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Category: 2014 UW Federal Agenda

Senate Reports Student Loan Progress

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Senate Democrats, Republicans and the White House are reporting progress in negotiations to a student loan interest rate fix. A group of Democratic senators, including Jack Reed RI), Joe Manchin III (WV), and Elizabeth Warren of Massachusetts, along with independent Angus King (ME), have been conferring with Senate Republicans over the past 24 hours.

The plan, which is broadly based on the president’s budget proposal, may be finalized as soon as this week, according to one of the principal negotiators. All that is known at this time is that the proposal calls for shifting from the current 3.4 percent fixed interest rate to a market-driven variable interest rate. While the White House, including Education Secretary Arne Duncan and chief economic advisor Gene Sperling, have been kept in the loop about the negotiations, there is no word that the Senate is talking to the House.

Meanwhile, the House continues to debate both the Farm Bill and an abortion measure.

 

House Proceeds on Farm Bill as White House Threatens Veto

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The House will begin consideration of the Farm Bill (HR 1947) today and finish consideration on Thursday. While the House Rules Committee is still determining which amendments will be made in order, 220 amendments have been submitted to the Rules Committee.The House Rules Committee has proceeded with a rare two day consideration of the rule to determine which amendments should be made in order. The bulk of these amendments pertain to the SNAP program.

Continue reading “House Proceeds on Farm Bill as White House Threatens Veto”

House Proceeds on Farm Bill

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This week, the House will consider its version of the Farm Bill (HR 1947) to authorize USDA programs for five years. The controversial measure is expected to be considered for the bulk of the week.

Where the Senate passed a bipartisan Farm Bill earlier this year by 66–27, with 18 Republicans voting in favor, the House measure — and the House generally being more polarized — is facing a much more controversial bill. Provisions of contention include:

  • the bill’s new dairy program that would provide insurance to milk producers and includes a supply management plan to reduce price-depressing dairy surpluses,
  • a limit of $40,000 per person per year in premium subsidies or an elimination of premium subsidies to farmers with an adjusted gross income of more than $250,000,
  • $20.5 billion in reductions over 10 years to the Supplemental Nutrition Assistance Program (SNAP) program, and
  • changes to the crop insurance program.

Like the Senate bill, the House measure would end $5 billion a year in direct payments made to farmers and landowners based on the past crop production history of qualifying acres. Part of the savings from ending direct payments would be used to create a hybrid of insurance-like plans and reference, or target, prices to help farmers protect against price drops. How this program is changed is controversial to both environmental and fiscal conservative groups.

No farm bill would mean that there are no changes to the SNAP and other programs that conservatives believe should be changed. Thus Republican leadership are encouraging Members to vote for the reauthorization despite any flaws with the bill.

As previously discussed, the House reauthorization includes most of higher education’s many requests reauthorization requests for the NIFA. It House bill also provides mandatory funds for three programs administered by NIFA. Although major floor amendments to the Research and Extension Title (Title VII) of the bill are not expected at this time, it is unlikely there will be no amendment to the Research Title.

UW’s College of the Environment receives USDA and NIFA funds, and the Office of Federal Relations is tracking the progress of the Farm Bill closely.

 

Federal Update

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Congress has just two weeks before the July 4th recess week to tackle several major legislative issues. This week, the House will try to pass a five-year farm bill that contains controversial dairy policies and cuts to food stamps. It will also revive the abortion debate over a bill to ban certain abortions. In the Senate, appropriators will decide allocation levels for their twelve FY14 spending bills, and the full Senate will look for a compromise on border security that could improve prospects for immigration reform legislation (S 744).

Both the House and Senate will also continue to debate the best way to deal with student loan interest rates and the rates for subsidized Stafford student loans is scheduled to increase from 3.4 percent to 6.8 percent on July 1st. There are several proposals out there but none that have the support necessary to get approval in both chambers.

House Tries to Force Vote on Student Loans

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House Democrats are attempting to force a floor vote on a two-year extension of the current interest rate for federally subsidized student loans and avert a scheduled doubling of the rate on July 1, 2013.

They hope to file a discharge petition if they get the support of a majority of members. This would force a vote on a HR 1595 that would freeze the current 3.4 percent interest rate on the subsidized portion of Stafford loans for two years while Congress negotiates a permanent solution. It’s similar to a Senate bill (S 953) that last week fell short of the 60-vote threshold needed for an up-or-down floor vote in that chamber.

House Republicans have declined to bring HR 1595 up for consideration and assert that they already passed their own plan (HR 1911) that would shift the fixed rate to one tied to the 10-year Treasury bill plus 2.5 percent. The White House has threatened a veto of that measure, saying it could end up costing borrowers more and allow the rate to fluctuate for the life of the loan.

With just 16 days before the rate hike is set to begin, we are tracking the discharge petition to see how the WA state delegation members respond. As of yesterday, it had 150 signatures including those from Reps. Suzan DelBene (D-1st), Denny Heck (D-10th), Derek Kilmer (D-6th), and Jim McDermott (D-7th).