Congress unveils a $1.2 trillion bipartisan funding package to avert a partial government shutdown
Congressional leaders released the final four measures of a sweeping $1.2 trillion funding package in an effort to avoid another government shutdown on the last day of the month.
The Package of 1,059 pagesknown as a “minibus,” would fund several key government agencies including the Departments of Housing and Urban Development (HUD), Defense, Homeland Security, Health and Human Service, Labor, Transportation and Education after the January 30 shutdown deadline.
It comes two months after the end of the longest shutdown in U.S. history, which lasted 43 days and disrupted critical services, from food assistance to the work of the National Flood Insurance Program, which underwrites more than 90% of the nation’s residential flood insurance policies.
So far, the House of Representatives has passed eight of the 12 appropriations bills needed to fully fund the government for the fiscal year ending in September.
The Senate has passed six of the measures. Lawmakers in the House will vote on the remaining bills next week when they return to Washington, DC.
Sixty votes are needed to avoid a partial shutdown, and with Republicans holding 53 seats in the Senate, Democrats would have to cross the aisle to send the bills to the president. Donald Trump‘s desk for signing.
What is included in the financing package?
Nearly $839 billion, or 70% of the entire financing package, is earmarked for the Ministry of Defense. That includes a 3.8% pay increase for active military personnel.
Several agencies will see modest increases in funding compared to the previous year, with $117 billion earmarked for funding Department of Health and Human Services, $79 billion for the Ministry of Educationand nearly $14 billion goes to the Ministry of Laborreported Politics.
The Ministry of Transporthowever, would face a $111 million cut, reducing funding to $25.1 billion.
An important point of contention is the financing of the Department of Homeland Securitywho operates it U.S. Immigration and Customs Enforcement (ICE).
After the fatal shooting of an American citizen and mother of three children Renee Goode by an ICE agent in Minneapolis earlier this month, Democrats had called for meaningful reforms aimed at reining in the agency under Secretary’s watch Kristi Noemincluding requiring personnel to show identification and banning the wearing of masks during raids, NBC News reported.
Ultimately, the proposed reforms were left out of the final package, which would leave ICE’s budget at $10 billion while cutting funding for enforcement and removal operations by $115 million.
However, the bipartisan bill would require DHS to spend $20 million on body cameras for ICE agents and another $20 million on inspections of immigration detention centers.
Despite the compromise on broader reforms, Senator Sen. Patty Murrayof Washington, the top Democratic appropriator in the Senate, argued in a statement that with this bill, “Democrats have successfully reduced Republicans’ hard-fought push to give ICE an even larger annual budget, cut ICE’s detention budget and capacity, reduced CBP’s budget by more than $1 billion, and secured important, though still insufficient, new restrictions on DHS.”
Ranking Member of the House Appropriations Committee Rosa DeLauroa Democrat from Connecticut, conceded that the package did not go far enough in curbing ICE, but said she would vote for it anyway because it would thwart another shutdown and continue to fund vital services that are also under the authority of DHS, including the Transportation Security Administration and the U.S. Coast Guard.
“I understand that many of my Democratic colleagues may be dissatisfied with any bill that funds ICE,” DeLauro said in a statement. ‘I share their frustration with the agency that has gotten out of hand. I encourage my colleagues to review the bill and determine what is best for their constituents and communities.”
What the funding bills mean for housing
Of the agencies included in the minivan package, HUD is poised to receive the largest funding increase at $7.2 billion, increasing its budget to $84.3 billion.
“Continued financing from HUD is essential to the housing market because HUD administers FHA loans, a type of federally insured mortgage that allows first-time homebuyers to purchase a home with a lower down payment, says Realtor.com® senior economist Joel Berner. “If HUD closes, these loans will no longer be made and demand for entry-level housing will be depressed.”
A HUD shutdown would also pause or delay the issuance of Section 8 vouchers, making it difficult for low-income renters to afford housing.
Created as part of President Lyndon B Johnson‘S War on poverty According to the website, HUD was charged in 1965 with addressing America’s housing needs, improving communities and enforcing fair housing laws.
More than 4.3 million low-income families currently rely on HUD to provide them with affordable housing through a variety of means, including public housing, rental subsidies, and voucher programs like Section 8.
HUD also plays an important role in supporting homeownership among low- and middle-income families Federal Housing Administrationor FHA, which insures mortgages for homes and other properties.
More broadly, Berner emphasizes that a government shutdown is an injection of uncertainty into a housing market that is already struggling to regain momentum after the worst slowdown since 1995.
“Workers in industries that rely on government contracts are likely to experience some reluctance about making a major purchase, and housing market professionals are being forced to ‘fly blind’ without the release of regular data,” he says.
