12/16/2016

President Signs Short-term Spending Bill

The action prevents the government from shutting down

On Dec. 10, President Barack Obama signed a short-term spending bill to prevent a government shutdown and continue funding for federal programs and services through April 28, 2017.

Both the House and Senate passed the continuing resolution last week before leaving town for the holiday recess. Senate passage was hung up briefly by some Senate Democrats who wanted a longer extension of expiring coal miner benefits in the package.

“This legislation is necessary to continue vital government programs and services, like our national defense,” said House Appropriations Chairman Hal Rogers (R-KY). “While I firmly believe a continuing resolution is no way to run a railroad, at this point, this is our best – and only – path forward.”

In addition to funding for most federal agencies, programs and services, the package includes a bit more than $10 billion for the Defense Department and State Department to combat ISIS and terrorism around the world, and about $170 million to address the drinking water problem in Flint, Mich. The bill also includes language that specifically exempts the Secretary of Defense from a law requiring retired officers to be out of service for seven years before being considered for the post. Retired Marine Corps General James Mattis, President-Elect Trump’s pick to lead the Defense Department, left the service only three years ago.

Of interest to the tax-exempt community, the measure also includes language extending an existing restriction on the Internal Revenue Service (IRS) from issuing new guidance to expand the definition of political activity by nonprofit organizations.