This Week on the Hill
The House and Senate are on a two-week recess.
Fiscal Year 2018 Omnibus Signed into Law
Last Thursday, the House voted 256-167 and the Senate voted 65-32 to approve the fiscal year 2018 omnibus spending bill and the President signed the bill on Friday, averting a federal government shutdown. The $1.3 trillion bill increases spending by $80 billion for defense and $63 billion for non-defense discretionary programs. The bill includes language from the Fix NICS bill (S. 2135), which would improve the National Instant Criminal Background Check system used by gun sellers during gun purchases, but does not include any funding to stabilize health insurance premiums under the Affordable Care Act. The full bill text can be found here.
Below are highlights from several of the appropriations bills:
- Labor-Health and Human Services-Education: $177.1 billion in discretionary funding, an increase of $16 billion above the fiscal 2017 enacted level. Education funding increases include a 1.9 percent increase for K-12 Title I, a 2.3 percent increase for IDEA special education grants to states, $1.1 billion ($700 million increase) for Student Support and Academic Achievement State Grants, a 7 percent increase for Career and Technical Education, a 6 percent increase for Adult Basic and Literacy Education, and a 7 percent increase for Head Start. To address the opioid epidemic, the budget includes $1 billion in new funding for grants to states and tribes, $130 million for the Rural Communities Opioid Response program, and $1.45 billion ($45 million increase) for CDC’s Public Health Preparedness and Response programs. In Health and Human Services, it includes an 83 percent increase (nearly $2.4 billion in additional funding) for the Child Care and Development Block Grant, a 10 percent increase in Aging Grants to States, a 28 percent increase in the Mental Health Block Grant, and a 7 percent increase for the Low-Income Home Energy Assistance program. Summary; One-Pager
- Transportation-Housing and Urban Development (HUD): $70.3 billion in net discretionary spending, an increase of $8.7 billion for the Department of Transportation (includes $1 billion increase in highway funding, $1 billion increase in TIGER program, $1.2 billion increase in rail funding, $1 billion increase for transit, and various increases for road safety programs), and an increase of $3.9 billion for HUD (includes a 10 percent or $300 million increase for Community Development Block Grants and 7.7 percent increase for Section 8 Housing), compared to fiscal 2017 enacted levels. Summary; One-Pager
- Interior-Environment: $35.2 billion, an increase of $3 billion above the fiscal 2017 enacted level. Includes a 21 percent increase for the Clean Water State Revolving Loan Fund and a 35 percent increase in the Drinking Water State Revolving Loan Fund, $3.8 billion to fully fund wildland fire suppression costs and $500 million additional funding for Forest Service suppression operations, a 10 percent increase to the Weatherization Assistance Program, $530 million for Payments In Lieu of Taxes to fully fund the program, and freezing base EPA funding at the fiscal 2017 level of $8.1 billion. Summary; One-Pager
- Agriculture: $23.3 billion in discretionary funding, an increase of $2.1 billion above the fiscal 2017 enacted level. Includes $3 billion ($1.8 billion increase) for rural water and waste program loans, $1 billion ($500 million increase) for drinking water and wastewater systems, and $685 million ($625 million increase) for expansion of broadband service. Summary; One-Pager
- Commerce-Justice-Science: $59.6 billion in discretionary funding, an increase of $3 billion above the fiscal 2017 enacted level. Includes $447 million for grant programs to states to combat opioid abuse, $75 million for School Safety grants, $75 million in grants to states to improve records used in background checks, $2.9 billion for various state and local law enforcement assistance grant programs, and $302 million ($26 million increase) for the Economic Development Administration. Summary; One-Pager
- Energy-Water: $43.2 billion, an increase of $5.4 billion above the fiscal 2017 enacted level. Includes $248 million ($18 million increase) to strengthen the security of the nation’s electric grid, $6.83 billion ($789 million increase) for the Army Corps of Engineers, and $7.1 billion ($706 million increase) for environmental cleanup. Summary; One-Pager
- Financial Services: $23.4 billion, an increase of $2 billion above the fiscal 2017 enacted level. Includes $415.5 million ($27.3 million increase) for the Office of National Drug Control Policy and $380 million to the Election Assistance Commission for state grants to improve election equipment. Summary; One-Pager
All committee summary documents can be found here and the committee Democrats’ summary can be found here. Federal Funds Information for States has updated their Jim Martin table on major discretionary and mandatory program funding levels, which can be found here.
Congressional Action on Election Security
The Senate Intelligence Committee held hearings on election security last week and issued draft recommendations on bolstering election security ahead of the 2018 midterm elections. The recommendations address the primacy of states in running elections, improving information sharing between the federal government and state and local governments, replacing outdated voting equipment, and urging Congress to pass legislation increasing financial assistance to states. In an open hearing, the Secretary of Homeland Security discussed auditing elections when there is no paper ballot and the low number of state election officials with top secret clearances, necessary to receive intelligence briefings. The fiscal year 2018 omnibus spending bill approved by Congress includes $380 million in grants for states to upgrade equipment and increase election security.
Labor Launches Opioid Program, DEA to Surge Staff to Hard-Hit Areas
Last week the Secretary of Labor Alexander Acosta announced a new National Health Emergency Dislocated Worker Demonstration Grant pilot program to help communities fight the opioid crisis. The department will initially fund seven to ten pilot programs with awards totaling $21 million. The grants may be used to help provide new skills to workers, including new entrants to the workforce, who have been or are being impacted by the opioid crisis, or may also be used for workforce development in professions that address or prevent problems related to opioids in American communities. Separately, in remarks delivered in Florida, the Attorney General announced that the Drug Enforcement Administration (DEA) will surge 250 officers and dozens of analysts to locations across the country hardest hit by the opioid epidemic.
Senate Passes Human Trafficking Bill, Sends to President
On Wednesday the Senate voted 97-2 to pass an online sex trafficking bill, sending the legislation to the President for his signature. The Allow States and Victims to Fight Online Sex Trafficking Act (H.R. 1865) amends Section 230 of the Communications Decency Act to hold websites liable for knowingly publishing content that facilitates sex trafficking. One of the main sponsors, Senator Rob Portman (R-OH), noted in a press release that the bill was the result of a two-year inquiry, led by Senators Portman and Claire McCaskill (D-MO). The President is expected to sign the bill.
CMS Releases Proposed Rule on Methods for Assuring Access to Care
The Centers for Medicare and Medicaid Services (CMS) issued a proposed rule that would provide exemptions from the regulatory access to care requirements within the Medicaid program. Specifically, the proposed rule would exempt states with high rates of comprehensive Medicaid managed care from analyzing data and monitoring access in fee-for-service delivery systems. Additionally, the proposed rule would provide similar exemptions to all states when they make nominal rate reductions to fee-for-service payment rates.
AG Releases Memo on Death Penalty for Drug Traffickers
Last Tuesday Attorney General Jeff Sessions sent a memo to all U.S. Attorneys outlining guidance regarding use of the death penalty in drug-related prosecutions. This recommendation was recently released in the administration’s priorities to combat the opioid epidemic. As part of the Department of Justice’s efforts, an opioid coordinator is designated in every district, fully utilizing the data analysis of the Opioid Fraud and Abuse Detection Unit and using criminal and civil remedies available under federal law. The memo states these efforts should also include the pursuit of capital punishment in appropriate cases, using current statutes that provide the department with the ability to seek capital punishment for certain drug-related crimes.
President Signs Memorandum on Chinese Tariffs
On Thursday President Trump issued a memorandum on proposed tariffs on Chinese imports to the United States. The memo directs the U.S. Trade Representative to: take all appropriate action under section 301 of the Trade Act of 1974 to address the acts, policies, and practices of China that are unreasonable or discriminatory and that burden or restrict U.S. commerce and consider whether such action should include increased tariffs on goods from China; and publish a proposed list of products and any intended tariff increases within 15 days. According to news reports, the tariffs on Chinese imports are expected to total between $50-60 billion.
Medicaid and CHIP Payment and Access Commission Releases March Report
The Medicaid and CHIP Payment and Access Commission (MACPAC) released its March 2018 Report to Congress on Medicaid and CHIP, focusing on managed care and telehealth, areas of high interest to Congress. The March report addresses streamlining the multiple legal authorities that states use to run their managed care programs and discusses how states are using telehealth as a strategy for addressing access barriers. The report also includes an analysis of Medicaid disproportionate share hospital allotments and finds that since implementation of coverage expansions under the Affordable Care Act, total hospital charity care continues to fall, with the largest declines occurring in states that expanded Medicaid. The Commission offers three recommendations to reduce the administrative burden for states to implement managed care programs without compromising beneficiary protections, and notes that managed care is now the dominant delivery system in Medicaid, with the share of beneficiaries enrolled in any form of managed care growing from 58 percent in 2002 to 80 percent in 2015. The report reviews the flexibility states have to cover telehealth in Medicaid and highlights the application of telehealth to various types of health care including behavioral health and services for high-need populations, such as individuals who use home and community-based services. The Commission finds that evidence on the effectiveness and outcomes of telehealth is mixed and suggests that states seeking to implement or expand coverage of telehealth would likely benefit from additional research as well as from the experiences of other states.
Recently Released Reports
Using Data and Evaluation in Policy Development, Implementation, and Monitoring: Building Successful Policies to Reduce Prescription Opioid Misuse
National Governors Association
Work and Opportunity Before and After Incarceration
The Brookings Institution
Targeted Teacher Recruitment, Teacher Development and Advancement, Teacher Evaluations
Education Commission of the States
Three Decades of Consolidation in U.S. Agriculture
U.S. Department of Agriculture
Economic News
Federal Reserve Raises Interest Rates
At its March meeting, the Federal Open Market Committee voted 8-0 to raise the target range for the federal funds rate by 0.25 percent to between 1.5 to 1.75 percent. The committee noted information received since the January meeting indicates that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate. Job gains have been strong in recent months, and the unemployment rate has stayed low. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The economic outlook has strengthened in recent months and the Committee expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in the medium term and labor market conditions will remain strong. Inflation on a 12-month basis is expected to move up in the coming months and to stabilize around the Committee’s 2 percent objective over the medium term.