the FY17 energy and water bill. The amendment proposed by Senator Tom Cotton of Arkansas, would have dealt a fatal blow to the Obama administration’s nuclear deal with Iran. After a deal brokered by Senator Lamar Alexander (R-TN) on Thursday, Cotton’s amendment was rejected, the energy and water bill passed, and now the Senate appropriations cycle can proceed on schedule. Up next is the MILCON/VA appropriations bill.

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Quick Hit – May 9, 2016

by Gene Moran in Blog

Big week for defense in the House and Senate.

In the House…

Last week the House Armed and Services Committee approved a defense budget topline of $610 billion, adhering the budget deal agreed upon last fall, and $59 for Overseas Contingency Operations (OCO). See the full bill and text here.

This week…

  • Tuesday: Full bill text for House version of defense appropriations released; tables will not be released prior to the Full committee mark by HAC.
  • Wednesday: House Appropriations Subcommittee on Defense markup of FY17 defense appropriations

What to look for…

Now, it is up to Defense Subcommittee Chairman Rodney Frelinghuysen (R-NJ) to back HASC Chairman Mac Thornberry’s plan to extend OCO funds through April next year as a mechanism to raise the budget topline. Frelinghuysen has recently expressed concern about the need to maintain Army aviation readiness in order to deter Russia, so his support can be expected.

What comes next…

  • May 16: House floor action on NDAA begins

*** Without a budget, the House must wait until after May 15th to proceed with floor action on appropriations bills. It is unlikely a budget agreement will be reached before then.

In the Senate…

The Senate will mark up its own version of the National Defense Authorization Act (NDAA) this week in a series of subcommittee hearings. The legislation will largely reflect Chairman John McCain’s defense agenda, as this is possibly his last appropriations season as head of the SASC.

What’s coming up this week…

  • Monday: Airland Subcommittee closed hearing at 2:30 p.m.
  • Tuesday: Seapower Subcommittee closed hearing at 9:30 a.m.

Personnel Subcommittee open hearing at 11:00 a.m.

Readiness and Management Subcommittee open hearing at 2:00 p.m.

Emerging Threats Subcommittee open hearing at 3:30 p.m.

Strategic Forces Subcommittee closed hearing at 5:30 p.m.

  • Wednesday: Senate Armed Services full committee closed session beginning 9:30 a.m., continuing through Friday, May 13.

In the coming weeks…

  • May 16: Senate Appropriations Subcommittee on Defense appropriations markup
  • May 18: Senate Appropriations Committee full committee mark of FY17 defense appropriations

Off the Hill…

The Sea-Air-Space Exposition is taking place at the Gaylord National Convention Center in Washington D.C. from May 16 – 18. The SAS is the largest maritime exposition in the country…find the list of this year’s exhibitors here.

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Quick Hit – April 20, 2016

by Gene Moran in Blog

What Happened Yesterday?

In the House…

The House Armed Services Committee (HASC) released the six subcommittee (Emerging Threats and Capabilities, Readiness, Military Personnel, Tactical Air and Land Forces, Seapower and Projection Forces, and Strategic Forces) markup bills for the FY17 National Defense Authorization Act (NDAA). The full committee markup will be released by Chairman Mac Thornberry on Monday.

Here’s What We Know

  • Army’s authorized troops were increased by 5,000 to total 480,000 for next year
  • Requested funding for extra fighters (14 F/A 18 and 11 F-35) are expected to be included in the final markup
  • Navy ships will increase and proposed cuts to Pentagon budget delayed
  • Military payroll increase
  • More funding for Army helicopter programs
  • Restart production of F-22 fighters

What Does It Mean?

  • Subcommittee markups look good for defense contractors
  • Nothing in terms of the budget…there is still no topline budget agreement
  • Hard to tell the full picture until Monday, many provisions have still not been released (ex. Healthcare reform for military personnel)

*Side note* The Senate will start its version of the FY17 NDAA the week of May 9

In the Senate…

FY17 Commerce, Justice, Science and Related Agencies (CJS) Spending Bill Approved in Subcommittee

Breakdown:

  • $56.3 billion total spending
  • $563 million above FY16 level
  • $1.6 billion over budget request
  • Full Committee review on Thursday

FY17 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Spending Bill Approved in Subcommittee

Breakdown:

  • $56.5 billion total spending
  • $827 million below FY16 level
  • $2.9 billion below budget request
  • Full Committee review on Thursday

What’s Happening Today?

In the House…

Hearing: Senate Budget Committee – “Fixing the Broken Budget Process and Restoring Stability to Government Operations”

Markup: House Appropriations Committee Legislative Branch Subcommittee – FY17 Legislative Branch Appropriations Act

In the Senate…

Hearing: Senate Appropriations Committee Interior, Environment, and Related Agencies Subcommittee on FY17 budget and EPA funding

Hearing: Senate Appropriations Committee Defense Subcommittee on FY17 budget, funding for defense innovation & research

On Thursday?

In the House…

Closed Hearing: House Appropriations Committee Defense Subcommittee on Intelligence Community budget

In the Senate…

Markup: Senate Appropriations Committee on FY17 CJS and THUD proposals

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