Debt-ceiling negotiations
Political standoffs continue to dominate the debt limit negotiations in the 113th Congress. The U.S. is now bumping against the $16.4 trillion debt-ceiling and lawmakers in both parties are grappling with solutions to this problem.
In order to allow for more time in ongoing negotiations and possible solutions, members of the House of Representatives have voted to temporarily suspend the debt limit. H.R. 325, the “No Budget, No Pay Act”, was introduced by Rep. David Camp (R-MI) on January 22, 2013, and passed with a recorded vote of 285-144.
Here is a brief summary of H.R. 325:
- This bill suspends the current public debt limit through May 18, 2013;
- If lawmakers do not pass a budget by April 15, 2013, their salaries will be withheld in an escrow till either a budget is passed or the end of the 113th Congress;
- The White House released a statement saying it would not try to oppose the measure because it would at least provide a “short term solution to the debt limit”;
- At the end of the period (Jan. 23-May 18, 2013) the aggregate debt limit will be amended and replaced to reflect the amount borrowed in this time;
- This legislation allows the Treasury to issue enough debt necessary for only the payments due before May 18, 2013; and
- H.R. 325 contains no tax increases or spending cuts.
A detailed summary of this bill can be found at:
https://thomas.loc.gov/cgi-bin/bdquery/z?d113:H.R.325:
As lawmakers outline long-term solutions for the debt limit, legislation prioritizing federal payments has been introduced in the House of Representatives. The specific legislation H.R. 247 “Ensuring the Full Faith and Credit of the United States and Protecting America’s Soldiers and Seniors Act” has been submitted. In the event of a Congressional refusal to raise the debt-ceiling, this bill ensures that the Treasury Department will ‘prioritize’ payments due in this structure:
- Paying the principal and interest on U.S. National debt
- Social Security benefits
- Active-duty military pay
Prioritizing payments to avoid a default on the national debt (at least in the strictest technical sense) was among the topics discussed by the Ways and Means Committee this week. Witnesses to this committee included:
- Mr. Lee Casey – Partner, Baker Hostetler
- Mr. G. William Hoagland – Senior Vice President, the Bipartisan Policy Center
- Mr. J.D. Foster – Norman B. Ture Senior Fellow in the Economics of Fiscal Policy, The Heritage Foundation
- Mr. Simon Johnson, Ph.D. – Ronald A. Kurtz Professor of Entrepreneurship, Massachusetts Institute of Technology
According to witnesses, the Treasury could prioritize payments, choosing to pay some obligations and not others until after the nation’s borrowing authority is restored. However:
- Prioritizing payments would neglect thousands of federal commitments;
- If the government were unable to complete its obligations, staggering job loss would occur;
- Non-defense discretionary spending would be heavily hit.
For a record of the hearing and to read witness testimony, please visit:
https://waysandmeans.house.gov/calendar/eventsingle.aspx?EventID=316935
Prioritization may be legal according to the testimony but the actual implementation of it would not be practical. On average, the treasury must make over 5 million payments on each business day; implementing prioritization would be a dramatic overhaul of the payment schedule and execution would be extremely difficult on short notice.
NAHMA is extremely concerned that prioritizing federal payments would wreak havoc on affordable housing programs by curtaining HAP, PRAC, and Rural Rental Assistance contract payments.
Reauthorization of the Violence Against Women Act (VAWA)
On January 22, 2013 Senate Judiciary Committee Chairman Patrick Leahy (D-VT) and Mike Crapo (R-ID) introduced S. 47, a bill to reauthorize the Violence Against Women Act (VAWA) of 1994. Representative Gwen Moore (D-WI) introduced H.R. 11, the House companion bill. VAWA was designed to strengthen and improve existing programs that assist victims and survivors of domestic violence, dating violence, sexual assault, and stalking. The Violence Against Women Act was reauthorized in 2000 and again in 2005.The VAWA reauthorization of 2005 made it unlawful to deny an individual Section 8 housing assistance because the individual is a victim of domestic/dating violence. The law expired in September 2011.
VAWA was set to be reauthorized in 2012; however the version of VAWA that was presented contained provisions for battered illegal immigrants to obtain temporary visas. This aspect caused delay because of the new immigration policies required to meet this goal. To better ensure passage of the Senate VAWA bill, Leahy decided this year’s measure should not include the increase in temporary visas available to immigrant victims. The Violence Against Women Act of 2013 will provide a five year authorization for VAWA programs, and reduce authorized funding levels by more than $135 million, or 17 percent, from the law’s 2005 authorization.
S. 47 closely follows the housing provisions from the bill passed by the Senate last year (S. 1925). These provisions would:
- Extend the VAWA’s protections to victims of sexual assault;
- In addition to the Section 8 program, extend VAWA’s protections to new federal housing programs including:
- Section 202 and 811;
- Homelessness assistance;
- Section 236;
- Public housing;
- All rural housing programs administered by USDA-RD; and
- The LIHTC;
- Allow third-party verification when VAWA verification documentation contains conflicting information; and
- Prevent the recapturing of LIHTCs because of non-compliance issues.
However, NAHMA remains concerned that the bill still requires resident notification of VAWA rights at eviction. Additionally, we are concerned about the feasibility of “emergency transfer” language which requires federal agencies to develop model policies and procedures for emergency transfers for use by public housing agencies, owners and agents. O/As cannot “transfer” tenants between properties.
Disaster Relief
The Hurricane Sandy Relief Bill, H.R. 152, will be considered in the Senate on Monday, January 28, 2013. The House of Representatives passed H.R. 152 last week.
Senate Committee Assignments
The Senate named majority and minority committee members on January 24, 2013 for the 113th Congress:
| Appropriations Committee |
- Barbara Mikulski (Chair) (D-MD)
- Patrick Leahy (D- VT)
- Tom Harkin (D-IA)
- Patty Murray (D-WA)
- Dianne Feinstein (D-CA)
- Richard Durbin (D-IL)
- Tim Johnson (D-SD)
- Mary Landrieu (D-LA)
- Jack Reed (D-RI)
- Frank Lautenberg (D-NJ)
- Mark Pryor (D-AR)
- Jon Tester (D-MT)
- Tom Udall (D-NM)
- Jeanne Shaheen (D-NH)
- Jeff Merkly (D-OR)
- Mark Begich (D-AK)
|
- Richard Shelby (R-AL)
- Thad Cochran (R-MS)
- Mitch McConnell (R-KY)
- Lamar Alexander (R-TN)
- Susan Collins (R-ME)
- Lisa Murkowski (R-AK)
- Lindsey Graham (R-SC)
- Mark Kirk (R-IL)
- Daniel Coats (R-IN)
- Roy Blunt (R-MO)
- Jerry Moran (R-KS)
- John Hoeven (R-ND)
- Mike Johanns (R-NE)
- John Boozman (R-AR)
|
| Committee on Banking, Housing, and Urban Affairs |
- Tim Johnson (Chair) (D-SD)
- Jack Reed (D-RI)
- Charles Schumer (D-NY)
- Robert Menendez (D-NJ)
- Sherrod Brown (D-OH)
- Jon Tester (D-MT)
- Mark Warner (D-VA)
- Jeff Merkley (D-OR)
- Kay Hagan (D-NC)
- Joe Manchin III (D-WV)
- Elizabeth Warren (D-MA)
- Heidi Heitkamp (D-ND)
|
- Mike Crapo (R-ID)
- Richard Shelby (R-AL)
- Bob Corker (R-TN)
- David Vitter (R-LA)
- Mike Johanns (R-NE)
- Patrick Toomey (R-PA)
- Mark Kirk (R-IL)
- Jerry Moran (R-KS)
- Tom Coburn (R-OK)
- Dean Heller (R-NV)
|
| Committee on the Budget |
- Patty Murray (Chair) (D-WA)
- Ron Wyden (D-OR)
- Bill Nelson (D-FL)
- Debbie Stabenow (D-MI)
- Bernard Sanders (I-VT)
- Sheldon Whitehouse (D-RI)
- Mark Warner (D-VA)
- Jeff Merkley (D-OR)
- Christopher Coons (D-DE)
- Tammy Baldwin (D-WI)
- Tim Kaine (D-VA)
- Agnus King Jr. (I-ME)
|
- Jeff Sessions (R-AL)
- Chuck Grassley (R-IA)
|
