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The Spending Debates Continue
Bills to End Foreclosure Mitigation Programs and NSP Moving to House Floor
Leaders Pledge to Work on New Transportation Bill
Legislation Introduced to Renew Expired Access to Credit Provisions
House Subcommittee Passes EPA Greenhouse Gas Preemption Bill
Airport and Aviation Reauthorization May Be on the Horizon
NLC Sponsors Upcoming Rail Conference
USDA Announces Broadband Grant Program
The Spending Debates Continue
Last week, in order to avoid a government shut down on March 4, the House and Senate agreed to another short-term stopgap spending measure to fund the federal government until March 18. The measure included $4 billion in cuts for FY 2011 but preserved funding for the Community Development Block Grant (CDBG) program at the FY 2010 level of $4 billion, which NLC supports. The measure was necessary in order to give the Senate time to consider H.R. 1, the House-passed measure to fund government through the end of the current fiscal year, which ends on September 30.
Wednesday, as expected, the Senate voted to block consideration of H.R. 1, which included a 62.5 percent cut (or $2.5 billion) to the Community Development Block Grant program. An amendment to H.R.1 that would restore $51 billion in cuts, including those proposed for the CDBG program, also failed on a procedural motion.
As the House, the Senate, and the White House continue debates and negotiations over funding levels for the remaining six months of the current fiscal year, the House is preparing to unveil sometime on Friday yet another short-term stop-gap measure to keep government running for three weeks beyond the March 18 date and to include an additional $6 billion in cuts for FY 2011. (Carolyn Coleman, coleman@nlc.org, 202.626.3023)
Bills to End Foreclosure Mitigation Programs and NSP Moving to House Floor
Over the last week, the House Financial Services Committee voted to eliminate four federal programs created during the height of the home foreclosure crisis. On March 3, the Committee passed the Emergency Mortgage Relief Program Termination Act (H.R. 836) and the FHA Refinance Program Termination Act (H.R. 830). On Wednesday, the Committee passed the HAMP Termination Act (H.R. 839) and the Neighborhood Stabilization Program (NSP) Termination Act (H.R. 861).
NLC joined the National Association of Counties, the U.S. Conference of Mayors and others on a letter to oppose the NSP Termination Act, which would rescind $1 billion in unobligated NSP funds that would otherwise be allocated by formula to cities and towns that have high rates of home foreclosure. Click here to view a copy of this joint letter.
The three remaining bills would eliminate three separate federal programs intended to help homeowners adjust or refinance high-interest mortgages associated with subprime and adjustable rate home loans. Although all four bills are expected to pass the House quickly, they are unlikely to be taken up quickly, if at all, in the Senate. (Mike Wallace, wallace@nlc.org, 202.626.3025)
Leaders Pledge to Work on New Transportation Bill
Last week, the President signed a short-term extension of federal transportation programs-the seventh since the last bill, SAFETEA-LU, expired in September 2009. Transportation programs will now be funded through September 30, the end of the fiscal year, and Congressional and Administration officials are hopeful that this will be the last such extension before a long-term program is enacted.
Recognizing the negative impact of continued short-term extensions on state and local planning, House, Senate, and Administration transportation leaders are promising to work expeditiously on a new bill. A stalemate over identifying sources of revenue for transportation programs has prevented agreement on a long-term bill, and House Transportation Committee Chairman John Mica (R-FL) insists that any new transportation program will have to live within its means.
Last month, the President released his authorization proposal as part of the FY 2012 budget request to Congress, calling for a six-year, $551 billion transportation program focused on consolidating 55 existing programs into five new programs and merging transit programs. The proposal continues strong support for federal transit programs and includes three discretionary programs aimed at cities.
In recent weeks, Rep. Mica and other House Transportation Committee members have been touring the country holding field hearings to gather public input for a new multi-year bill, including a joint hearing with Senate Environment and Public Works Committee Chair Barbara Boxer (D-CA) last month in Los Angeles. Sen. Boxer has been working with Democratic and Republican leadership on her committee and intends to mark up a Senate transportation bill in May, though she has not provided any specifics on what she would like to see in a new bill.
NLC continues to support several key components of any new transportation legislation, including an increase in the federal gas tax to fund transportation programs; a new long-term comprehensive program that provides for local decision-making; parity between highway and transportation programs; and performance measures to ensure that limited funding goes to critical projects that enhance mobility and contribute to metropolitan economic growth and vitality. We will continue to provide updates on federal activity surrounding authorization of a long-term transportation plan as information becomes available. (Leslie Wollack,wollack@nlc.org, 202.626.3029)
Legislation Introduced to Renew Expired Access to Credit Provisions
This week, Rep. Sandy Levin (D-MI), Ranking Member of the House Committee on Ways and Means, introduced the Building American Jobs Act of 2011 (H.R. 992), legislation which features reauthorization of favorable municipal bond provisions such as Build America Bonds, Bond Qualified Limit Increase, Recovery Zone Bonds, and Alternative Minimum Tax Exemption on Private Activity Bonds.
Originally authorized for two years under the Recovery Act, cities have not been able to take advantage of the access to credit provisions since December 31, 2010. Renewal of these tools will help hometowns and their authorities to more easily and affordably access capital markets, thereby funding infrastructure projects that create jobs. Click here to view a letter NLC and several municipal finance groups sent on Wednesday voicing support for the bill. (Lars Etzkorn, etzkorn@nlc.org, 202.626.3173).
House Subcommittee Passes EPA Greenhouse Gas Preemption Bill
Yesterday, the House Energy and Power Subcommittee passed the Energy Tax Prevention Act of 2011(H.R. 910) by a voice vote. The legislation prohibits the U.S. Environmental Protection Agency (EPA) from regulating greenhouse gas emissions under the Clean Air Act-regulation that NLC supports. Sponsored by Rep. Fred Upton (R-MI), chair of the House Energy and Commerce Committee, the bill permanently halts EPA regulation of power plants, refineries and other stationary sources of greenhouse gas emissions that went into effect in January.
H.R. 910 also includes clarifying language that prohibition on EPA regulation of greenhouse gas emissions would not prevent the agency from implementing and enforcing the renewable fuel mandate. The bill is expected to eventually pass the full committee and the House, though the exact timeframe is uncertain. A companion bill in the Senate, sponsored by Sen. James Inhofe (R-OK), was introduced last week. The fate of this bill is also uncertain. (Carolyn Berndt, berndt@nlc.org, 202.626.3101)
Airport and Aviation Reauthorization May Be on the Horizon
It appears that legislation to reauthorize federal airport and aviation programs, which expired in September 2007 and have since been extended 17 times, may finally pass Congress in coming months. On February 16, the House Transportation and Infrastructure Committee approved the FAA Reauthorization and Reform Act of 2011 (H.R. 658) by a vote of 34 to 25, and a day later the Senate passed its own reauthorization bill, the FAA Air Transportation Modernization and Safety Improvement Act (S. 223), by a vote of 87 to 8.
Although previous versions of the legislation would have allowed an increase in the Passenger Facility Charge (PFC), which allows airports to impose up to $4.50 per flight for infrastructure improvements and is strongly opposed by commercial airlines, neither the current bills allows airports to raise the PFC. NLC has supported such an increase in order to meet current needs.
NLC has also voiced support for funding for the Essential Air Services (EAS) program, which offsets the impact of airline deregulation on small and rural communities and subsidizes payments to air carriers in 150 communities. Despite repeated efforts to eliminate the program, both bills do contain funding for the EAS program, although the House bill would sunset the program by 2014 except in Alaska and Hawaii, and the Senate bill restricts the number of airports receiving subsidies. An amendment to keep the program going is expected during House debate.
Funding for the Airport Improvement Program (AIP), which funds municipal airports through the Aviation Trust Fund based on air passenger ticket taxes, is also included in both bills. The Senate bill funds the AIP program at $4.1 billion for two years, and the House version provides $3.0 billion-a 15 percent cut from the current level of $3.5 billion.
The current bill extension expires on March 30. House Transportation Committee Chairman John Mica (R-FL) has indicated that he hopes a reauthorization bill will be finalized within the next month or two. (Leslie Wollack, wollack@nlc.org, 202.626.3029)
NLC Sponsors Upcoming Rail Conference
Next month, NLC, the National Association of Counties and the National Association of Regional Councils will jointly sponsor a rail conference-Moving Freight and Passengers in the 21st Century. The event will take place April 27-29 in Naperville, Illinois, and will convene local officials with federal officials and industry representatives to address the impact of freight and passenger rail on local governments and economic development. Topics for discussion will include ways that local governments, regional organizations, and states can work together with the rail industry to develop effective strategies to improve rail service and mitigate negative impacts of rail on communities. Visit www.naco.org/railconference to register and receive conference updates. (Leslie Wollack, wollack@nlc.org, 202.626.3029)
USDA Announces Broadband Grant Program
The U.S. Department of Agriculture's Rural Utilities Service (RUS) is now accepting applications for the Community-Oriented Connectivity Broadband Grant Program, designed to provide financial assistance to eligible entities to furnish broadband service in rural, economically-challenged communities where such service does not currently exist.
Grant funds may be used to:
- deploy broadband transmission service to critical community facilities, rural residents, and rural businesses;
- construct, acquire, or expand a community center; and
- equip and operate a community center that provides free access to broadband services to community residents for at least two years.
Incorporated organizations, tribes and tribal organizations, state and local government bodies, for-profit or non-profit cooperatives, private corporations, and limited liability corporations are all eligible to apply. Grants will be awarded on a competitive basis to entities serving communities of up to 20,000 inhabitants to ensure rural consumers enjoy the same quality and range of telecommunications service as are available in urban and suburban communities. Grants will range from $50,000 to $1.5 million and the agency anticipates making 300 awards.
Applications are due May 3, 2011. For more information and a link to the application, click here. For additional information, contact Long Chen at 202.690.4673 or community.connect@wdc.usda.gov. (Laura Bonavita, bonavita@nlc.org, 202.626.3037)
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