CONGRESS PASSES WAR SUPPLEMENTAL; BUSH SIGNS
The Senate passed the House version of the war supplemental on June 26th and on June 30th, President Bush signed it into law. In what was seen as a major victory for the President, the legislation contained no war policy restrictions or mandatory pull out language. The legislation passed overwhelmingly despite the antiwar feelings of many Democrats. The measure contains $168.1 billion for the wars in Afghanistan and Iraq for the remainder of fiscal year 2008 and the entire fiscal year 2009.
Part of the supplemental funding will go towards expanding GI benefits as per the Webb bill. The bill will cost $63 billion over 10 years. Veterans who have served three years or more of active duty since September 11, 2001 will receive an educational benefit equal to the cost of the highest tuition for a public university in their state. They will also receive an monthly housing stipend. The benefits will also be transferable to family members.
The measure also contains funds for a number of domestic spending measures. Specifically, the White House agreed to an expansion of unemployment benefits for up to 13 weeks beyond the current six months. Additionally, $2.7 billion will go toward domestic infrastructure projects such as rebuilding levees in Louisiana and other disaster relief projects in the Midwest.
ENSIGN FIGHTING FOR RENEWABLE ENERGY TAX CREDITS
Senator John Ensign (R-NV) made headlines before the recess by sponsoring an amendment to the "must-pass" housing/foreclosure bill (H.R. 3221) that would extend the expiring renewable energy tax credits.
The amendment does not offer any offsets to pay for the expiring tax credits. Noteworthy is that consideration of the underlying housing bill and consideration of the war supplemental were both stalled in the Senate because of the procedural hurdles that the Ensign amendment presents.
While the tax credits are popular and sure to pass the Senate, the point that they are not offset is sure to provoke a déjà vu fight with the House. In fact, in early May, the House dropped the energy tax provisions from its version of the housing bill because they were not offset.
As a result, Senate
Majority Leader Reid is loath to repeat the same scenario. So, Senate
leaders are trying to figure out the next step to move the bills
forward. The Senate will return to the housing bill this week.
REID TO PUSH FOR MORE DOMESTIC SPENDING
Separately, Senate Majority Leader Reid (D-NV) is planning
to move a supplemental spending bill that focuses on
domestic items; primarily those that were jettisoned from
the war supplemental. The domestic supplemental could
contain funding for LIHEAP, the Byrne law enforcement
grants, and more aid for the recent flood damage in the
Midwest. If it goes forward, the new measure would
be considered sometime in July.
HOUSING BILL FACES VETO THREAT
Housing bills will continue be discussed in both houses this week. Although Congress has proven they are capable of overriding the President (twice for the Farm bill) they are now forced to produce 2/3 support in each House for the housing legislation.
Last week the White House surprised many by issuing a veto threat on the proposed housing legislation gaining steam in both houses amidst Congressional negotiations. Blue Dog Democrats in the House and fiscal conservatives in the Senate are expected to push back, since the spending measures do not include offsets.
HOUSE APPROPRIATORS MAKING STEADY PROGRESS
The appropriations bills will move to the House floor in July. House Appropriators have made significant progress this month. Seven of the twelve measures have been completed by the full committee. While the House bills will get floor time in July, the outlook remains that few of them will be sent to President Bush before the November 4 elections. By comparison, the Senate Appropriations Committee hopes to report out all twelve bills by the end of July.
As for earmarks in FY 2009, it is expected that they will be comparable to the amount and number of those doled out in the FY 08 omnibus. While House Republicans will likely continue to push for some sort of reduction or moratorium, the expected end result is to be even more transparency of the earmarks and their sponsors.
HOUSE CONSIDERING MEASURES TO ADDRESS OIL AND GAS PRICES
The House is considering several energy bills that are intended to address high oil and gasoline prices.
The bills would bolster the transparency of oil futures trading (H.R. 6334); require oil companies holding federal leases to “use it or lose it” (H.R. 6251); authorize $1.7 billion in grants for transit fare reductions (H.R. 6052); and establish anti-gouging regulations (H.R. 6346).
The latter bill (H.R. 6346) was considered on a suspension of the calendar but failed to gain the needed two-thirds votes for adoption (the vote was 276-146). A similar fate is expected on the drilling lease bill H.R. 6251. The futures trading bill (H.R. 6334) was sidelined due to a postponed mark-up, but is expected to be considered after the July 4 recess. The measure to provide transit fare grants (H.R. 6052) is expected to pass.
