This week both chambers will be in session, kicking off three busy weeks of legislative activity before the next scheduled recess.  The Senate will resume consideration of its proposal to reauthorize the Federal Aviation Administration (FAA), while the House will be taking up legislation related to the Federal Communications Commission’s (FCC) net neutrality rules and two bills related to domestic finance reforms.

The Senate is scheduled to return on Monday and resume consideration of H.R. 636, the vehicle for the FAA reauthorization bill authored by Commerce, Science, Transportation Committee Chairman John Thune (R-SD) and Ranking Member Bill Nelson (D-FL).  Consideration of the bipartisan bill will be interrupted briefly on Monday with a vote expected on the nomination of a federal district judge.  The Senate is expected to spend the entire week on the FAA reauthorization bill and consider several amendments.

Final passage of the legislation may be held up over unrelated tax provisions that Senate Democrats are attempting to attach to the bill.  Passage of the Fiscal Year (FY) 2016 omnibus spending measure last year included a package of tax credit renewals, including credits for solar and wind power, but the package left out other renewable energy sources, such as biomass, fuel cell, and geothermal energy.  Clean energy advocates claim the provisions were omitted from the omnibus inadvertently and would like to attach the extension of these tax credits to the must-pass FAA reauthorization bill.  While the clean-energy tax credits do have the support of some congressional Republicans, more than two dozen conservative organizations oppose the inclusion of the tax-credit extensions in the FAA bill.  In addition, Finance Committee Ranking Member Ron Wyden (D-OR), who is leading the effort to renew the clean-energy credits, is also reportedly seeking to add his bill to reform the federal taxes on beer and hard cider.  The timeline to resolve these issue is constrained because the bill will still need consideration in the House, where many members are likely to oppose the tax provisions.  The FAA bill itself must be enacted by July 15, when the current authority for the agency expires.

On the other side of the Capitol, the House of Representatives is scheduled to return following its recent two-week recess.  The big news is not what will be on the floor, but what will not.  Under the Budget Act, a budget is due by April 15.  As we have reported previously, sharp disagreements among Republicans over a proposed budget appear to remain unresolved, and the House, whose leaders had hoped to tackle the budget resolution this week, will be considering other matters.

The House returns on Tuesday, with votes expected on four bills under suspension of the rules.  Among these is H.R. 2947, a bill sponsored by Rep. Dave Trott (R-MI) to undo the orderly liquidation authority for large banks enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  In place of that authority, which Republicans have believed since Dodd-Frank was being debated, makes the process too political, the bill would allow banks to pursue resolution under judicial supervision through a new provision of the Bankruptcy Code.

On Wednesday, members will vote on six additional bills under suspension of the rules, all reported out of the Foreign Affairs and Homeland Security Committees.

On Thursday, the House plans to take up H.R. 3791, legislation that would raise the consolidated assets threshold under the Federal Reserve’s Small Bank Holding Company Policy Statement. The bill would expand the threshold under which banks can fall under the less onerous requirements of the Fed’s policy statement from the current $1 billion to institutions with assets of less than $5 billion.  Consideration of H.R. 3791 will be subject to a rule.

Following consideration of H.R. 3791, the House will take up H.R. 3340, the Financial Stability Oversight Council (FSOC) Reform Act, subject to a rule.  The FSOC was established under the Dodd-Frank Act to identify and respond to risks to U.S. financial stability.  By statute, the FSOC is authorized to designate non-bank financial companies that could pose a risk to U.S. financial stability (known as “systemically important financial institutions”, or SIFIs) for heightened regulation and supervision by the Federal Reserve Board and to recommend new or heightened standards and safeguards for systemically significant financial activities or practices.  Republicans have been critical of the powers granted to this new entity and the lack of transparency in its evaluation and designation processes.  H.R. 3340 would give Congress the power to approve the budget for FSOC and the Office of Financial Research (OFR), create quarterly reporting requirements for OFR, and require OFR to provide at least a 90 day public notice and comment period before issuing any report, rule, or regulation.  Consideration of this bill comes on the heels of a ruling issued March 30 overturning the FSOC’s designation of insurance company MetLife as a SIFI.  The FSOC has already filed an appeal of this ruling.

On Friday the House will meet to consider H.R. 2666, the No Rate Regulation Broadband Internet Act, subject to a rule.  This controversial legislation, reported out of the Energy & Commerce Committee by a 29-19 vote, would prohibit the FCC from regulating the rates charged for broadband Internet access service.  Following the FCCs issuance of newly formulated net neutrality rules last year, Chairman Tom Wheeler promised members of Congress that the agency would not regulate broadband rates in the same manner as other public utilities.  Republican sponsors of the bill argue the legislation is necessary to reinforce this promise, but opponents, including Chairman Wheeler and the White House, argue that the bill is too vague and could be interpreted broadly enough to have a negative impact on FCC authority in enforcing the net neutrality rules.

Related to the FCC, on Wednesday the Energy & Commerce Committee will be marking up several pieces of non-controversial legislation, but one item related to FCC subsidies for phone and internet services is likely to have heated debate.  H.R. 4884 would place an annual cap of $1.5 billion on support provided through the Lifeline program, which offers a discount on phone and internet service for qualifying low-income consumers.  However, the program is fraught with waste, fraud, and abuse and members of congress have been negotiating with the FCC to make meaningful reforms and provide better oversight.  Democrats on the Energy and Commerce have voiced their opposition to the bill, calling the $1.5 billion cap too low.

Also on the hearing schedule this week are several events related to cybersecurity and technology.  The House Judiciary Committee is holding a Wednesday markup of H.R. 699, the E-Mail Privacy Act, legislation that would reform a 1986 statute that was enacted before e-mail became a daily necessity for communication.  The legislation, intended to boost privacy and revise the current statute to conform to recent court decisions, would require law enforcement to obtain a warrant based on probable cause before accessing the content of email messages stored for longer than 180 days.  Current law only requires a warrant for the content of e-mails less than six months old; those older than six months are deemed business records under the current statute and may be accessed with a subpoena rather than a judicially issued warrant. The bill has more than 300 bipartisan co-sponsors.  Committee Chairman Bob Goodlatte (R-VA) circulated a substitute amendment on Friday in an effort to address the concerns of law enforcement responsible for the committee’s delay in moving the bill forward.

On Thursday the House Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings, and Emergency Management will hold a hearing regarding the U.S. electric grid’s ability to withstand cyber-attacks.

Also on Thursday the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet meets to review patent litigation at the International Trade Commission.  There has been a substantial rise in the number of infringement claims brought before the ITC in recent years, many of the cases brought by patent-assertion (or non-practicing) entities.

With the filing deadline for income tax returns approaching this Friday, several tax-related hearings will be occurring throughout the week on both sides of the Capitol.  The Senate Finance Committee and House Science, Space, and Technology Committee are hosting hearings regarding cybersecurity and protecting taxpayer information.  IRS Commissioner John Koskinen and IRS Chief Technology Officer Terence Milholland will be appearing before the Senate Finance Committee on Tuesday morning alongside other officials from the U.S. Treasury and Government Accountability Office to discuss tools and technologies in place to safeguard American taxpayers and their personal information from getting into the wrong hands.  Several of these witnesses will also be appearing before the House Science Committee on Thursday morning to discuss the same topic.  On Wednesday the House Ways and Means Subcommittee on Tax Policy is hosting the second in a series of hearings on Member proposals relating to tax reform proposals. This hearing will focus in particular on income tax reform proposals.

The House Natural Resources Committee will meet on Wednesday to review a discussion draft of the Puerto Rico Oversight, Management, and Economic Stability Act, a debt relief package for the island territory.  The committee released a draft last week that was subject to sharp criticism from the left and the right; a revised proposal is expected to be circulated by the committee on Monday.  The current draft proposes a restructuring of the $72 billion debt and places Puerto Rico’s finances under the oversight of a federally appointed oversight board and authorizes the board to restructure the Commonwealth’s debt, including allowing for bankruptcy-like filings by both municipal corporations (similar to Chapter 9 of the Bankruptcy Code) and by Puerto Rico itself (authority no state enjoys).

The Senate Judiciary Committee continues its review of the Investor Visa, or EB-5 Visa Program, and current abuses, during a scheduled Wednesday hearing. The program, designed to allow foreign investors to gain permanent residence in the United States, is currently set to expire on September 30.  This hearing is the second the committee has held since an effort to reform the program to eliminate abuses was stopped at the end of last year during closed-door negotiations.  The House Judiciary Committee has also held a hearing this year on the subject.

The threat of the Islamic State to homeland security remains the subject of congressional discussion and concern.  The Senate Foreign Relations Committee meets Tuesday to discuss the spread of ISIS.  The House Foreign Affairs Subcommittee on Asia and the Pacific will pursue a similar topic on Wednesday with a hearing on the threat of the Islamic State in Southeast Asia.

With the current stalemate over the FY 2017 budget resolution and spending caps, the House Rules Subcommittee on Rules and Organization of the House is scheduled to hold a Thursday hearing to examine “proposed reforms to Rule XXI and the modern authorization and appropriations process.”  House leadership does not seem to have made any headway over the recess in negotiating an agreement over a topline funding number for FY 2017 and it remains highly likely the chamber will miss the April 15 target date for completion of a budget resolution.

As we have previously reported, the Senate Appropriations Committee is not waiting for the House to take action on a budget resolution and is moving forward with with drafting appropriations bills using the $1.07 trillion top-line spending number set by last year’s Bipartisan Budget Act.  The full committee meets Thursday to publicly release the 302(b) allocations for individual subcommittees and to mark up the Energy and Water Development Appropriations Act and Military Construction, Veterans Affairs, and Related Agencies Appropriations Act.

A detailed hearing schedule for the week ahead is included below:

Tuesday, April 12, 2016

Senate Committees

SEC/CFTC Budgets
Senate Appropriations – Subcommittee on Financial Services and General Government
Subcommittee Hearing
10:30 a.m.

Advanced Manufacturing Technology
Senate Energy and Natural Resources
Full Committee Hearing
10 a.m.

Cybersecurity and Protecting Taxpayer Information
Senate Finance
Full Committee Hearing
10 a.m.

The Spread of ISIS and Transnational Terrorism
Senate Foreign Relations
Full Committee Hearing
10 a.m.

Every Student Succeeds Act Implementation
Senate Health, Education, Labor and Pensions
Full Committee Hearing
10 a.m.

Improving USAJOBS Website Roundtable
Senate Homeland Security and Governmental Affairs – Subcommittee on Regulatory Affairs and Federal Management
Subcommittee Hearing
9 a.m.

The Causes and Consequences of Violent Extremism and the Role of Foreign Assistance
Senate Appropriations – Subcommittee on State, Foreign Operations, and Related Agencies
Subcommittee Hearing
2 p.m.

DOD Technology Offsets Initiative
Senate Armed Services – Subcommittee on Emerging Threats and Capabilities
Subcommittee Hearing
2:30 p.m.

Small Business Perspectives on EPA Regulatory Actions
Senate Environment and Public Works
Full Committee Hearing
2:30 p.m.

FEMA Progress, Performance, and Preparedness
Senate Homeland Security and Governmental Affairs – Subcommittee on Federal Spending Oversight and Emergency Management
Subcommittee Hearing
3 p.m.

Wednesday, April 13, 2016

House Committees

Energy and the Rural Economy: The Impacts of Oil and Gas Production
House Agriculture
Full Committee Hearing
10 a.m.

Flint Water Crisis: Impacts and Lessons Learned
House Energy and Commerce – Subcommittee on Environment and the Economy
Subcommittee Hearing
10 a.m.

Consideration of 7 Communications Bills
House Energy and Commerce – Subcommittee on Communications and Technology
Subcommittee Hearing
10:15 a.m.

Middle East/North Africa Programs Budget
House Foreign Affairs – Subcommittee on the Middle East and North Africa
Subcommittee Hearing
11:30 a.m.

H.R. 699 the Email Privacy Act
House Judiciary
Full Committee Markup
10:30 a.m.

Discussion Draft of the Puerto Rico Oversight, Management, and Economic Stability Act
House Natural Resources
Full Committee Hearing
10 a.m.

GAO Duplication Report
House Oversight and Government Reform
Full Committee Hearing
10 a.m.

Keep It Simple: Small Business Tax Simplification and Reform, Main Street Speaks
House Small Business – Subcommittee on Economic Growth, Tax and Capital Access
Subcommittee Hearing
11 a.m.

Pending Legislation
House Veterans’ Affairs – Subcommittee on Disability Assistance and Memorial Affairs
Subcommittee Hearing
10 a.m.

Building the Fleet We Need: A Look at Navy Force Structure
Committee on Armed Services – Subcommittee on Seapower and Projection Forces
Subcommittee Hearing
3:30 p.m.

UN Peacekeepers: Allegations of Abuse and Absence of Accountability
House Foreign Affairs – Subcommittee on Africa, Global Health, Global Human Rights and International Organizations
Subcommittee Hearing
2 p.m.

Countering Extremism and the Threat of ISIS in Southeast Asia
House Foreign Affairs – Subcommittee on Asia and the Pacific
Subcommittee Hearing
2 p.m.

Western Water User Reforms
House Natural Resources – Subcommittee on Water, Power and Oceans
Subcommittee Hearing
1 p.m.

D.C. Metro Safety and Service
House Oversight and Government Reform – Subcommittee on Transportation and Public Assets
Subcommittee Hearing
2 p.m.

Keep It Simple: Small Business Tax Simplification and Reform, the Commissioner Responds
House Small Business – Subcommittee on Economic Growth, Tax and Capital Access
Subcommittee Hearing
2:30 p.m.

Fundamental Tax Reform Proposals (Part II)
House Ways and Means – Subcommittee on Tax Policy
Subcommittee Hearing
3:30 p.m.

Ongoing Intelligence Activities
House Select Intelligence – Department of Defense Intelligence and Overhead Architecture Subcommittee
Subcommittee Hearing (CLOSED)
4:30 p.m.

Senate Committees

Missile Defense Agency Budget
Senate Appropriations – Subcommittee on Defense
Subcommittee Hearing
10:30 a.m.

Military Construction – VA Appropriations
Senate Appropriations – Subcommittee on Military Construction, Veterans Affairs, and Related Agecies
Subcommittee Markup
10:15 a.m.

Budgeting to Maximize Taxpayer Value
Senate Budget
Full Committee Hearing
10:30 a.m.

The Role of Environmental Policies and Access to Energy and Economic Opportunity
Senate Environment and Public Works
Full Committee Hearing
9:30 a.m.

America’s Insatiable Demand for Drugs
Senate Homeland Security and Governmental Affairs
Full Committee Hearing
9:30 a.m.

EB-5 Immigrant Investor Program Abuse
Senate Judiciary
Full Committee Hearing
10 a.m.

Energy and Water Development Appropriations
Senate Appropriations Subcommittee – Energy and Water Development
Subcommittee Markup
2:30 p.m.

Marine Corps Ground Modernization
Senate Armed Services – Subcommittee on Seapower
Subcommittee Hearing
2 p.m.

Ballistic Missile Defense Policies/Programs
Senate Armed Services – Subcommittee on Strategic Forces
Subcommittee Hearing
2:30 p.m.

Ending Sexual Abuse in UN Peacekeeping
Senate Foreign Relations
Full Committee Hearing
2:15 p.m.

Pending Legislation
Senate Indian Affairs
Full Committee Hearing
2:15 p.m.

Thursday, April 14, 2016

House Committees

Focus on the Farm Economy: Growing Farm Financial Pressure
House Agriculture – Subcommittee on General Farm Commodities and Risk Management
Subcommittee Hearing
10 a.m.

U.S. Pacific Command Oversight
House Appropriations – Subcommittee on Defense
Subcommittee Hearing (CLOSED)
10 a.m.

Free-Market Workforce Health Solutions
House Education and the Workforce – Subcommittee on Health, Employment, Labor and Pensions
Subcommittee Hearing
10:30 a.m.

Oversight of NHTSA
House Energy & Commerce – Subcommittee on Commerce, Manufacturing, and Trade
Subcommittee Hearing
10 a.m.

Ground-level Ozone Standard Implementation
House Energy and Commerce – Subcommittee on Energy and Power
Subcommittee Hearing
10:15 a.m.

Enhancing Capital Formation
House Financial Services – Subcommittee on Capital Markets and Government Sponsored Enterprises
Subcommittee Hearing
10 a.m.

International Trade Commission Patent Litigation
House Judiciary – Subcommittee on Courts, Intellectual Property, and the Internet
Subcommittee Hearing
10 a.m.

Can the IRS Protect Taxpayers Personal Information?
House Science, Space and Technology – Subcommittee on Research and Technology
Subcommittee Hearing
10 a.m.

Ongoing Intelligence Activities
House Select Intelligence
Full Committee Hearing (CLOSED)
9 a.m.

The Hidden Small Business Tax
House Small Business
Full Committee Hearing
10 a.m.

Maritime Transportation Safety and Stewardship Programs
House Transportation and Infrastructure – Subcommittee on Coast Guard and Maritime Transportation
Subcommittee Hearing
10 a.m.

Blackout! Are We Prepared to Manage the Aftermath of a Cyber-Attack or Other Failure of the Electric Grid?
House Transportation and Infrastructure – Subcommittee on Economic Development, Public Buildings and Emergency Management
Subcommittee Hearing
10 a.m.

Evaluating VA Information Technology
House Veterans’ Affairs – Subcommittee on Health
Subcommittee Hearing
10 a.m.

Innovations in Health Care: Exploring Free Market Solutions for a Healthy Workforce
House Ways and Means
Full Committee Hearing
10 a.m.

The Missile Defeat Posture and Strategy of the United States—the FY17 President’s Budget Request
House Armed Services – Subcommittee on Strategic Forces
Subcommittee Hearing
2 p.m.

The Prenatal Nondiscrimination Act (PRENDA) of 2016
House Judiciary – Subcommittee on the Constitution and Civil Justice
Subcommittee Hearing
3 p.m.

Proposed Reforms to Rule XXI and the Modern Authorization and Appropriations Process
House Rules – Subcommittee on Rules and Organization of the House
Subcommittee Hearing
3 p.m., H-313 The Capitol

Pending Legislation
House Veterans’ Affairs – Subcommittee on Economic Opportunity
Subcommittee Hearing
2 p.m.

Manufacturing Tax Cuts
House Ways and Means – Subcommittee on Trade
Subcommittee Hearing
2 p.m.

Senate Committees

CFTC Reauthorization
Senate Agriculture, Nutrition and Forestry
Full Committee Markup
10 a.m.

Military Construction, VA Appropriations/Energy and Water Development Appropriations

Senate Appropriations Committee
Full Committee Markup
10:30 a.m.
Fixed-Income Market Changes
Senate Banking, Housing and Urban Affairs – Subcommittee on Securities, Insurance and Investment; Subcommittee on Economic Policy
Joint Subcommittees Hearing
10 a.m.

Lack of Reliable Emergency Medical Transportation in King Cove, Alaska
Senate Energy and Natural Resources
Full Committee Hearing
10 a.m.

Federal Perspective on the State of U.S. Biodefense
Senate Homeland Security and Governmental Affairs
Full Committee Hearing
10 a.m.

Pending Business
Senate Judiciary
Full Committee Markup
10 a.m.

Natural Gas Waster Reduction Rule
Senate Energy and Natural Resources – Subcommittee on Public Lands, Forests and Mining
Subcommittee Hearing
2:30 p.m.

Friday, April 15, 2016

House Committees

Evaluating DOD Investments: Case Studies in Afghanistan Initiatives and U.S. Weapons Sustainment
House Armed Services – Subcommittee on Oversight and Investigations
Subcommittee Hearing
9 a.m.

Senate Committees

Border Security and America’s Heroin Epidemic: The Impact of the Trafficking and Abuse of Heroin and Prescription Opioids in Wisconsin
Senate Homeland Security and Governmental Affairs
Full Committee Field Hearing
3:30 p.m., Waukesha County Technical College, 800 Main St., Pewaukee, Wisconsin