House Passes Internet Tax Moratorium

The House passed a seven-year extension of the Internet Tax Freedom Act. The bill now heads to the president for his signature. 

Senate Passes Amtrak Bill

The Senate passed the Passenger Rail Investment and Improvement Act (S. 294). The bill reauthorizes Amtrak for six years and authorizes $11.4 billion in funding, including $1.4 billion for a new state grant program under which the secretary of Transportation can authorize grants to states or groups of states to assist in financing the capital costs of facilities and equipment for intercity passenger rail transportation.


Conference on Labor-HHS Spending Bill Set

House and Senate conferees are scheduled to discuss FY 2008 appropriations for the departments of Labor, Health and Human Services, and Education (Labor-HHS). Leaders have not yet decided whether to consider the bill on its own or combine it with other appropriations measures. The president has threatened to veto the bill because it exceeds his budget request.

FY 2008 Justice Grant Availability Announced

The Department of Justice is seeking applicants for grants under its Residential Substance Abuse Treatment (RSAT) for State Prisoners Program. States and territories are eligible for this formula grant program, which assists state and local governments in developing and implementing residential substance abuse treatment programs in correctional and detention facilities. To download the RSAT announcement, go to www.ojp.usdoj.gov/BJA/grant/08RSATsol.pdf. For technical assistance and information, contact Michael Austin at 202-305-7441 or michael.austin3@usdoj.gov.

House to Consider Internet Tax Moratorium

The House is scheduled to take up H.R. 3678, the "Internet Tax Freedom Act Amendments Act of 2007," today. Last Thursday, the Senate amended the bill to extend the moratorium for seven years. The Senate bill also modifies definitions and moves the starting date for the prohibition of state and local taxation of backbone telecommunications services. The House is expected to pass the bill and send it to the president. The current moratorium expires Thursday, November 1.


Senate Adopts Internet Tax Moratorium

Yesterday, the Senate agreed to a seven-year extension of the Internet access tax moratorium. The bill is similar to the four-year House measure that passed last week. 

House Passes New SCHIP Bill

Yesterday, the House approved a modified version of legislation to reauthorize the State Children's Health Insurance Program (SCHIP). H.R. 3963 resembles the previous bill vetoed by the president. Changes address income eligibility, citizenship and substituting private for public coverage. The Senate is expected to consider the bill next week. A Statement of Administration Policy states that the president would veto H.R. 3963.

Senate Committee Approves Farm Bill

Yesterday, the Senate Committee on Agriculture, Nutrition and Forestry passed its version of the Food and Energy Security Act. Agriculture Committee Chairman Harkin  expects the bill to be on the Senate floor next week.

FY 2008 LIHEAP Funds Announced

The Department of Health and Human Services has announced the availability of FY 2008 first quarter funds for the Low-Income Home Energy Assistance Program (LIHEAP) under the current continuing resolution (CR). Upon completion of FY 2008 LIHEAP plans, all states will receive allocations based on their full first quarter requests for FY 2008, not to exceed 75%. The allocations are based on the FY 2007 LIHEAP block grant funding level of $1.98 billion. A chart showing state allocations under the CR is attached. 


House Vote on SCHIP Scheduled

House leaders have scheduled a vote today on a modified version of the SCHIP reauthorization that the president vetoed earlier this month (H.R. 3963). The bill has been modified to address concerns around income eligibility levels, immigrants and the time-line to phase out SCHIP coverage for childless adults.

House Committee Approves TAA Reauthorization

Yesterday, the House Ways and Means Committee adopted H.R. 3920, reauthorizing Trade Adjustment Assistance (TAA) until 2012. The bill also would extend TAA benefits to service workers, modify certain health insurance benefits and provide financial incentives for states to reform unemployment insurance. The Senate Finance Committee is preparing to mark up its TAA reauthorization (S.1848). The short-term extension for TAA (P.L. 110-89) expires at the end of the year.


Senate Passes Labor-HHS-Education Spending Bill

The Senate has approved its FY 2008 Labor-Health and Human Services-Education (Labor-HHS) appropriations bill, H.R. 3043. The legislation includes a 5% increase in discretionary spending over FY 2007. It is $9.6 billion more than the president's budget request but $1.9 billion less than the House-passed version, which was approved in July.

House and Senate leaders hope to send a compromise bill to President Bush in early November.

House Extends Higher Education Act for Six Months

On Tuesday, the House agreed to a six-month extension of the Higher Education Act (H.R. 3927). This is the third extension of the act this year. The program is now set to expire April 30, 2008. The Senate passed a reauthorization bill in July, but the House has not done so.


House Passes Internet Tax Moratorium

Yesterday, the House passed H.R. 3678, the Internet Tax Freedom Amendments Act of 2007. The bill would extend the Internet access tax moratorium for four years, update the definition of Internet access and retain current grandfather protections. 

Senate Passes Justice Appropriations Bill

The Senate passed its FY 2008 Commerce-Justice-Science appropriations bill, H.R. 3093. The measure provides about $1.5 billion more than FY 2007 and $2.1 billion more than the president's request for the Department of Justice. State and local law enforcement programs would receive $660 million for Justice Assistance Grants (60% for the Edward Byrne State block grant program and 40% for the Local Law Enforcement Block Grant program); $660 million for COPS; $340 million for juvenile justice ($80 million for juvenile justice state formula grants); $375 million for the State Criminal Alien Assistance Program; $40 million for drug courts and $400 million for Violence Against Women Act programs ($185.5 million for STOP grants). The president has threatened to veto the bill. 

Another House Committee Approves Mental Health Parity Bill

The House Energy and Commerce Committee approved  the Paul Wellstone Mental Health and Addiction Equity Act (H.R. 1424). The bill already has been approved by both the House Education and Labor Committee and the House Ways and Means Committee. See FFIS Issue Brief 07-47 for more information.


Medicare Part D Clawback Multipliers Announced 

On Friday October 15, the Centers for Medicare and Medicaid Services sent a notice to each state concerning its individual calendar year 2008 clawback multiplier. Each state's multiplier will be reduced 0.23% from its October-December 2007 rate to reflect updated 2003-2006 National Health Expenditures data and the 2006-2007 growth.


The House Stays Busy

Affordable Housing. Yesterday, the House voted to establish an affordable housing trust fund to finance construction, renovation and maintenance of 1.5 million affordable housing units over 10 years. H.R. 2895 authorizes creation of the trust fund and complements previous passage of two bills that would finance it. It would authorize up to $1 billion per year, with states receiving 40% and localities 60%. No companion bill has been introduced in the Senate.

Internet Access Tax Moratorium. Yesterday, the House Judiciary Committee approved a four-year extension of the Internet Tax Freedom Act that prohibits state and local governments from taxing Internet access. The bill extends the moratorium through November 1, 2011. 

Mental Health Parity. The House Energy and Commerce Subcommittee on Health yesterday approved H.R. 1424, the Paul Wellstone Mental Health and Addiction Equity Act. For more information on the legislation, see FFIS Issue Brief 07-47.


New York Files SCHIP Lawsuit

Yesterday, New York filed a lawsuit against the Department of Health and Human Services challenging new rules for the State Children's Health Insurance Program (SCHIP). Illinois, Maryland and Washington joined the lawsuit, and Arizona, California, Connecticut, New Hampshire and New Mexico are submitting friend-of-the-court briefs. The states assert that the rules conflict with the SCHIP statute and that in the process of issuing the guidance letter the agency violated the Administrative Procedure Act.

House Passes Regional Economic Development Bill


The House has passed a regional economic development bill that would authorize $1.25 billion over five years to fund commissions that serve regions experiencing high poverty and unemployment. H.R. 3246 would authorize five regional authorities to create economic development strategies, modeled after the Appalachian Regional Commission. They include the Delta Regional Commission, Northern Great Plains Regional Commission, Southeast Crescent Regional Commission, Southwest Border Regional Commission and Northern Border Regional Commission. The Senate has no companion bill and the president has said he would veto H.R. 3246 because of its Davis-Bacon wage requirement and its overlap with existing programs.

WIA Legislation Introduced


House Education and Labor Ranking Member Howard McKeon has introduced the Workforce Investment Improvement Act (H.R. 3747). The legislation builds upon H.R 27, approved in the 109th Congress. The bill contains several changes to the Workforce Investment Act (WIA): consolidating adult, dislocated worker and Wagner-Peyser funding streams; combining core and intensive services; modifying state and local boards; allowing faith-based providers to participate in the job-training system; allowing state boards to oversee local board operations; providing flexibility to spend youth funds; and changing performance accountability.


President Vetoes SCHIP

Yesterday, President Bush vetoed H.R. 976, a bill to reauthorize the State Children's Health Insurance Program. A House vote to override the veto is scheduled for October 18.

Senate Appropriations Update:

Defense. Yesterday, the Senate passed the FY 2008 appropriations bill for the Department of Defense (H.R. 3222). It includes an amendment providing $3 billion in emergency spending for more border security, including agents, barriers, ground-based radar and cameras, as well as 700 miles of fencing along the U.S.-Mexican border. The Senate measure now heads to conference with the House.


Senate Passes FY 2008 Defense Authorization

The Senate has passed H.R. 1585, the $648.3 billion FY 2008 defense authorization bill.

New Jersey Sues Feds Over SCHIP Requirements

Yesterday, New Jersey filed a lawsuit against the Department of Health and Human Services to block new requirements for the State Children's Health Insurance Program (SCHIP). The requirements were issued by the Centers for Medicare and Medicaid Services (CMS) in August and mandate that states reach certain benchmarks before providing health care coverage under SCHIP to children in families with incomes above 250% of the federal poverty level. New Jersey is seeking a court order declaring that the CMS letter is without force and effect; an illegal rulemaking in violation of the Administrative Procedure Act; arbitrary and capricious; an abuse of discretion under the SCHIP statute and regulations; and contrary to the SCHIP statute and regulations. Seven other states announced that a similar suit would be filed in U.S. District Court for the Southern District of New York within the next few days: New York, Illinois, Maryland, Washington, Arizona, California and New Hampshire. A copy of the New Jersey lawsuit is here.