FY
2008 Supplemental Heads to White House with Medicaid Moratoria,
UI Extension
Yesterday, the Senate approved H.R. 2642, which combines a supplemental war
appropriations with a $95.5 billion domestic package. The House passed the bill
June 19. The domestic spending piece delays implementation of six Medicaid
regulations (see FFIS Budget Brief 08-07) and includes $8.2
billion to extend unemployment insurance (UI) benefits. Additional funding
is included for veterans' education benefits, levees in
Senate Medicare Cloture Vote Fails
Yesterday, the Senate fell short of the 60 votes
needed to limit debate on H.R. 6331, Medicare legislation that would prevent a
10.6% reduction in Medicare physician reimbursement rates, scheduled to take
effect July 1. The bill also included provisions to extend the qualifying
individuals and transitional medical assistance programs (which expire June 30,
2008), as well as supplemental grants for the Temporary Assistance for Needy
Families.
Senate Passes Aviation Tax Extension
Yesterday, the Senate passed H.R. 6327, which extends the taxes that fund
aviation programs for three months. Attempts to add a provision that would
transfer $8 billion from the general fund to the Highway Trust Fund to address
a looming deficit failed. The Senate has yet to pass a long-term
reauthorization of aviation programs. The House passed its version (H.R. 2881)
in September 2007.
House Committee Approves Pre-Kindergarten Bill
Yesterday, the House Education and Labor Committee approved the Providing
Resources Early for Kids Act (H.R. 3289). The bill creates a new federal
program to improve the quality of state preschool programs. States may use the
federal grants to:
· Increase the number of teachers with baccalaureate degrees
· Expand benefits to recruit and retain teachers, aides and program directors
· Improve teacher-student ratios
· Provide health screenings and
· Use research-based curricula in preschool programs that are aligned with
state early learning standards.
Grants would
be awarded by formula to those states that the secretary of education
determines to meet specific quality requirements in state preschool programs.
The formula is based on the number of children under age 5 with family income
below the poverty line. "Selected" states that do not meet the
quality requirements would be awarded grants on a competitive basis. The bill
is authorized at $500 million for each fiscal year from 2009 through 2013 to
serve children ages 3-5; 10% of funds must be set aside for ages 0-3.
The bill also includes a maintenance-of-effort provision and a state match
requirement.
Senate Committee Approves FY 2009 Labor, HHS, Education Appropriations Bill;
House Committee Adjourns Without Approval
Yesterday, the Senate Appropriations Committee approved a FY 2009
appropriations bill for the departments of Labor, Health and Human Services and
Education. The overall funding level is an increase of more than $7.6 billion
above FY 2008 and $9.5 billion above the president's request. The following
increases above FY 2008 were included in the bill:
· $25 million for dislocated workers
· $40 million for Job Corps
· $223 million for Head Start
· $631 million for Title I grants to Local Education Agencies
· $477 million for Education for Individuals with Disabilities Part B grants
· $40 million to conduct eligibility reviews for Unemployment Insurance
· $1.025 billion for the National Institutes of Health and
· $150 million for community health centers.
In addition, the committee approved $585 million in total funding for pandemic
flu, including the development and purchase of vaccine, antivirals,
medical supplies, diagnostics and other surveillance tools.
The House Appropriations Committee also convened to consider its FY 2009
Labor-HHS funding measure. However, a controversial amendment pertaining to
off-shore drilling was offered and resulted in the committee voting to adjourn
without acting on the underlying Labor-HHS spending measure. It is not known
when the committee will schedule another mark-up.
House
Senate Extend HEA
Yesterday, the House approved an extension of the Higher Education Act (HEA)
until July 31, 2008. The Senate passed an extension on Monday. This is the
seventh extension of the law. At issue is a House maintenance-of-effort
(MOE) provision that would penalize states that reduce state appropriations for
higher education.
House Committee Funds Criminal Justice Programs
Yesterday, the House Committee on Appropriations approved FY 2009 spending
for programs in the Department of Justice (DOJ). Included in the spending bill
is:
· $550 million for the Byrne/Justice Assistance Grants (JAG) program ($380
million over FY 2008);
· $431 million for the Juvenile Justice and Delinquency Prevention program and
the Justice Accountability Block Grant program ($47.5 million above FY 2008);
· $627 million for the COPS program ($40 million above FY 2008);
· $435 million for the Violence Against Women Act programs ($35 million above
FY 2008); and
· $113 million for activities to implement the Adam Walsh Act of 2006.
Work
Ongoing on Medicare Reimbursement Fix
The House and Senate continue to work on various bills that would avert the
scheduled 10.6% decrease in physicians' Medicare reimbursements. Such bills
also would reauthorize the Qualifying Individuals program, reauthorize
Transitional Medical Assistance and extend supplemental grants for
Temporary Assistance for Needy Families. Action is expected this week.
House Passes Aviation Tax Extension without Highway Fix
Yesterday, the House passed the Federal Aviation Administration Extension Act
of 2008 (H.R. 6327). The bill extends the taxes that fund aviation programs for
three months but excludes a provision that would have transferred $8 billion
from the general fund to the Highway Trust Fund to address its looming deficit.
The Senate has yet to pass a long-term reauthorization of aviation programs.
The House passed one (H.R. 2881) in September 2007.
Senate Labor, HHS, Education Appropriations Subcommittee Marks Up FY 2009 Funding Bill
Yesterday, the Senate Appropriations Subcommittee on Labor, Health and Human
Services and Education approved a FY 2009 appropriations bill. The funding
level is an increase of $7.6 billion over FY 2008 and $7.4 billion more
than the president's request. However, the Senate bill is $400 million less
than a bill approved by the House subcommittee on June 19. The full committees
in the House and Senate are scheduled to consider their respective measures on
June 26.
House Appropriations Committee Approves First Responder Funding
Yesterday, the House Appropriations Committee on Homeland Security approved FY
2009 discretionary spending for programs in the Department of Homeland Security
(DHS). Most of the first responder programs were level funded or increased.
These include:
· $950 million for State Homeland Security grants, the same as FY 2008;
· $850 million for Urban Area Security Initiative grants, $30 million above FY
2008;
· $50 million for REAL ID grants, same as FY 2008 (plus another $50 million for
developing a "hub");
· $400 million for Transit Security Grants, same as FY 2008;
· $800 million for Fire Grants, an increase of $50 million over FY 2008, with
$570 million for the Fire Grant Program and $230 million for the SAFER Act
Grants;
· $315 million for Emergency Management Performance Grants, $15 million above
FY 2008;
· $400 million for Port Security Grants, same as FY 2008;
· $50 million for the Metropolitan Medical Response System, $8 million above FY
2008;
· $60 million for Operation Stonegarden, same as FY
2008;
· $50 million for Interoperable Communications;
· $200 million for the Emergency Food and Shelter program, $47 million above FY
2008; and,
· $1.9 billion for Disaster Relief.
House Committee Approves Funding for Military and Veterans Affairs
Yesterday, the House Military Construction-VA Appropriations Committee approved
FY 2009 discretionary spending for the Department of Veterans Affairs.
House
Passes Supplemental
Yesterday, the House approved a $257.5 billion bill (H.R. 2642) that
combines $162 billion in funding for the wars in
Labor-HHS-Education Subcommittee Marks Up FY 2009 Spending
Yesterday, the House Appropriations Subcommittee on Labor, Health and Education
approved its FY 2009 appropriations bill, sending it on to the full committee
for consideration. The overall funding level represents an $8 billion increase
over FY 2008 and $7.8 billion more than the president's request, including
increases for dislocated workers, state unemployment insurance
operations, employment services, the Low Income Home Energy Assistance Program,
the Community Services Block Grant and community health
centers.
In addition, $1.7 billion in total funding was provided for the Social Services
Block Grant. The full committee is scheduled to mark up the bill on June 25.
Senate Appropriations Approves Justice, Homeland Security Spending Bills
Yesterday, the Senate Committee on Appropriations approved FY 2009
spending for the Department of Justice (DOJ) and the Department of
Homeland Security (DHS). The DOJ spending bill includes $580 million for
the Byrne Justice Assistance Grants program ($410 million more than FY 2008);
$400 million for the Juvenile Justice and Delinquency Prevention program
(approximately $16.5 million above FY 2008); $600 million for COPS ($13 million
above FY 2008); $400 million for Violence Against Women programs (the same as
FY 2008); $30 million for drug courts ($15 million more than FY 2008) and $400
million for the State Criminal Alien Assistance Program ($10 million less than
FY 2008). The DHS measure includes approximately $4.2 billion for state and
local first responder programs, with $318.5 million for cyber security ($108
million more than FY 2008). Other state and local grant programs, including the
state homeland security grant programs; ports, rail, firefighter and transit
grants; and the Emergency Management Performance Grants are funded at FY 2008
levels.
CMS
Releases "Dear Medicaid Director" Letter
The Centers for Medicare & Medicaid Services (CMS)has released a new Dear
State Medicaid Director letter titled "Strengthening the Integrity of
the Medicaid Program." The letter is intended to assist states in
reducing improper payments to providers.
A copy of the letter can be found at http://inside.ffis.org//ff/SMDL08003_2_.pdf.
House Passes UI Extension
On Thursday, the House passed an extension of unemployment insurance by
a vote of 274-137. The Senate is not expected to take up the bill,
preferring to address the issue as part of a supplemental spending plan.
The bill would extend unemployment insurance in all states by 13 weeks beyond
the 26 weeks currently authorized. States with a total unemployment rate
of at least 6% or an insured unemployment rate of 4% or higher would get an
additional 13 weeks.
Republicans and the administration have argued for a more targeted approach,
and oppose the bill's elimination of a requirement that individuals work at
least 20 weeks before collecting extended federal benefits.
Extra Census Money Excluded from Spending Bill
The FY 2009 Commerce-Justice-Science spending bill approved by a House panel
does not include the extra $540 million requested at the last minute for the
Census Bureau. The subcommittee chairman said the administration's request was
received too late, but will be considered later.
Census takers will use paper questionnaires, not handheld computers as planned,
to gather information from residents who do not mail back forms - a decision
that may add as much as $3 billion to the cost of the census.
Senate Cloture Vote on Medicare Bill Fails
Yesterday,the Senate failed to limit debate on S.
3101. Among its provisions, the bill would have stopped a 10.6% reimbursement
cut to Medicare physicians scheduled to take effect July 1, added new
requirements for Medicare Advantage Special Needs Plans and extended
authorization for the Medicaid transitional medical assistance, abstinence education
and qualifying individuals (QI-1) programs. An alternative bill,
S. 3118, includes similar provisions but also would require states to use
a cost allocation methodology for determining the federal reimbursement for
certain Medicaid administrative expenses as well as other provisions that would
reduce federal expenditures. In advance of the vote, the administration issued
a statement opposing provisions to reduce payments to certain Medicare
Advantage plans and indicating the president would veto the legislation in its
current form. Sens. Baucus and Grassley are expected
to resume negotiations next week to craft a compromise proposal.
Supplemental
Deal Reached
The House, Senate and White House reportedly have
reached a deal that could allow the FY 2008 supplemental spending bill to move
forward. The bill is said to fund military operations, expand veterans'
education benefits, extend unemployment insurance by 13 weeks and delay the
implementation of six Medicaid regulations. (The House had previously passed a
moratorium on seven Medicaid regulations.)
Congress Overrides Farm Bill Veto Again
Yesterday, the House and Senate overrode President Bush's veto of H.R. 6124,
the Food, Conservation and Energy Act. This is the third congressional override
of a presidential veto and the second for the farm bill. The new measure
rectifies the error that omitted the trade title from the original version of
the farm bill (H.R. 2419).
House Committee Approves Environmental Education, Home Visitation Bills
Yesterday, the House Education and Labor Committee passed H.R. 3036, the
No Child Left Inside Act, which promotes environmental
education inside and outside the classroom. It creates a competitive grant
program awarded to nonprofit organizations, state educational agencies, local
educational agencies and institutions of higher education to expand the
capacity for environmental education and to strengthen teacher training. The
bill authorizes $100 million for each of FY 2008 through FY 2012. The bill
also extends the National Environmental Education Act for one year.
The committee also passed H.R. 2343, the Education Begins at Home Act. The bill
would expand support services to children ages birth to five, pregnant woman
and parents. A competitive grant program would enable states, Indian tribes,
tribal organizations and territories to establish or enhance early childhood
home visitation programs that strengthen parenting practices, improve school
readiness and reduce neglect and abuse. The bill is authorized at $400 million
over three years and authorizes $20 million in FY 2009 in assistance to
military families and an additional $20 million in FY 2009 for families with
English language learners. The bill includes a state maintenance of effort
provision and requires a state match.
Yesterday, the House Judiciary Committee approved H.R. 3546, which would reauthorize
the Edward Byrne Memorial Justice Assistance Grant program at $1.1 billion
annually through FY 2012. This program supports state and local law enforcement
efforts, including drug task forces, gang prevention, substance abuse treatment
and prosecution.
Senate
Procedural Vote on Medicare Bill Expected
Today, the Senate is expected to hold a procedural vote on S. 3101, a Medicare
bill that would update payments to Medicare physicians; extend authorization
for qualifying individuals (QI-1), Medicaid transitional medical assistance
(TMA) and abstinence education programs; and add new requirements for Medicare
Advantage Special Needs Plans, as well as other changes.
On Wednesday, an alternative Medicare bill was introduced that would increase
physicians' Medicare reimbursements for 18 months and also extend authorization
for QI-1, TMA and abstinence education, but also would: 1) require state
Medicaid cost allocation, 2) mandate a state Medicaid asset verification
program and 3) provide grants for Medicaid outreach and enrollment.
Veto-Proof UI Bill Fails in House
Yesterday, the House unsuccessfully attempted to advance H.R. 5749, a
stand-alone bill that would extend unemployment insurance (UI) for 13 weeks in
all states, with an additional 13 weeks for states having an unemployment
rate of 6% or higher. The vote, 279-122, was three votes shy of the two-thirds
majority needed to pass a veto-proof bill.
House Passes Amtrak Reauthorization
Yesterday, the House approved H.R. 6003, the "Passenger Rail Investment
and Improvement Act of 2008." The bill authorizes $14.9 billion through
2013 for Amtrak capital grants, debt service, operations grants and Americans
with Disabilities Act compliance, among other authorizations. It also creates a
new program, authorized at $2.5 billion, for capital grants to states-awarded
on a competitive basis-to improve or add intercity passenger service. States
and Amtrak also qualify for $1.75 billion in grants to finance construction of
high-speed rail corridors. In addition, lawmakers included a provision to
encourage private companies to bid on a high-speed rail project connecting
House
Passes FY 2009 Budget
Yesterday, the House adopted the conference report for the FY 2009 budget
resolution. The budget relies heavily on reserve funds for major spending
initiatives that may be implemented if offsets are found. Such funds are
in place for the State Children's Health Insurance Program, Medicare and
physician pay. Adoption of the budget resolution signals the official
beginning of the appropriations process, which the House hopes to finish before
August.
Tax Extenders on Senate Agenda
Senate Finance Committee Chairman Baucus announced that legislation to
extend several expiring tax provisions could be addressed by the Senate as
early as next week. The package would extend several expired and
expiring tax provisions for two years and patch the alternative minimum tax
(AMT) for one year. The House passed its tax extender legislation in May
but has not yet addressed AMT.
Senate Passes "Repaired" Farm Bill
Yesterday, the Senate passed a new version of the farm
bill conference report (H.R. 6124). This version includes the trade title,
which was omitted from the original version that President Bush vetoed and
was subsequently overridden by both chambers. Congress decided to pass the bill
again with a new bill number rather than take up the trade title separately to
avoid any legal challenges. The House has already passed the new
conference report. The bill now moves to the president, who is expected to veto
the measure again. Both chambers have sufficient votes to override a veto.
Climate Bill Cloture Vote Fails
The Lieberman-Warner climate bill has failed to get the 60 votes necessary for
cloture. It is unlikely the Senate will attempt to bring up the bill
again this Congress.
Senate
Passes Budget Resolution
The Senate adopted the conference report for the FY 2009 budget
resolution. The House is meant to approve it today. The conference
report provides a one-year patch for the alternative minimum tax, makes extensive use of reserve funds for domestic
spending priorities and calls for the extension of some existing tax cuts.
House Passes "Green" School Construction Bill
Yesterday, the House passed H.R. 3021, the "21st
Century Green High-Performing Public Schools Facilities Act." The bill
authorizes $6.4 billion in grants for modernization, renovation and repair of
public schools. It specifies that by 2013, 90% of funds must be used for
certified "green" projects. Funds under this act are allocated to
states and local educational agencies (LEAs) based on
the share of funds they receive under Part A of Title
I of the Elementary and Secondary Education Act. The bill also authorizes $500
million over five years to aid school modernization and renovation of
House Increases Authorization for Health Centers
The House yesterday approved H.R. 1343, to reauthorize federally qualified
health centers under the Public Health Services Act. The Congressional Budget
Office (CBO) estimates the Health Centers Renewal Act would cost $77
million in 2008 and $11.8 billion over 2008-2013 if appropriations were made at
the authorized levels. According to CBO, the bill contains no intergovernmental
mandates and would impose no costs on state, local or tribal governments. The
Senate Health, Education, Labor and Pensions (HELP) Committee approved similar
legislation (S. 901) earlier this year, which is awaiting consideration by the
full Senate. The CBO cost estimate can be found at www.cbo.gov/ftpdocs/93xx/doc9345/hr1343.pdf.
SAFETEA-LU
Corrections Head to White House
H.R. 1195, which makes technical corrections to the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy
for Users (SAFETEA-LU) was sent to the White House yesterday. The president
has 10 days to sign or veto the bill, which was passed by the
House and Senate with veto-proof margins.