AAMC Washington Highlights - September 14, 2001: Attacks Disrupt Congressional Priorities and Process

September 14, 2001

Congress Approves $40 Billion in Emergency Aid

The Sept. 11 terrorist attacks on New York and Washington have dramatically changed the tenor and timetable of the budget debate in Congress. At the beginning of the week, possibly the biggest question in Washington was whether to dip into the Social Security surplus to support additional defense and education funding being sought by the White House and Congress. House Republican leaders were preparing to mount a campaign in support of across-the-board cuts in other spending to sustain the defense and education increases and "preserve" Social Security. The concept of a Social Security "lock-box" and other budget restraints are now off the table as Congress has moved to give the President unprecedented funding and authority to respond to the attacks.

The House and Sente unanimously Sept. 14 approved a $40 billion emergency supplemental appropriations bill to fund search, cleanup, security, and investigation efforts in response to the attacks. The bill appropriates $10 billion immediately in FY 2001 emergency funds to the Emergency Response Fund within the Executive Office of the President for authorized federal activities including:

federal, state and local preparedness for mitigating and responding to the attacks;

support to counter, investigate and prosecute domestic and international terrorism;

increased transportation security;

repairing public facilities and transportation systems damaged by the explosions; and

supporting national security.

Another $10 billion would be available 15 days after the Director of the Office of Management and Budget has submitted to the Appropriations Committees a proposed allocation and plan for use of the funds. This is consistent with congressional notification process used for the allocation of emergency funds in the Y2K situation and the Northridge earthquake. Consideration of the package was delayed by lawmakers concerned that an earlier proposal ceded congressional oversight for spending to the President.

An additional $20 billion may be obligated only when enacted in the FY 2002 appropriation bills. The bill further specifies that of the total $40 billion provided, not less than $20 billion shall be for disaster recovery activities and other assistance in response to the terrorist acts on Sept. 11, in New York, Pennsylvania and Virginia.

For now, the schedule for Congressional consideration of appropriations measures unrelated to national security is uncertain. A House Labor-HHS-Education Appropriations Subcommittee mark-up set for Sept. 13 has been tentatively rescheduled for Sept. 20.

Meanwhile, the idea of pushing the FY 2002 spending bills through Congress quickly appears to be gaining momentum. There are reports that congressional leaders are considering a continuing resolution for the entire government that would allow Congress to adjourn after completing work on the emergency supplemental bill. House Budget Committee Chair Jim Nussle (R-Iowa) reportedly is urging Congress to pass the FY 2002 appropriations bills immediately. He said Congress could provide a total of $679 billion for discretionary spending - the amount specified in the FY 2002 budget resolution plus the additional $18 billion the White House has been seeking for defense.

Information: Dave Moore, AAMC Office of Governmental Relations, 202-828-0525.