Senate
Approves SCHIP, CR, Debt Limit Increase
Yesterday, the Senate approved by a veto-proof majority H.R. 976, to
reauthorize the State Children's Health Insurance Program (SCHIP). The
Congressional Budget Office estimates the measure would provide coverage for
approximately four million eligible but unenrolled
children. The program expires on Sunday, September 30. The Senate also
cleared the House-passed continuing resolution (CR) to fund federal
agencies through November 16, at FY 2007 levels (H.R. Res. 52). The
CR includes short-term extensions of SCHIP, the Food Stamp program and the
Federal Aviation Administration. Finally, the Senate approved H.J. Res. 43,
which would increase the statutory debt ceiling by $850 billion to $9.815
trillion. The current limit is projected to be reached on
October 1. The House automatically approved a debt ceiling
increase when it adopted the conference report to the budget resolution in
May.
House
Passes CR
Yesterday, the House passed a continuing resolution (CR)
to fund federal agencies at FY 2007 levels through Friday, November 16
(H.R. Res. 52). It includes a short-term extension of the State Children's
Health Insurance Program (SCHIP). It also contains short-term extensions of the
Trade Adjustment Assistance program and Federal Aviation Administration
financing.
House Would Extend Health Programs, Delay Tamper-Proof Prescription
Requirement
Yesterday, the House approved H.R. 3668, which provides an extension of
transitional medical assistance (TMA), abstinence education and the qualifying
individuals (QI) program through December 31, 2007. It also would
delay for six months the requirement that all non-electronic Medicaid
prescriptions be written on tamper-resistant pads. On September 25, the
Senate approved a stand-alone measure for a six-month delay of the tamper-resistant
pad requirement (S. 2085).
HHS Releases LIHEAP Contingency Funds
The Department of Health and Human Services (HHS) announced the release of $131
million in contingency funds from the Low-Income Home Energy Assistance Program
(LIHEAP). Later today, FFIS will release an Issue Brief describing the
new allocations.
House Committee Approves Mental Health Parity Bill
The House Ways and Means Committee approved the Paul Wellstone Mental
Health and Addiction Equity Act (H.R. 1424). The bill would require most health
insurance plans to make mental health benefits equal to medical and surgical
benefits. The Senate passed its version of mental health parity
legislation on September 18 (S. 558). While both bills would permit
stronger state mental health parity laws, only the House bill would
require health plans offering mental health benefits to cover the same mental
health and addiction disorders that are included in the health plans used by
Members of Congress. The House bill has an effective date of January 1, 2008
while the Senate bill would not be effective until January 1, 2009. The
Congressional Budget Office estimates the House bill would cost $1.1 billion
over five years and $3.1 billion over 10 years. No financing mechanism has been
identified for the bill to date. The administration supports mental health
parity legislation, but favors the Senate's approach.
House Committee Approves HOPE VI Bill
The House Financial Services Committee approved H.R. 3524, to reauthorize the
HOPE VI program. HOPE VI provides funding to upgrade and replace public
housing.
House
Passes SCHIP Agreement
Last night, the House passed H.R. 976, which reauthorizes the State
Children's Health Insurance Program (SCHIP) by a vote of 265-159. The House
vote was short of the 290 votes needed to override an expected veto. The
compromise includes changes to the funding formula, a moratorium on efforts to
impose restrictions on Medicaid rehabilitation and school-based services,
dental health services and mental health parity.
FFIS will be releasing an Issue Brief later today that displays
state-by-state funding estimates for the new bill, prepared by the
Congressional Research Service.
CR in House Today
The House is scheduled to consider a continuing resolution (CR) today to
fund federal agencies through Friday, November 16, at fiscal year (FY) 2007
levels. It includes a short-term extension of SCHIP that would make the $5
billion baseline funding available for state SCHIP allotments for FY 2008. It
also addresses redistribution of any unexpended FY 2005 SCHIP funds for states
that experience a funding shortfall in FY 2008. The CR includes short-term
extensions for the Trade Adjustment Assistance (TAA) program and the Federal
Aviation Administration (FAA).
House and
Yesterday, the House and Senate yesterday passed H.R. 3375, to extend trade
adjustment assistance (TAA) programs for three months, beginning October
1, 2007.
Expanded SCAAP Scope in Works
Yesterday, a House subcommittee approved H.R. 1512. The FY 2006 Department of
Justice appropriations law (P.L. 109-162) required that, beginning in FY 2007,
SCAAP funds could be used only to reimburse the costs of detaining illegal
immigrants for "correctional purposes." Under H.R. 1512, SCAAP funds
would reimburse the imprisonment costs for illegal immigrants charged with a
crime, regardless of a subsequent conviction.
SCHIP
Language Available
Yesterday, House and Senate leaders released the language of the bill to
reauthorize the State Children's Health Insurance Program (SCHIP) (H.R. 976). The
House is expected to vote on the bill today and the Senate as early as
tomorrow. The bill provides a $35 billion increase in SCHIP funding, bringing
total funding to approximately $60 billion over five years. The new funding
would be provided by a 61-cents per pack increase
in the federal tobacco tax. Some House Democrats may vote against the bill
because it contains a higher cigarette tax increase than passed the House in
August. The president is expected to veto the bill. The bill language can be
found at the following link: http://rules.house.gov/announcement_details.aspx?NewsID=3032
Senate Adopts Water Resources Conference Report
The Senate has adopted the conference report to the Water Resources Development
Act, which the House adopted on August 1. The measure authorizes $23.2
billion for Army Corps of Engineers projects. The White House has issued a
veto threat; however, the measure passed with veto-proof majorities in both
chambers.
House Passes Short-Term FAA Extension
Yesterday, the House passed H.R. 3540, the Federal Aviation Administration
Extension Act of 2007, which extends Federal Aviation Administration (FAA)
programs and existing taxes until December 31, 2007.
SCHIP Deal
Reached
Congressional leaders have reached an agreement on reauthorizing the State
Children's Health Insurance Program (SCHIP). The compromise resembles the
Senate-passed version but would adopt the funding formula in the House-passed
version, capped at $60 billion over five years. It is expected to include $300
million for dental coverage. If vetoed, Congress would need to approve a
temporary extension to keep the program running, possibly as part of a
continuing resolution.
House Passes TRIA Extension
Yesterday, the House passed H.R. 2761, which extends the Terrorism Risk
Insurance Act (TRIA) for 15 years. The post-9/11 program established a
temporary federal backstop for property and casualty insurance losses resulting
from acts of terrorism, capping potential industry losses. H.R. 2761 would
expand the program to include coverage for group life insurance, require
insurance carriers to offer coverage for nuclear, biological, chemical and
radiological attacks beginning in 2009 and lower the damage trigger for federal
government involvement to $5 million from $100 million. No companion bill has
been introduced in the Senate. The current extension expires December 31, 2007.
Entitlement
Reform Moves Onto Agenda
Yesterday, Senate Budget Committee leaders announced a bill that
would create a task force to address entitlement reform (S. 2063). The
task force would be comprised of 14 members of Congress and two administration
officials, with the Secretary of the Treasury serving as chair. It would report
to Congress no later than December 9, 2008, and its recommendations would be
introduced as legislation shortly after Congress convenes in January 2009.
Consideration would be expedited, with limited floor debate, no amendments and
a three-fifths vote in both chambers for passage. A similar bill is expected
to be introduced in the House next week.
Senate Passes Mental Health Parity Bill
Yesterday, the Senate approved the Mental Health Parity Act of 2007 (S. 558).
The bill would not preempt tougher state mental health parity laws. The House
Ways and Means Committee is scheduled to mark-up a companion measure today.
Yesterday, the
A second bill, the Airport and Airway Trust Fund Financing Act of 2007 (H.R.
3539), would increase taxes on noncommercial flights and extend other existing
aviation taxes through September 30, 2011. It would increase the jet fuel tax
for general aviation from 21.8 cents per gallon to 35.9 cents per gallon and
the general aviation gas tax from 19.3 cents per gallon to 24.1 cents per
gallon. The fuel tax and gas tax for commercial flights would stay the same.
House Committee Approves Trade Adjustment Extension
Yesterday, the
The Federal Highway Administration (FHWA) first prepared its report, Financing
Federal-Aid Highways, in January 1974 to describe the basic process
involved. The report has been modified following enactment of new highway
or surface transportation acts to reflect changes.With
enactment of Public Law 109-59, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU), the report has been updated to incorporate the changes in
financing procedures brought about by that act. The report follows the
financial process from inception in an authorization act to payment from the Highway
Trust Fund, and includes discussion of the congressional and federal agency
actions that occur throughout. It is available at the following link:http://www.fhwa.dot.gov/reports/financingfederalaid/index.htm.
SCHIP
Agreement in the Works
Members of the House and Senate are making progress on an agreement to
reauthorize the State Children's Health Insurance Program (SCHIP). The
compromise is based largely on the Senate version of the bill, which
provides a five-year, $35 billion expansion (on top of $25 billion) and
excludes changes to Medicare Advantage plans. Like the Senate bill, the
agreement includes a 61-cent increase in the federal tobacco tax. Congress
intends to send a bill to the president prior to the program's September 30
expiration date. The administration has reiterated its threat to veto the bill.
FAQ's on
Tamper-Resistant Prescriptions
On August 17, 2007, the Centers for Medicare and
Medicaid Services (CMS) issued a "State Medicaid Director" letter
offering guidance to state Medicaid agencies on the new requirement
for tamper-resistant prescription pads. CMS received a number of questions
from states about implementation. CMS has developed a Frequently Asked
Questions (FAQ) document to assist states as the October 1,
2007, implementation date approaches.This document is
available at
http://www.cms.hhs.gov/DeficitReductionAct/30_GovtInfo.asp#TopOfPage.
Senate
Appropriations Update:
Transportation-HUD. Yesterday, the Senate passed S. 1789/H.R.
3074, the FY 2008 Transportation-Housing and Urban Development (HUD)
appropriations bill. It includes an amendment to obligate an additional $1
billion from the Highway Trust Fund to upgrade and repair bridges. It also
includes an amendment to appropriate the remaining $195 million of the $250
million authorized before the August recess for repair of the collapsed 1-35W
bridge in
Defense. Yesterday, the Senate
Appropriations Committee approved its FY 2008 spending bill for the Department
of Defense. The measure is similar to the House bill that passed in
August.
Senate Committee Approves Debt Ceiling Boost
The Senate Finance Committee approved H.J. Res. 43, which increases the
statutory debt ceiling by $850 billion to $9.815 trillion. The current
debt limit is projected to be reached in early October. The House automatically
approved a debt ceiling increase when it adopted the conference report to the
budget resolution in May.
Deadline
for Requesting Real ID Extension Extended
At a hearing yesterday, Department of Homeland Security (DHS) Secretary
Michael Chertoff said that the deadline for
requesting extensions in implementing Real ID requirements will be February,
2008 rather than October, 2007. DHS issued a proposed rule for implementing the
Real ID Act (PL 109-13) in March 2007, and is expected to issue the final rule
in October 2007. According to DHS, states may receive an extension on
implementing the Real ID Act until December 31, 2009.
Continuing Resolution in the Works
Congressional staff is said to be working on a continuing resolution (CR) that
would expire on Friday, November 16. The fiscal year ends on September 30, and
the appropriations process is unlikely to be completed by that time (the House
has passed all 12 of its spending bills; the Senate has passed three). The CR
also may include short-term extensions of the Farm Bill and the State
Children's Health Insurance Program.
An amendment to the FY 2008 Department of Transportation appropriation bill (S.
1789) passed yesterday. It would increase states' federal-aid highways
obligation limitation by a total of $1 billion for the stated purpose of
increasing the amount of funds available for the highway bridge program. This
amendment would not increase budget authority for the bridge program, only
allow greater flexibility to states for accessing apportionments they already
are scheduled to receive. However, it would be done in the face of zero
expected balances in the Highway Trust Fund in FY 2009, when most of the
spending would be expected to begin. With a zero balance, there could be no
outlays to reimburse states for their expenditures until additional resources
could be generated.
44 Senators Send SCHIP Letter
Yesterday, 44 senators sent a letter to the president requesting that the
administration rescind its guidance to prevent "crowd-out" in the
State Children's Health Insurance Program (SCHIP). At a minimum, the
senators requested that the administration pursue its new policy
through the rule-making process.
College
Cost Reduction Act Heads to President
Last Friday, the Senate and House adopted the conference report to the College
Cost Reduction Act (H.R. 2669). The president is expected to sign it.
The measure fulfills budget reconciliation instructions to cut $750 million in
education costs. It reduces student loan subsidies by $20 billion and reinvests
most of the savings. Among its provisions are the following:
° Increases the Pell grant maximum to $5,400 by 2012
° Reduces interest rates on student loans for low-and middle-income
students from 6.8% to 3.4% by 2011
° Creates an auction for the right to offer PLUS loans
° Offers grants to students who agree to teach in high-need subjects
through a new TEACH grant program and
° Provides loan forgiveness and capped annual loan payments for college
graduates who enter public service.
Senate Appropriations Update
Veterans Affairs. Yesterday, the Senate passed its Military
Construction-VA appropriations bill for FY 2008. A total of $43 billion is
provided for the Department of Veterans Affairs, $3.6 billion more than
the president's request and $6.5 billion more than FY 2007. The measure funds
base realignment at $8.2 billion.
Higher Ed
Reconciliation Bill Set
Conferees have completed work on H.R. 2669, the College Cost Reduction Act,
which meets the budget reconciliation instruction to cut $750 million in
education costs. The bill reduces student loan subsidies by $20 billion and
reinvests most of the savings into other areas of higher education. The final
agreement also increases the Pell grant maximum to $5,400 by 2012. The
House must wait at least 24 hours before voting on the report and the Senate
must wait at least 48 hours.
Congress
Returns
Congress returns today from its August recess. There is less than one month
before FY 2008 begins; therefore, Congress
is likely to rely on a continuing resolution to fund government programs
until spending bills have been finalized. To date, the full Senate has approved
only the Homeland Security spending bill (10 others have been reported out
of committee). The House has passed all of its appropriations bills but still
needs to conference them with the Senate. The administration has threatened to
veto any that exceed the president's proposed discretionary spending
levels.
The House and Senate have passed different
versions of a bill to reauthorize the State Children's Health Insurance
Program, and informal negotiations are ongoing to reconcile the measures. The
president has threatened to veto either proposal.
CMS Issues Proposed Rule
On Friday, August 31, the Centers for Medicare and Medicaid Services (CMS)
issued
a proposed rule to restrict Medicaid reimbursement for school-based
administrative
and transportation services. CMS estimates that the changes will reduce federal
Medicaid expenditures by $3.6 billion over five years. Comments are due by
Tuesday, November 6.
The proposed rule is http://inside.ffis.org/ff/0904CMS.pdf.
HHS Announces Additional Pandemic Flu Funding
On Thursday, August 30, the Department of Health and Human Services (HHS)
announced the availability of $75 million to states, territories and four
metropolitan areas to help strengthen their capacity to respond to a pandemic
influenza outbreak. A state by state listing of funding is available at: http://www.hhs.gov/news/press/2007pres/08/pr20070830a.html.