This Week on the Hill
The House and Senate are both in session this week, following the August recess.
The House convenes today and will consider 12 bills in addition to a motion to go to conference on the fiscal year 2019 Defense appropriations bill. Over the remainder of the week, the chamber will consider six additional bills, with additional legislative items possible. Several committees have scheduled hearings this week: the Education and the Workforce Committee will hold a hearing Wednesday on rebuilding the workforce through apprenticeships; the Transportation and Infrastructure Committee will hold a hearing Wednesday on innovation in surface transportation; and the Energy and Commerce Committee will hold a hearing Thursday on perfluorinated chemicals in the environment.
The Senate convenes today and will resume consideration of a nominee to the Securities and Exchange Commission. Several committees scheduled hearings this week: the Health, Education, Labor and Pensions Committee will hold a hearing Wednesday on the impact of zero tariffs on U.S. autoworkers and the Commerce, Science and Transportation Committee will hold an oversight hearing Wednesday on the Transportation Security Administration.
Congress’ September To Do List
Both chambers return this week with a long list of actions to complete before the end of the federal fiscal year; there are 11 legislative days when both chambers are scheduled to be in session before September 30. Below are items expected to be considered this month.
- Fiscal 2019 Appropriations: The Senate has passed 9 of the 12 appropriations bills and the House has passed 6, but none have completed the conference process to keep the government open past September 30. The first conference report, expected to be on the three-bill package (H.R. 5895) covering Energy-Water, Legislative Branch and Military Construction-Veterans Affairs, could be released this week. Spending bills are likely to be passed as packages, but some may need extensions beyond September 30 through a continuing resolution to avoid controversial issues such as funding for a border wall.
- Federal Aviation Administration (FAA) Reauthorization: The current authorization expires at the end of September and Congress has not passed a long-term reauthorization since 2012, instead utilizing a series of extensions. The House passed its six-year reauthorization (H.R. 4) in April but the Senate bill (S. 1405) has yet to have a floor vote.
- Farm Bill Reauthorization: Several parts of the current law expire at the end of the month and conferees are scheduled to meet this week to review the progress of negotiations. One of the largest sticking points is the expansion of work requirements proposed in the House bill for able-bodied adults receiving food aid under the Supplemental Nutrition Assistance Program (SNAP).
- Supreme Court Nomination Hearings: The Senate Judiciary Committee began its nomination hearing for Supreme Court nominee Brett Kavanaugh today. The hearing is scheduled to take four days and if approved by the committee, the nomination would then move to the Senate floor, where Senate Majority Leader Mitch McConnell (R-KY) has stated his preference to have the vote completed in time for the court’s next session in October.
- Opioids Legislation: The House passed more than 50 bills and a bipartisan legislative vehicle (H.R. 6) in late June, while the Senate is still working on a package of bills. Health, Education, Labor and Pensions Committee Chairman Lamar Alexander (R-TN) has stated he expects an opioid package to go to the Senate floor within a few weeks, where it will compete for floor time with several other priorities.
USDA Releases Details on Trade Aid to Farmers
Last Monday the Secretary of Agriculture Sonny Perdue announced details of actions the U.S. Department of Agriculture (USDA) will take to assist farmers in response to retaliatory trade actions. President Trump directed the Secretary to craft a relief strategy, and in July the department announced it would authorize up to $12 billion in programs. Three main programs will be utilized to distribute aid: the Market Facilitation Program (MFP) will provide $4.7 billion in payments to corn, cotton, dairy, hog, sorghum, soybean, and wheat producers starting September 4, 2018; a Food Purchase and Distribution Program will purchase up to $1.2 billion in commodities; and the Trade Promotion Program (ATP) will make $200 million available to develop foreign markets for U.S. agricultural products.
WIFIA Loan Requests Top $9.1 Billion
The Environmental Protection Agency (EPA) recently announced that the agency received 62 letters of interest collectively requesting $9.1 billion in loans in response to the Water Infrastructure Finance and Innovation Act (WIFIA) program’s 2018 Notice of Funding Availability. In April, EPA announced the availability of additional WIFIA funding that could provide as much as $5.5 billion in loans and prospective borrowers were required to submit a letter of interest by July 31. EPA is currently evaluating the submitted letters of interest and will invite selected projects to submit a formal application this fall. A full list of the letters of interest submitted can be found here and additional information on the WIFIA program can be found here.
President Signs Executive Order Encouraging Private Sector Retirement Plans
On Friday President Trump signed an executive order on strengthening retirement security. The order directs the Secretary of Labor to examine policies related to multiple employer plans, under which employees of different private sector employers may participate in a single retirement plan, including expanding access to these plans. Next, the order directs the Secretary of Labor to review actions that could reform retirement plan disclosures required under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986, while also reducing burdens on employers. Finally, the order requires the Treasury Secretary to examine the life expectancy and distribution period tables in the regulations on required minimum distributions from retirement plans to determine if updates are necessary.
Interior Secretary Announces New Reorganization Plan
Last Wednesday, Secretary of the Interior Ryan Zinke announced the establishment of 12 Unified Regions for all of Interior’s Bureaus except for the Bureau of Indian Affairs, the Office of the Special Trustee for American Indians, and the Bureau of Indian Education. According to the department’s press release, the regions are rooted in the best science focused on watersheds and ecosystems and will simplify how the department is organized compared to the current 49 different regions; it also allows joint problem-solving and makes improved coordination between the bureaus and other federal, state and local agencies easier. Additional information, including a map of the new unified boundaries, can be found here.
Veterans Affairs Announces $200 Million to Support Homeless Veterans
On Thursday the Department of Veterans Affairs (VA) announced it plans to provide approximately $200 million in the upcoming fiscal year to support more than 13,000 transitional housing beds through its Grant and Per Diem Program. This program is offered annually to fund community agencies providing services to homeless veterans; only programs with supportive housing (up to 24 months) or service centers are eligible for these funds. Additional information on the grants can be found here and the grantee lists can be found here.
New CDC Report Shows Uninsured Rate Holds Steady
The Center for Disease Control and Prevention (CDC) issued its early release of estimates from the National Health Interview Survey from the first quarter of 2018. The survey found that in the first three months of 2018, 28.3 million (8.8 percent) persons of all ages were uninsured at the time of the interview – not significantly different from 2017, but 20.3 million fewer persons than in 2010. Among adults aged 18-64, 70 percent (138.6 million) were covered by private health insurance plans, including 4.2 percent (8.3 million) covered by private health insurance plans obtained through the Health Insurance Marketplace or state-based exchanges. Of the remainder, 12.5 percent were uninsured at the time of the interview and 19.2 percent had public coverage. Also, the percentage of persons under age 65 with private health insurance enrolled in a high-deductible health plan increased, from 43.7 percent in 2017 to 47 percent in the first three months of 2018.
Labor Begins Work on Overtime Rule Changes
Last week the Department of Labor announced it will hold public listening sessions to gather comments on the Part 541 white-collar exemption regulations, often referred to as the “overtime rule.” Issued under the Fair Labor Standards Act, these regulations implement exemptions from the overtime pay requirements for executive, administrative, professional, and certain other employees. The Obama administration issued a final rule in 2016, which doubled – to $47,476 - the salary threshold for almost all workers that were guaranteed overtime pay. A federal judge in Texas enjoined the rule from taking effect, and the Labor Department appealed; the Court of Appeals then suspended litigation over the rule to allow the agency to consider changes. In July 2017, the department published a request for information to solicit feedback; now the department is interested in hearing the views and ideas of listening session participants on possible revisions to the regulations.
Recently Released Reports
States Make More Progress Rebuilding Rainy Day Funds
The Pew Charitable Trusts
Post-Wayfair Options for States
Tax Foundation
Mapping Pre-Existing Conditions Across the U.S.
Kaiser Family Foundation
Homeland Security Grant Return on Investment
National Homeland Security Consortium
Economic News
GDP Increase for the Second Quarter of 2018 Increases Slightly on Second Estimate
The U.S. Department of Commerce Bureau of Economic Analysis released the “second” estimate for real gross domestic product (GDP) in the second quarter of 2018, showing that GDP increased at an annual rate of 4.2 percent. The second estimate is based on more complete source data than were available for the “advance” estimate issued in July, which showed an increase of real GDP of 4.1 percent. According to the release, the general picture of economic growth remains the same as with the advance estimate, with the revision primarily reflecting upward revisions to nonresidential fixed investment and private inventory investment that were partly offset by a downward revision to personal consumption expenditures. Imports, which are a subtraction in the calculation of GDP, were revised down.