September 27, 2004

 

This Week on the Hill
 
Congress will try to finalize the FY 2005 appropriations process but both chambers will need to pass a continuing resolution (CR) since the federal fiscal year ends on September 30.  The measure will likely be effective through Friday, October 8 and it appears unlikely now that an omnibus spending measure can be packaged and dealt with before adjournment.  Instead, Republican leaders are now speculating that a CR through November 20 may be a strong possibility, leaving consideration of the omnibus for a lame-duck session.  With regards to appropriations, the House has approved 12 spending measures and the Senate has passed six.  The Defense Appropriations Bill is the only one that has been signed into law.  In addition, Congress is expected to receive a third emergency supplemental spending request for hurricane relief efforts from the President sometime this evening.  This measure could be combined with the second hurricane relief request and considered this week as a stand alone bill.
 
 
TEA-21 Reauthorization
 
The current extension of authority for surface transportation program expires on September 30 and Congress must decided early this week how to close the books on FY 2004 and how long to extend the programs into FY 2005.  Republican leaders are still working to develop the financial outline of a six year reauthorization bill that will have the support of all eleven Republican Senators named to the conference committee, as well as the support of a majority of House conferees.  However, key Senate conferees, Senators Reid, Bond and Jeffords have introduced a bill that would extend the surface transportation programs for six months. 
 
 
House and Senate Pass Tax Relief Extender Package
 
The House and Senate passed the conference report on the Working Families Tax Relief Act of 2004 (H.R 1308), a $146 billion package of tax relief extenders for the middle-class and businesses.  The House passed the measure by a vote of 339-65; the Senate then adopted it by a 92-3 vote.  The agreement extends several expiring middle class tax breaks, including the $1,000 per child tax credit through 2009, the expanded 10 percent income tax through 2010, and married couples tax benefits through 2008.  It also extends a one-year exemption from the alternative minimum tax to individual taxpayers.  In addition, the measure incorporates 23 one-to-two year extensions of expired or expiring tax breaks for business and investors that were included in the corporate tax bill (FSC-ETI/H.R. 4520), including the research and development tax credit, the welfare to work tax credit, and the work opportunity tax credit, as well as a tax break for wind and biomass electricity production and a deduction for Brownfield remediation expenses.  It also extends through 2009 tax-exempts private activity bonds for construction and rehabilitation in NYC from the 9/11 terrorist attacks. 
 

 Senate Commerce Committee Passes Communications Bills

On Wednesday, September 23, the Senate Commerce, Science, and Transportation Committee marked-up a bill (S. 2820) requiring television broadcasters to vacate sections in the 700 megahertz (MHz) spectrum by January 1, 2009. Introduced on Tuesday, September 21, by committee Chairman John McCain (R-Ariz.), the bill closes a loophole in the current law, and will ensure that the public safety community obtains sections of the 700 MHz band to help elevate radio interoperability and interference issues within the next five years. The House is ready to act on similar legislation (the HERO Act/H.R. 1425) that requires television broadcasters to vacate the 700 MHz spectrum by January 1, 2007.

In related action, the committee also passed the Rural Universal Service Equity Act of 2003 (S. 1380). Introduced by Senator Gordon Smith (R-Ore.), the bill would require the Federal Communications Commission to change the formula that determines which states are eligible for the federal universal service program. Under the current program, only ten states are eligible to receive federal universal service funds. S. 1380 would ensure funding for several other states, including Oregon, New Mexico, Nevada, North Dakota, and Washington. The bill is unlikely to be enacted this year, but will serve as a marker when Congress rewrites the Telecommunications Act next year.

 

 

Health Insurance Pools Legislation

The Senate Health, Education, Labor, and Pensions (HELP) Committee last week approved by voice vote a bill (S.2283) to increase funding for state high-risk health insurance pools.  The measure expands upon the Trade Act of 2002 which appropriated $100 million over three years to encourage states to establish high-risk insurance pools intended to provide coverage to people who have been denied a policy in the individual market or who can obtain coverage only at very high rates.  However, that funding expires September 30, 2004.  S. 2283 would provide $390 million over five years for states with existing pools and as seed money for states without them to establish pools.  The goal of the Senate sponsors is to move the bill as stand alone legislation on the Senate floor, but the House Energy and Commerce Committee has yet to act on the issue. 

 

 

Senate Committee Approves FY 2005 VA/HUD Appropriations Bill

After adding $2 billion in "emergency spending" for veterans' health care and NASA, the Senate Appropriations Committee last week, approved the fiscal year (FY) 2005 spending bill for Veterans Affairs, Housing and Urban Development, and independent agencies (VA/HUD). The inclusion of the emergency funding virtually ensures that this measure will need to be included in a larger omnibus spending bill because of opposition from House Republican leaders and the White House. In addition, inclusion of an extension of a subsidy for milk production may also be a point of contention in negotiations of an omnibus.

The Senate bill includes $36.4 billion for HUD, an increase of $1 billion over FY 2004. The Section 8 voucher program would receive $20.7 billion, an increase of $1.4 billion from FY 2004 and $2.2 billion more than the President's request. Appropriators also ordered all housing authorities to begin their fiscal years in January. Since HUD would not have to fund some housing authorities for a full year in 2005, this accounting maneuver would save approximately $1 billion.

In addition, the committee adopted the FY 2005 budget for the Environmental Protection Agency, including reinstatement of the $500 million cut in the Clean Water state revolving fund (SRF) made by the House Appropriations Committee. The committee approved by voice vote $1.35 billion for the SRF, rather than the $850 million the Administration had proposed and the House committee adopted. The Administration, as well as previous Administrations, had proposed significant cuts in the Clean Water SRF, but Congress has routinely reinstated the funding. Governors, state water agencies, the construction industry, and environmental groups had strongly lobbied the Senate to restore the money. For the Drinking Water state revolving fund (DWSRF), the committee approved the same $850 million level requested by the Administration. The House-passed VA/HUD bill includes $845 million for the DWSRF.

 

Key Committee Meetings and Markups

Education

  • The House Education and the Workforce Subcommittee on 21st Century Competitiveness has scheduled a Tuesday, September 28, hearing at 10:00 a.m. in 2175 Rayburn House Office Building on legislation dealing with state education grant funding and criminal information sharing (H.R. 2649).
  • The Senate Governmental Affairs Subcommittee on Financial Management, the Budget, and International Security will hold an oversight hearing on Thursday, September 30, at 10:30 a.m. in 342 Dirksen Senate Office Building on Section 529 College Savings Plans.

Energy and Environment

  • The House Agriculture Committee has scheduled a Wednesday, September 29, hearing at 1:30 p.m. in 1300 Longworth House Office Building on the farm credit system.
  • The House Science Committee is scheduled to mark-up legislation (H.R. 4546) to reauthorize the National Oceanic and Atmospheric Agency (NOAA) on Wednesday, September 29, at 2:00 p.m. in 2318 Rayburn House Office Building.
  • The House Resources Subcommittee on Fisheries Conservation, Wildlife, and Oceans has scheduled a Thursday, September 30, hearing at 10:00 a.m. in 1324 Longworth House Office Building on legislation (H.R. 4368) that would transfer NOAA to the U.S. Department of Interior (rather than remaining in the Commerce Department).
  • The Senate Energy and Natural Resources Committee will hold an oversight hearing on low-level radioactive waste on Thursday, September 30, at 10:30 a.m. in 366 Dirksen Senate Office Building.
  • The House Energy and Commerce Subcommittee on Environment and Hazardous Materials will hold a Thursday, September 30, hearing at 12:30 p.m. in 2123 Rayburn House Office Building on drinking water security.

Homeland Security

  • The House Financial Services Committee has scheduled a Wednesday, September 29, markup of terrorism risk insurance (H.R. 4634) at 10:00 a.m. in 2128 Rayburn House Office Building.
  • The House Transportation and Infrastructure Committee has scheduled a markup for Wednesday, September 29, at 11:00 a.m. in 2167 Rayburn House Office Building on aviation security legislation (H.R. 5082).
  • The House Transportation and Infrastructure Committee has scheduled a markup for Wednesday, September 29, at 4:00 p.m. in 2167 Rayburn House Office Building on legislation (H.R. 5082) that would designate the U.S. Department of Transportation (rather than the Department of Homeland Security) as the lead agency on security issues affecting the nation's bus and rail systems.

Transportation.

The House Government Reform Subcommittee on Government Efficiency and Financial Management will hold a hearing on private sector participation in transportation on Thursday, September 30, at 10:00 a.m. in 2154 Rayburn House Office Building.