The U.S. House of Representatives passed its version of the federal budget on Oct. 5 in House Congressional Resolution 71. The measure, which calls for $4.1 trillion, aims to balance the budget by 2027.
The measure passed on 219-206 vote with 18 Republicans voting against it, and no Democrats voting in favor. A key concern for some members is the Republican-backed tax reform measure, which aims to significantly cut taxes on individuals.
After the vote, Budget Committee Chair Diane Black (R-TN) issued the following statement: “I am proud that the House supported a budget that reflects responsible stewardship of taxpayer dollars and reassures the American people that we are committed to effective governing. It is a plan that achieves balance in 10 years, strengthens our military, promotes economic growth and unlocks pro-growth tax reform.” She went on, “While passage of this budget is just one of several steps toward priorities becoming realities, meaningful and lasting reforms cannot be achieved by skipping steps in the process. Today, I am pleased that members of the House continued doing our part by passing a plan for ensuring a bright and better future for generations to come.”
As the House was passing its measure, the Senate Budget Committee was also at work and passed its version of the plan, which is now set for consideration by the full Senate in the coming days.
The House and Senate budget plans have significant differences, which will need to be worked out in conference committee meetings. Once the committees agree, the new budget plans will return to the respective chambers for consideration and approval.
Timeliness is important as government is currently operating on a temporary budget or continuing resolution that is set to expire Dec. 8. If that deadline is not met, another continuing resolution would need to be passed and the government could face a shut down.
What this will mean for agriculture and the pending 2018 farm bill is still unknown. When President Donald Trump released his budget plan in May he proposed cutting $3.6 trillion in federal spending over the next 10 years. It also included cuts to agriculture that he outlined in March. Based on that plan, the USDA is slated to see a $3.6 billion—or 19 percent—reduction compared to fiscal year 2017 levels.
Although the president proposes a budget, the House and Senate are not obligated to incorporate those recommendations. Danielle Beck, National Cattlemen’s Beef Association director of government affairs, explained that the document offered by the president has no binding authority. She noted, “It is best understood as a detailed statement by the administration about fiscal goals and policy preferences.” She explained that the proposal would require the House Committee on Agriculture to make $10 billion in cuts over 10 years, but specific cuts are not detailed.
Likewise, Rob Larew, senior vice president of public policy and communications at the National Farmers Union, said the budget proposal gets a lot of attention, but it mostly serves as a message outlining the administration’s priorities, which he noted, is important.
A significant measure included in the House resolution is a reconciliation measure. This procedure provides that the bill can be passed in the Senate by a simple majority as opposed to the normal two-thirds vote. Many believe the House included this little-used rule to force passage of the tax reform proposal.
Prior to the House vote, Speaker Paul Ryan (R-WI) called on members to support the resolution, saying it is a budget that “reflects our first principles. Freedom. Free enterprise. A government accountable to the people it serves. It is a budget that will help grow our economy and it reins in our national debt.”
Looking ahead to farm bill discussions, R.J. Karney, director of congressional relations for the American Farm Bureau Federation, also noted that the budget approved by the House is significantly different that the president’s proposal. He also pointed to the difference in the House and Senate budget, saying, “It’s too early in the process to discuss impact on the farm bill until the two chambers produce and pass a conference report.”
Asked if it would be next year before serious farm bill talks begin, Larew told WLJ, “I think behind the scenes there are serious farm bill talks happening right now.”
He said he believes the House ag committee is likely already actively working on language even without a budget. “They probably have a good idea of where cuts could be or not and they can already be drafting things that won’t be impacted.
“There is a potential you could see the House try to pass a bill this fall, but it really depends on tax reform and other things that need to be done. I don’t think it is likely you will see any action in the Senate, and therefore, the real serious business of getting to a farm bill will be early next year,” said Larew. — Rae Price, WLJ editor
