ARTICLE
8 January 2025

The Topline: Steptoe Appropriations Newsletter

SJ
Steptoe LLP

Contributor

In more than 100 years of practice, Steptoe has earned an international reputation for vigorous representation of clients before governmental agencies, successful advocacy in litigation and arbitration, and creative and practical advice in structuring business transactions. Steptoe has more than 500 lawyers and professional staff across the US, Europe and Asia.
Happy New Year, and welcome to the 119th Congress.
United States Government, Public Sector

Happy New Year, and welcome to the 119th Congress. Today, the House Speaker election will take place and new members will be sworn in. Of interest to those engaged in federal spending, several House Republicans have said this week that they will demand changes to the budget process before voting in favor of Speaker Johnson. With the Speaker election, members swearing in, certification of the election, and the state funeral events (including lying in state in the Capitol Rotunda) for the late President Jimmy Carter, the 119thCongress is already off to a busy start.

Quick Recap: Just before Christmas, Congress passed a continuing resolution to fund the government through March 14 and provide $110 billion in disaster and farm aid. This was no easy feat, with congressional leadership returning to the drawing board several times just before the deadline on December 21.

Pushing FY25 into March will mean that Congress is five months behind schedule. House and Senate appropriators are hoping to get FY25 wrapped up before the deadline, potentially some time in February, but issues like spending cuts and raising the debt limit (more on that below) could complicate negotiations.

Debt Limit: During the holiday break, Treasury Secretary Yellen sent a letter to congressional leadership notifying them that the debt limit will be reached sometime between January 14 and January 23. However, Treasury has sufficient resources and 'extraordinary measures' to prevent default until several months into 2025. The actual default date (called the "X-date") will depend, in part, on April's tax receipts and the rates at which the disaster supplemental and FY25 appropriations funds are spent. Some Republicans have been negotiating with the incoming Trump administration, saying that they will vote to raise the debt limit only if President Trump agrees to deep spending cuts, which could limit his agenda.

Republican Reconciliation Retreat: Assuming the House successfully chooses a Speaker today, the House Republican Conference will meet tomorrow in a rare off-campus retreat on Saturday to discuss issues related to this year's reconciliation packages. Additionally, on Sunday, the House Republican Elected Leadership Committee will meet to strategize on how to move quickly with an ambitious policy agenda during a historically narrow majority.

Appropriations Committee Assignments: The Senate has released committee assignments for the 119thCongress. Senators joining the Appropriations Committee include Sens. Markwayne Mullin (R-OK), Mike Rounds (R-SD), Kirsten Gillibrand (D-NY), and Jon Ossoff (D-GA). Subcommittee rosters have yet to be announced.

As we mentioned last week, House Republicans have added four new members to join the Appropriations Committee: Reps. Mark Alford (R-MO), Nick LaLota (R-NY), Dale Strong (R-AL), Celeste Maloy (R-UT), and Riley Moore (R-WV). We will keep you all posted as we hear more.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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