This Week on the Hill
The House and Senate are in session this week with an expected focus on the defense authorization bill and immigration votes.
The House convenes Tuesday and will consider numerous bills related to opioids and Medicaid throughout the week, including H.R. 5797, the IMD CARE Act. The chamber may also consider bills related to border security and immigration. Several committees scheduled hearings this week: the Education and the Workforce Committee will hold a hearing Wednesday on occupational licensing; the Science, Space and Technology Committee will hold a hearing Thursday on state perspectives on regulating background ozone; and the Small Business Committee will hold a hearing Thursday on federal regulations impacting small farmers.
The Senate convenes today and continues consideration of the fiscal year 2019 National Defense Authorization Act. The chamber may also vote on the President’s rescission package this week after the House approved the package, as amended by the President, by a vote of 210-206 on June 7.
Fiscal Year 2019 Budget Update
Both chambers advanced appropriations bills last week and the first spending package is expected on the Senate floor this week.
- Senate Commerce-Justice-Science: Approved by the full Appropriations Committee by a vote of 30-1; appropriates $63 billion, an increase of $3.4 billion above the fiscal 2018 enacted level; includes $2.87 billion for state and local law enforcement and crime prevention grant programs, and $100 million for the STOP School Violence Act; includes a provision to protect states that legalized medical marijuana from Justice Department interference. The Ranking Member’s summary is here.
- Senate Interior-Environment: Approved by the full Appropriations Committee by a vote of 31-0; appropriates $35.9 billion, an increase of $600 million above the fiscal 2018 enacted level; Environmental Protection Agency level funded at $8.8 billion; funding of interest to states includes full funding for Payment in Lieu of Taxes, $4.3 billion for wildland firefighting, and $2.9 billion for Clean Water and Drinking Water State Revolving Funds. The Ranking Member’s summary is here.
- Senate Legislative Branch: Approved by full Appropriations Committee on a unanimous vote; appropriates $4.8 billion, an increase of $90 million over the fiscal 2018 enacted level. The Ranking Member’s summary is here.
- Senate Spending Package: The Senate is expected to consider the $147 billion three-bill spending packaged approved by the House (R. 5895) that covers the Energy-Water, Legislative Branch, and Military Construction-Veterans Affairs appropriations bills, although the Senate may propose a substitute amendment with their changes.
- House Labor-Health and Human Services-Education: Approved by subcommittee on a voice vote; appropriates $177.1 billion in discretionary funding, essentially the same as enacted fiscal 2018 levels; decreases funding for the Department of Labor but provides increases for the Department of Health and Human Services (up $1 billion) and Department of Education (up $43 million); the bill also includes policy riders to stop implementation of the Affordable Care Act.
- House Financial Services: Approved by full Appropriations Committee by a vote of 28-20; appropriates $23.4 billion, level funded from fiscal 2018.
- House State-Foreign Operations: Approved by subcommittee on a voice vote; appropriates $54 billion, level funded from fiscal 2018.
- House Defense: Approved by full Appropriations Committee by a vote of 48-4; appropriates $674.6 billion, which includes $606.5 billion in base funding and $68.1 billion in war funding.
This week the Senate plans subcommittee and then full committee markups on the Homeland Security, Financial Services, and State-Foreign Operations spending bills. The House has scheduled a full committee markup on Wednesday for the State-Foreign Operations and Labor-HHS-Education spending bills.
Senate Committee Passes Farm Bill
On Wednesday, the Senate Agriculture Committee voted 20-1 to advance the Agriculture Improvement Act of 2018, the Senate farm bill, after adopting over 60 amendments. The legislation does not include expanded work requirements or tightened eligibility for the Supplemental Nutrition Assistance Program (SNAP) but does focus on improving the income verification process while ending a bonus program designed to reward states for reducing error rates in making SNAP benefit payments. The bill also reauthorizes through fiscal year 2023 the Specialty Crop Block Grants Program and allows states to regulate hemp growth and production. The Senate Majority Leader said his goal is to put the bill on the floor before the Fourth of July recess. The House version, which included more stringent SNAP work requirements, failed on the floor by a vote of 198-213 but it is expected to come up for reconsideration following immigration votes scheduled for this week. The current farm bill expires on September 30.
DOJ Releases School Safety Grants
The Department of Justice Bureau of Justice Assistance released competitive grant announcements for two new programs created by STOP School Violence Act, enacted earlier this year as part of the two-year spending deal. Together the two new programs will award $50 million to states, local governments and federally-recognized tribes. The Prevention and Mental Health Training Program seeks applicants that address training school personnel and educating students to prevent student violence and training school officials in responding to related mental health crises. The Threat Assessment and Technology Reporting Program seeks applicants that address the development and operation of school threat assessment and crisis intervention teams and the development of technology for local or regional anonymous reporting systems. Applications for both grants are due July 23.
SAMHSA Announces $930 Million in Grants to Combat the Opioid Crisis
On Friday the Substance Abuse and Mental Health Services Administration (SAMHSA) announced it was accepting applications for fiscal year 2018 State Opioid Response Grants. The program aims to address the opioid crisis by increasing access to medication-assisted treatment using the three FDA-approved medications for the treatment of opioid use disorder, reducing unmet treatment need, and reducing opioid overdose related deaths. These grants will be awarded to states and territories via formula and the program also includes a 15 percent set-aside for the ten states with the highest mortality rate related to drug overdose deaths; the per-state formula amounts are listed on page 80 of the funding opportunity announcement. Applications are due August 13.
CMS Releases Guidance on Leveraging Medicaid to Combat the Opioid Crisis
The Centers for Medicare and Medicaid Services (CMS) released information to states about designing approaches to cover critical treatment services for Medicaid eligible infants with Neonatal Abstinence Syndrome and enhancing Medicaid technology to combat drug addiction and the opioid crisis. The CMS guidance discusses Medicaid coverage options and limitations on benefits for opioid-dependent babies, and how the program can assist caregivers. CMS also sent a letter to state Medicaid directors on how states may use federal funding opportunities to support health information technology efforts for the prevention and treatment of opioid abuse. The letter highlights how states might use federal financing to enhance prescription drug monitoring systems, utilize advanced analytics and public health data, coordinate care, and enhance statewide operability.
Interior Announces Grant Awards for State Parks
Last week the Secretary of the Interior announced $61.6 million in revenues are available through the Gulf of Mexico Energy Security Act (GOMESA) for distribution to the 50 states, territories, and District of Columbia. Revenues support Land and Water Conservation Fund (LWCF) grants that support outdoor recreation and conservation projects and are generated from Outer Continental Shelf lease revenues. According to the press release, this year’s distribution of GOMESA revenues is a significant increase from past years with this level of funding expected to continue into the future; moving forward, Interior will distribute these funds ahead of the traditional annual LWCF appropriations.
HUD Releases Fiscal 2018 Housing Trust Fund Allocations
The Department of Housing and Urban Development (HUD) released the fiscal year 2018 formula allocation amounts for eligible Housing Trust Fund grantees. Congress authorized the trust fund with the stated purpose of increasing and preserving the supply of rental housing for low-income families and increasing homeownership for extremely low-income and very low-income families. The total funding announced for fiscal year 2018 is $266.8 million.
Recently Released Reports
Additional Actions Could Help HHS Better Support States' Use of Private Providers to Recruit and Retain Foster Families
U.S. Government Accountability Office
For Many, Is College Out of Reach? Exploring Scalable Innovative State Programs to Close the College Access (and Success) Gap
Rockefeller Institute of Government
Key Questions about Medicaid Payment for Services in "Institutions for Mental Disease"
Kaiser Family Foundation
Tobacco Product Use Among Middle and High School Students, 2011-2017
Centers for Disease Control and Prevention
Economic News
Federal Reserve Raises Interest Rates
At its June meeting, the Federal Open Market Committee voted 8-0 to raise the target range for the federal funds rate to 1.75 to 2.0 percent. The committee noted information received since the May meeting indicates that the labor market has continued to strengthen, and that economic activity has been rising at a solid rate. Job gains have been strong, on average, in recent months, and the unemployment rate has declined. The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term.
Consumer Price Index and Real Hourly Earnings Increased in May
The U.S. Bureau of Labor Statistics released new data on the Consumer Price Index for All Urban Consumers (CPI-U) for May, showing the CPI-U increased 0.2 percent on a seasonally adjusted basis after rising 0.2 percent in April. Over the last twelve months, the all items index rose 2.8 percent before seasonal adjustment. The index for all items less food and energy rose 0.2 percent in May, while the energy index rose 0.9 percent, due mainly to a 1.7 percent increase in the gasoline index. The index for all items less food and energy rose 2.2 percent for the 12 months ending May, while the food index increased 1.2 percent and the energy index rose 11.7 percent. Meanwhile, real average hourly earnings for all employees increased 0.1 percent from April to May, seasonally adjusted. This result stems from a 0.3 percent increase in average hourly earnings being offset by a 0.2 percent increase in the CPI-U.