June 20, 2014
The House passed the FY15 Defense Appropriations bill. The Senate approved a number of judicial nominations and passed the Omnibus Territories Act of 2013 (S 1237). The Senate also began consideration of the FY15 Commerce-Justice-Science, Transportation HUD, and Agriculture “minibus” appropriations spending bill, but pulled it when they could not reach agreement on amendments.
FY2015 Appropriations
House
Defense
The House completed action on its fifth FY15 appropriations bill this week passing the FY15 Defense spending bill by a vote of 340 to 73. The $570.4 bill was considered under an open rule allowing any member to offer germane amendments. While there was no limit on the number of amendments (over 70 were offered), there was a 10-minute limit on the time to debate each one.
Several amendments were accepted including blocking the retirement of the A-10 Warthog aircraft, prohibiting the transfer of Guantanamo Bay detainees to foreign countries, shifting $5 million from Army Guard personnel accounts to O&M accounts to station soldiers along the southwest border, and barring the NSA from using funds to gain “backdoor” access to Americans’ information. The House rejected amendments to increase funding for Pentagon drug interdiction and counternarcotics activities, allow the Air Force to retire intercontinental ballistic missiles, and prohibit funds for US combat operations in Iraq.
In a Statement of Administration Policy issued this week, the White House raised multiple concerns with the bill but stopped short of a veto threat. The Administration objected to rejection of some of the administration’s cost-cutting proposals for the Department of Defense, restrictions on Guantanamo Bay detainee transfers, and plans to begin developing a domestic rocket engine to replace the Russian-made engines used on some United Launch Alliance rockets.
The bill included a placeholder of $79.4 billion for Overseas Contingency Operations (OCO) because the White House has not yet submitted a detailed war budget request to Congress. At a Senate Defense Appropriations subcommittee hearing this week, Defense Secretary Hagel said that they would soon propose an OCO budget for FY15. The budget may be sent to Congress just before both chambers leave for the July 4th recess. Hagel said that the FY15 OCO budget will cover costs related to Afghanistan and other operations as well as other costs related to CENTCOM operations in the Mideast. In addition, it will include up to $5 billion for a Counterterrorism Partnerships Fund and $1 billion for the European Reassurance Initiative.
Energy & Water
The House Appropriations Committee marked up their $34 billion FY15 Energy & Water spending bill in full committee this week and considered several amendments on hot-button issues. The committee rejected an amendment to strike language weakening the EPA waters rules in the bill. They adopted an amendment allowing individuals to carry firearms on Army Corps of Engineers lands. The committee also adopted amendments prohibiting funds to be used for DOE regulations on ceiling fans and adding report language clarifying a provision in the bill to protect pension plan contributions by the NNSA. The legislation provides annual funding for national defense nuclear weapons activities, the Army Corps of Engineers, various programs under the Department of Energy (DOE), and other related agencies. The bill is $50 million less than the FY14 enacted level and $327 million above the President’s FY15 request.
Financial Services
The House Financial Services Appropriations subcommittee marked up its $21.3 billion FY15 spending bill this week and approved it by voice vote. The bill provides annual funding for the Treasury Department, the Judiciary, the Small Business Administration, the Securities and Exchange Commission, and several other agencies. The bill is $566 million below the FY14 enacted level and $2.3 billion below the President’s request for FY15. The bill covers agencies implementing the 2010 Dodd-Frank financial regulatory overhaul, as well as parts of the Affordable Care Act (“Obamacare”) making it a potential lightening rod for controversial amendments when it is marked up in full committee next week. In the subcommittee’s bill, the IRS would receive $10.95 billion a 3%, or $341 million, reduction from its FY14 enacted level and $1.5 billion, or 12%, below the president’s FY15 budget request. The SEC would receive $1.4 billion for FY15 under the measure, an increase of $50 million from FY14 but $300 million below the president’s FY15 request.
State Foreign Operations
The State Foreign Operations Appropriations subcommittee marked up its $48.3 billion FY15 spending bill this week and approved it by voice vote. The bill is $708 million below the FY14 enacted level and $277 million below the president’s FY15 request. Within the $48.3 billion, OCO is funded at $5.9 billion and will support operations in Iraq, Afghanistan, and Pakistan, as well as stabilization and humanitarian efforts in areas of conflict around the globe. The bill gives priority to funding embassy security, aid to refugees, international security assistance and programs to promote democracy in Ukraine, the Middle East and Latin America. It seeks to reinstate the Mexico City policy that blocks aid to overseas agencies that promote or perform abortions, along with proposing other long-standing riders aimed at further defunding abortion and limiting family planning programs. And, it blocks foreign aid to any countries housing Guantanamo detainees unless the administration briefs Congress on the terms of any transfer agreement prior to implementation. The bill is likely to be a partisan battleground over international aid programs and dues payments to the United Nations when it is marked up in full committee next week.
House Appropriations Committee Next Week
The House Appropriations Committee is scheduled to consider the FY15 Financial Services and FY15 State Foreign Operations spending bills in full committee next week.
House Floor
House leaders have not decided which spending bill will be next considered on the House floor. They could return to the $20.9 FY15 Agriculture spending bill that was pulled from the floor last week after Rep. Eric Cantor (R-VA) lost his primary and Republican leaders shifted their focus to election of a new Majority Leader. Another option is to take up the FY15 Energy and Water spending bill, which would give Republicans the opportunity to offer amendments to block the new EPA carbon emission rules.
Senate
Commerce-Justice-Science, Transportation HUD, and Agriculture
The Senate began consideration of their first FY15 spending bills on the Senate floor this week with a minibus containing the FY15 CJS, Transportation HUD, and Agriculture spending bills. Senate Majority Leader Harry Reid (D-NV) had to pull the $126.2 billion measure from the floor after Republicans and Democrats could not reach agreement on amendments. Democrats were insisting that amendments require 60 votes to be adopted. Given the vast scope of the bill, it attracted amendments on topics including commercial use of drones, Guantanamo Bay prisoner transfers, school nutrition standards, trucker safety, alternative fuel vehicles, and court-appointed advocates for children. While all three bills passed out of committee with bipartisan support and consideration of the minibus bill got off to a good start earlier in the week with the Senate voting to invoke cloture by a roll call vote of 95 to 3, it is now unclear if the Senate will be able to complete action on the minibus bill.
Energy & Water
The Senate Energy & Water Appropriations Subcommittee marked up its $34.2 billion FY15 spending bill in subcommittee this week. The bill provides an increase of $148 million above the FY14 enacted level and an increase of $525 million above the President’s FY15 request level.
The bill was scheduled to be marked up in full committee on Thursday, but the mark up was postponed after Sen. Mitch McConnell (R-KY) indicated that he would offer an amendment that would effectively block the EPA’s recently announced carbon standards for existing power plants unless the administration confirms it won’t increase electricity costs or kill jobs. The amendment has a chance of prevailing given the breakdown of Democrats on the full committee; especially those who are facing tough reelection bids this year. The White House threatened to veto the measure if the amendment was included so Senate Appropriations Chairwoman Barbara Mikulski (D-MD) postponed full committee action.
Legislative Branch
The Senate Appropriations Committee met this week to mark up the non-controversial FY15 Legislative Branch spending bill. The bill marked up in the full committee would provide $4.3 billion for Senate operations and joint legislative branch agencies. Senate appropriators provided $42 million more than FY14 and $165 million less than the president’s FY15 budget request. GAO would receive $525.5 million under the Senate bill, a $20.1 million increase over FY14. CBO would get $46 million, a $360,000 increase from FY14 and $700,000 more than the House provided. The bill also provides the Architect of the Capitol with $600 million — a $2 million drop from current levels and $76.6 million below what was requested. It would, however, fully fund the fourth and final phase of the Capitol Dome restoration.
State Foreign Operations
The Senate Appropriations Committee marked up their $48.285 billion FY15 State Foreign Operations spending bill in subcommittee and full committee this week. Of this amount, $8.625 billion is for OCO in the frontline states of Afghanistan, Pakistan, and Iraq as well as other areas in political transition (Middle East and North Africa), and to respond to humanitarian emergencies (Syria, Somalia, South Sudan). The bill is $285 million below the President’s FY15 budget request and $716 million below the FY14 enacted level. Like the House bill, it provides $100 million in economic and security assistance to Ukraine and other former Soviet republics to counter Russian aggression. The committee also lifted the restriction on aid to foreign nongovernmental organizations that use non-US funds to counsel or perform abortions (the Mexico City policy). The House bill maintains the restriction. The Senate measure would provide Egypt with $1.15 billion in military and economic aid and $201 million for the United Nations Clean Technology Fund and the organization’s Strategic Climate Fund.
Labor HHS Education
Last week Senate Appropriations Chairwoman Barbara Mikulski (D-MD) cancelled a scheduled full committee markup of the FY15 Labor HHS Education spending bill. While committee Democrats blame scheduling blame, others have said that the markup was delayed because of concerns over potential controversial amendments, including those related to the Affordable Care Act (“Obamacare”). The subcommittee had approved the bill earlier in the week.
Senate Appropriations Committee Next Week
The Senate Appropriations Committee is scheduled to consider the FY15 Department of Homeland Security and FY15 Financial Services spending bills in subcommittee next Tuesday.
FY2015 Appropriations Bill Status
| Appropriations Subcommittee | House Action | Senate Action |
| Agriculture, Rural Development, FDA and Related Agencies | Subcommittee: May 20
Full Committee: May 29 Floor: postponed |
Subcommittee: May 20
Full Committee: May 22 Floor: postponed |
| Commerce, Justice, Science, and Related Agencies | Subcommittee: April 30
Full Committee: May 8 House Floor: May 29 |
Subcommittee: June 3
Full Committee: June 5 Floor: postponed |
| Defense | Subcommittee: May 30
Full Committee: June 10 Floor: June 20 |
Subcommittee: Week of July 7 |
| Energy and Water Development, and Related Agencies | Subcommittee: June 10
Full Committee: June 18 |
Subcommittee: June 17
Full Committee: postponed |
| Financial Services and General Government | Subcommittee: June 18
Full Committee: June 25 |
Subcommittee: June 24 |
| Homeland Security | Subcommittee: May 28
Full Committee: June 11 |
Subcommittee: June 24 |
| Interior | ||
| Labor, HHS, Education, and Related Agencies | Subcommittee: June 10
Full Committee: postponed |
|
| Legislative Branch | Subcommittee: April 3
Full Committee: April 9 Floor: May 1 |
Full Committee: June 19 |
| Military Construction, Veterans Affairs, and Related Agencies | Subcommittee: April 3
Full Committee: April 9 Floor: April 30 |
Subcommittee: May 20
Full Committee: May 22 |
| State, Foreign Operations, and Related Programs | Subcommittee: June 17
Full Committee: June 24 |
Subcommittee: June 17
Full Committee: June 19 |
| Transportation, HUD, and Related Agencies | Subcommittee: May 7
Full Committee: May 21 Floor: June 10 |
Subcommittee: June 3
Full Committee: June 5 Floor: postponed |
Veterans’ Access to Care
The House and Senate appointed conferees to HR 3230, the Veterans’ Access to Care through Choice, Accountability, and Transparency Act of 2014. The conferees are charged with reaching agreement on VA accountability and emergency care measures.
Senate conferees include: Sens. Bernie Sanders (I-VT), Jay Rockefeller (D-WV), Patty Murray (D-WA), Sherrod Brown (D-OH), Jon Tester (D-MT), Mark Begich (D-AK), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Richard Burr (R-NC), Isakson (R-GA), Johanns (R-NE), McCain (R-AZ), Coburn (R-OK), and Rubio (R-FL).
House conferees include: Reps. Jeff Miller (R-FL), chairman of the House Veterans Affairs Committee, Doug Lamborn (R-CO), Phil Roe (R-TN), Bill Flores (R-TX), Dan Benishek (R-MI), Mike Coffman (R-CO), Brad Wenstrup (R-OH), Jackie Walorski (R-IN), Mike Michaud (D-ME), Corrine Brown (D-FL), Mark Takano (D-CA), Julia Brownley (D-CA), Ann Kirkpatrick (D-AZ), and Tim Walz (D-MN).
The Congressional Budget Office (CBO) released an estimate of the House version of the bill this week saying that the measure could eventually cost $54 billion a year if fully implemented. In comparison, the Senate version would cost $50 billion a year. Neither bill is fully offset. These new cost estimates could complicate the conference negotiation process.
Cybersecurity
Senate Intelligence Committee Cybersecurity Information Sharing Act
Senate Intelligence Chairwoman Dianne Feinstein (D-CA) and ranking member Saxby Chambliss (R-GA) released a draft cybersecurity bill, the Cybersecurity Information Sharing Act, on Tuesday. The committee is expected to vote on the bill next week.
The bill makes it easier for companies to share information on a voluntary basis about cyber threats and cyber countermeasures by removing legal barriers, while also offering liability protection to companies that participate in the information sharing program. It authorizes and provides liability protection for companies to monitor their networks. And, it directs the federal government to share information with the private sector at the classified and unclassified levels, consistent with protections of sources and methods.
The bill also attempts to provide protections to prevent privacy intrusions by requiring companies sharing cyber information to remove personally identifying information before sharing it with the government, and requiring that any information shared with the government in real time be given to the Department of Homeland Security. The Attorney General would be required to write procedures to limit the government’s use of cyber information to appropriate cyber purposes and to ensure privacy protections are in place. And, the bill would require reports by the Privacy and Civil Liberties Oversight Board and relevant federal agency inspectors general.
While the senators included provisions aimed at easing the concerns of privacy advocates, they haven’t won them over yet. The ACLU is concerned that shared information could be used for criminal investigations, including leaks of national security information. They are also concerned that the NSA and other intelligence agencies could gain access to the data.
A copy of the bill can be found at:
https://www.vantagepointstrat.com/?p=213
FCC and Cybersecurity
In response to FCC Chairman Tom Wheeler’s speech at the American Enterprise Institute last week where he unveiled a new cybersecurity paradigm for the nation’s communications networks and warned communication companies to take cybersecurity more seriously if they want to avoid new regulations on their networks, House Intelligence Committee Chairman Mike Rogers (R-MI) sent a letter to Wheeler this week. In the letter, Rogers and Rep. Mike Pompeo (R-KS) expressed concerns that the FCC may be preparing to implement a new regulatory scheme that would significantly affect ISPs and other web service providers. They warned Wheeler that the private sector should lead the charge against cyber threats and prescriptive regulations would only get in the way. They also raised objections to the cybersecurity provisions in the FCC’s FY15 budget request, which included substantial funding increases for cybersecurity activities, including funding for “Big Data Cybersecurity Analytics and a Cybersecurity Metrics” program.
A copy of the letter can be found at:
https://www.vantagepointstrat.com/?p=214
Political Updates
Rep. Kevin McCarthy (R-CA) was elected by his Republican colleagues yesterday as the new House Majority Leader replacing Rep. Eric Cantor (R-VA) who unexpectedly lost his primary for reelection earlier this month. Cantor will step down on July 31. McCarthy beat out Rep. Raul Labrador (R-ID) for the leadership position. McCarthy’s ascension in rank opened up his current position as Majority Whip. Three Republicans were vying for the position: Rep. Peter Roskam (R-IL), Rep. Steve Scalise (R-LA), and Rep. Marlin Stutzman (R-IN). Scalise, Chairman of the Republican Study Conference, won the Majority Whip position on the first ballot.
The Transportation Security Administration announced this week that Melvin Carraway will become deputy administrator July 13. He replaces Deputy Administrator John Halinski, who is retiring. Carraway currently serves as TSA supervisory federal air marshal in charge, Dallas field office.
The Department of Homeland Security’s chief procurement officer, Nick Nayak, plans to resign next month after three-and-a-half years on the job. His replacement hasn’t been chosen. During his tenure, Nayak oversaw the award of a number of major contracting vehicles, including the $11 billion Technical, Acquisition and Business Support Services contract, the $3 billion Tactical Communications contract, the $3 billion FirstSource II contract, and Eagle II. Nayak will take some time off before exploring opportunities with the private sector.
Christine Wormuth was confirmed by voice vote to be Under Secretary of Defense in the full Senate this week.
In a memo to agency staff yesterday, Deputy Energy Secretary Dan Poneman announced that he would be leaving the department this fall and heading to Harvard University, where he earned his bachelor’s and law degrees.
President Obama announced his intention to nominate Carolyn Watts Colvin as Commissioner of Social Security today. Colvin is currently Deputy Commissioner of Social Security for the Social Security Administration (SSA), a position she has held since January 2011. She has also served as Acting Commissioner of Social Security since February 2013. Previously, she has served as the Secretary of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, Special Assistant to the Secretary of Transportation for Maryland, Chief Executive Officer of Amerigroup Community Care of DC, Director of the Montgomery County Department of Health and Human Services, and Director of the District of Columbia Department of Health and Human.
Next Week
The House will consider HR 4413, the Customer Protection and End User Relief Act as well as three energy bills: HR 6, the Domestic Prosperity and Global Freedom Act; HR 3301, the North American Energy Infrastructure Act; and HR 4899, the Lowering Gasoline Prices to Fuel an America that Works Act. The Senate schedule for next week is unclear at this time as Senate leaders had set aside time to finish consideration of the FY15 CJS, THUD, Agriculture minibus appropriations bill. They may take up S 2363, the Bipartisan Sportsmen’s Act.