This week, the
Senate Budget Committee is scheduled to mark-up its 2009 budget resolution,
and sources indicate they are likely to leave room in the resolution for a second economic stimulus
package.
The Budget Committee will reportedly reserve $35 million in order to provide funding to programs not funded in the
first economic stimulus package.
The second economic stimulus package is likely to include low-income housing assistance, food stamps, unemployment benefits, and immediate road and water projects.
HOUSE PASSES ALTERNATIVE ENERGY TAX CREDIT BILL; SENATE ACTION UNCERTAIN
This past Wednesday, the House passed a
$18.1 million measure (H.R. 5351) that redirect tax benefits for oil and
gas companies to encourage investment in renewable
energy technologies.
The legislation extends the tax credits set
to expire on December 31 for wind and solar energy. On the fuels
front, the bill modifies incentives for constructing renewable fuel pumps at
gasoline stations and includes new incentives for cellulosic ethanol and
plug-in hybrid vehicles.
Democrats want to fund the measure by
repealing the manufacturing tax deductions for five major oil and gas
companies; proponents of the plan cited the fact that oil prices recently reached $102 a barrel. Republicans,
conversely, argued
that the legislation would have no effect on gas prices.
The measure faces an uphill battle in the Senate. The Senate has many times failed to agree on proposals that repeal oil and gas industry subsidies. The bill may not reach the Senate floor until April. The White House has stated that it would veto the bill because the measure targets a specific industry.
On the heels of their Winter Meeting in Washington, D.C. last weekend, the National Governors Association (NGA) sent a letter to Capitol Hill supporting the extension of the energy tax credits for renewable energy.
A copy of this letter can be found at the NGA website (http://www.nga.org) and by clicking the letters tab.
FARM BILL MAKES SLOW PROGRESS
The House and Senate negotiators favor a farm bill that would spend $10 billion more than the $597 billion baseline over the next ten years. $4.2 billion of that additional spending would be used for a disaster trust fund. The remaining additional spending would be used to boost funding for conservation and nutrition programs. Lawmakers are still considering how that additional spending will be offset. Congress is facing a March 15 deadline in which the current farm law is set to expire.
APPROPRIATIONS SUBCOMMITTEES CONTINUE TO MEET
The Senate and House Appropriation Subcommittees continue to hold hearings on FY 2009 appropriations.
For more information on the hearings, use the following links:
http://appropriations.house.gov/
http://appropriations.senate.gov/
