This Week on the Hill
The House and Senate are both in session this week as the end of the federal fiscal year nears.
The House convenes Tuesday and is scheduled to have votes through Friday, including on the three bills that constitute Tax Reform 2.0. While agreements have been reached to either reauthorize or extend expiring programs such as the Federal Aviation Administration and Violence Against Women Act, no agreement has been announced at this time on reauthorizing the Farm Bill, which also expires on September 30. Several committees have scheduled hearings this week: the Education and the Workforce Committee will hold a hearing Wednesday on first amendment rights on campus; the Energy and Commerce Committee will hold a hearing Thursday on reducing maternal mortality in the U.S.; and the Judiciary Committee will hold a hearing Thursday examining sports betting in America.
The Senate convenes today and will consider two nominations. Several committees scheduled hearings this week: the Commerce, Science and Transportation Committee will hold a hearing Wednesday on consumer data privacy; the Health, Education, Labor and Pensions Committee will hold a hearing Tuesday on states leading the way on the Every Student Succeeds Act; and the Homeland Security and Governmental Affairs Committee will hold a hearing Wednesday on the federal role in the PFAS chemical crisis.
Fiscal Year 2019 Budget Update
On Tuesday the Senate adopted the conference report for an $855.1 billion fiscal year 2019 spending package by a vote of 93-7. The bill covers full-year funding for the departments of Defense, Labor, Education, and Health and Human Services combined with a continuing resolution to fund all remaining government spending without a full-year appropriation through December 7, 2018. Funding under the bill is allocated as follows: $674.4 billion for the Department of Defense, an increase of $19.8 billion over the current year; $90.5 billion for the Department of Health and Human Services, an increase of $2.3 billion over the current year; $13.5 billion for the Department of Labor, a decrease of $218 million from the current year; and $75 billion for the Department of Education, an increase of $650 million over the current year. A joint explanatory statement can be found here and committee information here. The House is expected to take up the bill this week; the bill must be passed and signed by the President by September 30 to avoid any lapses in funding.
On Friday the President signed a $147.5 billion spending package (H.R. 5895) that includes the Energy-Water, Military Construction-Veterans Affairs and Legislative Branch bills. The bill provides a full year of funding for the departments of Veterans Affairs and Energy, as well as the Army Corps of Engineers and Congress.
Administration Releases Proposed Immigration Rule Relating to Use of Public Benefits
On Friday the U.S. Department of Homeland Security released a proposed rule entitled Inadmissibility on Public Charge Grounds, which proposes to prescribe how the department determines whether a person applying for a change in immigration status is inadmissible because they are likely at any time to become a public charge. Additionally, the rule proposes to require all immigrants seeking an extension of stay or change of status to demonstrate that they have not received, are not currently receiving, nor are likely to receive, public benefits as defined in the proposed rule. The press release indicates the following public benefits would be considered under the rule: federal, state, local, or tribal cash assistance for income maintenance, Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Medicaid (with limited exceptions for Medicaid benefits paid for an "emergency medical condition," and for certain disability services related to education), Medicare Part D Low Income Subsidy, the Supplemental Nutrition Assistance Program (SNAP, or food stamps), institutionalization for long-term care at government expense, Section 8 Housing Choice Voucher Program, Section 8 Project-Based Rental Assistance, and Public Housing. Once published in the Federal Register, the proposed rule will have a 60-day comment period.
Senate Passes Bipartisan Opioid Package
Last Monday the Senate voted 99-1 to approve bipartisan legislation, the Opioid Crisis Response Act of 2018, aimed at addressing the opioid epidemic. The House passed their legislation three months ago and a conference will be necessary to reconcile the differences. The Senate package encompasses 70 different proposals from five different committees: Finance; Health, Education, Labor and Pensions; Commerce; Judiciary; and Banking. Unlike the House version, the Senate bill does not address the institutions for mental disease (IMD) exclusion in Medicaid or include language that would alter privacy protections for individuals with substance use disorders. Key provisions in the bill include the STOP Act to target the flow of fentanyl and other illicit drugs through the mail, authorizes the National Institutes of Health to research potential non-addictive painkillers and reauthorizes a $500 million annual state grant program. A section-by-section analysis can be found here.
Bill Introduced to Reauthorize FAA for Five Years
House and Senate committee leaders reached a bipartisan deal late last week that reauthorizes the Federal Aviation Administration (FAA) for five years, the Transportation Security Administration for three years and the National Transportation Security Administration for four years. The bill also provides $1.68 billion through the Community Development Block Grant for housing assistance to storm victims. Provisions in the bill address airport improvements, airline customer service, aviation safety and unmanned aircraft systems. The House is expected to vote on the bill as early as Wednesday, paving the way for a Senate vote by Friday to avoid a lapse in program authorization after September 30. The full bill text can be found here and a summary can be found here.
HHS Announces $1 Billion in Grants to Fight Opioids Crisis
On Wednesday the U.S. Department of Health and Human Services (HHS) announced over $1 billion in opioid-specific grants, allocated through multiple areas of the department. The Substance Abuse and Mental Health Services Administration (SAMHSA) awarded more than $930 million in State Opioid Response grants to support a comprehensive response to the opioid epidemic and expand access to treatment and recovery support services. In addition, SAMHSA also awarded about $90 million to states and communities to expand access to medication-assisted treatment, increase distribution and use of overdose reversal drugs, and increase workforce development activities. The Health Resources and Services Administration awarded over $396 million for community health centers, academic institutions and rural organizations to expand access to integrated substance use disorder and mental health services. The Centers for Disease Control and Prevention awarded $155.5 million to increase support for states and territories working to prevent opioid-related overdoses, deaths, and other outcomes.
Bipartisan Online Sales Tax Bill Introduced, Preempts State Authority
A bipartisan group of lawmakers recently introduced legislation to clarify interstate sales tax collection requirements in light of the Supreme Court’s decision in South Dakota v. Wayfair. The Online Sales Simplicity and Small Business Relief Act (H.R. 6824) was introduced by Reps. Jim Sensenbrenner (R-WI), Anna Eshoo (D-CA), Jeff Duncan (R-SC) and Zoe Lofgren (D-CA). The bill would prevent states from retroactively collecting online sales tax (no collection on sales prior to June 21, 2018) and prevent states from collecting any online sales tax before January 1, 2019. Finally, it provides a $10 million exemption for small business sellers, until the states produce a compact, approved by Congress, to simplify collection to the point where no small business exemption is necessary.
USDA Releases $392 Million for Rural Water Infrastructure
Last week the U.S. Department of Agriculture announced the allocation of $392 million to help rebuild and improve rural water and wastewater infrastructure in 42 states. The funding will support 120 infrastructure projects through the Water and Waste Disposal Loan and Grant program, which can be used to finance drinking water, stormwater drainage and waste disposal systems for rural communities with 10,000 or fewer residents. For many projects, states and other partners are working with the department to also provide funding. A list of all projects can be found here.
Interior Distributes $100 Million from LWCF
Last Tuesday the Secretary of the Interior announced a $100 million distribution from the Land and Water Conservation Fund (LWCF) to all 50 states, the territories and District of Columbia for state-identified outdoor recreation and conservation projects. LWCF funds are non-taxpayer dollars derived from Outer Continental Shelf lease revenues and are awarded through federal matching grants administered by the National Park Service. Since the inception of the LWCF, over $4.2 billion from offshore oil and gas development has been made available to state and local governments to fund more than 43,000 conservation projects throughout the nation. The LWCF is set to expire on September 30. While a bipartisan bill to permanently reauthorize the fund was approved by the Natural Resources Committee on September 13, a short-term reauthorization is anticipated.
USDA Announces $103 Million for Specialty Crop Marketing
The U.S. Department of Agriculture announced the release of nearly $103 million through five grant programs to increase opportunities for farmers, ranchers and other growers. The Specialty Block Grant Program will allocate $72.15 million to departments of agriculture in the states, territories and District of Columbia to support farmers growing specialty crops. The Farmers Market Promotion Program will allocate $13.35 million to 49 projects supporting direct producer-to-consumer marketing projects such as farmers markets and agri-tourism. The Local Food Promotion Program will allocate $13.45 million to 44 projects to support the development and expansion of local and regional food businesses. The remaining grants will target market opportunities for the domestic maple syrup industry and the federal state marketing improvement program.
Recently Released Reports
Work-Based Learning: Model Policy Components
Education Commission of the States
2017 National Survey on Drug Use and Health
Substance Abuse and Mental Health Services Administration
Requirements for Students and Donors Participating in State Tax Credit Scholarship Programs
U.S. Government Accountability Office
Ready for Prime Time? State Governments Tune in to Artificial Intelligence
National Association of State Chief Information Officers
Economic News
Consumer Price Index, Real Hourly Earnings Increased in August
The U.S. Bureau of Labor Statistics released new data on the Consumer Price Index for All Urban Consumers (CPI-U) for August, showing the CPI-U increased 0.2 percent on a seasonally adjusted basis, the same increase as in July. Over the last twelve months, the all items index increased 2.7 percent before seasonal adjustment. The index for all items less food and energy rose 0.1 percent in August, the smallest monthly increase since April. The energy index rose 1.9 percent, due mainly to a 3.0 percent increase in the gasoline index, while the food index rose only slightly, and the shelter index increased 0.3 percent. For the 12 months ending in August, the index for all items less food and energy rose 2.2 percent, a smaller increase than the rise for the 12 months ending in July. Meanwhile, real average hourly earnings for all employees increased 0.1 percent from July to August, seasonally adjusted. This result stems from a 0.4 percent increase in average hourly earnings combined with a 0.2 percent increase in the CPI-U.
Unemployment Rates Lower in 13 States in August
New data from the Bureau of Labor Statistics shows that many state unemployment rates saw little change in August; 34 states and the District of Columbia had stable unemployment rates, 3 states had higher rates and 13 states had lower rates. Compared to one year earlier, 39 states and the District of Columbia had little or no change, while 11 states had unemployment rate decreases. The national jobless rate was unchanged from July at 3.9 percent but was 0.5 percentage point lower than in August 2017. Four states had over-the-month increases in nonfarm payroll employment in August 2018 and 35 states had over-the-year increases.