The House returns from recess and is expected to begin the week with consideration of several measures under suspension of the rules, including a bill (H.R. 2594) to prohibit operators of U.S. civil aircraft from participating in the European Union emissions schemes, and six other bills, including public lands transfers measures. The House will also consider additional legislation under suspension of the rules, including IRS code legislation and an Arizona land conveyance bill (H.R. 1904).

GDP Rises 2.5 Percent in Third Quarter Ending Short Term Recession Fears

State Deficit Report, State Budget Solutions

Total Government Employment by State, Business Journals

Last week, Secretary of the Interior Ken Salazar yesterday launched a process designed to integrate the Office of Surface Mining Reclamation and Enforcement (OSM) into the Bureau of Land Management (BLM). The Secretarial Order issued will become effective December 1, 2011, following consultation with the White House, employees and Congress.

On October 27, the Federal Communications Commission (FCC) unanimously approved a comprehensive plan to reform the federal Universal Service Fund (USF). The order will cap the $4.5 million USF high-cost program, transition the program to support broadband services through a new Connect America Fund, and will utilize a competitive bidding process to support broadband deployment.

Last week, House Majority Leader Eric Cantor (R-VA) released the House’s 2012 schedule which will continue their plan of allowing members to spend one week in their home districts for every two weeks they spend in Washington. However, a number of congressional analysts have noted that this has led to the House and Senate often spending alternate weeks in Washington, making it difficult to find time to work together with the other chamber on such issues as the budget and federal deficit reduction.

Earlier today it was announced that President Obama is set to sign an executive order directing the Food and Drug Administration (FDA) to act to reduce and prevent prescription drug shortages. He will also announce his support for bipartisan legislation (S 296 and HR 2245) that White House officials say will give the FDA new tools to prevent drug shortages. The House bill would require companies to alert the FDA when they expect shortfalls. Both the House bill and the companion measure in the Senate have bipartisan support.

Last week, the Kaiser Family Foundation released a 50 state survey on Medicaid, noting that although states plan to increase total spending on Medicaid by 2 percent for FY 2012, the state specific share is expected to increase by 29 percent, due to the withdrawal of federal stimulus funds. The two percent increase in spending is primarily the result of a slow national economic recovery as well as other cost containment measures adopted in many states over the last decade. However, respondents in more than half of all states still reported a 50-50 chance of a Medicaid budget shortfall.

On October 26, the Department of Labor (DOL) issued guidance that outlines revisions to state allotment levels for the Workforce Investment Act (WIA) adult and dislocated worker fiscal year 2012 “advance” funds which become available to states this month. The revised levels reflect a 1.503 percent “across-the-board” funding cut included in the short-term Continuing Appropriations Acts of 2012.

Late last week, President Obama rounded out the first week of his new “we can’t wait” campaign with the launch on Friday of two initiatives aimed at boosting businesses. The President issued memoranda calling on federal agencies to speed the transfer of government research into commercial products, and to create a website that will help businesses access information about government programs and services.