March 30, 2007

Senate Passes FY 2007 Supplemental

Yesterday, the Senate passed a $123.2 billion FY 2007 emergency supplemental appropriations bill (H.R. 1591). The measure provides funding for military operations and for hurricane recovery, as well as about $20 billion in funding for domestic programs, including $745 million for the State Children's Health Insurance Program, $4.2 billion for agriculture disaster aid, $1 billion for National Guard and Reserve equipment, $170 million for state and local law enforcement assistance, $500 million for fire management and $640 million for the Low-income Home Energy Assistance Program. The bill also includes $2.8 billion to reauthorize the Secure Rural Schools program and $1.9 billion to fully fund the Payments In Lieu of Taxes (PILT) program. In addition, the measure includes $12 billion for small business tax cuts and a minimum wage hike. The White House has issued a veto threat against the measure, which now moves to conference with the House.

House Adopts FY 2008 Budget Resolution

While the Senate worked on the FY 2007 supplemental, the House yesterday adopted its $2.9 trillion FY 2008 budget resolution (H. Con. Res 99). The proposal projects a $153 billion surplus by 2012. (The Senate version (S. Con. Res. 21) uses the projected surplus to extend expiring tax provisions.) Both versions impose pay-as-you-go budget rules.  The measure now heads to conference with the Senate.

 

March 29, 2007

Congressional Budget Update

FY 2007 Supplemental. Yesterday, the Senate invoked cloture on its FY 2007 supplemental appropriations bill and a vote on final passage is scheduled for today. The supplemental provides funding for military operations, hurricane recovery and several domestic programs. The White House has issued a veto threat against the measure.

As part of its deliberations, the Senate approved an amendment to authorize $5 billion over five years for the Secure Rural Schools and Community Self Determination Act, which assists rural counties and schools in paying for roads, schools and law enforcement, and for payments in lieu of taxes. These payments compensate states for the loss of tax revenue due to the presence of federal lands.

FY 2008 Budget Resolution. The House is scheduled to hold a final vote on H. Con. Res. 99 today.

House Committee Action

Recidivism Reduction. Yesterday, the House Judiciary Committee approved the Second Chance Act of 2007 (H.R. 1593), which is designed to strengthen substance abuse treatment, job training and mentoring programs for offenders reentering communities. The legislation would reauthorize existing reentry demonstration programs, expand substance abuse treatment and mentoring grant programs and provide grants to state and local governments to operate reentry courts.

DHS Authorization. Yesterday, the House Homeland Security Committee approved a bill (H.R. 1684) that authorizes $40 billion in discretionary spending for programs in the Department of Homeland Security, approximately $2 billion more than the president's FY 2008 budget request. Among the amendments agreed to was one to authorize $300 million for the next three years to implement the REAL ID Act.

Teacher Training. Yesterday the House Science Committee approved a bill that aims to improve teacher training in math and science education. The bill authorizes $44 million for FY 2008, $55 million for FY 2009 and $60 million for FY 2010-FY 2012. 

 

March 28, 2007

White House Says it Will Veto Senate Supplemental

The Senate continues consideration of its $121.7 billion FY 2007 emergency supplemental bill (H.R. 1591). It adopted an amendment that adds $8 billion in small business tax incentives and a hike in the minimum wage to the measure. Another amendment passed that would extend small business depreciation provisions through 2008. An amendment to strike a troop withdrawal deadline was defeated. A final vote on passage is expected Thursday. The White House issued a veto threat against the measure, citing "excessive and extraneous" spending unrelated to the war, policy changes and troop withdrawal language.

House Passes Rail and Public Transportation Act of 2007

Yesterday, the House passed the Rail and Public Transportation Act of 2007 (H.R. 1401). The measure provides approximately $7 billion over four years for rail, mass transit and bus security. It authorizes $3.36 billion for public transportation security, $2.4 billion for rail security, $200 million for research, $140 million for fire safety improvements to Amtrak tunnels and $87 million for bus security. It also requires rail and public transportation systems to submit vulnerability assessments and security plans to the Department of Homeland Security (DHS) for approval. These plans would clarify roles and responsibilities of federal, state and local agencies in securing rail and public transportation systems.

The Senate considered rail and transit security provisions, authorizing $4 billion as part of broader legislation to implement the recommendations of the 9/11 Commission. S. 4 passed earlier this month.

 

March 26, 2007

This Week's Budget Schedule

Congress is scheduled to adjourn this Friday for its spring recess. The Senate will return on Monday, April 9; the House one week later.

FY 07 Supplemental. The House passed its $124.3 billion supplemental appropriations bill (H.R. 1591) on Friday, March 23. The Senate will consider its FY 07 supplemental this week. The Senate Appropriations Committee approved the measure on Thursday, March 22.

Budget Resolution. Last Friday, the Senate approved its FY 08 budget resolution, S. Con. Res. 21.  An amendment was adopted that would allow an increase in tobacco taxes to offset new spending on SCHIP. Another amendment would extend some tax cuts scheduled to expire in 2010 without offsets.

This week, the House will focus on its $2.96 trillion FY 08 budget resolution, with floor consideration scheduled to begin on Wednesday. The House budget resolution would create a $50 billion reserve for SCHIP. It also includes an additional $3.3 billion for education.

Green Book Revisions

The Green Book is published by the Financial Management Service (FMS), U.S. Dept. of the Treasury, to regulate the federal payment system. Chapter 4 of the Green Book, Returns, has been revised as of March 2007. That revised chapter is now available in PDF format.

Correction to Census Uninsurance Estimates

On March 23, 2007, the Census Bureau revised downward it estimates of persons without health insurance. Apparently the model that generated estimates from the March current population survey (CPS) missed coverage of a relatively small number of household dependents, primarily between 18-64 years of age.

More information can be obtained at the Census Bureau web site.

 

March 23, 2007

Senate Sends Supplemental to Floor

Yesterday, the Senate Appropriations Committee voted to send its supplemental spending bill to the Senate floor. The $121.5 billion measure includes $4.1 billion for agriculture disaster aid, $1 billion for National Guard and Reserve equipment, $625 million for rail security, $170 million for state and local law enforcement assistance, $500 million for wildland fire management, $640 million for the Low-income Home Energy Assistance Program and $747 million for the State Children's Health Insurance Program.

The bill also includes language that delays for two years the Centers for Medicare and Medicaid Services (CMS) proposed Medicaid public provider rule. The measure would stop (for two years) CMS from moving forward on a proposed administrative change that would limit Medicaid graduate medical education. To pay for these changes in Medicaid policy, the bill includes an increase in the minimum drug rebate in Medicaid to 20%.

March 22, 2007

FFIS Grants Database for FY 2008 Available

The new FFIS database has been posted to the FFIS website. It contains estimates of the impact of the enacted FY 2007 and proposed FY 2008 federal budgets.

 

In addition to being available via the Internet, FFIS also offers an Excel spreadsheet that includes each state's data (as well as national totals) for all 200+ programs, as well as summary information about the grant programs themselves (formula or project, mandatory or discretionary, etc.).

 

Full subscribers who are interested in receiving such a spreadsheet should request it by sending an e-mail to ryder@ffis.org.

 

Senate Committee to Take Up Supplemental

The Senate Appropriations Committee will consider a $121.6 billion supplemental spending bill today. The bill costs less than its House counterpart ($124.3 billion), which may be considered on the House floor later today. Like the House bill, the Senate measure includes  spending for several domestic programs including $4.1 billion for agricultural disasters, $1 billion for National Guard and Reserve equipment, $625 million for rail security, $170 million for state and local law enforcement assistance, $500 million for fire management, $640 million for the Low-Income Home Energy Assistance Program and $448 million for the State Children's Health Insurance Program.

 

March 21, 2007

CMS Announces DRA Citizenship Policy Change

According to a statement by Acting Administrator Leslie Norwalk, the Centers for Medicare and Medicaid Services (CMS) plans to modify its policy implementing the citizenship verification requirement in the Deficit Reduction Act (DRA) of 2005. A child born to a mother receiving Medicaid will automatically be eligible for Medicaid for one full year if certain conditions are met.  Under the new policy, all babies who are born in the United States whose deliveries are covered by Medicaid could be deemed eligible for the first year. A CMS interim final rule is expected shortly outlining the details of this change.

House FY 2008 Budget Plan Released

Yesterday, House Budget Committee Chairman Spratt released an outline of his plan for the FY 2008 budget. The proposal is similar to that passed by the Senate Budget Committee: it balances the budget by 2012, imposes pay-as-you-go budget rules and increases spending for several domestic programs. The budget resolution will create a $50 billion reserve for the State Children's Health Insurance Program and include and additional $3.3 billion in education spending. It also calls for an additional $5.5 billion for veterans' health benefits and additional funds for farm legislation if offset. Unlike the Senate plan, the proposal includes a reconciliation instruction for the House Education and Labor Committee to produce a net savings of $75 million over five years to help fund enhancements to student loan programs. The House Budget Committee is expected to take up the proposal later this week.

Administration Introduces Gasoline Proposal

Yesterday, the Bush administration introduced its "20 in 10" proposal that aims to reduce U.S. gasoline consumption by 20% by the year 2017. The main component of the proposal would replace the "renewable fuel standard" of the Energy Policy Act of 2005 with a new "alternative fuel standard" that includes alternative fuels such as coal-to-liquids, butanol, hydrogen and electricity.

 

March 19, 2007

Congressional Budget Schedule for the Week

The House is scheduled to begin consideration of a $124 billion FY 2007 supplemental spending bill this week. The measure was approved by the House Appropriations Committee last week. It provides funding above the president's original $103 billion request for domestic items, including $750 million to prevent states from experiencing State Children's Health Insurance Program (SCHIP) shortfalls, $4.3 billion for Gulf Coast disaster relief, $500 million for wildfire management, $2.5 billion for homeland security needs, $1 billion for pandemic flu preparedness,$4.3 billion for agriculture disaster relief and $400 million for low-income energy assistance. The committee also included a $1.3 billion in small-business tax breaks to accompany a minimum wage increase. 

The Senate Appropriations Committee has scheduled a markup of its version of the supplemental for Thursday.

The Senate schedule calls for consideration of its FY 2008 budget resolution this week. The non-binding blueprint would cap discretionary spending at $948.8 billion, $18 billion more than the president's request.  

The House Budget Committee also is scheduled to mark-up its version of the budget resolution this week.

 

March 16, 2007

CMS Releases Tax NPRM

Today, the Centers for Medicare & Medicaid Services (CMS) placed on display at the Federal Register a notice of proposed rulemaking (NPRM) on health care related taxes under Section 1903(w) of the Social Security Act, which reflects recent legislative actions.  Specifically, the Health Care Related Tax Revisions NPRM revises the indirect hold harmless threshold by reducing the amount a state may receive from a health care-related tax from 6% to 5.5%, as required under the Tax Relief and Health Care Act of 2006.  Additionally, the NPRM provides policy clarifications and removes obsolete language from the regulation text.

The NPRM will be published in the Federal Register on Friday, March 23, 2007, with a 60-day comment period.  An electronic copy of the proposed rule can be accessed on the CMS website.

Medicaid Regulations Main Page (Regs are listed in the Downloads Section).

Direct Link to the PDF Document.

House Committee Approves Supplemental

Yesterday. the House Appropriations Committee approved the $124 billion FY 2007 supplemental spending bill; floor consideration is scheduled for next week. In addition, the Senate Appropriations Committee is scheduled to mark up its version of the supplemental spending bill next week.

The House measure includes $750 million to prevent states from experiencing shortfalls in the State Children's Health Insurance Program (SCHIP) in FY 2007,

The supplemental also provides funding for other domestic items including $4.3 billion for Gulf Coast disaster relief, $500 million for wildfire management, $2.5 billion for homeland security, $1 billion for pandemic flu preparedness,$4.3 billion for agriculture disaster relief and $400 million for low-income energy assistance. The House-passed minimum wage increase and small business tax breaks package is included in the measure.

Senate Budget Committee Approves Budget Resolution

The Senate Budget Committee approved its FY 2008 budget resolution; floor consideration is scheduled for next week. In addition, the House Budget Committee is scheduled to mark-up its version of the budget resolution next week.

The Senate's blueprint creates reserve fund accounts, including one to reauthorize SCHIP at up to $50 billion over five years. Placeholder amendments were approved providing increased funding for health care, health information technology, veterans' benefits, immigration, and child care.

Senate Committee Approves Law Enforcement Measures

Yesterday, the Senate Judiciary Committee approved the COPS Improvements Act of 2007 (S. 368) and a bill  authorizing the Edward Byrne Memorial Justice Assistance Grant program through FY 2012 (S. 231). S. 368 would authorize $600 million to hire school resource, community policing and intelligence-gathering officers (COPS on the Beat Grant Program); $350 million per year for technology grants; and $200 million per year for local district attorneys to hire community prosecutors. S. 231 would simply authorize the Edward Byrne Memorial Justice Assistance program through FY 2012 at its FY 2006 funding level. This program awards grants for criminal justice enforcement, focusing on violent crime and supporting multi-jurisdictional task forces to fight drugs, firearm traffickers, gangs and organized crime.

 

March 15, 2007

Senate Budget Committee To Vote on FY 2008 Budget Resolution

 

The Senate Budget Committee began marking up its FY 2008 budget resolution, with a vote scheduled for today. It would provide $18 billion more in discretionary spending than the president's request. This includes increasing education funding by $6.1 billion, veterans funding by $3.5 billion, community development block grant funding by $807 million, Amtrak funding by $880 million, Low Income Energy Assistance Program funding by $670 million, and renewable energy and environmental protection by $877 million. It would create reserve funds reauthorizing the State Children's Health Insurance Program at up to $50 billion over five years ($15 billion of the $50 billion in SCHIP comes from proposed Medicare savings while the other $35 billion would require the committees of jurisdiction to come up with offsets under "pay-as-you-go" budget rules). It also would provide a $15 billion increase in mandatory agriculture programs for the expiring farm bill.

 

Copies of the chairman's mark and summary are available on the Senate Budget Committee website.

 

House Committee Approves Head Start Bill

 

Yesterday, the House Education and Labor Committee approved a bill to reauthorize Head Start, the Improving Head Start Act of 2007 (H.R. 1429). The bill increases funding for teacher and staff salaries and professional development, expands access to Head Start by to up to 10,000 more children, allows programs to convert portions of their grant for Early Head Start, improves cooperation between Head Start and state and local child care programs to increase full-day and full-year services, improves linkages with the Individuals with Disabilities Education Act, state health, mental health and family services, and revises the application and review processes.

 

March 14, 2007

Medicaid, LIHEAP Changes in House Supplemental

Medicaid. The proposed House supplemental spending bill includes changes to the Medicaid reforms contained in the 2005 Deficit Reduction Act (DRA). DRA gave states flexibility to provide benchmark benefit packages in Medicaid and allowed states to tailor benefits. The supplemental reportedly would limit the secretary of Health and Human Services' authority to approve alternative benefits. It also would give individuals more time to provide citizenship documents when applying for Medicaid, clarify that children born in U.S. hospitals meet Medicaid's citizenship requirement, and allow family planning clinics and certain university clinics to receive drugs from manufacturers at below-average costs.

LIHEAP. The bill would provide $400 million, split 50/50 between formula allocations and non-formula emergency funds. States would be allowed to carry over block grant funds into FY 2008. Use of the funds would be limited to crisis assistance or emergency purposes as defined in the act, including the following (as identified in each state by the governor): a natural disaster, significant home energy supply shortage or disruption, significant increase in the cost of home energy, significant increase in disconnections, significant increase in participation in public benefit programs such as Food Stamps, significant increase in layoffs, unemployment or an event that the governor deems important.

Senate Passes Homeland Security Bill

Yesterday, the Senate passed the Improving America's Security Act of 2007 (S. 4) to implement the remaining recommendations of the 9/11 Commission. S.4 would authorize $3.105 billion over three years for homeland security grant programs, with $1.269 billion for the Urban Area Security Initiative (USAI), $913 million for the State Homeland Security Grant Program (with each state required to receive a minimum of 0.45% of funds) and $913 million for the Emergency Management Performance Grants Program (with each state receiving 0.75% as a base). In addition, an interoperability grant program is authorized at $3.3 billion for five years, and transit security grants are authorized at $3.5 billion. The Law Enforcement Terrorism Prevention Program would receive 25% of the overall funding for USAI and the state homeland security grants program.

The measure now heads to conference with the House version (H.R. 1), which passed in early January. A major issue during conference will be the formula for distributing homeland security grants funds. The House-passed bill establishes a state minimum of 0.25%, with border states receiving a guarantee of 0.45% of the overall funding.

Senate Budget Committee to Mark Up Budget Resolution

The Senate Budget Committee is scheduled to mark up its FY 2008 budget resolution today.  Although details have not yet been released, Senate Budget Committee Chairman Kent Conrad stated that the non-binding blueprint will modestly increase discretionary spending and move from a projected $249 billion deficit in FY 2008 to a $132 billion surplus in FY 2012. It also would project about 3% more in revenues over five years than Congressional Budget Office projections of the president's budget, to be achieved through tax enforcement. In addition, the budget resolution is expected to include an alternative minimum tax patch for two years and may allow for the possible extension of tax cuts set to expire in 2010. Senator Conrad also said that the budget plan will create reserve funds to cover three new initiatives: reauthorizing the State Children's Health Insurance Program at up to $50 billion over five years, providing an additional $6 billion for education programs and providing $3.5 billion more for veterans' programs. The budget resolution will not contain any reconciliation components.

 

March 12, 2007

House Passes Clean Water Revolving Fund Reauthorization

 

Last Friday, the House passed legislation to fund upgrades at wastewater treatment facilities that also includes a provision expanding the scope of federal prevailing-wage requirements. HR 720 would authorize $14 billion over four years for the Clean Water State Revolving Fund.

 

The controversial provision would extend federal prevailing-wage law to wastewater construction projects paid for with non-federal funds, prompting a veto threat from the White House.

 

March 9, 2007

Detail on House Supplemental Proposal

 

On March 8, 2007, Speaker Pelosi and relevant House committee and subcommittee chairs held a press conference to announce a supplemental FY 2007 appropriations proposal for activities in Iraq and Afghanistan, and for other Department of Defense needs. The bill would set a timeline for ending the United States participation in Iraq.

In addition, the bill would provide addition funds for domestic programs, including homeland security needs ($2.5 billion), pandemic flu vaccine purchases ($1 billion), Gulf Coast reconstruction ($2.9 billion),  State Childrens Health Insurance Program (SCHIP) shortfalls in 14 states ($735 million), wildfire suppression ($500 million), the low income home energy assistance program (LIHEAP - $400 million) and a scaled-down agriculture disaster program for farmers who purchase crop insurance ($4.3 billion).

 

House Passes Water Bills


On Wednesday, the House passed the Water Quality Investment Act of 2007 (H.R. 569), which authorizes $1.8 billion in grants for improving sewage systems to prevent overflows. EPA is directed to establish a funding formula allocating to each state a proportional share of the grant funding based on the total needs of the state. The House also passed the Healthy Communities Water Supply Act of 2007 (H.R. 700), which authorizes $125 million in EPA grants for communities to determine alternative methods for enhancing water supplies, such as wastewater reclamation and reuse. The Senate has not considered similar legislation. The Bush administration opposes both bills.

 

March 8, 2007

SCHIP Developments

 

An effort is underway to provide an estimated $750 million to states to prevent federal funding shortfalls in the State Children's Health Insurance Program (SCHIP). The measure is expected to be included in the emergency supplemental that is likely to be considered in the House next week or later. Legislation was also introduced Tuesday by Reps. Barton and Deal to provide shortfall funding. The "Guaranteed Access for SCHIP's Target Population Act" (H.R. 1329) provides $750 million to prevent state shortfalls, but limits the funds to children and pregnant women under 200% of the federal poverty level and further restricts how a state determines eligibility.

 

It is still unclear what legislative vehicle will be used to move a shortfall funding bill in the Senate. Finance Chairman Baucus spoke at a Health Affairs briefing Tuesday about SCHIP funding, saying he was open to all options including the supplemental spending bill. He also outlined his priorities for SCHIP reauthorization and said that a bipartisan bill providing $50 billion in new funding over five years could be expected in the near future.

March 2, 2007

Real ID Update

 

The Department of Homeland Security (DHS) released the proposed regulations for implementing Real ID with a new deadline of December 31, 2009 for states to begin issuing Real ID-compliant licenses and identification cards. States will have to ask DHS for an extension to 2009 and submit a compliance plan before the original May 2008 deadline, but the secretary will grant such requests because the regulations are likely to be finalized less than a year before the original deadline, creating obstacles for states. States will still be required to issue Real IDs by 2013.

 

As part of its implementing regulations, DHS estimates that the cost of Real ID will exceed $23 billion over 10 years. DHS also estimates that Real ID will cost individuals more than $7.8 billion. Federal costs are estimated at $617 million. DHS proposed to partially offset state costs by allowing states to use up to 20% of their state homeland security grant funds to pay for Real ID. State grants for FY 2007 are $525 million, while the proposed budget for FY 2008 calls for a reduction to $187 million.

 

House Committee Passes SAFETEA-LU Technical Corrections Bill

 

Yesterday, the House Transportation and Infrastructure Committee passed H.R. 1195, a bill that makes technical corrections to the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. The bill corrects some of the programmatic errors of SAFETEA-LU, especially with Title V, the research title of the bill. In addition, the bill provides additional funding for the National Surface Transportation Policy and Revenue Study Commission, while extending the deadline for its report to Congress to December 2007.