December 13, 2013
On Thursday, December 12, the House voted overwhelmingly (332-94) to approve the Bipartisan Budget Act of 2013. The two-year budget agreement sets top-line discretionary spending levels for fiscal 2014 and fiscal 2015, and partially replaces sequestration of nondefense and defense discretionary spending for those years with alternative savings. While the deal is not a “grand bargain” and fails to address long-term federal budget issues, it would provide increased certainty for states, localities and the private sector about federal spending over the next couple of years.
Now that the budget deal has passed the House, it next goes to the Senate for consideration. While the House is adjourning for the year today, December 13, the Senate is scheduled to be in session next week. At this time, the Senate is expected to consider the budget deal on Tuesday. Despite growing Senate Republican opposition to the agreement, most reports indicate that the bill is still likely to gain approval by the Senate, but by a much narrower margin than it had in the House. President Obama has indicated that he would sign the deal.
Assuming the Senate approves the agreement, Congressional appropriators will need to draft spending legislation, according to the budget deal framework, that can pass both the House and Senate and be signed into law before the current fiscal 2014 continuing resolution (CR) expires on January 15, 2014. Top appropriators in the House and Senate hope to complete all 12 individual appropriations bills in time to meet this deadline and combine them into a full-year fiscal 2014 omnibus package. However, if they are not able to reconcile differences in one or more of the spending bills, those programs may be funded under another continuing resolution.