(Updated May 17, 2006)

H.Con.Res. 376
Concurrent Resolution on the Budget for FY 2007

Floor Situation

The House is scheduled to begin consideration of H.Con.Res.376, pursuant to a rule, on Wednesday, May 17, 2006.

On Wednesday, May 17, 2006, the Rules Committee granted a structured rule that:

Provides for further consideration of the concurrent resolution.
Provides that the amendments printed in part A of the Rules Committee report accompanying the resolution shall be considered as adopted
Provides that the concurrent resolution, as amended, shall be considered as read.
Makes in order only those further amendments printed in part B of the Rules Committee report accompanying the resolution.
Provides that the amendments printed in part B of the report accompanying the resolution may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for 40 minutes equally divided and controlled by the proponent and opponent, and shall not be subject to amendment.
Waives all points of order against the amendments printed in part B of the report, except that the adoption of an amendment in the nature of a substitute shall constitute the conclusion of consideration of the concurrent resolution for amendment.
Provides that upon the conclusion of consideration of the concurrent resolution for amendment there shall be a final print period of general debate, not to exceed 20 minutes equally divided and controlled by the chairman and ranking minority member of the Committee on the Budget.
Permits the chairman of the Committee on the Budget to offer amendments in the House to achieve mathematical consistency.
Provides that the concurrent resolution shall not be subject to a demand for division of the question of its adoption.
Provides that after adoption of H.Con.Res. 376, it shall be in order to consider in the House S.Con.Res. 83, to move to strike all after the resolving clause of S.Con.Res. 83, and to insert the provisions of H.Con.Res. 376 as adopted by the House.
Waives all points of order against consideration of the S.Con.Res. 83 and against the motion to strike and insert.
Provides that if the motion is adopted and the Senate concurrent resolution, as amended, is adopted, then it shall be in order to move that the House insist on its amendment to the Senate concurrent resolution and request a conference with the Senate thereon.

On Wednesday, May 17, 2006, the House considered and agreed to the Rule by a vote of 226-193 (Roll Call 154)

On Tuesday, May 16, 2006, the Rules Committee granted a rule that:

Waives Clause 6(a) of Rule XIII (requiring a two-thirds vote to consider a rule on the same day it is reported from the Rules Committee) against certain resolutions reported from the Rules Committee.
Applies the waiver to any resolution reported on the legislative day of May 17, 2006 providing for consideration of the concurrent resolution (H.Con.Res. 376) establishing the congressional budget for the United States Government for fiscal year 2007 and setting forth appropriate budgetary levels for the fiscal years 2008 through 2011, or addressing budget enforcement or priorities.

On Wednesday, May 17, 2006, the House considered and agreed to the Rule by a vote of 227-195 (Roll Call 152)

Summary

Discretionary: $873 billion for regular appropriations bills – an increase of 3.6% over FY06.

Emergency Reserve: $6.45 billion.

War Reserve: $50 billion.

Mandatory Savings: $6.8 billion over five years.

Taxes: Accommodates enactment of House-passed tax bills.

Amendments to Committee-passed Budget:

Increases Emergency Reserve Fund from $4.3 billion to $6.45 billion.
Eliminates $2.3 billion Avian Flu Reserve, as it is assumed in the supplemental.
Adjusts budget levels to conform with above changes.

Strength: We will further build on our nation’s greatest strengths, including,

    • The Economy – Continues successful Republican pro-growth policies (no tax increase) to keep our economy growing strong and creating jobs.

    • Defense and Homeland Security – Provides whatever is needed to support our troops, and keep our nation’s defense and security the strongest in the world.

    • War on Terror – Continues to set aside a $50 billion reserve for war costs.

Spending Control: Controls the spending we can control.

    • Continues our efforts to restrain non-security discretionary spending.

    • Reforms and achieves savings in entitlement programs for the second, consecutive year.

    • Keeps us on track to cut deficits in half by FY 2009.

Reform: In addition to mandatory programs, begins budget process reforms to better reflect and address how federal government dollars are actually spent.

    • Emergencies – Establishes “rainy day” fund to better budget for natural disasteremergencies.

    • Other Reforms – Subsequent reform package includes: earmark reform; the line-itemveto; and procedures to sunset programs and agencies that have outlived
      their usefulness.

H.Con.Res. 376 Budget Committee Fact Sheet

Part A - Summary of Amendments Proposed to be Considered as Adopted upon Adoption of the Rule:

Rep. Nussle (IA) #23 Amount of Emergency Reserve Fund: The amendment provides for a discretionary emergency reserve of $6.45 billion for natural disasters, taking into account enactment of the pending supplemental. This amount is based on a realistic average of emergency designated spending in prior years (excluding highs and lows). The amount is an increase from the $4.3 billion estimate in the committee reported resolution, which was based on 10 accounts most commonly associated with emergency spending (e.g. wildland firefighting, FEMA disaster relief, SBA disaster loans, ACOE Flood Control). The adjustment accommodates additional emergency effects in other accounts – such as international relief efforts, Federal Highway Administration emergency relief, and refugee assistance. The Appropriations Committee will continue to designate spending for nondefense emergencies, up to the amount in the reserve fund, for spending identified as unanticipated in the regular budget cycle, and in response to an immediate threat to life or property. Emergency appropriations above the reserve would be subject to a Budget Committee vote to raise the applicable limits. As in prior years, the policy defines a nondefense emergency (essentially an unanticipated event posing an immediate threat to life or property). The procedures for increasing the budget to accommodate spending in excess of the reserve are the same as in the committee-reported budget resolution, and do not contain any new points of order. Authorizing committees will continue to operate under essentially procedures, receiving adjustments for emergencies.

Reserve Fund for Domestic Priorities: The amendment provides a deficit-neutral reserve fund of $3.1 billion for Labor-HHS, education, and other domestic priorities, should savings be achieved elsewhere.

Avian Flu: There will be no separate reserve in fiscal year 2007 for avian flu, because the funding will be provided in fiscal year 2006.

Reconciliation Deadline: The deadline for submission of reconciliation legislation is rescheduled to 9 June 2006.

Budget Levels: The amendment also adjusts certain budget levels to be consistent with the changes above.

Contact: 5- 5-2911 Full text of Nussle amendment

Rep. Castle (DE) #25 The amendment reiterates that the budget resolution sets total discretionary spending at $872.778 billion and that additional funding for Labor HHS Education Appropriations can be offset with mandatory or discretionary savings. It also recognizes the need to increase the President’s FY 2007 Labor HHS Education Appropriation request by not less than $7.158 billion. Contact: 5-4165 Full text of Castle Amendmet

Weldon(PA)/ Gerlach (PA)/ Platts (PA)/LoBiondo (NJ)/Castle (DE)/Leach (IA)/Johnson (CT)/Kelly (NY)/Smith(NJ)/Dent (PA) #24 The amendment states that any offsets to provide for the increases relative to the President’s FY 2007 Labor HHS Education Appropriation request should include a rescission of at least $1 billion from available, unobligated funds previously appropriated for reconstruction activities in Iraq. Contact: 5-2011 (Weldon) Full text of amendment

Part B - Summary of Amendments in the nature of a Substitute to be Made in Order:

Reps. Watt (NC)/ Scott (VA) may offer a revised amendment (#15), debatable for 40 minutes. Increases taxes by over a half trillion dollars over five years. Increases spending by $231.4 billion over five years. Cuts defense spending. Provides no reserves for supplemental war funding or for natural disasters. Does not include reconciliation instructions to reform entitlements and curb the growth of mandatory spending. Contact: 5-1510 (Watt) Full text of Amendment

Rep. Hensarling (TX) may offer a revised amendment (#6) on Wednesday, May 17, 2006; it is debatable for 40 minutes. The amendment balances the federal budget by FY 2011, without increasing taxes. Extends the President’s 2001 and 2003 tax cuts and provide AMT relief. Eliminates roughly 150 federal programs, realizes a $392 billion net deficit reduction over five years, while increasing defense and veterans’ spending and making no changes to Social Security. Calls for $358 billion in reconciliation savings over five years, achieved in part by block granting Medicaid, SCHIP, and most federal education and job training programs, and capping the growth of Medicare at 5.4% annually. Significantly restructures the Departments of Commerce, Energy, and Education, reduces foreign aid by $31 billion over five years, allows drilling in ANWR, repeals Davis-Bacon, and eliminates highway (SAFTEA-LU) earmarks. Repeals the Gephardt rule, includes reforms to emergency spending, and creates Budget Protection Accounts to divert spending to deficit reduction and further tax relief. Contact: 5-3484 Full text of Hensarling amendment

Rep. Spratt may offer an amendment (#12), debatable for 40 minutes. Establishes a 10 year budget through fiscal year 2016, and balances the budget by 2012. Forces automatic tax increases by reversing current tax relief provisions. Does not include reconciliation instructions to reform entitlements and curb the growth of mandatory spending. Records higher near-term deficits. Contains higher spending than H.Con.Res. 376, but increases are spread everywhere except in defense, veterans benefits, and science. Contact: 5-5501 Full text of Spratt Amendment

Legislative History

H.Con.Res.376 was introduced by Rep. Nussle (IA) on March 31, 2006. The bill was reported as an original measure from the Budget Committee and House Report 109-402 was filed on March 31, 2006.

For additional information or questions, please contact the Budget Committee at 6-7270.