Legislation & Politics

Week Ending January 23, 2009

Congress – The Week of January 19, 2009

President Obama Sworn In and Immediately Halts Pending Bush Regulations

The big news in Washington, D.C. this week was the swearing-in of Barack Obama as the 44th president of the United States. He wasted no time distancing himself from the previous Administration. On Inauguration Day Rahm Emanuel, President Obama's chief of staff, sent a memorandum to the heads of all federal executive departments and agencies, instructing them to halt all proposed or final regulations that have not yet been published in the Federal Register so that the new Administration can review them. The memorandum also asks department heads to consider extending for 60 days the effective date for regulations that have been published in the Federal Register but have not yet taken effect so that a legal and policy review can be undertaken. This regulatory review will be implemented by the Office of Management and Budget Director. 

House Committees Approve Economic Recovery Package

This week, the House Appropriations, Energy and Commerce, and Ways and Means Committees approved their portions of an $825 billion spending and tax cut economic recovery package (H.R. 598). The package would create and save nearly four million jobs and the unemployment rate would be projected to be 2.2% lower if the bill is enacted than if it is not. The full House is expected to vote on the bill Wednesday, January 28.

Despite House Republican opposition, the bill contains substantial aid to state and local governments, AFSCME's key priority. It is not substantially different from the initial package the House released last week, details of which were included in the January 12 Weekly Report.

The Energy and Commerce Committee's package, which passed by voice vote, included $87 billion in Medicaid payments to states which helps take pressure off of cutting health care and other valuable public services. The bill also increases federal payments for states' foster care and adoption assistance programs by 4.9%. The package boosts federal funds by $500 million for public safety net hospitals. States would also have an option to expand Medicaid coverage with 100% federal support at a cost of $11 billion. This portion of the bill additionally blocks $200 million in cuts to states through a moratorium on Bush Administration Medicaid regulations, and provides $30 billion for premium subsidies for unemployed workers to retain health care coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA).

The House Appropriations Committee, with jurisdiction over yearly-approved federal spending, passed its portion of the economic recovery bill by a vote of 35-22. Highlights include a total of $120 billion to states and school districts to stabilize budgets and prevent deep cuts to vital education programs; $2 billion for the Child Care and Development Block Grant (CCDBG); $2.1 billion for Head Start; $63.5 billion for public transportation and infrastructure investments; $500 million increase for reemployment services; $4 billion for state and local law enforcement; $5 billion for the Public Housing Capital Fund for repairs and modernization; and $1 billion for the Community Development Block Grant. The Appropriations Committee adopted an amendment by Rep. Rosa DeLauro (D-CT) to add $150 million for food assistance.

The House Ways and Means Committee voted 24-13 to approve its portion of the economic recovery bill. It provides states with financial incentives to extend eligibility for unemployment  insurance (UI) benefits to more low-wage, women and part-time workers, and gives all state UI agencies an additional $500 million for administration. It also includes a $25 per week increase in the average UI benefits, and an extension of the current federal extended UI benefits program through the end of 2009. This committee also included a two-year restoration of federal matching funds for states' child support enforcement programs at a cost of $1 billion.

The Ways and Means Committee-approved sections of H.R. 598 contain a $500 per worker refundable tax credit and expands the number of people eligible for the Child Tax Credit and the Earned Income Tax Credit. It also includes several business tax breaks. AFSCME strongly supports prospective repeal of President Bush's Treasury Department's recent "Wells Fargo ruling", which granted banks multi-billion tax write-offs for the losses of the companies the banks acquired. It also contains an $18 billion provision governing state and local tax credit bonds, which permits states and localities to elect to receive direct payments from the federal government equal to the subsidy that would have otherwise been delivered through the federal tax credit for bonds issued in 2009 and 2010. 

Urge Congress to Pass an Economic Recovery Package
We need to jump-start the economy NOW!  Please call the Capitol Switchboard at 202-224-3121 and ask to speak to your Representative.  Tell your Representative to support an economic recovery plan that creates jobs and invests in public services. Urge Congress to pass an economic recovery package that provides substantial state and local aid that will maintain needed public services and help working families.

Senate Finance Committee Releases its Portion of Economic Recovery Legislation

On Friday, Senate Finance Committee Chairman Max Baucus (D-MT) unveiled his plan for economic recovery provisions to be included in the American Recovery and Reinvestment Act of 2009. The Senate Appropriations Committee will consider a separate package for annually-approved spending provisions.

The Baucus plan would increase the federal share of Medicaid spending (FMAP) by approximately the same total amount ($87 billion) as the House legislation. His proposal also includes similar subsidies for COBRA premiums for unemployed workers. It contains UI provisions that also mirror the House's bill, including $500 million for administration, incentives for states to broaden UI eligibility, and an extension of the emergency UI program through 2009. Other key spending provisions in the Chairman's proposal include a two-year restoration of federal funding for states' child support enforcement programs, and $3 billion in additional Temporary Assistance for Needy Families (TANF) Contingency Funds. The Senate Finance proposal also includes a number of tax provisions. The full Senate Finance Committee proposal is available at http://finance.senate.gov/sitepages/legislation.htm.

The Senate Finance and Appropriations Committees are scheduled to consider their portions of the economic recovery legislation next week, although the Appropriations spending piece has not been released at press time.

Senate Passes Important Pay Equity Bill

This week, the Senate passed by a vote of 61-36 the Lilly Ledbetter Fair Pay Act (S. 181) which would ensure that women and families get the pay that they deserve to survive these difficult economic times. S. 181 restores longstanding protections against wage discrimination. A number of harmful amendments were offered by several Republican Senators, but rejected, including a Right-to-Work amendment by Sen. Jim DeMint (SC).  

Senate Adds New Senator; Confirms Nine Obama Cabinet Secretaries and OMB Director

On January 22, Democrat Michael Bennet was sworn in to replace Colorado Senator Ken Salazar who is now Secretary for the Department of the Interior and was one of nine new Cabinet secretaries sworn in by the Senate this week. The others are:  Hillary Rodham Clinton for Secretary of State; Steven Chu for the Department of Energy; Arne Duncan for the Department of Education; former Arizona Governor Janet Napolitano for the Department of Homeland Security; former New York housing official Shaun Donovan for the Department of Housing and Urban Development; retired General Eric Shinseki for the Department of Veterans Affairs; former Rep. Ray LaHood (R-IL) for the Department of Transportation; and former Iowa Governor Tom Vilsack for the Department of Agriculture. The Senate also approved Peter Orszag as Director of the Office of Management and Budget.

Sign Up to Receive the Weekly Report and Action Alerts via Email and Become an AFSCME e-Activist

In an effort to move toward electronic transmission which will allow us to put important federal legislative updates in your hands sooner, we urge you to sign up to receive the Federal Legislative Report via your email address.

Please go to http://www.unionvoice.org/afscme/join.html and check the "Federal Legislative Report" box under Subscriptions on the bottom of the page.

Print Version