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The omnibus heads to the House.
The omnibus heads to the House. Photo: Kent Nishimura / Los Angeles Times via Getty Images

What is and isn’t in the $1.7 trillion spending bill

Passed in the Senate on Thursday, Dec. 22, the bill heads to the House, avoiding a government shutdown ahead of Christmas.

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Just as federal funding was set to expire Friday, Dec. 23, the Senate passed the $1.7 trillion year-long federal government spending bill Thursday afternoon, Dec. 22. The bill passed on a 68-29 vote and now goes to the House for a final vote before heading to President Joe Biden to officially be signed into law. 

With this, the government avoids a shutdown ahead of the holidays. Congress is now working against the clock with federal funding set to lapse late on Friday night, Dec. 23. Negotiations between Senators advanced significantly Thursday morning after talks initially stalled for days because of the GOP amendment regarding the Trump-era immigration policy, Title 42. 

The bill will fund the government through the end of next September, at the end of the next fiscal year. The $1.7 trillion will address many key areas such as overhauling election laws in an effort to prevent another Jan. 6 attack. It includes added workplace protections for pregnant and breastfeeding employees. 

According to a bill summary from Democratic Sen. Patrick Leahy, chair of the Senate Committee on Appropriations, the legislation also includes $772.5 billion for non-defense discretionary programs and $858 billion in defense funding, Additionally, there are huge Medicaid provisions, with one implication that could result, ending coverage for up to 19 million people from the nation’s health insurance program for low-income citizens. 

There is also about $45 billion in emergency assistance to Ukraine and NATO allies, increased spending for disaster aid, college access, child care, mental health and food assistance, extra support for the military and veterans and more funds for the U.S. Capitol Police. 

While the bill will help millions, the 4,000-page spending bill did not include a handful of measures many lawmakers have argued for. The expansion of the child tax credit and exclusion of individual and corporate tax breaks, are a few. One particular measure would have allowed cannabis companies to bank their cash reserves — or Safe Banking Act, and a White House request of $10 billion in additional funding for COVID-19 response was also not included. 

Child Tax Credit and Cannabis 

A number of Democratic lawmakers and consumer advocates fought hard to include a measure that would have extended at least one provision of the enhanced child tax credit that first took effect last year because of the Democrats’ $1.9 trillion American Rescue Plan. It aimed to make the credit more refundable, allowing some of the lowest-income families to qualify. According to a Tax Policy Center estimate, just under 19 million kids will not receive the full $2,000 benefit this year because their parents do not earn enough. 

Senators were also considering a provision that would have made it easier for licensed cannabis businesses to accept credit cards, but ultimately left it out. Another provision, known as the Safe Banking Act that previously passed the House, would have prohibited federal regulators from taking action against banks for providing services to legitimate cannabis businesses. While over 47 states have in some capacity legalized cannabis, it is still illegal at the federal level. With banks in danger of facing legal action, it leaves many legal growers and sellers out of the banking system. 

What is included? 

In regards to healthcare, the bill would take out the requirement that prevented states from unenrolling Medicaid recipients seeing that the national public health emergency was in effect in exchange for an enhanced federal match. This specific measure was first enacted as part of a COVID-19 relief package passed in the throes of the pandemic back in March 2020. It has led to a record over 90 million Medicaid enrollees.

Also under the bill, states would not be able to begin reviewing Medicaid enrollees’ eligibility as of April 1. This process would last over the course of 12 months. It also calls for phasing out the enhanced federal Medicaid funding through the end of 2023, but states would have to meet certain conditions during that time frame. According to estimates, as many as 19 million people could lose their benefits, but many would be eligible for other kinds of coverage.

The Medicaid and the Children’s Health Insurance Program, known as CHIP will now be able to offer 12 months of continuous coverage for children. Up to 40 million children on Medicaid and CHIP will have access to health care throughout the year.

As the war in Ukraine continues to rage, Ukraine President Volodymyr Zelenskyy will get additional funding to help fight the war, with around $45 billion to defend itself against Russia’s attack. Around $9 billion would go to their military to pay for training, weapons, logistics support and salaries. Just under $12 billion would be to replenish American stocks of equipment sent to Ukraine through presidential authority.

Ukraine will also receive $13 billion for economic support to the government. Additional funds will go to humanitarian and infrastructure needs, as well as support European Command operations. Another provision would also make it harder to overturn a certified presidential election — this to prevent another Jan. 6-like attack. The provision would overhaul the 1887 Electoral Count Act, the very same that former President Donald Trump tried to use to overturn the infamous 2020 election. 

The spending bill will help fund for Jan. 6 attack prosecutions. $2.6 billion will be provided for U.S. Attorneys, which would include funding efforts “to further support prosecutions related to the Jan. 6 attack on the Capitol and domestic terrorism cases,” according to a fact sheet. Also included is $11.3 billion to the FBI, including one to investigate extremist violence and domestic terrorism. In total, the Justice Department will receive just over $39 billion. 

As the cost of college only continues to rise, the bill also offers some help for students looking for a way to pay for their education. It would increase the maximum Pell grant award by $500 to $7,395 for the next coming school year. This is the largest boost since the 2009-2010 school year. The Pell Grant helps around 7 million students, and many from lower-income households, and is usually the most money students receive for education that is not a private loan. 

The legislation will also give over $8 billion for the Child Care and Development Block Grant, an almost 30% increase from their previous funding. There is also now financial assistance for low-income families that would give them the opportunity to actually afford child care. Head Start — a program helping children from low-income households in school — would receive just under $12 billion, an 8.6% boost. 

The Environmental Protection Agency will receive an additional $576 million, nearly $10.1 billion in total funding. This would help increase support for enforcement and compliance, clean air, water and toxic chemical programs. 

If passed, the bill would also address the growing issue of homelessness as it would provide $3.6 billion for homeless assistance grants, a 13% increase. It would significantly change the lives of the over one million people experiencing homelessness today. 

“This is one of the most significant appropriations packages we have done in a very long time,” said Senate Majority Leader Chuck Schumer, D-N.Y. “The range of people it helps is large and deep.”

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