The Bottom Line on the Topline: On Wednesday, congressional leadership gave appropriators the green light to finalize FY25 topline numbers, and House Chair Tom Cole (R-OK) and Senate Chair Susan Collins (R-ME) met to discuss that afternoon. The Republican chairs have indicated that they could make an offer to their Democratic counterparts as early as this week. The sooner a topline agreement is reached, the sooner appropriators can decide on subcommittee allocations and finalize a FY25 package. We are certainly encouraged by the progress this week, but recognize there is a long way to go.
In addition to the topline discussions, Republican leadership is working behind the scenes to find a path forward for disaster aid, the debt ceiling, and border security funding. Senate Majority Leader Thune (R-SD) is considering packaging these things together, though this path would almost certainly run into opposition. Democrats have indicated that they will not support a package that includes both FY25 spending and the debt ceiling, and Ranking Member Rosa DeLauro (D-CT) has said she does not expect the FY25 funding deal to include disaster aid. The bottom line is that Democrats have some leverage, as any of these provisions (debt ceiling, disaster relief funding and FY25 appropriations) will need democratic votes to pass.
Impoundment Debate Continues: On Day 1 of his second term, President Trump signed an executive order pausing the disbursement of congressionally-authorized funds – including funds from the Inflation Reduction Act (IRA) and from the Infrastructure, Investment, and Jobs Act (IIJA). While the Administration maintains that this is within constitutional bounds, the Office of Management and Budget (OMB) released a memo earlier this week that significantly reduced the scope of the order, clarifying that the funding pause only applies to programs related to climate change mitigation and incentives for electric vehicle charging.
During his Senate confirmation hearing this week, Russell Vought, President Trump's nominee to be OMB Director, still would not rule out the possibility of impounding congressionally-authorized funding. Democrats are discussing options at their disposal to prohibit the use of impoundment, including initiating a federal probe into the legality of the funding pause.
DOGE Finds its Home: Early this week in his first round of executive actions, President Trump renamed the US Digital Service to the US DOGE Service, established within the Executive Office of the President. Now a legitimate executive office, combined with a congressional path through the House Oversight Subcommittee on Delivering on Government Efficiency, DOGE is poised to suggest spending cuts and regulatory reforms and implement them through legislative action.
Senate Subcommittee Chairs: Earlier this week, the Senate Appropriations announced their subcommittee chairs for the 119th Congress. They are as follows: Sen. John Hoeven (ND) – Ag-FDA; Sen. Jerry Moran (KS) – CJS; Sen. Mitch McConnell (KY) – Defense; Sen. John Kennedy (LA) – Energy and Water; Sen. Bill Hagerty (TN) – FSGG; Sen. Katie Britt (AL) – Homeland Security; Sen. Lisa Murkowski (AK) – Interior; Sen. Shelly Moore Capito (WV) – Labor-HHS; Sen. Markwayne Mullin (OK) – Leg Branch; Sen. John Boozman (AR) – MilCon-VA; Sen. Lindsey Graham (SC) – State-Foreign Operations; and Sen. Cindy Hyde-Smith (MS) – T-HUD.
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