Continuing Resolutions Will Likely Take Spending Talks into 2018

Last week, Congress approved and the president signed H.J. Res 123, a continuing resolution (CR) to fund the government through December 22. The CR, which avoids a shutdown and keeps federal programs operating at current levels, modified the expiration date of the previous CR set to expire on December 8. All of the previous CR provisions carry forward through December 22. After this date, another funding measure – either another CR or a spending bill funding the government for the remainder of fiscal year 2018 – will be needed. Despite the two-week buffer, there is already an expectation that a second CR into January will need to be passed to give lawmakers more time to complete their work.

These funding measures have implications for research and come into play as Republicans and Democrats negotiate longer-term deals over government funding, which include raising the defense and non-defense budget caps and passing an omnibus spending package for fiscal year 2018 appropriations.

By way of background, at the beginning of the fiscal year, October 1, 2017, spending limits on military and domestic programs came into effect as a result of 2011’s Budget Control Act. Consequently, if Congress wants to increase funding for defense and non-defense programs, lawmakers first need to pass a budget deal to lift the caps and then pass a spending bill containing the actual appropriations for fiscal year 2018 (e.g., funding for the Department of Health and Human Services, Education and Related Agencies). Importantly for the dental, oral and craniofacial research community, it is important to note that for the Senate’s proposed increases for the National Institutes of Health (NIH) and the National Institute of Dental and Craniofacial Research (NIDCR) to be realized, Congress will need to make a deal to raise the caps.

Congressional negotiators are currently considering a two-year budget deal to do just that – potentially raising the caps by more than $200 billion. However, Republicans and Democrats are working under different priorities. Republicans are looking to increase the defense budget – initially seeking a deal that would raise defense by $54 billion and non-defense by $37 billion in both fiscal 2018 and 2019 – and Democrats are seeking parity, proposing increasing defense and non-defense equally by $54 billion, a move that would raise the two-year cost above $200 billion.

In addition reaching consensus on top-line numbers and finding a solution for Democrats’ demand for parity, a number of challenges remain for the budget deal as negotiators look to it as a vehicle to pass other legislation, such as the reauthorization of the Children’s Health Insurance Program and a third emergency supplemental for communities affected by this year’s natural disasters.

According to CQ Roll Call, a GOP aide speculates that a budget agreement will be announced December 18, just a few days before the December 22 deadline to pass another funding measure.

AADR will be closely monitoring these developments over the coming weeks given their implications for research funding. Under a CR, NIH will be paying out grants at a lower rate than they would under regular appropriations (see a previous NIH CR notice here). Therefore, it is critical that Congress pass regular appropriations through the end of the year to provide stability for medical research.

If you have questions, please contact AADR’s Assistant Director of Government Affairs Lindsey Horan or continue to check the AADR Government Affairs and Science Policy Blog for updates.

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