When Congress returned after the December break, it needed to reach a spending agreement on government funding for the remainder of fiscal year 2018. Since October 2017, the government had been funded through a series of short-term Continuing Resolutions, which extended funding to March 23, 2018, when the President signed the $1.3 trillion Omnibus bill into law. Since that time, the White House has objected to the size of the spending bill and is considering using a tool called “rescission” to propose cuts to some of the spending approved in the Omnibus. This type of mechanism would require passage in both chambers and would have a chilling effect on future negotiations around spending. Both the House and Senate have moved forward with an aggressive schedule to consider fiscal year 2019 spending bills through regular order, so revisiting the fiscal year 2018 Omnibus is unlikely, but could impact spending levels considered for 2019.

The upcoming midterms will overshadow the legislative agenda through November with only those bills with bipartisan support having a chance of passage. One such area that is receiving increased attention by both parties is legislation to address the opioid epidemic. With more than 150 bills introduced and significant committee action, both Chambers would like to pass comprehensive opioid legislation before elections are held in November. Congress will also have to reauthorize the Farm Bill before the end of September or provide a short-term extension to continue the U.S. Department of Agriculture programs.