Rail Bill
in Senate
The Senate is expected to vote Wednesday on final passage of a
House-passed rail package (H.R. 2095). The bill combines several
rail-related bills passed by the Senate or the House earlier this Congress,
including Amtrak reauthorization, rail safety, rail
solid waste and funding for the Washington Metropolitan Area Transit Authority.
The package includes $1.9 billion for a new state grant program for rail
projects and revised language on public-private partnership proposals for
high-speed rail.
Yesterday, the House approved H.R. 6098, the Personnel Reimbursement for
Intelligence Cooperation and Enhancement of Homeland Security Act (the PRICE of
Homeland Security Act). The bill amends the Homeland Security Act of 2002 to
permit Urban Area Security Initiative or State Homeland Security Grant Program
funds to be used for paying intelligence analysts regardless of whether they
are current or new full-time employees or contract employees and without
limitations on the period of time they can serve under awarded grants. The
Senate passed the bill last week. It will now go to the president, who is
expected to sign it.
QI Funding Bill Sent to President
The House cleared S. 3560, which provides $45 million for the Medicare
qualifying individual (QI) program for FY 2008 and FY 2009. The Senate
also has approved the measure and the president is expected to
sign it. The bill includes an offset that requires states to participate
in a federal data matching system to determine Medicaid eligibility as of
October 1, 2009.
CMS Issues Medicaid Rule on Direct Personal Assistance Services
Yesterday, the Center for Medicare and Medicaid Services (CMS) released a rule
providing state flexibility to allow Medicaid enrollees to use personal
assistance services. The rule implements a provision of the Deficit Reduction
Act of 2005 (P.L. 109-171) that allows states to adopt a state plan option to
provide personal assistance services in ways that previously required waivers.
The final rule is scheduled to be published in the October 3, 2008, issue of
the Federal Register and to be effective November 3, 2008. A copy of the
regulation is attached
(http://inside.ffis.org//ff/medrule0930.pdf).
HHS Awards Grants to Help Older Americans, Vets Remain Independent
The Department of Health and Human Services (HHS) announced $36 million in new
grant programs to 28 states to help older Americans and veterans remain
independent and to support people with Alzheimer's disease to remain in their
homes and communities. More information is available at the following link:
http://www.hhs.gov/news/press/2008pres/09/20080929a.html
Congress
Says Yes to CR, No to Stimulus
Congress passed a continuing resolution (CR) over the weekend to fund the
federal government until March 2009. The bill funds most programs at FY 2008
levels with some exceptions. Congress did not renew the moratorium on
offshore drilling that is typically included in the annual appropriations
process. An FFIS brief describing the CR is forthcoming.
Efforts to pass a stimulus package fell short, with the House passing its $60
billion measure but the Senate failing to reach cloture. The White House
had threatened to veto the House and Senate stimulus packages.
Revised Financial System Rescue Plan Unveiled
Congressional leaders and the administration released a revised financial
services rescue package that the House will consider today. The thrust of the
bill is a $700 billion program to purchase and guarantee troubled mortgages and
mortgage-backed securities. The release of funds would be graduated with an
immediate release of $250 billion. Release of the remaining authority requires
certifications and no congressional disapproval. Authority to purchase and
guarantee troubled assets would expire on December 31, 2009, unless extended
for an additional year. Profits from the sale of troubled assets must be used
to pay down the national debt. The revised package contains numerous consumer
and oversight protections. The proposal also requires a report to Congress by
April 30, 2009, on the effectiveness of the financial regulatory system and
recommendations for improvements.
House Approves Energy Tax Credits
Last Friday, the House approved a $14 billion package that extends renewable
energy tax credits as part of a $62 billion tax bill. The "Renewable
Energy and Job Creation Tax Act of 2008" (H.R. 7060) extends the
production tax credit for wind, solar and other renewable energy projects and
provides incentives for plug-in hybrids, efficient homes, biofuels
and advanced coal. The bill removes provisions in the Senate bill (H.R. 6049)
that would provide tax incentives to refineries that process oil shale and oil
sands, reauthorize the "Secure Rural Schools and Community
Self-Determination Act" through 2011, and fully fund the Payment in Lieu
of Taxes (PILT) program for 2009. It is unclear if the Senate will take up the
House bill, as Senate leaders had urged the House to pass the Senate bill,
citing strong bipartisan agreement. President Bush released a Statement of
Administration Policy that endorses the Senate tax package and threatens to
veto the House bill.
FEMA Awards Grants to Emergency Response Agencies
Friday, the Federal Emergency Management Agency (FEMA) announced FY 2008
Commercial Equipment Direct Assistance Program (CEDAP) award to 1,045
emergency response agencies in 46 states and
http://www.fema.gov/government/grant/cedap/index.shtm
Stimulus
and Tax Extenders
The House is expected to take up a stimulus package
and a tax extenders bill today. The stimulus package will reportedly
include enhanced Medicaid payments for states, an extension of unemployment
benefits, additional funding for food stamps and increased investments in
infrastructure.
Senate leaders unveiled a similar, but not identical, $56 billion package on
Thursday. A copy of the Senate proposal is attached (http://inside.ffis.org//ff/ReidByrdstimulus_1.pdf).
The House also will vote on a fully offset tax extenders package that includes
several popular business and energy tax credits. Several members of the Senate
and the president have indicated opposition to the package based on the offsets
used to pay for the extensions. The Senate has already passed a partially
offset tax bill that includes a one-year patch of the Alternative Minimum Tax
(AMT). The House passed a stand-alone AMT bill earlier this week.
Senate Approves QI Funding
Yesterday, the Senate approved a package of health care technical changes. The
bill, S. 3560, would increase funding for the Medicare Qualifying Individuals
program by $45 million to avert expected shortfalls for the current fiscal year
and FY 2009. In addition, the bill clarifies education or training activities
under the Medicaid Integrity Program that would be eligible for reimbursement
by Medicaid. The measure also requires states to have a Medicaid eligibility
determination system that provides for data matching through the Public
Assistance Reporting Information System by October 1, 2009, in order to
receive Medicaid matching funds for reimbursement of state costs for automated
data systems. The House could consider the measure shortly.
The House yesterday passed several public health-related measures, including
H.R. 1343, the "Health Care Safety Net Act of 2008." The Senate
approved H.R. 1343 on September 24. The president is expected to sign the bill,
which would reauthorize community health centers for five years,
increasing authorized funding from $2.2 billion in FY 2008 to $3.3 billion in
FY 2012.
House Passes Fire Administration Reauthorization
On Wednesday, the House passed the "United States
Fire Administration Reauthorization Act of 2008" (S. 2606), which
authorizes $293 million in funding through FY 2012 for the U.S. Fire
Administration. The Senate passed the measure on September 18. S. 2606
will now go to the president, who is expected to sign
it.
Defense Bill Increases Authorization for Impact Aid
Tuesday, the House approved the conference agreement for the "Duncan
Hunter National Defense Authorization Act" (S. 3001) for FY 2009. The bill
authorizes $35 million for "Assistance to Schools with Significant Numbers
of Military Dependent Students" (known as "Supplemental Impact Aid")
and $15 million for "Assistance to Schools with Enrollment Changes Due to
Base Closure, Force Structure Changes, or Force Relocation" (known as
"Impact Aid for Large Scale Rebasing"). The current authorizations
for these programs are $30 million and $10 million. The bill is awaiting final
passage in the Senate.
CR Heads
to Senate
Yesterday, the House overwhelmingly passed a continuing resolution (CR) to fund
government operations until March 2009. The $600 billion package funds most
programs at FY 2008 levels while funding programs in the Defense, Military
Construction and Homeland Security appropriations bills at FY 2009 levels. The
bill also includes $5.2 billion for low-income heating and cooling assistance
(LIHEAP), $2.5 billion for Pell Grants, $22.9 billion for disaster
relief and a $25 billion loan program for the auto industry.
House Splits Senate Tax Bill; Approves AMT Fix
The House has decided not to follow the Senate's lead on tax extenders and has
instead approved a stand-alone alternative minimum tax (AMT) fix for one year.
Like the Senate provision, the one-year patch is not offset. The House plans to
address other expiring tax provisions, such as energy tax credits and several
business tax provisions, in a separate bill. Unlike the Senate package, the
House plans to fully offset the energy and business tax titles. Authors of the
Senate legislation continue to warn that changes to the tax titles may threaten
passage in the Senate.
House Passes DoD
Conference Report
Yesterday, the House passed the "National Defense Authorization Act of
2009." The measure would authorize $611 billion in FY 2009 spending for
the departments of Defense and Energy. The Senate is expected to consider the
conference report on Thursday or Friday.
House Passes Rail Package
The House yesterday passed H.R. 2095, which combines several rail-related bills
passed by the Senate or House earlier this Congress, including Amtrak reauthorization,
rail safety, rail solid waste and funding for the Washington Metropolitan Area
Transit Authority. The Senate is expected to consider H.R. 2095 this week.
Fate of Mental Health Parity Bill Unclear
Yesterday, efforts failed in the Senate to "hotline" a House-passed
mental health parity bill (H.R. 6983). Congressional staff indicated there were
concerns tied to the process for passing a bipartisan tax extenders/energy tax
credits/mental health parity package as well as the $3.4 billion offset needed
for the mental health parity provisions. The Senate approved the comprehensive
bipartisan bill on Tuesday, but the House plans to consider it in pieces. The
House did not include the mental health parity piece.
Finance Leaders Seek Approval for Health Care Technical Corrections Senate
Finance Committee
Senate Finance Committee leaders introduced legislation that includes a package
of health care technical changes. The "QI Program Supplemental Funding Act
of 2008" would increase funding for Medicare's Qualifying Individuals (QI)
program by $45 million, the amount needed to fill the estimated funding
shortfall for the remainder of FY 2008 and FY 2009. Under the QI program,
individuals with incomes between 120-135% of the federal poverty level may be eligible
for payment of their Medicare Part B premiums. The bill clarifies education or
training activities under the Medicaid Integrity Program that would be
eligible for reimbursement by Medicaid. The measure also includes a provision
that would require states to have a Medicaid eligibility determination system
that provides for data matching through the Public Assistance Reporting
Information System as of October 1, 2009, in order to receive Medicaid
federal matching funds for reimbursement of state costs for automated data
systems.
Update on
Congressional Agenda
Yesterday, Congress unveiled a Continuing Resolution (CR) to fund the
government through March 6, 2009. The plan would hold most funding at FY 2008
levels, but use FY 2009 levels found in the Defense, Homeland Security and
Military Construction appropriations measures. Other provisions could move with
the CR, including heating and cooling assistance and an extension of
unemployment insurance.
Additionally, the House is likely to consider many of the tax extenders passed
by the Senate. Major provisions include an extension of several expiring energy
tax provisions, expiring research and development credits, the deduction
for state and local sales taxes and a one-year patch for the Alternative
Minimum Tax.
Finally, both the House and Senate are working to address the financial crisis
and the administration's response to it.
Senate Approves Energy Tax Credits
Yesterday, the Senate approved an energy tax credit amendment as part of its
overall tax extenders bill. The package extends the production tax credit for
wind, solar and other renewable energy projects and provides incentives for
plug-in hybrids, efficient homes, biofuels, advanced
coal and refineries that process oil shale and oil sands. The bill also
reauthorizes the
To offset the tax extensions, the package freezes the Section 199 domestic
manufacturing deduction for oil and gas companies,
extends and raises the per-barrel tax that feeds into the federal Oil Spill
Liability Trust Fund, alters tax rules on oil and gas companies' income on
overseas projects and tightens reporting rules on transactions involving
trading of stock and other securities.
Mental Health Parity Measures Move
The House approved H.R. 6983, mental health parity legislation, while the
Senate included similar parity language as part of its bipartisan agreement on
energy and tax extenders (H.R. 6049). The provisions approved by both chambers
reflect a compromise reached earlier this year. Final passage of mental health
parity legislation could be tied to future action on H.R. 6049. The parity
measure would require group health care plans to provide the same coverage for
mental health and substance use disorders as is provided for medical and
surgical benefits. The administration has indicated its support for the
mental health parity legislation included in the Senate amendments to H.R.
6049.
House and
Yesterday, the House and Senate passed the "Federal Aviation
Administration Extension Act of 2008, Part II" (H.R. 6984). The bill
extends all taxes that fund the Airport and Airway Trust Fund through March 31,
2009. These taxes were set to expire September 30, 2008. It also extends
Aviation Improvement Program contract authority through April 1, 2009. Similar
language is included in a draft continuing resolution (CR), although authority
to collect aviation taxes would expire March 6, 2009, the CR's
expiration date.
President Signs Extension to Ensure Access to Student Loans
On September 17, President Bush signed a one-year extension of the
"Ensuring Continued Access to Student Loans Act of 2008" (H.R. 6889),
extending the program until July 1, 2010. The law, which was passed earlier
this year, authorizes the secretary of education to purchase student loans from
lenders in the Federal Student Loan Program in the event those lenders are
unable to access needed capital. It also increases loan limits for unsubsidized
School
Security Grants Match Could Change
On September 17, 2008, the House passed H.R. 2352, a bill that would increase the federal matching rate for Department of
Justice (DOJ) school security grants from 50 to 80%. The required state and
local match would consequently drop from 50 to 20%. The bill would also
increase the authorization level for school security grants to $50 million for
each of fiscal years (FY) 2009 and 2010. Current law authorizes these grants at
$30 million through FY 2009. The Senate has not voted on the companion bill, S.
1217.
FHWA Affirms HTF Solvency
The Federal Highway Administration (FHWA) has provided an update on the
status of the Highway Trust Fund (HTF). As a result of recently passed
legislation, which transferred $8 billion from the general fund to the HTF,
FHWA was able to pay on September 18, 2008, all current reimbursement requests
from states. No state received a pro-rated reimbursement, which was FHWA's plan if the HTF had run out of money. FHWA now
projects that the HTF will have a balance of approximately $1-$2 billion at the
end of FY 2009, which is when the current surface transportation authorization
expires. Although FHWA does not anticipate a shortfall, the department has
instituted new review processes to ensure that notification to stakeholders of
any potential future shortfall will come earlier. These review processes
include closer daily monitoring of vehicle miles traveled, HTF receipts and
general economic indicators.
FFIS
Publishes FY 2010 FMAP Projections
Based on the revised personal income data released today, FFIS has published
the final FY 2010 federal medical assistance percentage (FMAP) rates for
Medicaid and other programs. These have been sent to FFIS subscribers.
Senate Passes Defense Authorization Bill
The Senate has passed S. 3001, the "National
Defense Authorization Act of 2009." S. 3001 goes to conference next
week with the House version of the bill (H.R. 5658). A conference report could
be completed before Congress adjourns at the end of the month.
House Clears Compromise Child Welfare Bill; Senate Action Imminent
Yesterday, the House passed H.R. 6893, the "Fostering Connections to
Success and Increasing Adoptions Act of 2008." H.R. 6893 would
reauthorize and increase adoption incentives, allow federal foster care
assistance to continue up to age 21 for youth engaged in school, work or other
constructive activities, provide direct federal foster care assistance to
tribal governments for youth in their care and increase federal assistance to
states to support kinship-related care. The bill will likely reach the Senate
in the next few days. President Bush is expected to sign it. Congress is
expediting the measure prior to the expiration of adoption incentives on
September 30.
Senate Energy Tax Package Details Released
Yesterday, the Senate Finance Committee released
details of a $17 billion energy tax package. The package also includes
reauthorization of the
Senate Committee Reports Bridge Bill
The Senate Environment and Public Works (EPW) Committee passed the
"National Highway Bridge Reconstruction and Inspection Act" (H.R.
3999). The bill specifies that states may not transfer bridge funds to other
apportioned programs unless the Secretary of Transportation is satisfied that
the state has no bridges on the National Highway System that are eligible for
replacement. The bill requires the secretary to develop a system to inventory
and prioritize replacement or rehabilitation of all federal-aid bridges that
are structurally deficient or functionally obsolete. As a condition to receive
federal assistance under the measure, states must develop a five-year
performance plan for highway bridge inspection, which must be approved by the
secretary. The bill also requires states to inspect all highway bridges every
two years. An additional $1 billion is authorized under H.R. 3999 for the
federal bridge program. Senator Boxer will try to attach this legislation
to a Continuing Resolution. The House passed the bill in July.
Senate Committee Marks Up State Revolving Loan Fund Bill
Wednesday, the Senate EPW Committee approved S. 3500, which would reauthorize
the Clean Water State Revolving Loan Fund (SRF) at $20 billion over 5 years and
the Drinking Water SRF at $15 billion over five years. The House has already
approved a bill (H.R.720) to reauthorize just the Clean Water program for $14
billion over four years.
House
Passes Energy Bill
Tuesday, the House passed a bill that would allow drilling more than 100
miles from the coasts and 50-100 miles offshore if states opt to allow it. The
bill would not provide drilling royalties to states that allow
drilling. The proposal would create a national renewable electricity
standard, extend the renewable energy tax credits, establish a fund for carbon
capture and storage R&D and require oil companies to use their existing oil
leases or lose them. The bill is fully funded by several revenue raisers on the
oil and gas industry.
Child
Welfare Compromise Reached
Yesterday, H.R. 6893, the "Fostering Connections to Success and Increasing
Adoptions Act of 2008," was introduced. The bill is a bipartisan
child welfare proposal that would increase incentives for moving children from
foster care to adoptive homes, allow more children to be cared for by their own
relatives and in their own communities and create opportunities for older
children aging out of the foster care system. The bill reflects a compromise
reached between the
President Signs HTF Legislation
Yesterday, the President signed H.R. 6532, which transfers $8 billion from the
general fund to the Highway Trust Fund (HTF) to cover its funding shortfall.
The funds will be transferred immediately, eliminating the need to prorate
reimbursement payments to states for federally eligible highway projects.
New
Stimulus Package Expected
This week, House leadership is expected to introduce a $50 billion
economic stimulus package that will include:
· Enhanced Medicaid matching funds
· Infrastructure assistance
· Assistance for families (food stamps, Low Income Home Energy
Assistance)--might also include weatherization assistance and extended
unemployment benefits.
Details will be reported as they become available.
HTF Bill
Passes House, Goes to President
Yesterday, the House passed the Senate's version of H.R. 6532, which would
transfer $8 billion from the general fund to the Highway Trust Fund (HTF) to
address its shortfall. The president is expected to sign the legislation today.
The funds will transfer to the HTF immediately, eliminating the need to
pro-rate state reimbursements for federal-aid highway projects.
Senators Unveil New Energy Tax Package
Senate Finance Committee Chair Baucus and Ranking Member Grassley outlined
a new energy tax package. The measure would include a consumer credit for
plug-in electric vehicles, new credits for clean coal and carbon dioxide
storage and incentives for smart meters. The bill would extend the renewable
energy production tax credit, the investment tax credits for solar energy and
fuel cells, the residential and commercial energy efficiency property credits
and the nuclear production credit. In addition, the proposal would extend the
ethanol excise tax credit, the biodiesel production
credit and the alternative fuels and refueling stations credits. The proposal
fully offsets its cost by reducing a domestic manufacturing deduction for the
five largest oil and gas companies and establishing a 13% excise tax on oil or
natural gas produced from federal lands on the outer continental shelf in the
DHS Announces Availability of Emergency Preparedness Grants
The Department of Homeland Security (DHS) recently announced FY 2008
allocations for the Emergency Operations Center Grant Program (http://inside.ffis.org//ff/EmerOps.pdf) and
the Interoperable Emergency Communications Grant Program (http://inside.ffis.org//ff/Interop.pdf).
A total of $14.5 million is being awarded under the former and $48.5 million
under the latter.
The Senate passed an amended version of H.R. 6532, which transfers $8 billion
from the general fund to the Highway Trust Fund to address its shortfall.
The version the Senate passed changes the effective date from September 30,
2008, to immediately upon passage. H.R. 6532 was passed by the House in
June; because of the amendment, the House will vote on the Senate version
of the bill today. President Bush is expected to sign the bill.
Congressional Briefing on TANF Proposed Rule
On Monday, September 15, the
Senate Finance Committee Marks Up Adoption Bill
On Wednesday, the Senate Finance Committee passed S. 3038, the "Improved
Adoption Incentives and Relative Guardianship Support Act," which would
reauthorize and improve the adoption incentives program, provide subsidized
guardianships and other needed supports for relative caregivers and extend
foster care to kids aging out of the system. The bill is now slated to be
reintroduced in both the House and Senate under a new bill number and pushed
through via unanimous consent. The bill would then be expedited to reach the
president's desk by the close of the 110th Congress.
Details of House Leadership Energy Bill Emerge
House leaders plan to bring up a bill that would allow drilling more than
100 miles from the
CMS Awards Real Choice Grants
The Center for Medicare and Medicaid Services (CMS) announced that seven states
will receive a share of more than $8 million to increase awareness of home- and
community-based long-term care options for people leaving hospitals who
otherwise may enter a traditional nursing home. The grants are part of the Real
Choice Systems Change grant program, which is designed to help states and
territories rebalance their long-term support programs to help people with
chronic illness or disabilities reside in their homes and participate in
community life.
The press release is available at: http://www.cms.hhs.gov/apps/media/press_releases.asp.