2015-2025 Federal Budget

2013 FEDERAL BUDGET

President Barack Obama on February 13, 2012 sent Congress the 2013 Fiscal Year (October 1, 2012-September 30, 2013) budget blueprint that envisioned a plan for $4 trillion in the deficit savings over the coming decade, mostly by letting the tax cuts expire for the wealthy. The break-up of the $3.8 billion spending plan includes:

* 43% Mandatory Spending (Medicare, Medicaid, Social Security)

* 7% Interest on Debt

* 22% Defense, Security

* 11% Domestic

* 18% Other entitlements

The projected revenue of $2.9 trillion includes:

* 33% Payroll Tax

* 12% Corporate Income Tax

* 3% Excise Tax

* 47% Income Tax

* 5% Other

Although the projected deficit of $901 billion is less than $1 trillion threshold, it is still a matter of concern as the government needs to borrow 24 cents for each dollar it spends. Part of the revenue growth will come from letting the Bush-era tax cuts for households earning $250,000 per year and on dividend incomes for wealthy taxpayers expire after 2012.

*** SALIENT FEATURES OF 2013 OBAMA BUDGET BLUEPRINT

** Elimination of numerous tax breaks for oil, coal and gas companies (would raise $41 billion over 10 years).

** Purchase cuts of Navy ships and F-35 JSF aircrafts.

** Trimming of 100,000 troops from Defense payroll over the coming years.

** Seeking $476 billion  for transpotation projects, including roads, bridges and a much-criticized high-speed rail initiative. Proposal included $50 billion "upfront" investment for transportation.

** Disbursement of grants to better performing schools as part of the "Race to the Top" initiative.

** Imposition of (10-year, $61 billion ) new tax on banks to partly recover bailout from 2008 financial crisis.

** Investment of $30 billion to modernize at least 35,000 schools, and $30 billion to help states hire teachers, police and fire personnel.

** Creation of $8 billion "Community College to Career Fund" to train 2 million workers for jobs in potential growth areas.

House Republicans' Budget Plan for Fiscal 2012

On March 20, 2012, House Republicans infused in the Presidential Year of Politics their own dose of economic remedy by unveiling their own budget bluprint for Fiscal 2012 (October 1, 2012-September 30, 2013). House Budget Committee Chairman Paul Ryan, R-Wis., this time modified the plan on Medicare reform slightly compared to last year's much villified plan of replacing traditional Medicare by providing seniors subsidy to buy private insurance. According to this year's budget blueprint, seniors (seniors who are currently eligible for Medicare or 55 and older are exempt) will be offered the subsidy to buy private healthcare insurance from the federal insurance exchange, while retaining the traditional Medicare as an alternative offering for the future retirees. Under this year's House Republicans' budget proposal, the Medicare eligibility age will increase to 67 from 65 in 10 years. Medicare spending will be shaved by $205 billion deeper than Obama blueprint over the next decade.

* Medicaid
Medicaid will be cut by $770 billion (over the next 10 years) more than what President Obama has proposed in his budget blueprint. The Medicaid will be given to states as flexible block grants as will be food stamps and housing assistance.

* Changes to Tax Codes
Not clear yet on details, but the existing six tax rates will be simplified to two rates: 10 percent and 25 percent, with most of the tax credits and deductions to be eliminated.

* Corporations
The corporate tax rates will be lowered to 25 percent from 35 percent, and the regime will be changed to "territorial" tax instead of tax on "worldwide profit".

However, Ryan blueprint wants to hasten discretionary and mandatory spending cuts to avoid $110 billion automatic cuts from military and domestic programs ($55 billion in Pentagon spending Plus $43 billion nondefense appropriations Plus $12 billion in other programs) beginning in 2013 as part of August 2011 debt deal between Congress and White House.

Under the House plan, deficit for Fiscal 2012 will fall from the current level of $1.18 trillion to $797 billion as compared to $977 billion under Obama's blueprint. By 2016, the budget deficit will fall, under the House Plan, to $241 billion as compared to $529 billion as estimated by the Congressional Budget Office last week. The Ryan plan will accumulate an additional debt of $3.1 trillion through 2022 as compared to $6.4 trillion under the Obama blueprint. Ryan plan envisions repeal of Obamacare and elimination of Freddie Mac and Fannie Mae.

On May 14, 2013, Congressional Budget Office cut the forecast for Fiscal 2013 budget deficit from $845 billion--estimated three months ago--to $642 billion, mostly due to higher tax receipts and fat pay checks from mortgage giants Fannie Mae and Freddie Mac. The so-called sequestration didn't play any role in the reduction as the estimate issued three months ago had already included the effect from it.

On July 8, 2013, White House came up with the latest budget estimates for the Fiscal 2013:

Deficit: $759 billion vs. $973 billion (estimated in April) vs. $1.1 trillion (2012)

CBO AND WHITE HOUSE ESTIMATES FOR FISCAL 2014

CBO Reports Lowest Budget Deficit in Obama Era
The Congressional Budget Office on January 26, 2015 reported the lowest federal budget deficit for the preceding fiscal year (Fiscal 2014). The federal budget deficit for Fiscal 2014 (October 1, 2013-September 30, 2014) stood at $468 billion compared with $483 billion a year ago (Fiscal 2013).

2015 FEDERAL BUDGET

President Sends Spending Plan to Congress
President Barack Obama on March 4, 2014 sent Congress a $3.9 trillion budget blueprint that caters more to the left in an election season than seeking compromise.

CBO Releases Estimates of Shrinking Budget Deficits
The non-partisan Congressional Budget Office on April 14, 2014 released estimates of budget deficits that reflected a slow, but steady, recovery of a US economy with broader economic picture indicating a brighter future in months to come. The CBO estimate showed the budget deficit for the last fiscal year (October 1, 2012 to September 30, 2013) was $680 billion, the first year under the Obama administration when the deficit stood below trillion dollars. According to the CBO estimate, this year's (Fiscal 2014) budget deficit was projected to be $492 billion (2.8 percent of GDP) and the next fiscal's (Fiscal 2015) figure would stand at $469 billion. Over the coming decade, the budget deficit will total $7.6 trillion, according to CBO.

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House-Senate Agreement on Pentagon Budget
House and Senate negotiators on December 2, 2014 agreed on a $585 billion defense spending bill that included $521.3 billion in core-funding and $63.7 billion in overseas operations in Iraq and Afghanistan.

House Approves Defense Bill
House on December 4, 2014 approved a $585 billion defense spending bill by 300-119 votes. The bill includes $5 billion to fund USA's ramped-up campaign against ISIL in Syria and Iraq.

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A Plethora of Tax Breaks Set to Expire Extended by House
The House of Representatives on December 3, 2014 voted 378-46 to extend a package of tax breaks set to expire this year. The measure will cost $42 billion over the next decade. However, it's not clear how that deficit will be funded. The measure now goes to Senate, which is non-committal on the measure. Some of the main tax breaks include:
* Renewable Energy: Cost--$6.4 billion
* Research and Development: Cost--$7.6 billion
* Foreign Profits of the Financial Institutions: Cost--$5.1 billion
* Sales Tax for States without State Income Tax (TX and eight other states): Cost--$3.1 billion

Most Sweeping Legislation in Almost a Quarter Century to Help Disabled
One of the hallmarks of one of the most defunct Congress may turn out to be a bipartisan effort to help out people with disabilities. House passed the measure, formally called the ABLE (Achieving a Better Life Experience) Act, on December 3, 2014 by 404-17 votes, and the legislation, dubbed as the most groundbreaking piece of legislations since the passage of American with Disabilities Act in 1990, now goes to Senate.
The ABLE Act was modeled after tax-free college savings accounts. To qualify for the measure, one needs to be diagnosed with "marked and severe functional limitations" by age 26. Families may open an account with major financial institutions, and contribute up to $14,000 in after-tax money per year. The money in the account will grow tax-free to support education, transportation and health expenses. The money in the account will grow up to $100,000, up from the current high of $2,000, without any reduction of government benefit such as social security payment. Medicaid coverage will continue as normal irrespective of accrual amount in the ABLE account.

House Approves $1.1 trillion Spending Bill
The lame-duck Congress may be more effective than pre-midterm elections Congress in terms of bipartisanship as the House of Representatives on December 11, 2014 approved a $1.1 trillion spending bill that would fund all government agencies barring Department of Homeland Security through September 30, 2015. The DHS will be funded through February 27, 2015, and fight over President Barack Obama's Executive Order on immigration will loom over the new Congress in the New Year. The vote was 219-206, with many Conservatives expressing their unhappiness over even funding the DHS through February 27, 2015 and, thereby, helping the agency in carrying out Obama's executive order of deportation reprieve to about 5 million undocumented immigrants. On the other side of political spectrum, liberal Democrats spewed out venom against the spending bill's provision for easing restrictions on the country's financial institutions. House Minority Leader Nancy Pelosi had some rare caustic remarks against President Obama, who is expected to sign the legislation after Senate's approval, for embracing the legislation. However, about 70 Democratic House members supported a stand-alone bill in October 2013 that was intended to do just that.

Senate Okays the $1.1 trillion Spending Measure
After high-pitched drama by Texas junior Senator Ted Cruz, the $1.1 trillion spending bill sailed through the Senate on December 13, 2014 night by 56-40 vote.

CBO Reports Lowest Budget Deficit in Obama Era
The Congressional Budget Office on January 26, 2015 reported the lowest federal budget deficit for the preceding fiscal year (Fiscal 2014). The federal budget deficit for Fiscal 2014 (October 1, 2013-September 30, 2014) stood at $468 billion compared with $483 billion a year ago (Fiscal 2013).


2016 FEDERAL BUDGET



President Sends Congress $4 Trillion Spending Measure
President Barack Obama, unconstrained from electoral shackles, set out to lay down his footprint in economic landscape with his Fiscal 2016 budget blueprint that emphasized on increased spending in country's infrastructures such as roads and bridges, ensuring free community college education for most of the Americans, expanding earned income tax credits for two-earner middle-class families and other measures championed by the progressives. The $4 trillion spending blueprint sent on February 2, 2015 included measures and markers such as
* Six-year, $478 billion public works program for highway, bridge and transit upgrades (about $238 billion of $478 billion will come from an one-time 14 percent tax on approximately $2 trillion in the overseas corporate profits parked by US-incorporated corporations. The 14 percent tax rate is much smaller than the top corporate tax rate of 35 percent. The top rate will come down to 28 percent; foreign profits will be taxed at 19 percent rate with companies getting tax credits for taxes paid to foreign governments. The remaining $240 billion will come from the Highway Trust Fund financed by Americans' gas tax)
* Capital Gains Tax rate increase for couples making more than $500,000 per year from the current 23.8 percent to 28 percent. Capital gains tax for securities is required, under the Obama budget of 2016, at the time of inheritance
* 0.07 percent Fees on Financial Institutions with assets of at least $50 billion
* Tax breaks to be given to two-earner middle-income families in terms of up to $500 in earned tax credit, up to $3,000 in child tax credit per child under age 5, and overhauling tax breaks for colleges (Money for tax breaks will come from $320 billion that will be raised over 10 years with the proposed capital gains tax increase)
* Budget Deficit for Fiscal 2016 will drop to $474 billion, or 2.5 percent of the GDP, from the estimated $583 billion in Fiscal 2015, or 3.2 percent of the GDP

This is how the revenue and spending pictures will break down under the President's Fiscal 2016 budget proposal:
* REVENUE ($3.5 trillion)--(1) Individual Income Tax-$1.6 trillion; (2) Social Security Taxes--$801 billion; (3) Corporate Taxes--$473 billion; (4) Medicare--$245 billion; (5) Other Taxes--$358 billion
* SPENDING ($4 TRILLION)--(1) Defense--$585 billion; (2) Nondefense--$569 billion; (3) (Mandatory) Social Security--$1 trillion; (4) (Mandatory) Medicare/Medicaid--$1 trillion; (5) Other Mandatory such as federal pensions etc.--$615 billion; (6) Debt Interest--$283 billion
* BUDGET DEFICIT--$474 billion 

House Unveils Budget for Fiscal 2016
The new House Budget Committee Chairman Tom Price, R-GA, on March 17, 2015 unveiled GOP's budget plan for the upcoming fiscal year (October 1, 2015 through September 30, 2016) that's bold in curtailing spending, balancing Pentagon needs and realizing savings through not-so-promising option of repealing Obamacare. The measure projects:
* Fiscal 2016 spending at $3.8 trillion
* Fiscal 2025 spending at $5.0 trillion
* Spending reduction of $5.5 trillion over the next decade to eliminate fiscal deficit
    > Large part of $5.5 trillion in saving will come from $2 trillion by repealing the Affordable Care Act
   > An additional $900 billion will be saved by transforming the Medicaid and Food Stamp programs into state-run block grant programs
What drew the ire of Liberals and Democrats, the House budget measure aims at changing the Medicare into a voucher-like program to be administered by private insurers beginning 2024.

GOP Faces Division over House Budget Blueprint
As GOP's defense hawks and fiscal hawks were at loggerhead over the budget blueprint unveiled a day ago, House Budget Committee Chairman Tom Price, R-GA, on March 18, 2015 delayed the introduction of the measure for a vote on the House floor.

House and Senate Pass Budget Blueprints
House passed its fiscal blueprint on March 25, 2015, and Senate passed its own version on March 27, 2015.

CBO Estimates a Shrinking Budget Deficit
Congressional Budget Office on August 25, 2015 updated its forecast with a revised--and better outlook--on budget deficit. As per the latest estimate, the budget deficit for Fiscal 2015 will fall to $426 billion, $60 billion less than forecast in March 2015. Next year, as per the CBO estimate, the budget deficit will fall further to $414 billion, before rising again due to swelling retirement of Baby Boomer generation and exceeding $1 trillion in 2025. That year, the government debt will stand at $21 trillion, or 77 percent of the economy.

CBO Reports Smallest Budget Deficit in Eight Years
In the just concluded fiscal year that had ended on September 30, 2015, the government ran a deficit of $435 billion, the smallest since 2007, according to a report issued by the Congressional Budget Office on October 7, 2015.

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Senate Takes First Pass on Running the Government
U.S. Senate on September 28, 2015 passed a stopgap measure, known as continuing resolution (CR) in legislative parlance, that would fund the federal agencies through December 11, 2015 and avert a federal government shutdown at the beginning of a new fiscal year on October 1, 2015. The vote in the Senate was an overwhelming 77-19, obviating any possibility of a conservative filibuster over continuing Planned Parenthood funding. The Senate will take up the measure for the second time on September 29, 2015, and House of Representatives is likely to follow suit on September 30, 2015 just in time for President Barack Obama to sign the CR.

Senate Approves the Bill to Avert Shutdown
On September 29, 2015, Senate passed the final version of continuing resolution by 78-20 votes that would fund the federal agencies through December 11, 2015.

House Passes Temporary Funding Bill; Obama Signs
Just on time, House of Representatives on September 30, 2015 passed the continuing resolution by 277-151 votes that retains the funding for Planned Parenthood while funding federal agencies through December 11, 2015.

Congress Passes a Temporary Measure to Buy Time
As the midnight December 11, 2015 deadline loomed large and Congress was not yet done with finalization of its work on a spending bill and a companion tax relief bill, both the Senate and House took the easy route by approving a continuing resolution for five more days through December 16, 2015 to keep the government running. President Barack Obama signed it on time. The temporary measure sailed easily through Senate floor a day earlier, and House followed suit on December 11, 2015. The next five days will provide Congressional negotiators to focus on hashing out the remaining differences to craft a
* $1.1 trillion spending bill that will fund the government through September 30, 2016
* Companion tax bill that would renew about 50 expiring tax cuts for businesses and individuals that will have a price tag of about $700 billion over the next decade

Congress Reverts back to Old Style Compromise, Approves a Massive Spending, Tax Cuts Bills
The new House Speaker Paul Ryan, R-Wisconsin, scored an impressive victory on December 18, 2015 when he led a Conservative-dominant House to approve a massive spending measure with a $1.1 trillion price tag by 316-113 vote, with 150 Republican lawmakers joining hands with 166 Democratic members. Hours later on December 18, 2015, President Barack Obama signed the bill, and acknowledged the sacrifice made by Ryan's predecessor, John Boehner, R-Ohio, as well as praising the leadership shown by Ryan. President Obama said that the "messy process" of bargaining and negotiation was still a "more typical of American democracy". Before the spending measure headed to president's desk, Senate voted on December 18, 2015 to approve it by 65-33 margin.
A day earlier on December 17, 2015, House of Representatives voted to approve a companion $680 billion (over the next decade) tax package that would extend several expiring tax breaks and make some of them permanent. Senate approved the tax package on December 18, 2015. President Obama signed both bills on December 18, 2015 just before another deadline for emergency funding of government agencies was almost set to expire after an earlier extension on December 16, 2015. The salient features of $1.1 trillion spending bill (annual) and $680 billion tax package (over the next 10 years) are as follows:

(1) $1.1 trillion Spending Bill (annual)
 * A policy rider to end more than four-decade-old ban on oil exports, giving a significant victory to oil industry and backed by Texas lawmakers. Rep. Joe Barton, R-Arlington, was the primary sponsor of the measure.
* The spending bill will increase the nation's debt level by an additional $2 trillion over 20 years, according to the Committee for a Responsible Budget, a nonpartisan group.
* The spending measure breaches the previously agreed spending cap by $66 billion
* Democrats were able to thwart the Republican move to defund Planned Parenthood and effort to impose additional restrictions on Iraqi and Syrian refugees.
* The spending measure requires vigorous security checks as part of visa-waiver program, used by millions of visitors to enter the USA.
* Enhanced sharing of information between private companies and government security agencies to prevent possible cyber attacks.
* The measure reauthorizes and expands the benefit to the emergency personnel who have been on the frontline of duty in the aftermath of 9/11 terrorist attacks and are now undergoing health problems related to their work related to September 11 events in New York. 
* An increased funding for National Institute of Health promoted by both parties.
* Waiver of visa-free travel for less than 90 days stay in the USA for citizens of applicable countries who have visited Iraq, Syria and few other nations in the last five years.
* Compensation package to each, or the estates, of 53 Americans held hostage for 444 days at the U.S. embassy in Teheran by the Revolutionary Guards since November 4, 1979. The compensation package will be valued at up to $4.4 million for each family, or its estate. The money for the compensation package will primarily come from an unexpected source: this year, Paris-based BNP Paribas was forced to pay a penalty of $9 billion for violating sanctions against Iran, Sudan and Cuba. As per the law that was part of the omnibus spending bill and signed by President Obama on December 18, 2015, each of the 53 hostages is entitled to up to $100,000 for each day of captivity. All but one hostage were freed from the embassy on January 20, 1981, with the only hostage who had illnesses freed earlier. Out of 53 hostages, 36 are still alive.
In addition to American diplomats and citizens who were held hostage, the compensation package will also cover victims of other state-sponsored terrorist attacks such as 1998 embassy bombings in East Africa.

(1) $680 billion Tax Package (10-year)
* The tax bill extends more than 50 expiring tax cuts, including making more than 20 permanent.
* Making permanent exemption to sales and local taxes permanent for residents of Texas and six other states.
* Delaying the so-called "Cadillac Tax" as recommended by Affordable Care Act on the tax-free corporate pension plans much cherished by the unions, an ally of Democrats.
* Delaying the Obama Care-dictated taxes on medical devices.
* The tax package split the House Democrats as 106 Democrats parted away ranks and voted against the measure, while only 77 Democratic lawmakers voted in favor of it. The tax package was passed by the House of Representative by 318-109 votes on December 17, 2015.
* The tax package extends tax credits permanently for:
(A) Electric vehicle buyers
(B) Makers of hard cider
(C) Timber investors
(D) Commuters
(E) Research expenses
(F) Teachers who buy supplies, books and others used in the classroom
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************************************ DEFENSE BILL ******************************
Senate Approves Defense Measure that President Obama Threatens to Veto
The U.S. Senate on October 7, 2015 passed a $612 billion defense bill for Fiscal 2016 by 70-27 votes. However, President Barack Obama said that he would veto this bipartisan defense bill because the way it was done. If Obama vetoes the defense bill, he will become only the fifth president in the last half-century. The bill, which includes a separate bucket of $38 billion for war fighting effort, sailed through the House last week by 269-151 votes.

Obama Vetoes the Defense Measure
President Barack Obama used his veto pen on October 22, 2015 against a $612 billion defense spending measure not so much for what it had included, but how it was passed.

Congress Sends a New Bipartisan Defense Measure
The U.S. Senate on November 10, 2015 passed a strong bipartisan defense bill by 91-3 votes. The measure, approved by the House of Representatives last week with a whopping margin of 370-58, doesn't include one of President Barack Obama's signature issues, shuttering the Guantanamo Bay detention center.

President Signs Defense Measure
President Barack Obama on November 24, 2015 signed the $607 billion defense bill with a grain of salt as it didn't include any plan to shutter the Guantanamo Bay prison.
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Air of Bipartisanship Blows in Congress as Boehner "Cleans out Barn"
As the outgoing House Speaker John Boehner promised to "clean out barn" prior to handing over the mantle to Paul Ryan, House of Representatives on October 28, 2015 made a stunning reversal in how it worked by approving a 144-page budget bill that would increase spending by $80 billion. The budget bill approved by 266-167 votes, including 79 Republicans who have joined ranks with 187 Democratic lawmakers, also puts aside debt-ceiling bickering to after a new administration takes over as it has raised the debt ceiling through March 15, 2017 instead of raising by a specific amount.

Congress Sends the Budget Measure to President
Congress in a bipartisan move sent the budget accord to president's desk on October 30, 2015. The measure includes raising the current debt ceiling of $18.1 trillion through March 15, 2017. Congress raised the borrowing limits 15 times since 2001, when the debt ceiling was $5.1 trillion.

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House, Senate Agree on Transportation Bill
House and Senate negotiators on December 1, 2015 reached at a 5-year, $305 billion tentative deal that would end the annual partisan fight over funding the nation's highways and critical infrastructure. Over the past seven years, there was annual legislative and political topsy-turvy over how to fund the nation's highway in the wake of an outdated gasoline tax that had remained unchanged at 18.4 cent-a-gallon since 1993. Although the compromise fell short of what DOT Secretary Anthony Foxx had asked for--$400 billion over six years--it would give certainty to the planning and prioritizing of a multitude of road projects over the next half a decade. The bill calls for:
* Boosting the highway spending by 15 percent
* Increasing the transit spending by 18 percent
* Authorizing Amtrak funding $10 billion
* Allocating mass transit funding $12 billion
* Providing $1 billion to vehicle safety programs

Congress Sends the Bipartisan Transportation Funding Bill to Obama
In a rare bipartisan action, House and Senate on December 3, 2015 approved a 5-year, $305 billion  transportation bill that includes several pet projects, critical infrastructure and repair works. The House voted 359-65, while Senate's tally was 83-16 in favor of the 1300-page bill that would prevent last minute maneuvering to prevent Highway Trust Fund from sliding into a brink of disaster as witnessed over the past several years. The gasoline tax, main source of Highway Trust Fund, remained at 18.4 cents a gallon since 1993 while the expenses to keep up with the nation's roads had skyrocketed in recent years. To make up the shortfall, Congress played a budgetary gimmicks by shifting $70 billion from other accounts, including $53 billion from Federal Reserve's capital account to treasury's general account.

Obama Signs the Bipartisan Transportation Bill
President Barack Obama on December 4, 2015 signed the 5-year, $305 billion  transportation bill, and praised it as a measure that would put Americans on work and fund the necessary projects for the long-term upkeep of nation's highways.
Tagged with the transportation bill was a piece of measure to revive the charter Export-Import Bank that had expired on June 30, 2015, first time that had happened in the bank's 81-year history. With President Barack Obama signing the main transportation bill on December 4, 2015, the bank that guarantees loans taken by foreign buyers to purchase American goods was also revived to the dismay of Tea Party conservatives and victory of exporters and many bipartisan lawmakers, including pro-business Republicans. The U.S. Chamber of Commerce cheered the move as well as big conglomerates such as GE, Honeywell and others. Meanwhile Tea Party conservatives, including Sen. Ted Cruz, R-TX, one of the party's presidential frontrunners, and Rep. Jeb Hensarling, R-TX, Chairman of House Financial Services Committee, blasted the revival of the Export-Import Bank, calling it an example of "crony capitalism", corporate welfare and worst abuse of tax payers' money.
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******************************** Export-Import Bank ******************************
Measure to Revive Ex-Im Bank Begins at House
The House of Representatives on October 26, 2015 took concrete measures to revive the Export-Import Bank whose mandate had expired on June 30, 2015 after conservatives had taken a very hard-line approach against it, calling the bank a symbol of "crony capitalism". The measure was passed by the House on October 26, 2015 by 246-177 vote, paving the way for a second vote on October 27, 2015. In the October 26, 2015, House vote, 62 Republicans joined 184 Democrats in approving the measure.

Ex-Im Bank Gets Strong Bipartisan Support
In a stinging defeat for conservative lawmakers, 392 lawmakers on October 27, 2015 voted for a measure to revive Export-Import Bank. Only 37 lawmakers opposed the measure.

Export-Import Bank's Charter Revived
Tagged with the transportation bill was a piece of measure to revive the charter Export-Import Bank that had expired on June 30, 2015, first time that had happened in the bank's 81-year history. With President Barack Obama signing the main transportation bill on December 4, 2015, the bank that guarantees loans taken by foreign buyers to purchase American goods was also revived to the dismay of Tea Party conservatives and victory of exporters and many bipartisan lawmakers, including pro-business Republicans. The U.S. Chamber of Commerce cheered the move as well as big conglomerates such as GE, Honeywell and others. Meanwhile Tea Party conservatives, including Sen. Ted Cruz, R-TX, one of the party's presidential frontrunners, and Rep. Jeb Hensarling, R-TX, Chairman of House Financial Services Committee, blasted the revival of the Export-Import Bank, calling it an example of "crony capitalism", corporate welfare and worst abuse of tax payers' money.
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2017 FEDERAL BUDGET

Obama Administration to Seek More Money for Europe in Defense Budget
Previewing the Obama administration's spending plan that will be sent to Congress within days, U.S. Defense Secretary Ash Carter on February 2, 2016 has provided a preview on defense priorities and pressing needs to a full audience of Economic Club of Washington. Carter said that the fiscal 2017 spending plan would include a $582.7 billion defense budget that would call out Russia as a key security threat. The defense budget will:
* Increase the spending under the European Reassurance Initiative, announced in 2014 in an effort to challenge Russian assertiveness in Europe in general and former Soviet Republics in particular, to $3.4 billion in fiscal 2017 compared to current level of $789 million for fiscal 2016
* Bump up allocation to fighting against ISIL and related militant groups by roughly 50 percent to $7.5 billion

Obama Administration Calls for Spending more on Opioid Abuse
Addressing head on the looming crisis of opioid and prescription drug abuse that had especially struck the core of many rural, white towns, Obama administration on February 2, 2016 announced that it would ask $1.1 billion in additional funds from Congress in the Fiscal 2017 spending blueprint to fight against the epidemic. "Opioid abuse and overdoses have hurt families across the nation", said Sylvia Mathews Burwell, the Health and Human Services Secretary, adding that "my home state of West Virginia has felt the cost almost more than any other". The news conference on February 2, 2016 was also attended by Michael Botticelli, Director of the White House Office of National Drug Control Policy.

Addressing Family Homelessness Key Priority in Obama Budget
Obama administration is targeting a key part of homelessness problem in the budget to be sent to Congress on February 9, 2016. In the proposed spending blueprint, President Barack Obama proposes spending $11 billion over the next decade to fight family homelessness. Out of $11 billion, $8.8 billion will be spent in housing vouchers and $2.2 billion will be spent in more short-term assistance.

President Obama Sends $4.1 trillion Spending Plan to Congress
President Barack Obama on February 9, 2016 sent Congress a record  $4.1 trillion spending blueprint that highlighted Democratic priorities in an election year and drew immediate scorn from Republican lawmakers and presidential candidates. President Obama called the budget "a road map to a future that embodies America's values and aspirations". Under Obama's eighth and final budget, the deficit will jump from $438 billion in fiscal 2015 (October 1, 2014 through September 30, 2015) to more than $500 billion in fiscal 2017 (October 1, 2016 through September 30, 2017), and over the coming decade it will accumulate to $6 trillion. The budget calls for:
* A new major tax on crude oil
* $1.8 billion in immediate cash infusion to fight against Zika virus
White House Budget Director Shaun Donovan asked Congress to give a close look at the spending plan.

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Congress Approves Defense Bill, Women a Step Closer to Draft
US women won a major milestone on June 14, 2016 as an outcome of the passage of $602 billion National Defense Authorization Act by 85-13 votes. Under the measure, women between 18 and 26 have to register in Selective Service come 2018. House has passed the defense bill last month, and now the competing bills will have to be reconciled as House's bill is $18 billion costlier.

Senate Approves Final Piece of Defense Legislation
After months of haggling and hurried urgencies, U.S. Senate passed by 92-7 vote the reconciled, $611 billion defense bill for Fiscal 2017 on December 8, 2016. The bill aims at
* Raising the military pay by 2.1 percent
* Blocking President Obama's move to shutter Guantanamo Bay
* Waiving a 7-year waiting period for a ranking officer to head the Defense Department, handing a major win to Trump by removing the roadblock for Gen. James Mattis
************************************** DEFENSE BILL ****************************

Congress Funds the Federal Government through December
In an annual ritual of running and funding the federal government in piecemeal manner, Congress passed a continuing resolution, or CR, on September 28, 2016 to fund the federal government through December 9, 2016. The House of Representatives voted 342-85 and the Senate voted 72-26 to fund the government through a contentious election cycle. Congress approved $1.1 billion to fight against ZIKA, almost $700 million less than what President Barack Obama had asked for. Meanwhile, Obama administration dipped into unspent Ebola fund to transfer money for fighting against ZIKA. The CR also included $500 million in emergency aid to help the flood victims and rebuilding efforts in Louisiana. Many Democrats opposed it because no money had been allocated for helping the people of Flint in the wake of lead contamination. The measure related to Flint water crisis is being taken separately.

Congress to Fund Federal Government through April 2017
Just before the December 9, 2016, deadline, Congress is back on feet to work out a funding formula that would keep federal agencies functioning through April 28, 2017, saving the contentious budget battle for another day and potentially creating a headache for the incoming Trump administration. Republicans in Congress on December 6, 2016 inserted a measure that would waive a 7-year wait-out period for retired Gen. James Mattis and pave the way to become Trump's Defense Secretary. The measure will also provide much-needed and long-delayed $170 million in assistance to the residents of Flint, victim of one of the nation's worst water quality crisis in recent history.

Stopgap Spending Bill Passed
Just hours before the deadline, Senate on December 9, 2016 voted 63-36 to pass a stopgap spending bill that would keep the government running through April 28, 2016.

House Passes Spending Bill
After extending the deadline for a week, House of Representatives on May 3, 2017 voted to fund the government through the end of this fiscal year (Sep 30, 2017). The vote 309-118 showed that Democratic negotiators had done well to extract concessions from Republican leadership in areas such as $2 billion in increase in funding of National Institute of Health. The $1.1 trillion spending bill was the first legislative funding initiative under Trump administration.

The Spending Bill Approved by Senate, Goes to Trump
The U.S. Senate passed the $1.1 trillion spending plan on May 4, 2017 by 79-18 votes. The measure now goes to president's desk for his signature.

2018 FEDERAL BUDGET

Trump's First Budget Aims to Shape Spending Footprint
Giving a broad picture of his administration's economic and spending priorities, President Donald Trump on March 16, 2017 sent a $1.1 billion spending measure to Congress. The fiscal 2018 (October 1, 2017-September 30, 2018) spending plan includes:
* $54 billion, or 10 percent, increase in defense spending (this is on the top of an additional $30 billion increase this fiscal year)
* $4.4 billion, or 5.9 percent, increase in veteran affairs
* $2.8 billion, or 6.8 percent, increase in Homeland Security, including $2.6 billion in the proposed border wall, a signature campaign promise by Trump
* 31.4 percent, $2.6 billion, cut in EPA
* 31 percent, or $17billion, to be chopped off the State Department's budget
* 21 percent, or $4.7 billion, cut in Agricultural

After Passing CRs, Government Nears Shutdowns
First it was December 8, 2017, now it is January 19, 2018--the deadline to craft a budget deal to avoid shutdown. However, the so-called DACA deal that progressive Senate Democrats are pushing to be part of any budget deal may be a "poison pill", and upend any possible agreement.

House Passes Stop-gap Bill
House of Representatives on January 18, 2018 passed a stop-gap funding bill in nearly a party-line vote (230-197) to fund the federal government through February 16, 2018.

Government Begins Shutting Down
Federal government began shutting down early January 20, 2018 as there was no deal arrived at the U.S. Senate between Republicans and Democrats.

Congress Ends Shutdown without any Measure to Help Dreamers
After three days of government shutdown (January 20-22, 2018) that impacted very few significantly as the first two days fell on the weekend, there was hectic negotiation to end the impasse. At the end, Democrats were left in an uncomfortable, no-win situation as their leadership acquiesced to Republicans and supported a measure to re-open the government even without any mention to dreamers that had angered the party's progressives and created an ideological fissure. The stopgap spending bill crafted by a bipartisan group of lawmakers will fund the government through February 8, 2018, and has been approved on January 22, 2018 by 81-18 votes by Senate followed by the House's 266-150 vote. The measure was subsequently sent to Donald Trump for his signature.

Congress Pass a Two-Year Budget, Trump Signs the Bill; No Solution in Sight for Dreamers
Congress on February 9, 2018 passed a two-year budget bill that would increase $300 billion over the next two years for domestic and defense programs. The price tag angered the Conservatives, including members of House Freedom Caucus led by Rep. Mark Meadow, R-North Carolina while the lack of resolution of immigration status for DACA recipients, or so-called Dreamers, had turned off the progressive members of the Democratic Party. The bill was passed by House in 240-186 vote while Senate voted to approve it by 71-28. President Trump signed the bill, thus opening the government after an hours-long shutdown.

FISCAL 2019 FEDERAL BUDGET

Trump Sends his Second Budget to Congress
President Donald Trump on February 12, 2018 sent his spending blueprint for Fiscal 2019 (October 1, 2018-September 30, 2019) to Congress that might already been obsolete as Congress had passed just three days ago a two-year spending plan that had touted an increase of $300 billion in spending over an already agreed-upon ceiling. The $4.4 trillion spending plan is a rough blueprint for Congress to follow as it goes about planning budgets of the individual agencies for the next fiscal year. Trump's $4.4 trillion budget has an estimated deficit of $984 billion despite deep cuts in various social programs including Medicare and food stamps. However, the relevance of the Trump's Fiscal 2019 budget is under doubt as soon as it has been released because of the discrepancy between the two-year federal budget--that has increased allocation for defense spending by $195 billion and  non-defense spending by $131 billion--that he has signed three days ago and his $4.4 trillion Fiscal 2019 spending blueprint that has allocated $540 billion in non-defense spending, $57 billion below the Congress-mandated cap. Trump's budget plan foresees an average annual economic growth rate of 3.1 percent over the next three years compared to Federal Reserve's 2.2 percent growth forecast over the same period.

Congress Passes Spending Bill
In sequel to passing budget bill in February 2018, Congress' next action was to pass a spending bill. On March 22, 2018, Congress passed a $1.3 trillion spending bill, creating an uproar and outrage from the Conservatives for the runaway price tag and failure to rein-in domestic programs. The measure also disheartened the progressives as it did not include their favorite political agenda of resolving the uncertain plight of so-called "Dreamers". The bill was passed by the House of Representatives by 256-167 votes while the Senate approved it by 65-32. The 2,232-page bill only provides $1.6 billion for Trump's signature issue, namely border wall, significantly smaller than his demand for $25 billion. Trump earlier in the day threatened to veto the bill, and said that a government shutdown would not be all that bad.

Trump Signs the $1.3 trillion Spending Bill
A day after threatening a veto, President Donald Trump climbed down from the edge of political brinkmanship, and signed the $1.3 trillion spending bill on March 23, 2018. The spending bill was  immediately being targeted to be vilified by the conservatives.

Trump Signs Spending Bill to Keep Government Open through December 7, 2018
President Donald Trump on September 28, 2018 signed a stopgap measure that would keep the legislative partisan fight at bay for two more months. The $854 billion measure will fund the federal government through December 7, 2018. The $854 billion measure includes:
* $675 billion Defense funding, including new F-35 Lightning fighters, Apache and Black Hawk helicopters, Navy battleships and 2.6 percent raise for military personnel
* Increased spending for Education, Labor and other agencies, including a 5 percent boost in NIH
The bill did not include any significant funding for Trump's signature project: border walls.

****************** LONGEST FEDERAL GOVERNMENT SHUTDOWN ***************
Federal Government Shuts down over Border Wall
As Democratic-controlled House of Representatives was adamant not to provide $5.7 billion funding to Donald Trump to fulfill his signature campaign promise by building a border wall along the Mexican border, there was no budget deal. As a result, the federal government began shutting down at midnight December 22, 2018.

Trump Addresses the Nation, Dems Rebut
As the federal government shutdown hit the 17th day, both Democrats and President Donald Trump on January 8, 2019 had dug in their positions with no resolution in side. Trump demanded that House fund $5.7 billion immediately to fund construction of wall with Mexico, while the Democrats had cast the wall politics as immoral and not central to border security. In a prime time address to the nation from the White house, using the galore and glamor of the seat of presidential power, President Donald Trump on January 8, 2019 called the situation in the southern border as having reached at "crisis" point and demanded $5.7 billion in funding from Congress as the condition to open the federal government. Rebutting the president, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer slammed Trump for raising "fear" and mean-spirited politics and holding 800,000 federal employees hostage for Trump's temper tantrum to build the wall.

Trump Visits Borders as Pressure Mounts to Reopen the Government
Two days after addressing the nation to cast a spotlight on the border "crisis" and demand $5.7 billion from Congress to build a border wall, President Donald Trump on January 10, 2019 visited a border checkpoint in McAllen and dramatized a haul of drugs seized by the CBP to drive home his point to justify building a border wall although the drugs displayed were seized at the official checkpoints, not unmanned areas of the border. Texas' two Senators Ted Cruz and John Cornyn were at hands to support President Trump. As President Donald Trump visited Rio Grande Valley and McAllen, pressure mounted on him to open the federal government as the federal employees were about to see their first paycheck to include $0.00. Meanwhile, the impact of federal government shutdown was being felt a whole array of businesses and more walks of life. Air Line Pilot Association President Joe DePete extended solidarity to Air Traffic Controllers, who had been working for the past 20 days without receiving pay, calling the shutdown having "needlessly" risked the "safety, security and efficiency of our national airspace system".

Shutdown Now Heading to 22nd Day; Congress Approves Back Pay for Furloughed Workers
The federal government shutdown that has begun at midnight December 22, 2018 will reach a milestone on January 12, 2019 when it steps into the 22nd day, surpassing the previous record of federal government shutdown in 1996 under Bill Clinton presidency. On January 11, 2019, federal workers found their pay slip to show $0.00, a tragic reflection of our capital's political gridlock. Meanwhile, House of Representatives on January 11, 2019 took up a measure passed a day earlier by the Senate under a procedure, called the "unanimous consent", and quickly approved by 411-7 votes to back pay 800,000 out of 2.1 million federal employees who had been either furloughed or working without a pay.

Tit-for-tat Tactic to Scuttle Pelosi's Foreign Trip
In response to House Speaker Nancy Pelosi's refusal to let President Donald Trump give the State of the Union address from the House floor, President Donald Trump on January 17, 2019 pulled out the rug at the last minute from the undisclosed visit by Nancy Pelosi and other Congressional leaders to the war zone in military plane. As the speaker and her entourage were boarding the buses, president sent a letter to deny boarding a military plane in government expense during the federal shutdown.

President Plans to give a Major Statement
White House said on January 18, 2019, the 28th day of the federal shutdown, that President Donald Trump would give a major statement on January 19, 2019 that would include proposals to re-open the federal agencies.

Trump's Major Statement Includes a Three-year Reprieve to DACA Recipient
President Donald Trump on January 19, 2019 offered Democrats a three-year reprieve for DACA recipients and waver from deportations for some migrants under Temporary Protected Status (TPS) from certain Latin American and African nations in exchange for $5.7 billion in funding to build wall in the southern borders with Mexico. Democrats called the offer a "non-starter".

Competing Plans Moving through Congress
Two competing plans are now moving through Senate in the aftermath of President Donald Trump's January 19, 2019, major statement to end the stalemate over the longest federal shutdown. The Republican plan will fund $5.7 billion for building wall in exchange for protecting about 700,000 DACA recipients and an unknown number of TPS migrants. The Democratic proposal will open the government immediately and fund through February 8, 2019 as the negotiation on border security will begin in earnest. The plans will be put to vote on January 24, 2019.

Trump Cancels SOTU Address
After House Speaker Nancy Pelosi rescinded invitation to President Donald Trump for the State of the Union address, White House was mulling over alternative venue. However, nothing could be as important as the House floor from the perspectives of history, tradition, and importance. As that sense of understanding dawned upon the White House, President Donald Trump on January 23, 2019 night postponed giving the SOTU address while the government shutdown continued.

Rival Plans Fail
Rival Democratic and Republican plans to end shutdown failed in the U.S. Senate on January 24, 2019 as expected.

Shutdown Ends as Negotiation Begins on Border Security
As the pressure mounted on President Donald Trump, lawmakers passed a measure on January 25, 2019 to end the 35-day federal shutdown, longest in the U.S. history, and President Donald Trump signed it at 8:23PM local time. About 800,000 federal workers will now head back to work, at least through February 15, 2019. Meanwhile, Congressional negotiation will commence to address President Trump's demand for $5.7 billion for wall funding. The Democrats are steadfast not to provide any money toward constructing a border wall, while Trump dug in, floating the possibility of national emergency declaration.


17-member Panel on Border Security Meets amid Significant Differences
A 17-member bipartisan Congressional panel formed to explore and find ways on border security before another government shutdown takes place on February 15, 2019 has met for the first time on January 30, 2019. Texas' Democratic lawmaker Henry Cuellar made it very clear that he still stood against erecting a border wall. The members of the panel include 7 Senators and 10 House of Representatives members. Seven Senators are:


1. Richard Shelby (R-Alabama)
2. Shelly Moore Capito (R-West Virginia)
3. John Hoeven (R-North Dakota)
4. Roy Blunt (R-Missouri)
5. Patrick Leahy (D-Vermont)
6. Dick Durbin (D-Illinois)
7. Jon Tester (D-Montana)


10 House members are:


1. Henry Cuellar (D-Texas)
2. Nita Lowey (D-New York)
3. Lucille Roybal-Allard (D-California)
4. David Price (D-North Carolina)
5. Barbara Lee (D-California)
6. Pete Aguillar (D-California)
7. Kay Granger (R-Texas)
8. Chuck Fleischman (R-Tennessee)
9. Tom Graves (R-Georgia)
10. Steven Palazzo (R-Missouri)

Congress Delivers Trump a Much Less Ambitious "Barrier" Package as a Budget Compromise
Congress on February 14, 2019 passed a bipartisan measure that would keep the government doors open through September 30, 2019, but allotted only a fraction of what President Donald Trump had asked for border wall. Congressional package provides $1.375 billion for border "barrier" only for 55 miles, much less than President's demand of $5.7 billion of walls for more than 200 miles of U.S.-Mexico border. President Donald Trump said that he would sign the measure, but declare a national emergency in the southern border to tap funding from the defense construction fund. The measure passed the Senate by 83-16 votes and House followed it up with 300-128 votes.

President Trump Declares National Emergency in the Southern Border
While signing the bipartisan budget measure, President Donald Trump on February 15, 2019 declared a national emergency in the southern border. The national emergency declaration will pave the way for the administration to divert money from other agencies. White House Chief of Staff Mike Mulvaney said during the day that the administration would tap an additional $6.6 billion from the defense construction project coffer, taking the total to $8 billion. Within hours of Trump's declaration, American Civil Liberties Union, or ACLU, filed a lawsuit challenging president's declaration of emergency. ACLU Executive Director Anthony Romero used President Trump's own admission at a Rose Garden conference, where he had declared the national emergency, to emphasize that the situation in the southern border didn't deserve application of national emergency. California Attorney-General Xavier Becerra said that he was mulling to file a multi-state lawsuit challenging the emergency declaration. A separate public advocacy group, Public Citizen, on February 14, 2019 filed a lawsuit on behalf of a south Texas nature preserve and three landowners who had been given notice that part of their properties were needed to construct the border wall.

Bipartisan Condemnation of Trump's National Emergency Declaration
A group of 58 former national security officials--including as recognizable names as Chuck Hagel, Madeleine Albright, Thomas Pickering, John Kerry and Susan Rice--issued a joint statement on February 25, 2019, condemning President Donald Trump's national security declaration at the southern border. The statement disputed Trump's claim as devoid of "factual basis" and clearly stated that no such situation existed in the southern borders to merit such declaration.

Infamous Migration Protection Protocol Challenged in Court
Trump administration's recent declaration of Migration Protection Protocol that forced the asylum seekers to stay in Mexico as their cases went through the formal administrative procedure in the U.S. had strained resources in Mexico and put migrant families in an unchartered territory.

House Votes against President Trump's Emergency Declaration 
In a clear rebuke, House of Representatives on February 26, 2019 passed a resolution sponsored by Rep. Joaquin Castro of San Antonio by 245-182 against President Donald Trump's February 15, 2019, declaration of national emergency at the southern border.

Trump Issues His First Veto
After House and Senate passed a bipartisan rebuke to president's declaration of national emergency at the southern borders that would help him shift money from other defense priorities to build his much vaunted border walls, President Donald Trump--surrounded by law enforcement personnel at the White House--on March 15, 2019 issued his first veto, calling the Congressional measure as "reckless" and "dangerous".

House Fails to Overturn Trump's Veto
House of Representatives on March 27, 2019 failed to overturn Trump's first veto as 248 votes--all Democrats and 14 Republicans voted for the House measure--didn't go as far as two-third threshold that the body needed to quash Trump's veto.
****************** LONGEST FEDERAL GOVERNMENT SHUTDOWN ***************

FISCAL 2020
Trump Sends Budget Blueprint to Congress, Seeks $8.6 billion for Border Wall
Trump administration on March 11, 2019 all but began another political battle with Democrat-led House by asking $8.6 billion in border wall funding in its $4.7 trillion budget blueprint for fiscal 2020 (October 1, 2019 to September 30, 2019). Office of Management and Budget (OMB) Acting Director Russell Vought, saying the state of economy as nothing but "miracle", unveiled the budget blueprint, titled "A Budget for a Better America: Promises Kept. Taxpayers First", that included a $750 billion in defense spending, including an ambitious Space Force creation, and aimed at trimming other domestic spending by 5 percent. The budget blueprint sent by president is a framework that Congress works with to come up with the final budget, but never accepts in totality. Therefore, there is no chance that this blueprint will ever become a law. Trump administration's 2020 budget proposal aims at balancing the budget in 15 years, a very unusual directional prediction over a span of a decade-and-a-half instead of a traditional decade of forward-looking projection. Trump administration's drastic non-defense cuts are so significant that over a decade the projected cut of $2.7 trillion is the maximum any administration has so far proposed. Trump budget blueprint also calls for $845 billion in reduced funding to Medicare over the coming decade, mostly by cutting on funding to hospitals and providers. Medicare now costs about $650 billion a year.

Pelosi Blasts Trump Budget Blueprint's axing of Medicare
Taking a dig at the Trump's Fiscal Budget blueprint, House Speaker Nancy Pelosi on March 12, 2019 blasted the budget, especially administration's plan to trim the Medicare funding by $845 billion over the next decade, saying the budget a reflection of a plan to make Medicare "wither in the vine" after "exploding the deficit with his GOP tax scam".

Trump, Congress Arrive at the Budget Deal
President Donald Trump and Congressional leaders on July 22, 2019 announced a sweeping budget deal for Fiscal 2020 (October 1, 2019 to September 30, 2020) that would
* Raise the spending limit by $320 billion for the next two years without proportionate cuts in spending, a requirement reached in 2011 between the then-Obama administration and Congressional Republicans
* Suspend the debt ceiling until after the 2020 Presidential Election
Under the deal, formulated by the Treasury Secretary Steven Mnuchin and Speaker Nancy Pelosi, the spending in Fiscal 2020 will run up to $1.37 trillion, up from an estimated $1.32 trillion this year and slightly more in Fiscal 2021.

House Passes the Compromise Spending Bill
House of Representatives on July 25, 2019 passed the so called Mnuchin-Pelosi Compromise budget measure for Fiscal 2020 by 284-149 votes, with many Republicans and few progressive Democrats voting against the measure for different reasons.

House Passes another Short-term CR
As the lawmakers were not able to compromise on appropriation bills with a collective price tag of close to $1.4 trillion, House on November 19, 2019 passed a continuing resolution by 231-192 votes for another month and keep the lights on through December 20, 2019. The bill now goes to Senate which is expected to approve it and President Donald Trump to sign it to avert a shutdown before Thanksgiving Holiday, just to kick the can to face an identical situation before Christmas. The appropriation bills are centered around the compromise made by Treasury Secretary Steve Mnuchin and Speaker Nancy Pelosi in July 2019. The key sticking point is Trump's demand for $8.6 billion to build a wall along the Mexico border.

Agreement on Spending Plan reached
Congressional leaders on December 12, 2019 reached an agreement on $1.4 trillion spending plan for Fiscal 2020 (October 1, 2019-September 30, 2020). The compromise was announced after a long meeting at the Capitol led by the House Appropriations Committee Chair Nita Lowley, D-N.Y., and Senate Appropriations Committee head, Richard Shelby, R-Alabama. Treasury Secretary Stephen Mnuchin joined the negotiation too. The compromise gives both parties something, but no one everything. For Donald Trump's border wall, appropriators allocated a budget of $1.375 billion, a fraction of $5 billion Trump had asked for. Last year too, Congress approved the same amount, but Trump had tapped other defense priorities and used them to fund his border wall construction. The new deal is the agency-by-agency filler as part of a two-year, $2.7 trillion spending plan that Trump administration and Democrats had reached in 2019 Summer.

Congress Finalizes on $1.4 Trillion Spending Package
Congressional negotiators had on December 16, 2019 given final touches on $1.4 trillion spending package that offered something to all. The massive package is all set to be approved by the House and Senate, and will avert a government shutdown on December 20, 2019. The package includes:
* A status quo on border wall funding, allocating $1.375 billion instead of $5 billion demanded by Trump
* A $208 million boost in EPA funding, a significant win for Democrats
* A $425 million in election security grant
* Pentagon budget increase by $22 billion (a big talking point of Republicans)
* An average of 3.1 percent pay raise for federal government workers
* A 12-week of paid parental leave of federal government's 2.1 million workers, marking the first revamp of 1993 Family and Medical Leave Act that, at present, allows 12 weeks of unpaid leave
* Record funding for education and other domestic programs
* $7.6 billion in 2020 decennial Census funding
* A gun violence research funding of $25 million

House Passes 2020 Spending Blueprint
House of Representatives on December 17, 2019 passed the Fiscal 2020 spending plan. Members voted on two pieces of the $1.4 trillion plan separately. Members voted 280-138 to approve the national security package, including the Pentagon funding, and the component involving the domestic agencies passed by 197-120. The legislation will add $50 billion in new spending, and $500 billion to the deficit over the next decade. The budget deficit for this year is projected to be over $1 trillion, and will add to a whopping national debt of $23 trillion.


$1.4 trillion Spending Bill Signed by President; Tobacco Purchase Age Raised
A compromise massive spending bill was signed by President Donald Trump on December 20, 2019. The measure includes a provision that increases the legal age to buy cigarettes, e-cigarettes and vaping products to 21, effective immediately. Before this, the national age limit for tobacco purchase was 18 although many states had bumped up their age restrictions to 21 in recent years.

U.S. Experiences Worst Annual Budget Deficit in Fiscal 2020 

The U.S. Treasury Department and Office of Management and Budget on October 16, 2020 issued a grim report on revenue and spending pictures for the just concluded fiscal year (Fiscal 2020: Oct 1, 2019 through Sep 30, 2020). According to a joint final report, the budget deficit for Fiscal 2020 hit $3.1 trillion, or 15.2% of the U.S. GDP, highest percentage since 1945 when U.S. was spending heavily to fund the World War II. The earlier record was $1.4 trillion in 2009 in the peak of Great Recession. For Fiscal 2020, the revenue was $3.42 trillion and spending surged $6.55 trillion.


FISCAL 2021

Trump Sends the Spending Blueprint Axing EPA and Other Domestic Priorities
President Donald Trump on February 10, 2020 sent Congress a $4.8 trillion spending plan for Fiscal 2021 that called for deeper cuts in Medicaid and Children's Health Insurance Program while spending $1 trillion on infrastructure projects for the next decade. Some of the salient features of the Trump administration's non-binding spending plan include:

* $36 billion in cuts over the next decade on areas in crop insurance, conservation and commodity programs
* $2.4 billion, or 26%, reduction in the EPA budget, including eliminating $66 million in Energy Star program
* 8.1% cut in Energy Department's budget, including 70% reduction at its clean energy division
* $30 million addition to FAA to strengthen the air safety, including the 737MAX inspection and recertification
* $900 million boost in education, especially in key areas of trade and skills
* 22% cut to State Department and U.S. Agency for International Development to $40 billion
* 10-year, $1 trillion investment in infrastructure projects
* 9% cut in HHS budget, including CDC budget
* $8.6 billion, or 15.2%, cut for HUD spending, including eliminating altogether 4-decade old Community Development Block Grant
* 12% increase in NASA budget

The Fiscal 2021 budget for the fiscal year that begins October 1, 2020 will not eliminate deficit in the next 10 years, and will only bridge the gap by 2035 if all the underlying assumptions remain the same including a 3% sustained annual growth rate. 

CR Passed by House to Fund Government Past Election

A bipartisan vote helped Speaker Nancy Pelosi to muster support for a measure to sail through House floor on September 22, 2020 after conceding ground on farm subsidies demanded by Trump administration and farm-state Democrats. However, the compromise legislation, aimed at funding the federal government at its current levels through December 11, 2020, has secured some of the cherished funding such as streamlining the steps to make it easier for single mothers to obtain food stamp and poor families to get subsidized, or free, meals for the kids who are attending schools virtually.

Trump Signs a Week Extension to Keep Government Functioning

President Donald Trump on December 11, 2020 signed a CR bill passed by Senate hours earlier and House on December 9, 2020, thus keeping the doors of government open for another seven days. The funding will last through midnight on December 18, 2020. 

Government Shutdown Averted for Two Days

A federal government shutdown has been averted on December 18, 2020 as a COVID-19 relief package has created a bipartisan rift and clouded the prospect of passing an omnibus spending package that’s needed to continue running the federal government, but better sense prevailed, with the House passing a two-day measure to fund the federal government by 320-60 votes and Senate unanimously approving the measure followed by President Donald Trump’s signature to make the measure official while at the same time lawmakers were in uninterrupted session on formulating an emergency relief measure.

A 24-hour Extension Approved as Negotiation over COVID-19 Relief Measure Continues

House and Senate on December 20, 2020 have passed an emergency 24-hour extension of the deadline for coming up with a federal spending plan for Fiscal Year 2021 as the $1.4 trillion federal spending plan is now being combined with a $900 billion COVID-19 relief package to pass both the measures as a jumbo bill. 

Congress Okays One of the Largest Spending Measures

Congressional leaders on December 21, 2020 unveiled a catchall spending package that included a $1.4 trillion annual spending plan and a $900 billion COVID relief package, making it one of the largest spending packages passed by Congress. Within hours, House voted to approve the 5,000-plus-page bill by 359-53 votes and Senate voted to approve it by 92-6. The annual spending component will fund the government through September 2021. The $1.4 trillion annual spending plan contains a provision to streamline FAFSA (Free Application for Federal Student Aid) to make it easier and more affordable to borrowers and expands the scope of Pell Grant. The annual spending plan funds the HBCU campuses with an investment of $1.34 billion through HBCU Capital Financing Program. The $2.3 trillion catchall package now awaits President Donald Trump’s signature.

The $900 billion COVID-19 relief component includes: (1) $300 per week supplemental unemployment benefit for 11 weeks (likely timeframe December 27, 2020 through March 14, 2021) ; (2) $600 one-time stimulus check to many Americans (It will phase out for people earning more than $75,000 per year in 2019 and stop at $99,000 altogether); (3) $20 billion for vaccine shipping and distribution; (4) $325 billion in business relief, including $275 billion in another round of Payment Protection Program funding; (5) Extending the moratorium of rental eviction for another month; (6) $25 billion in emergency rental help; (7) $82 billion funding to schools and colleges for operational safety and enhance Coronavirus mitigation strategy; (8) $10 billion in childcare assistance; (9) $7 billion to increase broadband coverage; (10) $4 billion to cover vaccination in other nations; (11) $27 billion infusion in the maintenance and upkeep of highways and other modes of transportation, including Amtrak; (12) $15 billion in aid to the airline industry that would help the airlines to bring back 30,000 furloughed workers, including 17,500 of American’s workers; (13) $13 billion for a major expansion in the nation’s food stamps program.

Trump Signs the Relief-Spending Package after Holding out for Days

After refusing to sign a $2.3 trillion package that included funding to avert rental eviction for millions of families, ensure continuation of unemployment benefits for millions of unemployed, critically needed support for small businesses and avoid a federal shutdown in the midst of a pandemic that had led to a series of bipartisan wraths, President Donald Trump eventually succumbed to political pressure by signing the package on December 27, 2020 as the denouement of the days-long drama. The combined package includes $900 billion COVID-19 relief package and $1.4 trillion to fund the federal government through September 30, 2021.

Largest Budget Deficit in the First Three Months of the Fiscal 2021

The Congressional Budget Office on January 13, 2021 issued a dire forecast of fiscal imbalance and a looming debt crisis as the non-partisan body estimated that the budget deficit for the first three months of Fiscal 2021 (October 1. 2020 through December 31, 2020) was a whopping $572.9 billion, a 60.7% increase from the comparable period in the Fiscal 2020. The outlay grew 18.3% to $1.38 trillion and receipt dropped 0.4% to $803.37 billion. The budget deficit for Fiscal 2020 was an all-time high of $3.1 trillion. What's more alarming not only to fiscal hawks, but also to general public, CBO has estimated that the budget deficit is running at $1.8 trillion for the current fiscal (Fiscal 2021) and will be $1 trillion-plus for each year through 2030. 

CBO Projects Rosy Economic Recovery, but Sluggish Job Market

There is a mixed bag of economic news on February 1, 2021 with the non-partisan Congressional Budget Office projecting a faster recovery in the second half of 2021 as the vaccination drive was gaining steam and after the worst economic contraction last year--the U.S. economy shrank 3.5% in 2020 based on the available data--as the Coronavirus pandemic forced business shutdowns, mandatory lockdowns, tens millions of people out of work and 10 million jobs off the payroll roster as of now. CBO's February 1, 2021, forecast now envisions a 4.6% economic growth in 2021 before returning to a more normal level of about 2% in 2023. However, the economic growth in the U.S. will not lift the job opportunities across the board as the total number of employed will reach, according to the CBO projection, the pre-pandemic level in 2024. However, a key metric, jobless rate, will hover 5.7% in 2021, 5% in 2022, 4.7% in 2023, and 4.1% between 2026 and 2031, a 4 basis point higher compared to 3.7% average jobless rate registered in 2019. In February 2020, the unemployment rate was 3.5%..

CBO Projects $2.3 trillion Deficit for Fiscal 2021

Congressional Budget Office on February 11, 2021 issued estimate of budget deficit for the current fiscal year. The projected budget deficit of $2.3 trillion is historically very high, although $900 billion less than the Fiscal 2020 budget deficit. The nonpartisan CBO's February 11, 2021, budget prognosis doesn't include the effect of President Joe Biden's $1.9 trillion Coronavirus aid package. After $4 trillion federal aid to cushion the nation from Coronavirus pandemic last year, the federal deficit is running at 10.3% of the GDP in the current fiscal year (October 1, 2020 to September 30, 2021). The federal deficit with respective to GDP will average 4.4% between 2022 and 2031. Meanwhile, the national debt will mount to 107% of the GDP by 2031.

Treasury Said Budget Deficit North of $1 trillion in the First Five Months of Fiscal 2021

U.S. Treasury Department on March 10, 2021 reported a record budget deficit for the first five months of the current fiscal year, pegging the October 1, 2020--February 28, 2021 cumulative budget shortfall to be $1.05 trillion, 68% larger than the deficit of $624.5 billion registered in the comparable period in the preceding fiscal year and far higher than the previous five-month record of $652 billion set in 2010 as the country had been going through another expensive bailout to emerge from the Great Recession of 2007-2008. 

U.S. Treasury: Projected Budget Deficit for Fiscal 2021 Stands $3.12 trillion

Biden administration on August 27, 2021 issued a slightly rosier estimate than its March 2021 estimate as it lowered the projected deficit by $555 billion to $3.12 trillion for Fiscal 2021. Still, this will be the second-largest budget deficit, only eclipsed by the Fiscal 2020 budget deficit of $3.13 trillion. Over the next decade, according to the U.S. Treasury Department, annual budget deficit will top $1 trillion every year. For Fiscal 2022, Treasury estimates the budget deficit to be $1.54 trillion, above the $1.15 trillion estimated by the non-partisan Congressional Budget Office.  

U.S. Budget Deficit Second Highest in Fiscal 2021

The Associated Press reported on October 22, 2021 that the U.S. budget deficit in the Fiscal 2021 (October 1, 2020-September 30, 2021) stood at $2.77 trillion, the second-highest figure only trailing the budget deficit of $3.13 trillion recorded in Fiscal 2020. Before the pandemic-induced recession, the largest fiscal deficit was recorded in 2009 at $1.4 trillion in the middle of the last recession triggered by the financial crisis in 2008.

The percentage of Fiscal 2021 budget deficit relative to the size of the nation’s economy stands at 12.4% compared to 15% recorded in 2020. The Fiscal 2020 budget deficit percentage was the highest since World War II-era figure of 29.6% recorded in 1943. 

FISCAL 2022

Biden Focuses on Domestic Priorities 

As President Joe Biden has wrapped up a $1.9 trillion COVID-19 relief package and is closing in on an expansive $2.3 trillion infrastructure package, his budget blueprint for the fiscal year that begins October 1, 2021 includes all the imprimatur of Democratic initiatives, with clear focus on education, healthcare and environment. The White House said on April 9, 2021 that it would ask Congress for an average of 16% increase on a range of domestic programs. It will also slow down the growth of defense spending, with the growth pegged at a mere of 2%. This is a role reversal from the Trump White House's priorities. The $1.5 trillion price tag of discretionary spending of defense and non-defense items is nearly a quarter of total federal spending. The formal budget blueprint will be sent to Congress later in the Spring. The White House Office of Management and Budget's acting director, Shalanda Young, wrote a letter to Congress to seize on a "unique opportunity" that would arise after the September 30, 2021, expiry of a set of spending constraints put in place by Congressional Republicans and the then-President Barack Obama to invest in America's future. Highlighting Biden's priority on investing in education, the White House proposes to boost the education funding by 41% to $102 billion, including doubling the funding for Title I program, designed for poverty-prone schools, and marking the largest ever increase in Title I funding since the program was created more than 55 years ago. The boost in Healthcare is targeted around 23%, including more than $8.7 billion for CDC. CDC will house a brand new research arm, Advanced Research Projects Agency for Health, focused on cutting-edge research in cancer, Alzheimer's and diabetes. The budget envisions $69 billion in federal money to address the public housing crisis, a 15% increase. The budget blueprint will also allocates $715 billion in defense budget, less than 3% to 5% increase that Republicans seek. 

Biden Sends $6 trillion Fiscal Package to Congress

President Joe Biden on May 28, 2021 has unveiled his $6 trillion budget proposal for the fiscal that begins on October 1, 2021. The budget package includes $2.3 trillion infrastructure package, $1.8 trillion families plan package and $1.5 trillion in annual spending for Fiscal 2022. White House Budget Director Shalanda Young, talking about the budget, said that it would "grow the economy, create jobs" in a responsible way. 

Democratic Senators Unveil $3.5 trillion Budget Measure

Senate Democrats on August 9, 2021 unveiled a $3.5 trillion package as part of the budget resolution. The package envisions investment in education, blue collar projects, healthcare, infrastructure, child tax credits and others. 

More Expansive Infrastructure Package Passes a Key Hurdle

Speaker Nancy Pelosi showed her political dexterity by rallying moderates and liberals behind an expansive package that would define the bold Biden agenda by investing in the so called “human infrastructure”. $3.5 trillion package on August 24, 2021 passed a key vote by 220-212 margin. Moderates rallied behind the more expansive package after getting an assurance from Speaker Pelosi that $1 trillion physical infrastructure package passed by Senate would be introduced to House by no later than September 27, 2021.

Senate Parliamentarian Bars Immigration Measures from the $3.5 trillion Package

Senate Parliamentarian Elizabeth MacDonough on September 19, 2021 prohibited Democratic lawmakers from including the Citizenship path in the $3.5 trillion reconciliation bill. Senate parliamentarian's September 19, 2021, decision dealt a severe blow to Democratic hope for opening up the citizenship pathways for Dreamers, TPS holders,  essential workers, and farm workers. 

************** STOPGAP SPENDING BILL TO AVERT FEDERAL SHUTDOWN

Stopgap Spending Bill Passed by House, Fate Uncertain in Senate

A stopgap spending bill that will keep the doors of federal government open through December 3, 2021, suspend debt limit until the end of 2022, fund the rebuilding efforts in regions battered by natural disasters such as Hurricane Ida-induced destruction in Louisiana and provide money to help Afghan evacuees settle in has been passed by the House of Representatives on September 21, 2021 by 220-211 votes along the party line. The current fiscal year ends on September 30, 2021, and it's quite uncertain that Senate Democratic Leader Chuck Schumer will be able to get much traction before that. Minority Leader Mitch McConnell pushed the ball to Democrats' court, saying it's their responsibility to garner 60 votes. The stopgap bill includes $28.6 billion in disaster relief and $6.3 billion to help Afghan evacuees. 

Senate Republicans Block the Federal Shutdown Avoidance and Debt Ceiling Suspension Bill

Senate Republicans on September 27, 2021 blocked a bill that contained funding of federal agencies at the current levels through December 3, 2021 and suspension of debt ceiling aimed at helping the nation avoid defaulting on its debt for the first time ever. The party-line 48-50 vote fell far short of 60 needed to pass the procedural hurdle. Majority Leader Chuck Schumer voted no to retain his ability to bring the bill again for vote. U.S. will likely to default on its gargantuan debt sometimes in October 2021 if debt ceiling is not removed in the coming days. 

Senate Republicans Block the Federal Government Shutdown Avoidance + Debt Ceiling Suspension Bill

Senate GOP members on September 28, 2021 blocked, for the second time, a House-passed bill that would fund the federal agencies through December 3, 2021 and suspend the debt ceiling. Now that it has been tried, Democrats may just pass a bill to fund the federal government by stripping out the debt provision. 

Biden Signs the Measure to Fund Federal Government through December

An 11th-hour drive to fund the federal government on September 30, 2021 averted a shutdown as Democrats dropped the suspension of debt ceiling measure from the federal agency funding legislation. Senate voted 65-35, followed by a 254-175 votes by the House of Representatives. President Joe Biden signed the legislation just few hours before the deadline. The bill includes $28.6 billion to help communities affected by natural disasters, including $10 billion to cover damages from crop losses, and an additional $6.3 billion to help Afghan evacuees settle in America. As the federal agencies are now funded through December 3, 2021, Democrats are now turning their attention on raising the debt ceiling, which now stands at $28.4 trillion, failing which by October 18, 2021, Treasury Secretary Janet Yellen has warned, will trigger the first default on its debt by the U.S. 

Another Shutdown Averted, Although through February 2022

Better sense prevailed among majority of GOP Senators as they forcefully criticized a group of their Republican colleagues' push to force a federal government shutdown over Biden administration's vaccination mandate for private employers. Eventually, Sens. Roger Marshall, Mike Lee, Ted Cruz and few others favoring a shutdown had agreed to quickly move forward with a vote to keep the federal government running though February 18, 2022 in exchange for approval to submit an amendment, Marshall-Lee Amendment, to defund the administration's vaccine mandate for a simple majority vote. It was more like a face-saving grace for Lee, Marshall, Cruz and their likes. The Marshall-Lee Amendment was defeated by 50-48 votes on December 2, 2021. The government funding bill then sailed through the Senate in a 69-28 vote. Earlier, House had voted for the federal agency funding bill by 221-212 margin. 

Biden Signs the Stopgap Bill

President Joe Biden on December 3, 2021 signed the shutdown-avoiding, a compromise legislation to fund the federal agencies through February 2022.

Omnibus Spending Bill Passed by the House

After getting another extension in February 2022, it's time for Congress to finish the job of passing an omnibus spending package to fund the government priorities for the rest of the Fiscal 2022. The $1.5 trillion Omnibus package includes $13.6 billion for aid to Ukraine and alleviating the crisis stemming from Russia's invasion of Ukraine. Half of the money is to fund the arming of Ukraine and to cover the U.S. troops deployment in the eastern flank of NATO. The remainder is to fund the efforts to mitigate the humanitarian crisis spawned by Russian invasion of Ukraine. President Joe Biden initially asked $30 billion related to COVID-19 fight, but later whittled down the ask to $22.5 billion, and finally settled on $15.6 billion under a unified GOP opposition. However, Speaker Nancy Pelosi failed to include $15.6 billion in the budget resolution under a stiff Democratic resistance as GOP demanded that the money should come from the savings from state aids and Democrats were equally adamant on not touching any of the state aid packages. In a midterm election year like 2022, both Democrats and Republicans can take victory laps as Democrats are able to preserve many of their treasured domestic initiatives while Republicans can tout the boost in defense spending. 

Senate Passes the Omnibus Spending Bill

Senate on March 10, 2022 passed the omnibus spending bill by 68-31 votes. 

Biden Signs $1.5 trillion Spending Package

Surrounded by Congressional leaders, President Joe Biden on March 15, 2022 signed the $1.5 trillion omnibus spending package for Fiscal 2022 that included $13.6 billion for humanitarian and military aid for Ukraine. 

$10 billion COVID Package Finalized

After dropping the COVID-19 funding package from the $1.5 trillion omnibus bill that had been signed by President Joe Biden on March 15, 2022, Congressional leaders began to craft a slimmer package with a price tag of $10 billion. President Joe Biden first proposed $22.5 billion, but the package was subsequently reduced to $15.6 billion that failed to make in the omnibus bill. Now, it stands at $10 billion. The chief Republican negotiator, Sen. Mitt Romney, called the package with full offset, implying that the cost would be funded from unspent money from the previous COVID-19 relief packages.  As of April 4, 2022, the standalone bill looks favorable to the both aisles of the political divide in Congress. 

As of April 30, 2022, the $10 billion COVID package remained mired in Congress as GOP Senators continued to put road blocks against this important measure to force Biden administration to backtrack on its stand to lift Title 42. 

************** STOPGAP SPENDING BILL TO AVERT FEDERAL SHUTDOWN

*************************************BUILD BACK BETTER PACKAGE**********************

House Panel Passes $3.5 trillion Package in Procedural Vote

House Budget Committee in a virtual session on September 25, 2021 passed President Joe Biden's "Build Back Better" agenda-filled package by 20-17 votes. The $3.5 trillion, 2,465-page measure touches almost every facet of American life and is aimed to push many of the progressive agenda items with legislative plans, milestones and reliable funding. President Biden has met two dozens moderate and liberal members of his party to push through the ambitious package as well as $1.2 trillion physical infrastructure package. White House is working in tandem with Speaker Nancy Pelosi and Majority Leader Chuck Schumer to corral support for three equally important measures: (1) $1.2 trillion physical infrastructure package already passed by Senate, (2) $3.5 trillion human infrastructure package that's in alignment with President Biden's "Build Back Better" commitment, and (3) passing a stopgap funding to keep the federal government open through December 3, 2021 and suspend the debt ceiling aimed at preventing the country from defaulting on debt sometimes in October 2021. Speaker Nancy Pelosi wrote a letter to her Democratic colleagues on September 25, 2021, explaining how the session in the coming week would be "intense" given the two broad priorities (House had already passed the stopgap funding and debt suspension bill).

Build Back Better Package and Infrastructure Package in Limbo over Democratic In-fighting

President Joe Biden on October 1, 2021 has paid a visit to the Capitol Hill and met with House Democratic Caucus to hear out competing narratives from progressives and centrists as progressives are adamant that they will not vote on a $1.2 trillion physical infrastructure package that has been passed by Senate and Speaker Nancy Pelosi has set a September 30, 2021, timeline to push it out of the House until progress is being made on the more expansive $3.5 trillion package. President Biden, a former six-term Senator, told the House members that he was in no hurry, but also shared his perspective of what the more expansive package's price tag would look like at the end because of the dug-in stand taken by two moderate Democratic senators--Sens. Joe Manchin of West Virginia and Krystin Sinema of Arizona. Biden broached a price tag ranging from $1.8 trillion to north of $2 trillion. Moderates in the Democratic Party are concerned over $3.5 trillion price tag of the more expansive "Build Back Better" package. However, Biden and progressives have stated that it will cost "zero" as this once-in-a-generation transformative package will be funded by increasing the tax rates on businesses earning more than $5 million a year and individuals with annual earnings of $400,000 or more, or couples earning at least $450,000 per year. 

More Expansive Build Back Better Initiative's Price Tag Cut into Half

The originally crafted Build Back Better package had a price tag of $3.5 trillion, and it included many transformational items focused on social, economic, elderly care, education and climate issues long championed by the progressives. Because of the internecine Democratic infighting and opposition by the moderates in the party, its price tag has been reduced to $1.75 trillion. On November 2, 2021, Democrats have included a provision to lower the Medicare prescription drug price. On November 3, 2021, The Associated Press reported that Democrats had included provisions of paid family and medical leave, repealing SALT (state and local tax) deduction cap, currently $10,000, and changes to the immigration laws. 

Meanwhile, Toyota has launched a full-scale public relations campaign, including running an ad in The Wall Street Journal, against one provision in the $1.75 trillion package that subsidizes sales of electric vehicles manufactured and assembled by the unionized workers. The issue at the center is $4,500 in additional subsidy on the top of $7,500 subsidy for an EV if the consumer buys a vehicle manufactured and assembled by the unionized workers. Toyota does not have workers union at any of its assembly plants. 

Democrats about to Pass Build Back Better Act

Democrats on late November 18, 2021 were at their closest point to pass in the House one of the most expansive social bills, with about $2 trillion price tag, that, among another things, would expand Medicare to include hearing aid, reduce prices for some prescription drugs, provide free prekindergarten education and fund many of the climate change-related initiatives dear to the Liberals. Congressional Budget Office's report that the measure, Build Back Better Act, will add $367 billion to the deficit over the next decade has helped moderate Democratic members coalesce around the bill as it will be evened out by additional revenue stemming from IRS' increasing enforcement activities to go after the tax scofflaws, netting an estimated $400 billion. 

House Passes $1.7 trillion Expansive Bill

House of Representative on November 19, 2021 passed the Build Back Better Act by 220-213 vote, with one Democrat and all Republicans opposing the measure. Passing the bill is a landmark achievement for Speaker Nancy Pelosi as many of its provisions have been championed by her over last several decades, only to be thwarted by conservatives. Now, the $1.7 trillion bill goes to Senate, where it's sure to go through changes. House will then pass the amended bill, most likely before the end of the year. This social- and climate-focused bill along with the $1.2 trillion infrastructure bill that President Joe Biden has signed this week (November 15, 2021) will be a late boost for a sagging Democratic Party's poll prospect in 2022 midterm election amidst Biden's low approval rating. Joe Biden's legacy depends on delivering these two pieces of legislation. 

*** $1.2 trillion Infrastructure Investment and Jobs Act (IIJA)/Bipartisan Infrastructure Law (BIL)

$1.2 trillion Infrastructure Package Includes Affordable Internet Access for Underprivileged Communities

President Joe Biden signed the $1.2 trillion infrastructure bill, formally known as Infrastructure Investment and Jobs Act (IIJA), or Bipartisan Infrastructure Law (BIL), on November 15, 2021. This package is a  rechristened version of the New Deal that President Biden wants to leverage to transform the Middle Class America through massive infrastructure investment and bridge the gap in internet accessibility through Affordable Connectivity Program that offers subsidized internet services by offering $30 a month for qualifying families in most places and $75 a month on tribal lands. The ACP funding will expire in April 2024, according to a February 6, 2024, report by The Dallas Morning News. President Joe Biden and many Democratic governors, including Governor Roy Cooper of North Carolina, a state with one of the highest proportion of qualified families who have enrolled in the ACP, are urging the Congress to extend the program. 

*** $1.2 trillion Infrastructure Investment and Jobs Act (IIJA)/Bipartisan Infrastructure Law (BIL)

Biden Touts Prescription Drug Costs Savings in the Build Back Better Package

Trying to sell the expansive social engineering package to the American people, President Joe Biden on December 6, 2021 touted the potential prescription drug cost savings that would let Medicare to negotiate with Pharmaceutical companies to lower the drug prices. However, the pocketbook benefits will not be felt by voters before the 2022 midterm election as the provision will kick in effective 2025 and will include only a select set of 10 prescription drugs, as well as insulin products. The list will expand to 100 in six years and add 20 per year going forward. 

*************************************BUILD BACK BETTER PACKAGE**********************

****************** DEBT CEILING

Cruz Threatens to Filibuster Debt Ceiling Measure

That the stopgap federal government funding bill has now been passed as a stand-alone measure and signed by President Joe Biden hours before the end of the previous fiscal year is now shifting the entire Congressional fight on economy to the new pivot of debt ceiling. Treasury Secretary Janet Yellen during her September 28, 2021, Senate testimony has warned that, come October 18, 2021, U.S. will be lurking close to defaulting on payments on its national debt which stands at a gargantuan level of more than $28.4 trillion. Senator Ted Cruz on October 5, 2021 threatened to filibuster Democratic move to tag along 10 Republican votes to pass the measure to raise debt ceiling. Cruz did not want GOP to be any part of this move, and dared Democrats to raise the ceiling by themselves. However, Sen. Ted Cruz is oblivious that under Former President Donald Trump's watch, the national debt rose by $7.8 trillion, mainly contributed by pricy tax cuts and COVID-19 rescue package. Under Biden's watch, the national debt rose by another $677 billion. In August 2019, Congress suspended the debt limit that expired in July 2021, and new debt ceiling of $28.4 trillion had since kicked in. Since the national debt is also running at a level of $28.4 trillion, there is not any breathing space now to avert a fiscal cliff without raising or suspending the debt ceiling. Out of $28.4 trillion in national debt, $16,248.147 billion, or 60% of the total national debt, has been accrued by one Republican administration or the other, while the Democratic administrations raked up the remainder of 40% of national debt, or roughly $11,890.959 billion,  since the JFK administration.  

National Debt at the Start of the Term                          Debt Growth

JFK (D)   $290.035 billion                                          $18.180 billion

Lyndon Johnson (D)            $308.215 billion              $ 9.725 billion

Lyndon Johnson (D)            $317.940 billion              $41.472 billion

Richard Nixon (R)            $359.412 billion                 $ 90.656 billion

Richard Nixon (R)            $450.068 billion                 $ 25.277 billion

Gerald Ford (R)            $475.345 billion                 $ 178.562 billion

Jimmy Carter (D)            $653.907 billion                 $ 280.166 billion

Ronald Reagan (R)            $934.073 billion                 $ 745.240 billion

Ronald Reagan (R)            $1,679.313 billion                 $ 1,018.644 billion

George Bush (R)            $2,697.957 billion                 $ 1,469.043 billion

Bill Clinton (D)            $4,167.200 billion                 $ 1,146.797 billion

Bill Clinton (D)            $5,313.997 billion                 $ 402.074 billion

George W. Bush (R)            $5,716.071 billion                 $ 1,911.672 billion

George W. Bush (R)            $7,627.743 billion                 $ 3,004.262 billion

Barack Obama (D)            $10,632.005 billion                 $ 5,800.614 billion

Barack Obama (D)            $16,432.619 billion                 $ 3,514.686 billion

Donald Trump (R)            $19,947.305 billion                 $ 7,804.591 billion

Joe Biden (D)                  $27,751.896 billion                 $ 677.245 billion

Total National Debt (as of October 5, 2021): $28,429.141 billion

Nation’s First-ever Default on National Debt Averted, Only for Couple of Months Though

Democrats and Republicans in the U.S. Senate stepped back from the fiscal cliff on October 7, 2021 as Minority Leader Mitch McConnell had provided sorely needed wiggle room to his counterpart, Majority Leader Chuck Schumer. Despite objection by Sen. Ted Cruz, Sen. McConnell corralled 10 other GOP Senators to support the cloture vote by 61-38 that had ended any possibility of a filibuster. Later, in a partisan vote of 50-48, Democrats passed a measure that would raise the debt ceiling temporarily by another $480 billion. However, this statutory borrowing increase will last through December 3, 2021, implying a contentious battle looming in the next few weeks. The bill now goes to the House, which is in recess, but Speaker Nancy Pelosi notified the lawmakers that the House could be reconvened any time to pass the measure and send it to President Biden for his signature.

House Passes the Debt Ceiling Bill

House took up the Senate bill that would give the government an additional $480 billion borrowing limit to pay its obligations through December 3, 2021, and passed it by 219-206 vote on October 12, 2021. 

Congressional Leaders Find a Compromise to Pass a Debt Ceiling Bill only with Democratic Votes

It's the traditional Congressional backroom dealing and legislative dexterity that will help the nation, for now, to avert a disastrous debt default as Treasury Secretary Janet Yellen has issued warning about a looming default around December 15, 2021. On December 7, 2021, Majority Leader Chuck Schumer and Minority Leader Mitch McConnel had an agreement that would set the course for raising the debt ceiling along a tortuous, days-long legislative process. The debt ceiling component will be tucked in an unrelated Medicare bill that will prevent payment cuts to the providers. Once the Medicare-related broader bill is passed, Congress will vote on the debt ceiling component, and Senate requires only simple majority to pass the measure. However, Democrats will have to publicly state the figure of the debt ceiling increase which, most likely, will be heftier than $480 billion raised in October 2021. 

Senate Votes to Raise Debt Cap by $2.5 trillion

As the reality of the first default was lurking, Senate on December 14, 2021 voted 50-49, along the strict party line vote, to raise the debt limit by $2.5 trillion, kicking the can to post-2022 midterm election. Because of a December 7, 2021, deal reached by Majority Leader Chuck Schumer and Minority Leader Mitch McConnel, the debt limit measure did not face a 60-vote threshold. Now, it goes to the House, which is expected to pass the measure on December 14, 2021 late night and send it to President Joe Biden's desk. 

House Passes the Debt Limit Measure, Biden Signs 

House of Representatives voted 221-209 to pass the debt limit measure early December 15, 2021. President Joe Biden signed the $2.5 trillion debt limit raising measure on December 16, 2021.

Yellen Rings Warning Bell on Debt Limit

Treasury Secretary Janet Yellen sent letters to Congressional leaders on January 13, 2023, saying that the nation's $31.4 trillion debt limit would be breached, more likely, by January 19, 2023 and Treasury would then  carry out some "extraordinary measures" to help avert the unprecedented default on nation's debt until early June 2023. By June 2023, Congress either needs to raise the current debt ceiling of $31.4 trillion, or suspend the debt ceiling, to allow the U.S. to make its fiscal commitment fulfilled, according to the letter by Treasury Secretary Janet Yellen.

The big elephant now in the room is the House which is under GOP control. As part of the agreement between the conservatives and mainstream Republicans to secure Kevin McCarthy's speakership, GOP leaders in the House are planning to submit a "payment prioritization" plan, a controversial concept that has been talked about a lot during the past debt crisis situations in 2011 and 2013. The "payment prioritization" plan will chop off about 20%, or $1 trillion, of the federal government's spending, a significant slice has been already pledged by the government, thus hurting programs such as food stamp, Medicaid and other domestic programs while prioritizing payment for debt holders such as Chinese financial institutions.

CBO Issues a Clear Debt Default Timeline

Congressional Budget Office in its scheduled budget report to Congress on February 15, 2023 gave a tentative window when the U.S. faced the risk of defaulting on its debt until debt ceiling was raised by Congress. According to CBO, the window is between July and September 2023. As part of the report, CBO projected a budget deficit of $1.4 trillion for the current fiscal year and an average of $2 trillion next several years through 2032. 

McCarthy Attaches Conditions to Raising Nation's Debt Limit in a Speech at NY Stock Exchange

In a high-profile speech at the New York Stock Exchange attended by executives and traders, House Speaker Kevin McCarthy on April 17, 2023 vowed to pass a measure to raise the nation's debt limit, currently at $31 trillion, but with some unpalatable--mostly unacceptable to Democrats--conditions attached, including keeping the spending at 2022 level and capping the annual spending growth at 1%. He also said that House measure would include work provision as a criterion for families for receiving future federal aid. McCarthy, though, pledged that Social Security and Medicare would stay intact. The White House didn't waste any time to hit back McCarthy, calling out that a speech was not a plan. 

Federal spending is a matter of concern for Republicans, Democrats and Independents. To prevent a potential economic meltdown, the administrations of Trump and Biden took extraordinary measures at the height of Coronavirus pandemic to boost federal spending. In 2021, the federal spending shot up to $7.4 trillion before sliding down to $6.2 trillion in 2022, according to the Treasury Department. 

The U.S. Treasury is now using some extraordinary measures to pay the bill already accrued, but will run out of all toolkits in its toolbox in early summer. 

McCarthy Unveils Debt Ceiling Raise Bill

House Speaker Kevin McCarthy may be getting a unified Republican support for his vision of national debt increase bill, parts of which he has provided glimpse of during an April 17, 2023, speech at the New York Stock Exchange. On April 19, 2023, Speaker McCarthy has unveiled the 320-page "Limit, Save, Grow Act" that will

* Increase the debt ceiling by $1.5 trillion through next year, thus putting the issue in the heart of 2024 Presidential Election

* Rolling back the federal spending to 2022 level and subsequently capping non-defense annual growth to 1%

* Requiring the recipients of government aid to follow stricter work requirements

* Rolling back some of the White House priorities, including climate change

GOP Pushes Debt Ceiling Increase Measure through House along with Deep Cuts in Domestic Programs

In a doomed future, a piece of legislation that the House GOP barely managed to pass on April 26, 2023 is bound to go down in flame as the Democrat-led Senate will not take it up and President Joe Biden has threatened to veto it. The measure, passed 217-215, will increase the nation's debt limit in exchange for deep cuts in non-defense programs. 

That Speaker Kevin McCarthy could easily cave in to the demand of lawmakers who were not as passionate as others in their party ranks to cut domestic spending was in clear display as the speaker allowed a special carve-out of $38.6 billion for biofuel, carbon capture and ethanol to stay in the package. GOP lawmakers from the Midwest, including the entire House Republican delegation from Iowa, lobbied Speaker McCarthy to ensure continuous tax incentives for biofuel, carbon capture and ethanol industries. 

Yellen Warns about U.S. Default, Biden Invites Congressional Leaders

Hours after Treasury Secretary Janet Yellen wrote a letter to the House and Senate leaders, urging them to increase the the current $31.4 trillion legal debt limit as the U.S. faced default around June 1, 2023, President Joe Biden on May 1, 2023 invited top four Congressional leaders to the White House for a May 9, 2023, meeting. 

Yellen Predicts Dire Situation if Debt Limit Is not Raised

Appearing on the ABC's This Week, Treasury Secretary Janet Yellen on May 7, 2023 said that if Congress failed to raise current debt limit of $31.381 trillion, U.S. would exhaust all "extraordinary measures" to pay what had been committed, leading to an economic "calamity". Yellen also refused to say definitively whether the president would invoke U.S. Constitution's 14th Amendment. The Section 4 of the Constitution's 14th Amendment says that the "validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned". 

Oval Office Meeting Among President and Big Four of Congress "Productive", but Yields no Solution

It was a congenial meeting, even President Joe Biden went one step further, calling it a "productive", but in the end, there was no path emerged to avert the defaulting on our debt beginning June 1, 2023. However, after the Oval Office meeting on May 9, 2023 that President Joe Biden hosted for Speaker Kevin McCarthy, House Minority Leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and Senate Minority Leader Mitch McConnell, White House said that further talks would be held this week. 

Biden Optimistic as the Default Deadlines Pushed Back by Few Days

President Joe Biden, heading to Camp David for Memorial Day Weekend, on May 26, 2023 seemed optimistic of reaching a deal with Speaker Kevin McCarthy as Treasury Secretary Janet Yellen pushed the catastrophic debt default deadline by four days to June 5, 2023. 

Compromise Reached between McCarthy and Biden

As typical in any bipartisan compromise, no party gets 100%, but people of the country emerge primary beneficiaries. The bipartisan compromise on debt ceiling is no different. As a June 5, 2023, deadline looms large, White House and House of Representatives negotiating teams have been working overtime to reach a deal that will avert a catastrophic national debt default for the first time in the U.S. history. On late May 27, 2023, sides reached a compromise, and on May 28, 2023, President Joe Biden and Speaker Kevin McCarthy followed up with talks. As part of the compromise, the 2024 fiscal budget will remain flat and 2025 fiscal budget will receive an average of 1% boost, excluding military and veterans spendings. For adults ages 49 to 54 without dependents, there will be stricter work requirements for food stamp and other federal benefits. The compromise also gives some sort of victory to GOP by rescinding $30 billion in Coronavirus aid and investing $5 billion in developing next-generation COVID vaccines. 

Conservatives Up in the Arms against Compromise as the Deal Clears a Key Hurdle

House Freedom Caucus members are fuming over the debt ceiling deal that President Joe Biden and Speaker Kevin McCarthy had struck to avoid an economic meltdown stemming from a potential catastrophic default on national debt. On May 30, 2023, the deal passed, though barely, the House Rules Committee. Rep. Chip Roy, R-Austin, one of the most firebrand conservatives and a Freedom Caucus member, voted against the measure, but eventually the measure passed by 7-6 votes. Later addressing a press conference with other Freedom Caucus members on the steps of Capitol, Roy blasted the deal. 

On the other side of spectrum, White House is working with progressives to soothe their anger as many of them are livid that Biden has bent backward to get spending restraint and job requirements for food stamp included part of the deal when raising the national debt ceiling should be a unattached to any conditions.

The deal takes away the national debt ceiling from becoming an issue in the 2024 Presidential Election campaign. The key features of the measure are:

* SPENDING RESTRAINT: The growth of federal budget for 2024 will be flat and that for 2025 will be pegged at 1%

* FOOD ASSISTANCE: Work requirements extended from the current age group of ages below 49 to also include recipients ages 49 to 54, with the exemption to veterans, homeless and young people who have aged out of foster care

(Note: The work requirement for the age thresholds of 50 will kick in on September 1, 2023, 52 in October 2023, and 54 next year, forcing 750,000 people--including circa 44,000 Texans--to meet the work requirement to continue receiving the SNAP benefits. Under the current rule, able-bodied adults without children are required to work 80 hours a month to receive full "food stamp" benefit)

* MOUNTAIN VALLEY NATURAL GAS PIPELINE: In a hard-sell for Biden administration, the measure greenlights a key natural gas pipeline from West Virginia to Virginia, which has been bitterly fought by the environmentalists and progressives, and limits the scope of litigious challenge

* NEPA DILUTION: Reduces the government scrutiny of future energy projects and limits the timeline and opportunity for public comments, hallmark of the 53-year-old National Environmental Policy Act, while increasing the likelihood, in the words of Earthjustice President Abigail Dillen, of more litigation. 

* MILITARY FUNDING: An average increase of 3.3% in military spending is sure to rankle defense hawks such as Sen. Linsey Graham

* IRS FUNDING: Slashes IRS funding by $21.4 billion over the next decade out of $80 billion allocated in the budget approved by Congress before the Republican takeover in 2022 midterm election, but with an important exception that IRS will not have any hurdle for the time being to begin hiring some 87,000 IRS agents for robust enforcement

House Clears the Debt Limit Suspension Bill

U.S. House of Representatives on May 31, 2023 voted 314-117 to approve a compromise package struck by President Joe Biden and Speaker Kevin McCarthy that would suspend the debt limit through January 2025 in exchange for fiscal restraints as demanded by the Conservatives. 149 Republicans and 165 Democrats voted for the measure. 

Senate Approves Debt Ceiling Legislation

It was a good day for the U.S., it was a good day for global economy. On June 1, 2023, Senate passed the compromise bill agreed upon by President Joe Biden and Speaker Kevin McCarthy to avert an economy-shattering national debt default scenario. The bill was passed by 63 to 36 votes. 

Biden Signs the National Debt Ceiling Suspension Bill

In a low-key signing ceremony at the White House, President Joe Biden on June 3, 2023 signed the Congressional measure that would suspend the national debt ceiling through December 31, 2024. 

******* INTEREST ON DEBT

Debt Interest Doubles in Two Years, Treasury Says

U.S. Treasury reported on October 20, 2023 that the interest on the U.S. national debt this year mounted to $659 billion, significantly higher than last year's $476 billion last year and almost twice of 2021 total of $352 billion. Part of the increase in interest payment is caused by higher interest rates because of Federal Reserve's fight against inflation. If interest regime remains elevated, soon it may climb over $1 trillion. 

******* INTEREST ON DEBT

Biden-McCarthy Agreement to Shave $1.4 trillion from the Growth in National Debt

Thanks to the last spring's Biden-McCarthy Agreement, formally known as Fiscal Responsibility Act, the national debt will rise at a slower pace than without that agreement, according to a report issued on February 7, 2024 by the Congressional Budget Office. Under the CBO's latest estimate, the U.S. national debt will grow  $18.9 trillion by 2033 under the provisions of Biden-McCarthy Agreement instead of $20.3 trillion without that landmark agreement. The national debt now is $34.15 trillion. 

****************** DEBT CEILING

2023 FISCAL BUDGET

Biden Sends Congress $5.8 trillion Spending Blueprint

President Joe Biden on March 28, 2022 unveiled his 2023 budget blueprint in a White House conference at the State Dining Room. Biden was accompanied by the Office of Management and Budget Director Shalanda Young. The 156-page spending blueprint includes $813 billion in total defense spending, including $773 billion for Pentagon, and $915 billion to fund the domestic programs. The remainder will fund the entitlement programs such as Medicare, Medicaid and Social Security as well as servicing towards the interests on national debt. The spending plan is estimated to run into a deficit of $1.15 trillion. President Biden proposed to raise taxes on the super-rich by having a minimum of 20% tax on incomes over $100 million per year. That will raise $361 billion over a decade. The defense spending prioritizes "modernization over procurement", implying that Pentagon will buy less F-35 fighter jets from Lockheed Martin. Instead, the defense contractor will be required to undertake some of the warplane's system modernization. 

Political Jostling to Increase before the December 16, 2022, Deadline

After Congressional leaders have met with President Joe Biden on November 29, 2022, it's all but clear that political fighting will only increase as the current short-term funding is set to expire on December 16, 2022. Although there is a growing consensus that an omnibus bill is preferrable to a CR [continuing resolution], parties have different criteria for agreeing on an omnibus package. 

President Biden Signs a Weekly Stopgap Federal Funding Bill

President Joe Biden on December 16, 2022 signed a bill passed by Congress to fund the federal government for a week through December 23, 2022. The weeklong extension allows Congress to negotiate on a $1.7 trillion spending package to fund the federal government through September 30, 2023. The price tag does not include allocation for the entitlement programs such as Medicare and Social Security. Some House GOP members want another short-term extension as that will allow them more leeway and say on spending after they regain power of the House. However, Senate Minority Leader Mitch McConnell wants to go forward with the $1.7 trillion spending package in the current session as the package includes a Defense spending measure that's favorable to GOP's top priority. 

$1.7 trillion Spending Package Unveiled 

Congressional leaders on December 20, 2022 unveiled a $1.7 trillion spending package. The package includes $858 billion in defense spending and $772.5 for non-defense discretionary programs. 

Senate Approves $1.7 trillion Omnibus Funding Bill

U.S. Senate on December 22, 2022 voted 68-29 to pass an omnibus spending package that would fund the federal government through the end of current fiscal year (September 30, 2023). The 4,155-page, $1.7 billion package includes $772.5 billion in non-defense discretionary spending programs and $858 billion in defense spending. The non-defense discretionary programs' ($772.5 billion) price tag is $68 billion, or roughly 9%, more than what has been allocated last year. Some of the allocations are:

* Pell Grant: Up to an additional $500 increase

* First budget increase for National Labor Relations Board in a decade

* $800 million for DHS' emergency shelters and services for upcoming migrant surge

* FDA to get $3.5 billion, a quarter-billion increase

* Department of VA to get more than $134 billion 

* DOJ to get $39 billion, a $3.5 billion increase from Fiscal 2022

The defense spending allocation of $858 billion includes a 4.6% pay raise for service personnel, money to build 11 new Navy ships, restoring funding for 19 JSF and $139.7 billion in Research and Development, including new war fighting technologies.

18 GOP Senators joined 50 Democratic Senators to push the bill over the end zone that will provide $45 billion in military, economic and humanitarian aid to Ukraine and NATO allies to deal with the fallout of the Ukrainian crisis. In addition, the bill includes $27 billion in aid to address the recent natural disasters such as Hurricanes Ian and Fiona. The bill has also a non-related item such as reforming the Electoral Count Act that will lessen the powers and role of vice president and put more guardrails to bar changing the electoral outcome of the presidential election. Also, the bill includes a provision that will ban TikTok on government devices.

House Passes the Omnibus Bill in a Partisan Vote, Sends to President Biden

On December 23, 2022, House of Representatives passed the $1.7 trillion omnibus bill by 225-201 vote, averting a major shutdown. 

2024 FISCAL BUDGET

Biden to Increase Tax on Wealthy to Extend Medicare Solvency

In a preview of what his budget blueprint will look like, President Joe Biden has penned an Op Ed on March 7, 2023 in The New York Times, calling for an increase in Medicare tax rate from 3.8% to 5% for income over $400,000 per year, including salary and capital gains, to ensure a "rock-solid guarantee that Americans have counted on to be there when they retire". President Biden will send the Congress his fiscal blueprint on March 9, 2023, opening the first volley of the political move that highlights the administration's vision of wealthy people's little sacrifice facilitating significantly to extend Medicare's solvency by an additional quarter century. According to a February 2023 estimate by Tax Policy Center, Biden's move will increase revenue by $117 billion over the next decade. 

Biden Touts Middle-class Focus in His Budget

President Joe Biden on March 9, 2023 followed up the formal sending of his budget blueprint to Congress with a campaign-style rally at a Philadelphia union training center, Finishing Trades Institute, criticizing Congressional Republicans for opposing his middle-class-focused budget blueprint while having no plan on their own. The Philadelphia event had all the look and feel for Biden 2024 Re-election event. The president is in the final stages of announcing the launch of his reelection campaign. 

Under the budget blueprint that President Joe Biden has sent to Congress on March 9, 2023, the federal deficit will be reduced by $2.9 trillion over the next decade. On the revenue side, the blueprint calls for an additional $4.7 trillion in tax revenues and another $800 billion in new savings from the government programs. The president's spending plan touts new spending of $2.6 trillion, thus netting a reduction of $2.9 trillion in federal deficit over the next decade. 

SALIENT FEATURES OF BIDEN BUDGET BLUEPRINT

* A new minimum 25% tax rate on households worth $100 million or more

* Rollback of tax breaks enacted under President Donald Trump

* Closing the "carried interest" loophole that many Hedge Fund executives leverage their tax responsibility

* Pushing the solvency of the Medicare Trust Fund by a quarter century by raising the Medicare tax rate from the current 3.8% to 5% for annual income over $400,000, including salaries and capital gains

* A fully refundable child tax credit of $3,600 per child--implying that families who don't owe any federal tax are also entitled to receive this credit--to replace now expired $2,000 that has been provided as part of the COVID-19 relief aid package

* Removing a subsidy on Cryptocurrency transactions, thus generating $24 billion in revenue over 10 years

* Capping insulin at $35 per month, a major expansion from a key benefit now enjoyed by elderly population provided as part of a key legislation championed by Biden

**************************** FEDERAL GOVERNMENT SHUTDOWN ***********************

House, Senate Act on Divergent Paths; Shutdown Looks Real

As federal shutdown looks imminent as September 30, 2023 nears, hectic activities are taking place to run critical services such as Medicare. On September 27, 2023, Senate is working on its own bipartisan plan that will fund the federal government at current levels through mid-November 2023 and allocate $6 billion for Ukraine and an additional $6 billion for emergency disasters. House is, meanwhile, scrambling to come up on its own measure, but little progress is made due to intra-GOP squabble. 

Shutdown Likely as a Steep Spending Cut Bill Fails to Make Headway

A steep spending cut bill that calls for 30% spending cuts and strict border control provisions, but has absolutely no chance of garnering Senate Democratic support and poised to be vetoed by President Joe Biden even if Senate passes it in the House's version has failed to garner enough support from Republicans. On September 29, 2023, the bill failed by 198 to 232 votes, with 21 right-wing Republicans voting en bloc with Democrats. Speaker Kevin McCarthy looked frustrated as the possibility of a federal shutdown neared. 

Shutdown Averted for the Time Being as a Bipartisan Package Passed by Congress

When it looked for the federal government heading for a shutdown at the midnight of October 1, 2023, Democrats and Republicans coalesced around a bipartisan bill that would fund the federal government at the current level, albeit through November 17, 2023. The bipartisan bill, though, excludes aid for Ukraine. However, the bill includes an additional $16 billion for disaster response that the White House has asked for. House Speaker Kevin McCarthy, who was dealt an ignominious defeat a day earlier by his hard-right lawmakers, threw his support for this bill, inviting a likely hard-right conservatives-fueled ouster effort. The bill was passed by the House of Representatives by 335-91 votes and Senate by 88-9 votes. President Joe Biden signed the bipartisan bill on time to avert an almost unavoidable shutdown that would force TSA employees and active-duty military personnel to continue working without a paycheck. 

House Averts Shutdown, for Now

House's new speaker, Rep. Mike Johnson, has hardly anytime to settle, but he is facing the heat from the far-right creeds of his caucus, who can hardly agree on what day today is. He had to rely overwhelmingly on the Democrats to pass a bipartisan legislation to continue funding the federal government through early 2024. However, Speaker Johnson took an innovative approach by not pushing an omnibus bill through the chamber. His two-tranche approach splits up agency funding into two groups with their separate expiry dates. One category includes funding for the DHS and  Defense Department, among others, that will fund the departments through February 2, 2024. The other category includes funding for agriculture, transportation and others that will run out of funding on January 19, 2024. 

The bipartisan legislation on November 14, 2023 won support from 336 lawmakers, including 209 Democrats and 127 Republicans. Two Democrats and 93 Republicans opposed the legislation. The bill now goes to Senate. The Senate is expected to pass the bill and send it to President Joe Biden's desk for his signature to evade a government shutdown after November 17, 2023. 

Senate Passes House Bill to Avert Shutdown

The U.S. Senate on November 15, 2023 voted 87-11 to keep the government funded and functioning beyond November 17, 2023. The bill has "laddered" expiry deadlines: 20% of the government agencies will be funded through January 19, 2024 and the remaining 80% of the agencies will be funded through February 2, 2023. 

**************************** FEDERAL GOVERNMENT SHUTDOWN ***********************

Johnson-Schumer Compromise Reached

As the funding deadline of January 19, 2024 for the 20% of the federal agencies is nearing, the onus is on Speaker Mike Johnson and Majority Leader Chuck Schumer to find a compromise and questions linger whether the heads of the legislative bodies will be able to strike a deal. They didn't dissatisfy as on January 7, 2024, Majority Leader Chuck Schumer and Speaker Mike Johnson struck a $1.66 trillion deal: $886.3 billion in defense and $772.7 billion in domestic discretionary spending. President Joe Biden lauded the deal. However, Speaker Johnson will face a sure rebellion from the far-right members of his Caucus. Johnson's twin consolation is rescinding the administration's authority over the Coronavirus money of $6.1 billion left unspent and finding an additional $10 billion in cut to the total $80 billion allocated funding for enhancing IRS hiring and enforcement regime. The total cut to the IRS funding now stands $30 billion. 

CR Bill to be Passed to Avert Shutdown

As it needs more time to work on the Johnson-Schumer package, Congress needs to simultaneously work on averting an ominous shutdown as the funding deadline for the first group of federal agencies nears. Lawmakers released on January 14, 2024 a continuing resolution that would fund the federal agencies in two tranches. The agencies whose deadline is January 19, 2024 will be funded through March 1, 2024. The agencies under this first tranche include Departments of Agriculture, Veterans Affairs, Transportation, Energy and Housing and Urban Development. A second group of agencies such as Department of Defense will be funded through March 8, 2024 under the continuing resolution unveiled on January 14, 2024. 

Senate Advances the Temporary CR

U.S. Senate voted on January 17, 2024 to approve the continuing resolution, or CR, bill by a 68-13 margin. The measure's next stop is at the House of Representatives where it's facing strong opposition from the Freedom Caucus members. 

Temporary Funding Bill Goes to President's Desk

A day after voting to pass by 68-13 margin on a procedural vote,  the U.S. Senate passed the continuing resolution on January 18, 2024 by 77-18 votes. Hours later, the U.S. House of Representatives approved the measure by 314-108 votes, with Republican caucus vertically split between YES votes [107 votes] and NO votes [106 votes]. The bill now goes to President Joe Biden for his signature. 

House Passes $460 billion Budget

Days after a temporary extension of funding for federal government, Congress is working to fund the federal agencies for the rest of the fiscal year. The House of Representatives on March 6, 2024 passed the first tranche of funding for the remainder of the fiscal year. The vote for $460 billion-first tranche was 339-85. The Senate is expected to take the measure before the March 8, 2024, deadline. 

House members are now working for the second tranche of funding in the run-up to the March 22, 2024, deadline. This year's total discretionary funding is expected to be circa $1.66 trillion. 

Many Conservatives are not happy with the budget bill as, according to them, the spending cuts have not gone far. However, Speaker Mike Johnson pointed out 10% cut in EPA budget, 7% cut in ATF budget and 6% cut in FBI budget, respectively. For Democrats, one of the shiny areas is the budget funding for nutrition program for Women, Infants and Children. This year's WIC budget is pegged at $7 billion, $1 billion more than last year. 

Senate Votes to Keep Parts of Government Open

The U.S. Senate on March 8, 2024 voted to pass the $460 billion measure, the first of the two-tranche budget measure, by 75-22 margin to keep parts of the federal government up and running through the end of this fiscal year. The measure is now headed to President Joe Biden's desk. 

President Biden Signs $460 billion Budget Package

President Joe Biden on March 9, 2024 signed the $460 billion package of spending bills that would fund federal agencies, including Veterans Affairs, Justice, Agriculture, Interior and Transportation, among others, through the end this fiscal year. Both sides have their policy victories in this first tranche of the budget package. Democrats have been able to increase the budget allocation for nutrition program for Women, Infants and Children. The WIC funding is increased to $7 billion, an extra $1 billion. Democrats were able to beat back a conservative policy rider aimed at blocking the access to abortion pill mifepristone. 

On the Republican side, there were victories too. No oil from Strategic Petroleum Reserve can be sold to China. The Department of Justice is also prohibited from probing parents who exercise their freedom of speech at the local school board meetings. The access to firearms will be expanded, too, to people with mental health issues. 

However, the House Freedom Caucus lambasted the package as the non-discretionary spending remained flat compared to the last year and, thus, was tantamount to the high level of spending. Congress is now negotiating on a second tranche of the funding that will help six other federal agencies keep their doors open through the end of this fiscal year. The House Freedom Caucus also pointed out what's in the $460 billion budget package: some 6,600 pork-and-barrel projects, totaling circa $12.7 billion in taxpayers money. 

Congressional Leaders Unveil $1.2 trillion Second Tranche of Federal Budget

Congressional leaders on March 21, 2024 unveiled the second package with a price tag of $1.2 trillion that would fund Defense, Homeland Security and other departments through the rest of this fiscal year (September 30, 2024). Defense budget is priced at $886 billion, a 3% increase. Democrats warded off various Republican policy riders. However, Speaker Mike Johnson secured 24% increase in detention beds for undocumented immigrants and an embargo of U.S. aid to the UNRWA, a U.N. agency responsible for providing aid to Palestinians, through March 2025. 

House Passes the $1.2 trillion Package 

House of Representatives on March 22, 2024 pushed the $1.2 trillion second tranche of funding over the finish line. The vote was 286-134. 101 Republicans and 185 Democrats joined hands to vote for the measure, while only 22 Democrats joined 112 Republicans to vote against the measure. 

Senate Passes $1.2 trillion Second Tranche of Budget

Hours after the expiry of the deadline, the U.S. Senate on early March 23, 2024 passed a $1.2 trillion package of spending bills that would fund, among others, Defense, Homeland Security and State Departments for the rest of fiscal year. President Joe Biden signed the package shortly after the package sailed through the Senate by 74-24 votes.  

FISCAL 2025 FEDERAL BUDGET

Biden Sends Congress Fiscal 2025 Spending Blueprint

President Joe Biden on March 11, 2024 sent Congress the spending blueprint for Fiscal 2025. Under the blueprint, the spending tag for the fiscal period October 1, 2024 through September 30, 2025 is pegged at $7.3 trillion, including funding of the entitlement programs, with circa $1.8 trillion to borrow to plug the revenue gap. Many of the Trump-era tax cuts are expiring this year. If Biden is reelected and Democrats win both chambers of Congress, the blueprint will raise $4.9 trillion in additional revenues over the next decade and fund some of the key programs, including the pandemic-era enhanced child tax credit, with an additional infusion of $1.9 trillion in investment over the next decade. That leaves roughly $3 trillion to reduce the national debt over the next decade.  

After sending the Fiscal 2025 Spending Plan to Congress, President Joe Biden during the day traveled to New Hampshire, a key battleground state, to champion the popular issue of healthcare cost as he highlighted that his plan called for $2,000 caps in drug costs and $35 in universal cost for insulin supply. The plan includes up to $10,000 in tax credit and $10 billion in down payment for the first-generation homebuyers. 

White House Budget Director Shalanda Young stressed that President Biden had a plan while Congressional Republicans did have none. President Joe Biden previewed the pro-people's measures in his budget during the State of the Union address on March 7, 2024. He called for CMS to have the authority to start negotiating with drugmakers on some 500 prescription drugs that would reduce the costs by $200 billion over the next decade. 

CBO: National Debt to Reach 122% of the GDP by 2034

In an ominous prediction issued on June 18, 2024, the Congressional Budget Office estimated that the U.S. national debt would hit as high as $50.7 trillion, 122% of the GDP, compared to $48.3 trillion, or 116% of the GDP, estimated just four months earlier. 

Johnson Pulls back CR Measure Laced with Controversial Voter Registration Requirement

This is the time of the year when the recurring drama of an existing budget year (in this case, Fiscal 2024) is to expire and nothing is done on how to fund the federal government in the upcoming fiscal year (in this case, that begins October 1, 2024). This year is proving to be more problematic because of the presidential election that has pitted none other than Former President Donald Trump against Vice President Kamala Harris and the heat of the campaign rhetoric has made any compromise very difficult. On the top, Speaker Mike Johnson blended the continuing resolution, or CR, that will fund the federal government at the existing levels through March 28, 2025 with a controversial measure that required citizenship proof for the voter registration process. Democrats stridently oppose the citizenship requirement and, in case even passed by the House, the overall package has no chance of being approved by the U.S. Senate and President Biden is sure to veto the bill. 

Many Republican lawmakers in the House opposed the overall measure for a different reason. They insist that the Congress should go back to its old way of passing each of the 12 appropriation bills separately instead of pushing a catchall bill through the throats of lawmakers with little to no time to read thousands of pages. On September 11, 2024, Speaker Johnson, sensing an immediate demise of the bill, scrapped the plan to bring it to the House floor after scraping by a procedural vote a day earlier. Former President Donald Trump urged the House Republicans to sink the bill and, thereby, shut down the federal government if the bill doesn't include citizenship requirement for voter registration.