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National Journal's CongressDaily
Issue date: October 25, 2001 -=-=-=-=-=-=-=- ECONOMY Senate Republicans To Embrace Bush's Stimulus Plan Senate Republicans will step into the economic stimulus debate by backing President Bush's proposals but bypassing the plan authored by House Republicans as well as proposals by Senate Finance Chairman Baucus and other Senate Democrats. Sources said ideas Bush outlined three weeks ago could be put into legislative language as early as this week. These include corporate alternative minimum tax relief, accelerated income tax rate cuts, rebates for low-to middle-income workers, expanded health and unemployment benefits and more generous write offs for business investments. Senate GOP sources said the meeting of Senate Republican leadership and administration officials was called so Finance Committee Republicans could clarify the details of the president's proposal in order to produce legislation the entire GOP Conference can rally around. "What is most likely to unite Senate Republicans," one source said, "is something akin to what the president proposed. But ultimately we've got to write something here." After meeting in Minority Leader Lott's office with key GOP ranking members, Treasury Secretary O'Neill and White House Director of Legislative Affairs Nicholas Calio, Sen. Orrin Hatch, R-Utah, said, "Show me that any one of the four points the president recommended would not stimulate the economy and show me how anything the Democrats are recommending would stimulate the economy." Hatch contended that the spending many Democrats want to see would be "destimulative." Senate Appropriations Chairman Byrd and Majority Whip Reid have proposed a $20 billion package of homeland security and infrastructure spending that could serve as the spending component of their stimulus bill. Sen. Phil Gramm, R-Texas, predicted the public would reject the "piracy" inherent in Democratic spending plans, in contrast to Bush's simple call for a limited economic boost. Gramm said Bush already has compromised by allowing up to 25 percent of the stimulus to be allotted to spending. "That was for the Democrats just for being there. That is the price they are going to charge," Gramm said. But he and Hatch said the time had come to draw a line. "There has got to be some give on their part too," Hatch said. Senate Finance ranking member Charles Grassley, R-Iowa, added that Bush's agreement to accept an additional rebate was also a concession to Democrats. Grassley said his GOP colleagues still want him to work with Majority Leader Daschle in crafting a bipartisan agreement, but time is of the essence, according to a letter by IRS Commissioner Charles Rossotti to Grassley. Rossotti said Congress would need to act by Nov. 1 to get additional rebate checks out and make other adjustments to tax documents by the end of the year. - by Stephen Norton and Lisa Caruso -=-=-=-=-=-=-=- TRANSPORTATION House To Vote On Aviation Security Measure Next Week Bolstered by a letter of support that President Bush sent to Speaker Hastert today, House GOP leaders scheduled a vote on their version of an aviation security bill for next Wednesday. "This is later than we should have been to get this bill on the floor," said Majority Leader Armey, adding that it is a "shame a fight has to be made." The major point of dissent is over whether to make most airport security officials federal workers, as the Senate bill does, or merely increase government standards and supervision while letting the president decide whether to federalize workers, as Bush and House Republicans prefer. In the letter, Bush criticized proposals to federalize workers but stopped short of saying he would veto the bill, saying, "Such an inflexible, one-size-fits all requirement fails to permit security tailored to the very different circumstances that exist at airports across the country." Transportation Secretary Mineta, appearing with GOP leaders to endorse their approach, said today there is "nothing wrong with a low bid, as long as you have high standards." When asked why a vote has taken so long, since the Senate passed its bill 100-0 two weeks ago, House Republicans blamed Democrats. "We're sorry we haven't been able to reach [an] agreement with the Democrats on it and we're sorry the issue has to be politicized," said Transportation and Infrastructure Aviation Subcommittee Chairman John Mica, R-Fla., who wrote the House GOP bill with Transportation and Infrastructure Chairman Young. But Majority Whip DeLay told reporters earlier this month the House would not schedule a vote on the bill until it had the votes. House Democrats have proposed a bill of their own that would federalize workers, and say the U.S. public supports the idea. "We're hopeful it will come up next week . and we'll have a good, sensible alternative," Minority Leader Gephardt said. Gephardt said he expects Democrats will have an opportunity to offer their alternative. "The speaker has been very positive and encouraging," he said. "My belief is that if we sent [Bush] a reasonable bill that has bipartisan support that he would sign the bill." Meanwhile, Transportation Department officials are attempting to reassure the public that they are taking steps to improve security in the interim, even as news organizations reported today that a man accidentally took a gun on a plane in his briefcase. FAA Administrator Jane Garvey told the U.S. Conference of Mayors - which supports full federalization of airport security - that the administration is considering issuing "smart cards" to identify passengers who do not pose a risk, has deployed more sky marshals, and has freed up some funds airports could use for security operations temporarily that would ordinarily go toward airport infrastructure improvements. The government also intends to be able to screen all luggage and cargo by 2004, Garvey said, which some mayors said was not soon enough. Garvey said she was "confident in the final analysis that all sides will be willing to compromise." - by April Fulton and Mark Wegner -=-=-=-=-=-=-=- OUTLOOK Appropriations To Dominate Next Week's Floor Schedule After the Senate votes on anti-terrorism legislation today, it is scheduled to take up the FY02 Agriculture appropriations bill. Senate Majority Leader Daschle said he would focus on appropriations bills next week, with the District of Columbia and Labor-HHS appropriations bills slated to come up next. He said he then would devote more attention to an economic stimulus package. Daschle said he and other key Democrats have not decided whether to move stimulus items in one bill or more than one bill. He said Appropriations Chairman Byrd had assembled an "excellent" package of spending proposals that he said met his key criteria of producing an immediate stimulative effect. Meanwhile, the House will reconvene next week Tuesday with votes on suspension bills scheduled for after 6 p.m. A spokesman for House Majority Leader Armey said the House is scheduled to take up airline security legislation Wednesday (see related story above.). House members also face votes next week on the FY02 Defense appropriations bill and conference reports for the FY02 Treasury-Postal and Legislative Branch appropriations bills, in addition to any other available conference reports for spending bills. No Friday votes next week are expected. Technicians today continued to sweep congressional office buildings for anthrax after a location near the freight elevator on the Hart Senate Office Building's first floor testified positive for anthrax exposure. Daschle called the new discovery "troubling" because it is not known what the connection is between Daschle's office suite on the fifth and sixth floors - where an anthrax-tainted letter was received last week - and the freight elevator. One possibility is that the elevator was used to deliver the contaminated letter to Daschle's office. Nevertheless, Daschle emphasized that only a "trace" of anthrax was discovered at the elevator, and said further cleanup efforts could allow more facilities to open soon. Technicians undertook remediation efforts using a foam to eliminate anthrax from the Senate Dirksen building mailroom Wednesday. Daschle said that if tests on the building turn out negative, it would be open Friday. He also said efforts were under way to seal off the 13 offices in the Hart building's southeast quadrant to allow senators and staff in other areas of the Hart building to return to work. "I am very confident that we will be able to seal it in a way that will provide us complete confidence that we can access the rest of the building without any hazardous exposure," he said. Daschle also vowed that once a new system is set up, "there will not be one piece of mail that will come on the Hill without an adequate test." He noted that senators receive thousands of pieces of mail each week, and that it is a vital way to communicate with constituents. Daschle was guarded in his response to reports that the type of anthrax used in the attack in his office is highly sophisticated, and likely derives from facilities either in the United States, the former Soviet Union, or Iraq. "I've been told that this is a common variety of anthrax," he said, adding that it may be a little more "aerosolable" than usual. Daschle emphasized that the anthrax used responds to treatment with antibiotics. Daschle said he would try to strike a balance in the response to current or future attacks, saying it is neither healthy nor helpful to "exacerbate the paranoia or fear." He said a group of government health officials had responded prudently to the incident. "Have they done it perfectly? The answer, of course, is no," he said. - by Geoff Earle and Mark Wegner -=-=-=-=-=-=-=- HEALTH House Democrats Want $7 Billion To Fight Bioterrorism House Democrats today unveiled a $7 billion package to fight bioterrorism, including far more funding for state and local preparedness than the Bush administration has proposed. "Cities, towns and counties on the front line in this fight should have the resources to reduce the threat from biological terror," said Minority Leader Gephardt, who was flanked by more than a dozen members of the Democratic Homeland Security Task Force that drafted the measure, which was led by House Democratic Caucus Vice Chairman Robert Menendez of New Jersey. The bill would provide at least $2 billion directly to state and local agencies to beef up their ability to plan for and respond to potential attacks, compared to $175 million proposed by the administration. The Democrats' bill would also authorize funds to boost the amount of drugs and vaccines in the national pharmaceutical stockpile, to increase protections for the nation's food and water supply, and to increase the ability of the military and intelligence community to address bioterrorism. Gephardt said he hoped the measure would become a bipartisan one - Democrats talked about it in general terms with Bush administration Homeland Security Director Tom Ridge Wednesday, he said, but added, "We thought the first thing to do was to get our own heads together." Meanwhile, negotiations are continuing in the Senate Health, Education, Labor and Pensions Committee over a bipartisan bioterrorism bill. A spokesman for Health, Education, Labor and Pensions Chairman Kennedy said he has reduced his funding proposal from $10 billion to "around $6 billion," but that remains too high for most Republicans. "The number is still the big sticking point," said an aide to HELP ranking member Judd Gregg, R-N.H. Gregg's spokeswoman said the policy part of the measure is starting to come together, and that it will consist of three major sections. One will address food safety issues, a second will provide more authority for HHS, and the last will provide new incentives for drug companies to develop drugs and vaccines to combat bioterrorism agents. Also, Senate Majority Leader Daschle said at his news conference today he would support a bioterrorism bill that focused on three elements - creating as many new vaccines as possible, improving the government's ability to respond to bioterrorism threats and the agricultural "aspects" of bioterrorism. A Daschle aide later said Daschle's agro-terrorism priorities are increasing food inspection, increasing security at USDA labs and other facilities and improving the government's ability to trace tainted food back to the source of contamination. The aide said Daschle is working with Sen. Pat Roberts, R-Kan., to incorporate elements of the agro-terrorism bill that Roberts has introduced with legislation being developed by Kennedy and Sens. Bill Frist, R-Tenn., Hillary Rodham Clinton, D-N.Y., and Richard Durbin, D-Ill. Durbin this afternoon said he intends to offer an amendment to the Kennedy-Frist bill that would require food manufacturers to register with the FDA, give the FDA authority to inspect food plant companies' records, grant USDA and FDA mandatory recall authority, and give the FDA the authority to detain contaminated food, a power USDA already has. Durbin would also place further controls on imported foods and require imported foods to be labeled to indicate country of origin. - by Julie Rovner and Jerry Hagstrom -=-=-=-=-=-=-=- FINANCE Insurance Industry Pleads For A Reinsurance 'Backstop' Private sector and financial industry officials came on bended knee before the Senate Banking Committee today, making a case for the creation of a "two to three year" federal terrorism reinsurance "backstop," which they described as being pivotal to preventing a disastrous ripple effect in the U.S. economy. Several committee members in turn took pains to compliment the insurance industry for stepping up to the plate and agreeing to promptly paying claims associated with the Sept. 11 terrorist attacks. Today's hearing marked the second day of testimony taken by the Senate Banking panel, which is attempting to reach consensus on a short-term mechanism that will help the insurance industry and its commercial clients transition to the realities of property and casualty coverage in the post-Sept. 11 environment. Senate Banking ranking member Phil Gramm, R-Texas, who drew considerable attention at Wednesday's hearing by criticizing aspects both of an industry and White House plan as not being sufficiently market-oriented, made remarks today which were less rhetorically combative. "I don't expect any insurance company to put its capital at risk on a proposition that has no hope of being a success," Gramm said. He and other senators, including Sen. Christopher Dodd, D-Conn., warmly praised the insurance industry for their response to the Sept. 11 attacks. As for the mechanics of the backstop, Gramm said he was leaning towards a modified version of the White House's three-year proposal. However, Gramm said he would prefer a two-year program that effectively started with the terms contained in the second year of the White House plan. Gramm also suggested that the mechanism kick in for acts of terrorism as defined "not by the media," but by the attorney general, Treasury secretary and Federal Reserve chairman. Further, Gramm emphasized his desire to ensure that the federal government is not the "first dollar payer." Overall, Gramm said the White House plan was a "good start," and proposed that with time running so short in the session, Congress use it as the base. Insurance, reinsurance and banking industry officials said they preferred two to three years, given the multi-year nature of most large-scale construction projects. Some of the bluntest testimony was delivered by Thomas Donohue, president and CEO of the U.S. Chamber of Commerce. Donohue said federal assistance for the industry was inevitable to counter the economic impact associated with the lack of or prohibitively priced insurance coverage. He quipped, "You can cover me now or you can cover me later." Donohue emphasized his desire to see a mechanism that "keeps [the private sector] up to their necks without letting them go under." Leslie (Bud) Baker, chairman of Wachovia Corp., one of the five largest commercial real estate lenders, offered a banker's perspective. "Only the federal government can provide the insurance industry the breathing room it needs," he said. Robert Vagley of the American Insurance Association emphasized: "It's not a bail out.The primary beneficiaries of such legislation are our customers and the U.S. economy." Baker said: "No insurance, no lending, no lending, no economy. We need your help." - by Pamela Barnett -=-=-=-=-=-=-=- APPROPRIATIONS House Unanimously Passes CR To Last Through Nov. 16 The House today unanimously approved its fourth FY02 continuing resolution, 419-0, to extend federal government funding at FY01 levels through Nov. 16, when Congress is scheduled to recess for the weeklong Thanksgiving break. Although just two FY02 spending bills - Interior and Military Construction - have been conferenced and sent to the president, a House Appropriations Committee spokesman said the panel is optimistic that the remaining 11 could be finalized before this continuing resolution runs out. A conference committee on the Treasury- Postal spending bill is scheduled to meet this afternoon while the Energy and Water appropriations conference is for next Tuesday; the VA-HUD spending bill conference also expected sometime next week. The House has one more FY02 appropriations bill yet to approve - the $317.5 billion Defense spending bill that was reported out of committee Wednesday. But it will not be filed until sometime next week so the committee can write a separate title that Appropriations Chairman Young hopes to attach to the Defense spending bill which would allocate the second $20 billion in emergency supplemental funds Congress appropriated last month in response to the Sept. 11 terrorist attacks. While Appropriations ranking member David Obey, D-Wis., has called for adding tens of billions more to the bill to further fund defense and homeland security needs, Young remained noncommittal about whether he agrees with Obey that more money should be appropriated now. "Whatever's needed, whenever it's needed, will be provided," Young told reporters. He noted that, at present, the president and GOP leaders are not inclined to spend more than the $40 billion already appropriated for the remainder of this session of Congress - although most have acknowledged the president will likely have to request another FY02 supplemental early next year. Also today, Senate Budget ranking member Pete Domenici, R- N.M., introduced legislation to amend the FY02 budget resolution and budget law to raise the statutory cap on FY02 discretionary spending to $686 billion in budget authority and $707 billion in outlays. The legislation, which is needed to avert a 60-vote point of order against legislation that exceeds the cap, brings the FY02 spending ceiling in line with the figure negotiated last month by the White House and congressional appropriators. Domenici's bill, which has the administration's support, would also reset the so-called pay-go scorecard back to zero, requiring any additional mandatory spending or tax cuts to either be offset or declared an emergency. - by Lisa Caruso -=-=-=-=-=-=-=- DEFENSE Dems Push For Homeland Post, Despite Bush's Protests Two key Democrats will not give up a drive to enact legislation creating a Cabinet-level Homeland Security Department despite a direct plea from President Bush. "I'm going to continue to push here," said Rep. Jane Harman, D-Calif., who has emerged as a key player on the issue. Senate Governmental Affairs Chairman Lieberman also has pledged to continue pushing the bill, sources said. "Whether we can enact a law before November isn't clear, but we can start the process," Harman said. The Democrats' resistance comes as White House Homeland Security Director Tom Ridge signaled today a willingness to accept legislation after he has a chance to settle into the new role, and said he would be "very open minded" to legislation at a later date. But added, "Right now, I don't believe I need statutory authority to do what the president has asked me to do." On Wednesday, a bipartisan group of senators and House members began working to merge a handful of related homeland security measures into a single bill. Lieberman convened a closed-door session in the Capitol and said he would not back off the effort. Later that day, President Bush hosted the top Democrats and Republicans on congressional Intelligence, Armed Services and Government Affairs committees to give a status report on the administration's efforts to fight terrorism. He also asked Congress to hold off on legislation in order to give the White House more time to set up its Office of Homeland Security. After the meeting, one key member - Senate Intelligence Chairman Graham - agreed to back off. "When the president of the United States has a position on that . it has influence," Graham said. Separately, the U.S. Conference of Mayors today endorsed a plan to make the Homeland Security Office a full-fledged Cabinet- level position, with budgetary authority and direct control over a slew of federal agencies involved in anti-terrorism efforts. During a conference today in Washington, the mayors also called on Ridge to create a permanent commission of mayors and local officials to advise the White House on ways to improve coordination on anti-terrorism efforts. "We strongly support giving this office all the authority and funding that it needs," New Orleans Mayor Marc Morial said. Ridge, speaking at the mayor's conference, said he has all the power he needs for now, saying, "I certainly have access . I know I have the authority." - by Brody Mullins -=-=-=-=-=-=-=- POLITICS Senate Passes Legislation Giving Police Expanded Powers The Senate this afternoon sent President Bush legislation, by a 98-1 vote, giving police new and expanded powers to track, punish and detain suspected terrorists. The House passed it with overwhelming support Wednesday and Bush is expected to sign it before the end of the week. The legislation, somewhat weakened from what Attorney General Ashcroft proposed, expands the FBI's wiretapping and electronic surveillance authority and imposes stronger penalties for harboring or financing terrorists. It also redefines what terrorist acts are and increases the punishment for them. -=-=-=-=-=-=-=- POLITICS Hastert Warns Patronage Appointees Should Not Run Lincoln Library House Speaker Hastert warned Wednesday that the $115 million Abraham Lincoln Library and Museum in Springfield, Ill., should not be run by patronage appointees from outgoing GOP Gov. George Ryan's administration, the Chicago Tribune reported. Although Hastert did not name names, his rebuke was clearly aimed at the governor and Ryan's chief of staff Robert Newtson. Ryan has said Newtson is "eminently qualified" to become the library's director, even as the governor picked a panel to conduct a nationwide search to fill the post. Hastert has been perplexed by the political controversy Ryan has created over the library director's post, particularly since he came to the governor's defense in a dispute over the library last year with GOP Sen. Peter Fitzgerald. Fitzgerald raised the possibility that Ryan would steer up to $50 million in federal construction funds for the project to cronies and attempted a filibuster to force the Senate to demand safeguards to prevent that from happening. The filibuster failed, but Hastert accused Fitzgerald of "political grandstanding" and making unfair personal attacks on Ryan's integrity. -=-=-=-=-=-=-=- POLITICS Largent To Submit A Letter Of Resignation Friday Rep. Steve Largent, R-Okla., will submit a letter of resignation Friday, but it will not take effect until Feb. 12 so voters in his Tulsa-based 1st District can choose a successor without losing representation, The Daily Oklahoman reported. Largent, who had already announced his intent to resign Nov. 29 so he can focus on his race for governor next year, was able to do so after the Oklahoma Legislature rushed through a change that enables a special election to be held before he actually resigns. Largent hopes to succeed GOP Gov. Frank Keating, whose wife Cathy is among the candidates seeking Largent's seat. The bill approved Tuesday and signed into law by Lt. Gov. Mary Fallin Wednesday sets the primary election for Dec. 11, with a runoff - if needed - on Jan. 8, and the special election Feb. 12. If no runoff is needed, then the special election would be held Jan. 8. Besides Keating, Republican state Rep. John Sullivan and state Sen. Scott Pruitt are seeking the seat, while former Tulsa School Board member Doug Dodd seeks the Democratic nomination. -=-=-=-=-=-=-=- ATTACK UPDATE U.S. jets bombed the front lines north of Kabul today, setting off huge fireballs and columns of black smoke near Taliban positions, the Associated Press reported. Some opposition commanders urged America to send in ground troops to quickly liquidate the Taliban. At the Islamic militia's southern stronghold of Kandahar, U.S. strikes hit a bus near the city gates and at least 10 civilians were killed in a fiery explosion, the Taliban and residents said. But the claim could not be independently verified. For a fifth straight day, U.S. jets roared over the front line about 30 miles north of the capital city of Kabul, swooping down and dropping bombs on Taliban positions on the Shomali Plain. The pattern of attacks suggested the United States was trying to push the Taliban back from the opposition-controlled Bagram airport so the Northern Alliance can use the airfield. Meanwhile, in New York, the Secret Service is investigating two vials containing salmonella that were sent to former President Clinton's office in Harlem. A Secret Service spokesman said 15 vials containing an unknown substance were in a package received at Clinton's office in early October with certain writings were included in the package, but he did not elaborate. Clinton did not handle the package and nobody has gotten sick from it. Also, an employee at a State Department mail facility in Virginia has been hospitalized with anthrax, it was announced this afternoon. -=-=-=-=-=-=-=- THE FINAL WORD "I liked it better when Mr. Obey was against the bill, because he didn't talk so long." - House Defense Appropriations Subcommittee ranking member John Murtha, D-Pa., commenting Wednesday on the unusual - and lengthy - opening statement by Appropriations ranking member David Obey, D-Wis., in support of the FY02 Defense spending bill. Obey usually votes against the annual Defense spending measure. -=-=-=-=-=-=-=- 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--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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