Updates from National Council of Nonprofits

Federal Funding

At this time, it seems Congress is on the path to avoiding another shutdown.

The current continuing resolution (CR) keeps the federal government open and funded through January 30. By then, Congress must enact full spending bills or another CR, or it risks a government shutdown.

Thankfully, congressional leaders have made progress in their bipartisan negotiations over the past few months. By next week, Congress is hoping to enact 3 more full-year spending bills (Commerce-Science-Justice; Energy-Water; Interior-Environment), if it can overcome some disagreements about earmarks. If that happens, Congress will have enacted 6 of the 12 spending bills that are needed.

In January, congressional leaders will work to see whether they can reach a bipartisan agreement on any of the remaining 6 spending bills. Their goal is to pass a legislative package by January 30 that would include another CR (it is unclear if it will be short-term, or if it will fund programs through the end of the fiscal year) and any of the 6 spending bills for which they are able to reach an agreement.

Democrats are signaling that they do not plan to shut down the federal government over an extension of the Affordable Care Act enhanced premium tax credits.

Healthcare Issues

The House is voting today on legislation to extend for 3 years the Affordable Care Act enhanced premium tax credits. The vote is being held because last month, four Republicans joined Democrats in backing a discharge petition on the legislation, forcing House leadership to bring the bill to the floor for a vote. The bill is expected to pass the House, but it is not expected to advance in the Senate. Supporters hope the bill will put more pressure on Senate leaders to reach a bipartisan compromise on the healthcare tax credits. There's a short window to get something done, and it will be very challenging to find a solution that can garner enough support.

The debate over extending the healthcare tax credits has led some Republicans, including President Trump, to call for enacting another tax reconciliation bill this year to address healthcare and affordability issues. As you recall, Congress can enact a tax reconciliation bill with a simple majority in the Senate, rather than the typical 60 votes, but reconciliation is a cumbersome, daunting process. NCN will monitor for any threats/opportunities if momentum for a reconciliation bill continues.

SNAP

As you know, H.R. 1, the major tax package enacted by Congress this past summer, included several provisions to cut funding for the Supplemental Nutrition Assistance Program (SNAP). One provision requires states to reduce SNAP payment error rates, or risk losing partial federal SNAP funding. The National Governors Association, National Association of Counties, National Conference of State Legislatures, and the American Public Human Services Association, which represent SNAP administrators, are urging Congress to give states more time to bring their error rates down.

We hear there's some effort to add an extension to any funding package Congress advances this month.

Without an extension, states may lose significant funding for SNAP in the coming years, putting increased pressure on state budgets.