This Week on the Hill
The House and Senate are both in session for a short week.
The House convenes today and will consider seven bills under suspension of the rules including H.R. 4792, the Small Business Access to Capital After a Natural Disaster Act. On Tuesday the chamber will consider a fiscal 2018 defense appropriations measure, which would provide $659.2 billion in full year funding. Several committees have scheduled hearings this week: the Education and the Workforce Committee will hold a hearing Tuesday on evidence-based policymaking in education and the Energy and Commerce Committee will hold a hearing Tuesday on broadband infrastructure solutions.
The Senate convenes today and will resume consideration of the motion to proceed on S. 2311, the Pain-Capable Unborn Child Protection Act. Several committees scheduled hearings this week: the Environment and Public Works Committee will hold an oversight hearing Tuesday on the Environmental Protection Agency and the Health, Education, Labor and Pensions Committee will hold a hearing Tuesday on accountability to taxpayers in reauthorizing the Higher Education Act.
The President will deliver his first State of the Union speech Tuesday at 9 pm ET.
What Was and Wasn’t Included in the Latest Continuing Resolution
Last Monday the President signed a continuing resolution (H.R. 195) that funds the government until February 8. The continuing resolution includes the following provisions: a reauthorization of the Children’s Health Insurance Program (CHIP) for six years; a short-term reauthorization of the National Flood Insurance Program through February 8; a one-year moratorium on the health insurer tax in calendar year 2019; a 2-year moratorium on the 2.3-percent excise tax on the sale of medical devices; and a 2-year delay of the excise tax on high-cost employer health coverage known as the “Cadillac” tax. The continuing resolution did not contain provisions related to fiscal 2018 discretionary spending levels, the Deferred Action for Childhood Arrivals (DACA) program, disaster funding, or funding for community health centers. Lawmakers expect another continuing resolution will be needed after the current CR expires on February 8. In addition to the issues above, the next CR could also include additional funds to address the opioid crisis, action to aid underfunded private pension plans, and additional help to veterans.
President’s Budget Expected February 12, CBO Baseline Delayed
Although lawmakers are still working to finalize spending levels for fiscal year 2018, the administration is getting closer to releasing its budget proposal for fiscal year 2019. Last week the Office of Management and Budget indicated the President’s fiscal 2019 budget would be released on Monday, February 12. The release was delayed slightly due to time lost during the three-day federal government shutdown. Meanwhile, the Congressional Budget Office (CBO) is delaying release of its new 10-year projection of spending and revenue, known as the baseline, until lawmakers reach agreement on budget caps for fiscal years 2018 and 2019. The baseline is typically issued in late January but will be delayed until February or possibly March, according to news reports. The baseline is used by the congressional budget committees for developing their budget resolutions in the House and Senate and is also used to project the cost of legislation.
Azar Confirmed as New HHS Secretary
On Wednesday the Senate voted 55-43 to confirm Alexander Azar as the new Secretary of Health and Human Services (HHS). During his confirmation hearings, Azar vowed to leverage his industry credentials to make addressing the cost of prescription drugs a top priority. Azar worked for the department from 2001 to 2007, including serving as the deputy secretary; in 2007 Azar left HHS to become a senior vice president at Eli Lilly. The nominee was sworn in by the President today.
Justice Sends Letters to “Sanctuary” Jurisdictions for Documents
Last Wednesday the U.S. Department of Justice (Justice) sent letters to 23 jurisdictions, demanding documents that could show whether each jurisdiction is unlawfully restricting information sharing by its law enforcement officers with federal immigration authorities. The department has raised concerns in the past about laws, policies, or practices that may violate 8 U.S.C. 1373, a federal statute that promotes information sharing related to immigration enforcement; compliance with this statute is a condition of fiscal year 2016 and fiscal year 2017 Byrne/Justice Assistance Grant awards. According to the letters, failure to respond could result in a subpoena from the department and jurisdictions that are determined to be out of compliance with the federal statute may be required to return their fiscal year 2016 subgrant funds and may be deemed ineligible for fiscal year 2017 funds.
President Authorizes Tariffs on Solar Panels and Washing Machines
Last week the President approved new tariffs on imported large residential washing machines and imported solar cells and modules. For washing machines, the tariffs last three years and vary from 20 to 50 percent, with lower tariffs applied to the first 1.2 million units of imported finished washers. For solar cells, the tariffs extend for four years, beginning at 30 percent and then decreasing by five percent to 15 percent in year four. Section 201 of the Trade Act of 1974 authorizes the President to take action, in the form of tariffs, tariff rate quotas, quantitative restrictions or other actions, in response to an International Trade Commission (ITC) determination that increased imports are a substantial cause of serious injury to domestic producers. A fact sheet on the new tariffs can be found here.
USDA Releases Farm Bill and Legislative Priorities
Secretary of Agriculture Sonny Perdue announced last Wednesday the U.S. Department of Agriculture’s (USDA) Farm Bill and legislative priorities for 2018. The report contains 42 priorities under broad categories such as farm production and conservation, trade and foreign agricultural affairs, food and nutrition, food safety and inspection services, and rural development. Priorities aimed at states include the following: in nutrition programs, encourage state and local innovations in training, case management, and program design that promote self-sufficiency and achieve long-term stability in employment; in rural development, partner with states and local communities to invest in infrastructure to support rural prosperity, innovation and entrepreneurial activity; and in natural resources, expand Good Neighbor Authority and increase coordination with states to promote job creation and improve forest health through shared stewardship. The current Farm Bill (P.L. 113-79) expires September 30.
EPA Updates Guidance on Air Pollution Emissions
On Thursday the Environmental Protection Agency (EPA) issued a guidance memorandum withdrawing the “once in always in” policy for the classification of major sources of hazardous air pollutants under section 112 of the Clean Air Act. In a 1995 memo, EPA established a “once in always in” policy that determined that any facility subject to major source standards would always remain subject to those standards, even if production processes changed or controls were implemented that eliminated or permanently reduced that facility’s potential to emit hazardous air pollutants. With the new guidance, sources of hazardous air pollutants previously classified as “major sources” may be reclassified as “area” sources when the facility limits its potential to emit below major source thresholds.
White House Releases Immigration Framework
Last Thursday the White House released a framework on immigration reform and border security. The framework calls for a $25 billion trust fund for the border wall system, hiring additional personnel at the Department of Homeland Security and additional immigration judges, ensuring synthetic drugs like fentanyl are prevented from entering the country, and instituting immigration court reforms to improve efficiency and prevent fraud and abuse. The plan would also provide legal status for Deferred Action for Childhood Arrivals (DACA) recipients and other DACA-eligible undocumented immigrants, to encompass a total population of approximately 1.8 million individuals, while limiting family sponsorships to spouses and minor children and eliminating lottery visas. A formal proposal is expected to be released today.
Behavioral Health and Treatment Grants Available from SAMHSA
The Substance Abuse and Mental Health Services Administration (SAMHSA) announced a series of grant opportunities last week targeting behavioral health treatment and services. First, $13.4 million is available under the Law Enforcement and Behavioral Health Partnerships for Early Diversion grant program, which can be used to establish or expand programs that divert adults with a serious mental illness or co-occurring disorder from the criminal justice system to community-based services prior to arrest and booking. Second, $52 million is available under the Treatment for Individuals Experiencing Homelessness program, which can be used to help local service providers offer behavioral health and recovery support services to people experiencing homelessness. Finally, $17.4 million is available under the Minority AIDS Initiative: Service Integration program, which can be used to integrate evidence-based, culturally competent mental and substance use disorder treatment with HIV primary care and prevention services. Applications for all grant programs are due March 5.
DOT Issues Final Rule on State Highway Grants Under the FAST Act
Last week the Department of Transportation National Highway Traffic Safety Administration (NHTSA) released a final rule outlining the uniform procedures for state highway safety grant programs under the Fixing America’s Surface Transportation Act (FAST Act). The FAST Act made some changes to grant programs, which must be implemented pursuant to rulemaking. NHTSA published an interim final rule in May 2016 which was effective immediately, but the agency also sought public comments to inform the promulgation of the final rule. This rule includes a summary of public comments, as well as the uniform procedures for the grant programs; the final rule is effective February 26, 2018.
DHS To Begin Enforcement of REAL ID Next Month
The Department of Homeland Security (DHS) recently announced that the agency would begin enforcing compliance with the REAL ID Act on February 5. Fifty-five out of fifty-six states and territories are currently compliant or have received an extension until October 10, 2018. As of January 19, American Samoa is the only territory that has not reached compliance or received an extension. Passengers who have licenses issued by a state or territory that is compliant or has an extension to become compliant with REAL ID requirements may continue to use their licenses as usual.
Recently Released Reports
The Tax Debate Moves to the States: Tax Cuts and Jobs Act Creates Many Questions for States That Link to Federal Income Tax Rules
Tax Policy Center
50-State Comparison: Charter School Policies
Education Commission of the States
State Rainy Day Funds Grow Even as Total Balances Lag
The Pew Charitable Trusts
Profile of the Medicaid Expansion Population: Demographics, Enrollment and Utilization
Avalere Health
Principles of Effective Juvenile Justice Policy
National Conference of State Legislatures
Economic News
GDP Increased 2.6 Percent in the Fourth Quarter of 2017
Last week the U.S. Department of Commerce Bureau of Economic Analysis released data on the gross domestic product (GDP) for the fourth quarter of 2017 (advance estimate), showing an increase at an annual rate of 2.6 percent. This is slower than the third quarter, when GDP increased 3.2 percent. Real gross domestic product is the value of goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes. The increase in real GDP in the fourth quarter reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, exports, residential fixed investment, state and local government spending, and federal government spending. These positive contributions were partly offset by a negative contribution from private inventory investment. The “second” estimate for the fourth quarter, based on more complete data, will be released on February 28.