Federal Issues Update:
Congress Back From Recess This Week
After a month-long congressional recess, lawmakers returned to
Capitol Hill the week of September 7 to a long list of unfinished
business and looming deadlines. Among the most pressing issues
are the Iran nuclear agreement, fiscal year 2016 spending, a debt
limit increase, and a reauthorization of MAP-21.
As expected, the first order of business for both chambers
following the August break was the proposed nuclear deal with
Iran. The agreement, which was negotiated by the Obama
administration, would limit Iran’s nuclear activities for a
minimum of 10 years. In exchange, the U.S. and others would agree
to lift international and financial sanctions that have been
imposed on the country for years.
In the Senate, Democrats were able to filibuster a joint
resolution disapproving of the agreement. However, Senate
Republicans have indicated that they will once again attempt to
move forward with consideration of the resolution next week.
Should the chamber ultimately advance the measure, President
Obama has indicated that he would veto it (there is enough
support among Senate Democrats to sustain the president’s
veto).
Across Capitol Hill, House Republicans attempted a more
comprehensive attack on the administration’s foreign policy. On
September 10, the lower chamber approved a resolution (H Res 411)
asserting that the Obama administration has not provided the
necessary information required for congressional review of the
deal. The House is also likely to approve legislation (HR 3460)
that would suspend the president’s authority to lift sanctions on
Iran. Finally, the lower chamber is expected to reject another
measure (HR 3461) that would express congressional approval of
the nuclear agreement.
On the appropriations front, lawmakers have not yet reached an
agreement on a new spending framework for fiscal year 2016 and
beyond. With just over two weeks remaining before the October 1
start of the new fiscal year, Congress must decide whether to
move forward with a full-year continuing resolution (CR), a
short-term extension of funding, or a catch-all omnibus
appropriations package that includes all 12 individual spending
bills. Regardless of which option prevails, House and Senate
leaders will need to act fast to keep basic government functions
operating into October.
Further complicating matters, House conservatives have insisted
on using the appropriations process to block funding for Planned
Parenthood. However, the controversial policy rider is a
nonstarter for a large percentage of the Democratic caucus. For
his part, the president has threatened to veto any spending bill
that includes such language.
On a related matter, lawmakers must soon grapple with the need to
once again increase the nation’s debt limit. The Department of
the Treasury has been using so-called “extraordinary measures” to
enable the government to continue borrowing since the limit was
last addressed in March. While Treasury Secretary Jack Lew has
indicated that the debt ceiling will need to be raised by late
October, he is urging Congress to act as soon as possible to
avoid any disruptions in the financial markets.
In recent years, conservatives have viewed the debt ceiling
battle as an opportunity to cut spending, while Democrats have
insisted that any such measure be “clean” and straightforward.
Notably, Senate Majority Leader McConnell (R-KY) and House
Speaker John Boehner (R-OH) have vowed to prevent the U.S. from
defaulting on its debt obligations, but it remains to be seen how
Congress will ultimately handle the next increase.
In other news, the House Transportation and Infrastructure
(T&I) Committee is in the process of finalizing a multi-year
reauthorization of highway and transit programs. Prior to the
August recess, and as previously reported, the Senate approved
its own long-term bill – the Developing a Reliable and Innovative
Vision for the Economy (DRIVE) Act (HR 22). While there was some
speculation that the T&I Committee could mark up its own
long-term bill next week, it appears that such consideration will
be delayed until later this month, or possibly early October.
It should be noted that the most recent extension of MAP-21 (PL
114-41) will keep surface transportation programs operating until
October 29. In addition, new estimates from the Department of
Transportation show that the Highway Trust Fund (HTF) could
remain solvent through June of 2016. Previous estimates had
indicated that the HTF would run dry by December. While this came
as good news to some, other lawmakers expressed concern that this
could slow momentum for a new multi-year deal, as there would be
less urgency to act.
Finally, the National Association of Counties (NACo) held a
Washington, D.C. fly-in this week to advocate for the
Payments-in-Lieu-of-Taxes (PILT) program. Mariposa County
Supervisor Kevin Cann represented California’s counties in a
series of meetings on Capitol Hill. He, along with a number of
other county officials from across the nation, urged Congress to
provide full funding for PILT in fiscal year 2016 and beyond.
In fiscal year 2015, Congress appropriated $442 million for the
PILT program. However, unless the program is reauthorized or
extended, this will be the last year of funding. While the fiscal
year 2016 House Interior and Environment appropriations bill
would provide an additional year of PILT funding, Congress has
not finalized a new budget. Accordingly, the future of the PILT
program, and therefore program funding to counties, remains
uncertain.