The Week in Review

Posted on June 24, 2011October 17, 2012

Calendar: The House is preparing to begin its Fourth of July holiday recess today and is slated to return July 5, while the Senate remains in session throughout next week before their scheduled recess during the week of July 4th.

Deficit Negotiations Stalled: Attempts by Congress and the White House to broker a budget deal that would allow for raising the debt ceiling stalled Thursday as two key Republican negotiators walked away from the table, blaming the impasse on Democratic demands for tax increases. Debt reduction talks now move up to the highest levels, between President Obama and House Speaker Boehner, as had been expected to occur eventually. In a press conference yesterday morning, Boehner said that to reach an agreement by the end of this month “the president is going to have to engage,” while also adding that “tax hikes are off the table.” Boehner also reiterated that House Republicans would not agree to raise the debt limit “without serious spending cuts and reforms to the way we spend the American people’s money.”

House Science Committee Examines NOAA’s Climate Service: On Thursday this week, the House Committee on Science, Space, and Technology held a hearing to review the Administration’s FY12 budget request proposal to reorganize the National Oceanic and Atmospheric Administration (NOAA) to create a Climate Service. NOAA Administrator Jane Lubchenco was taken to task by the committee chair for her agency’s slow response to committee member’s questions over the past several months. Read more at the House Science Committee web page.

Defense Appropriations Moves Forward: On Thursday, the House began work on its FY12 Defense appropriations bill. Numerous objections were raised by the White House regarding funding levels for various activities, citing insufficient funding for the Defense Advanced Research Projects Agency (DARPA) for high-priority science and technology programs, acquisitions of certain satellites and classified programs, and for the Air Force’s Rockey Systems Launch Program. Additionally, the White House objects to language in the bill that would limit the use of funds to transfer detainees held at the US Naval base in Guantanamo Bay. Floor debate on this bill will resume when the House returns from recess.

Patent Overhaul Approved in House: The House passed a broad overhaul of the US patent system Thursday, after overcoming opposition to changes in provisions related to patent office fees. But the changes will make it harder for the House and Senate to agree on a final compromise on the legislation. The bill would reform how the US Patent and Trademark Office is funded and how it regulates inventions. Despite the ultimate 304-117 victory in the House, the bill has a dim future in the Senate where a handful of Senators have already expressed their opposition to the bill.

FY11 Funding for University Link: The Federal Transit Administration has announced its FY11 New Starts and Small Starts funding. The agency is doling out money to eight existing full funding grant agreements, four full funding grant agreement projects listed as pending, six projects recommended for future full funding grant agreements, and nine Small Starts recommended for funding. Sound Transit’s University Link LRT Extension will receive $110,000,000 as expected.

Progress on Debt and FY12 Appropriations

Posted on June 22, 2011October 17, 2012

FY12 Appropriations

Senate appropriators have been holding off on their FY12 bills, waiting for an agreement on overall discretionary spending to be reached through the ongoing bipartisan debt reduction talks. But because the end of the current fiscal year is just over three months away, they indicated yesterday that the Senate would move forward with their process despite not having a top-line discretionary number. The Senate Appropriations Committee will reveal their first FY12 spending bill next week. The first bill to be considered will be the Military Construction-VA bill. The House version of that bill passed the House on June 14, and the Senate subcommittee has indicated that they will follow the House’s lead and produce a similar bill. The House bill boosts funding for VA programs and benefits, while reducing military construction spending because of a lower need for base-closing funds. Overall discretionary spending is reduced by just $615 million. The Senate subcommittee markup is tentatively scheduled for Tuesday, June 28^th.

In addition to the Military-VA bill, the House has passed two other bills — Homeland Security and Agriculture. On Thursday, the House is set to begin debate on its FY12 Defense bill. Defense is the only House bill slated to get a spending boost over current levels, and might be a likely candidate for quick Senate consideration.

Debt Limit

The bipartisan debt reduction group being led by Vice President Biden meets again today, as leaders in both chambers yesterday said every effort should be made to reach a long-term deal and avoid a short-term increase in the debt limit as Senate Minority Leader McConnell (R-KY) suggested. McConnell believes that a short-term increase in the debt limit might be necessary if a major debt reduction deal involving entitlements cannot be reached before the August 2^nd deadline for raising the debt limit.

Reaching a majority in the House for any increase in the debt limit will be a challenge, which may have factored into McConnell’s contingency planning for a short-term measure as a backup. A number of House GOP freshmen promised they would never vote to increase the debt limit, while many others, along with GOP conservatives, want fundamental changes to dramatically cut the size of government. Negotiators may know by the end of the week whether a deal is possible. Central to that effort is resolving questions regarding revenues and entitlements, with debate over entitlements focused on whether there should be fundamental changes to Medicare and Medicaid as proposed by House Republicans, or whether billions could be saved through various adjustments to the programs, such as raising Medicare co-payments or deductibles.

First FY12 Appropriations Bill Approved

Posted on June 3, 2011October 17, 2012

Appropriations

On Thursday the House passed their FY12 Homeland Security bill, its first FY12 appropriations measure of the year. Democrats have declared the funding levels in the bill insufficient and are particularly unhappy about cuts to homeland security and first responder grants, although some funding to hire/re-hire/retain firefighters was restored by an amendment on Wednesday. Overall, twenty Republicans opposed the bill, mostly conservatives who wanted to cut spending in the bill further. An amendment by Indiana Republican Todd Rokita to cut most accounts across-the-board by 10 percent was rejected, 110-312 – but that’s 110 members that agree that more drastic cuts are necessary.

Also on Thursday the House began debate on its FY12 Military Construction-VA spending bill. There is some controversy with this bill, mostly related to a procedure rule that will allow members to vote on VA funding independent of the Military funding. This could put VA funding in jeopardy as many conservatives want to curtail VA spending. Further consideration of the measure won’t occur until the House returns from its one-week recess on June 13^th.

Finally, the House Energy and Water Appropriations Subcommittee approved its draft FY12 spending measure by voice vote on Thursday. The draft measure reflects the Republican’s highest priorities by supporting Energy Department national defense programs and funding water infrastructure and basic science research, at the expense of applied energy research. Overall, the draft House bill provides $30.6 billion in discretionary spending, $1 billion below FY11 enacted levels and $5.9 billion (16 percent) less than the President’s FY12 budget request. The full committee will mark up the measure when the House returns from recess.

Debt Ceiling

Despite new urgency from top congressional leaders that the debt ceiling dispute should be resolved quickly, rank-and-file lawmakers remain deeply divided over how to do it. Both Democrats and Republicans want to avoid instability in the financial markets with a debt showdown, and most agree that something must be done to curb the nation’s deficit. But after a week of meetings with President Obama and other administration officials, several major roadblocks stand in the way of an agreement, particularly the issue of taxes.

Separate events involving Democrats and Republicans on Thursday illustrated the difficulty that negotiators will have in reaching an agreement to reduce deficits. In a meeting with the President, House Democrats stressed that new revenue must be part of any deal to reduce the deficit and raise the nation’s $14.3 trillion debt limit. They urged the President to ensure that tax hikes on the wealthy and an end to tax breaks for oil companies would be part of any agreement reached with Republicans on debt reduction. Republicans continue to insist, however, that tax increases are a non-starter. Democrats also urged Obama not to give too much ground on spending, particularly on Medicare, where Republicans want to fundamentally restructure the program.

Also this week, freshman Republicans met with Treasury Secretary Geithner and came away from that meeting “unimpressed” that the administration was serious about addressing the nation’s fiscal problems. GOP members said Geithner warned of the consequences of failing to raise the debt limit, but were dismayed that he called for higher taxes to help reduce the deficit and failed to specify how the costs of entitlements such as Medicare should be reduced. Republicans are focused on achieving major deficit reduction through cuts in spending, with a particular focus on Medicare.

The hard line being taken by the two parties prompted another credit rating company yesterday to warn that the United States could lose its top credit rating. Moody’s Investor Services said it may lower the US rating if Congress is unable to raise the debt limit and prevent a default. In April, Standard & Poor’s downgraded its outlook on the US credit rating to negative, saying the path to reducing large budget deficits and growing debt was uncertain.

The appropriations and debt limit situations are closely tied together and are created an environment for a “perfect storm” by August. The strong push by Republicans to cut spending is driving the debate on the debt limit – they simply won’t agree to the debt limit issue until the Administration agrees to corresponding spending cuts. It will certainly be a long, hot summer in DC!

FY12 Energy & Water Appropriations

Posted on June 1, 2011October 17, 2012

The House Appropriations Committee today released the FY12 Energy and Water and Related Agencies Appropriations bill, which will be considered in the Energy and Water Subcommittee tomorrow.

The legislation provides the annual funding for the various agencies and programs under the Department of Energy, including the Office of Science, Energy Efficiency and Renewable Energy, National Nuclear Security Administration, as well as the Army Corps of Engineers, the Bureau of Reclamation, the Nuclear Regulatory Commission, and various regional water and power authorities. The bill released today totals $30.6 billion – a cut of $5.9 billion below the President’s FY12 request and $1 billion below FY11 enacted levels – which brings the total cost of the bill to nearly the FY06 funding level.

Energy Efficiency and Renewable Energy (EERE): The bill provides $1.3 billion total, $491 million below the FY11 enacted level and $1.9 billion below the President’s request. Of note:

Solar Energy: The bill provides $166 million total, $97 million below the FY11 enacted level and $291 million below the President’s request.
Fuel Efficient Vehicle Technologies: The bill provides $254 million total, $46 million below the FY11 enacted level and -$334 million below the President’s request. These funds are used to improve fuel efficiency with better engines, better batteries and engines that burn clean, domestic fuel. The bill also reduces Vehicle Technology Deployment by more than $200 million, a program which expands electric transportation initiatives.
Building Technologies: The bill provides $150 million total, $61 million below the FY11 enacted level and $321 million below the President’s request. These funds are used to research energy-efficient technologies in buildings which account for roughly 40% of all US energy use. The bill also proves no funds for the Race to the Green competitive grant program which incentives streamlined energy efficiency regulations, codes and performance standards through a competitive grant process.
Biomass and Bio-Refinery Research and Development: The bill provides $150 million total, $33 million below the FY11 enacted level and $191 billion below the President’s request.
Weatherization Assistance: The bill provides $33 million total, $141 million below the FY11 enacted level and $287 million below the President’s request.

View the FY12 Energy and Water Appropriations Subcommittee Summary Table here.

Spending and Debt

Posted on May 31, 2011October 17, 2012

Appropriations

The FY12 appropriations process is in full gear in the House with many predicting that work on FY12 spending bills may be completed by December, a few months after the October 1^st start of the new federal fiscal year. The White House-led talks seeking an agreement on raising the debt ceiling are expected to yield an agreement by August between House Republicans and Senate Democrats that will also establish how much to cut appropriations for next year. If that happens, it should smooth the path to completing the job. Until then, there will be months of debate in the House about the level of spending for specific agencies. House leaders intend to put nine of the 12 bills on the floor before the scheduled August recess, and to allow lawmakers free rein to offer amendments.

The House will bring up their first two FY12 appropriations bills to the floor this week, and more spending bills will get marked up in committee. The Homeland Security and Military Construction-VA spending bills are the first two bills to come to the floor, with debate on Homeland set to begin tomorrow. With the appropriations process breaking down completely last year and a final FY11 spending package not being completed until just last month, House Republicans are anxious to restore a semblance of “regular order” to the appropriations process. However, they are doing all of this despite the fact there is not yet any agreement on top-line discretionary spending for the year, which is most likely to be set as part of the White House-led debt reduction negotiations. Republicans are aiming to get nine of the 12 appropriations bills passed by the House before the start of the August recess.

Today, the House Appropriations Committee will mark up its FY12 Agriculture spending bill. Democrats say the GOP-proposed cuts to the Agriculture bill’s food aid programs will harm women, children and the elderly but they will have little ability to reverse those cuts at the mark up. Of the bill’s $125.5 billion in total spending, some 86 percent is mandatory spending for food stamps, child nutrition programs, and farm subsidies. The measure includes $17.2 billion in discretionary spending, about 13 percent below current levels.

Also this week, the House will mark up the FY12 Defense and Energy-Water spending bills. The Defense appropriations subcommittee will meet Wednesday morning in a closed session while the Energy-Water subcommittee meets Thursday.

Debt Limit

Through a largely symbolic vote that may serve a couple purposes, the House will vote today – and reject – a “clean” increase in the debt limit. Today’s vote is intended to demonstrate that the House won’t be able to raise the debt limit unless Democrats and the White House agree to major cuts in federal spending. Republicans have constantly demanded that an increase in the debt limit be coupled with major spending cuts. Although Democrats initially called for a “clean” debt limit hike without any conditions, they now acknowledge that spending cuts must occur and are now negotiating a debt reduction package with their Republican counterparts. Negotiators are working against an August 2^nd deadline, which is when the Treasury Secretary says the debt limit must be raised.