July 4th Recess - Federal Approps Update

Image via Wikipedia

The Art of Politics helps clients access and participate in the Federal Appropriations process, so we follow the progress of appropriation bills very closely. And on the House side, bills are moving. The House passed its first bill — Commerce-Science-Justice — on June 18 and another three — Legislative Branch, Homeland Security and Interior-Environment — before leaving town for this week's July 4th recess. Remember, theoretically, the new federal fiscal year begins in three months, on October 1.

Let me tell you: the passage of ANY appropriation bills (other than Military Construction-VA or Defense) prior to a July 4 recess is a MARKED change from years past, ESPECIALLY last year, when appropriations was utterly broken down by the 2008 presidential and congressional campaigns. In fact, final appropriations for FY2009 weren't settled until February and March of this year.

If you're considering whether or not to apply for an FY11 appropriation, you really need to decide soon, because the active and interactive (i.e. meetings with elected officials) part of the appropriations process starts just after labor day. That leaves you July and August to get your ducks in a row. E-mail me if you have any questions!

The Future of Federal Earmarks

Yesterday, Senate leadership fended off efforts to cut the Omnibus bill’s spending. The Omnibus Bill, for those of you who don't know, will fund the federal government through federal fiscal year 2009 (FY09.) This suggests that Democrats should be able to make their deadline of clearing the bill by Friday, when the current continuing resolution (CR) expires. At the same time, work on FY10 appropriations begins in earnest this week, even before FY09 Omnibus bill is passed and signed.

Congress and the White House will meet soon to negotiate earmarking policy for FY10 bills and beyond. Even though President Obama received earmarks for Illinois as a Senator, he wants to reign in the earmarking process as a whole. Congressional leaders this week cheerily agreed to meet while gently reminding the White House that Congress has the constitutional “power of the purse" and thus any negotiated policy will be agreed to voluntarily, not by force of the White House.

The Art of Politics predicts Congress and the President will negotiate the following earmarking 'rules of the road':

• Lists of earmarked projects will not be hidden in the basement of the Capitol building, but will be published as part of the bill online. Other efforts to increase transparency may be added.
• The total earmarking percentage of the federal budget will be reigned in moderately.
• The earmarking process will continue, and Members of Congress on the Appropriations Committee will continue to be some of the most powerful on Capitol Hill.