January 22, 2010

(1) Health Reform Remains High Priority, With Uncertain Direction, Following Massachusetts Election

Congressional leaders and President Obama are emphasizing that they remain strongly committed to passing health reform legislation in the aftermath of the Massachusetts special election that has changed the political environment in Washington.

Senate Republicans increased their clout this week after Scott Brown (R-MA) scored an upset victory over Martha Coakley (D-MA) in a January 19 special election for the Massachusetts Senate seat that Paul Kirk (D-MA) has held since September 2009. After Brown is sworn into office, the Senate’s membership will include 57 Democrats, 41 Republicans, and two Independents who caucus with Democrats. This means that Senate Democrats will need support from at least one Republican to secure 60 votes on key procedural motions, with significant implications for the health reform debate and other legislative priorities.

Prior to the Massachusetts special election, lawmakers and Administration officials were in the final stages of negotiating a compromise between the comprehensive health reform bills (H.R. 3962/H.R. 3590) that were approved by the House on November 7 and by the Senate on December 24. These talks were focused on producing a final bill that could move through Congress without any Republican support – a strategy that is no longer viable given the new 59-41 split in the Senate.

Over the past several days, members of Congress have discussed a wide range of strategies for moving forward with health reform – including passing a series of scaled-back bills, enacting budgetary provisions in a reconciliation bill, or continuing to press forward with a comprehensive bill – but Democratic leaders and the President have not yet reached a consensus on how they intend to proceed. There also has been discussion about attempting to win House approval of the Senate-passed bill without any amendments, but House Speaker Nancy Pelosi (D-CA) said yesterday that there are not enough votes in the House to pursue this strategy.

House and Senate leaders have indicated that they will take time to weigh their options for addressing health reform, but that they also are eager to move on to other issues, including job creation and the economy. The outlook for health reform is expected to clarify by the time President Obama delivers his State of the Union address on Wednesday evening.

(2) State of the Union Address and Administration Budget Will Help Shape 2010 Agenda

On Wednesday, January 27, President Obama is scheduled to deliver his State of the Union address before a joint session of Congress. One week later, his Administration will submit its fiscal year 2011 budget proposals to Congress.

In addition to addressing health care reform, the President is expected to strongly emphasize issues surrounding job creation, the economy, and deficit reduction in his remarks before Congress. Financial regulatory reform, energy, and climate change are other priorities he is likely to raise. The President’s speech will help shape the legislative agenda for the 2010 session and also is expected to provide clues as to how Democrats will respond to the new political landscape resulting from the special election in Massachusetts.

The Administration’s budget, set for release on February 1, will outline the President’s priorities for federal programs and agencies, including those within the Department of Health and Human Services (HHS), for both fiscal year 2011 and the ten-year budget window. In the following weeks, Administration officials will testify in congressional hearings about these budget proposals as Congress works to develop its annual budget resolution.

(3) Debt Limit Bill Eyed As Vehicle for Deficit Reduction Commission

Since reconvening on Wednesday, the Senate has spent most of this week debating legislation, H.J.Res. 45, that would increase the national debt limit by $1.9 trillion.

One of the amendments offered to this “must-pass” legislation is a proposal by Sens. Kent Conrad (D-ND) and Judd Gregg (R-NH) that would establish a Bipartisan Task Force for Responsible Fiscal Action. The proposed task force would be charged with developing recommendations for addressing the federal government’s long-term budget problems, with a requirement that such recommendations must be approved by 14 of the 18 members on the task force. The proposal includes procedures for “fast track consideration” of the task force’s recommendations by both the Senate and the House, without allowing Congress to amend the recommendations.

While Medicare and Medicaid are not specifically mentioned by the Conrad-Gregg amendment, the Senate floor debate has included significant discussion about the impact the proposed task force could have on these health programs. The Senate is planning to vote on the Conrad-Gregg amendment next week, with 60 votes required for approval. If the amendment fails, President Obama is expected to issue an executive order creating a similar commission, but without any requirement for Congress to take action on the recommendations.

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This entry was posted by Adam V. Russo on Friday, January 22nd, 2010 at 5:51 pm and is filed under Health Care Legislation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.