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Federal Funding Update
At this time, it seems Congress is on the path to avoid another shutdown. The current continuing resolution (CR), passed in November, keeps the federal government open and funded through January 30. By then, Congress must enact full spending bills or another CR, or it risks a government shutdown.
Congressional leaders have made progress in their bipartisan negotiations over the past few months. By next week, Congress is hoping to enact 3 more full-year spending bills (Commerce-Science-Justice; Energy-Water; Interior-Environment), if it can overcome some disagreements about earmarks. If that happens, Congress will have enacted 6 of the 12 spending bills that are needed.
This month, congressional leaders will work to see whether they can reach a bipartisan agreement on any of the remaining 6 spending bills. Their goal is to pass a legislative package by January 30 that would include another CR (it is unclear if it will be short-term, or if it will fund programs through the end of the fiscal year) and any of the 6 spending bills for which they are able to reach an agreement.
Democrats are signaling that they do not plan to shut down the federal government over an extension of the Affordable Care Act enhanced premium tax credits.
House Passes ACA Tax Credit Extension
The House voted 230-196 yesterday to extend the Affordable Care Act enhanced premium credits for three years. In December, House Democrats filed a discharge petition to get the legislation to the floor after Speaker Johnson refused to hear the bill. Four Republicans signed the petition as well, so the bill had to be heard. Although it passed in the House, it is not expected to pass the Senate, however, the vote does put pressure on the Senate to come up with a bipartisan agreement on the healthcare tax credits.
Pressure to Adjust SNAP Changes
H.R. 1, the major tax package enacted by Congress this past summer, included several provisions to cut funding for the Supplemental Nutrition Assistance Program (SNAP). One provision requires states to reduce SNAP payment error rates, or risk losing partial federal SNAP funding. The National Governors Association, National Association of Counties, National Conference of State Legislatures, and the American Public Human Services Association, which represent SNAP administrators, are urging Congress to give states more time to bring their error rates down. There appears to be some effort to add an extension to any funding package Congress advances this month. Without an extension, states may lose significant funding for SNAP in the coming years, putting increased pressure on state budgets.
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