Key Takeaways

  • Congress funds government until February 18, 2022.  Can Congress reach an agreement before the next crisis to update spending priorities?
  • Debt ceiling is the next crisis with no strategy in place.
  • Jay Powell awaits hearings and confirmation by the Senate.

Busy December

Last week the Congress avoided a government shutdown by passing a Continuing Resolution (CR) that runs until February 18 of next year.  The Congress is supposed to annually review every department of government and then approve a new budget each year to increase or reduce spending on programs.  The appropriations process is designed to allow Congress to review and change spending priorities.  However, with the high level of discord in Washington Congress has been unable to approve the various departmental budgets, and instead has passed a series of CRs that maintain funding at the same level as the previous year.  

The new CR, which passed the Senate on a 69 to 28 bipartisan vote, run until 1Q22, is designed to allow the Congressional Appropriations Committee time to pass appropriations bills to fund government agencies at a level appropriate for their 2022 missions.  In the past when there has been deadlock over appropriations the partisan split between Republicans a...

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