Legislative Update

Posted on April 30, 2012October 17, 2012

Congress is in recess this week, returning to work on Monday, May 7^th. Before leaving town last Friday, the House took action on legislation to delay the increase in student loan interest rates. And both chambers continued to move forward on their FY2013 appropriations measures.

FY 2013 Appropriations

While Congress is expected to finalize any major FY2013 spending decisions until after the November elections, it’s already apparent that we will see lean spending plans coming out of both chambers as they continue to work within the constraints of the Budget Control Act (LP 112-25) and also deal with deficit reduction. All of this will force lawmakers to more carefully prioritize spending and likely make tough, and substantial, programmatic cuts in both domestic and non-defense spending in coming years.

Student Loan Interest Rates

The topic du jour last week (and during the recess week) revolves around preventing the increase in student loan interest rates. While there appears to be broad, bipartisan support to prevent this increase, the two parties remain divided on how best to pay for it. On Friday, the House passed legislation that would prevent the 3.4 percent student loan interest rate from doubling in July, but the White House and Democrats are opposed because the measure’s $6 billion cost would be offset by eliminating the Prevention and Public Health Fund created by the 2010 health care reform bill. The fund provides money for programs aimed at preventing tobacco use, obesity, heart disease, strokes and cancer. While both parties oppose allowing the student loan interest rates to return to 6.8 percent, the White House vowed to veto the measure over the proposed repeal of the prevention fund. The Senate is expected to take up their version of the bill when Congress returns from recess next week. That proposal would offset the costs by ending a corporate tax break, which is backed by most Democrats. Senate leaders however, have indicated they will look for a compromise offset that both parties can agree to.

Surface Transportation Reauthorization

Shortly after returning to work next week, Congressional leaders will convene a Senate-House conference committee to negotiate a final measure to reauthorize highway and transit funding and programs. The two chambers are miles apart with the House advocating for a 5-year reauthorization and the Senate promoting a 2-year bill. There are also major differences on how to pay for highway and transit programs. It will certainly be a long, drawn out process that may – or may not – result in a final bill. The current “temporary” authorization runs out in 61 days and will certainly need another extension if Congress cannot come to agreement.

The Office of Federal Relations is tracking several provisions in the proposals that could have some impact on the University’s transit initiatives and the safety enhancements planned for the portion of the Burke Gilman Trail that runs through campus. Additionally, the bill will reauthorize the University Transportation Centers (UTC) program. The UW operates the Region 10 UTC.

Student Loan Interest Rates

Posted on April 23, 2012October 17, 2012

President Obama used his weekly address to call on Congress to prevent student interest rates from doubling in July. He believes that we should be doing everything we can to put higher education within reach for every American because “at a time when the unemployment rate for Americans with at least a college degree is about half the national average, it’s never been more important.” Obama is calling on Congress to act before student loan interest rates double for more than 7.4 million students, adding an average of $1,000 to their debt. Congress has a chance to take action on what should be an area of bipartisan agreement to prevent this unnecessary and damaging increase in interest rates. Watch the President’s address here.

This Week in Congress

Posted on April 16, 2012October 17, 2012

Congress is back in session today after a two-week break for the Easter holiday. Appropriators in both chambers will begin moving FY 2013 annual appropriations bills this week. The House Appropriations Committee on Wednesday will start marking up its spending bills for FY 2013 with a goal of cutting federal spending by a little more than one percent, or $15 billion. Senate appropriators, on the other hand, will begin their markups with a slightly more generous target that would still keep annual discretionary spending relatively flat. Senate subcommittees begin the process on Tuesday with the Commerce-Justice-Science and Transportation-Housing and Urban Development measures. The House Energy-Water subcommittee will meet Wednesday and the Commerce-Justice-Science panel is expected to meet Thursday. Under House rules, the draft bills will be made public 24 hours in advance of the markups; the Senate does not have a requirement for an early look.

Appropriators have yet to announce plans for writing the massive Labor-HHS-Education spending bill, which is always among the last and most controversial funding measures to move. The bill faces an additional challenge this year with the pending Supreme Court ruling on health care reform due in June. House appropriators might wait until after the ruling to move the bill. Meanwhile in the Senate expects the court will uphold the law and plans to write its spending bill assuming health reform will remain intact.

Tuesday

The Senate Appropriations Committee will hold subcommittee markups of its Commerce, Justice, Science FY 2013 spending bill and its Transportation, Housing and Urban Development FY 2013 spending bill.
The Senate Armed Services Committee will hold a subcommittee hearing on the health and status of the Department of Defense science and technology laboratories and enterprise.

Wednesday

The House Appropriations Energy and Water Subcommittee will mark up its Energy and Water Development FY 2013 spending bill.
The House Energy and Commerce Committee will hold subcommittee hearings on budget and spending concerns at the DOE and FDA User Fees 2012: How Innovation Helps Patients and Jobs.
The House Science, Space, and Technology Committee will hold subcommittee hearings on NSF Major Multi-User Research Facilities Management and Growing the Wireless Economy through Innovation.

Thursday

The House Homeland Security Committee will hold a subcommittee hearing on the Department of Homeland Security (DHS) and DOE National Labs: Finding Efficiencies and Optimizing Outputs in Homeland Security Research and Development.
The House Science, Space, and Technology Committee will hold a subcommittee hearing on Impact of Tax Policies on the Commercial Application of Renewable Energy Technology.
The American Chemical Society will hold a Capitol Hill briefing on Cybersecurity and Smart Infrastructure: Ensuring Resilience and Deterrence.

Spending Cuts to be Proposed

Posted on April 2, 2012October 17, 2012

The House and Senate began their two-week spring recess last Friday after passing the House budget resolution for FY 2013. This plan would cut $19 billion from the FY 2013 spending level outlined in the Budget Control Act (PL 112-25) approved by Congress last August. Most of those cuts would come from non-defense discretionary spending (which supports most research agencies), while defense discretionary spending would be increased. The House voted along party lines to approve the budget resolution, while also voting down a number of alternative symbolic proposals.

Even though the House approved budget resolution isn’t likely to receive any consideration in the Senate, its effects will be felt throughout the coming year in the appropriations process as well as in the ongoing debate about how Congress will deal with automatic cuts set to go into effect in January under sequestration. Appropriators in both chambers say they will start marking up their FY 2013 spending bills when they return April 16^th from the two-week recess. The House will be working from the $1.028 trillion overall discretionary spending level for FY 2013 set out in the Republican budget resolution while the Senate is determined to move forward with marking up bills at the $1.047 trillion level set in the Budget Control Act. The differing top-line figures may make it difficult to clear any annual appropriations bills before the end of the fiscal year on September 30^th, and it seems likely Congress won’t finish its appropriations work until after the November elections.

The House approved budget resolution also requires six House Committees to identify spending cuts to meet the top line number identified in that measure. These committees must report to the Budget Committee by April 27^th. The budget resolution outlines a specific savings target for each committee, including the amount of cuts that should go into effect this year and next, over the next five fiscal years, and over 10 years. Specifically, the Agriculture Committee must find $33.2 billion over 10 years, Energy and Commerce must find $96.8 billion, Financial Services must find $29.8 billion, Judiciary must find $39.7 billion, Oversight and Government Reform must find $78.9 billion, and Ways and Means must find $53 billion.

Although the Senate Majority Leader has said that chamber won’t take up a budget resolution this year, senators in both parties are still working on long-term budget proposals. Bipartisan groups of lawmakers in both chambers say they are continuing to work behind the scenes to craft a deficit reduction package based on the fiscal commission’s framework and the work of other bipartisan groups.

The Office of Federal Relations is monitoring these budget negotiations closely and will report new information as it becomes available.