March 15, 2004
 
Senate Passes Budget Resolution
 
The Senate passed its FY 2005 budget resolution on Thursday, March 11, by a vote of 51 to 45.  S. Con Res. 95 caps total discretionary spending at $821 billion for FY 2005 and provides a tax package of $80.6 billion over five years through reconciliation instructions.
The focus will now move to the House, where the Budget Committee began marking-up its version of the budget resolution last week.  The House Budget Committee proposes to cut mandatory spending by $13.3 billion over five years.  This reconciliation instruction directs five committees - Agriculture, Education and the Workforce, Energy and Commerce, Government Reform, and Ways and Means - to meet this figure.  The Energy and Commerce Committee cut is for waste, fraud, and abuse of $2.1 billion for Medicaid.  Rep. Peter King (R-NY) is circulating a letter, signed by both Republican and Democratic members, opposing proposed cutes to the Medicaid program.  The Senate had a similar provision, however, an amendment passed, striking reconciliation instructions that would have required the Senate Finance Committee to cut entitlement spending by a net total of $3.4 billion.  The amendment passed, 53-43.  The committee proposal also includes reconciliation instructions for $137.6 billion in tax cuts, but does not include the cost of adjusting the alternative minimum tax. 
Chairman Nussle announced that the panel will hold an additional markup session on Wednesday, March 17, to vote on the resolution and to consider a budget enforcement bill that would restore PAYGO provisions.  House floor consideration of the budget resolution could now move to either late this week or be pushed to the week of March 22.
 
 
House Speaker Proposes Highway Bill Funding Figure
 
In a meeting on Thursday, March 11 with the President, House Speaker Dennis Hastert (R-Ill) proposed a funding figure of $275 billion for the six-year surface transportation reauthorization bill, representing about $20 billion more than the President originally requested for highways and mass transit, but closer to the $270 billion the Administration has mentioned it could accept. 
The House Transportation and Infrastructure Committee is keeping March 24 open as a possible date for a mark-up of the transportation reauthorization bill according to the Congressional Quarterly.  This date is tentative as Chairman Young (R-Ak), has not decided whether to support Speaker Hastert's proposed funding request, 27 percent less than Young's bill (H.R. 3550). 
 
Senate Energy Committee Holds Hearing on Abandoned Mine Land
 
The Senate Energy and Natural Resources Committee held a hearing on Thursday, March 11 on abandoned mine land legislation (S. 2049 and S. 2086) currently pending before the committee.  Witnesses testified on various aspects of the legislation, as well as the current status of the Abandoned Mine Land (AML) program, which is set to expire on September 30, 2004.  Both bills would reauthorize the Abandoned Mine Reclamation Trust Fund, however, each bill takes a different approach in repaying unappropriated state balances and distributing future funds to states. 
 
House Committee Approves School Lunch Program Reauthorization Bill
 
On Wednesday, March 10, the House Education and the Workforce Committee unanimously approved (42-0), the Child Nutrition Improvement and Integrity Act (H.R. 3873) that would reauthorize the school lunch program through 2008, as well as separate programs to provide subsidized breakfasts and milk.  The bill streamlines the free and reduced lunch certification process by providing direct certification for food stamp and welfare recipients and by allowing parents to submit a single application for more than one child.
For more information, please visit: http://edworkforce.house.gov/press/press108/second/march/cnfullcommittee031004.htm
For a summary of the Act, visit: http://edworkforce.house.gov/issues/108th/education/childnutrition/billsummary.htm.
 
 
Internet Tax Ban

Senators George Allen (R-Va) and Lamar Alexander (R-Tenn), proponents of rival approaches to Internet taxation, met last week to see if a compromise could be reached before legislation goes to the Senate floor.  Allen and Alexander are sponsors of S. 150, a bill to make a now-expired Internet tax moratorium permanent, and S. 2084, a measure that would extend the band for just two years.  Allen's bill would expand the definition of exempt Internet access to cover all forms of technology used to provide that access, while the Alexander bill, favored by states, would provide the exemption only for the connection between the user and the service provider. 

Floor action has not been scheduled as a  deal was not cut at the meeting between Senators last week.

 

Legislative Agenda
 
The Senate is not in session this week but will return on Monday, March 22, when it is expected to resume consideration of legislation to repeal U.S. export tax laws that were found to violate World Trade Organization rules (S. 1637).
 
The House is in session this week and will meet on Tuesday, March 16 and Wednesday, March 17 to consider numerous measures under suspension.  Later in the week, the House is scheduled to consider the Financial Services Regulator Relief Act (H.R. 1375) which would ease banking regulations by allowing banks to expand across state lines and by reducing the time and paperwork required for bank mergers.  The House will also consider a resolution (H. Res. 557) relating to the liberation of the Iraqi people and the valiant service of the U.S. Armed Forces and Coalitions forces.  The Budget Committee will meet again on Wednesday, March 17 to try and complete work on its FY 2005 budget resolution.  A key point of contention is whether to address pay-as-you-go provisions in the resolution or as part of a separate bill.  House floor consideration may be pushed to next week.
 

Key Committee Meetings

Appropriations.

Budget. The House Budget Committee has scheduled a markup session on the FY 2005 budget resolution on Wednesday, March 17, at 10:00 a.m. in 210 Cannon House Office Building.

Health. The House Ways and Means Health Subcommittee on Health has scheduled a Thursday, March 18, hearing at 10:00 a.m. in 1100 Longworth House Office Building  on health quality initiatives.

Homeland Security:

Medicaid Intergovernmental Transfers. The House Energy and Commerce Subcommittee on Health has scheduled a Thursday, March 18, hearing at 9:30 a.m. in 2123 Rayburn House Office Building  on Medicaid intergovernmental transfers.

Transportation. The House Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection will hold a Thursday, March 18, hearing at 10:00 a.m. in 2123 Rayburn House Office Building on reauthorizing the National Highway Traffic Safety Administration.