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.

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.

TUESDAY, June 18

Senate Appropriations
Fiscal 2014 Appropriations: Agriculture
Subcommittee Hearing
10 am, 192 Dirksen Senate Office Building

Senate Budget
Fiscal 2014 Budget: Department of Education
Full Committee Hearing
10:30 am, 608 Dirksen Senate Office Building

House Appropriations
Fiscal 2014 Appropriations: Energy and Water Development
Subcommittee Markup
10:30 am, 2362-B Rayburn House Office Building

House Science, Space, and Technology
DOE Science and Technology Agenda
Full Committee Hearing
10:15 am, 2318 Rayburn House Office Building

WEDNESDAY, June 19

House Appropriations
Fiscal 2014 Appropriations: Transportation-HUD
Subcommittee Markup
11 am, 2358-A Rayburn House Office Building

THURSDAY, June 20

House Veterans’ Affairs
Education for Veterans at Higher Education Institutions
Subcommittee Hearing
10 am, 334 Cannon House Office Building

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.

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 1^st. There are several proposals out there but none that have the support necessary to get approval in both chambers.

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The Office of Science and Technology Policy advises the President on the effects of science and technology on domestic and international affairs. The office serves as a source of scientific and technological analysis and judgment for the President with respect to major policies, plans and programs of the Federal Government.

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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.

A copy of the CBO report can be found here.

The CBO is a nonpartisan agency created to produce independent analyses of budgetary and economic issues to support the Congressional budget process.

The Office of Federal Relations is continuing to monitor this issue and will provide updates as available.

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.