The House-Senate reconciliation bill has been passed. The bill contains a number of beneficial things and a number of suboptimal things, along with a couple of items that are no good at all (vis., a cut in real dollars on defense spending and an increase in deficit spending and so in national debt of highly dubious estimates, both in size and sign).
So now what?
President Donald Trump (R) offered to use his executive authority to limit spending beyond what’s in the Senate version of the bill, which is what the House passed last Thursday.
In the meetings, Russ Vought, Trump’s White House budget chief, also reassured lawmakers that the administration would use its authority to limit spending, according to people familiar with the conversations. Trump and his advisers have argued that Trump has the authority to refuse to spend money appropriated by Congress, a contention likely to be tested in court.
That’s nice, even if the courts uphold the specific actions (or most of them) Trump might take. At best though, these would be temporary measures, easily undone by a subsequent President.
Now what, then, are the 12 appropriations bills that the current crop of House Republicans have been promising to pass individually and on time for a couple of Congresses. The outline reconciliation bill represents ceilings on spending and tax rates, not floors, even though the Progressive-Democrats will howl that the levels are floors and so spending and tax rates still should go up.
The 12 appropriations bills are
- Military Construction, Veterans Affairs, and Related Agencies appropriations bill
- Defense appropriations bill
- Homeland Security appropriations bill
- State Department and Foreign Operations appropriations bill
- Interior and Environment appropriations bill
- Legislative Branch appropriations bill
- Agriculture, Rural Development, Food and Drug Administration, and Related Agencies appropriations bill
- Commerce, Justice, Science, and Related Agencies appropriations bill
- Energy and Water Development appropriations bill
- Labor, Health and Human Services, Education, and Related Agencies appropriations bill
- Transportation, Housing and Urban Development, and Related Agencies appropriations bill
- Financial Services and General Government appropriations bill
These are where real spending and tax rate reductions (not formally part of appropriations, but easily enough included by amendment) can—and must this time—occur. Military construction needs to be focused on facilities for housing our soldiers and on bases—new or modified—for housing more of our weapons systems and for our new weapons systems as they come on line. The VA needs no spending increases, it even could stand spending cuts. I’ve argued for its elimination altogether, and this would be a good time to do that.
State, with its more focused foreign aid spending and more tightly controlled embassies and consulates, can absorb reduced spending. After that, all of the appropriations bills, save Defense and Homeland Security, should get 10% cuts in spending across the board. Defense needs, badly, a 10% increase in real terms, and Homeland Security, given the success of the Trump administration—so far—in resecuring our borders, needs a 5% (vice Defense’s 10%) increase.
With all of that, Congress—the House especially—would have some choices to make, any of which would be to the benefit of our nation: statutorily require the vast bulk of the resulting budget surplus go specifically to Treasury to pay down our national debt, further reduce individual and corporate income tax rates and make permanent the existing temporary tax reductions, or some combination of the two.
Congressmen in both houses need now to focus the energy they spent arguing over spending and tax rate maneuvers in the runup to passing the reconciliation bill on achieving real cuts in spending and tax rates via the appropriations bills. And they need to quit dithering about it this time. Pass the bills individually and on time—no more omnibus bills, no more continuing resolutions. Achievement of this would make arguing over the debt ceiling irrelevant by making the debt ceiling itself irrelevant.
Trump could exercise his executive authority in real, proven terms: announce that he’ll veto any omnibus bills and any continuing resolution, even if it means Congress shuts down the Federal government with its failure to perform. And then do so if Congress actually does fail and cause a shutdown.