Commentary: The Continuing Funding of the US Government

Commentary: The Continuing Funding of the US Government

Commentary: The Continuing Funding of the US Government

We are all aware that next week Friday, 28 April the US government funding for the remainder of Y 2017 runs out.

My prediction is that Congress, coming back this coming Monday from 2 weeks off, will pass a 2 week CR (continuing resolution) to give them the time to finish negotiating a $1-T Omnibus deal.

Before the start of the congressional recess, Reps were trying to agree on 115 points of contention on the spending package. Many of these contentions involve non-approps issues like policy riders, e.g. sanctuary cities.

Below is some insight from our DC “Horse’s Mouth” on just some of the stuff going on to give you a sense of how this issues is being played out, as follows:

“House R Leadership prefers permanently depriving funding for Planned Parenthood through an ACA repeal bill (AHCA) rather than having that done on a temporary basis through appropriations bills, which would only be in effect through September. Political pressure from House R Leadership’s right flank may force House R Leadership to bring up a bill on the House floor that includes funding for the border wall. That issue, however, would likely draw support only from Rs, and would run into trouble in the Senate. If that bill fails, leaders can turn to a more bipartisan approach.

The Senate could attach a 10-bill Omnibus to the House-passed defense spending bill, and then send it back to the House.

Also, The White House has decided to use the April 28th shutdown deadline to prod Congress to agree to $33-B in extra defense and border wall funding.

President Trump has also threatened to exclude funding in the Omnibus for subsidies to ACA insurers as a way to force Dems to agree to a measure to repeal and replace the ACA.

Senate Dems have insisted that the spending package include $7 to 9-B in cost-sharing reduction payments due to insurers, to avoid a spike in insurance premiums.

A solution could be a funding increase for the Department of Homeland Security that does not specify that the money be used for the wall along the Mexico border.

Both sides could agree to release money for a wall once Homeland Security provides Congress with a more detailed report on the costs and benefits of the wall. One estimate the structure could eventually cost as much as $70-B, not including land acquisition and staffing costs.”

The above is right from HeffX-LTN’s “Horse’s Mouth” in DC.

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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