This
Week on the Hill
The House
is in recess this week, returning July 5 while the Senate remains in session.
The Senate
returns today and will consider a judicial nomination. Tomorrow there is a
cloture vote scheduled for the conference report that covers Zika virus funding
and the fiscal year 2017 Military Construction-Veterans Affairs spending bill (H.R. 2577).
The Senate also hopes to complete action on the House-passed legislation (H.R. 5278)
to address the Puerto Rico debt crisis, as the next large bond payment is due
July 1, although several Senate Democrats are opposed to the legislation. Several
committees scheduled hearings for the week: the Health, Education, Labor and
Pensions Committee will hold a hearing
Wednesday on Every Student Succeeds Act
implementation; and the Homeland Security and Government Affairs Committee will
hold a hearing
Wednesday on preparing for the Zika virus.
Fiscal Year 2017 Budget Update
The House
Appropriations Committee approved the $41.1 billion Homeland
Security spending measure for fiscal year 2017 last week, after adding $49
million for counter-extremism and terror preparedness efforts. The $41.1 billion
in discretionary funding is $100 million higher than enacted levels and $432
million above the President’s request. The State-Foreign
Operations subcommittee released its draft legislation for the fiscal year
2017 spending bill, allocating $52 billion in discretionary funds, which is
$600 million below fiscal year 2016 enacted levels and $100 million below the
Senate spending amount. The bill includes $3.1 billion for refugees, the same
as fiscal year 2016, but reverts to fiscal year 2015 amounts for refugee
settlement in the United States. The House had planned to vote on the $21.7
billion Financial Services bill last week, but this was delayed when the House
adjourned early after Democrats held a sit-in for votes on gun control
legislation. The House is in recess this week and no budget action is scheduled.
The Senate
continued consideration of the $56.3 billion Commerce-Justice-Science bill last
week, but action stalled after several gun control votes failed to advance. A
proposal from Senator Susan Collins (R-ME) that would ban gun sales to
individuals on the no-fly list survived a vote to table (46-52) but failed to
receive the 60 votes needed to advance. The Senate is not expected to resume
consideration of the spending measure until after the July 4 recess. This week
the State-Foreign
Operations subcommittee will markup its fiscal year 2017 spending measure
on Tuesday and the full Appropriations Committee will hold a markup on
Thursday.
FAA Releases Commercial Drone Rule
The
Department of Transportation’s Federal Aviation Administration (FAA) released
a final
rule to regulate small unmanned aircraft systems (UAS or drones) not used
for hobbyist operations; small drones are defined as those weighing 55 pounds
or less. The rule takes effect in 60 days and is designed to minimize the risks
to other aircraft and people and property on the ground. Notable provisions
include requiring the person flying the drone to be at least 16 years old and
have a remote pilot certificate with a small drone rating, the drone must be
kept in sight at all times, flying may only occur during daylight and twilight
at elevations up to 400 feet and speeds up to 100 miles per hour, and the rule eliminates
the waiver process currently used by the FAA for commercial drone use. A fact
sheet on the rule can be found here
and a summary can be found here.
HHS
Awards $156 Million to Expand Oral Health Services
The Department of
Health and Human Services (HHS) announced nearly $156 million in funding to
support 420 health centers in 47 states, the District of Columbia and Puerto
Rico to increase access to integrated oral health care services and improve
oral health outcomes for health center program patients. The funding enables
health centers to expand integrated oral health care services and increase the
number of patients served. With the additional funding, health centers across
the country will expand their capacity through the hiring of 1,600 new
dentists, dental hygienists, assistants, aides and technicians to treat nearly
785,000 new patients.
Zika
Package Passes House, Receives Veto Threat
Late
Wednesday evening an agreement was reached between House and Senate Republicans
and on Thursday the House passed a conference
report by a vote of 239-171 that would provide $1.1 billion for Zika
response and $82.5 billion for the fiscal year 2017 Military
Construction-Veterans Affairs spending bill. A spokesman for the President indicated
strong opposition to the bill, and said the President would veto the bill if it
reached his desk. Out of the $1.1 billion for Zika funds, $750 million would be
offset, repurposing $107 million from unspent Ebola money, $100 million from
Department of Health and Human Services administrative funds, and $543 million
in Affordable Care Act funds. After
the conference report was announced, several Democrats objected to the
proposal, and it is uncertain if the Senate will get to the 60 votes necessary
to advance the bill, with a procedural vote scheduled for early this week. July
1 is seen by many as a critical deadline to provide additional resources.
House
Republicans Introduce Health Care Plan
Last week
House Republicans unveiled their plan
to repeal and replace the Affordable Care
Act, as part of Speaker Paul Ryan’s (R-WI) "A Better Way". The proposal
includes changes to Medicare, Medicaid, malpractice law and medical research
funding. Highlights include a repeal of the individual and employer coverage
mandates and associated penalties, although the plan does maintain the
requirement for children to be covered by their parents’ plan until age 26 and
the ban on insurers removing sick customers from their plans. Specific to
states, the proposal maximizes state flexibility in Medicaid by providing
states a choice of either a per capita allotment or a block grant; supports
medical liability reform that includes caps on non-economic damages; provides
at least $25 billion for State Innovation Grants; and provides at least $25
billion in dedicated federal funding for state-based high-risk pools.
Supreme Court Delivers Several
Opinions Affecting States
The
Supreme Court released three opinions last week that impact states. In United States v. Texas, the court
deadlocked at 4-4 on a case challenging the administration’s executive orders
on immigration, including the Deferred Action for Parents of Americans program,
which would have allowed undocumented immigrant parents of citizens or legal
residents to stay in the country and get
work authorization after living here at last five years. The tie vote leaves in
a place a lower court injunction, after the federal government was sued by 26
states to block the actions. In Fisher v. University of Texas at Austin,
the court ruled 4-3 to uphold the university’s affirmative action admissions
program, ruling that the admissions program in use at the time of the petition
was lawful under the Equal Protection Clause. Lastly, the court ruled 7-1 in Birchfield v. North Dakota that in
suspected drunk driving incidents, the fourth amendment permits breath tests to
be conducted without a warrant and a person can be arrested for refusing a
breath test; however, a warrant is required for a blood test. This ruling
affects laws in thirteen states dealing with drunken driving arrests. And
today, the Supreme Court, in a 5-3 decision, struck down a Texas law regulating
abortion clinics as an undue burden on the constitutional right to an abortion,
in Whole Women’s Health v. Hellerstedt.
Senate Announces GMO Labeling
Compromise
Last week Senate
Agriculture Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie
Stabenow (D-MI) unveiled a compromise agreement
on regulating genetically modified foods (GMOs). Key provisions of the proposal
include: establishes the first-ever GMO labeling mandate by requiring food
companies to disclose the presence of genetically modified ingredients; allows
food manufacturers to choose the method of disclosure (text on package, a
symbol, or a link to a website) while small food manufacturers could use a
website or telephone number and very small manufacturers and restaurants are
exempted; authorizes the U.S. Department of Agriculture to write a rule establishing
a uniform national disclosure standard; and immediately prohibits states or
other entities from mandating labels of food or seed that is genetically
engineered. Vermont enacted a law mandating GMO disclosure, and that bill takes
effect on July 1. Statements and bill text can be found from the Chair here
and Ranking Member here.
Medicaid
and CHIP Payment and Access Commission Releases June Report
The Medicaid and
CHIP Payment and Access Commission (MACPAC) released its
June 2016 Report to Congress that examines Medicaid spending and financing. The
June report also considers the implications of different approaches to Medicaid
financing, a topic that congressional leaders have signaled will be high on the
agenda in the next Congress. The report outlines several major approaches to
financing reforms including block grants, capped allotments, per capita caps,
and shared savings and discusses how different approaches to the design of
these policies might result in federal savings and affect state decision making,
beneficiaries and providers. The report shows that Medicaid spending, like
other health care spending, is growing faster than the rest of the economy and
accounted for about 16 percent of U.S. health care spending in calendar year
2014. An increase in enrollment of newly eligible adults in states that
expanded Medicaid accounted for much of the growth in Medicaid spending in
fiscal year 2014, but prescription drug spending also increased due to the
introduction of new high-cost drugs.
Recently Released Reports
The
2016 KIDS COUNT Data Book, Annie E. Casey Foundation
Trends
in State Medicaid Programs: Looking Back and Looking Ahead, The Kaiser
Commission on Medicaid and the Uninsured
The
Growing Size and Incomes of the Upper Middle Class, Urban Institute
ESSA's
Well-Rounded Education, Education Commission of the States
State
Medicaid and CHIP Profiles, Centers for Medicare and Medicaid Services
Economic News
Unemployment Rates Stable in 41 States in May
New data from the Bureau of
Labor Statistics shows that most regional and state unemployment rates saw
little change in April; 41 states had stable unemployment rates, 5 states had
significantly higher rates and 4 states and the District of Columbia had lower
rates. Compared to one year earlier, 32 states had no notable net change, while
two states had increases and 16 states and the District of Columbia had notable
unemployment rate decreases. The national jobless rate declined 0.3 percentage
point from April to 4.7 percent, which is 0.8 percentage point lower than in
May 2015. Nonfarm payroll employment increased in 3 states and the District of
Columbia in May, decreased in 4 states and was essentially unchanged in 43
states. In May, the only region with an unemployment rate significantly
different from the U.S. was the west at 5.1 percent. Compared to one month
earlier, only the south had a statistically significant unemployment rate
change (-0.1 percentage point). However, significant over-the-year rate
decreases occurred in three regions: the west (-0.8 percentage point);
northeast (-0.6 point); and south (-0.5 point).