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112th Congress Convenes Today

The 112th Congress convenes today, reinstating an era of divided government with Republicans in control of the House and Democrats in control of the Senate and White House.  Republicans will have a 242-193 majority in the House, while Senate Democrats and their two independent allies will hold a majority of 53 seats, compared with 47 for Republicans.  Both the House and Senate will open with swearing in their new members and determining procedural rules for the year. The Senate will adjourn at the end of the week for a two-week recess to mark the Martin Luther King Jr. holiday, while the House is expected to be in session for a portion of next week when they plan to take a mostly symbolic vote to repeal last year’s health reform law.

House Republican leadership will use the three weeks before President Obama’s State of the Union address to vote to repeal the health care overhaul law and cut spending. Following the vote next week to repeal the health care law, the House Republicans will act quickly to fulfill their pledge to cut spending to 2008 levels as they attempt to complete the FY11 appropriations process before the current continuing resolution expires on March 4th.

Also this week, the House will take the first of what will become a weekly ritual in the chamber under the new majority: voting on a bill to cut federal spending. This week’s vote will be on a measure to cut the House’s own funding by 5 percent, which Republicans estimate will save more than $35 million in the first year. Of the $35 million in savings, $26 million would come from reducing members’ office budgets, $8 million would come from House committees, and $1 million would come from Republican and Democratic leadership offices. Future weekly spending cut proposals will be selected through the Republicans’ “YouCut” Initiative, which Republicans initiated last year and allows the public to vote online on which federal spending program they would like to see cut. That initiative will continue as is has in the past, with the proposed spending cut that received the most votes each week being brought directly to the House floor for consideration.

The weekly YouCut votes will be on a separate track from rescission bills reported by the Appropriations Committee and other efforts to roll back domestic discretionary spending to 2008 levels. Those efforts are expected to pick up speed in February after Republicans set a new discretionary spending cap for FY11, and as the March 4th expiration of the current CR funding that the entire government approaches. The Senate Democrats will likely not agree to the House imposed spending levels so the outlook for the FY11 appropriations process is uncertain. There is wide speculation that absent an agreement between the two bodies, a year-long CR will be enacted to fund federal government at (or close to) FY10 levels.

Today is just the beginning of a long two-year session of Congress. I look forward to bringing you information and insights on this blog and through our periodic Federal Updates along the way!

COMPETES Reauthorization Passes (Update)

**12/21 Update** Today, the House passed the America COMPETES Act, as already agreed to in the Senate. The legislation now goes to the President, who is expected to sign it. Additional details will be provided shortly

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On December 17th, in somewhat of a surprise move, the Senate voted to pass the America COMPETES Act. The legislation had been sidelined for weeks by a crowded agenda for the current lame duck session of Congress as well as over concerns that the spending levels authorized were too large in light of the federal budget deficit. COMPETES authorizes annual budget increases for the National Science Foundation, Department of Energy Office of Science, and the National Institute of Standards and Technology. While passage of COMPETES is certainly a positive development, there is no guarantee that the annual appropriations process will keep the agencies funded at the levels authorized.

From the Office of U.S. Senator Patty Murray

Senator Murray Applauds Passage of Bill to Strengthen Science and Math Programs in Washington State Schools

(Washington, D.C.) – Today, U.S. Senator Patty Murray (D-WA) applauded the passage of a bill that will strengthen and expand science and mathematics programs in schools in Washington state and across the country. The America COMPETES Reauthorization Act of 2010 includes provisions to expand science and mathematics programs at all points in our education system. Additionally, the Act directs business and the federal government to coordinate with science, technology, engineering, and mathematics (STEM) education programs to help create innovative educational opportunities, increase research investment, and improve economic competitiveness.

“Thanks to ground-breaking educational programs, Washington state is home to some of the world’s most innovative workers, businesses, and schools. However, we must continue developing new programs and applying more resources if we want our workers to be competitive in the global economy,” said Senator Murray. “This bill will help America’s workers continue to compete, and will direct the government to use available tools to strengthen educational opportunities and increase investments in research projects that will benefit future generations.”

The America COMPETES Reauthorization Act of 2010 will:

  • Increase research investment;
  • Strengthen educational opportunities in science, technology, engineering, and mathematics from elementary through graduate school; and
  • Develop an infrastructure that will enhance innovation and competitiveness in the United States.

Continuing Resolution Likely Until March (Possibly Beyond)

The Senate Appropriations Committee has released a summary of a fourth continuing resolution, which would keep the government operating through March 4th at FY10 spending levels. The new CR comes after a failed attempt to advance a new spending package for FY11. The passage a CR through March 4th, as expected this week, would defer spending decisions on FY11 until the new Congress is sworn in. It is quite possible that a CR could be put into place for the entire current fiscal year, which would remove earmarks from the spending bills and level fund the government for a year. One piece of positive news in the CR was a commitment to maintain the maximum Pell Grant level at $5,550. A $5.7 billion shortfall in the program could have resulted in significant decreases in award levels.

Summary of Continuing Resolution

UW Bothell Nursing Program on the Hill

UW Bothell with Jay Inslee

UW Bothell Nursing Program Director Dr. Mary Baroni (pictured front right) and  faculty member Dr. Suzanne Sikma (pictured back right) came to DC last week to attend and present at the Global Alliance for Leadership in Nursing Education and Science (GANES) conference. They were joined by program alumni Florentina Culiac (pictured center) and Gail McLean (pictured left) who also presented at the GANES conference. The UWB Nursing Program has benefited from significant federal support for student scholarships, primarily through the efforts of Congressman Jay Inslee (pictured) and Senator Patty Murray. The scholarships have enabled the training of nursing faculty resulting in increased educational opportunities for community college nursing students around the state, and ultimately increasing the number of practicing nurses.

The UWB contingent participated in meetings on Capitol Hill to thank the two offices for their support and to discuss the future of the program.

Senate Moves Tax Package Forward (Updated 12/17)

**2nd Update 12/17** The packaged has been fully approved by Congress and is heading to the President’s desk, where it will be signed this afternoon.

** Update ** Today, by a vote of 81-19, the Senate voted to pass the much discussed tax-extenders package. The bill now goes to the House for a vote. The $893 billion package would provide an extension of various Bush-era tax cuts that were set to expire at the end of December. The package includes several items of note to our community, including:

Tax incentives that would be extended for two years through 2012

  • Section 127 Employer-provided education benefits
  • Coverdell education savings accounts
  • Student loan interest deductions
  • American Opportunity Tax Credit (AOTC)

Tax incentives that would be extended for two years through 2011 (they expired in 2009)

  • Deductions for qualified educational expenses
  • Research and development credit
  • Ability to “roll over” assets in Individual Retirement Accounts (IRA) to charitable organizations, including institutions of higher education

Additional items of note for employees

  • Sales tax deduction in states with no income tax -retroactively for 2010 plus 2 additional years
  • Social security payroll tax reduction from 6.2% to 4.2% of income for one year

Although the tax package will leave the Senate with rare bipartisan support, it’s path in the House is less clear. House Democrats have promised to amend the legislation, primarily the estate tax portion, which could send it back to the Senate. Senate Republicans have already signaled that they are unlikely to support House modifications. Nonetheless, it is expected that some form of a final deal will be struck by the end of the week -so that tax rates do not increase at the beginning of the year.