The U.S. Congress faces multiple spending battles leading up to the fall. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Congress must pass all 12 annual appropriations bills, which lawmakers have not done since the 1990s, to avoid an automatic 1% cut to discretionary spending. Should this happen, how the cuts are implemented will be up to House and Senate appropriators, who will then need to compete for a smaller pool of money. Figure on especially intense fights over funding for the Department of Justice, the FBI, the IRS, and Customs and Border Protection.
Don’t be surprised if lawmakers resort to emergency spending packages for things like natural disaster relief and defense funding, especially military aid for Ukraine. The additional money would not count against the spending caps, so long as it’s reserved for “emergency” purposes. While Democrats are united in support of this strategy, Republicans are divided on circumventing the caps.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Meanwhile, lawmakers face several other looming legislative deadlines:
- The monster five-year farm bill, which covers everything from crop subsidies and insurance to agricultural research and the food stamp program. Historically, the farm bill has been a bipartisan affair, but fights over work requirements for food stamp recipients and other factors have made passage this year more difficult.
- Federal Aviation Administration reauthorization, also a five-year bill. Democrats are pushing to eliminate airline “junk fees,” such as baggage fees and extra charges for changing and canceling flights. They are also advocating for a bill of rights for passengers that would provide better compensation for delays and cancellations. But it’s unclear whether they can get enough Republicans on board with these ideas.
- The Pandemic and All-Hazards Preparedness and Advancing Innovation Act, first passed in 2019 and now up for renewal. Intended to promote medical emergency and response capabilities, the measure will be subject to increased scrutiny by Republicans, who want to limit some activities of federal health agencies.
- The Coast Guard Authorization Act, which authorizes funding and policy for the Coast Guard, one of the nation’s six armed forces. This one is expected to be a fairly easy lift for lawmakers, but unforeseen issues could still crop up.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
-
-
What Are the Types of Mutual Funds?
Answering the question "what are the types of mutual funds" will help you to choose the right options for your specific investing needs and goals.
-
Millionaire Tax Evaders Beware: The IRS Is Coming
Tax Evasion The IRS is targeting 1,600 millionaire tax evaders and 575 partnerships. Are you on the agency’s priority list?
-
Investments In U.S.-Made Drone Technology Are Gaining Strength — The Kiplinger Letter
The Kiplinger Letter The U.S.-Made drone aircraft, software sector has been boosted by a crackdown on Chinese drones amid security concerns.
-
Congress Races to Pass a Spending Bill as a Gov. Shutdown Looms — The Kiplinger Letter
The Kiplinger Letter McCarthy faces push-back from Congress and moderate House Republicans as they move to avoid a Gov. shutdown
-
State Legislators Are Switching Parties at a Fast Rate: Kiplinger Economic Forecasts
Economic Forecasts Switching is pacing well above the 30-year average, with Dems losing more than the GOP.
-
Falling Prices in China Could Be a Boon For the U.S.: Kiplinger Economic Forecasts
Economic Forecasts Falling prices in China could be a boon for the U.S. as the country's weakened economy shows no clear signs of improvement.
-
Could Donald Trump's Trials Affect His Reelection Bid?: Kiplinger Economic Forecasts
Economic Forecasts So far, Trump's indictments haven't dented his popularity among Republican voters.
-
Key U.S. Foreign Policy Challenges in Power Struggle with China and Russia: Kiplinger Forecasts
Economic Forecasts The U.S. faces a power struggle with China and Russia, with challenges like controlling exports of critical technologies and responding to the war on Ukraine.
-
Do UFOs Exist? Congress Will Push Defense Department to Tell All: Kiplinger Economic Forecasts
Economic Forecasts After a first round of hearings, Congress will continue to push the Department of Defense to share what it knows about UFOs and UAPs.
-
Clean Energy Backlog Eases with Groundbreaking New Rule: Kiplinger Economic Forecasts
Economic Forecasts The Federal Energy Regulatory Commission is opening up the pathway to the electric grid, easing a clean energy backlog with a groundbreaking new rule.
