February 09, 2018

Congress works to pass 2-year federal budget

The House and Senate worked into the early hours Friday morning to pass legislation to fund the federal government for two years. As of NAFCU Today's publish time, the chambers had yet to vote on final passage and a government shutdown began as funding expired at midnight.

The budget deal would increase defense and domestic spending over two years, lift the debt ceiling (which would have required congressional action in the next few weeks) and provide billions in disaster aid. Funding for the National Flood Insurance Program is included in this spending bill.

It also would retroactively extend tax breaks for mortgage insurance and forgiven mortgage debt for 2017 tax filings. Without the extension for forgiven mortgage debt, taxpayers would have to count forgiven mortgage debt as income, incurring taxes and potentially defaulting on a loan.

The House earlier in the week had passed a short-term funding bill which would have funded the government through March 23, but provided military funding until Sept. 30. The Senate then amended the continuing resolution by attaching the necessary budget parameters so that a longer-term spending bill could be passed.

NAFCU lobbyists will be following developments – stay tuned to NAFCU Today for the latest.