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Author: Sarah Castro

Reviewed 9/22

What We’re Reading This Week, January 23 – 27

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Here’s a selection of articles the Federal Relations team is enjoying this week.

It’s A What? – A week in to President Trump’s tenure, his Administration has been very active on in the executive action arena issuing Executive Orders and Presidential Memorandum. What’s the difference (not much). Read about the in The Washington Post. 

Working Plan  – New Homeland Security Secretary Mike Kelly has said that for border security more is needed than simply a wall.  Kelly has advocated for growing cooperative efforts with countries as far south as Peru and supports  increased aid for economic development, education and a focus on human rights to combat unauthorized immigration and drug trafficking. Read more in The New York Times. 

Page Down – Trump Administration officials have asked the EPA to remove its climate change page from its website. The page contains links to scientific global warming research and detailed data on emissions. Read more at Reuters. 

Fiscal Solvency – A recent GAO report warned lawmakers that they must take action to trace a broader long-term plan for the country’s finances or the balance sheet will reach a point of instability not seen since the aftermath of World War II. Specifically, the debt-to-gross-domestic-product ratio, an indicator of how much the government is spending compared to economic output, would skyrocket within 15 to 25 years to historic levels at 106 percent — a ratio last held in 1946. Deficits were driven by what appropriators have hammered home in numerous floor speeches in both chambers for years: costs for Social Security, Medicare and Medicaid, as well as interest on the federal debt. And the share of that debt held by foreign entities also increased 9 percent from fiscal 2001 to fiscal 2016, to 39 percent at the end of fiscal 2016. Read the report here. 

Reality Check – Many of the sweeping actions President Trump vowed this week through his executive orders and proclamations are problematic, either because they are impractical, opposed by Congress and members of his Cabinet, or full of legal holes. Read more from the Washington Post.

What’s a Block Grant? – Everything you need to know about block grants, which are at the heart of the GOP’s Medicaid plans. President Donald Trump’s administration made explicit last weekend its commitment to this strategy for turning control of the program to states and capping what the federal government spends on it each year. Read more from Governing. 

First Day ACA Executive Action – On January 20, 2017, Donald Trump was sworn in as President of the United States. True to his word, on his first day in office he issued an executive order addressing the Affordable Care Act. It may not be, however, all that his supporters expected. Read all about it on the Health Affairs blog.

Books Are Up! – Sales of Orwell’s 1984 have skyrocketed in recent weeks. Read more in Bloomberg. 

Administration Regulatory Reform Update

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Last week, White House Chief of Staff, Reince Preibus, issued a memorandum to all executive departments and agencies to freeze new or pending regulations — giving the new Administration time to review them, which is a common practice for any incoming administration.

For any regulations that have yet to be sent for publishing in the Federal Register, the memo asks the agency to not send any regulation to the Federal Register until reviewed by someone selected by the President.

The memo makes an exception for “critical health, safety, financial, or national security matters,” and asks agencies to identify any regulations that can’t be delayed for other reasons.

Recently issued research-centered regulations that could be impacted include:

  • federal policy for the protection of human subjects (Common Rule),
  • Department of Education’s final Rule on open licensing requirements for competitive grant programs, and
  • updates to the Uniform Guidance (including updates to the procurement rule and the micro-purchase threshold).

The Office of Federal Relations will continue to monitor actions coming from the Administration.

Federal Grant Update

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Some initial actions and comments from the incoming Trump Administration have prompted questions and concerns from faculty, researchers, and the media, regarding federal research. Particularly, questions have pertained to Environmental Protection Agency (EPA) grants.

Here is what we know:

  • It is not uncommon for incoming administrations to issue a hold on grants at the beginning of their tenure. The current hold is happening across all agencies, not only EPA. The hold is designed to be an inventory and understanding of what is currently in process at the agency.
  • This will not impact existing awards — they continue. If there are any changes, those changes would be in new awards and new policies. We are halfway through FY 2017, and items already awarded and obligated should expect to receive funds. RFPs not yet out, grants not yet obligated, and FY 2018 grants (because those funds have yet to be appropriated), could see changes.
  • The EPA “freeze” should be resolved by close of business Friday, Jan. 27, when the accounting by the transition team is expected to be completed.

The UW’s Office of Sponsored Programs has information about these issues, including recommendations of what to do with grants in various stages of the process, on its web page under “Announcements.” This page is being vetted through a set of strict criteria.

The Federal Relations team will continue to gather and share information as it becomes available.

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.