Following the brief government shutdown two weeks ago, Congress passed a short-term continuing resolution (CR) for fiscal year (FY) 2018 appropriations that expires this Friday, February 8. Lawmakers are expected to pass another short-term CR until mid-March to allow more time for Congressional leaders and the Administration to negotiate a deal to raise the budget caps for FY 2018 and FY 2019. It is possible that a budget deal will significantly increase the spending caps for non-defense discretionary programs for the next two years. If that is the case, appropriators will need to quickly allocate new spending levels to their subcommittees and rewrite FY 2018 spending legislation. It is also possible that this legislation could include "tax extenders" or other tax legislation.
Additionally, the long-awaited third tranche of disaster recovery funding could be included as part of the upcoming CR, an FY 2018 omnibus package, or its own legislation. The House passed an $81 billion disaster recovery bill in December, but the Senate has yet to release its version.