September 2008

September 30, 2008

Rail Bill in Senate

The Senate is expected to vote Wednesday on final passage of a House-passed rail package (H.R. 2095). The bill combines several rail-related bills passed by the Senate or the House earlier this Congress, including Amtrak reauthorization, rail safety, rail solid waste and funding for the Washington Metropolitan Area Transit Authority. The package includes $1.9 billion for a new state grant program for rail projects and revised language on public-private partnership proposals for high-speed rail.

Fusion Center Bill Sent to President

Yesterday, the House approved H.R. 6098, the Personnel Reimbursement for Intelligence Cooperation and Enhancement of Homeland Security Act (the PRICE of Homeland Security Act). The bill amends the Homeland Security Act of 2002 to permit Urban Area Security Initiative or State Homeland Security Grant Program funds to be used for paying intelligence analysts regardless of whether they are current or new full-time employees or contract employees and without limitations on the period of time they can serve under awarded grants. The Senate passed the bill last week. It will now go to the president, who is expected to sign it.

QI Funding Bill Sent to President

The House cleared S. 3560, which provides $45 million for the Medicare qualifying individual (QI) program for FY 2008 and FY 2009. The Senate also has approved the measure and the president is expected to sign it. The bill includes an offset that requires states to participate in a federal data matching system to determine Medicaid eligibility as of October 1, 2009.

CMS Issues Medicaid Rule on Direct Personal Assistance Services

Yesterday, the Center for Medicare and Medicaid Services (CMS) released a rule providing state flexibility to allow Medicaid enrollees to use personal assistance services. The rule implements a provision of the Deficit Reduction Act of 2005 (P.L. 109-171) that allows states to adopt a state plan option to provide personal assistance services in ways that previously required waivers. The final rule is scheduled to be published in the October 3, 2008, issue of the Federal Register and to be effective November 3, 2008. A copy of the regulation is attached (http://inside.ffis.org//ff/medrule0930.pdf).

HHS Awards Grants to Help Older Americans, Vets Remain Independent

The Department of Health and Human Services (HHS) announced $36 million in new grant programs to 28 states to help older Americans and veterans remain independent and to support people with Alzheimer's disease to remain in their homes and communities. More information is available at the following link:

http://www.hhs.gov/news/press/2008pres/09/20080929a.html

September 29, 2008

Congress Says Yes to CR, No to Stimulus

Congress passed a continuing resolution (CR) over the weekend to fund the federal government until March 2009. The bill funds most programs at FY 2008 levels with some exceptions.  Congress did not renew the moratorium on offshore drilling that is typically included in the annual appropriations process. An FFIS brief describing the CR is forthcoming.

Efforts to pass a stimulus package fell short, with the House passing its $60 billion measure but the Senate failing to reach cloture. The White House had threatened to veto the House and Senate stimulus packages.

Revised Financial System Rescue Plan Unveiled

Congressional leaders and the administration released a revised financial services rescue package that the House will consider today. The thrust of the bill is a $700 billion program to purchase and guarantee troubled mortgages and mortgage-backed securities. The release of funds would be graduated with an immediate release of $250 billion. Release of the remaining authority requires certifications and no congressional disapproval. Authority to purchase and guarantee troubled assets would expire on December 31, 2009, unless extended for an additional year. Profits from the sale of troubled assets must be used to pay down the national debt. The revised package contains numerous consumer and oversight protections. The proposal also requires a report to Congress by April 30, 2009, on the effectiveness of the financial regulatory system and recommendations for improvements.

House Approves Energy Tax Credits

Last Friday, the House approved a $14 billion package that extends renewable energy tax credits as part of a $62 billion tax bill. The "Renewable Energy and Job Creation Tax Act of 2008" (H.R. 7060) extends the production tax credit for wind, solar and other renewable energy projects and provides incentives for plug-in hybrids, efficient homes, biofuels and advanced coal. The bill removes provisions in the Senate bill (H.R. 6049) that would provide tax incentives to refineries that process oil shale and oil sands, reauthorize the "Secure Rural Schools and Community Self-Determination Act" through 2011, and fully fund the Payment in Lieu of Taxes (PILT) program for 2009. It is unclear if the Senate will take up the House bill, as Senate leaders had urged the House to pass the Senate bill, citing strong bipartisan agreement. President Bush released a Statement of Administration Policy that endorses the Senate tax package and threatens to veto the House bill.

FEMA Awards Grants to Emergency Response Agencies

Friday, the Federal Emergency Management Agency (FEMA) announced FY 2008 Commercial Equipment Direct Assistance Program (CEDAP) award to 1,045 emergency response agencies in 46 states and Puerto Rico. Eligibility for the $17.6 million CEDAP awards is limited to law enforcement agencies, fire departments and other emergency responder agencies with specific financial and capability needs. FY 2008 CEDAP funds equipment and training in five categories: extrication devices; thermal imaging, night vision and video surveillance tools; chemical, biological and radiological detection tools; information technology and risk management tools; and vehicle tracking tools. More information is available at the following link:

http://www.fema.gov/government/grant/cedap/index.shtm

September 26, 2008

Stimulus and Tax Extenders

The House is expected to take up a stimulus package and a tax extenders bill today. The stimulus package will reportedly include enhanced Medicaid payments for states, an extension of unemployment benefits, additional funding for food stamps and increased investments in infrastructure. 

Senate leaders unveiled a similar, but not identical, $56 billion package on Thursday. A copy of the Senate proposal is attached (http://inside.ffis.org//ff/ReidByrdstimulus_1.pdf).

The House also will vote on a fully offset tax extenders package that includes several popular business and energy tax credits. Several members of the Senate and the president have indicated opposition to the package based on the offsets used to pay for the extensions. The Senate has already passed a partially offset tax bill that includes a one-year patch of the Alternative Minimum Tax (AMT). The House passed a stand-alone AMT bill earlier this week.

Senate Approves QI Funding

Yesterday, the Senate approved a package of health care technical changes. The bill, S. 3560, would increase funding for the Medicare Qualifying Individuals program by $45 million to avert expected shortfalls for the current fiscal year and FY 2009. In addition, the bill clarifies education or training activities under the Medicaid Integrity Program that would be eligible for reimbursement by Medicaid. The measure also requires states to have a Medicaid eligibility determination system that provides for data matching through the Public Assistance Reporting Information System by October 1, 2009, in order to receive Medicaid matching funds for reimbursement of state costs for automated data systems. The House could consider the measure shortly.

House Passes Health Center Reauthorization

The House yesterday passed several public health-related measures, including H.R. 1343, the "Health Care Safety Net Act of 2008." The Senate approved H.R. 1343 on September 24. The president is expected to sign the bill, which would reauthorize community health centers for five years, increasing authorized funding from $2.2 billion in FY 2008 to $3.3 billion in FY 2012.

House Passes Fire Administration Reauthorization

On Wednesday, the House passed the "United States Fire Administration Reauthorization Act of 2008" (S. 2606), which authorizes $293 million in funding through FY 2012 for the U.S. Fire Administration.  The Senate passed the measure on September 18. S. 2606 will now go to the president, who is expected to sign it.    

Defense Bill Increases Authorization for Impact Aid

Tuesday, the House approved the conference agreement for the "Duncan Hunter National Defense Authorization Act" (S. 3001) for FY 2009. The bill authorizes $35 million for "Assistance to Schools with Significant Numbers of Military Dependent Students" (known as "Supplemental Impact Aid") and $15 million for "Assistance to Schools with Enrollment Changes Due to Base Closure, Force Structure Changes, or Force Relocation" (known as "Impact Aid for Large Scale Rebasing"). The current authorizations for these programs are $30 million and $10 million. The bill is awaiting final passage in the Senate.

September 25, 2008

CR Heads to Senate

Yesterday, the House overwhelmingly passed a continuing resolution (CR) to fund government operations until March 2009. The $600 billion package funds most programs at FY 2008 levels while funding programs in the Defense, Military Construction and Homeland Security appropriations bills at FY 2009 levels. The bill also includes $5.2 billion for low-income heating and cooling assistance (LIHEAP), $2.5 billion for Pell Grants, $22.9 billion for disaster relief and a $25 billion loan program for the auto industry.

House Splits Senate Tax Bill; Approves AMT Fix

The House has decided not to follow the Senate's lead on tax extenders and has instead approved a stand-alone alternative minimum tax (AMT) fix for one year. Like the Senate provision, the one-year patch is not offset. The House plans to address other expiring tax provisions, such as energy tax credits and several business tax provisions, in a separate bill. Unlike the Senate package, the House plans to fully offset the energy and business tax titles. Authors of the Senate legislation continue to warn that changes to the tax titles may threaten passage in the Senate.

House Passes DoD Conference Report

Yesterday, the House passed the "National Defense Authorization Act of 2009." The measure would authorize $611 billion in FY 2009 spending for the departments of Defense and Energy. The Senate is expected to consider the conference report on Thursday or Friday.

House Passes Rail Package

The House yesterday passed H.R. 2095, which combines several rail-related bills passed by the Senate or House earlier this Congress, including Amtrak reauthorization, rail safety, rail solid waste and funding for the Washington Metropolitan Area Transit Authority. The Senate is expected to consider H.R. 2095 this week.

Fate of Mental Health Parity Bill Unclear

Yesterday, efforts failed in the Senate to "hotline" a House-passed mental health parity bill (H.R. 6983). Congressional staff indicated there were concerns tied to the process for passing a bipartisan tax extenders/energy tax credits/mental health parity package as well as the $3.4 billion offset needed for the mental health parity provisions. The Senate approved the comprehensive bipartisan bill on Tuesday, but the House plans to consider it in pieces. The House did not include the mental health parity piece.

Finance Leaders Seek Approval for Health Care Technical Corrections Senate Finance Committee

Senate Finance Committee leaders introduced legislation that includes a package of health care technical changes. The "QI Program Supplemental Funding Act of 2008" would increase funding for Medicare's Qualifying Individuals (QI) program by $45 million, the amount needed to fill the estimated funding shortfall for the remainder of FY 2008 and FY 2009. Under the QI program, individuals with incomes between 120-135% of the federal poverty level may be eligible for payment of their Medicare Part B premiums. The bill clarifies education or training activities under the Medicaid Integrity Program that would be eligible for reimbursement by Medicaid. The measure also includes a provision that would require states to have a Medicaid eligibility determination system that provides for data matching through the Public Assistance Reporting Information System as of October 1, 2009, in order to receive Medicaid federal matching funds for reimbursement of state costs for automated data systems.

September 24, 2008

Update on Congressional Agenda

Yesterday, Congress unveiled a Continuing Resolution (CR) to fund the government through March 6, 2009. The plan would hold most funding at FY 2008 levels, but use FY 2009 levels found in the Defense, Homeland Security and Military Construction appropriations measures. Other provisions could move with the CR, including heating and cooling assistance and an extension of unemployment insurance.

Additionally, the House is likely to consider many of the tax extenders passed by the Senate. Major provisions include an extension of several expiring energy tax provisions, expiring research and development credits, the deduction for state and local sales taxes and a one-year patch for the Alternative Minimum Tax.

Finally, both the House and Senate are working to address the financial crisis and the administration's response to it. 

Senate Approves Energy Tax Credits

Yesterday, the Senate approved an energy tax credit amendment as part of its overall tax extenders bill. The package extends the production tax credit for wind, solar and other renewable energy projects and provides incentives for plug-in hybrids, efficient homes, biofuels, advanced coal and refineries that process oil shale and oil sands. The bill also reauthorizes the Secure Rural Schools and Community Self-Determination Act through 2011 and fully funds the Payment in Lieu of Taxes (PILT) program for 2009.

To offset the tax extensions, the package freezes the Section 199 domestic manufacturing deduction for oil and gas companies, extends and raises the per-barrel tax that feeds into the federal Oil Spill Liability Trust Fund, alters tax rules on oil and gas companies' income on overseas projects and tightens reporting rules on transactions involving trading of stock and other securities.

Mental Health Parity Measures Move

The House approved H.R. 6983, mental health parity legislation, while the Senate included similar parity language as part of its bipartisan agreement on energy and tax extenders (H.R. 6049). The provisions approved by both chambers reflect a compromise reached earlier this year. Final passage of mental health parity legislation could be tied to future action on H.R. 6049. The parity measure would require group health care plans to provide the same coverage for mental health and substance use disorders as is provided for medical and surgical benefits. The administration has indicated its support for the mental health parity legislation included in the Senate amendments to H.R. 6049.

House and Senate Pass FAA Extension

Yesterday, the House and Senate passed the "Federal Aviation Administration Extension Act of 2008, Part II" (H.R. 6984). The bill extends all taxes that fund the Airport and Airway Trust Fund through March 31, 2009. These taxes were set to expire September 30, 2008. It also extends Aviation Improvement Program contract authority through April 1, 2009. Similar language is included in a draft continuing resolution (CR), although authority to collect aviation taxes would expire March 6, 2009, the CR's expiration date.

President Signs Extension to Ensure Access to Student Loans

On September 17, President Bush signed a one-year extension of the "Ensuring Continued Access to Student Loans Act of 2008" (H.R. 6889), extending the program until July 1, 2010. The law, which was passed earlier this year, authorizes the secretary of education to purchase student loans from lenders in the Federal Student Loan Program in the event those lenders are unable to access needed capital. It also increases loan limits for unsubsidized Stafford loans and delays repayment for parent borrowers of PLUS loans.

September 23, 2008

School Security Grants Match Could Change 

On September 17, 2008, the House passed H.R. 2352, a bill that would  increase the federal matching rate for Department of Justice (DOJ) school security grants from 50 to 80%. The required state and local match would consequently drop from 50 to 20%. The bill would also increase the authorization level for school security grants to $50 million for each of fiscal years (FY) 2009 and 2010. Current law authorizes these grants at $30 million through FY 2009. The Senate has not voted on the companion bill, S. 1217.

FHWA Affirms HTF Solvency

The Federal Highway Administration (FHWA) has provided an update on the status of the Highway Trust Fund (HTF). As a result of recently passed legislation, which transferred $8 billion from the general fund to the HTF, FHWA was able to pay on September 18, 2008, all current reimbursement requests from states. No state received a pro-rated reimbursement, which was FHWA's plan if the HTF had run out of money. FHWA now projects that the HTF will have a balance of approximately $1-$2 billion at the end of FY 2009, which is when the current surface transportation authorization expires. Although FHWA does not anticipate a shortfall, the department has instituted new review processes to ensure that notification to stakeholders of any potential future shortfall will come earlier. These review processes include closer daily monitoring of vehicle miles traveled, HTF receipts and general economic indicators.

September 18, 2008

FFIS Publishes FY 2010 FMAP Projections

Based on the revised personal income data released today, FFIS has published the final FY 2010 federal medical assistance percentage (FMAP) rates for Medicaid and other programs. These have been sent to FFIS subscribers.

Senate Passes Defense Authorization Bill

The Senate has passed S. 3001, the "National Defense Authorization Act of 2009." S. 3001 goes to conference next week with the House version of the bill (H.R. 5658). A conference report could be completed before Congress adjourns at the end of the month.

House Clears Compromise Child Welfare Bill; Senate Action Imminent

Yesterday, the House passed H.R. 6893, the "Fostering Connections to Success and Increasing Adoptions Act of 2008." H.R. 6893 would reauthorize and increase adoption incentives, allow federal foster care assistance to continue up to age 21 for youth engaged in school, work or other constructive activities, provide direct federal foster care assistance to tribal governments for youth in their care and increase federal assistance to states to support kinship-related care. The bill will likely reach the Senate in the next few days. President Bush is expected to sign it. Congress is expediting the measure prior to the expiration of adoption incentives on September 30.

Senate Energy Tax Package Details Released

Yesterday, the Senate Finance Committee released details of a $17 billion energy tax package. The package also includes reauthorization of the Secure Rural Schools and Community Self-Determination Act through 2011 and full funding for the Payment in Lieu of Taxes (PILT) program for FY 2009.

Senate Committee Reports Bridge Bill

The Senate Environment and Public Works (EPW) Committee passed the "National Highway Bridge Reconstruction and Inspection Act" (H.R. 3999). The bill specifies that states may not transfer bridge funds to other apportioned programs unless the Secretary of Transportation is satisfied that the state has no bridges on the National Highway System that are eligible for replacement. The bill requires the secretary to develop a system to inventory and prioritize replacement or rehabilitation of all federal-aid bridges that are structurally deficient or functionally obsolete. As a condition to receive federal assistance under the measure, states must develop a five-year performance plan for highway bridge inspection, which must be approved by the secretary. The bill also requires states to inspect all highway bridges every two years. An additional $1 billion is authorized under H.R. 3999 for the federal bridge program. Senator Boxer will try to attach this legislation to a Continuing Resolution. The House passed the bill in July.

Senate Committee Marks Up State Revolving Loan Fund Bill

Wednesday, the Senate EPW Committee approved S. 3500, which would reauthorize the Clean Water State Revolving Loan Fund (SRF) at $20 billion over 5 years and the Drinking Water SRF at $15 billion over five years. The House has already approved a bill (H.R.720) to reauthorize just the Clean Water program for $14 billion over four years.

September 17, 2008

House Passes Energy Bill

Tuesday, the House passed a bill that would allow drilling more than 100 miles from the coasts and 50-100 miles offshore if states opt to allow it. The bill would not provide drilling royalties to states that allow drilling. The proposal would create a national renewable electricity standard, extend the renewable energy tax credits, establish a fund for carbon capture and storage R&D and require oil companies to use their existing oil leases or lose them. The bill is fully funded by several revenue raisers on the oil and gas industry. 

September 16, 2008

Child Welfare Compromise Reached

Yesterday, H.R. 6893, the "Fostering Connections to Success and Increasing Adoptions Act of 2008," was introduced. The bill is a bipartisan child welfare proposal that would increase incentives for moving children from foster care to adoptive homes, allow more children to be cared for by their own relatives and in their own communities and create opportunities for older children aging out of the foster care system. The bill reflects a compromise reached between the House Ways and Means Subcommittee and Senate Finance Committee leadership. The House is slated to consider the measure today. Lawmakers hope the bill can become law before current adoption incentives expire on September 30.

President Signs HTF Legislation

Yesterday, the President signed H.R. 6532, which transfers $8 billion from the general fund to the Highway Trust Fund (HTF) to cover its funding shortfall. The funds will be transferred immediately, eliminating the need to prorate reimbursement payments to states for federally eligible highway projects.

September 15, 2008

New Stimulus Package Expected

This week, House leadership is expected to introduce a $50 billion economic stimulus package that will include:

· Enhanced Medicaid matching funds
· Infrastructure assistance
· Assistance for families (food stamps, Low Income Home Energy Assistance)--might also include weatherization assistance and extended unemployment benefits.

Details will be reported as they become available.

September 12, 2008

HTF Bill Passes House, Goes to President

Yesterday, the House passed the Senate's version of H.R. 6532, which would transfer $8 billion from the general fund to the Highway Trust Fund (HTF) to address its shortfall. The president is expected to sign the legislation today. The funds will transfer to the HTF immediately, eliminating the need to pro-rate state reimbursements for federal-aid highway projects.

Senators Unveil New Energy Tax Package

Senate Finance Committee Chair Baucus and Ranking Member Grassley outlined a new energy tax package. The measure would include a consumer credit for plug-in electric vehicles, new credits for clean coal and carbon dioxide storage and incentives for smart meters. The bill would extend the renewable energy production tax credit, the investment tax credits for solar energy and fuel cells, the residential and commercial energy efficiency property credits and the nuclear production credit. In addition, the proposal would extend the ethanol excise tax credit, the biodiesel production credit and the alternative fuels and refueling stations credits. The proposal fully offsets its cost by reducing a domestic manufacturing deduction for the five largest oil and gas companies and establishing a 13% excise tax on oil or natural gas produced from federal lands on the outer continental shelf in the Gulf of Mexico. The measure also would extend the oil-spill tax and tighten rules on brokers to report to the IRS transactions involving trading of stock and other securities.

DHS Announces Availability of Emergency Preparedness Grants

The Department of Homeland Security (DHS) recently announced FY 2008 allocations for the Emergency Operations Center Grant Program (http://inside.ffis.org//ff/EmerOps.pdf) and the Interoperable Emergency Communications Grant Program (http://inside.ffis.org//ff/Interop.pdf). A total of $14.5 million is being awarded under the former and $48.5 million under the latter.

September 11, 2008

Senate Passes Highway Trust Fund Transfer

The Senate passed an amended version of H.R. 6532, which transfers $8 billion from the general fund to the Highway Trust Fund to address its shortfall. The version the Senate passed changes the effective date from September 30, 2008, to immediately upon passage. H.R. 6532 was passed by the House in June; because of the amendment, the House will vote on the Senate version of the bill today. President Bush is expected to sign the bill.

Congressional Briefing on TANF Proposed Rule

On Monday, September 15, the House Ways and Means Subcommittee on Income Security and Family Support will host a congressional briefing on the potential impact of a proposed Temporary Assistance to Needy Families (TANF) regulation. The proposed rule, published in the Federal Register on August 8, 2008, and currently operating under a 60-day comment period, would eliminate a provision that allows states to receive a TANF caseload-reduction credit for maintenance-of-effort spending above the required level. At least 35 states are claiming this credit and would be at risk of not meeting their required work rates if the regulation is enacted. A bi-partisan panel of state officials is expected to testify on the fiscal impact of the proposed regulation.

Senate Finance Committee Marks Up Adoption Bill

On Wednesday, the Senate Finance Committee passed S. 3038, the "Improved Adoption Incentives and Relative Guardianship Support Act," which would reauthorize and improve the adoption incentives program, provide subsidized guardianships and other needed supports for relative caregivers and extend foster care to kids aging out of the system. The bill is now slated to be reintroduced in both the House and Senate under a new bill number and pushed through via unanimous consent. The bill would then be expedited to reach the president's desk by the close of the 110th Congress.

Details of House Leadership Energy Bill Emerge

House leaders plan to bring up a bill that would allow drilling more than 100 miles from the Atlantic and Pacific coasts and within 50-100 miles offshore if states opt to allow drilling off their coasts. It does not provide additional revenues from drilling royalties to states that allow drilling. In addition, the proposal would establish a national renewable electricity standard, extend the renewable energy tax credit, increase taxes on oil companies, establish a fund for carbon capture and storage R&D and require oil companies to use existing oil leases or lose them.

CMS Awards Real Choice Grants

The Center for Medicare and Medicaid Services (CMS) announced that seven states will receive a share of more than $8 million to increase awareness of home- and community-based long-term care options for people leaving hospitals who otherwise may enter a traditional nursing home. The grants are part of the Real Choice Systems Change grant program, which is designed to help states and territories rebalance their long-term support programs to help people with chronic illness or disabilities reside in their homes and participate in community life.

The press release is available at: http://www.cms.hhs.gov/apps/media/press_releases.asp.