Update on Status of FY11 Funding >>

March 21st, 2011

Update on Status of FY11 Funding

On Thursday, March 17th, Congress passed a sixth stop gap measure to temporarily fund government agencies and programs in FY11. The bill, House Joint Resolution (H.J. Res.) 48, funds the government through Friday, April 8, 2011, which will be more than six months into FY11. H.J. Res. 48 generally holds programs at the Bureau of Indian Affairs and Indian Health Service harmless from the $6 billion in spending cuts made in the Resolution.

We note, however, that the CR eliminates $2.6 billion in earmark account funding from programs at the Departments of Interior, Agriculture, and Justice. The cuts include a $1 million rescission that removes earmarks for specific tribal projects within the BIA’s Office of Indian Programs account. Again, these rescissions cut only earmarked funding that would have gone to specific projects. These cuts conform with both President Obama’s and the Congress’ pledge to ban earmarked funding.

While House Republicans remain deeply divided with the Obama Administration and Senate Democrats on the levels of FY11 spending, many members on both sides have indicated their preference for a final measure to fund the government through the end of the fiscal year. House Appropriations Committee Chairman Hal Rogers (R-KY) stated that “Our economy must not be threatened by perpetual government shutdowns — which create uncertainty and a loss of confidence for job-creators across the country. This CR provides us with an appropriate length of time for negotiations, makes good on our promise to the American people to cut spending, provides certainty and stability, and allows essential federal programs to continue while negotiations ensue.”

Congressmen and senators returned to their home districts on March 18th, but will return to Washington, D.C. on March 28th, when Congress will either come to a compromise on a final FY11 spending, pass yet another stop gap spending measure, or consider a government shutdown. Mapetsi will continue to monitor this situation and keep you informed on any changes.

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