WASHINGTON LEGISLATIVE UPDATE: OMNIBUS SPENDING BILL, TAX EXTENDERS, INTERIOR IMPROVEMENT ACT
- For the Indian Health Service (IHS), the omnibus provides a total appropriation of $4.8 billion, a 3.6% increase over FY 2015 levels. This includes flat funding at $914 million for Purchased/Referred Care (formerly Contract Health Services) and $523 for Facilities, a $63 million increase. It also provides an additional $10 million to alcohol and substance abuse for a focus on Tribal youth, and an increase of $12.9 million for staffing.
- The Bureau of Indian Affairs (BIA) is funded at a total of $2.8 billion, a 7.5% increase over FY 2015 enacted. This includes $2.26 billion for the Operation of Indian Programs, a $161 million reduction compared to FY 2015, as well as $852 million for the Bureau of Indian Education. Notably, the bill also contains $138 million for school construction, an increase of $63.7 million, which should complete the 2004 replacement school construction list.
- For Contract Support Costs (CSC) at both BIA and IHS, the omnibus creates an indefinite appropriation using the language, “such sums as may be necessary,” rather than specific amounts. Tribes and Tribal organizations advocated for the CSC line item to be made mandatory on a permanent, indefinite basis in order to stabilize funding, protect funding appropriated to other line items, and help to avoid funding shortfalls. Though the omnibus does not make CSC mandatory, providing for an indefinite appropriation will allow the agencies to pay CSC in full, as required by the Supreme Court decision in Salazar v. Ramah Navajo Chapter, as well as protect other line items in the budget and avoid shortfalls.
- In addition to the omnibus, Congress also passed a $680 million package to extend a number of critical tax provisions that have been expired since the end of 2014. Each of these tax credits is designed to encourage increased investment in projects within Indian Country, as well as increased jobs for Native people and indicate that greater tax reform is around the corner. These include:
the Interior Improvement Act
Roll Call Article: 3 Reasons Congress’ Year Might Start Unexpectedly Strong
By David HawkingsPosted at 8 p.m. on Jan. 5
Congress is reopening for business this week, to begin what President Barack Obama says “needs to be a year of action.”
When the president offered that call to arms for 2014, just as the Capitol lights were being dimmed for the holidays, the eye-rolling sentiment from so many lawmakers, aides, lobbyists and journalists amounted to: “Yeah, right. Good luck with that.”
The collective assessment is there’s no way that 2013, the least legislatively productive first year of an administration in six decades, is going to be followed by a more productive spurt from a divided Congress in an election year.
However, the next 10 weeks may hold some genuine prospects for rebutting the conventional wisdom, if only temporarily.
A trio of hallmark accomplishments in the second session of the 113th Congress have strong potential to get done before St. Patrick’s Day. Assuming the Republicans keep to their current course — confining their focus to avoid new, self-inflicted political wounds — lawmakers will be able to extend their current truce in the budget wars not only on the spending front but on borrowing as well. A food and farm bill that gives both sides a claim to victory is well within reach.
And, without traveling too far into optimistic fantasy-land, it’s possible to envision that bipartisan success on that trifecta by March would spawn interest in reaching for some additional deals in the spring. An immigration overhaul may still be the longest of viable long shots, but there’s some hopeful early talk about carefully calibrating compromise on a variety of second-tier issues left hanging at the end of 2013 — from sentencing disparities to water projects, patent lawsuits to online sales taxes, energy efficiency standards to physician reimbursement rates.
All those remain a ways off, but here’s a sketch of why each of the wintertime Big Three are likely to get done.
Appropriations. It sure sounds daunting, producing a single measure in five weeks that apportions all $1 trillion in discretionary spending for the rest of this fiscal year. But, in the current context, the omnibus spending package that’s supposed to be unveiled this week is more the legislative equivalent of a two-foot putt on the 18th hole, with the winner’s purse on the line. Yes, it’s possible to crack under the pressure and mess it up, but true professionals are supposed to approach the ball with confidence and make sinking the shot look easy.
Bipartisan majorities embraced last month’s budget accord in no small measure because it promised to end talk about government shutdowns until after the midterm elections. But this spending bill needs to get signed to make that promise a reality. Even a little flirting with the Jan. 15 deadline will prompt a revival of the cable TV countdown clock graphics, which in turn would threaten to drive congressional approval ratings back into the single digits from which they’ve just emerged. (And that was thanks entirely to the absence-makes-the-heart-grow-fonder phenomenon of the two-week holiday break.)
Although the Republicans have more to lose — because they have been blamed most for the last shutdown — neither party can afford to start the year looking like it might fail a test it has essentially told the public it’s already passed. So expectations are high that the bill will be cleared with only minimal fuss, mainly because the appropriations committees are warding off almost all the social, environmental and health policy riders that could threaten the whole process
Debt limit. If “failure is not an option” is the political watchword on the spending bill, the motto applies doubly to granting the Treasury permission to borrow more.
The last fiscal showdown ended only when the potential for a market-rattling default was just hours away. Republicans may have waited until the final hour before blinking in October, but they’re highly unlikely to make a return to brinkmanship this time. That’s because they know doing so would change the principal national political story — Obamacare’s rocky rollout — back into the tale of GOP extremism
Republicans will talk a while longer about demanding concessions from Obama in return for a higher debt ceiling, but the diverse list of hostages they’ll mention will signal they don’t have the stomach for a real confrontation. And Obama has left absolutely no room in his rhetoric for making the borrowing limit part of any deal. “It is not something that is a negotiating tool,” he said at his year-end news conference. “It’s not leverage. It’s the responsibility of Congress. It’s part of doing their job.”
Permission to issue new debt lapses on Feb. 7, but Treasury says it can stretch cash flow into early March, when the outstanding debt will stand at about $17.3 trillion. Rather than raise the dollar limit on borrowing, which was the legislative practice for decades, Congress will probably move instead to allow Treasury leeway to borrow what it needs until a specific date. Sometime during the lame-duck session, scheduled to start Nov. 12, is a decent bet.
Farm bill. Negotiators are signaling a breakthrough is imminent on an impasse that began 15 months ago. For farmers, the most important feature will be a new subsidy system to replace direct payments, which are widely derided outside rural America because they are delivered regardless of crop prices.
Politically, the No. 1 issue remains how much to pare nutrition assistance for the poor. House Republicans appear united behind the view that, with the economy on the mend, a 6 percent cut to food stamps is not unreasonable. A bipartisan majority in the Senate, viewing the safety net fundamentally differently, went for a cut of about half of 1 percent. Negotiators have settled on 1.5 percent, or $8 billion over a decade, combined with some of the stiffened work requirements for Supplemental Nutrition Assistance Program recipients that GOP conservatives want.
The assumption here is that — as an extension of his newly short-fused approach to the tea partyers in his ranks — Speaker John A. Boehner will permit the House to debate such a package, knowing it would clear with far less than a majority of the majority.
The Ohio Republican’s rationale would be that, for the election-year good of the party, he needs to bring a belated end to at least one marquee piece of the class warfare debate. Plus, Boehner knows Republicans are going to dig in their heels elsewhere, starting with the future for the minimum wage and long-term jobless benefits.
One sure bet: Even if the farm bill doesn’t get done, Congress will make quick work of a yearlong stopgap. Lawmakers may still be gridlocked, but they’re not crazy — and the absence of a temporary farm bill, to make a complex story short, would threaten a doubling of retail dairy prices.
If there’s one way not to start a campaign year, it’s being blamed for a $7 gallon of milk.