Quick Hits - What it Means
The Bottom Line
After a brief shutdown that occurred over night and lasted less than six hours, the Senate approved yet another stopgap funding bill early this morning with a 71-28 vote, followed by a House vote of 240-186 to send the agreement to the president’s desk. The new stopgap bill will keep federal agencies and the military running until March 23rd. While this new legislation includes the framework for a longer budget agreement born out of the Senate on Wednesday, it is important to note that this is not a full appropriation. According to appropriations staffers, the House and the Senate will use this newly extended deadline to finally parse togetherFY18 defense appropriations. President Trump signed the bill first thing this morning.
What is Included in the Two-Year Budget Agreement?
- Increase in spending by $300B over the next two years (around $165B to the Pentagon and $131B to non-defense domestic spending)
- This year: increase in defense spending by $80B and domestic spending by $63B in excess of the 2011 budget caps
- Next year: increase in defense spending by $85B and domestic spending by $68B in excess of the budget caps
- Raises the debt ceiling until March 2019, after mid-term elections
- Will add around $1.5 trillion to the budget deficit over the next 10 years
- $90B in disaster relief funds for US states ravaged by hurricanes and wildfires
Based on an appropriation being agreed in March, expect funds to flow to agencies in June. Billions of dollars will likely go unobligated as they are being received so late in the year again.