House
Passes Stimulus; Senate to Act Today
Yesterday, the House passed its economic stimulus legislation. The bill
includes tax rebates for individuals, accelerated depreciation and expensing
provisions for businesses, and changes to federal housing policy to assist
those at risk for foreclosure.
The Senate Finance Committee is scheduled to take up its legislation this
afternoon. Its proposal removes income caps for individual rebates, adds funds
for additional unemployment insurance and provides accelerated depreciation and
expensing provisions over two years. An anticipated amendment by Sen.
Rockefeller would provide $15 billion in counter-cyclical funding for states
through Medicaid and block grants.
Economic
Stimulus Developments
Senate Finance Committee Chairman Baucus has released specifics about his
$156 billion economic stimulus plan. The committee will mark up the bill
Wednesday. It includes rebates for all individuals with a reported tax
liability and has no income-eligibility cap. The proposal also
includes bonus depreciation for businesses, although at a slower rate than the
House bill. The bill also addresses net operating losses for businesses and
extends the number of weeks that workers can receive unemployment insurance
benefits by 13 weeks. Workers in states with unemployment rates of more than
6% would receive an additional 13 weeks.
The House is scheduled to vote on its stimulus package today.
Bush Administration Targets Earmarks
President Bush will issue an executive order directing federal agencies to
ignore future earmarks included in legislative report language but not
legislative text. The executive order would not apply to FY 2008 earmarks.
President Signs Defense Authorization Bill
President Bush signed the FY 2008 defense authorization bill that Congress
passed last week after making adjustments following a presidential veto.
HHS Issues Rule Regarding Departmental Appeals Board
The Department of Health and Human Services has issued a proposed
rule to amend the regulations governing the Departmental Appeals Board (DAB).
The DAB provides impartial, independent review of disputed decisions under the
jurisdiction of HHS, including Medicaid, Title IV-E, and other programs
authorized by the Social Security Act. The proposed changes could diminish the
role of the DAB and leave states without an objective means for disputing the
department's decisions.
Real ID
Deadline Extended, Funds Added
The deadline for applying for $31.3 million in Real ID grant funds from FY 2006
appropriations has been extended until March 7, 2008. Moreover, the $50 million
recently approved as part of the FY 2008 budget has been added to that pool of
available funds.
House
Agrees to Stimulus Plan
Yesterday, House leaders announced a deal with the administration for nearly
$150 billion in stimulus spending, including tax
breaks for individuals, changes to depreciation rules for businesses and
policies to help homeowners avoid foreclosure. The proposal includes:
° Approximately $100 billion in rebate payments for individuals, ranging from
$300 per individual to $1,200 for married couples, with an additional $300 per
dependent child. The payments would go to anyone with income tax liability or
earned income of $3,000 or more in 2007. The rebates phase out for adjusted
gross incomes of more than $75,000 for individuals and $150,000 for couples.
° Fifty percent bonus depreciation on new equipment and increased expensing
write-offs for small businesses.
° An increase in conforming loan limits for the Federal Housing Administration
and for Fannie Mae and Freddie Mac.
The Senate Finance Committee will mark up its stimulus package next week. The
Senate may consider including additional stimulus policies such as aid for
Medicaid, unemployment insurance, food stamps and infrastructure.
SCHIP Veto
Upheld
Yesterday, the House voted to sustain the administration's veto of H.R. 3963,
which would reauthorize the State Children's Health Insurance Program
(SCHIP). In December, the president signed the Medicare, Medicaid and SCHIP
Extension Act of 2007 (P.L. 110-173), which keeps the SCHIP program running
through March 2009. The extension seeks to avert any federal funding shortfalls
during this period, but does not make any significant policy changes to the
program.
House
Passes Mandate on Prison Inmates Death
Yesterday, the House passed H. R. 3971, the "Death in Custody Reporting
Act of 2007." The measure requires states to submit quarterly reports
about prisoner deaths to the Department of Justice unless such disclosure would
violate a state's constitution. States not complying with the mandate would
lose 10% of their Edward Byrne Memorial Block Grant funds.
House
Reauthorizes Measure to Assist Mentally Ill Offenders
The House yesterday passed H.R. 3992, the "Mentally Ill Offender
Treatment and Crime Reduction Reauthorization and Improvement Act of
2007," which would reauthorize the Mentally Ill Offender Treatment and
Crime Reduction grant program, created in 2004. H.R. 3992 would increase
authorized grants from $50 million to $75 million annually through FY
2013.
Census
Poverty Data Published
New Census poverty levels have been published
in the Federal Register. Many federal and state programs base their
eligibility levels on these data.
HHS to Stand by Median Income Data
The Department of Health and Human Services (HHS) has responded to a request
from the National Association of State Energy Directors seeking relief
from unusually low 2005 median income estimates for many small states. These
estimates result in reductions in the eligibility ceiling for the Low
Income Home Energy Assistance Program (LIHEAP). (See Issue Brief 07-50
for more information.)
House
Reauthorizes HOPE VI Program
Yesterday, the House passed an eight-year
reauthorization of the HOPE VI public housing revitalization program (H.R.
3524). The program rehabilitates or replaces severely distressed public housing
projects with mixed-use, mixed-income developments. There is no Senate
companion bill.
Administration
Releases LIHEAP Emergency Contingency Funds
Yesterday, the Bush administration announced the release of about $450 million
in Low-Income Home Energy Assistance Program emergency contingency funds. Attached
are state-by-state numbers showing the allocation. This
leaves about $151 million remaining in the fund.
Medicaid Reg on Personal Assistance Services
On Friday, January 18, 2008, the Centers for Medicare
& Medicaid Services (CMS) is scheduled to publish in the Federal
Register a proposed rule on self-directed personal assistance services
(PAS). The rule implements Section 6087 of the Deficit Reduction Act of 2005
(DRA). The policy is intended to allow more Medicaid enrollees to determine how
and by whom their personal assistance services are provided. States have the
option of offering self-directed PAS by submitting a state plan amendment. The
proposed rule provides guidance to states and requests comment on how states
can best allow Medicaid enrollees to use the new option. The rule is attached, and comments
are due to CMS by February 18, 2008.
Final Rule
for Real ID Released
As expected, on Friday, January 11, 2008, the Department of Homeland Security
(DHS) released the final rule to implement Real ID, which requires states to
change their driver's license and ID cards to be accepted for federal purposes,
such as air travel screening. The rule requires all states to be in compliance
on May 11, 2008, unless they have obtained an extension from compliance. Under
the rule, states must file a request for an initial extension within 60 days
after publication of the rule. DHS will grant states requesting extensions
until December 31, 2009, to comply. If states demonstrate that they have
achieved certain milestones towards compliance (18 milestones are identified in
the rule), but have not reached full compliance by December 31, 2009, DHS will
grant a second extension upon request to May 11, 2011.
States that have been granted extensions will have until December 1, 2014, to
comply with Real ID requirements for driver's license and ID cards for
individuals born after December 1, 1964; and states will have until December 1,
2017, to comply with Real ID requirements for those born on or before December
1, 1964. DHS estimates that the new rule will cost states more than $3.9
billion over 10 years, compared to the $14 billion price tag associated with
the proposed rulemaking last year.
The press release and rule can be viewed here: http://www.dhs.gov/xnews/releases/pr_1200065427422.shtm
Real ID Regs Expected Today
The Department of Homeland Security will release the final regulations for Real
ID today. According to news releases, the regulations include significant
changes to the original draft rulemaking and include an extended time period
for compliance. Those reports also state that the changes will reduce state
compliance costs to $3.9 billion down from more than $14 billion estimated last
May.
CMS
Proposes Part D Premium Cut for Low-Income Individuals
The Center for Medicare and Medicaid Services (CMS) has published in the Federal
Register a proposed rule, "Prescription Drug Plans to Lower Their
Premiums for Low-Income Subsidy Beneficiaries"
(CMS-4133-P). The rule would allow Medicare Prescription Drug Plans to
reduce prescription drug premiums for individuals eligible for the low-income
subsidy only. The proposal would reduce the number of low-income
beneficiaries reassigned to new plans each year because of plan bids that
exceed the benchmark plan level. A copy of the proposed rule is available on
the CMS website: http://www.cms.hhs.gov/PrescriptionDrugCovContra/HPMSGH/itemdetail.asp?itemID=CMS1207003.
SCHIP
Extended Through March 2009
On December 29, 2007, President Bush signed the Medicare, Medicaid and SCHIP
Extension Act of 2007 (S. 2499). The law extends funding for the State
Children's Health Insurance Program (SCHIP) through March 2009. It also
addresses SCHIP shortfalls by making $1.6 billion available in FY 2008, based
on data as of November 30, 2007. The law also outlines the process to redistribute
unspent FY 2006 SCHIP funds in FY 2009 and makes an additional
appropriation of no more than $275 million to avert shortfalls during the first
two quarters of FY 2009.