This Week on Capitol Hill

Albeit this week’s political news is dominated by Iraq and the State of the Union Address, things on Capitol Hill continue to chug along. Here’s a quick update on the proceedings.

President’s Economic Growth and Jobs Creation Package

Nearly three weeks after President Bush announced his economic growth and jobs creation proposal, Congressional leaders have not managed to come to an agreement on what the actual bill will look like. Senator Charles Grassley, Finance Committee Chairman, has reservations on the dividend cut portion of the President’s plan. Grassley stated that in its current form, the dividend proposal would fail to pass through the committee. Moreover, House Ways and Means Committee Chairman Bill Thomas is concerned with the dividend proposal as it may have downstream economic effects, but he has not ruled out moving the proposal through his committee.

Additionally, Speaker Hastert and Majority Leader Delay are discussing submitting stand-alone bills in lieu of one large proposal. This will force Democrats to make difficult votes on marriage penalty relief, acceleration of the 2001 tax cuts, and greater expensing for small businesses. However, if the House leadership decides to take this route, it will make passing the dividend portion of the plan that much more difficult, as Democrats have zeroed in and vowed to scuttle this provision. The dividend plan may need to be attached to another bill to ensure passage. Formal hearings on the plan are scheduled to take place in the coming two weeks.

Senate Passed $391 Billion Omnibus Spending Bill

Last week, the Senate finally agreed on a $391 billion omnibus appropriations bill that will fund the remaining 11 departmental appropriations. Senator Stevens, Chairman of the Appropriations Committee, led the caucus through the process and was able to cobble together Republicans to repel numerous Democratic spending amendments. However, new expenses were included in the bill.

The omnibus bill (H.J. 2) will now move to conference with the House. GOP leaders hope to have a final agreed on bill for the President’s signature before February 5. This mark may be too optimistic. To pay for new spending initiatives, the Senate agreed to an across the board cut in all appropriations. This maneuver will not sit well with House conferees who are opposed to deep fiscal cuts. Conferees will haggle for some time before they reach agreement on spending levels. More likely than not, a final bill will be ready for the President somewhere around President’s Day.

Also on the spending side, the House is working to pass another continuing resolution (CR) to keep the government running at 2002 levels. The current CR will expire on January 31, and the new resolution should fund the government to February 7. Congress will continue these stopgap measures until the omnibus spending bill is signed into law.

Confirmation Hearing for Treasury Secretary Nominee John Snow

On Tuesday, January 28, John Snow, former CSE board member and CSX Chairman and President, appeared before the Senate Finance Committee for a confirmation hearing. Although Snow faced some difficult questions, Senators’ concerns on the economy and the President’s recent stimulus proposal, the Treasury designate should be voted out of committee favorably. Snow should have the full Senate’s stamp of approval in the very near future. For now, Snow will continue to quietly roam Congress’ halls to drum up support for the President’s economic growth and jobs creation plan.

Senate Confirmation Hearings on the President’s Judicial Nominees

On Wednesday, January 29, the Senate Judiciary Committee will vote on three of President Bush’s judicial nominees. Appellate court nominees Deborah Cook, John Roberts Jr. and Jeffrey Sutton will all defend their records before committee members. Although Republicans now run the committee, all is not said and done for the President’s nominees. A fairly large coalition comprised of nearly three dozen liberal special interest groups are gunning to oppose the these nominees and individuals who will soon have hearings before the committee. In fact, liberal environmental groups have lobbied extensively against Mr. Sutton because of his previous work on green issues.

Additionally, on Friday, January 31, appellate court nominee Miguel Estrada will have his Judiciary Committee confirmation vote. Although some Democratic senators have harangued that Estrada is unqualified for the position, he should get out of the committee favorably.