Weekly News

FY 2010 APPROPRIATIONS UPDATE

The House has passed four appropriations bills: Commerce-Justice-Science, Homeland Security, Interior-Environment, and Legislative Branch. The Senate has not yet passed any fiscal year (FY) 2010 funding bills, though some have passed at the committee level. To check the status of appropriations bills, legislative language, and reports, go to: http://thomas.loc.gov/home/approp/app10.html.

1) Commerce-Justice-Science
On June 18, 2009, the House passed FY 2010 appropriations for Commerce, Justice, Science, and related agencies. The bill provides $529 million for Byrne/JAG Memorial formula grants, $400 million in funding for the State Criminal Alien Assistance Program (SCAAP), and $200 million for STOP formula grants to combat Violence Against Women.

2) Homeland Security
On June 24, 2009, the House passed the Department of Homeland Security appropriations bill for FY 2010. The bill provides $3.55 billion for state and local programs, including $890 million for the State Homeland Security Grant Program (SHSGP), $887 million for the Urban Area Security Initiative (UASI), $330 million for Emergency Management Performance Grants, $50 million for interoperable emergency communications grants and $50 million for driver's license security grants.

3) Interior-Environment
Last Thursday, the House passed a bill to fund the Interior Department, the Environmental Protection Agency (EPA), the Forest Service, the Smithsonian Institution and other related agencies. The bill provides a 17% increase over FY 2009 (excluding ARRA). It includes a major increase for the EPA's water and sewer infrastructure programs, as well as increases for the National Park Service, the Fish and Wildlife Service and both the National Endowment for the Arts and the National Endowment for the Humanities.

HEALTH AND HUMAN SERVICES

1) HHS Releases State-By-State Health Care Related Information
On Friday, the Department of Health and Human Services (HHS) released state-by-state reports with information on a number of health care issues. Included are data on the percent increase in family premiums since 2000, the amount individuals and families pay as a result of subsidizing care for the uninsured, the percent of state residents without insurance, general quality ratings for health care in each state, and information on preventative measures. The reports are available at: www.HealthReform.gov.

2) CMS Proposes Rule to Streamline Medicaid Section 1915 HCBS Waivers
On June 22, 2009, the Centers for Medicare and Medicaid Services (CMS) published a proposed rule that would amend existing regulations on Medicaid Home and Community-Based Services (HCBS) Waivers. Currently, states must develop separate Section 1915(c) waivers if they wish to serve more than one of the following three populations: the aged or people with disabilities, or both; the mentally retarded or developmentally disabled, or both; and the mentally ill. The CMS proposal would give states the option to combine or eliminate these three permitted waiver target populations, thereby removing a barrier to states that wish to design waivers across various populations. CMS is seeking comments on how streamlining this process could improve a state's ability to design service packages based on need, rather than diagnosis or condition. CMS also requested comments on how this change may affect a state's ability to serve individuals requiring an institutional level of care, and how the change may facilitate compliance with the Americans with Disabilities Act of 1990. Comments are due by August 21, 2009. The Federal Register notice is available at: http://edocket.access.gpo.gov/2009/pdf/E9-14559.pdf.

3) HHS Announces Initiatives to Create ADRCs in Every State
HHS announced a funding opportunity for the expansion of Aging and Disability Resource Center Programs (ADRCs) across the country. This is a collaborative effort of the Administration on Aging (AoA) and CMS, which have jointly funded pilot programs in 45 states and territories. The deadline for submission of a letter of intent is Wednesday, July 1, 2009. Letters should be submitted to Joseph Lugo by e-mail at: joseph.lugo@aoa.hhs.gov.

4) CMS Releases State Health Official Letter on HIV Testing/Screening
On June 24, 2009, CMS released a letter to explain the policies of Medicaid and the Children's Health Insurance Program (CHIP) regarding HIV testing and screening. The letter is available at: http://www.cms.hhs.gov/SMDL/downloads/SHO062409.pdf.

TRANSPORTATION

New Resources to Help Communities Meet Transportation Needs
Thirty-six states were awarded nearly $140 million this week to assist 249 transportation improvement projects. Through the Transportation, Community, and System Preservation (TCSP) Program, states, local, and tribal governments may apply for federal funding to support methods of increasing transportation efficiency, roadway improvements, and research. The TCSP Program is managed by the Federal Highway Administration, in conjunction with the Federal Transit Administration, the Federal Rail Administration and the Research and Innovative Technology Administration within the Department of Transportation and the Environmental Protection Agency. A list of this year's grant recipients is available online at: http://www.fhwa.dot.gov/tcsp/projects.html.

ARRA News

GENERAL - REPORTING REQUIREMENTS

The Office of Management and Budget (OMB) released detailed information on reporting requirements included in Section 1512 of the Recovery Act, in addition to clarification on job creation estimates by recipients. The guidance addresses the mechanics and chronology of recipient reporting; provides clarification on reporting to Recovery.gov and FederalReporting.gov; clarifies the definition and obligations of recipients and sub-recipients; provides a common framework for data quality; and further clarifies job creation estimates by recipients. Included with the guidance are two supplements that model the data flow from recipients to the federal government and provide a complete list of programs subject to Section 1512 reporting. States must file their first recipient reports on October 10, 2009, for all funds received and distributed since February.

The official document, "Implementing Guidance for Reports on Use of Funds Pursuant to the American Recovery and Reinvestment Act of 2009," can be accessed on the OMB website at: www.whitehouse.gov/omb/memoranda_default.

AGRICULTURE

Secretary Vilsack announced $19.88 million in ARRA funding to address safety hazards and environmental damage caused by abandoned mines. The 14 projects are located in national forests in Alaska, Arizona, California, Idaho, Michigan, and Montana. For a list of projects, go to: http://www.usda.gov/wps/portal/arranews?navid=NEWS_AUSUMS&parentnav=USDA_ARRA&edeployment_action=retrievecontent&contentid=2009/06/0221.xml

BROADBAND

On Friday, NTIA released notice that the secretary of Commerce has granted a limited waiver of the Buy American Requirements of ARRA for certain equipment that will be used for the Broadband Technology Opportunities Program (BTOP). Additional information about the limited waiver can be found at: http://www.ntia.doc.gov/frnotices/2009/FR_BuyAmericanWaiver_090626.09.pdf.

EDUCATION

The Department of Education published supplemental guidance on amending an approved application for initial funding under the State Fiscal Stabilization Fund to reflect changes in the levels of state support for education. The guidance can be found at: http://www.ed.gov/programs/statestabilization/guidance-amending.doc.

Weekly News

GENERAL

Pay-Go Legislation Introduced in the House
On June 17, 2009, House Majority Leader Steny Hoyer (D-MD) introduced legislation (H.R. 2920) to put in place pay-as-you-go (pay-go) spending rules. The House proposal is similar to a law (P.L. 101-508) that expired in 2002 and reflects the administrations proposal on pay-go. The bill would require that new tax and mandatory spending legislation that adds to the deficit be fully offset. However, the bill exempts four types of legislation: middle class tax cuts, the estate tax, patching the alternative minimum tax (AMT), and providing higher Medicare payments to physicians. Under the legislation, the Office of Management and Budget would assess the overall cost of tax cuts or new mandatory spending enacted by Congress in each session, scoring each bill by its average annual cost over 10 years. If that ledger is not in balance, across-the-board cuts would be made to federal programs, with some exceptions, to put it back into balance. The Senate uses similar rules. Hoyer has indicated he would like to see the proposal come to the House floor before the August break. The House Budget Committee is scheduled to hold a hearing on the new pay-go legislation June 25, 2009.

AGRICULTURE

House Appropriations Committee Approves Agriculture and Interior/Environment Spending Bills
On June 18, 2009, the House Appropriations Committee approved spending bills for agriculture, interior and environment programs for fiscal year (FY) 2010. The $22.9 billion agriculture spending bill passed by voice vote. Funding for major programs includes: $160.6 million for the Commodities Futures Trading Commission; $1.18 billion for the Environmental Quality Incentives Program; an additional $20 million in discretionary funds for the Rural Energy for America Program; $40 million for watershed rehabilitation; and $50.7 million for resource conservation and development. Funding for the remainder of programs are unchanged from the mandatory spending levels set in the farm bill. In addition, the committee approved an $11 billion spending bill for interior/environment programs. Funding levels include: $1.13 billion for the Bureau of Land Management; $1.64 billion for the Fish and Wildlife Service; and $2.72 billion for the National Park Service. In addition, the bill includes $2.3 billion for the Clean Water State Revolving Loan Fund and $1.2 billion for the Drinking Water Revolving Fund, a substantial increase from FY 2009 levels but less than the amounts included in the president's budget. Appropriators also restored a proposed $107 million decrease in funding to a wildland fire contingency fund, which is tapped when regularly budgeted money for wildfires is exhausted. The bills now move to the House floor; the Interior/Environment Appropriations bill is scheduled for consideration this week, and the Agriculture bill is scheduled for consideration after the July 4 recess.

EDUCATION

U.S. Department of Education Expands its Student Loan Servicing Capacity
http://www.ed.gov/news/pressreleases/2009/06/06172009b.html

Nearly $3.5 Million Awarded in Grants to Improve Education for Indian Children
http://www.ed.gov/news/pressreleases/2009/06/06172009a.html

U.S. Secretary of Education Announces $18.5 Million to Improve School Libraries and Encourage Reading in Low-Income Schools
http://www.ed.gov/news/pressreleases/2009/06/06122009.html

ENVIRONMENT

EPA Issues Clean Energy Guidebook for States
The Environmental Protection Agency (EPA) recently unveiled a guide to help states reduce greenhouse gas emissions and save state money through the adoption of clean energy practices. The Lead by Example guide will help states to reduce their energy use and thereby reduce their overall costs. According to EPA, the guide identifies best practices and state examples of clean energy activities; highlights the benefits and costs of taking action; and identifies issues, strategies and resources for implementing key steps in the development of a comprehensive Lead by Example program. EPA's State Climate and Clean Energy Program created the guide, which can be found at: http://epa.gov/cleanenergy/energy-programs/state-and-local/index.html.

HEALTH AND HUMAN SERVICES

1) HHS Announces FY 2009 CHIP Allotments
On June 19, 2009, the U.S. Department of Health and Human Services (HHS) announced the FY 2009 allotments for the Children's Health Insurance Program (CHIP). The press release and state allocations are available at:
http://www.hhs.gov/news/press/2009pres/06/20090619a.html.

2) Update on Health Reform Legislation

On June 19, 2009, the House Tri-Committee (Energy and Commerce, Ways and Means, Education and Labor) released a comprehensive health reform "discussion draft." The committees have been working together on the single proposal and plan to hold several hearings on the provisions in their respective committees this week. Major provisions of the bill include a proposal to create a public insurance option, expand Medicaid to 133% of the federal poverty level (FPL) for families and individuals by 2013, provide a federal subsidy to individuals between 133 and 400% FPL, require individuals purchase insurance, and require employers provide coverage or pay a tax. The plan also includes a requirement that Medicaid increase payments to primary care physicians to 80% of Medicare rates in 2010, 90% in 2011 and 100% in 2012. The expansion and the reimbursement rate increase would be 100% federally financed. States that have previously expanded eligibility levels for Medicaid and the Children's Health Insurance Program (CHIP) would be required to maintain eligibility levels for individuals above 133% FPL. The plan includes provisions to create a national exchange mechanism but would also include a state option to operate a state-level exchange, which would have to be approved by the secretary of the U.S. Department of Health and Human Services. The draft plan does not provide details on financing and cost estimates. The discussion draft and summaries are available at http://energycommerce.house.gov/index.php?option=com_content&view=article&id=1679:house-democratic-chairmen-to-unveil-discussion-draft-for-health-care-reform&catid=122:media-advisories&Itemid=55.

Last week, the Senate Health, Education, Labor and Pensions (HELP) Committee began its markup of the Affordable Health Choices Act. According to the Congressional Budget Office (CBO), the draft proposal would cost $1 trillion over 10 years and cover an additional 16 million people (http://www.cbo.gov/ftpdocs/103xx/doc10310/06-15-HealthChoicesAct.pdf). However, the HELP Committee bill does not yet include proposals on a public plan option, a possible employer mandate or language dealing with generic biologic drugs. In addition, it does not include a Medicaid expansion.

The Senate Finance Committee also has developed a scaled-down version of its proposal and recently submitted to CBO for scoring. It appears that this version expands Medicaid to cover children and pregnant women at 133% of FPL and phases in coverage for parents and childless adults to 100% FPL. CBO estimated the original proposal submitted by Chairman Baucus would cost $1.5 trillion over 10 years.

HOMELAND SECURITY

1) Homeland Security Appropriations Bill will Appear in Both Chambers
Appropriations work will continue in the House and Senate this week, with both chambers expected to take up the Homeland Security appropriations bill. The Senate plans to take up the bill (S. 1298) under an agreement that allows it to consider the bill before the House does. The House plans work on its $42.6 billion version of the bill (H.R. 2892) also before the end of this week. The House version includes a two-year authorization of the E-Verify program, which allows the government to check workers' legal status. The Senate version follows the administration's request for a three-year authorization of the program. The Senate Appropriations Committee also adopted a managers amendment to the draft measure that would provide more than a 7% increase in discretionary spending over FY 2009, excluding emergency and stimulus funding. Both the House and Senate propose funding at the amount requested in the president's budget for REAL ID and the State Homeland Security Grant Program ($50 million and $950 million, respectively). Unlike the president's $100 million request for Emergency Food and Shelter, the House proposes $200 million and the Senate proposes $175 million.

2) Senators Introduce Legislation to Reform REAL ID
Last week, a bipartisan group of senators introduced legislation to amend the REAL ID Act of 2005 and create a workable solution to enhance the security of driver's licenses and identification cards. Known as PASS ID, the "Providing for Additional Security in States' Identification Act of 2009," (S. 1261) would address key privacy and cost concerns that have led a dozen states to enact legislation prohibiting compliance with REAL ID. The legislation was developed in coordination with the National Governors Association, the National Conference of State Legislatures, the secretary of Homeland Security and other stakeholder groups. The bill has been referred to the Homeland Security and Governmental Affairs Committee, which is expected to consider the legislation before the end of the summer session.

TRANSPORTATION

House Transportation and Infrastructure Committee Releases Surface Transportation Authorization Draft

The chairman of the House Transportation and Infrastructure Committee released his committee's blueprint for a six-year, $450 billion federal surface transportation authorization bill, the Surface Transportation Assistance Act of 2009 (STAA). The current authorization of federal surface transportation programs expires on September 30, 2009. Highlights from the STAAs blueprint include consolidating or terminating more than 75 existing federal programs; collapsing highway and transit funding into four core formula categories; establishing a freight improvement program; authorizing a National Infrastructure Bank; and establishing new initiatives for congestion mitigation. For states, in particular, the STAA blueprint proposes federally determined performance measures and reporting requirements for certain highway and transit programs, a new Office of Public Benefit with responsibility for tolls and public-private partnerships, a new metropolitan mobility and access program, penalties for states that do not enact or enforce seatbelt laws or DWI/ignition interlock requirements, and a new Office of Livability responsible for advancing alternative modes of transportation and improving livability and sustainability in communities. The STAA and supporting documents can be found on the House T&I website at: http://transportation.house.gov/Default.aspx. The Senate is expected to proceed with an 18-month authorization extension.

ARRA News

GENERAL

On June 22, 2009, the Office of Management and Budget (OMB) released detailed information on reporting requirements included in Section 1512 of the ARRA, in addition to clarification on job creation estimates by recipients. The official document, "Implementing Guidance for Reports on Use of Funds Pursuant to the American Recovery and Reinvestment Act of 2009," can be accessed on the OMB website at http://www.whitehouse.gov/omb/memoranda_default/. The guidance addresses the mechanics and chronology of recipient reporting; provides clarification on reporting to Recovery.gov and FederalReporting.gov; clarifies the definition and obligations of recipient and sub-recipient; provides a common framework for data quality; and further clarifies job creation estimates by recipients. Included with the guidance are two supplements that model the data flow from recipients to the federal government and provide a complete list of programs subject to Section 1512 reporting. States must file their first recipient reports on October 10, 2009, for all funds received and distributed since February 2009.

AGRICULTURE


The Department of Agriculture announced $176 million in ARRA funding to upgrade laboratory buildings and improve research capacity. The projects are located in 29 states, a list of which can be found at:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/06/0215.xml.

EDUCATION

The Department of Education will use $350 million of the ARRA Race to the Top funds to assist states develop rigorous assessments linked to common standards. In addition, the department provided estimated time frames for the release of Race to the Top funds:
Late July 2009 - The department will publish a notice of proposed rulemaking in the Federal Register, inviting public comment for 30 days on the proposed grant application and the criteria for evaluating them.
October 2009 - Notice inviting applications will be published in Federal Register.
December 2009 - Phase 1 applications will be due.
March 2010 - Phase 1 grants awarded, winners announced.
June 2010 - Phase 2 applications will be due.
September 2010 - Phase 2 grants awarded, winners announced.

For more information, see: http://www.ed.gov/news/pressreleases/2009/06/06152009a.html

ENERGY

The Department of Energy has announced $60 million to conduct resource assessments and analysis of future demand for electricity transmission as well as to facilitate the development of interconnection-wide transmission plans in all three interconnections. It is expected that consortia of all states within an interconnection would jointly apply for these grants. Grant applications are due August 14, 2009.

To view the Funding Opportunity Announcement, search for reference number DE-FOA-0000068 at the following website: https://www.fedconnect.net/Fedconnect/

HEALTH AND HUMAN SERVICES

1) On June 16, 2009, the Office of the National Coordinator for Health Information Technology released the preliminary definition of meaningful use of electronic health records (EHRs). ARRA included incentive payments for eligible Medicare and Medicaid providers to increase the adoption of EHRs. To receive the incentive payments, providers must demonstrate "meaningful use" of a certified EHR. The public comment period on the preliminary definition of meaningful use is open through close of business Friday, June 26, 2009. Instructions on how to submit public comment can be found at: http://healthit.hhs.gov. Additional information on the Health Information Technology component of ARRA, including a fact sheet and question and answer document is available at: http://www.cms.hhs.gov/Recovery/11_HealthIT.asp#TopOfPage.

2) On June 17, 2009, the Centers for Medicare and Medicaid Services (CMS) released a State Medicaid Director letter to provide guidance on the implementation of the ARRA. It summarizes the sections of ARRA that impact Medicaid and CHIP and provides detail on the sections specific to payments that should not be counted for purposes of determining eligibility. Below is a link to the letter and its attachments:
http://www.cms.hhs.gov/SMDL/downloads/SMD061709.pdf
http://www.cms.hhs.gov/SMDL/downloads/SMD061709att.pdf

HOUSING

1) On June 9, 2009, the Department of Housing and Urban Development (HUD) posted a Notice of Corrections to an earlier Notice of Allocations, Applications, Application Procedures, and Requirements for the Homeless Prevention and Rapid Re-Housing Program under ARRA. The Notice of Corrections provides a corrected time line for HUD's review of HPRP Substantial Amendments; provides authority for grantees to request waivers of certain provisions of the HPRP Notice, and HUD to process those requests; clarifies that the District of Columbia is classified as a Metropolitan City; provides a correction stating that housing relocation and stabilization services may only be provided to any program participant for up to 18 months; extends the time frame in which eligible pre-award costs may be incurred; and allows for a 90-day grant close-out period for reimbursement of eligible costs incurred within the 3-year grant period. The Notice of Corrections can be found at: http://www.hudhre.info/index.cfm?do=viewWhatIsNew#wn65

2) HUD published a correction to the May 4, 2009, Notice of Funding Availability (NOFA) for the Neighborhood Stabilization Program under ARRA (NSP 2). HUD also updated its list of Frequently Asked Questions (FAQ) for NSP 2. The NOFA correction and updated FAQ can be seen at: http://portal.hud.gov/portal/page?_pageid=153,7973319&_dad=portal&_schema=PORTAL

TRANSPORTATION

1) On June 17, 2009, the Department of Transportation (DOT) published a revised notice of funding availability (NOFA) for the $1.5 billion TIGER Discretionary Grant program funded by ARRA. The program awards funds to state and local governments that submit applications for capital investments in surface transportation infrastructure, including highway or bridge projects, public transportation projects, passenger and freight rail projects and port infrastructure investments. The revised NOFA provides additional guidance on the economic competitiveness criterion and the required cost-benefit analysis, clarifies several definitions and removes certification requirements among other administrative changes. Grant applications are due by September 15, 2009.

The Federal Register notice is available at: http://edocket.access.gpo.gov/2009/pdf/E9-14262.pdf

Additional program information can be found at: http://www.dot.gov/recovery/ost/

2) DOT published its High Speed Intercity Passenger Rail Program interim program guidance for states and regions to apply for federal funds for high speed rail as part of ARRA. The guidance provides the application requirements and procedures to guide eligible applicants in seeking funding for high-speed and intercity passenger rail. To view the guidance, click the following link: http://www.fra.dot.gov/us/content/2243.

Weekly News

HEALTH AND HUMAN SERVICES

1)
Senate Committee Holds Roundtable on Draft Health Reform Proposal
The Senate Health, Education, Labor and Pensions (HELP) Committee convened the first of two roundtables to discuss health reform options and draft legislation. The proposals include requiring every individual (except those who cannot afford it) to obtain health insurance, changes to health insurance rating rules, and the creation of health exchanges to purchase insurance. Discussions also included the impact of a mandatory Medicaid expansion, and how to pay for health reforms. A copy of the bill is available at: http://help.senate.gov/BAI09A84_xml.pdf

2) Administration Proposes Additional Health Care Savings
On June 13, 2009, the administration announced six proposals intended to reduce health care costs by $313 billion over 10 years. The proposals include limiting the growth of Medicare fee-for-service payments by applying productivity adjustments into Medicare payment updates ($110 billion in savings), reducing disproportionate share hospital (DSH) payments ($106 billion, phased-in beginning in FY 2013), reducing payments to pharmaceutical companies ($75 billion), adjusting payment rates for physician imaging services, adopting MedPAC's recommendations for payments to skilled nursing facilities, inpatient rehabilitation facilities, and long-term care hospitals, and cutting waste, fraud, and abuse. These proposals are in addition to those included in the president's FY 2010 budget, which are estimated to generate $635 billion in savings. The administration's fact sheet about the proposals can be accessed at: http://www.whitehouse.gov/MedicareFactSheetFinal/

JUSTICE

1) Department of Justice (DOJ) Releases Solicitations for FY 2009 JAG Funds
DOJ has released the Edward Byrne Memorial Justice Assistance Grant (JAG) Program FY 2009 state and local solicitations. State applications are due June 25, 2009, and local applications are due July 9, 2009. Note: these are the annual JAG solicitations, which are separate from ARRA JAG solicitations. State and local JAG allocations can be found at this link: http://www.ojp.usdoj.gov/BJA/grant/jag.html

2) The Office for Victims of Crime (OVC) has Released FY 2009 State Allocations
State allocations for FY 2009 Crime Victims Fund Compensation and Assistance can be found at this link: http://www.ojp.usdoj.gov/ovc/fund/cvfa2009.html

ARRA News

AGRICULTURE

The Department of Agriculture announced 30 ARRA projects, funded at $57 million: $49 million for wood-to-energy grants and $8 million for biomass utilization projects. The projects are located in 14 states, a list of which can be found at:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/06/0206.xml

HEALTH AND HUMAN SERVICES

1) The Administration for Children and Families (ACF) released an Information Memorandum that provides guidance on the flexibility within the Child Care Development Block Grant (CCDBG). The guidance is intended to be a reference tool for states in implementing the additional funding under ARRA and developing their Child Care Development Fund plans. http://www.acf.hhs.gov/programs/ccb/law/guidance/current/im2009-01/im2009-01.htm
 
HOUSING

1) The Department of Housing and Urban Development (HUD) has posted a revised notice of financial assistance (NOFA) for the FY 2009 Lead-Based Paint Hazard Control Grant Program and Lead Hazard Reduction Demonstration Grant Program. HUD inadvertently omitted a number of jurisdictions that are eligible for the FY 2009 program from Appendix A. The revised Appendix A is available at: http://www.hud.gov/offices/lead/09NOFA/leadcombo.cfm

In addition, the deadline for submitting waiver requests to reduce the statutory match amount from 25% to 10% is being extended from June 10, 2009 to June 23, 2009. The period for HUD to review requests is extended from June 22, 2009, to June 30, 2009. The deadline for receipt of applications in HUD headquarters remains 5:00 PM eastern time July 20, 2009.

2) HUD has also revised a May 7, 2009 NOFA for ARRA Capital Fund Recovery Competition (CFRC) Grants. The revised NOFA corrects, changes and clarifies a number of criteria established in the initial document. The revised NOFA can be found at: http://www.hud.gov/offices/pih/programs/ph/capfund/ocir.cfm

JUSTICE

The deadline for local applications for ARRA Edward Byrne Memorial Justice Assistance Grant (JAG) formula grant funds has been extended to 8:00 p.m. (EST) on June 17, 2009. Because this is a non-competitive formula grant program, the extension of this deadline does not affect either eligibility or funding determinations. For more information on Justice Assistance Grant (JAG) Program funding under ARRA, please visit: www.ojp.usdoj.gov/BJA/recoveryJAG/recoveryjag.html

LABOR

1) The Department of Labor (DOL) released a change to Training and Employment Guidance Letter No. 09-08, revising guidelines for negotiating Workforce Investment Act (WIA) Title 1B performance goals and Wagner-Peyser Act performance levels. The guidance can be found at: http://wdr.doleta.gov/directives/corr_doc.cfm?docn=2770

2) DOL released a change to Training and Employment Guidance Letter No. 04-08, explaining a supplemental Trade Adjustment Assistance (TAA) distribution to states and the formula methodology to be used in distribution.  It also describes the process for states to request additional TAA program reserve funds for training: http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2772

TRANSPORTATION

The House Transportation and Infrastructure Committee has issued supplemental guidance regarding its transparency and accountability reporting effort for direct recipients of ARRA formula funds. The committee requests that recipients submit updated reports by June 15, 2009, and July 15, 2009. (Data in these reports should reflect what has occurred as of May 31, 2009, and June 30, 2009, respectively.)

To view the supplemental guidance go to:  http://transportation.house.gov/Media/file/ARRA/TI Guidance June 4 2009.pdf



For more information, visit the T&I website: http://transportation.house.gov/singlepages/singlepages.aspx?NewsID=852 

TREASURY

The Treasury Department has announced the availability of $25 billion for the Recovery Zone Bonds program. The press release and state allocations can be found at: http://www.treas.gov/press/releases/tg168.htm

Weekly News

HEALTH AND HUMAN SERVICES

1)
OIG Releases Report on Unimplemented Recommendations
The OIG released a report that provides a comprehensive list of unimplemented recommendations from its audits and evaluations, including those of states. The recommendations cover areas such as Medicaid (excessive DSH payments and limits on UPL), federal grant compliance, increased federal/state oversight, and improving foster care recruitment. The full report is available at http://www.oig.hhs.gov/publications/docs/compendium/compendium2009.pdf.

2) Children's Bureau Provides Additional Guidance on Guardianship Program
The Children's Bureau recently updated its Child Welfare Policy Manual to reflect additional guidance on the Title IV-E Guardianship Program. The new information relates to payments and eligibility and can be found at
http://www.acf.hhs.gov/j2ee/programs/cb/laws_policies/laws/cwpm/updates_add.jsp.

3) New TANF Guidance on the Job Access and Reverse Commute Program (JARC)
A new Policy Instruction from the Administration for Children and Families (ACF) clarifies the use of federal TANF funds to help meet the cost sharing requirement under the Department of Transportation's JARC formula grant program. The guidance is available at http://www.acf.hhs.gov/programs/ofa/policy/pi-ofa/2009/200904/pi200409.pdf.

4) Child Support Announces Fee Reductions for States
The Office of Child Support Enforcement announced a reduction in FY 2009 user fees for the Federal Parent Locator Service (FPLS). This reduction is a result of changes in federal spending needs and the addition of new users. Each state's IV-D Director received a summary of the revised FY 2009 fee. The Dear Colleague Letter can be accessed at http://www.acf.hhs.gov/programs/cse/pol/DCL/2009/dcl-09-16.htm.

5) HHS Announces Funding Availability for Lifespan Respite Care Programs

HHS announced the release of $2.5 million for states to expand and enhance respite care services to family members. Approximately 10 - 15 states will receive up to $200,000 for a three-year period. These projects cover all types of respite recipients, including family members, foster parents, or other adults. A letter of intent for the application is due June 19, 2009. The application is available at http://www.aoa.gov/AoARoot/Grants/Funding/index.aspx.

JUSTICE

1) House Appropriations Markup Includes Funds for the State Criminal Alien Assistance Program (SCAAP)
The House Appropriations Subcommittee held a mark-up of the Commerce/Justice Appropriations bill. The bill includes $300 million for SCAAP despite the proposed elimination of the program in the FY 2010 president's budget. The program was funded at $400 million in FY 2009.

2) Justice Department Approves One-Year Extension for Sex Offender Registry Requirements

Attorney General Eric Holder has approved a one-year extension for all states to comply with the Sex Offender Registration and Notification Act (SORNA) provisions of the Adam Walsh Child Protection and Safety Act. All jurisdictions now have until July 27, 2010, to achieve substantial compliance with SORNA's requirements for registering and monitoring sex offenders. In addition, states may request another one-year extension.

ARRA News

AGRICULTURE

1) Agriculture Secretary Vilsack announced projects funded by ARRA for roads maintenance and decommissioning and associated watershed restoration. The 106 projects, funded at more than $228 million, are located on Forest Service land in 31 states. For a list of funding by state:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/06/0194.xml

2) USDA will provide nearly $42.3 million in additional funding to 14 states for watershed projects. A list of funding by state:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/06/0190.xml

3) Notice of Funds Availability (NOFA) to announce funding for the 2008 Aquaculture Grant Program under ARRA:
http://edocket.access.gpo.gov/2009/E9-12816.htm

4) Request for application to implement WIC state agency model (SAM), which includes equipment purchase. Applicants must have completed Feasibility Study/Alternatives Analysis and have approved Implementation Advance Planning Document (IAPD). The application is due June 26, 2009:
http://www.fns.usda.gov/fns/recovery/recovery-wic.htm

5) Request for application for WIC misc. technology grants to enhance/update MIS, implement food package changes and achieve EBT readiness; conduct MIS planning; fund PAPDs; and conduct other MIS projects. Applicants must have received FNS approval of APD documents, if appropriate. Applications are due June 26, 2009. http://www.fns.usda.gov/fns/recovery/recovery-wic.htm

EDUCATION

Letter from Secretary of Education Duncan to chief state school officers regarding the authorization of Qualified School Construction Bonds (QSCBs) and Build America Bonds (BABs), and the extension of Qualified Zone Academy Bonds (QZABs). http://www.ed.gov/policy/gen/guid/secletter/090529.html

HEALTH

HHS announced the availability of $200 million in ARRA funds to support student loan repayments for primary care medical, dental, and mental health clinicians who want to work at National Health Service Corps (NHSC) sites. In exchange for the loan repayments, clinicians serve for two years with the Corps. Primary care practitioners interested in applying for loan repayments should visit http://nhsc.hrsa.gov. To see a list of opportunities available by state, go to http://www.hhs.gov/recovery/programs/nhsc/vacancies.html.

LABOR

The Employment and Training Administration (ETA) at the Department of Labor (DOL) requires all states to submit a WIA and Wagner-Peyser (Employment Service) State Plan modification describing strategies to respond to the economic downturn and implement the Recovery Act by June 30, 2009. This June 30, 2009 submission will cover the period of July 1, 2009 through June 30, 2010. ETA reviews and approves plans within 90 days of receipt of the plan. All state plans can be accessed at: http://www.doleta.gov/USWORKFORCE/WIA/planstatus.cfm

Weekly News

GENERAL ADMINISTRATION

1) Administration Releases Memo on Federalism
President Obama issued a memorandum to executive departments and agencies outlining his administration's policy on federalism. The memo calls for the preemption of state law by federal agencies “only with full consideration of the legitimate prerogatives of the states and with sufficient legal basis for preemption. In addition, the document provides guidance on how and when agencies and departments may include statements of preemption. Specifically, it limits regulatory statements regarding preemption and requires heads of departments and agencies to review regulations issued within the past 10 years that contain statements preempting state law. The memorandum is available at http://www.whitehouse.gov/the_press_office/Presidential-Memorandum-Regarding-Preemption/.

2) White House Recommends State and Local Governments Designate Cybersecurity Leaders
On May 29, 2009, President Obama announced the results of a 60-day comprehensive review of U.S. cybersecurity policies. The results of the study include a recommendation that state, local and tribal governments consider the need to elevate cybersecurity by designating a single leader to ensure coordination between chief information officers, chief information security officers, and state homeland security advisors. See the following link for more information:
http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-on-Securing-Our-Nations-Cyber-Infrastructure.

HEALTH

1) Senate Finance Committee Outlines Policy Options for Financing Health Care Reform
The Senate Finance Committee released the final in a series of three policy options documents. The document focuses on additional policies to finance health reform proposals. The text of the financing options is available at:
http://www.finance.senate.gov/sitepages/leg/LEG 2009/051809 Health Care Description of Policy Options.pdf.

An earlier policy options document includes options for health insurance market reforms. It also includes three potential policies for a public health insurance option. In addition, the policy options propose three possible ways to standardize Medicaid eligibility for all parents, children and pregnant women below 150% of the Federal Poverty Level (FPL). The policy options also call for all other individuals at or below 115% of the FPL to receive a subsidy to purchase health care coverage. Several other changes to the Medicaid program are proposed, including policies to simplify and streamline enrollment and retention in the program, expand access to home and community-based services and create an automatic counter-cyclical stabilizer to sustain the program during economic downturns. Note that the FMAP formula proposed in the paper (pp. 29-30) is problematical and undergoing revision. http://www.finance.senate.gov/sitepages/leg/LEG 2009/051109 Health Care Description of Policy Options.pdf  

2) Community Health Centers Receive Additional Funds
On May 28, 2009, the Department of Health and Human Services (HHS) announced the release of $81.7 million in FY 2009 non-ARRA funds to expand services provided by Community Health Centers. Of the total, $25.6 million is to expand medical capacity at 54 existing health centers. The remaining $56.1 million will supplement all health centers' base grant awards to offset rising costs associated with maintaining current service levels.

A listing of grants can be found at: http://www.hhs.gov/news/press/2009pres/05/20090528a.html.  

In FY 2009, the Community Health Center program received an increase of $125 million over the FY 2008 appropriation level of $2.065 billion. Of that amount, $56.1 million was set-aside for the base adjustment. The remaining increase is for expanded medical capacity grants and service expansion grants. The FY 2010 president's budget proposes to fund the program at the FY 2009 level.  

3) HHS Announces Availability of $75 million to States to Expand Health Insurance Coverage
On May 20, 2009, HHS announced the availability of $75 million to help states expand health insurance access. Grants will be made in two categories. Target grants of $2 million to $4 million will be awarded to states with plans to target specific groups of uninsured. Comprehensive grants of $7 million to $10 million will be awarded to states for extensive insurance coverage initiatives. Below is a link to the application: http://www.hrsa.gov/statehealthaccess/.  

The deadline is June 15, 2009. The grants will be made over a five year period and require a 20% match unless a state demonstrates a financial hardship. Additionally, the application must have the support of the state's governor, and the state must demonstrate their ability to sustain the program after the five-year period.  

This program was authorized and funded by the FY 2009 Omnibus Appropriations bill. The president's budget requests $75 million for this program in FY 2010. 

4) CMS State Health Official Letter Provides Guidance on New CHIP Option
The Centers for Medicare and Medicaid Services (CMS) released a State Health Official letter on May 11, 2009, that provides additional information on a provision contained in the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA, P.L. 111-3). Specifically, the new law gives states the option of providing necessary prenatal, delivery, and postpartum care to low-income uninsured pregnant women through an amendment to its State Child Health Plan.  The letter provides information on the new option and guidance on amending the state plan. The letter is available at: http://www.cms.hhs.gov/SMDL/downloads/SHO051109.pdf 

5) HHS, DOJ Announce Joint Health Care Fraud Initiative
Attorney General Eric Holder and HHS Secretary Kathleen Sebelius yesterday announced the creation of a new interagency effort, the Health Care Fraud Prevention and Enforcement Action Team (HEAT), to combat Medicare fraud. They also announced the expansion of the Medicare Fraud Strike Force team operations to Detroit and Houston. The HEAT team will include senior officials from the Department of Justice (DOJ) and HHS who will build on existing programs to combat fraud. The effort also involves investing new resources and technology to prevent fraud, waste and abuse before it happens. In addition, there is a new web site, www.hhs.gov/stopmedicarefraud and tip line, 800-HHS-TIPS, to report suspected Medicare fraud. More information is available at: http://www.hhs.gov/news/press/2009pres/05/20090520a.html 

ENVIRONMENT

EPA Published New Allocation Percentages for the Drinking Water State Revolving Fund

On May 28, 2009, the Environmental Protection Agency (EPA) published in the Federal Register the revised Drinking Water State Revolving Fund (DWSRF) allotments that reflect the results from EPA's most recent Drinking Water Infrastructure Needs Survey and Assessment. The revised state allotment percentages will be the basis for distributing the DWSRF program appropriations to the states for the next four years (FY 2010 - FY 2013). The notice also includes state dollar allocations based on the $1.5 billion funding level contained in the president's FY 2010 budget. The allotments can be found at: http://edocket.access.gpo.gov/2009/pdf/E9-12470.pdf 

HUMAN SERVICES

HHS Publishes Interim Final Rule Lifting Restriction on TANF Carryover Funds
The Administration for Children and Families at HHS published an interim final rule to allow states, tribes and territories to use Temporary Assistance for Needy Families (TANF) program funds carried over from a prior year for any allowable TANF benefit, service or activity. Previously, these funds could be used only to provide basic cash assistance. Effective immediately, this rule applies to states, local governments, and tribes that administer the TANF program and is in accordance with a statutory change to section 404 (e) of the Social Security Act (42 U.S.C. 604 (e)) as enacted in the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5). Comments on the interim final rule are due on or before July 27, 2009. See the following link for more information: http://edocket.access.gpo.gov/2009/pdf/E9-12187.pdf

TRANSPORTATION

House Approves FAA Reauthorization Bill

On May 21, 2009, the House approved the Federal Aviation Administration (FAA) Reauthorization Bill (H.R. 915). The bill provides $53.5 billion for FAA capital programs from FY 2010 to FY 2012 including $12.3 billion for the Airport Improvement Program (AIP), $10.1 billion for FAA Facilities & Equipment, $30.3 billion for FAA Operations, and $794 million for Research, Engineering, and Development. This bill would increase funding for the AIP from roughly $3.5 billion for FY 2008 and FY 2009 to about $4.1 billion per year from FY 2010 - FY 2012. The bill would amend the program to increase passenger facility charges that can be imposed by an eligible agency to finance eligible airport-related projects. The bill also provides funds to accelerate the implementation of Next Generation Air Transportation System to enable the FAA to make needed repairs and replacements of existing facilities and equipment, and provide for the implementation of high priority safety related systems.  

For more information on H.R. 915 see: http://transportation.house.gov/News/PRArticle.aspx?NewsID=926

.    

More information can be found at: http://www.faa.gov/airports_airtraffic/airports/aip/.

ARRA News

GENERAL ADMINISTRATION

The Office of Management and Budget (OMB) issued its compliance supplement to assist auditors in performing required audits.  For the first time, the supplement addressed the treatment of funds under ARRA.  OMB notes, however, that additional guidance is required to cover issues unique to ARRA funds.  OMB is expected to release additional guidance regarding audits of ARRA funds in late June.  The OMB supplement is available at http://www.whitehouse.gov/omb/circulars_a133_compliance_09toc/  

AGRICULTURE

1) Agriculture Secretary Vilsack announced the selection of nearly $143 million in water and environmental projects that are being funded through ARRA. The projects will help provide safe drinking water and improved wastewater treatment systems for rural towns and communities in 21 states through Rural Development's Water and Environmental Program.
 
Project list for water and wastewater funding: http://www.usda.gov/documents/ARRA_Water_Funding.pdf
 
2) Secretary Vilsack announced the selection of nearly $56.6 million in essential community facilities and emergency responder projects that are being funded through ARRA. The 267 projects will help communities in 39 states. All of the funding is being provided through USDA Rural Development's Community Facilities program, which helps finance and develop essential community facilities for public use in rural areas. These facilities include childcare centers, hospitals, medical clinics, assisted living facilities, fire and rescue stations, police stations, community centers, public buildings and transportation. These funds are available to public bodies, non-profit organizations, and recognized Indian tribes. For a list of funding by state:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/05/0172.xml
 
3) Secretary Vilsack announced projects funded by ARRA for invasive species projects. In total, there are 19 projects, funded at more than $38 million, in 14 states. For a list of funding by state:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/05/0167.xml
 
4) Secretary Vilsack announced $224 million for 110 hazardous fuels reduction and ecosystem improvement projects funded by ARRA. The projects are located on forested lands in more than 26 states and territories. Hazardous fuels activities include reducing the volume of hazardous fuels on federal forests and grasslands and on lands owned by states, local governments, private organizations, and individual land owners through financial assistance and partnership agreements. Ecosystem improvement activities, which are designed to improve and protect forest health, include thinning, removal of competing vegetation, planting native species, and constructing new stream channels and ponds. For a listing of the hazardous fuels and ecosystem restoration projects, go to:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/05/0147.xml  

EDUCATION

The Department of Education has issued a notice inviting applications for grants under the Teacher Quality Partnership Grants Program, which received $100 million under the ARRA. For more information, view the following notice from the Federal Register:
http://edocket.access.gpo.gov/2009/E9-12180.htm  

ENERGY

President Obama announced more than $467 million from ARRA to expand and accelerate the development, deployment, and use of geothermal and solar energy throughout the United States. The funding announced today will help the solar and geothermal industries overcome technical barriers, demonstrate new technologies, and provide support for clean energy jobs. http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=173  

MEDICAID/FMAP

An Office of Inspector General (OIG) report released on May 22, 2009, found that the HHS Office of the Assistant Secretary for Planning and Evaluation (ASPE) correctly calculated the temporary FMAP increases for the first and second quarters of FY 2009. As such, the report contains no recommendations. The complete report can be found at: http://oig.hhs.gov/oas/reports/region9/90900075.pdf  

HOMELAND SECURITY

On May 29, 2009, the U.S. Department of Homeland Security (DHS) released application guidance for more than $500 million in Federal Emergency Management Agency (FEMA) preparedness grants funded by ARRA. The guidance includes $150 million for the Port Security Grant Program (grant application due June 29, 2009), $150 million for the Transit Security Grant Program (grant applications due June 15, 2009 for the operational package and June 29, 2009 for capital projects), and $210 million for the Fire Station Construction Grant Program (grant application due July 10, 2009). The guidance and applications can be found at: http://www.fema.gov/government/grant/arra/index.shtm  

NUTRITION

1) Link below to guidance on Employment and Training Certification for SNAP:
http://www.fns.usda.gov/snap/rules/Memo/2009/052109.pdf  

2) Link below to the Emergency Assistance Food Program (TEFAP) reporting requirements under ARRA:
http://www.fns.usda.gov/fdd/programs/tefap/TEFAP-ARRAreportingGuidance.pdf

TRANSPORTATION

1) The Federal Aviation Administration (FAA) recently updated a table that shows FY 2009 funds for discretionary airport grants. ARRA included $1.1 billion for airport-related purposes, with priority given to projects that can be awarded by June 17, 2009, and completed by February 16, 2011. As of May 22, 2009, $1.084 billion in funds have been released.  Amounts by state and by project can be found on the tab labeled FY 2009 Cumulative Approved ARRA Grants at: http://www.faa.gov/recovery/programs/       

2) The Federal Highway Administration (FHA) maintains a Question and Answer document that covers ARRA-related issues raised by state Departments of Transportation (DOTs). The document was last updated on May 20, 2009, and includes additional questions related to collecting and estimating jobs under ARRA. The document is available at: http://www.fhwa.dot.gov/economicrecovery/qandas.htm  

TREASURY

On May 27, 2009, Treasury Secretary Tim Geithner announced $1.5 billion in New Markets Tax Credit (NMTC) awards for 32 organizations throughout the country. The 32 organizations receiving awards have identified principal service areas covering 33 states, the District of Columbia, and Puerto Rico. The NMTC program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). The following link lists the organizations selected for awards and additional information on the NMTC program: http://www.cdfifund.gov/