House prepares DOD, Financial Services appropriations bills for 2013

The House is preparing to work on two 2013 spending bills for the Department of Defense, the Treasury Department and other agencies, both of which are likely to be taken up on the House floor after the July 4 break.

The Department of Defense Appropriations Act, H.R. 5856, would spend $519.2 billion on the DOD's base budget, just a bit more than 2012 levels. But the bill would sharply reduce spending on the wars in Afghanistan and Iraq: it cuts nearly $27 billion from so-called "overseas contingency operations."

As a result, the total cost for the bill, $608 billion, is about $25.5 billion less than 2012's total.

Almost all of the increase in the base DOD budget is due to a $12 billion funding increase for operation and maintenance.

"The recommended levels will robustly fund operational training programs in fiscal year 2013," according to the House Appropriations Committee report accompanying the bill. "Requests for unit and depot level maintenance; facility sustainment, restoration and modernization; and base operations support program funding are fully supported."

The other spending bill is H.R. 6020, the Financial Services and General Government Appropriations Act, which funds the Treasury Department, the Judiciary and several federal agencies. The bill would spend $21.15 billion, representing a 1.7 percent cut over 2012 levels.

Notably, the bill would cut Department of Treasury salaries and expenses by $105 million, or about one-third. It also defunds President Obama's signature financial reform bill by cutting Securities and Exchange Commission funds.

The House Rules Committee was planning to meet to approve a rule for both bills on Thursday, a sign that floor consideration could follow quickly after the July 4 break.

The House has already passed five of the 12 annual spending bills, and is working on two others this week.

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