Sunday, September 26, 2010

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.

Sunday, September 19, 2010

$5 Billion in Loans for Energy Efficiency Upgrades, $30 Billion for Small Business Lending & the Liability of Simply Being in Washington

This Week in the People's House
9/19/2010
By Bobby Frederick


The House arose from a 34-day slumber to pass a $5 billion measure aimed at encouraging energy efficiency upgrades in rural and urban communities. Meanwhile, the Senate amended a $30 billion proposal designed to get banks to loan to small businesses and sent it back for House consideration this week.

Convening on Tuesday, September 14th (first votes at 6:01 p.m.) and adjourning on Thursday, September 16th (last vote at 4:10 p.m.), the House took 13 votes for the week. The House eased back into session, working a total of 17 hours and 20 minutes.

Rank-and-file Democrats in the House have come to the realization that every minute spent in Washington hurts their chances at holding on to their majority. Speaker Pelosi listened to her members and cancelled votes for Tuesday (9/21). The smart money is that Democrats will adjourn until after the election on Friday, October 1st, leaving just seven voting days left on the calendar.

Balance of the House: 433 members: 255 Democrats, 178 Republicans and 2 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 nine suspension bills last week (Honoring the Oklahoma National Guard, Congratulating Miami Dade College on its 50th anniversary, applying “Buy America” provisions to the Legislative Branch, post office naming in Wisconsin, designating a national week for Hereditary Breast and Ovarian Cancer, reforming how overseas contracts are granted, commemorating the 9/11 terrorist attacks, naming a federal building in Mississippi, expressing condolences to Pakistan after July floods). Roll Call Votes 519-25, 528 & 531 click here.

YOUCUT: After reports recently surfaced that federal employees owed nearly $1 billion in back taxes, Republicans tried to force a vote on a proposal that would terminate federal employees who refuse to pay their taxes and prevent individuals from being hired if they owe back taxes. The majority of Democrats blocked this move by a vote of 226-186. (Voting Yes- 226 D's & 0 R's : Voting No- 15 D's & 171 R's). A “yes” vote was a vote to cut off debate and move on to the underlying bill. Had the “no’s” prevailed the Republicans would have been given an hour to debate their proposal and an up or down vote.

Rule Bill: (A bill that goes through the House Rules Committee, where amendments are allowed or disallowed and then packaged with instructions before it heads to the House floor. A simple majority vote usually passes the legislation.)

H.R. 4785, the Rural Energy Savings Program Act. Originally designed to authorize $993 million for a rural energy efficiency loan program this legislation ballooned into a $5 billion authorization measure, upon re-adding a “Home Star” energy program that the House had already voted to strip back in May.

$4.25 billion for interest-free loans from the government to states for energy efficient home improvements. $725 million for the Agriculture Department to make interest-free loans to rural electric cooperatives who could re-loan these funds at 3% interest to their members who wish to install energy efficiency or farm efficiency measures.

During debate, Democrats touted this bill as an energy efficient job creator, while Republicans argued that these programs are duplicative to ones created in the failed stimulus and that now is not the time to spend $5 billion more.

H.R. 4785 passed by a vote of 240-172 (Voting Yes- 234 D’s & 6 R’s : Voting No: 5 D’s & 167 R’s), but the Senate is unlikely to act on this before the election.

Other Big News

Ethics Woes: Upon taking power in 2006, Nancy Pelosi promised the, “most honest, most open and most ethical Congress in history.” However, it appears that the ethics trials of Congressman Charles Rangel and Congresswoman Maxine Waters will have to wait until AFTER the election.

1994 all over again: A republican takeover in Congress could lead to gridlock. The man who would be Speaker, John Boehner, said that is our (Republicans) goal "to not shut down the government."

Late Breaking Today: After five months, the BP oil leak has finally been sealed.


The People's House Politics Extra! (43 days until the 2010 Midterm Election)

There are some surprises in Stuart Rotherberg's latest House Race Ratings.

The Money Race: Republican 527's have almost pulled even with Democrat 527's.

The Republican establishment in Delaware are about as excited that Christine O'Donnell won their party's nod for Senate as Wayne and Garth were when they visited "The Diamond State" back in 1992.


The Week Ahead

Votes: First votes will occur at 6 p.m. on Wednesday, September 22nd and last votes will be taken during the afternoon of Friday, September 24th.

Suspensions: On tap are 39 suspensions (legislation that requires 2/3’s voting majority to pass – usually reserved for non-controversial measures). The vast majorities will pass via voice vote. See complete list here.

Rule Bills: H.R. 5297- the Small Business Jobs and Credit Act of 2010 introduced by Rep. Barney Frank (D-MA). This will be an up or down vote (no amendments allowed) on an amended version of H.R. 5297 that the Senate passed last week.

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).

Prediction: Republicans will paint this as another TARP bailout and Democrats will tout it as a jobs growing economy booster. It will pass the House and be signed into law by the president.

Before Leaving for the Campaign Trail: The last must-pass item before the election is a continuing resolution to fund the government after the fiscal year ends (likely until some point in November). The House could take a crack at the expiring tax cuts, but 38 House Democrats have rebuffed Pelosi’s position by supporting a short-term extension of ALL of the Bush tax cuts.

Eye on the Senate: This week, the Senate will begin to take up their version of the FY 2011 Defense Authorization bill. As part of this debate, there could be votes on repealing Don’t Ask, Don’t Tell, as well as the DREAM Act which would provide a pathway to citizenship for younger illegal immigrants if they attend college or serve in the military for two years.

Quote of the Week

“I am writing to request that you not seek the Speaker’s position during your next term and make your intention not to seek this leadership position public.” Democrat candidate Brett Carter of Tennessee’s 6th Congressional District asking Nancy Pelosi to step down as Speaker next term.

Whether or not the Democrats hold on to the House or not, Pelosi would be a meaker Speaker in the 112th Congress.

Monday, September 13, 2010

They're Baaaaaaaaaaaaack!

This Week in the People's House
Tuesday, September 14
By Bobby Frederick



After a 34-day recess, the House returns to session today for a short legislative week. There are a mere 16 days left on the House Calendar and that number could be cut to 11 if Democrat leadership gives away the first full week of October to allow their most vulnerable members to campaign back home.

Votes: First votes will occur at 6 p.m. on Tuesday, September 14th and last votes will be taken during the afternoon of Thursday, September 16th.

Suspensions: On tap are 27 suspensions (legislation that requires 2/3’s voting majority to pass – usually reserved for non-controversial measures), including a measure commemorating the ninth anniversay of 9/11,

Balance of the House: 433 members: 255 Democrats, 178 Republicans and 2 vacancies (NY-29 & IN-3). Republicans need to pick-up 39 seats to take control of the majority in the House.


Rule Bills:
The only rule bill is
H.R. 4785, the Rural Energy Savings Program Act sponsored by Majority Whip, Congressman James Clyburn (D-SC). Watch as Clyburn tweets the virtues of his bill in 140 characters or less.

Quick Summary: Authorizes $5 billion for two new programs promoting low interest energy improvements.

-$4.25 billion ($850 million a year for FY 2010-14) for a Home Star Energy Loan Program. States could apply for interest-free loans from the government and in turn loan this money out to consumers for energy efficient home improvements. States could charge 3%interest on these loans, which must be paid back to the federal government within 20years.

-$750 million ($150 million a year for FY 2010-14) for a Rural Star Energy Program. The Agriculture Department could make interest-free loans to rural electric cooperatives who could re-loan these funds at 3% interest to their members who wish to install energy efficiency or farm efficiency measures.

Other News of Note

-America remembers the ninth anniversary of the 9/11 attacks on our soil.

-The job approval rating of Congress was 20.5% when it adjourned for recess last month. Congress did nothing for 34 days and that number rose to 23%. Amazing.

-Are you ready for some football? Players want Congress to intervene in their labor dispute with team owners. The House may look at the NFL's anti-trust exemption.


The People's House Politics Extra (49 Days until the 2010 Midterm Election)

Chris Cilizza of the Washington Post examines 50 races that could determine control of the People's House.

The Primary season ends with a bang as Delaware, DC, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Wisconsin hold primaries today. Click here for the latest polls.

Personal Observation- I had the opportunity to travel the 15th District of Illinois with my boss and a comment from a truck driver at the K & H Truck Plaza in Gilman is evidence of the enthusiasm Republican votes are feeling for the election. "I don't care if I have to miss three days of work, I'm voting in this election."

Quote of the Week

“Jesus, we’ve been the most productive Congress in history and we still get no credit.” A senior House Democrat aide (as quoted by Roll Call).

Do voters share the same view? We'll find out the first Tuesday in November.

Tuesday, September 7, 2010

The One Week Warning - House Returns

This Week in the People's House (Day after Labor Day Edition)
Tuesday, September 7th
By Bobby Frederick

One week from today, the House will be back in session for a sixteen day sprint leading up to the 2010 Midterm Election which is exactly eight weeks away. Rumors are swirling that Democrat leadership may give away the first week in October, resulting in just 11 more days on the House Calendar.

Items left on the House (and Senate) to do list include what do to about the Bush tax cuts, (former Obama Budget guru says extend them), the estate tax, and a continuing resolution on remaining appropriations measures.

The House is likely to consider a resolution in response to an August District Court ruling that federal funds cannot be used on stem cell research. The House could also consider a resolution on Chinese currency manipulation. Food Safety policy and childhood nutrition funding are also relatively non-controversial items the House could further pursue.

With rumors swirling that Democrats may forego a week's worth of session to give their vulnerable members more time back in their districts, there is simply little time to get things done.

Current Balance of the House is 433 members: 255 Democrats, 178 Republicans and 2 vacancies (NY-29 & IN-3). Republicans need to pick-up 39 seats to take control of the majority in the House.


Big News

August Employment Numbers: 54,000 jobs lost, 67,000 jobs added in the private sector, unemployment rate rises to 9.6%.

On Labor Day, President Obama announced a six-year, $50 billion investment in transportation and infrastructure. Democrat Majority Leader, Steny Hoyer, has indicated this funding is unlikely to pass before November. On a related note, as of August 27, 2010, $275 billion of the $787 billion stimulus has NOT been paid out. The "Recovery Act" was passed in February of 2009.

Attorney General, Eric Holder, has filed a civil suit against Phoenix Sheriff Joe Arpaio. The sheriff is known of his tough stance against illegal immigration. Civil Rights groups have accused him of discrimination and the federal government says Arpaio has been uncooperative in their investigation.


The People's House Political Extra (56 days until the 2010 Election!!!)

Larry Sabato (UVA Political Director) looks into his Chrystal Ball and sees Republicans picking up 47 seats in the House. Labels this a "conservative estimate".

Charlie Cook gets paid the big bucks to predict the outcomes of elections - and right now Cook sees 75 D seats in play and no help on the horizon for the party in control in the House.

Numbers from new WSJ/NBC poll:

-The Good (for Democrats): Democrat party viewed favorably by 36% polled - Republican Party viewed favorably by just 30%.

-The Good (for Republicans): Class of voters "most interested" in election prefers an R Congress 53% to 35%.

-The Ugly (for incumbents): 56% of all voters believe it is time to give someone else a shot at representing them.

-The Netural: 43% polled prefer a Democrat controlled Congress and 43% polled prefer a Republican controlled Congress.