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Medicare and Medicaid Funding in Jeopardy

USET and other organization are asking for help lobbying for tribal consultation on the changes to Medicare and Medicaid funding to Indian country.  The rules have changed that leave it to State’s to set work requirements for eligibility for Medicaid funding through the 1115 waiver process.  This could severely impact Indian Health service funding.  Therefore AI/AN Medicaid recipients must be made exempt from these barriers to accessing the health care to which they are entitled, and CMS has a duty to ensure that this occurs as a part of the waiver process. Medicaid currently represents 67% of 3rd party revenue at IHS, and 13% of overall IHS spending.   Tribal organization are advocating that any proposed changes to the administration of Medicaid must be preceded by comprehensive consultation with Tribal Nations. Currently, the 1115 waiver process requires that states engaged in Tribal Consultation prior to submission of 1115 Demonstrations to CMS. CMS must ensure Tribal consultation with Tribal Nations occurs at both the state and federal levels before state waiver applications can proceed.

See USET Letter

 

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Fake News: It happens in Indian Country Too!

No doubt you have heard the news about the CEO and founder of Facebook, Mark Zuckerburg testifying on Capitol Hill, and explaining why he didn’t protect his Facebook subscribers from privacy breaches and those that promote false and fake news.  Well Indian Country is not exempt.  See Washington Post Article:

Well fake news happens about Indian Country too.  An article has been circulating on Facebook in recent weeks you may have seen published on May 5, with the headline, “In Victory for Standing Rock Sioux Tribe, Court Finds That Approval of Dakota Access Pipeline Violated the Law”.  That article was cut and pasted from an article a year ago.  A Vietnamese site claiming to be about Native American affairs has recycled the story to gin up clicks and advertising revenue. For some reason news about the Standing Rock reservation and Native American affairs in general have become a favorite niche of foreign-run Facebook pages and websites. If you see a news report about these topics pop up in your newsfeed, always check if you are looking at an original source before liking, sharing or commenting: it could be you are looking at old news being repackaged and fed back into your news stream by some guy in Macedonia or Kosovo wanting to make a few quick bucks.

Congress springs into action with an omnibus bill, and concerns rise about the 2019 appropriations

 

At the relief of Indian County Congress passes an Omnibus bill in March, holding the course and adding a little money to the Indian Affairs budget.  It was an uncertain, beginning to the year, that saw continuing resolutions, potential government shutdowns, a deal to raise budget caps, and a last-minute veto threat from the President.  At the end the legislation provides $1.3 trillion in omnibus appropriations for the remainder of Fiscal Year (FY) 2018.

 

Congressional appropriators rejected the deep cuts proposed in the President’s FY 2018 Budget Request, including those for federal Indian programs. Some of these provisions include:

  • Bureau of Indian Affairs (BIA): BIA is funded at a total of $3.01 billion, an increase of $203.8 million or 7.1%.
  • Indian Health Service (IHS): IHS is funded at a total of $5.5 billion, an increase of $497.9 million or 10%.
  • Victims of Crime Act (VOCA) Funding: The bill contains a 3% set aside for Tribal Nations within the VOCA fund, or $133 million for the delivery of victim services in Indian Country.
  • Opioid Epidemic: From a total of $1 billion in new grant funding to address the opioid crisis directed at state and Tribal governments, $50 million is set aside for Tribal Nations. In addition, $5 million is set aside for Tribal Nations to provide medication-assisted treatment. Finally, $7.5 million is provided for the BIA’s  Law Enforcement Opioid initiative.

Significant increases:

  • Infrastructure: spending would increase for BIA and IHS construction, BIA road maintenance, and a $100 million competitive grant program is added under Native American Housing Block Grants (NAHBG) in addition to the $655 million provided for the NAHBG formula grants.
  • Road Maintenance: will receive a 14 percent increase to $34.6 million.
  • Restoration of the Tiwahe initiative: at the fiscal year 2017 enacted level.
  • Violence Against Women Act: $2 million to implement both training and specific Tribal court needs, and $13 million to address the needs of Tribes affected by Public Law 83- 280.
  • BIA Construction: would increase by $162 million to $354.1 million, an 84 percent increase.
  • Opioid initiative:5 million for the Bureau of Indian Affairs Law Enforcement.

See Link: Budget Report

An interesting strategy has been proposed this last week to handle 2019 appropriations bills.  Nearly, 16 Republican senators announced a willingness to work through August recess to complete spending bills and confirm more of President Donald Trump’s nominees. Sen. David Perdue of Georgia, who has led the effort, hinted that a letter to Majority Leader Mitch McConnell of Kentucky would be forthcoming. “The Senate should immediately begin work on one or several consolidated appropriations bills, so they can be openly debated and amended accordingly,” the senators wrote. “Our defense priorities are bipartisan, and they should come first.”

That letter signals a willingness by the conservatives to bundle spending bills together, perhaps using the “minibus” strategy in which several regular appropriations measures get combined on the floor. Normally, senators would not want the chamber in session well into August during an election year, with lawmakers eager to be home and meeting with constituents and voters.  The Republicans seem to want to avoid a last minute continuing resolution to keep the government funded past the end of September and they want to confirm a large number of Trump nominations as August approaches. Some of the 77 confirmations that took place by unanimous consent or voice votes as the August recess got underway in 2017 might have happened without a cancellation threat since that’s been the normal practice of the Senate.

These 16 senators, however, believe the threats affected the behavior of Senate Democrats. “Our diligence was rewarded with reason, and that can happen again,” the senators wrote.

See Article

Meanwhile dozens of Indian Country leaders were on Capitol Hill last week to present their budget priorities to key members of Congress before the Appropriations subcommittee on Interior. The testimony from tribes and Indian organization, representing every region of the nation, had a consistent message – Indian Country needs additional funding as part of the federal government’s trust and treaty responsibilities. The panel’s Republican and Democratic leaders, for the large part, have embraced that goal.
After hearing from the tribal witnesses, the House Appropriations subcommittee on Interior will spend the next month or so drafting the Interior appropriations bill. The package is typically released sometime in June, with lawmakers aiming to get it passed before October 1, the start of fiscal year 2019.

Senate Committee on Environment and Public Works asks for more Money for the Tribal Transportation Program

Tribal roads 4In a markup hearing this morning, the EPW unanimously approved the “Developing a Reliable and Innovative Vision for the Economy Act” (“DRIVE”). The bill proposes a six-year plan to address the transportation funding crisis and associated infrastructure shortfalls. Chairman Inhofe stated that the progression of the bill hinges on the elimination of red tape and redundancies that prevent large scale projects from being realized in a timely manner.

Although not discussed during today’s proceedings, the Act as it is currently written includes adjustments to the Tribal Transportation Program which would allocate more money for transportation projects on tribal land. The adjustments would set aside $460,000,000 for the 2016 fiscal year and would increase by $10,000,000 each consecutive FY up to $510,000,000 by 2021. The DRIVE Act also creates a “Nationally Significant Federal Lands and Tribal Projects Program” which would set aside funding for construction or maintenance projects sponsored by eligible Federal land management agencies or Indian tribes. Other amendments to Title 23 include a provision making tribal transportation facilities projects eligible for emergency assistance; also, the administrative expenses are expected to be cut from 6 percent to 5 percent while increasing the potential amount set aside for tribal transportation facilities bridges from 2 percent to 3 percent for each FY.

With just under forty days until the current highway program extension expires, the committee stressed the importance of continued bipartisan cooperation to ensure the creation of viable sources of revenue for the Act.

Click to view the hearing Webcast

Below are excerpts from the DRIVE Act that impact Tribal transportation funds. The excerpts may be truncated.

 Title I—Federal-Aid Highways

Subtitle A—Authorizations and Programs

 Sec. 1001. Tribal Transportation Program.—

For the tribal transportation program under section 202 of title 23, United States Code—

(a)(3)(A)

  • $470,000,000 for fiscal year 2017;
  • $480,000,000 for fiscal year 2018;
  • $490,000,000 for fiscal year 2019;
  • $500,000,000 for fiscal year 2020; and
  • $510,000,000 for fiscal year 2021.

Sec. 1022. Emergency Relief for Federally Owned Roads.

  • —Section 125(d)(3) of title 23, United States Code, is amended—
  • in subparagraph (A), by striking “or” at the end;
  • in subparagraph (B), by striking the period at the end and inserting “; or”; and
  • by adding at the end of the following:

“(C) projects eligible for assistance under this section located on tribal transportation facilities, Federal lands transportation facilities, or other federally owned roads that are open to public travel (as defined in subsection (e)(1)).”.

Sec. 1026. Tribal Transportation Program Amendment.

Section 202 of title 23, United States Code, is amended—

  • in section (a)(6), by striking “6 percent” and inserting “5 percent”; and
  • in subsection (d)(2), in the matter preceding subparagraph (A) by striking “2 percent” and inserting “3 percent”.

Sec. 1027. Nationally Significant Federal Lands and Tribal Projects Program.

  • —The Secretary shall establish a nationally significant Federal lands and tribal projects program (referred to in this section as the “program”) to provide funding to construct, reconstruct, or rehabilitate nationally significant Federal lands and tribal transportation projects.
  • Eligible Applicants.—
  • In General.—Except as provided in paragraph (2), entities eligible to receive funds under sections 201, 202, 203, and 204 of title 23, United States Code, may apply for funding under the program.
  • Special Rule.—A State, county, or unit of local government may only apply for funding under the program if sponsored by an eligible Federal land management agency or Indian tribe.
  • Eligible Projects.—An eligible project under the program shall be a single continuous project—
  • on a Federal lands transportation facility, a Federal lands access transportation facility, or a Tribal transportation facility (as those terms are defined in section 101 of title 23, United States Code), except that such facility is not required to be included on an inventory described in sections 202 or 203 of title 23, United States Code;
  • for which completion of activities required under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been demonstrated through—
  • a record of decision with respect to the project;
  • a finding that the project has no significant impact; or
  • a determination that the project is categorically excluded; and
  • having an estimated cost, based on the results of preliminary engineering, equal to or exceeding $25,000,000, with priority consideration given to projects with an estimated cost equal to or exceeding $50,000,000.
  • Eligible Activities.—
  • In General—Subject to paragraph (2), an eligible applicant receiving funds under the program may only use the funds for construction, reconstruction, and rehabilitation activities.
  • Applications
  • Selection Criteria.—In selecting a project to receive funds under the program, the Secretary shall consider the extent to which the project—
  • furthers the goals of the Department, including state of good repair, environmental sustainability, economic competitiveness, quality of life, and safety;
  • improves the condition of critical multimodal transportation facilities;
  • needs construction, reconstruction, or rehabilitation;
  • is included in or eligible for inclusion in the National Register of Historic Places;
  • enhances environmental ecosystems;
  • uses new technologies and innovations that enhance the efficiency of the project;
  • is supported by funds, other than the funds received under the program, to construct, maintain, and operate the facility;
  • spans 2 or more States; and
  • serves land owned by multiple Federal agencies or Indian tribes.

Subtitle B—Data

 Sec. 2101. Tribal Data Collection.

Section 201(c)(6) of title 23, United States Code, is amended by adding at the end the following:

“(C) Tribal Data Collection.—In addition to the data to be collected under subparagraph (A), not later than 90 days after the end of each fiscal year, any entity carrying out a project under the tribal transportation program under section 202 shall submit to the Secretary and the Secretary of the Interior, based on obligations and expenditures under the tribal transportation program during the preceding fiscal year, the following data:

“(i) The names of projects or activities carried out by the entity under the tribal transportation program during the preceding fiscal year.

“(ii) A description of the projects or activities identified under clause (i).

“(iii) The current status of the projects or activities identified under clause (i).

“(iv) An estimate of the number of jobs created and the number of jobs retained by the projects or activities identified under clause (i).”.

Title VI—Extension of Federal-Aid Highway Programs

 Sec. 6001. Extension of Federal-Aid Highway Programs.

(c) Tribal High Priority Projects Program.–

Section 1123(h)(1) of MAP-21 (23 U.S.C. 202 note; Public Law 112-141) is amended—

  • by striking “$24,986,301” and inserting “$30,000,000”; and

by striking “July 31, 2015” and inserting “September 30, 2015″.

Click here for The DRIVE Act and Committee Summary

Update on Senate Committee Chairs and their Agenda for the New Congress

New GOP Senate Chairs Aim To Undo Obama Policies

Posted: 01/03/2015 8:16 am EST Updated: 01/03/2015 10:59 am EST
PAT ROBERTS

With Republicans winning control of the Senate in the November election, all the committees will get new leaders, though all have been around for years.

The heads of the 13 major committees and Veterans’ Affairs are some of the most senior members of the Senate. Three are octogenarians and four are in their late 70s. Only one new leader will be a woman; Alaska Sen. Lisa Murkowski is in line to take over the Energy and Natural Resources Committee.

A look at the powerful senators and their issues:

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AGRICULTURE

Kansas’ Pat Roberts, 78, will consider renewal of child nutrition programs that have been pushed by the White House and expire next year. Roberts has criticized efforts to make school lunches healthier, calling for studies on the costs of the program and economic impact on schools.

Roberts has been a recent dissenter on the normally bipartisan panel, voting against the five-year farm bill that Congress passed in May. Roberts supported the bill’s boost in crop insurance for farmers but said other subsidies needed more changes. He called the entire bill “a look in the rear-view mirror.”

Like his Republican counterparts in the House, Roberts has championed cutting back spending for food stamps, saying the farm bill’s estimated cut of $8 billion over 10 years was insufficient.

Roberts held the gavel of the House Agriculture Committee 20 years ago and during his tenure he helped write the 1996 farm bill.

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APPROPRIATIONS

The gavel of the powerful panel responsible for drafting approximately one-third of the federal budget will return to Mississippi’s Thad Cochran, who turned 77 in December and was just re-elected to a seventh term.

Cochran was in charge during the last two years of the previous GOP majority and was a driving force behind more than $100 billion in funding to help Gulf Coast states recover from Hurricane Katrina. He was also a big practitioner of earmarks, those home-state goodies such as highway projects, economic development grants and university research dollars.

GOP leaders have banned earmarking, but Cochran is sure to back Navy shipbuilding efforts. Ingalls Shipbuilding in Pascagoula, which makes a variety of Navy ships such as modern destroyers, is Mississippi’s largest private employer.

Republicans are expected to use the 12 spending bills to challenge Obama on policy issues, such as health care, financial services, immigration and the environment.

____

ARMED SERVICES

Leading the committee has been a long-sought goal for 78-year-old John McCain of Arizona, the former Navy pilot, Vietnam prisoner of war and two-time presidential candidate who lost to Obama in 2008.

McCain, who has hinted he might seek a sixth term in 2016, stands as one of Obama’s fiercest critics on national security, casting the administration as weak and ineffective in countering threats overseas. He has repeatedly called for arming and training moderate Syrian rebels and favors more U.S. forces in Iraq to battle Islamic State militants.

McCain has been critical of Pentagon contracting. Increased examination of defense manufacturers and acquisition policy is certain. The Pentagon can largely forget about scrapping the A-10 Warthog aircraft, which McCain heavily favors, and can expect close scrutiny of the costly F-35 fighter jet.

____

BANKING, HOUSING AND URBAN AFFAIRS

The wily Richard Shelby, 80, makes a return tour as head of the committee. High on his agenda will be changes to the financial overhaul law enacted in response to the 2008 crisis, known as Dodd-Frank. The 2010 law that brought stricter regulation of banks and Wall Street has been a burr in the side of Republican lawmakers, and the GOP-controlled House has passed numerous bills to unwind it.

Sen. Mitch McConnell, R-Ky., the next majority leader, put it plainly at his day-after-the-election news conference: “The Banking Committee is certainly going to look at Dodd-Frank.” The big banks, he said, “are doing just fine under Dodd-Frank. The community bankers are struggling.”

Besides bank rules, the committee under the Alabama senator also may focus on curbing the authority of the Consumer Protection Financial Bureau over auto lenders and credit card companies. The bureau was created by the financial law.

Also likely to get committee attention is legislation to reshape the housing finance system and wind down mortgage giants Fannie Mae and Freddie Mac.

Shelby succeeded as head of the panel from 2003 to 2007 in blocking bank regulation proposals.

____

BUDGET

In a surprise, Wyoming’s Mike Enzi will become chairman of the Senate Budget Committee after Jeff Sessions of Alabama stepped aside. Sessions had been the top Republican on the committee the past four years.

Enzi, 70, said he will work to craft a budget “that cuts spending, targets executive overreach and reduces the size of government.”

He will be called upon to craft a budget framework that could serve as a template for follow-up legislation to repeal Obama’s health care law and, perhaps, tackle expensive benefit programs such as Medicaid and food stamps.

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COMMERCE, SCIENCE AND TRANSPORTATION

South Dakota’s John Thune, 53, faces a heavy workload — reauthorization of the Federal Aviation Administration and Amtrak, net neutrality and transportation.

The committee will have to address the auto safety portions of the highway bill in the aftermath of General Motors faulty ignition switch recalls, now linked to more than two dozen deaths, and the Takata air bag recalls, also linked to several deaths. Proposals to toughen federal oversight of the auto industry are likely. Some lawmakers have called for eliminating the $35 million cap on how much the government can fine automakers in such cases.

____

ENERGY AND NATURAL RESOURCES

An energy policy expert from an energy-producing state, the 57-year-old Murkowski wants to unlock as much of America’s energy as safely possible.

Murkowski has argued for opening up the Arctic National Wildlife Refuge for drilling, as well as Alaska’s offshore, and has opposed regulations that block energy production. She believes EPA regulations to curb coal-fired power plant pollution to deal with global warming will threaten the reliability and raise the costs of electricity.

She supports exporting U.S. natural gas and has led the charge on pressuring the administration to lift restrictions on exports of crude oil. She has backed the immediate approval of the Keystone XL oil pipeline, which McConnell has said will be first on the new agenda.

Murkowski, unlike others in the GOP, believes global warming is happening and that Alaskans are already experiencing the effects of rising water temperatures and thinning ice.

____

ENVIRONMENT AND PUBLIC WORKS

The likely ascent of Oklahoma’s James Inhofe, 79, represents one of the biggest sea changes on a Senate committee with Republicans in charge.

Inhofe, one of Congress’ most vocal deniers of the scientific consensus of climate change, wrote in a 2012 book that global warming was “a hoax.” He will replace Californian Barbara Boxer, who introduced climate change legislation in 2009 and was an ally of the environmental community and Obama.

Inhofe, by contrast, is a thorn in the side of the Environmental Protection Agency and has argued that more regulation will kill the economy and jobs. Inhofe has called on the EPA to abandon stricter rules on refinery air pollution and to reject their own scientists’ recommendation to tighten a standard for the main ingredient in smog. Inhofe is likely to boost oversight of the agency and try to thwart its agenda at a time when Obama wants to shore up his climate legacy.

____

FINANCE

The 2010 health care law is in the GOP’s crosshairs, and Utah’s Orrin Hatch, 80, is likely to use his position to take the first step at chipping away at it.

Hatch has called the law’s tax on medical devices “stupid” and is determined to roll it back. He is likely to gain some Democratic support for the effort.

Hatch could be a free-trade ally for Obama if the president pushes more trade agreements.

Overhauling the nation’s complicated tax laws also is a priority for Hatch. But it’s a heavy lift.

Administration officials say Obama will offer new specifics in the coming year on how he would like to reshape corporate taxes, which now feature the highest rate in the industrialized world. But bridging the divide between Republicans and Democrats on major tax legislation would require a level of bipartisanship that has largely been absent during Obama’s first six years as president.

Hatch has worked with Democrats in the past; his friendship with the late Sen. Edward Kennedy of Massachusetts is legendary. Hatch will need to work with Democrats again if he is to advance an overhaul of the tax code.

____

FOREIGN RELATIONS

Tennessee’s Bob Corker, 62, has criticized Obama’s foreign policy as tepid in dealing with Russia, Libya and Syria. Like several other Republicans on the committee, Corker has deep reservations about the administration’s negotiations with Iran over its nuclear program. Some Republicans have said the GOP will push new penalties this month that target Tehran.

Secretary of State John Kerry has asked Congress for new war powers in the fight against the Islamic State group. Corker has raised the possibility that he could work with the administration on the issue.

Obama’s ambassadorial picks and other nominees would face a rough outing before the committee.

___

HEALTH, EDUCATION, LABOR AND PENSIONS

Tennessee’s Lamar Alexander, 74, is a former education secretary under President George H.W. Bush, governor and president of the University of Tennessee.

A lawyer by trade, he helped form a corporate childcare company in the private sector. Alexander said he wants to fix President George W. Bush’s No Child Left Behind education law that’s been due to be renewed since 2007 and update the Higher Education Act.

He’s called the health care law a “historic mistake” and supports repealing it. He’s also said modernizing the National Institutes of Health and Food and Drug Administration is a necessity, and he is seeking to examine the FDA’s process for drug and device review. On workers’ issues, he’s sought to turn the National Labor Relations Board into what he says is more of an umpire role.

____

JUDICIARY

A farmer, not an attorney, Iowa’s Charles Grassley, 81, has been on the Judiciary Committee since his 1980 election to the Senate. But this will be his first stint as its chairman.

In that post, many expect him to continue his long-running interest in protecting whistle-blowers who reveal details of alleged fraud by government contractors and others. He’s also expected to continue oversight of programs like the Justice Department’s bungled “Fast and Furious” operation, under which federal agents lost control of guns they were tracing to Mexican drug lords. Many also expect him to work on legislation easing federal regulations on businesses.

Grassley opposed last year’s Senate-approved bipartisan immigration bill, arguing that it needed to do more to secure the country’s borders before granting legal status to people in the U.S. illegally. He’s also pressed for more information about the National Security Agency’s ability to gather information on Americans, though he’s cautioned that the agency must be able to protect national security.

A decade ago, Grassley spent time as chairman of the Senate Finance Committee and played a role in winning approval of President George W. Bush’s 2001 tax cuts and the 2003 addition of prescription drug benefits to Medicare.

____

HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

Wisconsin’s Ron Johnson, 59, has been a tough questioner of administration officials about the deadly 2012 attack on the U.S. diplomatic outpost in Benghazi, Libya. The question will be whether the panel’s Permanent Subcommittee on Investigation opens another Benghazi inquiry in Congress as well as other reviews of the Democratic administration.

Under the leadership of Delaware Democrat Tom Carper, the committee focused primarily on the internal workings of the sprawling Homeland Security Department, including low morale ratings from rank-and-file employees and contracting issues.

Johnson has focused on those rankings in the past and led an investigation of complaints from whistle-blowers about the department’s former acting inspector general. His report, co-authored with Missouri Democrat Claire McCaskill, prompted DHS Secretary Jeh Johnson to suspend the former top internal investigator.

While the committee has addressed immigration issues in the past, senators on this panel have not taken as prominent a role as their counterparts on the Senate Judiciary Committee. In the coming months, however, any administrative changes put in place by Obama are almost certain to be reviewed.

___

VETERANS’ AFFAIRS:

Georgia’s Johnny Isakson, 70, has stressed mental health needs of veterans and voted in favor a bill to provide two-year funding for veterans’ benefits, so veterans would continue to receive benefits even in a government shutdown.

Aides say Isakson’s priorities as chairman would include oversight of the new Veterans Access, Choice and Accountability Act of 2014, which was approved this past summer in response to a scandal over long wait times for veterans seeking health care and falsification of records to cover up delays.

Isakson strongly supports a provision in the law that makes it easier for veterans to seek Department of Veterans Affairs-paid care from local doctors. Bringing competition into the VA health care system will improve services, he says. Isakson also said the new law provides an opportunity for the VA to assess the quality of it leadership and management, and said underperforming executives and managers should be fired.

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Associated Press writers Andrew Taylor, Kimberly Hefling, Joan Lowy, Alan Fram, Marcy Gordon, Matthew Daly and Alicia Caldwell contributed to this report.

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WASHINGTON UPDATE: What will happen in the New Congress

The Spending Bill:

 The House of Representatives passed a spending bill, on a vote of 206 to 219.  At the time Tribal Conferences were being held in Las Vegas, the week of Dec. 9, the bill was in the Senate awaiting vote.  The Senate, since has passed the spending bill just a few hours before midnight on Saturday Dec. 13, 2014 and avoided a Government Shutdown.  The vote was 56 to 40 assuring the government would remain funded until September 15, 2015.

Senator Elizabeth Warren of Mass. objected to the roll back of Wall Street reforms that would allow for risky investments that could again lead to bail outs of the banks. Another poison pill objected to by Democrats was the increase in election campaign contributions jumping from 90 million to over 300,000 million in allowable soft money.  But the bill was considered a compromise for both parties, and the President will receive full spending on all but one agency, Homeland Security, to postpone the immigration debate until February.

 The bottom line, the liberal wing of the Democratic Party and the conservative wing of the Republican Party were disappointed.  The result however, is the President did receive extra funding for Ebola research and to fight ISIS, and full funding of agencies that are implementing the Affordable Care Act.

On the elections, the tables have turn in the Senate:  The new republican majority isn’t likely to play nice, and payback will likely be the name of the game.  The vote count, in the Senate, Republicans now control with 54, and the Dems 44, with 2 Independents.

In the House, a sharper turn to the right, House leaders will have to navigate a larger GOP caucus ripe with fresh hard-liners ready to oppose them.  The vote count, Reps control a bigger majority with 244 and the Dems 184 and 7 are not yet called.

 On the issues, Speaker Boehner has complained about the conservatives in his caucus as “knuckleheads” but has expressed confidence to keep his caucus together.  He has said that tax reform and a big Highway bill are doable.   He has put fixing the tax code as a priority to improve the economy, although most say big reform is too ambitious for a divided republican caucus.

 The House will push for their jobs bills that died in the Senate and for the keystone pipeline.  And they will fight for repeal of the medial device tax in Obama Care.  And it is predicted that more stalemate will occur on the budget and debt ceiling issues that will come up in the new congress.   A budget resolution is due in March or April, but it is likely to see continuing resolutions and there will be intense debates on the debt ceiling to increase government borrowing.   It is predicted that Republican leadership will continue to struggle to get consensus as some try to force cuts to shut down immigration reform or Obama Care Programs.

 In the Senate with a new majority and Mitch McConnell in charge the President and the Democratic Caucus will feel payback.  Republicans have said they are going after health care, financial services, and EPA.  So the chances of a grand bargain on the Tax Code are slim and soon there will be political maneuvering of the 2016 Presidential Contest.  They predict a narrow window next year to get things done.

 On Committee’s:  In the House, retirements, term limits and election results yield new dynamics.  On Transportation, Shuster remains as Chair, and looks like for Dems because Rahall from West Va lost, that Peter Defazio will be ranking from Oregon.  Natural Resources with departure of Doc Hasting , Bob Bishp of Utah will be Chair.  Hanabusa lost her fight for Senate so not sure as of yet the ranking member of Resources.

 On Ways and Means, Paul Ryan is taking over for Camp.  Ryan did support this fall Camp’s proposal for funneling in the one-time windfall from over hauling corporate taxes into infrastructure.   The administration has called this transitional funding for Transportation falling out of Tax reform.  On Agriculture, Conway of Texas replaces Lucas as Chairman.  Appropriations Rogers of Kentucky remains as Chair, and Lowry of NY as ranking member.  Budget is Price as Chairman. On Energy, Upton is Chair and Pallone won the fight over Democrat Eshoo for ranking member who was favored by Pelosi.

 In the Senate the new majority means a real changing of the guard is occurring.  On Commerce Science and Transportation John Thune of SD replacing Jay Rockefeller as Chair.  Senator Boxer is senior and is likely to hold ranking member.  On Environmental and Public Works that decides the tribal transportation formula, Senator Inhofe of Oklahoma will Chair.   And Senator Bill Nelson the Ranking member on Commerce.

On Energy Murkowski of Alaska will chair with Maria Cantwell as Ranking.  On Finance, Senator Orin Hatch will Chair, Appropriations Thad Cochran will Chair, and Milkulski of MD is ranking.  On Armed Service McCain will Chair and Reed of RI will be ranking.  On Budget Senator Enzi of Wyoming, and on Banking Senator Shelby of Alabama will Chair.  Senator Barrasso will Chair the Senate Indian Affairs Committee.  It is still very dynamic and not all Chairmanships have been announced.

 What will happen with Transportation and the re-authorization bill and trust fund, and the now May 15th deadline?

 Chairman Shuster has vowed not to do short term funding and has proposed a six year measure.  Paul Ryan has proposed funding through the Tax Code.  And the administration has also said that through Tax reforms what they refer to as Transitional funding would allow for increases in the Highway Trust fund.  But the reforms to the Tax code are not likely to look the same from opposing parties.

 Recently at a Department of Transportation listening session the Deputy Secretary commented that he believes a compromise would be possible and that funding could be increased by a onetime infusion of 150 billion as part of the Grow American Act introduced by the President. Right now the Highway Trust Fund is short by 167 Billion.  So there is a scramble to find new funding.

The Grow America Act introduced by the Administration, is a 4 year authorization of Transportation, both sides want an authorization bill that is longer term.   And Speaker Boehner has said that he believes a big Highway Bill is doable in the new congress.  But can they meet the May deadline and whether it is possible to get a tax code revision in time to add money into the Highway Trust fund is the question.

The president’s proposal is funded by supplementing current revenue with $150 billion in one time infusion of  ‘Transition’ revenue.  So from addressing the 1 to 2 trillion of un-taxed foreign earnings that US companies have accumulated overseas and from reforming accumulated depreciation–this one time savings from a transition to new business tax system could help pay for the proposed transportation budget.

 Paul Ryan has also expressed support for the former Ways and Means Chairman Camp’s proposed windfall from tax reform for infrastructure funding.  Thus it appears that there is the political will from both the Republicans and the White House to use tax reform to pour money into infrastructure.

 The bottom-line: Both parties will have to work together to get major measures through congress, but there does appear to be political will on both sides to pass a longer term authorization bill and to find new funding for the Highway Trust Fund through tax reform.

 Read The Year According to Rep. Tom Cole

Who won the Democrat and Republican Gift Exchange: Roll Call Article by Nathan Gonzales Dec. 24, 2013

ImageThe two parties aren’t exactly on the best of terms these days, but that didn’t stop Republicans and Democrats from exchanging gifts over the past year — even if they didn’t intend to.

Instead of fruitcake, each party gave the other a sparkling set of potentially potent political opportunities. And regardless of whether it was intended, there is a common theme among the gifts on both sides.

5 Gifts From Republicans to Democrats

Ted Cruz: The junior senator from Texas nearly single-handedly changed the trajectory of the midterm elections to a referendum on the tea party and the government shutdown. The botched rollout of HealthCare.gov might have bailed out Cruz by shifting the focus back to the Affordable Care Act, but there is still almost a year left for the senator to rise again.

The tea party: One of the only entities less popular than President Barack Obama and the Democratic Party is the tea party. However you want to define it, the tea party is the gift that keeps on giving to Democrats. Whether through rhetoric, tactics or damaged candidates, Democrats will use this gift in races across the country to try to bring down Republicans, even ones who aren’t part of the movement.

The government shutdown: Democrats are determined to make the 2014 elections a referendum on the tea party and an unpopular Congress led by the Republican House majority. The government shutdown was a gift that played right into Democrats’ hands. Even though it’s over and may not happen again, Democrats will remind voters about it next year and use Republican votes for the piecemeal bills as evidence that they voted to “shut down the government.”

Georgia GOP Sen. Saxby Chambliss’s retirement prompted a crowd of Republicans to jump into the race to succeed him. At a minimum this gift could produce a damaged and financially broke GOP nominee after a bitter runoff on July 22. Or even better for Democrats, Republicans could nominate a potentially unelectable candidate. Georgia isn’t a swing state yet, but this gift could make the Senate race competitive next year.

Tom Latham’s and Frank R. Wolf’s Retirements. Democrats have been waiting for both GOP congressmen to leave so that they could seriously challenge their seats in Iowa and Virginia, respectively. Republicans apparently decided to grant Democrats an early Christmas miracle when both men announced their retirement on the same day. Democrats have a great opportunity to win both seats next year, unless their party’s gifts to Republicans get in the way.

5 Gifts From Democrats to Republicans

An unpopular president: There may not be a bigger gift this season than an unpopular president before the midterm elections. Obama’s job rating stands at about 42 percent approve and 54 percent disapprove, according to the HuffPost Pollster average. Obama’s job rating stood at 45 percent approve and 50 percent disapprove before the 2010 midterm elections, when Republicans made major gains in the House and Senate. Of course the president’s standing can improve, but it won’t be easy.

“If your like your health care plan, you can keep it”: Even as the White House and some Democrats on the Hill are working to make this gift irrelevant, it is likely to be the one that keeps on giving next year. Obama’s now nuanced campaign promise is more than a policy issue. It risks damaging his credibility, which can be much more difficult to recover. And some Democratic incumbents are on the record saying the same thing. Politifact added to the gift by declaring the statement the 2013 “Lie of the Year.”

The Affordable Care Act: This is practically a re-gift from 2010, but Republicans won’t turn it down. Some optimistic Democrats believe the ACA will ultimately be a gift to their party, as people start to enjoy the benefits. But some Democratic strategists and candidates see it as that gift you get that you can’t return or even give away. The legislation continues to be very polarizing and particularly unpopular in right-leaning districts and states where the battle for the majorities will take place.

Rep. Jim Matheson’s retirement: Cycle after cycle, Republicans failed to defeat the Democratic congressman from Utah. But his recent retirement announcement opens up the 4th District, and makes it a very likely GOP takeover.

Senate retirements: If Sens. Tim Johnson of South Dakota, Jay Rockefeller of West Virginia, Max Baucus of Montana, Carl Levin of Michigan, and Tom Harkin of Iowa hadn’t announced their retirements, we wouldn’t be talking about Republicans having a chance at winning a Senate majority next year. A couple of them could have faced competitive races, but not all of them. The open seats are a huge gift from Democrats to Republicans.

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