Consolidated Appropriations Act, 2018

Consolidated Appropriations Act, 2018 was a major federal appropriations bill passed by the 115th United States Congress and signed into law by President Donald Trump. The $1.3 trillion legislation funded the operations of the Federal government of the United States through the remainder of fiscal year 2018, averting a potential government shutdown. The massive omnibus package combined all twelve regular appropriations bills and included significant policy riders alongside its spending provisions. Its passage followed months of negotiation and several short-term continuing resolutions due to political disagreements over issues like DACA and border security funding.

Background and legislative history

The legislative path for the 2018 appropriations process was fraught with partisan conflict and complicated by the concurrent passage of the Tax Cuts and Jobs Act of 2017. Throughout late 2017 and early 2018, Congress relied on a series of short-term continuing resolutions to keep the government open as leaders from both parties negotiated. Key figures in the negotiations included Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, and House Minority Leader Nancy Pelosi. A brief shutdown occurred in February 2018 after Senator Rand Paul protested the lack of budget constraints, but it ended quickly. Final negotiations intensified in March, leading to the release of the 2,232-page bill just days before a funding deadline, forcing a swift vote in both the House and the Senate.

Major provisions and funding allocations

The act provided substantial increases in both defense and domestic spending, breaking previously set budget caps from the Budget Control Act of 2011. It allocated approximately $700 billion for the Department of Defense, including funding for increased troop levels, new equipment like the F-35 Lightning II, and a 2.4% pay raise for military personnel. Non-defense discretionary spending saw a significant boost, with major funding increases for the National Institutes of Health, the Centers for Disease Control and Prevention, infrastructure projects through the Department of Transportation, and grants for local law enforcement under the Department of Justice. The bill also included $1.6 billion for initial construction of a wall along the U.S.-Mexico border, far less than the White House had initially requested.

Tax provisions (including the Tax Cuts and Jobs Act impact)

While primarily a spending bill, the act contained several important technical corrections and extensions related to the recently enacted Tax Cuts and Jobs Act of 2017. It included a provision known as the "grain glitch" fix, which corrected an unintended advantage for agricultural cooperatives over private companies. The legislation also extended a number of expiring tax provisions, such as the energy credit for fuel cells and the New Markets Tax Credit. Furthermore, it provided funding for the Internal Revenue Service to implement the massive changes required by the new tax code and addressed issues with the taxation of Alaska Native corporations and the treatment of REITs.

Controversies and political debate

The bill faced intense criticism from both the progressive left and the conservative right. Many members of the Freedom Caucus and some prominent conservatives like Senator Rand Paul denounced the legislation for its enormous cost, lack of funding for a border wall, and failure to address the DACA program. President Donald Trump initially threatened a veto, citing the absence of a Dream Act solution and more funding for the Border Patrol, but ultimately signed it. Democrats criticized the increased military spending and the inclusion of the Hyde Amendment, which restricts federal funding for abortion. The rushed voting process, with limited time for lawmakers to read the lengthy text, was also a major point of contention.

Implementation and effects

Upon enactment, federal agencies began executing the new spending directives, which ended the pattern of governing by short-term stopgap measures for that fiscal year. The significant increases in funding for the National Institutes of Health and Department of Energy research accelerated various scientific initiatives. The bill's allocation for opioid crisis programs provided resources to the Department of Health and Human Services and state governments. However, the political fallout contributed to tensions within the Republican Party and set the stage for difficult appropriations battles in the subsequent fiscal year 2019. The legislation's long-term impact was also shaped by its contribution to rising federal deficits, a concern highlighted by the Congressional Budget Office.

Category:2018 in American law Category:Appropriations bills of the 115th United States Congress