Capitol Hill Reports - House Leaders Schedule Final Vote on Debt Limit Hike, PAYGO Rules

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House Leaders Schedule Final Vote on Debt Limit Hike, PAYGO Rules
Sunday, January 31, 2010
2:15 PM

The House this week will vote on whether to send President Obama a $1.9 trillion increase in the federal debt limit along with statutory pay-as-you-go (PAYGO) language requiring Congress to fully offset the cost of new tax cuts or spending increases for "mandatory" programs such as Medicare and Social Security. The Senate approved the debt limit and PAYGO provisions (H.J. Res. 45) on Thursday as a substitute amendment to the House-passed proposal to raise the ceiling by $635 billion. While a $635 billion hike likely would have forced lawmakers to revisit the politically unpopular issue before the November elections, a $1.9 trillion increase is expected to provide the Treasury Department with enough borrowing authority to last through 2010.

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PAYGO requires that new legislation affecting mandatory spending or tax revenue be "budget neutral," or more specifically, that it not increase the deficit. The statutory PAYGO rule contained in H.J. Res. 45 would be enforced through sequestration -- or automatic, across-the-board spending cuts. Certain policies will be exempt from the PAYGO requirement, including an extension of 2001/2003 tax cuts for middle-income families, estate and alternative minimum tax relief, and legislation preventing cuts in Medicare payments to doctors.

"Statutory PAYGO is by no means an answer to all of our budget problems," said Senate Budget Chairman Kent Conrad (D-ND) following last week's vote on H.J. Res. 45. "But it does provide yet another hurdle to deter Congress from passing legislation that would worsen our fiscal outlook."

Other legislation scheduled for House floor debate this week include:

Architect of the Capitol Appointment Act (H.R. 2843) - Would amend federal law to require that the Architect of the Capitol be appointed jointly by the Speaker of the House, the President pro tempore of the Senate, the House and Senate majority and minority leaders, and the chair and ranking minority members of key oversight committees. Currently, the president appoints the Architect of the Capitol.
Social Security Disability Applicants' Access to Professional Representation Act (H.R. 4532) - Would make permanent the attorney fee withholding procedures under title II of the Social Security Act to title XVI of such Act, and would make permanent such procedures under titles II and XVI of such Act to qualified non-attorney representatives.
Cybersecurity Enhancement Act (H.R. 4061) - Would reauthorize several National Science Foundation (NSF) programs that aim to enhance cybersecurity. The bill also would require the National Institute of Standards and Technology (NIST) to establish a cybersecurity awareness program and implement standards for managing personal identifying information stored on computer systems. Finally, the bill would establish a task force to recommend actions to improve cybersecurity research and development.

House and Senate leaders this week are expected to continue talks on moving forward with a jobs package. Last month, the House passed the Jobs for Main Street Act, but the Senate has yet to act. The House-passed jobs bill calls for redirecting $75 billion from the Troubled Asset Relief Program (TARP) to fund infrastructure projects and help states support education and law enforcement jobs, among other spending initiatives. The legislation also proposes $79 billion in "emergency" funding that is not subject to PAYGO rules, including a six-month extension of unemployment benefits and the 65% COBRA health insurance subsidy for individuals who have lost their jobs. President Obama's proposals to provide tax incentives to small businesses that add jobs or raise employees' salaries could find their way into a final jobs bill in some form.

The Senate gavels in Monday afternoon and will consider the nomination of Patricia Smith to be Solicitor for the Department of Labor.