This Week on the Hill
The House and Senate are in session this week, as the Senate continues to work on health care reform and the House takes up several health care bills.
The House convenes today and will consider 10 bills under suspension of the rules, including H.R. 338, to promote a 21st century energy and manufacturing workforce. On Tuesday the House will consider H.R. 2581, the Verify First Act and S. 1094, related to whistleblower protections at the Department of Veterans Affairs. For Wednesday the chamber will consider H.R. 2372, the VETERAN Act and on Thursday will vote on H.R. 1215, the Protecting Access to Care Act of 2017. On Friday, the House will consider another health care bill, H.R. 2579. Several committees scheduled hearings this week: the Education and the Workforce Committee will hold a hearing Thursday on the Workforce Innovation and Opportunity Act (WIOA); the Energy and Commerce Committee will hold a hearing Wednesday on extending safety net health programs; and the Energy Subcommittee will hold a hearing Wednesday on state energy programs.
The Senate convenes today to continue consideration of S. 722, related to sanctions on Iran. The chamber may also take additional votes on nominations this week. Several committees have scheduled hearings this week: the Agriculture, Nutrition and Forestry Committee will hold a hearing Thursday on agricultural research in the Farm Bill; the Commerce, Science and Transportation Committee will hold a hearing Wednesday on self-driving vehicles; and the Health, Education, Labor and Pensions Committee will hold a hearing Tuesday on the cost of prescription drugs.
The administration has proclaimed this week “workforce development week” and events are planned in Wisconsin, at the Department of Labor and the White House. Additional information will be provided in next week’s Washington Report.
Fiscal Year 2018 Budget Update
The House Appropriations Committee released a draft of the first spending bill for fiscal year 2018, proposing an $88.8 billion Military Construction-Veterans Affairs (VA) spending plan. The subcommittee scheduled a markup on the bill today, the first markup scheduled for the upcoming budget. The spending plan increases funding by $6 billion above the fiscal year 2017 level but is $573 million below the President’s request; it also includes $638 million in Overseas Contingency Operations funding, which does not count against discretionary spending caps. At this time, no fiscal year 2018 budget resolution has been adopted to give guidance to appropriators about how much they can spend across the 12 appropriations bills. Under the Budget Control Act of 2011 (P.L. 112-25) the overall cap on discretionary spending is $1.065 trillion for fiscal year 2018, a $5 billion cut from this year’s level. Also, several appropriations subcommittees in both the House and Senate will hold hearings this week on fiscal year 2018 departmental budget requests.
FirstNet Opt-Out Procedures Released for Consideration
The Federal Communications Commission (FCC) released a Report and Order on procedures states would need to follow if they decide to opt out of the First Responder Network Authority (FirstNet) and build their own Radio Access Network (RAN). The law requires any state that chooses to opt out to submit an alternative plan for its proposed RAN to the FCC. The Report and Order would establish the procedural timeline, identify information states should include in their alternative state plans, specify technical criteria and standards, provide details of the FCC’s review process, and describe how the FCC will document its decisions to approve or disapprove alternative state plans. The Report and Order is scheduled for consideration at the FCC’s June 22 open meeting. Last week, FirstNet previewed the upcoming State Plan “kick-off” meeting in Dallas and released a short video on key considerations for states regarding the FirstNet state plan.
House to Consider Four Health Care Bills This Week
The House will consider three bills this week included in the “third phase” of its health care reform strategy and another bill aimed at improving service delivery for veterans. The first bill, H.R. 2372, allows veterans to qualify for premium assistance tax credits if they choose private insurance instead of coverage by certain Veterans Affairs health programs. The second bill, H.R. 2579, allows tax credits in the American Health Care Act (H.R. 1628) to be used for COBRA health coverage. Finally, H.R. 2581 would require applicants for advance payment of health care premium tax credits to provide a Social Security number to verify immigration status. The other bill scheduled for consideration is S. 1094, the Department of Veterans Affairs Accountability and Whistleblower Protection Act of 2017; this bill makes it easier for the department to fire certain employees and has already passed the Senate.
CMS Seeks Public Input on Regulating Individual and Small Group Markets
The Centers for Medicare and Medicaid Services (CMS) issued a request for information to assist in reducing regulatory burdens and improving health insurance options under the Affordable Care Act. This release follows the President’s January 20 executive order directing the Secretary of Health and Human Services to minimize the economic burden of the law. According to the release, the agency “seeks comment from interested parties to inform its ongoing efforts to create a more patient-centered health care system that adheres to the key principles of affordability, accessibility, quality, innovation, and empowerment.” The request for information is intended to solicit comments about changes to existing regulations or guidance, or other actions within the department’s authority, that could further specific goals related to the individual and small group health insurance markets, including: empowering patients and promoting consumer choice; stabilizing the individual, small group, and non-traditional health insurance markets; enhancing affordability; and affirming the traditional regulatory authority of the states in regulating the business of health insurance. Comments are due by July 12.
Committee Holds Hearing on Flood Insurance Bills, Markup Scheduled
Last week the House Financial Services Committee held a hearing on reauthorizing the National Flood Insurance Program (NFIP), which expires on September 30 and has a current debt of $24 billion. The committee is considering several draft bills that together would reauthorize the program. Committee members noted during the hearing concerns that the current program hurts low-income homeowners and is financially unsustainable. Proposed changes include increasing the participation by private companies in flood insurance markets and allowing the use of locally created flood maps, rather than federally created maps, if they meet FEMA standards. A markup of the bills has been scheduled for Wednesday.
EPA Extends Deadline for 2015 Ozone Area Designations
On Tuesday the Environmental Protection Agency (EPA) announced changes related to the National Ambient Air Quality Standards (NAAQS) for ozone promulgated in October 2015, notifying governors of a one-year extension for promulgating initial area designations. According to the letter, the EPA Administrator has “determined that there is insufficient information, and taking additional time is appropriate in order to consider completely all designation recommendations provided by state governors…and to rely fully on the most recent air quality data.” The NAAQS for ground-level ozone is an outdoor air regulation under the Clean Air Act and states are currently submitting their proposals for area designations under the 70 parts per billion standard, which was lowered from 75 ppb in 2015. Per the announcement, EPA is giving states more time to develop air quality plans and is looking at providing greater flexibility to states as they develop their plans.
House Passes Bill to Repeal Dodd-Frank Provisions
Last week the House voted 233-186 to approve H.R. 10, which repeals large parts of the 2010 Dodd-Frank financial reform legislation. The original bill was designed to prevent actions that led to the financial crisis in 2008 and subsequent recession; critics believe the bill stifled the economy due to regulatory burden. Provisions of Dodd-Frank repealed by the bill include: the Volcker rule, which bars federally insured commercial banks from trading with depositors’ money; the Labor Department’s fiduciary rule; and the independence of the Consumer Financial Protection Bureau. The bill would also put the Federal Reserve’s bank supervisory function and the FDIC into the appropriations process and require an annual audit of the Fed. The House version of the bill is not expected to pass the Senate, where it would need 60 votes.
Interior Issues Order on Sage Grouse Management
On Thursday Interior Secretary Ryan Zinke signed a secretarial order calling for an internal review of the department’s sage grouse conservation plans and to enhance cooperation between the federal government and 11 western states. The order establishes the Sage-Grouse Review Team, which is directed to conduct a review of the plans and programs that states already have in place, an examination of issues associated with preventing and fighting invasive grasses and wildland fire, an examination of the impact on individual states disproportionately affected by the large percentage of federal lands within their borders, and a review of the 2015 Sage-Grouse plans and associated policies.
President Releases Additional Details on Infrastructure Plan
Last week was the administration’s “infrastructure week”, which included some new information on the President’s infrastructure initiative. According to a blog post, the $200 billion infrastructure initiative will include the following: $15 billion for transformative projects; $100 billion for local prioritization of infrastructure needs; $25 billion for rural infrastructure; and 1 million apprentices in two years. The President also announced the creation of a new office in the Council on Environmental Quality to recommend policies to help streamline the review of construction permits; the President has set a goal to lower the average permit time from 10 years to 2 years.
Recently Released Reports
Federal Spending in the States: 2015, The Council of State Governments
Retiree Health Care Benefits for State Employees in Fiscal Year 2015, Center for State and Local Government Excellence/National Association of State Retirement Administrators
State Medicaid Lessons for Federal Health Reform, Health Affairs
High-Deductible Health Plans and Financial Barriers to Medical Care: Early Release of Estimates from the National Health Interview Study, 2016, National Center for Health Statistics
Cooperative Federalism 2.0, The Environmental Council of States
Economic News
Job Openings Increase to Series High 6.0 Million in April
The number of job openings increased to 6.0 million on the last business day of April, according to data recently released by the U.S. Department of Labor (up from 5.8 million in March). Job openings increased in April for accommodation and food services (+118,000), construction (+42,000), wholesale trade (+13,000), information (+28,000) and state and local government (+45,000) but decreased in durable goods manufacturing (-30,000). The number of hires fell to 5.1 million in April and the hires rate was 3.5 percent. The number of separations edged down to 5.0 million. The 3.0 million quits reported in April were down slightly from 3.1 million in March; many economists closely watch the number of quits as a measure of employee confidence in finding another job. Finally, layoffs and discharges were little changed at 1.6 million. Over the 12 months ending in April, hires totaled 62.9 million and separations totaled 60.7 million, yielding a net employment gain of 2.2 million.
Labor Productivity Unchanged in 1st Quarter of 2017
According to data recently released by the U.S. Department of Labor, nonfarm business sector labor productivity was unchanged during the first quarter of 2017. From the first quarter of 2016 to the first quarter of 2017, productivity increased 1.2 percent, reflecting a 2.5 percent increase in output and a 1.3 percent increase in hours worked. Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers. Unit labor costs in the nonfarm business sector increased 2.2 percent in the first quarter of 2017, reflecting a 2.2 percent increase in hourly compensation; productivity was unchanged.