September 25, 2015

The House passed the Responsibly And Professionally Invigorating Development Act of 2015 (RAPID Act), which would modify the environmental review process for federally-funded projects. The Senate could not get the 60 votes necessary for cloture on HR 36, the Pain-Capable Unborn Child Protection Act (vote 54 to 42); HR 2685, the FY16 Department of Defense Appropriations Act (vote 54 to 42); and HJ Res 61, a continuing resolution that included language to defund Planned Parenthood (vote 47 to 52). The Senate passed by unanimous consent S1109, the Truth in Settlements Act; HR 2051, the Agriculture Reauthorizations Act of 2015; a resolution congratulating Captain Kristen Griest and First Lieutenant Shaye Haver on their graduation from Ranger School; S 1632, a bill requiring a regional strategy to address the threat posed by Boko Haram; S 986, the Albuquerque Indian Land Transfer Act; and S 1170, the Breast Cancer Research Stamp Reauthorization Act. The Senate also confirmed Kathryn Matthew to be Director of the Institute of Museum and Library Services at the National Foundation on the Arts and Humanities.

House Speaker Boehner Announces Resignation

House Speaker John Boehner (R-OH) announced today that he is retiring from Congress effective October 30. Boehner had intended to announce on his birthday (November 17) that he was resigning at the end of the year, but said that it became clear to him that this “prolonged leadership turmoil would do irreparable harm to the institution.” He also stated that he wanted to retire at the end of 2014, but that Rep. Eric Cantor’s primary defeat persuaded him to stay one more year. House Majority Leader Kevin McCarthy (R-CA) is the most likely candidate for the position. While Boehner said that McCarthy would “make a wonderful speaker,” McCarthy has not yet made his intentions known.

Twenty-five Republicans voted against Boehner for Speaker back in January. Several of them are members of the House Freedom Caucus, which is led by Rep. Jim Jordan (R-OH). Jordan said that he would not seek the position. The other candidates for speaker back in January were Reps. Daniel Webster (R-FL) (12 votes), Louie Gohmert (R-TX) (3 votes), and Ted Yoho (R-FL) (2 votes).

FY16 Appropriations/Continuing Resolution (CR)

There are just five more days in fiscal year 2015, and only three legislative days remaining where both the House and Senate are in session before the end of the fiscal year.

The Senate Appropriations Committee introduced a continuing resolution (CR) this week that would fund the federal government through December 11 at an annual rate that conforms to the topline discretionary spending limit established by the Budget Control Act for FY16 ($1.017T). The CR provides Overseas Contingency Operations funding at a rate of $74.758B and includes $700M in emergency funding for wildland fire suppression. The CR also includes extensions of certain expiring authorities, including the Internet Tax Freedom Act, E-Verify, and the Federal Aviation Administration (6 months). And most notably, the CR included a provision prohibiting for one year any funding for Planned Parenthood and redirected the $235M in mandatory savings to increases funding for community health centers.

Senate Majority Leader Mitch McConnell (R-KY) brought up the CR for a cloture vote on Thursday and it failed by a vote of 47 to 52. The strong vote against cloture was intended to send a message to the House Freedom Caucus which has been insisting on including the Planned Parenthood language in any spending bill. Republican senators voting against the CR included Kelly Ayotte (R-NH), Susan Collins (R-ME), Tom Cotton (R-AR), Dean Heller (R-NV), Mark Kirk (R-IL), Lisa Murkowski (R-AK), Rand Paul (R-KY), and Ben Sasse (R-NE).

McConnell then began the process for the Senate to pass a “clean” CR that does not include the Planned Parenthood language. The cloture vote on the clean CR will occur on Monday at 5:30 pm. However, Sen. Ted Cruz (R-TX) has vowed to use all procedural tools to stop any CR that includes funding for Planned Parenthood.

Senate Continuing Resolution:

http://www.appropriations.senate.gov/sites/default/files/092215-FY16-CR%20Bill.pdf

One-Pager:

http://www.appropriations.senate.gov/sites/default/files/092215-FY16-CR%20One-Pager.pdf

Section-by-Section Analysis:

http://www.appropriations.senate.gov/sites/default/files/092215-FY16-CR%20Section-By-Section.pdf

On the House side, House Speaker Boehner’s decision to resign may have decreased the odds of a government shutdown. The House is expected to vote on the clean Senate-passed CR next week.

2016 Presidential Election Debate Schedule

The Commission on Presidential Debates announced the sites and dates for the 2016 general election debates this week. There will be three presidential and one vice presidential debates during the 2016 general election. The dates and sites are:

First presidential debate:

Monday, September 26, 2016

Wright State University, Dayton, OH

Vice presidential debate:

Tuesday, October 4, 2016

Longwood University, Farmville, VA

Second presidential debate:

Sunday, October 9, 2016

Washington University in St. Louis, St. Louis, MO

Third presidential debate:

Wednesday, October 19, 2016

University of Nevada, Las Vegas, Las Vegas, NV

Hofstra University in Hempstead, NY will serve as the backup site.

Political Updates

Newly elected Rep. Darin LaHood (R-IL) was appointed to the House Natural Resources and Science, Space, and Technology Committees. Rep. Dan Newhouse (R-WA) resigned from the House Science, Space, and Technology Committee.

Outgoing Chairman of the Joint Chiefs of Staff Army Gen. Martin Dempsey officially retired this week after more than 41 years of service. Marine Gen. Joseph Dunford Jr. took over as the 19th Chairman of the Joint Chiefs of Staff. Marine Corps Gen. Robert Neller assumed command of the Marine Corps from Gen. Dunford.

President Obama nominated Eric Fanning to be Secretary of the Army, Ricardo Aguilera to be Assistant Secretary of the Air Force for Financial Management, Janine Davidson to be Under Secretary of the Navy, Lisa Disbrow to be Under Secretary of the Air Force, Shoshana Lew to be Chief Financial Officer at the Department of Transportation, Jennifer O’Connor to be General Counsel at the Department of Defense, and Ambassador Thomas Shannon to be Under Secretary for Political Affairs at the Department of State.

Jodi Daniel, who has served as Director of the Office of Policy in the Office of the National Coordinator for Health Information Technology (ONC) at Department of Health and Human Services (HHS), is leaving her post on October 9 to work for a private law firm. Daniel helped found the office more than a decade ago.

The Federal Communications Commission has appointed Brian Scarpelli, Director of Government Affairs at the Telecommunications Industry Association, as co-chair of the Communications Security, Reliability and Interoperability Council’s Security by Design working group.

Pete Tseronis, Chief Technology Officer for the Department of Energy, is leaving his post at the end of October to join the private sector.

Dr. James Billington announced that he will retire as the 13^th Library of Congress on September 30.

Next Week

The Senate will take up a “clean” continuing resolution funding the federal government through December 11. The House will also consider funding legislation, and may also take up HR 3495, the Women’s Public Health and Safety Act and HR 702, a bill to adapt to changing crude oil market conditions. The House will also take up under suspension of the rules HR 1624, a bill that would amend the 2010 health care law to keep employers with 51 to 100 workers from having to comply with more stringent insurance coverage requirements.

September 18, 2015 

The House passed HR 758, the Lawsuit Abuse Reduction Act; HR 3504, the Born-Alive Abortion Survivors Protection Act; and HR 3134, the Defund Planned Parenthood Act of 2015. The Senate rejected three cloture votes on the Iran Nuclear Agreement (HJ Res 61) including one on an amendment that would have prohibited the President from lifting sanctions against Iran. The Senate adopted by unanimous consent S 1090, the Emergency Information Improvement Act of 2015; S 1580, the Competitive Science Act of 2015; S 2036, a bill suspending the current compensation packages for the CEOs of Fannie Mae and Freddie Mac; and HR 719, the TSA Office of Inspection Accountability Act of 2015.

FY16 Appropriations/Continuing Resolution (CR)

There are just five legislative days remaining where both the House and Senate are in session before the end of the fiscal year. Senate Majority Leader Mitch McConnell (R-KY) said this week that he has begun negotiations with the House on a short-term continuing resolution (CR) that would likely fund the government through Friday, December 11. If the House is unable to take the lead on passing legislation funding the government, the Senate may first vote on a spending bill defunding Planned Parenthood. When the Senate is unable to move that bill without the support of Democrats, the Senate would then take up a clean CR, pass it, and send it to the House.

Clean CR

House Democrats have called for a “clean” CR, however Senate Minority Leader Harry Reid (D-NV) said that he might request attaching a reauthorization of a 9/11 first responders health care bill to the CR. And the Office of Management and Budget (OMB) requested several anomalies back in August that includes, among other things, $450M in emergency funding to fight wildfires in the West.

Link to OMB List of Special Funding Requests:

https://www.vantagepointstrat.com/?p=492

Link to OMB Authorization Issues

https://www.vantagepointstrat.com/?p=493

Defunding Planned Parenthood

Conservatives in the House are still demanding language defunding Planned Parenthood be included in must-pass spending legislation. House Speaker John Boehner (R-OH) was considering two options for dealing with this issue: 1) the budget reconciliation process or 2) a one-year continuing resolution with Planned Parenthood defunding language. Both options were met with mixed reactions within his party. Members’ concerns about a one-year CR focused on the effects of a sequester on the CR resulting in $40B in cuts to defense. And defunding Planned Parenthood in a CR would be difficult since a Senate rule enforced by a point of order prohibits non-germane amendments to appropriations bills, including changes to mandatory spending.

As for the reconciliation process, reconciliation bills would pass both the House and the Senate but likely would be vetoed by the President. And House Energy and Commerce Committee Chairman Fred Upton (R-MI) has expressed some doubts about whether or not the Planned Parenthood language can be included in the budget reconciliation process. Upton’s doubts are important because the Energy and Commerce Committee is one of the three committees tasked with writing the reconciliation legislation. The committee has jurisdiction over the Medicaid program, which is where the $450M in annual federal funding comes from for Planned Parenthood.

Longer-Term Budget Deal

As for a longer-term deal, McConnell predicted that the negotiations would likely result in lifting the caps set in the Budget Control Act of 2011.

House Homeland Security Bipartisan Letter to DHS Secretary Johnson

The House Homeland Security Committee passed a bill (HR 3510) this week that would require the Secretary of Homeland Security to develop a cybersecurity strategy for DHS, but would prohibit the Secretary from reorganizing cyber functions within DHS without prior congressional authorization. However, DHS has already begun some reorganization plans without this prior approval prompting the committee to also send a bipartisan letter to DHS Secretary Jeh Johnson expressing their concerns about the “lack of transparency on the proposed reorganization of the National Protection and Programs Directorate (NPPD).”

A copy of the letter can be found at:

https://www.vantagepointstrat.com/?p=502

Political Updates

President Obama nominated Dr. Robert Califf to be the next Commissioner of the Food and Drug Administration (FDA) at the Department of Health and Human Services. Dr. Califf is the Deputy Commissioner for Medical Products and Tobacco at the FDA, a position he has held since March 2015. Prior to that position, he has served in various capacities at Duke University School of Medicine and the Duke University Medical Center.

Rep. Dan Benishek (R-MI) and Rep. Randy Neugebauer (R-TX) both announced this week that they won’t seek re-election in 2016. Benishek set a three-term limit when he first ran for office in 2010. He currently serves on the Agriculture, Natural Resources, and Veterans’ Affairs committees. Neugebauer is on the Agriculture, Financial Services, and Science, Space, and Technology committees.

Vice Adm. Frank Pandolfe has been nominated for reappointment to the rank of vice admiral and for assignment as assistant to the Chairman of the Joint Chiefs of Staff at the Pentagon. Pandolfe is currently serving as Director of Strategic Plans and Policy in the United States Delegation to the United Nations Military Staff Committee.

Next Week

The House and Senate will meet for a joint session of Congress on Thursday at 10 am to receive an address from Pope Francis. The House is not in session Monday-Wednesday, but may take up HR 348, the Responsibly And Professionally Invigorating Development (RAPID) Act of 2015 when they convene later in the week. The Senate will meet on Monday to being considering a procedural motion on HR 36, the Pain Capable Unborn Child Protection Act. The Senate is in session every day except for Wednesday next week.

September 11, 2015 

The House passed S 1359, the E-Warranty Act of 2015 and the Senate passed S 1461, a bill providing for the extension of the enforcement instruction on supervision requirements for outpatient therapeutic services in critical access and small rural hospitals through 2015; S 1629, the DC Courts, Public Defender Service, and Court Services and Offender Supervision Agency Act of 2015; S 349, the Special Needs Trust Fairness Act of 2015; S 1603, the Border Jobs for Veterans Act of 2015; and S Res 250, a resolution relative to the death of Richard Schultz Schweiker, former U.S. Senator from Pennsylvania.

The House and Senate also considered measures pertaining to the Iran Nuclear Agreement. Lawmakers have until September 17 to act before the agreement automatically takes effect. Yesterday, the House adopted a resolution (H Res 411) along party lines that finds that the President has not complied with section 2 of the Iran Nuclear Agreement Review Act of 2015 and, therefore, the 60-day review period has not started. Today, the House rejected by a vote of 162 to 269 HR 3461, a bill approving the agreement, but passed by a vote of 247 to 186 HR 3460, a bill prohibiting the lifting of sanctions on Iran until 2017 when President Obama leaves office. Democrats in the Senate filibustered a resolution (HJ Res 61) disapproving the agreement by blocking a cloture vote 52 to 48 (60 aye votes were needed). Senate Majority Leader Mitch McConnell (R-KY) will bring the measure up for another cloture vote next Tuesday. Meanwhile, House Speaker John Boehner (R-OH) has not ruled out adding language preventing approval of the agreement to a continuing resolution funding the government past Sept. 30.

FY16 Appropriations/Continuing Resolution (CR)

The end of FY15 is rapidly approaching and Congress still needs to discuss and reach agreement on the size, duration, and shape of a continuing resolution (CR) funding the federal government past September 30. The House is scheduled to be in session 8 more days in September and the Senate will be in session 11 more days. While some Lawmaker and aides believe that they will be able to pass a “clean” CR with no riders, Speaker Boehner, who began discussions this week with Republican House members about a CR, said he hasn’t made any decisions on what might be included in the stopgap funding measure. The discussions included how to handle the issue of cutting federal funding for Planned Parenthood and whether or not it should be coupled with the CR or if the reconciliation process would be a more appropriate vehicle for the issue.

FY2016 National Defense Authorization Act (NDAA)

As Congress returned from the August recess this week, progress on the conference on the FY16 National Defense Authorization Act (NDAA) remains stalled over a number of issues. House Armed Services Committee (HASC) Ranking Member Adam Smith (D-WA) said that the administration’s proposal to increase Tricare co-pays for drugs ordered through the mail or in retail pharmacies is one of those issues. Senate Armed Services Committee Chairman John McCain (R-AZ) agrees with the administration’s proposal, while HASC Chairman Mac Thornberry (R-CA) says he will accept only 30% of the fee increases. Conflicting language on lump sum military retirement payments and how to close the U.S. military prison at Guantanamo Bay are other unresolved issues. On a more positive note, conferees do appear to have reached agreement on proposed reductions and limitations to the military’s Basic Allowance for Housing (BAH). The BAH is a subsidy given to service members to defray the costs of off-base housing. In the Senate NDAA, the Secretary of Defense would have the authority to up the total amount of housing costs shouldered by service members to 5% from the current 1%. The Senate bill would also limit the BAH for service members who live together or married military couples. The compromise provision is a gradual ramp down in the BAH, lowering the allowance by 1% per year over five years.

Executive Order on Paid Sick Leave

The President signed an Executive Order (EO) this week establishing paid sick leave for federal contractors beginning January 1, 2017. The EO requires federal contractors to provide up to 7 days or more of paid sick leave annually, including paid leave allowing for family care. Federal agencies will now include a clause in new contracts, contract-like instruments, and solicitations specifying that, as a condition of payment, all employees shall earn not less than 1 hour of paid sick leave for every 30 hours worked. Paid sick leave accrued under this order shall carry over from 1 year to the next and shall be reinstated for employees rehired by a covered contractor within 12 months after a job separation. The EO does not require a covered contractor to make a financial payment to an employee upon a separation from employment for accrued sick leave that has not been used. And the EO does not apply to independent agencies, who are “strongly encouraged” to comply with the EO requirements.

The Secretary of Labor will issue regulations by 9/30 that are necessary to carry out the EO. Within 60 days of the Secretary issuing regulations, the Federal Acquisition Regulatory Council will issue regulations in the Federal Acquisition Regulation (FAR) to provide for inclusion of the new clause in Federal procurement solicitations and contracts.

Executive Order on Paid Sick Leave:

https://www.whitehouse.gov/the-press-office/2015/09/08/executive-order-establishing-paid-sick-leave-federal-contractors

Department of Energy Quadrennial Technology Review (QTR)

The Department of Energy released its 2015 Quadrennial Technology Review (QTR) this week. The QTR examines the status of clean energy technologies and research opportunities to advance these technologies. It focuses primarily on technologies with commercialization potential in the midterm and beyond. The last (and very first) QTR was released in 2011.

The DOE 2015 QTR can be found at:

http://energy.gov/sites/prod/files/2015/09/f26/Quadrennial-Technology-Review-2015.pdf

Political Updates

Illinois State Sen. Darin LaHood (R) won a special election to replace former Rep. Aaron Schock (R-IL) on Thursday. LaHood, son of former Transportation Secretary Ray LaHood, was heavily favored to win the seat. Congress now has zero vacancies.

House Education and Workforce Committee Chairman Rep. John Kline (R-MN) announced last week that he is retiring at the end of this Congress. Because of Republican term limits, Kline would have had to relinquish his Education Committee gavel at the end of 2016. Kline was first elected to Congress in 2002. He is also a member of the House Armed Services Committee. During his 25-year career in the U.S. Marine Corps, Kline served as a helicopter pilot and earned the responsibility of flying Marine One. He also served as a personal military aide to Presidents Jimmy Carter and Ronald Reagan. Kline is the second House committee chair to announce retirement. House Administration Committee Chairwoman Candice Miller (R-MI) announced in March that she would not seek re-election. Rep. Joe Wilson (R-SC) is next in seniority on the Education Committee, followed by Rep. Virginia Foxx (R-NC). President Obama narrowly won Kline’s congressional district in 2012.

Next Week

The House will be in session Wednesday through Friday and will consider HR 758, the Lawsuit Abuse Reduction Act of 2015; HR 3134, a bill that places a one-year moratorium on federal funding for Planned Parenthood; and a bill sponsored by Rep. Trent Franks (R-AZ) that adds criminal penalties to people who violate the Born Alive Act. The Senate meets at 1 pm on Tuesday and will continue work on HJ Res 61, a resolution disapproving of the Iran Nuclear Agreement.

August 28, 2015

The House and Senate were in recess this week.

White House FY16 Continuing Resolution “Wish List”

The Office of Management and Budget (OMB) submitted to Congress this week a list of special funding requests and a list of authorization issues in anticipation of a continuing resolution (CR) funding the government beginning October 1. The lists include, among other things, $450M in emergency funding to fight wildfires in the West, a reduction in the Department of Defense Overseas Contingency Operations (OCO) account to reflect the decreasing scale of operations, an extension of the Export-Import Bank’s charter, a request for more flexibility to support disability claims processing at the Veterans Affairs Department, an authorization to provide additional resources for the construction of an over-budget VA hospital in Denver, authority for the District of Columbia to spend its local tax revenue in the early months of FY16, special acquisition authority for research and development projects at DHS, and reauthorization of the E-Verify immigration program.

A CR typically extends all prior-year spending and policy provisions, so any changes to those spending levels or policy provisions must be specifically included in the CR. However, Appropriators typically keep the number of anomalies in a CR low so as to keep pressure on lawmakers to reach a final spending agreement.

The duration of the anticipated CR is still unclear. It likely won’t extend beyond the calendar year, but whether it extends until December 18 (the last Friday before Christmas and the last day both the House and Senate are scheduled to be in session), October 29 to coincide with when the highway bill expires, or November 20 (the Friday before the Thanksgiving recess) remains to be decided.

Link to OMB List of Special Funding Requests:

https://www.vantagepointstrat.com/?p=492

Link to OMB Authorization Issues

https://www.vantagepointstrat.com/?p=493

Department of Defense Manufacturing Innovation Institute for Flexible Hybrid Electronics

The Department of Defense announced that the Obama Administration is awarding a Manufacturing Innovation Institute for Flexible Hybrid Electronics to a consortium of 162 companies, universities, and non-profits led by the FlexTech Alliance. This is part of DoD’s efforts to partner with the private sector and academia to ensure the U.S. continues to lead in the new frontiers of manufacturing. The institute is the seventh of nine such manufacturing institutes launched by the administration, and the fifth of six led by the DoD. This newest institute will bring the government, industry, and academia together to advance U.S. leadership in manufacturing flexible hybrid electronics, which describes the innovative production of electronics and sensors packaging through new techniques in electronic device handling and high precision printing on flexible, stretchable substrates. The FlexTech alliance consortium includes Apple, Lockheed Martin, Stanford, and MIT, among others. The cooperative agreement will be managed by the U.S. Air Force Research laboratory (AFRL) and will receive $75 million in DoD funding over five years matched with more than $90 million from industry, academia, and local governments. In total, the institute will receive $171 million to invest in strengthening U.S. manufacturing.

Political Updates

President Obama nominated Dr. Jay Shambaugh to be a Member of the Council of Economic Advisers. Dr. Shambaugh is currently a Professor of Economics and International Affairs at the George Washington University. The President also nominated M. Tia Johnson to be Assistant Secretary for Legislative Affairs at the Department of Homeland Security. Johnson is currently a Senior Adviser at U.S. Immigration and Customs Enforcement (ICE). Prior to her position at ICE, she served in the U.S. Army Judge Advocate General’s Corps, where she was the first African American female to attain the rank of Colonel in JAG Corps history.

Rick Holgate, the Chief Information Officer (CIO) for the Justice Department’s Bureau of Alcohol, Tobacco, Firearms and Explosives announced that he is leaving government service to take a post as a federal analyst with Gartner. NASA could also be looking for a new CIO as sources say Larry Sweet may be retiring at the end of the calendar year. And Damian Bednarz is leaving his post as Chief of Staff in the Office of International Affairs at the Department of Energy to join a communications and public strategy group in D.C.

Next Week

The House and Senate are in recess until September 8.

August 21, 2015

The House and Senate were in recess this week.

Senate Democrats Request Budget Negotiations

When the House and Senate return September 8, they will only be in session at the same time for 10 days before the fiscal year ends on September 30. With this tight timeline, all 46 members of the Democratic caucus in the Senate (Democrats and Independents) sent a letter to Senate Majority Leader Mitch McConnell (R-KY) this week urging him to schedule bipartisan budget negotiations as soon as possible. “With the existence of a clear and urgent deadline for action, we believe it would be unwise to wait until after the Congress returns from the August state work period – just 23 days before the end of the fiscal year – to begin talks on a path forward.”

Text of the letter:

http://www.dpcc.senate.gov/?p=issue&id=460

OMB Report on FY16 Appropriations Bills and Sequestration Caps

The Office of Management and Budget said in a report this week that the 12 FY16 spending bills passed or marked up in the House this year exceed the statutory cap on non-defense spending by $1.8B and the defense cap by $3M. In the Senate the FY16 bills exceed the cap on defense spending by $1M, but are in compliance with the current 2016 limit for the non-defense category. The caps are currently set at $493.5B for non-defense and $523B for defense spending. In order to avoid triggering a sequester, which would result in across-the-board cuts in programs, the House and Senate would have to cut funding in those bills before they are enacted into law. Or the House, Senate, and White House could agree to a new budget deal that would raise the caps.

Link to the OMB Report:

https://www.whitehouse.gov/sites/default/files/omb/assets/legislative_reports/sequestration/sequestration_update_august2015.pdf

Political Updates

Former Rep. Louis Stokes (D-OH), the first African-American congressman from Ohio died this week after being diagnosed with lung and brain cancer in July. He retired in 1999 and was 90 years old at the time of his death. Stokes was a founding member of the Congressional Black Caucus, and was the chairman of the House Select Committee on Assassinations, which investigated the assassinations of President John F. Kennedy and civil rights leader Martin Luther King, Jr.

Rep. Chaka Fattah (D-PA) pleaded not guilty to multiple charges in a federal racketeering case this week and was released on $100,000 bail.

Rep. Elijah Cummings (D-MD) hired veteran Senate campaign fundraiser Ashley Martens this week raising speculation that Cummings may run for the Democratic Senate nomination. Rep. Chris Van Hollen (D-MD) and Rep. Donna Edwards (D-MD) have already announced their candidacies for replacing retiring Sen. Barbara Mikulski (D-MD).

U.S. Coast Guard Vice Admiral Charles Michel formally assumed the role of Vice Commandant of the Coast Guard during a ceremony at the U.S. Coast Guard Headquarters. As Vice Commandant, Michel will oversee the Coast Guard’s operations, strategic development, organizational governance, and management of the service’s more than 58,000 employees and 30,000 volunteers.

Cheri Tyner has been appointed to the Senior Executive Service and has been assigned as Director of the Acquisition Directorate at the Department of Defense. Tyner previously served as Deputy Director in the Office of Acquisition Management, Immigration and Customs Enforcement at the Department of Homeland Security. Maureen Higgins has been assigned as the assistant Director of Human Capital and Resource Management in the Defense Contract Audit Agency at the Department of Defense.  Higgins previously served as the Deputy Director of the Center for Leadership Development in the Office of Personnel Management.

FBI Director James Comey has named James Trainor, Jr. as Assistant Director of the Cyber Division at FBI Headquarters in Washington, D.C.  Trainor most recently served as Deputy Assistant Director of the Cyber Operations Branch.

Next Week

The House and Senate are in recess until September 8.

August 14, 2015

The House and Senate were in recess this week.

DHS Cybersecurity Announcements

Department of Homeland Security (DHS) Secretary Jeh Johnson announced this week that he was elevating the National Cybersecurity and Communications Integration Center (NCCIC) within the Department’s structure with an incident reporting line directly to the Secretary. Johnson also directed the National Protection and Programs Directorate (NPPD) to develop a reorganization plan that will ensure that the NCCIC is focused on strengthening DHS’ operational capabilities for mitigating and responding to cyber incidents. As part of this reorganization, Dr. Andy Ozment, Assistant Secretary of the Office of Cybersecurity and Communications, assumed overall and direct responsibility for the NCCIC, and John Felkner, formerly the Director of Cyber and Intelligence Strategy for HP Enterprise Services, joined DHS as the new NCCIC Director of Operations. Felker replaces Larry Zelvin, who departed last summer.

And earlier this month, Secretary Johnson tasked his Homeland Security Advisory Council (HSAC) to establish a subcommittee entitled Cybersecurity Subcommittee. A notice in today’s Federal Register announced that the subcommittee was officially established. The Cybersecurity subcommittee will provide actionable findings and recommendations to the HSAC on best practices sourced from industry, state and local government, academic experts, and community leaders. It will also address the following: (1) Identify the readiness of the Department’s lifeline sectors to meet the emerging cyber threat and provide recommendations for building cross-sector capabilities to rapidly restore critical functions and services following a significant cyber event; and (2) How can the Department provide a more unified approach to support State, Local, Tribal and Territorial cybersecurity? The subcommittee’s findings and recommendations will be submitted to the HSAC for their deliberation and vote during a public meeting. Once the report is voted on by the HSAC, it will be sent to the Secretary for his review and acceptance.

http://www.gpo.gov/fdsys/pkg/FR-2015-08-14/html/2015-20034.htm

CBO Report on Eliminating Budget Control Act Caps

The Congressional Budget Office (CBO) released a report this week that concludes that eliminating the Budget Control Act of 2011 caps on discretionary budget authority for FY16 and FY17 would make GDP larger than predicted under current law and increase full-time-equivalent employment. The report, “The Macroeconomic Effects of Eliminating Automatic Reductions to Discretionary Spending Caps,” was requested by Sen. Bernie Sanders (I-VT). Fully eliminating the automatic reductions would allow for an increase of $90B in FY16 and $91B in FY17. In FY16, CBO estimates that elimination of the caps would make real GDP 0.4% larger and would increase full-time-equivalent employment by 0.5 million. In FY17, the results would be smaller as CBO estimates that elimination of the caps would make real GDP 0.2% larger and would increase full-time-equivalent employment by 0.3 million. CBO warns, though, that while eliminating the reductions to the spending caps for FY16 and FY17 would increase output and employment over the next few years, the resulting increases in federal deficits would, in the longer term, make the nation’s output and income lower than they would be otherwise.

https://www.cbo.gov/publication/50725?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=812526&utm_campaign=Hourly_2015-08-11_15:00

NIST Proposed International Cybersecurity Standards

The National Security Council’s (NSC) Cyber Interagency Policy Committee’s International Cybersecurity Standardization Working Group drafted a report that sets out proposed US Government strategic objectives for pursuing the development and use of international standards for cybersecurity, and makes recommendations to achieve those objectives. The Cybersecurity Enhancement Act of 2014 requires the Director of the National Institute of Standards and Technology (NIST) to work with relevant Federal agencies to ensure interagency coordination “in the development of international technical standards related to information system security,” and develop and transmit to Congress a plan for ensuring such coordination within one year of enactment. This NSC report will also serve as the basis of this required report to Congress.

The draft document proposes four broad objectives for the government’s pursuit of international standards in cyberspace:

1. Improve national and economic security;
2. Ensure standards are technically sound;
3. Support standards that promote international trade; and
4. Develop standards in tandem with industry to boost innovation.

The public comment period is August 10 – September 24.

http://csrc.nist.gov/publications/drafts/nistir-8074/nistir_8074_vol1_draft_report.pdf

Proposed Guidance for Strengthening Cybersecurity in Federal Acquisitions

The threats facing Federal information systems have dramatically increased as agencies provide more services online, digitally store data, and rely on contractors for a variety of these information technology services. The Federal Information Security Modernization Act of 2014 (FISMA), Office of Management and Budget (OMB) guidance, and National Institute of Standards and Technology (NIST) standards provide agencies with a framework for securing their information and information systems regardless of where this information is stored. This information can be on government information systems, contractor information systems, and contractor information systems that are part of an Information Technology (IT) service operated on behalf of the government. The increase in threats facing Federal information systems demand that certain issues regarding security of information on these systems is clearly, effectively, and consistently addressed in Federal contracts.

The Federal Chief Information Officers Council, the Chief Acquisition Officers Council, and Office of Management and Budget released draft guidance this week on how agencies should write acquisition policies and contracts to strengthen cybersecurity in Federal acquisitions. The guidance also defines who is responsible in the event of a breach, how incidents should be reported, and how systems operated by companies on behalf of the government should be assessed and monitored. The General Services Administration has 90 days to review the guidance and make recommendations on a baseline for better business due diligence to support risk management throughout the entire lifespan of an outsourced capability. The public has less than 30 days to provide their comments and recommendations for making the guidance more meaningful and effective. The draft guidance is posted on the open source platform GitHub and comments are due by September 10. Comments will be reviewed using an iterative approach.

Once the guidance is finalized, the Federal Acquisition Regulation will be amended for inclusion of contract clauses that address, as appropriate, the guidance covered in key sections of the new rules. After publication, federal agencies’ chief information officers, chief acquisition officers, chief information security officers, senior privacy officers, and other relevant officials shall immediately begin working together to apply the guidance.

https://policy.cio.gov

GSA Cybersecurity Special Item Number

The General Services Administration (GSA) issued a request for information (RFI) this week in which they said that they are considering adding a special item number (SIN) for cybersecurity and information assurance (CyberIA) to IT Schedule 70. The goal is to make it faster and easier for agencies to buy security tools and services. GSA is looking for feedback on the CyberIA SIN from companies whose products and services would be listed there.

The proposed SIN would include hardware, software and services in eight categories:

1. Information Assurance
2. Virus Detection
3. Intrusion Detection and Prevention
4. Network Management
5. Situational Awareness and Incident Response
6. Secure Web Hosting
7. Backup and Security Services
8. Communications Security

The RFI is looking for industry feedback on how companies sell cybersecurity products and services, general opinions on creating a cybersecurity SIN, and thoughts on the eight proposed categories. Responses are due by 4 PM on September 11.

https://www.fbo.gov/index?s=opportunity&mode=form&tab=core&id=68e1e8b5cc17539fc9d4d8ee53189344

Political Updates

Stanley Lowe, Deputy Assistant Secretary for Information Security at the Veterans Affairs Department announced last week that he is retiring effective August 22 after 25 years in federal service.

Former Rep. Carol Shea-Porter (D-NH) announced this week that she will run for her old congressional seat challenging Rep. Frank Guinta (R-NH). This will be Shea-Porter’s sixth campaign for the seat, which she won in 2006, 2008, and 2012. Guinta is currently facing a campaign finance scandal after signing a conciliation agreement with the Federal Election Commission, which found that in 2010 Guinta loaned his campaign $355,000 in contributions that came from his parents. While Guinta agreed to pay a $15,000 fine and return the money, several Republicans in New Hampshire have called for his resignation including Sen. Kelly Ayotte (R-NH). Guinta has refused to resign and has said he may seek re-election in 2016.

“Little House on the Prairie” actress Melissa Gilbert announced this week that she’ll run for Congress against freshman Rep. Mike Bishop (R-MI) who succeeded Mike Rogers when he retired in 2014. The congressional district is considered a competitive district with Obama winning it in 2008 and Romney carrying it in 2012.

Next Week

The House and Senate are in recess until September 8.

August 7, 2015

The House was in recess this week. The Senate failed to invoke cloture on a motion to proceed on a measure to cut off federal funding for Planned Parenthood (S 1881). Planned Parenthood received $528.4M from the federal government in FY2014. The motion failed by a vote of 53 to 46. The Senate then called up S 754, the Cybersecurity Information Sharing Act, but set it aside when they could not reach agreement on amendments. The Senate confirmed General Mark Milley to be Chief of Staff of the Army, Admiral John Richardson to be Chief of Naval Operations, and Lieutenant General Robert Neller to be Commandant of the Marine Corps. The Senate also confirmed Marie Therese Dominguez to be Administrator of the Pipeline and Hazardous Materials Safety Administration, Monica Regalbuto to be Assistant Secretary for Environmental Management at the Department of Energy, Jonathan Elkind to be Assistant Secretary of International Affairs at the Department of Energy, and Joyce Connery and Joseph Hamilton to be Board Members of the Defense Nuclear Facility Safety Board.

Fiscal Year 2016 Appropriations

There are only 15 legislative days scheduled for the Senate and 12 for the House before the end of the fiscal year and government funding expires. The House and Senate Appropriations Committees have passed all of their FY16 spending bills, but floor action on the bills has been stalled in both chambers. Senate Majority Leader Mitch McConnell (R-KY) said this week that he would not attach language cutting federal funding for Planned Parenthood to a continuing resolution. He also reiterated that Republicans will not shut down the government nor default on the national debt.

Status of FY16 Appropriations Bills

Cybersecurity

The Cybersecurity Information Sharing Act (CISA) (S 754) was brought up on the Senate floor this week, but set aside after Senators could not come to agreement on which amendments to consider. Under a deal struck before the Senate recessed, the bill will come up again in September and 21 amendments will receive votes (11 Democratic and 10 Republican).

Department of Homeland Security Deputy Secretary Alejandro Mayorkas responded to a July 1 letter from Sen. Al Franken (D-MN) to DHS Secretary Jeh Johnson in which Franken asked for information on how private entities share cyber threat information with the federal government, concerns the CISA legislation raises with respect to information sharing, and DHS’ policies for removing personally identifiable information. Mayorkas took the opportunity in his response letter to raise the concerns DHS has with the CISA bill.  A copy of Mayorkas’ letter to Sen. Franken can be found at:http://www.franken.senate.gov/files/documents/150731DHSresponse.pdf

Political Updates

CNN will host the first Democratic presidential debate in Nevada on October 13, with the exact location to be unveiled in the coming weeks. And the next Republican presidential debate will also be hosted by CNN on September 16 in California.

The President nominated Richard Otto Buckius to be Deputy Director of the National Science Foundation, Thomas Darling III to be Administrator of the Federal Motor Carrier Safety Administration, Linda Etim to be Assistant Administrator for the Bureau of Africa at the US Agency for International Development, Marcel Lettre II to be Undersecretary of Defense for Intelligence, former congressman Patrick Murphy to be Under Secretary of the Army at the Department of Defense, and Cherry Ann Murray to be Director of the Office of Science at the Department of Energy.

Stephen Warren, the Department of Veterans Affairs Deputy Chief Information Officer, announced this week that he will leave the agency effective Aug. 28 to become the Office of the Comptroller of Currency’s CIO. The VA has yet to pick a successor to Warren. The U.S. Secret Service appointed George Mulligan, a former director of the White House Military Office, as its first Chief Operating Officer. Mulligan comes from the Department of Defense, where he spent 29 years as both a senior civilian executive and a former naval officer. As COO, Mulligan will be the principal administrator for planning and directing all business and programming activities for the agency. Director of National Intelligence James Clapper announced that he selected Dr. Jason Matheny to be the next director of the Intelligence Advanced Research Projects Activity, effective immediately. Dr. Matheny had been serving as Director of IARPA’s new office for Anticipating Surprise overseeing research efforts to develop new capabilities to deliver timely and accurate forecasts for a range of events relevant to national security. He served concurrently as the program manager for the Open Source Indicators program, the Foresight and Understanding from Scientific Exposition program, and the Forecasting Science and Technology program. Dr. Matheny is succeeding Dr. Peter Highnam, who moved to a position at the National Geospatial Intelligence Agency in July. Glenn Gerstell was sworn in as the General Counsel of the NSA. Gerstell is a leading legal expert in technology and cybersecurity matters. He practiced for nearly 40 years at the international law firm of Milbank, Tweed, Hadley & McCloy LLP, where he served for 18 years as the managing partner of Milbank’s Washington, D.C., office. Gerstell recently served on the D.C. Homeland Security Commission, was appointed by President Obama as a member of the National Infrastructure Advisory Council, is a Life Member of the Council on Foreign Relations, and was an elected member of the American Academy of Diplomacy.

Next Week

The House and Senate are in recess until September 8. The Senate will resume consideration of S 754, the Cybersecurity Information Sharing Act when it reconvenes in September. Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Harry Reid (D-NV) have also reached an agreement to start consideration of the Iran deal when they return in September. House Majority Leader Kevin McCarthy (R-CA) said that when the House returns in September they will vote on a resolution disapproving of the Iran Nuclear Agreement. The disapproval resolution was introduced by Rep. Ed Royce (R-CA) this week.

July 31, 2015

The House passed HR 1994, the VA Accountability Act; HR 427, the Regulations from the Executive in Need of Scrutiny Act of 2015; HR 675, the Veterans Compensation Cost-of-Living Adjustment Act of 2015; HR 2770, the Keeping our Travelers Safe and Secure Act; HR 1656, the Secret Service Improvements Act of 2015; and S 1482, the Need-Based Educational Aid Act of 2015. The House and Senate passed HR 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. The bill authorizes appropriations for federal-aid highway programs through Oct. 29, which were set to expire on July 31. The measure also provides the Veterans Affairs Department with $3 billion to cover a shortfall. The bill now goes to the President for his signature. The Senate also passed a six-year highway authorization, voting 65 to 34 on HR 22. And the Senate passed HR 23, the National Windstorm Impact Reduction Act Reauthorization of 2015; HR 2499, the Veteran Entrepreneurship Act; S 1599, the Criminal Antitrust Anti-Retaliation Act of 2015; and HR 1626, the DHS IT Duplication Reduction Act of 2015. The Senate confirmed Marine Corps General Joseph Dunford Jr. to be the Chairman of the Joint Chiefs of Staff, Air Force General Paul Selva to be Vice Chairman of the Joint Chiefs of Staff, Jeffrey Michael Prieto to be General Counsel of the Department of Agriculture, Allison Beck to be Federal Mediation and Conciliation Director, and Carol Fortine Ochoa to be Inspector General at the General Services Administration.

Fiscal Year 2016 Appropriations

There are only 20 legislative days scheduled for the Senate and 12 for the House before the end of the fiscal year and government funding expires. The House and Senate Appropriations Committees have passed all of their FY16 spending bills, but floor action on the bills has been stalled in both chambers. House Speaker John Boehner (R-OH) recently said that Congress is going to have to pass a continuing resolution (CR) in order to avoid a shutdown. Senate Majority Leader Mitch McConnell (R-KY), however, has said that they have not begun to talk about a CR yet. Further complicating the CR process is a push by House conservatives to include in the CR a provision to defund Planned Parenthood. How long a CR would last and how many would be needed until Congress and the Administration can negotiate a broader budget deal is unclear at this point in time. Talks are not likely to begin before mid-September, right before the end of the fiscal year.

Status of FY16 Appropriations Bills

House Appropriations Committee Chairmanship

House Appropriations Committee Chairman Hal Rogers (R-KY) is in his fifth year as chairman of the committee and is unlikely to seek a waiver to continue as chairman at the end of the 114th Congress in 2016. Speculation is now centered on three contenders for the leadership position (assuming Republicans retain control of the House after the 2016 elections) – Reps. Rodney Frelinghuysen (R-NJ), Robert Aderholt (R-AL), and Kay Granger (R-TX). Frelinghuysen is currently chair of the Defense subcommittee, Aderholt is chair of the Agriculture subcommittee, and Granger is chair of the State Foreign Operations subcommittee. Frelinghuysen is considered the frontrunner at this point in time. If he succeeds Rogers it would free up the Defense subcommittee chair, which is a position Granger has expressed interest in.

Debt Ceiling

Treasury Secretary Jack Lew sent a letter to Congress this week regarding the extraordinary measures the Department of the Treasury is taking to avoid default. On March 16, 2015, the outstanding debt of the US reached the statutory limit. At that time, Treasury had to begin employing extraordinary measures to continue to finance the government on a temporary basis. These measures include a debt issuance suspension period with respect to investments of the Civil Service Retirement and Disability Fund and a suspension of the daily reinvestment of Treasury securities held by the Government Securities Investment Fund of the Federal Employees’ Retirement System Thrift Savings Plan. The debt issuance suspension period was originally through July 30. Secretary Lew informed lawmakers that he was extending the period through October 30. Lew wrote that his best estimate is that the measures would last for at least through the end of October and maybe for a “brief additional period of time.” Some independent economists have estimated that the measures will prevent default into December giving Congress some more time to determine how they are going to deal with raising the debt limit.

Treasury Secretary Lew Letter to Congress:

http://www.treasury.gov/connect/blog/Pages/Treasury-Sends-Debt-Limit-Letter-to-Congress.aspx

FY16 National Defense Authorization Act

House and Senate conferees on FY16 National Defense Authorization Act (NDAA) did not complete their negotiations before the August recess. Differences over military pay benefits (increases to Tricare pharmacy co-pays and troops’ out-of-pocket housing costs), closing the Guantanamo Bay detention facility, and acquisition reform stalled the conference process. Senate Armed Services Committee Chairman John McCain (R-AZ) said that despite not being in DC in August, negotiations would continue during the recess over the phone and other communication methods. The House and Senate Ranking Democrats, Rep. Adam Smith (D-WA) and Jack Reed (D-RI) are apparently in agreement with McCain on including the Senate provision for phasing in increases in the Tricare pharmacy copays.

Cybersecurity

The Senate Homeland Security and Governmental Affairs Committee marked up and reported out of committee this week S 1869, the Federal Cybersecurity Enhancement Act of 2015. The bill would mandate that federal agencies implement several cybersecurity controls and best practices, including two-factor authentication for access to sensitive systems and database encryption. The bill would also formally authorize and accelerate deployment of the EINSTEIN 3 Accelerated program, a federal intrusion detection and prevention system. If the bill is signed into law, all federal agencies will be required to adopt EINSTEIN 3. And federal agencies would have to provide annual status reports of the EINSTEIN programs. House Homeland Security Committee Chairman Michael McCaul (R-TX) introduced a similar bill this week HR 3313, the Cyber Defense of Federal Networks Act of 2015. McCaul commended the Senate for their quick action and encouraged his peers in the House to take action.

S 1869 Bill Text:

http://www.ronjohnson.senate.gov/public/_cache/files/39cfd76e-8084-4216-9f2a-e6a3d589243f/s.-1869.pdf

HR 3313 Bill Text:

http://homeland.house.gov/sites/homeland.house.gov/files/documents/072915-HR3313.pdf

In other cybersecurity news, the Senate may take up S 754, the Cybersecurity Information Sharing Act (CISA) next week on the Senate floor. Senate Majority Leader Mitch McConnell (R-KY) said that the Senate would first vote on a bill to defund Planned Parenthood. If that vote fails, McConnell said that the Senate would then turn to the cybersecurity bill. However, some Senators oppose CISA and could try to filibuster the legislation. The Electronic Frontier Foundation, ACLU, Sunlight Foundation, the Center for Democracy and Technology, and others have lined up against the bill because of privacy and civil liberties concerns. Their opposition and some Republican Senators desire for robust debate on the bill allowing for several amendments may push its consideration until after the August recess.

Political Updates

One more Republican candidate threw his hat into the ring for the 2016 Presidential race – Former Virginia Governor Jim Gilmore. He joins the already crowded Republican field that includes Sen. Ted Cruz (R-TX), Sen. Rand Paul (R-KY), Sen. Marco Rubio (R-FL), Sen. Lindsey Graham (R-SC), Louisiana Governor Bobby Jindal, New Jersey Governor Chris Christie, Ohio Governor John Kasich, Wisconsin Governor Scott Walker, former Texas Governor Rick Perry, former Florida Governor Jeb Bush, former HP CEO Carly Fiorina, businessman Donald Trump, retired neurosurgeon Ben Carson, former Arkansas Governor Mike Huckabee, former NY Governor George Pataki, and former Sen. Rick Santorum (R-PA). The first Republican debate is next Thursday August 6, with the top 10 candidates on at 9 pm and the remaining seven candidates on at 5 pm. On the Democrat side, the field includes former Secretary of State Hillary Clinton, Sen. Bernie Sanders (I-VT), former Maryland Governor Martin O’Malley, former Rhode Island Governor and Senator (and former Republican) Lincoln Chaffee, and former Virginia Senator Jim Webb.

Rep. Chaka Fattah (D-PA) was indicted by federal prosecutors this week on 29 counts including racketeering conspiracy, bribery, and wire fraud. Fattah stepped down from his position as ranking Democrat on the House Commerce, Justice, Science Appropriations subcommittee. He has also stepped aside from his chairmanship of the board of the Congressional Black Caucus Foundation. Fattah maintains his innocence and has vowed to run for re-election in 2016.

Rep. Mark Meadows (R-NC) filed a motion to try to force House Speaker John Boehner (R-OH) from his leadership post. The move, called a motion to vacate the chair, represents a new level of opposition to GOP leadership from the conservative wing of the House Republican Conference. Rep. Thomas Massie (R-KY) tweeted that he cosponsored Meadows’ resolution. The motion was referred to the House Rules Committee, which is packed with supporters of the Speaker so the motion is unlikely to go any further.

Peter Cook has been appointed as the Deputy Assistant to the Secretary of Defense (press secretary), Office of the Assistant to the Secretary of Defense for Public Affairs in the Pentagon. Cook previously served as the chief Washington correspondent for Bloomberg Television in Washington, DC. Susan Yarwood has been assigned as the Deputy Director in the Washington Headquarters Services in Washington, DC. Yarwood previously served as the Director of the Human Resources Directorate in the Washington Headquarters Services.

Retired Navy Rear Admiral Earl Gay withdrew himself from consideration after being nominated by the President for the position of Deputy Director at the Office of Personnel Management. Gay’s nomination had been blocked by Sen. David Vitter (R-LA) since January over an OPM-issued Obamacare exemption.

Former Rep. Mike Michaud (D-ME) was nominated by the President to be the Labor Department’s Assistant Secretary for Veterans’ Employment and Training. During his time in Congress, Michaud was the ranking member on the House Veterans’ Affairs Committee. The President also nominated Darryl DePriest to be Chief Counsel for Advocacy at the Small Business Administration, Victoria Wassmer to be Under Secretary of Energy at the Department of Energy, Beverly Scott to be a member of the National Transportation Safety Board, Michael Suarez to be a member of the National Council on the Humanities, Brigadier General Richard Kaiser to be Commissioner of the Mississippi River Commission, Major General Michael Wehr to be President of the Mississippi River Commission, and Judith Kimble to be Chairman of the President’s Committee on the National Medal of Science.

Next Week

The House is in recess until September 8. The Senate will be in session next week and is scheduled to vote on a procedural motion on a measure to defund Planned Parenthood (S 1881). If they are not successful on that vote, Senate Majority Leader Mitch McConnell (R-KY) said that S 754, the Cybersecurity Information Sharing Act would be up next.

July 24, 2015

The House passed HR 1557, the Federal Employee Antidiscrimination Act; HR 2256, the Veterans Information Modernization Act; HR 1734, the Improving Coal Combustion Residuals Regulation Act of 2015; HR 1599, the Safe and Accurate Food Labeling Act of 2015; and HR 3009, the Enforce the Law for Sanctuary Cities Act. The Senate voted to invoke cloture on the motion to proceed on consideration of a six-year highway reauthorization bill. They will resume consideration of this measure when they convene for a rare Sunday session. This is the second time this year the Senate has convened on a Sunday; the last time was in May when they met to consider passage of the USA Freedom Act before expiration of some controversial Patriot Act provisions. The Senate also passed HR 23, the National Windstorm Impact Reduction Act Reauthorization of 2015; HR 2499, the Veteran Entrepreneurship Act; S 1599, the Criminal Antitrust Anti-Retaliation Act of 2015; and HR 1626, the DHS IT Duplication Reduction Act of 2015.

Fiscal Year 2016 Appropriations

House

While the House Appropriations Committee has completed action on all of its 12 FY2016 spending bills, action on the House floor has come to a complete stop. House Speaker John Boehner said this week that a continuing resolution will be necessary given the limited time lawmakers have to resolve their budget differences. The House is scheduled to be in session only 16 more days before the end of FY2015.

Meanwhile, House Appropriations Ranking Member Nita Lowey (D-NY) released a report this week charging Republicans with shortchanging several programs that would place “our national and economic security at risk.” The report gives an issue-by-issue breakdown of the funding cuts and policy riders. This report may give some indication of the negotiating position of House Democrats and what they will push for during any potential budget negotiations later this year.

House Appropriations Committee Minority Report:

http://democrats.appropriations.house.gov/sites/democrats.appropriations.house.gov/files/documents/FY16-report-July2015.pdf

Senate

The Senate Appropriations Committee has now passed all 12 of its FY2016 spending bills as it marked up its Financial Services spending measure in subcommittee and full committee this week. This is the first time since 2009 that the committee has approved all 12 annual spending bills.

Financial Services

The Senate Appropriations Committee marked up and reported out its FY16 Financial Services Appropriations bill this week. The bill was considered in subcommittee on Tuesday and full committee on Thursday. The full committee passed the $20.6B measure by a vote of 16 to 14. The bill is $4B less than the President’s FY16 budget request and $1.3B below the FY15 enacted level, but it does provide about $400M more than the House version. The bill also includes the language of a Republican banking overhaul bill (S 1484).

In addition to a manager’s amendment, 5 amendments were adopted during committee consideration – Sen. Moran’s (R-KS) Cuba travel ban repeal amendment, Sen. Mikulski’s (D-MD) data breach amendment, Sen. Tester’s (D-MT) 180-day shipping prohibition repeal amendment, Sen. Boozman’s (R-AR) Cuba private credit for agriculture amendment, and Sen. Merkley’s (D-OR) marijuana banking amendment.

Bill Text:

http://www.appropriations.senate.gov/sites/default/files/hearings/FSGGBillFinal.PDF

Report Language:

http://www.appropriations.senate.gov/sites/default/files/hearings/FSGGReptFinal.PDF

Status of FY16 Appropriations Bills

FY16 National Defense Authorization Act

House and Senate conferees on FY16 National Defense Authorization Act (NDAA) are not expected to complete their negotiations before the August recess due to a number of unresolved issues. The issues range from reforms to the military retirement system, the greater sage-grouse, and basic housing allowances. Other issues such as acquisition reform and the US military prison at Guantanamo Bay, Cuba appear to have been resolved. The President has threatened to veto the measure if the final conference measures includes restrictions on closing Guantanamo as well as the additional funds authorized in the Overseas Contingency Operations (OCO) account.

FISMA Bill

Sen. Susan Collins (R-ME) led a bipartisan delegation of Senators to introduce legislation this week that would bolster the Department of Homeland Security’s (DHS) authority to protect federal civilian networks. The other original co-sponsors of the legislation include Senators Mark Warner (D-VA), Dan Coats (R-IN), Kelly Ayotte (R-NH), and Claire McCaskill (D-MO).

While the Department of Homeland Security (DHS) has the mandate to protect the .gov domain, it only has limited authorities to do so. At present, DHS does not have the authority to monitor the networks of government agencies unless they have permission from that agency.  DHS also cannot regularly deploy countermeasures to block malware without permission from the agency. To fix this problem, Sen. Collins’ bill takes five steps to change the way DHS oversees the .gov domain:

1. Allows the Secretary of Homeland Security to operate intrusion detection and prevention capabilities on all federal agencies on the .gov domain.
2. Directs the Secretary of Homeland Security to conduct risk assessments of any network within the government domain.
3. Allows the Secretary of Homeland Security to operate defensive countermeasures on these networks once a cyber threat has been detected.
4. Strengthens and streamlines the authority Congress gave to DHS last year to issue binding operational directives to federal agencies, especially to respond to substantial cyber security threats in emergency circumstances.
5. Requires the Office of Management and Budget to report to Congress annually on the extent to which OMB has exercised its existing authority to enforce government wide cyber security standards.

The Federal Information Security Management Reform Act of 2015:

http://www.collins.senate.gov/public/_cache/files/abced13c-de46-4bfc-a96f-aac0be8b29d5/ARM15K46.pdf

Political Updates

One more Republican candidate threw his hat into the ring for the 2016 Presidential race – Ohio Governor John Kasich. He joins the already crowded Republican field that includes Sen. Ted Cruz (R-TX), Sen. Rand Paul (R-KY), Sen. Marco Rubio (R-FL), Sen. Lindsey Graham (R-SC), Louisiana Governor Bobby Jindal, New Jersey Governor Chris Christie, Wisconsin Governor Scott Walker, former Texas Governor Rick Perry, former Florida Governor Jeb Bush, former HP CEO Carly Fiorina, businessman Donald Trump, retired neurosurgeon Ben Carson, former Arkansas Governor Mike Huckabee, former NY Governor George Pataki, and former Sen. Rick Santorum (R-PA). Former Virginia Governor Jim Gilmore is expected to announce his candidacy sometime in August. On the Democrat side, the field includes former Secretary of State Hillary Clinton, Sen. Bernie Sanders (I-VT), former Maryland Governor Martin O’Malley, former Rhode Island Governor and Senator (and former Republican) Lincoln Chaffee, and former Virginia Senator Jim Webb.

The President nominated Victoria Wassmer to be Undersecretary of Energy for Management and Performance at the Department of Energy, Dr. Sandra Black to be a member of the Council of Economic Advisers, Dr. Raymond Cook to be the Chief Information Officer of the Intelligence Community in the Office of the Director of National Intelligence, and Ambassador Brooke Anderson and Robert Stein to be a members of the President’s Intelligence Advisory Board.

Lt. Gen. Alan Lynn took command of the Defense Information Systems Agency (DISA) in a ceremony on Thursday, succeeding retiring DISA Director Lt. Gen. Ronnie Hawkins. Lynn will also be commander of the Joint Force Headquarters Department of Defense Information Networks. Lynn previously led the U.S. Army Network Enterprise Technology Command at Fort Huachuca, AZ.

Navy Vice Adm. James Caldwell Jr. has been nominated to become an admiral and director of the Naval Nuclear Propulsion Program. He would replace Adm. John Richardson, who has been nominated to become the Chief of Naval Operations, the service’s top officer.

Stacia Hylton, Director of the U.S. Marshals Service, is leaving her position Saturday and will be temporarily replaced by the agency’s deputy director, David Harlow, who will serve as Acting Director starting Sunday. Hylton has served since January 2011 as Director of the agency.

Next Week

The House will consider HR 427, the Regulations from the Executive in Need of Scrutiny Act of 2015 and HR 1994, the VA Accountability Act of 2015. The Senate is scheduled to be in session next week beginning on Sunday when they resume consideration of the 6-year highway reauthorization bill. If and when the Senate completes action on the highway bill, they are then expected to take up S 754, the Cybersecurity Information Sharing Act.

July 17, 2015

The House passed HR 2898, a bill that increases the availability of water for certain users in California’s drought-stricken Central Valley; HR 3038, a five-month highway funding reauthorization; HR 2499, the Veterans Entrepreneurship Act of 2015; HR 2722, the Breast Cancer Awareness Commemorative Coin Act; HR 1723, the Small Company Simple Registration Act; HR 2997, the Private Investment in Housing Act of 2015; and HR 251, the Homes for Heroes Act of 2015. The Senate passed S 1177, the Every Child Achieves Act by a vote of 81 to 17. The bill is an overhaul of the long-expired No Child Left Behind education law, and it now heads to a conference with the House-passed version, HR 5, the Student Success Act. The Senate also passed S 1300, the Adoptive Family Relief Act; S 756, the Syrian War Crimes Accountability Act; S 192, the Older Americans Reauthorization Act of 2015; and S 139, the Ensuring Access to Clinical Trials Act of 2015.

Fiscal Year 2016 Appropriations

House

House Appropriations Committee Chairman Hal Rogers (R-KY) commended his committee members this week after the committee completed action on the last of its 12 annual spending bills. Rogers said, “You have restored the reputation of this committee.”

While the committee has completed its work, the House has passed only six of its 12 annual spending bills. With the House scheduled to be in session only 20 more days before the end of fiscal year 2015, it is now likely that Congress will have to rely on a continuing resolution (CR) to keep the government running past Sept 30. Further complicating the House’s September schedule is the recent addition of the Iran Nuclear agreement, which Congress has 60 days to review setting up a potential vote in the House right around the end of the fiscal year. Some lawmakers are predicting the need for at least two CRs funding the government through late December when a final budget agreement could be worked out between Republicans and Democrats.

Homeland Security

The House Appropriations subcommittee met this week to mark up its $39.3B FY16 spending bill, which is $337M below the FY15 enacted level and $2.1B below the President’s FY16 budget request. Immigration policy dominated the debate during the full committee markup. However, the focus was now on sanctuary cities rather than on the President’s executive actions on immigration policy. The committee reported the bill out by a vote of 32 to 17 after adopting the following amendments:

• Carter – The amendment made technical and other noncontroversial changes and additions to the report. The amendment was adopted on a voice vote.
• Rooney – The amendment prohibits funding for TSA uniforms that include badges that resemble law-enforcement badges. The amendment was adopted on a voice vote.
• Culberson – The amendment requires ICE to detain Priority 1 and Priority 2 illegal aliens. The amendment was adopted on a voice vote.
• Yoder – The amendment prohibits certain state and local grants from going to “Sanctuary Cities.” The amendment was adopted on a vote of 28-21.
• Aderholt– The amendment restates current law prohibiting federal funding for Immigration and Customs Enforcement (ICE) to provide for abortions, except in certain life-threatening cases, rape, and incest. The amendment was adopted on a vote of 31-18.
• Young – The amendment withholds $5 million in funding for ICE until ICE completes a congressional briefing on the status of local communities participating in the Priority Enforcement Program. The amendment was adopted on a voice vote.

OMB Director Shaun Donovan sent a letter to Chairman Rogers earlier in the week outlining the administration’s opposition to the FY16 Homeland Security spending bill. In addition to opposing sequestration funding levels, the administration also called out the committee’s failure to incorporate the administration’s proposed restructuring of FEMA grant programs, lack of investment in DHS headquarters consolidation at St. Elizabeth’s, the reduction in funding for FEMA’s flood risk mapping efforts, and the inclusion of controversial riders including provisions related to the expanded Deferred Action for Childhood Arrivals and the newly proposed Deferred Action for Parents of Americans and Lawful Permanent Residents policies, as well as a provision that prohibits funds to be used to allow property confiscated by the Cuban Government to enter the United States.

House FY16 Homeland Security Appropriations Bill Text:

http://appropriations.house.gov/uploadedfiles/bills-114hr-fc-ap-fy2016-ap00-hsecurity.pdf

House FY16 Homeland Security Appropriations Report Language:

http://appropriations.house.gov/uploadedfiles/hrpt-114-hr-fy2016-hsecurity.pdf

OMB Director Donovan Letter to Chairman Rogers:

https://www.whitehouse.gov/sites/default/files/omb/legislative/letters/house-homeland-letter-rogers.pdf

Senate

The Senate Appropriations Committee has passed 11 of its 12 annual spending bills. Financial Services is the only FY16 bill that has not yet been considered by the subcommittee or full committee.

Agriculture

The Senate Appropriations Committee marked up and reported out its FY16 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations bill this week. The bill was considered in subcommittee on Tuesday and full committee on Thursday. The $143.8B ($20.5B discretionary and $123.3B mandatory) measure was passed by the full committee by a vote of 28 to 2. The bill is $24B ($1.1B discretionary) less than the President’s FY16 budget request and $3.7B ($65M discretionary) below the FY15 enacted level. In addition to a manager’s amendment, four amendments were adopted during committee consideration – Sen. Hoeven’s (R-ND) school meals amendment granting waivers to schools unable to meet the 100% whole-grain requirement, Sen. Feinstein’s (D-CA) captive marine mammals amendment, Sen. Murkowski’s (R-AK) genetically engineered salmon amendment, and a horse slaughter amendment offered by Sens. Udall (D-NM), Mikulski (D-MD), Kirk (R-IL), and Feinstein (D-CA).

Bill Text:

http://www.appropriations.senate.gov/sites/default/files/hearings/FY2016%20Agriculture%20Approps%20Bill.pdf

Report Language:

http://www.appropriations.senate.gov/sites/default/files/hearings/FY2016%20Agriculture%20Approps%20Report.pdf

Status of FY16 Appropriations Bills

Defense Business Board

Secretary of Defense Ashton Carter announced this week the appointment of eight new members to the Defense Business Board (DBB). The DBB was established in 2002 to provide the Secretary of Defense and other senior leaders of the Department of Defense with independent advice on best business practices for consideration and potential application to the Department.

The eight new members are:

• Mahlon (Sandy) Apgar, IV, asset advisor and former assistant secretary for installations and environment, Department of the Army
• Robert Holland, corporate director, managing partner, chief mentor and advisory board member of Essex Lake Group, LLC, and former CEO of Ben & Jerry’s
• Jerry MacArthur Hultin, senior presidential fellow of NYU and president emeritus of Polytechnic Institute of New York University
• William Swanson, chairman of the Massachusetts Competitive Partnership and former CEO of the Raytheon Corporation
• Lon Levin, president, SkySeven Ventures and cofounder of XM Satellite Radio
• John O’Connor, Chairman of J.H. Whitney Investment Management, LLC
• Gen. (ret.) Arnold Punaro, president, Punaro Group and former executive vice president of Science Applications International Corporation (SAIC)
• Atul Vashistha, founder & chairman, Neo Group

The current members of the DBB are:

• Michael Bayer, DBB chair and president and CEO, Dumbarton Strategies
• Nancy Killefer, DBB vice chair and former senior partner, McKinsey & Company Inc.
• Cynthia Trudell, DBB vice chair and executive vice president of Human Resources and Chief HR Officer, PepsiCo
• Denis Bovin, chairman and managing partner, Palimere Group, LLC
• Howard Cox, Jr., advisory partner, Greylock Partners
• Roxanne Decyk, former executive vice president, Royal Dutch Shell PLC
• Taylor Glover, president and CEO, Turner Enterprises, Inc.
• Shelly Lazarus, chairman emeritus, Ogilvy & Mather
• David Langstaff, former president and CEO, TASC, Inc.
• Emil Michael, senior vice president of business, Uber Technologies, Inc.
• Philip Odeen, former chairman, AES Corporation
• William Phillips, principal in charge, Federal Advisory Services, KPMG
• Mark Ronald, former president and CEO, BAE Systems, Inc.
• Kevin Walker, COO, Iberdrola USA
• Daniel Werfel, director of public sector practice, The Boston Consulting Group
• Joe Wright, executive director, Seamobile/MTN Satellite Communications
• Dov Zakheim, senior fellow, CNA Corporation
• Jack Zoeller, president and CEO, Cordia Bancorp

The DBB will convene its next meeting July 23.

Political Updates

One more Republican candidate threw his hat into the ring for the 2016 Presidential race – Wisconsin Governor Scott Walker. He joins the already crowded Republican field that includes Sen. Ted Cruz (R-TX), Sen. Rand Paul (R-KY), Sen. Marco Rubio (R-FL), Sen. Lindsey Graham (R-SC), Louisiana Governor Bobby Jindal, New Jersey Governor Chris Christie, former Texas Governor Rick Perry, former Florida Governor Jeb Bush, former HP CEO Carly Fiorina, businessman Donald Trump, retired neurosurgeon Ben Carson, former Arkansas Governor Mike Huckabee, former NY Governor George Pataki, and former Sen. Rick Santorum (R-PA). Ohio Governor John Kasich and former Virginia Governor Jim Gilmore are expected to announce their candidacies soon (July 21 for Kasich and August for Gilmore). On the Democrat side, the field now includes former Secretary of State Hillary Clinton, Sen. Bernie Sanders (I-VT), former Maryland Governor Martin O’Malley, former Rhode Island Governor and Senator (and former Republican) Lincoln Chaffee, and former Virginia Senator Jim Webb.

Rep. Todd Young (R-IN) announced that he will run for the open Senate seat in Indiana in 2016. Young is the third Republican to enter the race to replace retiring Sen. Dan Coats (R-IN).

President Obama nominated Susan Coppedge to be Director of the Office to Monitor and Combat Trafficking at the Department of State and Jessie Roberson to be a Commissioner on the Nuclear Regulatory Commission.

Defense Secretary Ash Carter named Arsenio Gumahad II to be Deputy Director of Intelligence, Surveillance and Reconnaissance in the Office of the Under Secretary of Defense, Acquisition, Technology and Logistics; Dr. Wendin Smith to be Deputy Assistant Secretary of Defense for Countering Weapons of Mass Destruction; Christopher Maier to be Deputy Assistant Secretary of Defense for Special Operations and Combating Terrorism; Andrew Exum to be Deputy Assistant Secretary of Defense for Middle East Policy; Aaron Hughes to be Deputy Assistant Secretary of Defense for Cyber Policy; Abraham Denmark to be Deputy Assistant Secretary of Defense, East Asia; and Maura Sullivan to be Assistant to the Secretary of Defense for Public Affairs in the Office of the Assistant to the Secretary of Defense for Public Affairs.

Next Week

The House will consider HR 1734, the Improving Coal Combustion Residuals Regulation Act and HR 1599, the Safe and Accurate Food Labeling Act. The Senate will take up a highway and transportation funding bill. The House may also consider the conference report for the FY16 National Defense Authorization Act conference. The Senate Finance Committee will mark up on Tuesday a $96B tax extenders package that will retroactively extend 52 expired provisions through the end of 2016.