July 23, 2018

H.R. 6147 – Vehicle for Agriculture, Financial Services, Interior, and Transportation-HUD Appropriations

NOTEWORTHY

Background: The House passed H.R. 6147, their second “minibus” appropriations bill, on July 19 by a vote of 217-199. The House bill joined the Financial Services and General Government appropriations bill with the Interior-Environment appropriations bill. It is expected that the Senate will consider a package of four bills that combine the two the House included, along with the Agriculture and the Transportation-Housing and Urban Development appropriations bills. All four bills passed out of the Senate Appropriations Committee on unanimous 31-0 votes.

Floor Situation: The Senate will consider this bill the week of July 23.

Executive Summary: These bills provide discretionary budget authority for fiscal year 2019. Each bill conforms to its 302(b) allocation, and to the spending limits established in the Bipartisan Budget Act of 2018.

Legislative text of the Senate’s version of each bill is available here: Agriculture bill text and committee report; Financial Services bill text and report; Interior-Environment bill text and report; and Transportation-HUD bill text and report.

The Senate Appropriations Committee has highlights of each bill available on its website here: Agriculture, Financial Services, Interior-Environment, and Transportation-HUD.

CONSIDERATIONS ON THE BILL

A CBO score is not available for the entire minibus at this time, however the individual bill totals are included below. Because the House considered the Financial Services and Interior-Environment bills the week before expected Senate floor consideration, comparisons are to the House Appropriations Committee-reported spending levels and do not reflect any amendments adopted on the House floor.

The Agriculture bill contains $23.2 billion in regular, non-emergency discretionary budget authority, an increase of $225 million from fiscal year 2018 and $38 million less than the House level.
The Financial Services bill contains $23.7 billion in regular, non-emergency discretionary budget authority, a $16 million increase from fiscal year 2018 and an increase of $10 million from the House level.
The Interior-Environment bill contains $35.9 billion in regular, non-emergency discretionary budget authority, an increase of $601 million from both the fiscal year 2018 and House level.
The Transportation-HUD bill contains $71.4 billion in regular, non-emergency discretionary budget authority, an increase of $1.1 billion from fiscal year 2018 and $383 million less than the House level.

NOTABLE BILL PROVISIONS

Agriculture

Overall Funding

The bill includes $23.235 billion in discretionary budget authority, $38 million less than the House minibus and $6.1 billion more than the president’s budget request. It is $225 million above the level enacted in the fiscal year 2018 omnibus.
The Supplemental Nutrition Assistance Program is funded at $73.219 billion, a decrease of $794 million from the fiscal year 2018 enacted level.
The FDA receives $2.97 billion in discretionary funding, including $59 million for opioid prevention efforts.

Rural Development Programs

The bill includes almost $37 billion for new and existing rural development programs, including loan guarantees.
The Single Family Housing guaranteed loan program is funded at $24 billion. $1.331 billion is specifically provided for rental housing for low-income families and the elderly in rural communities.
$1 billion is included for grants and loans for rural business and industry programs promoting small business growth. Included in that amount is funding for the Healthy Food Financing Initiative to improve access to healthy foods in rural areas.
$6.94 billion is included for rural electric and telephonic infrastructure loans.
The bill funds the rural broadband loan and grant pilot program at $425 million, including $20 million for Rural Development Distance Learning & Telemedicine Grants to help fight opioid addiction.

Restrictions on Funding

The FDA is prohibited from spending money to evaluate research or clinical applications in which a human embryo is intentionally created or modified, including a heritable genetic modification.
The FDA is required to publish labeling guidelines before genetically engineered salmon can be introduced into commerce.
Operation and maintenance of the National Bio- and Agro-Defense Facility will be transferred from the Department of Homeland Security to the Department of Agriculture.

Interior-Environment

Overall Funding

The bill contains $35.9 billion in discretionary budget authority. It is $7.6 billion over the presidential budget request, representing a $601 million increase over the enacted fiscal year 2018 authorization.
The Department of Interior receives $13.1 billion, $56 million over the fiscal year 2018 omnibus.
The Environmental Protection Agency receives $8.1 billion, the same as in the fiscal year 2018 omnibus.
The U.S. Forest Service receives $6.3 billion, a $364 million increase from the fiscal year 2018 omnibus.
The Smithsonian Institution receives $1 billion, equal to the fiscal year 2018 omnibus.
The National Endowment for the Arts and the National Endowment for the Humanities each receive $155 million, in both cases an increase of $2.1 million over the fiscal year 2018 omnibus.
The Indian Health Service receives $5.8 billion, a $235 million increase over the fiscal year 2018 omnibus.

Notable Interior Provisions

$4.3 billion is allocated to wildland fire programs, an increase of $522 million over the fiscal year 2018 enacted level. This amount is expected to cover the 10 year average cost of wildfire suppression as well as $900 million in funding to cover the period before fiscal year 2020, when wildfire suppression operations cap adjustment becomes available.
Land and Water Conservation Fund programs receive $425 million.
The Bureau of Land Management, U.S. Fish and Wildlife Service, and National Park Service all receive small funding increases.
The Bureau of Ocean Management and Bureau of Safety and Environmental Enforcement are funded at $366 million, fully funding the new five-year offshore leasing plan for oil and gas resource development.
The bill increases funding for recreation programs within the U.S. Forest Service to aid economic development for rural communities.
Within the Smithsonian Institution’s funding, the bill continues necessary funding increases for the renovation of the National Air and Space Museum.
The bill prohibits Fish and Wildlife Service from listing the greater sage-grouse as threatened or endangered under the Endangered Species Act.

Notable Environmental Provisions

EPA’s $8.1 billion in funding includes increased funding for multipurpose grants to states to assist in administering the Clean Air Act, Clean Water Act, and other environmental programs. The grants allow states to spend funds on their highest priority projects.
Within EPA’s funding, $766 million is allocated for EPA Infrastructure Funding. Of that amount, $300 million is designated for each of the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund. The bill allocates $25 million for lead testing in schools and child care facilities. It dedicates $15 million to replacing lead pipes and $43 million to Superfund remediation programs.
The bill prohibits EPA from regulating lead bullets and fishing tackle.
The bill requires the EPA, Department of Energy, and Department of Agriculture to develop a policy treating biomass fuels as carbon neutral.

Financial Services and General Government

Treasury Department

The Treasury Department is funded at $12.701 billion.
The Office of Terrorism and Financial Intelligence is funded at $159 million, the inspector general for tax administration is funded at $169.6 million, the Financial Crimes Enforcement Network is funded at $117.8 million, and the Alcohol and Tobacco Tax and Trade Bureau is funded at $111 million.
The IRS is provided with $11.26 billion in total, including $2.5 billion for taxpayer services, $4.86 billion for tax enforcement activities, and $3.7 billion for operations support.

Executive Office of the President

The bill funds the Executive Office of the President at $728 million.

Judiciary

The bill provides $7.25 billion for the federal judiciary.

Independent Agencies

The bill appropriates $281.5 million for the Commodity Futures Trading Commission.
The Consumer Product Safety Commission is provided with $126 million.
The Federal Communications Commission is allocated $333 million, which is to be derived from offsetting collections.
The Federal Election Commission is funded at $71 million.
The Federal Trade Commission is to receive $309.7 million in funding.
The bill provides the General Services Administration with a total of $9.6 billion out of the Federal Buildings Fund.
The Office of Personnel Management is provided with $266 million.
The Securities and Exchange Commission is given $1.7 billion.
The bill funds the Small Business Administration at $699 million.

Funding Limitations and Other Provisions

The legislation prohibits the Postal Service from consolidating or closing small post offices. It requires the Postal Service to continue six-day and rural delivery at least at the 1983 level.
The bill directs the IRS to maintain an employee training program covering taxpayers’ rights and dealing courteously with taxpayers.
It prohibits the IRS from targeting citizens for exercising their First Amendment rights and groups for regulatory scrutiny based on their ideological beliefs. It also prohibits the IRS from issuing regulations regarding the determination of the tax exempt status of section 501(c)(4) social-welfare organizations.
The bill prohibits funds from being spent on redesigning one-dollar bills.
The bill prohibits the FCC from implementing primary-line restrictions on and other changes to universal service support payments.
It prohibits the SEC from issuing any regulation regarding the disclosure of political contributions, contributions to tax-exempt organizations, or dues paid to trade associations.
It prohibits agencies funded by the bill from acquiring telecommunications equipment made by Huawei Technologies Company or ZTE Corporation.
The bill prohibits the government from using appropriated funds to compensate any employee or officer who is not a citizen, a lawful permanent resident seeking citizenship, a refugee, or a person who owes allegiance to the U.S.
It limits to $5,000 the amount that can be spent on furnishing or redecorating offices without advance notice to the appropriations committees.
It prohibits funds from being used to paint portraits of any government officers or employees.
It restricts the use of nondisclosure agreements between employees and government agencies and contractors.

Transportation-Housing and Urban Development

Overall Funding

The bill provides $71.4 billion in discretionary budget authority, which is $1.1 billion above last year’s level and $23.4 billion above the president’s request. The president’s infrastructure proposal shifted many transportation programs from discretionary to mandatory funding.
It includes $10 billion more for infrastructure activities relative to the fiscal year 2017 level, just as the fiscal year 2018 omnibus did. Included are increases of $5.3 billion for highways, $750 million for airports, and $1.109 billion for housing assistance.

Transportation

BUILD competitive grants – formerly TIGER – that fund highway, bridge, trail, transit, and port projects would receive $1 billion, or $500 million less than last year. Rural areas get a 30 percent guarantee. The bill continues to prohibit the Department of Transportation from using an applicant’s federal cost-share or non-federal revenue as criteria for awarding grants.
The Federal Highway Administration receives $49.3 billion total, out of the Highway Trust Fund and general fund. This includes an appropriation of $46 billion out of the trust fund for liquidating federal commitments under the federal-aid highway program. The bill provides an additional $3.3 billion, out of the general fund, to be divided among programs relating to surface transportation block grants, highway activities in Puerto Rico and other territories, railroad-highway crossings, and rural bridge rehabilitation.
For Federal Aviation Administration programs, the bill provides $17.7 billion out of both the Airport and Airway Trust Fund and the general fund. The NextGen program receives $1 billion. Grants to airports for runway, airfield, and related improvements receive $3.75 billion. The report directs the FAA to study making airports eligible for a federal loan program currently dedicated to financing surface transportation projects.
Discretionary appropriations for payments to air carriers in the Essential Air Service program total $175 million, $20 million more than last year. Other EAS program funds come from fees that FAA charges operators that fly in U.S. airspace but do not take off or land in the U.S.
The Federal Railroad Administration receives $2.8 billion total, including $1.941 for Amtrak. Within FRA’s safety program funding, $10 million is reserved for staff and contractors overseeing railroads’ installation of positive train control technology. One provision limits Amtrak overtime pay to $35,000 per employee. The report directs Amtrak to develop plans to operate safely on sections of the system that require trains to slow down significantly, until PTC technology is fully installed.
For Federal Transit Administration programs, the bill provides $13.5 billion total, out of both the Highway Trust Fund and general fund. This includes $9.939 billion in formula grants for bus and railcar purchases and facility improvements, as well as an additional $800 million in transit infrastructure grants to be distributed among existing programs such as those for bus formula and competitive grants and state of good repair transit grants. The Capital Investment Grants program, which funds construction and improvements of fixed guideway rail or bus rapid transit systems, receives $2.553 billion.
The bill addresses disagreements about appropriating transit funds for a series of passenger rail and tunnel projects between New York City and Newark, N.J., called the Gateway Program, by requiring all projects to compete for transit funding. This is consistent with the fiscal year 2018 omnibus.
The Washington Metropolitan Area Transit Authority receives $150 million for capital and preventative maintenance costs, level with fiscal year 2018.
The bill funds the Maritime Administration at $818 million, including $300 million for a new training vessel for state maritime academies’ use.
The National Highway Traffic Safety Administration receives $956.3 million to carry out setting vehicle safety performance standards and investigating safety defects.
The bill provides the Federal Motor Carrier Safety Administration with $666.8 million for safety programs and grants and regulatory development.
The bill does not include any electronic logging device exemption for truckers under FMCSA hours of service rules. The report directs the agency to work with Congress on legislation. The ELD rule requires commercial haulers to track their driving electronically to ensure they comply with rules about hours of service and required rest periods. Livestock and insect haulers are exempt from the ELD rule through fiscal year 2018, but haulers of other agricultural commodities are not.
The report directs the Department of Transportation, in consultation with the Agriculture Department, to update definitions of aquaculture.
The bill does not change federal limits for the truck trailer length or weight, a topic that has been under debate in Congress.

Housing and Urban Development

The bill provides $22.781 billion for the Section 8 tenant-based voucher program, through which about 2.2 million families receive rental assistance for housing units in the private rental market. This amount is $766 million more than the fiscal year 2018 level and $2.2 billion more than the president’s request.
The bill appropriates $11.747 billion for Section 8 project-based rental assistance. This program subsidizes housing through private and non-profit landlords for about 1.2 million low-income households.
The legislation provides $4.756 billion to public housing agencies for the operation and management of public housing and $2.775 billion for the ongoing maintenance, upkeep, and rehabilitation of public housing properties.
Native American housing block grants would be funded at $755 million, level with fiscal year 2018.
The bill funds the Community Development Block Grant at $3.365 billion, level with last year.
It appropriates $1.362 billion for the HOME program, which funds acquisition and improvements of rented and owned housing, housing construction, and tenant-based rental assistance.
Homeless assistance grants are funded at $2.612 billion, which is $99 million more than last year.
Additional assistance is provided for people who are especially vulnerable to homelessness, including veterans, youth, and domestic violence survivors. The bill provides $20 million for new family unification vouchers aimed to prevent young people leaving foster care from becoming homeless. It funds a joint supportive housing voucher program between HUD and Veterans Affairs at $40 million.
Housing programs for elderly Americans are funded at $678 million, and housing activities for disabled Americans are funded at $154 million.
The bill also provides $260 million for grants to reduce and abate lead in low-income housing, to be distributed through the Lead Hazard Control grant program, Healthy Homes program, and the Lead-Safe Communities demonstration program.
It limits to $550 billion new guarantees of mortgage-backed securities by Ginnie Mae.

Independent Agencies

The U.S. Access Board receives $8.4 million.
The Surface Transportation Board is funded at $37.1 million, level with last year.
The bill extends the operations of the United States Interagency Council on Homelessness for one year and provides $3.6 million, the same as last year; the president’s request proposed to end the council.

Notable General Provisions

Sections 410 and 411 relate to prohibiting uses of funds for people or activities that do not comply with the Buy American Act.

ADMINISTRATION POSITION

A statement of administration policy is not yet available for the Senate amendment containing the minibus. An SAP is available for the House version containing the Interior and Financial Services bills. In the SAP for the Senate version of the first minibus, H.R. 5895, the administration expressed support for “timely consideration of appropriations legislation” and the defense spending cap for fiscal year 2019, but expressed disagreement with the non-defense spending cap in the Bipartisan Budget Act of 2018.

COST

The Agriculture bill contains $23.2 billion in regular, non-emergency discretionary budget authority, an increase of $225 million from fiscal year 2018 and $38 million less than the House level.
The Financial Services bill contains $23.7 billion in regular, non-emergency discretionary budget authority, a $16 million increase from fiscal year 2018 and an increase of $10 million from the House level.
The Interior-Environment bill contains $35.9 billion in regular, non-emergency discretionary budget authority, an increase of $601 million from both the fiscal year 2018 and House level.
The Transportation-HUD bill contains $71.4 billion in regular, non-emergency discretionary budget authority, an increase of $1.1 billion from fiscal year 2018 and $383 million less than the House level.