IMPASSE OVER VA FUNDING COULD BRING GOVERNMENT SHUTDOWN

The Trump administration is injecting new demands into congressional negotiations over a government spending bill that threaten to sink the must-pass package, people familiar with the discussions said.

The disagreement concerns how to classify $12.5 billion in cost increases in veterans health care, expenses that are part of sweeping veterans’ care changes signed into law by President Donald Trump in 2018 with much fanfare.

The impasse could complicate the ongoing negotiations over legislation to fund the government, which if not resolved would lead the federal government to shutdown on Dec. 11 in the middle of the pandemic — a dangerous scenario lawmakers are working to avoid.

Months ago, lawmakers agreed to designate the increased cost of veterans health care as emergency spending. Emergency spending isn’t subject to certain spending restrictions. But on Friday, administration officials insisted to congressional officials that the $12.5 billion in veterans care cost increases be considered nonemergency spending, said people who spoke on the condition of anonymity to provide details about the private negotiations.

Current budget law allows for only a $5 billion increase on overall nondefense discretionary spending for this year. Some Republican lawmakers believe that the veterans funding should be counted as nonemergency spending, which would prevent further increases in spending elsewhere. Congressional Democrats have insisted the veterans funding be excluded from nondiscretionary spending.

Congressional aides were informed on Friday of the administration’s new demand, the people said. It was not immediately clear how much Trump himself is directly involved in the request.

“A lot of promises have been made to veterans for improved health care, and without funding to implement those, those promises are hollow,” said one of the people familiar with the talks. The people also cautioned that the talks were fluid and subject to change.

A White House spokesman declined a request to comment. The Treasury Department did not immediately comment.