Bipartisan Budget Act of 2013

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Bipartisan Budget Act of 2013
Great Seal of the United States (obverse).svg
Long titleMaking continuing appropriations for fiscal year 2014, and for other purposes.
NicknamesBudget bill
Enacted bythe 113th United States Congress
Citations
Public law Pub. L. Tooltip Public Law (United States)  113–67 (text) (PDF)
Codification
Acts amended Balanced Budget and Emergency Deficit Control Act of 1985, and others
Legislative history

The Bipartisan Budget Act of 2013 (H.J.Res. 59; Pub. L. Tooltip Public Law (United States)  113–67 (text) (PDF)) is a federal statute concerning spending and the budget in the United States, that was signed into law by President Barack Obama on December 26, 2013. On December 10, 2013, pursuant to the provisions of the Continuing Appropriations Act, 2014 calling for a joint budget conference to work on possible compromises, Representative Paul Ryan and Senator Patty Murray announced a compromise that they had agreed to after extended discussions between them. The law raises the sequestration caps for fiscal years 2014 and 2015, in return for extending the imposition of the caps into 2022 and 2023, and miscellaneous savings elsewhere in the budget. Overall, the bill is projected to lower the deficit by $23 billion over the long term.

Contents

In forming the deal behind the bill that was passed, Ryan and Murray explicitly avoided trying to find a "grand bargain", in which Democrats would buy into reduced entitlements spending while Republicans would agree to higher tax rates, as several past negotiations along such lines had failed. [1] Instead, in Ryan's words, negotiations sought to "focus on common ground ... to get some minimal accomplishments". [1] The deal did represent a rare example of bipartisanship during this period [2] and promised to end for a while the last-minute, crisis-driven budget battles that had consumed Congress for much of the prior three years. [3]

Provisions

The bill caps the federal government's overall discretionary spending for Fiscal Year 2014 at $1.012 trillion and for Fiscal Year 2015 at $1.014. [4] [5]

This deal would eliminate some of the spending cuts required by the sequester by $45 billion of the cuts scheduled to happen in January 2014 and $18 billion of the cuts scheduled to happen in 2015. Federal spending would thus be larger in these two years, but would be less in subsequent years until 2023, [4] due to other provisions such as imposing sequester cuts in 2022 and 2023, raising airline fees and changing the pension contribution requirements of new federal workers. Paul Ryan said that the bill would lower the deficit by $23 billion overall. [6] The increased spending for 2014 and 2015 was spread evenly between defense spending and non-defense discretionary spending, leaving the cuts to mandatory spending unchanged. [7] The bill did not make any changes to entitlement programs. [6]

The spending reduction provisions contained in the bill include:

The bill only specifies overall spending levels; Congress had only four weeks after the deal to produce a full set of appropriations bills containing the detailed breakdown of how the money should be spent. This was in contrast to the previous fiscal year in which a full-year continuing resolution preserved FY 2012 spending levels without the chance to make reductions in specific programs, which triggered the across-the-board sequestration cuts. As Senator Barbara Mikulski said following its passage, "We finally get a chance to be appropriators." [3]

Legislative history

Continuing Appropriations Resolution, 2014

The original text of the bill was the Continuing Appropriations Resolution, 2014, a continuing resolution that would appropriate funds for the 2014 fiscal year. [11] Though versions of the bill passed each house of Congress, the House and Senate were not able to reconcile the bills and pass a compromise measure. The original continuing resolution passed the House on September 20, 2013. When it first passed the House, the bill included provisions that would defund the Affordable Care Act. The Senate refused to adopt the resolution because of those provisions, and amended the bill to remove them before passing it. The House replaced the provisions that would defund the Affordable Care Act. The Senate refused to take up the measure and no continuing resolution of any kind was passed. This resulted in the government shutdown that began on October 1, 2013. A different bill, the Continuing Appropriations Act, 2014, was signed into law on October 17, 2013, and ended the shutdown.

Bipartisan Budget Act of 2013

Patty Murray, official portrait, 113th Congress.jpg
Paul Ryan, 113th Congress.png
Senator Patty Murray (D-WA) and Representative Paul Ryan (R-WI) negotiated the proposed fiscal year 2014 budget deal.

Two months later, the bill became the vehicle for the compromise budget proposal of Representative Paul Ryan and Senator Patty Murray, known as the Bipartisan Budget Act of 2013. The bill was amended to completely replace the existing text of H.J.Res. 59 with the text of the "Bipartisan Budget Act of 2013".

The deal was proposed by negotiators Senator Patty Murray and Representative Paul Ryan on December 10, 2013. [12]

The House Committee on the Rules met at 2pm on December 11, 2013 to decide on a rule to govern the debate on H.J.Res. 59, which would be amended to contain the text of the Bipartisan Budget Act of 2013. [13] The rule enabled the House to consider H.J.Res. 59 as it had last been sent to them by the Senate, on October 1, 2013, prior to the 2013 federal government shutdown. The rule also made two amendments in order. The first amendment is the text of the Bipartisan Budget Act of 2013, which would completely replace the existing text of H.J.Res. 59. [13] The second amendment is the addition of the Pathway for SGR Reform Act of 2013 to the bill to maintain medicare reimbursements to physicians. [13] The House Committee on the Rules passed the rules by a vote of 9-3 on December 11, 2013. The Republican-controlled committee refused to allow Democrats to offer an extension of unemployment benefit for long term unemployed people. [14]

President Barack Obama signing the bill in Kailua, Honolulu County, Hawaii, while on family vacation. President Obama signing the Bipartisan Budget Act of 2013.jpg
President Barack Obama signing the bill in Kailua, Honolulu County, Hawaii, while on family vacation.

The House approved the budget act 332-94 on December 12, with 163 Democrats joining 169 Republican to vote in favor, while 62 Republicans and 32 Democrats voted against the bill. [16]

The Senate support for the bill was more partisan than in the House, with most Republicans opposed to it. However, cloture on the bill was gained on December 17 by a 67–33 vote, with 12 Republicans voting to let the bill go forward. [17] Final Senate passage came on December 18 by a 64–36 margin, [17] with 9 Republicans supporting it along with all 55 Democrats and aligned independents. [2]

President Obama signed the bill into law on December 26, 2013. [15]

Debate

Reactions from Republican politicians

Some Republicans opposed the deal because they wanted the budget to focus on reducing government spending, not increasing government revenue through increased fees. [18] Some Republicans opposed the increased airline ticket fees as a tax increase. [8]

Republican Representative Mick Mulvaney opposed the agreement but did not blame Ryan for it, instead saying that the problem was too few conservatives had been elected to Congress to pass a budget with a greater focus on debt reduction. [19] Mulvaney said that he expected the budget deal to pass because "it was designed to get the support of defense hawks and appropriators and Democrats," not conservatives. [6] Republican Raul Labrador criticized the "terrible plan", saying that "it makes promises to the American people that are false. Today the Democrats realized they were right all along, that we would never hold the line on the sequester." [6] Some Republicans wanted Speaker Boehner to pursue a temporary measure that would cover the rest of Fiscal Year 2014 at the level set by the sequester, $967 billion, rather than pass this budget deal, which would have $45 billion in additional spending. [19]

Republicans who planned to vote in favor of the bill or were leaning towards doing so cited the bill as being practical for the divided Congress. Representative Steve Womack said that "it achieves most of the things we would like to see when we have divided government." [6]

2016 proposed Republican presidential candidates

The media reported on the opinions of the budget deal of proposed or likely Republican candidates for President in 2016. [19] Paul Ryan was the Vice-Presidential candidate in 2012 and co-authored the proposed budget deal. He said that he was "proud" of the agreement because "it reduces the deficit - without raising taxes." [7] Senators Rand Paul and Marco Rubio, considered likely Republicans candidates for President in 2016, were both against the deal. [19] Rubio said that the proposal "continues Washington's irresponsible budgeting decisions" because it "cancels earlier spending reductions, instead of making some tough decisions about how to tackle our long-term fiscal challenges caused by runaway Washington spending." [12]

Reactions from Democratic politicians

Some people believed House Democrats would pass the deal as a way to reduce the sequester cuts. [18] However, the ranking Democrat on the House Budget Committee Chris Van Hollen (D-MD) told a morning news show on December 12, 2013, that "members of his party are outraged that House Republicans are planning to adjourn without addressing unemployment benefits." [20]

President Barack Obama announced his support for the deal on December 10, 2013, calling the deal "balanced". [18]

Reactions from commentators and policy groups

Ezra Klein said in a column that "the deal denies both Republicans and Democrats what they want most. Republicans didn't get any changes to Medicare and Social Security – much less any structural ones. Democrats didn't get any new taxes." [7] According to Klein, "the deal is possible only because there are many Republicans who really hate the defense cuts." [7]

Advocacy groups Heritage Action, the Club for Growth, and FreedomWorks all opposed the budget deal. [6] Speaker Boehner criticized those groups for their opposition to the compromise. [6]

Amendments

Proposed

Senator Mark Pryor introduced the bill "To repeal section 403 of the Bipartisan Budget Act of 2013 (S. 1963; 113th Congress)" on January 27, 2014. [21] The bill would repeal the provision of the Bipartisan Budget Act of 2013 that makes changes to the cost of living allowance to military veterans. [22] The Congressional Budget Office estimated that enacting S. 1963 would increase direct spending by $6.813 billion. [23]

Shared links relevant to the Continuing Resolution and the proposed budget:

Links relevant to the proposed 2014 budget:

Related Research Articles

In the United States, a continuing resolution is a type of appropriations legislation. An appropriations bill is a bill that appropriates money to specific federal government departments, agencies, and programs. The money provides funding for operations, personnel, equipment, and activities. Regular appropriations bills are passed annually, with the funding they provide covering one fiscal year. The fiscal year is the accounting period of the federal government, which runs from October 1 to September 30 of the following year.

The 2012 United States federal budget was the budget to fund government operations for the fiscal year 2012, which lasted from October 1, 2011 through September 30, 2012. The original spending request was issued by President Barack Obama in February 2011. That April, the Republican-held House of Representatives announced a competing plan, The Path to Prosperity, emboldened by a major victory in the 2010 Congressional elections associated with the Tea Party movement. The budget plans were both intended to focus on deficit reduction, but differed in their changes to taxation, entitlement programs, defense spending, and research funding.

<span class="mw-page-title-main">Budget Control Act of 2011</span> United States law

The Budget Control Act of 2011 is a federal statute enacted by the 112th United States Congress and signed into law by US President Barack Obama on August 2, 2011. The Act brought conclusion to the 2011 US debt-ceiling crisis.

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The 2014 United States federal budget is the budget to fund government operations for the fiscal year (FY) 2014, which began on October 1, 2013 and ended on September 30, 2014.

<span class="mw-page-title-main">Continuing Appropriations Act, 2014</span> United States funding law

The Continuing Appropriations Act, 2014 is a law used to resolve both the United States federal government shutdown of 2013 and the United States debt-ceiling crisis of 2013. After the Republican-led House of Representatives could not agree on an originating resolution to end the government crisis, as had been agreed, the Democratic-led Senate used bill H.R. 2775 to resolve the impasse and to satisfy the Origination Clause requirement of Article One of the United States Constitution, which requires that revenue bills must originate in the House of Representatives. Traditionally, appropriation bills also originate in the House of Representatives.

<span class="mw-page-title-main">Continuing Appropriations Resolution, 2014</span>

The Continuing Appropriations Resolution, 2014 is a bill that was introduced into the United States House of Representatives on September 10, 2013. The original text of the bill was for a continuing resolution that would make continuing appropriations for the fiscal year 2014 United States federal budget. Though versions of the bill passed each house of Congress, the House and Senate were not able to reconcile the bills and pass a compromise measure.

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<span class="mw-page-title-main">Consolidated Appropriations Act, 2014</span> United States bill

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<span class="mw-page-title-main">Appropriations bill (United States)</span> Bill which allocates government spending

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<span class="mw-page-title-main">S. 1963 (113th Congress)</span>

The bill To repeal section 403 of the Bipartisan Budget Act of 2013 is a bill that would repeal the provision of the Bipartisan Budget Act of 2013 that makes changes to the cost of living allowance to military veterans.

<span class="mw-page-title-main">2015 United States federal budget</span> U.S. budget from October 1, 2014 to September 30, 2015

The 2015 United States federal budget was the federal budget for fiscal year 2015, which runs from October 1, 2014 to September 30, 2015. The budget takes the form of a budget resolution which must be agreed to by both the United States House of Representatives and the United States Senate in order to become final, but never receives the signature or veto of the President of the United States and does not become law. Until both the House and the Senate pass the same concurrent resolution, no final budget exists. Actual U.S. federal government spending will occur through later appropriations legislation that would be signed into law.

Every year, the United States Congress is responsible for writing, passing, reconciling, and submitting to the President of the United States a series of appropriations bills that appropriate money to specific federal government departments, agencies, and programs for their use to operate in the subsequent fiscal year. The money provides funding for operations, personnel, equipment, and activities. In 2014, Congress was responsible for passing the appropriations bills that would fund the federal government in fiscal year 2015, which runs from October 1, 2014, to September 30, 2015.

<span class="mw-page-title-main">Continuing Appropriations Resolution, 2015</span>

The Continuing Appropriations Resolution, 2015 is a continuing resolution and United States public law that funded the federal government of the United States through December 11, 2014 by appropriating $1 trillion.

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<span class="mw-page-title-main">Consolidated Appropriations Act, 2016</span> Omnibus spending bill, passed by the US Congress in 2015

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References

  1. 1 2 Montgomery, Lori (December 8, 2013). "Budget deal expected this week amounts to a cease-fire as sides move to avert a standoff". The Washington Post .
  2. 1 2 Barrett, Ted; Cohen, Tom (December 18, 2013). "Senate approves budget, sends to Obama". CNN . Retrieved December 20, 2013.
  3. 1 2 Weisman, Jonathan (December 19, 2013). "Budget Vote Passes the Details to Two Panels". The New York Times . p. A26.
  4. 1 2 3 4 5 6 7 8 9 10 Desjardins, Lisa (December 10, 2013). "The budget deal in plain English". CNN. Archived from the original on December 11, 2013. Retrieved December 11, 2013.
  5. ↑ "Archived copy" (PDF). Archived from the original (PDF) on December 28, 2013. Retrieved December 18, 2013.{{cite web}}: CS1 maint: archived copy as title (link)
  6. 1 2 3 4 5 6 7 Eric Wasson; Russell Berman (December 11, 2013). "Ryan deal gets positive review at closed-door GOP conference". The Hill. Retrieved December 11, 2013.
  7. 1 2 3 4 5 Klein, Ezra (December 10, 2013). "Here's what's in Paul Ryan and Patty Murray's mini-budget deal". Washington Post. Retrieved December 11, 2013.
  8. 1 2 3 4 5 6 Wasson, Erik (December 11, 2013). "Airlines win concessions in budget deal". The Hill. Retrieved December 11, 2013.
  9. ↑ Laing, Keith (December 11, 2013). "Air tax increased $3.10 in budget deal". The Hill. Retrieved December 11, 2013.
  10. ↑ "Bipartisan Budget Act of 2013". Congressional Budget Office. December 11, 2013. Retrieved December 19, 2013.
  11. ↑ "H.J.Res 59 - Summary". United States Congress. Retrieved September 20, 2013.
  12. 1 2 Lisa desjardins; Deirdre Walsh (December 10, 2013). "Budget deal aims to avert another shutdown". CNN. Retrieved December 11, 2013.
  13. 1 2 3 "Senate amendment to H.J.Res. 59". House Committee on the Rules. Archived from the original on December 16, 2013. Retrieved December 12, 2013.
  14. ↑ "Senate amendment to H.J. Res. 59 - Continuing Appropriations Resolution, 2014". House Committee on the Rules. Archived from the original on December 16, 2013. Retrieved December 13, 2013.
  15. 1 2 Kaplan, Rebecca (December 26, 2013). "Obama signs budget deal, defense authorization bills into law". CBS News . Retrieved December 26, 2013.
  16. ↑ "Final Vote Results for Roll Call 640". Office of the Clerk of the U.S. House of Representatives. Retrieved December 13, 2013.
  17. 1 2 Hunt, Kasie; Dann, Carrie (December 18, 2013). "Senate approves budget deal, sends to Obama's desk". NBC News . Retrieved December 20, 2013.
  18. 1 2 3 Kasperowicz, Pete (December 11, 2013). "Wednesday: Assessing the budget deal". The Hill. Retrieved December 11, 2013.
  19. 1 2 3 4 Wasson, Erik (December 11, 2013). "Conservatives: Ryan not tarnished by 'bad' deal". The Hill. Retrieved December 11, 2013.
  20. ↑ Cusack, Bob (December 12, 2013). "Van Hollen: 'Too early to say' if most Democrats will back budget deal". The Hill. Retrieved December 12, 2013.
  21. ↑ "S. 1963 - All Actions". United States Congression. Retrieved February 11, 2014.
  22. ↑ Ramsey Cox; Jeremy Herb (February 10, 2014). "Senate starts consideration of veterans' pension cuts". The Hill. Retrieved February 11, 2014.
  23. ↑ "S. 1963 - CBO" (PDF). Congressional Budget Office. Retrieved February 11, 2014.

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