T-Minus One Week: On Wednesday, Speaker Johnson brought up his six-month continuing resolution (CR) on the House floor. As expected, the bill was ultimately defeated on the floor with 16 Republicans joining Democrats to vote "nay" or "present." We hear that House appropriators are now drafting a CR to mid-December which could be filed as soon as Saturday. The House adheres to a 72-hour rule, which would put a vote on the measure early next week. Putting the bill on the suspension calendar would also bypass the Rules Committee.
On Thursday, Senate Majority Leader Schumer filed cloture on the motion to proceed on a legislative vehicle that could be used for the CR. He said the move would give the Senate "maximum flexibility for preventing a shutdown," but noted that both sides should continue working on a path forward.
Senate Appropriations Committee Vice Chair Susan Collins (R-ME) signaled her relief on Thursday that this work is beginning in earnest, saying bicameral negotiations will take place to forge a path forward on a CR following the latest House setback. These negotiations could prove to be productive, and we expect that legislative text will be released this weekend or early next week.
Reminder: Congress is scheduled to begin recess next Friday, September 27th, and government funding expires on September 30th. Although the timeline for action is shrinking, we are optimistic that a compromise on a CR will pass next week.
VA Shortfall: This week, the House and Senate both passed an emergency spending bill for the Department of Veterans Affairs (VA) by voice vote. The $2.9 billion bill will cover the VA funding shortfall, which could have affected the ability of veterans to receive their benefits. Had Congress failed to act by the September 20th deadline, benefits for an estimated 7 million veterans would have been jeopardized. President Biden is expected to sign the bill today.
Even though the bill passed the House and Senate easily, members are still unhappy about the suddenness with which the large shortfall was identified and communicated to Congress. Senator Jerry Moran (R-KS) called the Agency's trustworthiness into question, noting that VA leaders waited until Senate appropriators had already agreed upon subcommittee allocations before alerting them of the shortfall. Looking ahead, the VA estimates it will need an extra $12 billion over the next year, and additional supplementals could prove more controversial.
Joshua Jacobs, the VA Undersecretary for Benefits, apologized for the Agency's handling of the funding gap during a Senate Veterans Affairs Committee hearing on Wednesday. He also claimed the funding shortfall was a result of expanded healthcare and other benefits due to the enactment of the Honoring Our PACT Act in 2022.
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