Congress has returned from its August recess for a brief legislative session before they are expected to break again to campaign ahead of the midterm elections in November that may well determine control of both the House and the Senate. During this time, all eyes are on funding the government through a short-term continuing resolution (CR) before the end of the fiscal year on September 30. Lawmakers have said the stopgap would likely fund the government through December 16.
Complicating the CR negotiations, however, is the agreement between Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) to include Manchin’s proposal on reforming energy permits in the spending deal. This agreement between the two Democratic senators is what secured Manchin’s support – and as a result, its passage – of the Inflation Reduction Act earlier this summer. It is too early to know if Manchin’s proposal will ultimately remain in the final CR, as senators continue to evaluate it, but Schumer has set up a procedural vote for early this week.
Earlier this week, Schumer announced that the Senate would remain in session for the first two weeks of October to pass the National Defense Authorization Act (NDAA), a must-pass bill that cleared the Senate Armed Services Committee in June. However, we expect Schumer will fail to move the NDAA forward in this window and will relent to pressure to allow senators to recess so they can campaign in their home states ahead of the midterms. If so, the NDAA and other appropriations deals are likely to be finalized during the lame duck session (after the election but before the new Congress is seated) at the end of this year.
As always, our team will be monitoring all of this closely and will update you as things progress.
Sincerely,
The Bridge Team