July 31, 2007
House Passes Farm Bill
On
Friday, July 27, the House passed a new farm bill that would increase support
for fruit and vegetable growers, strengthen land conservation efforts, increase
funding for nutrition programs and impose a modest limit on farm subsidies. It
would authorize $286 billion over five years for the programs included in the
bill. The Senate is expected to begin debating its version of the farm bill
after the August recess. The programs included in this bill currently expire on
September 30. It is unlikely that a new bill will be completed by that time. A
short-term extension will likely be enacted until the bill passes.
House Approves Conference Report Implementing
9/11 Commission Recommendations
On
Friday, July 27, the House approved the conference report to the Implementing
Recommendations of the 9/11 Commission Act of 2007 (H.R. 1). The agreement
includes a provision that would lower the minimum allocation of homeland
security formula grant funding to 0.375% of the total funding per state for
fiscal year (FY) 2008, and decrease the state minimum to 0.35% over five years.
The state minimum is currently 0.75. In addition, H.R. 1 would:
·
authorize $950 million
annually (from FY 2008 through FY 2012) for the State Homeland Security Grant
Program (SHSGP);
·
authorize the Urban
Area Security Initiative (UASI) at $850 million in FY 2008, increasing to $1.3
billion in FY 2012;
·
provide that the Law
Enforcement Terrorism Prevention Program would receive 25% of the combined
amount appropriated for SHSGP and the UASI in any given year;
·
authorize an
interoperable communications grants program at $400 million from FY 2009
through FY 2012, with a 80% pass-through to local governments requirement;
·
authorize the
Emergency Management Performance Grant program at $400 million in FY 2008,
increasing to $950 million in FY 2012, with a 50% match for operational use of
the funds and a 75% match for grants to construct emergency operation centers;
·
require the secretary
of the Department of Homeland Security (DHS) to complete a cost-benefit
analysis of the Western Hemisphere Travel Initiative before publishing a rule
to implement the Real ID statute; and
·
express the sense of Congress that there should be a continuing
and appropriate balance between funding for terrorism-focused and all-hazards
preparedness.
The
Senate passed H.R. 1 on Thursday, July 26.
SCHIP Reauthorization Progresses in House and
Senate
The
Senate yesterday voted to proceed to debate on the $35 billion reauthorization of
the State Children’s Health Insurance Program (SCHIP). The Senate bill is
financed primarily through a 61-cent increase in the federal cigarette tax.
Congressional procedures call for all revenue measures to originate in the
House, thus Senate leadership inserted the text of the Senate Finance
Committee’s mark (S. 1893) of the SCHIP bill into an unrelated small
business tax bill (H.R. 976) after stripping that measure of its entire
content.
The
House is expected to begin floor discussion of its $50 billion SCHIP
reauthorization bill (H.R. 3162) tomorrow or Thursday, August 2. Efforts are
still ongoing to reconcile the 10-year windows for expenditures and offsets.
These include provisions to reduce spending in the outyears
of the proposal, primarily by reducing bonus payments to states for enrollment
of children in Medicaid or SCHIP and by reducing funding for Medicare
providers.
House to Consider Lobbying/Ethics Reform
Package Today
The
House will consider a new version of a lobbying and ethics reform package (S.
1) today after an agreement on the measure was unveiled yesterday, bypassing
the need for a conference. The bill requires federal candidates and committees
to disclose when registered lobbyists bundle $15,000 in contributions on a
semi-annual basis; requires lobbyists to file quarterly, electronic reports;
imposes a two-year moratorium on senators who leave Congress to become
lobbyists (but does not affect the current one-year ban for former House
members); requires that all earmarks included in bills and conference reports,
along with their sponsors, be identified at least 48 hours before Senate votes,
and calls for senators to certify that they and their immediate family members
have no financial interest in an earmark.
The
revised measure will be voted on first by the House then the Senate, with the
Senate vote scheduled for Thursday.
July 27, 2007
Senate Adopts 9/11 Conference Report
Yesterday, the Senate adopted the conference report to H.R. 1, the Implementing Recommendations of the 9/11 Commission Act of 2007. The agreement reduces the FY 2008 state minimum grant allocation to 0.375% per state and reduces it further to 0.35% over five years. The state minimum is currently 0.75%. The House is expected to adopt the conference agreement early next week.
Senate Appropriations Update:
Homeland Security. Yesterday, the Senate passed its FY 2008 spending bill, which is $5.2 billion more than the president's request and $5.7 billion more than FY 2007. The measure provides $820 million for Urban Area Security Grants, $400 million for rail and mass transit security grants, $400 million for port security and $300 million for Emergency Management Performance Grants. In addition, the Senate adopted an amendment to add $3 billion in emergency border security spending. An amendment to include $300 million to assist states in implementing Real ID failed.
House Appropriations Update:
Justice. Yesterday, the House passed its FY 2008 Commerce-Justice-Science appropriations bill (H.R. 3093). The measure totals 7% more than FY 2007 and 5% more than the president's request. It includes $3.2 billion for state and local law enforcement programs, which is 53% more than the president's request and 10% more than the current level.
House Extends Higher Education Act
On Wednesday, July 25, the House cleared a three-month extension of the
Higher Education Act through October 31, 2007 (S. 1868). The Senate passed the
extension on Tuesday, July 24, after first adopting a five-year reauthorization
measure (S. 1642).
July 26, 2007
House Appropriations Update
Defense.
Yesterday, the House Appropriations Committee approved a measure to fund
Pentagon activities in FY 2008. It provides $3.5 billion less than the
president's request, but $39.7 billion more than FY 2007.
July 25, 2007
Clarification
to FFIS Issue Brief 07-33 (SCHIP)
Issue Brief 07-33 contained a typo; the chairman's mark passed 17-4, not 17-2. Two other questions raised by states not answered in the brief:
(1) A pregnant-women option is added if the state covers pregnant women in Medicaid up to 185% of the federal poverty level.
(2) The 11 states with significant expansions prior to the beginning of SCHIP in 1998 that have been precluded from using their allocations are given more flexibility.
Meanwhile, the House plans to mark up its SCHIP legislation (Children's Health and Medicare Protection Act of 2007, H.R. 3162) this week. H.R. 3162 would increase SCHIP funding by $50 billion over a five-year period paid for by a combination of an increase in the federal tobacco tax and reductions in net payments to Medicare, with reductions for Medicare Advantage plans partially offset by benefit increases.
The Senate is expected to consider its bill on the floor later this week or next week.
In addition, House and Senate Republicans are expected to introduce alternative legislation that would include a more limited $9 billion reauthorization with a package of tax credits and other tools to expand coverage through the private market.
9/11
Conference Agreement Reached
Yesterday, House and Senate conferees reached a tentative agreement on legislation to implement several recommendations of the 9/11 Commission (S. 4/H.R. 1). The conference agreement could be considered by the Senate later today and by the House tomorrow.
Higher
Education Update:
Higher Education Act. Yesterday, the Senate approved a five-year reauthorization of the Higher Education Act (S. 1642). The bill would require the Secretary of Education to create a "Higher Education Price Increase Watch List" that would rank institutions that outpace the price index for similar institutions.
Higher Ed Reconciliation Bill. Last week, the Senate passed the Higher Education Access Act (S.1762/H.R.2669). The bill cuts federal subsidies for lenders and reinvests a portion of the savings to provide grant aid and loan relief. The maximum Pell grant would increase from $4,310 to $5,400 per student by 2011. The House has passed a similar package (H.R. 2669).
The House and the Senate passed these reconciliation measures pursuant to instructions in the FY 2008 budget resolution to cut $750 million over six years. The president opposes both bills in their current form.
FY
2008 Appropriations Update:
Transportation-HUD.The House passed its FY 2008 appropriations bill for Transportation, Housing and Urban Development (HUD) and related agencies (H.R. 3074). It includes $40.2 billion for highways ($631 million above the president's request and $1.25 billion above FY 2007). It also includes $9.7 billion for transit ($333.8 million above the president's request and $782 million above FY 2007). The President has threatened to veto the legislation since it exceeds his budget request.
Labor-HHS-Education. The House passed its Labor, Health and Human Services, and Education appropriations bill for FY 2008 (H.R. 3043) on Thursday, July 19. The bill would provide $10.8 billion more than the president's request and $7.2 billion more than FY 2007. The White House opposes the measure. The Senate Appropriations Committee approved its version of the spending bill in June, and it has been placed on the Senate Legislative Calendar.
SEC
Chairman Calls for Federal Role in Municipal Bond Markets
Securities and Exchange Commission (SEC) Chairman Chris Cox has proposed a greater federal role over the municipal bond market. Chairman Cox called for federal legislation to mandate the use of government accounting standards by municipal issuers, independent funding of the Government Accounting Standards Board (GASB) and SEC oversight of GASB. Currently the federal government does not have direct oversight over state and local bond issuances.
July 18, 2007
Public Health Emergency Funds Announced
The administration today announced the allocation of $896.7
million in FY 2007 funding for Centers for Disease Control and Prevention (CDC)
grants for public health emergencies. The press release can be found at the
following link. This announcement is substantially late--the FY 2005
allocations were announced in May of 2005 and the FY 2006 allocations were
announced in June of 2006.
The press release does not distinguish among the funding
streams included, and FFIS will endeavor to track down whatever divisions may
be made available by CDC. The release may obtained at here.
Conference Set on 9/11 Bill
Yesterday, the House agreed to appoint conferees on
legislation implementing the recommendations of the 9/11 Commission (H.R. 1).
The Senate appointed conferees last week. Negotiations are expected to begin on
Thursday, July 19, and conferees hope to complete negotiations before the
August recess. Contentious issues include House language requiring the
screening of all cargo entering the nation’s ports and Senate provisions addressing
rail security.
House Passes Collective Bargaining Bill for Public Safety Workers
Yesterday, the House passed H.R. 980, which provides collective bargaining
rights to public safety workers.
Firefighters, police officers and other state and local public safety
officials would have the right to join unions and collectively bargain over
hours, wages and work conditions. The Federal Labor Relations Authority would
have 180 days to determine whether states meet the minimum standards
established in the bill. It is estimated that 20
states do not provide collective bargaining rights to public safety employees,
with several states prohibiting collective bargaining.
July 17, 2007
House Reauthorizes ARC
The House passed legislation to reauthorize the federal Appalachian
Regional Commission (ARC) for five years (H.R. 799). The ARC, which consists of
the governors of 13 states, addresses economic and social issues in more than
400 counties. The Senate Environment and Public Works Committee has already approved a companion bill (S. 496). The
full Senate has not yet considered that bill.
July 16, 2007
Medicaid Citizenship Rule Published
On July 13, 2007, the Centers for Medicare and Medicaid
Services published the final rule on the Deficit Reduction Act's requirement
that states obtain satisfactory documentary evidence of a Medicaid applicant's
or recipient's citizenship and identity. That regulation is available here.
July 13, 2007
House Passes Section 8 Reforms
The House has passed the Section 8 Voucher Reform Act (H.R. 1851). It would reform the Section 8 funding formula to improve its efficiency, simplify income calculations for participating families and require the Department of Housing and Urban Development to allocate annual funding to public housing authorities (PHAs) based on previous calendar year leasing and cost data, adjusted for inflation. The administration opposes the bill as too costly but has not issued a veto threat. There is no current companion bill in the Senate.
Senate Appropriations Update
Transportation-HUD. The Senate Appropriations Committee approved its FY 2008 appropriations bill for transportation and housing, which totals $325 million more than House appropriators made available and about 7% more than FY 2007 funding. The bill includes $3.8 billion for Community Development Block Grants. The bill also would provide $100 million for a state matching grant program for intercity passenger rail (the House bill would offer $50 million). The Senate bill funds core transportation programs at the requested levels under SAFETEA-LU and rejects an administration proposal to rescind $631 million in highway funds to the states.
Commerce-Justice-Science. Yesterday, the House Appropriations Committee approved its FY 2008 spending bill for Commerce-Justice-Science. The measure calls for an increase of 6% more than FY 2007 and 5% more than the president's request. It provides $3.2 billion for Department of Justice state and local law enforcement initiatives, which is 10% more than FY 2007 and 53% more than the president's request. Specific program funding levels include $600 million for Justice Assistance Grants, $725 million for COPS, $85 million for methamphetamine "hot spots," $375 million for the State Criminal Alien Assistance Program and $205 million for Violence Against Women Assistance grants.
Energy-Water Earmarks. Yesterday, the House Appropriations Committee approved nearly $1.1 billion in earmarks for the FY 2008 Energy-Water spending bill. The earmarks represented almost 13% of the funding for the Army Corps of Engineers and the Interior Department's Bureau of Reclamation. The remaining $247 million in earmarks is included in the Department of Energy's budget. The report is expected to be folded into the $31.6 billion spending bill (H.R. 2641), with consideration on the House floor anticipated early next week.
Agriculture. The House Appropriations Subcommittee on Agriculture yesterday approved its FY spending bill. The bill provides $1 billion more than the president's request.
Administration
The Office of Management and Budget (OMB) released its mid-season budget review on Wednesday, which projects a $4 billion deficit in the Highway Trust Fund by FY 2009. This is a dramatic increase from OMB's earlier projection of a $700 million shortfall. The House Transportation and Infrastructure Committee may hold hearings on the situation later this month. For more information on the Highway Trust Fund, see FFIS Issue Brief 07-31: Highway Trust Fund May Crash in 2009.
July 12, 2007
House
Passes Higher Ed Bill
Wednesday, the House passed the College Cost Reduction Act of 2007. The measure fulfills the House reconciliation instruction to save $750 million from education programs over five years. It cuts more than $18 billion from student loan lender subsidies and reinvests much of it back into Pell grants by increasing the minimum grant by $500 over five years, and into other higher education programs. The final bill excludes the "maintenance of effort" clause contained in an earlier version. It is not expected to be dealt with in the Senate until September.
House Extends TMA
Yesterday, the House passed a three-month extension of Transitional Medical Assistance program, which expired June 30. The Senate passed a similar measure before adjourning for the July 4th recess.
House Appropriations Update
Transportation-HUD. The House Appropriations Committee approved its FY 2008 spending bill for transportation and housing. The bill would fund core transportation programs at $40.2 billion for highways and $9.7 billion for public transportation, which are the requested levels under SAFETEA-LU. It does not rescind $631 million in highway funds to the states as recommended in the president's budget. The bill would fund the Airport Improvement Program at $3.6 billion, an increase of $850 million above the president's request. The bill provides $4 billion for the Community Development Block Grant program, representing $400 million more than the FY 2007 level. For housing programs, the bill would fund Section 8 tenant-based rental assistance at $16.3 billion and project-based assistance at $6.5 billion, increases of $400 million and $500 million, respectively, from FY 2007. Proposed funding for the HOPE VI program to restore dilapidated public housing is $120 million. The bill also would establish a new interagency working group to coordinate transportation and housing policies on the federal, state, and local levels.
Labor-HHS. Yesterday, the House Appropriations Committee approved its FY 2008 appropriations bill for programs in the departments of Labor, Education and Health and Human Services. The bill, approved by voice vote, would provide $151.5 billion in discretionary spending, $10.6 billion more than the president's request and $7 billion more than FY 2007 funding. Under the bill, the Department of Education would receive an increase of 7.4%. Education programs receiving increases from FY 2007 levels include Title I ($2 billion increase), IDEA Part B ($509.5 million increase) and Head Start ($75 million increase). The bill also increases the Pell Grant maximum to $4,700 per student. Key health and human services provisions include $1.1 billion for pandemic flu preparedness, an increase of $1 billion over FY 2007; $2.66 billion for the Low-Income Home Energy Assistance program, a $500 million increase from FY 2007; $2.2 billion for community health centers, an increase of $200 million from FY 2007; $109 million for the Preventive Health and Health Services Block Grant, an increase of $10 million over FY 2007 and $1.59 billion for Terrorism Preparedness and Response to provide for biodefense activities within the Centers for Disease Control and Prevention, a $47 million increase from FY 2007.
July 11, 2007
Senate Committee Reaches Tentative SCHIP Agreement
On Tuesday, July 17, the Senate Finance Committee is set to mark up a bipartisan agreement on reauthorization of the State Children's Health Insurance Program (SCHIP). The proposal is currently being scored by the Congressional Budget Office and may be released on Friday, July 13. The agreement would provide an additional $35 billion over five years, offset through a 61-cent per pack increase in the federal cigarette tax. (The congressional budget resolution permitted $50 billion over five years for the program.) The proposal reportedly would phase-out coverage of adults in an effort to provide more funding for children. The administration has indicated that it would consider vetoing such a proposal; it prefers expanding health care coverage through the federal tax code.
FFIS has prepared estimates of the tobacco tax losses states might see as a result of a 61-cent increase in the federal cigarette tax. The table can be found here. The estimates err on the high side, as they are based on all state tobacco tax collections and not just those on cigarettes. Moreover, these are one-year estimates and most analysts project continuing declines in tobacco consumption.
Yesterday, the House passed H.R. 660, the Court Security Improvement Act of 2007. The measure authorizes $20 million each fiscal year (FY) from FY 2007 to FY 2011 for state and local victim protection programs. The Senate has passed a companion measure (S. 378).
House Committee Approves Rule on College Cost Reduction Act
Yesterday, the House Rules Committee adopted a rule on the College Cost Reduction Act of 2007. As originally approved by the House Education and Labor Committee, the measure included a "maintenance of effort" provision that would mandate state higher education funding. The manager's amendment would eliminate that language. The House plans to vote on the bill later this week. The substitute bill and the rules for debate are available on the Rules Committee Web site.
July 10, 2007
FNS Releases Nutrition Program Reimbursement Rates
The Food and Nutrition Service (FNS) today published in the
Federal Register national average/maximum reimbursement rates for the National
School Lunch, School Breakfast and Special Milk programs. It separately
published similar information for the Child
and Adult Care program.
9/11 Bill Heads to Conference
Yesterday, Senate leaders reached an agreement
allowing them to conference the bills that implement recommendations of the 9/11
Commission (S. 4/H.R. 1). The conference had been held up by a Senate provision
granting Transportation Security Administration workers collective bargaining
rights. The Senate agreed to drop the provision, over which the White House had
threatened to veto the measure. See FFIS Issue Brief 07-23
for descriptions of the two bills.
July 9, 2007
Medicaid Reg Published
Today the Centers for Medicare and Medicaid Services (CMS)
placed on display at the Federal Register, the final regulation:
Medicaid Prescription Drugs: Average Manufacturer Price (AMP). This
regulation, required by the Deficit Reduction Act (DRA) of 2005,
implements a new method of setting limits on what the federal government will
reimburse state Medicaid agencies for prescription drug payments.
The CMS press
release, fact
sheet and Dear
State Medicaid Director letter can be found
online.
Some helpful links include:
Medicaid
Regulations Main Page
AMP Regulation (Direct Link to PDF File.)
Deficit Reduction Act (DRA)
Main Page
July 3, 2007
Medicaid Final Rule on Citizenship Released
The Centers for Medicare and Medicaid Services placed on display at the Federal Register a final rule on the citizenship documentation requirements for Medicaid. The Deficit Reduction Act of 2005 requires that states obtain satisfactory documentary evidence of a Medicaid applicant's or recipient's citizenship and identity in order to receive federal financial participation, effective July 1, 2006. This regulation provides states with guidance on the types of documentary evidence that may be accepted.
The final regulation is currently on display at the Office of the Federal Register and will be published on July 13, 2007. It can be viewed here.
House Fails to Extend TMA Before Recess
The House did not consider the three-month extension of the Transitional Medical Assistance (TMA) program before it recessed. It is expected to take up the Senate-passed extension soon after it returns from the July 4th recess.