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Neil's Notebook
The House this week

July 9, 2008

Highlights of the House legislative calendar for the week of July 6th: 

  • Agriculture Appropriations, Intelligence Authorization, State-Foreign Operations Appropriations
  • State-Foreign Operations Appropriations, Military Construction-VA Appropriations

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H.R. 3081 – Department of State, Foreign Operations, and Related Programs Appropriations Act, 2010. The House on Thursday, July 9, 2009 passed this bill which is a fiscally responsible measure that targets funding to high-priority needs. It makes key investments in rebuilding diplomacy, combating terrorism, and addressing global HIV/AIDS and other global challenges.

Rebuilding Our Diplomatic and Development Capacity

Since 9/11, it has been apparent that our nation’s first line of defense, our diplomatic and development agencies, have been underfunded and not able to meet the 21st century challenges facing our nation.

President Obama has laid out a vision for reinvigorating U.S. diplomacy and development. He is calling for a balanced foreign policy that will strengthen national security by giving prominence to diplomacy and development – as well as defense. This bill takes steps in helping to implement this vision. 

To rebuild our diplomatic capacity, the bill provides:

  • $8.2 billion, $1.2 billion above 2009 and $731 million below the President’s request, for diplomatic operations at the State Department and to hire more than 1,000 additional Foreign Service Officers.
  • $1.39 billion, $330 million above 2009, to strengthen development capacity at AID (Agency for International Development) and to hire 300 additional personnel at AID.

Using diplomacy and development to prevent conflict and failed states is much more cost-effective for U.S. taxpayers than providing massive humanitarian aid, funding peacekeeping operations, or putting U.S. boots on the ground once a major crisis occurs.

Protecting National Security and Combating Terrorism

  • Key Funding to Protect National Security and Combat Terrorism: Provides a total of $13.4 billion to protect our national security and combat terrorism.
  • Assistance to Frontline States of Afghanistan, Pakistan and Iraq:  Provides assistance to the frontline states of Afghanistan, Pakistan, and Iraq, in order to help stabilize, strengthen and rebuild these critical countries, as follows:
    • Afghanistan:  Provides $2.695 billion in assistance for Afghanistan, building on the assistance provided in the FY 2009 Supplemental (PL 111-32), for economic development, strengthening governance, and expanding the rule of law.
    • Pakistan:  Provides $1.519 billion in assistance for Pakistan, building on the assistance provided in the FY 2009 Supplemental (PL 111-32), for economic development and strengthening governance.
    • Iraq:  Provides $484.3 million in assistance for Iraq, for economic development and strengthening governance.
  • Assistance for Key Middle East Partners:  Fully funds our commitments to key allies and partners in the Middle East, as follows:
    • Israel:  Provides $2.22 billion for Israel, which combined with the $555 million of forward funding in the FY 2009 Supplemental is the same as the $2.775 billion in the President’s request and consistent with the second year of the 10-year Memorandum of Understanding between the United States and Israel.
    • Egypt:  Provides $1.29 billion for economic and security assistance for Egypt, which when combined with the $260 million in forward funding in the FY 2009 Supplemental is the same as the President’s request.
    • Jordan:  Provides $513 million for economic and security assistance for Jordan, which when combined with the $150 million in forward funding in the FY 2009 Supplemental is the same as the President’s request.
  • Combating Drug Trafficking:  Provides funding to fight narcotics and criminal gangs and promote alternatives to drug production in Mexico, Central America, and Colombia, as follows:
    • Mexico and Central America:  Provides $318.8 million for counternarcotics programs in Mexico and Central America.
    • Colombia:  Provides $520 million for counternarcotics programs and alternative livelihoods assistance for Colombia.

Addressing Global HIV/AIDS and Other Global Challenges

  • Global Health:  Provides $7.78 billion for global health priorities, including strengthening the global public health infrastructure and surveillance network in order to save lives overseas and to protect the health of Americans, as follows:
    • Global HIV/AIDS:  Provides a total of $5.75 billion for total funding for Global HIV/AIDS programs, which is $250 million above 2009 and $150 million above the President’s request. This includes $750 million for multilateral programs through the Global Fund to Fight HIV/AIDS, Tuberculosis, and Malaria.
    • Global Health and Child Survival:  Provides a total of $2.38 billion for the Global Health and Child Survival account, which is an increase of $470 million above 2009.
  • Basic Education:  Provides $1 billion, $300 million above 2009, to improve access to quality education and provide alternatives to schools where youth are exposed to extremism.
  • Agriculture and Food Security Programs:  In light of increased food shortages in many developing countries, which are exacerbated by the global financial crisis, provides $1 billion for food security and agricultural development, $550 million above 2009.
  • Protection of Environment/Fighting Climate Change:  To preserve and protect our environment and fight global climate change, provides $1.2 billion in bilateral and multilateral funds for clean energy, biodiversity, and climate change initiatives, $643 million above 2009.
  • General Development Assistance:  Provides $2.465 billion for various forms of development assistance, in countries that face a complex range of long-term development challenges.

Other Key Provisions

  • Peace Corps:  Provides $450 million for the Peace Corps in FY 2010, $110 million above 2009, in order to jump start President Obama’s promise to double the size of the Peace Corps.
  • Educational and Cultural Exchanges:  Provides $600 million, $62 million above 2009, to fund educational, cultural and professional exchange programs worldwide.
  • Broadcasting:  Provides $746 million, $31 million above 2009, for broadcasting programs critical to the nation’s overall public diplomacy efforts.

Fiscal Responsibility

  • The 12 Appropriations Bills Are Fiscally Responsible -- $10 Billion Below the President’s Proposed Budget: The budget conference report adopted by the Congress in April required a cut in discretionary spending in FY 2010 of $10 billion below the funding requested by President Obama in his budget.  As a result, the FY 2010 appropriations bills overall must be $10 billion below the President’s budget.
  • This Bill Is $1.2 Billion Below the 2009 Enacted Level, When 2009 Supplemental Funding Is Included:  The State-Foreign Operations bill is fiscally responsible, targeting dollars to high-priority needs, while eliminating 2 programs and cutting funding below 2009 for another 9 programs.  Overall, the bill is $1.2 billion below the 2009 enacted level, when 2009 supplemental funding is included.   It is also $3.2 billion below the President’s budget request.

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H.R. 2965 - Enhancing Small Business Research and Innovation Act.  This bill, passed by the House on July 8, 2009, reauthorizes the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) programs until 2011. SBIR programs are the government’s largest small business research and development programs. These programs were designed to improve the competitiveness of small businesses in the fields of technology training and technology information exchange. The programs also assist small businesses in competing for federal research and development grants and contracts.

Grant awards are given for up to three phases of research and development projects conducted by small businesses. Under current law:

  1. The first phase consists of determining the scientific merit and feasibility of the project;
  2. The second phase comprises carrying out the project and determining the project’s commercial viability; and
  3. The third phase comprises commercial applications of the project or continued funding of the project from other sources.

The bill changes the definition of phase three to comprise work that derives from efforts performed during phase two and is directed toward commercial applications. It also authorizes $27.5 million for federal agencies to establish efforts designed to support SBIR-funded research projects in their transition to phase three.

The measure increases the maximum research and technology transfer award amounts to $250,000, from $100,000, in the first phases of projects, and to $2 million, from $750,000, in the second phases of projects.

The bill stipulates that only small businesses, defined as having no more than 500 employees, domiciled in the U.S. would be eligible for awards.

Small businesses in Hawaii often use these programs to get started in federal government contracting.

More details:

Economic Engine: Small business is the engine for the American economy, creating 60 to 80 percent of new jobs, and is key to innovation and new technology, which are critical to creating new jobs and getting the American economy back on track. To help small businesses grow the economy through their technological innovation, the House will consider H.R. 2965 to modernize and reauthorize the SBIR and STTR programs. 

By ensuring that a portion of federal research dollars go to small businesses, SBIR and STTR are critical tools for creating new jobs and fueling technological innovation. Since 1992, SBIR has provided 65,000 grants to small companies engaged in cutting edge research to cure diseases, strengthen our national defense and reduce our dependence on foreign oil.

Every year, the SBIR program results in a $2.2 billion investment in small businesses, helping 1,500 new firms get off the ground. High growth start-ups have job growth rates nearly four times that of bigger firms. 

This measure modernizes  SBIR and STTR to meet today’s challenges by:

  • expanding commercialization efforts to get the small businesses revolutionary technology and product into the market;
  • making it easier for small businesses that participate in SBIR to find capital to fund these innovative breakthroughs– critical at a time of tight credit markets;
  • broadening the small businesses in these programs through outreach to rural entrepreneurs, as well as small businesses owned by women, minorities and veterans.
  • streamlining these key small business research and development programs to operate more efficiently, meet clear performance standards and put taxpayer dollars to the best use.


Greater Emphasis on Commercialization: H.R. 2965 puts a greater emphasis on commercialization so that new technologies can reach the marketplace quicker. By extending to all agencies the authority to develop programs to support the commercialization of SBIR-funded research, the legislation will help more products make it across the finish line and into the marketplace.  (Under current law, certain federal agencies have the authority to develop commercialization programs.)  For the first time, this measure provides dedicated funds to support commercialization.

Expand Access to Rural, Veteran, Women and Minority Firms:  In order to broaden the pool of firms that participate in SBIR and STTR, the bill establishes a new grant program for outreach to firms owned by veterans, women and minorities and those located in rural areas. The Small Business Administration will make competitive grants to organizations to educate these businesses about these initiatives and help them participate.

Greater Access to Capital for Small Business:  The bill would allow venture capital-backed small businesses to participate in SBIR, as long as they meet certain criteria. The bill repeals a Bush-era administrative ruling from 2003 that limited small businesses' access to venture capital.  Allowing firms with venture backing to compete for SBIR grants will empower firms to access the financing they need and leave the decision as to how to raise capital to small businesses, not bureaucrats in Washington.

A recent study by the National Research Council (NRC) suggests that the 2003 ruling is preventing some of the most promising firms from participating in the program. As the NRC wrote, “Restricting access to SBIR funding for firms that benefit from venture investments would thus appear to disproportionately affect some of the most commercially promising small innovative firms.” While the bill allows small businesses with venture backing to participate, it also includes safeguards that prevent a single venture capital company from owning a majority of the small business or controlling a majority of the board of director’s seats of a participating firm. 

Streamlining & Creating Efficiency to Encourage Greater Participation in SBIR and STTR:  H.R. 2965 also cuts down on red tape in the SBIR and STTR programs, so that participating companies spend less time doing paperwork and more time getting products to market.  By establishing a 90-day timeline for issuing a final decision on an SBIR application, the measure will help firms receive SBIR funding in a timely manner.  Importantly, the bill more than doubles the size of SBIR and STTR awards (to $250,000 for early stage research and $2 million for later stage research) to bring funding levels in line with today’s technological needs.

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H.R. 2997 - Agriculture Appropriations Act: FY 2010 Agriculture Spending Bill Makes Key Investments in Public Health, Food Safety, Rural Communities, Conservation & Other Priorities

The House on July 9th approved legislation that will protect Americans’ food safety, boost rural economies, protect consumers against price fluctuations for necessities and help feed struggling families. To maintain fiscal responsibility, the Agriculture Appropriations Act also cuts millions of dollars from programs that are not working.  

The bill helps rural communities hit by the economic crisis. It builds on the success of the Recovery Act with investments in community facilities, housing, water projects and rural businesses – creating opportunities for growth and development in every community.

To protect low-income women, children and senior citizens faced with rising food costs and shrinking wages, the legislation increases nutrition aid to families. It expands services to an additional 700,000 women and children and creates new programs to help ensure that American families do not go hungry.  

The Agriculture Appropriations Act also protects consumers by giving the agency that regulates our commodities markets like energy and food, the Commodity Futures Trading Commission (CFTC), the staff and resources it needs to do its job. We have seen too clearly the impact that improper speculation in these markets can have on the price of oil and gas. This additional oversight will help protect the American people from needless price spikes in the cost of basic necessities.

More details:

Protecting Public Health
Food and Drug Administration:  Provides nearly $3 billion, 14 percent more than 2009, to help FDA improve the safety of domestic and imported food and medical products. With this, the FDA will be able to conduct 1,150 more foreign and domestic food inspections, do 20,000 more examinations of imported food,  and conduct 3,300 more examinations of imported drug products, for example.

Food Safety and Inspection Service:  Provides over $1 billion for the first time in history, 5 percent more than 2009, for inspection of meat, poultry and egg products, helping to ensure the safety of these products.

Helping Those Hardest Hit by the Economic Crisis
Nutrition for Women, Infants, and Children (WIC):  Provides more than $7.5 billion to provide proper nutrition to mothers and their children to up to an additional 700,000 women, infants, and children -- bringing WIC participation to over ten million people. It also sets aside $125 million for the upcoming WIC reauthorization, including a number of program improvements such as: increasing fruit and vegetable vouchers, implementing the electronic benefit transfer system, and expanding breast feeding peer counseling program.

Commodity Supplemental Food Program: Provides $180 million, nearly $20 million over 2009, to provide nutritious food to over a half million low-income women, infants, children, and elderly citizens struggling with rising food costs.  To ensure that more families receive much-needed support during this economic downturn, the bill expands this critical food assistance in 32 current states and in 6 new states with USDA-approved feeding plans. These new states are: Arkansas, Oklahoma, Delaware, Utah, New Jersey, Georgia.

Supplemental Nutrition Assistance Program (SNAP):  Provides more than $61 billion, nearly $7.4 billion over 2009. This includes an initiative to increase elderly participation, as only an estimated 30 percent of eligible seniors participate in SNAP.

International Food Aid (P.L. 480 Title II and McGovern-Dole):  Includes nearly $1.7 billion, $464 million above 2009, for the P.L. 480 Title II Grants Program to meet emergency and non-emergency humanitarian food needs in countries stricken with natural disasters and political strife. And nearly doubles funding (to $199.5 million) for the McGovern-Dole International Food for Education and Child Nutrition Program to support education, child development, and food security for some of the world’s poorest children. 

Reinvesting in Rural America
Rural Development:  Provides more than $2.8 billion, 4 percent more than 2009, for USDA programs key to rural communities such as rural housing, water projects, community facilities and economic development efforts. These programs not only sustain our rural communities, but also create new opportunities for growth and development in the nation’s small town economies.  This builds on the strong base provided by the American Recovery and Reinvestment Act and makes substantial investments in rural communities. The bill provides funding for programs that help house families ($8.7 billion), invest in rural businesses ($1.2 billion), and support new community facility infrastructure ($542 million for community facilities, and $9.3 billion for the rural utilities programs).

Animal and Plant Health: Provides $881 million to fund programs that protect American agriculture against animal and plant diseases.

Agricultural Research:  Provides nearly $1.2 billion for the Agricultural Research Service and $1.3 billion, $31 million above 2009, for the National Institute for Food and Agriculture (formerly called CSREES) for important agricultural research.

Farm Service Agency:  Provides $67 million to fully fund the continued modernization of the Farm Service Agency’s information technology networks and databases in order to provide more effective and secure service for the nation’s farmers.

Conservation
Conservation Programs: $980 million, 8 percent above the President’s request and 1 percent above 2009, for the Natural Resources Conservation Service to improve service in the field, deliver conservation to protect the environment, and upgrade aging dams at risk of catastrophic failure.

Rejects Cuts in Priority Conservation Efforts:  Restores cuts to valuable conservation programs, including the Resource Conservation and Development Program and the Watershed and Flood Prevention Operations Program.  The bill rejects $267 million in cuts to priority farm bill conservation programs, including the Wetlands Reserve Program, Farmland Protection Program, and Wildlife Habitat Incentives Program.

Oversight and Enforcement
Commodity Futures Trading Commission:  Provides more than $160 million, 10 percent above 2009, to enhance oversight of the commodity futures markets. The increased resources will provide for additional staff and improved technology to better secure the markets from improper speculation.

Livestock Competition:  Provides nearly $24 million to assure fair competition and trade practices, safeguard farmers and ranchers, and to protect consumers and members of the livestock, meat, and poultry industries from unfair, deceptive, discriminatory and monopolistic practices. These funds provide staff to strengthen enforcement, investigative and compliance activities.

Fiscal Responsibility:  The 12 Appropriations Bills Are Fiscally Responsible -- $10 Billion Below the President’s Proposed Budget:   The budget adopted by the Congress in April required a cut in discretionary spending in FY 2010 of $10 billion below President Obama’s budget.  As a result, the 12 FY 2010 appropriations bills overall must be $10 billion below the President’s budget.
 

This Bill Eliminates 5 Programs and Cuts Funding below 2009 For Another 35 Programs – Achieving Gross Savings of $735 Million:  The Agriculture bill is fiscally responsible, targeting dollars to high-priority needs, while eliminating 5 programs and cutting funding below 2009 for another 35 programs.   For example, the bill provides no funding for the National Animal Identification System, which has received $142 million since fiscal year 2004, without putting into operation an effective system to provide needed animal health and livestock market benefits.

Other Important Policy Items
Imported Poultry Products from China: Prohibits USDA from moving forward with a rule to allow potentially unsafe poultry products from China into the U.S.

Country of Origin Labeling (COOL): Fully funds the costs to continue overseeing country of origin labeling for fresh fruits and vegetables, meats and other products.

Inspection Pilot Program: Prohibits the Food Safety Inspection Service from implementing a pilot program to inspect certain facilities using a risk-based model until it implements changes recommended by the USDA Inspector General.

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H.R. 2701 - Intelligence Authorization Act for Fiscal Year 2010. This bill authorizes classified amounts for 16 intelligence agencies, including the National Intelligence Director, the CIA, the National Security Agency, and for intelligence activities of the Defense Department, the FBI, the Homeland Security Department and other agencies.

The  bill expands congressional oversight of intelligence activities, requiring the periodic briefing of all members of congressional Intelligence committees, not just the committee leaders and top congressional leaders.It requires the administration to make available to the two Intelligence committees within 30 days records of who was briefed. The bill also blocks funds for private contractors conducting interrogations of detainees under the control of the CIA, unless the Director of National Intelligence determines that no federal employee is capable of conducting the interrogation and it is in the U.S. national interest.

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Possible Consideration of H.R. 3082 - Military Construction and Veterans Affairs Appropriations Act, 2010. Provides $133.7 billion which includes $4.5 billion in funds provided by the economic stimulus law. When stimulus funds are not taken into account, the bill appropriates $14.1 billion (12%) more than regular FY 2009 funding. More than 81% ($108.9 billion) of the measure's spending is for veterans' programs, 15% more than the current level. Also appropriates $48.2 billion in advance funding for FY 2011 for VA medical services and facilities. The provides $11.7 billion for military construction, $87 million less than the current level, which includes $2.2 billion provided by the economic stimulus law.

 

 

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