Summary
Without an agreement on a fiscal year (FY) 2022 spending, and with the February 18 deadline of the second continuing resolution (CR) approaching, top appropriators are considering a third CR with a March 11 expiration. The protracted bipartisan talks over topline spending numbers have stalled the finalization of all 12 appropriations bills. The House is expected to vote on a clean CR (with no policy riders) this week before adjourning for a two-week recess, and the Senate would take it up next week.
Still, we are optimistic that with additional time for negotiations Congress will eventually reach a spending deal for FY 2022 (i.e., no full-year continuing resolution). A major incentive for collaboration and cooperation is the return of earmarks (up to one percent of discretionary spending, which amounts to billions) and their positive impact in an election year for both parties. We imagine that appropriations leaders who are retiring (including Senate Appropriations Chairman Patrick Leahy (D-VT) and Ranking Member Richard Shelby (R-AL), as well as Labor-HHS Subcommittee Ranking Member Roy Blunt (R-MO)), are highly motivated to pass an FY 2022 omnibus spending package with millions in earmarks for their constituents. Committee staff have made progress on working through conference items, although they are stifled somewhat by not knowing their final subcommittee allocation levels.
Whether COVID-19 supplemental funding will be attached to the FY 2022 appropriations omnibus is uncertain, especially since the White House has not yet appeared to have made a formal request for additional funding. Any supplemental funding would be relatively small and narrow in scope, given current pushback from Republicans to provide additional federal resources and the need for 60 votes in the Senate.
As for other legislative priorities, congressional committee will hold hearings this week on mental health, the health care workforce shortage, and the Advanced Research Projects Agency for Health (ARPA-H).