March 27, 2015

The House and Senate both passed their FY16 budget resolutions this week. The House also passed HR 2, the Medicare Access and CHIP Reauthorization Act of 2015. The Senate passed S 535, the Energy Efficiency Improvement Act and confirmed William Doyle to be a Federal Maritime Commissioner. 

FY16 Budget Resolution

The House and Senate approved their FY16 budget resolutions this week setting up a conference committee on the measures when they return from recess the week of April 13. If they can come to agreement on a conference report, they can then start work on the FY16 appropriations bills as well as the reconciliation process. The last time Congress agreed on a budget resolution was in 2009.

House FY16 Budget Resolution

The House passed its FY16 budget resolution on Wednesday by a vote of 228 to 199, with 17 Republicans voting in opposition. The House utilized a “Queen of the Hill” or “winner takes all” approach when considering six budget resolutions on the floor, meaning that they would adopt the resolution that got the most votes out of those that got a simple majority. The winning budget resolution offered by House Budget Committee Chairman Tom Price (R-GA) keeps defense and nondefense spending at $523 billion and $493 billion, respectively, in line with the 2011 Budget Control Act (BCA); but it increases by $38 billion the limit on the Overseas Contingency Operations (OCO) account to $96 billion and removes a requirement that any of this increase be offset.

Senate FY16 Budget Resolution

The Senate passed their FY16 budget resolution by a vote of 52 to 46 in the wee hours Friday morning. The Senate resolution also adheres to the spending caps set in the 2011 BCA and includes $96 billion in OCO funding. However, the resolution also includes a budgetary point of order against spending more than $58 billion in the OCO account. A budgetary point of order requires 60 votes to waive. Senate Armed Services Committee Chairman John McCain (R-AZ) had intended to offer an amendment to raise the point of order threshold from $58 billion to $96 billion, but in the end decided not to because of opposition from fiscal hawks in his own party. This budgetary point of order could complicate the FY16 defense appropriations process later this year as any FY16 defense spending bill that funds the OCO account above $58 billion would require 60 votes to overcome the budgetary point of order.

Medicare Physician Payment Formula – “Doc Fix”

The current payment patch for the Medicare physician payment formula expires on March 31, causing a 21% cut in physicians’ reimbursement rates. The House passed HR 2, the Medicare Access and CHIP Reauthorization Act of 2015 this week, which provides a permanent fix for the Medicare doctor payments dictated by the sustainable growth rate (SGR) formula, and extends the Children’s Health Insurance Program (CHIP). Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Harry Reid (D-NV) said that the Senate would take up the legislation after they return from their two-week recess. Senate Democrats were requesting votes on a limited number of amendments including a four-year extension of the CHIP instead of the two-year extension included in the House-passed bill. While the current “doc fix” patch expires during the recess, the Centers for Medicare and Medicaid Services could hold off on processing claims for two weeks giving the Senate time to act when it returns the week of April 13. The agency has done this in the past, but has not yet announced its intentions for this expiration date.

Cybersecurity

The House Permanent Select Committee on Intelligence marked up and passed out of committee by voice vote HR 1560, the Protecting Cyber Networks Act (PCNA) (http://intelligence.house.gov/ProtectingCyberNetworksAct). A manager’s amendment making technical changes to the bill was adopted by voice vote prior to final passage in committee this week. The bill would increase the sharing of cyberthreat indicators between the government and the private sector. To allay privacy concerns, the bill specifies that private companies must make reasonable attempts to scrub any personally identifiable information from the data before they share it with the government. The civilian agency receiving the data must do another round of scrubbing private data before it can be shared with NSA or DoD. And the bill specifically prohibits the use of data collected for any government surveillance purposes.

The Senate Intelligence Committee has also passed a similar cybersecurity bill, S 754, the Cybersecurity Information Sharing Act (CISA) (https://www.vantagepointstrat.com/?p=369). Both Intelligence Committee bills are expected to be considered in their respective chamber’s floors after the two-week recess, with the Senate likely to go first.

The House Homeland Security Committee has also released a draft information sharing bill, the National Cybersecurity Protection Advancement Act (https://www.vantagepointstrat.com/?p=372), which provides a path for companies to share cyberthreat data with the Department of Homeland Security. The committee hopes to mark up that bill after the return from the two-week recess.

Defense Acquisition Reform

House Armed Services Committee (HASC) Chairman Mac Thornberry (R-TX) and Ranking Member Adam Smith (D-WA) released a draft acquisition reform bill (HR 1597) this week that focuses on a set of reform measures to be included in the FY16 National Defense Authorization Act. According to Thornberry, these measures are just the first step in a multiyear, incremental reform program for the Department of Defense, based on a guiding principle of “first do no harm,” and built upon the notion that a successful acquisition system is proactive, agile, transparent, and innovative.

The draft acquisition reform bill focuses on the following four areas:

People

• Removes the barriers that discourage the best uniformed personnel from pursuing an acquisition profession including by ensuring they receive appropriate credit for joint duty – a vital requirement for officers who hope to attain senior ranks.
• Makes permanent the Defense Acquisition Workforce Development Fund (DAWDF), a temporary pool of money Congress established in 2009 to boost hiring and professional development within DoD. The DAWDF pilot program is currently set to expire in 2018.
• Requires all DoD acquisition personnel receive mandatory acquisition ethics training as well as training on commercial markets and commercial market research.
• Requires training on the commercial market including commercial market research to help close the gap between government and industry.

Acquisition Strategy

• Requires every program to have an upfront, written acquisition strategy, which will include things like what type of contract vehicle is best suited for the program objectives and the level of program risk, whether multi-year is appropriate, risk mitigation strategies, incentives (such as shared savings on services), etc. This would eliminate six different bureaucratic requirements. The strategy would be updated as needed throughout the life of the program.
• Reverses Pentagon procurement rules that give preference to fixed-price contracts that require contractors to pick up the tab if projects go over budget. The draft bill would make it easier for program managers to choose other contract types, including cost-plus deals in which contractors and the government share in paying for cost overruns.
• Encourages shared savings through the use of value engineering in which contractors identify ways to reduce the cost of performance on existing contracts and shares with the government any savings produced.

Streamline the Chain of Command for Acquisition Decisions

• Reduces extensive, non-productive legal reviews and certifications that DoD has to make at key acquisition decision points and instead converts them into simpler go-or-no-go management decisions.
• Streamlines the acquisition strategy approval process, including by raising the dollar threshold for simplified acquisition procedures.
• Clarifies that the roll of the testing community is to just test, not to manage the program or make acquisition decisions. Allows those close to the program to make the determination for moving from development to acquisition stages.
• Eliminates a rule that mandates that competitive prototyping be used in acquisition programs unless program managers get a waiver.

Thin Out Regulations and Paperwork

• Eliminates some reporting requirements for program managers.
• Eliminates dozens of reports Congress currently requires DoD to draft and deliver each year.

The committee also released draft report language that lays the groundwork for reform in future years. For example, the report language requests DoD to provide additional data on service contracts, which have been experiencing significant problems. While Thornberry would like to address this issue this year, the committee lacks sufficient information to draft a legislative solution right now. Thornberry said that he is trying to avoid creating new regulations and therefore more bureaucracy with this legislation.

Thornberry intends to use the FY16 National Defense Authorization Act (NDAA) as the vehicle for this acquisition reform bill. The NDAA will be marked up in the HASC full committee on April 29.

A copy of the draft bill can be found at:

http://armedservices.house.gov/index.cfm?a=Files.Serve&File_id=0536B323-C097-4A25-979E-983AB6210B13

A copy of the report language can be found at:

http://armedservices.house.gov/index.cfm?a=Files.Serve&File_id=71F8382B-D158-4358-9171-85B688F18BE3

The HASC Defense Reform Fact Sheet can be found at:

http://armedservices.house.gov/index.cfm?a=Files.Serve&File_id=6BA52738-8917-46EB-8777-84B1E6A704C4

Chairman Thornberry’s remarks can be found at:

http://armedservices.house.gov/index.cfm?a=Files.Serve&File_id=8D259E50-DF11-441B-880B-4E008B65E396

FTC Bureau of Consumer Protection Creates Office of Technology Research and Innovation

This week the Federal Trade Commission’s (FTC) Bureau of Consumer Protection announced that it had formed an Office of Technology Research and Investigation (OTRI). The FTC is tasked with protecting consumers from deceptive and unfair practices involving new technologies. The new OTRI succeeds the FTC’s Mobile Technology Unit in its role of protecting consumers in emerging marketplaces. However, OTRI will have a broader mandate looking beyond the technology just surrounding mobile devices. The new office will focus on investigative research on technology issues involving all facets of the FTC’s consumer protection mission, including privacy, data security, connected cars, smart homes, algorithmic transparency, emerging payment methods, big data, and the Internet of Things.

House Appropriations Subcommittee Assignments

House Appropriations Committee Chairman Hal Rogers (R-KY) announced updated Republican rosters for the 12 Appropriations subcommittees for the 114^th Congress. The changes were prompted by the addition of Rep. Steven Palazzo (R-MS) joining the Appropriations Committee.

The subcommittee Chairs and Members are as follows:

Agriculture Subcommittee:

Chairman Robert Aderholt (R-AL)

Kevin Yoder (R-KS)

Tom Rooney (R-FL)

David Valadao (R-CA)

Andy Harris (R-MD)

David Young (R-IA)

Steven Palazzo (R-MS)

Commerce, Justice, Science Subcommittee:

Chairman John Culberson (R-TX)

Robert Aderholt (R-AL)

John Carter (R-TX)

Jaime Herrera Beutler (R-WA)

Martha Roby (R-AL)

David Jolly (R-FL)

Steven Palazzo (R-MS)

Defense Subcommittee:

Chairman Rodney Frelinghuysen (R-NJ)

Kay Granger (R-TX)

Ander Crenshaw (R-FL)

Ken Calvert (R-CA)

Tom Cole (R-OK)

Steve Womack (R-AR)

Robert Aderholt (R-AL)

John Carter (R-TX)

Mario Diaz-Balart (R-FL)

Tom Graves (R-GA)

Energy and Water Subcommittee:

Chairman Mike Simpson (R-ID)

Rodney Frelinghuysen (R-NJ)

Ken Calvert (R-CA)

Chuck Fleischmann (R-TN)

Jeff Fortenberry (R-NE)

Kay Granger (R-TX)

Jaime Herrera Beutler (R-WA)

David Valadao (R-CA)

Financial Services Subcommittee:

Chairman Ander Crenshaw (R-FL)

Tom Graves (R-GA)

Kevin Yoder (R-KS)

Steve Womack (R-AR)

Jaime Herrera Beutler (R-WA)

Mark Amodei (R-NV)

Scott Rigell (R-VA)

Homeland Security Subcommittee:

Chairman John Carter (R-TX)

John Culberson (R-TX)

Rodney Frelinghuysen (R-NJ)

Chuck Fleischmann (R-TN)

Andy Harris (R-MD)

Chris Stewart (R-UT)

David Young (R-IA)

Interior Subcommittee:

Chairman Ken Calvert (R-CA)

Mike Simpson (R-ID)

Tom Cole (R-OK)

David Joyce (R-OH)

Chris Stewart (R-UT)

Mark Amodei (R-NV)

Evan Jenkins (R-WV)

Labor, Health and Human Services Subcommittee:

Chairman Tom Cole (R-OK)

Mike Simpson (R-ID)

Steve Womack (R-AR)

Chuck Fleischmann (R-TN)

Andy Harris (R-MD)

Martha Roby (R-AL)

Charlie Dent (R-PA)

Scott Rigell (R-VA)

Legislative Branch Subcommittee:

Chairman Tom Graves (R-GA)

Mark Amodei (R-NV)

Scott Rigell (R-VA)

Evan Jenkins (R-WV)

Steven Palazzo (R-MS)

Military Construction and Veterans Affairs Subcommittee:

Chairman Charlie Dent (R-PA)

Jeff Fortenberry (R-NE)

Tom Rooney (R-FL)

Martha Roby (R-AL)

David Valadao (R-CA)

David Joyce (R-OH)

David Jolly (R-FL)

State and Foreign Operations Subcommittee:

Chairwoman Kay Granger (R-TX)

Mario Diaz-Balart (R-FL)

Charlie Dent (R-PA)

Ander Crenshaw (R-FL)

Tom Rooney (R-FL)

Jeff Fortenberry (R-NE)

Chris Stewart (R-UT)

Transportation, Housing and Urban Development Subcommittee:

Chairman Mario Diaz-Balart (R-FL)

David Joyce (R-OH)

John Culberson (R-TX)

Kevin Yoder (R-KS)

David Jolly (R-FL)

David Young (R-IA)

Evan Jenkins (R-WV)

Appropriations Members Assigned to the Budget Committee:

Tom Cole (R-OK)

Mario Diaz-Balart (R-FL)

Steve Womack (R-AR)

Political Updates

In a video announcement released this morning, Senate Minority Leader Harry Reid (D-NV) announced that he would not seek re-election in 2016. Reid said that his recent accident and eye injury in January gave him some “downtime” and “time to think,” which played a part in his decision. Sen. Chuck Schumer (D-NY) declared his bid to succeed Reid and received Reid’s endorsement as well as commitments from an overwhelming majority in the 46-member Senate Democratic caucus. As Minority Whip, Sen. Dick Durbin (D-IL) is next in line, but he instead also endorsed Schumer for the position. Reid was first elected to the Senate in 1986.

A link to Sen. Reid’s retirement announcement video:

http://www.reid.senate.gov/press_releases/thank-you

Sen. Dan Coats (R-IN) also announced this week that he would not run for reelection in 2016. Coats said that he wants to focus on his work in the Senate rather than spending the next two years campaigning for reelection. Coats served in the Senate from 1989 to1999 and then returned again in 2011.

Rep. Steve Russell (R-OK) was given a seat on the House Armed Services Committee filling Rep. Palazzo’s (R-MS) seat. Palazzo moved to the Appropriations Committee last week. Russell had a 21-year career in the US Army prior to running for office. He completed the US Army Ranger School and deployed to assignments in the Arctic, the desert, the Pacific, Europe, Kosovo, Kuwait, Afghanistan, and Iraq. Before retiring as a Lieutenant Colonel, Russell earned the Legion of Merit, Bronze Star with Valor Device, and Oak Leaf Cluster.

President Barack Obama named Shailagh Murray, a former Washington Post and Wall Street Journal reporter, to serve as his new senior adviser, and tapped Jason Goldman, a Silicon Valley veteran, to become the White House’s first-ever chief digital officer. Murray replaces Dan Pfeiffer as a member of the president’s core team of advisers, and Goldman will take over and expand Pfeiffer’s role overseeing digital outreach by heading up an amped-up Office of Digital Strategy.

President Obama also nominated Dr. Wanda Austin to be a member of the President’s Council of Advisors on Science and Technology. Austin is President and CEO of The Aerospace Corporation, a Federally Funded Research and Development Center.

Next Week

The House and Senate are in recess for the next two weeks and return the week of April 13.

March 20, 2015

The House passed HR 1029, the EPA Science Advisory Reform Act of 2015; HR 1030, the Secret Science Reform Act of 2015; and S J Res 8, a resolution to block a rule from the National Labor Relations Board that would speed up union elections. The Senate confirmed the nominations of Carlos Monje to be Assistant Secretary for Transportation Policy at the Department of Transportation and Manson Brown to be an Assistant Secretary at the Commerce Department. The Senate failed five times to invoke cloture on S 178, the Justice for Victims of Trafficking Act of 2015 by votes of 55 to 43, 55 to 43, 57 to 41, 56 to 42, and 56 to 42. Sixty votes were needed for the bill to advance. Senate Majority Leader Mitch McConnell (R-KY) said yesterday that he is planning to schedule more roll call votes on S 178 and won’t schedule a vote on Loretta Lynch for attorney general until work on this bill is done.

FY16 Budget Resolution

The House and Senate Budget Committees released their FY16 budget resolutions and marked them up in committee this week. Both budgets adhered to the spending caps set by the 2011 Budget Control Act (BCA) and included reconciliation instructions for repealing the Affordable Care Act. The Senate used the Overseas Contingency Operations (OCO) fund to placate defense hawks’ demands for increased defense spending as well as fiscal hawks who fought to keep the BCA caps in place. The OCO fund is not subject to the BCA spending caps. The House attempted to do a similar maneuver, but did not have the votes to pass the amendment in committee. The House will instead look to the Rules Committee to resolve the funding issue next week. Both chambers will consider their budget resolutions on their respective floors next week.

House FY16 Budget Resolution

The House Budget Committee passed its FY16 budget resolution on a straight party line vote this week, but punted on voting on a plan to increase defense spending. The House base budget plan keeps defense and nondefense spending at $523B and $493B, respectively (in line with BCA caps), but proposes $94B in OCO (or Global War on Terrorism) funding, $20B of which is included in a “Defense Readiness and Modernization Fund.” The $94B is well above the administration’s $58B FY16 OCO request, but before the extra $20B can be allocated, equal savings must be found elsewhere. Rep. Todd Rokita (R-IN) had offered an amendment to remove the language that fenced off the additional $20B to appease Republican defense hawks, but was opposed by fiscal conservatives. So the fate of the amendment to increase defense funding will now be decided by the House Rules Committee next week. The Rules Committee will decide whether or not the amendment’s costs ($20B) need to be offset and how it will be incorporated into the rule for floor consideration. The rule could include language that would automatically make the OCO amendment in order or adopted. As Democrats are not expected to vote in favor of the budget resolution, any agreement in the Rules Committee will need to have the support of 218 Republicans for passage on the House floor. More than 70 House Republicans led by House Armed Services Committee Member Michael Turner (R-OH) have vowed to vote against the budget resolution if it doesn’t boost defense spending. But it is unclear if fiscal hawks will drop their support for the resolution if defense spending is increased.

Senate FY16 Budget Resolution

The Senate Budget Committee also passed its FY16 budget resolution along a party line vote of 12 to 10 and in line with the 2011 BCA spending caps. Before final passage, the committee adopted an amendment offered by Sen. Lindsey Graham (R-SC) that increased OCO funding by $38B to $96B in FY16. But they rejected a two-year plan offered by Sen. Patty Murray (D-WA) to replace sequestration and raise the defense and nondefense spending caps.

Cybersecurity

The Senate Select Committee on Intelligence released the updated text of its Cybersecurity Information Sharing Act (CISA) that was marked up in committee last week. The committee chairman Richard Burr (R-NC) said that he hopes to have the bill on the Senate floor after the Easter recess.

A copy of the Senate CISA bill can be found at:

https://www.vantagepointstrat.com/?p=369

A Vantage Point Strategies’ summary of the Senate CISA bill can be found at:

https://www.vantagepointstrat.com/?p=370

The House Homeland Security Committee also released a draft information sharing bill this week. The bill provides a path for companies to share cyberthreat data with the Department of Homeland Security. The committee hopes to mark up the bill after they return from the Easter recess, the week of April 13.

A copy of the Draft National Cybersecurity Protection Advancement Act can be found at:

https://www.vantagepointstrat.com/?p=372

And the House Permanent Select Committee on Intelligence held a rare open hearing this week on cybersecurity. Committee Chairman Devin Nunes (R-CA) said that his committee will introduce their cybersecurity legislation “soon,” which may be as early as next week. During the hearing, private sector witnesses from IBM, TSYS, FireEye, and the Financial Services Roundtable testified about current cyberthreats, countermeasures and information sharing including liability protection and privacy.

FY16 National Defense Authorization Act

The House Armed Services Committee will begin marking up its FY16 National Defense Authorization Act (NDAA) in subcommittees the week of April 20 with a full committee markup the following week on April 29. The committee hopes to have the bill on the House floor starting on May 13.

On the Senate side, the new Senate Armed Services Committee Chairman John McCain (R-AZ) said that he is considering changing the way his committee marks up the NDAA to an open forum, but that he will follow the wishes of the majority of the committee members. In the past the markup was done behind closed doors.

Political Updates

Rep. Aaron Schock (R-IL) announced his resignation effective March 31 following several weeks of questioning about his spending of taxpayer and campaign funds. Schock was first elected in 2008 for the seat vacated by former Transportation Secretary Ray LaHood. Schock held seats on the House Administration, Budget, and Ways and Means committees.

House Appropriations Committee Chairman Hal Rogers (R-KY) announced this week that Rep. Steven Palazzo (R-MS) was approved by the House Republican Steering Committee to serve on the Appropriations Committee in the 114^th Congress. Palazzo fills the seat vacated by former Rep. Alan Nunnelee (R-MS), who passed away earlier this year.

House Democratic Whip Steny Hoyer (D-MD) announced this week that Rep. Joaquin Castro (D-TX), who has served as an Assistant Whip on the Democratic Whip team, has been promoted the position of Chief Deputy Whip for the 114th Congress. Castro joins the current 114th Congress Chief Deputy Whip team: Senior Chief Deputy Whip Rep. John Lewis (D-GA) and Chief Deputy Whips Rep. Jan Schakowsky (D-IL), Rep. Diana DeGette (D-CO), Rep. G. K. Butterfield (D-NC), Rep. Debbie Wasserman Schultz (D-FL), Rep. Peter Welch (D-VT), Rep Keith Ellison (D-MN), Rep. Terri Sewell (D-AL), and Rep. Kyrsten Sinema (D-AZ).

Former White House Chief Information Officer Steve VanRoekel left the U.S. Agency for International Development (USAID) on March 13 after only six months. VanRoekel left the White House in September to serve as USAID’s chief innovation officer, overseeing the application of technology to help treat and contain the Ebola outbreak in West Africa. VanRoekel was the Obama administration’s second CIO, following Vivek Kundra. VanRoekel said that he does not have another job lined up, and was leaving to spend more time with his family.

Under Secretary of Defense for Intelligence Dr. Michael Vickers notified President Obama and Secretary of Defense Ash Carter that he will be retiring effective April 30. Vickers assumed this position in March 2011 earning him the honor of being the longest serving under secretary in this position in the department’s history. Previously, he served as the department’s first and only assistant secretary of defense for special operations/low-intensity & interdependent capabilities. He also served in the U.S. Army as a Special Forces non-commissioned officer and Special Forces officer, and was a CIA operations officer.

The President nominated Douglas Kramer to be Deputy Administrator at the Small Business Administration. Kramer is General Counsel at the United States Agency for International Development, a position he has held since 2013. Prior to this, he served in the White House as Deputy Assistant to the President and Staff Secretary, Deputy Associate Counsel for Presidential Personnel, and Special Assistant to the President and Associate Counsel to the President. Prior to serving in the White House, he served as Counsel in the Antitrust Division at the Department of Justice, an Associate at the law firm Covington & Burling, and as a Judicial Clerk in the Chambers of the Hon. Walter L. Carpeneti of the Alaska Supreme Court.

David Shulkin was nominated by the President to be the Under Secretary for Health at the Department of Veterans Affairs. Shulkin is President of Morristown Medical Center. He has served as President of the Atlantic Accountable Care Organization and as a Vice President of Atlantic Health. Dr. Shulkin has also been the President and CEO of Beth Israel Medical Center in New York, Chief Medical Officer of Temple University Hospital, Chief Medical Officer of the Medical College of Pennsylvania Hospital, Chief Quality Officer of the Drexel University School of Medicine, Chairman and CEO of DoctorQuality, Inc., and Chief Medical Officer and Chief Quality Officer of the University of Pennsylvania Health System.

The President also nominated LaVerne Horton Council to be Assistant Secretary for Information and Technology at the Department of Veterans Affairs. Horton Council is the CEO of Council Advisory Services and a former Corporate VP and CIO at Johnson & Johnson. She has also worked at Dell, Ernst & Young, Mercer Management Consulting, Accenture, the Tennessee Valley Authority, and State Farm Insurance. The positions Horton Council has been nominated for has been filled on an interim basis for nearly two years by Stephen Warren who stepped in after Roger Baker departed for the private sector.

Juan Garcia was nominated by the President to be Assistant Secretary of Defense for Manpower and Reserve Affairs at the Department of Defense. Garcia is the Assistant Secretary of the Navy for Manpower and Reserve Affairs. In 2006, he was elected to the Texas House of Representatives and has served as an attorney at Hartline, Dacus, Barger, Dreyer & Kern. Garcia was a Naval Aviator in the U.S. Navy, and after leaving active duty, he commanded a unit of Flight Instructors in the U.S. Navy Reserve where he continues to serve as a Reservist today.

Stephen Welby was nominated by the President to be Assistant Secretary of Defense for Research and Engineering at the Department of Defense. Welby is the Deputy Assistant Secretary for Systems Engineering at DOD and in the past, he was Director of Systems Engineering. He has worked at the Defense Advanced Research Projects Agency and the U.S. Army Research Laboratory.

Next Week

Both chambers will consider their FY16 budget resolutions next week. Votes on amendments could start as early as Monday evening in the Senate. The House will also take up a measure to replace Medicare’s physician payment formula, otherwise known as the “doc fix” (HR 1470).

March 13, 2015

The House was in recess this week. The Senate was expected to take up S 625, the Iran Nuclear Agreement Review Act of 2015, but Senate Majority Leader Mitch McConnell (R-KY) tabled the measure. Senate Democrats threatened to filibuster it saying that they wouldn’t vote for a bill about congressional approval of a potential Iran nuclear deal until after the key March 24 negotiation date has passed. The Senate instead turned to S 178, the Justice for Victims of Trafficking Act of 2015. This too was set aside after Democrats learned that the measure included a provision expanding the reach of the Hyde Amendment barring federal funds from being used to pay for abortions. The Senate did approve the nominations of Christopher Hart to be Chairman of the National Transportation Safety Board (NTSB), Tho Dinh-Zarr to be a member of the NTSB, Daniel Henry Marti to be the White House’s Intellectual Property Enforcement Coordinator, Michelle Lee to be Under Secretary of Commerce for Intellectual Property and Director of the U.S. Patent and Trademark Office, and Jeffrey Hall and Dallas Tonsager to be members of the Farm Credit Administration Board.

Congressional Budget Office Score of President’s FY16 Budget Request

The Congressional Budget Office (CBO) released its updated 10-year baseline projection of spending, revenue, and deficits on Monday. According to CBO, the President’s FY16 budget request would shrink the deficit in FY16 to $380B, but deficits would grow from FY17-FY25 reaching $801B in FY25. The decrease in the deficit in FY16 would come from revenue increases including increased income tax receipts, comprehensive immigration reform, as well as spending reductions from lower Medicare and war spending. CBO also estimates that mandatory spending will be about 13% of GDP through FY21 and then rise to 14.1% by FY25. This is in contrast to the average of 9.3% of GDP over the past 50 years. Armed with CBO’s analysis, House Republicans continued their criticism of the President’s FY16 budget saying that the President wasn’t serious about solving the nation’s fiscal and economic problems.

In related news, the Treasury Department announced this week that the deficit has reached $386.5B so far in FY15, which is $10B more than at this time last year. Treasury is forecasting a $582.5B deficit for FY15 and $474.2B for FY16 compared to $483B in FY14.

White House TechHire Initiative

President Obama announced a new initiative this week aimed at training more people for well-paying jobs in the technology sector, including in cybersecurity, software development, and network administration. The initiative will empower Americans with the skills they need, through universities and community colleges but also nontraditional approaches like “coding bootcamps,” and online courses that can rapidly train workers. Key elements of the initiative include: Public/Private partnerships between communities and national employers, $100M in new federal investments for the Department of Labor H-1B grant program to support innovative approaches to providing lower skilled workers with training and employment opportunities, and commitments from private sector leaders to provide the tools and resources to scale continued innovation in technology training, with a focus on reaching underserved populations.

Debt Ceiling

Last February Congress passed the Temporary Debt Limit Extension Act, suspending the statutory debt limit through March 15, 2015. Beginning on Monday 3/16, the Treasury Department will take extraordinary measures to continue financing the government. Secretary Jack Lew sent a letter to Congressional leadership last Friday urging them to raise the debt limit as soon as possible. Lew also informed Congress that as of today “Treasury will suspend, until further notice, the issuance of State and Local Government Series (SLGS) securities. SLGS are special-purpose Treasury securities issued to states and municipalities to assist them in conforming to certain tax rules. When Treasury issues SLGS, they count against the debt limit.” CBO has estimated that the Treasury Department will exhaust its extraordinary measures by October or November. That could bring a debt ceiling showdown around the same time that the FY16 spending bills are due on Oct. 1.

Congress has voted three times since 2013 to suspend the debt limit. Senate Majority Leader Mitch McConnell (R-KY) has indicated that Senate Republicans may use a vote to raise the debt limit as an opportunity to pass other legislation. McConnell has also said that the debt limit will be handled over a period of months and vowed to avoid another debt limit crisis. The nation’s debt currently stands at $18.3T.

A copy of Secretary Lew’s letter to Congress can be found at:

http://www.treasury.gov/initiatives/Documents/Treasury%20Letter%20to%20Congress%20030615.pdf

FY16 Budget Resolution

The Senate Budget Committee is expected to unveil and markup its FY16 budget resolution next Wednesday and Thursday. The Republican resolution will balance the budget within 10 years and maintain the FY16 caps on defense and non-defense spending that were set in the 2011 Budget Control Act. Floor consideration may take place the week of March 23 before Congress adjourns for the Easter recess. Senate Budget Committee Ranking Member Bernie Sanders (I-VT) will not offer an alternative Democratic budget resolution, and will instead focus on promoting their fiscal priorities (ending sequestration, investing in job creation, and increasing the minimum wage) through amendments to the Republican budget during committee markup and floor consideration.

The idea of including a reserve fund in the budget resolution is being considered by Senate Budget Committee Republicans who are trying to balance the demands of both defense and fiscal hawks. Fiscal hawks support the lower level sequestration funding caps, while defense hawks have threatened to oppose any budget that limits defense spending. A reserve fund could allow limits on discretionary defense and non-defense spending to rise above sequestration levels as long as the higher spending was offset with spending cuts or revenue increases. Five (Ayotte, Wicker, Kaine, King, and Graham) of six senators who serve on both Senate Armed Services Committee (SASC) and Budget Committee are considering this new reserve fund. SASC Chairman John McCain (R-AZ) said this week that he is considering drafting an FY16 defense authorization bill that exceeds the sequestration caps.

On the House side, no date has been set yet for markup in the Budget Committee, but it is expected to take place next week. Ranking Democrat Chris Van Hollen (D-MD) said that he plans to introduce an alternative Democratic budget resolution.

Cybersecurity

The Senate Intelligence Committee approved their Cybersecurity Information Sharing Act (CISA) in a closed-door meeting yesterday by a vote of 14 to 1. Sen. Ron Wyden (D-OR) was the only member of the committee to oppose the measure citing concerns that it was a surveillance bill just by another name. The bill provides expanded legal liability to companies so that they can more easily share information with the government. Since the original draft was circulated a few weeks ago, some changes were made to the bill prior to markup to strengthen privacy protections. Senate Intelligence Committee Chairman Richard Burr (R-NC) hopes to bring the bill to the Senate floor in mid-April.

On the House side, both the Homeland Security and Intelligence Committees have been working on cybersecurity legislation and drafts could be out by the end of the month. The Homeland Security Committee’s bill will be limited by the committee’s jurisdiction and will likely focus on establishing a DHS information-sharing portal. The Intelligence Committee’s bill will be more in line with the Senate CISA bill. The House Judiciary Committee is providing the liability language for both bills. House Leadership is hoping to bring these cyber bills to the floor the third week of April, but it isn’t clear if they would be voted on individually or as amendments to each other.

Senate Homeland Security Agenda

In a speech before the US Chamber of Commerce this week, Senate Homeland Security and Governmental Affairs Committee Chairman Ron Johnson (R-WI) talked about his agenda for the committee for 2015. Johnson said he is focused on advancing bills that can get at least 60 votes, which includes a permit-streamlining bill cosponsored by Sens. Portman (R-OH) and McCaskill (D-MO). He is also planning on holding several hearings on border security and other immigration issues. And since cybersecurity is a priority, he said that he is open to having his committee consider some sort of compromise bill, as he believes the Senate Intelligence Committee’s CISA bill may be too ambitious. The compromise would fall somewhere between what the Administration proposed earlier this year and the CISA bill. Johnson said another priority is to untangle the web of congressional oversight for DHS, consolidating the number of Senate Committees with jurisdiction over the agency. Finally, Johnson encouraged US Chamber of Commerce members to bring up their proposals for individual regulatory changes they would like to see enacted. He cautioned that smaller, piecemeal bills would be more practical than any big regulatory overhaul bill.

Political Updates

Rep. Donna Edwards (D-MD) announced that she would run for the Senate seat being vacated by Sen. Mikulski (D-MD) when she retires at the end of 2016. Rep. Chris Van Hollen (D-MD) announced his intention to run for the seat last week.

Terry Halvorsen, who became the Defense Department’s acting chief information officer (CIO) almost a year ago, has assumed duties as its permanent CIO as of March 8.

Next Week

The House may take up HR 1029, the EPA Science Advisory Reform Act of 2015 and HR 1030, the Secret Science Reform Act of 2015 after returning from a recess week. The Senate may consider the nomination of Loretta Lynch for attorney general. Lynch has been waiting several weeks for a floor vote facing opposition from Senate Republicans who disagree with Lynch on the President’s immigration actions. The Senate will also vote on the nominations of Carlos Monje to be Assistant Secretary for Transportation Policy at the Department of Transportation and Manson Brown to be an Assistant Secretary at the Commerce Department. And the Senate will hold a cloture vote on Tuesday morning on S 178, the anti-human trafficking bill.

February 28, 2015

The House and Senate passed a one-week stopgap spending bill for the Department of Homeland Security (DHS), which the President then signed averting a shutdown of the agency. The House passed HR 529, a bill that would expand the use of 529 educational savings plans by allowing tax-free distributions for students to buy computers and software. The House postponed a vote on HR 5, the Student Success Act, a bill to overhaul No Child Left Behind. The Senate passed a full-year, clean FY15 Department of Homeland Security spending bill and sent the measure to the House. President Obama issued his third veto of his presidency this week vetoing the Keystone XL Pipeline Act that was passed by Congress earlier this month. The bill authorized TransCanada to construct, connect, operate, and maintain the pipeline and cross-border facilities specified in an application they filed with the Department of State in 2012. Senate Majority Leader Mitch McConnell (R-KY) said that the Senate would hold another vote to override the veto by March 3.

FY15 DHS Appropriations

Funding for the Department of Homeland Security (DHS) was set to expire at midnight on February 27, but a shutdown was averted by passage of a one-week extension of the FY15 DHS continuing resolution. The Senate passed the measure by voice vote after the House failed to pass a three-week stopgap bill. The Senate then adjourned leaving the House with the options of either accepting the one-week bill or forcing DHS to shutdown. House leaders decided to pass the one-week bill under suspension of the rules. The House vote was 357 to 60 (55 Republicans and 5 Democrats voted against passing the bill). DHS is now funded through midnight March 6.

Senate Majority Leader Mitch McConnell (R-KY) also announced a motion to agree to the House’s request for a conference committee on a full year spending bill. The Senate will hold a cloture vote on the motion on Monday evening. Senate Minority Leader Harry Reid (D-NV) said that Senate Democrats would not vote for cloture as they will only accept the clean, full-year spending bill they already passed.

Senate leaders finally reached an agreement this week on how to proceed on the FY15 Department of Homeland Security (DHS) Appropriations bill after failing four times to invoke cloture on the bill. Instead, the Senate opted to pass a clean (no immigration riders), full-year DHS spending bill on Friday by a vote of 68 to 31. They then turned to S. 534, a bill that would block funding for President Obama’s November 2014 immigration executive orders. This bill is more narrow than the riders included in the House-passed FY15 DHS appropriations bill as it does not include provisions on the President’s 2012 actions affecting dreamers, 2011 memos related to prosecutorial discretion, and future executive actions. It does include provisions that would require DHS to treat any migrant convicted of domestic violence or child exploitation as subject to the department’s highest civil immigration enforcement, and expresses the sense of Congress that the executive branch should incentivize hiring citizens and legal immigrants and stop prioritizing the interests of illegal immigrants ahead of others. Cloture was not invoked on S. 534 by a vote of 57 to 42. Four Senate Democrats voted in favor of cloture on S. 534 – Sen. Joe Donnelly (D-IN), Sen. Heidi Heitkamp (D-ND), Sen. Joe Manchin (D-WV), and Sen. Clair McCaskill (D-MO). The other Senate Democrats blocked the measure because they do not want to debate it until the House passes a clean funding bill for DHS through the end of the fiscal year.

On the House side, after receiving the Senate passed rider-free, full-year DHS appropriations bill the House voted on a motion to go to conference with the Senate. That motion passed by a vote of 228 to 191 with 12 Democrats voting in favor of the motion. A similar motion to go to conference in the Senate will require 60 votes. The House then voted on a three-week stopgap DHS spending bill that would fund the department through March 19. That bill failed by a vote of 203 to 224.

FY16 National Defense Budget Caps

House Armed Services Committee (HASC) Chairman Mac Thornberry (R-CA) along with 30 (of 35 total) Republican members of the committee sent a “views and estimates” letter to House Budget Committee Chairman Tom Price (R-GA), a required part of the annual budget process. The letter recommends a restoration to the pre-sequestration Budget Control Act (BCA) caps of $577.0B for national defense and $50.9B for the Overseas Contingency Operations (OCO) account for FY2016. In comparison, the BCA post-sequestration level for national defense for FY16 is $523.067B. If $577.0B is not feasible, the HASC committee members recommended, at a minimum, last year’s House-passed Budget Resolution level of $566.0B for national defense for FY16 with restoration to pre-sequestration level funding in FY17. The President’s FY16 budget requests $561.0 billion in discretionary budget authority for national defense, of which $534.3 billion is for the Department of Defense (DOD), $19.1 billion is for the Department of Energy’s defense activities, and $7.6 billion is for other defense- related activities. The President’s budget also includes $9.0 billion in mandatory budget authority, and a separate request of $50.9B for the OCO account.

On the Senate side, Senate Armed Services Committee (SASC) Chairman John McCain (R-AZ) has vowed to personally oppose a budget resolution that doesn’t increase military spending above what’s allowed under the BCA. McCain says that he has been talking with Senate Budget Committee Chairman Mike Enzi (R-WY) and working with SASC members to present a unified argument to the Budget Committee.

In the House Appropriations Committee, Defense Appropriations Subcommittee Chairman Rodney Frelinghuysen (R-NJ) has said that he expects that they will have to adhere to BCA sequestration caps and has asked the military services to draw up plans for abiding by the caps.

A copy of the HASC Republican letter can be found at:

http://armedservices.house.gov/index.cfm/files/serve?File_id=A9D64CAD-D6F2-4904-85B7-AB3C9E875EEF

Cyber Threat Intelligence Integration Center (CTIIC)

On Wednesday, the President issued an Executive Order directing the Director of National Intelligence (DNI) to establish the Cyber Threat Intelligence Integration Center (CTIIC). The CTIIC will be a national intelligence center focused on “connecting the dots” regarding malicious foreign cyber threats to the nation and cyber incidents affecting U.S. national interests, and on providing all-source analysis of threats to U.S. policymakers. The CTIIC will also assist relevant departments and agencies in their efforts to identify, investigate, and mitigate those threats.

Once established, the CTIIC will join the National Cybersecurity and Communications Integration Center (NCCIC), the National Cyber Investigative Joint Task Force (NCIJTF), and U.S. Cyber Command as integral parts of the U.S. Government’s capability to protect us from cyber threats. It will support the NCCIC in its network defense and incident response mission; the NCIJTF in its mission to coordinate, integrate, and share information related to domestic cyber threat investigations; and U.S. Cyber Command in its mission to defend the nation from significant attacks in cyberspace.

No decisions have been made regarding the CTIIC’s specific location, but the current plan is to locate the CTIIC in the Washington, DC metro area in an existing Intelligence Community facility. The DNI is in the process of developing the CTIIC’s organizational structure. They expect that it will be small, consisting of approximately 50 government personnel drawn from relevant departments and agencies.

A copy of the executive order can be found at:

http://www.whitehouse.gov/the-press-office/2015/02/25/presidential-memorandum-establishment-cyber-threat-intelligence-integrat

Political Updates

The Senate Judiciary Committee voted 12 to 8 on Thursday to approve Loretta Lynch as the next U.S. Attorney General. All Democrats on the committee voted for Lynch along with three Republicans – Orrin Hatch (R-UT), Jeff Flake (R-AZ), and Lindsey Graham (R-SC). The full Senate is expected to take up her nomination next week.

Keith Hall, the chief economist for the International Trade Commission and a former Bureau of Labor Statistics commissioner, has been named the new director of the Congressional Budget Office (CBO). He also served as the Chief Economist for the White House Council for Economic Advisors from 2005 to 2008. Hall will replace Doug Elmendorf at CBO starting April 1. His term will expire on January 3, 2019.

Acting NIST Director and acting Undersecretary of Commerce for Standards and Technology Willie May has been nominated by the president to drop the acting and become full undersecretary. May has been acting director since last June. May was also nominated last summer but not confirmed by the 113th Congress.

Michael Bahar was appointed as the new minority staff director on the House Permanent Select Committee on Intelligence. Bahar graduated from Harvard Law School in 2002 and was commissioned into the US Navy Judge Advocate General’s Corps. In 2010 he joined the White House as Deputy Legal Advisor to the White House’s National Security Staff. He was deployed to Afghanistan in 2012 where he advised a Special Operations Task Force. He left active duty in 2012 to take the position of General Counsel on the HPSCI.

At the Department of the Treasury, President Obama nominated Amias Gerety for Assistant Secretary for Financial Institutions and Anne Elizabeth Wall for Deputy Under Secretary for Legislative Affairs.

February 20, 2015

The House and Senate were in recess this week. Ash Carter was sworn in by Vice President Biden on Tuesday as President Obama’s fourth Secretary of Defense.

Cybersecurity

Draft Cybersecurity Information Sharing Act

A draft cybersecurity bill from Senate Intelligence Committee Chairman Richard Burr (R-NC) was released this week and may be introduced next week. The Cybersecurity Information Sharing Act (CISA) of 2015 is a lot like the previous CISA bill including provisions on information sharing; authorizations for preventing, detecting, analyzing, and mitigating cybersecurity threats; sharing of cyber threat indicators and countermeasures with the federal government; and liability protections. The bill also includes tougher requirements on companies to remove personally identifiable information.

A copy of the bill can be found at:

https://www.vantagepointstrat.com/?attachment_id=356

RFI for Information Sharing and Analysis Organizations

Ari Schwartz, Senior Director for Cybersecurity on the U.S. National Security Council Staff at the White House participated in a cybersecurity event this week at the Atlantic Council. At the event, Schwartz said that the administration is preparing a request for information (RFI) as its first step in setting ground rules for the planned network of Information Sharing and Analysis Organizations (ISAOs). The President proposed ISAOs in his latest cybersecurity executive order as a mechanism for sharing information within the private sector, and potentially with the federal government (although they won’t be required to). The administration will follow up with a request for proposals (RFP) seeking bids to set up the standards-setting organizations, which will, in turn, develop best practices and benchmarks for the ISAOs. The administration did not comment on the timing of the RFI.

Administration’s Cyber Agenda

Lisa Monaco, US Homeland Security Advisor to President Obama, said this week that the administration aims to develop new cyber policies along four lines: 1) boosting basic defenses for critical infrastructure by using tools such as the federal framework of cybersecurity standards; 2) strengthening our ability to disrupt, respond to, and effectively manage U.S. responses to cyber threats; 3) enhancing international cooperation to hold cyber criminals accountable; and 4) making cyberspace intrinsically more secure by replacing passwords with more secure technologies and enhancing consumer protections online.

Authorization for Use of Military Force

The House Armed Services Committee will hold a full committee hearing next Thursday on the President’s proposed Authorization for the Use of Military Force Against the Islamic State of Iraq and the Levant. This hearing will focus on input from witnesses outside the administration. Witnesses include General Jack Keane, USA (Ret.); Robert Chesney, Associate Dean for Academic Affairs, University of Texas; and Benjamin Wittes, Brookings Institution.

Political Updates

President Obama selected Joseph Clancy to be the next Director of the Secret Service. Clancy has been serving in an acting capacity since October 1, 2014 when former director Julia Pearson resigned following several major security breaches. Clancy is a retired agent who began his career with the Secret Service in the late 1980s and formerly led the Presidential Protective Division. President Obama chose not to follow the advice of an independent panel and Congress who recommended that he bring in an outsider to run the beleaguered agency. The independent panel said in their final report, “Only a director from outside the Service, removed from organizational traditions and personal relationships, will be able to do the honest top-to-bottom reassessment this will require.” The Secret Service is a federal law enforcement agency that is part of the Department of Homeland Security. The Director is appointed serving at the approbation of the President of the United States, and is not subject to Senate confirmation.

The White House named Dr. DJ Patil as its first ever Chief Data Scientist and Deputy Chief Technology Officer for Data Policy. Patil will work in the Office of Science and Technology Policy reporting to US Chief Technology Officer Megan Smith. He will focus on developing policies and practices for new applications of big data across all areas of government, with a particular focus on healthcare. Prior to joining the White House, Patil worked for the Department of Defense, LinkedIn, eBay, PayPal, Skype, RelatelQ, and venture capital firm Greylock Partners.

President Obama picked Jen Psaki, previously a State Department spokesperson, to take over as White House communications director. Psaki will succeed Jen Palmieri who is leaving to join Hillary Clinton’s expected presidential campaign.

Democratic Missouri Secretary of State Jason Kander announced this week that he will challenge Sen. Roy Blunt (R-MO) in 2016. Blunt is the chairman of the Senate Rules Committee, chairman of the Senate Labor HHS Appropriations Subcommittee, and a member of the Senate Commerce and Intelligence Committees. Kander was first elected statewide in 2012 and was a Captain in the US Army who served in Afghanistan.

Next Week

The Senate returns from recess on Monday and the House on Tuesday. The House will take up HR 529, a bill amending the Internal Revenue Code of 1986 to improve 529 plans and HR 5, the Student Success Act. Funding for the Department of Homeland Security runs out on Friday, February 27, so both the House and Senate will have to consider a funding bill for the agency to avoid a shutdown.

February 13, 2015

The House passed S1, the Keystone XL Pipeline Approval Act; HR 644, a bill to permanently extend and expand the charitable deduction for contributions of food inventory; and HR 636, a bill to permanently extend increased expensing limitations (“America’s Small Business Tax Relief Act”). S1 now goes to the President who is expected to veto the measure. The White House has also issued veto threats on the other two bills the House passed this week. The Senate cleared the nominations of Ash Carter to be Secretary of Defense and Michael Botticelli to be Director of the National Drug Control Policy, and passed S295, the Amy and Vicky Child Pornography Victim Restitution Improvement Act of 2015.

Authorization for Use of Military Force Against the Islamic State of Iraq and the Levant (ISIL)

The White House submitted its Authorization for Use of Military Force (AUMF) against ISIL to Congress this week. The President’s AUMF authorizes the use of the United States Armed Forces against ISIL subject to limitations including terminating three years after the date of enactment unless reauthorized and not authorizing “enduring offensive ground combat operations.” The AUMF also calls for the repeal of the AUMF Against Iraq Resolution of 2002.

The AUMF can be found at:

https://www.vantagepointstrat.com/?p=349

FY15 DHS Appropriations

House Appropriations Committee Ranking Member Nita Lowey (D-NY) and Homeland Security Appropriations Subcommittee Ranking Member Lucy Roybal-Allard (D-CA) introduced a “clean” FY15 DHS appropriations bill (HR 861) this week that would fund the agency through the end of FY15. The bill does not include any of the immigration policy riders that were included in the bill passed by the House earlier this year and currently being considered by the Senate. Lowey and Roybal-Allard were unsuccessful in trying to bring up their bill during floor consideration of S1, the Keystone XL Pipeline Act using a procedure to defeat the previous question on the rule. House Republicans unanimously blocked the attempt by a vote of 242 to 183. While unsuccessful in the maneuver, Lowey and Roybal-Allard were seeking to put House lawmakers on the record on a “clean” Homeland Security spending bill for the first time.

A copy of the House Democrats’ bill can be found at:

https://www.congress.gov/114/bills/hr861/BILLS-114hr861ih.pdf

Meanwhile, House Speaker John Boehner (R-OH) and Senate Majority Leader Mitch McConnell (R-KY) remain in a standoff over the issue. Democrats in the Senate say they will not lift their filibuster unless McConnell moves a clean bill, so McConnell has called on Boehner and the House GOP to make the next move. But throughout the week, Boehner has maintained that the Senate must find a way to take up the House-passed bill.

Cybersecurity

Private Sector Cybersecurity Information Sharing Executive Order

The White House is hosting a cybersecurity summit at Stanford University today. At the event the President is signing an Executive Order (EO) that provides a framework to encourage and promote sharing of cybersecurity threat information within the private and between the private sector and government. Specifically, the EO:

• Encourages the development of information sharing and analysis organizations (ISAOs).
• Directs DHS to create a non-profit organization to develop a common set of voluntary standards for ISAOs.
• Streamlines the mechanism for DHS’ National Cybersecurity and Communications Integration Center (NCCIC) to enter into information sharing agreements with ISAOs.
• Allows DHS to approve classified information sharing arrangements and ensures that information sharing entities can appropriately access classified cybersecurity threat information.
• Requires ISAOs to abide by a common set of voluntary standards that include privacy protections.

A copy of the President’s Cybersecurity Information Sharing Executive Order can be found at:

http://www.whitehouse.gov/the-press-office/2015/02/13/executive-order-promoting-private-sector-cybersecurity-information-shari

Cyber Threat Intelligence Integration Center

Lisa Monaco, Assistant to the President for Homeland Security and Counterterrorism announced during a speech at the Wilson Center this week that the Administration is creating a new agency – the Cyber Threat Intelligence Integration Center. The new center will be tasked with coordinating digital/cyber intelligence from federal agencies such as the Central Intelligence Agency and the National Security Agency and distributing it more broadly with federal agencies so that they’re aware of cyber threats in as close to real time as possible. The CTIIC will be part of the Office of the Director of National Intelligence (ODNI), which is already responsible for coordinating intelligence from various agencies. Initial staff of about 50 people will be culled from across departments and agencies. The agency will be funded by an annual $35 million budget.

Link to Monaco’s speech:

http://www.wilsoncenter.org/event/cyber-threats-and-vulnerabilities-securing-americas-most-important-assets

Cybersecurity Legislation

Sen. Tom Carper (D-DE), Ranking Democrat on the Senate Homeland Security and Governmental Affairs Committee this week introduced S456, The Cyber Threat Sharing Act of 2015. The bill incorporates President Obama’s legislative proposal and would codify mechanisms for enabling cybersecurity threat indicator sharing between private and government entities, as well as among private entities. It was referred to the Senate Homeland Security and Governmental Affairs Committee. Senate Intelligence Committee Chairman Richard Burr (R-NC) indicated that his panel would seek to revive its information-sharing bill soon saying that it would be the committee’s bill not the President’s proposed bill.

GAO High Risk Report

The Government Accountability Office (GAO) released its biennial High Risk List this week. The list is an exhaustive document highlighting government programs and activities that need careful oversight against waste, fraud, and abuse. Of the 30 areas on the 2013 list, 18 have at least partially met all of the criteria for removal, and of those, 11 met at least one of the criteria for removal and partially met all others. Sufficient progress was made to narrow the scope of two high-risk issues—Protecting Public Health through Enhanced Oversight of Medical Products and DOD Contract Management. On the other hand, GAO added two areas to the list this year: 1) Veterans Affairs Health Care and 2) IT Acquisitions and Operations. And they expanded two areas due to evolving high-risk issues: 1) Enforcement of Tax Laws and 2) Ensuring the Security of Federal Information Systems and Cyber Critical Infrastructure and Protecting the Privacy of Personally Identifiable Information.

A copy of the GAO report can be found at:

http://www.gao.gov/assets/670/668415.pdf

Political Updates

The Senate confirmed Ash Carter to replace Chuck Hagel as secretary of Defense by a vote of 93 to 5. The five Republicans voting against Carter were Sens. Mark Kirk (R-IL), Roy Blunt (R-MS), John Boozman (R-AR), Mike Crapo (R-ID), and Jim Risch (R-ID). Carter will be sworn in next Tuesday. He is expected to tap Eric Fanning to be his Chief of Staff and Maj. Gen. Ron Lewis to be his Senior Military Assistant. Fanning, a former journalist, is currently the Air Force Undersecretary. Lewis took over the Army’s public affairs office last June. He is a career Air Cavalry officer, who served tours in Iraq and Afghanistan.

USAID Administrator Rajiv Shah gave his last speech this week at AEI as he leaves his post on February 18.

Former Senate liaison Amy Pope will become the White House’s No. 2 adviser on homeland security, replacing outgoing deputy assistant Rand Beers. Pope has served over the last year as special assistant to the president and senior director for transborder security at the National Security Council. Pope worked previously as counsel to Senate Minority Leader Harry Reid (D-NV), and as a liaison between Senate leadership and the Senate Judiciary Committee. She has also been deputy chief of staff and counselor to the assistant attorney general for the Criminal Division at the Justice Department, as well as senior counsel to the assistant attorney general.

President Obama announced his intent to appoint Dr. Kathryn Brinsfield as DHS Assistant Secretary for Health Affairs and Chief Medical Officer. Brinsfield is the Associate Chief Medical Officer and Director for Workforce Health and Medical Support at DHS, a position she has held since 2009. Since 2013, she has also served as the Acting Assistant Secretary in the Office of Health Affairs and the Acting Chief Medical Officer at DHS.

The President also nominated Seth Carpenter to be an Assistant Secretary of the Treasury, Ann Elizabeth Dunkin to be an Assistant Administrator of the Environmental Protection Agency, Brodi Fontenot to be Chief Financial Officer at the Department of the Treasury, and Jane Toshiko Nishida to be an Assistant Administrator of the Environmental Protection Agency.

And finally, Philadelphia has been chosen as the site of the 2016 Democratic National Convention.

Next Week

The House and Senate are in recess next week and return the following week (Senate – February 23, House – February 24).

February 6, 2015

The House passed HR 596, a bill repealing the Patient Protection and Affordable Care Act and health care-related provisions in the Health Care and Education Reconciliation Act of 2010; HR 50, the Unfunded Mandates Information and Transparency Act of 2015; HR 527, the Small Business Regulatory Flexibility Improvements Act of 2015; HR 623, the Social Media Working Group Act; HR 615, the Department of Homeland Security Interoperable Communications Act; and HR 361, the Medical Preparedness Allowable Use Act. The Senate passed HR 203, the Clay Hunt SAV Act, which now goes to the President for his signature. The Senate tried and failed three times to invoke cloture on HR 240, the FY15 Department of Homeland Security Appropriations Act.

President’s FY16 Budget Request

President Obama submitted his $3.999 trillion FY16 budget to Congress on Monday. This budget will be his last budget request where he will be in office for the full budget cycle. The budget reflects Democratic priorities on spending and taxes, and does away with the sequester replacing both defense and non-defense cuts by trimming mandatory and discretionary programs by $600 billion over 10 years, raising $638 billion in new tax revenues, and calling for an immigration reform plan to save $158 billion over 10 years. The post-sequester caps for FY16 are $493.491B for non-defense discretionary and $523.091B for defense. The President’s budget request would raise non-defense accounts by $37B to $530B and defense accounts by $38B to $561B. As expected, Congressional Republicans pushed back on the President’s proposal to increase taxes and said that they are eager to write their own 10-year balanced budget proposals over the next two months.

The White House Office of Management and Budget FY16 budget documentation can be found at:

http://www.whitehouse.gov/omb/budget/Overview

The federal agencies’ detailed budget documents can be found at:

Agriculture

http://www.usda.gov/wps/portal/usda/usdahome?navid=BUDGET

Commerce

http://www.commerce.gov/news/fact-sheets/2015/02/02/fact-sheet-fy-2016-us-department-commerce-budget

Defense

http://comptroller.defense.gov/budgetmaterials/budget2016.aspx

Education

http://www2.ed.gov/about/overview/budget/budget16/index.html

Energy

http://energy.gov/cfo/downloads/fy-2016-budget-justification

Environmental Protection Agency

http://www2.epa.gov/planandbudget/fy2016

Health and Human Services

http://www.hhs.gov/budget/index.html#justifications

Homeland Security

http://www.dhs.gov/dhs-budget

Housing and Urban Development

http://portal.hud.gov/hudportal/HUD?src=/program_offices/cfo/reports/fy16_CJ

Interior

http://www.doi.gov/budget/appropriations/2016/highlights/index.cfm

Justice

http://www.justice.gov/about/fy16-budget-and-performance

Labor

http://www.dol.gov/dol/budget/

NASA

http://www.nasa.gov/news/budget/index.html#.VNUdYynGDzI

National Science Foundation

http://www.nsf.gov/about/budget/fy2016/index.jsp

Small Business Administration

https://www.sba.gov/content/fiscal-year-2016-congressional-budget-justificationannual-performance-report

State

http://www.state.gov/documents/organization/236395.pdf

Transportation

http://www.dot.gov/mission/budget/fy2016-budget-estimates

Treasury

http://www.treasury.gov/about/budget-performance/Pages/cj-index.aspx

US Army Corps of Engineers

http://www.usace.army.mil/Missions/CivilWorks/Budget.aspx

Veteran Affairs

http://www.va.gov/budget/products.asp

FY15 DHS Appropriations

The Senate tried three times this week to invoke cloture on the $37.9 billion FY15 Department of Homeland Security appropriations bill, but was not successful in garnering the 60 aye votes needed to proceed to consideration of the bill. The Senate is expected to hold a fourth cloture vote next week. The votes this week were 51 to 48, 53 to 47, and 52 to 47 with Democrats and Independents united in opposition. Each time, Sen. Dean Heller (R-NV) was the only Republican to vote against cloture joining Democrats who opposed the measure because it contains provisions that would roll back President Obama’s immigration executive actions. Congress has only 10 workdays to complete action on the measure before the current continuing resolution (CR) funding the department runs out on Feb. 27. The House and Senate will not be in session the week of 2/16. It is unclear if Senate Republicans will look to the House to send over a new bill or put together its own proposal. In the meantime, a short-term funding bill (CR) may be needed to keep the agency running past Feb. 27.

2015 National Security Strategy

President Obama submitted to Congress today his 2015 National Security Strategy and National Security Advisor Susan Rice discussed the new strategy at a launch event at the Brookings Institution this afternoon.

While the Goldwater-Nichols Defense Department Reorganization Act of 1986 requires the president to submit a national security strategy to Congress each year, this is only the second national security strategy from President Obama. His last strategy was issued in 2010. The report is frequently submitted late or not at all. President George W. Bush only submitted two (2002 and 2006) during his two terms in office, President George H.W. Bush missed submitting it two years, and President Clinton had the best track record in recent years only missing submitting it in 1999.

National security strategies outline the president’s foreign policy vision and priorities and include not just defense goals, but also diplomacy, economics, and expressions of value. In this case, President Obama’s 2015 strategy includes combating climate change, reducing the threat of weapons of mass destruction, maintaining an active US presence in the international community, advancing an international trade agenda, and preventing, detecting, and rapidly responding to biological threats among other priorities and principles.

A copy of the 2015 National Security Strategy can be found at:

http://www.whitehouse.gov/sites/default/files/docs/2015_national_security_strategy.pdf

House Armed Services Committee Vice Chairs and Retreat

House Armed Services Committee (HASC) Chairman Mac Thornberry (R-TX) announced vice chairs for the committee’s six subcommittees. In announcing the vice chairs, Thornberry said that he wants to get more committee members, especially junior members, more deeply involved in national security issues. The vice chairs are as follows:

Seapower and Projection Forces – Duncan Hunter (R-CA)

Readiness – Elise Stefanik (R-NY)

Strategic Forces – Doug Lamborn (R-CO)

Emerging Threats and Capabilities – Trent Franks (R-AZ)

Military Personnel – Tom MacArthur (R-NJ)

Tactical Air and Land Forces – Paul Cook (R-CA)

Chairman Thornberry is also hosting a one-day retreat at the US Naval Academy on Tuesday, Feb. 10 for all (Democrat and Republican) HASC members. During the retreat, committee members will meet with top military officials and discuss trends in threats to US national security.

Political Updates

Rep. Alan Nunnelee (R-MS) died today from complications from brain cancer. Nunnelee was first elected to Congress in 2010, defeating one-term Democrat Rep. Travis Childers. Nunnelee had a seat on the House Appropriations Committee and was a member of the Republican Study Committee. He was 56.

There are three finalists for the position of Director of the Congressional Budget Office (CBO). The current Director, Doug Elmendorf, will step down when his replacement is named by House and Senate Republican leaders. The position does not require Senate confirmation. The three finalists are economists Katherine Baicker, Keith Hall, and Harold Furchtgott-Roth. Baicker is an economist and health care policy expert serving on CBO’s panel of health advisors. Hall is the Chief Economist at the US International Trade Commission. And Furchtgott-Roth has his own consulting firm, Furchtgott-Roth Economic Enterprises.

President Obama announced his intent to appoint Tony Scott as US Chief Information Officer (CIO) and Administrator of the Office of Electronic Government at the Office of Management and Budget. Scott currently leads the global information technology group at VMware Inc., a position he has held since 2013. Prior to joining VMware Inc., he served as CIO at Microsoft and The Walt Disney Company.

Dan Pfeiffer, who has been with President Obama since his first presidential campaign, said that he is leaving the White House in early March. Pfeiffer, Senior Advisor to the President, is exploring options in the private sector. Communications Director Jennifer Palmieri is also leaving the White House to join the Hillary Clinton campaign. Palmieri’s departure date is still being finalized.

Next Week

The House will take up S 1, the Keystone XL Pipeline Approval Act; HR 644, a bill to permanently extend and expand the charitable deduction for contributions of food inventory; and HR 636, a bill to permanently extend increased expensing limitations (“America’s Small Business Tax Relief Act”). The Senate will consider the nomination of Michael Botticelli to be Director of the National Drug Control Policy. The Senate may also consider the nomination of Ash Carter for Secretary of Defense if the Senate Armed Services Committee reports his confirmation to the full body early in the week. The Senate could also take up S 405, the Bipartisan Sportsman’s Act or HR 596, a bill to repeal the Patient Protection and Affordable Care Act and health care-related provisions in the Health Care and Education Reconciliation Act of 2010.

January 30, 2015

The House passed several measures aimed at preventing and prosecuting human trafficking as well as HR 351, the LNG Permitting Certainty and Transparency Act. The Senate passed S 1, the Keystone XL Pipeline Act by a 62 to 36 vote after voting on more than 40 amendments. The House passed a similar measure (HR 3) on January 9. President Obama has vowed to veto the bill, and any conference measure is unlikely to get the necessary 2/3 votes in both the House and Senate to override a veto.

House Republican February Agenda

House Majority Leader Kevin McCarthy (R-CA) sent a memo to House Republicans yesterday outlining their agenda for the month of February. The House will first take up a bill (HR 596) repealing Obamacare. While the House has passed repeal measures in the past, this attempt will include instructions for committees to craft a Republican alternative to Obamacare. The agenda also calls for making permanent tax breaks for charitable giving, preventing the Administration from “coercing states to adopt Common Core standards,” and a bill opposing any plan to tax 529 college savings accounts. And, if the Senate passes a FY15 DHS appropriations bill that is different from the one passed by the House in January, the House will conference with the Senate in February. The memo does not mention HR 399, the Secure Our Borders First Act or HR 36, the Pain-Capable Unborn Child Protection Act. Both bills were scheduled for House floor consideration in January, but were pulled when it was clear that the GOP did not have the votes for passing them.

FY15 DHS Appropriations

The Senate is poised to consider the FY15 Department of Homeland Security appropriations bill next week, but Senate Majority Leader Mitch McConnell (R-KY) will be challenged in finding the 60 votes needed for moving the measure forward. Senate Democrats, hoping to force Republicans to strip out riders blocking President Obama’s immigration actions, have said that they will not vote for cloture on the bill.

Earlier this week, Senate Democrats signed and sent a letter to McConnell urging for passage of a clean FY15 DHS Appropriations bill. Sens. Shaheen (D-NH), ranking member of the Homeland Security Appropriations subcommittee, and Sen. Mikulski (D-MD), ranking member of the full committee, also introduced a clean bill to fund DHS through the end of FY15. S 272 is based on the House and Senate December 2014 DHS compromise.

Another obstacle to the House-passed DHS funding bill is that the Congressional Budget Office (CBO) released its score of the bill this week. CBO estimates that the immigration-related provisions in the House bill would add a net of $7.5 billion to the federal deficit over the next decade.

The current CR funding DHS expires on February 27.

A copy of the Senate Democrats’ letter can be found at:

http://www.shaheen.senate.gov/imo/media/doc/01.27.15%20DHS%20Funding%20Letter.pdf

And a copy of the Senate Democrats’ bill, S 272, can be found at:

http://www.shaheen.senate.gov/imo/media/doc/01.28.15%20DHS%20Bill.pdf

CBO Annual Budget and Economic Outlook

The Congressional Budget Office released its annual Budget and Economic Outlook this week. The outlook contains baseline projections based on current federal law for forecasting spending, tax revenues, the deficit and other economic factors associated with legislation and the federal budget. This latest outlook projects that the federal deficit will fall to $468B in FY2015 and $467B in FY2016 but rise to over $1T in FY2025. The reasons for the long-term deficit growth can be attributed to slowing economic growth and accelerating baby boomer retirements. The CBO’s last update was released in August. CBO Director Doug Elmendorf will testify before the House and Senate Budget Committees next week.

A copy of the CBO’s outlook can be found at:

http://www.cbo.gov/publication/49892

House Appropriations Deadlines

The House Appropriations subcommittee chairmen released their guidance letters to members of Congress this week. The letters included procedures for receiving members’ programmatic and language submissions for consideration in the FY16 appropriations process as well as the deadlines for each subcommittee.

Subcommittee	Deadline
Agriculture	March 23
Commerce Justice Science	March 25
Defense	March 25
Energy & Water	March 18
Financial Services	March 26
Homeland Security	March 26
Interior	March 23
Labor HHS	March 26
Legislative Branch	March 18
Military Construction/Veterans Affairs	March 18
State Foreign Operations	March 25
Transportation HUD	March 23

The subcommittee letters can be found at:

http://appropriations.house.gov/legislation/memberinstructions.htm

Cloud Computing

Cloud computing vendors seeking to sell cloud services to federal agencies currently must get security accreditation through GSA’s FedRAMP. To date, FedRAMP has offered accreditations up to the “moderate-impact” level, but demand for higher levels has grown as cloud computing has become an accepted norm. The General Services Administration (GSA) released draft security control standards for cloud systems supporting these higher levels or “high impact” uses. “High impact” uses are any systems necessary to support agency continuity of operations and systems that agencies have identified under their critical infrastructure plans.

The draft high baseline documents lay out a process for authorizing cloud service providers to host data that, if leaked or otherwise compromised, would have a significant impact, including personal harm, loss of life or financial ruin. Most of the information to be covered under the high baseline will be law enforcement data and patient health records, but will not cover classified information or data relevant to national security.

The draft security control standards will go through two rounds of public comment before becoming final. This draft will be open for comment for 45 days (ending 3/13/15) before a second draft is issued (summer 2015). The final version is expected before the end of 2015.

A copy of the draft can be found at:

http://cloud.cio.gov/document/fedramp-high-baseline

Committee Rosters

House Armed Services Committee

HASC Chairman Mac Thornberry (R-CA) and Ranking Member Adam Smith (D-WA) announced the final majority and minority members who will lead and serve on subcommittees for the 114th Congress.

EMERGING THREATS AND CAPABILITIES

Majority Members

Mr. Wilson, Chairman

Mr. Kline

Mr. Shuster

Mr. Hunter

Mr. Nugent

Mr. Zinke

Mr. Franks

Mr. Lamborn

Mr. Brooks

Mr. Byrne

Ms. Stefanik

Minority Members

Mr. Langevin, Ranking Member

Mr. Cooper

Mr. Garamendi

Mr. Castro

Mr. Veasey

Mr. Norcross

Mr. Ashford

Mr. Aguilar

MILITARY PERSONNEL

Majority Members

Dr. Heck, Chairman

Mr. Jones

Mr. Kline

Mr. Coffman

Mr. MacArthur

Ms. Stefanik

Mr. Cook

Mr. Knight

Minority Members

Mrs. Davis, Ranking Member

Mr. Brady

Ms. Tsongas

Ms. Speier

Mr. Walz

Mr. O’Rourke

OVERSIGHT AND INVESTIGATIONS

Majority Members

Mrs. Hartzler, Chairwoman

Mr. Miller

Mr. Conaway

Dr. Heck

Mr. Scott

Ms. McSally

Minority Members

Ms. Speier, Ranking Member

Mr. Cooper

Mr. Johnson

Ms. Graham

READINESS

Majority Members

Mr. Wittman, Chairman

Mr. Bishop

Mrs. Hartzler

Mr. Scott

Ms. Stefanik

Mr. LoBiondo

Mr. Rogers

Mr. Gibson

Mr. Palazzo

Mr. Nugent

Dr. Wenstrup

Mr. Graves

Minority Members

Ms. Bordallo, Ranking Member

Mrs. Davis

Mr. Courtney

Mr. Castro

Ms. Duckworth

Mr. Peters

Ms. Gabbard

Mr. O’Rourke

Mr. Gallego

SEAPOWER AND PROJECTION FORCES

Majority Members

Mr. Forbes, Chairman

Mr. Conaway

Mr. Palazzo

Mr. Byrne

Mr. Wittman

Mr. Hunter

Mrs. Hartzler

Mr. Cook

Mr. Bridenstine

Mrs. Walorski

Mr. Zinke

Mr. Knight

Minority Members

Mr. Courtney, Ranking Member

Mr. Langevin

Mr. Larsen

Ms. Bordallo

Mr. Johnson

Mr. Peters

Ms. Gabbard

Ms. Graham

Mr. Moulton

STRATEGIC FORCES

Majority Members

Mr. Rogers, Chairman

Mr. Franks

Mr. Lamborn

Mr. Coffman

Mr. Brooks

Mr. Bridenstine

Mr. Forbes

Mr. Bishop

Mr. Turner

Dr. Fleming

Minority Members

Mr. Cooper, Ranking Member

Ms. Sanchez

Mr. Larsen

Mr. Garamendi

Mr. Takai

Mr. Ashford

Mr. Aguilar

TACTICAL AIR AND LAND FORCES

Majority Members

Mr. Turner, Chairman

Mr. LoBiondo

Dr. Fleming

Mr. Gibson

Mr. Cook

Dr. Wenstrup

Mrs. Walorski

Mr. Graves

Ms. McSally

Mr. Knight

Mr. MacArthur

Mr. Jones

Mr. Wilson

Minority Members

Ms. Sanchez, Ranking Member

Ms. Tsongas

Mr. Johnson

Ms. Duckworth

Mr. Veasey

Mr. Walz

Mr. Norcross

Mr. Gallego

Mr. Takai

Ms. Graham

Mr. Moulton

House Intelligence Committee

The Permanent Select Committee on Intelligence adopted a new subcommittee structure and named its subcommittee chairmen, ranking members, and members this week. Chairman Devin Nunes (R-CA) said that the new subcommittee structure is “designed to enhance oversight of the relevant agencies and departments.” The committee will comprise the following four subcommittees:

CIA Subcommittee

LoBiondo (Chairman), Conaway, King, Westmoreland, Rooney, Pompeo

Swalwell (Ranking Member), Gutierrez, Himes, Carson

Jurisdiction: Central Intelligence Agency programs and Central Intelligence Agency Retirement Fund

Department of Defense Intelligence and Overhead Architecture Subcommittee


Heck (Chairman), Miller, Ros-Lehtinen, Turner, Wenstrup, Stewart

Sewell (Ranking Member), Gutierrez, Swalwell, Murphy

Jurisdiction: National Reconnaissance Program (NRP), the National Geospatial-Intelligence Program (NGP), the General Defense Intelligence Program (Defense Intelligence Agency), and Department of Defense activities that are funded through the Military Intelligence Program (MIP)

Emerging Threats Subcommittee


Rooney (Chairman), LoBiondo, Heck, Turner, Wenstrup, Stewart

Quigley (Ranking Member), Sewell, Carson, Speier

Jurisdiction: Office of the Director of National Intelligence, including the National Counterterrorism Center, the National Counterproliferation Center and the National Counterintelligence and Security Center; the national security components of the Federal Bureau of Investigation; Intelligence Community-wide integration and information sharing programs; and the intelligence elements of the Drug Enforcement Administration (DEA) and the Departments of State (DOS), Homeland Security (DHS), Energy (DOE), and Treasury (DOT).

NSA and Cybersecurity Subcommittee

Westmoreland (Chairman), Miller, Conaway, King, Pompeo, Ros-Lehtinen

Himes (Ranking Member), Speier, Quigley, Murphy

Jurisdiction: National Security Agency programs, including cybersecurity policy and information sharing; and the Department of Defense Information Systems Security Program.

Senate Appropriations Subcommittees

Senate Appropriations Committee Chairman Thad Cochran (R-MS) and Vice Chairwoman Barbara Mikulski (D-MD) announced members for the 12 subcommittees that make up the Senate Committee on Appropriations.

Agriculture, Rural Development, Food and Drug Administration, and Related Agencies

Majority

Jerry Moran (R-Kan.), chairman

Roy Blunt (R-Mo.)

Thad Cochran (R-Miss.)

Mitch McConnell (R-Ky.)

Susan Collins (R-Maine)

John Hoeven (R-N.D.)

Steve Daines (R-Mont.)

Minority

Jeff Merkley (D-Ore.), ranking member

Dianne Feinstein (D-Calif.)

John Tester (D-Mont.)

Tom Udall (D-N.M.)

Patrick Leahy (D-Vt.)

Tammy Baldwin (D-Wisc.)

Commerce, Justice, Science, and Related Agencies

Majority

Richard Shelby (R-Ala.), chairman

Lamar Alexander (R-Tenn.)

Lisa Murkowski (R-Alaska)

Susan Collins (R-Maine)

Lindsey Graham (R-S.C.)

Mark Kirk (R-Ill.)

John Boozman (R-Ark.)

Shelley Moore Capito (R-W.Va.)

James Lankford (R-Okla.)

Minority

Barbara Mikulski (D-Md.), ranking member

Patrick Leahy (D-Vt.)

Dianne Feinstein (D-Calif.)

Jack Reed (D-R.I.)

Jeanne Shaheen (D-N.H.)

Chris Coons (D-Del.)

Tammy Baldwin (D-Wisc.)

Chris Murphy (D-Conn.)

Defense

Majority

Thad Cochran (R-Miss.), chairman

Mitch McConnell (R-Ky.)

Richard Shelby (R-Ala.)

Lamar Alexander (R-Tenn.)

Susan Collins (R-Maine)

Lisa Murkowski (R-Alaska)

Lindsey Graham (R-S.C.)

Roy Blunt (R-Mo.)

Steve Daines (R-Mont.)

Jerry Moran (R-Kan.)

Minority

Richard Durbin (D-Ill.), vice chairman

Patrick Leahy (D-Vt.)

Dianne Feinstein (D-Calif.)

Barbara Mikulski (D-Md.)

Patty Murray (D-Wash.)

Jack Reed (D-R.I.)

Jon Tester (D-Mont.)

Tom Udall (D-N.M.)

Brian Schatz (D-Hawaii)

Energy and Water Development

Majority

Lamar Alexander (R-Tenn.), chairman

Thad Cochran (R-Miss.)

Mitch McConnell (R-Ky.)

Richard Shelby (R-Ala.)

Susan Collins (R-Maine)

Lisa Murkowski (R-Alaska)

Lindsey Graham (R-S.C.)

John Hoeven (R-N.D.)

James Lankford (R-Okla.)

Minority

Dianne Feinstein (D-Calif.), ranking member

Patty Murray (D-Wash.)

Jon Tester (D-Mont.)

Richard Durbin (D-Ill.)

Tom Udall (D-N.M.)

Jeanne Shaheen (D-N.H.)

Jeff Merkley (D-Ore.)

Chris Coons (D-Del.)

Financial Services and General Government

Majority

John Boozman (R-Ark.), chairman

Jerry Moran (R-Kan.)

James Lankford (R-Okla.)

Minority

Chris Coons (D-Del.), ranking member

Richard Durbin (D-Ill.)

Department of Homeland Security

Majority

John Hoeven (R-N.D.), chairman

Thad Cochran (R-Miss.)

Richard Shelby (R-Ala.)

Lisa Murkowski (R-Alaska)

Lindsey Graham (R-S.C.)

Bill Cassidy (R-La.)

Minority

Jeanne Shaheen (D-N.H.), ranking member

Patrick Leahy (D-Vt.)

Patty Murray (D-Wash.)

Jon Tester (D-Mont.)

Tammy Baldwin (D-Wisc.)

Interior, Environment, and Related Agencies

Majority

Lisa Murkowski (R-Alaska), chairman

Lamar Alexander (R-Tenn.)

Thad Cochran (R-Miss.)

Roy Blunt (R-Mo.)

John Hoeven (R-N.D.)

Mitch McConnell (R-Ky.)

Steve Daines (R-Mont.)

Bill Cassidy (R-La.)

Minority

Tom Udall (D-N.M.), ranking member

Dianne Feinstein (D-Calif.)

Patrick Leahy (D-Vt.)

Jack Reed (D-R.I.)

Jon Tester (D-Mont.)

Jeff Merkley (D-Ore.)

Labor, Health and Human Services, and Education, and Related Agencies

Majority

Roy Blunt (R-Mo.), chairman

Jerry Moran (R-Kan.)

Richard Shelby (R-Ala.)

Thad Cochran (R-Miss.)

Lamar Alexander (R-Tenn.)

Lindsey Graham (R-S.C.)

Mark Kirk (R-Ill.)

Bill Cassidy (R-La.)

Shelley Moore Capito (R-W.Va.)

James Lankford (R-Okla.)

Minority

Patty Murray (D-Wash.), ranking member

Richard Durbin (D-Ill.)

Jack Reed (D-R.I.)

Barbara Mikulski (D-Md.)

Jeanne Shaheen (D-N.H.)

Jeff Merkley (D-Ore.)

Brian Schatz (D-Hawaii)

Tammy Baldwin (D-Wisc.)

Legislative Branch

Majority

Shelley Moore Capito (R-W.Va.), chairman

Mark Kirk (R-Ill.)

Jerry Moran (R-Kan.)

Minority

Brian Schatz (D-Hawaii), ranking member

Chris Murphy (D-Conn.)

Military Construction and Veterans Affairs, and Related Agencies

Majority

Mark Kirk (R-Ill.), chairman

Mitch McConnell (R-Ky.)

Lisa Murkowski (R-Alaska)

John Hoeven (R-N.D.)

Susan Collins (R-Maine)

John Boozman (R-Ark.)

Shelley Moore Capito (R-W.Va.)

Bill Cassidy (R-La.)

Minority

Jon Tester (D-Mont.), ranking member

Patty Murray (D-Wash.)

Jack Reed (D-R.I.)

Tom Udall (D-N.M.)

Brian Schatz (D-Hawaii)

Tammy Baldwin (D-Wisc.)

Chris Murphy (D-Conn.)

State, Foreign Operations, and Related Programs

Majority

Lindsey Graham (R-S.C.), chairman

Mitch McConnell (R-Ky.)

Mark Kirk (R-Ill.)

Roy Blunt (R-Mo.)

John Boozman (R-Ark.)

Jerry Moran (R-Kan.)

James Lankford (R-Okla.)

Steve Daines (R-Mont.)

Minority

Patrick Leahy (R-Vt.), ranking member

Barbara Mikulski (D-Md.)

Richard Durbin (D-Ill.)

Jeanne Shaheen (D-N.H.)

Chris Coons (D-Del.)

Jeff Merkley (D-Ore.)

Chris Murphy (D-Conn.)

Transportation, Housing and Urban Development, and Related Agencies

Majority

Susan Collins (R-Maine), chairman

Richard Shelby (R-Ala.)

Lamar Alexander (R-Tenn.)

Mark Kirk (R-Ill.)

Roy Blunt (R-Mo.)

John Boozman (R-Ark.)

Shelley Moore Capito (R-W.Va.)

Bill Cassidy (R-La.)

Steve Daines (R-Mont.)

Minority

Jack Reed (D-R.I.), ranking member

Barbara Mikulski (D-Md.)

Patty Murray (D-Wash.)

Richard Durbin (D-Ill.)

Dianne Feinstein (D-Calif.)

Chris Coons (D-Del.)

Brian Schatz (D-Hawaii)

Chris Murphy (D-Conn.)

Appropriations Committee Chairman Cochran and Vice Chairwoman Mikulski are also ex-officio members of each subcommittee of which they are not regular members.

Senate Homeland Security and Governmental Affairs

Senate Homeland Security and Governmental Affairs Committee Chairman Ron Johnson (R-WI) and Ranking Member Tom Carper (D-DE) announced subcommittee members for its three subcommittees for the 114th Congress. Johnson and Carper are ex-officio members of every subcommittee.

Permanent Subcommittee on Investigations (PSI)

Majority Members

Rob Portman (R-OH), Chairman

John McCain (R-AZ)

Rand Paul (R-KY)

James Lankford (R-OK)

Kelly Ayotte (R-NH)

Ben Sasse (R-NE)

Minority Members

Claire McCaskill (D-MO), Ranking Member

Jon Tester (D-MT)

Tammy Baldwin (D-WI)

Heidi Heitkamp (D-ND)

Subcommittee on Federal Spending Oversight and Emergency Management (FSO)

Majority Members

Rand Paul (R-KY), Chairman

James Lankford (R-OK)

Michael B. Enzi (R-WY)

Kelly Ayotte (R-NH)

Joni Ernst (R-IA)

Ben Sasse (R-NE)

Minority Members

Tammy Baldwin (D-WI), Ranking Member

Claire McCaskill (D-MO)

Cory A. Booker (D-NJ)

Gary C. Peters (D-MI)

Subcommittee on Regulatory Affairs and Federal Management (RAFM)

Majority Members

James Lankford (R-OK), Chairman

John McCain (R-AZ)

Rob Portman (R-OH)

Michael B. Enzi (R-WY)

Joni Ernst (R-IA)

Ben Sasse (R-NE)

Minority Members

Heidi Heitkamp (D-ND), Ranking Member

Jon Tester (D-MT)

Cory A. Booker (D-NJ)

Gary C. Peters (D-MI)

Political Updates

House Conservatives formed a new caucus focused on “limited, constitutional government in Congress.” The House Freedom Caucus has nine members to start and it isn’t clear how it will distinguish itself from the Republican Study Committee who has over 170 members. Original members of the group include Reps. Scott Garrett (R-NJ), Jim Jordan (R-OH), John Fleming (R-LA), Matt Salmon (R-AZ), Justin Amash (R-MI), Raul Labrador (R-ID), Mick Mulvaney (R-SC), Ron DeSantis (R-FL), and Mark Meadows (R-NC).

NSA Director and Commander of the US Cyber Command Michael Rogers appointed Jonathan Freed as the agency’s new Associate Director for Strategic Communications. Freed is a longtime public relations professional and former journalist. He most recently served as a media relations and public affairs executive at the Federal Reserve Bank of New York.

The President nominated Stuart Delery to be Associate Attorney General at the Department of Justice and Albert Meiburg to be Deputy Administrator of the Environmental Protection Agency.

Next Week

The House will take up HR 596, a bill repealing the Patient Protection and Affordable Care Act and health care-related provisions in the Health Care and Education Reconciliation Act of 2010; HR 50, the Unfunded Mandates Information and Transparency Act of 2015; and HR 527, the Small Business Regulatory Flexibility Improvements Act of 2015. The Senate will take up HR 203, the Clay Hunt SAV Act and HR 240, the FY15 DHS Appropriations Act. And the President releases his FY16 budget request on Monday at 11:30 am.

January 23, 2015

The House passed HR 161, the Natural Gas Pipeline Permitting Reform Act, a bill that requires the Federal Energy Regulatory Commission (FERC) to approve or deny natural gas pipeline projects within 12 months after receiving a complete application. The House also passed HR 7, a bill making the Hyde amendment permanent. The Hyde amendment prohibits taxpayer-funded abortions. The House took up HR 7 after facing opposition from their own party and putting aside debate on a bill banning abortions after 20 weeks (HR 36, the Pain-Capable Unborn Child Protection Act). House Republicans wanted to pass some form of abortion legislation to coincide with March for Life Day. The Senate resumed consideration of S 1, the Keystone XL Pipeline Act and voted on several amendments, but not final passage. One accepted amendment offered by Sen. Sheldon Whitehouse (D-RI) expressed the sense of the Senate that climate change is real and not a hoax. And President Obama delivered his annual State of the Union address on Tuesday evening.

Border Security

The House Homeland Security Committee met this week and marked up HR 399, the Secure Our Borders First Act. The bill mandates operational control of the Northern and Southern borders within five years, and imposes harsh penalties on political appointees at the Department of Homeland Security if they fail to meet those requirements. The bill also calls for new fencing and infrastructure, requires deployment of specific technological capabilities at various sectors on the Northern and Southern borders, allows for the use of Department of Defense (DoD) excess wartime equipment, authorizes the use of DoD aviation assets to assist the Border Patrol, allows Border Patrol to access federal lands on the border, doubles the authorization for Operation Stonegarden, and requires the Secretary of Homeland Security to implement a biometric exit at all of our nation’s air, land, and sea ports of entry within five years.

The bill was introduced last Friday and passed out of committee this Wednesday by a vote of 18 to 12. Democrats on the committee accused GOP leaders of drafting the proposal without any minority representation and used a number of procedural motions that slowed the markup process. HR 399 is expected to be considered on the House floor next week. House Republicans have not said how this bill fits into their broader immigration reform strategy. A companion bill was introduced in the Senate this week by Sens. John Cornyn (R-TX), Ron Johnson (R-WI), and Jeff Flake (R-AZ). Johnson is Chairman of the Senate Homeland Security and Governmental Affairs Committee.

A copy of HR 399 can be found at:

http://homeland.house.gov/sites/homeland.house.gov/files/documents/pdf/HR-399-ANS_xml.pdf

And a copy of the Senate bill can be found at:

http://www.ronjohnson.senate.gov/public/_cache/files/ea4d2b75-55e2-41bb-8020-88ce20a0ff00/johnson-border-security-bill.pdf

House Appropriations Committee

House Appropriations Committee Ranking Member Nita Lowey (D-NY) announced the ranking members and democratic membership of the committee’s 12 subcommittees. Under Committee Rules, Lowey, as the Ranking Minority Member of the Full Committee, is authorized to sit as a member of all Subcommittees. The subcommittee assignments are as follows:

Agriculture:

Rep. Sam Farr (D-CA), Ranking Member

Rep. Rosa DeLauro (D-CT)

Rep. Sanford Bishop (D-GA)

Rep. Chellie Pingree (D-ME)

Commerce, Justice, Science:

Rep. Chaka Fattah (D-PA), Ranking Member

Rep. Mike Honda (D-CA)

Rep. José Serrano (D-NY)

Rep. Derek Kilmer (D-WA)

Defense:

Rep. Peter J. Visclosky (D-IN), Ranking Member

Rep. Betty McCollum (D-MN)

Rep. Steve Israel (D-NY)

Rep. Tim Ryan (D-OH)

Rep. C.A. Dutch Ruppersberger (D-MD)

Rep. Marcy Kaptur (D-OH)

Energy & Water Development:

Rep. Marcy Kaptur (D-OH), Ranking Member

Rep. Peter J. Visclosky (D-IN)

Rep. Mike Honda (D-CA)

Rep. Lucille Roybal-Allard (D-CA)

Financial Services & General Government:

Rep. José Serrano (D-NY), Ranking Member

Rep. Mike Quigley (D-IL)

Rep. Chaka Fattah (D-PA)

Rep. Sanford Bishop (D-GA)

Homeland Security:

Rep. Lucille Roybal-Allard (D-CA), Ranking Member

Rep. David Price (D-NC)

Rep. Henry Cuellar (D-TX)

Rep. Marcy Kaptur (D-OH)

Interior & Environment:

Rep. Betty McCollum (D-MN), Ranking Member

Rep. Chellie Pingree (D-ME)

Rep. Derek Kilmer (D-WA)

Rep. Steve Israel (D-NY)

Labor, HHS, Education:

Rep. Rosa DeLauro (D-CT), Ranking Member

Rep. Lucille Roybal-Allard (D-CA)

Rep. Barbara Lee (D-CA)

Rep. Chaka Fattah (D-PA)

Legislative Branch:

Rep. Debbie Wasserman Schultz (D-FL), Ranking Member

Rep. Sam Farr (D-CA)

Rep. Betty McCollum (D-MN)

Military Construction, Veterans Affairs:

Rep. Sanford Bishop, (D-GA), Ranking Member

Rep. Sam Farr (D-CA)

Rep. David Price (D-NC)

Rep. Barbara Lee (D-CA)

State and Foreign Operations:

Rep. Nita Lowey, Ranking Member

Rep. Barbara Lee (D-CA)

Rep. C.A. Dutch Ruppersberger (D-MD)

Rep. Debbie Wasserman Schultz (D-FL)

Rep. José Serrano (D-NY)

Transportation, Housing and Urban Development:

Rep. David Price (D-NC), Ranking Member

Rep. Mike Quigley (D-IL)

Rep. Tim Ryan (D-OH)

Rep. Henry Cuellar (D-TX)

Political Updates

Brian Deese will take over for Tony Podesta when he leaves the administration in February. Deese is currently the Deputy OMB Director. Deese’s portfolio will concentrate on the president’s energy policy and climate change initiatives. And Alex Platkin, White House Deputy Research Director, will become Director with the departure of Ben Holzer. Kristen Bartoloni will become the Deputy Research Director.

The Senate Homeland Security and Governmental Affairs Committee approved the nomination of Russell Deyo to be Undersecretary for Management at the Department of Homeland Security and Earl Gay to be Deputy Director of the Office of Personnel Management.

Ashton Carter will appear before the Senate Armed Services Committee about his nomination for Secretary of Defense on Feb. 4.

President Obama announced his intention to nominate Stan Meiburg as deputy administrator of the EPA. Meiburg is currently serving in that post in an acting capacity. Previously, he served as Deputy Regional Administrator for EPA Regions 4 and 6 and has held several other positions within EPA where he started his career in 1977.

Next Week

The House will consider HR 351, the LNG Permitting Certainty and Transparency Act and HR 399, the Secure Our Borders First Act. The Senate will resume consideration of S 1, the Keystone XL Pipeline Act.