House Continuing Resolution Stalls, Congressional Leadership Begins Fiscal Talks

House Appropriations Committee Chair Hal Rogers (R-KY) filed a continuing resolution (CR) on September 10, but House leaders postponed a scheduled September 12 vote because there were insufficient votes to pass it. The CR would provide level funding for federal agencies between the start of the fiscal year on October 1 and December 15. At $986 billion, the amount is consistent with post-sequester FY13 funding and the House’s FY14 budget resolution. The CR contains seven anomalies, which are departures from current law, including one for HUD that would extend the Rental Assistance Demonstration (RAD) program from its scheduled September 30, 2013 sunset to December 15, 2013. The CR does not include funding adjustments for any HUD program and does not increase the number of units eligible to participate in the RAD program. For different reasons, conservative and liberal House Members both object to the CR. The conservatives object a CR that does not also defund the Affordable Care Act (ACA), while liberals object to continuing funding at the post-sequester level, arguing that sequestration should be replaced in FY14. House leadership sought to gain conservative Members’ support by filing a resolution to defund the ACA, but it was deemed insufficient by conservatives and their advocacy allies.  Senate appropriators have proposed an FY14 discretionary spending level of $1.059 trillion to eliminate sequestration, but they have not succeeded at passing appropriations bills at this level. Senate leadership seeks a CR that would provide funding for a period shorter than the House’s two and a half months, ensuring that Congress debates the replacement of sequestration prior to the end of the Congressional session. Should the House and Senate not craft a CR that meets both parties’ and chambers’ needs, the government could face a shutdown on October 1. Congressional leaders have indicated their desire to avoid this scenario. Just after the beginning of the fiscal year, Congress will also need to increase the debt ceiling to prevent the nation from defaulting on its debts. The country is expected to reach its debt ceiling by mid-October. President Barack Obama has stated that he will not negotiate on the debt ceiling issue, while House Republicans have stated their intention to use it as leverage to defund ACA and cut entitlements and other spending. House and Senate leaders met on September 12 for their first meeting on the fiscal decisions that Congress must address this fall. Minority Leader Nancy Pelosi (D-CA) said the talk was productive, according to reports.  The House was scheduled to be in recess during the last week of September, but it is now likely to remain in session through the end of September to tackle the CR and avoid an October 1 shutdown.