January 20, 2004

Congress Reconvenes with a Full Agenda
 
On Tuesday, January 20, the 108th Congress reconvened to begin its second session with a full agenda in a very abbreviated timeframe due to party conventions and the November elections. The first order of business for the Senate is the unresolved fiscal year 2004 omnibus appropriations conference report, with a cloture vote scheduled for 3:00 p.m. today.  Senate Democratic Leader Thomas Daschle (S.D.) has indicated that he will oppose the motion because of concerns with food labeling, overtime rules, and media ownership limits in the report.  Sixty votes are needed to cut off debate and force a final vote on the measure, which combines seven leftover 2004 spending bills, and provides several federal agencies with a total of $820 billion, including $328 billion in discretionary funding.  The House approved the bill in December but the Senate was unable to act before Congress adjourned for the year.  If today's vote is successful, the bill is expected to subsequently be approved.  If it fails, it is not clear what leaders will do. 
 
Welfare Reform and the Highway Bill: Other key issues this session are welfare reform reauthorization (H.R. 4) and the highway bill (S.1072).  The Senate is expected to consider welfare reform legislation in February.  The 107th Congress did not complete action on a comprehensive reauthorization package but Congress has approved quarterly extensions on key state welfare programs, including TANF, childcare, and transitional Medicaid (TMA) to ensure federal funding so that states can continue to operate welfare reform initiatives. The House approved a bill in 2003 and the Senate Finance Committee approved a bill this past September.  In addition to welfare reform, Senate consideration for a highway bill is expected the first week of February.  Senate Environment and the Public Works Committee Chairman James Inhofe (R-Ok) is expected to meet this afternoon with committee members to try and resolve the outstanding issue of the minimum guarantee for states in highway funding.  The House Transportation and Infrastructure Committee anticipates markup the first week in February, followed by floor consideration the next week. 
 
Internet Tax Moratorium:   Senator George Allen (R-Va), sponsor of the Internet Tax Moratorium bill (S.150) is working to invoke cloture and force a vote sometime in February to permanently extend the moratorium .  A few Senators had opposed the bill as an unfunded mandate and the bill was pulled from further consideration from the Senate floor on November 7, 2003. 
 
Other Issues:  Other issues expected to fill the congressional calendar are the reauthorizations of several programs such as Head Start, Higher Education,  and the Individuals with Disabilities (IDEA) Act.  Congress will also address a corporate tax bill (S. 1637/H.R.2896) in late February and the Senate will address class action lawsuit overhaul legislation the week of January 26 and in late April, asbestos litigation reform legislation could be addressed.  Health care initiatives involving the uninsured and medical malpractice lawsuits may also be addressed.  The House -- in addition to budget, tax and education issues will focus on the reauthorization of tax credit extenders and the Unborn Victims of Violence Act. 
 
President's Budget:  The President's budget will be released next month (February 2) and the statutory deadline for Congress to complete action on its budget resolution is April 15, starting the FY 2005 appropriations cycle.  In addition, major tax policy changes as well as entitlement changes will probably be part of a reconciliation bill that will be considered in April or May.
 
Pentagon Releases Draft Criteria for Base Closures
 
The Pentagon has released for public comment its draft selection criteria for the 2005 round of base closures.  The Department of Defense will use the criteria when evaluating installations under the Base Realignment and Closure (BRAC) Act.  The Pentagon plans to close up to 25 percent of the nation's military infrastructure in order to free up funds for military transformation and homeland security efforts.  DoD has started requesting that commanders of installations gather information about their bases.  These data requests are one of the ways that DoD satisfies its statutory obligations to treat all military installations equally, making certain its closure and realignment recommendations are based solely upon certified data.  In recommending military installations for closure or realignment, DoD will give priority consideration to military value.  Congressman Jim Gibbons, a member of the House Armed Services Committee recently announced that he is forming a statewide committee entitled "Nevada's Military Advocacy Commission" which will focus on promoting and supporting Nevada's military installations as they prepare for the 2005 round of Base Realignment and Closure. 
 

Congressional Budget Office  Releases Expiring Federal Laws Report
 
CBO has released its report Unauthorized Appropriations and Expiring Authorizations (January 15, 2004).  The report identifies authorizing legislation that should be in place before Congress considers the 13 regular appropriation bills for FY 2005.  You can access the report through the CBO website at www.cbo.gov
 

 
Administration Releases Manufacturing Report
 
On Friday, January 16, the Administration released its report on manufacturing, which calls for making recent tax cuts permanent and establishing a President's Manufacturing Council (to be chaired by U.S. Secretary of Commerce, Don Evans) to coordinate government manufacturing policies.  Other recommendations contained in the report include:
For more information on the report, please visit the U.S. Department of Commerce's website at:  http://www.commerce.gov/
 
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