Gary Goldberg

It’s a new day at the Financial Services Committee. But what does it mean for policy?

With the change in control of the House of Representatives, there has been a massive change in the agenda of the Financial Services Committee.  There also is an improved relationship between the new Chair and new Ranking Member of the Committee from that in the last Congress which has already resulted in House passage of about ten noncontroversial Financial Services Committee bills and which could improve the chances for passage of some bipartisan legislation including long-term reauthorizations of some expiring programs .  However, there appears to be quite limited overlap between the Financial Services Committee’s agenda and the agenda of Senate Banking Committee Chairman Mike Crapo (R-ID). 

Thus, apart from those noncontroversial bills that are passed under suspension of the rules, many, if not most, of the bills that the Financial Services Committee reports and the House eventually passes in this Congress will be “messaging” bills that are destined to die in the Senate, such as HR 1500, the Consumers First Act , a bill designed to protect the Consumer Financial Protection Bureau (CFPB) from what Democrats see as  the Trump White House’s anti-consumer agenda and a Republican assault on the CFPB’s mission, and HR 1856, the Ending Homelessness Act.  Most of these bills will not even be taken up by the Banking Committee. 

Financial Services Committee Chairwoman Maxine Waters (D-CA) says that her  focus is on protecting consumers from harmful financial practices, ensuring that there are strong safeguards in place to prevent a financial crisis, expanding and supporting affordable housing and tackling the homelessness crisis, encouraging responsible innovation in financial technology while protecting against abusive payday lending practices, promoting diversity and inclusion in the financial services sector including through the creation of a Diversity and Inclusion Subcommittee , comprehensively reforming or, if necessary replacing, the credit reporting system and making sure that Americans and small businesses have fair access to the financial system. 

Chairwoman Waters also has laid out a set of core principles that she says should be part of legislative efforts to address the future of housing finance reform, with a particular emphasis on maintaining access to the 30-year fixed rate mortgage and to affordable mortgage credit, ensuring sufficient private capital is in place to protect taxpayers, and ensuring that underserved borrowers and communities are not overlooked

In contrast, Banking Committee Chairman Crapo’s agenda is somewhat more narrow.  He has declared pursuit of housing finance reform legislation to be his highest priority and says that the Banking Committee will determine how it can fix the housing finance system, establish appropriate levels of taxpayer protection, preserve the 30-year fixed rate mortgage,  increase competition among mortgage guarantors  and promote access to affordable housing..  He wants to ensure that the agencies effectively implement the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA),the regulatory relief law enacted last year and also wants to pursue additional legislative proposals to promote capital formation and economic growth  and better corporate governance while reducing regulatory burden.

Chairman Crapo is also not a big fan of the CFPB and wants to explore whether the CFPB should funded through the regular appropriations process and whether a commission, rather than a single Director, would allow the Bureau to pursue its mission more effectively.  Noting that the most recent NFIP reauthorization expires on May 31, he says that  any comprehensive reforms to the NFIP must achieve the appropriate balance of protecting taxpayers and assisting consumers.  He also, along with Ranking Member Sherrod Brown, has posed a series of questions and invited public comment about what types of potential data privacy legislation would give consumers more control over and enhance the protection of consumer financial data that is collected about them and ensure that consumers are notified of breaches in a timely and consistent manner. 

While both Chairwoman Waters and Chairman Crapo have expressed interest in housing  finance reform and in February the White House has published its principles for such reform, it will be a very heavy lift, especially with the 2020 presidential election on the horizon, to pass GSE reform legislation in this Congress.  With the recent confirmation of Mark Calabria, a long-time critic of Fannie Mae and Freddie Mac, as Director of the Federal Housing Finance Agency (FHFA), the open question is how much GSE reform can be accomplished through administrative action and degree to which legislation will be required. 

Assuming that enactment of GSE reform legislation remains a pipe dream, except for possible reauthorizations of the National Flood Insurance Program (NFIP), the Terrorism Risk Insurance Act (TRIA),  and the Export-Import Bank, and potential passage of HR 1595, the SAFE Banking Act of 2019, a cannabis banking bill with 165 House sponsors and 22 Senate sponsors, if Leader McConnell will allow the bill to be considered by the Senate, the prospects for the enactment of significant financial services legislation in this Congress currently appear limited. 

As Congress returns: Debt limit, appropriations

Of all the five-alarm fires brewing already in September, the debt limit might be the most pressing. Administration officials have indicated a desire for a “clean” (read: no policy changes to entitlement programs) bill. For a clean bill to pass the House, Democratic members will have to support that package as conservative members of the GOP caucus will not vote to raise the limit without the inclusion of entitlement reform in the package.

FY18 Appropriations

With the fiscal year ending September 30, 2017, the House has passed four appropriations bills and still has eight that have yet to make it across the floor. The Senate, for its part, has yet to pass any of its bills. Complicating the situation is President Trump’s desire to see included in the package funding for a wall along our southern border.

As talk of a government shutdown heats up, the expectation is that the House will wrap the remaining eight bills into a single package and send it to the Senate. Reports also indicate that the Senate has no intention of acting on it, or on the earlier package sent to them by the House. The expectation is for a continuing resolution to be debated that effectively allows the House and Senate more time to finish—or in some cases start—their work.

As Congress returns: Harvey supplemental funding, flood insurance reauth

The results of Hurricane Harvey’s historic landfall will certainly eclipse the combined economic and insurance losses associated with Hurricane Katrina, making it the costliest natural disaster in US history. Reports indicate that, in the short term, the House leadership is considering a down payment to ensure immediate needs are met. These types of “supplementals” often draw conservative ire because they are usually not offset by spending cuts elsewhere, as was the case with Hurricane Sandy, which battered the East Coast in 2012.

US House of Representatives Financial Services Committee Chair Jeb Hensarling (R-TX5) has drafted a package of bills that reauthorizes the flood insurance program for five years. The package downsizes the program’s foot print, raises what policyholders pay and makes it easier for private companies to compete. GOP members from flood-prone districts have criticized this approach. To date the program is $24.6 billion in debt.

This seems to indicate a short-term extension past the September 30, 2017, expiration date.

Border Adjustment Dropped from GOP Tax Plan

Bowing to the demands of major retailers, whose claims were buoyed by conservative activists like import-reliant Koch brothers, the White House and Republican Congressional leadership officially confirmed late last week in a joint statement what had long been rumored: a border adjustment tax will not be used as a pay-for in the tax reform program Republicans hope to pursue this fall.

In the joint statement, the so-called “Big 6” (Speaker Paul Ryan (R-WI), Chairman Kevin Brady (R-TX), Finance Committee Chairman Orrin Hatch (R-UT), Majority Leader Mitch McConnell (R-KY), Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn) stated: “While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.” In an interview yesterday, Chairman Brady said that he still thinks border adjustment is the best solution for keeping jobs in America, but that “… in order for us unify, it was important to set it aside for now.”

As the border adjustment tax proposal was estimated to raise between $1 trillion and $1.2 trillion in revenue that could be used to lower tax rates, law makers will have to identify alternative revenue sources if they wish to lower tax rates without increasing the deficit. Apart from abandoning a border adjustment tax, the joint statement did not address such key issues as the level at which tax rates should be set, whether businesses would continue to be able to deduct their interest expenses and how best to incentivize US companies from moving their operations overseas. Instead, the joint statement simply pledged Republican support for the principles of reducing rates, simplifying the tax code and using the tax system to improve economic growth.

The joint statement reveals that the parties’ expectation is for ” … legislation to move through the committees this fall, followed by consideration on the House and Senate floors.” While the joint statement authors express the hope that Congressional Democrats will join them in this effort, and suggest some openness to pursuing tax reform on a bipartisan basis unlike the just-failed Republican effort to repeal Obamacare, it should be noted that Republicans once again plan to use the reconciliation process in their pursuit of tax reform – a process that can have the effect of reducing the need for bipartisan cooperation. Moreover, given the very contentious course of dealing in recent years in the Ways & Means Committee and the Finance Committee, it does not yet seem that a foundation has been laid for bipartisan cooperation on tax reform issues.

Washington’s week ahead: July 17

In the latest of a string of setbacks, ObamaCare reconciliation vote delayed in the Senate as Arizona Senator John McCain is treated for a blood clot… Don Jr., and others, met with Russian promising “very high level and sensitive information”… Approps Omnibus package gains steam – pre whip count – in House… POTUS celebrates Bastille Day in Paris with French President Macron… Federal Judge in Hawaii loosens Trump temporary travel ban… CBO says Trump ’18 budget will not balance in a decade, contrary to WH estimates… FBI nominee Wray testifies before Senate Judiciary Committee… House Appropriations Committee releases spending bill with $1.6 bill for border wall… Former FBI Director Comey signs book deal… POTUS approval rating after six months in office is the lowest of any president in the past 70 years, according to a new poll… And K Street scrambles to rebook flights out of town as Leader McConnell takes back 2 weeks of recess…

THE WEEK AHEAD:   The White House dubs this “Make in America Week”… CBO score due for repeal 2.0..House Budget Committee to mark up… House whips Approps Omni package…

POTUS:   POTUS  announced the appointment of Ty Cobb–no not that one: a veteran Washington lawyer with experience as a federal prosecutor and defense attorney–as special counsel at the White House

CONGRESS:  The House Dress Code gets an update. The conservative firebrand credited with pressuring then-Speaker John Boehner (R-Ohio) to resign in 2015 issued a warning Thursday to Senate Majority Leader Mitch McConnell (R-Ky.) and his establishment allies.. Rep. Brad Sherman (D-Calif.) formally introduced an article of impeachment against President Trump on Wednesday.

THE COURT:   Partisan map makers beware, the Supreme Court is set to take a serious look at partisan gerrymandering with a case that could jeopardize voter maps across the country and help Democrats regain control of Congress

APPROPRIATIONS:  House GOP leaders will return to Washington this week with hopes of passing a budget resolution and a 12-bill omnibus before leaving town for the August recess.

CYBER:  Major technology companies and tech advocacy organizations are banding together in a last-ditch effort to save the Federal Communication Commission’s net neutrality rules.

ENERGY:  House appropriators diverged from President Donald Trump’s budget proposal by minimizing cuts to the Interior Department and the EPA’s budget as part of the energy and water appropriations bill.

ENVIRONMENT:  The Environmental Protection Agency asked for a 52-day delay from having to enforce the Obama-era regulation for the venting and flaring of methane, a critical greenhouse gas, after a court ruled against the agency. The U.S. Court of Appeals for the District of Columbia Circuit granted a 14-day stay while the EPA considers further legal action.. A bipartisan group on the House side protected the need to study climate change as part of national security as part of the National Defense Authorization Act, striking down an amendment that opposed it.

HEALTH:  It’s unclear whether Senate Republicans have the votes to win on a key procedural motion that would allow them to debate the new healthcare bill they released on Thursday.  Here is what has changed in the new version and a look at who got what. 

RUSSIA INVESTIGATION: Trumpland lawyers up… Calls for Kushner to loser his security clearance have mounted, as congressional investigators probe whether the Trump campaign’s digital operation — run by the president’s son-in-law — coordinated efforts with Russian bots spreading fake news about Hillary Clinton.  The Federal Election Commission (FEC) is sharply divided over how the election watchdog agency should respond to Russian interference in the U.S. election as more revelations come to light about foreign meddling during 2016.

RUSSIAN SANCTIONS:  Lawmakers are growing increasingly frustrated with a series of procedural spats that are stalling new Russia sanctions in the House amid mounting concerns about Moscow’s election meddling.

TRADE:  Energy Department Secretary Rick Perry visited his counterpart in the Mexican government to discuss trade relations and cross-border electricity transmission as part of a broader discussion on North American energy strategy.

TRAVEL BAN: The Trump administration asked the Supreme Court on Friday to block a federal judge’s ruling that grandparents of U.S. citizens and refugees already being processed for resettlement are exempt from President Trump’s travel ban. 

CONFIRMATION UPDATE: Office for Regulatory Affairs  PREVIOUSLY CONFIRMED- FEMA Administrator  Deputy Secretary of State, Associate Attorney General, Deputy Secretary of Transportation,  Sec. of Air Force, FDA Commissioner, US Trade Representative Chairman of the SEC,  Sec of Agriculture, Sec of Labor   Associate Justice of the Supreme Court , Amb. To Israel  Admin of CMS, Director of National Intelligence, Sec. of HUD, Sec. of Energy, Sec of Interior,  Sec. of Treasury, OMB Director,  Attorney General, Sec. of Education, Sec of Veteran’s Affairs , EPA Administrator, Small Business Admin, Sec. of HHS, Sec. of State, Sec of Transportation, Director of CIA, Sec. of Defense, Amb. to the UN, Sec. of Homeland,  Sec. of Commerce  

PRESIDENTIAL MEMORANDUM & EXECUTIVE ORDER TRACKER:   Presidential Memoranda Cuba  Jerusalem Embassy Act  Stabilization of Iraq  Aluminum Imports    Offshore Drilling, VA Accountability, Local Control of Education, Review of Antiquities Act, Rural American Prosperity : Orderly Liquidation Authority, Financial Stability Oversight Council, Steel Imports and Threats to National Security  Executive Branch Re-Org    Travel Ban 2.0 Memo for USSS, USAG, USSHS     Fiduciary Duty RuleNational Security Council,  Defeat ISIL,   Pipeline Construction, American Pipe,  Domestic Manufacturing,  TPP, Hiring Freeze, Mexico City (Abortion), Memo to Executive Departments and Agencies  Executive Orders: North Korea   Western Balkans Cyber security    Election Integrity   Promoting Free Speech & Religious Liberty Identifying Tax Burdens, Buy American and Hire American  Principles for Reforming the Military selective Service Process  Climate,   Addiction & Opioid Crisis , Report on Trade Deficits,  Trade Enforcement Travel Ban 2.0  Regulatory Reform Task Forces,  Crime Reduction, Drug Cartels, Law Enforcement protection, DOJ Succession,  Dodd Frank,  2 for 1 Reg,    Border and Immigration Enforcement, ObamaCare, Public Safety, Expediting Environmental Review Process, Visa Restrictions

 

Congress seeks elusive consensus before summer recess

Barring cancellation of a portion or all of the scheduled summer recess—an event not currently expected despite the requests of several Republican senators and House members, as well as conservative media personalities—the House, when it returns for legislative business on July 11, will be in session for only 13 days before leaving on July 28, not to return till September 5. The Senate returns a day earlier, on July 10, and is scheduled to be in session for 15 days before also leaving for summer recess on July 28 and returning on September 5.

Below is an overview of some of the matters that may receive Congressional consideration before the end of July and our assessment of their current prospects.

Health care reform legislation

Senate GOP leadership decided on June 27 to delay consideration of the Better Care Reconciliation Act (BCRA), their proposed legislation to repeal and replace Obamacare. After several GOP senators stated their opposition to the BCRA draft, Senate Majority Leader Mitch McConnell (R-KY) was short of the votes he needed to bring the bill to the Senate floor. He has now spent his 4th of July holiday on the very challenging task of threading the needle and making changes to the BCRA that can win the votes of 50 Republican Senators to bring such health care legislation to the Senate floor and pass it.

To do so, Leader McConnell must address the concerns of conservative Republican Senators who say that the current version of the BCRA does not repeal and replace enough of the Affordable Care Act. At the same time, Leader McConnell also must be responsive to those moderate Republican Senators who say, among other things, that the cuts to Medicaid under the bill ($772 billion) are far too severe.   In addition, the CBO score that the bill would result in an estimated 22 million additional uninsured persons by 2026 is an attention-grabbing headline that has stoked public opposition to the bill.

Leader McConnell wants to bring a revised repeal-and-replace bill to the floor as soon as possible after the July 4th recess   The Congressional Budget Office is currently reviewing legislative language sent by Leader McConnell and will score the fiscal impact of these potential changes to the BCRA bill. The Senate parliamentarian will also have to consider whether these proposed changes can properly be raised in a reconciliation bill. These factors are likely to push any roll call on a revised BCRA bill to the last half of July, either during the weeks of July 17 or July 24, rather than immediately after the July 4 recess.

It currently seems as if any overture that Leader McConnell makes to either the conservative or more moderate wings of his Conference in an effort to win votes for the bill threatens the willingness of the other wing to support it. The key open question is whether Leader McConnell, an extremely skilled legislative tactician and veteran horse trader, can craft a compromise that will attract enough votes from both conservative and moderate Republican Senators to get to 50 votes.

The passage, or the abandonment, of Affordable Care Act (ACA) repeal-and-replace legislation, and when these events occur, is likely to have an enormous impact on the timing, the terms, and the likelihood of success for many key elements of the Republican legislative agenda. If the status of ACA repeal-and-replace legislation is not resolved until the final week in July, it surely will delay consideration of many of the subjects that Congressional Republicans hoped to consider before leaving at the end of July for their summer recess.

FY18 budget resolution

Because adoption of a fiscal year 2018 budget resolution will vitiate the reconciliation process of the FY17 budget resolution under which ACA repeal-and-replace legislation currently is being considered, the House will not adopt an FY18 budget resolution until it is definitively determined whether ACA repeal-and-replace legislation can be enacted through use of the reconciliation process.

House Budget Committee Chair Diane Black (R-TN) has been unable to finalize a budget because conservatives are demanding huge cuts to mandatory programs, such as food stamps. No agreement presently exists on how to spread the pain of the $200 billion in mandatory spending cuts (down from $500 billion in Chairman Black’s initial draft) that are necessary to offset the cost of the additional military spending that Black proposes. Republican moderates with concerns about the budget resolution say passage of such a resolution will make it more difficult to pass tax reform. Even if the House Budget Committee manages to push through a budget resolution at some point in July, it’s unclear whether it will be able to attract enough support from Republican moderates to make it through the House.

The Tuesday Group (moderate Republicans), because of their concern about the impact of entitlement cuts, particularly to Medicaid, on the public, and their belief that these mandatory spending cuts could “imperil tax reform,” has asked House Speaker Paul Ryan to delay consideration of a budget until health care legislation is passed or abandoned so that the members have a clearer idea of what the fiscal picture looks like. They have threatened to oppose the curbs in entitlement spending unless there is a bipartisan deal to increase spending caps. At the other end of the spectrum within the House Republican Conference, Freedom Caucus members say that they will back an FY18 budget resolution only if it cuts mandatory programs, including Medicaid and food stamps. (The Freedom Caucus and the Tuesday Group each represent enough House Republicans that either group’s opposition to an FY18 budget resolution would be sufficient to bring about its defeat.)

Moderates say that the budget resolution’s proposed $621.5 billion in defense spending (not including war funds) also would violate the law by exceeding the $548 billion cap on defense spending for FY18 under the Deficit Reduction Act.

FY18 appropriations bills

The continuing struggle over ACA repeal-and-replace legislation has delayed consideration of an FY18 budget resolution. The failure to adopt an FY18 budget resolution has left the Appropriations Committees in the dark as to the overall level of resources that will be available for spending in FY18. As a result, the FY18 appropriations bills are being marked up without any section 301 overall spending limit or any section 302(b)s divvying up the overall spending limits among the various appropriations bills.

The foregoing factors have led to a backlog in the appropriations process. With only 25 legislative days remaining in the House before FY17 ends on September 30, the House Appropriations Committee has now marked up about half of the bills and has reported to the House only its version of the FY18 Military Construction and Veterans Affairs Appropriations bill. With 27 legislative days remaining in the Senate until the FY17 fiscal year expires on September 30, the Senate Appropriations Committee has yet to mark up and report to the Senate any of the FY18 appropriations bills.

This backlog has led some House Republicans to propose that some or all of the appropriations bills be packaged in a single bill to be taken up by the House before the August recess as a way to accelerate consideration of the FY18 bills. Whether the House Republican leadership elects to move forward with such an omnibus appropriations bill, the delays in the appropriations process and the inactivity to date in the Senate on appropriations bills make it highly likely that a continuing resolution will be required to fund the federal government’s operations after September 30 and avoid a government shutdown.

Debt ceiling increase

Treasury Secretary Stephen Mnuchin wants the debt ceiling raised before the summer recess and a vote on raising the debt limit may be held immediately before the long August recess if health care has been dealt with by the end of the month, though it could slip to September if Treasury offers reassurances to Hill leaders that such a timeline would work. (The Congressional Budget Office says that, currently, extraordinary measures can get Treasury to October before the debt ceiling is reached.)

Health care has to get done first says House Majority Leader Kevin McCarthy (R-CA). The unanswered question is whether a coalition of Democratic and Republican members can be mobilized to pass a “clean” debt ceiling increase or whether Congressional Republicans will attempt the far more difficult task of tying an increase in the debt ceiling to the adoption of further spending cuts.

Tax reform

Comprehensive tax reform legislation is not expected to be introduced and considered by Congress before the summer recess. The Big Six—Treasury Secretary Mnuchin, National Economic Council Director Gary Cohn, Speaker Ryan, Senate Majority Leader Mitch McConnell, House Ways and Means Committee Chairman Kevin Brady and Senate Finance Committee Chairman Orrin Hatch—have been meeting to discuss tax reform, with the goal of reaching agreement on a framework to be considered by the House and the Senate this fall.

Meanwhile, Ways and Means will hold tax reform hearings in July, with a hearing on how tax reform will help small businesses grow and create jobs already scheduled for July 13. The Senate Finance Committee, for its part, will begin considering comments it has received as a result of Chairman Hatch’s June 16 request for submissions and recommendations for tax reform (Chairman Hatch’s letter gave a deadline of July 17).

Perhaps the most significant event for tax reform in July will be how the Senate deals with health care reform, as passing or failing to pass health care legislation will directly impact both its likelihood of success and potential scope. The reconciliation process can’t be used for tax reform unless and until there is an FY18 budget resolution and an FY18 budget resolution can’t be addressed until ACA repeal-and-replace legislation is disposed of, one way or the other.

Conflict in Iraq and Syria: Debate on the 2001 Authorization of Military Force (AUMF)

On Thursday, June 29, the House Appropriations Committee approved an amendment to the FY18 Defense Appropriations Act from Congresswoman Barbara Lee (D-CA). The amendment would repeal the 2001 Authorization for the Use Of Military Force (AUMF) 240 days after enactment of the Department of Defense Appropriations bill. As of 2013, the AUMF had been invoked more than 30 times to authorize troop deployments and other military measures, including detentions at Guantanamo Bay and military trials for terrorism suspects.

According to the Congressional Research Service, the AUMF has been used more than 37 times in 14 countries to justify military action. Under Presidents George W. Bush and Barack Obama, the AUMF was used to justify the deployment of US forces to Afghanistan, the Philippines, Georgia, Yemen, Djibouti, Kenya, Ethiopia, Eritrea, Iraq and Somalia. President Obama also used it to justify military action against ISIS, a group that did not even exist when the AUMF was adopted in 2001.

While Rep. Lee’s AUMF language is expected to be stripped from the FY18 Defense Appropriations bill at some point before it becomes law, the inclusion of this language in the text of the Defense Appropriations Act, as adopted by the House Appropriations Committee, makes it likely that the House, and possibly the Senate as well, will have a debate on the relevance and propriety of the AUMF language at some point before the Defense Appropriations Act becomes law. GOP military veterans have voiced strong support for a debate on the AUMF.

Flood insurance

Authorization for the National Flood Insurance Program expires at the end of September. A dispute in the Senate Banking Committee over a privatization proposal offered by Senator Jon Tester (D-MT) is keeping the version of an NFIP reauthorization from moving forward to date in the Banking Committee.

The House version of an NFIP reauthorization is further along. On June 15 and June 21, the House Financial Services Committee approved a package of seven flood insurance bills. While the House has yet to take up these bills, the chamber is expected to vote at some point in July on a five-year reauthorization of the NFIP. That said, several members of the Louisiana delegation say that because of reductions in funding levels and several controversial privatization proposals, this package of bills currently lacks the votes to pass the House. (The National Association of Homebuilders, the National Association of Realtors and many members of Congress are said to oppose the House bill.).

Infrastructure

While many observers hoped and believed that a proposal to upgrade America’s roads, bridges and airports would be an early priority for the Trump administration—as well as one with the potential to attract bipartisan support—it now seems clear that infrastructure sits behind health care, tax reform, a debt ceiling, government funding and even an FAA reauthorization on the administration’s legislative wish list.

On June 29, with the White House still yet to unveil formal legislative text for its massive infrastructure proposal and not expected to do so until the fall, Senate Commerce Committee Chairman John Thune (R-SD) observed that congressional work on the president’s $1 trillion infrastructure package would likely slip to next year.

FAA reauthorization

The House and Senate committees of jurisdiction have marked up two separate versions of FAA reauthorization bills, the major difference being air traffic control reform. The Senate bill lacks the ATC reform language and is very similar to the comprehensive bill passed (with a bipartisan majority) in the Senate in the 114th Congress. Congressman Bill Shuster (R-PA), chair of the House Committee on Transportation and Infrastructure, wants to bring his bill to the floor in mid-July. However with the expectation of a highly contentious dispute over the ATC privatization proposal, the bill’s prospects in the House are uncertain. Meanwhile, consideration of the Senate FAA reauthorization bill may be delayed by the pendency of health care legislation in the Senate.

Washington on one page: June 26

THE LEDE:  Leader McConnell drops 142 page discussion draft, while 7 GOP Senators express “real concerns.” The Washington Post writes that Obama tried to retaliate against Russian intrusion into 2016 election. Trump doesn’t have tapes of Oval conversation with Comey. POTUS continues North Korean and Western Balkans “national emergency” designation. President Trump meets with President Petro Poroshenko of Ukraine and President Varela of Panama. POTUS tightens US policy towards Cuba. Ping Pong Pizza shooter gets 4 years. House Majority Whip Steve Scalise’s condition has been upgraded from “serious” to “fair.”

THE WEEK AHEAD:   Better Care Reform Act CBO score due. Secs Pruitt & Acosta, Chairman Clayton and Ambassador Haley make the appropriating and authorizing swing. Chairman Chaffetz resignation effective 6/30. Sanctauary cities bill to move in judiciary and to the floor. NDAA in House Armed Services

CONFIRMATION UPDATE: FEMA Administrator  

PREVIOUSLY CONFIRMED- Deputy Secretary of State, Associate Attorney General, Deputy Secretary of Transportation,  Sec. of Air Force, FDA Commissioner, US Trade Representative Chairman of the SEC,  Sec of Agriculture, Sec of Labor   Associate Justice of the Supreme Court , Amb. To Israel  Admin of CMS, Director of National Intelligence, Sec. of HUD, Sec. of Energy, Sec of Interior,  Sec. of Treasury, OMB Director,  Attorney General, Sec. of Education, Sec of Veteran’s Affairs , EPA Administrator, Small Business Admin, Sec. of HHS, Sec. of State, Sec of Transportation, Director of CIA, Sec. of Defense, Amb. to the UN, Sec. of Homeland,  Sec. of Commerce

PRESIDENTIAL MEMORANDUM & EXECUTIVE ORDER TRACKER:   Presidential Memoranda Cuba  Jerusalem Embassy Act  Stabilization of Iraq  Aluminum Imports    Offshore Drilling, VA Accountability, Local Control of Education, Review of Antiquities Act, Rural American Prosperity : Orderly Liquidation Authority, Financial Stability Oversight Council, Steel Imports and Threats to National Security  Executive Branch Re-Org    Travel Ban 2.0 Memo for USSS, USAG, USSHS     Fiduciary Duty RuleNational Security Council,  Defeat ISIL,   Pipeline Construction, American Pipe,  Domestic Manufacturing,  TPP, Hiring Freeze, Mexico City (Abortion), Memo to Executive Departments and Agencies  Executive Orders: North Korea   Western Balkans Cyber security    Election Integrity   Promoting Free Speech & Religious Liberty Identifying Tax Burdens, Buy American and Hire American  Principles for Reforming the Military selective Service Process  Climate,   Addiction & Opioid Crisis , Report on Trade Deficits,  Trade Enforcement Travel Ban 2.0  Regulatory Reform Task Forces,  Crime Reduction, Drug Cartels, Law Enforcement protection, DOJ Succession,  Dodd Frank,  2 for 1 Reg,    Border and Immigration Enforcement, ObamaCare, Public Safety, Expediting Environmental Review Process, Visa Restrictions

POTUS: Trump said he does not have tapes of his conversations with now-former Federal Bureau of Investigation Director James Comey. He also said he has “no idea” whether such tapes exist.. President Trump signs the Department of Veterans Affairs Accountability and Whistleblower Protection Act of 2017

CONGRESS: House Republicans are not yet in agreement on a spending plan for fiscal year 2018, a step that needs to be completed before they can move onto tax reform. Even without a budget in place, House Republicans advanced the second of 12 annual spending bills needed to fund the government — with more on the way.

ENERGY: The White House announced preparations for an energy focus for its upcoming policy-themed week, as President Donald Trump is expected to promote “energy dominance.”

HEALTH: NYT Whip List Tracker. The Affordable Care Act gave health insurance to millions of Americans by shifting resources from the wealthy to the poor and by moving oversight from states to the federal government. The Senate bill introduced Thursday pushes back forcefully on both dimensions.

RUSSIA:  Near the end of his term, former President Barack Obama authorized the planting of cyber weapons in Russian infrastructure, part of his response to the U.S. intelligence community’s conclusion that Russian President Vladimir Putin was directly involved with meddling in the 2016 presidential election.. During his testimony before the House Intelligence Committee, former Homeland Security Secretary Jeh Johnson said Russia organized cyberattacks against the United States to influence the presidential election.

SPECIAL ELECTION: This may sound harsh but, in a reliable GOP district, the GOP candidate, who holds state wide office, beat an under 30 year old first time candidate who didn’t live in the district.  The circular firing squad was assembled with Leader Pelosi seemingly in their sights.  Leader Pelosi responds that she is “worth the trouble.”

TRADE: Ag Sec Predue held trilateral meeting with Agriculture Minister Lawrence MacAulay and Mexican Secretary of Agriculture José Calzada Rovirosa in Savannah, Georgia

TRAVEL BAN: A federal judge in Hawaii narrowed his injunction against Trump’s travel ban, allowing the administration to move forward with studies and policy reviews his executive order also called for.

TRANSPORTATION: Asset Recycling. You’ll be hearing a lot about this in the coming transportation debate.  Learn about it here.

Have questions, comments, want some follow up?  You can reach us here, here or here.