Recent Events Could Delay Policy Action
The Obama administration spent much of last month responding to allegations that have dominated the headlines. While it appears the initial spectacle of these events may be subsiding, it remains to be whether further developments will surface. The bigger question may be whether the Administration can emerge from this period with enough political capital left to push through the President’s second term legislative agenda. Congressional investigations have diverted attention from major legislative initiatives, including immigration reform, tax reform, and comprehensive gun control, and have likely further strained relationships between parties in Washington.

» Law, Justice, and Ethics; Emergency Preparedness/Homeland Security; International Affairs

“Immigration Reform Bill Passes out of Committee in the Senate”
The Border Security, Economic Opportunity, and Immigration Modernization Act passed out of the Senate Judiciary Committee by a vote of 13-5. The bill includes a path to citizenship for an estimated 11 million undocumented residents and strengthens security along the southwestern border. The committee, however, did not vote on any amendments to reintroduce the Diversity Visa Program. The Congressional Black Caucus has been very critical of attempts to eliminate diversity visas, which provide nearly 55,000 visas to mostly African and Caribbean immigrants. Senator Charles Schumer (D-NY) successfully included two amendments to provide assistance for African visa seekers. The bill is expected to hit the Senate floor in June.

The House of Representatives has begun working on its own immigration reform proposal. A group of bipartisan members has agreed to an outline that includes a stricter pathway to citizenship than the Senate bill, but the group has disagreed on health care eligibility for newly legalized immigrants and visas for low-skilled workers. These concerns could delay bill introduction. The House Judiciary Committee continues to work on a separate immigration package through a series of smaller bills as well.

» Agriculture

“Action on the Farm Bill”
The House and Senate Agriculture Committees have passed respective reauthorizations of the Farm Bill. While both bills will cost around $100 billion in implementation and they both cut farm subsidies and increase crop insurance, the bills contain stark differences regarding the Supplemental Nutrition Assistance Program (SNAP). These differences will likely lead to much debate.

The Senate’s bill, the Agriculture Reform, Food and Jobs Act, would immediately eliminate farm subsidies and reduce SNAP funding by reducing benefit eligibility under the “Heat and Eat” program that links SNAP benefits to heating assistance eligibility. The Senate bill would reduce SNAP benefits for 400,000 households by an average $90 per month.

The House’s bill, the Federal Agriculture Reform and Risk Management Act (FARRM) Act of 2013 would phase out most farm subsidies over two years, reform Heat and Eat, and reduce broad-based SNAP eligibility. According to the Center for Budget and Policy Priorities, the House bill would cut nearly 2 million recipients from SNAP benefits.

While both bills had bipartisan support in committee, each proposal has received its share of criticism. Democrats and advocates for low-income communities have been critical of the SNAP cuts, and hardline conservatives have criticized lawmakers for not cutting SNAP enough. The only two Black members of the House Agriculture committee, Congressional Black Caucus Chair, Representative Marcia Fudge (D-OH) and Representative David Scott (D-GA), opposed the proposal.

» Education

“Student Loan Interest Rates Set to Double if No Measures Taken”
Interest rates on federal Stafford student loans are set to double from 3.4 percent to 6.8 percent on July 1 unless Congress takes action. Both sides of the aisle agree that a long-term solution to more closely align interest rates with market conditions, but they remain divided on how a plan should look. On May 23, the House passed a proposal to link rates to the 10-year Treasury rate plus up to 3.93 percentage points, with variable rates over each new loan year and no rate cap. President Obama has threatened to veto the House bill due to his claims that their bill will provide too much uncertainty for loan recipients and does not provide enough relief for low-income students and families. Several alternative proposals exist in the Senate without consensus (even internally amongst Democrats) on the best path forward as the deadline quickly approaches.

» Business, Financial Services, and Insurance

“Marketplace Fairness Act Passes Decisively in the Senate”
On May 6, the Senate passed the Marketplace Fairness Act Senate by a vote of 69 to 24. If enacted, he Marketplace Fairness Act would allow states to streamline their state and local sales taxes and begin the process of collecting sales tax for online purchases. The bill now moves to the House where its future is uncertain. Speaker John Boehner (R-OH) has said that the passage of the bill is not a priority but has given leadership of the bill to Judiciary Committee Chairman Bob Goodlatte (R-VA). Chairman Goodlatte has voiced concerns that the bill could allow states to regulate business outside their borders and needs to be perfected. Other House Judiciary Committee priorities may slow movement of the Marketplace Fairness Act through the House. However, Democratic Whip Steny Hoyer (D-MD) has predicted that if the bill comes to the House floor, it will pass easily.

» Energy, Transportation, and Environment; Labor, Military, and Veterans Affairs

“Water Resources Development Act Passes Senate Overwhelmingly”
As expected, the Senate took up the Water Resources Development Act (WRDA); it passed by a vote of 83-14. The WRDA authorizes the U.S. Army Corps of Engineers to engage in projects such as flood control, water navigation, ecosystem restoration, dredging, water supply, and emergency management. This new reauthorization streamlines projects and sets up a pilot program that allows state and local governments to oversee Corps-authorized projects. The bill now moves to the House, where Chairman Bill Shuster (R-PA) is working on his own version of the authorization that he hopes to release this summer.