Senate Approves Murray-Ryan Budget Deal, Now Goes to President for Signature

December 18, 2013


The Senate today approved the budget deal formulated by Sen. Patty Murray (D-WA) and Rep. Paul Ryan (R-WI) on a 64-36 vote. All Democrats, the Senate’s two Independents, and 9 Republicans voted in favor. The House passed the measure last week, so it now goes to the President, who has said he will sign it into law.

The deal, which provides for a partial easing of the sequester and sets agreed to top line spending levels for this federal fiscal year (ending September 30, 2014) and next, now allows appropriators to put together a package of funding bills for consideration on or before January 15, when the current government-wide continuing resolution (CR) expires. That final package will include as many of the 12 annual appropriations bills as House and Senate appropriators can agree to, with a number of the more politically contentious bills simply extended through another CR. For instance, the Labor Health and Human Services bill that funds the NIH will almost assuredly be moved as a part of a CR because it also funds many social programs that are controversial to some members and it contains key funding to implement aspects of the Affordable Care Act. While individual appropriations bills that are rolled into CRs generally place agencies within the jurisdiction on auto-pilot for both policy and budget authority, lawmakers do on occasion attach “anomalies” that provide for changes such as targeted funding increases at certain agencies within the overall package. Under the higher top line agreed to under Murray-Ryan, it is reasonable to believe that agencies with bipartisan support – like the NIH – could receive a slightly higher appropriation even under a CR scenario. However, we are unlikely to learn any details of the appropriations bills or possible anomalies to a CR until January.

While the fiscal year budget crisis has been ameliorated for the time being, another pending deadline of consequence remains in place, the current suspension of the federal debt limit that expires February 7. The Treasury department will be able to delay the actual default date using ‘extraordinary measures,’ likely into the spring,  but regardless of the date, some conservatives on the Hill are already saying they will use the next debt limit debate to demand another round of deficit reduction in exchange for an increase in new borrowing authority.  It is significant to note that the deeper into the summer the Treasury is able to push the limit, the closer members will be to the fall elections.

Perhaps the most important trend indicated by the  vote last week in the House, aside from impacts on the baseline budget numbers, may be the willingness of the House leadership to waive the custom of the “Hastert Rule” and take a bill to the floor, which might require support from the minority side to pass.  Given the leadership’s commitment to the budget bill, this galvanized over 300 votes in a demonstration of bipartisanship not seen in recent years in the House.  Likewise, in the Senate, the deal ultimately garnered relatively strong bipartisan support. If, in the face of pending elections in the fall, the actions of the House are viewed to be a plus with local constituencies, the vote of the past week could establish a trend of more bipartisanship.

If the Congress wraps up FY14 in January as expected, it will also have a head start on FY15 since the Murray-Ryan agreement provides a top line for two fiscal years. It is conceivable that the new budget framework will provide some limited headroom within which legislative priorities will emerge.  We will continue to work to take advantage of this opportunity in the weeks and months ahead.

Please do be in touch with Suzanne Day or Jon Groteboer in the Washington office with any questions or concerns: (202) 863-1292.