Washington Update - 07/27/2007 (Plain Text Version)

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House-Passed Spending Bill Faces Presidential Veto

The House this week passed the fiscal 2008 Transportation, Housing and Urban Development (THUD) Appropriations bill by a vote of 268-153, following several hours of debate on amendments to cut earmarks and spending in the measure. Lawmakers opposed nearly all of these amendments, with most targeted to reducing spending on programs such as Amtrak, which is located in the transportation section of the bill. The final bill provides about $50.7 billion in discretionary spending, an increase of about $2.8 billion more than the President requested in his fiscal 2008 budget. If a final bill is sent to the White House with a spending level about what the Administration requested, the President has indicated that he will veto the measure.

To date, the White House has issued veto threats against seven appropriations bills, setting the stage for a massive omnibus spending package later in the year. Last week, House and Senate leaders began talking about the need to sit down with the President to discuss the spending priorities for fiscal 2008 in an effort to come to some agreement on how the process can move forward in an orderly fashion this year. President Bush remains opposed to any spending bills that exceed his discretionary spending limits, and most Hill Republicans seem to support that position.

Meanwhile, the Senate this week began consideration of its fiscal 2008 Homeland Security Appropriations bill, the first spending bill to go to the Senate floor this year. With a little over 60 days until the September 30 deadline for the end of the current fiscal year, Republican Minority Leader Mitch McConnell (R-Ky.) this week referred to the appropriations process as “a certain train wreck.” It is widely believed that because of the veto threats, Congress may choose not to send many of the individual appropriations bills to the President. Instead, congressional leaders may decide to cobble every spending bill together into one omnibus package at the outset—in effect daring the President to veto all of the bills, including measures such as the Defense Appropriations bill, simultaneously. It is unknown at this time how the White House would react to such a maneuver by Congress. For more information, contact Jenna Hamilton at 800-368-5242, x8407.

House Panel Approves Flood Insurance Bill

By a vote of 38-29, the House Financial Services Committee this week approved H.R. 3121, the Flood Insurance Reform and Modernization Act of 2007. The bill would reform the National Flood Insurance Program (NFIP), and, for the first time, include coverage for wind in addition to water damage. As in previous NFIP reform efforts, NAHB has taken an active stance cautioning Congress against the unintended consequences of several policy changes while supporting efforts to ensure the financial stability of the program. Of note to home builders, the bill does not expand the Special Flood Hazard Area to encompass the 500-year floodplain or include mandatory purchase requirements for properties sited behind flood protection structures. After defeating several attempts to include these provisions in previous Congresses, NAHB is pleased neither were included in H.R. 3121.

While the base NFIP reform bill has been the focus of much legislative attention over the past several years, the addition of the wind coverage split the committee along party lines. Rep. Gene Taylor (D-Miss.), who lost his home in Hurricane Katrina, said this provision would help residents who live in coastal areas. However, many Republicans on the committee expressed concern about adding wind coverage to the legislation because it would expose the federal government to steep liability at a time when the insurance fund is essentially bankrupt. The bill is expected to go to the House floor in September. For more information, contact Scott Meyer at 800-368-5242, x8144. [return to top]