What's completed:
Budget Resolution – House and Senate passed. This is the blueprint for the fiscal year and Presidential signature is not required. Important action: Set spending targets for appropriators to do their work. Required authorizing Committees to report suggested program changes by September 15.
What’s half completed:
Infrastructure – Passed by Senate by a wide margin. Needs House action.
FY22 Appropriations – House has completed 9 of 12 of the bills. Senate has passed 0. A likely scenario is that spending bills will be combined into groups (called minibuses) or one gigantic bill known as the Omnibus appropriations bill.
What’s not completed:
Budget Reconciliation– A special bill which can be used once a year to overcome filibusters and requires only a majority vote. It is limited to spending and tax provisions rather than policy only. This bill is the one to watch. Look for many program and tax changes, reflecting the Democratic majority’s priorities.
Raising the Debt Ceiling- Secretary Yellen warned Congress that the debt ceiling needs be raised in October. Delays have negative consequences for the economy, including consumer confidence. Failure to raise it can result in a default on US fiscal obligations. See her letter to Speaker Pelosi here.
Continuing Resolution- Since appropriations for FY22 are unlikely to be completed by the beginning of the fiscal year (October 1), a continuing resolution must be passed to keep the government operating until the 12 appropriations bills are passed and sent to the President. If a continuing resolution is not passed by October 1, expect a government shutdown.
National Defense Authorization Act (NDAA) – This annual “must pass” bill determines defense spending for the Fiscal Year. It contains new initiatives, changes in programs and direction for the distribution of funding. The House and Senate will consider this bill when returning to Congress in September.
How to Follow These Actions
Federal contracts and grants depend on appropriations levels and program changes that Congress. The timetable for grants are also affected by delays in funding. And, on a personal note, the stock market is responsive to Congressional actions. If you are a client of Madison Services Group, we send out a daily communication, Today in Washington, that follows major bills like those listed above. In addition, you should familiarize yourself with Congressional websites such as appropriations.house.gov, and Congress.gov. Knowledge is power. Get ahead of your competition by tracking Congress and the programs that provide revenue to your business.
