Legislation & Politics

Week Ending September 26, 2008

September 29, 2008

Congress – The Week of September 22, 2008

Congress is moving rapidly toward adjournment for the year.  An economic stimulus package passed the House, but was blocked by the Senate.  The fate of the financial services bailout plan is in doubt after the House rejected it.

House Passes Stimulus Bill but Senate Balks

Thanks to efforts of AFSCME activists across the nation, AFSCME scored an important legislative victory when the House passed an economic stimulus package (H.R. 7110) by a vote of 264-158 on Friday.  Forty-one Republicans supported the package despite a veto threat from the Administration.  The eight Democratic members who voted against the bill were: Representatives Marion Berry (D-AR), Allen Boyd (D-FL), Jim Cooper (D-TN), Stephanie Herseth Sandlin (D-SD), Nick Lampson (D-TX), Jim Matheson (D-UT), Collin Peterson (D-MN), and Gene Taylor (D-MS).  The House roll call vote can be found at: http://clerk.house.gov/evs/2008/roll660.xml.

The bill would provide states with $14.4 billion in fiscal relief by providing temporary additional federal support of state Medicaid programs.  The bill would also grow our economy and create jobs through a $30 billion investment in infrastructure.  It would help maintain a basic standard of living for families by extending unemployment benefits for Americans looking for work and providing $2.6 billion for additional food stamp assistance.

Earlier in the day, by a vote of 52 to 42, Senate Republicans blocked consideration of an economic recovery package by threatening a filibuster.  The bill, stymied by Republican Senators, would have provided $19.6 billion in temporary additional federal support for state Medicaid programs. The bill would have provided $490 million for Byrne Justice Assistance Grants to support state and local communities and other important assistance to state and local governments.  It also included funds to avert staffing cuts for child support enforcement.  The Senate roll call vote can be found at: http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00206.

Congress will hopefully address the need for real economic assistance as soon as possible in the new Congress which will convene in January with a new president in the White house.  The strong bi-partisan vote in the House hopefully lays a foundation for swift congressional action.

House Rejects $700 Billion Bailout for Troubled Financial Firms

In a surprise move, the House by a vote of 205-228 rejected the massive bailout for financial institutions, which grants the Secretary of the Treasury unprecedented and sweeping powers to purchase up to $700 billion of troubled assets from at-risk firms in an attempt to slow national economic upheaval. Senate action and further House action is up in the air at this time.  The plan is intended to slow declining asset values, maintain troubled firms’ solvency, and promote liquidity and reduce the credit crunch.  Some important improvements have been made in the plan that address concerns raised by President McEntee and others who signed the “Call for Common Sense” letter asking for greater oversight and accountability in the bailout measure (http://www.ourfuture.org/page/2008093923/bailout-call-common-sense).  However, the bipartisan plan contains relatively few checks and balances on these new powers, and still concentrates vast decision-making over privately owned assets in one unelected official.  However, it provides some hope for homeowners by requiring plans to minimize foreclosures, but it does not help or protect at-risk homeowners from potential foreclosures as requested by labor, consumer and civil rights organizations and does not include labor-supported corporate governance protections and reforms.  While the bill requires participants receiving federal assistance to grant the federal government an equity stake, AFSCME supported stronger and more detailed requirements.  In addition, the plan applies limits on executive compensation and golden parachutes for certain executives of employers who receive benefits.  Yet still more should be done to address problems of corporate greed and malfeasance.

Government Shut-Down Averted

Congress passed a continuing resolution (CR) over the weekend to fund the federal government until March 2009.  The bill funds most programs at Fiscal Year 2008 levels with some exceptions.  Congress did not renew the moratorium on offshore drilling that has typically been included in past funding bills.  Congress has essentially postponed making decisions on funding levels until a new Congress and president take office.

House and Senate Pass Mental Health Insurance Parity Bill

On Tuesday, the House and Senate passed compromise legislation asking insurers to cover mental health conditions in the same manner as physical health conditions.  The House bill (H.R. 6983) was passed as a stand-alone bill, but the Senate bill was included in legislation (H.R. 6049) that would extend expiring tax breaks.  The bills do not mandate that group plans provide any mental health coverage.  Under both versions, if a plan does offer mental health coverage, then co-pays, deductibles, coinsurance, out-of-pocket expenses, limits in scope and duration of coverage would have to be the same for mental and physical conditions, as would out-of-network coverage.  The versions differ as to how the costs of the bill will be offset and so a compromise must be hammered out before Congress adjourns for the year.  Under current law and both versions of the bill, self-insured state and local plans may opt out of these requirements.

Fate of 9/11 Health and Compensation Act is Uncertain

Despite the efforts of Speaker Pelosi, congressional leaders and labor unions, it appeared early this morning that the James Zadroga 9/11 Health and Compensation Act would not be acted on until next year.  However, the failure of the Wall Street bailout bill may create an opportunity to pursue a vote on the 9/11 bill after all, as the House and Senate will likely remain in session at least through the end of this week. 

The bill would create a health entitlement to screening and treatment and reopen the Victims’ Compensation Fund (VCF) for responders and New York residents exposed to toxins released in the 9/11 attack.  In spite of strong support from House Democratic leaders and the New York delegation, the bill stalled when Mayor Bloomberg and the City of New York refused to commit the City’s 10% share for the health costs of the bill and House Republicans questioned the bill’s financing.  Because time was running out, their objections made it difficult for the leadership to move the bill forward.  Now that it appears that Congress will remain in session for at least a few days, AFSCME and the AFL-CIO are urging the House Democratic leadership to move the bill to the floor for a vote.

President Signs Highway Trust Fund Bill

After months of preventing the passage of an important bill that would continue Federal Highway funds flowing into the states, President Bush signed H.R. 6532 into law on September 15th, allowing the transfer of $8 billion from the government’s general fund to the Highway Trust Fund (HTF).  House and Senate Democrats had been trying to approve the legislation for months, but were faced with strong objections from their Republican colleagues and a veto threat from the White House.  Without action, the HTF was heading for a zero balance in just days jeopardizing badly needed road and transit projects.

Civil Rights Community Wins Battle over Disability Legislation

After months of intense negotiations with the business community and approval by the Congress, President Bush, on September 26th, signed into law the Americans with Disabilities (ADA) Restoration Act (S. 3406).  The legislation clarifies the definition of “disabled” to make clear that any person who has or is perceived to have mental or physical impairments that restrict major functions is entitled to protections under the ADA.  S. 3406 is a response to several Supreme Court decisions that narrowly defined certain provisions of the ADA and have resulted in the weakening of protections for people with disabilities.   Since the ADA was enacted in 1990, the Supreme Court has exempted from the law's anti-discrimination protections those with partial physical disabilities or impairments that can be treated with medication or devices such as hearing aids.  S. 3406 directs the courts to provide ADA protections in the way Congress originally intended which was to cover anyone facing discrimination because of a disability.

Houses Passes Bulletproof Vest Extension

On September 26th, the House passed the Bulletproof Vest Partnership Grant Act of 2008 (H.R. 6045).  The bill extends the grant program, set to expire in 2009, to 2012. The program is a critical resource for state and local law enforcement, including corrections, and has provided critically needed bulletproof and stab proof vests for law enforcement officers on the front line. A similar bill is pending before the Senate, though action this session is not expected.

Senate Considers Domestic Partner Benefits for Federal Employees

A hearing was held in the Senate this week on the Domestic Partner Benefits and Obligations Act (S. 2521). The bill would make same-sex domestic partners of federal employees eligible to participate in federal benefits programs, including health and life insurance, family and medical leave, long-term care insurance, workers' compensation, and retirement.  AFSCME urged Senators to support the bill and will continue to fight for domestic partner benefits when the bill is reintroduced next session.

Congress Sends President Short-term FAA Bill

The House and Senate approved legislation on September 23rd that would keep the Federal Aviation Administration (FAA) operating.  The legislation (H.R. 6983) extends current FAA funding levels through March 31st of next year.  The current FAA law expires at the end of this month.

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