Update From Washington, D.C.
September 23, 2021
House Approves Stopgap Funding Measure; Senate GOP Unwilling to Support Debt Limit Provision; House Approves Cannabis Banking Legislation; and Democratic Leaders Tee Up Infrastructure Vote.
With the October 1 start of the new fiscal year just around the corner, lawmakers have yet to approve any of the 12 annual appropriations bills. Faced with the impending deadline, the House on September 21 voted along party lines to advance a stopgap government funding bill (HR 5305) that would extend current federal spending levels through December 3, 2021. The measure also includes several “anomalies” that would adjust the amount available to certain agencies and extend a number of statutory authorities. For example, HR 5305 would provide $2.5 billion to support services for unaccompanied minors transferred to the Health and Human Services Department, $250 million for U.S. Citizenship and Immigration Services to reduce asylum backlogs and support its refugee program, and more than $247 million for the Transportation Department to maintain the Essential Air Service program in small communities.
In addition, the legislation, which is known as a Continuing Resolution (CR), includes $28.6 billion in supplemental funding for disaster recovery assistance, as well as $6.3 billion to help resettle Afghan refugees. It also would temporarily extend a number of programs that are slated to expire after September 30, including the National Flood Insurance Program (NFIP) and the Temporary Assistance for Needy Families (TANF) program.
Finally, the legislation includes language that would suspend the nation’s debt limit through December 16, 2022. Once the limit comes back into effect, it would reflect all outstanding U.S. debt as of that date. It should be noted that the debt ceiling came back into effect on August 1, following a previous two-year suspension. Since then, the Treasury Department has been using “extraordinary measures” to allow the federal government to continue financing its operations. However, Treasury Secretary Janet Yellen recently notified congressional leaders that the government could default sometime in October if the limit is not extended or if borrowing authority is not increased.
While GOP leaders are generally supportive of the CR, they are opposed to including the debit limit language in the bill. In fact, Senate Republicans have drafted their own CR that tracks closely with HR 5305, but it does not address the nation’s borrowing authority. Instead, Republicans have suggested that Democrats use the budget reconciliation measure – which can be passed without Republican support in the evenly divided Senate – to address the debt ceiling. Absent an agreement to move forward, the partisan stalemate could ultimately result in a federal government shutdown.
House Approves Cannabis Banking Legislation
The House this week is working through amendments to its annual defense policy measure (National Defense Authorization Act; HR 4350). Of particular interest to California’s Counties, the lower chamber adopted language that would help state-legal cannabis businesses and ancillary operations gain improved access to financial services. Specifically, the provision – which is modeled after the SAFE Banking Act – would exempt depository institutions and their employees from federal prosecution or investigation solely for providing banking services to a state-legal cannabis-related business.
It should be noted that the vote this week marks the fifth time that the chamber has approved the SAFE Banking Act. While the legislation has yet to move forward in the Senate, its inclusion in the NDAA – which is considered must-pass legislation – offers the best chance yet for the proposal to be signed into law. The House is expected to wrap up consideration of the NDAA later this week.
Democratic Leaders Tee Up Infrastructure Vote
Looking ahead to next week, House Democratic leaders intend to bring the Senate-passed infrastructure package (HR 3684) before the chamber as early as Monday. The timing of the vote stems from an agreement between House Speaker Nancy Pelosi (D-CA) and House moderates. In short, centrist Democrats agreed to support a $3.5 trillion budget blueprint – which would allow President Joe Biden’s economic agenda to move forward – in exchange for a commitment to hold a vote on the traditional infrastructure package by September 27.
However, Democratic leaders may have to adjust the aforementioned timeline, as progressives are now threatening to withhold their support unless the legislation is voted on in tandem with the much larger “human infrastructure” package. Further complicating matters, House Republicans have begun whipping against the bill because they see it as linked to the forthcoming $3.5 trillion spending measure. With negotiations on the larger infrastructure package still ongoing, it’s unclear how and whether Democratic leaders will move forward with HR 3684.