House To Return To Return For Budget Decisions

As While DC has been dominated this week by events unfolding in Afghanistan, next week the House returns for a short session to take action on the Budget Resolution and may also consider a voting rights bill and the Senate passed infrastructure bill, but it is complicated.

The House has been in recess for their traditional August break, but after the Senate passed a Budget Resolution it placed pressure on Speaker Pelosi to bring back the House to take similar action.

The Budget Resolution in a non-binding blueprint where Congress sets the ground rules for approving a Budget Reconciliation Bill. Under the Budget Act of 1974 after the Congress approves a Budget Resolution it can then pass a Budget Reconciliation Bill to make changes in existing law that allows the government to operate within the framework created by the Budget Resolution.

In plain English the Democrats can’t pass the $3.5T Reconciliation Bill unless it is preceded by a Budget Resolution. It is all sort of Kabuki as the Budget Resolution does nothing and does not even guarantee that there will be a Budget Reconciliation Bill. Moderate Senators like Manchin and Sinema, who voted for the Budget Resolution, have made clear they will not be support a $3.5T Budget Reconciliation Bill. Hence, even though the Resolution would allow for a $3.5T bill it could come in much smaller and still be allowed under the Congressional Budget rules.

Next week Speaker Pelosi plans to force a vote on the Senate passed Budget Resolution, but not have a vote on the Senate passed $1T infrastructure bill. The Democrats have a razor thin majority of only 3 votes, and 9 moderate House Democrats have publicly declared that they will not vote for the $3.5T Budget Resolution unless there is a vote on the Senate Infrastructure Bill. This is a very high stakes game of chicken with big implications.

Speaker Pelosi has a good track record of winning, and there is a lot of skepticism as to the ability of the 9 moderates to stick to their guns; but Friday morning they declared they are committed to their position – should be an interesting week in the House of Representatives.

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