March 1, 2004

 

House Passes Two-Month Highway Bill Extension
 
On Thursday, February 26, the House passed (by voice vote) legislation (H.R. 3850) to extend the current highway and mass transit law for two-months, thereby allowing further time for it to complete action on a reauthorization bill (H.R. 3550).  The Senate approved the extension late Friday before recessing for the week.  The two-month extension keeps in place all policies authorized in TEA-21.  Highway programs will continue to be protected by a budgetary firewall, which means that highway use fee revenues cannot be used for any other purpose and must be appropriated at the levels directed in the authorization for FY 2004.
The House Highways and Transit Subcommittee plans to mark-up the revised reauthorization package this Wednesday or Thursday, followed by a full T&I Committee markup the week of March 8, a timetable that is likely to slip again. 
House leaders met with White House Chief of Staff, Andrew Card and discussed the potential for a two- year versus a six year reauthorization bill.  Two possible options came from the meetings.  The first would be to pass a two-year bill based on the T&I Committee funding levels in TEALU, which would take the controversial gas tax provision off the table in the near-term and would enable Congress to revisit the issue in a nonelection year.  This would provide a short-term solution, but even using the higher funding numbers from the T&I Committee reauthorization bill, states would not be ratcheted up to a 95 rate of return for highway programs, raising a whole new set of issues for a two-year bill.  The second option would be to fund a six-year bill at the Administration's $256 billion spending level.  The Administration's SAFETEA reauthorization proposal would not provide enough funding to ensure that every state could reach the 95 percent minimum guarantee threshold by 2009.
On a related issue, legislation was introduced on the House side that would allow states to issue up to $15 billion of tax-exempt private activity bonds to fund highway projects, as well as other transportation projects, with the goal of significantly reducing the cost of the reauthorization bill.  The Administration's highway reauthorization proposal also contained a bond initiative component.
 
States Given Additional Time to Comment on Proposed Medicaid Changes
 
On Wednesday, February 25, Secretary of HHS, Tommy Thompson, indicated that he will give states an opportunity to weigh in on HHS plans to grant the Centers for Medicare and Medicaid Services (CMS) new power to influence state Medicaid budgets.  In a January 7, 2004 Federal Register notice, CMS proposed to change a states budget reporting form (CMS-37) to allow the agency to capture up-front information about the financial elements of state budgets before the budgets are adopted.  The notice said comments were due the following day, January 8. 
In a February 20 letter to NGA Chairman Dirk Kempthorne (R-Id) and Vice Chairman Mark Warner (D-Va), Secretary Thompson said CMS would not move forward with the new policy without carrying out the consultation process.  After consulting with Governors and the National Association of State Medicaid Directors, Thompson has agreed to then publish another notice in the Federal Register that provides a 60 day formal comment period.
 
Action on Budget Resolution Scheduled
 
The Senate Budget Committee has scheduled a March 3 and 4 mark-up of the FY 2005 budget resolution, with Senate floor consideration anticipated the week of March 8.  Senate Majority Leader Bill Frist (R-Tenn) is pushing for a resolution that keeps discretionary spending at $814 billion, $4 billion less than proposed in the President's budget, although Budget Committee Chairman Don Nickles (R-Okla) raised the possibility of adding back funding during floor debate to match the President's request of $818 billion.  This action could raise a procedural point-of-order since last year's budget resolution set a discretionary spending ceiling for FY 2005 of $814 billion.  In addition, it currently appears that reconciliation instructions for additional tax cuts will not be included in the budget resolution and instead these measures will move under regular legislative procedures instead of expedited floor process for reconciliation. 
A House Budget Committee markup of its version of the budget resolution is currently scheduled for the week of March 8.
 
SCAAP Funding Available
 
The U.S. Department of Justice, Bureau of Justice Assistance (BJA) recently announced the acceptance of applications for reimbursement through the State Criminal Alien Assistance Program (SCAAP).  Eligible undocumented criminal aliens who were incarcerated for at least four consecutive days between July 1, 2002 and June 30, 2003, may be included in the FY 2004 application.  States have until March 15, 2004 to complete the online application.  More information about SCAAP and the application process is available online at:  http://www.ojp.usdoj.gov/BJA/grant/scaap.html
 
Congressional Schedule:
 
The House will meet on Tuesday, March 2 for consideration of several measures under suspension of the rules.  In addition, the House later in the week is expected to consider legislation that places the regulation of space tourism under the jurisdiction of the Federal Aviation Administration, and a bill (H.R. 1561) that increases patent application fees by 15 percent.

The Senate is expected to vote on Tuesday, March 2 on remaining amendments to and final passage of gun liability legislation (S. 1085).  Other bills slated for potential floor consideration this week are corporate tax overhaul legislation and a fetal protection bill.

Key Committee Meetings

 Numerous hearings are scheduled this week to review the President's FY 2005 budget proposals.

  • The Senate Appropriations Subcommittee on Commerce, Justice, State and Judiciary has scheduled a hearing on Tuesday, March 2 at 10:00 a.m. in 192 Dirksen Building.  Secretary of Commerce Donald Evans to testify. 
  • The Senate Appropriations Subcommittee on Interior will hold a hearing on appropriations for the Department of Energy, Thursday, March 4 at 9:30 a.m. in 124 Dirksen Building.  Secretary Spencer Abraham id scheduled to testify.
  • The Senate Appropriations Subcommittee on Labor, HHS, and Education has scheduled a hearing for Thursday, March 4 at 9:30 a.m. in 192 Dirksen Building.  Secretary Rod Paige of the Department of Education will be the witness.
  • The House Appropriations Subcommittee on Commerce, Justice, State and Judiciary will hold a hearing on Thursday, March 4 at 1:00 p.m. in H-309 Capitol Building.  Attorney General John Ashcroft is scheduled to testify.
  • The House Appropriations Subcommittee on Labor, HHS, and Education will hold a hearing on Thursday, March 4 at 10:00 a.m. in 2358 Rayburn Building.  Secretary Tommy G. Thompson is scheduled to testify.
  • The House Appropriations Subcommittee on Transportation and Treasury will hold a hearing on Wednesday, March 3 at 10:00a .m. in 2359 Rayburn Building.  Secretary of Transportation Norman Mineta is scheduled to testify.
  • The House Appropriations Subcommittee on Homeland Security will hold a hearing on Thursday, March 4 at 10:00a .m. in 2359 Rayburn Building.  Secretary Tom Ridge is scheduled to testify. 
  • The House Ways and Means Committee will hold a hearing on Thursday, March 4 (time TBA) in 1100 Longworth Building.  Secretary or Labor Elaine Chao is scheduled to testify.

Health.  The Senate Finance Committee will hold a hearing titled "Health Insurance Challenges: Buyer Beware."  (Wednesday, March 3 at 9:30 a.m. in 215 Dirksen Building)

Confirmation Hearing.  The Senate Finance Committee will hold a confirmation hearing on Mark McClellan to be Administrator for the Centers for Medicare and Medicaid Services in the Department of Health and Human Services.  (Friday, March 5 at 10:00 a.m. in 215 Dirksen Building).

Higher Education Act Reauthorization.  The Senate Health, Education, Labor and Pensions Committee will held a hearing on the reauthorization of the Higher Education Act.  (Thursday, March 4 at 10:00 a.m. in 430 Dirksen Building).

Improving Services to Children with Disabilities.  The House Education and the Workforce Committee will hold a hearing titled "No Child Left Behind: Improving Results for Children with Disabilities."  The hearing will focus on sections of the No Child Left Behind Act (PL 107-110) dealing with disabled children.  (Wednesday, March 3 at 10:15 a.m. in 2175 Rayburn Building).

Highway Reauthorization.  The House Transportation and Infrastructure Subcommittee on Highways, Transit and Pipelines will mark up pending legislation.  (Tuesday, March 2, time TBA, in 2167 Rayburn Building).