APPROPRIATIONS/BUDGET NEWS

FY 2019 Housing and Urban Development Appropriations IT Fund
(HJ Res. 31) February 2019

The Congress has approved the FY 2019 Consolidated Appropriations Bill. This legislation includes Division G – The Departments of Transportation and Housing and Urban Development Appropriations Act, 2019.

The agreement provides funding of $280 million for the information technology fund of HUD, compared to the budget request of $260 million and the $240 million recommended by the House, of which $260 million is available until September 30, 2020, and $20 million is available until September 30, 2021. This funding is provided under the following provisos:

• Provided, that any amounts transferred to this Fund under this Act shall remain available until expended:
• Provided further, that any amounts transferred to this Fund from amounts appropriated by previously enacted appropriations Acts may be used for the purposes specified under this Fund, in addition to any other information technology purposes for which such amounts were appropriated:
• Provided further, that not more than 10 percent of the funds made available under this heading for development, modernization and enhancement may be obligated until the Secretary submits to the House and Senate Committees on Appropriations, for approval, a plan for expenditure that –

(A) identifies for each modernization project: (i) the functional and performance capabilities to be delivered and the mission benefits to be realized, (ii) the estimated life-cycle cost, and (iii) key milestones to be met; and

(B) demonstrates that each modernization project is: (i) compliant with the Department’s enterprise architecture, (ii) being managed in accordance with applicable life-cycle management policies and guidance, (iii) subject to the Department’ s capital planning and investment control requirements, and (iv) supported by an adequately staffed project office.

The Senate Appropriations Committee made the following comments in its Senate Report 115-268:

HUD Information Technology Modernization. — The Committee remains supportive of HUD’s efforts to modernize its IT systems, which are critical to effectively manage its programs. For years, HUD has been hampered by outdated IT systems that are not integrated, which limit its ability to oversee grantees. In addition, HUD’s efforts to work around system limitations to collect information for oversight purposes often results in increased work for grantees who have to input information into multiple systems. While HUD has undertaken efforts to better integrate systems, the Committee remains concerned that non-mission-critical development activities are occurring at the expense of mission critical IT systems.

Unsanctioned Information Technology Development. — The Committee remains concerned about the development of IT systems out-side of the Information Technology Fund. While the Committee understands that limited resources may prompt HUD offices to develop solutions with their own resources, the Committee expects that, at a minimum, OCIO will monitor and oversee the development of any such solutions. The Committee directs the OCIO to monitor the development of new system solutions by every office in HUD to make sure they conform to HUD’s enterprise architecture and will be compatible with systems under development.

The House Committee on Appropriations made the following comments in its House Report 115-750:

The Committee strongly urges HUD to continue refining the services and contracts under the Department’s Working Capital Fund so that IT services can be funded by the users.

The Committee directs HUD to continue with efforts to retire obsolete, unproductive, and expensive information technology systems, and streamline and consolidate current services contracts in an effort to direct resources for higher priority and more effective systems. The Committee commends the Department’s efforts for a Department-wide technology assessment of all applications and platforms used at HUD, and recommends the savings found from the consolidation and simplification of the architecture go towards the development, modernization, and enhancement of HUD’s IT systems.

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Jerry Chouinard
Deep Water Point Legislative Affairs Lead
jerry.chouinard@deepwaterpoint.com

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APPROPRIATIONS/BUDGET NEWS

The Congress has approved the FY 2019 Consolidated Appropriations Bill. This legislation includes Division A – The Department of Homeland Security Appropriations Act, 2019.

See the summary of the DHS portion of this consolidated bill: FY 2019 Final Funding for DHS
Some highlights:

1. Provides $120 million for headquarters consolidation at St. Elizabeth’s campus.
2. Provides $4.7 million for Consolidated Financial Solution under ICE.
3. Provides $109.6 million under Operations and Support for E-Verify
4. Provides $22.8 million under Procurement, Construction and Improvements for E-Verify.
5. Provides $33 million for the Election Infrastructure Security Initiative under NPPD

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Deep Water Point Legislative Affairs Lead
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APPROPRIATIONS/BUDGET NEWS

An endorsement of sorts:
White House Press Secretary Sarah Sanders said today that President Trump is inclined to sign the FY 19 Homeland Security conference agreement, as Roll Call reports:

“Sarah Huckabee Sanders did not resist the notion that Trump is leaning toward signing a package that would give him just under $1.4 billion for the barrier project even though it is far less than his $5.7 billion demand. She noted, as her boss said Tuesday, that he is not thrilled with the emerging legislation but also described him as ‘okay’ with the path ahead.

“‘But he’s okay because he’s going to get the job done, no matter what,’ Sanders told Fox News. ‘You can rest assured the president said he was going to build a wall, and he’s going to deliver.'”

Sanders, however, left open an escape hatch:

“We want to see what the final piece of legislation looks like. It’s hard to say definitively whether or not the president’s going to sign it until we know everything that’s in it,”

Politico Playbook is reporting that appropriation staff is having trouble pulling the final deal together:

“BORDER SECURITY DEAL UNRAVELING? … LATE LAST NIGHT, we started getting text messages that the border security deal was unraveling a bit as senior aides and lawmakers were drafting it.

“IT SEEMS AS IF the deal was announced a bit too early. They agreed on the big issues in principle, but as they put pen to paper, there were both critical issues and ancillary issues that were not yet solved.”

Difficulties are showing up in three areas:

“– DISAGREEMENTS ON BORDER LANGUAGE: As Republicans and Democrats work out the border barrier language, they’ve hit some snags on how to craft the language that gives PRESIDENT DONALD TRUMP his $1.375 billion for the border wall. Republicans felt like Democrats might try to tie the president’s hands on who needs to give approval, where it is and how to build it.

“– FEDERAL CONTRACTOR BACK PAY: Congress has already passed legislation to make whole federal workers who were not paid during the last shutdown. There’s an effort afoot in negotiations between Republicans and Democrats to insert language to do the same for federal contractors. This is not a partisan issue. Several Republicans have been supportive of this effort. But there’s definite disagreement among Republicans and Democrats whether they can squeeze this in.

“– VIOLENCE AGAINST WOMEN ACT: VAWA was extended as part of the last government funding bill, and expires Friday. Republicans have pushed for a straight, clean extension as part of this bill. Democrats want to deal with VAWA separately — they have their own bill. But if it’s not extended before Friday, it will lapse.”

Even while appropriations staff was struggling to pull together the omnibus bill, House Majority Leader Steny Hoyer predicted that the House could vote on the bill as early as tonight. Under that scenario, the Senate would vote on the legislation on Thursday.

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Jerry Chouinard
Deep Water Point Legislative Affairs Lead
jerry.chouinard@deepwaterpoint.com

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APPROPRIATIONS/BUDGET NEWS

Appropriators will meet this afternoon
From CQ

“Republican and Democratic appropriators from both chambers plan to meet Monday afternoon in an effort to revive spending talks as the government heads toward its second shutdown in three months.

“The so-called ‘four corners’ – Senate Appropriations Chairman Richard C. Shelby, R-Ala., and ranking member Patrick J. Leahy, D-Vt., and House Appropriations Chairwoman Nita M. Lowey, D- N.Y. and ranking member Kay Granger, R-Texas, – will attend the meeting, according to a Shelby spokeswoman.

“A Democratic aide said the meeting would take place at 3:30 p.m.”

Chad Pergram from Fox News tweeted on some possible outcomes of the meeting:

“It’s possible appropriators could split the appro pkg – taking the six spending bills where there is agreement and moving them as ‘new’ bills – and simply doing a CR for DHS. But, a CR for all bills is bad for Democrats. They scored a lot of domestic policy wins in those measures”

“A CR for everything means Democrats leave money for their programs on the table. This could be an incentive for Democrats to deal. But Democrats would happily take six new bills combined together as a ‘minibus’ and a CR simply renewing all old DHS funding at current levels.”

“Then again, the water is fouled so badly that the only option may be a short-term CR for everything or even a long-term CR for the entire fiscal year, ending September 30. Fox is told the President is willing to do a CR, both short term and long term.”

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For more information, contact:
Jerry Chouinard
Deep Water Point Legislative Affairs Lead
jerry.chouinard@deepwaterpoint.com

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APPROPRIATIONS/BUDGET NEWS

House votes today on a six-bill omni and a February 28th CR

H.R. 648 – Consolidated Appropriations Act, 2019

H.J.Res. 28 – Further Additional Continuing Appropriations Act, 2019

Politico reports that freshmen Democrats are pressuring leadership to find an end to the shutdown.  Many believe they were elected last fall to find compromise:

“A group of centrist House Democrats, sick of political posturing, is pressing Speaker Nancy Pelosi to counter Trump’s immigration proposal with her own potential compromise. The group, led by freshman Rep. Elaine Luria of Virginia, is asking the California Democrat to offer Trump a vote on his border wall or some sort of negotiated security package in February if he first signs a bill reopening the federal government.”

Senate vote on ending the shutdown 

The Senate will vote tomorrow on two options for ending the shutdown.  The first includes the six FY 19 unfinished but conferenced bills and the President’s DACA proposal, along with other immigration reform.

The second vote will be on a clean CR that runs through Feb. 8.

Politico Playbook outlines the significance of the two votes:

“– BOTH OF THESE BILLS are likely to fail. Neither is expected to reach 60 votes. What this does do is it gives senators a chance to vote on government funding — something MAJORITY LEADER MITCH MCCONNELL’S Senate has not done in a few weeks.

“– FOR THE RECORD: There will be Republicans who vote for the clean stopgap bill — but, as of now, not enough to reopen the government. Ending this standoff doesn’t appear to be the purpose of this exercise at this point. This is a pressure-valve release, of sorts.

“– WHAT THIS WILL DO: THIS SHOWS THE PRESIDENT that neither option is workable, at the moment, and some dynamic has to change if government is going to reopen.”

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For more information, contact:
Jerry Chouinard
Deep Water Point Legislative Affairs Lead
jerry.chouinard@deepwaterpoint.com

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APPROPRIATIONS/BUDGET NEWS

House to vote today on two FY 19 appropriations bills

– Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2019

– Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2019

Yesterday the House passed the FY 19 Financial Services/Gen. Govt. bill by a vote of 240-188.

8 Republicans voted for the bill – Brian Fitzpatrick, John Katko, Jaime Herrera Beutler, Will Hurd, Adam Kinzinger, Elise Stefanik, Fred Upton, and Greg Walden.

This is a slightly different group than the 7 who voted for HR 21 – the six bill package of FY 19 appropriations bills:  Will Hurd, Elise Stefanik, Fred Upton, Brian Fitzpatrick, Peter King, Greg Walden and John Katko.

Now what?

We have asked the question, “Now what?” several times during the most recent partial government shutdown.

Following yesterday’s abrupt ending to the White House meeting between President Trump and congressional leaders, Sen. Lindsey Graham met with several Republican senators as Politico reports:

“Sen. Lindsey Graham is throwing a Hail Mary to reopen the government.

“Graham brought together a half dozen Republican senators Wednesday afternoon in a last-ditch attempt to resolve the three-week stalemate before President Donald Trump deploys an explosive emergency declaration to build his border wall. The Republican senators were joined mid-meeting by White House emissaries Jared Kushner and Shahira Knight, the president’s congressional liaison.”

Graham’s group plans to meet with Sen. Majority Leader Mitch McConnell today and find a deal that will allow the shutdown to end before the President declares a national emergency.

Charlie Savage with the New York Times wrote that finding that deal may be mission impossible:

“Both sides have taken absolutist positions that leave no room for the kind of split-the-difference compromise that usually ends budget impasses. Mr. Trump refuses to accept anything less than his demand for about $5 billion in wall spending, and House Speaker Nancy Pelosi has said his wall along the southern border would be immoral.”

Savage makes the case that if the President declares a national emergency it may be “the only politically realistic way out of the shutdown crisis.”

Such a declaration will wind up in the courts but that will buy time:

“In the meantime, the shutdown that is threatening to last for months could end. Hundreds of thousands of federal workers and contractors could once again receive their wages and pay household bills. National parks could reopen and be cleaned. Needy families could keep receiving food assistance. Across the economy, farmers and businesses that depend on government actions could proceed with work they need to be handled.1010

“It’s a way to get past an ugly fight in a way that allows the dust to settle and passions to cool while moving on,” said Bruce Buchanan, an emeritus professor of political science at the University of Texas at Austin.

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Jerry Chouinard
Deep Water Point Legislative Affairs Lead
jerry.chouinard@deepwaterpoint.com

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APPROPRIATIONS/BUDGET NEWS

House CR vote up in the air

Shortly after the Senate last night approved the CR running through February 8th, House Republicans and various media outlets spoke up in protest.

Politico Playbook summarizes what happened:

“HOUSE REPUBLICANS have not decided whether to pass this bill today — they put off a decision last night. They have a party meeting at 10 a.m., but they had a rough night last night. The whip team surveyed House Republicans last night and found out that southern lawmakers were peeved the short-term spending bill included no disaster money. TO BE SURE, the stopgap spending bill would likely still pass, being carried mostly by Democrats.

“CONSERVATIVES in the House Freedom Caucus are livid, and they took to the floor last night to rap Republicans for not building the wall as part of this spending bill. The topic took up the first 10 minutes of Fox News’ “Hannity” last night. Expect to see Freedom Caucus folks all day today on Fox News to try to tell the president he shouldn’t fold.

“CNN’S OLIVER DARCY (@oliverdarcy) at 7:26 p.m.: ‘Trump’s media allies are not happy w/his retreat on the border wall. Breitbart has called it a ‘cave.’ Drudge says ‘TRUMP IN RETREAT.’ Rush Limbaugh says Trump’s going to ‘get less than nothing.’ And Fox News leading its website right now with a roundup of frustrated reactions.’

“NORTH CAROLINA REP. MARK MEADOWS, who certainly has the president’s ear, told a group of us reporters this last night: “The last time I checked, I don’t think our tactical advantage increases in February. … It is Congress’s fault [the president didn’t get the wall] on his desk. But there is only one person who could fix it now. And that’s the president of the United States. ‘HOW WOULD HE FIX IT: ‘By vetoing this bill. ‘ AND THEN WHAT: ‘Renegotiating.””

We are hearing that the Republican House Members biggest concern is that the President will veto the bill.  

Anticipating that the House might not approve the CR, Senate Majority Leader Mitch McConnell announced the Senate would be in session today, “We have to see what the House does with what we just sent them.”

Tax Reform Vote today

The House has also scheduled a vote today on HR 88, the Retirement, Savings, and Other Tax Relief Act of 2018 and the Taxpayer First Act of 2018.

A vote last week on the bill was cancelled because there were not enough Republicans in town for it. Democrats are expected to vote against the legislation.

Not sure if this will pass today. The House only had about 360 members, in attendance last night…180-190 were Democrats.

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For more information, contact:
Jerry Chouinard
Deep Water Point Legislative Affairs Lead
jerry.chouinard@deepwaterpoint.com

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