The finish line for Congress could come this week as House and Senate leaders continue to negotiate the details of a continuing resolution (CR) to keep the government running beyond the end of this month and into December, through the November election. The emerging details of the funding deal will overwhelm any other activity occurring in either chamber this week. Many members remain optimistic about heading home and back to the campaign trail early for the pre-election recess, but major points of contention over possible provisions of the CR were unresolved as of Friday evening.
Congressional leaders and the President are in agreement that the CR will run through December 9. The Senate continues to take the lead in the discussions and plans to act first once an agreement is reached. Details of the bill remain unresolved, and as Senate Republican Whip John Cornyn noted last week, until every detail is resolved, nothing is resolved.
As discussed in previous columns, disagreements reportedly continue over Zika funding because of Republican demands for offsets for the spending and restrictions for Planned Parenthood-affiliated clinics in Puerto Rico; Democrats oppose these demands. While legislative language is exchanged among congressional leadership offices, other members have floated ideas for other issues to include in the eventual CR package. Among those proposals is emergency funding for Louisiana to support relief efforts after the August flooding there. Democrats want funding to assist communities with contaminated drinking water systems, as in Flint, Michigan. Another proposal would prevent the transfer of internet governance from the Commerce Department’s National Telecommunications and Information Administration (NTIA) to the ICANN, an international nonprofit organization. That transfer is scheduled to take effect on October 1.
Senate Majority Leader Mitch McConnell (R-KY) has scheduled a procedural vote on the legislative vehicle for the CR, H.R. 5325, for Monday, but the timing for this vote could be pushed back if the bill is not finalized over the weekend. The Senate is unlikely to work on any other legislative business during this week, except for measures that can pass by unanimous consent. Once the CR is approved, the Senate is expected to break until after the elections.
The House is scheduled to return on Tuesday, when it plans to consider 35 bills under suspension of the rules. The heavy suspension package includes a number of non-substantive items, such as U.S. postal-facility and courthouse name designations, a bill to make U.S. Olympic medal winners’ medals and related compensation tax exempt, and a community counterterrorism preparedness bill. On Wednesday, the House will consider an additional 14 bills under suspension of the rules. As the heavy work load shows, this is the time of year Congress tries to clear the decks. Some of these suspensions may even make it through the Senate this week (the Olympic medal-winners’ tax bill is one because it has already passed the Senate (due to the constitutional requirement that revenue bills originate in the House, this House bill is the version that will be enacted).
Once the suspensions have been dealt with, members will turn their attention to H.R. 3438, the REVIEW Act, legislation to postpone the effective date of high-impact rules pending judicial review. The legislation would require federal agencies to postpone the implementation of any rule imposing an annual cost on the economy of at least $1 billion if a petition seeking judicial review of that regulation is filed within 60 days of the rule taking effect. Under the bill, implementation would be postponed until any judicial review is resolved. Consideration of H.R. 3438 in the House will be subject to a rule. The bill is another in a series of House Republican bills designed to enhance oversight and transparency of the regulatory process, but the bill stands no prospect of Senate consideration either prior to the recess or in the lame duck session.
The House will then consider two bills related to the Obama Administration’s recent admission of $1.7 billion cash payment for a claims settlement to the Government of Iran. H.R. 5931, the Prohibiting Future Ransom Payments to Iran Act, would prohibit an Administration from making future cash payments to the Government of Iran. The House will also consider H.R. 5461, the Iranian Leadership Transparency Act. This legislation would require the U.S. Department of Treasury to provide reports in 2017 and 2018 to the Congress on the financial assets held by specified Iranian political and military leaders. The reports would describe how the assets were acquired and any unclassified portions of those reports would be posted on the Treasury’s website in multiple languages. Consideration of each bill will be subject to a rule. These bills too reflect an effort to make a political statement that Republicans hope will highlight to their benefit and the benefit of their presidential nominee the Obama Administration’s dealings with Iran to allow that country’s nuclear program, ostensibly for civilian purposes, to continue.
This week the House also continues its work on the Republican “innovation agenda,” with consideration of H.R. 5719, the Empowering Employees through Stock Ownership Act. This legislation would allow employees at certain startups who own stock in their companies to defer paying taxes on their investments for seven years or until the company stock becomes tradable on an established market. The bill also provides exclusions for specific groups of employees, such as CEOs. Consideration of H.R. 5719, which was favorably reported by the House Ways and Means Committee on a voice vote, will be subject to a rule.
The final item on the floor agenda scheduled for this week, other than potential consideration of a CR, is H.R. 1309, the Systemic Risk Designation Improvement Act of 2015. H.R. 1309 would amend the Dodd-Frank law to alter the process by which federal regulators determine which bank holding companies should be designated as systemically important financial institutions (SIFIs). Under current law, all banks with consolidated assets exceeding $50 billion are automatically designated as SIFIs. H.R. 1309 would repeal the automatic designation for such bank holding companies and establish a process under which such firms would be designated on a case-by-case basis. Consideration of the bill will be pursuant to a rule.
The House also aims to consider the CR in the event agreement is reached on the legislation and the Senate acts on it favorably. Once the House passes the CR, it too plans to adjourn until after the elections.
Committees on both sides of the Capitol continue their activities before adjourning until the lame duck session.
The high-profile event of the week will be the appearance of embattled Internal Revenue Service (IRS) Commissioner John Koskinen before the House Judiciary Committee. Members of the conservative House Freedom Caucus have led an effort to impeach Commissioner Koskinen over allegations of misconduct during the congressional investigation of the political targeting of conservative non-profit groups by the IRS. The Judiciary Committee met previously in May and June to hear testimony from members of the Oversight Committee that, along with the Ways & Means Committee, has led the inquiry into the alleged political manipulation by the IRS, and from outside experts on recommendations for congressional action. Even though the Judiciary Committee has not acted since those hearings on formal articles of impeachment, the members of the House Freedom Caucus last week attempted to force a vote. The rebellion resulted in a negotiation with Speaker of the House Paul Ryan and Judiciary Committee Chairman Bob Goodlatte (R-VA). The negotiations produced an agreement to postpone the controversial vote until after the November election, if at all, in exchange for Commissioner Koskinen’s appearance before the Judiciary Committee this Wednesday morning. Several members of the House Freedom Caucus, including its chairman, Rep. Jim Jordan (R-OH), are members of the Judiciary Committee and will have the opportunity to question the Commissioner directly on his involvement in the scandal (Rep. Jordan also serves on the Oversight Committee).
The House Oversight and Government Reform Committee continues its investigation into former Secretary of State and current Democratic presidential candidate Hilary Clinton’s use of private email while at the State Department. The committee is conducting a review of the FBI’s investigative file on Secretary Clinton’s private email. In its initial hearing, the committee heard from the contractors and officials who set up and maintained Clinton’s email servers and mobile devices during her tenure at the State Department. The committee also heard from the FBI’s Acting Assistant Director for Congressional Affairs, Jason Herring, last Monday, regarding classifications and redactions in the documents the FBI provided to Congress. Committee Chairman Jason Chaffetz (R-UT) has now subpoenaed the FBI seeking the full investigative file. The committee plans hearings this week on Tuesday and Thursday.
Two embattled CEOs are scheduled to testify before congressional committees this week over investigations into their business practices. John Stumpf, chief executive of Wells Fargo will appear before the Senate Committee on Banking, Housing, and Urban Affairs on Tuesday to testify over allegations its employees opened more than two million accounts for existing customers without their approval in order to reach company sales goals. Last week Wells Fargo agreed to pay a $185 million fine levied by the Consumer Financial Protection Bureau and to compensate customers affected by the fraudulent activity. The House Financial Services Committee announced last week that it too has opened a formal investigation on the matter. That committee’s record of thorough and professional oversight hearings and reports no doubt portends more embarrassment for Wells Fargo after the elections.
On Wednesday the Oversight and Government Reform Committee will hear testimony from Mylan chief executive Heather Bresch, who has come under intense scrutiny for the company’s decision to significantly raise the price of their epinephrine injection device, EpiPen, from $57 a shot in 2007 to more than $300. The total compensation for Ms. Bresch, the daughter of U.S. Senator Joe Manchin (D-WV), also rose significantly over this time period. The combination of price and compensation increases has incensed many members, reflecting no doubt the views of their constituents who struggle to afford the life-saving injection device.
A third hearing related to business interests will occur in the Senate Judiciary Committee on Tuesday morning. The hearing will focus on concerns of consolidation and competition in the U.S. seed and agrochemical industry. Senators will hear testimony from the CEOs of Bayer North America, Dow, DuPont, Monsanto, Syngenta and several farm groups. The hearing comes on the heels of the announcement by Bayer AG that it had reached a $66 billion deal to acquire Monsanto. Press reports indicate if the deal is approved by regulators, the merged company will control more than a quarter of the global markets for seeds and pesticides. The Justice Department and Federal Trade Commission are currently analyzing two other seed and agrochemical company proposed mergers: one between Dow and DuPont and another between ChemChina and Syngenta. Judiciary Committee Chairman Chuck Grassley (R-IA) is facing reelection in November, and the spate of mergers is no doubt roiling voters in one of the country’s most productive agricultural states.
Even as the House considers legislation on the subject, congressional committees continue to review the Obama Administration’s cash payments to Iran The payments have come under intense scrutiny, particularly from congressional Republicans, who view them as ransom payments for Americans seized by Iran for purported violations of law. On Wednesday morning, the House Foreign Affairs Committee will hear testimony on the implications of the payment for U.S. interests. Committee Chairman Ed Royce (R-CA), who stated previously that the “cash bonanza has emboldened Iran’s radical regime, and undermined America’s national security,” is the lead sponsor of the Prohibiting Future Ransom Payments to Iran Act (H.R. 5931), one of the bills noted above scheduled for a vote on the House floor. The Senate Banking, Housing, and Urban Affairs Subcommittee on National Security and International Trade and Finance will also meet Wednesday morning on the same topic. Former U.S. Attorney General Michael Mukasey will be among the witnesses providing testimony.
The Senate Judiciary Subcommittee on Immigration and the National Interest is scheduled to host a Wednesday oversight hearing on the Administration’s FY2017 Refugee Resettlement Program. U.S. Secretary of State John Kerry told House and Senate Judiciary Committee lawmakers in a closed briefing last week that the Administration plans to increase the number of refugees into the country to 110,000 in FY2017, 10,000 more than previously called for, and an increase from the cap of 85,000 in FY2016.
The House Ways and Means Social Security Subcommittee is scheduled to meet on Wednesday morning on “Understanding Social Security’s Solvency Challenge.” The hearing will focus on the difference between the Social Security solvency projections of the Congressional Budget Office and the Social Security Board of Trustees, the causes of the difference, and what this means for Social Security’s long-term solvency.
On Thursday, the House Financial Services Committee will hear the annual report of the Financial Stability Oversight Council (FSOC). The FSOC was established under the Dodd-Frank Act to identify and respond to risks to U.S. financial stability; however, republicans have been critical of the powers granted to this new entity and the lack of transparency in its evaluation and designation processes. The 2016 Annual Report includes the activities of the Council, significant financial market and regulatory developments, and potential and emerging threats to the financial stability of the United States.
The full details for these events and other hearings scheduled this week are included below:
Monday, September 19, 2016
Senate Committees
Assessing the Recent North Korea Nuclear Event, Missile Tests and Regional Dynamics
Senate Foreign Relations
Full Committee Closed Briefing
5 p.m., SVC-217
Tuesday, September 20, 2016
House Committees
An Assessment of Deficiencies at the Northport VA Medical Center
House Veterans’ Affairs
Full Committee Field Hearing
9 a.m. Northport VA Medical Center, 79 Middleville Road, Northport, New York
Classifications and Redactions in FBI’s Investigative File (Part II)
House Oversight and Government Reform
Full Committee Hearing
9 a.m. 2154 Rayburn HOB
Veterans Affairs Contracting: Improvements in Policies and Processes Could Yield Cost Savings and Efficiency
House Veterans’ Affairs – Subcommittee on Oversight and Investigations
Subcommittee Hearing
4 p.m., 334 Cannon HOB
Senate Committees
Hyten Nomination (U.S. Strategic Command)
Senate Armed Services
Full Committee Hearing
9:30 a.m. 216 Hart SOB
An Examination of Wells Fargo’s Unauthorized Accounts and the Regulatory Response
Senate Banking, Housing and Urban Affairs
Full Committee Hearing
10 a.m., 538 Dirksen SOB
Pending Nominations
Senate Foreign Relations
Full Committee Hearing
10 a.m., 419 Dirksen SOB
Laboratory Testing in the Era of Precision Medicine
Senate Health, Education, Labor and Pensions
Full Committee Hearing
10 a.m., 430 Dirksen SOB
Consolidation and Competition in the U.S. Seed and Agrochemical Industry
Senate Judiciary
Full Committee Hearing
10 a.m., 226 Dirksen SOB
Pending Nominations
Senate Foreign Relations
Full Committee Markup
2:30 p.m., 419 Dirksen SOB
Wednesday, September 21, 2016
House Committees
15 Years after 9-11: The State of the Fight Against Islamic Terrorism
House Armed Services
Full Committee Hearing
10 a.m., 2118 Rayburn HOB
Restoring the Trust for Families and Working-Age Americans (Fiscal/Policy Challenges Impacting Families)
House Budget
Full Committee Hearing
10 a.m., 210 Cannon HOB
The Future of Housing In America: A Better Way to Increase Efficiencies For Housing Vouchers and Create Upward Economic Mobility
House Financial Services – Subcommittee on Housing and Insurance
Subcommittee Hearing
10 a.m., 2128 Rayburn HOB
Consequences of Cash to Iran
House Foreign Affairs
Full Committee Hearing
10 a.m., 2172 Rayburn HOB
Stopping the Next Attack: How to Keep Our City Streets from Becoming the Battleground
House Homeland Security
Full Committee Hearing
10 a.m., 311 Cannon HOB
Allegations of Misconduct and Articles of Impeachment Filed Against IRS Commissioner John Koskinen
House Judiciary
Full Committee Hearing
10 a.m., 2237 Rayburn HOB
Oversight Hearing on the Impacts of the Obama CEQ’s (Council on Environmental Quality) Final Guidance for GHG (Greenhouse Gases) Emissions and the Effects of Climate Change
House Natural Resources
Full Committee Hearing
10 a.m., 1334 Longworth HOB
Supplanting the Law and Local Education Authority Through Regulatory Fiat
House Education and the Workforce – Subcommittee on Early Childhood, Elementary and Secondary Education
Subcommittee Hearing
10 a.m., 2175 Rayburn HOB
Examining Misconduct and Intimidation of Scientists by Senior DOE Officials
House Science, Space, and Technology – Subcommittee on Energy; Subcommittee on Oversight
Subcommittees Joint Hearing
10 a.m., 2318 Rayburn HOB
FEMA’s Local Land Use Development Decisions
House Transportation and Infrastructure
Full Committee Hearing
10 a.m.
Pending Legislation
House Veterans’ Affairs
Full Committee Markup
10:45 a.m., 334 Cannon HOB
Understanding Social Security’s Solvency Challenge
House Ways and Means – Subcommittee on Social Security
Subcommittee Hearing
10 a.m., B-318 Rayburn HOB
Seapower and Projection Forces in the South China Sea
House Armed Services – Subcommittee on Seapower and Projection Forces
Subcommittee Hearing
2 p.m., 2212 Rayburn HOB
Corporate Governance: Fostering a System that Promotes Capital Formation and Maximizes Shareholder Value
House Financial Services – Subcommittee on Capital Markets and Government Sponsored Enterprises
Subcommittee Hearing
2 p.m., 2128 Rayburn HOB
Federal Management of Wolves
House Natural Resources – Subcommittee on Oversight & Investigations
Subcommittee Hearing
2 p.m.
Reviewing the Rising Price of EpiPens
House Oversight and Government Reform
Full Committee Hearing
2 p.m., 2154 Rayburn HOB
Senate Committees
The U.S. Department of Agriculture and the Current State of the Farm Economy
Senate Agriculture, Nutrition and Forestry
Full Committee Hearing
10 a.m., 328-A Russell SOB
Housing Vulnerable Families and Individuals: Is There a Better Way?
Senate Appropriations — Subcommittee on Transportation, Housing and Urban Development, and Related Agencies
Subcommittee Hearing
10:30 a.m., 192 Dirksen SOB
Terror Financing Risks of America’s $1.7 Billion Cash Payment to Iran
Senate Banking, Housing and Urban Affairs – Subcommittee on National Security and International Trade and Finance
Subcommittee Hearing
10:30 a.m., 538 Dirksen SOB
Pending Business
Senate Commerce, Science and Transportation
Full Committee Markup
10 a.m., 253 Russell SOB
Pending Business
Senate Health, Education, Labor and Pensions
Full Committee Markup
9:30 a.m., 430 Dirksen SOB
Combating the Opioid Epidemic: A Review of Anti-Abuse Efforts by Federal Authorities and Private Insurers
Senate Homeland Security and Governmental Affairs
Full Committee Hearing
10 a.m., 342 Dirksen SOB
FDA’s Role in the Generic Drug Marketplace
Senate Appropriations – Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
Subcommittee Hearing
2:30 p.m., 192 Dirksen SOB
Fish and Wildlife Service Mitigation Policy
Senate Environment and Public Works – Subcommittee on Fisheries, Wildlife and Water
Subcommittee Hearing
2:30 p.m., 406 Dirksen SOB
Pending Legislation
Senate Indian Affairs
Full Committee Markup
2 p.m. TBA
Oversight of the Administration’s FY2017 Refugee Resettlement Program
Senate Judiciary – Subcommittee on Immigration and the National Interest
Subcommittee Hearing
2:30 p.m., 226 Dirksen SOB
Thursday, September 22, 2016
House Committees
Identifying the Enemy: Radical Islamist Terror
House Homeland Security – Subcommittee on Oversight and Management Efficiency
Subcommittee Hearing
10 a.m., 311 Cannon HOB
Discussion Draft to Modernize Multiemployer Pensions
House Education and the Workforce — Subcommittee on Health, Employment, Labor and Pensions
Subcommittee Hearing
10 a.m., 2175 Rayburn HOB
Rehabilitation of the Chesapeake Bay: Healing in the Bay the Voluntary Way
House Agriculture – Subcommittee on Conservation and Forestry
Subcommittee Hearing
10 a.m., 1300 Longworth HOB
Midterm Review and Update on the Corporate Average Fuel Economy Program and Greenhouse Gas Emissions Standards For Motor Vehicles
House Energy and Commerce – Subcommittee on Commerce, Manufacturing and Trade
Subcommittee Hearing
10 a.m., HVC-210
Modernizing the Telephone Consumer Protection Act
House Energy and Commerce – Subcommittee on Communications and Technology
Subcommittee Hearing
11 a.m., 2322 Rayburn HOB
The Annual Report of the Financial Stability Oversight Council
House Financial Services
Full Committee Hearing
10 a.m., 2128 Rayburn HOB
ICE Oversight
House Judiciary
Full Committee Hearing
10 a.m. 2141 Rayburn HOB
Examining Preservation of State Department Federal Records
House Oversight and Government Reform
Full Committee Hearing
9 a.m., 2154 Rayburn HOB
Examining the Agenda of Regulators, SROs, and Standards-Setters for Accounting, Auditing, and Municipal Securities
House Financial Services – Subcommittee on Capital Markets and Government Sponsored Enterprises
Subcommittee Hearing
2 p.m., 2128 Rayburn HOB
Diplomacy and Security in the South China Sea: After the Tribunal
House Foreign Affairs – Subcommittee on Asia and the Pacific
Subcommittee Hearing
2 p.m., 2172 Rayburn HOB
Treating the Opioid Epidemic: The State of Competition in the Markets for Addiction Medicine
House Judiciary – Subcommittee on Regulatory Reform, Commercial and Antitrust Law
Subcommittee Hearing
2 p.m., 2237 Rayburn HOB
National Park Service Mismanagement
House Oversight and Government Reform – Subcommittee on the Interior
Subcommittee Hearing
1 p.m. TBA
Closing the Talent Gap in Federal IT
House Oversight and Government Reform — Subcommittee on Information Technology
Subcommittee Hearing
3 p.m. TBA
Examining Billion Dollar Waste through Improper Payments.
House Oversight and Government Reform — Subcommittee on Government Operations
Subcommittee Hearing
3 p.m., 2247 Rayburn HOB
Senate Committees
Oversight of the HUD Inspection Process
Senate Banking, Housing and Urban Affairs – Subcommittee on Housing, Transportation, and Community Development
Subcommittee Hearing
10 a.m., 538 Dirksen SOB
Pending Legislation
Senate Energy and Natural Resources
Full Committee Hearing
9:30 a.m., 366 Dirksen SOB
Exploring Current Practices in Cosmetic Development and Safety
Senate Health, Education, Labor and Pensions
Full Committee Hearing
10 a.m., 430 Dirksen SOB
Exploring a “Right to Try” for Terminally Ill Patients
Senate Homeland Security and Governmental Affairs
Full Committee Hearing
10 a.m., 342 Dirksen SOB
Agency Regulatory Guidance Review (Part III)
Senate Homeland Security and Governmental Affairs – Subcommittee on Regulatory Affairs and Federal Management
Subcommittee Hearing
3 p.m., 342 Dirksen SOB
Friday, September 23, 2016
House Committees
Bioresearch Labs and Inactivation of Dangerous Pathogens
House Energy and Commerce
Subcommittee on Oversight and Investigations
9 a.m., 2322 Rayburn HOB
Reviewing the Tennessee Valley Authority’s Prohibition on Houseboats
House Oversight and Government Reform – Subcommittee on Government Operations
Subcommittee Hearing
9 a.m., 2247 Rayburn HOB
Vacant Federal Properties
House Oversight and Government Reform – Subcommittee on Transportation and Public Assets
Subcommittee Hearing
9 a.m., 2154 Rayburn HOB