Capital Intelligence is a legislative and policy update from the Hill.
Capital Intelligence

This Week in Washington
Compiled by Van Scoyoc Associates, Inc.
March 6, 2015

Top Stories of the Week

  • The House agrees to a Senate-passed “clean” DHS spending bill, signed by the President on March 4.
  • Israel’s Prime Minister Benjamin Netanyahu addresses a joint-session of Congress, creating tension with the White House and potentially threatening nuclear talks with Iran.
 
Congress Finally Funds DHS in FY 2015
 
The House on March 3 passed a bill to fully fund the Department of Homeland Security (DHS) through the end of Fiscal Year (FY) 2015 by a vote of 257-167.  To the ire of many Republicans, the bill does not include provisions to block President Obama's November 2014 executive actions on immigration.  Republicans wanted to use the bill to repeal the executive actions, but Democrats united against them and Republicans were unable to coalesce around an alternative strategy.  After a messy fight, several failed votes, and a one-week extension of DHS funding, a number of Republicans broke rank and joined with Democrats to pass the "clean" bill through an arcane legislative tactic.  The Senate passed the same bill on February 27.  President Obama signed the bill on March 4, accusing Congress of waiting "far too long" to fund critical homeland security operations.  Read more: Washington Post
 
Israeli Prime Minister Netanyahu Addresses Congress
 
On March 3, at the invitation of House Speaker John Boehner (R-OH), Israel’s Prime Minister Benjamin Netanyahu addressed a joint session of Congress.  The White House was frustrated with the address, as it was not consulted about the invitation and feared Netanyahu would undercut negotiations with Iran on a nuclear deal.  Adding to the tension, President Obama did not meet with the Prime Minister as the White House cited a policy of not meeting with heads of state just prior to that leader’s upcoming national election.  In addition, many congressional Democrats boycotted the Prime Minister’s speech believing it a partisan political stunt or because they support the ongoing nuclear negotiations with Iran.  In his congressional address, Netanyahu described the agreement being pursued by negotiators as one that "doesn't block Iran's path to the bomb; it paves Iran's path to the bomb.”  The Prime Minister’s speech highlighted Israel’s concern with a nuclear Iran, cast doubts on the President’s view that Iran can be a trusted partner in anti-ISIS activities, and concluded that a bad nuclear deal with Iran is worse than no deal at all.  By overtly opposing the coming deal, Netanyahu drove another wedge between a Republican-controlled Congress and a Democratic president who may view the deal with Iran as one of the most important initiatives of his second term.  Read more: Washington Post

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Look Ahead
  • The House will not be in session during the week of March 9.
  • Following on Prime Minister Netanyahu’s address, the Senate is expected to begin considering legislation introduced by Senators Bob Menendez (D-NJ) and Mark Kirk (R-IL) that would impose new sanctions on Iran if international negotiators fail to reach a deal on Tehran's nuclear program by June 30, 2015.  The legislation would also require the administration to formally submit the text of any new nuclear agreement or extension of talks to Congress within five days.  While there are currently 49 co-sponsors of the bill, the White House opposes it.
  • The Congressional Budget Office announced lawmakers will need to lift the legal cap on government borrowing (a.k.a., the Debt Ceiling) in October or November.  The Treasury Department is expected to begin using a series of “extraordinary measures” by mid-March in order to stave off default.
  • The current “doc fix” for the Medicare Sustainable Growth Rate (SGR) expires on April 1.  House Ways and Means Committee Chairman Paul Ryan (R-WI) indicated that a permanent replacement for the SGR formula will likely not pass prior to that date, resulting in another short-term fix.  If Congress fails to approve an extension, provider payments will be cut by 21 percent.
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Budget and Economy
 
February Jobs Report Shows Strong Gains
 
The Bureau of Labor Statistics reported on March 6 that the economy added 295,000 jobs in February, with the unemployment rate dropping from 5.7 percent to 5.5 percent.  February marks the 12th straight month of job gains over 200,000.  Wage growth disappointed, however, as average hourly earnings rose only 0.1% in February.  The largest job gains occurred in food and alcohol services and establishments, professional and business services, construction, healthcare, transportation, and warehousing.  January’s jobs report was slightly revised to show 239,000 jobs rather than the 257,000 that was initially reported.  Read more: Business Insider

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Education
 
NCLB Rewrite Pulled from Floor in House
 
On February 27, the House unexpectedly pulled consideration of H.R. 5, the Education and Workforce Committee re-write of the No Child Left Behind education authorization over concerns that it may not pass.  Conservative groups such as Club for Growth and Heritage Action expressed their disapproval of the bill, causing conservative support to wane.  Representative John Kline (R-MN), the Chair of the Education Committee, told the press he remains “very hopeful we’ll bring it up as soon as we get back because it’s already out there, we’ve already completed debate and amendments.”  Meanwhile, the Senate Health, Education, Labor and Pensions Committee continues to work on a bi-partisan rewrite of the federal education authorization.  Chairman Lamar Alexander (R-TN) says “the law is broken, and a lot of it’s our fault for leaving it eight years overdue.  It’s malpractice for us not to fix it, and that’s helping a lot because I think that’s recognized on both the Democratic and Republican sides.”  Read more: The Hill

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Health Care
 
Supreme Court Begins Hearing Arguments Over ACA Subsidies Case
 
The Supreme Court on March 4 took up King v. Burwell, the latest case against the Affordable Care Act (ACA), which surrounds the legality of providing subsidies to individuals and families who purchase health insurance in the federally-run exchange.  The challenger claims the law was written in a way that only those who purchase health care from a state-run exchange are eligible.  Should the challenger prevail, roughly seven million people would be forced to purchase insurance without financial assistance, many of whom would be unable to do so.  This could result in the collapse of insurance markets in about three dozen states, threatening the ACA.  The Court's four liberal members voiced strong support for the Administration's position, but Chief Justice John Roberts, who cast the deciding vote in the 2012 case regarding the individual mandate, remained mostly silent.  Justice Anthony M. Kennedy, a Regan appointee who is considered a swing vote on the Court, seems to remain in play.  "There's a serious constitutional problem if we adopt your argument," he told lawyers for the challengers.  Read more: New York Times

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In Other News
  • The Senate failed on March 4 to override President Obama’s veto of legislation to approve construction of the Keystone XL Pipeline by a vote of 62-37.  A two-thirds majority, or 67 votes, is required to override a veto.  Read more: Wall Street Journal
  • Congressional leadership named Keith Hall head of the Congressional Budget Office, placing a more conservative economist atop the agency in charge of determining how much bills would cost.  Read more: Politico
  • The House approved legislation on March 4 authorizing nearly $8 billion in funding for Amtrak.  Read more: The Hill
  • Senator Barbara Mikulski (D-MD), Ranking Member of the Senate Appropriations Committee, announced she will not seek re-election in 2016 and will retire in 2017 when her term ends.  Read more: New York Times

Information in this report was gathered by experts at Van Scoyoc Associates Inc., Washington's foremost government affairs firm. The information is believed reliable, but the firm assumes no responsibility for actions based on the provided information, analysis, and opinions. To read the entire disclaimer, please click here.
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