|
Policy Directions extends its thoughts and prayers to all
those affected by Hurricane Katrina.
Congress Approves $51.8-Billion Emergency
Package; Total Federal Spending Could Approach $200 Billion
Congress approved another $51.8 billion in federal emergency spending
this week, bringing the total federal obligation in the wake of Hurricane
Katrina to more than $62 billion. The President signed the package
late September 8. Insiders contend total federal emergency spending
for Katrina, the drought in the Midwest and other recent disasters
could easily exceed $200 billion.
The budget watchdog group, Council for Citizens Against Government
Waste, have asked members of Congress to sign a “no pork” pledge,
a vow that members will not vote for any spending not directly related
to impact of Hurricane Katrina.
Return
to top
Budget Reconciliation?
In light of the tragic effects of Hurricane Katrina,
Congress has dedicated itself almost exclusively to this topic in its
first week
of work after the August recess. Indeed, it seems likely that Hurricane
Katrina investigations, examinations, debates will carry well into
next week, leading to serious discussions about postponement
of other work.
Among the matters that otherwise would have been on
the front burner for September is budget reconciliation. Committees
would have been
expected to have legislation ready by September 16 to reflect the
instructions they were given in the budget resolution, achieving the
specific savings in programs in their jurisdiction. In addition, tax
code changes were expected to be part of this package, as Congress
had expressed its intention to extend certain tax changes, such as
estate taxes.
Plans for cuts in the Medicaid program were of particular
concern to Democratic members, especially to the extent those plans
would include
such beneficiary impacts as cost sharing and asset tests. While many
in Congress agree conceptually that Medicaid “reforms” may
be needed for more efficient program operations and to help
states with their serious budget problems, members to date had been
unable
to come to agreement regarding what reforms would work, how the program
could be changed while continuing to ensure a safety net for the poor
and the elderly, and whether a $10 billion cut over five years necessarily
would place vulnerable people at risk. The effects of Hurricane Katrina
have placed those concerns in stark relief and members continue to
refer to its victims when discussing the need to keep the Medicaid
program thriving.
Because of this political debate and for other reasons
also related to the disaster, general agreement appears to exist that
budget reconciliation
will be delayed for some period of time - a few weeks or perhaps longer,
depending on how discussions proceed and how the politics play out.
Return to top Gulf Ports Showing Rapid Recovery; Challenges Remain
Having sustained only slightly less damage from Hurricane Katrina
than neighboring New Orleans, export facilities at the Gulf this week
resumed limited operation, but are improving operations daily. Power
has been restored to eight of the 10 export elevators. Along with the
three floating rigs which load ships directly from barges, USDA estimates
capacity as of late this week running at more than 63%. Bunge reported
its export elevator in the Gulf is now operational.
However, while ships are moving in the channel, vessels are limited
in their movements, barge traffic is slower and labor shortages continue
to plague grain loading and unloading facilities. At the same time,
reinstalling navigational aids and getting the channel back to handling
43-foot draft vessels is a priority. Agriculture Secretary Mike Johanns
said in a statement this week he is encouraged by the progress made
at the Gulf, and “we are assuring our international customers
that we expect minimal disruption.”
Return to top
Senate Foresees Comprehensive Ag Package; Budget Cuts Reevaluated
Any emergency supplemental spending bill to aid victims
of Hurricane Katrina will include a “comprehensive” agriculture
disaster package, said Sen. Saxby Chambliss (R-GA), chair of the Senate
Agriculture
Committee. Chambliss said the package would cover a wide range of needs
including: sugar cane in Louisiana, southern dairies, drought in the
Midwest, tornado damage, Georgia poultry producers and fruits and vegetables
in Florida. At the same time, Sens. Dick Durbin (D-IL) and James Talent
(R-MO) sent a letter to President Bush this week asking the White House
to make sure farmers get their share of disaster funding, but did not
specify an amount. Durbin and Talent subsequently introduced an ag
relief bill.
Meanwhile Chambliss is still figuring out how to approach
his committee’s
need to trim about $2.3 billion out of current ag spending as directed
by budget rules. He stopped short of canceling his committee’s
scheduled markup. He said there are three ways he can achieve the mandatory
cuts: trim farm subsidies, cut conservation programs, or reduce nutrition
spending. Chambliss also predicted action on Katrina will delay
Senate consideration of the ag appropriations bill.
Return to top
Berry Introduces Ag Relief Act on Katrina, Midwest
Drought
Rep. Marion Berry (D-AR) this week introduced the “Agriculture
Assistance Act of 2005,” a “significant disaster relief
package” aimed at providing assistance to producers affected
by Hurricane Katrina, but also severe drought and other natural disasters.
Berry said the aid is needed because farmers have been hit with drought,
skyrocketing fuel prices, low crop prices and “the worst hurricane
to ever hit the U.S.”
Under Berry’s plan, farmers would receive additional
relief if they live in counties declared disaster areas by USDA or
the White
House. Eligible farmers would receive a choice of either an additional
half payment above the amount they received in 2005 under the current
Farm Bill, or payment based on yield losses. Supplemental payments
will be made on covered commodities, livestock assistance, fruits and
vegetables, cottonseed, and additional hurricane assistance.
Return to top
Burns Wants BNSF to Suspend Fuel Surcharges
In a letter to Matthew Rose, president of the Burlington Northern
Santa Fe (BNSF) Railroad this week, Sen. Conrad Burns (R-MT) challenged
the
rail giant to suspend diesel fuel surcharges for the immediate future
and invited the rail exec to Washington, DC, to discuss the railroad’s
responses to Hurricane Katrina. Burns said BNSF and the rail industry
could contribute “tremendously” to the national recovery
from Katrina. Burns cited fuel surcharges for ag shipments of 11.5%
in September and 13% in October, and for coal shipments of 14.5% in
September and 16% in October.
Return to top USDA Offering Producer Assistance with Hurricane-Related
Damage
USDA this week made more than $170 million in emergency assistance
available to farmers and ranchers with hurricane-related damage. At
the same time, the Commodity Credit Corp. (CCC) implemented immediate
changes to its marketing assistance loan program, allowing farmers
to get loans for on-farm grain storage on the ground in addition to
grain bins and other normally approved structures. At the same time,
$20 million in emergency conservation program (ECP) funding is available
for counties in Louisiana, Alabama, Mississippi and Tennessee to help
repair land. ECP participants will receive cost-share payments of up
to 75% of the cost of approved ECP practices, including debris removal
and rebuilding of fences and conservation structures. For more information
on specific program being offered, go to www.usda.gov and click on
the Hurricane Katrina Relief site.
Return to top
Dorgan Drops Bills to Give Consumer Rebates from Oil
Company Profits
A national consumer rebate program funded by the “windfall
profits” of
major oil companies would be enacted under legislation introduced this
week by Sen. Byron Dorgan (D-ND). “Major oil companies have seen
the price of a barrel of oil climb…to more than $70 in less than
18 months resulting in billions of dollars in windfall profits, without
any significant increase in expenses,” Dorgan said. The program,
which would give each consumer a tax rebate check, would be funded
through a three-year, 50% excise tax on oil company windfall profits,
defined as that portion of the price of a barrel of oil exceeding
$40. The windfall profit calculation would be reduced dollar-for-dollar
by investment in new domestic oil exploration, increased or new refinery
capacity or renewable energy sources.
Several other House and Senate members have introduced
various legislation designed to ease the economic impact of skyrocketing
energy costs.
One bill would suspend the federal gasoline tax of 18.3 cents per gallon
for 30 days. (See "New Bills")
Return to top
Japan Reviews Safety of Bt10
Corn exporters and Syngenta, developer of a genetically modified corn
known as Bt10, are hoping a Japanese food safety panel will approve
the new corn as safe for animal feeding at a meeting next week. A proposal
to accept imports of U.S. corn with as much as 1% Bt10 is under consideration.
But while the panel could decide the corn is safe, it could take weeks
for Japan to actually clear the corn. Meanwhile, U.S. exporters continue
to test shipments to Japan. To date, Japan has turned away or destroyed
10 shipments of U.S. feed corn.
Return to top
New Bills
A number of new bills have been introduced. Click
here to send a request for a copy of the text or more information about
the bill.
H.R.3696
Rep. Sherrod Brown (D-OH) introduced a bill to require prior FDA approval
of advertisements for prescription drugs and restricted medical devices.
H.R.3702
Rep. Marion Berry (D-AR) offered legislation to provide emergency assistance
to agricultural producers who have suffered losses as a result of
drought, Hurricane Katrina, and other natural disasters occurring
during 2005.
H.R.3705
A bill proposed by Rep. Jim Gerlach (R-PA) would prohibit “price
gouging” during national emergencies.
H.R.3707
Rep. Maurice Hinchey (D-NY) introduced legislation to provide the President
with authority to temporarily freeze the price of gasoline and other
refined products.
H.R.3710
Rep. Edward Markey (D-MA) offered a bill to require the Secretary of
the Interior to suspend federal oil and gas royalty relief for production
of oil and natural gas occurring in any period when average oil and
natural gas prices exceed certain amounts.
H.R.3712
Legislation introduced by Rep. Jim McDermott (D-WA) would establish
a program for gas stamps and impose a windfall profits tax on crude
oil, natural gas, and products thereof.
H.R.3722
Rep. Louise Slaughter (D-NY) proposed a bill to require the President
to allocate crude oil, residual fuel oil, and refined petroleum products
to deal with existing or imminent shortages and dislocations in the
national distribution system.
S.1636
Sen. Richard Durbin (D-IL) offered legislation to provide agricultural
disaster assistance to producers on a farm that incurred qualifying
crop or quality losses for the 2005 crop due to damaging weather
or related condition.
S.1640
A bill introduced by Sen. Bill Nelson (D-FL) would prohibit “price
gouging” related to certain goods and services in areas affected
by major disasters.
S.1643
Sen. Tom Harkin (D-IA) proposed a bill to provide the Secretary of
Agriculture with additional authority and funding to provide emergency
relief, in coordination with the Secretary of Homeland Security,
to victims of Hurricane Katrina and related conditions.
Return to top
Inside
Track is produced as a service to clients of Policy Directions,
Inc., a Washington, DC-based government relations/strategic government
communications firm founded in 1995, specializing in customized
advocacy on health care; food; biomedical research; biotechnology,
human drug, and medical device regulation; federal nutrition policy
and programs; and environmental policies and programs. For more
information about PDI, please e-mail info@poldir.com.
All material © 2005 Policy Directions.
|
