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House Unveils $1.01 Trillion Measure to Fund Government

Capitol Building
A U.S. flag flies at the Capitol building in Washington, D.C. Lawmakers had agreed on the $1.01 trillion spending level in December as part of a two-year, bipartisan budget agreement. The bill announced tonight would provide funding for individual agencies and avoid a repeat of the 16-day partial government shutdown in October. Photographer: Andrew Harrer/Bloomberg

Jan. 13 (Bloomberg) -- House and Senate appropriators agreed to a $1.01 trillion bipartisan bill to fund the U.S. government through Sept. 30, unveiling the measure days before funding for federal agencies is scheduled to lapse.

The legislation, announced by lawmakers including House Appropriations Committee Chairman Hal Rogers, a Kentucky Republican, and Senate Appropriations Chairman Barbara Mikulski, a Maryland Democrat, probably will reach the House floor on Jan. 15, Rogers said.

“Not everyone will like everything in this bill, but in this divided government a critical bill such as this simply cannot reflect the wants of only one party,” the lawmakers said in a joint statement. “We believe this is a good, workable measure.”

Lawmakers agreed to fund defense spending at $573 billion for the current fiscal year, with $85.2 billion for the war in Afghanistan, about $2 billion less than in fiscal year 2013. The bill also would cut funding for buying and developing new and upgraded weapons systems and defense technologies.

The bill “represents a positive step forward for the nation and our economy,” said Sylvia Mathews Burwell, director of the White House Office of Management and Budget. President Barack Obama’s administration “urges Congress to move quickly to pass it,” she said in a statement.

Three-Day Bill

Lawmakers had agreed on the $1.01 trillion spending level in December as part of a two-year, bipartisan budget agreement. The bill announced tonight would provide funding for individual agencies and avoid a repeat of the 16-day partial government shutdown in October.

Government funding runs out Jan. 15, so lawmakers also plan to pass a separate three-day stopgap bill at current funding levels to push the deadline to Jan. 18. That would give lawmakers enough time to enact the comprehensive bill without risking a government shutdown.

In an effort to win support from Democrats, House appropriators didn’t include contentious policy provisions such as one blocking Obama’s 2010 health-care law.

Republican efforts to thwart the health-care law were at the center of a spending-bill dispute that caused the 16-day partial government shutdown in October.

“There is nothing in the bill that blocks Obamacare,” Mikulski said.

IRS Funding

The measure gives the Internal Revenue Service about $11.2 billion, leaving the agency’s budget little changed and finding a middle ground between the more than $2 billion reduction sought by House Republicans and the more than $1 billion increase sought by Obama.

The bill bars the IRS from targeting groups based on their ideological beliefs, in response to the agency’s scrutiny of Tea Party groups seeking nonprofit status. It doesn’t include Republican-backed limits on paying bonuses or implementing the 2010 health-care law.

IRS officials have said that budget cuts would limit their ability to answer taxpayers’ calls and prevent tax cheating. Recent data showed the audit rate for individuals hitting the lowest point since 2005.

The measure omits several regulatory changes sought by House Republicans, including to keep the Environmental Protection Agency from regulating greenhouse-gas emissions.

Policy Riders

“We tried to keep those political riders out,” said Richard Shelby of Alabama, the top Senate Republican appropriator.

Even so, Republicans were able to place several provisions they’ve sought into the final measure.

The Office of Management and Budget would have to study the cost of implementing Wall Street regulatory changes mandated by the Dodd-Frank Act. Lawmakers preserved language that would block federal funding for abortions. The bill would also prevent Washington, D.C., from spending any money to legalize marijuana.

Another provision would stop Vice President Joe Biden and other senior officials from getting a pay raise.

Mikulski said negotiators agreed to details on all 12 sections of the bill, avoiding the need to write any of them as stopgap spending measures continuing the prior year’s funding.

The Senate plans to take up and pass the short-term extension once the House sends it over. Any senator could delay passage of either measure for about four days, though no senators have said they will do so.

Budget Deal

The 1,582-page bill sets fiscal year 2014 spending at $1.012 trillion, in line with the enacted December budget deal. The House Rules Committee plans to meet tomorrow to set floor debate procedures for the measure.

“It’s a really good deal,” said House Rules Committee Chairman Pete Sessions, a Texas Republican. “The Senate and the House got together in a good way.”

Lawmakers struggled to trim more than $25 billion from military spending amid lobbying from defense contractors including Lockheed Martin Corp., Boeing Co. and General Dynamics Corp. The top customer for each of the top 10 federal contractors was a unit of the Department of Defense, according to a Bloomberg Government compilation of contracting records.

The legislation also would reverse benefit cuts for disabled veterans under the December budget deal.

Disabled Veterans

“We came up with a fix for the disability and survivor part, which is a downpayment,” Mikulski told reporters. She referred specifically to disabled veterans of working age and survivor benefits that were reduced as part of a package of budget cuts included in the December measure to pay for relief from automatic spending cuts known as sequestration.

Several lawmakers said that one of the last unresolved issues had been a proposed $63 billion contribution to the International Monetary Fund’s permanent capital fund. The IMF funding wasn’t in the final bill, according to a summary provided by the House Appropriations Committee.

The Treasury Department has been seeking for months to boost the U.S.’s share, or quota, at the Washington-based IMF by shifting about $63 billion from an existing credit line. The U.S. is holding up the 2010 agreement by all of the IMF member countries, then totaling 187, to double the fund’s lending capacity to about $733 billion.

Holly Shulman, a Treasury spokeswoman, said the department was disappointed that Congress had failed to include the quota funding, adding that “the IMF is critically important to U.S. economic and national security interests.”

To contact the reporter on this story: Derek Wallbank in Washington at dwallbank@bloomberg.net

To contact the editor responsible for this story: Jodi Schneider at jschneider50@bloomberg.net

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