Steptoe is tracking the latest developments in the federal appropriations process on behalf of our clients. Below are the top developments you need to know.

The Topline:

With Congress back in session next week, Congressional negotiators are facing tight deadlines to reach agreements on both topline funding levels and supplemental aid. While talks on both issues have been slow-moving, there have been signs that negotiators are close to an agreement on topline funding totals. This comes as Senate appropriators have emphasized their opposition to relying on a full year continuing resolution (CR) to fund the government in the event a funding deal cannot be reached.

Conversely, negotiations in the Senate on a supplemental aid package for Ukraine, Israel, and the border have not showed much progress over the holiday break. There are questions on whether a Senate-passed deal would have the votes to pass the House. Conservative House Members have continued to highlight their opposition to any deal that does not resemble the House-passed immigration bill (H.R. 2), which passed the chamber in 2023. Relatedly, to emphasize their focus on border security, House Republicans will begin a series of impeachment hearings against Homeland Security Secretary Alejandro Mayorkas next week.

House:

  • Jan. 3 - A bipartisan accord on fiscal 2024 totals is within reach, a person familiar with the private negotiations says, as brokers for Speaker Mike Johnson and Senate Majority Leader Chuck Schumer continue to work toward a framework agreement that lays out ground rules for funding the government this month. Politico Pro
  • Jan. 3 - Prospects for a bipartisan deal on immigration dimmed Wednesday as House Speaker Mike Johnson dug in on Republican legislation that Democrats argue goes too far in securing the US border with Mexico. BGOV
  • Jan. 3 - A trio of senators have spent weeks laboring to cut a complex immigration deal with the Biden administration – all in an effort to curtail the surge of migrants at the southern border while easing passage for aid to Ukraine and Israel. But a growing number of House Republicans are issuing a blunt warning: A Senate compromise stands virtually no chance of passing their chamber. CNN

Senate:

  • Jan. 3 - Senate negotiators and aides have spent the holiday recess working through sticking points in a prospective border policy deal that Republicans demanded in exchange for approving new aid to Ukraine. Now senators face an uphill battle to lock in an agreement, finalize text, and pass a bill. BGOV
    • Related: As Senate negotiators continue haggling over a foreign and domestic aid package, Sen. Bernie Sanders (I-V.) said Tuesday that Congress should block billions of dollars in unconditional aid to Israel. Politico Pro
  • Jan. 22 - In the Senate especially, lawmakers in both parties are increasingly decrying the idea of resorting to a full-year stopgap funding patch if the two parties can't wrap up a bipartisan, bicameral funding agreement in short order. Politico Pro

Administration:

  • Jan. 4 - In a letter to leaders of the House Budget Committee, the Congressional Budget Office laid out what's expected to happen come April 30 if Congress triggers the cuts and caps prescribed in the debt limit agreement. Letter
  • Jan. 2 - Thanks to the bipartisan debt limit agreement, the threat of new funding limits is here (although still unhatched). OMB explains why, and what's next, in a memo sent to agencies ahead of the new year. Memo

Next Week

Hearings

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