January 29, 2010
J.R. Reskovac
Sarah Strup
Appropriations- Debt Limit
Thursday, the Senate voted 60-39 to pass a $1.9 trillion increase in the debt ceiling after also voting to adopt an amendment to restore pay-as-you-go budget rules into law. Under a bipartisan agreement, 60 votes were needed to adopt any amendment and to pass the measure. House action to clear the measure for the president's signature is expected next week.
Transportation
Senate Democratic leaders are considering a strategy that would split their job-creation effort into separate legislative measures, the first of which would be a “tight” package limited to several transportation matters and a business tax credit for new hires. The initial bill is designed to win Republican support, with a later bill tapping Troubled Asset Relief Program (TARP) funds to pay for additional infrastructure spending, Senator Boxer (D-CA) said January 27.
While the measure has not yet been finalized, Boxer said it will include an extension of current transportation policy through December, a transfer of about $20 billion in general fund money to build up the depleted Highway Trust Fund that pays for road and transit work, and additional funding for Build America Bonds, low-interest bonds that states and localities use to finance transportation and other infrastructure projects. It also will include a one-year, two-tiered tax credit benefiting companies that hire new employees.
A second jobs package would include additional funding for highway and transit projects. The transportation and other infrastructure spending levels could mimic those several recent drafts that have been circulating around Senate offices, the most recent of which includes more than $25 billion for transportation infrastructure (16 DER A-25, 1/27/10).
While the Senate's transportation infrastructure funding may be held for a second legislative vehicle, early indications show some major differences compared to the House version. The House bill included $37.3 billion for transportation projects, compared with around $25 billion in recent Senate drafts. An early Senate proposal dated January 22 showed $14 billion for highways, far less than the House bill's $27.5 billion level. A House Transportation subcommittee has already approved a six-year, $500 billion reauthorization (120 DER A-22, 6/25/09).
The current funding method for transportation projects is a motor fuels tax that continues to bring in less money year after year. One alternate funding option being considered is a vehicle miles traveled (VMT) tax to replace the existing gas tax or a fee on oil or stock transactions. While the Senate's proposed funding levels differ from the House-passed version, the two chambers are closely aligned on the non-spending transportation provisions, making reconciliation on those issues fairly simple. The general fund transfer cited by Boxer also was included in the House jobs bill (H.R. 2847), at the level of $19.5 billion. It also would make several changes to allow the Highway Trust Fund to collect interest on its balance and to remove the fund's obligation to pay refunds stemming from motor fuel tax exemptions, measures that could increase the fund by several billion dollars each year. The Senate is expected to back those changes, as they mirror legislation (S. 1474) backed by Senate Finance Committee Chairman Baucus (D-MT).
The transportation policy extension in the Senate bill is three months longer than the House-passed bill, which runs through September 30. Current policy is slated to expire February 28. Whatever extension materializes from House and Senate talks will serve as the newest deadline for work on a multiyear highway and transit policy rewrite and funding increase that has been held up in Congress since last summer.
Washington Outlook
House and Senate Democrats are eager to wrap up their work on healthcare overhaul legislation and turn their focus to job creation and the economy. While still caught in a struggle with the Senate over a final comprehensive health bill, Democratic leaders in the House appear ready to settle for a strategy of passing less comprehensive components as stand-alone bills. One of those measures, which would repeal the health-insurance industry's antitrust exemption, could come to a vote as early as next week.
Aides to Majority Leader Hoyer said House floor action is possible on Senate changes to House-passed legislation that would raise the federal debt limit and on a bill to reauthorize National Science Foundation programs to protect computer networks from hackers and other security breaches.
Senate Democrats also want their primary focus to be on job-creation bills between now and Election Day.
Senate Democratic leaders are considering breaking a jobs bill crafted by Senate Majority Whip Durbin and Senator Dorgan (D-ND) into pieces and moving those pieces separately.
"We recognize that if we introduce a package of that sort that it may not be possible to pass an entire package, so what we might want to do then is take pieces of it and move them individually," Dorgan said.
Democrats said both long-term and short-term job-creation bills will move this year.
Democrats believe that if Republicans oppose the bills, it would anger a public upset by continued unemployment. From that standpoint, breaking the package into multiple bills would prolong the focus on an issue Democrats believe will be a winner with voters.
Senate Majority Leader Reid said a Senate Democratic bill will be rolled out next week and that he hopes to begin consideration of the bill before the Presidents Day recess in mid-Februrary, aides said. The Senate will not have votes Wednesday because Democrats will hold their annual issues retreat at the Newseum.
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Sarah Strup
Capitol Decisions
Suite 675 East
101 Constitution Ave, NW
Washington, DC 20001
Phone: 202-737-8727
Fax: 202-638-0353
