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The Week Ahead...
Sunday, March 1, 2009
1:30 PM

Congress will vet President Obama's fiscal year 2010 budget outline this week, as lawmakers invite cabinet officials up to Capitol Hill to discuss the White House's various proposals.

The House Budget Committee will kick things off on Tuesday when Office of Management and Budget Director Peter Orszag testifies before the panel to discuss the president's fiscal agenda.

Appearing on ABC's This Week this morning, Orszag defended OMB's economic growth assumptions following the Department of Commerce's recently announced 6.2 percent contraction in GDP during the fourth quarter of 2008.


"Our forecast is entirely in line with, for example, the Congressional Budget Office's once you include the effects of the recovery act," Orszag told This Week, adding that "a lot" of the administration's deficit reduction plan relies on the proposed $2 trillion in federal savings via spending cuts and tax hikes.

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Orszag acknowledged that the president's cap-and-trade proposal for greenhouse gas emissions would result in higher energy bills for households, but asserted that the average family would come out ahead when set against the backdrop of the overall budget.

"Let's also count the benefits that families get through Pell Grants, the benefits that they'll receive through constraining health care costs, the benefits that they get from weatherizing their homes, and so on," Orszag said. "All in, this budget makes the vast majority of American families much better off."

The OMB director also discussed earmark reform, saying that the White House is going to work with Congress on reducing their number and creating more transparency in the earmarking process, but did not provide specifics.

When asked about the thousands of earmarks contained in the omnibus appropriations bill (see below), Orszag responded that the legislation is "last year's business" and that the administration wants to "just move on."

 

On the Floor...

The Senate gavels in on Monday and will immediately turn to the FY 2009 omnibus appropriations package (H.R. 1105) for debate only. Work on amendments and roll call votes will not begin until Tuesday.

Despite Republican objections with the bill's earmarks and spending levels, House Democrats easily secured passage of the omnibus last week (without amendment).

Mum was the word on Friday with respect to Senate Republican Leader Mitch McConnell's (R-KY) amendment strategy on the omnibus, although he has indicated that his caucus would likely propose trimming the legislation's eight percent boost in spending over last year's topline level. In addition, look for earmark hawk Tom Coburn (R-OK) to target pet projects in the package.

Across the Capitol, the House is slated to complete consideration of the Helping Families Save Their Homes Act (H.R. 1106), legislation that would allow bankruptcy courts to modify the terms of certain mortgages on principal residences during bankruptcy proceedings. The bill would also permanently increase the amount of deposits insured by the FDIC and the National Credit Union Administration from $100,000 to $250,000, and modify other terms of both deposit insurance programs.

House leaders have allowed for the consideration of four floor amendments to H.R. 1106:

  • John Conyers (D-MI) - Would require courts to use FHA appraisal guidelines where the fair market value of a home is in dispute, among other provisions.

  • Tom Price (R-GA) - Would provide that if a homeowner who has had a mortgage modified in a bankruptcy proceeding sells the home at a profit, the lender can recapture the amount of principal lost in the modification.

  • Gary Peters (D-MI) - Would provide that, in the case of a debtor whose home is in foreclosure, the debtor could meet the pre-filing credit counseling requirement by receiving counseling either before filing or up to 30 days after filing.

  • Dina Titus (D-NV) - Would require a servicer that receives an incentive payment under the Hope for Homeowners program to notify all mortgagors under mortgages they service who are "at-risk homeowners" (as such term is defined by the Secretary), in a form and manner as shall be prescribed by the Secretary, that they may be eligible for the HOPE for Homeowners Program and how to obtain information regarding the program.

The chamber is also scheduled to take up the District of Columbia House Voting Rights Act (H.R. 157), a bill that would expand the number of House seats from 435 to 437 -- beginning in the 112th Congress -- to accommodate a representative from the District of Columbia, and one new at-large member that eventually will be assigned to a state based on the next congressional apportionment following the 2010 census.

The Senate passed a D.C. voting bill last week containing at least one noticeable difference with the House version -- the second seat would go to Utah. This and any other distinctions between the two versions must be reconciled in a conference following House passage of H.R. 157.




In Committee...

At presstime, the following cabinet officials were scheduled to testify this week on President Obama's FY 2010 budget:

  • OMB Director Peter Orszag - House Budget Committee on Tuesday at 10:00 AM in 210 Cannon; Senate Budget Committee on Wednesday at 9:30 AM in 608 Dirksen; and House Ways and Means Committee on Wednesday at 2:00 PM in 1100 Longworth.

  • Treasury Secretary Tim Geithner - House Ways & Means Committee on Tuesday at 12:30 PM in 1100 Longworth; Senate Finance Committee on Wednesday at 10:00 AM in 215 Dirksen; and House Budget Committee on Thursday at 10:00 AM in 210 Cannon.

© Copyright Capitol Hill Reports, Inc. (2009). No claim to original government works.