Fedweek

Congress Returns to Unfinished Work with Eye on Next Year

Congress has returned from lengthy pre-election recess facing unfinished work from this year but already focusing on next year, when Republicans will take control of the White House and Senate and—pending still ongoing vote counting in some districts—will likely continue to hold the House.

Among the main issues is agency funding for the fiscal year that is now more than a month old. A temporary measure that largely continued funding at fiscal 2024 levels is set to expire December 20, the projected date for the conclusion of the current Congress.

Only limited progress had been made toward passing the dozen regular appropriations bills before that measure was enacted; the expectation at the time was that full-year funding would be put in place before Congress adjourned, either through one or more wrap-up bills.

The outcome of the Presidential and Senate elections, though, has raised the prospect that Republicans will insist on only a short-term extension, possibly until sometime in March. That would give those new leaders a chance to set their own spending and policy priorities for the remainder of the fiscal year. Democrats continue to push for funding agencies through next September, to avoid that outcome.

House Republican leaders meanwhile have said they plan to pursue starting in January a budget “reconciliation” measure—assuming they remain in the majority there—that could be used for their spending, tax, and other priorities.

Among the pending appropriations bills is the general government measure, which has been passed by the House but not by the Senate. Both versions are silent regarding the January federal employee raise, effectively endorsing the 2 percent that President Biden has said he would set by default should no number be enacted into law by the end of the year.

He further has said would split the raise, with a 1.7 percent across the board increase and the funds for the remainder divided as locality pay, resulting in raise ranging from slightly below to slightly above 2 percent by locality. Exact figures would be announced near year’s end.

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