MONDAY, MARCH 19, 2007

HOUSE APPROPRIATIONS COMMITTEE APPROVES SUPPLEMENTAL

The House Appropriations Committee on Thursday approved the $124 billion supplemental spending bill by a vote of 36 to 28, and House floor consideration is scheduled for next week. In addition, the Senate Appropriations Committee is scheduled to mark-up its version of the supplemental spending bill next week.

The House measure includes $750 million to prevent states from experiencing shortfalls in the State Children’s Health Insurance Program (SCHIP) in fiscal year 2007, but members dropped Section 6002 “Funding Provisions” and Section 6003 “Deficit Reduction Act Technical Corrections Related to Medicaid” (Title VI) from the bill. Section 6002 included the three funding provisions for the SCHIP shortfall spending: the requirement for the tamper resistant prescription pads, the repeal of continuous enrollment for certain beneficiaries in Medicaid, and the rescission for unobligated funds for reimbursement of emergency health services provided to undocumented aliens (or Section 1011 funds). Section 6003 included changes to the DRA provisions pertaining to state flexibility in benefit packages, documentation, and limitation on sales at a nominal price.

In addition, the House supplemental reflects more funding for other domestic items (above the President’s original $103 billion request), including $4.3 billion (from $3.4 billion) for Gulf Coast disaster relief, $500 million for wildfire management, $2.5 billion for homeland security needs, $1 billion for pandemic flu preparedness,$4.3 billion for agriculture disaster relief, and $400 million for low-income energy assistance. The House-passed minimum wage increase/$1.3 billion small business tax breaks package is included in the measure, as well as revised language giving more stringent state and local laws preemption authority over federal chemical security regulations and a government contracting oversight measure.

 

CONRAD SAYS FARM BILL WILL NOT INCLUDE $20M BASELINE INCREASE

Senate Budget Committee Chairman Kent Conrad (D-ND) announced that the FY 08 budget draft will not include a $20 billion increase in the agriculture baseline.  Supporters of a generous farm bill were hoping the baseline amount would be increased.  Instead, Chairman Conrad hopes to fashion a deficit neutral reserve fund that would provide up to $15 billion in additional money over five years, but would be completely paid for with matching offsets.  The FY 08 budget resolution determines the funding parameters for the next farm bill.

The House and Senate Agriculture Committees and Subcommittees continue to conduct various exploratory hearings on the different aspects of the farm bill.  On March 21, the Senate Agriculture Committee’s hearing will focus on the U.S. trade and food aid programs.  On March 28, a House Agriculture Subcommittee will examine proposals to amend the crop provisions of the current farm bill.

While it is unlikely to move through the agriculture committees, an alternative farm bill reauthorization proposal has been introduced by Representatives Kind (D-WI) and Gerlach (R-PA).  The bill, titled the Healthy Farms Food and Fuels Act, has 70 cosponsors thus far and is intended to set the stage for efforts to expand the farm bill’s conservation and energy programs. 

Specifically, the measure would provide significant funding increases for six conservation programs, provide more support for organic farmers, and provide more funding for schools to purchase fruits and vegetables.  The measure would offer a $3 billion increase in funding per year for conservation programs, but does not explain how the increases would be paid for.
 


HOUSE COMMITTEE APPROVES VETERANS HEALTH MEASURES

Last Thursday the House Veterans Affairs Committee approved three bills concerning the health of veterans. H.R. 797 would modify compensation benefits for veterans with impaired vision in both eyes (currently, disability compensation is provided to veterans who are blind in one eye, and it increases as they gradually lose sight); and H.R. 327 would authorize suicide prevention programs at veterans medical centers and require the screening of patients for suicide risk.

In addition, the Veterans' Compensation Cost-of-Living Adjustment Act of 2007 (H.R. 1284) would set a routine cost-of-living increase for benefits of veterans with service-connected disabilities (the increase would become effective December 1, 2007).


HOUSE FINANCIAL SERVICES COMMITTEE HOLDS HEARING ON GSE REFORM

This past Thursday, the House Financial Services Committee held a hearing on reforming the regulatory oversight of the government-sponsored enterprises (GSE) of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Most of the testimony focused on bipartisan GSE reform legislation introduced last week.

The Federal Housing Finance Reform Act of 2007 (H.R. 1427) creates a new, independent regulator with powers similar to current banking regulators. This new regulator succeeds to the current authority of the Office of Federal Housing Enterprise Oversight (OFHEO) and Federal Housing Finance Board (FHFB). Most witnesses agreed that additional oversight of the GSEs is needed.

In addition, the bill creates an affordable housing fund, funded by contributions from Freddie Mac and Fannie Mae. For the first year, all funds would be directed to the Gulf States affected by Hurricane Katrina. Thereafter, funds would go to the states based on formulas to increase rental housing, homeownership, and public infrastructure activities in conjunction with housing. Most witnesses at the hearing supported this approach, but others underscored it flaws, including the bill's failure to acknowledge market realities related to affordable housing production and objections to using GSEs to fund the program.

 


THE WEEK AHEAD: Congress focuses on the FY2008 Budget Resolution and the Supplemental Appropriations bill this week.

The HOUSE is scheduled to begin consideration of its $124 billion fiscal year FY2007 supplemental spending bill on Wednesday, March 21.

The measure, which was approved by the House Appropriations Committee last week, reflects more funding for domestic items (above the President’s original $103 billion request), including $750 million to prevent states from experiencing shortfalls in the State Children’s Health Insurance Program (SCHIP) in FY 2007, $4.3 billion (from $3.4 billion) for Gulf Coast disaster relief, $500 million for wildfire management, $2.5 billion for homeland security needs, $1 billion for pandemic flu preparedness,$4.3 billion for agriculture disaster relief, and $400 million for low-income energy assistance. The committee also included a $1.3 billion small business tax breaks package to compliment its minimum wage increase proposal. 

The SENATE today began consideration of the Preserving United States Attorney Independence Act of 2007 (S. 214), with a vote on the measure scheduled tomorrow.  The remainder of the week will be devoted to consideration of the Senate's $2.93 trillion FY2008 budget resolution beginning Wednesday, March 21.  Numerous amendments are anticipated prior to a vote on final passage.

The Senate’s non-binding blueprint would cap discretionary spending at $948.8 billion, plus provide $2 billion in “advance appropriations,” representing $18 billion more than the President’s FY 2008 request.  The proposal also creates several reserve fund accounts, including one to reauthorize the State Children’s Health Insurance Program at “up to” $50 billion over five years; $15 billion of the total $50 billion in SCHIP comes from proposed Medicare savings while the other $35 billion would require the committees of jurisdiction to come up with offsets under “pay-as-you-go” budget rules. 

Placeholder amendments were approved by the Senate Budget Committee last week providing increased funding for health care, health information technology, veterans’ benefits, immigration, and child care. In addition, the budget resolution includes an alternative minimum tax “patch” for two years and leaves open the possibility of extending tax cuts set to expire in 2010 if they are offset. The plan also calls for the restoration of the “pay-as-you-go” budget rule in the Senate through September 30, 2017. It does not contain any reconciliation components.

HEARINGS AND MARKUPS

AGRICULTURE:  The Senate Agriculture, Nutrition, and Forestry Committee has scheduled a Wednesday, March 21, hearing at 9:30 a.m. in 328A Russell Senate Office Building on reauthorization of the Farm Bill.

The House Agriculture Subcommittee on Specialty Crops, Rural Development, and Foreign Agriculture has scheduled a Wednesday, March 21, hearing at 10:00 a.m. in 1302 Longworth House Office Building on rural development proposals in the Farm Bill.

ARMED SERVICES:  The House Armed Services Committee has scheduled a hearing on the second report by the Commission on the National Guard and Reserves, Friday, March 23, 11:00a.m., 2118 Rayburn House Office Building.

BUDGET: The House Budget Committee has scheduled a markup of its FY 2008 budget resolution on March 21 or 22 in 210 Cannon House Office Building.

EDUCATION: The Senate Finance Committee has scheduled a Tuesday, March 20, hearing at 10:00 a.m. in 215 Dirksen Senate Office Building titled “Realizing a Competitive Education: Identifying Needs, Partnerships, and Resources.”

The House Education and Labor Committee has scheduled a Wednesday, March 21, hearing at 10:30 a.m. in 2175 Rayburn House Office Building on reauthorization of the No Child Left Behind Act.

ENERGY AND ENVIRONMENT:  The House Natural Resources Subcommittee on Energy and Mineral Resources has scheduled a Tuesday, March 20, hearing at 2:00 p.m. in 1334 Longworth House Office Building on the effects of global climate change on public lands and resources.

The Senate Commerce, Science, and Transportation Committee has scheduled a Tuesday, March 20, hearing at 2:30 p.m. In 253 Russell Senate Office Building on energy innovation.

HEALTH AND HUMAN SERVICES:  The House Ways and Means Subcommittee on Health has scheduled a Wednesday, March 21, hearing at 2:00 p.m. in 1100 Longworth House Office Building on the Medicare Advantage Program.

The Senate Health, Education, Labor, and Pensions Committee has scheduled a Thursday, March 22, hearing at 10:00 a.m. in 430 Dirksen Senate Office Building on safe health care for children.

TAX ISSUES: The House Ways and Means Subcommittee on Select Revenue Measures has scheduled a Thursday, March 22, hearing at 10:00 a.m. in B-318 Rayburn House Office Building on the alternative minimum tax.

TRANSPORTATION: The Senate Commerce, Science, and Transportation Committee has scheduled a Thursday, March 22, hearing at 9:30 a.m. in 253 Russell Senate Office Building on FAA modernization.

 

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