News Flash

Budgeting

Posted on: September 24, 2021

Sept. 24 Federal Budget Update

SALT Deduction Cap & Budget Reconciliation Process Proceeding 
 
 Negotiations continue between the House and Senate on the topline price and included policies in the budget reconciliation package, including the status of the cap on SALT deductions. On Wednesday, President Joe Biden held several meetings with congressional members to come to an agreement.
 
 The House of Representatives is expected to vote on the Infrastructure Investment and Jobs Act next week but is unclear whether it has the votes for passage if components of the budget reconciliation are not ironed out by then.
 
 At a press availability on Thursday, Senate Majority Leader Chuck Schumer announced there was a framework in place to pay for the final agreement. However, further details were not provided and are not available at this time.
 
Appropriations & Debt Limit
 
 On Tuesday, the House of Representatives passed a short-term funding bill that would keep the government funded until December 3 and includes $28 billion for disaster relief and $6 billion for Afghan refugee resettlement. It also raises the debt limit through December 2022.
 
 Late on Thursday, Senator Schumer filed a cloture vote on the funding bill and it is scheduled for Monday. However, public reports indicate that the minority party is not expected to support it due to the increase in the debt limit and the stopgap measure will not clear the 60-vote threshold. It is unclear what happens next but it may require a party line vote in the Senate requiring an additional budget reconciliation process.
 
 The federal fiscal year ends on September 30 and the U.S. Treasury believes it will run out of borrowing authority in mid to late October. The Office of Management and Budget, per policy, is issuing guidance 7 days prior to a possible lapse in government funding.
 There is much happening and we will continue to monitor and keep you appraised.
 
Contact: Paul Penna, Legislative Analyst, ppenna@njlm.org, 609 695-3481, x110.

Facebook Twitter Email

Other News in Budgeting

Oct; 1: Federal Budget Update

Posted on: October 1, 2021

State FY 22 Budget Signed

Posted on: June 30, 2021

2022 Budget on Gov. Murphy's Desk

Posted on: June 28, 2021

State FY 22 Budget Introduced

Posted on: June 24, 2021

New Jersey SFY 2022 Budget Update

Posted on: April 30, 2021

FY 2021 State Budget-Municipal Interest

Posted on: February 24, 2021