CQ News: Democrats’ Opposition Forces Delay in Omnibus Vote

CQ NEWS
Dec. 11, 2014; Updated 3:12 p.m.

Democrats’ Opposition Forces Delay in Omnibus Vote

By Tamar Hallerman, CQ Roll Call

The tenor of House floor debate early Thursday threw into doubt whether Republican leaders will have the votes necessary to pass a carefully crafted $1.1 trillion hybrid spending package as the threat of a government shutdown loomed large.

The House took an unexpected recess just as it was wrapping up debate on the spending package (HR 83), casting a cloud of uncertainty hours before the government’s budget authority was set to expire.

Strong signs of trouble emerged earlier Thursday, when the House approved Thursday, 214-212, a closed rule (H Res 776) to consider the underlying spending package. The narrow margin — and frantic last-minute arm-twisting by House GOP leaders to persuade conservatives to stick with the party line — made clear that the fate of the bill remains in question.

Minority Leader Nancy Pelosi, D-Calif, rallied her colleagues to hold firm against two particular policy provisions.

“It is clear from this recess on the floor that the Republicans don’t have enough votes to pass the cromnibus,” she wrote to Democrats. “This increases our leverage to get two offensive provisions of the bill removed: the bank bailout and big money for campaigns provision.”

All House Democrats united against the vote on the rule, even though party leaders did not formally whip against the spending package. A last-minute White House Statement of Administration Policy supportive of the so-called cromnibus, though, could provide some last-minute cover for Democrats to vote in favor of the plan. But it could also cause some Republican fence-sitters to balk.

“The administration appreciates the bipartisan effort to include full-year appropriations legislation for most government functions that allows for planning and provides certainty, while making progress toward appropriately investing in economic growth and opportunity, and adequately funding national security requirements,” the White House stated.

The House had been scheduled to vote on the spending measure Thursday afternoon, but the next steps are unclear.

Democratic opposition appeared to be firming up, but if Democrats push too hard, they risk having Republicans jettison the omnibus entirely in favor of a continuing resolution that kicks spending decisions into the 114th Congress. Notably, the rule that Congress approved so narrowly gives GOP leaders same-day authority to bring up new measures, which could include some a CR of some length.

Even so, Pelosi, of California, slammed the spending measure on the House floor, energizing many of her Democratic colleagues. She said she was “heartbroken to see the taint that was placed . . . from on high” and “enormously disappointed” that the White House was supportive. She vowed to vote against the spending package.

Meanwhile, Nita M. Lowey of New York, the Democrats’ chief negotiator on the spending package as the ranking member on House Appropriations, did not say whether she would vote for the measure, even as she praised the efforts of the committee to assemble the bill.

Campaign Finance, Dodd-Frank

The White House, however, noted that it “objects to the inclusion of ideological and special interest riders in the House bill,” specifically calling out a campaign finance add-on and a provision that would roll back a key portion of the Dodd-Frank regulatory overhaul (PL 111-203).

Those two provisions drew the bulk of the criticism from House Democrats, who lined up Thursday morning on the floor to blast the wrap-up spending package.

Maxine Waters of California, ranking Democrat on the House Financial Services Committee, said she is “increasingly optimistic” that Democrats could unite to halt the Dodd-Frank rider, which would repeal the law’s swaps pushout provision. Democrats warn that it could lead to another financial meltdown.

“House leadership will need support from both parties if it hopes to pass this legislation, and I believe Democrats will stand up against these tactics. This harmful provision must be removed from the spending bill,” Waters said in a written statement Thursday morning.

Although congressional Democrats are rallying against the Dodd-Frank modification, the Obama administration is likely not adding its full weight to that fight.

During the crafting of Dodd-Frank, the Treasury Department strongly opposed including the provision, which requires banks to spin off some of their derivatives operations. The language was ultimately included at the behest of former Senate Agriculture Chairwoman Blanche Lincoln, D-Ark. For the administration, removing the language might actually be a plus. At the same time, the White House can’t acknowledge that publicly, because it would be seen as caving to Wall Street.

Tom Cole of Oklahoma, the senior Republican appropriator who was managing floor debate of the rule, defended the spending package as a hard-fought compromise made with Senate Democrats and urged his colleagues to pass the measure.

Steny H. Hoyer of Maryland, the Democratic whip and a former appropriator, stopped short of vowing to oppose the spending plan, but urged Republicans to strike the Dodd-Frank and campaign finance provisions, which he said put the measure “at risk.”

“We have time to return to the Rules Committee, pass out a rule which strikes these two provisions, and pass the bill. In my opinion if that is done an overwhelming number of Democrats will vote to support the bill,” he said Thursday morning.

Later Thursday, Hoyer told reporters he was still undecided about how he would vote, and said he was waiting to hear the White House position.

Last-Minute Maneuvering

Republicans will need some Democratic votes to pass the measure, since a group of conservatives has vowed to vote against it.

Rep. John J. Duncan Jr., R-Tenn., a noted conservative, voted for the rule Thursday, but was clearly torn by the decision.

“For the first time ever in my time in Congress, I’m having a difficult time on this,” he said. “I’ve never voted for one of these omnibus end-of-the-year bills. I think it’s a terrible way to do business. I’m opposed to it from that standpoint. It’s always been a huge money bill with too much spending.”

Speaker John A. Boehner said Thursday that an eleventh hour, sprawling spending package was also not his preferred scenario but warned that if the House did not pass it Thursday, “we’re going to be here until Christmas.”

“Ideally, we would have been able to do this work one bill at a time,” Boehner told reporters, referring to a regular appropriations process. But he said his hand was forced by Senate Democrats, who did not pass a single appropriations bill.

The bill would fund 11 of the 12 appropriations bills with detailed spending plans through the end of fiscal 2015 and the Department of Homeland Security through Feb. 27, 2015.

The current continuing resolution (PL 113-164) expires at midnight, and lawmakers will need to pass some sort of spending measure to keep the lights on.

“We’re moving forward on the omnibus spending bill with passage expected this afternoon. However, in the unlikely event that we do not pass the omnibus, we’re prepared to move a continuing resolution to prevent a shutdown — details of which have not been decided,” said a House GOP leadership aide.

If the House approves the cromnibus, the chamber is expected to quickly pass a two-day stopgap bill, likely with a unanimous consent agreement, in order to allow for more time for the Senate to process and consider the bill.

By approving the rule on the spending plan, the House folded in an amendment from Education and Workforce Chairman John Kline, R-Mich., and ranking Democrat George Miller, D-Calif., regarding pension plans. It would allow severely underfunded plans to cut vested benefits, subject to approval by plan participants. It also would allow increases in annual premiums paid by some plans to the Pension Benefit Guaranty Corporation, and give the PBGC authority to take earlier action to save failing plans.