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Welcome to the 115th Congress

Happy New Year and Happy Swearing In Day! Congress is back today to usher in the 115th Congress and the inauguration is in 17 days.

First things first. 

Both the full House and new members of the Senate were sworn in today initiating the 115th Congress. With the Republican party in charge of both chambers and President-elect Donald Trump in the White House, an ambitious agenda is in the works, which includes repealing Obamacare and rolling back regulations. 

Those effort starts this week as the Senate is expected to start working on passing a budget that contains instructions for gutting Obamacare this week, with the House following up as soon as next week. That resolution includes instructions to repeal large parts of Obamacare through reconciliation. The measure would instruct relevant committees to write legislation that could undo provisions of the law. Republicans are framing this measure as an Obamacare transition solution, but nothing will actually happens to the ACA yet.

The process in the Senate will take several days of debate and there will be a “vote-a-rama,” a process that often takes several hours over the course of a day and night. The budget resolution and the reconciliation measure repealing the health care law avoids the normal Senate requirement of 60 votes to consider legislation. Any subsequent bills addressing replacement provisions for the health care coverage law will require new budget resolution maneuvering or the cooperation from some Senate Democrats. The legislative process for enacting health care coverage replacement legislation could take several years.

Republican leaders are setting up reserve funds in an otherwise bare-bones FY 2017 budget resolution as a way to allow savings from repealing the health care law to be applied to replacement legislation.

The House will vote shortly after on the budget resolution and that vote could happen by the time Trump is inaugurated. It is worth noting that the budget resolution is not law, but binding and instructing on the House and Senate Committees. 

Rollback Regulations

Trump is expected to roll back nearly every major labor regulation enacted under President Barack Obama. Executive orders will be the easiest to reverse or cancel; that simply takes executive action. On the list could be an order that required prospective federal contractors to disclose previous labor law violations when bidding on large contracts. 

The Department of Labor’s appeal of a federal injunction against the rule will almost certainly be dropped once Trump takes charge of the Justice Department. Another regulation to watch is the fiduciary rule, which requires broker dealers to consider only the client’s best interest when providing retirement advice. Trump may face difficulty squelching the rule before it takes effect in April, but his Labor Department can broaden exemptions and thereby weaken its effect substantially.

Also up for review are visas for guest worker programs. Bipartisan support exists already to scrutinize these programs because of highly publicized instances in recent years of mistreatment of guest workers, displacement of native-born workers, or both. Indeed, Democrats may push harder than Republicans to clean this Augean stable, given the reliance of Trump’s own various businesses on guest-worker visas. The Washington Post counts, 500 since 2013.

Trump’s first big decision on immigration will be what to do about the Deferred Action for Childhood Arrivals program, which grants deportation relief to more than 752,000 people brought to the US at a young age. Trump promised during the campaign to end the program, which was created by an Obama executive order. But in December, Trump said “we’re going to work something out that’s going to make people happy and proud.”

Looking Forward

As the Trump Administration takes office later this month, lawmakers are also gearing up for new fights. Efforts to undo many of the Obama Administration’s education policies, such as its teacher preparation regulations or rules aimed at cracking down on for-profit colleges, will likely prove contentious. Lawmakers will also likely clash over efforts to repeal the Obama Administration’s regulations under the Every Student Succeeds Act or scale back the power of the Office for Civil Rights.

Additionally, Senator Lamar Alexander (R-TN) and Representative Virginia Foxx (R-NC), the chairs of the congressional education committees, both plan to turn their attention to overhauling the Higher Education Act, which was last comprehensively reauthorized in 2008.

Decisions over the details for the Trump proposed infrastructure bill, including how to finance it, will probably come after Elaine Chao makes her way through the confirmation process. Trump’s pick for Transportation secretary is unlikely to face much resistance in the Senate.

Multiple Senate Committees will begin public vetting and hearings of dozens of Trump Administration political appointees, from Secretaries, deputies and administrators, all needing Senate confirmation. Hearings have already begun to be scheduled for next week. 

But what will happen next? Stay Tuned. The Office of Federal Relations will continue to update.

CR Released, Should Pass This Week

The continuing resolution (CR) was released late last night. The text of the legislation is here. The big news is that the CR will fund the federal government through April 28, 2017. The legislation maintains the current budget cap level of $1.07 trillion put into place under the Budget Control Act of 2011, which results in an across the board cut of .1901%.

The House is expected to vote on the measure on Thursday and the Senate is expected to follow suit on Friday. 

Big Items of Note: 

The Defense Overseas Contingency Fund, which is not subject to budget caps, was increased by $8 billion in response to the Administration’s request to combat ISIS. Of note, the Administration asked for $11.6 billion.  The CR increase does include RDT&E funding that is related to the Global War on Terrorism and the Joint Improvised Explosive Device Defeat Fund received a $87M increase.  The funding will go to both defense-specific funding to combat ISIS as well as non-military spending — such as Humanitarian Assistance, State Department and USAID operations funding, Economic and Stabilization Assistance, and Embassy security funding — to combat ISIS. 

The CR does add funding in FY 2017 to accounts created and highlighted in the Cures bill for opioids, NIH and FDA initiatives, and Flint drinking water. The Cures funding is fully offset per the authorizing bill. Specifically, the totals for the year amount to: 

  • $500 million in grants to states to fight opioid abuse, 
  • $352 for the new NIH Innovations Fund (as created by Cures), 
  • $20 million directed to the FDA Innovation account (as created by cures), and  
  • $50 million is directed to HHS to address health issues relating to a lead-tainted drinking water system in Michigan. 

There is a provision to address President-elect Trump’s Secretary of Defense nominee, Ret. USMC Gen. James. Mattis, who left service three years ago. Under a 1947 federal statute, Secretaries of Defense must be civilians or retired from service for at least 7 years to be eligible to serve; its an effort to assure civilian control of the military. This requirement has been waived once in 1950 for General George C. Marshall. 

Other Items of Note:

There is additional funding to allow continued operations and data collection for continuation of data for weather warnings, including forecasts of severe weather events from NOAA’s Joint Polar Satellite System.

There is a provision allowing additional funding, if needed, for the housing and care of Unaccompanied Alien Children (UAC) after February 1, 2017. The number of UACs has been spiking as of late and was an issue for the FY2017 appropriations cycle. Of note, this funding comes from the Labor-H appropriations bill. 

Additional updates will be posted on our blog. 

CR to be Unveiled Today

The House Leadership has announce that it will release the long-anticipated and negotiated continuing resolution (CR) today. The CR is not expected to have many anomalies and should be level funding from FY 2016 levels.  While there has been much negotiation between an end date in March 2017 or an end date in May 2017, the current thought is that the CR will continue federal funding until April 28, 2017. The current CR expires at midnight on Friday.

CR details will be posted as soon as they are available.

Foxx to be Chair of House Education and Workforce Cmte, Trump’s Ed Landing Team

With approval of the full Republican conference, the House Republican Steering Committee has selected Rep. Virginia Foxx (R-NC) as the chairwoman of the House Committee on Education and the Workforce in the 115th Congress.  She grew up in Appalachia without power and running water and began working as a weaver at age 12 to help support her family. These experiences convinced her that it’s an individual’s hard work, and not federal programs, that lead to success.

As the 73-year-old GOP lawmaker and former community college president, Foxx has been a staunch critic of the Obama Administation’s Department of Education efforts. 

She is a strong supporter of school choice and supports the president-elect’s $20 billion school choice plan emphasizing vouchers. Specifically, she wants to examine the billions doled out annually under Title 1 — a Great Society program that boosts funding to schools catering to poor students. The money is now considered a possible funding source for Trump’s school choice plan. Other items on her agenda: 

  • reexamine the role of the Education Department’s Office for Civil Rights, which conservatives revile for its focus on issues such as campus sexual assault and bathroom access for transgender students;
  • reverse a Democratic Congress’ decision to have the Education Department, not banks, issue student loans; and 

  • reverse regulations targeting for-profit colleges.

Mike Pence’s former general counsel has joined the landing team at the Education Department. Attorney Thomas Wheeler was named to the team Thursday. He served as general counsel for Pence during his time as Indiana governor, according to a 2013 press release from the Republican National Lawyers Association that announced him as a member of its board of governors. Wheeler also has extensive experience representing schools on legal issues, including civil rights-related cases, according to the web site for his law firm in Indianapolis, Frost Brown Todd, LLC.

House Considers NDAA Today

The House will debate and vote on the compromise National Defense Authorization Act today, likely before noon.

The measure is expected to pass, though it is unclear by how wide a margin. The White House hasn’t indicated where President Barack Obama will come down on the final bill, though it leaves out many of the most controversial provisions that drew Democratic opposition and a veto threat from the administration.

The compromise NDAA ditched the contentious riders, including provisions on the greater sage grouse and workplace protections based on sexual orientation. It’s also expected to include $9 billion on top of the Pentagon’s budget request, incorporating the administration’s $5.8 billion war supplemental request as well as funding to cover military readiness shortfalls.

For FY2017, the NDAA conference agreement would authorize Department of Defense (DoD) Basic Research (6.1) at $2.142 billion (FY16 is $2.309 billion), Science and Technology (6.1-6.3) at $12.489 billion (FY16 is $13.251 billion), and Defense Advanced Research Projects Agency (DARPA) at $2.957 billion (FY16 is $2.891 billion).

The NDAA conference also would extend the Small Business Innovation Research (SBIR) program and Small Business Technology Transfer (STTR) program until FY2022 (Sec. 1834). The bill would not make any changes to the SBIR/STTR set-aside amounts.

The conference agreement would establish the Manufacturing Engineering Education program (Sec.215), to award grants to industry, non-profits, universities or consortiums of such groups, to enhance or establish new programs in manufacturing engineering education. The Manufacturing Engineering Education program language is a slightly modified version of the Manufacturing Universities language originally included in the Senate-passed FY2017 NDAA bill.

 The FY2017 NDAA report, summary fact sheet and joint explanatory statement are posted here.

The Senate is expected to consider the bill next week.