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Friday, November 1, 2019

Washington Insider: FY 2020 Spending Progress Slow

The Senate on Thursday cleared a “minibus” spending package that covered $214 billion in government spending for Fiscal Year (FY) 2020 (HR 3055) which melded the Agriculture (S 2522), Commerce-Justice-Science (S 2584), Interior-Environment (S 2580) and Transportation-HUD (S 2520) spending bills.

But, as CQ Roll Call reports, “But further progress isn't guaranteed.” That view comes as a procedural vote on a second “minibus” package (HR 2740) would fund the Defense (S 2474) and Labor-HHS-Education measures. The procedural vote, which needed 60 votes to be approved, was rejected.

The issue, not surprisingly, Democrat objections on the border wall. “Democratic objections to funding levels and disagreement over when and how the Trump administration should be able to divert Pentagon funding for the border wall doomed the cloture motion to proceed to debate,” CQ Roll Call said.

However, Senate Majority Leader Mitch McConnell, R-Ky., blamed the impeachment situation for the Democratic opposition to moving ahead on the spending plan. "I'd hoped our Democratic friends would be able to put impeachment aside, at least, long enough to fund the Department of Defense," McConnell said.

Senate Minority Leader Chuck Schumer, D-N.Y., did not cite the impeachment situation in his remarks on package. "A bill that is supposed to provide resources for our troops and their families actually steals money from them and puts it toward a border wall that President Trump promised Mexico would pay for," Schumer stated.

But the wall is not the only component that is a stumbling block. There are significant differences between the House and Senate over topline spending numbers even after the budget accord reached in July that set overall spending amounts.

"The only thing that will move the appropriations process forward is agreement on allocations, a step which will require Senate Republicans to drop their demands to fund a border wall by cutting education," said House Appropriations Committee spokesman Evan Hollander.

This now keeps the spending situation more uncertain than it has been. Currently, the government is operating on a continuing resolution (CR) that is in place through November 21. But the fact the Senate has not moved ahead on most of the spending plans, odds are rising even higher that another CR will be needed to keep the government from shutting down just ahead of Thanksgiving.

Some favor just a short-term extension of spending, while others want any temporary government funding plan to keep the government open into 2020.

Given that lack of agreement, getting even a temporary funding plan in place could prove to be a challenge.

There are also precious few legislative days that both chambers will be in session this month, with a break for Thanksgiving at the end of the month.

Some also fret that if the government were to shut down, that could imperil the Market Facilitation Program (MFP) 2 payments that have been flowing to farmers. The first installment of those payments has totaled over $6 billion and a decision is looming on making a second tranche of those payments this month.

A chunk of U.S. farm income is coming from the government – $33 billion out of the estimated $88 billion in net farm income is expected to come from government payments of one form or another.

So we will see. It appeared after the most-recent government shutdown, that all parties – the House, Senate and the administration – agreed that shutting down the government yielded no real benefits and produced only costs. Hopefully, that view will not have faded as November 21 draws closer and closer. Agriculture needs to closely monitor this situation as these issues outside of agriculture could impact spending for the agency responsible for dealing with farmers, Washington Insider believes.