This Week on the Hill
The House and Senate are adjourned until the week of November 14.
Fiscal Year 2017 Budget Update
Late last week, a continuing resolution (CR) to fund the federal government through December 9, 2016 passed the Senate and House and was signed by the President, avoiding a shutdown of the federal government.
The Senate passed a continuing resolution (H.R. 5325) by a vote of 72-26 on Wednesday. The House approved the bill by a vote of 342-85 later that night.
Discretionary funding is set at fiscal year 2016 levels, less a -0.496 percent across-the-board reduction, referred to as a rescission. The rescission is needed to abide by the fiscal year 2017 spending caps set in last year’s Bipartisan Budget Agreement (P.L. 114-74). The bill also includes $1.1 billion in emergency spending to combat the Zika virus; $500 million in flood relief for Louisiana and other states; funding to address the opioids epidemic; and full-year fiscal year 2017 appropriations for military construction and veterans programs. The bill does not include policy riders related to Syrian refugees or internet oversight. Federal Funds Information for States released a brief on the CR last week, which can be found here (subscription required).
When Congress returns in November for the “lame duck” session, a new agreement on how to fund the government after December 9 will be a priority. Republican leadership has floated the idea of multiple “minibuses” to replace the usual omnibus bill that covers all discretionary spending.
Water Resources Bill Passes House with Flint Amendment, Goes to Conference
The Housed approved its version of the Water Resources Development Act (WRDA) on a vote of 399-25 last week, sending the bill to conference committee during the lame duck session in November. The bill authorizes $5 billion for 28 new Army Corps of Engineers projects throughout the country. An amendment was approved 284-141 to add $170 million in aid for Flint, Michigan’s recovery from lead contamination, which had been a sticking point in reaching agreement on a continuing resolution to fund the federal government after September 30. The Senate included $220 million in its version of the Water Resources Development Act (S. 2848) but the House version (H.R. 5303) had not previously included this funding. In its absence, Democrats pushed to include funding in the continuing resolution instead. Tuesday night a deal was reached in the House to allow a vote on an amendment to their water resources bill.
FEMA Issues Guidance for Individual Assistance in Disasters
The Federal Emergency Management Agency (FEMA) recently released a notice on Individual Assistance Declarations Factors Guidance and is currently accepting comments on the guidance. The Sandy Recovery Improvement Act of 2013 (P.L. 113-2) requires FEMA, in cooperation with state, local and tribal emergency management agencies, to review, update and revise the factors that FEMA uses to determine whether to recommend provision of Individual Assistance during a major disaster. FEMA is seeking comment on its proposed guidance, which is intended to provide additional information to the public regarding the manner in which FEMA is proposing to evaluate a request for a major disaster declaration authorizing Individual Assistance. The proposed guidance includes six factors: state fiscal capacity and resource availability; uninsured home and personal property losses; disaster impacted population profile; impact to community infrastructure; causalities; and disaster related unemployment. Comments must be received by October 24. Additional information on the disaster declaration process can be found here.
House Passes Bill to Delay Overtime Rule
Before adjourning last week, the House voted 246-177 to approve H.R. 6094, which would delay the implementation date of the new federal overtime rule for six months beyond the current December 1, 2016 deadline. Currently, employers are required to pay overtime to salaried workers making up to $455 per week ($23,660 per year). The new rule would require employers to pay overtime to salaried workers making up to $913 per week ($47,476 per year). In a statement of administration policy, the administration states its opposition to the bill and says the President would veto the bill if it passed Congress. In concurrent action, 21 states recently filed a lawsuit in federal court against the overtime rule while a coalition of business groups also filed a separate lawsuit.
Preview of New Supreme Court Term
The Supreme Court begins the 2016-17 term today and remains shorthanded, having only eight justices. To date the justices have agreed to hear over 30 cases for the term and may agree to hear more, but appear to be putting off contentious cases that could result in tie votes. Issues to look for in the upcoming term include: redistricting cases in North Carolina and Virginia that could clarify when a redistricting plan becomes an unconstitutional racial gerrymander; a transgender student’s rights case from Virginia; presidential appointment power and the Senate’s advise and consent role; immigration as it relates to length of detentions and crimes that could qualify an immigrant for deportation; determining whether religious schools can be denied equal access to government benefits; a disputed New York law (which is similar to laws in nine other states) that prevents retailers from adding a surcharge for customers who pay with credit cards; and how states determine an intellectual disability as it relates to the death penalty.
Several Grants Awarded Targeting Reentry, Body Worn Cameras and Substance Abuse
The Department of Justice (DOJ) has awarded funds under several grant programs to address reentry and recidivism, policing, and substance abuse. First, DOJ awarded over $53 million in Second Chance grants to help state, local and tribal government agencies, along with community organizations, serve formerly incarcerated people in their communities. In partnership with DOJ, the Department of Labor announced an investment of $6.4 million in grants to provide incarcerated individuals with job skills and resources by establishing additional American Job Centers inside correctional facilities and creating an online clearinghouse to make information needed to expunge criminal records more readily available. DOJ also awarded over $4 million in grants to 13 states and local jurisdictions to help reduce recidivism among military veterans. In the area of policing, DOJ awarded over $20 million to 106 state, city, tribal and municipal law enforcement agencies to establish and enhance law enforcement body-worn camera programs. Finally, DOJ announced awards totaling more than $10.8 million to assist 162 state, tribal, and local government agencies improve substance abuse treatment programs for incarcerated inmates, as well as preparing offenders for reentry into local communities
Labor Releases Final Rule on Sick Leave for Federal Contractors
Last week the Department of Labor (DOL) issued a final rule to implement an executive order establishing paid sick leave for federal contractors. According to the department, once fully implemented the rule would cover more than a million employees of federal contractors, including nearly 600,000 who currently receive no paid sick leave. The rule requires that new contracts with the federal government include a clause requiring that the contractor and any subcontractors provide paid sick leave to employees in the amount of not less than 1 hour of paid sick leave for every 30 hours worked. The rule specifies that it does not apply to grants, and excludes grants from its coverage of contracts. Paid sick leave may be used for an employee’s own illness, providing care for a family member, or if the absence is because of domestic violence, sexual assault or stalking. The rule is effective on November 29 and applies to contracts issued on or after January 1, 2017.
CMS Releases New Rules for Long-Term Care Facilities
On Wednesday the Centers for Medicare and Medicaid Services (CMS) issued a final rule to revise the requirements that long-term care facilities must meet to participate in the Medicare and Medicaid programs. According to the rule, regulations regarding long-term care facilities have not been comprehensively reviewed and updated since 1991 and in light of significant innovations in resident care, along with changes to resident populations, an evaluation of the regulations was needed. Some of the changes included in the final rule are: requiring facilities to investigate and report all allegations of abusive conduct; requiring facilities to develop and implement a baseline care plan for each resident within 48 hours of their admission; adding a competency requirement for the sufficiency of nursing staff; and prohibiting the use of pre-dispute binding arbitration agreements. The rule estimates the total projected cost will be about $831 million in the first year and $736 million per year for subsequent years, with estimated costs per facility at $62,900 in the first year and $55,000 per year ongoing. The rule is effective on November 28, with regulations phased in over time through 2019.
Fish and Wildlife Finalizes Rule on Endangered Species Listings
Last week the U.S. Fish and Wildlife Service (FWS) finalized a rule regarding petitions for listing under the Endangered Species Act of 1973. Interested parties have the right to petition to add a species for listing under the act, change the listing status (i.e., from threatened to endangered), or remove a species from listing. This final rule makes changes to the petition process, which according to FWS would enhance the efficiency and effectiveness of the process. Under the rule, at least 30 days prior to filing a petition, the petitioners must provide state agencies responsible for the management and conservation of wildlife with notice of their intent to file a petition; the states may then share information with FWS if the agency has data or information on the subject species. The new rule also restricts the number of species that can be petitioned for at one time, with only one species allowed per petition. The rule is effective October 27.
Recently Released Reports
Highway Bridges: Linking Funding to Conditions May Help Demonstrate Impact of Federal Investment, U.S. Government Accountability Office
A Federal-State Discourse on Maintaining Momentum for Payment and Delivery System Reform, National Academy for State Health Policy
The Adaptable State CIO: The 2016 State CIO Survey, National Association of State Chief Information Officers
Medicaid & CHIP: July 2016 Monthly Applications, Eligibility Determinations and Enrollment Report, Center for Medicare and Medicaid Services
The Fiscal Policy Space of Cities: A Comprehensive Framework for City Fiscal Decision-Making, Urban Institute
Medicaid Coverage of Family Planning Benefits: Results from a State Survey, Kaiser Family Foundation
Economic News
Third Estimate Shows GDP Increased More in Second Quarter 2016
Recently released data from the Department of Commerce Bureau of Economic Analysis shows that real gross domestic product (GDP) increased at an annual rate of 1.4 percent in the second quarter of 2016. Gross domestic product is the value of the goods and services produced by the nation’s economy less the value of goods and services used up in production. This information is based on the “third” estimate, which is derived from more complete source data than were available for the “second” estimate issued last month, which showed an increase of 1.1 percent. For the third estimate of the second quarter, the general picture of economic growth remains the same while the most notable change from the second to third estimate is that nonresidential fixed investment increased in the second quarter. In the first quarter of 2016, real GDP increased 0.8 percent.
Personal Income Rises 0.2 Percent in August
Personal income increased $39.3 billion (0.2 percent) in August according to estimates recently released by the Department of Commerce Bureau of Economic Analysis. Personal income is defined as the income received by, or on behalf of, all persons from all sources. Disposable personal income increased $31.9 billion (0.2 percent) and personal consumption expenditures increased $6.2 billion (less than 0.1 percent). In July, personal income increased 0.4 percent compared to June. The increase in personal income in August primarily reflected increases in compensation of employees, personal income receipts on assets, and government social benefits to persons. Personal outlays increased $6.1 billion in August, while personal saving was $807.6 billion and the personal savings rate (personal saving as a percentage of disposable personal income) was 5.7 percent.