The Week Ahead: Dec. 1 – 5

Lame Duck: Back in Session

Congress returns on Monday to continue its Lame Duck Session. Already, Members of Congress who aren't returning in January are moving out of their offices. Many are operating with just one or two staff members who are focused primarily on archiving. While the 113th Congress is winding down, there remain some important issues to address.

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Avoiding a Government Shutdown

The FY 2015 budget is set to expire on Dec. 11th. Congress must act on the budget in order to avoid a government shutdown. And it seems that Republicans and Democrats alike agree on one thing: to avoid a government shutdown this year! 

From our Hill Sources: Before adjourning for the midterm elections, Congress passed HJRes 124, a continuing resolution that funds the federal government until Dec. 11. Congress's next big decision will be whether to pass another short-term continuing resolution, rush to pass a more comprehensive omnibus bill — or perhaps a hybrid funding bill.

A continuing resolution + omnibus = cromnibus?!? Some are calling this approach the "Cromnibus," while others are calling it the "Price Plan," after the incoming chairman of the House Budget Committee. Such a hybrid model would allow Congress to pass a continuing resolution for some of the more politically "controversial" programs with no changes in policy or funding levels, while working on new funding levels for other programs.  Immigration-related programs and initiatives, for example, would be included in the continuing resolution — punting the issue to the next Congress in 2015.

Immigration

In November, President Obama announced his plans for immigration reform:

If you’ve been in America for more than five years; if you have children who are American citizens or legal residents; if you register, pass a criminal background check, and you’re willing to pay your fair share of taxes — you’ll be able to apply to stay in this country temporarily without fear of deportation. You can come out of the shadows and get right with the law."

From our Hill Sources: Many Republicans on Congress have been outspoken about the President's changes to immigration policy; however, the issue may be punted to the new Congress. The hybrid continuing-resolution–omnibus strategy would allow Congress to extend current immigration program funding without having to debate funding for President Obama's new immigration initiatives. While using the option of a government shutdown to force changes to the new immigration policies may look like an option, it is not a viable one: US Citizenship and Immigration Services, the key agency responsible for implementing many of the President's new policies, is funded through fees and would continue to operate and implement those changes even during a shutdown.**

** Note: A POPVOX user pointed out that US Citizenship and Immigration Services wouldn't necessarily continue to operate during a shutdown. Its employees are paid by federal appropriations, so Congress could forbid them to process documents, including those related to the President's new policies. Additionally, regardless of whether funding comes from user fees or taxes, Congress has clear authority under Article I of the US Constitution to control how all federal money is spent. (Source: Red State, 11/28/14)

Bills Introduced Related to the President's Executive Actions

In the meantime, several bills have already been introduced in response to the President's new immigration policy. 

• Separation of Powers Act (HR 5768)

  “Would prohibit the use of funds for granting deferred action or other immigration relief to aliens not lawfully present in the United States,” according to bill sponsors.

• Executive Amnesty Prevention Act (HR 5759)

  “Clarifies that the Executive Branch does not have the authority to exempt categories of persons unlawfully present in the U.S. from removal,” according to the bill sponsor.

• Defense of Legal Workers Act (HR 5761)

  “Protects people who are legally authorized to work in the United States by clarifying that illegal immigrants granted amnesty by executive action cannot be issued work permits,” according to bill sponsor.

• HRes 757

  Providing for authority to initiate litigation for actions by the President or other executive branch officials inconsistent with their duties under the Constitution of the United States with respect to the implementation of the immigration laws. According to the resolution’s sponsor: "The federal courts are best suited to determine if Obama is exceeding his authority, and, if so, how to reverse it. Under America’s Constitution, we elect presidents, not dictators or tyrants. Under our system of government, legal disputes of this nature are for the courts to decide. My resolution empowers the US House of Representatives to do that.”

Tax Extenders

Congress may consider extending certain tax provisions that expired on January 1, 2014 — and reinstituting them retroactively. Senate Finance Committee Chairman Ron Wyden (D-OR) is hopeful to pass tax extender legislation during the Lame Duck session:

• EXPIRE Act (S 2260):

  Provides an expiration date for America’s dysfunctional tax code. "Its passage is a jumping off point for comprehensive bipartisan tax reform that focuses on America’s economic growth and strengthening the middle class,” according to the Senate Finance Committee. As Committee Chairman Wyden explained, "in the absence of needed long-term reforms, here’s what happens if Congress now just drops extenders at this time":

• The tax credit that helps returning veterans find good-paying jobs would expire.
• The biggest federal incentive for scientific research would vanish. 
• Homeowners fortunate enough to have their mortgages lowered or forgiven could get hit with a huge, unexpected tax bill. 
• Without the New Markets Tax Credit, communities mired in poverty would lose a proven tool to draw investments and jobs.
• Clean energy would take a blow, threatening good American jobs and our ability to compete on technology with countries like China and Japan.
• Families paying for college would lose a $4,000 deduction.

The Administration's Response to Tax Extenders Proposal

The White House has hinted that the President will veto the tax extenders proposal: “The President would veto the proposed deal because it would provide permanent tax breaks to help well-connected corporations while neglecting working families,” said Jen Friedman, deputy White House press secretary. And Treasury Secretary Jack Lew explained further:

There are reports today that Congress may be considering a potential deal on extenders that would do very little for working families and would be fiscally irresponsible.  An extender package that makes permanent expiring business provisions without addressing tax credits for working families is the wrong approach, at the expense of middle class families.  Any deal on tax extenders must ensure that the economic benefits are broadly shared. We are committed to working with Congress to address the issue in a manner that is fiscally responsible and extends critical tax benefits for working families."

The House may take a piecemeal approach to address the expired provisions included in the Senate’s EXPIRE Act. They’ve introduced a series of bills that would make 10 provisions permanent, including:

• America Gives More Act (HR 4719):

  According to the House Ways and Means Committee, this bill: will make permanent and expand the charitable deduction for contributions of food inventory by businesses regardless of how they are organized; ensures that seniors who donate to charities from their Individual Retirement Accounts can do so without a tax penalty; will make permanent the deduction for contributions of conservation easements. — Passed the House on July 17, 2014; goes to the Senate next for consideration —

• American Research and Competitiveness Act (HR 4438):

  —Bipartisan— Makes permanent the research and development credit, which has been part of the tax code since 1981, according to the House Ways and Means Committee. — Passed the House on May 9, 2014; goes to the Senate next for consideration —

• Permanent S Corporation Built-In Gains Recognition Period Act (HR 4453):

  —Bipartisan— "Under current law, an S corporation is subject to an entity-level tax at the highest corporate rate on certain built-in gains of property that it held while operating as a C corporation,” according to the House Ways and Means Committee. "The tax applies to gain recognized within ten years from the date that the C corporation elected to be an S corporation, and in the past, Congress has shortened that period to five years. This bill would make permanent the five year period, eliminating a significant deterrent that often discourages closely held C corporations from electing S corporation status, thus subjecting them to double tax." — Passed by the House on June 12, 2014, and goes to the Senate next for consideration. —

• CFC-related payment look-through rule (HR 4464):

  —Bipartisan— Makes permanent the look-through treatment of payments between related controlled foreign corporations 

• Permanently Extend the Subpart F Exemption (HR 4429):

  —Bipartisan— Would permanently extend the subpart F exemption for active financing income. 

• Permanent Bonus Depreciations (HR 4718):

  —Bipartisan— Would "help companies better access capital, invest in new facilities and create American jobs by permanently extending 50 percent bonus depreciation – i.e., allowing businesses to deduct immediately, or “expense,” half of the cost of new equipment purchases – while lifting some restrictions to allow certain tax credits to be used for capital reinvestment, and ensuring more companies may take advantage of bonus depreciation,” according to the bill sponsor.  — Passed by the House on July 11, 2014 and goes to the Senate next for consideration —

• America’s Small Business Tax Relief Act (HR 4457):

  —Bipartisan— Would provide a permanent extension of Section 179 expensing at a level of $500,000. According to the House Ways and Means Committee, "Section 179 is a bipartisan provision that has been in place since the 1950’s. But, businesses, farmers and ranchers cannot reap the full benefits when they have no idea if the provision is going to be around the next year, or what it may look like. This hurts their ability to plan for the future and expand their business." — Passed by the House on June 12, 2014 and goes to the Senate next for consideration —

NDAA

Congress has approved a National Defense Authorization Act (NDAA) — which sets the budget and expenditures of the Department of Defense — for 52 consecutive years. But this year, negotiations between the House and Senate have stalled. The House passed its version in May 2014:

According to House Armed Services Committee Chairman McKeon (R-CA): "This is solid legislation, built after many long months of intensive oversight work. But, it is not perfect legislation. We had to make too many cuts, too many hard tradeoffs, and too many reductions to bring this bill in with $30 billion less than we gave DoD last year. I fear these will leave our war fighters fewer tools to succeed. Nevertheless, this year we were able to hold off disaster. Unless something changes, the choices next year will be brutal."

• NDAA — House Version (HR 4435)

  —Bipartisan— Authorizes $521.3 billion in spending for national defense and an additional $79.4 billion for Overseas Contingency Operations (OCO), primarily in Afghanistan.

The Senate's version has not been voted on:

• NDAA — Senate Version (S 2410)

  Provides $514 billion for national defense, including $496 billion for the Dept. of Defense base budget and $17.7 billion for national security programs. Specifically prohibits the U.S. Air Force from retiring A-10 aircraft for one year, and would improve the prospects of competition for military space launch and help move the Pentagon away from using taxpayer dollars to purchase rocket engines from Russia. (Source: Senator John McCain (R-AZ))

From our Hill Sources: Both heads of the House and Senate Armed Services Committees — Rep. Buck McKeon (R-CA) and Sen. Carl Levin (D-MI) — are retiring this year. But negotiations have stalled around raising out-of-pocket fees for Tricare and housing allowances for military families.

Individuals with Disabilities

The House may consider:

• ABLE Act (HR 647)

  —Bipartisan— "Aims to ease financial strains faced by individuals with disabilities by making tax-free savings accounts available to cover qualified expenses such as education, housing, and transportation," according to the bill sponsor. "The ground-breaking bill has earned more bipartisan, bicameral support than any other bill in Congress. ABLE would supplement, but not supplant, benefits provided through private insurances, the Medicaid program, the supplemental security income program, the beneficiary’s employment, and other sources."

Financial Institutions

The House will vote on:

• Financial Institution Bankruptcy Act (HR 5421)

  —Bipartisan—  According to the House Judiciary Committee, "incorporates the recommendations of hearing witnesses, regulators and experts from three Committee hearings on the subject over the past year. The legislation specifically adds a new subchapter V to chapter 11 of the Bankruptcy Code to address the resolution of financial institutions, including large, multi-national financial firms."

• Disclosure Modernization and Simplification Act (HR 4569)

  Directs the Securities and Exchange Commission (SEC) to: (1) issue regulations permitting issuers to submit a summary page on annual and transition report form 10-K if each item on that page cross-references the material contained in form 10-K; (2) revise regulation S-K in order to reduce the burden on smaller issuers, including emerging growth companies, accelerated filers, and smaller reporting companies; and (3) eliminate duplicative, overlapping, outdated, or unnecessary provisions in regulation S-K.

• SBIC Advisers Relief Act (HR 4200)

  —Bipartisan— "Amends the Investment Advisers Act of 1940 to reduce unnecessary regulatory costs and eliminate duplicative regulation of advisers to SBICs," according to the House Financial Services Committee.

• HR 5471 

  —Bipartisan— To amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions.

• Regulation D Study Act (HR 3240)

  —Bipartisan— "Directs the Government Accountability Office to study Regulation D and recommend common-sense updates that take into consideration the widespread use of online banking tools," according to the bill sponsor. "'Regulation D,' which was implemented in 1980, limits customers to just six remote transfers between their checking and savings accounts per month. This includes online, ATM, and telephone transactions."

National Security and Foreign Affairs

• Strengthening Domestic Nuclear Security Act (HR 5629)

  Amends the Homeland Security Act of 2002 to require the Director for Domestic Nuclear Detection: (1) in carrying out the mission of the Domestic Nuclear Detention Office, to provide support for planning, organization, equipment, training, exercises, and operational assessments to federal, state, local, territorial, and tribal entities to assist in implementing radiological and nuclear detection capabilities in the event of a radiological or nuclear act of terror or other attack; and (2) to establish the Securing the Cities (STC) program to enhance the ability of the United States to detect and prevent a radiological or nuclear act of terror or other attack in high-risk urban areas.

• National Laboratories Mean National Security Act (HR 3438)

  —Bipartisan— Would "ensure the full resources of Department of Energy (DOE) labs like Lawrence Livermore and Sandia National Laboratories are clearly available to help states and localities secure our country," according to the bill sponsor. "The government-owned, contractor-operated structure of the national labs has caused some state and local recipients of federal homeland security grants to decline to utilize DOE labs because of a mistaken belief that these funds would be paid impermissibly to the federal government as opposed to contract operators."

• Resolution Condemning Russia (HRes 758)

  —Bipartisan— Resolution strongly condemning the actions of the Russian Federation, under Vladimir Putin, which has carried out a policy of aggression against neighboring countries aimed at political and economic domination.

• South China Sea Resolution (HRes 714)

  —Bipartisan— Reaffirming the peaceful and collaborative resolution of maritime and jurisdictional disputes in the South China Sea and the East China Sea as provided for by universally recognized principles of international law, and reaffirming the strong support of the United States Government for freedom of navigation and other internationally lawful uses of sea and airspace in the Asia–Pacific region.

• United States–Israel Strategic Partnership Act (S 2673)

  —Bipartisan— Expresses the sense of Congress that Israel is a major US strategic partner. Amends the Department of Defense Appropriations Act, 2005 to extend authority to transfer certain obsolete or surplus Department of Defense (DOD) items to Israel. — Passed by the Senate in Sept. 2014. —

Land and Water Bills

The House will also vote on several bills related to land use and water rights.

• Bill Williams River Water Rights Settlement Act (HR 4924)

  —Bipartisan— "Would facilitate the achievement of a fair and equitable settlement of certain claims within the Bill Williams River Watershed among the Hualapai Tribe, the U.S. Department of the Interior acting on behalf of itself and as trustee for the Tribe and, its members, the Arizona Game and Fish Commission, and Freeport-McMoRan," according to the bill sponsor.

• Blackfoot River Land Exchange Act (S 2040)

  Extinguishes all claims and all right, title, and interest in specified Indian and non-Indian land as part of the settlement of disputes within the Fort Hall Indian Reservation of the Shoshone-Bannock Indian Tribes in Idaho resulting from the realignment of the Blackfoot River by the Corps of Engineers in 1964. — Passed by the Senate in Sept. 2014. —

• May 31, 1918 Act Repeal Act (HR 5050)

  "Would repeal a 1918 Act that gave the federal government authority to unilaterally take Shoshone-Bannock tribal land out of trust and transfer it to a local government for use as a township," according to the bill sponsor.

• Nevada Native Nations Lands Act (HR 2455)

  —Bipartisan— Includes seven tribal lands measures, as well as a smaller purchase by the City of Elko. “These are all cases where local control and economic self-determination are preferable to Washington-centric management by a federal agency,” according to the bill sponsor. “These lands will enable the tribes to chart brighter futures for their communities and to better preserve their cultural heritage.”

• HR 3572 

  To revise the boundaries of certain John H. Chafee Coastal Barrier Resources System units in North Carolina.

Also in the House…

In addition, the House will consider these bills:

• Ensuring Access to Justice for Claims Against the United States Act (HR 5683)

  —Bipartisan— According to the House Judiciary Committee, "fixes the “jurisdictional dance” that 28 U.S.C. § 1500 creates for individuals who seek redress from actions taken by the federal government that infringe on their constitutional, statutory, or contractual rights. The legislation’s changes to Section 1500 are designed to ensure that government employees, members of the armed forces, property owners, government contractors, Indian tribes, and others can receive the relief they are entitled to when the federal government infringes on their constitutional rights. Those with meritorious claims against the United States should no longer be forced to face antiquated and unfair procedural obstacles."

• No Social Security for Nazis Act (HR 5739)

  —Bipartisan— "Stops Social Security benefits to those who participated in Nazi persecutions by closing a current-law loophole which allowed a small number of known Nazis to retain their benefits," according to the bill sponsor.

• Pest Management Records Modernization Act (HR 5714)

  —Bipartisan— Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to authorize commercial applicators of pesticides to create, retain, submit, and convey a pesticide application-related record, report, data, or other information in electronic form to satisfy any federal, state, or local law.

• Native American Housing Assistance and Self–Determination Reauthorization Act (HR 4329)

  —Bipartisan— Amends the Native American Housing Assistance and Self-Determination Act of 1996 to give the Secretary of Housing and Urban Development (HUD) 60 days to act before the request of an Indian tribe for a waiver of certain local cooperation, housing plan, environmental review, or development cost requirements is deemed approved under the program providing tribes with block grants for affordable and self-determined housing activities.

• Housing Assistance Efficiency Act (HR 2790)

  Amends the McKinney-Vento Homeless Assistance Act to allow (in addition to a state, local government, or public housing agency) a private nonprofit organization to administer permanent housing rental assistance provided through the Continuum of Care Program under the Act.

• World War I American Veterans Centennial Commemorative Coin Act (HR 2366)

  —Bipartisan— Directs the Secretary of the Treasury to: (1) mint and issue $1 silver coins in commemoration of the centennial of America's involvement in World War I, and (2) hold a competition and provide compensation for its winner to design the obverse and reverse of the coins. Permits the Secretary to issue such coins only during calendar year 2018.

Please keep in mind that highlighting a bill doesn't imply a POPVOX endorsement in any way. Rather, we're simply trying to offer one more way to stay informed of an overwhelmingly complex legislative system.