The Final Push Part I: Small Business Lending, Continuing Resolution & Colbert Holds Court in Congress

This Week in the People's House
9/27/2010
By Bobby Frederick

The sun is beginning to set on the 111th Congress, but laws are still being made as the House moved a $30 billion small business lending bill last week that President Obama signed into law today.

This week, the House will vote on a bill providing health benefits to 9/11 first responders, a measure dealing with Chinese currency manipulation, a continuing resolution to fund the government and a possible, but unlikely, vote on the Bush tax cuts. Although the House is scheduled to be in session through October 8th, it appears the chamber will officially adjourn on September 30th to give vulnerable members (and challengers) one month to make their closing argument to American voters.

Convening on Monday, September 20th (first vote on Wednesday, September 22nd at 6:00 p.m.) and adjourning on Friday, September 24th (last vote on Thursday, September 23 at 3:44 p.m.), the House was in session for a total of 18 hours and 52 minutes and tolled 13 recorded votes for the week.

Balance of the House: 433 members: 255 Democrats, 178 Republicans and two vacancies (NY-29 & IN-3). Republicans need to pick up 39 seats to take control of the majority in the House.

Last Week's Action

Suspensions: (Usually reserved for non-controversial measures, suspensions need the votes of two-thirds of those present and voting to pass). The House passed six suspension bills last week (a grant program to combat infant mortality, stiffer penalties for drug smugglers using ultralight aircraft, grants for autism, grants for veterans looking to become EMTs, liability protection for health care practitioners volunteering at health centers, reauthorizing a national electronic prescription reporting act for three years). Three measures from the Natural Resources Committee failed to secure the necessary votes to pass by suspending the rules (Roll Call Votes 532-33, 537-38, 540-44 click here).

YOUCUT: House Republicans continued their spending cut efforts by trying to force a vote on reducing government employment to 2008 levels. The Federal Workforce Reduction Act would save $35 billion over 10 years, but the proposal was blocked by a vote of 230-181 (Voting Yes- 230 D’s & 0 R’s : Voting No- 11 D’s & 170 R’s). A “yes” vote cut off debate while a “no” vote would have given Republicans an hour to debate and vote on this proposal.

RULE BILL: H.R. 5297- the Small Business Jobs and Credit Act of 2010 introduced by Rep. Barney Frank (D-MA).

Quick Summary- Establishes a $30 billion fund aimed at assisting community banks to loan to small businesses. The Senate attached an additional $12 billion in tax cuts, including the depreciation bonus from the 2009 stimulus law that permits businesses to write-off half of their new equipment purchases. The bill is offset primarily by allowing government retirement accounts to be converted into Roth accounts (taxed at front end).

During debate, Democrats argued that this bill would strengthen our economic recovery and facilitate up to $300 billion in loans to small business, while Republicans painted this as just another failure in a line of failed bailouts and that small business owners are more focused on what the Congress will do with the Bush tax cuts and the 1099 issue.

H.R. 5297 passed by a vote of 231-187 (Voting Yes- 236 D’s & 1 R : Voting No: 13 D’s & 174 R’s), and President Obama signed this $42 billion measure into law this afternoon.

Other Big News

"America is more than a country," begins the 48-page Pledge to America that House Republicans unveiled at a hardware store in Sterling, Virginia last Thursday, September 23rd. The proposal, which drew criticism from Democrats and even some conservative bloggers, focuses on reducing the size of government, cutting the budget and repealing health care.

Comedian Stephen Colbert testifies as a witness on his "vast experience" as a day laborer during a House Judiciary Committee hearing on immigration and farm labor (begins at 56:25 mark). Was this a moment of comedy in a partisan environment a mockery of Congress as an institution, or a distraction from the real issues? You decide.

There are only 36 days until the 2010 midterm election.

The Week Ahead

Votes: First votes could occur as early as 10 a.m. on Wednesday, September 29th and last votes will likely be taken during the afternoon of Thursday, September 30th.

Suspensions: On tap are 63 suspensions (legislation that requires 2/3’s voting majority to pass – usually reserved for non-controversial measures). The vast majority of these will pass via voice vote. See complete list here.

Rule Bills:
H.R. 847, the James Zadroga 9/11 Health and Compensation Act of 2010, introduced by Congresswoman Carolyn Maloney (D-NY).

Quick Summary- Provides health care services to 9/11 first responders with ailments related to the terrorist attack. It also reestablishes the 9/11 Victim Compensation Fund. H.R. 847 failed on the suspension calendar back in July by a vote of 255-159 and led to this exchange. Concerns about the process and the pay-for ($7.4 billion by altering the tax rules made by U.S. subsidiaries of foreign companies) led to this bill's defeat. It will now be brought up under a rule that requires a simple majority to pass. Two votes are expected; one on the health care program and one on the pay-for, and then this legislation will pass.

H.R. 2378, the Currency Reform for Fair Trade Act, introduced by Congressman Tim Ryan (D-OH) (The bill on the floor this week is an amendment in the nature of a substitute offered by Ways and Means Chairman Levin).

Quick Summary- The impetus for this bill is the widespread belief by many economists that China is undervaluing its currency leading to job loss and reduced GDP. This bill would allow the US Department of Commerce to impose duties on China if a US industry can show that it has been “materially injured by reason of imports…produced in foreign countries with fundamentally undervalued currencies.” Skeptics believe that this bill could invite retaliatory measures from China on American businesses. The business community is split on this regional and philosophical issue. The Senate is unlikely to consider this legislation.

Senate Amendment to H.R. 3081, Making Further Continuing Appropriations for FY 2011

Quick Summary- The Senate will act first on this measure to provide funding for the federal government after the fiscal year ends on September 30, 2010. The CR is likely to run through late November or early December, but bill text and a price tag have yet to be released.


Eye on the Senate: The Senate failed to invoke cloture on their FY 2011 Defense Authorization bill and therefore votes on Don’t Ask, Don’t Tell and the DREAM Act (would provide a pathway to citizenship for younger illegal immigrants if they attend college or serve in the military for two years), were blocked. This week, the Senate will debate overseas job loss and initiate the Continuing Resolution.


Quote of the Week: “I think probably the best thing to do now is just go home.” Retiring Congressman John Tanner (D-TN). Members will likely get their wish this week. There could be as few as two voting days left before the House adjourns until the week of November 15th for a lame duck session.