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Trump’s First Executive Actions

True to his word, President Trump has issued an Executive Order (EO) impacting the ACA. First, Trump signed a broad EO giving all federal agencies wide latitude to change, delay or waive provisions of the law that they deemed overly costly for insurers, drug makers, doctors, patients or states. The order also directs agencies to give greater flexibility to states in implementing the health care law.  

Additionally, Trump’s Chief of Staff, Reince Preibus, issued a Presidential Memorandum freezing  agencies from issuing pending federal regulations until the Trump Administration has time to review the pending regs. 

Trump Transition Previews Budget

Staffers for the Trump transition team have been meeting with career staff at the White House ahead of Friday’s presidential inauguration to outline their plans for shrinking the federal bureaucracy. The proposal takes directly from the Heritage Foundation’s FY 2017 budget blueprint and the Republican Study Committee’s (RSC) FY 2017 Budget Proposal.

While the annual President’s Budget Request is important to set the Administration’s policies and agenda. Congress is ultimately responsible for approving a federal budget and appropriating funds.

The Trump budget, which will not likely be officially unveiled until mid-April, would reduce federal spending by $10.5 trillion over 10 years. The preliminary proposals from the White House budget office will be shared with federal departments and agencies soon after Trump takes the oath of office Friday. Also, Trump’s Cabinet picks have yet to be apprised of the reforms, which would reduce resources within their agencies.

The Commerce and Energy departments would see major reductions in funding, with programs under their jurisdiction either being eliminated or transferred to other agencies. The departments of Transportation, Justice and State would see significant cuts and program eliminations.

The Heritage FY 2017 blueprint, which is reportedly being used as a basis for Trump’s proposed cuts, calls for eliminating several “corporate welfare” programs including:

  • the Minority Business Development Agency,
  • the Economic Development Administration,
  • the International Trade Administration, and
  • the Manufacturing Extension Partnership.

The total savings from cutting these four programs would amount to nearly $900 million in 2017.

The Corporation for Public Broadcasting would be privatized, while the National Endowment for the Arts and National Endowment for the Humanities would be eliminated entirely.

At the Department of Justice, the blueprint calls for reducing funding for its Civil Rights and its Environment and Natural Resources divisions and eliminating:

  • the Office of Community Oriented Policing Services,
  • Violence Against Women Grants and the Legal Services Corporation.

At the Department of Energy, it would roll back funding for nuclear physics and advanced scientific computing research to 2008 levels, and would eliminate

  • the Office of Electricity,
  • the Office of Energy Efficiency and Renewable Energy and
  • the Office of Fossil Energy, which focuses on technologies to reduce carbon dioxide emissions.

At the State Department’s , funding for the Overseas Private Investment Corporation, the Paris Climate Change Agreement and the United Nations’ Intergovernmental Panel on Climate Change are candidates for elimination.

Many of the specific cuts were included in the 2017 budget adopted by the conservative RSC, a caucus that represents a majority of House Republicans. It is notable, that the RSC budget plan would reduce federal spending by $8.6 trillion over the next decade.

 

Trump vowed during the campaign not to cut Medicare and Social Security, a pledge that Rep. Tom Price (R-GA), Trump’s nominee to head the Department of Health and Human Services, told lawmakers in testimony Wednesday has not changed.

That said, it could be very difficult to reduce U.S. debt without tackling the entitlement programs. Conservative House budgets have repeatedly included reforms to Medicare and Social Security, arguing they are necessary to save the programs.

 

This proposal is expected to be met with strong opposition by Democrats.
The Office of Federal Relations will continue to update on this issue.

Inauguration, Confirmation Hearings, Oh My!

The House and Senate are back from the long weekend recognizing the late Civil Rights leader, Rev. Martin Luther King, Jr., and already Congress is at work — though arguably the politics didn’t stop this weekend.

The Senate is gearing up for a second round of fights over President-elect Donald Trump’s Cabinet nominees as Republicans race to clear his picks ahead of Friday’s Inauguration of the 45th President.

Eight nominees are heading to Capitol Hill this week to face what is expected to be an hours-long grilling from lawmakers. Democrats face an uphill battle to block any of Trump’s picks, which require only 50 votes to clear the Senate.  While Democrats have not publicly said they would block nominees from getting confirmed quickly, they can use procedural levers to drag out a nomination for days and have stressed that a nominee’s paperwork must be complete — lawmakers need enough time to review it and ask follow-up questions.

Highlights include:

On Tuesday, Rep. Ryan Zinke (R-MT) and Betsy DeVos, Trump’s picks for Interior and Education, respectively, will both get hearings.

On Wednesday, hearings for Wilbur Ross, Trump’s Commerce secretary; Tom Price, his Health and Human Services pick; Scott Pruitt, who has been tapped to lead the Environmental Protection Agency (EPA); and Nikki Haley, named to be U.N. ambassador.

On Thursday, former Texas Gov. Rick Perry, tapped to lead the Department of Energy, and Steve Mnuchin, his pick for Treasury, will get hearings.

Trump’s Inauguration is three days away. The Washington Post has a good article on what to expect as well as a (growing) list of Members that won’t attend.

Price Confirmation for HHS Slips to Februrary

Senator Lamar Alexander (R-TN), Chairman of the Health, Education, Labor and Pensions (HELP) Committee, announced that the actually confirmation vote for Rep. Tom Price (R-GA), who is the Trump nominee for Secretary of Health and Human Services (HHS), will not occur until mid-February.

The HELP Committee  that will hear from Price on January 18, and the Senate Finance Committee is expected to hear from Rep. Price soon after, but the date has not yet been set. The Senate  Finance Committee has primary responsibility for the HHS nomination, since it has jurisdiction over taxes and entitlement programs like Medicare and Medicaid.

A mid to late February nomination means that Price and HHS could not present the Trump Administration plan to repeal-and-replace Obamacare until the beginning of March, at the earliest.

Senate Passes Budget with ACA Repeal Instructions

Early Thursday morning, Senators voted 51-48 to adopt the FY2017 budget resolution, with Senator Rand Paul (R-KY) casting the only Republican vote against it. With just 51 votes, the Senate moves forward with plans to repeal the ACA while avoiding a filibuster from Senate Democrats. Ultimately, the Senate considered 19 amendments before the final vote — and stymied each one, mostly through procedural votes.

The key amendment of the vote-a-rama was an amendment offered by Senator Bob Corker (R-TN), who was joined by other moderate GOP Senators, would delay an initial deadline to write legislation to repeal the 2010 health care law,. The amendment was ultimately withdrawn without a vote.

The Corker Amendment would have pushed back the Jan. 27 deadline for four House and Senate committees to write legislation to repeal the health care law, the sole purpose of the budget resolution under consideration. A vote on the amendment would have been a key indicator of where Senators stood on a growing debate among Republicans about how quickly Congress should repeal the law, especially without a clear replacement ready to go.

The FY 2017 budget resolution includes reconciliation instructions with the purpose of repealing the health care law, which would occur through separate legislation.