House GOP to Use Holman Rule to Target Staff/Funds of the Congressional Budget Office #Bonkers

Posted: 2:06 pm ET
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In early January, we blogged about the Holman Rule, which was removed from the standing rules in 1983 but reinstated by House Republicans early this year (see House GOP Brings Back Holman Rule to “Retrench” Agency Spending, Cut Pay of Any Federal Employee. According to the Hill, the House Freedom Caucus Chairman Mark Meadows (R-N.C.) is trying to eliminate 89 positions from the nonpartisan Congressional Budget Office’s staff and require the office to aggregate think tank data instead of using its own professional expertise. The Hill says that Meadows would use the Holman Rule. “In an amendment to be offered to the security-related spending bill scheduled for a House vote this week, Meadows would cut $15 million of funding to CBO staff members responsible for estimating the budgetary costs of bills in Congress…”

This is bonkers.  They don’t like the Congressional Budget Office’s scores, so they’ll eliminate 89 positions and slash the agency’s funding. If they succeed in doing this, they could replicate this at any agency. It will hasten the death of expertise in federal agencies and we will be left with whatever desirable facts and fancy reports will be rolled out by the administration of the day based on aggregated reports from preferred think tanks.

The “Holman Rule” in the rules package passed the House of Representatives by a vote of 234 to 193. WaPo previously reported in January that a majority of the House and the Senate would still have to approve any amendment to an appropriations bill that targets a specific government employee or program, but that its passage put agencies and the public on notice that their work is now vulnerable to the whims of elected officials.

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Nixon and the 1974 Congressional Budget and Impoundment Control Act

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Posted: 3:09 am ET
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The 1974 Congressional Budget and Impoundment Control Act turned 43 years old this week.  It moved the fiscal year from July 1 to October 1 and created the budget committees in the House and the Senate. It also established the Congressional Budget Office (CBO). But there’s one other thing that folks may have forgotten — that the Act was inspired by then President Nixon’s refusal to disburse nearly $12 billion of appropriated funds by Congress. This seems relevant under the current circumstances where Congress may appropriate more funds than the Trump Administration’s budget request for the State Department.  Although apparently, loopholes can always be found if one is skilled enough.

The 1974 Congressional Budget and Impoundment Control Act modified the role of Congress in the federal budgetary process. It created standing budget committees in both the House and the Senate, established the Congressional Budget Office, and moved the beginning of the fiscal year from July 1 to October 1.

The 1974 Congressional Budget and Impoundment Act created a set of institutional changes designed to help Congress regain power over the budget process. The Act was inspired by Richard Nixon’s refusal to disburse nearly $12 billion of congressionally-appropriated funds in 1973-74 through the executive power of impoundment, as well as more generalized fears about the budget deficit. Nixon claimed that the deficit was causing high inflation and that as a result he needed to curb government spending. To this effect, in the 1972 presidential election he called on Congress to grant the President authority to cut federal spending so as to keep the budget under control. Congress opposed Nixon’s proposal and instead sought to reform Congress’ budgetary role. In 1972 Congress created a Joint Study Committee on Budget Control which called for procedural reforms to enable Congress to examine the federal budget from an “overall point of view, together with a congressional system of deciding priorities.” Following Nixon’s impoundment Congress acted on these recommendations and in 1974 passed the Act over the President’s veto.

The Act had two main goals: (1) strengthen and centralize Congress’ budget authority; (2) reduce the President’s impoundment authority. The latter was done by drafting detailed guidelines restricting how the President can impound funds already appropriated by Congress. The former—which has proven the more significant of the two—was done through a variety of means. The Act created the Congressional Budget Office (CBO) to give Congress independent economic analysis and end the Executive Branch’s monopoly on budgetary information created by the 1921 Budget and Accounting Act. It created standing budget committees in both the House and the Senate, provided for greater numbers of staff for these and other committees involved in budget decisions, and made changes in the procedure of passing a budget. The new budget committee was required to pass a ‘concurrent budget resolution’ (to be passed by Congress no later than May 15) outlining the government’s overall expenditures and receipts, based on CBO estimates. The concurrent resolution would then serve as the blueprint for the regular work of the authorizing and appropriating committees as they drafted the budget. (Via University of California)

 

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Snapshot: Discretionary spending by the federal government, FY2016

Posted: 2:38 am  ET
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Via the Congressional Budget Office, February 2017:

Discretionary Spending is spending that lawmakers control through annual appropriation acts. Below is a breakdown of discretionary spending for FY2016 (October 1, 2015 – September 30, 2016).

  • $1.2 Trillion | Discretionary spending by the federal government in 2016
  • $584 Billion ($0.6 Trillion) | Spending on national defense, which accounted for nearly half of the discretionary total, in 2016
  • $52 Billion | International Affairs, which accounted for the smallest nondefense spending
Via CBO

Via CBO

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