Federal Relations Update

February 11, 2011
Federal Relations Update is a member service from the National League of Cities.
Period Ending February 11, 2011

President Scheduled to Introduce Budget that Includes CDBG Cuts

Administration Announces National High Speed Rail Plan

Washington Forges New Path on Broadband, Public Safety Communications

PACE Program Gains Traction on Capitol Hill

Cities and First Lady Celebrate One Year Anniversary of Let's Move

NLC Provides City Leaders with Guide to Civil Public Engagement


President Scheduled to Introduce Budget that Includes CDBG Cuts

President Obama will officially release his FY 2012 Budget proposal on Monday, February 14. The budget is widely expected to recommend cutting funding for many domestic discretionary programs, including the previously announced $300 million cut to the Community Development Block Grant (CDBG) program. Release of the President's budget marks the beginning of the negotiation process on federal spending between the White House and House and Senate Leaders and will play out over the next several months. Once the President's budget is released, NLC will prepare and release a complete analysis of the proposal, including proposed funding levels for programs vital to cities and towns.


In addition to the President introducing his FY 2012 budget next week, House leaders are expected to introduced Continuing Resolution legislation to fund federal government programs for the remaining seven months of FY 2011. Based on information House Appropriations Chair Hal Rogers (R-KY) released earlier this week, cuts to the CDBG program and other domestic programs are also on the table in this package.

Given the tremendous pressure from the White House and House Republicans to cut spending for programs like CDBG, NLC is already coordinating its advocacy efforts to save CDBG with the U.S. Conference of Mayors, the National Association of Counties, and other national community development organizations and meeting with White House officials and congressional members to urge their support for this program, which is essential to job creation and economic recovery efforts in hometowns across America. We need city officials to contact their congressional delegations and do the same. In addition, during the week of February 21 - 25, Congress will be in recess with your congressional delegations returning home for meetings in their districts. Be sure to call their district offices and invite them to visit or tour a CDBG-funded project in your community, so they can see first hand the difference those dollars are making in local communities. (Mike Wallace, wallace@nlc.org, 202.626.3025)

Administration Announces National High Speed Rail Plan

On Tuesday, Vice President Biden and Transportation Secretary LaHood announced a $53 billion high speed rail program to be included in a new surface transportation authorization bill. The proposal adds detail to President Obama's State of the Union pledge to provide 80 percent of Americans with access to high speed rail within 25 years.

The current federal surface transportation program, which has been extended several times since its expiration in September 2009, contains funding for highways, bridges, and transit programs. This initiative will add intercity passenger rail to any new legislation that is passed. In recent weeks, both Secretary LaHood and congressional transportation leaders have expressed optimism that Congress can reach agreement on a brand new transportation bill later this year. So far, however, disagreement over raising federal fuel tax revenues to meet current transportation spending levels has delayed agreement on a new six-year bill; new House Transportation Committee Chair John Mica (R-FL) has said that he will work on crafting a smaller bill that is more in line with current revenues.

Further details on the Administration's transportation proposal will be included in the President's FY 2012 budget, which will be released on Monday. Meanwhile, House Republicans have announced their intention to slash $1 billion from the FY 2011 budget for high speed rail as part of their budget cutting efforts. (Leslie Wollack, wollack@nlc.org, 202.626.3029)

Washington Forges New Path on Broadband, Public Safety Communications 

On Thursday, the President outlined a detailed vision of his proposal to bring high-speed wireless broadband access to 98 percent of Americans by leveraging underutilized radio spectrum and creating a nationwide interoperable public safety communications network. The proposal would reallocate a portion of radio spectrum known as the D Block directly to public safety to form the basis of the nationwide public safety network, a major NLC public safety policy goal.

The estimated $15 billion cost for construction of the new nationwide public safety network and expansion of broadband in rural areas would be funded by repurposing rural wire line subsidies and auctioning 500 MHz of spectrum currently held by the federal government and broadcasters. The federal government has estimated these auctions could bring in upwards of $27.8 billion from the sale of spectrum over the next 10 years. The remaining $10 billion not used for building out the network would be allocated to reducing the federal deficit. The Administration believes auctioning this spectrum will enable businesses to increase "4G" wireless broadband access across the country.

Legislative action is required to make the President's vision a reality, and efforts are already underway in Congress. On January 25, Senator Jay Rockefeller (D-WV) introduced the Public Safety Spectrum and Wireless Innovations Act (S. 28), while Congressmen Peter King (R-NY) and Bennie Thompson (D-MS) have introduced the Broadband for First Responders Act of 2011 (H.R. 607) in the House. NLC supports both bills and is urging members of Congress to support it, as well.  (Mitch Herckis, herckis@nlc.org, 202.626.3124)

PACE Program Gains Traction on Capitol Hill

Earlier this week, NLC, the National Association of Counties (NACo), and the PACENOW coalition held a briefing for congressional offices on the importance of the Property Assessed Clean Energy (PACE) program to homeowners and local governments. In addition to the briefing, NLC and NACo sent a letter to all members of Congress to urge their support for the program under which local governments provide funds to participating homeowners to install energy-efficiency upgrades, which are paid back over time in the form of a special assessment. Payments are typically secured by a lien on the property that gives local governments priority of repayment if the home goes into foreclosure. To view the letter, click here.

Last year, the PACE program was dealt a setback when the Federal Housing Finance Agency (FHFA), which oversees the nation's largest mortgage finance companies Fannie Mae and Freddie Mac, issued a statement objecting to local governments holding the first lien on PACE homes, calling it a significant risk to the mortgage financier.

Bipartisan legislation is expected to be introduced soon in both the House and Senate that will ensure the underwriting standards of Fannie Mae and Freddie Mac will promote the use of PACE programs to finance the installation of renewable energy and energy efficiency improvements.

With introduction of legislation pending, the State of California, Sonoma and Placer Counties (CA), the Sierra Club, and the City of Palm Desert (CA), continue to pursue court action to overturn FHFA's directives. (Carolyn Berndt, berndt@nlc.org, 202.626.3101; Mike Wallace, wallace@nlc.org, 202.626.3025)

Cities and First Lady Celebrate One Year Anniversary of Let's Move!

In honor of the one year anniversary of First Lady Michelle Obama's Let's Move! initiative, eleven cities from across the country hosted local celebrations this week highlighting healthy eating and active lifestyles. More than 500 cities, designated as Let's Move Cities and Towns, are currently participating in the initiative, which aims to reverse the childhood obesity epidemic in the United States within a generation.

Among the cities that hosted anniversary events in February were Bethlehem, Pa.; Chicago; Commerce City, Colo.; Kansas City, Mo.; Orlando, Fla.; Sacramento, Calif.; and Spokane, Wash. In addition to the local celebrations, Mrs. Obama held a conference call Wednesday with city leaders to highlight ways in which city leaders are engaging in the fight against childhood obesity. During the call, NLC Board member and San Antonio Mayor Juliàn Castro and Flint, Mich., Mayor Dayne Walling discussed some of their cities' most successful programs launched as a part of the Let's Move Cities and Towns initiative.

For more information about Let's Move Cities and Towns, visit www.letsmove.gov/officials.php. To join the initiative, visit www.hhs.gov/intergovernmental/letsmove/index.html (Kalisha Davis, davis@nlc.org, 202.626.3012)

NLC Provides City Leaders with Guide to Civil Public Engagement

In the wake of last month's tragedy in Tucson, NLC has developed an action guide, "Beyond Civility: From Public Engagement to Problem Solving," to assist local officials in creating a framework for civility and democratic governance that encourages governing a community in a participatory, deliberative, inclusive and collaborative way. For a copy of the guide, click here. (Carolyn Coleman, coleman@nlc.org, 202.626.3023)