Archive for December, 2009

Geithner: Job growth unlikely until spring

Wednesday, December 23rd, 2009

Geithner: Job growth unlikely until spring
By Michael O’Brien – 12/23/09 08:45 AM ET
The Hill

The U.S. is unlikely to see job growth in December and probably won’t experience any until spring, Treasury Secretary Tim Geithner said Wednesday.

Despite the economy only having shed 11,000 jobs in November, the lowest number of jobs shed per month during the recession, Geithner said job losses are likely to persist.

“I don’t think so,” Geithner said during an appearance on ABC when asked if people could expect to see jobs created in December.

“I think it’s likely — most economists would say that, by the spring, we’ll have positive job growth,” Geithner added, conceding that it’s “possible” that the U.S. could add jobs before then.

Continued job losses have led to some political pressure on Democrats going into 2010’s midterm elections. The Obama administration, in tandem with its allies in Congress, have explored using leftover funds from the Troubled Asset Relief Program (TARP) to spend on a second targeted, jobs-focused stimulus initiative.

Geithner acknowledged the tough economic situation facing Americans, especially as the U.S. revised downward on Tuesday its third quarter economic growth numbers, showing a 2.2. percent increase in gross domestic product (GDP) between July and September.

“It’s very hard still out there; t’s still a very tough economy,” Geithner said. “The crisis just caused a huge amount of damage to people’s basic confidence in their economic future. You see that in business confidence, consumer confidence, too.”

“But the policies that the president put in place, they are doing what they had to do, what they’re supposed to do, and we have an economy that’s growing again at a rate faster than we would have thought, earlier than we would have thought,” the secretary added. “That has to come before you start to see job growth coming.”

Stupak: House abortion-rights foes may oppose Senate healthcare bill

Wednesday, December 23rd, 2009

Stupak: House abortion-rights foes may oppose Senate healthcare bill
By Michael O’Brien – 12/22/09 02:49 PM ET
The Hill

House Democrats who oppose abortion rights “will find it very difficult” to support the Senate’s healthcare bill, Rep. Bart Stupak (D-Mich.) warned Tuesday.

Stupak, the author of an amendment to the House healthcare bill that would forbid federal subsidies from supporting insurance plans that cover abortion, said that he and the 63 other Democrats who supported that amendment were skeptical of the Senate’s language on abortion.

“They know that the 64 Democrats who voted with the Republicans on my amendment, we feel strongly that we cannot support a healthcare bill which goes past the current restrictions, which is no federal funding for abortion,” Stupak said on Fox News, referrring to Democratic leaders in the House.

Stupak, who has said the Senate’s language on abortion is “unacceptable,” warned that the Senate’s provision and other elements of the bill could cost Democrats support for final passage of health reform in the House.

“So, if they go further than that, a lot of us will find it very difficult to vote for the Senate bill,” he said. “Not just because of the abortion language, but even other language in the Senate bill those of us in the House are not pleased to see.”

Both supporters and opponents of abortion rights have decried the Senate’s compromise language on abortion, which was included to win the pivotal 60th vote from Sen. Ben Nelson (D-Neb.). The Senate bill would seek to segregate federal support off from health plans covering abortion by requiring people to write an additional check to pay for abortion coverage themselves.

Stupak said Tuesday that he’d always been able to work out a deal with Democratic leaders in the past, echoing his words on Saturday that he hoped to reach an amenable solution on abortion.

However, a failed deal could imperil the health bill’s chances in the House, especially as leaders of the Congressional Pro-Choice Caucus are mulling how to come down on the Senate language.

The House healthcare bill, which included the Stupak amendment, passed the House on Nov. 7 in a 220-215 vote.

Senate Republicans agree to short-term debt-ceiling vote before recess

Wednesday, December 23rd, 2009

Senate Republicans agree to short-term debt-ceiling vote before recess
By Walter Alarkon – 12/22/09 04:48 PM ET
The Hill

Senate Republicans will allow a Christmas Eve vote to temporarily raise the debt limit, with a promise to revisit the debate after President Barack Obama’s first State of the Union address.

The debt ceiling vote, expected to be the last before the holiday recess, will come immediately after a Thursday 8 a.m. vote to pass the Senate healthcare bill, Senate Majority Leader Harry Reid (D-Nev.) announced Tuesday.

The proposed $290 billion increase would extend the government’s ability to borrow for approximately two months. The increase is necessary with the federal debt approaching its current $12.1 trillion ceiling. The House passed the $290 billion short-term increase last week.

The agreement for a pre-recess debt vote struck between Reid and Senate Minority Leader Mitch McConnell (R-Ky.) also calls for a longer-term debt ceiling raise to hit the Senate floor Jan. 20.

That’s one day after the Senate is scheduled to reconvene and one day after the State of the Union is likely to take place. White House Chief of Staff Rahm Emanuel said last month that Obama will use the speech to call for deficit reduction, which fiscal conservatives have pushed for as the deficit reached a record $1.4 trillion in 2009.

The Jan. 20 date for a debt debate was something McConnell wanted, according to a Republican aide. The debate will highlight the record levels of red ink when “Obama tries to reinvent himself [into] something he’s clearly not,” the aide said.

The timing for votes to pass the healthcare bill and a short-term debt limit increase had been up in the air until Tuesday. Senate Republicans said earlier this week they would use all available time for the healthcare debate and force Democrats to pass the bill after 7 p.m. on Christmas Eve. GOP members also said they would draw out debate on raising the debt ceiling.

Reid and Democrats, who have the votes necessary to pass the health bill, had called on Republicans to allow earlier votes to spare lawmakers from rushing home late on Christmas Eve and then returning to Washington as soon as next week for a debt vote.

The long-term debt limit increase may be designed to allow lawmakers to avoid another debt vote before the 2010 mid-term elections. House Majority Leader Steny Hoyer (D-Md.) said earlier this month that congressional leaders were considering raising the ceiling by as much $1.9 trillion. But centrist Democrats balked at allowing more borrowing authority without a plan to eventually deal with red ink. More than a dozen Senate Democrats, led by Budget Chairman Kent Conrad (D-N.D.), said that their debt ceiling votes were contingent on congressional leaders allowing a vote on a special commission that would come up with a debt reduction plan.

An amendment creating the commission, pushed by Conrad along with Sen. Judd Gregg (R-N.H.), will come up during the January debt limit debate, Reid said. Republican amendments that will be considered seek to institute spending caps, restrict the use of remaining bank bailout money, rescind spending and block the Environmental Protection Agency from regulating greenhouse gas emissions, Reid said.

Final Senate healthcare reform vote is set for 8 a.m. on Christmas Eve

Wednesday, December 23rd, 2009

Final Senate healthcare reform vote is set for 8 a.m. on Christmas Eve
By Jeffrey Young – 12/22/09 03:29 PM ET
The Hill

The 60 members of the Democratic caucus have united twice on procedural votes, meaning passage is all but assured Thursday.

Under Senate rules, the GOP could have insisted that the vote not occur until 7 p.m. but Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) took to the Senate floor Tuesday afternoon to announce an agreement that allows senators to depart Washington sooner to begin the Christmas holiday.

The 60 members of the Democratic caucus have united twice on procedural votes to advance the legislation, meaning passage is all but assured Thursday. On Wednesday, the Senate will hold a cloture vote to end debate on the bill, setting up final action.

Earlier Tuesday, Reid said he was trying to persuade McConnell to agree on the final healthcare vote on Wednesday.

“We hope to be able to complete it tomorrow,” Reid said. “Certainly with ice storms coming to the Midwest we hope that we can finish tomorrow and not have to be here Christmas Eve.”

But the Senate Republican caucus, pressed by conservative activists, have been inflexible about Senate procedure and were determined to push the final vote to Christmas Eve.

“I think it’s important that we take the time to analyze every way we can,” McConnell said.

Reid and McConnell came to terms after the Republican leader sought input from his caucus members during a Tuesday luncheon meeting.

Reid and McConnell also agreed to allow votes on a bill to temporarily raise the federal debt ceiling and several related amendments.

Cornyn: Conservatives ‘have to yield’ to reality in upcoming Senate races

Wednesday, December 23rd, 2009

Cornyn: Conservatives ‘have to yield’ to reality in upcoming Senate races
By Michael O’Brien – 12/23/09 09:34 AM ET
The Hill

Conservative primary voters “have to yield” to reality, Senate Republicans’ campaign chairman said Wednesday.

Sen. John Cornyn (Texas), the chairman of the National Republican Senatorial Committee (NRSC), suggested that conservatives need to have a more realistic sense of which races are winnable and with which candidates.

“Folks on the right, and frankly I’m one of them in terms of voting record, have to yield to the world as it is and not necessarily how they wish it would be,” Cornyn told Reuters for a story about centrist Rep. Mike Castle’s (R) bid for Senate next year in Delaware.

Belying Cornyn’s jab is the battle in which the conservative Texas senator has been locked with party activists over the past few months.

Conservative bloggers like RedState’s Erick Erickson have been consummate critics of Cornyn for having recruited candidates like Gov. Charlie Crist (R) in Florida’s Senate race over a conservative darling, former state House Speaker Marco Rubio (R). The NRSC’s decision to help former Hewlett-Packard CEO Carly Fiorina raise money, while California Assemblyman Chuck DeVore hasn’t received (or requested) support in the GOP race for California’s Senate seat, as well as other primary endorsements, has led to Cornyn battling Sen. Jim DeMint (R-S.C.) and his Senate Conservatives Fund in recent weeks, as well.

Cornyn pointed to his recruitment of Castle, a centrist Republican in a state where statewide offices have generally been controlled by Democrats, as an example of the NRSC facing reality.

“The world as it is in Delaware is that if Mike Castle didn’t run, Beau Biden would be the next senator from Delaware,” Cornyn said, pointing to Vice President Joe Biden’s son, the state’s attorney general and a likely 2010 Democratic candidate against Castle.

Obama seeks to close the deal on healthcare reform in new year

Wednesday, December 23rd, 2009

Obama seeks to close the deal on healthcare reform in new year
By Sam Youngman and Bob Cusack – 12/23/09 11:00
AM ET
The Hill

President Barack Obama’s role in healthcare reform will change from cheerleader to closer in the coming weeks.

Obama, who has largely deferred to congressional leaders on healthcare reform, is expected to play a major role in ironing out differences between the House and Senate in order to sign a bill early next year.

House and Senate Democrats have already started to play the leverage game, with both factions pointing out they have little to no ground to give. The House passed its version 220-215, while Senate Majority Leader Harry Reid (D-Nev.) needed to convince every member of his conference to overcome a 60-vote legislative hurdle on Monday morning.

While the White House has repeatedly insisted that Obama has been very involved in the evolving legislation, many Capitol Hill Democrats have said the president needs to do more.

During a Monday interview on MSNBC’s “Morning Joe,” Rep. Elijah Cummings (D-Md.) called on Obama to play a defining role in the conference discussions to ensure that a public option is included in the final bill.

Yet Obama’s strategy of allowing the lawmakers to legislate has yielded results; Congress is closer to overhauling the nation’s healthcare system than it ever has been.

White House aides, including Rahm Emanuel, Phil Schiliro and Nancy-Ann DeParle, have been actively involved in the knock-down, drag-out process, even as they acquiesced to lawmakers on legislative details.

Still, over the next several weeks, Obama’s team behind closed doors will probably have to take a clearer position on specific provisions if the White House hopes to find a finished product palatable to both chambers.

But White House press secretary Robert Gibbs said on Tuesday that Obama’s role will not change as the legislation moves to conference.

“The president and his team will continue to play the role that they have throughout this process, and that is working with leaders in the House and the Senate, discussing with them policy options,” Gibbs said.

Gibbs said the role the president “and his team have played up to this point has gotten us to the point where, in all honesty, healthcare is not a matter of ‘if.’ Healthcare reform now is a matter of ‘when.’”

He dismissed the criticism of some Democrats who have said that Obama has been too hands-off during the process.

“He’s been criticized for being too active and over- — you know, the one thing the president has resolved in the new year is not to let any of the criticism bother him,” Gibbs said.
Aside from the public option, the White House will need to referee House/Senate differences on abortion, immigration and tax increases, among many other issues.

Ross Baker, a professor at Rutgers University and an expert on the presidency, said Obama’s role will end up being more healer than arm-twister, noting that the conference will almost certainly have to adopt most of what the Senate has adopted.

Though Rep. Dennis Kucinich (D-Ohio) is the only progressive in Congress to formally reject the House or Senate healthcare legislation, many liberals are fuming and threatening to reject what comes out of the House-Senate talks.

They were outraged by heavy restrictions on abortion that were included in the House bill, and the Senate’s rejection of a public option has increased their ire.

House leaders have stressed they will not take up the more centrist Senate legislation, but it is hard to envision the conference bill making a major move to the left.

Given the difficulty of winning 60 votes in the Senate, liberals are unlikely to win concessions on these issues in a conference. That means Obama and his aides will have to convince them that what is left of their hopes for healthcare reform is worth moving.

Obama’s chief task will be “assuaging the hurt feelings” of liberals, Baker said. “I think he’s got to be prepared to act in his pastoral role,” he added.

The president has already been playing that role, to a degree.

In recent months, Obama has not drawn a line in the sand on the public option, nor on other hot-button issues. Instead, he has implored Democrats to unite and focus more on the end result of covering the uninsured and less on the means of how to do it.

On Monday, he emphasized the inclusion of a patients’ bill of rights in the Senate legislation and described the early-morning procedural vote to move it forward as historic.

Speaker Nancy Pelosi (D-Calif.) saved the public option from dying this summer, though at a press conference last week, she did not insist on it being in the final measure.

“Our priority on the public option, the emphasis was not on ‘public,’ ” she said. “The emphasis was on ‘option,’ on ‘something other than.’ ”

Pelosi has also shown a willingness to bow to centrists in order to move healthcare reform.

In order to attract votes in the House this fall, Pelosi at the last moment discarded a more liberal public option and allowed a vote on an anti-abortion amendment, which passed easily.

Reid has also shown a willingness to change the Senate bill to seize political momentum.

Just over the past two weeks, he jettisoned the public option and scrapped a Medicare buy-in proposal touted by liberals in order to win support from centrists such as Sens. Joe Lieberman (I-Conn.) and Ben Nelson (D-Neb.).

Senate passes $1.1 trillion spending bill

Monday, December 14th, 2009

Senate passes $1.1 trillion spending bill
By Susan Crabtree – 12/13/09 03:15 PM ET
The Hill

The Senate passed a huge end-of-the-year $1.1 trillion omnibus spending measure Sunday afternoon by a vote of 57-35.

The chamber was forced to work for the second consecutive weekend after talks broke down late Thursday to move the massive spending package and Republicans continued to filibuster it. Senate Democrats overcame the opposition Saturday when the Senate voted 60-34 to end debate and clear the way for a final vote.

The bill, which includes $447 billion in appropriations for a number of cabinet departments and $650 billion for Medicare and Medicaid, combines six of the 12 annual spending bills Congress had been unable to pass separately because of Republican concerns that the measure is over-inflated and exceeds the cost of inflation in its government budget increases.
Republican fiscal hawks Sens. Jim DeMint (R-S.C.) and Tom Coburn (R-Okla.), as well as centrist Sen. Olympia Snowe (R-Maine), were among the Republicans who voted against it. Democratic Sens. Claire McCaskill (Mo.) and Evan Bayh (Ind.) voted against it while GOP Sen. Richard Shelby (Ala.) voted in favor of it.

Republican National Committee Chairman Michael Steele reacted to passage of the omnibus bill by calling on President Barack Obama to veto it.

“Poll after poll have made it clear that this kind of irresponsible and excessive spending is unacceptable, but Democrats simply aren’t getting the message,” Steele said. “Now the American people are looking to President Obama to stand true to this campaign promises of fiscal responsibility and stage an economic intervention on his spend happy colleagues by vetoing this bill. I encourage President Obama to stand firm against the peer pressure and ‘just say no’ to Congressional Democrats.”

Right after the vote, the Senate was expected to return to legislation to overhaul the healthcare system, with the goal of wrapping up work before the Christmas-week recess. Chances for reaching that goal, however, dimmed last week when Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) failed to reach agreement on a proposal to vote on four healthcare-related amendments at the end of the week.

The House voted Thursday to approve the half-dozen spending bills lumped into one package. That bill passed 221 to 202, with 28 Democrats joining all 174 Republicans present in opposing it. Republicans griped that the measure was too large and introduced late in the week to avoid public scrutiny, especially considering the nearly 5,000 earmarks worth $3.9 billion it contains.

The package includes the bill providing federal funding for D.C., the Transportation, Housing and Urban Development bill; the Commerce-Justice-State bill; the Labor-HHS-Education bill; the military construction-Veterans Affairs bill; and the State-foreign operations bill.

The only measure excluded was the bill funding the Pentagon. Leaders deliberately left it out so they could use it for a vehicle for other high-priority items the House would like to turn to this week. If Congress fails to pass the defense-spending bill by the end of the week when the current continuing resolution funding the government expires, it will have to pass an extension.

Democratic leaders will likely tack on all or part of the job-creation package Obama has requested, as well as an increase in the federal debt limit. Democrats also would like to pass a six-month extension of unemployment insurance and COBRA benefits.

Defense bill comes as calendar crowded by healthcare debate

Monday, December 14th, 2009

Defense bill comes as calendar crowded by healthcare debate
By Roxana Tiron – 12/14/09 06:00 AM ET
The Hill

The House is likely to vote on the final 2010 defense appropriations bill by midweek, putting the ball in the Senate’s court, where scheduling a vote could be more complicated because of the healthcare debate.

Even though conferees have not formally been appointed, House and Senate negotiators finalized the differences in the 2010 defense appropriations bill on Friday afternoon. Rep. Bill Young (R-Fla.), the ranking member of the Appropriations Defense subcommittee, said on Friday afternoon that there were no more outstanding issues on the defense part of the bill.

Now, House Democrats are working to include an increase in the debt ceiling as well as additional funding for increased unemployment benefits, COBRA health insurance, food stamps and Medicaid. The $636 billion Pentagon spending bill will likely also be the vehicle for the extension of the Patriot Act.

Sen. Daniel Inouye (D-Hawaii), the chairman of the Senate Appropriations Committee, told The Hill that he would try to have the bill passed in the Senate as soon as possible.
“I want to go home for Christmas,” Inouye said.

There is still a possibility that appropriators have to craft another continuing resolution to fund the Defense Department until the Senate can agree on a time to vote on the bill. The Pentagon is currently funded through a continuing resolution that expires Dec. 18.

If they don’t appoint official conferees, the way the House and Senate could take up the $636 billion defense bill with the additional legislation is by using the Senate version of the bill as a shell. Appropriators would strip out the contents of the Senate bill and fill in the negotiated defense bill as well as the additional provisions. By doing it that way, it ensures that the bill won’t be open to amendments in the Senate.

As Congress takes up the Defense bill, another issue is likely to engulf the Texas and Wisconsin delegations next week. The Government Accountability Office (GAO) is expected to issue an opinion on a protest filed by BAE Systems, which lost out on a lucrative military truck contract to Oshkosh, based in Wisconsin. Another company, Navistar, also filed a protest, but all eyes are on the tug-of-war between BAE and Oshkosh.

The GAO is expected to reach its decision to uphold or reject BAE’s protest on Monday. Either way, the decision is likely to inflame one of the two delegations. BAE, the incumbent contractor for the so-called Family of Medium Tactical Vehicles (FMTV), builds the trucks in Sealy, Texas.

The two Texas senators are already threatening to hold up the nomination of the Army’s new acquisition chief, Malcolm Ross O’Neill, unless the Army reconsiders its position on the FMTV contract. The Senate is expected to hold a confirmation hearing for O’Neill, a former Lockheed Martin executive, on Thursday.

However, the Wisconsin delegation, which has thrown its full support behind Oshkosh, is not likely to go down without a fight.

In a letter to Defense Secretary Robert Gates in October, the delegation, which boasts powerful House Appropriations Committee Chairman David Obey (D-Wis.), lashed out at critics of the Army contract, worth an estimated $3 billion.

Poll: Slight majority favor cap-and-trade

Friday, December 11th, 2009

Poll: Slight majority favor cap-and-trade
By Michael O’Brien – 12/11/09 11:02 AM ET
The Hill

A slight majority of Americans support cap-and-trade legislation to address climate change, a new poll found.

Fifty-two percent of Americans said they support the proposed system to limit emissions, while 41 percent are opposed, according to an Ipsos Public Affairs poll released Friday morning. Seven percent were unsure of their thoughts on the bill.

The poll lends a bit of a boost to the controversial environmental legislation in the U.S. before a global climate change summit kicks in to full effect in Copenhagen, Denmark.

Republicans have derided the legislation, which passed the House in a razor-thin vote this summer but has been struggling to progress in the Senate, as a de facto tax on Americans.

And the poll makes clear: There is a limit to how much Americans are willing to pay to put in place the cap-and-trade system.

Fifty percent of Americans said they would support the program if it raised their electricity bill by $10 per month, while 48 percent would oppose it. Support drops to 43 percent if it were to make Americans’ bills $25 more expensive, while 55 percent said they would oppose it.

Support for the program, however, is boosted by the prospect for green job creation, even if it meant more expensive electricity bills.

Sixty-nine percent of Americans said they would support cap-and-trade if it meant more green jobs but a $10 more expensive bill, with 29 percent opposed. 60 percent would be willing to endure paying $25 more if it meant more green jobs, with 36 percent opposed.

The poll, conducted for McClatchy News from Dec. 3-6, has a 2.93 percent margin of error.

House Democrats pass $447B omnibus

Friday, December 11th, 2009

House Democrats pass $447B omnibus
By Walter Alarkon – 12/10/09 03:30 PM ET
The Hill

House Democrats passed a massive $447 billion appropriations conference report Thursday to fund a host of different government agencies in fiscal 2010.

The conference report, approved on a 221-202 vote, didn’t get any support from House Republicans, who raised concerns about spending increases.

The omnibus was opposed by 28 Democrats, a group that was made up of mostly centrists. Rep. Corrine Brown (D-Fla.) voted “present” on the conference report because of her opposition to a language in the report allowing Amtrak train passengers to check in handguns with their baggage, her office said.

In the Senate, Democrats and Republicans are tussling over when to vote on the conference report, which combines six of the seven remaining 2010 appropriations bills. Senate Majority Leader Harry Reid (D-Nev.) is pushing for a quick vote on the spending measure to avoid a weekend session, but GOP senators said they may force Reid to file cloture on the bill and hold a weekend session.

The spending bills in the package are the ones for: the Transportation and Housing and Urban Development departments; the Commerce and Justice departments and federal science funding; financial services and general government agencies; the Labor, Health and Human Services and Education departments; military construction and the Department of Veterans Affairs; and the State Department and foreign operations.

Congress has a Dec. 18 deadline to get the conference report signed into law to avoid a government shutdown. A continuing resolution, which allowed government to operate without approved funding after the Oct. 1 start of the fiscal year, expires on that date.

GOP members raised concerns that the bills will contribute to a 12 percent discretionary spending increase over last year.

“Sadly, the misplaced priorities of this Congress have resulted in too much spending, fewer jobs and bigger government that the public doesn’t want and can’t afford,” said Rep. Jerry Lewis (Calif.), the top House GOP appropriator.

House Democrats said the package will provide relief as the economy tries to emerge from a recession. Included in the $447 billion in discretionary spending for daily government operations is $3.7 billion for state and local law enforcement grants, $2.5 billion for high-speed rail projects and $2.2 billion for new community health centers. Also attached to the bill are more than $600 billion for Medicare and Medicaid benefits for 2010.

“The country is struggling to overcome the longest and deepest economic downturn since the Great Depression,” said House Appropriations Committee Chairman David Obey (D-Wis.).

“The bill before us today is one of the key measures Congress will pass this year to help address those problems and provide relief for millions of hardworking Americans caught in a struggle for economic survival,” Obey added in a statement.

Minutes after the House passed the conference report Thursday, the Senate voted 56-43 to suspend debate on its healthcare bill and take up the omnibus spending measure.

But Senate Republicans signaled opposition to a vote on the omnibus Thursday. GOP senators said they may draw out debate and foil Reid’s plans to avoid another weekend session. The upper chamber has held two weekend sessions in the past month to work on the healthcare bill.

“We will certainly have discussion about a bill that has 4,072 earmarks totaling $3.7 billion in it,” said Sen. John McCain (R-Ariz.) Thursday.