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Category: Pure Politics

OMB Director Mulvaney Pushing for Sanctuary City Language in FY2017

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OMB Director Mick Mulvaney is pushing House lawmakers to include language in the FY2017 omnibus appropriations bill to restrict federal funding grants for cities that do not enforce federal immigration policies. The goal is to bring the House Freedom Caucus on board with a government funding bill.

Such a provision, known as a rider, would put the already delicate negotiations under further strain, as Congressional Republicans already struggle to deal with the Administration’s supplemental request to begin building a border wall. A rider prohibiting federal funds from going to sanctuary cities would guarantee zero Democratic support.  

Despite recent changes to the Senate rules regarding confirming Supreme Court Justices, the Senate will need 60 votes to move forward with any appropriations bill and Senate Republicans are only 52 votes. 

When Congress returns on April 25th from its two-week recess for Passover and Easter, it will have 4 legislative days to pass some vehicle (an omnibus or another CR) for FY2017 funding or risk a shutdown.

Stay tuned.

House Committees Mark Up ACA Repeal

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Mark up for both the House Energy and Commerce (E&C) and House Ways and Means (W&M) committees will happen this morning beginning at 10:30 am. Both committees will consider the bills until they’re done and each committee is expecting around 100 amendments per committee. Highlights of the bill are below . 

Watch the W&M hearing here. 

Watch the E&C hearing here. 

Big Items:

  • It would convert federal Medicaid financing to a per capita cap beginning in FY 2020 based on FY2016 enrollment.
  • It would reduce eligibility from 138% to 100% of FPL. 
  • It repeals all ACA taxes except for the Cadillac tax, which is delayed until 2025.
  • It repeals Medicaid DSH cuts for non-expansion states beginning in 2018 and for
    expansion states in 2020. Expansion states will not absorb cuts for DSH across all states. Rather,
    the cuts will be divided across states, and expansion states will absorb only their share in 2018
    and 2019.
  • It would retain coverage requirements like preexisting conditions, dependents up to age 26, preventative coverage, and prohibition on lifetime and annual limits.
  • Tax credits to purchase coverage are reduced. 
  • It would repeal of the individual mandate (but insurers may charge a 30 percent higher premium for one year for individuals returning to the health care market after having been uninsured.

House and Senate Consideration

The House E&C and W&M mark up is today. After that, both parts will have to go to the House Budget Committee to be “married together” and more changes can be made. House Budget consideration could be as soon as Friday depending on when E&C and W&M finish. House Leadership will likely try to put the bill up for full consideration by next week. 

From there, it will go to the Senate.  The Senate will attempt to pass this via the Senate Budget Reconciliation process, which means that the Senate will consider this via a straight up or down vote — 60 votes are not needed. However, whatever the House passes, the Senate will change to conform to Reconciliation rules, so presumably McConnell can change the legislation enough to pacify some of these Senators and/or pick up Democrats like Senator Joe Manchin (D-WV), who represents a state where Trump is very popular. 

There are restrictions in what the Senate can considered via Budget Reconciliation. Namely, there is a restriction called the Byrd Rule, which means, in overly simplistic terms, provisions considered in a budget bill have to be related to cost or spend money; they cannot legislate. Why is this important? There are items in the House draft, such as Section 103 in the E&C draft (the provision defunds Planned Parenthood) that will be struck from the Senate’s version by virtue of the fact that these provisions legislate. 

While officially, the Senate should do as the House and send the bill to the companion Senate committees (HELP, Senate Finance, and Senate Budget), there is a push to have McConnell move this straight to the Senate Budget Committee or Senate Floor. Regardless, this legislation will move quickly in each legislative body. 

The goal is to have the whole bill passed and signed before Congress leaves for a two-week Easter Recess on April 7th. 

In the mean time, the Congressional Joint Committee on Tax has estimated this will cost $500 B over the next 10 years due to all of the ACA taxes repealed — all ACA taxes are repealed but for the the Cadillac Tax, which is delayed until 2025. There still is no CBO score, which would include an accounting of all revenue lost as well as the number of people losing coverage. A CBO score isn’t expected until after the measure is considered by the House. 

Politically

Conservative political groups are blasting the measure already. The Club for Growth, Heritage Action, FreedomWorks, and Americans for Prosperity have all been very critical of the measure and have the ear of conservative Members. Other groups, such as AARP, have also come out against the bill. 

The Office of Federal Relations will continue to track the legislation and continue to provide updates.

Another Tough Night in the Senate, Confirmations Roll On

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During the second long night of debate (Democrats having debated the DeVos vote all night long), the Senate, which is normally very collegial and staid, voted to silence Senator Elizabeth Warren (D-MA) on Tuesday evening during her her speech on Senator Jeff Sessions (R-AL)’s nomination for Attorney General. Senator Warren was reading a letter from Mrs. Corretta Scott King, late wife of Rev. Dr. Martin Luther King Jr., who wrote in the 1980s in opposition to then Senator Session’s nomination to a federal judgeship. 

The Senate voted 49-43 that Warren violated chamber rules against impugning a fellow Senator after during her speech in opposition to the Sessions nomination.

Sessions is expected to be confirmed as the next attorney general at some point today but the vote could come as late as this evening if Democrats use all of the debate time.

Senate Democrats are expected to continue their tactics of using all the debate time, which results in grueling all night debates, with the remaining Cabinet appointees.

Trump Issues Memos on TPP, Federal Hiring Freeze, and US Foreign Aid

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President Donald Trump signed three presidential memos on Monday freezing federal hiring, withdrawing the US from the TPP, and banning US foreign aid from performing or promoting abortions.

First, President Donald Trump moved Monday to make good on a campaign promise to shrink the size of the federal government, issuing a memo to freeze federal hiring. The military was exempted from the memo’s constraints.

Second, President Trump issued a memo to withdraw the United States from the Trans-Pacific Partnership. The move fulfills one of Trump’s signature campaign pledges to get out of the sweeping 12-nation trade deal, which he once called “a rape of our country” and said would hurt US jobs.

Third, President Trump issued a memo that calls for the reinstatement of a policy to prevent the recipients of American foreign aid from performing or promoting abortions. The action comes the day after the anniversary of Roe v. Wade. The memo would prohibit NGOs that receive federal funding – including health care providers or organizations – from providing or promoting abortion or from advocating for abortion laws abroad.

On Friday, immediately following President Trump’s inauguration, Trump’s Chief of Staff, Reince Prebus, issued a Memoranda instructing the heads of federal departments and agencies to stop advancing regulations until Trump appointees are able to review them. The memo was issued by Priebus is typical when a new party takes the White House. The memo is in many ways identical to one that then-White House Chief of Staff Rahm Emanuel sent on Jan. 20, 2009. 

Priebus’ memo made exceptions for emergency situations and other urgent health, safety, financial or national security matters allowed by the Office of Management and Budget. It also makes exceptions for regulations implemented to meet a statutory or judicial deadline. 

Impacts from that freeze are far reaching and include:

  •  The Housing and Urban Development Department suspended the mortgage insurance premium rate reduction scheduled to take effect later this month.
  • The Education Department rule to forgive student loans of borrowers if they were defrauded by their college could be delayed. The rule was finalized in October but would not go into effect until July. The department has also not finalized a proposed rule meant to increase state officials’ oversight of online college programs within their state. The department estimated the rule would affect 5.5 million students.
  • The Labor Department’s contentious fiduciary rule, opposed by Republicans, has been finalized but will not go into effect until April. It could be blocked by the memo. The rule would require retirement investment advisers to put the best interests of their clients before their own interests.

  • USDA has stalled a final rule published Thursday setting animal welfare standards for poultry and livestock. It was scheduled to take effect March 20, with portions phased in through 2018. The rule is meant to enable the Agriculture Department to certify products as organic. The proposal has divided the poultry industry, with some producers calling the requirements excessive and unnecessary.

More Confirmation Hearings, Republican Retreat

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It’s a busy short week for Congress. House and Senate Republicans head to Philadelphia this week to begin sorting out fiscal priorities for the coming year in the party’s annual retreat. 

The retreat should lay out the first 100 days game plan for the Administration and Congressional Republicans and could lay the groundwork for setting fiscal priorities in the first year of the Trump Administration.

The Government Accountability Office (GAO) warned Congress in a report last week that the country is headed toward a fiscal train wreck. That’s even before any new spending programs or tax cuts are considered. Soaring costs for entitlement programs, from an aging population and rising health care costs, will combine with increasing interest payments to push the federal debt to record levels, the GAO said.

Federal debt as a share of the economy reached 77 percent last year, compared to the historical average since World War II of 44 percent. Without a change in policy, the ratio will exceed its historic high of 106 percent within 15 to 25 years.

Also, welcome to the first week of Congress with President Trump in the White House. Congressional leaders from both parties will meet with the new president at the White House today for a 5 p.m. reception. 

The House will have a light week of mostly suspension bills. The only non-suspension bill the House will vote on next week is HR 7, the No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2017.  The measure, sponsored by Rep. Chris Smith (R-NJ), would prohibit federal funds, including those provided to the District of Columbia, from being used for abortions or for health benefits that cover abortions. The House has voted on a version of the bill in prior years as part of Republicans’ sustained targeting of Planned Parenthood.

The Senate continues to work on the confirmation process. Senate Democrats are demanding paperwork and additional time to question the remaining nominees, but truly all they can do is slow down the process. Up this week are Rep. Mike Pompeo (R-KS),who is up for CIA director, Rep. Tom Price (R-GA), who is up for Secretary of HHS and will appear before Senate Finance for another chance to defend ACA repeal, and Rep. Mick Mulvany (R-SC), who is Trump’s pick for White House budget director. Rep. Mulvaney gets a full day on Tuesday at two confirmation hearings: a morning hearing by the Senate Budget Committee and an afternoon examination by the Senate Homeland Security and Governmental Affairs Committee.