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Compromise on Cures Heads to House

The House Rules Committee has noticed that 21st Century Cures will be considered next week. The package is expected on the House floor on Wednesday, November 30. The legislation is expected to be added as an amendment to an existing bill (H.R. 34) to allow for expedited action in the Senate. 

The House Rules Committee’s summary memo is 44 pages. The bill text is just under 1,000 pages. The package contains major provisions in the Cures and Senate Innovation packages, and the Mental Health Crisis Reform Act of 2016, (which includes Sections 9031 and 9032 on college mental health training and services grants and establishes interagency working group on mental health).

Generally

NIH is reauthorized until 2020 and the bill includes provisions intended to address the regulatory burden imposed on researchers, among other provisions. Rather than establish mandatory funding increases for NIH, appropriators would have to release (appropriate) funding each year to the Office of the Director.  The bill establishes a similar mechanism providing $500 million for initiatives at FDA for FYs 2018-2026, and $1 billion for the Secretary to provide to states in FYs 2017 and 2018 for opioid abuse prevention and response efforts.

There are limitations to the general funds going to the office of the Director. The bill also establishes an “Innovation Projects” account for specific initiatives at NIH and FDA, which are special limitations on the general appropriations going to the Office of the Director. For NIH, the bill provides a total of $4.796 billion for FYs 2017-2026 to the NIH director, including $1.4 billion for the Precision Medicine Initiative, $1.564 billion for the BRAIN Initiative, $1.802 billion for cancer research, and $30 million for clinical research to further the field of regenerative medicine using adult stem cells. 

The funding for the Innovation Fund is discretionary, but due to the phrasing in the legislation, monies the Innovation Fund does not count against the appropriators caps. However, the language essentially says that appropriations from the account are subtracted from the discretionary budget authority.  What’s more important is that both CBO and the Administration (the OMB specifically) agree that spending from the Innovation funds do not count against the caps and the language works the way described below. The money will be put in a specific fund every year for the appropriators to use specifically for NIH, FDA, Cancer Moonshot, etc. In lay terms, the funds can only be used for these purposes and every dollar must be used in the next 10 years. 

There are significant inclusions and some noticeable absences including:

  • Section 2034 – Reducing Administrative Burden for Researchers (p 66). This section contains several provisions to reduce administrative burdens on grants, including subrecipients, financial conflict of interest reporting, and reducing burdens on animal care and use in research. 
  • Section 202 – Supports young, emerging scientists by prioritizing policies and programs (p. 45). FY 2017 appropriations includes funds for a national Academies of Science study on improving opportunities for new researcher; and Strengthens NIH’s existing loan repayment programs by increasing the yearly loan repayment amount from $35,000 to $50,000 and streamlining the loan repayment categories.

The revised draft also includes bipartisan, House-passed legislation, the Helping Hospitals Improve Patient Care Act of 2016 (H.R. 5273), that contains several provisions related to socioeconomic status (SES) adjustment and off-campus hospital outpatient department (HOPD) site-neutral payment policy. 

To pay for this effort, the bill includes some of the offsets originally included in H.R. 6, including: 

  • Section 5009. Rescinds $3.5 billion for Prevention and Public Health Fund;
  • Section 5010. Directs the DOE to sell a portion of the Strategic Petroleum Reserve; 
  • Section 5011. Rescinds $464 million available to U.S. territories under ACA. 

DeVos to be ED Secretary

President-elect Donald Trump is nominating Betsy DeVos for Education Secretary. A billionaire GOP donor, she also once served as head of the Michigan Republican Party.

DeVos is a vocal advocate of allowing parents to use school vouchers to seek alternative schools and other policies strongly opposed by teachers unions. She is the current chairwoman of the American Federation for Children, an education advocacy group pushing school-choice-friendly policies.

 

 

Trump Won’t Prosecute Clinton

Today on the MSNBC program, Morning Joe, Trump campaign manager Kellyanne Conway said that President-elect Trump will not pursue prosecution of Secretary of State Hillary Clinton, when Trump is President.  While on the campaign, Trump repeatedly promised to appoint a special prosecutor to pursue the investigations, arguing that President Obama and the Clintons had used their influence to shape the Justice Department’s investigation. Additionally, during Trump rallies, it was common to hear the chant “Lock her up.”

During a 60 Minutes interview earlier this month, President-elect Trump said that prosecuting Clinton would not be a priority for his administration.

 

Trump First Day Agenda

President-elect Trump posted a 2 minute 37 second video on You Tube, which is the first time he’s addressed the American people directly since the election.

Mr. Trump’s video included six calls for action on trade, immigration, energy, regulatory curbs, national security (specifically cyber infrastructure), and lobbying ethics changes, most of which have already been announced either during the campaign or the transition period.

Of note, Trump did not mention action on the Affordable Care Act, his proposed wall along the southern border, the tax code, or the Iran nuclear deal, all of which were central arguments for his election.

See the video here or below.

Thanksgiving Recess

Congress is out for the Thanksgiving Recess. They return next week to address the CR, and what that should entail as well as the NDAA, 21st Century Cures, the Water Resources Development bill, and any other legislation they can possibly get passed.

White House Ceremony to Receive the 40th Thanksgiving Turkey, 1987
White House Ceremony to Receive the 40th Thanksgiving Turkey, 1987

Thanksgiving is a federal holiday observed on the fourth Thursday in November. Thanksgiving began in 1621 as a harvest celebration between the Pilgrims and the Wampanoag Indians, and has become a time for families and friends to gather to reflect, to express gratitude, to eat lots, and to watch college football rivalries. Presidents pardon turkeys.

In 1789, President George Washington declared November 26 a national day of Thanksgiving. Subsequent Presidents issued Thanksgiving proclamations, but the dates of the commemoration changed. In 1863, President Abraham Lincoln issued a proclamation establishing the last Thursday of November as Thanksgiving In October 1941, Congress formally recognized the last Thursday or November as the legally observed holiday by passing H.J. Res. 41.

Happy Thanksgiving from Federal Relations!