MONDAY, FEBRUARY 11, 2008

ECONOMIC STIMULUS PACKAGE PASSES; SENT TO PRESIDENT'S DESK

Last week, the Senate Finance Committee's version of the economic stimulus package, which included extended unemployment benefits, tax credits for renewable energy, and LIHEAP was defeated in the Senate by one vote. 

Ultimately, a package that added rebate checks for low-income seniors and disabled veterans, as well as a provision offered by Senator John Ensign (R-NV) to ensure illegal immigrants don't receive rebate checks, was approved by a 91-6 vote.

The House accepted the newly amended economic stimulus package with a 380-34 vote.  President Bush is expected to sign it into law.


SUMMARY OF PRESIDENT'S FY09 BUDGET

The President unveiled his proposed federal budget for federal Fiscal Year 2009 on Monday, February 4.  Generally, the $3.1 trillion budget calls for a permanent extension of the President's tax cuts, reauthorization of the No Child Left Behind Act, and provides adequate funds for the wars in Iraq and Afghanistan.

Various Congressional authorizing and appropriations committees have already been holding hearings on the budget by department and program.  The House Budget Committee's analysis of the budget can be found at http://budget.house.gov.

Details about the proposed FY 09 budget can be found at http://www.whitehouse.gov/omb/.


NEW FARM BILL DISCUSSED

The Bush Administration is reportedly negotiating with House Agriculture Committee Chairman Collin Peterson (D-MN) on a new version of the farm bill. Chairman Peterson is proposing stricter limits on payments to farmers by eliminating a $5 billion aid program and cutting subsidies.  This proposal is intended to appease concerns by the White House that the farm bill would be too expensive.

The major challenge to finishing the farm bill is in forming a package of tax offsets that would pay for additional spending that does not fit under the $286 billion baseline.  Senate Budget Chairman Kent Conrad (D-ND) believes a new revenue proposal will be ready for the White House in the next few days.


H2-A VISAS, BORDER SECURITY SUBJECT OF IMMIGRATION DEBATES

The House Appropriations Subcommittee on Homeland Security will hold a hearing on the FY 2009 budget for land border enforcement on February 14 at 10 a.m. and 1:30 p.m.  The House Judiciary Subcommittee on Immigration, Citizenship, Refugees, Border Security and International Law will hold a hearing on immigration and customs interrogation, detention and removal procedures of the Immigration and Customs Enforcement section of DHS on February 13 at 1:00 p.m.

Simultaneously, the Bush Administration is proposing new rules for the H-2A farm worker visas.  The proposals would make visas more accessible to employers but requires them to seek U.S. employees for a longer time period before seeking out foreign workers. 

The H-2A Farm Worker program was put in place by the USDA as a way for farmers to hire legal workers.  The estimates are that the need for agricultural work force is about 1.2 million workers at the season's peak, and that as many as 800,000 of these workers are illegal. 

There are several problems with the program as it was implemented, most centering around the length of time it takes to clear an employee to work.  Farmers could not rely on the program to clear workers in time to pick produce that could rot. Last year, only 75,000 workers were hired through the H-2A program; in order to increase these numbers, the USDA is proposing several revisions to the program that will streamline and simplify it.

The USDA is hoping to get the revisions approved as soon as possible so that farmers get in the habit of using the program on a regular basis when hiring workers.  However, the proposal has drawn criticism from both parties in Congress.


THE WEEK AHEAD: The Senate will consider final passage of the FISA bill, while the House once again considers the energy tax package.

The SENATE plans to vote on final passage of a bill that would overhaul the Foreign Intelligence Surveillance Act (FISA), setting the stage for formal negotiations with the House. 

The HOUSE convenes Tuesday to consider 22 bills under suspension.  In addition, House Democratic leaders are expected to bring a draft bill to the floor that would extend tax credits for wind and solar power.  The extension was originally incorporated into last year's energy bill and more recently into the stimulus legislation.  Although specifics are still being worked out, the bill is expected to resemble the $16 billion tax package the House Passed in August.

STATE TAXES: State tax issues will be the subject of hearings before the House Judiciary Subcommittee on Commercial and Administrative Law and the House Small Business Committee. 

The Judiciary Committee will hear testimony on Thursday, February 14 regarding H.R. 3679, the "State Video Tax Fairness Act of 2007," which would prohibit state from taxing multi-channel video services differently based on the technology used to provide such services. 

That same day the House Small Business Committee will hear testimony regarding the effect of business activity taxes on small business.  Last week a new House bill, H.R. 5267, was introduced to require states to use a physical presence standard for determining business activity tax (BAT) liability.  State and federal courts have repeatedly affirmed the states' authority to use economic presence as the standard for BAT.


KEY HEARINGS AND MARKUPS


AGING: The Senate Special Aging Committee will hold a hearing on the foreclosure aftermath, focusing on concerns for elderly homeowners: Wednesday, February 13 at 10:00 a.m., 628 Dirksen Building.

ARMED SERVICES/VETERANS: The Senate Armed Services Committee will hold a hearing titled “Improvements Implemented and Planned by the Department of Defense and the Department of Veterans Affairs for the Care, Management and Transition of Wounded and Ill Service members: Wednesday, February 13 at 9:30 a.m., 216 Hart Building.

COMMUNICATIONS: The Telecommunications and Internet Subcommittee of the House Energy and Commerce Committee will hold a hearing on the status of preparedness to make the switch from analog to digital television on February 17, 2009: Wednesday, February 13 at 9:30 a.m., 2123 Rayburn Building.

The Senate Commerce, Science and Transportation Committee will hold a hearing on the digital television transition focusing on consumers, broadcasters and converter boxes: Thursday, February 14 at 10:00 a.m., 253 Russell Building.

ECONOMY: The Senate Banking, Housing and Urban Affairs Committee will hold a hearing on the current state of the U.S. economy and financial matters: Thursday, February 14 at 10:00 a.m., 325 Russell Building.

EDUCATION: The House Education and Labor Committee will hold a hearing on improving public school facilities: Wednesday, February 13 at 10:30 a.m., 2175 Rayburn Building.

ENERGY & ENVIRONMENT: The Senate Energy and Natural Resources Committee will hold a hearing on the effect on energy markets of the renewable-fuel standard enacted as part of the Energy Independence and Security Act of 2007: Thursday, February 7 at 9:30 a.m., 366 Dirksen Building.

The Water Resources and Environment Subcommittee of the House Transportation and Infrastructure Committee will hold a hearing on the EPA Brownfields program: Thursday, February 14 at 2:00 p.m., Rayburn Building.

SMALL BUSINESS: The House Natural Resources Committee will hold a hearing titled "The Business Activity Taxes and Their Impact on Small Businesses": Thursday, February 14 at 10:00 a.m., 2360 Rayburn Building.

TRANSPORTATION: The Highways and Transit Subcommittee of the House Transportation and Infrastructure Committee will hold a hearing on the report issued by the National Surface Transportation Policy and Revenue Study Commission: Wednesday, February 13 at 10:00 a.m., 2167 Rayburn Building.

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