Budget negotiations and a House leadership election will consume much of the attention on Capitol Hill this week following last week’s successful enactment of a continuing resolution to fund the government into December.

The Senate is scheduled to return on Monday, with a vote scheduled on the nomination of a federal district judge.  The Senate is then expected to turn to consideration of H.R. 1735, the conference report for the Fiscal Year (FY) 2016 National Defense Authorization Act (NDAA), which passed the House last Thursday by a vote of 270-156.  House and Senate conference committee members and staff worked through the summer to resolve hundreds of differences between each chamber’s version of the bill.  The resulting conference report authorizes $515 billion for national defense programs and operations and an additional $89 billion for Overseas Contingency Operations (OCO), an account for war funding.  The conference report also includes reforms of several Department of Defense programs.  President Obama threatened a veto last week of the conference report, even though it authorizes the amounts requested by his Administration.  His objection is that the bill shifts money into the OCO account in order to increase other defense spending levels while technically remaining within the spending limits set by the 2011 budget agreement and sequester.  The President and congressional Democrats have insisted that before they would accept what they deem a gimmick, Republicans would have to agree to increase domestic spending by an amount equal to the increase included in the NDAA and without raising spending for any other federal appropriations.

The NDAA and defense appropriations have been the source of a larger battle between Republicans and Democrats on overall government spending.  Congress failed to deliver a single appropriations bill this year for FY 2016 funding due to filibuster by Senate Democrats over the 2011 budget caps and threats from the White House to veto each of the 12 annual appropriations measures because of what it deems inadequate funding levels, notwithstanding the President’s agreement to those levels a few years ago.  After passage last week of the short-term continuing resolution that keeps the government financed through December 11, leaders in the House and Senate have indicated that negotiations for a two-year budget framework and spending plan are reportedly underway.  Press reports claim that meetings among senior leadership and committee staff began last week, while Senate Leaders McConnell and Reid and House Leaders Boehner and Pelosi have had conversations with the White House about a process to move forward.  Republicans want to increase defense spending, as reflected in the NDAA, while holding the line on domestic discretionary spending as close to sequester levels as possible.  They also want offsets for the increases in the domestic accounts (funding for mandatory programs, such as Social Security, Medicare, Medicaid, and the like are not affected by the negotiations).  Democrats want spending increases for domestic programs to be equal to those for defense accounts.

Separate from the budget negotiations, the Treasury Department alerted Congress last week that the debt ceiling, the government’s borrowing limit, will need to be raised before November 5, earlier than most observers had been predicting.  In past instances, congressional Republicans have demanded major fiscal concessions in order to support raising the debt ceiling.  President Obama has already insisted that he will not negotiate over an increase in the debt ceiling as part of the budget talks with Congress.  The resolution of this issue may be achieved by Speaker John Boehner as one of his final acts.

The budget and debt ceiling discussions are happening as a major shift in leadership is occurring in the House of Representatives.  Speaker Boehner will be resigning his leadership post and seat in Congress, effective at the end of this month.  His announcement set off a scramble in the Republican caucus of members eager to assume leadership posts for the remainder of the 114th Congress and beyond.  Current House Majority Leader Kevin McCarthy (R-CA) is widely expected to win promotion to the speakership when the election takes place this Thursday.  While Leader McCarthy is popular among all parts of the Republican caucus, Speaker Boehner is in a better position to negotiate bipartisan deals and move legislation through the House in reliance on Democratic votes before his departure, despite the opposition of the more conservative members of his caucus, many of whom would prefer to take a hardline approach with the Administration in budget and debt ceiling negotiations.  The congressional calendar in October is limited however, as a recess is scheduled during the week of October 12, leaving a short window for Speaker Boehner to move any big-ticket items before his departure.  An increase in the debt ceiling could well be the final act of his speakership.

Before adjourning for the Columbus Day recess, the House returns on Tuesday with votes expected on 11 bills being considered under suspension of the rules.  Among these measures are the Airport Access Control Security Improvement Act of 2015 (H.R. 3102), to require the Transportation Security Administration to develop a new model for screening airport employees; the Department of Homeland Security Cybersecurity Strategy Act of 2015 (H.R. 3501), to establish an insider-threat program at the Department of Homeland Security; and the Small Bank Exam Cycle Reform Act of 2015 (H.R. 1553), to allow banks with assets of less than $1 billion to undergo examinations by the Office of the Comptroller of the Currency every 18 months instead of annually.

On Wednesday the House will consider the Homebuyers Assistance Act (H.R. 3192), bipartisan legislation that would provide a short-term safe harbor for those making a good-faith effort to comply with the Consumer Financial Protection Bureau’s (CFPB) new mortgage disclosure rule—the TILA-RESPA Integrated Disclosure (TRID) rule—which is set to take effect on October 3, 2015.  More than 250 House and Senate members wrote the CFPB to request a hold-harmless period.  This legislation would provide a safe harbor until February 1, 2016 for those who are making a good faith effort to comply with the TRID rule.

For the remainder of the week, the House will focus on energy legislation.  On Thursday, the House is expected to take up the Native American Energy Act (H.R. 538), a bill that would streamline the permitting process for energy development on Native American lands.  On Friday, the House will consider H.R. 702, legislation that would lift the nation’s ban on exporting crude oil.  Congress installed the oil export ban in 1975, in the wake of the 1973 oil embargo by members of the Organization of Petroleum Exporting Countries (OPEC), amid fears of a domestic fuel shortage.  Proponents of the bill believe that lifting the ban will increase market opportunities for American companies amid the increase in domestic oil production from fracking without leading to price increases because oil is traded on a global basis.  Those who oppose the measure believe it will create a rush to drill and produce oil, and could lead to environmental harm, while others claim it could create an increase in domestic gas prices.  A similar bill was favorably reported by the Senate Banking Committee last week, and another was favorably reported by the Senate Energy Committee earlier this year.  The White House has indicated it opposes legislation that would lift the ban at this time.

Another bill to watch for, most likely when the House returns the week of October 19, is legislation sponsored by Rep. Steven Fincher (R-TN) to reauthorize the Export-Import Bank.  More than 30 Republican House members have signed a discharge petition, a procedural maneuver that brings a bill to the floor without the normal committee process, to reauthorize the government-backed export credit agency.  As has been previously covered by this column, the authority for the Export-Import Bank lapsed at the end of June, due to congressional inaction and opposition from several Republicans, including most members of Republican leadership and, especially, the chairman of the relevant committee, Rep. Jeb Hensarling (R-TX).  Large companies such as General Electric have announced domestic job cuts since the Bank stopped making new loans, although the most dramatic effects are likely being felt by small and medium businesses, which are likely having to deal with credit squeezes in the absence of Bank guarantees.  With potentially thousands of jobs on the line, supporters of the Bank have resorted to the rarely-used discharge petition to force a floor vote.  If the petition garners a majority of House members, the bill is discharged from committee and can come to the floor, where the majority of the House that supports the Bank can work its will.

Congressional committees will be busy this week before adjourning for the scheduled recess. The House Budget Committee has announced a Friday markup for reconciliation legislation related to Planned Parenthood funding, while the House Judiciary Committee continues its investigation of the organization with a hearing on Thursday.  The Syrian refugee crisis is the subject of a House Judiciary Committee hearing on Wednesday morning and a House Foreign Affairs Subcommittee on the Middle East and North Africa hearing on Thursday afternoon. The House Energy and Commerce Subcommittee on Oversight and Investigations will hold a hearing on Thursday regarding Volkswagen’s admission of cheating in diesel emission tests in the United States.  Also on Thursday, the Senate Judiciary Committee will hold a markup of S. 1814, the Stop Sanctuary Cities Act.

A full list of congressional hearings scheduled this week is included below:

Tuesday, October 6, 2015 

House Committees

Intelligence Issues
House Select Intelligence
Full Committee Closed Business Meeting
Oct. 6, 5 p.m., HVC-304 Capitol Visitor Center

Senate Committees

Afghanistan
Senate Armed Services
Full Committee Hearing
Oct. 6, 9:30 a.m., G-50 Dirksen Bldg.
Strategic Petroleum Reserve
Senate Energy and Natural Resources
Full Committee Hearing
10:30 a.m., 366 Dirksen Bldg.

Stealing the American Dream of Business Ownership: The NLRB’s Joint Employer Decision
Senate Health, Education, Labor and Pensions
Full Committee Hearing
10 a.m., 430 Dirksen Bldg.

The U.S. Role and Strategy in the Middle East: Yemen and the Countries of the Gulf Cooperation Council
Senate Foreign Relations Committee
Full Committee Hearing
2:30 p.m., 419 Dirksen Bldg.

How Overregulation Harms Minorities
Senate Judiciary – Subcommittee on Oversight, Agency Action, Federal Rights and Federal Courts
Subcommittee Hearing
2:15 p.m., 226 Dirksen Bldg.

Veterans Affairs Legislation
Senate Veterans’ Affairs
Full Committee Hearing
2:30 p.m., 418 Russell Bldg.

Wednesday, October 7, 2015

House Committees

Dietary Guidelines
House Agriculture
Full Committee Hearing
9 a.m., 1300 Longworth Bldg.

Head Start Program
House Education and the Workforce
Full Committee Hearing
10 a.m., HVC-210 Capitol Visitor Center

Emissions Regulations for Power Plants
House Energy and Commerce – Subcommittee on Energy and Power
Subcommittee Hearing
10 a.m., 2123 Rayburn Bldg.

Improving Federal Spectrum Systems
House Energy and Commerce – Subcommittee on Communications and Technology
Subcommittee Hearing
10:15 a.m., 2322 Rayburn Bldg.

U.S. Food Aid Programs
House Foreign Affairs
Full Committee Hearing
10 a.m., 2172 Rayburn Bldg.

Infrastructure Security Organization
House Homeland Security – Subcommittee on Cybersecurity, Infrastructure Protection and Security Technologies
Subcommittee Hearing
10 a.m., 311 Cannon Bldg.

The Syrian Refugee Crisis and Its Impact on the Security of the U.S. Refugee Admissions Program
House Judiciary
Full Committee Hearing

10:30 a.m., 2141 Rayburn Bldg.
Secure Immigration Identity Documents
House Oversight and Government Reform
Full Committee Hearing
10 a.m., 2154 Rayburn Bldg.

EPA Ozone Standard
House Science, Space and Technology – Subcommittee on Environment; House Science, Space and Technology – Subcommittee on Oversight
Subcommittees Joint Hearing
10 a.m., 2318 Rayburn Bldg.

The EMV (Europay, MasterCard and Visa) Deadline and What it Means for Small Businesses
House Small Business
Full Committee Hearing
11 a.m., 2360 Rayburn Bldg.

Unmanned Aerial Vehicles
House Transportation and Infrastructure – Subcommittee on Aviation
Subcommittee Hearing
10 a.m., 2167 Rayburn Bldg.

Veterans Health Administration Assessment
House Veterans’ Affairs
Full Committee Hearing
10 a.m., 334 Cannon Bldg.

Higher Education and Tax Policy
House Ways and Means – Subcommittee on Oversight
Subcommittee Hearing
10 a.m., 1100 Longworth Bldg.

Plutonium Disposition and the MOX Project
House Armed Services – Subcommittee on Strategic Forces
Subcommittee Hearing
3:30 p.m., 2118 Rayburn Bldg.

“Protecting America’s Workers: An Enforcement Update from the Occupational Safety and Health Administration”
House Education and the Workforce – Subcommittee on Workforce Protections
Subcommittee Hearing
1 p.m., 2261 Rayburn Bldg.

Food Security in Africa
House Foreign Affairs – Subcommittee on Africa, Global Health, Global Human Rights and International Organizations
Subcommittee Hearing
2 p.m., 2200 Rayburn Bldg.

President Xi’s State Visit
House Foreign Affairs – Subcommittee on Asia and the Pacific
Subcommittee Hearing
2 p.m., 2172 Rayburn Bldg.

Invasive Species
House Oversight and Government Reform – Subcommittee on the Interior
Subcommittee Hearing
2 p.m., 2154 Rayburn Bldg.

Senate Committees

National Institutes of Health
Senate Appropriations – Subcommittee on Labor, Health and Human Services, Education and Related Agencies
Subcommittee Hearing
10 a.m., 124 Dirksen Bldg.

Wireless Broadband
Senate Commerce, Science and Transportation
Full Committee Hearing
10 a.m., 253 Russell Bldg.

Nuclear Regulatory Commission
Senate Environment and Public Works
Full Committee Oversight Hearing
10 a.m., 406 Dirksen Bldg.

Homeland Security and Governmental Affairs Bills
Senate Homeland Security and Governmental Affairs
Full Committee Markup
10 a.m., 342 Dirksen Bldg.

S. 2102- Standard Merger and Acquisition Reviews Through Equal Rules Act
Senate Judiciary – Subcommittee on Antitrust, Competition Policy and Consumer Rights
Subcommittee Hearing
10 a.m., 226 Dirksen Bldg.

North Korea and National Security
Senate Foreign Relations – Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy
Subcommittee Hearing
2:15 p.m., 419 Dirksen Bldg.

Indian Affairs Land Policy
Senate Indian Affairs
Full Committee Hearing
2:15 p.m., 628 Dirksen Bldg.

Identity Theft
Senate Special Aging
Full Committee Hearing
2:30 p.m., 562 Dirksen Bldg.

Thursday, October 8, 2015

House Committees

Sequestration and Military Readiness
House Armed Services – Subcommittee on Readiness
Subcommittee Hearing
8 a.m., 2212 Rayburn Bldg.

U.S. Strategy in Afghanistan
House Armed Services
Full Committee Hearing
10 a.m., 2118 Rayburn Bldg.

Fire Season Review
House Agriculture – Subcommittee on Conservation and Forestry
Subcommittee Hearing
10 a.m., 1302 Longworth Bldg.

Juvenile Justice System and At-Risk Youth
House Education and the Workforce
Full Committee Hearing
10 a.m., HVC-210 Capitol Visitor Center

Examining Legislative Proposals to Combat our Nation’s Drug Abuse Crisis
House Energy and Commerce – Subcommittee on Health
Subcommittee Hearing
10:15 a.m., 2322 Rayburn Bldg.

Volkswagen Emissions Issues
House Energy and Commerce – Subcommittee on Oversight and Investigations
Subcommittee Hearing
10 a.m., 2123 Rayburn Bldg.

Port Cybersecurity Issues
House Homeland Security – Subcommittee on Border and Maritime Security
Subcommittee Hearing
10 a.m., 311 Cannon Bldg.

The Consequences of DOL’s One-Size-Fits-All Overtime Rule for Small Businesses and their Employees
House Small Business – Subcommittee on Investigations, Oversight and Regulations
Subcommittee Hearing
10 a.m., 2360 Rayburn Bldg.

Military Suicide Prevention
House Armed Services – Subcommittee on Military Personnel
Subcommittee Hearing
2 p.m., 2212 Rayburn Bldg.

Syrian Crisis
House Foreign Affairs – Subcommittee on the Middle East and North Africa
Subcommittee Hearing
2 p.m., 2172 Rayburn Bldg.

Transportation Security Administration
House Homeland Security – Subcommittee on Transportation Security
Subcommittee Hearing
2 p.m., 311 Cannon Bldg.

Planned Parenthood Practices
House Judiciary
Full Committee Hearing
2 p.m., 2141 Rayburn Bldg.

Senate Committees

Western and Alaska Water Legislation
Senate Energy and Natural Resources
Full Committee Hearing
9:30 a.m., 366 Dirksen Bldg.

Homeland Security Threats
Senate Homeland Security and Governmental Affairs
Full Committee Hearing
10 a.m., 342 Dirksen Bldg.

S. 1814 – Stop Sanctuary Cities Act
Senate Judiciary
Full Committee Markup
10 a.m., 226 Dirksen Bldg.

Consideration of Lands Measures
Senate Energy and Natural Resources – Subcommittee on Public Lands, Forests and Mining
Subcommittee Hearing
2:30 p.m., 366 Dirksen Bldg.

Diplomatic Security Training
Senate Foreign Relations – Subcommittee on State Department and USAID Management, International Operations, and Bilateral International Development
Subcommittee Hearing
2:30 p.m., 419 Dirksen Bldg.

Eminent Domain
Senate Judiciary – Subcommittee on the Constitution
Subcommittee Hearing
2 p.m., 226 Dirksen Bldg.

Friday, October 9, 2015

House Committees

Reconciliation Legislation
House Budget Committee
Full Committee Markup
TBA

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Photo of Kaitlyn McClure Kaitlyn McClure

Kaitlyn McClure is a policy advisor in Covington’s Public Policy Practice, leveraging her experience in government and politics to provide strategic advisory services and support to clients with legislative matters before government agencies and Congress.

Before joining the firm, Ms. McClure was the…

Kaitlyn McClure is a policy advisor in Covington’s Public Policy Practice, leveraging her experience in government and politics to provide strategic advisory services and support to clients with legislative matters before government agencies and Congress.

Before joining the firm, Ms. McClure was the Associate Vice President of Client Relations at DDC Advocacy. Prior to working for DDC, Ms. McClure served as the strategy assistant for former presidential candidate Governor Mitt Romney. Her experience also includes working in the U.S. Senate as a legislative assistant for Republican Senators John Hoeven of North Dakota and Judd Gregg of New Hampshire.