Members of the House and Senate are scheduled to return to Washington on September 6 for the last stretch of legislating before returning to their states and districts to campaign ahead of Election Day. While items ranging from the Water Resources Development Act (WRDA) to energy reform legislation could receive attention on Capitol Hill, the one bill that Congress must pass during September is a measure to keep the federal government operating beyond the onset of the 2017 fiscal year on October 1.
To date lawmakers have not given final approval to any of the 12 annual appropriations bills that would fund federal operations next year, but there is also little appetite on Capitol Hill for a budget standoff that could lead to a government shutdown if no spending plan is approved before October 1. Congress is therefore widely expected to pass a continuing resolution (CR) during September that will temporarily extend FY16 spending levels into the new fiscal year, with the expectation that a final FY17 omnibus appropriations plan will be considered and approved sometime after voters go to the polls in November.
Still unresolved at this point is the length of the CR Congress will consider in September, and the answer to that question could have major implications for water infrastructure funding efforts. Because the CR will likely provide a simple extension of FY16 programmatic funding levels, the measure will probably not include funds for new programs that are in line to receive their first dollars in 2017 – such as the Water Infrastructure Finance and Innovation Act (WIFIA) pilot program at EPA. So the longer into the new fiscal year that current funding levels are extended, the longer water and wastewater utilities will have to wait to have an opportunity to access WIFIA loans.
Also affected by an extended CR would be the Drinking Water State Revolving Fund (DWSRF), which appropriators in both the House and Senate have proposed increasing in FY17. Unless lawmakers include a separate funding boost for the program as part of a CR, then states could face a months-long wait before having a chance to access these increased DWSRF dollars.
There currently appear to be two leading options for the length of the CR, with one option having Congress extend FY16 funding through late November or early December with the goal of passing an FY17 omnibus funding bill during the post-election lame duck session. But another option reportedly under consideration would have the CR last through early next year, thus avoiding the need to address appropriations during the lame duck but leaving the ultimate FY17 spending decisions up to the new crop of congressmen and senators who will be elected in November.
Republicans currently control both the House and Senate, so leaders of that party would largely guide the development of an FY17 omnibus appropriations bill written during the lame duck session. But with Democrats increasingly optimistic about winning enough Senate seats on Election Day to take control of that chamber, punting final FY17 spending decisions to next year could give Democrats increased influence over the final FY17 budget. Republicans on Capitol Hill may not want to risk this, so the GOP’s confidence, as of mid-September, in the party’s prospects for holding onto control of the Senate may influence the decision on the length of the CR – and how soon water utilities will have a chance to access WIFIA loans.