OMINOUS CLOUDS OVER THE OMNIBUS?
Once new caps for the FY'18 Omnibus spending bill were agreed upon by Republican and Democratic leaders on February 9, you might have thought that the heavy lifting was done.The final package is still being negotiated among the Appropriations leaders (the Chairmen and the Ranking Members of the House and Senate Appropriations Committees) with input from the leadership in the House and Senate. The White House has been giving their input as well. The hope was to have the final package ready to go to the House floor today and be ready for Senate action next week. Those plans were scuttled over the past 24 hours. Remember the current CR runs out on March 23rd with government funding running out at midnight.
The totals for defense ($629B) and non-defense ($579B) discretionary spending were agreed to increasing those topline numbers by more than $80 billion and $60 billion per year, respectively. Now there is the usual wrangling over how the total dollars are spent. But there is also the question of what riders will be added to the final Omnibus given that it may be the last piece of must-pass legislation Congress considers until after the November midterm elections.That is where the fight is. Here are the biggest issues in the midst of the negotiations that are currently thwarting leadership:
DACA –President Trump indicated again that he’s open to a deal and this has been the Democrats priority on spending bills, but given the court situation and their focus on guns laws it may drop off the list. Don't forget about funding for a border wall between the U.S. and Mexico.
Guns - Discussions on making changes to the NICS reporting system may be included, unlikely to go further than that.
Cost Saving Reductions - the Alexander-Murray legislation would provide appropriations funding for these ACA spending supports, some Democrats are cooling on this proposal although it is one of the items Senator Susan Collins (R-ME) mentioned on her request list during the tax reform debate.
Reinsurance - this is another Collins request from the tax bill debate, there are now several variations (each more expensive than the last - the latest proposal is $30 Billion over ten years), many House Republicans see this as the silver bullet to help them cope with premium increases which will be announced in September before the fall elections.
Internet Sales Tax - this legislation has been debated for years but has never made it out of committee, some see this as the best vehicle for carrying this controversial policy.
Gateway Tunnel - This is a special program favored by the Senate Minority Leader Chuck Schumer and the New York/New Jersey delegations (the Chairman of the House Appropriations Committee is Rep. Rodney Frelinghuysen (R-NJ), the cost in the bill is $900 million, total project cost is $30 Billion with the federal government footing most of the bill. Trump has threatened a veto if this is included in the final measure.
Campaign Finance – Senate Majority Leader Mitch McConnell has long wanted to enhance the power of political parties in campaign funding and has suggested language to accomplish this in the Omnibus.
Planned Parenthood - a prohibition on U.S. funding for international groups that provide abortion services and funding for Planned Parenthood.
It is unlikely that this whole list of riders will be added to the Omnibus. The Trump Administration has proposed that in return for the CSR and reinsurance health care spending that the bill should at least add language that mirrors their proposal to extend short-term duration health plans to 364 days and to make them guaranteed renewable. Senator John Barrasso (D-MT) has introduced legislation to do this. Democrats have registered their opposition. Some of the repeal and replace groups are opposed especially to the reinsurance spending. What the political reaction will be to that and any other of these proposals is yet to be determined.
The plan to pass the Omnibus spending bill in a quiet, orderly manner has given way to the usual chaos and infighting. Expect the typical drama next week. We don't see many of the aforementioned riders being included in the final measure and should leaders get close to the brink on Friday, the optimal way forward will likely be a "clean" Omnibus. House Speaker Paul Ryan is expected to release the bill as late as Sunday or Monday leaving legislators little time scour a document expected to be over 1,000 pages long.
CALL REPLAY: ROLLING BACK DODD-FRANK: The Senate passed the bipartisan ECONOMIC GROWTH, REGULATORY RELIEF, AND CONSUMER PROTECTION ACT (S. 2155) sponsored by Senate Banking Committee Chairman Mike Crapo by a vote of 67-31. The path to the measure becoming law is uncertain as negotiations with House Financial Services Chairman Jeb Hensarling wants the House imprint on Dodd-Frank reforms and doesn't appear to be backing down. We discussed the Senate deregulation bill, convergence with Hensarling's efforts and next steps. CLICK HERE to listen to a replay of the call.
EVENT INVITE | UHS, ACHC AND AAC AND THE FEDERAL/STATE RESPONSE TO OPIOID CRISIS: Emily Evans will discuss the rapidly changing Federal and State payment policies and what they mean to AAC, ACHC, UHS. President Trump and most State Governors have made addiction prevention and treatment a high priority in 2018. To be successful, they will need to overcome coverage and payment policies and stymie a steady flow prescription drugs from providers to patients. We will look at all the major new policy trends and the relative position of UHS, AAC and ACHC in the emerging landscape. Join Emily on Monday, March 19th at 10AM ET. Contact for access.
TILLERSON'S DEPARTURE SIGNALS END OF IRAN NUCLEAR DEAL AND HIGHER OIL PRICES: Our Senior Energy Analyst Joe McMonigle writes that Trump faces a May 12 deadline to waive oil sanctions on Iran to preserve nuclear deal. Venezuela sanctions may also be impacted. Read his note here.
