Today on the Hill: Shutdown Odds Raise After House Approves Trump’s Wall Funding

House GOP lawmakers rejected Senate-passed legislation that would have provided a “clean” extension of government funding for seven weeks, opting instead to pass a stopgap bill that would provide $5.7 billion for President Trump's proposed U.S.-Mexico border wall and $8 billion for emergency disaster aid. President Trump told GOP leadership he would veto the Senate-passed bill over the lack of border wall funding while also warning Senators that the shutdown will last for “a very long time” if funding isn’t included. The President is expected to meet with Senate Republicans this morning to discuss the latest state of play with respect to the funding bill.

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Today on the Hill: Senate Advances Short-Term Spending Measure

Late yesterday evening, Senators moved to avert a partial government shutdown by passing a seven-week continuing resolution (CR) by voice vote. Despite a slight snag over reauthorization of the Land and Water Conservation Fund, the Senate advanced the stopgap spending bill — which would extend government funding until February 8 for the nine federal departments and various agencies that have yet to be fully funded, as well as the National Flood Insurance Program (NFIP), Violence Against Women Act (VAWA), and the Temporary Assistance for Needy Families (TANF) program — after striking a deal with Senate Energy and Natural Resources Chairman Lisa Murkowski (R-AK) to have the lands package as one of the first items on the floor in the new Congress.

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Today on the Hill: CR to February Emerges As Likely Funding Scenario

Congressional leaders are reportedly making preparations to punt the government funding deadline into next year. Senate Appropriations Chairman Richard Shelby (R-AL) stated that the Senate is close to advancing a continuing resolution (CR) that would extend funding for the departments covered by the seven unfinished appropriations measures until early February. The deal will likely be supported by Democrats in both chambers, as Minority Leader Chuck Schumer (D-NY) stated that Democrats would “very strongly” consider the short-term measure. While Chairman Shelby and other Republican leaders have expressed cautious optimism about President Trump’s willingness to sign the bill, the president has thus far refused to publicly indicate which direction he will take.

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Today in Congress: House Set to Consider Year-End Tax Package

House Majority Leader Kevin McCarthy (R-CA) has queued up another attempt to vote on a year-end tax package (text; summary) this week following an additional revamp designed to win broader support. The latest version of the bill restores an extension of two expired tax breaks: one for a biodiesel tax credit and another for a railroad track maintenance credit. The bill also contains a host of key health care provisions — including a five-year delay of the medical device tax (until Dec. 31, 2024), a two-year delay for the health insurance tax (until Dec. 31, 2021), and a one-year delay for the “Cadillac” tax (until Dec. 31, 2022) — as well as measures that aim to provide relief for disaster victims and promote incentives for retirement savings. While the bill may have enough support in the House, its future in the Senate remains murky as lawmakers prioritize a resolution to break government funding gridlock. 

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This Week on the Hill: Lawmakers Look to Break Government Funding Gridlock

Lawmakers will return to Washington this week in the hopes of striking a deal to avoid a partial government shutdown. The appropriations process has been deadlocked in a contentious debate over President Trump’s $5 billion border wall demand, leaving the seven remaining funding bills in limbo heading into Friday’s deadline. Among some of the options to avoid partial shutdown that have been pitched include: (1) a short-term continuing resolution (CR) through Christmas to allow lawmakers to come back and try to reach a deal before the end of the year; (2) a two-month CR through January to punt to the next Congress; and (3) a CR for the Department of Homeland Security and passage of the other six remaining appropriations bills.

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Health Policy Report

The Week in Review

The federal government inched closer to a partial shutdown last week following an intense oval office meeting between President Trump and Democratic leadership. President Trump told House Minority Leader Nancy Pelosi (D-CA) and Senate Minority Leader Chuck Schumer (D-NY) that he would be “proud” to shut down the government if the spending deal does not include his $5 billion border security request, frustrating Republican lawmakers who are looking to avoid an end-of-the-year spending fight. Leaders Pelosi and Schumer both reiterated their desire to pass the six funding bills where lawmakers have agreement, and extend the current Homeland Security funding until next September through a continuing resolution (CR).

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Financial Services Report (12/17)

Our Take

Many believe that the overarching theme of Congress 2019 will be one of gridlock, with little legislative action expected to ultimately end up on the President’s desk – save perhaps an infrastructure and data privacy legislation.   And to the casual observer, that may ultimately appear to be correct, but beneath the surface Democrats are going to be doing a lot of work.  This will take the form of an oversight agenda that may be broadened to take into account businesses and industries beyond those connected to or adjacent the Trump organization.  It will also be true for legislative initiatives, as sophisticated actors are working with both 2019 and 2021 in mind.  Like the NFL, Congress is a copycat league, and Congressional Democrats appear eager to mirror the strategy that Republicans utilized between 2010 and 2017 if given the chance.   Keen watchers of Congress over the next years will be wise to keep that in mind rather than focus on the apparent dearth of legislative activity.

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Today on the Hill: Pelosi Strikes Deal With Foes Likely Ensuring Speakership

House Democratic Leader Nancy Pelosi (D-CA) struck a deal with a group of insurgent Democratic lawmakers that will likely ensure she’ll have the votes she needs to claim the speaker’s gavel in the 116th Congress. The agreement would limit her tenure and that of Whip Steny Hoyer (D-MD) and Assistant Leader Jim Clyburn (D-SC) to no more than four additional years. Despite potential opposition to the rule from within the caucus, Leader Pelosi stated she will abide by this agreement regardless of whether House Democrats vote to approve a rule change that would limit their top three leaders to no more than four two-year terms.

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Today on the Hill: House Lawmakers Set to Pass Farm Bill

The federal government inched closer to a partial government shutdown yesterday following a fervid oval office meeting between President Trump and Democratic leadership. President Trump told House Minority Leader Nancy Pelosi (D-CA) and Senate Minority Leader Chuck Schumer (D-NY) that he would be “proud” to shut down the government if the spending deal does not include his $5 billion border security request, frustrating Republican lawmakers who are looking to avoid an end-of-the-year spending fight. Leaders Pelosi and Schumer both reiterated their desire to pass the six funding bills where lawmakers have agreement, and extend the current Homeland Security funding until next September through a continuing resolution (CR).

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Today on the Hill: Agriculture Leaders Release Highly Anticipated Farm Bill Text

House and Senate Agriculture negotiators have released the text (summary) for the final version of the Farm Bill, putting lawmakers on track to pass the five-year legislation this week. The legislation omits conservative-backed work requirements for Supplemental Nutrition Assistance Program (SNAP) recipients — a move that will likely increase support among Democrats in both chambers. Despite President Trump’s adamant support for work requirement language, lawmakers expect the president to sign the bill and potentially pursue the measures through the federal rulemaking process.

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