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Tag: debt ceiling

Recent Congressional Activity Summary-Week of September 8th

As a valued member, Transportation for America is dedicated to providing you the latest information and developments around federal policy. This dedication includes in-depth summaries of what is going on in Congress and the U.S. Department of Transportation (U.S. DOT). Check out what you may have missed in our member webinar last week. 

House of Representatives Appropriations

Before this Friday, current appropriations for the Federal Government were scheduled to expire September 30th, which is the end of the 2017 fiscal year.

During this past week, the House of Representatives (House) considered H.R. 3354, a mini-omnibus package consisting of 8 appropriations bills, including the Transportation, Housing and Urban Development (THUD) appropriations bill. The official title of the omnibus package is the “Make America Secure and Prosperous Appropriations Act, 2018.”

The four appropriations bills the House considered on Wednesday were 1) Agriculture/Rural Development 2) THUD, 3) Homeland Security and 4) State/Foreign Operations. On Thursday and Friday, the House began consideration of the four remaining appropriations bills which are 5) Interior/Environment, 6) Commerce, Justice, Science, 7) Financial Services and 8) Labor/Health and Human Services.

While a final House vote on the House appropriations package was initially scheduled for Friday, the impending arrival of Hurricane Irma caused the House to delay final consideration and passage of the “Make America Secure and Prosperous Appropriations Act, 2018” until this upcoming week. This decision was made in order to give the representatives from Florida, and other states likely to be impacted by Irma, time to get home to their constituents.

After the passage of these 8 bills, the House will have passed all 12 of their appropriations bills that fund the activities of the Federal Government. The House passed their first four appropriations bills before August recess; those bills fund the Defense Department, the Department of Veteran Affairs, Legislative Operations, and Energy and Water.

The House Rules Committee, which is the body of the House that determines the rules for debate on a given bill, advanced for floor consideration roughly 40 amendments out of the 90 amendments that were submitted to the Rules Committee for consideration on the House THUD bill. You can access T4America’s tracker of the amendments T4America was watching closely here.

There were two amendments that were made in order that T4America was concerned about. Those two amendments were the Ted Budd amendment (Republican, North Carolina’s 13th Congressional District) and the Mo Brooks amendment (Republican, Alabama’s 5th Congressional District). Representative Budd’s amendment would have: 1) cut $475 million from the Federal-State Partnership for State of Good Repair grants, which was funding intended in part for the Amtrak gateway project, 2) eliminated the possibility of restoring funding for the TIGER program by applying the savings to deficit reduction and 3) Shifted $400 million in funding from intercity city passenger rail grants to the New Starts Program. Representative Brooks’ amendment would have eliminated federal funding for Amtrak’s national network operations.

Thankfully, the Budd amendment failed to pass by a vote of 159-260 and the Brooks amendment failed to pass by a vote of 128-293.

Debt Ceiling and Continuing Resolution Agreement

On Wednesday, during a meeting with Congressional leaders from both parties, President Trump reached an agreement with Senate Minority Leader Chuck Schumer and House Minority leader Nancy Pelosi to extend the debt ceiling and government funding by approximately three months until December 8th, as part of a legislative package that provides federal funding for Hurricane Harvey relief and extends the federal flood insurance program temporarily.  The Senate passed this legislative package on Thursday by a vote of 80-17 and the House of Representatives passed it on Friday by a vote of 316-90, sending the legislation to President Trump, which he signed into law on Friday.

Surprisingly, a majority of Republicans in both Houses voted to pass the package even though Speaker Paul Ryan and Majority Leader Mitch McConnell indicated they strongly disagreed with the deal President Trump struck with Democrats and the influential House Republican Study Committee and other outside conservative groups opposed the deal as well.

Due to the passage of the legislative package, the debt ceiling and appropriations for the Federal government will now end on December 8th. We expect this deadline to lead to intense, high-stakes negotiations to reach a full year appropriations agreement and a long-term extension of the debt ceiling. Additionally, because of the importance of these negotiations, we expect immense pressure to include other items that are unrelated to appropriations but important to one party or the other. For example, early indications are that Democrats will insist on no discretionary funding spending cuts, the inclusion of the Deferred Action for Childhood Arrivals (DACA) program and health care insurer payments to stabilize ACA as the price for their votes.

Senate Appropriations 

The Senate Appropriations Committee is still in the process of writing and approving their Appropriations bills. So far, the process in the Senate has been bipartisan and they have rejected cuts to non-defense discretionary spending that the House has adopted in their appropriations bills. Due to the spending cuts, the process in the House has been more partisan than the Senate.

There has been no indication from Senate Majority Leader Mitch McConnell that there will be Senate floor time to consider individual appropriations bill. At this point, T4America expects that all 12 of the appropriations bills will be rolled up into a giant omnibus by the new deadline of December 8th after negotiations over top line funding levels are completed with the House and between the two parties.

House and Senate Automated Vehicle Legislation

The House of Representatives on Wednesday passed by voice vote their bipartisan automated vehicle legislation, H.R. 3388, the Safely Ensuring Lives Future Deployment and Research In Vehicle Evolution Act” or the “SELF DRIVE Act. Members can see our statement about the bill here. The House Energy and Commerce’s subcommittee on Digital Commerce and Consumer Protection (DCCP) has been examining the issue since late 2016 and actively considering legislation since June.

The legislation that passed the House this past Wednesday was led by DCCP subcommittee Chairman Robert Latta (Republican, Ohio 5th Congressional District) and ranking member Jan Schakowsky (Democrat, Illinois 9th Congressional District). The legislation does a number of things including: 1) delineating the federal and state/local roles when it comes to regulating automated vehicles via a pre-emption clause, 2) establishing a specific exemption from federal motor vehicle safety standards to test automated vehicles, 3) raising the number of safety exemptions a manufacturer can get to test vehicles to 100,000 over three years and 4) establishing an automated vehicle advisory committee to advise the Secretary of U.S. DOT on a number of issues related to automated vehicles.

On Friday, the Senate Commerce Committee released a draft of their automated vehicle legislation. Senate Commerce Committee Chairman John Thune (Republican, South Dakota) and Senator Gary Peters (Democrat, Michigan) have been leading the legislative efforts in the Senate. The Smart Cities team is currently analyzing the Senate bill and will continue to work with Senators to make improvements to the House AV bill.

TIGER Notice of Funding Opportunity (NOFO)

On Thursday, U.S. DOT released the FY 2017 notice of funding opportunity (NOFO) for the $500 million TIGER program. U.S. DOT will evaluate projects based on the extent to which they benefit safety, economic competitiveness, state of repair, quality of life and environmental sustainability. These are the same selection criteria used in the TIGER rounds from 2014, 2015 and 2016. However, this Administration will emphasize “improved access to reliable, safe, and affordable transportation for communities in rural areas, such as projects that improve infrastructure condition, address public health and safety, promote regional connectivity, or facilitate economic growth or competitiveness.”

Applications are due by 8:00 p.m. E.D.T. on October 16, 2017 and U.S. DOT is hosting informational webinars on Wednesday September 13th, Tuesday September 18th, and Wednesday September 19th.

President Trump Nominations to U.S. DOT Agencies

On Friday, President Trump announced his intent to nominate Mr. Howard R. Elliot to be administrator of the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Mr. Paul Trombino III to be the administrator of the Federal Highways Administration (FHWA). Mr. Elliot most recently served as the Vice President of Public Safety, Health, Environment and Security for Class 1 Railroad CSX Transportation. Mr Trombino is the former director of the Iowa Department of Transportation from 2011 to 2016 under Iowa Governor Terry Branstad and the former President of the American Association of State Highway Transportation Officials (AASHTO). The U.S. Senate must confirm both nominees.

With these nominees, President Trump has nominated someone to head FHWA, PHMSA, the Federal Railroad Administration (FRA) and the Maritime Administration (MARAD) while the Federal Transit Administration (FTA) and the National Highway Traffic Safety Administration (NHTSA) still await nominees to lead them.

 

Supercommittee failure to reach agreement could lead to deeper transportation cuts

The so-called deficit supercommittee, a bipartisan group of 12 lawmakers tasked with agreeing to $1.2 trillion in spending cuts, was supposed to unveil its recommendations this week for an up-or-down vote in Congress.

But the group, established in a down-to-the-wire debt ceiling deal between President Obama and Congressional Republicans this past summer, looks like it will have nothing to offer. The divide between the two parties, particularly over high-end tax rates, appears irreconcilable.

But the consequences for failure go beyond just another black eye for an unpopular Congress. When the supercommittee was created, it came with a “trigger” of automatic cuts if members failed to come to an agreement. A portion of that $1.2 trillion trigger will target defense and Medicare reimbursements, but a significant chunk encompasses yet-to-be identified discretionary spending.

That means the budget for the U.S. Department of Transportation, which just emerged from a tough battle over 2012 funding levels, is back on the chopping block.

Last week, the House and Senate passed and President Obama signed a “minibus” budget for 2012 that largely kept funding for transit, Amtrak and TIGER grants intact, while zeroing out high-speed rail. Many of these same programs would likely be subject to further cuts under a trigger scenario, though the new cuts would not materialize until the 2013 calendar year.

The six Republicans and six Democrats on the supercommittee — three of each party from the House and Senate, respectively — technically have until Wednesday to make recommendations, but in order for Congress to have a chance to vote and meet disclosure terms, they needed to send their proposal to the Congressional Budget Office Monday evening for scoring.

That deadline has come and gone.

Under a failure scenario, it would fall to members of the House and Senate appropriations committees to draft specific cuts, likely a contentious outcome given split party control. There is also the possibility that discretionary spending like USDOT programs could take an even larger hit if members follow through with plans to reverse the trigger-outlined cuts to defense, a politically-sensitive area for Republicans and Democrats alike. (President Obama has signaled his intent to veto any attempts to undo the automatically-triggered cuts that were part of the committee’s creation unless equivalent savings are identified).

Members could also vote to eliminate the trigger all-together, but that seems less likely given that House Republicans have emphasized spending cuts since taking the majority this year.

What does the debt ceiling deal mean for transportation?

With just hours to spare before the deadline, the House, Senate and President Obama have agreed (in principle) on an agreement to raise the debt ceiling. While the details of that agreement are circulating in the media, the implications for the ongoing efforts to reauthorize the transportation bill — as well as funding for current programs over the next year or two — are a bit murky.

Here are a few things we know:

The Senate Environment and Public Works Committee won’t be able to move their transportation bill this week, which means it won’t get introduced or marked up before the August recess. The delay caused by the debt ceiling debate and the scheduled recess in August will likely move the introduction of the Senate bill and markup into September.

The Senate Finance Committee, currently tasked with finding an additional $12 billion to fund the Senate’s plan for a two-year bill, might be preoccupied with examining the details of the cuts in the debt deal. The Senate would need $12 billion to keep the HTF solvent over the length of its two-year bill.

Perhaps restating the obvious, but at a time when Congress is trying to establish or decide what will or won’t be cut, it could be more difficult to find the $12 billion needed for the Senate’s plan. That said, don’t count out Sen. Baucus just yet and his ability to find this amount of money for the EPW Committee.

Other than the cuts to defense spending, the bulk of the initial cuts will come from discretionary programs (and caps on discretionary spending.) In the past, the Highway Trust Fund has never been treated as discretionary spending by Congress, which could lead to a problem if that is the case in this instance. If there are discretionary cuts to transportation, they will primarily hit the transportation programs that get funded out of general fund revenues. This could include things like high speed rail, TIGER and New Starts, among others.

The upshot is that it’s still too early to determine the specific impacts, but this deal will have definite impacts on transportation over the coming two years and beyond.

Also: Read Streetsblog Capitol Hill on the same topic