The US House passed a $1.4-trillion spending bill on Tuesday intended to fund the US government through next September, narrowly avoiding a government shutdown akin to last year’s political crisis.
The budget was presented and voted upon in two separate parts, out of political and tactical reasons. The part that focused on domestic issues passed with a 297-120 vote. The second part, which funds the military and Department of Homeland Security projects, passed with a 280-138 vote.
Tax Credit Extenders
A major part of the spending bill focuses on taxes and tax credits. It secures a $39-billion package of tax breaks for specific narrow industries, such as craft brewers and distillers, renewable energy and others. The package passed the vote despite criticism from the Committee for a Responsible Federal Budget that it will add some $500 billion to US national debt over the next decade.
Obamacare Repeal
In particular, the new spending bill includes a $428-billion tax cut intended to repeal three of the Affordable Healthcare Act (aka ‘Obamacare’) taxes over the next 10 years.
Specifically, the bill repeals the tax on high-cost health insurance benefits, known informally as ‘Cadillac plans,’ as well as a tax on medical devices and the Health Insurance Tax.
Domestic Funding
The Democrats achieved a number of domestic spending victories, including 3.1 percent payment increase for federal civilian employees.
The Dems also secured $25 million for the first stage of gun violence research, overcoming two-decades of gun lobby opposition, as well as $425 million in election security grants, and a $208 million boost in funding for the Environmental Protection Agency.
The bill also provides health care and pension funding for some 100,000 retired union coal miners.
Pentagon Budget
While Dems celebrate domestic funding points, the Republicans tout increased Pentagon funding. According to the new budget, the Defense Department will get a $700-billion Pentagon budget; a $22 billion funding increase compared to the previous year.
The Republicans secured some abortion- and gun rights-related provisions.
Border Wall
The second part of the project gave the Trump administration $1.4 billion toward the border wall – an amount equal to last year’s fund and a far cry from Trump’s demand of $8.6 billion. Officials from the White House Office of Management and Budget asserted that the administration will retain the power to siphon funding from other accounts, similar to what was done earlier this year.
The border wall provision was decried by Hispanic lawmakers, but they were unable to prevent it from happening. An AP report suggests that Dems traded border wall funding for domestic spending provisions.
Tobacco Buying Age
The spending bill also includes a nationwide increase in the age that tobacco can be purchased - from 18 to 21 years. The measure, spearheaded by Senate Majority Leader Mitch McConnell, also covers the purchase of electronic cigarettes and vapes.
