Congress returns to session today, starting in on a number of key legislative priorities with important fiscal policy implications that leadership hopes to complete before the July 4 recess. Among them, from most to least likely to see action this week:

• Budget Resolution -- Front and Center: As soon as the farm bill passes (over President's Bush's veto) this week, Congress will turn to the FY 09 budget resolution. A close vote but final passage is expected. Whether the appropriations bills will proceed through regular order or leadership will decide to move instead to a continuing resolution remains to be seen.
• War Supplemental -- Houses Not in Order: The House and Senate have taken significantly different approached to H.R. 2642, the war funding bill, but the Senate version was passed by veto-proof numbers in the Senate, where many Republicans support the new GI educational benefit; thus far, Democrats have showed no sign of stripping items from the House bill that the White House has said are objectionable.
• Housing Bill -- Next Step is Senate Floor Action: A bill to prevent foreclosures, create more affordable housing, and reform GSEs was passed by the Senate Banking Committee on May 20 on a bipartisan basis after committee chair Dodd and ranking member Shelby (R-AL) reached a compromise to minimize bill's cost. Senate Majority Leader Harry Reid (D-NV) has not announced when the bill will go to the floor; that may occur as early as this week.
• Taxes -- Extenders Schedule to be Extended: On May 21, the House passed a $54 billion package of renewable energy and one-year tax extenders (H.R. 6049). The bill is offset with provisions that have triggered a White House veto threat. The Senate Finance Committee has floated a $110 billion bill (S. 2886) that would extend the measures for two years, would patch the AMT for one year, and does not contain offsets. The Senate will not likely take this bill up until after the July 4 break.