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National Journal's CongressDaily
Issue date: June 7, 2001 -=-=-=-=-=-=-=- TRADE Presidential Negotiating Authority A Must, Evans Says Top administration officials suggested today they are stepping up their push for presidential trade negotiating authority, rejecting suggestions by Finance Chairman Baucus that the bill may not move this year and showing flexibility on the controversial Jordan free trade agreement, which is backed by some key Democrats. Presidential trade negotiating authority is "number one on my list of issues [that] I am focusing on right now," Commerce Secretary Evans told a small group of reporters. Evans said he was surprised that Baucus had reportedly said the bill could "slip" into next year. Evans and a senior administration official also in on the session insisted that the bill must pass this year. They indicated not only was the trade negotiating authority needed to help move negotiations along with Chile and for a Free Trade Area of the Americas, but passage would help bolster U.S. credibility as it tries to launch a new trade round. Evans pledged he would aggressively argue for free trade to the American people and that President Bush would be touting it as well. Evans also said the point of this week's announcement that the United States would investigate limiting steel imports under section 201 of U.S. trade law was to see whether the steel industry needed help, but he noted that if the move made Democrats more comfortable backing trade negotiating authority, then all the better. The senior official indicated the administration was considering allowing the Jordan trade deal to maintain provisions that could lead to enforcement of its labor and environmental provisions with sanctions. The bill is supported by some Democrats who want a tougher line on these issues. Some business officials oppose the deal; others are not taking a position. "I think we are all coming around to the conclusion that ... one size does not fit all," the official said. "There's a lot of debate about whether Jordan's going to provide a way forward. I think it's a model. I don't think it is necessarily the model." But he added, "I think there's a number of different ways to approach the problem, and Jordan's one of them." And he compared Jordan's provisions to a portion of the North American Free Trade Agreement. - by Keith Koffler -=-=-=-=-=-=-=- TAXES Gephardt Promises Offsets For Any Further Tax Cuts House Minority Leader Gephardt pledged today that Democrats will resist any move to pay for additional tax cuts this year with Medicare and Social Security trust fund money, but echoed Senate Majority Leader Daschle's comments Wednesday that there would be offsets for any additional tax relief that might be on the way this year. At a news conference criticizing the $1.35 trillion tax cut that became law today, Gephardt and other Democratic leaders acknowledged that energy-related tax cuts and renewal of a group of tax credits that expire this year are just some of the items Congress may need to address. Noting that GOP appropriators have already signaled they need more money for FY02 appropriations bills, Gephardt said it will be hard for Democrats and Republicans to advocate additional spending or tax relief, but added: "We will have offsets. We hope the Republicans will do the same." For now, he could offer no specific ideas on what the offsets would be, but he left the door open to even looking at the newly enacted tax bill as a source of funds. Daschle also said it was likely that future Congresses may need to modify the 10-year bill President Bush signed today in order to keep the budget balanced, but played down the notion such revisions could happen as early as this year. Ways and Means ranking member Charles Rangel, D-N.Y., said the real impact of the tax cut is 10 years away, and claimed that [President] "George W. is saying, 'Not on my watch.'" The question of what tax measures could come next prompted a letter from Rangel to Ways and Means Chairman Thomas. Sources said Rangel learned this week that GOP leaders were considering trying to move a patients' rights bill quickly - even if it meant having the bill go right to the floor. There may have also been discussions about similarly speedy treatment for an energy- related tax break measure. But Rangel and Ways and Means Health Subcommittee ranking member Fortney (Pete) Stark, D-Calif., wrote Thomas today "to express our strong opposition to such an effort, and hope that you will join us in defending the jurisdiction and rights of the committee to act in this legislative arena.? you know, the Health Subcommittee already has had one hearing this year on this important topic." Meanwhile, GOP leaders are apparently eyeing a number of other priorities. House Republican Conference Chairman J.C. Watts of Oklahoma renewed his call for expanding tax deductions for charitable contributions in his statement greeting Bush's signature of the tax cut bill. Majority Leader Armey has said more tax relief should be on the way, but he acknowledged it could be modest. - by Stephen Norton -=-=-=-=-=-=-=- TAXES Bush Signs $1.35 Trillion, 10-Year Tax Cut Measure Surrounded in the ornate East Room by a crowd comprised mostly of elite Republican lawmakers, President Bush today signed into law the $1.35 trillion, 10-year tax relief package. The legislation, which largely takes its cue from Bush's signature campaign proposal, was hailed by Bush as a historic achievement ranking with tax reduction bills signed by former Presidents Kennedy and Reagan. Bush praised the role of some of the handful of Democrats on hand - including Senate Finance Chairman Baucus and Sens. John Breaux of Louisiana and Zell Miller of Georgia. "Tax relief is the first achievement produced by the new tone in Washington," Bush said. Calling this "an era of steady cooperation," Bush predicted, "more achievements are ahead." But few Democrats showed up to witness this particular moment of the new era. Among them were Sens. Max Cleland of Georgia, Robert Torricelli of New Jersey and Reps. Ralph Hall of Texas, Ken Lucas of Kentucky and Bud Cramer of Alabama. Republican leaders such as House Speaker Hastert, Senate Minority Leader Lott, House Majority Leader Armey, Senate Minority Whip Nickles, House Majority Whip DeLay, House Ways and Means Chairman Thomas and Senate Finance ranking member Charles Grassley, R-Iowa, were more typical of those attending the bill-signing ceremony. Senior Senate Republicans declared afterward that one of their top priorities this summer will be to make the tax cut, which expires in a decade, permanent. Sen. Phil Gramm of Texas vowed to aggressively move the legislation as an amendment. "The first thing we [have] got to do is make this [tax cut] permanent," Gramm told CongressDaily. "I intend to offer it at least a dozen times." Nickles said Republicans will "be successful in either extending the rate reduction or extending the zero bracket for estate taxes, I think," but he acknowledged, "It's going to be a challenge." Nickles added that he still will try to reduce the capital gains tax from 20 percent to 15 percent, to provide tax breaks for unemployed and those lacking employer assistance to buy health insurance, and add tax cuts to the minimum wage bill. Other tax cut vehicles, he said, could be the "Patients' Bill of Rights" and the tax extenders bill. On managed care reform, Nickles said, "there are some discussions going on, but I wouldn't try to claim any optimism" about a deal. - by Keith Koffler -=-=-=-=-=-=-=- HEALTH Senate Readies For Debate On Patients' Rights Proposal With the Senate still mired in debate over the education bill, behind-the-scenes discussions are picking up on what is expected to be the chamber's next order of business - debate on a managed care "Patients' Bill of Rights." HHS Secretary Thompson was on Capitol Hill today to meet separately with Senate Democratic and GOP leaders to discuss a potential compromise on an issue whose differences have thus far proved unbridgeable. President Bush earlier this spring vowed to veto the bill Democrats intend to bring to the floor - sponsored by Senate Commerce ranking member John McCain, R-Ariz., Sen. John Edwards, D-N.C., and Health, Education, Labor and Pensions Chairman Kennedy. And Bush has endorsed a competing bill sponsored by Sens. Bill Frist, R-Tenn., John Breaux, D-La., and James Jeffords, I-Vt. At the same time, Rep. Charlie Norwood, R-Ga., who helped write the McCain-Edwards- Kennedy bill - but deferred sponsorship while he sought to negotiate with the White House - is continuing his efforts, but signaled he will not wait much longer. After one of his meetings today, Thompson tried to strike a conciliatory tone. "We hope we're able to reach an agreement," he said, but added that "if the president feels strongly and this bill doesn't reach his principles, he will" veto it. Meanwhile, backers of the Frist-Breaux-Jeffords approach said new estimates from CBO show that their bill should represent the final compromise. According to CBO, the Frist-Breaux-Jeffords bill would, when fully phased in, raise health insurance premiums by an estimated 2.9 percent. That compares to 4.2 percent for the McCain-Edwards-Kennedy bill, and 2 percent for the GOP-sponsored bill that passed the Senate in 1999. "Today's CBO report illustrates what we've said all along, that our bill presents a true compromise on the 'Patients' Bill of Rights,'" said Frist. But the veto question appears the key to the upcoming debate. Backers of the McCain-Edwards-Kennedy measure insist that the president will sign virtually any patients' rights bill Congress manages to pass. That prospect has frightened business and insurance lobbyists, who vehemently oppose provisions that would allow broad new rights to sue health plans in state and federal court. Administration officials Wednesday denied widespread speculation that Bush would soon issue a formal statement again threatening to veto the bill, but also left what one source called "wiggle room" if the Senate makes some, as yet undecided- upon, changes. While opponents of the McCain-Edwards-Kennedy measure fear they lack the votes to defeat or even substantially change the measure - it appears to have virtually unanimous support among Democrats - save Breaux - as well as at least a handful of Republicans, including Sens. Lincoln Chafee of Rhode Island and Arlen Specter of Pennsylvania - opponents are more confident about their ability to add to the measure a package of tax- related health insurance "access" provisions. Some of those, including a broad expansion of Medical Savings Accounts, could be controversial. - by Julie Rovner and April Fulton -=-=-=-=-=-=-=- SENATE LEADERSHIP Craig Predicts Senate Organizational Deal By Next Week Senate Republican and Democratic leaders are nearing agreement on a new organizational resolution for the Senate, although key senators predicted the issue would not be resolved until next week. Sen. Phil Gramm, R-Texas, said he hoped negotiators would be able to complete an agreement today. Sen. Pete Domenici, R- N.M., said Republicans were "purifying" their own proposals to decide how many points to include. Gramm and Domenici are part of a five-member GOP task force assigned by Minority Leader Lott to negotiate a new resolution with Majority Leader Daschle. Daschle said today negotiations were "going well," but declined to give details. The group is expected to meet again with Daschle today. But before any deal is final, Republicans will run any agreement that is reached by the entire GOP Conference - a requirement that led Republican Policy Committee Chairman Larry Craig of Idaho to predict a deal would not be finalized until mid-week. Republicans have backed down on their requirement that any new resolution include a mechanism to move presidential nominations to the floor. Instead, said a GOP aide, negotiators will assemble a memorandum or some sort of written statement, or a colloquy for leaders to deliver on the floor. Democrats, meanwhile, have given in to a GOP demand that committees be expanded to reflect a one-seat Democratic advantage, rather than bumping Republicans from panels. Said Commerce Chairman Hollings, "I'm not comfortable with it, but that's what it's going to be." Hollings' panel will grow to 23 members, a size he said will make it hard to hold efficient hearings. "You get through opening statements and, good God, the day is over," he said. - by Geoff Earle -=-=-=-=-=-=-=- GOVERNMENT OPERATIONS Lieberman To Probe Decisions On Energy, Environment Senate Governmental Affairs Chairman Lieberman today promised not to use his new chairmanship to "practice the politics of personal attacks and destruction," but said he will investigate the high cost of energy, as well as ask the Bush administration to explain its rescission of federal environmental standards. "The current high price of energy and shortages in energy supply in some parts of our country . will be the committee's immediate priority," Lieberman said in an agenda session with reporters. Lieberman has scheduled a hearing next Wednesday to look at the deregulation of the electricity and natural gas industries and a June 20 hearing to consider whether the Federal Energy Regulatory Commission has done enough to keep electricity prices reasonable. "From all that I have seen . I think FERC has the authority to act and should have acted already," Lieberman said. A cosponsor of price cap legislation proposed by Sens. Dianne Feinstein, D- Calif., and Gordon Smith, R-Ore., Lieberman said he would not ordinarily favor price controls, but said the lack of competition in the Western energy market warrants them. Lieberman said he also wanted to know how Bush administration officials decided so quickly to roll back federal standards regulating arsenic, forest roadbuilding and mining waste. "Who did you talk to?" Lieberman asked rhetorically of the administration's rapid rollback of federal policy long in the making. He also said he would "put the breaks on any additional plans the White House has to roll back environmental standards." Lieberman said he had a good relationship with ranking member Fred Thompson, R-Tenn., and said they would work together on issues such as reducing government waste and abuse, electronic government initiatives and attracting new and qualified federal personnel. As the Democratic vice presidential nominee in last year's disputed election, Lieberman was asked to clarify his vow not to use his committee for political retribution. "The difference between oversight and overkill is in the eye of the beholder, but you and I will know it once we see it," he said. When asked specifically about whether he would investigate Vice President Cheney's use of his official residence at the U.S. Naval Observatory for a political event, Lieberman said definitively no, but compared it to former President Clinton's White House coffees. "It did make me laugh because the event and the explanation of the event sounded very similar to what Republicans said" about the coffees, Lieberman said. - by Mark Wegner -=-=-=-=-=-=-=- ENVIRONMENT Interior Approps Panel Restores Bush Energy, Land Cuts The House Interior Appropriations Subcommittee unanimously approved an $18.9 billion spending bill today that restores President Bush's proposed cuts in energy research and increases funding for energy conservation and land preservation initiatives, National Journal News Service reported. The measure provides $1.8 billion for energy programs, an increase of $294 million over the administration's request. The panel included $311 million for weatherization and state energy grants, which is an increase of $120 million over last year's level, and includes $940 million for overall energy conservation. Calling the restoration of energy conservation and research funding "crucial," given the nation's electricity woes, subcommittee ranking member Norman Dicks, D-Wash., hailed the panel's "very bipartisan effort" and dedication to conservation spending. "This is a good example of how we can cooperate and work on a bipartisan basis," he said. In addition to the increased energy funding, the subcommittee also agreed to provide $1.32 billion for the widely heralded land conservation initiative launched last year as a compromise to the controversial Conservation and Reinvestment Act. Although significantly smaller than CARA, the conservation initiative nonetheless represents a doubling of federal spending on a variety of resource conservation programs. The bill increases funding by $121 million over last year's level and $64 million over the administration's request. The program includes $100 million for state wildlife grants, $45 million for wetlands conservation, $47 million for historic preservation and $60 million in conservation incentives for private landowners. House Appropriations ranking member David Obey, D-Wis., said the increase in conservation funding keeps a commitment the Congress made to the compromise program last year when appropriators balked at CARA's 15-year budget commitment to land programs. "That should send a message to the administration that they ought to recognize a good deal when they see it," Obey said. Appropriations Chairman Young said he expected the full committee to mark up the Interior spending bill next Wednesday. - by Cyril Zaneski -=-=-=-=-=-=-=- EDUCATION GOP Criticizes Plan To Restrict 'Straight A's' Initiative Republicans today said an amendment to the reauthorization of the Elementary and Secondary Education Act exempting one category of school funding from a trial program known as "Straight A's" would gut a major component of the president's education bill. The amendment to exempt 21st Century learning centers from the "Straight A's" pilot program would remove almost half of the available money and would discourage states from participating, Sen. Bill Frist, R-Tenn., said. If the amendment passes, it would "certainly be a blow to the bipartisan coalition that has worked on this bill," said Sen. Susan Collins, R-Maine. The "Straight A's" program was taken out of the bill on the House side, so Frist said it was essential the provision stay in the Senate bill when the bills go to conference. Sen. Christopher Dodd, D-Conn., who is sponsoring the amendment, said he still plans to move forward on it. Meanwhile, the Senate set aside another Dodd amendment today after Republicans threatened a filibuster, delaying a potentially explosive vote which Republicans said goes to the heart of whether Congress wants federal or local control over schools. The amendment would require states to "achieve comparability of education opportunities" among their schools, and was watered down from earlier, more specific language. "This is not radical, this is common sense," Dodd said during floor debate. Senate Health, Education, Labor and Pensions Chairman Kennedy said the amendment does not interfere with the president's initiative and encourages states to provide "additional focus and attention on poor and underprivileged children." But Collins said it was an "attempt by the federal government to set national standards." - by April Fulton -=-=-=-=-=-=-=- SCHEDULE Senate To Work Through Amendments On Education Next Week The Senate next week will work through amendments to the Elementary and Secondary Education Act reauthorization bill. Majority Leader Daschle said votes are expected Monday, and that he intends to finish the bill by the end of the week. The House will return next week Tuesday for a series of suspension votes after 6 p.m. On Wednesday and Thursday, the House is scheduled to take up the Sudan Peace Act and the SEC fees reduction bill, although the latter bill has been postponed several times. No House votes are expected Friday. -=-=-=-=-=-=-=- POLITICS Jackson Meets With Lawmakers To Discuss Electoral Reform, Other Issues Rev. Jesse Jackson was on Capitol Hill today meeting with Senate Majority Leader Daschle, and Sens. Christopher Dodd, D- Conn., and Russell Feingold, D-Wis., to discuss electoral reform and other issues, including judicial nominations. "I'm sure hearings on electoral reform will begin this summer," Jackson said, citing a report to be formally released by the Civil Rights Commission Friday showing that minority voters in Florida were overwhelmingly "disenfranchised." A draft of that proposed report leaked out earlier this week, prompting criticism from Republicans that it was inspired by partisanship. The commission consists of four Democrats, three independents and one Republican. Jackson said, "We must even the playing field for certain voters." Jackson also said he was taking another trip to South Africa to deal with the spread of AIDS in that country. -=-=-=-=-=-=-=- POLITICS Stenholm Expects Mark Up Of Emergency Aid To Farmers Next Week House Agriculture ranking member Charles Stenholm, D-Texas, told reporters today he expects the House Agriculture Committee to mark up emergency aid to farmers for this crop year next week. Stenholm also said the amount of aid for this year might be higher than $5.5 billion in the FY02 budget resolution. That money would come from a $79 billion, multi-year pool of funds created to increase agricultural spending. -=-=-=-=-=-=-=- POLITICS Daschle PAC To Hold Annual Gala DASHPAC, the leadership PAC of newly minted Senate Majority Leader Daschle, could not have picked a better time - fundraising wise - to schedule its annual Washington bash than this evening. Sources said the DASHPAC gala, which is being held at the 701 restaurant, is expected to pull in over $1 million and possibly break the PAC's previous record. Tickets to tonight's gala are going for $1,000 per individual, $5,000 per PAC or $10,000 for corporate donors: the PAC has a $10,000 limit for contributors. On K Street, lots of heavy lifting has been done by several blue chip lobbyists, including Joel Jankowsky of Akin, Gump, Strauss, Hauer & Feld; former Daschle staffer Rita Lewis of The Washington Group; and former Texas Gov. Ann Richards of Verner, Liipfert, Bernhand, McPherson & Hand. -=-=-=-=-=-=-=- POLITICS Poll Finds Smith, Shaheen Tied A new American Research Group poll shows Sen. Bob Smith, R- N.H., in a statistical tie with Democratic Gov. Jeanne Shaheen, but it also shows GOP Rep. John Sununu leading Shaheen by double digits in a trial heat of the 2002 election. The poll, conducted last Friday through Monday of 558 registered voters with a 4.26 point error margin, shows Smith leading Shaheen 42-41 percent, with 17 percent undecided. But Sununu leads Shaheen 51-35 percent, with 14 percent undecided. Sununu has been contemplating a challenge to Smith, who briefly left the Republican Party in 1999 during his unsuccessful presidential campaign, and the Manchester Union-Leader reported today that many state Republicans believe that Sununu has passed the point of no return and will indeed challenge Smith in the GOP primary. However, a recent invitation Sununu sent out for a June 10 fundraiser headlined by former President Bush talks about a House re- election campaign. In the letter, which refers to his 2000 Democratic challenger Martha Fuller Clark, Sununu wrote: "We had a hard fought campaign last year. ... in less than six months time, my opponent spent over $1 million ... already, she has announced her candidacy for 2002. Our campaign next year will be at least as tough, if not tougher." Sununu can transfer the money to a Senate campaign if he decides to enter that race. -=-=-=-=-=-=-=- TRANSPORTATION Airlines Offer More Voluntary Commitments To Improve Customer Services In an apparent effort to stave off potentially onerous passengers' rights legislation, the airlines announced today they are beefing up their voluntary commitments to improve customer services and also are making those commitments legally enforceable by including them in their customer contracts. House Transportation and Infrastructure Chairman Young and Transportation and Infrastructure Aviation Subcommittee Chairman John Mica, R-Fla., applauded the industry's latest commitment, saying airlines should not bear sole blame for air travel delays. Citing weather difficulties as the leading cause of delay, Young and Mica also singled out local opposition to runway construction as a factor in air congestion and delay. Fairly narrow passengers' rights legislation pending in the Senate would strengthen the government's hand in holding the airline industry to better standards and was expected to come to the floor for a vote in that chamber. Among the airlines' latest commitments, are pledges to offer the lowest fare available on the telephone reservation system, to notify passengers of known delays, cancellations and diversions and to meet passengers "essential needs" during long on-aircraft delays. -=-=-=-=-=-=-=- AGRICULTURE Veneman Defends Her Undersecretary Choice Agriculture Secretary Veneman defended a nominee for a top position at her department against allegations he was insensitive to minorities and favored corporate farm interests, the Associated Press reported. Veneman, speaking to reporters after a ceremony honoring former Agriculture Secretary Glickman, called Thomas Dorr, an Iowa farmer picked to be undersecretary for rural development, a "visionary thinker." Dorr's nomination has been criticized by groups representing minority farmers and small- scale farming interests. At Iowa State University in 1999, Dorr observed that an economically prosperous area of his state lacked ethnic and religious diversity. He also has suggested the creation of giant farming operations in which individual farmers would work together. The Senate Agriculture Committee has not scheduled a hearing on Dorr's nomination. Senate Agriculture Chairman Harkin has not taken a position on Dorr. In a recent letter to the committee, members of the Congressional Black Caucus said they were shocked that a USDA nominee "would express the belief that ethnic diversity is an impediment to economic growth." -=-=-=-=-=-=-=- THE FINAL WORD "We both have a clear understanding of important issues - like endangered species. After all, he's a Democrat from Kansas and I'm a Republican from California." - Agriculture Secretary Veneman, speaking today at the formal unveiling of the official portrait of former Agriculture Secretary Glickman. -=-=-=-=-=-=-=- CongressDaily is published daily, Monday through Friday, by National Journal Group Inc. Copyright 2001 by National Journal Inc., 1501 M St., NW, #300, Washington, D.C. 20005. Retransmission, redistribution or reproduction of CongressDaily is prohibited without the express, written permission of National Journal Group Inc. To read CongressDaily on the Web, contact 1-800-207-8001 or njcirc@njdc.com for your username and password. President--John Fox Sullivan, 202-739-8468 (jsullivan@njdc.com) Publisher--Steve Hull, 202-739-8475 (shull@njdc.com) Editor--Louis Peck, 202-739-8481 (lpeck@njdc.com) Executive Editor--Keith White Senior Managing Editor/A.M. Edition--Robert Ourlian Senior Editor--Charlie Mitchell Associate Editor--Greta Wodele Assistant Editor--Chuck Jordan Reporters--Pamela Barnett, Lisa Caruso, Geoff Earle, Keith Koffler, Brody Mullins, Stephen J. Norton, Mark Wegner Special Correspondents--Chris Cillizza, Jerry Hagstrom, Julie Rovner Subscription price: $2,497 a year. Subscription and e-mail transmission information: 202-266-7230 (cngdaily@njdc.com). -=-=-=-=-=-=-=- CDENDIT
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