THIS WEEK ON THE HILL

The Senate is not in session this week, but will reconvene next Monday, May 9.

The House will convene tomorrow, May 3, to consider 6 measures under suspension. Debate will begin on the Vocational and Technical Education for the Future Act (H.R. 366), a bill that would reauthorize and amend the 1998 Carl D. Perkins Vocational and Technical Education Act. The Senate passed their version of the bill in March, by a vote of 99-0.

The House could also begin debate on the Federal Deposit Insurance Reform Act of 2005 (H.R. 1185) which would increase the insurance limit by the Federal Deposit Insurance Corporation for individual accounts. In addition, it is anticipated that the House could vote this week on a conference agreement on the $81.3 billion FY 2005 supplemental appropriations bill to fund the war in Iraq and Afghanistan as well as other foreign policy priorities. The Senate is expected to vote on it once they return from recess. Differences still remain over issues such as the inclusion of domestic earmarks, border security, and defense funding.

HOUSE/SENATE PASS FY 2006 BUDGET CONFERENCE REPORT

On Thursday, April 28, the House and Senate passed the conference report to the FY 2006 budget resolution by votes of 214-211 and 52-47 respectively. The plan calls for a total of $34.7 billion in spending cuts over five years. An agreement was reached on instructions calling for no more than $10 billion in savings from Medicaid, but these cuts would be delayed one year, until 2007. A Medicaid Reform Commission (consisting of state/federal officials) would be established and report its findings for program savings to Congress by September 1. The Senate Finance Committee and House Energy and Commerce Committee would then have to identify their targeted cuts by September 16.

Other savings proposed include $2.4 billion by allowing energy exploration in the Alaska Natural Wildlife Refuge (ANWR), essentially from the sale of leases on land for drilling in ANWR. This issue is also in the House energy bill and will likely remain on a two-track strategy. By including it in reconciliation, the measure is protected from filibuster in the Senate.

In addition, instructions call for $6.6 billion in savings from the Pension Benefit Guaranty Corporation (by increasing pension premiums) and $3 billion from agriculture programs. Pell Grants receive a $4.3 billion reserve fund but instructions call for cuts to other education programs.

The tax cut reconciliation figure is $70 billion, allowing for the extension of a series of expiring tax cuts.

HOUSE PASSES ENERGY BILL

Two weeks ago, the House passed the comprehensive energy bill (H.R.6) by a vote of 249-183. After a day of lively debate and votes on 16 amendments, the House voted to accept 10 and reject 6. The most contentious debate occurred on a motion to strike the product liability waiver for MTBE. Rep. Lois Capps (D-Calif.) was able to introduce her MTBE motion despite the refusal of the Rules Committee to approve it because the rule did not specifically protect the bill from motions regarding the Unfunded Mandate Reform Act of 1995. On Tuesday, the Congressional Budget Office said that the liability waiver represented an unfunded mandate to local governments who might have to pay for MTBE cleanups if they were unable to sue manufacturers for damages. After more than a half-hour of debate, the motion to strike the waiver provision was defeated in a close vote.

Other defeated amendments included one to strip subsidies from companies engaged in deep drilling operations in Mexico, and one to strike a provision to give the FERC clear authority to site and approve permits for liquefied natural gas (LNG) facilities, which would have relegated a state's role to consultation and post-construction safety inspections.

The Senate has not yet passed their version of an energy bill, but could start work on its version sometime in the upcoming weeks.

SENATE DEBATES HIGHWAY BILL

The Senate continued floor consideration of the $284 surface transportation reauthorization bill last week. The chamber voted 51-49 to table an amendment by Senator Christopher Bond that would have removed a 2 percent set aside of construction dollars for a highway stormwater discharge mitigation program. However, Senator Bond could still attempt to strike the language during conference. The Senate approved an amendment by Senator John Thune to strip language calling on the federal government to ensure that highway projects "consider the preservation, historic, scenic, natural, environmental, and community values" of the area where they are being built.

The Senate will continue debate returns from its one-week recess on Monday, May 9.

SUPPLEMENTAL BILL BEING CONFERENCED

House and Senate conferees continue their efforts to reach an agreement on the $80 billion fiscal year 2005 supplemental appropriations bill to fund the war in Iraq and Afghanistan and other foreign policy priorities. Among the major issues of contention is a Senate proposal to add 650 Border Patrol agents at a cost of $350 million, and a House proposal to include the REAL ID Act.

ASBESTOS LEGISLATION

The Senate Judiciary Committee began its markup of the Fairness in Asbestos Injury Resolution Act of 2005 (S. 852) last week, which would create a $140 billion trust fund to compensate victims of asbestos. The committee considered 16 amendments and adopted several by voice vote as part of the manager's amendment. Also adopted was an amendment by Senator Dianne Feinstein to provide for the expedited review of an anticipated constitutional challenge to payment of the fund by a trust representing bankrupt asbestos manufacturers. Seven committee members have signed on as cosponsors of the bill, while six members have indicated that they do not support the measure in its current form.

COMMITTEE APPROVES AMTRAK REAUTHORIZATION

The House Transportation and Infrastructure Committee last week approved a bill authorizing $2 billion per year for three years for Amtrak. The Administration has proposed transitioning Amtrak into an operating company and creating an interstate compact to maintain the Northeast Corridor service.

COMMITTEE APPROVES HOMELAND SECURITY DEPARTMENT AUTHORIZATION BILL

The House Homeland Security Committee approved the Department of Homeland Security Authorization Act for Fiscal Year 2006 (H.R. 1817), which would provide $34.2 billion for departmental programs. The measure would refine the color-coded terror alert system; add 2,000 Border Patrol agents; strengthen intelligence gathering; require a study of the department's technology and equipment; and create a grant program for cyber security education and training. Several sequential referrals are expected, but committee Chairman Christopher Cox (R-Calif.) says he expects H.R. 1817 to be on the House floor in mid May.

For a list of federal grants for the past two weeks, please visit our website at www.nevadadc.org