Congress Puts Final Touches on Omnibus Funding Bill
Democratic and Republican appropriators agreed to a $1.7 trillion omnibus funding bill for Fiscal Year 2023 (FY 2023). Now lawmakers have just days to pass the 4,155-page legislation ahead of the Friday deadline. Thursday morning, Senate Majority Leader Charles Schumer (D-NY) announced an agreement that would allow Senators to advance the bill that day giving the House a chance to do the same before the deadline.
The funding deadline was pushed back a week after Congress passed a one-week stopgap measure to give lawmakers time to come to a deal on the omnibus. The final legislation includes the dozen funding bills for every federal agency, as well as a range of other riders, including aid for Ukraine, aid for natural disaster victims, bipartisan retirement services legislation (SECURE Act 2.0), a ban on TikTok for government devices (S. 1143), money for pandemic prep, reform of the Electoral Count Act (S.4573) and much more.
The omnibus will boost base military and domestic spending. It includes $858 billion in defense spending, a $76 billion increase over the fiscal 2022 level, according to a Senate Appropriations Committee summary. It includes $772.5 billion in nondefense funds, which would be a $42.5 billion increase. It also funds a 4.6 percent pay increase for military and civilian federal employees.
The bill also extends the temporary class wide scheduling order for fentanyl related substances until December 31, 2024. The scheduling order was set to expire on December 31, 2022.
Relevant to federal law enforcement, the current bill also includes the “Protecting Public Safety Employees' Timely Retirement Act,” (our TSP Tax Fix) which allows federal, state, and local first responders to take withdrawals from a governmental defined contribution plan after 25 years of service at any age without incurring the 10% IRS penalty. Current law only allows such penalty-free withdrawals for public safety officers at age 50 after 20 years of service.
The omnibus package also includes the “Putting First Responders First Act,” which codifies a 1985 IRS Revenue Ruling to allow first responders to exclude from gross income certain service-connected disability payments.
Senate Appropriations Committee Chair Patrick Leahy (D-VT) said in a statement, “From funding for nutrition programs and housing assistance, to home energy costs and college affordability, our bipartisan, bicameral, omnibus appropriations bill directly invests in providing relief from the burden of inflation on the American people.”
Meanwhile, Senate Republican Leader Mitch McConnell (R-KY), hailed the boost to defense spending. He said on the Senate floor before the final text was released, that the measure “equips our armed forces with the resources they need while cutting nondefense, nonveteran spending in real dollars.”
The Senate will vote on the ominbus first and intends to pass the measure on Thursday. That will leave no time for the House to ask for changes before the deadline.
There is already tension between Senate Minority Leader Mitch McConnell (R-KY) and House Republican Leader Kevin McCarthy (R-CA) over the omnibus bill.
The Hill reports that Leader McCarthy recently said he hopes Senate Republicans won’t vote for the omnibus legislation.
With most House Republicans expected to oppose the legislation, the pressure will be on Speaker Pelosi to hold the Democratic caucus together. Some progressives have voiced concern over increases for defense spending and policing.
According to reports Thursday, the Senate worked out a deal with Republicans to vote on a block of 15 amendments. Among the changes are an amendment to increase border funding and resources for border communities and extend the Title 42 health policy that expedites the deportation of migrants seeking asylum in the United States.
Arizona Senator Kyrsten Sinema (I), who recently left the Democratic Party to serve as an Independent but continues to caucus with Democrats, offered to amendments. The amendment is viewed as a centrist alternative to an amendment proposed by Senator Mike Lee (R-Utah) that would cut funding for the Department of Homeland Security unless the Biden Administration reinstates the Title 42 policy.
“This year’s historic levels of border crossings at our Southern border makes clear the status quo is not working. Our amendment boosts funding for border security, increases resources for border communities and extends Title 42 until a proper plan to manage the crisis at our border is in place,” Sinema said in statement.
Both amendments will be voted on Thursday prior to a vote on the full package.