December 19, 2019

House Message on H.R. 1865 – The Further Consolidated Appropriations Act, 2020

NOTEWORTHY

Background: The federal government’s new fiscal year began October 1, but the House and Senate have not yet completed action on the 12 annual funding measures. The government is currently operating under a temporary continuing resolution that expires December 20. Without full-year appropriations or a temporary continuing resolution in place by the deadline, the government will shut down.

Floor Situation: The House message to H.R.1865 passed the House on December 17 by a vote of 297-120. The Senate will vote on the measure this week. A House message is privileged: the motion to proceed is not debatable, and 60 votes are required to end debate on the measure.

Executive Summary: The text of the House message to H.R.1865 is an eight-bill domestic and international-related minibus appropriations bill containing subcommittee appropriations for Labor-Health and Human Services-Education; Agriculture; Energy and Water; Interior and Environment; Legislative Branch; Military Construction-Veterans Affairs; State-Foreign Operations; and Transportation-Housing and Urban Development.

H.R.1865 also contain a number of Republican policy priorities including the extension of expiring health programs and tax provisions; the full repeal of job-killing Obamacare taxes; provisions that enhance retirement security; the reauthorization of key immigration verification and visa programs; cybersecurity improvements; and the renewal of multiple expiring charters and program authorizations. 

OVERVIEW OF THE ISSUE

The Bipartisan Budget Act of 2019 revised the regular (base) discretionary spending caps established by the Budget Control Act of 2011. For 2020, the revised caps are: $666.5 billion for defense and $621.5 billion for nondefense, an increase of $179 billion over the BCA post-sequester cap levels ($101 billion for defense and $78 billion for nondefense). BBA19 also established guidance for OCO-designated spending in 2020, $71.5 billion for defense and $8.0 billion for nondefense, and created a one-time $2.5 billion cap adjustment for census-designated spending. An agreement established prohibitions against “poison pills,” new policy riders, new CHIMPs, or other changes in policy or conventions that allow for higher spending levels unless agreed to on a bipartisan basis by the four leaders of the House and Senate and with the consent of the president.

Discretionary appropriations (Divisions A-H). H.R.1865 appropriates $520.4 billion in regular (base) discretionary budget authority for 2020. When combined with the discretionary budget authority appropriated by H.R.1158, the national security appropriations minibus, the two measures comply with the revised spending caps in BBA19.

2020 Appropriations Comply with BBA19 Revised Spending Caps

House Message on H.R. 1158 – The Consolidated Appropriations Act, 2020

 

In addition, H.R.1865 provides $19.5 billion in designated cap-adjusted spending for OCO ($8.6 billion), emergencies ($6.8 billion), program integrity efforts ($1.8 billion), and wildfire suppression ($2.3 billion) for a total of $539.9 billion in 2020 discretionary budget authority.

Additional items (Divisions I-Q). The remaining divisions of H.R.1865 contain a number of Republican policy priorities including the extension of expiring health programs and tax provisions, the full repeal of job-killing Obamacare taxes, provisions that enhance retirement security, the reauthorization of key immigration verification and visa programs, cybersecurity improvements, and the renewal of multiple expiring charters and program authorizations.

Taxes. Overall, H.R.1865 includes more than $426 billion in tax cuts for individuals and businesses. Significant among them are:

  1. Full repeal of the medical device tax, the health insurance tax, and the Cadillac tax;

  2. One-year extension of more than 30 expired or expiring tax provisions affecting individuals, businesses, and the energy industry;

  3. Disaster tax relief for families affected by natural disasters in 2018 and 2019;

  4. Renewal of economic and workforce development incentives such as the New Markets Tax Credit, the Work Opportunity Tax Credit, and a tax credit for employers who provide certain paid family leave programs; and

  5. Renewal of tax benefits for craft beverage manufacturers.

NOTABLE BILL PROVISIONS

Division A – Labor, Health and Human Services, Education

Division A would provide $184.9 billion in total discretionary funding for LHHS programs in 2020: $183 billion in regular (base) discretionary budget authority, plus $1.8 billion in program integrity-designated (anti-fraud) funds. Overall, this is an increase of $1.4 billion over 2019 enacted levels.

The bill maintains both the Hyde domestic abortion ban and the Weldon conscience protection amendment, which restrict funding for abortion. Additionally, the bill upholds the Dickey amendment. Lastly, the measure contains no new policy riders, in accordance with the 2019 budget agreement.

H.R. 1865

Source: CBO Status of Senate Appropriations for 2019, CBO analysis of H.R.1865

 

Department of Labor

  1. Department of Labor – $12.4 billion, an increase of $266 million.

  2. Veterans Employment and Training Service – $311 million, $11 million more than last year, including:

    1. An additional $6 million to support veterans in transition from the military to the civilian workforce, implementing reforms required by the 2019 National Defense Authorization Act, and supporting military spouse occupational barriers; and

    2. An additional $5 million to support homeless veterans in finding meaningful employment.

    3. Training and employment services programs – $3.6 billion. Of this, $2.8 billion is for grants to states to carry out workforce training, and $98 million is for a program to help ex-offenders. Apprenticeship grants receive $175 million.

    4. Job Corps – $1.7 billion, an increase of $25 million.

    5. Reemployment services and eligibility assessments – $175 million, a program that aims to reemploy people receiving unemployment insurance benefits quickly and reduce improper payments out of the Unemployment Insurance Trust Fund.

    6. Employee Benefits Security Administration – $181 million, $5.5 million less than in 2019.

    7. Pension Benefit and Guarantee Corporation – Continues to provide such sums as necessary to carry out the fund’s statutory authorities, guaranteeing benefit payments if qualified defined-benefit plans fail or close.

    8. Wage and Hour Division – $242 million to oversee the Fair Labor Standards Act and related laws, an increase of $13 million from last year.

    9. Occupational Safety and Health Administration – $581.8 million, an increase of $25 million.

    10. Mine Safety and Health Administration – $379.8 million, $6 million more than 2019, including up to $2 million for mine rescue work.

    11. Bureau of Labor Statistics – $587 million, including $27 million to relocate BLS headquarters to the Suitland Federal Center.

Department of Health and Human Services

  1. National Institutes of Health – $2.6 billion increase for the NIH; an $11.6 billion – 38.6% – increase since 2016. Increases funding targeted at research on Alzheimer’s disease and cancer, and provides $50 million for the president’s childhood cancer data initiative.

  2. Ending the HIV epidemic – $291 million to support the president’s HIV initiative and efforts to decrease the number of HIV infections by 90 within a decade.

  3. Obamacare – Includes oversight provisions and adds no new funding streams for the Affordable Care Act.

  4. Child Care and Development Block Grant $5.8 billion total discretionary budget authority, an increase of $550 million over last year.

  5. Head Start $10.6 billion total discretionary budget authority.

  6. Child abuse prevention and child welfare programs $90 million for child abuse prevention and treatment state grants; $56 million for community based child abuse prevention grants.

  7. CHIP ChIMP – Rescinds $9.3 billion in CHIP-related spending: $3.2 billion in unobligated budget authority from the Children’s Health Insurance Fund and $6.1 billion from the Child Enrollment Contingency Fund. Both rescissions are ChIMPs and comply with the provisions of the 2019 budget agreement.

Department of Education

  1. Department of Education – $72.8 billion, an increase of $1.3 billion over last year.

  2. Pell grants Sets the maximum grant at $6,345 for the 2020-21 school year, a $150 increase.

  3. Campus-based aid programs

    1. $865 million for Supplemental Educational Opportunity Grants, an increase of $25 million.

    2. $1.2 billion for Federal Work Study, an increase of $50 million, for grants to colleges and universities to design financial aid programs to best meet the needs of their students.

    3.  TRIO – $1.1 billion for programs that help low-income and first generation students get into and complete college, an increase of $30 million.

    4. Career and technical education state grants – $1.3 billion, level with 2019.

    5. HBCUs and Minority Serving Institutions – The bill includes an increase of $93 million, a 15% increase, for strengthening HBCUs and MSI programs.

    6. Elementary and secondary education – The agreement increases funding for programs that provide the most flexibility to local school districts to meet the educational needs of students and families. Highlights:

      1. $16.3 billion for Title I Grants to Local Educational Agencies, an increase of $450 million.

      2. $13.6 billion for IDEA/Special Education grants to states, an increase of $410 million, including preschool grants and grants for infants and families.

      3. $2.1 billion for Title II Supporting Effective Instruction State grants, an increase of $76 million.

      4. $1.2 billion for Title IV Student Support and Academic Enrichment Grants, a $40 million increase, which supports a wide range of activities including STEM education and school safety activities.

      5. $1.5 billion for Impact Aid, an increase of $40 million.

      6. $1.25 billion for 21st Century Community Learning Centers to support academic enrichment activities for students before school, after school, and during the summer, an increase of $28 million.

      7. $440 million for the Charter Schools Program, the same as the 2019 enacted level, including a $5 million increase for grants to replicate and expand high-quality charter school models and a $5 million increase for charter school facility grants.

      8. $105 million for Safe Schools National Activities, an increase of $10 million for evidence-based activities to improve school safety.

      9. $65 million in dedicated STEM education funding within the Education Innovation and Research program, a $5 million increase, including a specific prioritization of computer science education.

Related Agencies

  1. Social Security Administration – $12.7 billion, an increase of $100 million, for base administrative expenses to improve SSA’s service, including at field offices and 1-800 number.

  2. Institute of Museum and Library Services – $252 million, a $10 million increase.

  3. Corporation for Public Broadcasting – $465 million for fiscal year 2022, a $20 million increase, the first increase in 10 years. An additional $20 million is provided for the current year to continue the process of upgrading the public broadcasting interconnection system.

  4. Corporation for National and Community Service – $1.1 billion, an increase of $20 million, including:

    1. $428.5 million for AmeriCorps grants, an increase of $3.5 million; and

    2. $221 million for Senior Corps, an increase of $13 million, including funding to increase the Senior Companion and Foster Grandparent Program stipends.

Division B – Agriculture-FDA

Division B would provide $24 billion in total discretionary funding for agriculture-related programs in 2020: $23.4 billion in regular (base) discretionary budget authority plus $543 million in emergency-designated funds. When compared to 2019, agriculture spending in 2020 is $4.3 billion lower than in 2019, but this is attributable to a $5.3 billion nonrecurring emergency appropriation in 2019 (for natural disaster-related events).

H.R. 1865

Source: CBO Status of Senate Appropriations for 2019, CBO analysis of H.R.1865

Department of Agriculture

  1. Farm Service Agency – $1.1 billion for various farm and emergency loan programs.

  2. Rural development – $3.1 billion, including $635 million to support the build out of rural broadband.

  3. Food and Nutrition Programs – $67.9 billion in statutorily mandated funding for the Supplemental Nutrition Assistance Program. $6 billion in discretionary funding for the Women, Infants, and Children program.

Food and Drug Administration

  1. $3.2 billion in discretionary funding.

  2. $75 million to combat opioid abuse, as authorized by the 21st Century CURES Act. CURES funding does not count toward discretionary spending caps.

Policies

  1. Requires FDA to issue a request for information on potential next steps to address illnesses associated with use of e-cigarettes and vaping products.

  2. Requires USDA to finalize, within 180 days of enactment, a proposed rule outlining procedures for producers to transition dairy farms from nonorganic to organic management over a 12-month period.

  3. Blocks the use of funds that could be used to prohibit growing, selling, processing, or researching hemp, which was legalized in the 2018 farm law.

  4. Would require the Animal and Plant Health Inspection Service to restore an updated searchable database to its public website with animal welfare and horse protection inspection reports and enforcement records. The service said in February 2017 it would remove thousands of records from the database, including information on research labs, zoos, wholesale pet dealers, and breeders.

  5. The conference agreement does not include the following provisions, which were included in the House-passed bill:

    1. Language that would block USDA proposals to relocate two research agencies outside of the Washington, D.C., region.

    2. Language that would bar funding to finalize or implement a rule allowing for unlimited line speed at hog slaughterhouses.

Division C – Energy and Water

Division C would provide $48.3 billion in total discretionary funding for energy and water programs in 2020. When compared to 2019, total program spending is $429 million higher, the result of a $3.3 billion nonrecurring emergency appropriation in 2019 (for natural disaster-related events).

H.R. 1865

Source: CBO Status of Senate Appropriations for 2019, CBO analysis of H.R.1865

Nuclear Security

  1. $16.7 billion for Department of Energy nuclear security programs, $1.5 billion above the 2019 enacted level.

  2. $12.5 billion for weapons activities, more than a 10% increase above the 2019 enacted level.

  3. $1.7 billion for Naval reactors.

  4. $2.2 billion for defense nuclear nonproliferation.

  5. $1.5 billion for nuclear energy research, development, and demonstration activities.

Army Corps of Engineers

  1. $7.7 billion – $651.5 million above the 2019 enacted level.

  2. Fully funds the Water Resources Reform and Development Act of 2014 for appropriations from the Harbor Maintenance Trust Fund for the Corps of Engineers. Fully utilizes the annual revenues from the Inland Waterways Trust Fund to advance American competitiveness and export capabilities.

Strategic Petroleum Reserve

The Energy Department is directed to sell $450 million worth of crude oil from the Strategic Petroleum Reserve in 2020 to fund the Life Extension II project. Authorizes the sale of refined petroleum products from the SPR if there is a regional supply shortage of significant scope and duration that would likely lead to a “severe” price increase.

Division D – Interior and Environment

Division D would provide $38.2 billion in total discretionary funding for interior and environment programs in 2020: $36 billion in regular (base) discretionary budget authority, plus nearly $2.3 billion in wildfire suppression-designated funds, a new cap adjustment included in prior legislation. Overall, this is an increase of $1.1 billion over 2019 enacted levels.

H.R. 1865

Source: CBO Status of Senate Appropriations for 2019, CBO analysis of H.R.1865

 

  1. U.S. Department of the Interior – $13.867 billion overall, including full funding for the Payment in Lieu of Taxes program.

  2. Bureau of Land Management – $1.37 billion, an increase of $24 million above the 2019 enacted level.

  3. National Park Service – $3.37 billion, an increase of $154 million. This funding level includes important increases for construction backlog, maintenance, and new park units.

  4. U.S. Fish and Wildlife Service – $1.64 billion, which is $65 million more than last year. Important program increases include funding for the State and Tribal Wildlife Grants, the North American Wetlands Conservation Act, and combatting Asian carp in our nation’s waters. The bill also provides funds to maintain continued operation of fisheries and continues the prohibition on listing the greater sage-grouse as an endangered species.

  5. U.S. Geological Survey – $1.27 billion, an increase of $110 million.

  6. Office of Surface Mining – $257.5 million, $2 million more than last year, including a $115 million pilot program to help address reclamation and economic development in coal country.

  7. Indian Health Service – $6 billion, an increase of $243 million, including $84 million for the staffing new health care facilities and medical equipment.

  8. Bureau of Indian Affairs and Bureau of Indian Education – $3.2 billion, an increase of $142 million.

  9. Environmental Protection Agency – $9.1 billion for EPA, an increase of $208 million above the 2019 enacted level. Funding is focused on returning the agency to its core mission of environmental cleanup.

    1. Funding for State and Tribal Assistance Grants is increased by $115.3 million, which includes $20 million to help states address PFAS contamination and remediation.

    2. The Clean Water and Drinking Water State Revolving Funds are funded at $2.8 billion, and $44 million is provided for newly authorized grant programs included in the America’s Water Infrastructure Act.

    3. The Water Infrastructure Finance Act program is funded at $55 million, which will enable billions of dollars in loans to address additional water infrastructure challenges.

  10. U.S. Forest Service – $7.4 billion, including investments in funding for improved health and management of our nation’s forests, as well as increased funding to fight wildfire.

  11. Wildland Firefighting – $5.5 billion to fight wildland fire, which is $1.6 billion more than 2019. The bill provides the combined $1.394 billion in base wildland fire suppression funding, plus $2.25 billion in additional wildfire suppression funding from the wildfire cap adjustment.

  12. Smithsonian Institution – $1.04 billion, $3.8 million more than last year to finance the National Air and Space Museum renovation and to address deferred maintenance needs.

Division E – Legislative Branch

Division E would provide $5 billion in total discretionary funding for legislative branch programs in 2020. Overall, this is an increase of $203 million over 2019 enacted levels.

H.R. 1865

Source: CBO Status of Senate Appropriations for 2019, CBO analysis of H.R.1865

 

  1. The Senate – $969.4 million, $34.6 million more than 2019. The agreement boosts funding for the Senators’ Official Personnel and Office Expense Account by $20 million, to $449 million.

  2. Architect of the Capitol – $695.9 million, $37.8 million less than last year.

  3. Library of Congress – $725.4 million for the, a $29.2 million increase.

  4. Congressional Research Service – $120.5 million, $5.2 million less than 2019.

  5. U.S. Capitol Police – $464.3 million for the, an $8 million increase that will support an additional 57 officers and one staff member for the inspector general’s office. The agreement would increase, from $40,000 to $60,000, the maximum individual allowance under an educational assistance program.

  6. Government Accountability Office – $630 million, $40.3 million more than 2019.

  7. Congressional Budget Office – $54.9 million, a $4.2 million increase.

  8. Government Printing Office – $117 million, the same as last year.

  9. Joint Committee on Inaugural Ceremonies - $1.5 million.

Policies

Blocks members of Congress from receiving an automatic cost-of-living increase in fiscal 2020. Currently, rank-and-file members earn $174,000 per year, established in 2009. The annual salaries for the speaker of the House, as well as the Senate majority and minority leaders, are $223,500 and $193,400, respectively.

Increases the maximum staff member salary to $173,900 at the discretion of the employing entity. The current limits are $169,459 in senators’ offices and $168,411 in House member offices, with additional amounts allowed for some committee staff. No funding for the Office of Technology Assessment.

Authorizes inspector general offices at the Library of Congress, Architect of the Capitol, and Government Publishing Office to submit independent budget requests; seek advice from counsel reporting directly to them or another inspector general; and make arrests, seek warrants, and carry firearms.

Division F – Military Construction, Veterans Affairs

Division F would provide $110.4 billion in total discretionary funding for military construction and veterans affairs programs in 2020: $103.5 billion in regular (base) discretionary budget authority; $645 million in OCO-designated funds; $6.2 billion in emergency-designated spending. Overall, this is an increase of $10.7 billion over 2019 enacted levels.

H.R. 1865

Source: CBO Status of Senate Appropriations for 2019, CBO analysis of H.R.1865

 

Full funding for the VA Mission Act. Additional support for critical housing, infrastructure, and facilities for U.S. military forces and their families, as well as increased funding for veterans health care and benefits.

Military Construction

  1. $11.3 billion for 150 military construction projects, an increase of $983 million over last year.

  2. $1.4 billion for construction, operation and maintenance of military family housing. $141 million in funding for additional oversight and management of privatized housing contractors to address recent reports of mismanagement and neglect.

  3. Does not amend the president’s authority to repurpose military construction funding for emergency border wall construction. Does not backfill the $3.6 billion in military construction projects the president identified this year under his authority in law to repurpose unobligated military construction.

Department of Veterans Affairs

  1. $91.9 billion in discretionary funding for the VA, an increase of $5.4 billion from fiscal year 2019.

  2. $81.0 billion to support medical treatment and health care for approximately 9.3 million eligible enrolled patients in fiscal year 2020. The bill includes: $9.4 billion for mental health; $1.1 billion for telehealth services; $710 million for the Caregivers Program; $402 million for opioid misuse prevention and treatment; $800 million for medical and prosthetic research; $585 million for health care specifically for women veterans; and $300 million for rural health initiatives.

  3. $8.9 billion in fiscal year 2020 and $11.3 billion in fiscal year 2021 to implement the VA MISSION Act. MISSION Act funding is categorized as regular (base) funding and will count towards the discretionary spending caps.

  4. $153.6 million for implementation of the Blue Water Navy Vietnam Veterans Act, enacted in June 2019.

Division G – State, Foreign Operations

Division G would provide $54.7 billion in total discretionary funding for State-Foreign Operations programs in 2020: $46.7 billion in regular (base) discretionary budget authority, plus $8 billion in OCO-designated funds. Overall, this is an increase of $467 million over 2019 enacted levels.

H.R. 1865

Source: CBO Status of Senate Appropriations for 2019, CBO analysis of H.R.1865

Global Health Programs

  1. $9.1 billion for global health programs, with $3.2 billion for USAID health programs and $5.9 billion for State Department programs.

  2. $6.3 billion for global HIV/AIDS assistance.

Export and Investment Assistance

  1. $301 million for the new U.S. Development Finance Corporation.

Humanitarian and Disaster Assistance

  1. $3.4 billion for Migration and Refugee Assistance and $4.4 billion for international disaster assistance.

International Security Assistance 

Provides $9.1 billion for international security:

  1. $1.4 billion for international narcotics control and law enforcement;

  2. $896 million for nonproliferation, anti-terrorism, demining and related programs;

  3. $457.4 million for peacekeeping operations;

  4. $113 million for international military education and training programs;

  5. $6.2 billion for the Foreign Military Financing Program, with $3.3 billion in assistance for Israel; and

  6. $300 million for a new Countering Chinese Influence Fund to combat malign Chinese influence activities.

Pro-Life Provisions

  1. Maintains the Mexico City policy prohibiting U.S. assistance to foreign nongovernmental organizations that promote or perform abortions.

  2. Reverts to 2019 language and funding levels for family planning/reproductive health accounts.

  3. Maintains the “Helms Amendment” banning taxpayer dollars funding abortions through foreign aid.

  4. Prohibits funding of organizations the president determines to support coercive abortion or involuntary sterilization.

Division H – Transportation, Housing and Urban Development

Division H would provide $74.3 billion in total discretionary funding for transportation, housing, and urban development programs in 2020 (outlays, however, would total nearly $134 billion). Overall, this is nearly $2.6 billion less budget authority than 2019 enacted levels. While base funding increased nearly $3.2 billion, 2020 funding is affected by the loss of nearly $5.8 billion in nonrecurring emergency-designated spending that was included in 2019.

H.R. 1865

Source: CBO Status of Senate Appropriations for 2019, CBO analysis of H.R.1865

Department of Transportation

  1. National infrastructure investments – $1 billion for BUILD grants, which are for highway, bridge, trail, transit, and port projects. It continues to preclude DOT from using an applicant’s federal cost-share or nonfederal revenue as criteria.

  2. Federal Highway Administration – $46.3 billion for programs out of the Highway Trust Fund and general fund.

  3. Federal Aviation Administration – $17.6 billion.

    1. Aviation Safety: In response to the two Boeing crashes and grounding of the MAX fleet, the bill increases funding for aviation safety by $67 million above 2019, prioritizes the hiring specialized staff with expertise in human factors, and increases training and credentialing requirements for safety inspectors.

    2. Increased funding is also provided to improve the safety reporting database (ASIAS) and to promote U.S. safety standards with foreign civil aviation authorities.

    3. The agreement continues to require the FAA to respond to all investigations and audits resulting from the recent crashes, and to finalize the rulemaking on safety management systems for aircraft manufacturers.

    4. Federal Railroad Administration – $2.8 billion, including $2 billion for Amtrak.

    5. Federal Transit Administration – $13 billion out of Highway Trust Fund and general fund. $2 billion is for capital investment grants for constructing or improving fixed guideway rail or bus rapid transit systems.

    6. Maritime Administration – $1 billion, which includes $300 million for the third National Security Multi-Mission Vessel.

Department of Housing and Urban Development

  1. $23.9 billion for the Section 8 tenant-based voucher program that gives families rental assistance in the private rental market.

  2. $12.6 billion for Section 8 project-based rental assistance, which provides subsidized housing nonprofit and private landlords.

  3. $3.4 billion for Community Development Block Grant program.

  4. $1.4 billion for the Home Investment Partnerships program.  

Division I – Extensions

This division includes the extension of various Republican and bipartisan policy priorities. 

H.R. 1865

Source: CBO analysis of H.R.1865

 

  1. Immigration Extenders and H-2B visas – Reauthorizes the E-verify employment eligibility verification system and several visa programs: (1) the Conrad-30 program for foreign doctors, (2) the EB-5 investor visa regional center program, and (3) the R-1 religious workers program. The provisions also grant the secretary of homeland security discretion to add more H-2B visas to the 66,000 currently authorized to be issued annually. This provision has been included in recent years as a means to address extreme shortages in the domestic workforce.

  2. National Flood Insurance Program – Simple extension of the NFIP through September 30, 2020.

  3. Secure Rural Schools – Extends for two years the Secure Rural Schools program, which provides funding for rural forest counties that are struggling to fund essential services. Affects approximately 4,400 schools serving 9 million students in 41 states.

  4. US Export-Import Bank – Reauthorizes the Ex-Im Bank charter for 7 years.

  5. Terrorism Risk Insurance Program – Reauthorizes the program for seven years, through December 31, 2027, and adjusts the timing of mandatory recoupment commensurately. Establishes two new reporting requirements: (1) a Treasury department evaluation of the availability and affordability of terrorism risk insurance, including specifically for places of worship; and (2) a GAO report on the vulnerabilities and potential costs of cyber terrorism, adequacy of coverage under TRIA, and recommendations for future legislative changes to address evolving cyber terrorism risks.

  6. NASA enhanced use lease – Extends by two years enhanced use leasing authority for NASA centers to lease non-excess underutilized property to industry, state or local governments, and academic partners; and to use the proceeds for capital improvement projects.

  7. INKSNA – Ensures continued American access to the International Space Station by extending a waiver allowing U.S. to continue to obtain needed ISS-related goods and services from Russia, including allowing U.S. astronauts to fly on Russian launch vehicles. Assured access to the ISS is necessary as the NASA Commercial Crew program continues testing and development.

  8. BRAND USA – Extends funding for Brand USA, an organization that promotes international travel to the United States, with zero cost to U.S. taxpayers.

  9. DC Opportunity Scholarship Program – Reauthorizes the program for four years.

  10. Budgetary effects – Title X of this division prevents the budgetary effects of Divisions I through Q from being entered on the Senate and statutory pay-as-you-go scorecards. It also specifies that the budgetary effects of these divisions are not counted as discretionary spending and hence do not count toward the caps.

Division J – Foreign Policy

Includes a number of bipartisan foreign policy priorities. These provisions were negotiated by the chairman and ranking member of the House Foreign Affairs and Senate Foreign Relations Committees.

H.R. 1865

Source: CBO analysis of H.R.1865

 

  1. VERDAD Act – Strengthens the U.S response to Venezuela’s growing humanitarian crisis and its impact on neighboring countries.

  2. Eastern Mediterranean Security and Energy Partnership Act – Authorizes security assistance for Cyprus and Greece and would lift arms restrictions on Cyprus. 

  3. END Neglected Tropical Diseases Act – Expands efforts to treat neglected tropical diseases by facilitating research and increasing coordination with health interventions.

  4. Preventing Child Marriage in Displaced Populations Act – Directs the U.S. ambassador to the United Nations to push for a comprehensive strategy to address the prevalence of child marriage inside UN-administered refugee settlements. 

  5. Global Fragility Act – Authorizes dedicated funding for programs to stabilize conflict-affected areas, address global fragility, and lead efforts to prevent extremism and violent conflict.

  6. Rescuing Animals with Rewards Act – Modifies current rewards programs to authorize rewards for information to help prevent wildlife trafficking.

  7. Championing American Business Through Diplomacy Act – Establishes the promotion of U.S. commercial interests abroad as a principal duty of U.S. diplomatic missions, mandates new trade promotion training, and streamlines country-specific business climate reports.

  8. United States Commission on International Religious Freedom Extension Extends authorization for three years, requires commissioners to disclose certain foreign travel, mandates submission of a strategic plan every two years, and clarifies the commission is included under the Congressional Accountability Act.

  9. Cuba/China provision – Authorizes additional health benefits for U.S. government personnel and dependents with brain injuries and cognitive issues stemming from health incidents that occurred during their service in Cuba and China. 

  10. Saudi Fugitive Declassification Act – Requires the FBI, in coordination with the DNI, to declassify – while protecting intelligence sources and methods – any information about whether Saudi government officials have assisted Saudi nationals in evading U.S. criminal justice.

  11. Anti-Terrorism Clarification Act amendment – Amends the Anti-Terrorism Clarification Act of 2018 to provide American victims of international terrorism with additional legal grounds on which to pursue justice in U.S. courts against perpetrators or supporters of terrorist attacks. Ensures that ATCA does not prevent nongovernmental organizations from receiving assistance and would allow for the resumption of certain U.S. assistance programs.

  12. Somalia Debt Relief and Debt Restructuring – Extends authorization of appropriations for debt cancellation from 2010 to 2021. Allows available funds for debt restructuring if Somalia meets conditions as outlined under the IMF Heavily Indebted Poor Countries initiative.

Division K – National Law Enforcement Museum Commemorative Coin

Directs the Treasury department to mint and issue up to 50,000 $5 gold coins; 400,000 $1 silver coins; and 750,000 half-dollar clad coins that are emblematic of the National Law Enforcement Museum in the District of Columbia and of the service and sacrifice of law enforcement officers throughout the history of the United States.  Division K would have no direct spending or revenue effects in the enforceable budget periods.

Division L – DHS Cyber Hunt and Incident Response Teams

Authorizes the deployment of the National Cybersecurity and Communications Integration Center’s Cyber Hunt and Incident Response Teams to lead federal asset response activities and provide technical assistance in response to cyber-attacks. Division L would have no significant direct spending or revenue effects.

Division M – Bipartisan American Miners

Prevents insolvency of the 1974 UMWA Pension Plan and protects health benefits for miners affected by coal company bankruptcies that took place in 2018 and 2019. Without this provision, in the coming year, 92,000 coal miners’ pensions would be dramatically reduced and the health care benefits for 13,000 miners would be eliminated.

H.R. 1865

Source: CBO analysis of H.R.1865

Division N – Health and Human Services Extenders

This section includes a number of health-related program extenders that were included in prior continuing resolutions for 2020. It also includes permanent policy changes.

H.R. 1865

Source: CBO analysis of H.R.1865

Patient Centered Outcomes Research Institute Trust Fund

The PCORI trust fund is extended for 10 years (through 2029) with a 5% reduction in overall spending. Transfers from the Federal Hospital Insurance Trust Fund are eliminated. PCORI was created by Obamacare to examine the value of various medical treatments. Medicare reviews PCORI research in determining which treatments to cover for beneficiaries.

Medicaid

  1. Community Mental Health Services demonstration program For the eight states currently participating in the demonstration program, the authorization is extended until May 22, 2020.

  2. Medicaid funding for territories – Funding for U.S. territories is extended for two years, fiscal years 2020 and 2021. Funding will be available at a federal match rate of 76% for Puerto Rico and 83% for other territories. Puerto Rico’s Medicaid program is required to create a contract reform plan to address fraud and abuse in contracting; failure to comply will result in a reduction of its federal medical assistance percentage.

  3. Delay of Medicaid disproportionate share hospital reductions Medicaid DSH allotment reductions are delayed until May 22, 2020.

  4. Extension of Money Follows the Person rebalancing demonstration program – The demonstration program is extended until May 22, 2020. The program offers participating states an enhanced FMAP to care for and support people with chronic diseases and disabilities who are transitioning from institution-based care settings to community-based services. 

Human Services and Other Health Programs

  1. Temporary Assistance for Needy Families Funding for the TANF program, the Child Care Entitlement to States, and related programs, including the TANF Contingency Fund, are extended until May 22, 2020, with no policy changes.

Public Health

  1. Community Health Centers – Funding for community health centers, National Health Service Corps, Teaching Health Centers that operate graduate medical education programs, and Special Diabetes Programs are extended through May 22, 2020.

Revenue Provisions

  1. Repeal of the medical device excise tax – Effective January 2020, the 2.3% Obamacare tax on medical devices is repealed.

  2. Repeal of the health insurance tax – Effective January 2021, the annual fee on health insurers is repealed.

  3. Repeal of the Cadillac tax – Repeals the Cadillac tax on employer-sponsored health plans above specified thresholds. The tax would have imposed a 40% tax on these plans beginning in 2022.

Miscellaneous Provisions

  1. Minimum age of sale of tobacco products – Amends the Food, Drug, and Cosmetic Act to change the minimum age to purchase tobacco products from age 18 to 21.

  2. Sale of tobacco products to individuals under the age of 21 – Continues a requirement that states conduct inspections to ensure retailers do not sell tobacco products to people under the age of 21, and requires states to report to HHS on these inspections. Grant funding, $18,580,790, is made available for each fiscal year 2020 to 2024, for states to comply with these requirement changes.

  3. Biological Product Definition – Ensures that synthetic biosimilar  products, including copies of insulin that are synthetic, have a reference product and can come to market more quickly.

Division O – Setting Every Community Up for Retirement Enhancement

The SECURE Act of 2019 expands multiple employer plans to make it easier for small employers to sponsor a single retirement plan for their workers. It creates new rules for employers that offer lifetime income arrangements to workers in their retirement plans. It expands the portability of retirement plan assets, including annuities, allowing workers to keep their retirement savings when they change jobs. The bill encourages employees to increase their retirement savings annually through automatic increases in their 401(k) plans.

H.R. 1865

Source: CBO analysis of H.R.1865

Division P – Other Matters

This division includes a variety of unrelated but important member policy priorities. For more information, see page 8 of the Appropriations Committee summary. Nearly all of the provisions in this division have zero or negligible budgetary effects except Title XII, Groundfish Trawl Fishery, which would increase total outlays by $7 million over the 10-year budget window.

 

H.R. 1865

*Between ($500,000) and $500,000; Source: CBO analysis of H.R.1865

Division Q – Taxpayer Certainty and Disaster Tax Relief Act

Includes a one-year extension of more than 30 expired or expiring tax provisions affecting individuals, businesses, and the energy industry and disaster tax relief for families affected by natural disasters in 2018 and 2019. A section-by-section summary can be found here.

H.R. 1865

Source: CBO summary of Division Q based on JCT score for H.R.1865

ADMINISTRATION POSITION

At the time of publication, a Statement of Administration Policy was not available, but White House advisor Kellyanne Conway said the president is “poised to sign” the legislation.

COST

According to CBO analyses (here and here), H.R.1865 appropriates a total of $539.9 billion in discretionary budget authority for 2020:

  1. $520.4 billion in regular (base) spending: $35.9 billion for defense and $484.5 billion for nondefense;

  2. $8.6 billion in OCO-designated spending;

  3. $6.8 billion in emergency-designated spending;

  4.  $2.2 billion in wildfire-suppression funding that does not count against the discretionary spending caps; and 

  5. $1.8 billion in program integrity (anti-fraud) designated spending.

 In addition, divisions I through Q include provisions that would, on net, increase total direct spending (both on- and off-budget outlays) by $22.8 billion over 10 years and reduce total revenues by $421.8 billion. On net, divisions I through Q would increase the unified budget deficit by $444.6 billion over the 10-year window of 2020-2029. Please note, budget enforcement in the Senate considers on-budget effects of legislation only.

H.R. 1865