Congress Reaches Deal on FY17 Spending

By: National Low Income Housing Coalition (NLIHC)

Published: May 1, 2017

Republican and Democratic leaders in Congress announced late in the evening Sunday, April 30 that they reached a deal on a final FY17 spending package to fund the federal government through September and avert a government shutdown. The spending package is expected to be voted on in the House and Senate later this week before the current Continuing Resolution ends on May 5, a full seven months after the start of the fiscal year last October.

At more than $1.07 trillion, the final budget agreement upholds the bipartisan deal made in late 2015 to lift the spending caps required by Budget Control Act for defense and non-defense programs. The deal does not include any of the $18 billion in cuts requested by the Trump administration for non-defense programs, which include affordable housing and community development. While an additional $15 billion for defense and $1.5 billion for border security were included in the final package, these resources are allocated through a separate account for war operations that does not count against the spending caps.

Many of the “poison pill” riders that threatened to prevent a spending deal and to shut down the federal government were omitted. The deal provides no funding to begin construction of a wall with Mexico, does not restrict funding for sanctuary cities, preserves funding for Planned Parenthood and subsidies for the Affordable Care Act, and includes $2 billion in disaster relief for California, West Virginia, Louisiana, and North Carolina and a permanent fix to provide healthcare to retired coal miners.

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