House Appropriators To Meet Again Today As Govt Shutdown Risk Increases

The House Appropriations Committee will meet again today after a dispute yesterday over FY24 spending levels yesterday foreshadowed a challenging summer of negotiations which has elevated the risk of a government shutdown.

• Federal spending appeared set to be pared back to FY23 levels in accordance with this month's debt ceiling deal. GOP appropriators, however, decided to markup bills at FY22 levels following an intraparty standoff with conservative Republicans.
• There is a lot of time for this to play out before appropriators release final bills in late September but the House appears headed for a standoff with a Senate which already had reservations about spending caps, particularly in regard to defence.
• The mood on Capitol Hill is one of increased uncertainty, especially considering the House Freedom Caucus has publicly staked out a position opposed to bipartisan deal-making, crucial to legislation in a period of divided government.
• Note: A mechanism within the debt limit deal would automatically apply spending cuts to all govt agencies if Congress fails to legislate the 12 annual spending bills, an action which may imperil Ukraine aid and the Pentagon budget.