THIS WEEK ON THE HILL

Congress returned from their one-week recess to focus on a handful of legislative items including the budget reconciliation process required under the FY 2006 budget resolution. Senate authorizing committees are expected to report their proposals this week for at least $35 billion in spending cuts to mandatory programs and other savings over five years. Republican leadership in the House has called for increasing the $35 billion package of mandatory program savings to $50 billion and is scheduled to consider an amendment to the budget resolution to increase its savings targets. They have also proposed a 2 percent across-the-board cut for all discretionary programs and a package of rescissions to previous appropriations. The House deadline for authorizing committees to report savings is Wednesday, October 26. The Senate Budget Committee is scheduled to mark-up the committee's proposals and submit one budget reconciliation bill. The House Budget Committee will likely mark-up a bill the week of October 31.

The Senate Finance Committee is tentatively scheduled to mark-up its reconciliation package by this Wednesday, October 19. It appears that the package could contain $12 billion in total savings from Medicaid reform proposals. The package is also expected to include savings to the Medicare program, such as eliminating the physician pay cut and reducing payments to Medicare managed care plans, home health agencies, skilled nursing facilities, and hospitals. It is also anticipated that Chairman Grassley (R-Iowa) will attempt to include a scaled-back Katrina health care relief bill (S. 1716) as part of the package. The House Energy and Commerce Committee is expected to move its own reconciliation package that could include Medicaid reforms for drug reimbursement, transfer of assets for long-term care, and increasing cost-sharing. It is unclear if any Katrina related provisions will be included in the House package. Either package may also include $1.2 billion in savings to provider taxes for managed care organizations (MCOs). This provision would currently affect four states.

FLOOR SCHEDULES (WEEK OF OCTOBER 17)

The Senate convened today and is expected to spend most of the week debating the FY 2006 Transportation-Treasury-HUD appropriations bill.

The House also convened today to consider three measures under suspension. Beginning tomorrow, the House will consider eight additional measures under suspension as well as the Personal Responsibility in Food Consumption Act of 2005 (H.R. 554), which would provide liability relief for the food industry from lawsuits by individuals who say the food led to their obesity or related health issues; the Protection of Lawful Commerce in Arms Act (S. 397), which would ban civil liability actions against gun manufacturers; and a concurrent resolution to make amendments to the budget resolution to increase the reconciliation savings target from $35 billion to $50 billion. No votes are scheduled on Friday, October 21.

APPROPRIATIONS

The Senate is scheduled to consider the FY 2006 Transportation-Treasury-Housing and Urban Development (HUD) appropriations bill, with Katrina-related amendments expected. The bill, H.R. 3058, would provide about $65 billion in discretionary funding. The Senate may also incorporate the District of Columbia funding bill (S. 1446) into H.R. 3058 so it more closely resembles the House bill and avoids the need for multiple conferences.

The only remaining appropriations bill remaining for Senate consideration is the Labor-Health and Human Services-Education measure (H.R. 3010).

CONGRESSIONAL SCHEDULE

Over the next several weeks, Congress will be busy with a full agenda; it is anticipated that the Senate will remain in session through mid-December. It is possible that the House could adjourn before Thanksgiving, but that date could slip. The focus will be on finalizing the remaining FY 2006 appropriations bills (House has completed, Senate has 2 more; 8 measures still need to be reconciled between the House/Senate). The current continuing resolution (CR) expires on Friday, November 18.

Legislation is anticipated with regard to a second phase of tax relief to aid the victims of Hurricane Katrina and businesses that employ and assist them. As discussed above, budget reconciliation is expected to dominate the Fall schedule. Other issues include pension reform, curbing methamphetamine production, immigration reform and eminent domain.

For a list of this week's federal grants, please visit www.nevadadc.org