THIS WEEK ON THE HILL

The House and Senate have adjourned for a week-long recess. They will reconvene on Monday, March 27.

SENATE PASSES BUDGET RESOLUTION

Last week the Senate passed their FY 2007 $2.8 trillion budget resolution, 51-49. The Senate made changes to the Administration's FY 2007 budget including dropping plans to curb Medicare spending and canceling plans to extend certain tax cuts. An amendment that would add $7 billion for health and education programs was agreed to. The bill also includes $3 billion in revenues from drilling in the Arctic National Wildlife Refuge (ANWR) and establishes the Gulf Coast Protection, Reconstruction, and Recovery Fund, which would provide $10 billion over five years for building levees, restoring coastal areas, and protecting infrastructure. The Senate agreed to several amendments that would increase the original $873 billion discretionary spending cap by more than $9 billion, including:

$3.32 billion for LIHEAP to fully fund the program at $5.1 billion;
$986 million in homeland security funding for first responders and other activities, increasing funding for the state homeland security grant program by $150 million over last year, and $300 million for port security grant funding (by voice vote);
$1.23 billion by eliminating a proposed increase in federal fees for airline passengers; and
creation of a reserve fund for pandemic flu preparedness planning (by a vote of 99-1);

Because the budget resolution is nonbinding, Congress is able to pass spending bills without it; however, getting both chambers to agree on a blueprint makes the process easier.

The Senate also voted to raise the national debt ceiling by $781 billion to nearly $9 trillion from $8.2 trillion, 52-48. The House approved the debt limit increase through a parliamentary procedure that did not require a roll call vote.

HOUSE APPROVES $92 BILLION SUPPLEMENTAL SPENDING BILL

Last Thursday, the House voted 348-71 to approve close to $92 billion in supplemental funds for Iraq and Afghanistan military operations and Hurricane Katrina cleanup. Most of the bill ($67.6 billion) would pay for military operations in Iraq and Afghanistan. Of this amount, $4.8 billion would go to training and equipping Iraqi and Afghan security forces. Some of the new war money would pay for operations and maintenance costs, equipment replacement, personnel expenses, armored vehicles and money for the Pentagon to develop technology to detect and destroy makeshift roadside bombs.

The bill also includes $19.2 billion for the cleanup and rebuilding of the Gulf Coast in the wake of Hurricane Katrina. Close to $9.6 billion would go to the Federal Emergency Management Agency (FEMA) for removing debris, reimbursing state and local governments, building repairs and helping victims.

The Senate will take up its version of the measure when they return from spring recess. Congress will then send a final bill to the president shortly after the Senate acts.

HOUSES PASSES LIHEAP BILL

Last week, the House passed legislation (S.2320) that will provide additional funding for the Low-Income Home Energy Assistance Program (LIHEAP) for FY 2006. The legislation, sponsored by Senator Olympia Snowe (R-Maine), passed the Senate last week. The measure would shift $1 billion provided in the Deficit Reduction Act, from FY 2007 to the current fiscal year, with $500 million set aside for formula funding and $500 million for contingency funding. The legislation would prohibit the $1 billion from being used for administrative expenses. According to a recent chart of state allotments, Nevada will see a $4 million increase in LIHEAP funds under the bill.

The legislation will be sent to the president for his signature.

The Low-Income Home Energy Assistance Program was created by Congress in 1981 and provides funds to states in the form of a block grant that can be used for many types of energy assistance for low-income families.

IMMIGRATION REFORM

Last week, the Senate Judiciary Committee continued mark-ups on an immigration reform bill. The committee's mark will include several enforcement provisions as well as a guestworker program. It is possible that the bill will incorporate language on a guestworker plan from two major Senate immigration bills sponsored by Senators Edward M. Kennedy (D-Mass.), John McCain (R-Ariz.), John Cornyn (R-Tex.), and Jon Kyl (R-Ariz.).

Several amendments were adopted at the markups, including an amendment by Senator Jeff Sessions (R-Ala.), which would authorize state and local law enforcement to investigate, arrest, detain, or transfer an undocumented immigrant to federal custody. A second-degree amendment, which was offered by Senator Arlen Specter (R-Pa.) and adopted by the committee, would specify that state and local law enforcement's assistance would be voluntary. The Specter amendment also would provide a cost computation to reimburse state and local law enforcement agencies for detaining and transporting undocumented immigrants to federal custody.

Senate Majority Leader, Bill Frist (R-Tenn) has set a deadline for Monday, March 27 for the committee to finish its work and bring the legislation to the floor. If they are unable to meet the deadline, Frist will move forward on a bill he has introduced focusing on border enforcement. His proposal does not address the issue of illegal immigrants currently residing in the U.S. and how to account for their economic contribution.

In December, the House approved an enforcement-only bill including provisions such as a 700-mile border fence along the southern border and making it a felony to be in the U.S. illegally. Reconciling the two different versions crafted by both chambers could be incredibly difficult, especially in an election year.

SENATE COMMITTEE APPROVES ALTERNATIVE TO AHP LEGISLATION

Last week, the Senate Health, Education, Labor and Pensions (HELP) Committee approved the "Health Insurance Marketplace Modernization and Affordability Act," (S. 1955) on a party-line vote of 11-9. The bill, sponsored by committee Chairman Mike Enzi (R-Wyo) took two days to mark-up after various amendments were offered. The bill would assist small businesses in providing affordable health care coverage and is viewed as an alternative to Association Health Plans or AHPs, long opposed by some Governors, Insurance Commissioners, and Attorneys Generals. AHP legislation passed the House in July 2005, but has had little support in the Senate.

A key difference between the Enzi bill and AHP legislation is that AHP legislation would eliminate the majority of state regulations and oversight of health insurance, turning it over to the U.S. Department of Labor. The Enzi bill would retain state regulatory authority; in addition, it would allow small businesses to provide coverage that varies from current state requirements as long as it meets the requirements of a state employee health plan in one of the five most populous states (CA, NY, TX, FL, IL). It would also create a national insurance board that would attempt to harmonize state regulatory laws in the areas of form and rate filing, market conduct review, prompt payment of claims and internal review. A variety of business groups have endorsed the proposal, while many organizations have chosen not to take a position. Many groups have acknowledged progress moving away from the AHP model, but still caution that superseding states' small insurance rules could potentially do unintended harm and have a negative effect in some states.

It is not known when the bill might be scheduled for floor consideration.

For more information, please visit the Senate HELP Committee website: http://help.senate.gov/