Later in the week, the House takes up a bill that would reauthorize the Violence Against Women Act (VAWA). The chamber also considers the FY2013 defense authorization.

The Senate resumes consideration of a House reauthorization of the Export-Import Bank. The measure stalled last week in a dispute about offering amendments.

Appropriators in both chambers continue work on FY2013 spending bills. The House Appropriations Committee marks up Homeland Security and Military Construction-VA draft spending bills.

                          

The democratic legislation would cover the $6 billion cost of preventing the interest rate increase by eliminating a corporate tax loophole that allows the wealthy to pay less in Social Security and Medicare taxes.  Republicans prefer a measure similar to the House-passed bill, which would offset the cost of the interest rate cut by eliminating a fund in the 2010 health care overhaul that covers prevention and public health.

President Obama has made a campaign issue out of the bill because interest rates on Stafford loans will jump to 6.8 percent from 3.4 percent if Congress doesn’t act by July 1^st.

UPDATE:  The Senate just voted to blocked the bill to prevent doubling of the student loan rates.  Stay tuned…

                          

This afternoon, the House Budget Committee will mark up two bills:  The Sequester Replacement Act of 2012 (HR 4966) and The Sequester Replacement Reconciliation Act of 2012.  Both measures aim to replace sequestration, the mandatory cuts scheduled to begin in January 2013.  The first bill would stop sequestration from happening, while the second would outline a series of cuts to entitlement programs such as health care and food stamps that would replace the cuts to discretionary spending expected through sequestration.  The full House is due to pass the package late in the week likely along partisan lines.  However, the safe bet is Congress won’t reach agreement on how to deal with spending priorities until after the elections. 

Meanwhile, on Tuesday the Senate is scheduled to debate a bill to keep interest rates on federally subsidized student loans at 3.4 percent for one more year, instead of increasing to the previous amount of 6.8 percent.  The House passed a similar bill a week ago, but the two chambers differ on how to pay for the extension.  In a sign of their desire to downplay the partisan tensions, Senate Republicans are expected to help Democrats reach the 60 votes needed to overcome a procedural hurdle to bringing the measure to the floor.  

Tuesday also marks the formal launch of a House-Senate conference to write a surface transportation reauthorization bill.  If conferees can’t come to an agreement on the bill before the November election, then chances are good the bill just won’t get done this year.  And that will mean starting over from scratch early in 2013.  The biggest hurdles include the length of reauthorization, policy riders approving the Keystone XL pipeline and blocking EPA’s authority to regulate coal ash, and how best to pay for the cost of highway and transit programs around the country.  This bill reauthorizes the University Transportation Centers; the UW operates one of these centers for USDOT Region 10.

Also this week, the full House is scheduled to debate the FY 2013 Commerce-Justice-Science spending bill, which includes funding for NOAA and the Office of Science and Technology Policy.  House Rules Committee meets at 5:00pm today to write the spending bill’s rule, and it will hit the floor sometime later in the week.  This will be the first FY 2013 appropriations bill to be approved in the House, but differences over spending levels make it likely that both chambers won’t agree on most or even all of its spending bills until after the elections.  But by sending the measures through committee and to the floor in each chamber, leaders are at least offering a starting place for those year-end negotiations.  Congress has missed the statutory September 30^th appropriations deadline for more than a decade, instead relying on continuing resolutions to keep the government from shutting down until the final bills are cleared and signed by the President.

                          

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.

                          

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.

                          

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.

                          

The Senate votes on a motion to invoke cloture on an oil and gas tax preference repeal measure and resumes consideration of its bill on tax rates for high-income earners.

If both chambers can agree on the transportation extension, they will likely leave town this afternoon to begin their 2-week recess period.

In other action in DC, the Supreme Court has concluded oral arguments on the constitutionality of the Affordable Care Act.  They will now diliberate behind closed doors and offer their ruling sometime in June.

                          

The budget resolution will be considered on the House floor next week, the last week of work before a two-week congressional recess period.

                          

Appropriations:  Appropriators in both chambers will hear from a series of Cabinet officials and agency leaders throughout the week, continuing a busy schedule of hearings that have touched on the administration’s FY 2013 budget request as well as its policies.  Among the officials set to testify before Appropriations subcommittees this week are U.S. Ambassador to the United Nations Susan E. Rice, Commerce Secretary John Bryson, Small Business Administration Administrator Karen G. Mills, National Institutes of Health Director Francis S. Collins, NASA Administrator Charles F. Bolden Jr., Housing and Urban Development Secretary Shaun Donovan, and Education Secretary Arne Duncan.