Budget Update
With Secretary of Defense Gates warning lawmakers on the Hill yesterday that the Pentagon “will have to begin planning to curtail defense operations” if the FY 2010 war and disaster assistance supplemental bill is not approved by the July 4th recess, key budget and appropriations decisions still remain in limbo. The Senate passed the $59 billion FY 10 supplemental late last month, but Democratic House leaders have been unable to move forward as they seek to add about $25 billion for domestic programs. At the same time, House leaders have finally begun to acknowledge that an FY 2011 budget resolution this year will almost certainly not happen. Instead, a deeming resolution to set an overall discretionary spending cap will likely be put forward soon so that the all-important 302(b) appropriations allocations can be made and the appropriations process can get underway.

