Major Funding Actions Await the Return of Congress

With less than a month remaining in federal fiscal year 2021, both chambers remain in recess.  The Senate is scheduled to return to Washington on September 13, and the House on September 20.  Status and next steps on key funding issues:

FY 2022 appropriations:  See the August 20 NACBH News report.  At least one continuing resolution (CR) is guaranteed in order to complete work in both the House and Senate.

FY 2022 budget reconciliation:  On August 11, the Senate passed a $3.5 trillion resolution on a party-line vote of 50-49.  On August 24, the House interrupted its recess to also pass the resolution, identifying top-line budget numbers for various departments and functions and greenlighting a filibuster-proof reconciliation process in the Senate.  Attention now turns to fleshing out the $3.5 trillion in “human infrastructure” investments in health care, home and community-based services for the elderly and disabled, housing and food assistance, low income and child tax credits, affordable child care and preschool, higher education, and workforce development.

Infrastructure bill:  On August 10, the Senate passed a $1 trillion infrastructure package with broad bipartisan support, having removed the “human infrastructure” provisions that Republicans would not approve.  Several climate change provisions were included, along with significant investments in roads, tunnels and bridges, rail and transit, access to broadband, replacement of lead water pipes, and other projects traditionally understood to be “infrastructure.”  The House is expected to act on the bill before the end of September.

The debt ceiling:  According to the Congressional Budget Office, the debt ceiling will have to be raised by October or November to avoid a default on U.S. spending obligations.  A plan has not emerged to do so.  It is possible that a short-term debt ceiling lift could be tied to a stopgap CR in late September, with a commitment to negotiate the terms of a longer debt solution.  This would avoid a government shut-down at fiscal year-end and allow time for the pesky details of both (i.e., future budget restraints and final FY 2022 appropriations) to be worked out.  It is also possible that the Democrats will try to raise the debt limit in a freestanding bill, testing the resolve of 46 GOP Senators who have signed onto a pledge not to “help” Democrats raise or suspend the ceiling on government borrowing.