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This Week in Washington DC

Happy Monday morning!  It will be a busy week in Washington, DC with the continuing resolution (CR) expiring on Friday, appropriators scrambling to approve at least one “mini-bus” before week’s end, the Joint Deficit Reduction Committee deadline looming next week, the House taking action on a balanced budget amendment, and Obama announcing the next phase of his “We Can’t Wait” agenda.

Super Committee

Although the bipartisan panel officially has until November 23rd to make their recommendations, it would take time to write legislative language and have it officially analyzed by the Congressional Budget Office by that deadline, as is required by the August debt limit law (PL 112-25) that created the committee. This means that the group will need to have the outlines of a deal in place by the end of this week.  On a positive note, members of the bipartisan panel have recently indicated their willingness to compromise on issues important to each party – such as increasing revenues and curtailing entitlements. Republicans for the first time have opened the door to an increase in new tax revenue, while Democrats have proposed deeper spending cuts, which could include both Medicare and Medicaid. Despite that progress, both parties rejected proposals leaked last week that contained those concessions, each side saying that the other’s plan had not offered enough.  

First Mini-Bus:  Agriculture, Commerce-Justice-Science, and Transportation-HUD

Appropriators are expected to file a conference report Monday on the first mini-bus of FY12 spending bills, setting the stage for Congress to clear it by week’s end.  The package contains roughly $127.8 billion in discretionary appropriations for the Agriculture, Commerce-Justice-Science, and Transportation-HUD spending bills for FY12.  It is expected to be passed first by the House and then by the Senate.  The largely non-controversial bundle will contain a new CR to keep government running through mid-December, since the current stopgap measure expires on Friday.  

Second Mini-Bus:  Energy-Water, Financial Services, and State-Foreign Operations

The Senate will begin debating the second mini-bus package this week, and hope to take action on the measure next week before leaving for the Thanksgiving holiday.  The package, which includes the Energy-Water, Financial Services, and State-Foreign Operations spending measures, would provide a total of $129.5 billion for the various agencies in FY12.  In a sign of bipartisan support, 81 senators backed cloture on the measure last week but support for bringing the bill to the floor may mask stumbling blocks that lie in controversial amendments, which are expected to target both funding levels and policy provisions in the bills.

Balanced Budget Amendment

House leaders plan to bring up for consideration a balanced budget amendment to the Constitution.  This measure will be a more “traditional” version rather than one that mandates spending caps and requires a supermajority for raising taxes.  Supporters of the traditional balanced-budget amendment, which requires that outlays do not exceed revenues and a three-fifths majority to raise the debt ceiling, emphasize that the same version passed in the House in 1995 with 300 votes, including 72 Democratic supporters. The vote, scheduled for later this week, will fulfill a requirement of the August debt limit law and also satisfy members of the House Republican conference who are eager to back it.  Constitutional amendments require a two-thirds majority to pass either chamber, which is 290 votes in the House and 67 votes in the Senate.

Obama’s “We Can’t Wait” Issue of the Week:  Healthcare Workforce

According to the Washington Post, the Obama administration will announce today as much as $1 billion to hire, train, and deploy healthcare workers, part of the President’s broader “We Can’t Wait” agenda to bolster the economy after his jobs bill stalled in Congress last month.  Grants can go to doctors, community groups, local government, and other organizations that work with patients in federal healthcare programs such as Medicare and Medicaid.  The funds are for experimenting with different ways to expand the healthcare workforce while reducing the cost of delivering care.  There will be an emphasis on speed, with new programs expected to be running within six months of funding.   The Center for Medicare and Medicaid Innovation, created as part of the Affordable Care Act, will administer and oversee the program, called the Health Care Innovation Challenge

Sources:  CQ, Washington Post, Politico

President Obama Announces New ‘Know Before You Owe’ Student Loan Initiative

President Obama announced today at a speech at the University of Colorado Denver, a new initiative called ‘Know Before You Owe’ designed to make college loans more affordable and reduce the financial burden on recent graduates – many of whom are struggling to find employment.

The administration is essentially speeding up by 2 years, a federal law that was set to go into effect in 2014. Announced today and beginning in January of 2012, students with federal loans who enroll in the Income Based Repayment Plan will experience a cap on their federal student loan repayments at 10% (currently 15%) of discretionary income and all remaining debt on these federal loans will be forgiven after 20 years (currently 25 years).

The second part of the initiative encourages students with one or more types of federal loans to consolidate them for a 0.5% interest rate reduction.

The administration estimates that this could affect up to 1.6 million borrowers and save some students hundreds of dollars a month.

NIH Considers Options for Cuts

As described in this Science Insider article, NIH has begun to reach out to the community for feedback on what strategies should be considered during an era of reduced budgets. Everything seems to be on the table, from limiting numbers or grants per investigator to capping salaries charged to grants. NIH has put together a web based tool to help model these scenarios, allowing users to visualize cost savings were various strategies to be implemented.  Thanks to Carrie W. at AAU who pointed out this article!

Senate Holds Hearing on Department of Ed FY12 Budget

The Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies held a hearing yesterday on the Department of Education’s FY12 budget. Secretary Duncan was the witness.

In his opening remarks, Duncan expressed concern that America has gone from being a world leader in education to now being “middle of the pack”.  He also emphasized that demand on the Pell program has increased from 6 million to 9 million students in 2 years and that the Department is focused on closing the Pell shortfall – currently $11 billion – through increased efficiencies and more resources. The Pell program accounts for a third of the Department’s total $77 billion FY12 request. The Secretary cites the increasing number of lower income families and more families without jobs as the reason for the increased demand for the grants. Earlier this week, both Reid’s and Boehner’s debt ceiling deals contained an elimination of the in-school interest subsidy for graduate students, with the money saved by doing this going back into the Pell program to help shore up the shortfall for the next two years. Although this will have a negative effect on students, out of the many rumored changes to Pell that have been floating around during the past few weeks and the negotiation process, this is the best possible outcome for the university community. Pell and changes to the program will continue to be an issue as we head towards Fall and finishing up the FY12 process.

The Committee also brought up the concern that 89% of first-generation college students do not complete their degree. The Secretary stated that this was one of the Department’s FY12 priorities, and they are trying to solve this problem in three ways: 1) Fighting to maintain access to Pell. 2) Investing in community colleges and partnerships with the private sector to leverage funding. 3)  Investing in programs such as i3 and the proposed “First in the World Competition”. The First in the World Competition would provide “venture capital” to encourage innovation approaches to improving college completion (particularly low-income and minority students), research support to build the evidence of effectiveness needed to identify successful strategies, and resources to scale up and disseminate strategies we already know are successful.

The Labor-HHS-Ed Appropriations bills have not yet been drafted in the House or the Senate and we don’t expect to see them until after the August recess.

State Dept Names New Science & Technology Adviser

Late last week, Secretary of State Hillary Clinton named Dr. E. William (Bill) Colglazier as her Science & Technology Adviser.  Congress established the position of Science & Technology Adviser to the Secretary of State in 2000; Dr. Colglazier is the fourth individual to hold the position.  

Dr. Colglazier’s most recent position was Executive Officer of the National Academy of Sciences and Chief Operating Officer of the National Research Council.  He holds a Ph.D. in Theoretical Physics from the California Institute of Technology and was formerly a Professor of Physics at the University of Tennessee.

In a notice to staff, the State Department noted that the mission of the Office of the Science & Technology Adviser is “to serve the U.S. national interest by promoting global scientific and technological progress as integral components of U.S. diplomacy including building partnerships with the national and international scientific communities.”