The Health, Education, Labor, and Pensions Committee in the Senate unanimously approved legislation to reauthorize Head Start, a program serving nearly 1 million children nationwide. The program serves three and four year olds and is run by private and public agencies on the local level.

Democrats originally feared that the Bush Administration would mandate testing for children. Previous House-passed legislation (HR 2210) did not have any new testing mandates.

The compromise reached with Senate Democrats produced language that the testing could only be used to improve program curriculum. Testing could not be linked to any funding decisions.

The bill is scheduled to go before the full Senate in the beginning of next year.

Chairman James M. Inhofe (R-Oklahoma) has announced that the Committee on Environment and Public Works mark up of S. 1072, Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003 (SAFETEA) has been postponed until Wednesday, November 12. Mark up was originally scheduled for Wednesday, November 5th. The bill reauthorizes the Federal-aid surface transportation program through FY 2009.

Over on the analysis side of the website we've just posted a look at "ARRIVE 21". From the piece:

According to his staff, Senator Ernest Hollings (D-South Carolina), ranking member on the Senate Commerce, Science and Transportation Committee, will soon introduce The American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century (ARRIVE 21). Although we do not know when Hollings will introduce ARRIVE 21, the bill will likely be considered when the committee begins to reauthorize TEA-21 programs under their jurisdiction. Senator Hollings is keen on including a strong rail component in a TEA-21 reauthorization bill and therefore would like to have a Republican co-sponsor for ARRIVE 21. Senator Kay Bailey Hutchinson (R-Texas) has been mentioned as a possibility...

Want more? Head over to the password protected area to read the rest.

The Senate Committee on Environment and Public Works has announced a mark-up November 5th of the highway title of the TEA-21 reauthorization bill. A draft of the bill emerged on October 27 and we posted it on our website the same day. Click here to go to the draft. Our sources on Capitol Hill cast doubt on whether the ground is sufficiently prepared with committee members for a mark-up so soon.

The proposed bill will ultimately provide $255 billion in funding for highway programs, which is in accord with the FY 2004 budget resolution. Currently, funding levels in the draft bill only total $216 billion, but about $40 billion in additional highway funding to states is expected to be added during floor debate. The Bush Administration proposal only called for $192.5 billion in highway funding over the next six years.

The Senate EPW Committee is calling their bill, "The Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003," (SAFETEA), which is what the administration’s draft proposal was called. Like the DOT proposal, the committee proposal has a strong focus on enhancing highway safety programs. The bill would provide set asides for states and localities to spend money on eligible activities aimed at increasing highway safety. Eligible activities include intersection safety improvement, pavement and shoulder widening, installation of rumble strips, elimination of roadside obstacles, improved highway signage, pavement markings, guardrails, and barriers, and installation of signs at pedestrian-bicycle crossings and in school zones.

With regard to RABA (Revenue-Aligned-Budget-Authority), the draft bill makes a few changes. RABA, introduced in TEA-21, provides additional money to highway programs if revenue generated by the highway trust fund exceeds earlier projections. This occurred three times over the six-year TEA-21 period. In TEA-21, RABA used a “look back” and “look forward” approach in making revenue projections for the highway trust fund. The committee bill scraps the “look forward” approach and proposes just using the “look back” approach, making funding more stable and predictable.

The committee bill would also create the "Infrastructure Performance Maintenance Program", which would fund ready-to-go highway projects. Money from this program would be distributed to states with projects, where construction is ready to begin in less than six months. The administration recommended that the highway trust fund be drawn down by $1 billion annually to finance such ready-to-go projects. The committee bill proposes more money for ready-to-go projects. In fiscal years 2004 through 2006, the committee bill provides $2.5 billion annually for such projects. For fiscal 2007 and fiscal 2008, that number drops to $2 billion, and further drops to $500 million for fiscal 2009.

Throughout the year, as debate on TEA-21 reauthorization began to intensify, some state highway officials and contractors were pushing to expedite the environmental review process for highway projects. The committee bill would designate DOT to replace the EPA as the lead agency in enforcing the National Environmental Policy Act review process. As the lead agency, DOT would be responsible for determining project purpose and need, determining the range of alternatives to be considered, convening dispute resolution efforts, and taking other actions necessary "to facilitate the expeditious resolution of the environmental review process for the project." This provision will be very controversial.

Here is breakdown of the funding levels in the committee highway bill:

• Interstate Maintenance Program: $5.5 billion annually for fiscal 2004, $6.3 billion for fiscal 2005, and 6.5 billion annually for fiscal 2006 through fiscal 2009
• National Highway System: $6.65 billion for fiscal 2004, $7.65 billion for fiscal 2005, and $7.95 billion annually for fiscal 2006 through fiscal 2009
• Bridge Program: $4.7 billion for fiscal 2004, $5.4 billion for fiscal 2005, and $5.6 billion annually for fiscal 2006 through fiscal 2009
• Surface Transportation Program: $6.95 billion for fiscal 2004, $7.95 billion for fiscal 2005, and $8.25 billion annually for fiscal 2006 through fiscal 2009
• Congestion Mitigation and Air Quality Improvement Program: $1.9 billion for fiscal 2004, $2.15 billion for fiscal 2005, and $2.225 billion annually for fiscal 2006 through fiscal 2009
• Appalachian Development Highway System Program: $590 million annually for fiscal 2004 through fiscal 2009
• Park Roads and Parkways: $300 million for fiscal 2004, $310 million for fiscal 2005, and $320 million annually for fiscal 2006 through fiscal 2009
• Multi-State Corridor Planning Program and the Border Planning, Operations, and Technology Program: $112.5 million for fiscal 2004, $135 million for fiscal 2005, $157 million for fiscal 2006, $180 million for fiscal 2007, $202.5 million for fiscal 2008, and $225 million for fiscal 2009
• National Scenic Byways program: $34 million for fiscal 2004, $35 million for fiscal 2005, $36 million for fiscal 2006, $37 million for fiscal 2007, and $39 million annually for fiscal 2008 and fiscal 2009

If the EPW committee does act on November 5th, there will still be a need for three additional Senate committees to act before the Senate can complete its work on their version of the bill. The Senate Banking Committee has jurisdiction over the transit program, the Commerce Committee oversees highway safety and rail and the Finance Committee handles the tax title of the bill. None of those committes has indicated plans to hold a mark-up before the end of the year.

Please watch this space for additional information on the evolving process for reauthorizing the nation's surface transportation programs.

After the failed promise of a Democratic filibuster, the Senate confirmed former Utah Republican Governor, Mike Leavitt, as head of the Environmental Protection Agency.

Six Democrats in the Senate held up the confirmation as a means of highlighting the environmental record of President Bush and his administration. After the administration made several deals with key Senators, Leavitt was confirmed 88-8.

A total of 36 Democrats and Senator Jeffords (I-Vermont) joined all 51 Senate Republicans during the confirmation vote. Leavitt has served as Governor of Utah for three terms and also has chaired the National Governor’s Association.

Senator Jeffords, the one time Chair of the Environment and Public Works Committee made clear that the vote should not be construed as an “endorsement of the Bush Administration’s environmental policies.”

While Governor, Leavitt helped push through a multi-state agreement aimed to lessen regional haze. However, Leavitt received sharp criticism from environmental organizations and their allies when he brokered a deal with the Department of the Interior to ease the protected status of public lands in Utah.

All dissenting votes were Democrats.

Senators George Allen (R-Virginia) and Ron Wyden (D-Oregon) are trying to convince a few colleagues from blocking their bill – S. 150, “The Internet Tax Freedom Act” (ITFA). Four senators – two Republicans and two Democrats - currently have holds on the bill.

A temporary moratorium on taxing Internet connections expires on November 1. ITFA had been expected to pass easily, but state and local governments have begun an intense lobbying effort against the bill, because of alterations added to the existing moratorium.

Under the current moratorium, nine states currently possess "grandfather" provisions allowing them to tax Internet acess services. In addition, the expiring moratorium classifies high speed DSL service as a "telecommunications service", allowing it to be taxed by 27 states and the District of Columbia. The new ITFA eliminates both the grandfather clauses and reclassifies DSL as an "internet access service" which will prevent state and local governments from taxing it. Finally, S. ITFA makes the moratorium on such taxes permanent, as opposed to the current act which which was originally enacted in 1998 and renewed once to carry it through 2003.

State and local governments are pushing instead for a simple reauthorization of the current moratorium, which would prevent the loss of between $150 - $190 million in revenue annually between the 27 states and DC.

On October 29, the Senate Health, Labor, Education and Pensions Committee (HELP) is marking up the Senate version of the Head Start reauthorization. Including in the Senate version is a controversial provision that would expand testing for the nearly 1 million participants in the early childhood program. The new mandate for testing was not included in the House passed bill (HR 2210).

Senator Judd Gregg (R-New Hampshire), Chairman of the HELP committee, has indicated that he would like to move the legislation in a bipartisan manner through committee. Democrats, however, are concerned about the “regular assessment of Head Start children” language.

Not included in the Senate version of the bill, is the Bush administration proposal, contained in the House version, that would allow eight states to take over local Head Start centers and coordinate them wit their own early childhood programs.

The Senate bill also does not have any authorization funding levels because Senator Gregg prefers to debate that detail on the Senate floor. Democrats have filed a separate bill (S 1483) that would authorize an additional $9.3 billion over the next five years with $3 billion specifically devoted to training and salaries for Head Start teachers..

Transportation Secretary Norman Mineta is standing behind the nomination of Kirk Van Tine as DOT Deputy Secretary, despite attempts by the FedEx Corporation to thwart it.

Van Tine, who previosuly served as DOT General Counsel, was involved in the distribution of compensation funds to transportation carriers totalling $5 billion in the aftermath of September 11th. To help expedite the financial recovery of carriers, the department asked such carriers to provide an estimate of their losses relating to the events of September 11th. Fifty percent of those estimated costs were bequathed to carriers very quickly with the presumption that the department would re-examine actual losses at a later date. The FedEx Corporation estimated their losses to be $200 million after September 11th. When DOT more closely examined the actual losses of FedEx and other carriers, the department determined that FedEx could not document losses beyond $70 million. DOT apparently gave FedEx the opportunity to contest the department's approximation of their September 11th related losses, but according to a department spokesperson, they opted not to dispute the charges or negotiate a settlement with the department.

FedEx claimed it was owed $119 billion by the department and they took their case to the U.S. Court of Appeals in the District of Columbia. Oral arguments were heard the week of October 13th. Of the 63 carriers that over-estimated their post-September 11th costs, 53 have repaid the difference and 15 have negotiated settlements. To demonstrate their malcontent with Van Tine's estimation of atcual losses, FedEx has enlisted the support of a number of lobbyists to help block the nomination.

The Senate Commerce, Science and Transportation Committee has not yet scheduled a nomination hearing for Van Tine. However, Norm Mineta's chief of staff, John Flaherty, has maintained that the Secretary stands firmly behind the nomination of Van Tine. "This is a solid guy, a consummate professional who is hand and glove with the Secretary, which is why he want's him as his deputy," said Flaherty.

Yesterday the Senate added an extra $1 billion in election overhaul funding to the Transportation-Treasury spending bill (HR 2989). This allowed Congress to get back on track to fully funding the law.

Pushing back on President Bush’s budget which requested only $500 million, Senators worked in a bipartisan manner.

The Senate approved the extra funding by a voice vote after agreeing 63-31 to waive a budget point of order raised by Appropriations Committee Chairman Ted Stevens (R-Alaska). Allowing the $1 billion would bust the budget cap that President Bush is trying to enforce.

The original bill authorized nearly $3.9 billion in aid over three years. Congress appropriated about $567 million less in fiscal 2003 than was authorized. The states also have yet to receive $833 million appropriated last year.

Forty-one senators, including one Republican, sent a letter to President Bush yesterday urging him to intervene in the House-Senate Medicare Prescription Drug conference so that negotiators do not produce a deal that Democrats say the Senate would reject.

Most of the protests center on an aspect of the House bill that eventually would require the traditional version of the program to compete with private health plans based on price. Proponents of that competitive arrangement, known as premium support, say that it would encourage people to join private health plans and drive down costs. Critics of the plan predict it would end up costing more for patients who remain in the traditional fee-for-service program.

Democrats stopped short of saying they would filibuster a plan they dislike, but they urged negotiators to avoid premium support and several other contentious provisions that House Republicans want.

The Democrats’ letter to President Bush is a mirror image of a letter that a group of thirteen House conservatives wrote last month to House Speaker Dennis Hastert (R-Illinois). In that letter, House conservatives vowed to oppose any final Medicare plan unless it contained many of the same provisions that the Democrats pledged to reject.

House and Senate negotiators are working from an outline, prepared by the conference committee’s chairman, House Ways and Means Chairman Bill Thomas (R-California) which embodies most of the preferences of House conservatives and is being resisted even by some Republican senators in the meetings.

Outstanding conference issues include requiring Congress to place unprecedented caps on Medicare spending so that it does not rise above $400 billion during the next decade; tax breaks for younger people to set up saving accounts for their medical bills; and a break with the program’s tradition by which wealthier Medicare patients would be charged more for care.

On October 23, in a surprise announcement, the Senate Committee on Environment and Public Works announced that an agreement on a highway reauthorization bill has been reached. The Senate EPW Committee has scheduled a markup for November 5th. In a joint statement, Senate EPW Committee Chairman James Inhofe (R-Okla.), Ranking Member Sen. James Jeffords (I-Vt.), Transportation and Infrastructure Subcommittee Chairman Sen. Kit Bond (R-Mo.), and Transportation and Infrastructure Subcommittee Ranking Member Sen. Harry Reid (D-Nev.) said the following:

As we have said throughout the year, completing a 6-year reauthorization of Transportation Equity Act for the 21st century is essential for job creation, economic growth and expansion, and the nation’s infrastructure. We all agree that this legislation is a top priority for this committee, and so we have worked together for several months to find common ground. Today we reached bipartisan agreement on the major issues surrounding the bill and have scheduled a markup for Wednesday, November 5. We expect to move this bill through the EPW Committee with a bipartisan vote, and then proceed to consider it on the Senate floor as soon as Congress returns to work early next year. It is our hope that we can reach agreement with the House before the current extension expires on February 29, 2004 and send a bill to the President’s desk as quickly as possible.

The Senators are hoping to reach an agreement with the House Transportation and Infrastrcuture Committee before the current extension expires in February. The Senate EPW Committee did not divulge the level of funding the bill would provide for highway programs, but the funding level is likley to comply with the $255 billion authorized for highway programs over the next six years in the FY 2004 budget resolution. The highway bill, much like the Administration's SAFETEA proposal, will address highway safety and freight traffic. Also, the issue of minimum funding guarantees for states, a very contentious, will likely not be addressed in the bill, but may be discussed during the markup. Additionally, it remains unclear what provisions were included in the bill to expedite the often cumbersome environmental review process.

Soon after the Senate EPW Committe commences debate on the highway bill, the Senate Banking, Housing and Urban Affairs Committee will likely begin work on the transit portion of TEA-21 reauthorization. The Senate Finance Committee also must reauthorize portions of TEA-21, specifically authorizing the spending of Highway Trust Fund dollars. The Hous Transportation and Infrastrcuture Committee has yet not announced a markup date for their bill, but they will likely make their bill public in early December

After more than 8 hours of debate, the Senate, on Thursday, passed the FY 2004 Transportation-Treasury Spending Bill by a margin of 91-3. A conference with the House will likely occur next week.

The $90 billion Transportation-Treasury spending bill would provide $59 billion for the Department of Transportation, including $33.8 billion for highways, $13.2 billion for aviation and $7.31 billion for transit.

There was some doubt as to whether a vote would occur on Thursday because Senate appropriators never agreed to a time limit on debate. Most surprising about the debate was that there were no transportation amendments introduced and there was scant discussion about transportation issues.

To the disappointment of Amtrak supporters, no amendments boosting funding for the railroad were introduced. Such an amendment would have prompted lengthy debate, making it difficult for the Senate to finish consideration of the bill in one day. The Senate bill provides Amtrak with $1.346 billion in funding. Amtrak originally requested $1.82 billion for the current fiscal year. The House bill provides Amtrak with $900 million for the current fiscal year, which is the number the Administration initially proposed. Amtrak President and CEO David Gunn continues to maintain that the railroad would shutdown if Amtrak only receieved $900 million. Amtrak funding will have to be addressed in conference.

The Senate spent most of the 8 hours debating contentious amendments which would eliminate funding to enforce a travel ban to Cuba, suspend a scheduled pay raise for lawmakers and allow certain government jobs to be privatized.

The Bush Administration, in its Statement of Administration policy, announced it supports the overall bill, but has some concerns about certain provisions. The White House opposes the level of highway funding in the bill, which is $4.5 billion more than the President had requested. The Administration feels the increased highway funding is a concern because "it would either break dramatically with the tradition of tying highway spending with Highway Trust Fund revenue, or lead to a gas tax increase, which the administration strongly opposes." Also, like the House bill, the Senate bill eases travels restrictions to Cuba, which the Administration vehemently opposses. Additionally, the White House continues to support $900 million for Amtrak in the current fiscal year. It remains unclear whether the Administration will issue a veto threat to conferees if funding to enforce the travel ban to Cuba is not restored.

Senate leaders have temporarily abandoned the notion of packaging the remaining six spending bills the Senate has yet to pass into an omnibus spending bill. Senate Majority Leader Bill Frist (R-Tennessee), along with Senate Appropriations Committee Chairman Ted Stevens (R-Alaska) and committee ranking member Sen. Robert Byrd (D-West Virginia) have decided to invidually consider the remaining six bills. However, there are controversial provisions in some of the remaining spending bills which may delay speedy passage of the bills. If the Senate is pressed for time, Senate leaders will likely opt again for an omnibus spending package to finish work on appropriations before adjourning.

On Tuesdsay, the House passed another continuing resolution and the Senate was originally going to attach their omnibus spending package to the CR. However, Senate appropriators were reluctant to consider an omnibus package with bills that had not already been individually considered by the chamber. Senate Republican leaders are now looking for an agreement with Democratic leaders that will limit debate for each spending bill. Senators Stevens and Byrd are working on an agreement that will limit debate on each bill to one day.

Today, the Senate will consider the Transportation-Treasury spending bill (H.R. 2989, S 1589), even though an agreement establishing ground rules for debate on the spending bills has yet to be introduced. If Senators cannot come to an agreement on debate limits, which is still a distinct possibility, Senate leaders will likely resort to their earlier plan of considering an omnibus spending measure.

Even if some spending bills are passed individually, an omnibus spending bill will likely still be needed for some bills. The FY 2004 Distrcit of Clombia appropriations bill (H.R. 2765, S. 1583) has garnered much attention because of a conetentious provision in the measure that would establish a pilot program in the District for school vouchers. Democrats opposse the school vouchers provision and may filibuster the bill, if the provision is not dropped. Also, in the Commerce-Justice-State spending bill (H.R. 2799, S. 1583), there is a controversial provision overturning an FCC ruling allowing media conglomerates to own television stations reaching a larger national audience. The other three bills of the six that the Senate has not passed include: agriculture (H.R. 2673, S. 1427), foreign operations (H.R. 2800, S. 1426) and VA-HUD (H.R. 2861, S. 1584).

The President’s supplemental spending request for Iraq and Afghanistan heads to conference this week.

The House passed an $86.9 billion spending package on October 17. The Senate passed its $86.5 billion version a few hours later.

Despite personal lobbying by the President, the Senate adopted an amendment by a vote of 51-47 in a motion to force Iraq to repay half the money earmarked for reconstruction. This controversial Senate amendment to make some of the money a loan is expected to fail.

As the bills are reconciled in conference, a final bill is expected to be completed before the Madrid donors conference, as requested by the President.

November 7 is the date circulating for the completion of the 2004 omnibus spending bill, although that date is viewed as optimistic by some on the Hill.

Leaders on the Hill indicate that they have a plan for developing an omnibus that will combine the six fiscal 2004 spending bills that the Senate hasn’t passed yet.

A number of decisions on most of the spending issues will still need to be resolved to complete the omnibus. Also, each of the six spending bills has controversial issues over funding and or policy provisions.

Expected fights include Amtrak funding, media ownership and farm policy. If the District of Columbia appropriations are part of the omnibus, there may be an attempt by the Democrats to filibuster a private school voucher plan.

The current stopgap spending law expires October 31.

Tomorrow, the House is expected to pass two stopgap continuing resolutions – one to keep the government running from November 1-7 and the other to serve later for the bills that the Senate hasn’t debated yet.

The Senate Finance Committee has agreed to discharge S 150, the Internet Tax Non-discrimination Act of 2003. With the decision to discharge the bill, it will go directly to the floor without markup. S 150, sponsored by Senator George Allen (R-Virginia), would make the moratorium on taxation of the internet permanent.

The bill has already been approved by the Senate Commerce committee, but was waiting for action by the Senate Finance Committee, which shares jurisdiction.

The House already approved HR 49, a similar bill.

State and local governments have a number of concerns with S 150, including the fact that the bill changes the definition of internet access to be more expansive.