This Week on the Hill
The House and Senate are both in session this week, with an expected focus on the budget resolution and disaster spending.
The House convenes today and will consider six bills under suspension of the rules, including H.R. 2142, which authorizes $9 million for Customs and Border Protection to help prevent the importation of certain illegal drugs, including fentanyl. On Tuesday the House will consider three bills under suspension of the rules and one bill under regular order, while on Wednesday and the balance of the week, the chamber will consider several bills related to sanctions and terrorism, a bill on regulatory decrees and settlements (H.R. 469), and the Senate amendment to the fiscal year 2018 budget resolution (H Con Res 71). Several committees scheduled hearings this week: the Administration Committee will hold a hearing Wednesday on state voter registration list management; the Education and the Workforce Committee will hold a hearing Tuesday on private-public solutions to a cyber workforce; and the Energy and Commerce Committee will hold a hearing Wednesday on the federal response to the opioid crisis.
The Senate convenes today and will take a cloture vote on the disaster supplemental spending bill, with a final vote expected on Tuesday. Several committees scheduled hearings this week: the Energy and Natural Resources Committee will hold a hearing Thursday on cyber technology and energy infrastructure; the Health, Education, Labor and Pensions Committee will hold a hearing Thursday on free speech on college campuses; and the Special Aging Committee will hold a hearing Wednesday on working and aging with disabilities.
Fiscal Year 2018 Budget Update
On Thursday the Senate voted 51-49 to pass their fiscal year 2018 budget resolution (H Con Res 71), which included an amendment by Senate Budget Committee Chairman Mike Enzi (R-WY) adopting technical and procedural language from the House budget resolution. The amendment was included in hopes of avoiding a conference committee with the House, which passed its own version of the budget resolution earlier this month. The Senate resolution includes reconciliation instructions necessary to approve tax policy changes with a simple majority, and allows the tax plan to add up to $1.5 trillion to the deficit over a decade. An amendment offered by Senator Shelley Moore Capito (R-WV) that authorizes eliminating or revising the state and local tax deduction (SALT) for use as a budget offset passed by a vote of 52-47. The instructions call for the Senate Finance Committee to report a tax bill by November 13. The resolution also sets topline discretionary funding levels in line with the Budget Control Act, with $549 billion for defense and $516 billion for nondefense discretionary. The House is expected to vote on the changes to the resolution this week.
Senators Release Bipartisan Health Care Plan
Last week Senators Lamar Alexander (R-TN) and Patty Murray (D-WA) released short-term bipartisan legislation to stabilize premiums and access to insurance in individual health insurance markets by extending cost-sharing reduction payments for two years and giving states flexibility around health insurance policies. The bill language can be found here and a summary can be found here. Future action on the bill is uncertain at this time, as the administration has indicated changes may be necessary to gain the president’s approval, including relief from the Affordable Care Act’s individual and employer mandates. A bipartisan group of 10 governors released a letter supporting the deal and urging a vote on the bill. Meanwhile, a federal judge is expected to rule this week on a lawsuit brought by 19 states that would require the Trump administration to continue making cost-sharing reduction payments.
Senate Expected to Vote on Disaster Supplemental Bill This Week
After passing the House two weeks ago by a vote of 353-69, the Senate is now expected to vote on the $36.5 billion disaster supplemental spending bill (H.R. 2266) this week. Some senators had indicated they would request additional funds to fund ongoing recovery efforts, but according to media reports a third supplemental aid request is planned for next month. The Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program is expected to hit its statutory $30.4 billion debt ceiling and be unable to pay claims this week, making it more likely the Senate will take up the bill as passed by the House to expedite passage. The version as passed by the House includes $16 billion to partially erase the flood insurance program’s debt obligation, $18.67 billion for FEMA’s Disaster Relief Fund, up to $1.27 billion for Supplemental Nutrition Assistance Program (SNAP) funds for Puerto Rico food aid, and $576.5 million for wildfire suppression accounts. An initial package of $15.25 billion (P.L. 115-56) was enacted in September.
Bipartisan Group of Senators Release Wildland Fire Bill
On Thursday a bipartisan group of Western senators, led by Senator Maria Cantwell (D-WA), introduced legislation to better prevent costly wildfires. The Wildland Fires Act of 2017 would do the following: direct the Forest Service and Interior Department to provide up to $100 million in funding to at-risk communities to plan and prepare for wildfires; establish a pilot program that directs the Forest Service and Interior Department to treat their top one percent most-at-risk, least-controversial lands over the next 10 years by reducing wildfire risk in the wildland-urban interface and conducting prescribed fires outside of those areas; and authorize the federal agencies to re-purpose unused wildfire suppression funds to conduct preparedness projects to get ahead of the problem. The text of the bill can be found here and a summary can be found here. The bill sponsors also sent a letter to Senate leadership requesting the bill be added to the latest disaster supplemental funding bill.
Kaiser Releases Annual Medicaid Budget Survey
The Kaiser Family Foundation released its annual 50-state Medicaid budget survey that covers fiscal years 2017 and 2018 and highlights trends in enrollment, spending, and key policy developments in state programs. Total Medicaid spending grew by 3.9 percent in fiscal 2017 and is projected to increase by 5.2 percent in fiscal 2018. State Medicaid spending grew by 3.5 percent in fiscal 2017 and states project it will grow by 6 percent in fiscal 2018. The major drivers of spending growth include rising costs of prescription drugs, long-term care services and supports, and increases in payment rates for most provider groups. Thirty-seven states in fiscal 2017 and 36 states in fiscal 2018 reported increased efforts at cost containment for prescription drugs. States are using a variety of tools and strategies to expand the number of people served in home and community-based settings and are implementing housing-related activities as part of long-term services and supports (LTSS), as well as working to address direct care workforce shortages and turnover. The survey also provides new information on initiatives to address the opioid crisis, provider payment rates and taxes, and pending and approved waiver changes pursued by states. This 17th annual survey was prepared by staff of the Kaiser Family Foundation and Health Management Associates in collaboration with the National Association of Medicaid Directors.
CMS Approves Additional 1332 State Innovation Waivers
Last Thursday the Centers for Medicare and Medicaid Services (CMS) approved Oregon’s application for a 1332 State Innovation Waiver under the Affordable Care Act (ACA). Oregon sought the waiver to implement the Oregon Reinsurance Program and requested waiver of the ACA requirement for the single risk pool. As part of the approval, the departments determined that implementation of the reinsurance program will lower individual market premiums in the state and associated premium tax credits. The original application for the waiver can be found here. The approval is effective for a waiver period of January 1, 2018 through December 31, 2022. CMS approved in part Minnesota’s waiver application on September 22; the state also requested a waiver to implement a reinsurance program, known as the Minnesota Premium Security Plan. Also last week CMS sent a letter to Iowa regarding their waiver application, outlining how the federal pass-through would be calculated if the waiver is approved. A list of state applications for 1332 State Innovation Waivers and CMS actions can be found here.
Update on ESSA State Plan Statuses
On Tuesday Education Secretary Betsy DeVos announced that all consolidated state plans submitted by 34 states and Puerto Rico under the Every Student Succeeds Act (ESSA) for the fall deadline were found to be complete and ready for peer review. The state plans now proceed to the staff and peer review process, where they will be examined for compliance with the standards established in ESSA. Sixteen states and the District of Columbia submitted their plans earlier this spring and Secretary DeVos has so far approved plans for 14 states and D.C. A list of the submitted state plans can be found here.
Recently Released Reports
Randomized Controlled Trial of the Metropolitan Police Department Body-Worn Camera Program
The Lab at DC
How Have Municipal Bond Markets Reacted to Pension Reform?
Center for State and Local Government Excellence
Prison Health Care: Costs and Quality
The Pew Charitable Trusts
2016-17 Outcome Measures
Institute of Education Sciences
Dos and Don'ts for Reducing Recidivism Among Young Adults in the Justice System
The Council of State Governments Justice Center
Economic News
Federal Reserve “Beige Book” Highlights Increased Economic Activity
Information collected as part of the newest edition of the Federal Reserve’s “Beige Book” from the 12 Federal Reserve Districts indicated that economic activity increased in September through early October, with the pace of growth split between modest and moderate. The Richmond, Atlanta, and Dallas Districts reported major disruptions from Hurricanes Harvey and Irma in some areas and sectors, including transportation, energy and agriculture. Employment growth was modest on balance, with most Districts reporting flat to moderate increases while labor markets were widely described as tight. Many Districts noted that employers were having difficulty finding qualified workers, particularly in construction, transportation, skilled manufacturing, and some health care and service positions. Price pressures remained modest since the previous report, as several Districts noted increased manufacturing input costs, but in most cases these were not passed through to selling prices. Retail prices generally increased slightly.
Unemployment Rates Lower in 11 States in September, Higher in 4 States
New data from the Bureau of Labor Statistics shows that many state unemployment rates saw little change in September; 35 states and the District of Columbia had stable unemployment rates, 4 states had higher rates and 11 states had lower rates. Compared to one year earlier, 27 states and the District of Columbia had little or no change, while 22 states had unemployment rate decreases and 1 state had an increase. The national jobless rate declined by 0.2 percentage point from August to 4.2 percent and was 0.7 point lower than in September 2016. Nonfarm payroll employment decreased in 6 states in September, increased in 5 states and was essentially unchanged in 39 states and the District of Columbia. Over the year, 28 states added nonfarm payroll jobs and 22 states and the District of Columbia were essentially unchanged.