MONDAY, MAY 15, 2006 

Immigration Reform

The Senate is slated this week to resume debate on broad immigration reform legislation (S. 2611), with debate encompassing border security issues, enforcement of employment regulations, a temporary guest worker program and the legalization of undocumented immigrants. 

President Bush will address the nation on his immigration plan tonight at 8 PM (EST) a few hours after the Senate resumes debate on the bill. The president's speech will be his first on domestic policy from the Oval Office and he will use the time to renew his calls for an overhaul of the nation's law that includes provisions to grant illegal immigrants the right to eventually work here legally. He will also address several other proposals aimed at sealing the border and cracking down on undocumented workers in the U.S., and the employers who hire them. A plan that would send National Guard troops to temporarily help seal the nation' s southern border could also be discussed. According to a White House spokesperson, the idea of using National Guard troops to bolster border security came out of meetings with members of Congress and state governors; however, some lawmakers and governors of both parties have expressed concerns with the plan. White House officials stated they believe the president's address would be welcomed by voters who want tighter control of the borders. Officials say that adding to the 200 or so National Guard troops already protecting the borders, would supplement the Border Patrol as it adds agents whose training and deployment take time. 

The Senate measure, S. 2611, sponsored by Senators Mel Martinez (R-FL) and Chuck Hagel (R-NE) contains enforcement provisions similar to those passed by the House last year, but the bill also includes language that would assist undocumented immigrations. The bill would establish multi-tiered system for handling undocumented workers. The revised package also includes enhanced border security, the authorization to hire an additional 12,000 new border patrol agents, deploying new technologies such as unmanned aerial vehicles, requiring tamper-proof identification cards to replace easily forged Social Security cards used now used to obtain work and ratchet up penalties on employers who hire illegal immigrants. Senator John Ensign (R-NV) several weeks ago introduced an amendment to the immigration bill that would reimburse states for the cost of putting National Guard troops on the border. While the amendment was blocked during debate, he plans to work to include it as part of the revised immigration bill. It is anticipated that several amendments will be introduced, with floor consideration likely continuing through Friday, May 26. 

An agreement was reached on the appointment of conferees to negotiate a final bill with the House, which passed its immigration bill last December. The House measure (H.R. 4437) is primarily an enforcement bill and does not contain language on a guest worker program. A total of 26 conferees will be named, including seven Republicans and five Democrats from the Judiciary Committee and fourteen additional members to be appointed by the majority and minority leaders (seven each).

Senate Passes Tax Reconciliation Conference Report

Last week, the Senate approved the conference report to the five-year, $70 billion tax reconciliation bill (H.R. 4297). The measure includes a two-year extension of the 15 percent top tax rates on capital gains and dividends income, a one-year alternative minimum tax "patch" and revenue raisers. 

An additional "trailer" packages containing tax extenders (including the research and development tax credit, state and local tax deductibility, and the welfare-to-work tax credit) that were removed from the reconciliation bill because of revenue limitations, remains to be finalized. It appears that the measure will be attached to the conference report on pension reform, however, it will not enjoy any of the procedural protections afforded under reconciliation. To avoid a Senate budget point of order, the trailer package must be scored between $20 billion and $25 billion. 

The House adopted the conference report last week by a vote of 244-185. 

Senate Fails to Invoke Cloture on Small Business Health Legislation

Last week, the Senate failed to invoke cloture by a vote of 55-43 on the Health Insurance Marketplace Modernization and Affordability Act (S. 1955), thereby blocking further consideration of the bill in its present form. The bill, sponsored by Senator Mike Enzi (R-Wy) 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. The bill had strong support from the Chamber of Commerce, the National Federation of Independent Business, Realtors and other business groups, who wanted to be able to join larger insurance purchasing pools that would have allowed them to negotiate better prices. Democrats disagreed, saying the bill would do more harm than good as the insurance plans would be exempt from the states' varied mandated benefits, including mammograms and other types of care. The plans would also be exempt from some state rules that limit price differentials between younger, healthier people, and older, sicker ones. 

The Senate earlier in the week, failed to invoke cloture on two medical malpractice reform bills - the Medical Access Protection Act of 2006 (S.22) and the Healthy Mothers and Healthy Babies Access to Care Act (S. 23) by a votes of 48-42 and 49-44 respectively. The action eliminates further consideration of either measures this year. For more information, please view last week's weekly update. 

House Passes Defense Authorization with Resources for National Guard

The House last week passed the $512.9 billion National Defense Authorization Act for Fiscal Year 2007 (H.R. 5122) by a vote of 396 to 31. The measure provides for an end-strength of 350,000 for the Army National Guard (17,000 above the Administration's request of 333,000) and 107,000 for the Air National Guard. In addition, H.R. 5122 provides $318 million for the Army National Guard to fund equipment requirements for the 17,000 increase in end-strength.

In the Senate, the Armed Services Committee completed marking up its version of the Defense authorization bill (S. 2507) last week, and floor consideration is expected in early June.

House Appropriations Committee Approves Increased Funding for State Veterans Homes

The House Appropriations Committee recently approved FY 2007 funding for veterans programs, including an increase of $20 million for improvements to state veterans homes. The measure does not include additional fees for healthcare and other services as requested by the Administration, and expands community-based outpatient clinics for veterans health services. Overall, mandatory veterans benefits are increased by $2.4 billion over last year. The measure also provides $5.5 billion for base realignment and closure (BRAC) activities.



The Senate is scheduled to return to its debate on legislation to reform the nation's immigration laws (S. 2611), with debate focusing on border security issues, enforcement of employment regulations, a temporary guest worker program and the legalization of undocumented immigrants. On the same note, President Bush will address the nation on his immigration plan this evening at 8 PM (EST), a few hours after the Senate resumes debate on the bill. The president's speech will be his first on domestic policy from the Oval Office and he will use the time to renew his calls for an overhaul of the nation's law that includes provisions to grant illegal immigrants their right to eventually work here legally. He will also address several other proposals aimed at sealing the border and cracking down on undocumented workers in the U.S., and the employers who hire them. A plan that would send National Guard troops to temporarily help seal the nation' s southern border could also be discussed. 

Even though a FY 2007 budget resolution has not been adopted, the House is scheduled to consider three FY 2007 appropriations bills based on a cap of $873 billion for overall discretionary spending. This level reflects the budget resolution that was approved by the House Budget Committee and is equal to the President's request. On Wednesday, May 17, the chamber will work on the Agriculture Appropriations Bill, the Military Quality of Life/VA measure and the Interior/Environment measure. 

The House could also return to its debate of the budget resolution if differences are resolved over efforts by some members to increase funding by $7.2 billion for health and education programs (similar to the Senate version). Appropriators have agreed to provide the Labor-Health and Human Services Education Subcommittee with an additional $4.1 billion (shifted from the Defense allocation). It appears that an agreement concerning the outstanding issue of a proposed "rainy day" fund has been made, with appropriators accepting a proposal to require them to receive Budget Committee permission to spend more than $6 billion (higher than the original proposal of $4.3 million) on non-defense emergencies. If the House fails to adopt a budget, it could pass a "deeming" resolution that sets the overall discretionary spending level at $873 billion. 

House and Senate negotiators continue their efforts to reconcile their respective $92.2 billion and $109 billion versions of the FY 2006 emergency supplemental appropriations bill. Leaders hope to complete the conference report within the next two weeks, before Congress adjourns for the Memorial Day recess. The President has threatened to veto any measure that calls for more than his $94.5 billion request (includes the $2.3 billion for avian flu preparedness efforts). 
A final pension reform conference report is expected to include a $20 billion to $25 billion trailer package containing tax extenders (including the research and development tax credit, state and local tax deductibility, and the welfare-to-work tax credit) that were removed from the tax reconciliation bill last week. 

SENATE FLOOR. The Senate returns today, May 15, and is scheduled to consider the Comprehensive Immigration Reform Act of 2006, with debate on the measure expected to last through the rest of this week. 

HOUSE FLOOR. The House will meet in pro forma session today, May 15, with no legislative business scheduled. Tomorrow, the chamber will consider ten measures under suspension. They will then focus on The Forest Emergency Recovery and Research Act (H.R. 4200) which would allow federal agencies to expedite logging and forest recovery projects on land damaged by natural disasters. They will then turn to appropriations bills and also consider action of the FY 2007 budget resolution.

House Appropriations Committee Approves 302 (b) Allocations

Last week, the House Appropriations Committee approved (by a vote of 37-25) the 302(b) allocations proposed by Chairman Jerry Lewis (R-Calif.) dividing $873 billion in fiscal year 2007 discretionary budget authority (assumed from the House budget resolution) among its eleven subcommittees. The plan shifts $7.4 billion from the President's budget request for defense, foreign affairs, veterans and legislative accounts into domestic spending. A listing of proposed 302(b) allocations is available on the House Appropriations Committee web site. 

In a related development, House Majority Leader John Boehner (R-Ohio) suggested that the House could return to consideration of the $2.8 trillion fiscal year (FY) 2007 budget resolution (H. Con. Res. 376) this week. Outstanding issues include calls to increase the overall discretionary spending level and establish new limits on emergency spending.

Key Committee Meetings 
Week of 5/15 - 5/19
Energy and Natural Resources: The Senate Energy and Natural Resources Committee will hold a hearing on the status of the Yucca Mountain nuclear waste storage project, for Tuesday, May 16, at 10:00 AM in 366 Dirksen.
 
Resources:  The House Subcommittee on Energy and Mineral Resources (Rep. Gibbons, R-NV chairman) will hold a hearing on the energy and mineral requirements for renewable and alternative fuels used for transportation and other purposes; Thursday, May 18, at 11:00 AM, 1324 Longworth.
 
Indian Affairs:  The Senate Committee will hold a hearing on Indian youth suicide; Wednesday, May 17, at 9:30 AM, 485 Russell.
 
Energy and Commerce:  The House Energy and Air Quality Subcommittee will hold a hearing on the next generation of energy resources in America; Thursday, May 18, at 10:00 AM, 2322 Rayburn.
 
Commerce, Science, and Transportation:  The Senate Committee will hold a hearing on the Transportation Worker Identification Credential (TWIC) program.  TWIC is a tamper-resistant credential that contains biometric information about the holder that renders the card useless to anyone other than the rightful owner; Tuesday, May 16, 10:00 AM, 562 Dirksen.
 



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