This Week on the Hill
The Senate is in session this week while the House is on recess until November 13.
The Senate convenes today and will consider H.R. 302, a five-year reauthorization of Federal Aviation Administration (FAA) programs (see more information below). The chamber may also take up a bipartisan water infrastructure bill (S. 3021) this week, which authorizes $6.1 billion for 12 new Army Corps of Engineers projects and modifications for three projects, and includes $4.4 billion for the state drinking water revolving loan fund program. Several committees scheduled hearings this week: the Aging Committee will hold a hearing Wednesday on reducing health care costs and the Commerce, Science and Transportation Committee will hold a hearing Thursday on rural broadband.
The Supreme Court begins its new term today with oral arguments on two cases pertaining to endangered species and age discrimination in government employment; the term runs through June.
Fiscal Year 2019 Budget Update
Fiscal Year 2019 begins today, with five appropriation bills having a full-year of funding and the remaining agencies operating under a continuing resolution through December 7, 2018. The current status of appropriations bills is as follows:
- Full year funding: Energy-Water, Legislative Branch, Military Construction-Veterans Affairs, Defense, and Labor-Health and Human Services-Education.
- Continuing Resolution: Interior-Environment, Financial Services-General Government, Transportation-Housing and Urban Development, Agriculture, Homeland Security, Commerce-Justice-Science, and State-Foreign Operations.
Last week the spending bill covering the departments of Defense and Labor-HHS-Education passed the House on a 361-61 vote after previously passing the Senate, sending the bill to the President who signed it on Friday. The bill provides $855.1 billion in funding for fiscal year 2019, with the majority, or $674.4 billion, allocated for the Department of Defense.
Congress Reaches Agreement on Bipartisan Opioid Response Bill
On Friday the House voted 398-8 to advance a final opioids package, which had been released by bipartisan negotiators earlier in the week. The bill (H.R. 6) would remove the Institutions for Mental Disease (IMD) exclusion that prohibits the use of federal Medicaid financing for care provided to most patients in mental health and substance use disorder residential treatment facilities larger than 16 beds. Other features of the bill include expansion of the availability of telehealth under Medicaid and Medicare; the reauthorization of State Targeted Response grants; inclusion of the STOP Act which addresses illegal drugs at the border; encouraging non-opioid alternatives for pain; improving education, surveillance and treatment of injection drug-use associated infections; and increased first responder and naloxone training. With passage in the House, the Senate is expected to vote on the package in the upcoming days.
Congress Passes One-Week FAA Extension, Work Continues on Reauthorization
On Wednesday the House voted 398-23 to advance a five-year, $96.7 billion, bipartisan reauthorization of Federal Aviation Administration (FAA) programs, which were set to expire on September 30. The bill (H.R. 302) includes reforms to federal disaster programs and reauthorizations of the Transportation Security Administration and the National Transportation Safety Board. Provisions in the bill include stable funding for the Airport Improvement Program, elimination of Passenger Facility Charge restrictions, several items related to the regulation of unmanned aircraft systems (drones) and $1.68 billion to aid storm victims. The bill text can be found here, a section by section summary here, and highlights here. The House also passed a bill extending FAA authority through October 7 to give the Senate additional time to pass the legislation and avoid a lapse in authority. The Senate approved that bill on Friday and is scheduled to resume consideration of the five-year reauthorization today.
Federal Fiscal Year Ends Without New Farm Bill or LWCF Reauthorizations
The federal fiscal year ended yesterday with some major programs failing to be reauthorized before the deadline. Senate and House negotiators failed to reach a compromise on a new Farm Bill (H.R. 2), resulting in 40 programs losing funding after September 30, either due to lapsed authorization or funding. The Conservation Reservation Program lacks permanent authority, so it can continue to operate but cannot approve new contracts or issue new block grants. An additional 39 programs receive mandatory funding but do not have baseline funding beyond fiscal year 2018; these programs include conservation, bioenergy, rural development and research programs. Lawmakers could pass an extension targeting these programs, but nothing has been introduced at this time. The Land and Water Conservation Fund (LWCF), which uses federal fees collected from oil and gas operations on public lands in part to make grants to states, also expired at the end of the fiscal year. The program can continue to make payments, but new revenues will be deposited into the Treasury’s General Fund instead of into the LWCF. A bill making the fund permanent recently passed the House Natural Resources Committee and on Tuesday, the Senate Energy and Natural Resources Committee may consider a similar provision.
House Passes Tax Reform 2.0 Package
Last week the House approved three bills that together form a “Tax Reform 2.0” package. On Thursday the chamber voted 240-177 to pass H.R. 6757, which promotes family savings through creating universal savings accounts, expanding 529 education accounts and allowing families to use retirement accounts for expenses associated with a new child. A second bill, H.R. 6756, passed on a vote of 260-156 and is focused on business innovation, including allowing new companies to write-off more of their start-up costs. On Friday the House voted 220-191 to advance the third bill, H.R. 6760, which makes permanent the individual tax provisions included in the Tax Cuts and Jobs Act that are currently set to expire at the end of 2025, including making permanent the $10,000 limit on state and local tax deductions. Together, the bills would increase annual budget deficits by $657.3 billion over the next ten years, according to estimates from the Joint Committee on Taxation. It is unknown if the bills will be considered in the Senate.
HHS Announces $361 Million in Home Visiting Program Grants
On Thursday the U.S. Department of Health and Human Services (HHS) Health Resources and Services Administration announced approximately $361 million in funding to 56 states, territories and nonprofit organizations through the Maternal, Infant, and Early Childhood Home Visiting Program. The funds help provide voluntary, evidence-based home visiting services to women during pregnancy and to parents with young children, providing over 4.2 million home visits over the past six years. The program reaches those most in need, serving almost 42 percent of U.S. counties with high rates of poor birth outcomes or poverty. A list of grant awardees can be found here.
Labor Awards $110 Million in Dislocated Worker Grants
Last week the U.S. Department of Labor announced nearly $110 million in Trade and Economic Transition Dislocated Worker Grants for state, tribal, and non-profit entities that are working with community partners and local Workforce Development Boards to prepare Americans for professions in high-growth employment sectors. These grants are supported by the Workforce Innovation and Opportunity Act (WIOA) and temporarily expand the service capacity of dislocated worker training and employment programs at the state and local levels by providing funding assistance. The grants were awarded to 21 entities in 15 states, one territory, one tribal government and the District of Columbia.
Recently Released Reports
Research Evidence on the Impact of Work Requirements in Need-Tested Programs
Congressional Research Service
2017 Actuarial Report on the Financial Outlook for Medicaid
U.S. Department of Health and Human Services
State Trends in Law Enforcement Legislation, 2014-2017
National Conference of State Legislatures
2018 State of Computer Science Education: Policy and Implementation
Code.org Advocacy Coalition and Computer Science Teachers Association
Section 1115 Medicaid Demonstration Waivers: The Current Landscape of Approved and Pending Waivers
Kaiser Family Foundation
Economic News
Federal Reserve Raises Interest Rates
At its September meeting, the Federal Open Market Committee voted 9-0 to raise the target range for the federal funds rate to 2.0 to 2.25 percent, the third increase this year. The committee noted information received since the August meeting indicates that the labor market has continued to strengthen, and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. Looking at future possible adjustments, the statement says the Committee will “assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective.” The Federal Reserve also released its updated economic projections, raising the estimated GDP growth in 2018 from 2.8 percent to 3.1 percent and increasing the 2019 estimate from 2.4 percent to 2.5 percent; it is estimating growth of 2.0 percent in 2020 and 1.8 percent in 2021.