This Week on the Hill
The House holds its final week of work before the August recess as the Senate focuses on health care.
The House convenes today and will consider 17 bills under suspension of the rules, including H.R. 3218, which eliminates the 15-year time limit for veterans to use their Post-9/11 GI education befits, among other program changes. On Tuesday, the House will consider three bills and one disapproval resolution, and for Wednesday and the balance of the week will consider five bills, including the fiscal year 2018 minibus appropriations bill with additional legislative items possible. Several committees scheduled hearings this week: the Agriculture Committee will hold a hearing Wednesday on renegotiating NAFTA; the Science, Space and Technology Committee will hold a hearing Wednesday on STEM and computer science education; and the Judiciary Committee will hold a hearing Tuesday on H.R. 2887 (online sales tax collection) and “the growing problem of states regulating beyond their borders.”
The Senate convenes today and will consider the nomination of David Bernhardt to be deputy Interior Secretary. A vote on the motion to proceed to health care legislation is expected for tomorrow. Several committees have scheduled hearings this week: the Environment and Public Works Committee will hold a hearing Tuesday on clean energy technologies; the Homeland Security and Governmental Affairs Committee will mark up border security and FEMA bills on Wednesday; and the Veterans Affairs Committee will mark up a veterans educational assistance bill on Wednesday.
Fiscal Year 2018 Budget Update
The House and Senate continue to make progress on fiscal year 2018 appropriations bills, with the House completing committee work on all 12 spending bills.
The House acted on the following bills last week:
- Fiscal Year 2018 Budget Resolution: The Budget Committee voted 22-14 to approve the $1.132 trillion spending plan, with $621.5 billion in defense discretionary spending and $511 billion in non-defense discretionary spending; this exceeds the current law defense budget cap of $549 billion. The bill also instructs 11 authorizing committees to reduce the deficit by $203 billion over the next ten years, which sets up anticipated action on tax reform and mandatory spending cuts.
- Interior-Environment: The Appropriations Committee voted 30-21 to approve the $31.4 billion bill, which reduces spending by $824 million compared to fiscal year 2017 enacted levels. The bill funds the Payment in Lieu of Taxes program at $465 million (consistent with the current year) and funds the Land and Water Conservation Fund at $275 million.
- Homeland Security: The Appropriations Committee voted 30-22 to approve $44.3 billion in discretionary funding, an increase of $1.9 billion above the fiscal year 2017 enacted level. In addition, the bill includes $6.8 billion for disaster relief and emergency response activities through FEMA.
- Labor-Health and Human Services-Education: The Appropriations Committee voted 28-22 to approve $156 billion in discretionary funding, which is a reduction of $5 billion below the fiscal year 2017 enacted level.
- State-Foreign Operations: The Appropriations Committee approved via voice vote a $47.4 billion spending bill, which is a reduction of $10 billion below the fiscal year 2017 enacted level.
- Transportation-Housing and Urban Development: The Appropriations Committee voted 31-20 to approve $56.5 billion in discretionary funding, which is $1.1 billion below fiscal year 2017 enacted levels. A Democratic amendment to reinstate funding for the TIGER program failed on a party-line vote.
The House is scheduled to vote on a four-bill appropriations “minibus” this week, which would contain the Defense (H.R. 3219), Energy-Water (H.R. 3266), Legislative Branch (H.R. 3162) and Military Construction-VA (H.R. 2998) spending bills. It also includes $1.6 billion for the President’s southern border wall. Democrats are expected to offer numerous amendments.
The Senate acted on the following bills last week:
- The Senate Appropriations Committee approved temporary allocations for its 12 fiscal year 2018 spending bills on Thursday, keeping the topline base spending flat at $1.07 trillion. Democrats on the committee offered alternative allocation amounts, which were not adopted.
- Energy-Water: The Appropriations Committee voted 30-1 to approve the $38.4 billion spending bill, which is $629 million above the fiscal year 2017 enacted level. The bill maintains funding for the Advanced Research Project Agency-Energy and rejects most of the research cuts for energy programs proposed in the President’s budget and the House spending bill.
- Agriculture: The Appropriations Committee voted 31-0 to approve $145.4 billion in discretionary and mandatory funding, which is $7.9 billion below the fiscal year 2017 enacted level but $4.85 billion above the President’s budget request.
The Senate is scheduled to consider the following bills this week: Transportation-HUD and Commerce-Justice-Science will be marked up in subcommittee on Tuesday and in the full committee on Thursday; the full committee will also mark up the Legislative Branch bill on Thursday.
CBO Releases Scores on Two Versions of Health Care Reform, Vote Possible This Week
The Congressional Budget Office (CBO) released scores last week on two Republican bills relating to repealing the Affordable Care Act (ACA). On Wednesday CBO released a score on the Obamacare Repeal Reconciliation Act of 2017, which would repeal many provisions of the ACA. CBO estimates that enacting the legislation would decrease deficits by $473 billion over the 2017-2026 period, while the number of people who are uninsured would increase by 17 million in 2018 compared to current law, increasing to 32 million in 2026. The CBO released a second score on Thursday, analyzing the effects of the Better Care Reconciliation Act of 2017 (BCRA), as posted to the Senate Budget Committee’s website on July 20; this bill would repeal and replace several provisions of the ACA. If enacted this legislation would reduce federal deficits by $420 billion over the 2017-2026 period, with the largest savings coming from a reduction in total federal spending for Medicaid; by 2026, spending for that program would be reduced by 26 percent. Under this version of the BCRA, in 2018, 15 million more people would be uninsured compared to current law, increasing to 22 million in 2026. The Senate is expected to vote on a motion to proceed to health care legislation (H.R. 1628) on Tuesday, but it is unknown what version of the legislation will be taken up and if Senate Republicans have sufficient votes on the motion to proceed. If the motion to proceed is successful, then the Senate moves into 20 hours of debate on the bill. On Friday the Senate parliamentarian advised senators that several parts of the BCRA could be removed due to violating reconciliation rules. Updated information will be provided in NASBO’s Health Care Update on Thursday.
DOJ Issues Policy and Guidelines on Seized Assets
Last Wednesday Attorney General Jeff Sessions announced a new Department of Justice (DOJ) policy regarding the federal adoption of assets seized by state or local law enforcement under state law. Under the order, federal adoption of all types of assets seized lawfully by state or local law enforcement under their respective state laws is authorized whenever the conduct giving rise to the seizure violates federal law. To ensure that adoptions involve property lawfully seized, legal counsel at the federal agency adopting the seized property must continue to review all seizures for compliance with the law; to assist in the review process, the form used by state and local agencies seeking federal adoption will require additional information about the probable cause determination justifying the seizure. Beginning in 2018, law enforcement agencies participating in the department’s asset forfeiture program must provide annual training on state and federal laws. The policy is effective immediately and applies prospectively to all new requests for adoption by state and local law enforcement. Two years ago, former Attorney General Eric Holder issued guidance limiting the federal adoption of seizures by state and local law enforcement agencies, but this new policy supersedes the prior order.
Senate Holds Hearing on FirstNet Implementation
On Thursday the Senate Committee on Commerce, Science and Transportation Subcommittee on Communications, Technology, Innovation and the Internet held a hearing to receive an update on the First Responder Network Authority (FirstNet). Testimony was provided by the Deputy Secretary of Public Safety and Homeland Security in Virginia, an Assistant Professor from the University of Mississippi Medical Center, the Government Accountability Office (GAO), AT&T, and FirstNet. In March of this year, FirstNet awarded a contract to AT&T to build, operate and maintain the nationwide interoperable public safety broadband network. Last month FirstNet issued the initial state plans, which detail its deployment proposals for the radio access network; states are reviewing these plans and providing feedback prior to issuance of final plans this fall. An archived video of the hearing, along with witness testimony, can be found here; GAO also issued its testimony on FirstNet’s efforts to establish the broadband network. To see a map of state status, including the five states that have opted-in to the network so far, click here.
EPA Announces 12 Projects Eligible to Apply for WIFIA Funding
Last week the Environmental Protection Agency invited 12 projects in nine states to apply for Water Infrastructure Finance and Innovation Act (WIFIA) loans. The potential applicants were selected from a group of projects that represent large and small communities from across the country that submitted letters of interest to EPA in April 2017. Through appropriated funding, leveraging private capital and utilizing other funding sources, the program will help finance a total of $5.1 billion in water infrastructure investments. Projects were chosen in the following states: Florida, California, Missouri, Nebraska, Indiana, Washington, Maryland, Maine, and Tennessee. Additional information on the projects, including one-page summaries, can be found here.
OMB Releases Regulatory Agenda
Last week the administration released the Unified Agenda of Regulatory and Deregulatory Actions, which provides an updated report on the actions administrative agencies plan to issue in the near and long-term. Coordinated through the Office of Information and Regulatory Affairs at the Office of Management and Budget (OMB), the unified agenda includes information on how the administration plans to undertake regulatory reform, including through amending and eliminating regulations that are ineffective, duplicative or obsolete. According to the office, Executive Orders 13771 and 13777 require agencies to reduce unnecessary regulatory burden and to enforce regulatory reform initiatives. During the first five months of the administration, agencies have produced annualized cost savings of $22 million while withdrawing 469 actions proposed in the Fall 2016 Agenda.
Administration Announces NAFTA Renegotiation Objectives
The U.S. Trade Representative, Robert Lighthizer, released negotiating objectives for the renegotiation of the North American Free Trade Agreement (NAFTA) last week. Through the renegotiation, the administration seeks an agreement that reduces the U.S. trade deficit and improves market access in Canada and Mexico for U.S. manufacturing, agriculture, and services. The objectives highlight specific goals in the areas of industrial goods, agricultural goods, customs and trade facilitation, rules of origin, trade in services, telecommunications, digital trade, and more. On May 18, Ambassador Lighthizer sent a letter notifying Congress of the administration’s intent to initiate NAFTA renegotiations; negotiations are scheduled to begin on August 16.
President Signs Order Creating Infrastructure Advisory Council
On Wednesday the President signed an executive order establishing a “Presidential Advisory Council on Infrastructure.” The council will be comprised of up to 15 members with experience in real estate, finance, construction, communications and technology, transportation and logistics, labor, environmental policy, regional and local economic development, and other sectors as needed. The council is charged with studying the scope and effectiveness of federal government funding, support and delivery of infrastructure projects; the council will also make recommendations on prioritizing the nation’s infrastructure needs, accelerating the pre-construction approval process, developing new financing options, and increasing public-private partnerships.
Recently Released Reports
Postsecondary Institutions and Cost of Attendance in 2016-17; Degrees and Other Awards Conferred, 2015-16; and 12-Month Enrollment, 2015-16; National Center for Education Statistics
Better Care Reconciliation Act: State-by-State Estimates of Reductions in Federal Medicaid Funding, Kaiser Family Foundation
State and Local Pension Plans Funding Sputters in FY 2016, Center for State and Local Government Excellence
Sex Offender Registration and Notification Act State and Territory Implementation Progress Check, U.S. Department of Justice
ESSA: Early Observations on State Changes to Accountability Systems, U.S. Government Accountability Office
Economic News
Unemployment Rates Stable in 38 States in June
New data from the Bureau of Labor Statistics shows that most state unemployment rates saw little change in June; 38 states and the District of Columbia had stable unemployment rates, 2 states had higher rates and 10 states had lower rates. Compared to one year earlier, 23 states and the District of Columbia had little or no change, while 27 states had jobless rate decreases. The national unemployment rate was little changed from May at 4.4 percent, but was 0.5 percentage point lower than in June 2016. Nonfarm payroll employment increased in 14 states in June and was essentially unchanged in 36 states and the District of Columbia. Over the year, 33 states added nonfarm payroll jobs and 17 states and the District were essentially unchanged. Looking at unemployment, 19 states had unemployment rates lower than the U.S. figure of 4.4 percent, 5 states and the District of Columbia had higher rates, and 26 states had rates that were not appreciably different from that of the nation.