Omnibus Bill Likely for Final Appropriations Measure

With only three weeks before the current continuing resolution (CR) runs out, Congress has very little time to complete work on a final appropriations for fiscal year 2008 (FY08). Under a time crunch like this, it is likely that appropriators will choose to move forward with an omnibus package, covering various government agencies and programs. Meanwhile, President Bush continues to issue a veto threat to any omnibus package sent to his desk. If the two sides cannot reach an agreement in by the end of the month, the country may face a government shutdown.

The President already vetoed the Labor-HHS-Education appropriations bill last month. Congress originally allocated about $10 billion more that the President requested for those agencies. Overall, Congress is calling for $22 billion more for FY08 appropriations that the president requested in his budget proposal. Due to what he deems as “excessive spending,” Bush continues to levy veto threats at any bill that comes in too far above his budget requests.

Appropriators in both chambers have already offered to “meet the president halfway,” by bringing the total appropriation levels to just $10 billion over the president’s request, but the White House has not shown any sign of compromising. If the two sides cannot come to an agreement, and if the final omnibus package is not passed by a veto-proof majority, then Congress will either have to pass a CR or face a possible government shutdown.

Meanwhile, appropriators plan to attach a new state children’s health insurance program (SCHIP) proposal into the omnibus bill. Within that proposal, lawmakers intend to include language that would place a two-year moratorium on any changes to payments for school-based services under Medicaid. A similar provision made it through with the first SCHIP proposal, but died when Congress failed to override the President’s veto.

The final showdown will come towards the end of month, with various possibilities determining the outcome. Politically, vetoing an omnibus bill that funds multiple government agencies is more difficult than killing individual bills. However, since the president does not need to seek reelection, his personal political concerns are not as complicated as they have been in previous years. If he chooses to veto the bill, Congressional Republicans will have to decide if they will back his veto, possibly hurting their own chances at reelection. If a veto is not possible, Democrats will have to decide if they will risk a government shutdown by making a stand against the president, or if they will let down their own constituency by bringing spending levels down to the President’s budget request. Whichever path the process decides to follow, this should be an interesting Holiday season.