House to vote on short-term government funding bill

• Key insight: The House’s top priority fresh off August recess is considering the Continuing Resolution to keep the government fully funded until December 11. 
• Forward look: The House will try to pass the bill under a suspension of the rules, speeding the process for a vote but requiring a two-thirds majority to pass. 
• What’s at stake: The short-term funding bill also includes provisions relate to the Small Business Administration and farm insurance programs. 

WASHINGTON — The House is back briefly this week, and the top item on the agenda will be passing a continuing resolution to avoid a government shutdown on the first of October. 

Processing Content

Passing this continuing resolution should be less dramatic than some others in recent memory — before going on recess, the Senate passed the bill in a 90-6 vote. The vote is tentatively scheduled for Tuesday, though that scheduling is subject to change.

The bill’s primary feature is keeping the government funded at existing levels until Dec. 11, thereby avoiding a lapse for several programs that bankers value. The bill does include a provision that further curbs President Donald Trump’s ability to restrict grants to states that voted against him, part of language negotiated into the CR by Democrats. 

The CR also approves funding for the Agricultural Credit Insurance Fund Program, an important backstop for rural, agricultural banks. Having that program run out of funding during harvest season could jeopardize agricultural loans from farm banks, just as farmers need liquidity to prepare for next season’s crop.

The program provides insurance and guarantees that incentivize and enable lenders to extend credit to farmers and ranchers, making its continued operation particularly important at a time when parts of the agricultural sector are already facing pressure from low commodity prices and higher input costs.

The CR also allows for additional spending in the Small Business Administration loan programs, preserving the agency’s ability to continue guaranteeing loans to small businesses. Those programs are an important source of fee income and lending opportunities for community banks, many of which participate in SBA lending programs that allow them to extend credit to borrowers who might not otherwise qualify for conventional financing.

The legislation would also prevent the Office of Management and Budget from overhauling its grantmaking process. That overhaul would politicize grant disbursement, making it possible for the White House to curtail federal spending to areas that do not vote for the president. Democrats had pushed for the restrictions after repeatedly accusing the Trump administration of using federal funds as leverage against Democratic-led states and cities.

Read more:

The resolution would also preserve food assistance programs, like the Supplemental Nutrition Assistance Program, as well as disaster relief funding. 

The House is expected to consider the CR under a suspension of the rules, a maneuver that will fast-track the vote but requires a two-thirds majority for the bill to pass. The Senate remains out of session, and the House will leave again for a district work period starting Thursday. Both chambers are back in session on Sept. 14.