The drama surrounding the eventual resolution of the Department of Homeland Security funding made two things very clear. First, that despite having majorities in both Houses, Republicans still have intra-chamber differences, and second, because of those differences Democrats still matter. With Leader McConnell reaffirming his commitment not to let the nation default on the debt limit, and with the end of extraordinary measures likely coinciding with the end of the fiscal year, it should all but guarantee an exciting fall.
Author: Thornrun
TRP Health Policy Report
Last Wednesday, the U.S. Supreme Court heard oral arguments in the King v. Burwell case, which challenges the legality of tax subsidies in the 37 states that have opted to use the federal government’s marketplace instead of creating their own. A divide among the justices was clear, with the liberal wing largely backing the Obama Administration and conservatives speaking out in favor of the challengers. A ruling on the case is expected in June, with the outcome likely to hinge on the votes of Chief Justice John Roberts and Justice Anthony Kennedy. The White House has said it does not have a contingency plan for an adverse ruling in King v. Burwell. Republicans leaders have begun reviewing ways to create a stopgap legislative fix, should the Supreme Court rule to immediately strike down the subsidies. But Justice Samuel Alito said that if that occurred, the court could give states a few extra months to comply before taking away the subsidies, perhaps until the end of tax season. "Going forward, there would be no harm done," he said.
TRP Health Policy Report
Congress narrowly avoided a partial shutdown of the Homeland Security Department last Friday night after the Senate approved a one-week extension (H.R. 240) of the agency’s funding and the House followed suit just hours before a midnight deadline. The House vote was 357-60, sending the bill to President Obama for his expected signature. Support for the one-week patch came together hours after a three-week short-term spending bill was defeated in the House in a blow to the chamber’s GOP leaders. After watching top House Republicans’ plan derail Friday afternoon, Democrats agreed to support the one-week stopgap spending measure to prevent a funding lapse. The one-week spending bill looked unlikely to break the immigration impasse that has tied up national security funding and paralyzed Capitol Hill. But the 11th-hour bid from GOP leaders bought a brief respite to hunt for a better strategy while averting a looming funding lapse.
TRP Financial Services Report
We have consistently said that this year’s Congress will be driven in large part by the various deadlines of significant programs and policies. Last week we saw how one of the first of these played out, as Congress struggled to pass a bill to keep the Department of Homeland Security from shutting down. In order to nearly avoid funding from running out, Congress passed a one week extension while setting up for an obscure possibility more fitting for the Hollywood political drama whose third season also premiered on Friday than for the actual Congress.
In other news, last week Senator Warren also pushed back at critics by saying that she is open to some “reasonable” changes to Dodd-Frank. Republicans will be eager to use Director Cordray’s appearance before the House Financial Services Committee this week, the first time he will be on the Hill with Republican majorities in both Houses, to prod him on whether he believes any of their proposals to modify the Bureau (i.e., transitioning from a Director to a Commission) are reasonable.
In other news, last week Senator Warren also pushed back at critics by saying that she is open to some “reasonable” changes to Dodd-Frank. Republicans will be eager to use Director Cordray’s appearance before the House Financial Services Committee this week, the first time he will be on the Hill with Republican majorities in both Houses, to prod him on whether he believes any of their proposals to modify the Bureau (i.e., transitioning from a Director to a Commission) are reasonable.
TRP Health Policy Report
The House and Senate were out last week for the Presidents Day recess. In Affordable Care Act (ACA) implementation news, the Obama Administration moved up next year’s healthcare enrollment period by three weeks, designating Jan. 31 as the last day to sign up. HHS officials said 2016 enrollment would begin Nov. 1, instead of Nov. 15, and would last three months. The White House announced the enrollment deadline extension last Friday after Senate Democrats called for the move earlier in the week. In an embarrassing setback, HHS officials also said that the Administration had sent 800,000 people incorrect information in January about the subsidies they received in 2014, which would affect their tax refunds. The agency will send out corrected forms in March. Continue reading “TRP Health Policy Report”
TRP Financial Services Report
Looking Ahead
Near Term
- The House and Senate are in recess this week. When they return the Senate has teed up the 4th cloture vote on H.R. 240, the Homeland Security funding bill. Unless Congress does something, funding for DHS will run out on Feb 27th.
TRP Health Policy Report
Last week saw more political jockeying over a Department of Homeland Security (DHS) funding bill (H.R. 240), but little progress in advancing the measure. Republicans had hoped to use the bill to reverse President Obama’s immigration policies, but their effort has been blocked by Senate Democrats. The impasse could jeopardize funding for the DHS, which expires on February 27. Before adjourning, the Senate struck a rare note of bipartisanship in voting 93-5 to approve Ash Carter’s nomination to serve as Secretary of Defense. In the House, members voted 272-142 last Friday to renew (H.R. 636) tax credits for small businesses. Last Thursday, the House advanced a separate tax extenders package (H.R. 644) regarding credits for charitable giving, which passed 279-137. In other legislative activity, the House voted Wednesday to force approval of the Keystone XL pipeline (S. 1), setting up a veto confrontation with President Obama. The legislation, which passed in the Senate in late January, was approved by a vote of 270-152.
TRP Health Policy Report
Last Monday, President Obama sent his fiscal 2016 budget request to Congress, and Cabinet officials spent the week explaining the details to House and Senate committees. HHS Secretary Sylvia Mathews Burwell appeared before the Senate Finance Committee last Wednesday to take questions about the Administration’s funding proposal and the implementation of the Affordable Care Act (ACA). In legislative activity, Senate Democrats blocked action on a bill (H.R. 240) to fund the Department of Homeland Security to protest Republican language on immigration. The 52-47 vote last Thursday, with 60 required to advance the bill, repeated similar votes held Tuesday and Wednesday. Passed last month by the House, the measure funds the agency through the remainder of the budget year while rolling back President Obama's executive actions to shield some immigrants from deportation. Separately, the Senate voted 99-0 for a bill (H.R. 203) to provide additional mental health and suicide prevention services for veterans. The bill now moves to the White House for the President's signature.
TRP Clean Energy Report
Last week, President Obama sent his fiscal 2016 budget request to Congress, and Cabinet officials spent the week explaining the details to relevant House and Senate committees. The Administration’s nearly $4 trillion budget called for a spending increase for both domestic programs and the military, including $74 billion in additional discretionary spending – about 7 percent above the level set under sequestration. The budget proposed to offset the new spending with a mix of taxes increases over a decade, mostly on top earners, to fund tax breaks for middle-class families, child care and education.
TRP Financial Services Report
Last week we once again witnessed an annual rite of passage in Washington. The President also released his budget, and although the recent budget battles have been more akin to the film classic Groundhog Day than your classic legislative process, last week’s release of the budget on Groundhog Day offered some constructive steps towards a roadmap forward. As discussed in more detail below, the President’s budget was a strong liberal statement and in some ways was seen by observers as more of a check on Hillary Clinton than Congressional Republicans, however it also offered just enough morsels to give Republicans a few areas for agreement. While this budget as a whole is clearly DOA in Congress, there are clearly certain areas, including tax reform, where both sides can find mutual areas for agreement.