This Week on the Hill
The Senate convenes this week while the House remains in recess until September 4.
The Senate convenes today and will continue work on H.R. 6157, the fiscal 2019 spending package covering the $675 billion Defense bill and $179.3 billion Labor-Health and Human Services-Education bill. Several committees scheduled hearings this week: the Health, Education, Labor and Pensions Committee will hold a hearing Tuesday on financial literacy and secure retirement; the Homeland Security and Governmental Affairs Committee will hold a hearing Tuesday on Medicaid fraud and overpayments; and the Judiciary Committee will hold a hearing Tuesday on cyber threats to critical infrastructure.
DOJ Announces $3.4 Billion in Crime Victim Assistance Allocations
The U.S. Department of Justice (DOJ) recently announced awards totaling more than $3.4 billion to fund thousands of local victim assistance programs across the country. Supported by the Crime Victims Fund, a repository of federal criminal fines, fees and special assessments, the funding will be awarded through two grant programs administered by the Office for Victims of Crime: more than $3.3 billion will be awarded to states under the Victims of Crime Act (VOCA) Victim Assistance Formula Grant Program; and $129 million will be awarded to victim compensation programs in all states, two territories and the District of Columbia. According to the press release, the awards surpass every other single-year grant amount in the program’s 34-year history.
Senate Republicans Clarify Provisions of Tax Law
On Thursday Senate Finance Committee Chairman Orrin Hatch (R-UT), joined by other Republican members of the committee, sent a letter to U.S. Treasury Secretary Steven Mnuchin and Internal Revenue Service Acting Commissioner David Kautter regarding implementation of provisions of the Tax Cuts and Jobs Act (TCJA). The letter calls on the two agencies to issue guidance that is consistent with congressional intent regarding three sections of the law: section 13204, qualified improvement property expensing; section 13302, the net operating losses deduction; and section 13307, sexual misconduct settlement deduction. The letter also states that in addition to these sections, the committee is continuing a thorough review of the law to identify other instances in which the language as enacted may require regulatory guidance or technical corrections to reflect the intent of Congress.
USDA Highlights New Approach to Managing Wildfires
Last week the U.S. Department of Agriculture Forest Service announced a new strategy for managing catastrophic wildfires and the impacts of invasive species, drought, and insect and disease epidemics. The agency released a new report that outlines plans to work more closely with states to identify landscape-scale priorities for targeted treatments in select areas. According to the press release, a key component of the new strategy is to prioritize investment decisions on forest treatments in direct coordination with states using the most advanced science tools, in addition to using all active management tools and applying a risk-based response to wildfire. In calendar year 2017, federal agencies spent $2.9 billion to suppress wildfires across the country.
Secure Elections Act Introduced in House
Four members of the House Permanent Select Committee on Intelligence released a bipartisan bill on Friday focused on election security. The Secure Elections Act, sponsored by Reps. Tom Rooney (R-FL), Trey Gowdy (R-S.C.), Jim Himes (D-CT) and Terri Sewell (D-AL), would provide local communities and state governments with the resources needed to strengthen election systems against cyberattacks. The bill would allow states and local jurisdictions to voluntarily apply for grants to replace outdated voting machines and modernize their elections systems. The bill also streamlines the process the federal government uses to share relevant cybersecurity threat information with state and local governments and directs the Department of Homeland Security to ensure state election officials are appropriately cleared to receive vital classified information. The Senate introduced a version in December, and a newly released version of the bill is scheduled for a committee vote on Wednesday.
HHS Announces New Funding for Community Health Centers
The Department of Health and Human Services announced $125 million in quality improvement grant awards to 1,352 community health centers funded through the Health Resources and Services Administration. Health centers will use these funds to expand access to comprehensive care, address health disparities, advance the use of health information technology, and deliver patient-centered care. A list of grant recipients can be found here.
Education Awards $360 Million in Disaster Aid to 20 States
Last Tuesday the U.S. Department of Education announced a total of approximately $360 million in new federal assistance for 20 states and the U.S. Virgin Islands under the Temporary Emergency Impact Aid for Displaced Students program. The program assists with the cost of educating students displaced by Hurricanes Harvey, Irma, Maria or the 2017 California wildfires. Under the Emergency Impact Aid program, the department is authorized to award funds to eligible state educational agencies (SEAs) to enable them to make payments to eligible local educational agencies (LEAs) and eligible Bureau of Indian Education-funded schools for the cost of educating displaced public and non-public school students during the 2017-2018 school year. The awards were made based on the quarterly counts of displaced students that are included in the SEA applications for Emergency Impact Aid. The department also stated that it anticipates granting a second round of awards in the coming weeks which will include amounts for both California and Puerto Rico.
Waters of the U.S. Rule Reinstated in 26 States
On Thursday a federal judge in South Carolina ruled that the administration violated administrative legal requirements when it delayed the start of the Obama administration’s Waters of the U.S. (WOTUS) rule by two years, reinstating the rule in 26 states. The remaining 24 states are covered by two different injunctions, one issued to 13 states in 2013 and one issued to another 11 states in June. The WOTUS rule was enacted by the Environmental Protection Agency (EPA) and Army Corps of Engineers during the Obama presidency to clarify what types of waters constitute a “waters of the United States” and are thus covered by the Clean Water Act. Opponents of the rule indicated late last week they plan to appeal the court’s decision.
Recently Released Reports
Redesigning State Financial Aid: Principles to Guide State Aid Policymaking
Education Commission of the States
How Do Fees Affect Pension Plans' Ability to Beat Their Benchmarks?
Center for State and Local Government Excellence
Exploring the Growth of Medicaid Managed Care
Congressional Budget Office
State and Local Policy Levers for Increasing Treatment and Recovery Capacity to Address the Opioid Epidemic
U.S. Department of Health and Human Services
Economic News
Consumer Price Index Increased in June as Real Hourly Earnings Remained Flat
The U.S. Bureau of Labor Statistics released new data on the Consumer Price Index for All Urban Consumers (CPI-U) for July, showing the CPI-U increased 0.2 percent on a seasonally adjusted basis. Over the last twelve months, the all items index increased 2.9 percent before seasonal adjustment. The index for shelter rose 0.3 percent in July and accounted for nearly 60 percent of the seasonally adjusted monthly increase in the all items index. The index for all items less food and energy rose 0.2 percent in July, and over the last 12 months rose 2.4 percent (this was the largest 12-month increase since the period ending September 2008). Meanwhile, real average hourly earnings for all employees were unchanged from June to July, seasonally adjusted. This result stems from a 0.3 percent increase in average hourly earnings combined with a 0.2 percent increase in the CPI-U.
Unemployment Rates Lower in 11 States in July
New data from the Bureau of Labor Statistics shows that many state unemployment rates saw little change in July; 37 states and the District of Columbia had stable unemployment rates, 2 states had higher rates and 11 states had lower rates. Compared to one year earlier, 40 states and the District of Columbia had little or no change, while 10 states had unemployment rate decreases. The national jobless rate declined by 0.1 percentage point from June to 3.9 percent and was 0.4 point lower than in July 2017. Nonfarm payroll employment decreased in 1 state in July, increased in 6 states and was essentially unchanged in 43 states and the District of Columbia. Over the year, 34 states added nonfarm payroll jobs and 16 states and the District of Columbia were essentially unchanged.
CBO Projects 3.1 Percent GDP Growth for 2018 in Latest Update
Last week the Congressional Budget Office (CBO) released an update to the economic outlook for 2018 to 2028. In the update, the CBO projects real Gross Domestic Product (GDP) will grow by 3.1 percent in 2018. The pickup in growth projected by CBO is largely the result of increases in government spending, reductions in taxes and faster growth in private investment. Looking forward several years, CBO projects that real GDP is projected to grow by about 1.7 percent each year between 2023 to 2028.