More on the CR; Budget Negotiations Expected to Begin Soon; Senate Committee Holds Hearing on NIH Funding; Speaker Shakeup Continues; No Mandatory Spending in Senate Innovations  

As previously reported, the House and Senate passed a continuing resolution (CR) that will fund federal government agencies through December 11th and the President signed the bill into law before midnight, averting a government shutdown. The CR (H Con Res 79) funds federal agencies through December 11 at a rate 0.2 percent below fiscal year (FY) 2015. This across-the-board cut ensures that the budget adheres to the current sequestered spending caps.

Congressional leaders now have ten more weeks to reach an agreement on the overall funding level for FY 2016 and attempt to end sequestration. If they can negotiate a deal, the appropriations committees will combine the unfinished spending bills into an omnibus package to finalize the budget.

Although some members of Congress have indicated support for increasing the cap on defense spending, Senate Democrats and President Obama will not accept a deal that fails to provide increases for non-defense programs as well. Senate Majority Leader Mitch McConnell (R-KY) and Senate Minority Leader Harry Reid (D-NV) will lead negotiations with some involvement by House Speaker John Boehner (R-OH) before he retires at the end of October. Media reports indicate that McConnell and Boehner spoke to the president briefly last week and agreed to begin the talks “soon.” Aides to the congressional leadership also met with White House staff to discuss a possible agreement. McConnell said he would like a two-year budget deal that revises the spending caps and replaces sequestration with alternate savings so that the appropriations process can return to “regular order.”

The effect of the stalled budget negotiations on the National Institutes of Health (NIH) were addressed in a Senate Appropriations hearing this week (details below).

On the House Speaker front, the conference is in disarray since Majority Leader Kevin McCarthy announced that he was dropping out of the race and have renewed their pleas for Rep. Paul Ryan (R-WI) to come to their rescue and run. Many members want Ryan to run for the post, but it's not clear whether he'll answer the calls to take on the difficult responsibility of the Speakership. ASPET will continue to monitor this space and apprise you of developments as they occur.

Last updated: October 19, 2015