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Category: Legislation

Progress on Student Loan Interest Rate Bill

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Although both chambers are in recess today, there’s plenty of behind-the-scenes legislating and negotiating. House lawmakers plan to release a draft 2013 farm bill that’s expected to produce $38 billion in savings over a decade. Across the Capitol, Senate Democrats are looking for ways to advance President Obama’s nominee to head the Environmental Protection Agency – Gina McCarthy – who is having a tough time getting Republican support. The Administration also is engaged in talks with Republicans to head off a scheduled student loan interest rate hike. And there are efforts afoot to revise a Senate Internet tax bill in the House in an effort to gain support from conservative lawmakers.

A deal aimed at preventing federal student loan interest rates from doubling on July 1 appears possible after both sides made concessions on Thursday. A House Republican bill (HR 1911), that could be marked up next week, would treat the subsidized and unsubsidized portions of the Stafford federal student loan the same, pegging their interest rates to the 10-year Treasury rate plus 2 .5 percent. The legislation would also shift loans for graduate students to the 10-year Treasury rate plus 4.5 percent. Those interest rates would be capped at 8.5 percent and 10.5 percent, respectively. According to the Congressional Budget Office, the bill would save the federal government $990 million over five years and $3.7 billion over 10 years.

This measure largely mirrors a proposal included in President Obama’s FY2014 budget to shift the current fixed interest rate to a market-based variable rate.  The House is poised to move the measure through that chamber by Memorial Day, plus or minus a week.

Senate Begins Mark Up of Immigration Bill

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The Senate Judiciary Committee is beginning to mark up the immigration bill today in the opening act of what will likely be a long, contentious fight over amendments. The “Border Security, Economic Opportunity, and Immigration Modernization Act” (S 744) is the immigration reform proposal developed by the so-called “gang of eight.”

Among other things, the bill would expand the annual cap of H-1B visas to 110,000 from the existing cap of 65,000, raise the number of visas for foreign graduates with advanced degrees from U.S. universities that are exempt from the annual cap, and create a 13-year path to citizenship for nearly 11 million immigrants. No undocumented worker, however, would be eligible for citizenship until the border is considered secure.

The Office of Federal Relations has been actively engaged with Congressional members on issues related to visas and pathways to citizenship for our students (Dreamers).

Watch the Senate Committee mark up live.

Senate Releases Immigration Reform Bill

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Senate negotiators have reached an agreement on a bill to make the most substantive changes to immigration laws in nearly three decades. The “Border Security, Economic Opportunity, and Immigration Modernization Act of 2013” would affect visas for high-tech workers, create a new “W-visa” program to attract low-skilled workers, and require businesses to implement new electronic-verification requirements to check the immigration status of their employees.

The bill will also create what is certain to be a controversial pathway to citizenship for the nation’s 11 million undocumented immigrants to become permanent legal residents a decade after they register with the government. Immigrants would pay a $2,000 fine, pass a background check, have a job, and wait 10 years before applying for a green card. Three years after that, they could apply to become U.S. citizens. Dream Act youth can obtain green cards in five years and citizenship immediately thereafter.

In exchange for the “pathway to citizenship” for many immigrants, conservatives demanded language in the bill that would call for billions of dollars to be spent on tightened security at the U.S.-Mexico border with a goal of apprehending 90 percent of those crossing the border in “high-risk” areas. But the whole process is contingent, at several points over a decade, on the government meeting certain border-security benchmarks.

This Week in Congress

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The Senate resumes its gun control debate this week, beginning today with the most substantive and contentious issue: a bipartisan proposal to require background checks of gun purchasers in commercial and Internet sales. It’s the start of deliberations that could keep that chamber busy until the Memorial Day recess. We also expect to see an immigration reform legislation unveiled this week in the Senate.

The House will consider four minor bills under suspension today, including measures that would bar federal employees and contractors who owe back taxes from being employed or awarded contracts worth more than $150,000. The House will focus on cybersecurity legislation for the remainder of the week.

In addition to floor action, both chambers plan more than 40 congressional hearings this week to review President Obama’s FY14 budget as lawmakers weigh the potential for a grand bargain on deficit reduction (to replace the sequester). The $3.77 billion budget request assumes that sequestration has been turned off, and therefore the FY 2014 top-line spending number does not include cuts required by sequestration. Conveniently, the budget request also makes comparisons with the FY 2012 enacted spending levels, which do not take into account the sequester. The White House was able to do this because technically they have 30 days from the time the final FY13 continuing resolution was passed (March 22nd) to calculate the final spending numbers, including cuts from the sequester. The budget also assumes that Congress will consider increased tax revenue and entitlement reform, both very sticky political subjects.

Federal Update, March 2013

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The month of March has been a busy one in Washington, D.C. On March 1st sequestration went into effect after Congress failed to come to agreement on long-term deficit reduction, and last week both the House and Senate approved their respective budget resolutions that address overall spending for federal government for FY 2014. And, finally, Congress took action on a continuing resolution to fund the federal government for the remaining six months of FY 2013, just a week before the current CR expires on March 27th. Congress is now enjoying a two-week recess period before returning to work on April 8th, the same day that President Obama is to release his FY 2014 budget request, two months later than usual because of all of the fiscal uncertainty in Congress.

This Federal Update will focus on these fiscal issues, and also take a look ahead at the congressional agenda for spring. Continue reading “Federal Update, March 2013”