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Category: Legislation

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.

Drama Continues in Congress

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With the full House currently scheduled to take up the Obamacare repeal-and-replace healthcare bill later today, as of this writing, it still remains uncertain as to whether the White House and the House Republican leadership have been able to convince enough holdouts to get the legislation across the finish line. Many sources report that negotiations between many of the conservative opponents and the White House and the leadership continued throughout yesterday and last evening. At the same time, there are also reports that many of the concessions which may have been offered to the conservatives may have, in turn, alienated some of the moderates who were uneasy about the underlying legislation.

The situation on this front remains fluid and the Office of Federal Relations continues to monitor the situation.

On the other side of the Capitol today, the Senate Judiciary Committee will continue its questioning of Supreme Court nominee Neil Gorsuch. The confirmation hearing is expected to wrap up this week, with the committee voting on his nomination in early April.

Also taking place today is the Senate Agriculture Committee’s confirmation hearing for Agriculture Secretary nominee Sonny Perdue, the former governor of Georgia.

NASA Transition Authorization Bill Signed Into Law

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Earlier today, the NASA Transition Authorization of 2017 was signed into law by President Trump. The bipartisan bill was adopted unanimously in both chambers of Congress. Historically, different presidential Administrations have sought to emphasize different areas of the agency’s broad mission and expertise, and the legislation was an attempt, in part, to provide stability for NASA during the first part of the transition to this Administration.

 

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.

More Cabinet Posts, FY 2018 Budget Update

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It will continue to be a busy week for the House and Senate. Today, the Senate will continue to work on confirmations as four Cabinet positions – Betsy DeVos for Secretary of Education, Senator Jeff Sessions for Attorney General, Rep. Tom Price for Secretary of HHS, and Steven Mnuchin for Secretary of Treasury  – are up for full Senate consideration this week. Rep. Mike Mulvany (R-SC), Trump’s nominee to lead the Office of Management and Budget (OMB), is still working his way through the Senate, which could cause some budget complications for FY 2018 (see below). 

Senators are expected to move on a House-passed Congressional Review Act resolution nullifying a regulation curbing methane emissions from oil and gas wells on federal lands. Once passed, it will mark the third energy-related rule nullified by the Republican Congress. 

Today, the House continues efforts to stop regulations finalized by former President Barack Obama now focusing on the Department of Education. So far, lawmakers have introduced Congressional Review Act resolutions targeting the Obama Administration’s regulations governing teacher preparation programs as well as its accountability rule under the Every Student Succeeds Act.

It is the first Monday in February, which is technically Presidential Budget day. On the first Monday in February, the Administration is statutorily required to submit their budget request for the upcoming fiscal year (in this case FY 2018) to Congress. All recent Presidents (including Obama…multiple times) have missed the statutory deadline for budget submissions in their first year in office. There is no penalty for missing the date and a full budget proposal may not emerge from the White House until April or May.

While a delay in the budget submission is expected for a new Administration, virtually guarantees a delay in the entire FY 2018 appropriations process. Regardless of who controls Congress, lawmakers typically fail to get regular spending bills passed before the start of the new fiscal year, which begins on October 1. This year enjoys the particular complication of not having closed out FY 2017 with the current CR running until April 28th. Congress will have to address FY 2017 and immediately (or concurrently) FY 2018.