Last week, the Labor-HHS-Education appropriations bill (H.R. 3043) achieved passage in both the House and Senate.  It was then presented to the President, who is expected to veto the bill.  After much strategizing and maneuvering from both parties, it was approved as a stand-alone bill. The House initially passed it as a mini-omnibus combined with the Military Construction-Veterans appropriations bill on a vote of 269-142.  However, in the Senate, Republicans raised a point of order and forced a vote on splitting it back into two separate bills, which succeeded.  The new stand-alone Labor-HHS-Education version then passed in the Senate, and was sent back to the House, which passed it on a vote of 274-141 (not enough to sustain the anticipated President's veto).

The Labor-HHS-Education spending bill is $9.8 billion above the President's FY 2008 request. It would essentially level-fund WIA programs, but includes a rescission of $245 million in unexpended balances for the Youth, Adult, and Dislocated Worker formula programs.  The "statement of the managers" accompanying the conference report on thebill instructs the Secretary of Labor to "target the rescission with such funding streams so that the first funds subject to recapture are those program year 2005 and 2006 funds carried into program year 2007 that are in excess of 30 percent of funds available in program year 2006 as of June 30, 2007."  For the bill's language in regard to the rescission, please see the conference report at http://www.rules.house.gov/110/text/110_hr3043cr.pdf  beginning at page 7, line 9.

Following the President's anticipated veto, the Labor-HHS-Education bill is expected to go the House and Senate floors this week for a vote to override the veto.  The President and some Republican members of Congress have repeatedly stated that they will not support appropriations bills containing discretionary spending in excess of the President's request.  Should the override vote fail, additional cuts are a possibility.