Paul Krawzak

White House readies $4 billion foreign aid cuts package
Proposal to eliminate unspent funds could ratchet up tensions with Congress over appropriations

The White House budget office on Thursday evening sent a proposal to trim unspent foreign assistance funds by “north of $4 billion” to the State Department for review, according to a senior administration official.

The final price tag of the rescissions package, which could also target unspent balances at the U.S. Agency for International Development, would likely change before being formally submitted to Capitol Hill, the official said.

White House foreign aid cuts to spare Ivanka, Pence favorite programs
Global health, women's economic development and religious protections would not be cut

Funding to support global health programs, promote women’s economic development and protect Christians and other religious minorities abroad from persecution would be exempt from a package of cuts to foreign aid that the White House is developing.

A senior administration official said Monday those programs are a high priority for President Donald Trump.

Senate GOP plans to divert health, education funds to border wall
$5 billion move would set up clash with Democratic House over fiscal 2020 spending

Senate Republicans are looking to pay for President Donald Trump’s border wall in part by putting about $5 billion less in the largest domestic spending bill, several people with knowledge of the process said.

That move signals a likely fight over wall funding, as well as over Trump’s ability to reprogram or transfer funds to the border, when the fiscal 2020 appropriations process resumes after Congress returns in September.

Lawmakers to confront new post-spending caps reality
Will budget resolutions gain a new lease on life? Or is reinstating caps inevitable?

Starting in the 117th Congress, lawmakers will face a reality they haven’t had to deal with since 2010: the absence of discretionary spending caps for the upcoming fiscal year.

After a final stretch covering the next two fiscal years, Congress will have operated under spending caps of one form or another for three decades, with the exception of a nine-year period spanning fiscal years 2003 through 2011.

What the two-year budget deal means for federal spending
CQ Budget podcast, episode 120

With a new budget deal about to become law, CQ Roll Call senior budget reporter Paul M. Krawzak explains how raising the debt limit and raising the spending levels will shape government budget decisions this fall and the year to come. With overall spending limits set, the House will have to revisit the 10 spending bills it has already passed and find $15 billion more to cut.  ...
White House, Hill leaders agree on two-year budget deal
‘This was a real compromise in order to give another big victory to our Great Military and Vets!’ Trump tweeted

House leaders released legislation late Monday that would implement the two-year accord on appropriations and the debt ceiling struck earlier in the day by the White House and top Democrats and Republicans on Capitol Hill.  

The 26-page draft bill, expected to get a House vote Thursday, calls for raising limits on discretionary spending by $321 billion over two years, compared to the strict caps imposed under a 2011 deficit reduction law.

Trump, Democrats split differences in two-year budget deal
Negotiators are still working on some ‘technical language’ issues

Updated 4:15 p.m. | The White House and congressional leaders are close to unveiling a spending and debt limit deal that would boost funding levels by nearly 4 percent across federal agencies, wiping out the 10 percent cuts that were scheduled to take effect under current law.

According to sources familiar with the proposal, the deal calls for a topline defense figure of $738 billion in fiscal 2020, or slightly higher than the House Democrats’ initial request for $733 billion, but short of the Trump administration’s $750 billion request, which includes cap-exempt accounts for troops serving in conflict zones overseas.

Mnuchin says there is a topline agreement on spending caps and debt limit
Treasury secretary says talks continue on offsets and structure of a deal

Treasury Secretary Steven Mnuchin said Thursday that agreement has been reached on spending levels for fiscal 2020 and fiscal 2021 as well as a two-year extension of the debt limit.

“The good news is we’ve reached an agreement between the administration, the House and the Senate on topline numbers for both year one and year two. We’re now discussing offsets as well as certain structural issues. And we’ve agreed as part of that deal there would be a long-term, two-year debt ceiling increase,” Mnuchin said on CNBC’s “Squawk Box.” “So, I think, all of our first choice is to reach an overall agreement and we’re working hard to do that. But if for whatever reason we don’t get there in time, I am encouraging a debt ceiling increase.”

Debt limit may be reached before end of August recess, Mnuchin says
Treasury secretary formally notified Congress of the uncertainty on Friday

Treasury Secretary Steven Mnuchin put his request on paper for Congress to act on the debt ceiling before the August recess, writing to congressional leaders Friday that there’s a chance Treasury could run out of cash in early September.

“Since there is a reasonable uncertainty in projecting government cash flows, it is impossible to identify precisely how long extraordinary measures will last,” Mnuchin wrote in his four-sentence letter, referencing accounting maneuvers Treasury can engage in to carve out room under the $22 trillion debt limit.

Why there's no Senate spending plan as deadline nears
CQ Budget podcast, Episode 117

CBO: Raising the minimum wage to $15 could boost pay of up to 27 million workers
The agency found nearly doubling the federal minimum wage could cost 1.3 million jobs when fully implemented by 2025

The Congressional Budget Office said in a report released Monday that nearly doubling the federal minimum wage to $15 per hour could cost 1.3 million jobs when fully implemented by 2025, though millions would see higher wages and the number of Americans living in poverty would decrease.

The report made clear that its estimate of 1.3 million potential job losses, which would equal roughly 0.8 percent of the workforce, was a median forecast, and that job losses could be substantially smaller — or larger. In a worst-case scenario, some 3.7 million jobs could be lost, the agency said. On the other hand, wages could rise for as many as 27 million workers.

Congress returns to pressure to get spending deals done
Key to budget deal is agreement between Pelosi and Trump, GOP senator says

With only a month to go before the August recess and three months until the end of the fiscal year, House leaders will not bring the two remaining fiscal 2020 appropriations bills — Homeland Security and Legislative Branch — to the floor due to divisions within the Democratic caucus over those bills and diminishing floor time.

Some Democrats are opposed to an inflation adjustment to lawmaker salaries, as allowed in the Legislative Branch bill. Other Democrats are opposed to immigration and border funding provisions in the Homeland Security bill.

Familiar offsets could resurface in spending caps talks
Budget watchdog groups start to dust off older proposals, as well as some new ones

Another year, another spending caps negotiation — accordingly it’s time once again to check the couch cushions for “pay-fors” just innocuous enough to skate by without kicking up too much lobbying dust.

For instance, extending automatic cuts to Medicare and dozens of other “mandatory” spending accounts, which have become so routine they’re almost unnoticed, has been a mainstay of all three deals in the last five years to relieve the pressure on appropriators. Extending fees collected by Customs and Border Protection on passenger and cargo arrivals in the U.S., first enacted in 1985, has been rolled over constantly as a go-to offset for all manner of legislation, including the 2013 and 2018 spending deals.

CBO: US debt growth is slowing, but is still headed for record highs
If debt growth continues, it will surpass the current record high set in fiscal 1946 after the massive World War II military buildup

Federal debt held by the public will nearly double as a share of the U.S. economy, from 78 percent today to 144 percent by fiscal 2049, the Congressional Budget Office projected Tuesday.

By contrast, the record high currently stands at 106 percent of gross domestic product, in fiscal 1946 after the massive World War II military buildup; that record is likely to be breached in fiscal 2037 under the CBO’s updated scenario.

Emergency border funds face delays as money and time run short
House Democrats face possible revolt, Rand Paul threatens to hold up action in Senate

Swift passage of billions of dollars in emergency aid to help care for tens of thousands of undocumented immigrants, many of them children, was in doubt Monday night as House Democrats were facing a possible revolt and a lone Republican senator was holding up action across the Capitol.

Members of the Congressional Progressive Caucus and the Congressional Hispanic Caucus made their concerns known to Speaker Nancy Pelosi about their chamber’s $4.5 billion package that leaders wanted to put on the floor Tuesday.

Tempers flare as leaders, White House fall short on spending deal
Failure to reach agreement after top-level meeting in Capitol

A meeting of top White House officials and congressional leaders broke up Wednesday without agreement on topline funding allocations for appropriators, raising fresh doubts over their ability to avert another fiscal crisis later this year.

House Minority Leader Kevin McCarthy accused Democrats of upping the ante on nondefense spending from what they’d put on the table previously.

Border spending bill sent to Senate floor, but House may act on its version first
Measure provides slightly less than Trump administration sought, but got bipartisan support from Senate appropriators

Senate appropriators approved $4.59 billion in emergency funding Wednesday to address the influx of migrants at the southern border, and their House counterparts said they’re prepping a similar bill to bring to the floor as soon as Tuesday.

The measure appropriators sent to the Senate floor provides slightly less than President Donald Trump’s administration had requested, but leaders of both parties said it did not include “poison pills” that could block passage.

Congressional leaders, White House give spending caps talks another try
Fall government shutdown looms if both sides can’t agree on a deal

White House officials plan to meet with congressional leaders Wednesday — for the second time in as many months — to reach a deal on spending limits that would prevent another government shutdown this fall.

The first meeting, on May 21, produced some initial hopes that a bipartisan deal could be reached relatively quickly, avoiding a breakdown in the appropriations process when the new fiscal year begins Oct. 1.

Spending talks between White House, Hill leadership to resume Wednesday
A round of meetings on May 21 with the same principals involved got off to a positive start, but then petered out in the afternoon

The four top congressional leaders from both parties plan to sit down again Wednesday morning with senior Trump administration officials to try to hammer out an agreement on next year’s spending levels.

The talks at the Capitol will include acting White House Chief of Staff Mick Mulvaney, Treasury Secretary Steven Mnuchin, and acting budget director Russell Vought, according to sources familiar with the plans.

The politics behind spending limit negotiations
CQ Budget Podcast, Episode 114