Federal Update – Affordable Connectivity Program Funding, Property Insurance Crisis, Federal Disaster Loan Program and More
June 6, 2024
President Biden Takes Executive Action on Southwest Border
On June 4, President Joe Biden took executive action that will prevent migrants from claiming asylum between ports of entry when the seven-day average of daily encounters exceeds 2,500. Because arrests currently exceed that threshold, the restrictions went into effect immediately. As a result, border officials have moved to temporarily halt asylum claims and are working to expel foreign nationals who have crossed the border illegally. In addition, migrants who are expelled under the order will receive a minimum five-year bar on reentry to the United States and potentially be criminally prosecuted. The asylum ban will stay in place until arrests drop below an average of 1,500 per day for one week.
It should be noted that the restrictions only apply to migrants attempting to cross between ports of entry and does not apply to those with an appointment at a designated port. It also does not apply to individuals who have applied to enter through various parole programs or temporary work visa holders. There are also exemptions in place for unaccompanied minors, those who face serious medical or safety threats, and victims of trafficking.
President Biden’s executive action comes on the heels of several failed attempts in Congress to advance a series of immigration-related reforms. While many congressional Democrats lauded the president’s move, a number of progressive members of the party generally expressed disappointment that the policies are akin to reviving the previous administration’s asylum ban.
Affordable Connectivity Program (ACP) Lapses; Senate Committee Slated to Vote on ACP Funding Bill
On June 1, the Federal Communications Commission (FCC) took formal steps to end the Affordable Connectivity Program (ACP) due to a lack of congressional funding. Enacted as part of the 2021 Infrastructure Investment and Jobs Act (P.L. 117-58), the ACP is an FCC-administered program designed to help ensure that low-income individuals and families can afford essential broadband service. Specifically, the program provided a discount of up to $30 per month toward internet service for eligible households and up to $75 per month for households within high-cost areas and qualifying Tribal lands.
It should be noted that as the ACP drew to a close late last week, the Biden administration announced that a number of internet service providers (ISPs) have committed to offering discounted internet plans (at $30 or less) to low-income households through the end of the year. All told, more than a dozen companies have agreed to offer the plans, which will cover roughly 10 million ACP households.
While supporters of the ACP welcomed last week’s White House announcement, congressional champions of the program have vowed to continue their efforts to provide a fresh infusion of funding for the ACP. For her part, the chair of the Senate Commerce Committee, Senator Maria Cantwell (D-WA), has announced that her committee will vote on legislation S. 4207 that would use a portion of the proceeds from a new Spectrum Auction Trust Fund to provide $7 billion in new funding for the ACP. The provisions are part of a larger telecommunications package known as the Spectrum and National Security Act of 2024.
S. 4207 is scheduled to be marked up in the Commerce Committee on June 12.
Senate Panel Reviews Underlying Causes of Property Insurance Crisis
On June 5, the Senate Budget Committee held a hearing entitled, “Riskier Business: How Climate is Already Challenging Insurance Markets.” The hearing was an opportunity for lawmakers to discuss the underlying causes of the current property and commercial insurance crisis. While the testimony was primarily focused on Florida, many of the same issues and principles carry over to the California market.
For their part, Democrats on the panel identified climate change as a major driver of high-damage claims and rising premium costs. Republicans, on the other hand, pointed to rising federal spending levels and inflation – including increased costs of labor and materials to rebuild or repair homes – as the main cause of insurance price hikes. Some Republicans also identified increased development into disaster-prone areas as another key factor that contributes to high insurance premiums. While there was some significant disagreement on the underlying cause(s) of the current insurance crisis, there was bipartisan agreement on the need to reduce risk and support mitigation measures that improve resilience to future disasters.
Notably, Democrats on the Budget Committee have several open investigations into the threat that climate change poses to insurance markets. As part of one investigation, the committee has requested information from dozens of private sector insurers on how they plan to address increased underwriting losses from climate disasters. The subject of another inquiry is how the insurance industry at large evaluates climate-related risks, decides to invest in or underwrite fossil fuel expansion projects that drive such risks, and policies that insure such projects. The third investigation focuses specifically on Florida’s state-run insurance provider.
CA Representative Introduces Legislation to Improve Federal Disaster Loan Programs
Representative Julia Brownley (D-CA) recently introduced legislation – the Federal Disaster Assistance Act (H.R. 8582) – that aims to improve FEMA disaster programs to better address the impacts of highly localized disasters. Among other things, the bill would extend the authority to request a Stafford Act declaration to affected counties in cases in which the governor does not seek such assistance. H.R. 8582 also would require FEMA to amend its regulations to include additional quantitative measures in the evaluation of requests for federal assistance, including vulnerable populations, low-income communities, unemployment, lack of insurance, and other factors that impact the ability of vulnerable and disadvantaged communities to recover.
Congresswoman Brownley has also introduced a separate measure – the Disaster Loan Forgiveness Act (H.R. 8581) – that would give the Small Business Administration the authority to forgive certain disaster loans for low-income individuals and families, as well as small businesses and small non-profit organizations.
EPA Proposes Water System Restructuring Assessment Rule
On May 30, the U.S. Environmental Protection Agency (EPA) issued a proposed rule that would allow states to mandate assessments for how Public Water Systems (PWS) that chronically violate federal drinking water standards could be restructured.
EPA’s proposal stems from recent amendments to the Safe Drinking Water Act (SDWA) that granted the Agency and states new regulatory authorities. Pursuant to the rule, a PWS would be subject to a mandatory assessment if a state finds that: (1) the PWS has repeatedly violated one or more National Primary Drinking Water Regulations (NPDWRs) and such violations are likely to adversely affect human health; (2) the PWS is unable or unwilling to implement restructuring activities or already has attempted to implement such activities, but has not achieved compliance; (3) restructuring of the PWS, including a form of consolidation or a transfer of ownership, is feasible; and, (4) restructuring of the PWS could result in greater compliance with drinking water standards. Although EPA’s new mandatory assessment requirements would not apply to water systems that do not meet the aforementioned criteria, such PWSs could develop and submit restructuring plans eligible for restructuring incentives.
A copy of the proposed rule can be accessed here. Stakeholders have until July 29 to submit comments to the EPA.