Amy Belasco, Coordinator
Specialist in U.S. Defense Policy and Budget
Daniel H. Else
Specialist in National Defense
Bruce R. Lindsay
Analyst in Emergency Management Policy
Specialist in International Humanitarian Policy
Kennon H. Nakamura
Analyst in Foreign Affairs
Specialist in Latin American Affairs
Specialist in Foreign Affairs
The Administration requested $64.0 billion in FY2010 supplemental appropriations:
• $5.1 billion to replenish the U.S. Disaster Relief Fund administered by the Federal Emergency Management Agency (FEMA);
• $33 billion for the Department of Defense (DOD) primarily for deploying 30,000 additional troops to Afghanistan and $4.5 billion in war-related foreign aid to Afghanistan, Iraq, and Pakistan; $2.8 billion for Haiti earthquake-related reconstruction and foreign aid;
• $243 million for activities related to the Deepwater Horizon oil spill;
• $13.4 billion to compensate veterans exposed to Agent Orange;
• $600 million for border security; and
• $3.4 billion to settle court cases about trust claims of American Indians (Cobell) and $1.2 billion for discrimination claims of black farmers (Pigford II).
Much of the debate about this year's supplemental focused on the effect on the deficit of additional spending. Under budget rules, Congress does not offset spending that is designated as emergency. So much of the debate has focused on what types of spending are appropriately emergency spending, and offsetting non-emergency spending. Offsets can come from either rescissions, which cancel prior year budget authority (BA), and then apply that BA to new spending, reducing the amount of new budget authority required, or mandatory program savings.
On March 23, 2010, the House passed H.R. 4899, the Disaster Relief and Summer Jobs Act with $5.1 billion to replenish FEMA's Disaster Assistance Fund, $600 million for a Labor Department summer jobs program, offset by $600 million in rescissions so that the bill required $5.1 billion in new budget authority (BA). On May 26, 2010, the House Appropriations Committee (HAC) scheduled a markup of a draft bill with $84.8 billion in new BA, but that markup was cancelled.
On May 27, the Senate passed its version of H.R. 4899 by a vote of 67-28, with $59.9 billion in funding for disaster assistance, war funding, Haiti relief, and new VA benefits, with no additional domestic spending, and without the $4 billion for the two court cases, which was earlier but is no longer included in H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010. With rescissions, the Senate version required $58.9 billion in new budget authority.
On July 1, 2010, the House passed its amended version of the bill with $81.8 billion including funds for disaster assistance, wars, Haiti relief, preventing teacher layoffs, agricultural and energy loans, and Pell Grants in discretionary spending as well as mandatory funding for new VA benefits and the two court cases. With $12.2 billion in rescissions and 10-year savings of $4.5 billion in mandatory savings over 10 years from lower government drug prices, that bill would require $65.1 billion in new BA. On July 22, 2010, after a cloture vote in the Senate failed by 46 to 51, the House July-amended version was sent back to the House. The House is now considering the Senate May version of the bill under suspension of the rules on July 27, 2010.
The Defense Department, the State Department, FEMA, and the court plaintiffs have all cited funding deadlines but there may be flexibility in these dates. Relying on all available funding, DOD may cover its war costs until sometime in August. .
Date of Report: July 27, 2010
Number of Pages: 91
Order Number: R41232
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Thursday, August 19, 2010
Amy Belasco, Coordinator