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Senate Forges Ahead on FY2005 Appropriations Bills

This week, the House completed its consideration of the Transportation, Treasury, and Independent Agencies spending bill. The Senate approved the following spending bills: District of Columbia; Foreign Operations, Export Financing and Related Programs; Legislative Branch; and Military Construction. The Senate Appropriations Committee approved the District of Columbia and Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies spending bills.

To date, the Department of Defense spending bill is the only one of the thirteen FY2005 spending bills that has been enacted into law.

House Action

Transportation, Treasury, and Independent Agencies

After postponing a final vote on the bill last week (see The Source, 9/18/04), the House approved, 397-12, the FY2005 Transportation, Treasury, and Independent Agencies spending bill (H.R. 5025) on September 22. The bill had been delayed because members of the House Appropriations Committee used points of order to strike funding for a number of transportation programs that have expired. Both the House and Senate have approved bills to reauthorize the transportation programs, but a House and Senate conference committee has failed to work out differences in the two bills.

As approved by the House Appropriations Committee on July 22 (see The Source, 7/23/04), the measure would allocate $89.9 billion in FY2005, a $1 billion increase over FY2004 and the administration’s request.

During consideration of the bill, the House rejected, 201-210, a motion to recommit offered by Rep. David Obey (D-WI) that would have restored funding for transportation programs struck from the bill last week.

Rep. Obey explained, “Last week during consideration of this bill, three factions of the majority party took turns in striking entire accounts out of this bill. More than half the budgetary resources that had been in the bill are now missing. More than 80 percent of the Department of Transportation’s resources have been deleted from this bill. This bill is now missing more than $41 billion in funding that was supposed to flow to each of our States for highways, transit and aviation. My motion to recommit the Department of Transportation programs provides adequate funding for addressing the Nation’s transportation needs. This motion asks that the Committee on Appropriations restore the accounts that were deleted by points of order, and it calls for increased funding above the committee-reported level for highways, transit, new start projects, Amtrak and Grants-in-Aid for airports.”

Speaking in opposition to the motion, Rep. Ernest Istook (R-OK) responded, “I very much appreciate the frustration of the gentleman from Wisconsin, and certainly I have a high level of frustration, and many people do, because of the things that on parliamentary procedures were stricken on points of order, because we have so many programs that have not been reauthorized. However, there is a much better way to fix the problem, and that is to finish the process, pass the bill, move it to conference where we are then able to bring a conference report back before this House that is not subject to these points of order. Were we to do what the gentleman from Wisconsin seeks, we would only repeat the exercise in frustration. He wants us to take the bill back to committee, reinsert the things that were taken out on points of order and, while we are at it, put more money in them. Then, if we brought the bill back to the floor, guess what? Those same points of order are here on the floor. We go through the exercise again.”

H.R. 5025 would provide $150 million for job access and reverse commute grants, $25 million more than FY2004. The grants would not have been funded under the administration’s budget request. According to the House Appropriations Committee report accompanying H.R. 5025, “The purpose of the job access and reverse commute grant program is to develop services designed to transport welfare recipients and low income individuals to and from jobs and to develop transportation services for residents of urban centers and rural and suburban areas to suburban employment opportunities.”

As requested by the administration, the Minority Business Resource Center would be level-funded at $900,000 in FY2005. The center “provides assistance in obtaining short-term working capital and bonding for disadvantaged, minority, and women-owned businesses.” The center also “enables qualified businesses to obtain loans at prime interest rates for transportation-related projects.” In addition, funding for minority business outreach would be level-funded at $3 million as requested by the administration.

The bill would level-fund the occupant protection incentive grant program at $20 million in FY2005. The total would include funding for outreach initiatives to increase seatbelt use and $10 million for national paid media to support national safety belt mobilizations.

H.R. 5025 would provide $120 million for the National Youth Anti-Drug Media Campaign, $25 million below the FY2004 level.

The bill would maintain current law requiring health plans participating in the Federal Employees Health Benefits Plan (FEHBP) to cover prescription contraceptives if they cover other prescription drugs. Physicians and others who provide contraceptives are exempted from the requirement if they object based on religious beliefs. Religiously affiliated health plans also are exempt. Additionally, the measure would prohibit abortion coverage under FEHBP, except when the life of the mother is endangered or in the case of rape or incest.

The measure also would maintain current law permitting breastfeeding in a federal building or on federal property if the woman and child are authorized to be there.

Senate Action

Military Construction

After more than a week of debate, the Senate approved, 91-0, the FY2005 Military Construction spending bill (H.R. 4837) on September 20. The text of S. 2674, as approved by the Senate Appropriations Committee on July 15 (see The Source, 7/16/04), was substituted for the bill.

H.R. 4837 would allocate $10 billion in FY2005, $687 million more than FY2004, $450 million above the administration’s request, and equal to the amount approved by the House on July 22 (see The Source, 7/23/04).

As requested by the administration, $4.2 billion would be allocated for military family housing, of which $1.62 billion would be allocated for new family housing units and improvements to existing units, and $2.5 billion would be used for the operation and maintenance of existing units. Congress allocated $3.9 billion in FY2004 for military family housing.

The bill would direct the Department of Defense to assess the impact of privatization on the military family housing program.

District of Columbia

On September 22, the Senate approved, by unanimous consent, the FY2005 District of Columbia spending bill (H.R. 4850). The text of S. 2826, as approved by the Senate Appropriations Committee on September 21, was substituted for the bill.

As requested by the administration, the measure would allocate $560 million for the District of Columbia in FY2005, a $15 million increase over FY2004 and equal to the amount approved by the House on July 20 (see The Source, 7/23/04).

The Senate Appropriations Committee report accompanying S. 2826 states, “Funding in this bill focuses on three key priorities for the District of Columbia. These include: (1) enhancing educational opportunities for inner-city students; (2) reducing and preventing crime in the District; and (3) increasing security in the Nation’s Capital.”

Under the bill, $40 million would be provided “to promote inner-city educational opportunities for primary and secondary school students. The Committee’s plan is comprised of three interrelated components: investing in excellence in traditional public schools; expanding school choice through high quality charter schools; and offering opportunity scholarships for low-income students to attend private schools.”

The measure would provide $13 million for the improvement of public schools in FY2005, equal to the FY2004 level. Of that amount, $5 million would be allocated for a new incentive fund to reward high performing or significantly improved schools. Additionally, $5 million would be included for the Transformation School Initiative “to reform the lowest performing public schools.”

Funding for public charter schools would be level-funded at $13 million in FY2005. According to the report, the committee “would like to take this opportunity to express its unwavering support for the charter school movement in the District of Columbia. With 41 charters granted to date, the District has achieved the distinction of having the highest number of charter schools per capita. As such, the District is in a position to serve as a leader in the effort to use charter schools to spur system-wide improvement within our system of public education. This Committee reaffirms its commitment to serve as a full and equal partner in this endeavor.”

In FY2005, level funding of $14 million would be provided for private school vouchers. The report notes that these funds “will continue a scholarship program to allow low-income students attending consistently under-performing, public schools to choose to attend private schools within the District. The Committee believes that this program is improving the academic prospects of students receiving scholarships and is stimulating improvement within the public school system.”

The bill would provide $195 million for the operation of the D.C. courts, $27.2 million above the FY2004 level, but $33 million less than the administration’s request. The total would include funding for the Family Court, which handles all cases in the District pertaining to child abuse and neglect, domestic violence, adoption, and foster care.

As requested by the administration, no funding would be provided for the Family Literacy Program. Congress allocated $2 million for this program in FY2004.

The measure would provide $5 million for improvements to the District’s foster care system, $9 million below the FY2004 level. The administration’s budget request did not include funding for this purpose. The committee “understands that there are several critical areas that, if addressed, can go a long way toward improving the lives of thousands of children in the DC foster care system and help expedite their placements in stable, loving homes. The critical needs identified by the Committee include: (1) intensive, early intervention when children enter care; (2) early mental health assessments and mental health services for all children in foster care; (3) recruitment and retention of qualified social workers; (4) recruitment and retention of foster parents; and (5) improved computer tracking of all children in foster care.”

Included in the bill is a provision that would allow the District of Columbia to use local funds for a needle exchange program.

The measure would prohibit the use of federal funds to implement a D.C. law that permits municipal employees to purchase health insurance benefits for their domestic partners, regardless of gender or marital status.

The bill would maintain current law with respect to the prohibition on the use of local and federal funds for abortion coverage for low-income women on Medicaid. Exceptions for abortion coverage would be made in cases of rape, incest, or life endangerment.

Foreign Operations, Export Financing and Related Programs

On September 23, the Senate approved, by voice vote, the FY2005 Foreign Operations, Export Financing and Related Programs spending bill (H.R. 4818). The text of S. 2812, as approved by the Senate Appropriations Committee on September 15 (see The Source, 9/18/04), was substituted for the bill.

The measure would allocate $19.58 billion in FY2005, a $2.38 billion increase over FY2004, $1.78 billion below the administration’s request, and $180 million more than the amount approved by the House on July 15 (see The Source, 7/16/04).

During consideration of the bill, the Senate approved, by voice vote, an amendment offered by Sen. Jon Corzine (D-NJ) that would provide an additional $75 million in emergency assistance for the Darfur region of Sudan, bringing the total to $690 million in FY2005.

The Senate also approved the following amendments by unanimous consent:

  • an amendment by Sen. Patrick Leahy (D-VT) that would require information on the use of condoms to be medically accurate and include information on the public health benefits and failure rates of such use; and
  • an amendment by Sen. Jeff Bingaman (D-NM) that would require funding for the United Nations Population Fund (UNFPA) to remain available until September 30, 2006. If the administration should choose to not release these funds, as it has in the past, they could not be used for any other purpose.

Sen. Mary Landrieu (D-LA) expressed her concern that the bill would provide only $1.5 million for the United Nations Development Fund (UNIFEM). This amount is $500,000 above the FY2004 level, but $1.5 million below the House’s appropriation. She stated, “UNIFEM works in more than 100 countries to invest in women to reduce poverty, end violence against women, combat HIV/AIDS, and support women’s roles in conflict prevention and reconstruction. This investment in women contributes to a more stable world for all countries. Despite our contributions for UNIFEM’s work and mission, the United States has yet to step forward and provide adequate core support to UNIFEM. Our current contribution is $1 million annually, less than countries like Belgium, whose size and population are less than some of our states. In fact, our total support for UNIFEM is 6 percent of their budget, a considerable distance from the average of 22 percent that the United States contributes to other UN agencies. Additionally, the UNIFEM Trust Fund in Support of Actions to Eliminate Violence Against Women a key support mechanism for local groups fighting violence has never received a US government contribution.”

She added, “As you know, the House passed a Foreign Operations Appropriations bill that includes greater funding for UNIFEM than is included in the proposed Senate bill…I respectfully request that the Senate work to adopt the House recommended support levels for the United Nations Development Fund for Women UNIFEM and the UNIFEM Trust Fund in Support of Actions to Eliminate Violence Against Women. Specifically, in conference, I hope the Senate will favorably consider the addition of $500,000 to the $1.5 million that is presently allocated to UNIFEM, for a total of $2 million. Second, I respectfully ask that the Senate conferees consider the addition of $1 million as a first time contribution to the UNIFEM Trust Fund in Support of Actions to Eliminate Violence Against Women. Again, these additions would reflect the sums allocated in the House Foreign Operations Appropriations bill and provide assistance to women throughout the developing world.”

Under the bill, $1.55 billion would be earmarked for the Child Survival and Health Programs Fund, $250 million less than FY2004 and $130 million above the administration’s request.

H.R. 4818 would provide $2.42 billion for HIV/AIDS prevention activities, $770 million above the FY2004 level and $220 million more than the administration’s request. The total includes $400 million for the Global Fund to Fight AIDS, Tuberculosis, and Malaria; $600 million in bilateral HIV/AIDS funding within the Child Survival and Health Programs Fund to finance ongoing programs; $1.45 billion for the Global HIV/AIDS Initiative; $30 million for HIV/AIDS activities at the World Health Organization; and $28 million for a U.S. contribution to UNAIDS.

The Senate Appropriations Committee provides that not less than $32 million “should be made available to USAID to support research on and development of microbicides as a means of combating HIV/AIDS, of which up to [$2 million] should be made available to the International Partnership for Microbicides.”

The bill would provide $1.46 billion for development assistance programs administered by USAID, $600 million more than FY2004 and $130 million above the administration’s request. Of the total, $15 million would be allocated for the Women in Development Office.

The measure would provide $5 million for pilot programs to address the high incidence of sexual and gender-based violence in conflict regions in Africa.

Under the bill, $450 million would be provided for international family planning programs in FY2005, a $21 million increase over FY2004 and $25 million above the administration’s request.

The UNFPA would receive $34 million in FY2005. Last year, Congress provided $34 million for the UNFPA; however, the administration has not yet released those funds.

H.R. 4818 would provide $929.25 million for Afghanistan, of which not less than $505.45 million should be made available for humanitarian and reconstruction assistance. The total includes $50 million to support programs for Afghan women and girls, an increase of $45 million above the FY2004 level.

Under the bill, $25 million would be provided for programs and activities that foster democracy, human rights, civic education, women’s development, press freedom, and the rule of law in countries with a significant Muslim population. The Middle East Partnership Initiative (MEPI) would receive $4.5 million in FY2005 “for scholarship programs for students from countries with significant Muslim populations at accredited American higher education institutions.”

The bill would provide $45 million for programs and activities to counter trafficking in persons.

H.R. 4818 would provide $1.12 billion for the new Millennium Challenge Corporation, $1.38 billion less than the administration’s request. Last year, Congress allocated $650 million for the Millennium Challenge Assistance (MCA) program. The MCA would grant foreign assistance based on a country’s commitment to democratic rule and capitalism.

The Peace Corps would receive $310 million in FY2005, $15 million less than FY2004 and $91 million below the administration’s request.

The measure would provide $20 million for the new Conflict Response Fund, $80 million less than the administration’s request.

H.R. 4818 would provide $125 million in FY2005 for the United Nations Children’s Fund, $5 million more than FY2004 and the administration’s request.

Senate Committee Action

Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies

Bypassing subcommittee action, the Senate Appropriations Committee approved, 29-0, the FY2005 Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies spending bill (S. 2825).

The measure would provide $92.93 billion in FY2005, a $1.63 billion increase over FY2004, $830 million above the administration’s request, and $30 million more than the amount approved by the House Appropriations Committee on July 22 (see The Source, 7/23/04).

Department of Housing and Urban Development (HUD)

The bill would provide $1.26 billion for homeless programs, $10 million less than FY2004 and $34 million below the administration’s request. Of that amount, $186 million would be provided for Shelter Plus Care renewals. In addition, $1.5 million would be provided for the U.S. Interagency Council on Homelessness. The Senate Appropriations Committee report accompanying S. 2825 states that the committee “remains fully committed to ending chronic homelessness over 10 years. To that end, the Committee supports Federal, State, and local efforts to increase, over time, the supply of permanent, supportive housing for chronically homeless, chronically ill people until the need is met at an estimated 150,000 units. Accordingly, the Committee again includes bill language that requires HUD to spend a minimum of 30 percent of the funds appropriated under this account for permanent housing. The Committee emphasizes that this is the minimal level of effort expected to be spent on permanent housing and strongly urges the Department to maximize its funding on this endeavor.”

The measure would not include the administration’s request of $50 million for the Samaritan Initiative. Congress has not yet approved legislation authorizing the program.

As requested by the administration, the Housing Opportunities for Persons with AIDS (HOPWA) program would receive $294.8 million in FY2005, a $1.7 million decrease below the FY2004 level. According to the report, the committee “requires HUD to allocate these funds in a manner that preserves existing HOPWA programs to the extent those programs are determined to be meeting the needs of persons with AIDS…These funds will support some 73,700 housing units for persons with HIV/AIDS and their families.”

S. 2825 would include $20.7 billion for Section 8 voucher renewals, $3.1 billion more than FY2004 and $2.24 billion above the administration’s request. The committee “is very concerned over HUD’s failure to adequately implement the fiscal year 2004 funding mechanism for section 8 vouchers. Because both HUD and PHAs [public housing agencies] waited until more than 6 months in the fiscal year to address the rent requirements in the fiscal year 2004 conference report, many low-income families were put at risk of losing vouchers and housing through no fault of their own. The Committee expects HUD to develop timely guidelines at the beginning of the fiscal year.”

Fair housing activities would receive $47.7 million in FY2005, $30,000 less than FY2004 and the administration’s request. Of that amount, $27 million would be provided for the Fair Housing Assistance Program and no less than $20.7 million would be provided for the Fair Housing Initiatives Program.

The measure would provide $175 million for lead-based paint hazard reduction and abatement activities in FY2005. Of that amount, HUD may use up to $9.5 million for the Healthy Homes Initiative, $500,000 below the administration’s request. The report states, “There remains significant lead risks in privately-owned housing, particularly in unsubsidized low-income units. For that reason, approximately 1 million children under the age of 6 in the United States suffer from lead poisoning. While lead poisoning crosses all socioeconomic, geographic, and racial boundaries, the burden of this disease falls disproportionately on low-income and minority families. In the United States, children from poor families are eight times more likely to be poisoned than those from higher income families. Nevertheless, the risks associated with lead-based paint hazards can be addressed fully over the next decade.”

In FY2005, the American Dream Downpayment program would receive $50 million, $150 million less than the administration’s request. The report notes that the committee “supports expanding homeownership opportunities, but is concerned that this program may be helping families with excessive credit risk and who may not be the best candidates for homeownership. The Committee requests that HUD report to the Committees on Appropriations on the rate of default by those in the program as well as the numbers of participants who have missed their mortgage payments by 30 days, by 60 days and by 90 days and/or who have received some sort of relief to keep their mortgages current.”

Under the bill, $45 million would be provided for the Housing Counseling Assistance Program, equal to the administration’s request. The committee “views homeownership counseling, including pre- and post-purchase counseling, as an essential part of successful homeownership. The Committee expects that this program will remain available to those participating in all HUD’s homeownership programs. The Committee continues to urge HUD to utilize this program as a means of educating homebuyers on the dangers of predatory lending, in addition to the Administration’s stated purpose of expanding homeownership opportunities.”

Finally, the Self Help Homeownership Opportunity Program would receive $25 million in FY2005, $40 million below the administration’s request.

The bill would provide $65 million for the Youthbuild Program, $400,000 above the administration’s request. Of that amount, $7 million would be provided for the development of programs in rural and underserved areas.

Independent Agencies

As requested by the administration, S. 2825 would provide $7.08 million for the Office of Science and Technology Policy (OSTP) within the Executive Office of the President. According to the report, the committee is concerned “about the adequacy of this Nation’s scientific and technical workforce, and the efforts needed to boost the participation of women and minorities in the science and engineering workforce. The Committee urges OSTP to work with the relevant agencies on the development of policies and in the allocation of resources to address these issues effectively.”

In FY2005, the National Science Foundation (NSF) would receive $5.74 billion, an increase of $145 million above FY2004 and equal to the administration’s request. The committee “supports fully the Foundation’s efforts to push the boundaries of science and technology issues, especially in the areas of information technology, biotechnology, and nanotechnology. The Committee also applauds the Foundation’s efforts to address the problem of science and mathematics education among K-12, undergraduate, and graduate students. However, in order for the Foundation to reach successfully its research and education goals, it must reach out to individuals and schools that have not participated fully in NSF’s programs. Accordingly, the Committee remains concerned about programs designed to assist minorities, women, and schools that have not received significant Federal support.”

The committee “recognizes and is supportive of the request by the administration for an additional 500 fellowships within the Foundation’s graduate research education programs. The request will allow for 5,500 fellowships to be funded at $30,000 per award. The Committee believes that this funding will allow NSF to attract more of the best and brightest students into the science, mathematics, engineering, and technology fields. The Committee also urges NSF to work towards increasing the number of women, minorities, and other underrepresented groups within these programs to the greatest extent possible.”

As requested by the administration, the bill would provide $115 million for the Neighborhood Reinvestment Corporation to help “local communities establish working partnerships between residents and representatives of the public and private sectors.” The report explains, “These partnership-based organizations are independent, tax-exempt, nonprofit entities and are often known as Neighborhood Housing Services (NHS) or mutual housing associations. Collectively, these organizations are known as the NeighborWorks network.”

The committee “continues to support the work being done by NeighborWorks members to combat predatory lending practices. The Committee recognizes the importance that financial literacy and homeownership counseling have in preventing people from becoming victims of predatory schemes. The Committee also recognizes that NeighborWorks members have successfully counseled tens of thousands of people who went on to become homeowners and encourages the Neighborhood Reinvestment Corporation and its network to expand its education and counseling programs.”

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