TUESDAY, MAY 15, 2007

NEGOTIATIONS CONTINUE ON SUPPLEMENTAL APPROPRIATIONS BILL

Negotiations between Senate leaders and the White House continue on a new version of the fiscal year FY2007 emergency supplemental appropriations bill, with a goal of final action by the Memorial Day recess.

Last week, the House passed a two-tier, short-term bill to fund the war effort in Iraq/Afghanistan along with additional funding for some domestic items. Also approved was a bill that includes agriculture disaster funding contained in the original supplemental. The White House has issued a veto threat against both measures.


FY2008 BUDGET RESOLUTION CONTINUES

Conferees on the FY 2008 budget resolution also continue their negotiations; although a meeting last week did not produce an agreement, one is anticipated this week.

Key issues that remain under discussion include the level of the domestic discretionary spending cap; whether to use the projected surplus in FY2012 to extend expiring tax provisions and add new spending for the State Children's Health Insurance Program, or identify new offsets for the costs.

Conferees also are debating whether to include a "trigger" mechanism to allow extensions of the tax cuts in 2010 only if surpluses materialize; and how to treat a House education reconciliation instruction that calls for the expansion of direct government aid to college students by cutting private lender subsidies.

Last week, Office of Management and Budget director Rob Portman warned that the President would veto any spending bill that exceeds his proposed FY 2008 discretionary spending cap of $933 billion.


WRDA MOVES IN SENATE; BILL COST CUT BY MORE THAN HALF FROM LAST WEEK

Yesterday, the Senate turned again to the Water Resources Development Act (WRDA). The measure stalled on the Senate floor last week over judicial nominations.

On Wednesday, May 9, a managers' amendment was released that made substantial changes to the committee-passed version by re-working funding for hurricane projects in Louisiana and for several new programs that had unlimited funding authorizations. This action reduced the cost of the Senate bill from $31 billion to $13.9 billion. The House version of the bill contains projects estimated at $15 billion.

A number of amendments are anticipated, but Senate Environment and Public Works Committee Chair Barbara Boxer (D-CA) remains committed to keeping WRDA funding at the current level. The White House has objected to the Senate bill, but has not issued a veto threat.


COPS PROGRAM CONSIDERED TODAY

The House is scheduled to vote today on two criminal justice measures under suspension. The COPS Improvement Act of 2007 would authorize $1.5 billion annually from FY2008 through FY2013 for state and local law enforcement programs.

It would provide $600 million annually (over six years) for officers hired to perform intelligence, antiterrorism, and homeland security duties; $350 annually for law enforcement technology grants; and $200 million annually to assist district attorneys in hiring community prosecutors.
 


DEFENSE AUTHORIZATION ON HOUSE FLOOR LATER THIS WEEK

The House later this week is scheduled to debate the $503.8 billion FY2008 Defense authorization bill, which includes $8.4 billion for base realignment and closure (BRAC) and $1 billion for National Guard and Reserve equipment from their unfunded requirements list.

The measure also gives the Guard enhanced authorities to fulfill its expanded role in the nation's defense; authorizes a fourth star for the Chief of the National Guard Bureau; makes the Bureau a joint activity of DoD; and requires DoD to report to Congress on the readiness of the National Guard to support Governors on missions relating to homeland security and natural disasters.

Of interest to Governors is language repealing a provision in the FY2007 DoD authorization bill that allows the President to federalize the National Guard for domestic law enforcement purposes during emergencies without consent of the Governor.  These changes to the Insurrection Act have been strenuously opposed by nearly all Governors through the National Governors Association.


THE WEEK AHEAD: The Congress focuses this week on the emergency supplemental appropriations bill, the Water Resources Development Act, immigration, the Community Oriented Policing Services (COPS) program, prisoner reentry and the National Guard.

The SENATE convened yesterday and is scheduled to continue its debate of the Water Resources Development Act. On Wednesday, the chamber has scheduled a cloture vote on a motion to proceed to immigration reform legislation. It also could consider the conference report to the FY08 budget resolution if an agreement is reached.

The HOUSE meets today to consider 14 measures under suspension, including the COPS Improvement Act of 2006, the Second Chance Act of 2007, and the Safe American Roads Act of 2007, which would restrict the Administration's pilot program for allowing Mexican trucks to operate in the United States.

On Wednesday, May 16, and for the remainder of the week, the House schedule calls for consideration of the National Defense Authorization Act for Fiscal Year 2008 and the Federal Housing Finance Reform Act of 2007, which would overhaul the regulation of Fannie Mae and Freddie Mac. In addition, consideration of the conference report to the FY 2008 budget resolution will occur if an agreement is reached.

KEY HEARINGS and MARKUPS

Criminal Justice:  The Senate Judiciary Committee has scheduled a Wednesday, May 16, hearing at 10:00 a.m. in 226 Dirksen Senate Office Building on online pharmacies and Internet drug trafficking.

The House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security has scheduled a markup of a bill to provide for HIV/AIDS prevention in prison (H.R. 1943) and a bill to extend the grant program for drug-endangered children (H.R. 1199)

Education: The House Science and Technology Subcommittee on Research and Science Education has scheduled a Tuesday, May 15, hearing at 10:00 a.m. in 2318 Rayburn House Office Building on educators' perspectives on federal science, technology, math, and engineering education.

Energy:  The Senate Environment and Public Works Committee has scheduled a Tuesday, May 15, hearing at 10:00 a.m. in 406 Dirksen Senate Office Building on "green" buildings.

Health: The House Energy and Commerce Subcommittee on Health has scheduled a Tuesday, May 15, hearing at 2:00 p.m. in 2123 Rayburn House Office Building on the Medicare Savings Plan and Low-Income Subsidy.

Homeland Security:  The House Education and Labor Committee has scheduled a Tuesday, May 15, hearing at 10:00 a.m. in 2175 Rayburn House Office Building on college campus safety.

The House Homeland Security Committee has scheduled a Thursday, May 17, hearing at 10:00 a.m. in 311 Cannon House Office Building on federal efforts to assist in school safety and security.

Immigration: The House Judiciary Subcommittee on Immigration, Citizenship, Refugees, and Border Security has scheduled hearings on Wednesday, May 16, at 9:30 a.m.; on Thursday, May 17, at 3:00 p.m.; and on Friday, May 18, at 9:00 a.m. (all in 2141 Rayburn House Office Building) on immigration revision proposals.

Transportation: The House Transportation and Infrastructure Subcommittee on Highways and Transit has scheduled a Thursday, May 17, hearing at 10:00 a.m. in 2167 Rayburn House Office Building on state and local perspectives on public-private partnerships to develop highway projects.

Veterans: The House Veterans Affairs Committee has scheduled markup of veterans' health bills on Tuesday, May 15, at 2:00 p.m. in 334 Cannon House Office Building.

Welfare: The House Ways and Means Subcommittee on Income Security and Family Support has scheduled a Tuesday, May 15, hearing at 10:00 a.m. in B-318 Rayburn House Office Building on child welfare issues.

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