This week in Congress.

The Senate will consider resolutions of disapproval under the Congressional Review Act (CRA) and confirmation of the president’s appointees to federal agencies. The House will be taking up litigation reform legislation and appropriations legislation to fund the Defense Department through the remainder of fiscal year 2017. The highest profile activity in Congress this week, though, is expected to take place in the House which plans to mark up the legislation to begin to repeal and replace the Affordable Care Act.

The Senate will return on Monday afternoon, when votes are expected on two resolutions of disapproval of federal regulations issued in the final months of the Obama administration under the CRA. The first vote will be on H.J. Res. 37 to disapprove a rule from the Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration revising provisions of the Federal Acquisition Regulation to require federal contractors to disclose findings of noncompliance with labor laws. The Senate is then scheduled to vote on the motion to proceed to H.J.Res 44, a resolution of disapproval of the Bureau of Land Management’s Resource Management Planning rule, finalized in December 2016. The regulation establishes the procedures used to prepare, revise or amend land use plans pursuant to the Federal Land Policy and Management Act of 1976, but congressional Republicans, state and local governments, and affected property owners have argued that the new process creates more confusion and greater uncertainty. The White House has announced support for both resolutions of disapproval, indicating the president would sign them into law upon Senate passage (both resolutions have already been approved by the House).

Senate floor activity for the remainder of the week is uncertain. It is possible the majority leader will initiate action on the nomination of Seema Verma to serve as Administrator of the Centers for Medicare and Medicaid Services. The nomination was advanced by the Senate Finance Committee last Thursday on a straight party-line vote.

On the other side of the Capitol, the House will return to legislative business on Tuesday, when members will consider seven bills, including five measures under the jurisdiction of the Transportation and Infrastructure Committee, under suspension of the rules.

On Wednesday, House members will consider three additional bills under suspension of the rules, all reported by the Natural Resources Committee.

The House will then take up H.R. 1301, the Department of Defense Appropriations Act for FY 2017, subject to a rule. The funding bill would replace the Department of Defense provisions of the current continuing resolution for FY 2017, which is set to expire on April 28, and provide funding through the end of this fiscal year, which ends on Sept. 30. The legislation meets the overall defense spending limits set by law for FY 2017, providing $516.1 billion for base budget needs. The bill also provides $61.8 billion in Overseas Contingency Operations funding, which is the level allowed under current law. These amounts are also in line with the National Defense Authorization Act signed into law by President Obama in December. Unlike the Defense Appropriations bill that passed the House on a party-line vote last summer, this version of the defense spending bill maintains statutory budget limits. As a result, it is likely to garner more bipartisan support for House passage in this session of Congress. Press reports indicate the Trump administration is preparing to request an additional $30 billion in supplemental funding for the Department of Defense in FY 2017, largely for readiness spending, but it remains unclear how Congress will respond to any supplemental appropriations request. It also remains unclear how or when Congress will deal with funding for the 10 remaining FY 2017 spending bills before the continuing resolution expires on April 28.

During the remainder of the week, House members will consider three pieces of litigation reform legislation reported out of the House Judiciary Committee. Each will come to the floor under a rule.

On Thursday, the House will take up two of these measures. H.R. 725, the Innocent Party Protection Act, limits the ability of federal courts to remand cases to state court under certain circumstances. Members will also consider H.R. 985, the Fairness in Class Action Litigation Act of 2017. The bill includes language from a previous class action reform proposal, which passed the House in 2016, to prohibit federal courts from certifying any proposed class under Rule 23 of the Federal Rules of Civil Procedure unless the party seeking to maintain a class action demonstrates that each member of the proposed class suffered an injury of the same type and scope. This version of the legislation also includes some additional provisions related to class action litigation, including disclosure requirements on third-party litigation financing.

The third litigation reform bill will be considered on Friday. H.R. 720, the Lawsuit Abuse Reduction Act of 2017, would amend Rule 11 of the Federal Rules of Civil Procedure to make the imposition of sanctions for violations of the rule mandatory, not discretionary as under current law.

Also this week, House Republican leaders are expected to release their proposal to repeal and replace the Affordable Care Act.  Once the bill is released, committee action is on tap, with markups this week, and prompt floor action can be expected as early as next week.

With all committees now organized, both chambers are facing busy hearing schedules.

 

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Contenders for U.S. EPA Administrator

President-elect Donald Trump is scheduled to meet today with two possible contenders for U.S. EPA administrator who have called for rollbacks of some of the more contentious environmental rules.

Oklahoma Attorney General Scott Pruitt (R), who’s helping to lead the legal fight against the Obama administration’s climate rule, and former Texas environmental regulator Kathleen Hartnett White — who has called for restraining ” EPA” — are both scheduled to meet with Trump and Vice President-elect Mike Pence in New York as they continue to announce picks for administration jobs.

Both Pruitt and Hartnett White have been rumored candidates for EPA leadership under Trump. He’s a lawyer who has climbed the political ranks in the Sooner State and recently said he’d consider running for governor in 2018. She’s a public policy expert who served as a Texas environmental regulator and as a special assistant in the White House for first lady Nancy Reagan.

They’d both be expected to reshape the agency by reducing or reshaping regulations.

Many other names have been floated for EPA administrator, including additional state officials and former George W. Bush administration EPA political appointees. Another state attorney general, Patrick Morrisey of West Virginia, has been mentioned for the EPA job.

Trump’s other meetings scheduled for this week include sit-downs with rumored contenders for secretary of State retired Gen. David Petraeus, former Massachusetts Gov. Mitt Romney and Senate Foreign Relations Chairman Bob Corker (R-Tenn.). Trump will also meet tomorrow with Rep. Marsha Blackburn (R-Tenn.), House Homeland Security Chairman Michael McCaul (R-Texas) and Rep. Lou Barletta (R-Pa.), according to the transition team.

Trump: Advancing Tax Incentives and Public-Private Partnerships

President Elect Trump has vowed to work with Congress on an ambitious $1 trillion, 10-year proposal staked on tax incentives and private investment to stimulate jobs and rebuild highways, bridges and airports within his first 100 days in office.

To pay for large-scale infrastructure projects, the president-elect is seeking to entice the private sector to get on board with putting up $167 billion of the proposed $1 trillion investment in public-works projects by having the government offer them an 82 percent tax credit.

The plan also relies on increased tax revenues from two revenue streams generated from the new infrastructure projects to offset the tax expenditure: additional wage income from construction workers and contractor profits. Advancing Tax Incentives and Public-Private Partnerships

Trump has vowed to work with Congress on an ambitious $1 trillion, 10-year proposal staked on tax incentives and private investment to stimulate jobs and rebuild highways, bridges and airports within his first 100 days in office.

To pay for large-scale infrastructure projects, the president-elect is seeking to entice the private sector to get on board with putting up $167 billion of the proposed $1 trillion investment in public-works projects by having the government offer them an 82 percent tax credit. The plan also relies on increased tax revenues from two revenue streams generated from the new infrastructure projects to offset the tax expenditure: additional wage income from construction workers and contractor profits.

It is estimated that $300 billion or more in private capital is ready to be deployed for this purpose. This estimated sum exists as investors like pension funds, insurance companies and private equity believe deploying their capital towards infrastructure makes for a sound investment backed by the strength and integrity of local and state governments.

Thus, Trump’s proposal could provide significant and long-awaited opportunities for public-private partnerships, or P3s, to invest in major, high-cost, revenue-supported projects.