Senate Committee Agrees to FY2016 Financial Services Appropriations Bill
Senate Now Has Chance to Debate Bill to Fund Treasury Dept., U.S. Judicial System and Small Business Programs; Offers Regulatory Relief to Community Banks
WASHINGTON, D.C. – The FY2016 Financial Services and General Government Appropriations Bill was today approved by the Senate Committee on Appropriations, completing committee-level action on the 12 annual funding bills for which the committee is responsible.
The $20.6 billion measure, which is $1.3 billion below the FY2015 enacted level and $4.0 billion below the President’s budget request, funds the U.S. Treasury Department, the Judiciary, Small Business Administration, Securities and Exchange Commission, Commodity Futures Trading Commission, and several other agencies. The bill includes policy provisions to rein in administration overreach, cut bureaucratic red tape, and protect the rights of the American people. It was approved on a 16-14 vote.
The Senate bill protects citizens’ rights to free speech and political involvement without fear of retribution from the Internal Revenue Service. It also includes provisions to increase transparency and accountability at the Consumer Financial Protection Bureau, and prohibit the Federal Communications Commission from regulating the Internet through its net-neutrality order. The bill also incorporates the Financial Regulatory Improvement Act of 2015, which was approved by the Senate Banking Committee in May.
“The agencies funded by this bill touch the lives of every American household. This legislation makes responsible choices to help ensure that federal actions are helpful and not burdensome,” said Appropriations Committee Chairman Thad Cochran (R-Miss.). “I appreciate the challenges in putting this bill together and commend Senator Boozman for his leadership in overcoming them to present the Senate with a strong bill for its consideration.”
“This bill reflects our commitment to putting our country on the path to fiscal responsibility and forcing Washington to tighten its belt just like hardworking American families,” said U.S. Senator John Boozman (R-Ark.), chairman of the Senate Financial Services and General Government Appropriations Subcommittee. “This is an important step in protecting taxpayer dollars, reining in government overreach and investing in the ideals of a free market while promoting financial security for future generations of Americans.”
Highlights of the Senate FY2016 Financial Services and General Government Appropriations Bill
Internal Revenue Service (IRS) – The bill provides $10.475 billion, a cut of $470 million below the FY2015 enacted level. This funding level will require the IRS to streamline its activities and prioritize available resources, including user fees, to perform core agency duties. The bill requires $2.247 billion be spent on Taxpayer Services, an increase of $90 million, to significantly improve the handling of identity theft cases and IRS response rates to telephone calls and correspondence from taxpayers.
In addition, to ensure accountability and transparency, the bill includes:
A prohibition on funds for bonuses or to rehire former employees unless employee conduct and tax compliance is given consideration;
A prohibition on funds for the IRS to target groups for regulatory scrutiny based on their ideological beliefs;
A prohibition on funds for the IRS to target individuals for exercising their First Amendment rights;
A prohibition on funds for the production of inappropriate videos and conferences.
Judiciary – The bill provides $6.9 billion for the federal courts, an increase of $163 million above the FY2015 enacted level. This will provide sufficient funding for all federal court activities, including timely and efficient processing of federal cases, court security, and supervision of offenders and defendants.
Small Business Administration (SBA) – The bill contains $849 million for the SBA to provide assistance to small businesses, expand the economy, and increase job growth for unemployed and underemployed Americans. The bill fully funds business loans at $156 million. It provides $187 million to fully fund disaster loan implementation costs in order to quickly and efficiently provide assistance to families and small businesses affected by natural disasters. The bill also funds several valuable programs, including $115 million for Small Business Development Centers, $11.45 million for veterans outreach programs, and $10.5 million for SCORE, formerly the Service Corps of Retired Executives.
General Services Administration (GSA) – The bill allows GSA to spend $8.3 billion of the Federal Buildings Fund, $934 million less than the FY2015 enacted level. This account provides construction and repair funding for federal buildings, rent payments for privately-owned office space leased by the government, and operations and maintenance costs for buildings owned by federal government agencies across the nation.
Office of Personnel Management (OPM) – The bill contains $264.5 million for OPM, an increase of $24 million or 10 percent above the FY2015 enacted level—most of which will be used to address IT security vulnerabilities. The bill fully funds the President’s requested increase for IT security improvements at the agency, while requiring OPM to work with Office of Management and Budget, Department of Homeland Security, and other agencies with expertise on data security in order to prevent future data breaches.
Securities and Exchange Commission (SEC) – Included in the bill is $1.5 billion for the SEC, which is equal to the FY2015 enacted level. The bill targets funding toward critical information technology initiatives and includes increased transparency and reporting requirements on agency spending.
Commodity Futures Trading Commission (CFTC) – The bill provides $250 million for the CFTC, which is equal to the FY2015 enacted level.
Consumer Financial Protection Bureau (CFPB) – The bill includes provisions to increase oversight of the CFPB by bringing funding for the agency under the annual congressional appropriations process, rather than allowing automatic funding from the Federal Reserve. This change will allow for increased accountability and transparency of CFPB activities and expenditures. The legislation also changes the CFPB leadership structure to be a five-member commission.
Consumer Product Safety Commission (CPSC) – The CPSC is funded at $123 million in the bill, equal to the FY2015 enacted level.
Federal Communications Commission (FCC) – The bill contains $320 million for operations at the FCC, a cut of $20 million below the FY2015 enacted level. The bill provides funding for FCC moving expenses that can only be utilized if the agency significantly reduces the size of its leased space. The legislation also prohibits the FCC from regulating rates under the net neutrality order, and grandfathers all joint sales agreements (JSAs) from recent FCC JSA rules changes.
Federal Trade Commission (FTC) – The bill provides $300 million for the FTC, which is $7 million above the FY2015 enacted level.
Executive Office of the President (EOP) – The legislation contains $676 million for the EOP, which is $12 million below the FY2015 enacted level. The bill denies the President’s proposed cuts of $64 million to drug control efforts, including the High Intensity Drug Trafficking Areas (HIDTA) and Drug-Free Communities (DFC) programs. The bill instead funds HIDTA at $245 million and DFC at $93.5 million, both the same as the FY2015 enacted level.
District of Columbia – The bill contains a $689 million federal payment to the District of Columbia, $9 million above the FY2015 enacted level. Within this amount, the bill targets resources to public safety and security costs, and supports the District of Columbia Court system and offender supervision.
Other Legislative Provisions – The legislation contains several policy provisions, including:
A prohibition on funds for an increase in pay for the Vice President and other senior political appointees;
A prohibition on funding for grants or contracts to tax cheats and companies with felony criminal convictions;
A prohibition against the use of funds to paint portraits of federal employees, including the President, Vice President, Cabinet Members and Members of Congress;
A requirement that departments and agencies funded by the bill link all contracts that provide award fees to successful acquisition outcomes, and a prohibition on funds to pay for award or incentive fees for contractors with below satisfactory performance; and
A prohibition on funding to implement an Executive Order on flood management.
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