Hot Button Blog: A Bipartisan Government Relations Firm

Last night the members of the Congressional Transportation Conference Committee agreed on a bicameral long term transportation reauthorization bill.  House GOP leaders now have until Saturday at midnight to approve the bill prior to the expiration of the current financing measure. The two year bill, which would provide $8.4 billion in funding each year, is similar in structure to a bipartisan bill passed by the Senate earlier this year.   Industry leaders have been particularly vocal in encouraging the passage of a multi-year bill as another short-term extension would leave many projects around the country in jeopardy.  Additionally, the transportation legislation will include a one-year freeze for government subsidized student loan rates.  Off the hill, the TSA allows an additional airport to hire private screeners and states continue to look for alternative solutions to meet infrastructure needs in a difficult economic climate.

On the Hill

Early this morning the conference committee released a new long term surface transportation bill. The bill (H.R. 4348) represents the first agreement on long-term transportation funding legislation since 2005.  Transportation Committee Chairman John Mica (R-Fla.) said that this “tentative agreement establishes federal highway, transit and highway safety policy and keeps programs at current funding levels through the end of fiscal year 2014. Unlike the last transportation bill, which contained over 6,300 earmarks, this bill doesn’t include any earmarks. This bill also does not increase taxes.” Funding has been extended nine times over an almost four-year period since the expiration of the last federal highway bill.  The agreement came together when Republicans agreed to drop controversial provisions from the legislation, such as approval for the Keystone XL pipeline and the blocking of government regulation of coal ash.  In return, Democrats gave up on $1.4 billion for conservation and agreed to allow states more leeway in how they use money that was once mandated for landscaping, bike improvements and pedestrian walkways.

Capping off a particularly productive week for Congress, Senator Kyl (R-Ariz.) has said legislators agreed to put a one-year freeze on government subsidized student loan rates.  It is believed the transportation and student loan bills may combined and presented and voted on as a package.  If an agreement was not reached, federal Stafford student loans would have doubled on July 1.

Elsewhere, the House is continuing work on the fiscal 2013 Transportation, Housing and Urban Development and Related Agencies appropriations bill.  A vote on the final bill is expected by the end of the week.  It is possible that certain levels in the appropriations bill will change based on the authorization bill being worked out by the conference committee.

According to Greg DiLoreto, the president-elect of the American Society of Civil Engineers (ASCE), U.S. infrastructure projects will probably keep their near-failing grade with the ASCE issues its next report on U.S. public facilities in 2013.  The current grade for our country’s infrastructure from the ASCE is a “D”.

At the Agencies

On June 22, Transportation Secretary LaHood announced that 47 transportation projects in 34 states and D.C. will receive a total of almost $500 million from the U.S. Department of Transportation’s TIGER (Transportation Investment Generating Economic Recovery) 2012 program.  Applications for this most recent round of grants totaled $10.2 billion, far exceeding the $500 million set aside for the program.

On June 21 the Senate Commerce Committee questioned acting Federal Aviation Administration (FAA) Administrator, Michael Huerta, who was nominated to the position by President Obama. The hearing included many questions regarding FAA’s delayed safety rules and overwhelming number of whistleblower complaints. Unlike other high-level U.S. political appointees, who serve only as long as the president who nominated them is in office, the FAA job has a five-year term.

The Transportation Security Administration (TSA) has approved private airport security screeners for Orlando’s Sanford International Airport.  A program allowing for airports to hire private security screeners was included in the $59 billion FAA Authorization bill approved earlier this year.

Earlier this month, U.S. Transportation Secretary Ray LaHood awarded $37.5 million to the King County Department of Transportation to build new bus rapid transit lines as part of greater-Seattle’s new six corridor rapid transit system.  The new funding comes from the Federal Transit Administration’s Bus and Bus Facilities Grant Program.

In the States

Florida: On June 14 Florida Governor Rick Scott held a ceremonial bill signing at the Port of Miami for a package of transportation bills totaling more than $450 million and enabling the bonding of another $450 million.  Florida's 14 seaports handled nearly $149 billion worth of goods in 2011 – 50.4 percent of which came from South and Central American – and it is expected that this number will rise as a result of the widening of the Panama Canal.  $60 million is slated to go directly toward improving the ports while the majority of the funding is to improve Florida’s roadways.

New Jersey: Assembly Democrats are attempting to block Governor Chris Christie’s plan to borrow $260 million for transportation funding.  Although Christie’s original transportation plan called for a reduction in borrowing, due to budget shortfalls – partly caused by a recently instituted tax cut – New Jersey is planning on borrowing even more in 2013 than it did in 2012.  Assembly Democrats believe it is fiscally irresponsible to borrow money to pay for a tax cut the state might not be able to afford.  Even if the bill is ultimately passed, it would put more pressure on the state’s Transportation Trust Fund, which has not been able to cover yearly payments on its existing debt.

New Jersey/Pennsylvania: New Jersey Transit has approved a rapid-transit bus route to connect heavily traveled southern New Jersey roads with downtown Philadelphia.  The $46 million project would let buses travel on highway shoulder lanes and the median for part of the trip.  The route could be in service as soon as 2020.

New York: Governor Andrew Cuomo announced that $4.4 million has been awarded to 10 companies, municipalities, and other entities to enable more than 325 new electric-vehicle (EV) charging stations to be installed across New York State.  New York State's electric-vehicle charging stations are supported by a joint effort by the New York State Energy Research and Development Authority's Electric Vehicle Supply Equipment Demonstration Program and the U.S. Department of Energy. New York's transportation sector has considerable potential for energy efficiency. Transportation makes up about three-fourths of the state's oil consumption, and nearly 40 percent of the state's greenhouse gas emissions.

Last week New York City’s Department of Transportation announced a plan to open bidding for the management of 80,800 parking spots across all five boroughs. While some critics are already drawing parallels to the disastrous sale of Chicago’s parking meters in 2008, New York City intends to retain the power to set rates and enforce penalties.  Further differentiating the plan from the Chicago plan is that NYC’s objective is not to structure an upfront payment.  In Chicago, it is estimated that motorists may pay a Morgan Stanley-led partnership at least $11.6 billion to park at city meters over the next 75 years, 10 times what former Mayor Richard Daley got when he leased the system in 2008.  NYCDOT’s request for qualifications is open through July 31.

Texas: Texas State Highway 130, which is currently under construction and will run between San Antonio and Austin, may become the first U.S. road to post a speed limit of 85-mph.  Texas passed a law last year allowing speed limits of up to 85 mph on newly constructed highways deemed safe enough for such high speeds.  Texas and Utah are the only states that even allow speed limits of 80-mph.

Virginia: Governor Bob McDonnell has recently recommitted to a series of public-private partnership projects, including the Hampton Roads Bridge-Tunnel, Interstate 64 on the Peninsula, Interstate 95, and possibly the Port of Virginia.  McDonnell’s decision to rely so heavily on the private sector stems from frustration with the state’s legislature.  The governor of Virginia has the power to circumvent the legislature pursuant to the Public-Private Transportation Act of 1995, which allows private entities to enter into agreements to construct, improve, maintain and operate transportation facilities. All in all, there are eight projects that are designated with "candidate" status for public-private partnerships and an additional 14 in the "conceptual" phase. Virginia is currently seeking public comment on these P3 projects.

• Email This
• Print
• Comments
• Trackbacks

 1.  Despite initial characterization in the press as a split decision, the Supreme Court's ruling in Arizona v. United States is a significant victory for opponents of the Arizona immigration law.

2.  The Court upheld lower court rulings striking down key provisions of an Arizona law that would have (a) criminalized failure to comply with immigration registration requirements, (b) criminalized illegal immigrants seeking employment, (c) provided authority to state law enforcement officers to make warrantless arrests of certain aliens suspected of being in the U.S. illegally.  

3.  The Court upheld, contrary to lower court decisions, a provision of the Arizona law that allows a state law enforcement officer to consult with federal immigration officials regarding the status of an otherwise lawfully detained individual when the officer suspects such individuals of being in the U.S. unlawfully.  The Court made clear, however, that it expects this authority to be narrowly construed and explicitly reserved the right to reconsider the provision in the future.

• Email This
• Print
• Comments
• Trackbacks

While business and government leaders awaited the Supreme Court’s decision on the Affordable Care Act, major Act implementation developments occurred around the country, including Rhode Island’s decision to proceed with health insurance standards, New Hampshire’s decision to block the implementation of a health insurance exchange, and CMS’s announcement that 14 million Americans have already been served by Affordable Care Act programs it manages, while the cost associated with those programs is likely to rise over the next decade.

AT THE AGENCIES

The Centers for Medicare and Medicaid Services report that 14.3 million seniors have already taken advantage of preventative health care benefits furnished through the Affordable Care Act, which means they have received at least one free preventative benefit over the past year.

Regardless of how the Supreme Court rules on the Affordable Care Act, the annual growth rate for U.S. health care spending will likely remain near historic lows for 2013, and then rise at a modest pace for about the next 10 years, CMS said last week. Between 2011and 2013, health care spending is projected to grow around 4 percent, which is just over the historically low rate of 3.8 percent, but the growth in spending is likely to rise to 7.4 percent as coverage expands under the Affordable Care Act.

CMS also announced that from August 1 through September 19, the center will accept applications related to the Advanced Payment Accountable Care Organization Model, driven by the Affordable Care Act. The advanced payment ACO model enables organizations that voluntarily come together to give coordinated, high quality care to their Medicare patients, to receive an advance on their expected shared savings.

ON THE HILL

The Affordable Care Act received support this week from a subcommittee of the Senate Appropriations Committee, which approved $1.5 billion of increased discretionary spending for HHS programs that will fall under the Affordable Care Act in 2013.

IN THE STATES

Rhode Island’s General Assembly approved legislation to establish health insurance standards consistent with those set forth in the Affordable Care. Gov. Lincoln Chafee requested enactment of the legislation.

Though he previously signaled support for creation of an exchange per the requirements of the Affordable Care Act, New Hampshire Gov. John Lynch signed Republican legislation to block the implementation of a health insurance exchange in New Hampshire.

THIRD PARTIES

The Catholic Health Association retreated from its initial position in support of the Affordable Care Act. The association, which is the largest group of nonprofit health care providers in the United States, said it is “imperative” that the Obama administration expand its exemption for Catholic hospitals, schools, and other ministries of the church. 

To view our compilation of recent health care reform implementation news, click here.

• Email This
• Print
• Comments
• Trackbacks

While the Supreme Court makes its decision on the Affordable Care Act, lawmakers in Washington, D.C., are driving forward repeal-oriented legislation and simultaneously talking about reinstating elements of the Act should the whole thing be struck down, while HHS, CMS, and the IRS all released new or proposed rules on how to implement elements of the Act, and states like California and Oregon moved closer to full implementation of the Affordable Care Act.

AT THE AGENCIES

The IRS issued guidance on employer implementation of the Affordable Care Act’s new $2,500 cap on employee contributions to flexible health savings accounts, and has requested comments on possible changes to the “use-or-lose” rules for health FSAs. The $2,500 limit will become effective with cafeteria plan years beginning after December 31, 2012 and will be indexed for inflation.

CMS released its 2011 data on the Primary Care Incentive Program which, established by the Affordable Care Act, requires Medicare to pay primary care providers whose primary care billings comprise at least 60 percent of their total Medicare allowed charges, a quarterly bonus of 10 percent from Jan. 2011 – Dec. 2015. The majority of funds (86 percent) went to physicians practicing in urban areas, and roughly 50 percent went to general internists while 38 percent went to family physicians.

ON THE HILL

Awaiting the Supreme Court’s decision on the Affordable Care Act, Senate Republicans now appear to be embracing a contingency plan rumored to be afoot among key House Republicans: Reinstate popular provisions of the Affordable Care Act if the Supreme Court overturns the law. Notable provisions under discussion include the ability of young adults to stay on their parents’ insurance through age 26, a guarantee of coverage for those with pre-existing conditions, and plans to close the Medicare prescription drug coverage gap known as the “doughnut hole.”

The House Ways and Means Committee marked up four bills and related measures on flexible savings accounts and health savings accounts, which easily passed committee with strong support from Democrats and Republicans.

The previously private details of a lengthy negotiation and deal between the Obama administration and the pharmaceutical industry on the Affordable Care Act were made public last week when the House Energy and Commerce Oversight and Investigations Subcommittee released a memo and associated documents as part of its ongoing investigation launched more than a year ago.

IN THE STATES

New Hampshire’s Granite State Network has teamed up with Cigna to launch a collaborative accountable care initiative that is focused on achieving many of the same goals as accountable care organizations.

Oregon’s Health Authority has provisionally certified 11 organizations to be the state’s first coordinated care organizations under an overhaul of the Oregon Health Plan, made possible by the Obama administration’s approval earlier last month of a $1.9 billion grant. The 11 organizations will be responsible for integrating health care for low-income patients on Medicaid, and more organizations are expected to apply for certifications soon and possibly come online this autumn.

California’s state senate approved a bill to make numerous protections of the Affordable Care Act – such as ensuring individuals do not lose or get denied coverage because of pre-existing conditions and requiring every health plan to include guaranteed availability and renewability of coverage – part of California law.

IN THIRD PARTIES

• Email This
• Print
• Comments
• Trackbacks