This Week on the Hill
The House and Senate return on Wednesday for a shortened session week.
The House convenes Wednesday and will consider 21 bills. For the balance of the week, the chamber will consider 13 bills including H.R. 3798, which repeals the 30-hour threshold for classification as a full-time employee for purposes of the employer mandate in the Affordable Care Act, and delays the “Cadillac tax” until 2023. Several committees scheduled hearings this week: the Energy and Commerce Committee will hold a hearing Thursday on the air quality impacts of wildfires and a hearing Friday on strengthening public safety communications; and the Judiciary Committee will hold a hearing Friday on examining sober living homes.
The Senate convenes on Wednesday and will consider S. 2680, a bipartisan package of opioid-related proposals (see details below). Several committees scheduled hearings this week: the Homeland Security and Governmental Affairs Committee will hold a hearing Thursday on evolving threats to the homeland and the Commerce, Science and Transportation Committee will hold a hearing Thursday on emerging transportation technologies.
Fiscal Year 2019 Budget Update
Appropriators continue to work on conference reports, aiming to pass 9 of the 12 appropriations bills prior to the end of the federal fiscal year on September 30. Bills not passed by that date, including the Homeland Security measure which would include funding for a southern border wall, would likely be covered by a continuing resolution through November. This week, the House is planning to vote on the conference report for H.R. 5895, which covers the Energy-Water, Military Construction-Veterans Affairs, and Legislative Branch spending bills. Negotiations were completed over the weekend and a conference report is expected to be released today on the $147 billion spending measure.
Treasury Issues Clarification on SALT Regulations
Last Wednesday the Treasury Department released a clarification on its recently issued proposed regulations on the availability of charitable contribution deductions when the taxpayer receives or expects to receive a corresponding state or local tax credit. Under the proposed regulations, a taxpayer who donates to an entity eligible to receive tax deductible contributions must reduce their charitable deduction by the amount of any state or local tax credit the taxpayer receives or expects to receive. The clarification states that business taxpayers who make business-related payments to charities or government entities for which the taxpayers receive state or local tax credits can generally deduct the payments as business expenses; the general deductibility rule is unaffected by the recent proposed regulations.
House Releases Fact Sheets on Tax Cuts 2.0
House Ways and Means Committee Chairman Kevin Brady (R-TX) released new details on the second round of tax cuts that are planned for a vote this month. The chairman released three fact sheets that include broad themes for the next round of tax action: Protecting Middle Class and Small Business Tax Cuts, Growing Brand-New Entrepreneurs, and Promoting Family Savings. A committee markup on the bill is expected for Thursday. The fact sheet on the individual provisions does not specifically reference the $10,000 cap on state and local deductions, but does note the new bill would lock in lower tax rates and eliminate the alternative minimum tax.
Judge Hears Oral Arguments in ACA Lawsuit
On Wednesday District Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas heard oral arguments on a case brought by 20 state attorneys general to overturn the Affordable Care Act (ACA). The lawsuit argues that all parts of the health care law should be ended immediately due to the zeroing out of the individual mandate penalty in the Tax Cuts and Jobs Act. In June, Attorney General Jeff Sessions sent a letter informing Congressional leadership the Department of Justice would not defend the ACA in the legal challenge. A decision on the case is expected this fall.
Preschool Development Grants Application Released by HHS
On Friday the Department of Health and Human Services (HHS) released its application for Preschool Development Grants. The grants will fund states to develop, update, or implement a strategic plan to facilitate collaboration and coordination among early childhood care and education programs in a mixed delivery system to prepare low-income and disadvantaged children. Originally authorized by the Every Student Succeeds Act, the department expects to award 40 grants, with an average projected award amount of $5 million for a one-year project period. Applications are due November 6. More information on the Preschool Development Grants can be found here.
Senate to Vote on Opioid Package This Week
The Senate reached an agreement last week on a bill to address the opioids crisis and a vote is expected this week on the Opioid Crisis Response Act of 2018. The bill is a bipartisan package of over 70 proposals recommended by five committees: Health, Finance, Judiciary, Commerce and Banking. Provisions in the bill include: the STOP Act, which addresses illegal drugs at the border; flexible grants to states to better share prescription drug monitoring program data; provisions to support states and tribes in addressing substance use disorders; expanding access to medication-assisted treatment; improving plans of safe care and support for substance-exposed babies and their mothers; and promoting family-focused treatment and recovery. The bill does not address the institutions for mental disease (IMD) exclusion, but states would get a total of $500 million a year through 2021 for grants created under the 21st Century Cures Act to combat drug addiction. A section-by-section summary of the bill can be found here.
Administration Issues Directive on Grant Recipient Reporting Burdens
Last Wednesday the Office of Management and Budget (OMB) sent a memorandum to all executive departments and agencies on strategies to reduce grant recipient reporting burden. The Digital Accountability and Transparency Act (DATA Act) tasked OMB with administering a grants pilot to provide new solutions that reduce administrative burden on awardees and the government workforce. This memorandum lays out strategies on reducing burden, including: reducing the number of legacy systems and lessening burden via sharing quality services and systems; making the System for Award Management (SAM) the central repository for common government-wide certifications and representations required of federal grant recipients as of January 1, 2020; reviewing agency data collection from recipients to eliminate duplications; adopting grants management data standards; and deploying a readiness assessment tool for agencies.
SAMHSA Awards $215.2 Million for Justice-Involved Populations
Recently the Substance Abuse and Mental Health Services Administration (SAMHSA) awarded up to $215.2 million over five years for justice-involved individuals who have mental and substance use disorders. According to the press release, these programs are intended to provide effective treatment services to reduce further criminal justice involvement and to promote recovery for justice-involved individuals. Grant awards were made through four programs: Law Enforcement and Behavioral Health Partnerships for Early Diversion, where nine recipients received up to $330,000 per year for up to five years; Grants to Expand Substance Abuse Treatment Capacity in Family Treatment Drug Courts, where 13 recipients received up to $425,000 per year for up to five years; Offender Reentry Program, where 21 recipients received up to $425,000 per year for up to five years; and Grants to Expand Substance Abuse Treatment Capacity in Adult Treatment Drug Courts and Adult Tribal Healing to Wellness Courts, where 73 recipients received up to $400,000 per year for up to five years.
CMS Releases June Medicaid Enrollment Report
The Centers for Medicare and Medicaid Services (CMS) released the June 2018 monthly report on state Medicaid and Children's Health Insurance Program (CHIP) eligibility and enrollment data. These data were reported by state Medicaid and CHIP agencies as part of the Medicaid and CHIP Performance Indicator process. The preliminary data show that total enrollment equaled 73.4 million. Since October 2013, enrollment in both programs increased by more than 27.8 percent, compared with the July-September 2013 baseline. States that expanded Medicaid experienced enrollment gains of more than 36.1 percent, while states that did not expand Medicaid saw increases of 10.8 percent.
Recently Released Reports
Benchmarking State Government Websites
Information Technology and Innovation Foundation
Trends and Disparities in Delivery Hospitalizations Involving Severe Maternal Morbidity, 2006-2015
Healthcare Cost and Utilization Project, U.S. Department of Health and Human Services
Convergence of K-12 and Higher Education: Policies and Programs in a Changing Era
Rockefeller Institute of Government
Household Food Security in the United States in 2017
U.S. Department of Agriculture, Economic Research Service
Securing the Vote: Protecting American Democracy
The National Academies of Sciences, Engineering and Medicine
Rural America is Losing its Affordable Rental Housing
Housing Assistance Council
Economic News
Economy Adds 201,000 Jobs in August
New data released last week by the U.S. Bureau of Labor Statistics showed that total nonfarm payroll employment increased by 201,000 in August and the unemployment rate was unchanged at 3.9 percent. This is slightly higher than the expected 195,000, and higher than the 147,000 jobs added in July. The data also shows that in August there were 6.2 million unemployed persons, little changed from July. The number of long-term unemployed (jobless for 27 weeks or more) was little changed at 1.3 million, accounting for 21.5 percent of the total unemployed. Over the year, the number of long-term unemployed has declined by 403,000. The labor force participation rate, at 62.7 percent, declined by 0.2 percentage point in August. Job gains occurred in wholesale trade (22,000), health care (33,000), mining (6,000), transportation and warehousing (20,000), construction (23,000) and professional and business services (53,000). Manufacturing decreased by 3,000 while employment saw little change for retail trade, information, financial activities, leisure and hospitality, and government. The average hourly earnings for all employees increased by 10 cents to $27.16 in August, following an increase of 7 cents in July. Over the year, average hourly earnings have risen by 77 cents, or 2.9 percent.