NCFB National Legislative Update
Jake Parker
National Legislative Director
Friday, February 05, 2010
This week’s NCFB national legislative update covers three issues: 1) President Obama’s Fiscal Year 2011 budget, 2) the U.S. Senate negotiations of a “jobs” bill, and 3) the U.S. House’s passage of legislation that would raise the federal statutory debt limit.
1. Obama’s FY2011 Budget Would Re-open Farm Bill, Reduce Payment Limit
On Monday, President Obama released his administration’s budget blue print for the next fiscal year, which begins on Oct. 1st. Overall, the budget projects that the U.S. government will spend $3.8 trillion in FY2011. As you know, the President’s budget is merely a proposal, and Congress is ultimately responsible under the Constitution for appropriating funds to operate the government. Therefore, many of the proposals offered will not become law. However, some may be enacted so it’s worth mentioning of a few of the ones that could impact North Carolina farm families.
First, the President proposed significant increases in nutrition funding. Specifically, the budget proposal outlined $8.1 billion in discretionary funds (recall these are funds designated by Congress for specific programs) for the Womens, Infants and Childrens (WIC) Program, which is up $400 million from FY2010. It would also provide $10 billion for the reauthorization of the child nutrition program.
Second, the proposal would reduce the cap on direct payments for commodity programs by 25 percent and reduce the payment limit eligibility level by $250,000 (for both non-farm and farm income). Thus, the direct payment cap would drop from $40,000 to $30,000 and the payment limits for non-farm income would go from $500,000 to $250,000 and the payment limits for on-farm income would be reduced from $750,000 to $500,000. It would also cut crop insurance subsidies by $8 billion.
Third, the proposal would provide the Environmental Protection Agency (EPA) $10 billion to carry out its regulatory agenda. According to the budget summary, this funding amount is “a substantially higher amount than request under any previous administration.” Of course these funds will be used to implement the agency’s mandatory greenhouse gas reporting rule ($21 million) and its efforts to regulate carbon emissions under the Clean Air Act ($43 million).
Remember, all of these provisions (and many, many more) are proposals, and in most cases, they require congressional action to come to fruition. This is particularly important regarding the second set of proposals I’ve highlighted because enacting them would require Congress to re-open the Farm Bill. Farm Bureau strongly opposes re-opening the Farm Bill, and we will work closely with our congressional delegation to oppose the proposals to cut direct payments and reduce payment limits.
2. Negotiations Continue on Jobs Bill; Outlook for Introduction Unclear
The Senate spent most of its week working on executive branch nominations and developing the provisions of a Jobs bill (a.k.a. economic stimulus/tax relief bill). As of this afternoon, the Senate Democratic Leadership had not released formal information about what provisions would be included in the package. There is some talk about addressing the estate tax issue in the bill, but details are few at this point.
3. House Passes Statutory Debt Limit Bill; Goes to President for Signature
Yesterday, the House passed legislation by a narrow (and largely party line) vote that would increase the statutory debt limit by $1.9 trillion dollars. This action is the equivalent of increasing the credit limit on a personal credit card. Thus, it enables the federal government to borrow the money required to pay its foreign debt. The bill would also require Congress to adhere to statutory pay-as-you-go rules, which means that all proposals considered in Congress must be fully paid for with either appropriate budget cuts or tax increases. There are, of course, some exceptions to the rule for certain issues, including the estate tax fix. The bill now goes to the President for his signature.
One final note, a severe winter storm – no a blizzard – is going to hit Washington, DC this weekend. Depending on how much snow and ice they get (in addition to the five inches they got earlier this week), Congress may not come into session next week. As always, I’ll be sure to keep you informed.
That’s all for this week.
Jake