Late yesterday, the White House issued veto threat of the Farm Bill via a Statement of Administrative Policy (SAP). A link to the SAP can be found here.

The Office of Federal Relations will continue to monitor HR 1947 as the House proceeds with measure.

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.

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).

The bill authorizes $638.4 billion for the Pentagon and defense-related programs for FY 2014, including $85.8 billion for the war in Afghanistan and other overseas contingency activities. The bill’s authorization for regular defense funding is roughly equal to the president’s request but about $50 billion more than the projected post-sequestration cap for defense pursuant to the 2011 Budget Control Act. It authorizes $8 billion for the F-35 Joint Strike Fighter and requires the development of a new missile-defense site on the East Coast that the Pentagon does not want. It also bars the use of funds for planning any future rounds of military base closings, authorizes funds for new construction at the Guantánamo Bay detention center that the president wants to close and establishes new procedures to combat sexual assault in the military.

On June 11th, the White House issued a veto threat of the measure as it was currently written. The House Armed Services Committee passed the legislation on June 5th.

The House Rules Committee has approved a structured rule on Wednesday, which limits the amount of amendments that can be considered during the Floor debate. There will be 172 amendments (70 Republican, 68 Democratic, and 38 bipartisan) considered for 10 minutes each. Nearly 300 amendments were submitted to the House Rules committee to be offered during the Floor debate. The rule makes in order a number of amendments which address controversial proposals, ranging from the Guantánamo Bay detention center to overall spending levels that dramatically exceed the caps set by sequestration.

The House will begin consideration at noon today. Rep. Adam Smith (WA) is the Ranking Member of the House Armed Services Committee and will manage the bill for the Democrats.

The Office of Federal Relations will continue to monitor the progress of the bill.

Today in the House: The chamber is scheduled to begin general debate on a $638.4 billion defense authorization bill (HR 1960) for FY14 that includes funding and/or language for three of UW’s requests: (1) $15 million for awards to academic medical institutions for reconstructive transplants; (2) $15 million for Navy research vessels (to help with the RV Tommy Thompson); and (3) language promoting the National Marine Renewable Energy Centers for ocean renewable energy demonstration activities at or near DOD facilities (tidal energy).

FY14 Appropriations Update: Senate Republican appropriators appear ready to oppose any measures written by Democrats that exceed the discretionary spending cap set by the 2011 deficit reduction law. Next week, they will likely reject a plan from Appropriations Chairwoman Mikulski (D-MD) that would divide up $1.058 trillion among the committee’s dozen annual bills. The Senate plan is about $91 billion higher than the overall level set by House Republicans. Ironically, both plans would trigger a new round of across-the-board spending reductions under sequester because they violate the caps set by the 2011 law (PL 111-25). But the House GOP plan busts the caps in defense and other security measures while the Senate is expected to bust the caps in both defense and non-defense (domestic) bills. All of this is leading to a big fight on spending, which will certainly culminate in a continuing resolution (CR) before the federal fiscal year ends September 30^th.

Title VII of bill, as passed by the Senate this evening, includes most of the reauthorizations and programmatic “tweaks” higher education sought with respect to research, extension, and higher education programs administered by the National Institute of Food and Agriculture (NIFA). It also includes mandatory funding (not subject to annual appropriations) for five NIFA-administered programs and establishes a new Foundation for Food and Agriculture Research with $200 million in mandatory funds for this new 501(c)(3) organization.

For additional information about the Senate bill, see: www.land-grant.org/reports/2013/CLP/05-16.htm

The House is expected to consider H.R. 1947, the Federal Agriculture Reform and Risk Management Act of 2013, later this month. Both House Major Leader Eric Cantor and Speaker John Boehner have expressed their willingness to bring the Farm Bill to the floor under a rule that will permit spirited debate. The Speaker issued a news release today, encouraging House members to move the bill ahead saying: “If you have ideas on how to make the bill better, bring them forward. Let’s have the debate, and let’s vote on them.”

The House bill 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, the situation is extremely fluid. There are additional provisions involving NIFA-related proposals (as agreed upon by the BAA’s Committee on Legislation and Policy) that are being monitored for inclusion on the floor or later in the process depending on the situation.

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

FY14 Appropriations: Last week the House passed its first two FY14 spending bills and should move another two by the end of this month. The House passed the Military Construction-VA and Homeland Security spending bills despite two veto threats, and Senate appropriators are set to mark up funding measures in the coming weeks. But the two chambers are operating off vastly different top-line budget numbers — given that the House and Senate haven’t come close to reaching a budget deal — meaning the measures may not come to the Senate floor and setting the stage for another stopgap spending bill this fall. At this point in the process, it appears that the House wants to pass the defense-related bills up front, leaving the later bills to be rolled up into a continuing resolution (CR) later in the year.

House appropriators are set to move two additional spending bills this week: Defense and Agriculture. House GOP leaders expect the bills on the floor before the July Fourth break. If those bills move through committee and pass the floor as expected, the House will have passed a quarter of its annual spending bills by the Fourth of July. The Senate, meanwhile, may not approve any of their spending bills before the break.

Debt Limit: Republicans continue to demand concessions in the form of deficit-reduction measures in return for increasing the government’s borrowing limit. Discussions are ongoing and there is still time to come to an agreement as the debt limit may not need to be addressed until this fall.

The Chamber was technically voting to invoke cloture on motions to proceed to consideration on the measure. Both bills needed 60 votes in order to proceed to debate.  As expected, both bills of the competing measures failed to reach the 60-vote mark.

S 953 (Reed-Harkin-Reid) received a vote of 51-46.

S 1003 (Coburn-Alexander) received a vote of 40-57.

The House is also in at 9:00am, with votes expected between 11:00am and 1:00pm on the Homeland Security Appropriations Act. The White House has threatened a veto, stating Congress shouldn’t consider spending bills until the House and Senate agree on an overall budget framework.

Later this afternoon, Senator Frank Lautenberg’s (D-NJ) casket will arrive at the East Senate Steps of the Capitol. A Color Guard ceremony will be held, and then Lautenberg will lie in repose on the Lincoln catafalque in the well of the Senate. Senators and staffers will get a chance to pay their respects. Reporters will have access to the press gallery of the Senate Chamber, and members of the public will have an opportunity to pay respects from the gallery.

Although it is not guaranteed to be considered as an amendment to the Farm Bill this week, the Senate will likely hold side-by-side votes on Reed’s plan and a House-passed Republican measure (HR1911) that the House passed last week which would peg the interest rates to the 10-year Treasury note. Each vote would require a 60-vote threshold for passage. It is expected that both measures would likely fail, thus increasing the pressure on the sides to develop a compromise.

Last Friday, Obama has blasted the House-passed bill, saying the legislation could saddle students with more debt than if rates are allowed to double to 6.8 percent on July 1, as scheduled.

The Office of Federal Relations will continue tracking this issue as it continues to develop.