Health-care reform | House budget resolution | USDA S/D updates | Yellen | Hearings on specialty crops, organics
Lawmakers return to a Senate health-care bill, markup of a possible House budget resolution, two appearances by Fed Chairwoman Janet Yellen, fiscal year 2018 appropriations markups (including agriculture) and a hearing on specialty crops and risk management. USDA’s monthly supply and demand updates come Wednesday.
Fed Chairwoman Janet Yellen gives her semi-annual testimony on monetary policy and the economy to the House Financial Services Committee on Wednesday. She reprises her testimony before the Senate Banking Committee on Thursday. Yellen was hospitalized last weekend in London, but was discharged Monday and expected to resume her schedule in Washington, the Fed said.
Meanwhile, the Fed’s Beige Book of regional economic activity is released on Wednesday.
President Donald Trump on Friday visits France and attends Bastille Day events. First Lady Melania Trump will join him at the invitation of President Emmanuel Macron.
Democrat Jimmy Gomez on Tuesday will be sworn in to the House nearly five weeks following his special election win over the Los Angeles 34th congressional district. Gomez takes seat vacated by Xavier Becerra, now Calif. attorney general.
Appropriations. The House Appropriations Committee on Wednesday will markup the FY 2018 Ag spending measure. During the panel’s subcommittee markup, minority members raised concerns about cuts to several programs in the bill, from international food aid to rural development programs. A policy provision in the bill would bar USDA from purchasing Chinese processed chicken for school lunches.
House Republicans may seek to advance a fiscal year 2018 budget resolution, with a possible markup on Thursday by the Budget Committee. Chairwoman Diane Black (R-Tenn.) will likely push a deal that includes $621 billion in defense spending, $511 billion in non-defense spending, and $200 billion in cuts to mandatory spending over 10 years — including some mandatory agriculture spending. House Ag Chairman Mike Conaway (R-Texas) reached agreement with Black on a cut for the Supplemental Nutrition Assistance Program (SNAP/food stamps) but declined to reveal the cut figure. Some reports have speculated the cuts totaled $8 billion over ten years. Black favors the $200 billion figure as a compromise between conservative House Freedom Caucus members, who called for steeper cuts to mandatory programs, and more moderate Republicans who oppose such cuts.
The budget resolution would set the stage for tax reform negotiations by including reconciliation instructions that would prevent Senate Democrats from filibustering a tax overhaul measure. Reconciliation bills can pass the Senate with a simple majority vote, not the 60-vote majority required for other legislation.
If the markup is delayed beyond this week, which some observers say is likely, the committee could mark up the tax and spending blueprint the third week of July, putting it on the House floor in the fourth week of July before the August recess.
The Congressional Budget Office on Thursday plans to issue its analysis of the Trump administration’s FY 2018 budget request.
On tax reform, the House Ways and Means Tax Policy Subcommittee holds a hearing to discuss “How Tax Reform Will Help Grow America’s Small Businesses and Create New Jobs.”
Senate health-care reform hurdles continue. Majority Leader Mitch McConnell (R-Ky.) is trying to find a way to win enough support for legislation to repeal and replace ObamaCare after a measure he proposed last month failed to win the backing of enough Republican senators. McConnell can afford to lose only two Republican votes if Democrats unite against it as is widely expected — Vice President Mike Pence would break any 50-50 tie. “I think there’s a number of ways to do it, but we’re going to have to make sure that between Medicaid and the refundable tax credit that we have a good option for low-income individuals,” McConnell said in an interview last week. Currently, eight Republican senators have declared their opposition to the health bill released by conservative leaders in July.
The Senate proposal is like the House bill passed in May, including repealing ObamaCare taxes for medical device makers, drugmakers, and insurance companies. While ObamaCare funds expansions in health coverage with taxes on health industries and high-income households, the GOP bill does the opposite. It would repeal taxes and lower projected government spending toward Americans’ health coverage while phasing out the Affordable Care Act’s (ACA) Medicaid expansion and cutting Medicaid more broadly. It would reduce the ACA’s tax credits for low-income consumers and would let states get waivers from some insurance regulations. It also would scale back ACA requirements imposed on employer-based health plans.
The GOP dilemma: Most conservative senators say the bill doesn’t go far enough toward repealing the ACA; some centrist lawmakers state it eliminates too much of the current law and takes coverage from too many people.
The Congressional Budget Office is set to release reports outlining the effects of making tax credits for the poor to purchase health insurance and a proposed amendment supported by conservative Sens. Ted Cruz (R-Texas) and Mike Lee (R-Utah) that would allow insurers that offer ACA-compliant plans to also offer noncompliant plans. Senate moderates worry it would undercut the health law’s protections for people with pre-existing health conditions. Proponents note it would likely cut premiums for younger, healthier people, who would buy more limited policies. Republicans must wait for the CBO reports before they can vote on a health bill.
President Donald Trump June 30 tweeted that if Republican senators can’t strike a deal on their health bill, they should immediately repeal ObamaCare and replace it later. But McConnell is still trying to garner enough support for legislation that repeals ObamaCare and replaces it as the same time. A recent concession by McConnell came over the recess, that lawmakers would have to act to stabilize health-insurance markets if GOP senators can’t agree on legislation. That would please Democrats but make disappoint a growing number of Republicans.
The Senate health-care bill is “probably going to be dead,” Sen. John McCain (R-Ariz.) said in comments on the CBS program “Face the Nation.” White House Chief of Staff Reince Priebus said on Fox News that President Donald Trump expected Congress to pass a bill to repeal and replace ObamaCare. Sen. Ted Cruz (R-Texas) on Sunday said failure to pass the bill was “not an option,” and said the Senate effort must focus on lowering premiums.
Regarding nominations, the Senate Judiciary panel holds hearing Wednesday on Christopher Wray, President Trump’s pick to lead the FBI. Wray, a former assistant attorney general during the George W. Bush administration, seeks to fill a vacancy left by James Comey, who was fired by President Trump during the FBI’s probe into Russia’s meddling in last year’s presidential election.
The Senate on Monday votes on the nomination of Neomi Rao, President Trump’s pick to head the Office of Information and Regulatory Affairs (OIRA), an office within the White House Office of Management and Budget that reviews all significant federal regulations. Rao already has the backing of Republicans and several key Democrats.
EPA. On Wednesday, the Senate Environment and Public Works Committee plans to vote on the nominations of Annie Caputo and David Wright to join the Nuclear Regulatory Commission, and Susan Parker Bodine to be an assistant EPA administrator.
The future of farming relative to technological innovations and opportunities is the topic of a House Agriculture subcommittee hearing Thursday. Witnesses will testify on the use of technology to benefit growers of specialty crops — fruits and vegetables, tree nuts, dried fruits and horticulture and nursery crops, including floriculture. House Agriculture Committee Chairman Mike Conaway (R-Texas) said specialty crops are a growing sector of the agriculture industry and the hearing will focus on ways that public-private partnerships and innovation can benefit specialty crop producers.
Three additional farm bill listening sessions were announced by the House Ag panel to gather input from farmers, ranchers and stakeholders across the country. Details:
July 31, 2017, San Angelo, Texas
Aug. 3, 2017, Morgan, Minn.
Aug. 5, 2017, Modesto, Calf.
Specialty crops and organics is the topic of a Senate Ag Committee hearing on Thursday. The hearing is titled, “Opportunities in Global and Local Markets, Specialty Crops, and Organics: Perspectives for the 2018 Farm Bill.” Data from the Organic Trade Association showed organic sales in the U.S. totaling $47 billion in 2016, with organics currently making up more than 5% of the country’s food sales.
California drought. The House floor this week may consider a GOP bill that would codify the state’s Bay-Delta Accord and provide drought relief to farmers in the San Joaquin Valley. The bill, HR 23, would streamline permitting for water supply projects managed by the Bureau of Reclamation.
USDA Secretary Sonny Perdue on Wednesday will visit Georgia for a meeting with school nutritionists. He will be a guest at the School Nutrition Association’s (SNA) Annual National Conference in Atlanta. Topics include a discussion of student access to and consumption of school meals, as well as compliance with federal nutrition standards under the Healthy, Hunger-Free Kids Act championed by former First Lady Michelle Obama.
Perdue has placed a hold on regulations that would reduce sodium and increase whole grains in schools. He also lifted restrictions to allow schools to serve flavored, 1% milk instead of the non-fat that is now required.
Energy bill. The Senate may take up a new version of a comprehensive energy bill (S 1460) aimed at expediting liquefied natural gas exports, safeguarding the electricity grid, and improving building efficiency. Senate Republican leaders bypassed the committee process on the bill and could opt to spend floor time on the energy package as they work out details on a stalled health-care overhaul proposal.
Methane standards. The EPA on Monday will hold a public hearing on a proposed two-year delay of its methane standards for new and modified oil and natural gas wells. A federal appeals court recently vacated a shorter 90-day stay of that regulation.
On the economic report calendar, key reports include the Wholesale Trade on Tuesday, the Fed’s Beige Book on Wednesday, and several reports on Friday, including Retail Sales, the Consumer Price index and Business Inventories.
Wednesday is the big day for key USDA reports, including updated supply and demand forecasts.
