The Budget Sausage

I have mentioned before that there are two things you never want to see made: a sausage and a political deal. To my surprise, Congress has made a political deal by coming to grips with the 2014 Budget. A deal has been done. Last week, the House of Representatives which, I would remind you, has a Republican majority, approved a massive spending bill amounting to $1.1 trillion (“the Bill.”) The Senate approved the Bill yesterday (Thursday.) Provided the President doesn’t exercise his veto, the Bill will become law and I know of no reason for the veto to be used. Accordingly, the threat of a US federal government shutdown next month disappears. Also, it ought to follow that the US government spending limit will be raised without condition because the Republicans have agreed new spending limits.

The amount to be spent this fiscal year is mind-boggling. I cannot work out how many noughts go after the one. It should be remembered that the $1.1 trillion relates solely to federal government spend. In addition, fifty states have their own budgets. Also, cities and towns have the right to levy funds for their expenditure. One day, I might design an App to let people know how much America spends on government.

I have researched some interesting elements of the Bill. The pro-lifers will have lobbied hard to continue the ban on the use of federal funds for most abortions, including abortions for federal prisoners. However, pro-choicers will be pleased that the so-called Global Gag Rule, which bans non-governmental organizations in receipt of federal funds from counselling women on certain “health programs,” i.e. abortions, has not been codified.

The Bill does not provide new funds to implement the Affordable Care Act but maintains current funding levels for Medicare and Medicaid Services Centres which oversees the law. However, the Prevention and Public Health Fund has suffered a $1 billion reduction. The Republicans argue that the Obama administration will now be prevented from using this fund to pay for elements of the new Act. I suspect the President will have much to say about healthcare in his State of the Union speech.

Homeland Security will take a $336 million cut in funding but the Bill increases funding for private security contractors, capping the Transport Security Administration to 46,000 screening personnel. This is a win for the Republicans, who seek a reduction in government employment but like their friends in the private sector to benefit from public funding.

The Bill cuts the appropriation for military operations in Afghanistan by $2 billion in light of troop reductions. It also withholds funds from the Afghan government until security conditions are met. Despite concerns for embassy security, following the attack in Benghazi, the Bill reduces security appropriation by $224 million. Also, the Bill bans construction of the new London embassy. Interestingly, Matthew Barzun, the US Ambassador to the UK, has gone on record that the new embassy will be funded by the sale of US government properties in London, not through appropriated funds. Who will win this battle? We Londoners will be hoping that we do not have to look at “The Bunker in Grosvenor Square” indefinitely! Thank you, Mr Ambassador for fighting the fight.

$6.55 billion has been set aside for the Disaster Relief Fund managed by Federal Emergency Management Agency, for use when a state of emergency is declared. Democrats blocked attempts to prevent the Environmental Protection Agency from regulating greenhouse gas emissions and repealing new clean water regulations. However, the Bill delays premium increases for states, triggered by changes to FEMA’s flood insurance programme. What damage will this cause?

Increases in spending on border security are approved. The Bill authorises $10.6 billion for Customs and Border Protection, an increase of $220 million on the previous year. Interestingly, the Bill bans the Obama administration from transferring terrorism detainees from the facility at Guantanamo Bay. The new facility to be built in Illinois is stopped. GITMO will continue to be a political embarrassment. There are numerous provisions relating to Immigration. The one that caught my eye was the Democrats’ blocking of GOP attempts to prohibit the Justice Department using federal funds to mount legal challenges to state immigration laws.

Contractors bidding for government contracts will not have to disclose campaign contributions. This is a slap in the face for the Obama administration. Obama has considered issuing an executive order requiring disclosure. It is very unlikely he will do so now but campaign funding is already a scandal, courtesy of the Supreme Court.

There is a boost for education funding with more than a $1 billion increase, especially to help the very young. Early Head Start and other pre-school programs are supported. The Bill also provides the Agricultural Department with sufficient funds to provide 5.6 billion free or reduced-price school lunches. More than 30 million school children are eligible for this benefit.

The Bill is more than two thousand pages. No doubt, there is something for everyone. And when the President sets out his legislative agenda for 2014, we can expect the Congressional amity to disappear quite quickly as the “Business as usual” signs are hung on the doors of the House and Senate. What a pity. Wouldn’t it be nice to see more Congressional sausages?