THIS
WEEK ON THE HILL
The Senate returns this week from recess.
Both chambers will push to complete action on a budget reconciliation package,
the two remaining FY 2006 appropriations bills (Defense and Labor-Health and
Human Services Education), the Defense authorization bill, and legislation to
renew the Patriot Act before adjourning for the year. The House also
plans to address a border security/immigration bill, with legislation
(H.R. 4437) scheduled for floor action later during the week. The bill
was approved by the House Judiciary Committee last Thursday and addresses
border security and immigration enforcement issues. According
to Majority Leader Bill Frist, the Senate plans to take up their
immigration proposal sometime in February.
RECONCILIATION PACKAGES.
Both chambers continue to work to resolve differences in their spending
reconciliation packages. The Senate measures calls for $35 billion in
savings over five years; the House bill totals $49.9 billion.
One expectation is that Members
could split the difference at $42 billion in spending cuts over five years. Obstacles
still remain, however over ANWR,
Medicare and Medicaid cuts, and mining provisions contained in the
House-passed measure.
TAX RECONCILIATION MEASURES.
The two chambers will also work to reconcile their tax reconciliation
measures, but it remains unclear whether they can complete work on measures
before adjourning for the year. The House version
that passed last week, totals $56.1 billion and extends numerous
tax cuts, including
the reduced tax rate for capital gains and
dividend income. The House package includes one-year
extensions for the state and local sales tax deduction, the Work Opportunity
Tax Credit, and the Welfare-to-Work Tax Credit.
The Senate passed its $59.6 billion version
on November 18. That bill does not contain an
extension for capital gains on dividends,
but does include hurricane reconstruction provisions not contained
in the House bill. The House did
however, pass stand-alone
legislation providing a package of Hurricane Katrina reconstruction and
business tax breaks that the Senate is now expected to consider. The
Senate bill also includes a large package of charitable incentives and
reforms, as well as revenue raisers not in the House bill. Senate tax cutting
authority under reconciliation protections is capped at $60 billion, but that
figure is allowed to increase to $70 billion once a spending reconciliation
conference report is filed.
FLOOR
SCHEDULE
SENATE.
The Senate will address conference reports to authorize expiring provisions
of the PATRIOT Act, the Defense authorization bill, the FY 2006
appropriations bills for Defense and Labor-HHS-Education, and the spending
reconciliation package.
HOUSE The House
convened this afternoon in a pro
forma session. Tomorrow the chamber is scheduled to consider 16
measures under suspension, including a bill to facilitate the provision of
assistance by the Department of Housing and Urban Development for the
cleanup and economic redevelopment of brownfields and legislation to curb
the production, sale, and abuse of methamphetamine. The
chamber is scheduled to address conference reports to authorize expiring
provisions of the PATRIOT Act, immigration/border security legislation, the
Defense authorization bill, the FY 2006 appropriations bills for Defense and
Labor-HHS-Ed, and the spending reconciliation package
REMAINING
FY 2006 APPROPRIATIONS BILLS
The House inched closer while in session last
week to completing the last two FY 2006 appropriations bills.
Conferees to the Labor-HHS-Education Appropriations Bill (H.R. 3010) were
named for the second time. Leadership and conferees are hopeful that a
second conference with the Senate and increased funding for rural health care
programs will win back a majority of the 22 GOP votes that contributed to the
defeat of the bill last month. It appears that the Defense spending bill
may act as the vehicle for a "catch-all"
package that could include $4 billion in emergency avian flu funding and
potentially a 1 or 2 percent across-the-board budget cut.
Judiciary
Committee Approves Immigration Bill
Last week, the House
Judiciary Committee approved a border security and immigration enforcement
bill (H.R. 4437) by a vote of 23-15. House floor consideration is expected sometime
this week. The measure also includes border security provisions
that were approved during a House Homeland Security Committee markup last
month. H.R. 4437 provides the military with a greater role in border security
by using defense personnel and equipment in surveillance to support civilian
law enforcement agencies; increases the number of full-time border patrol
agents and detention beds; establishes a mandatory minimum sentence for alien
smuggling crimes; and requires employers to verify the legal immigration
status of their workers by using an employment eligibility verification system
that is currently voluntary. Unlike the Administration's immigration proposal
and the major Senate immigration reform bills, H.R. 4437 does not include a
guest worker program. The Senate is expected to consider comprehensive
immigration reform early next year.
House
Passes Broad Terrorism Insurance Bill
Last week, the House passed (under
suspension) a two-year extension of
the 2002 Terrorism Risk Insurance Act (TRIA) (P.L. 107-297) by a vote of
371-49. The measure extends the federal backstop for terrorism insurance and was
originally enacted following the September 11, 2001, terrorist attacks, aimed
at stabilizing the commercial insurance market by committing the federal
government to help pay the costs of large-scale terrorist attacks after
insurers have covered certain loss levels.
The current program is set to expire December 31.
House and Senate negotiators will now have to reach a compromise on an
extension before Congress adjourns. The House measure is an amended version of
a Senate bill (S. 467) that would extend TRIA. Before passing the measure, the
House substituted the text of its own version (H.R. 4314), which was approved
by the Financial Services Committee last month.
Both the House and Senate measures would increase the
trigger levels - $50 million in 2006 and $100 million in 2007 - that
losses would have to reach before the federal program would kick
in. Under current law, the
trigger is $5 million. Insurers also would have to pay out certain levels of
claims although the bills differ on those levels. Unlike the Senate bill, the
House bill would make significant additions to the program. For example, it
would expand TRIA by including coverage for group life insurance. It also
requires that insurers in the program write policies that cover attacks
stemming from nuclear, biological, chemical, and radioactive weapons. In
addition, it would cover losses from acts of domestic terrorism. The House
bill also establishes a joint commission of public and private entities to
draft a proposal for a long-term terrorism risk insurance pool. The
Administration has expressed objections to the House version and its support
for the Senate TRIA measure.