The Washington Report.
June 26 2007
Over the past several weeks, both the House and the Senate have been considering significant legislation, including several appropriation and reauthorization bills (ranging from defense to national science foundation funding), in addition to immigration reform, federal finance reform, and climate change legislation.
Budget
On May 17, the Senate approved by a vote of 52-40 the final budget conference report for FY 2008, which includes the appropriate budgetary levels for fiscal years 2009 through 2012. The $2.9 trillion budget for FY 2008 included recommendations that would increase funding for Amtrak, National Institutes of Health (NIH), and State Children's Health Insurance Program (SCHIP), all of which are Council priorities. The congressional budget resolution increases Amtrak funding by $900 million over the President's budget request. Also, the budget resolution would increase NIH funding above the FY 2007 level and be adjusted for inflation, for which the President's budget request did not account. The congressional budget recommendations also included a $50 billion expansion of SCHIP, which the President's budget did not recommend. The House approved the same conference report later that day.
Appropriations
The House passed the following FY 2008 appropriations bills in June: Department of Homeland Security (H.R. 2638); Military Construction and Veterans Affairs (H.R. 2642); Department of State, Foreign Operations, and Related Programs (H.R. 2764); Legislative Branch (H.R. 2771); and Interior, Environment and Related Agencies (H.R. 2643). Each of these spending bills has been sent to the Senate. H.R. 2764 has been referred to the Senate Appropriations Committee and H.R. 2771 was reported out of the same committee on June 28, 2007 for consideration by the full Senate.
The debate on the House side regarding the transparency of earmarks continued to gather attention as the 110th Congress began its consideration of appropriation and authorization bills. Earlier this year, the majority in the House changed the rules to require the disclosure of financial interest in a project for which a Member of Congress has requested an earmark. This change caused a month and a half delay in the filing of earmarks
In June, the House reached a bi-partisan agreement to alter the rules regarding earmarks once again so that earmarks will be included up front in the House appropriations bills by allowing a Member to raise a point of order that could block consideration of conference reports if they contain any provisions that were not included in the original House or Senate versions of the bills. To further expand the transparency of earmarks, some House Members are taking the disclosure process a step further by disclosing all of their earmark requests, including Congressman Frank (D-MA).
The House Appropriations Committee approved the Subcommittee on Energy and Water's FY 2008 funding level recommendation, which contained a provision that would provide $494.5 million for the Department of Energy's (DOE) waste management program. The Committee report directs the DOE to “… develop a plan to take custody of spent fuel currently stored at decommissioned reactor sites,” including those in New England. The Committee went on to instruct the DOE to consolidate the spent fuel. The Council has consistently supported such consolidation, and we will work to ensure that this provision remains in the final appropriations bill
Financial Services
On May 9, the House passed by a vote of 414-3 the Student Loan Sunshine Act (H.R. 890), which would establish requirements for lenders and institutions of higher education to protect those receiving educational loans. The bill would require that any lender entering into a preferred lender arrangement with an institution that provides secondary studies and receives federal funds would: 1) have to certify that all preferred lender arrangements are in compliance with the requirements of the bill; 2) inform borrowers of their loan options under Title IV (student assistance), including information on more favorable loans, before providing private educational loans at such institutions; 3) be prohibited from marketing private educational loans in a way that implies the institution's endorsement.
On May16, the Senate Banking Committee approved legislation that would strengthen foreign investment regulations enforced by the Committee on Foreign Investment in the United States (CFIUS). House Financial Services Committee Chairman Frank indicated that there are few differences between the pending Senate measure and H.R. 556, which passed the House in February by a vote of 423-0, and he believes that Congress can achieve final passage on CFUIS reform legislation.
Senate Banking Committee Chairman Dodd expects that the Senate version of the CFIUS bill could be considered as early as this month. The legislation would continue the current timeframe for the process of 30 days for a review, 45 days for an investigation and 15 days for the President to decide on the application. The House bill would allow CFUIS to extend the investigation period by another 45 days. The Senate bill would mandate notice to Congress after every review and investigation, while the House bill would require notice to Congress for investigations only. These are a couple of the differences that will need to be addressed after the Senate passes its version of the bill and the legislation is then considered in conference.
The Council supports reform of CFIUS regulations, but does not encourage lengthening the review process. The Council also opposes extensive congressional reporting requirements for individual regulatory filing that could politicize the U.S. investment climate and shift CFIUS resources from their appropriate national security focus. The Council will continue to follow this legislation's progress closely.
On May 22, the House passed the Federal Housing Finance Reform Act (H.R. 1427) by a vote of 313-104. The legislation would restrict Fannie Mae and Freddie Mac's combined $1.4 trillion portfolios based on safety and soundness while also creating a $2.2 billion affordable housing fund. An amendment introduced by Congresswoman Bean (D-IL) and Congressman Neugebauer (D-TX) would allow the regulator to restrict or cap the lenders' portfolios if it poses a risk to the companies themselves, but not to the overall economy.
House Financial Services Committee Chairman Frank (D-MA) opposed the amendment, which was adopted by a vote of 383-36, stating that the amendment would undermine the agreement previously established with Treasury Secretary Paulson to allow the new regulator to restrict Fannie and Freddie's portfolios based on safety and soundness. Chairman Frank has indicated that this issue will be reconsidered at conference. Senate Financial Services Committee Chairman Dodd (D-CT) plans to consider legislation that would create stronger oversight at government-sponsored enterprises such as Fannie Mae and Freddie Mac in July. Both Chairman Dodd and Ranking Member Shelby (R-AL) are negotiating behind the scenes in order to move the legislation forward.
Health
Both the House and the Senate have considered the appropriations level for the National Institutes of Health. Congressman Markey (D-MA) proposed a 6.7 percent increase in NIH funding over five years. The House Appropriations Subcommittee on Labor and Health and Human Services did not support the request for a 6.7 percent increase, but the subcommittee agreed to increase the appropriation by 1.9 percent, which would restore some of the $338 million cut requested in the President's budget. The Senate Appropriations Subcommittee on Labor and Health and Human Services recently approved an increase of 2.8 percent to the NIH appropriation for FY 2008. The Council supports, at the very least, a 2.8 percent increase in NIH funding to restore the cut proposed in the President's budget, given the importance of NIH funding to the New England economy.
On May 9, the Senate passed the Prescription Drug User Fee Act (S. 1082), or FDA Reauthorization, by a vote of 93-1. The bill would reauthorize an FDA program that funds the review of new pharmaceuticals and allows the FDA to establish new risk mitigation strategies, including post-approval clinical trials and label changes. The legislation also addresses direct-to-consumer advertising and sets forth provisions regarding user fees for human drug applications and supplements starting in FY 2008. Generic versions of biologic drugs will be addressed later this summer and will be included in the negotiations with the House during conference on the FDA reauthorization bill.
In May, the budget conference report revealed that both chambers of the U.S. Congress agreed that the state health insurance program (SCHIP) should receive $50 billion over five years in increased funding to provide health insurance for more eligible low-income children. Although the final budget resolution did not specify where the money will come from, two solutions have been proposed. One would increase the tobacco tax by 61 cents per pack, which would raise $35 billion to cover the 6 million children already enrolled in SCHIP and expand the program. Senate Health, Education, Labor, and Pensions Committee Chairman Kennedy (D-MA) has expressed his support of this method of funding the program in the reauthorization of SCHIP.
House Ways and Means Health Subcommittee Chairman Stark (D-CA) recognizes that the tobacco tax is a possible solution, but continues to explore the possibility of cutting Medicare payments to some fee-for-service providers. Chairman Stark has also called for a review of potential overpayments to Medicare Advantage plans. The New England Council has long opposed cuts in fee-for-service under Medicare and will continue to monitor the method that Congress will use to pay for the proposed $50 billion increase to SCHIP. The Council also recognizes that SCHIP is a critical program for uninsured children, especially in New England where three of the six states have experiences short-falls in funding, and we will continue to advocate for a strong reauthorization of the program.
Energy
On June 21, the Senate passed an amended version of H.R. 6, the CLEAN Energy Act, by a vote of 65-27. The bill passed the House without amendment on January 18, by a vote of 264-163. Because of the more than 50 Senate amendments, the legislation will be sent back to the House so that the chamber can consider the bill. The House version of the bill addresses ending oil subsidies, suspending royalties from oil leases, and accelerating the use of renewable energy sources and alternative fuels. The Senate amended the legislation to include provisions that would increase the electricity production through renewable energy sources and create new Corporate Average Fuel Economy (CAFE) standards. The House has not yet reconsidered the bill.
Technology
On May 2, the House passed the National Science Foundation Authorization Act (H.R. 1867) by a vote of 399-17. The bill authorizes appropriations to the NSF for FY 2008-2010. The reauthorization increases funding for science, technology, engineering, and mathematics (STEM) education reform programs. The bill also contains provisions that provide incentives to undergraduate students who plan to receive a degree in a STEM field
On May 3, the House passed by a vote of 385-23 the Technology Innovation and Manufacturing Stimulation Act (H.R. 1868), which would reauthorize appropriations to the National Institute of Standards and Technology (NIST). The legislation also establishes the Technology Innovation Program to replace the Advanced Technology Program to better assist U.S. businesses and higher education institutions or other similar organizations to accelerate the development and application of high-risk, high-reward technologies.
On May 3, Representatives Sander Levin (D-MI) and Dave Camp (R-MI) introduced the Investment in America Act of 2007 (H.R. 2138), which would strengthen and make permanent the research and development tax credit. Representatives DeLauro (D-CT), Larson (D-CT), Murphy (D-CT), McGovern (D-MA), Neal (D-MA) and Courtney (D-CT) have all cosponsored the bill. Making the R&D tax credit permanent has been a long-standing priority of the Council, and we will continue to follow the House bill and hope to see it through to final passage in both chambers of Congress.
On May 17, the House Judiciary, Courts, the Internet and Intellectual Property Subcommittee approved a patent reform bill without amendment that would create a new system to review the nation's patent system. The Senate Judiciary Committee has had several hearings regarding the Senate version of the legislation. The Senate bill would establish new standards for calculating damages in a patent infringement suit in addition to the new system of review proposed by the House bill. Senators Coburn, Grassley, Sessions, and Brownback sent a letter to Senate Judiciary Chairman Leahy (D-VT) indicating their desire to move the legislation forward, while also expressing the need to further investigate the bill and address concerns regarding provisions that could undermine innovation, increase frivolous litigation or undermine property rights. If the bill reaches final passage, this would constitute the first change to the patent system in 50 years.
On June 4, the Council sent a letter to the Senate Members of the New England congressional delegation supporting the Cantwell amendment to the comprehensive immigration reform bill (S. 1348). The amendment would have established an employer-sponsored merit system of review to complement the current Senate proposal as well as restored key H-1B visa exemptions passed by the Senate last year. Both provisions were viewed as being critical for New England businesses to recruit the highly-educated, foreign-born workers they need. On June 7, the Senate failed to invoke cloture on the immigration reform bill and the Cantwell amendment was not considered before that time.
On June 19, the Senate once again agreed to consider comprehensive immigration reform in bill S. 1639, and Senator Cantwell introduced a similar amendment to the previously proposed provision to S. 1348. Once again, on June 28, the Senate failed to invoke cloture on the bill by a vote of 46-53. Now that immigration reform in the Senate has come to a halt, many are focusing on the House plans regarding this issue. The Council will continue to monitor the progress of the House on comprehensive immigration reform and continue to support stand-alone legislation in both the House and the Senate that would either eliminate the H-1B visa cap or increase the cap while maintaining the exemption of the higher education institutions
Education
The U.S. Department of Education has opened a public comment period for stakeholders in the accreditation process to voice concerns regarding the department's proposed regulation changes regarding accreditation of higher education institutions. The New England Council's Higher Education Committee joined with the Association of Independent Colleges and Universities of Massachusetts, the Association of Vermont Independent Colleges, the Connecticut Conference of Independent Colleges, the Rhode Island Independent Higher Education Association, the New Hampshire College and University Council, and the Maine Independent College Association to send a statement on accreditation regulation to the U.S. Department of Education.
The statement noted that the higher education institutions of New England represented by the afore mentioned organizations are committed to providing quality education; to measuring higher education's effectiveness; and to being open and transparent about the education experience on the institutions' campuses. These institutions, however, have serious concerns regarding the recommended policies being pursued by the U.S. Department of Education relative to these issues and the higher education accreditation process. The Council and these institutions oppose the nationalizing of the accreditation system given the diverse missions of each of the universities and colleges based in New England.
Data Security
On May 3, the Senate Judiciary Committee approved legislation that would establish a national standard for the protection of personal data to prevent identity theft. The chairman of the committee, Senator Leahy (D-VT), introduced the legislation, which would require companies to report data breaches if sensitive personal information has been accessed.
Lobbying Reform
On May 24, the House passed the Lobbying Transparency Act (H.R. 2317). On June 26, the Senate attempted to pass the bill by unanimous consent and send it to conference, but the legislation was blocked from passage due to procedural maneuvering. The legislation would require that contributions made to a federal candidate, political party committee, a PAC, or a multi-candidate political committee exceeding $5,000 be disclosed in a quarterly report to the Secretary of the Senate and the Clerk of the House of Representatives and that the recipient be notified of the contribution by certified mail before such a report is filed
Hearings of Interest on the Hill
Please note that times, dates and locations may change without notice. Call Committee to confirm before attending.
Senate
Committee: Senate Judiciary Committee
Topic: Executive Business Meeting, S. 1145, Patent Reform Act of 2007
Time: 9:00 AM
Date: Thursday, July 12, 2007
Location: 226 Dirksen Senate Office Building
House
Committee: Rules
Topic: College Cost Reduction
Time: 5:00PM
Date: Tuesday, July 10, 2007
Location: H-313 Capitol
Committee: Transportation and Infrastructure
Topic: Amtrak Capital Needs
Time: 10:00AM
Date: Wednesday, July 11, 2007
Location: 2167 Rayburn House Office Building
Science and Technology
Topic: Pending Legislation
Time: 10:00AM
Date: Wednesday, July 11, 2007
Location: 2318 Rayburn House Office Building
Committee: Financial Services
Topic: Affordable Housing Trust Fund
Time: 10:00AM
Date: Thursday, July 12, 2007
Location: 2128 Rayburn House Office Building
Appropriation Mark Ups:
Senate
General Government Appropriations
Time: 2:30PM
Date: Tuesday, July 10, 2007
Location: 192 Dirksen Senate Office Building
Financial Services Appropriations
Time: 2:00PM
Date: Thursday, July 12, 2007
Location: 106 Dirksen Senate Office Building
House
Transport-HUD and Labor-HHS Appropriations
Time: 10:00AM
Date: Wednesday, July 11, 2007
Location: 2359 Rayburn House Office Building
Commerce-Justice-Science Appropriations
Time: TBA
Date: Thursday, July 12, 2007
Location: TBA
Energy-Water Appropriations
Time: 10:00AM
Date: Thursday, July 12, 2007
Location: 2359 Rayburn House Office Building
Agriculture, Rural Development and FDA Subcommittee Markup
Time: 3:00PM
Date: Thursday, July 12, 2007
Location: 2362-A Rayburn House Office Building
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