Lawmakers Reach Spending Cap for Omnibus Spending Bill

Appropriations committee leaders have reached a bipartisan deal on top-line spending levels for all 12 parts of the omnibus spending bill. Congress has until December 11, 2020 to fund the government and avoid a shutdown.

Emergency funding above the $1.4 trillion spending cap has also been allocated, although the exact amount is as yet undisclosed.

House Speaker Nancy Pelosi (D-CA) said of the negotiations, “I’m optimistic that we will have bipartisanship to put something together to go forward because I do believe that many of our colleagues understand what’s happening in their districts and want to make a difference.”

Talks of a COVID-19 relief package are also stalling negotiations on a final spending bill. Many COVID-19 related financial lifelines included in earlier legislation are set to expire this year, including unemployment benefits, federal student loan forgiveness, and protections against evictions.

Treasury Secretary Steven Mnuchin suggested tapping into Federal Reserve relief funds as a new source of aid. Senate Majority Leader Mitch McConnell (R-KY) agreed with Mnuchin’s proposal, while Democratic leaders, including Speaker Pelosi, have condemned this idea as deeply irresponsible.

Senator McConnell has said he supports small, immediate relief packages over an all-encompassing one with wide scope, according to media reports. He said, “The American people need more help and they need it right now, both sides must give.”

While negotiations continue, FEDmanager will continue tracking government spending negotiations.