Tuesday, June 14, 2016

Politics in Action: H.R. 5293 & H.R. 5053

STATEMENT OF ADMINISTRATION POLICY
H.R. 5293 – Department of Defense Appropriations Act, 2017
(Rep. Rogers, R-KY)

The Administration strongly opposes House passage of H.R. 5293, making appropriations for the Department of Defense for the fiscal year (FY) ending September 30, 2017, and for other purposes. 

While the Administration appreciates the Committee's support for certain investments in our national defense, H.R. 5293 fails to provide our troops with the resources needed to keep our Nation safe.  At a time when ISIL continues to threaten the homeland and our allies, the bill does not fully fund wartime operations such as INHERENT RESOLVE.  Instead the bill would redirect $16 billion of Overseas Contingency Operations (OCO) funds toward base budget programs that the Department of Defense (DOD) did not request, shortchanging funding for ongoing wartime operations midway through the year.  Not only is this approach dangerous but it is also wasteful.  The bill would buy excess force structure without the money to sustain it, effectively creating a hollow force structure that would undermine DOD's efforts to restore readiness.  Furthermore, the bill's funding approach attempts to unravel the dollar-for-dollar balance of defense and non-defense funding increases provided by the Bipartisan Budget Act of 2015 (BBA), threatening future steps needed to reverse over $100 billion of future sequestration cuts to DOD.  By gambling with warfighting funds, the bill risks the safety of our men and women fighting to keep America safe, undercuts stable planning and efficient use of taxpayer dollars, dispirits troops and their families, baffles our allies, and emboldens our enemies. 

In addition, H.R. 5293 would impose other unneeded costs, constraining DOD's ability to balance military capability, capacity, and readiness.  The Administration's defense strategy depends on investing every dollar where it will have the greatest effect.  The Administration's FY 2017 proposals would accomplish this by continuing and expanding critical reforms that divest unneeded force structure, balance growth in military compensation, modernize military health care, and reduce wasteful overhead.  The bill fails to adopt many of these reforms, including through measures prohibiting the use of funds to propose or plan for a new Base Realignment and Closure (BRAC) round.  The bill also continues unwarranted restrictions regarding detainees at Guantanamo Bay that threaten to interfere with the Executive Branch's ability to determine the appropriate disposition of detainees and its flexibility to determine when and where to prosecute Guantanamo detainees based on the facts and circumstances of each case and our national security interests.

In October 2015, the President worked with congressional leaders from both parties to secure the BBA, which partially reversed harmful sequestration cuts slated for FY 2017.  By providing fully-paid-for equal dollar increases for defense and non-defense spending, the BBA allows for investments in FY 2017 that create jobs, support middle-class families, contribute to long-term growth, and safeguard national security.  The Administration looks forward to working with the Congress to enact appropriations that are consistent with that agreement, and fully support economic growth, opportunity, and our national security priorities.  However, the bill is inconsistent with the BBA, and the Administration strongly objects to the inclusion of problematic ideological provisions that are beyond the scope of funding legislation.  If the President were presented with H.R. 5293, the President's senior advisors would recommend that he veto the bill.

The Administration would like to take this opportunity to share additional views regarding the Committee's version of the bill.

Click here for more information on H.R. 5293. 

H.R. 5053 – Preventing IRS Abuse and Protecting Free Speech Act
(Rep. Roskam, R-IL, and 25 cosponsors)

The Administration opposes H.R. 5053, the Preventing IRS Abuse and Protecting Free Speech Act, which would constrain the Internal Revenue Service's (IRS) ability to enforce tax laws and reduce transparency.

Current IRS rules generally require tax-exempt organizations, including section 501(c) organizations, to report the names and addresses of substantial donors (generally, donors of $5,000 or more) as part of their tax returns.  In addition, section 501(c)(3) private foundations and section 527 political organizations are required to make this contributor information publicly available.

H.R. 5053 would prohibit the IRS from requiring section 501(c) organizations to report this information with limited exceptions.  By permanently preventing the IRS from requiring reporting of donor information by 501(c) organizations, H.R. 5053 would constrain the IRS in enforcing tax laws and reduce the transparency of private foundations.

Source: Executive Office of the President, Office of Management and Budget

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