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National Journal's CongressDaily
Issue date:  June 7, 2001
-=-=-=-=-=-=-=-

TRADE
Presidential Negotiating Authority A Must, Evans Says
Top administration officials suggested today they are stepping
up their push for presidential trade negotiating authority,
rejecting suggestions by Finance Chairman Baucus that the bill
may not move this year and showing flexibility on the
controversial Jordan free trade agreement, which is backed by
some key Democrats. Presidential trade negotiating authority is
"number one on my list of issues [that] I am focusing on right
now," Commerce Secretary Evans told a small group of reporters.
Evans said he was surprised that Baucus had reportedly said the
bill could "slip" into next year. Evans and a senior
administration official also in on the session insisted that the
bill must pass this year. They indicated not only was the trade
negotiating authority needed to help move negotiations along with
Chile and for a Free Trade Area of the Americas, but passage
would help bolster U.S. credibility as it tries to launch a new
trade round.
Evans pledged he would aggressively argue for free trade to
the American people and that President Bush would be touting it
as well. Evans also said the point of this week's announcement
that the United States would investigate limiting steel imports
under section 201 of U.S. trade law was to see whether the steel
industry needed help, but he noted that if the move made
Democrats more comfortable backing trade negotiating authority,
then all the better.
The senior official indicated the administration was
considering allowing the Jordan trade deal to maintain provisions
that could lead to enforcement of its labor and environmental
provisions with sanctions. The bill is supported by some
Democrats who want a tougher line on these issues. Some business
officials oppose the deal; others are not taking a position. "I
think we are all coming around to the conclusion that ... one
size does not fit all," the official said. "There's a lot of
debate about whether Jordan's going to provide a way forward. I
think it's a model. I don't think it is necessarily the model."
But he added, "I think there's a number of different ways to
approach the problem, and Jordan's one of them." And he compared
Jordan's provisions to a portion of the North American Free Trade
Agreement. - by Keith Koffler
-=-=-=-=-=-=-=-

TAXES
Gephardt Promises Offsets For Any Further Tax Cuts
House Minority Leader Gephardt pledged today that Democrats
will resist any move to pay for additional tax cuts this year
with Medicare and Social Security trust fund money, but echoed
Senate Majority Leader Daschle's comments Wednesday that there
would be offsets for any additional tax relief that might be on
the way this year. At a news conference criticizing the $1.35
trillion tax cut that became law today, Gephardt and other
Democratic leaders acknowledged that energy-related tax cuts and
renewal of a group of tax credits that expire this year are just
some of the items Congress may need to address.
Noting that GOP appropriators have already signaled they need
more money for FY02 appropriations bills, Gephardt said it will
be hard for Democrats and Republicans to advocate additional
spending or tax relief, but added: "We will have offsets. We hope
the Republicans will do the same." For now, he could offer no
specific ideas on what the offsets would be, but he left the door
open to even looking at the newly enacted tax bill as a source of
funds. Daschle also said it was likely that future Congresses may
need to modify the 10-year bill President Bush signed today in
order to keep the budget balanced, but played down the notion
such revisions could happen as early as this year. Ways and Means
ranking member Charles Rangel, D-N.Y., said the real impact of
the tax cut is 10 years away, and claimed that [President]
"George W. is saying, 'Not on my watch.'"
The question of what tax measures could come next prompted a
letter from Rangel to Ways and Means Chairman Thomas. Sources
said Rangel learned this week that GOP leaders were considering
trying to move a patients' rights bill quickly - even if it meant
having the bill go right to the floor. There may have also been
discussions about similarly speedy treatment for an energy-
related tax break measure. But Rangel and Ways and Means Health
Subcommittee ranking member Fortney (Pete) Stark, D-Calif., wrote
Thomas today "to express our strong opposition to such an effort,
and hope that you will join us in defending the jurisdiction and
rights of the committee to act in this legislative arena.? you
know, the Health Subcommittee already has had one hearing this
year on this important topic." Meanwhile, GOP leaders are
apparently eyeing a number of other priorities. House Republican
Conference Chairman J.C. Watts of Oklahoma renewed his call for
expanding tax deductions for charitable contributions in his
statement greeting Bush's signature of the tax cut bill. Majority
Leader Armey has said more tax relief should be on the way, but
he acknowledged it could be modest. - by Stephen Norton
-=-=-=-=-=-=-=-

TAXES
Bush Signs $1.35 Trillion, 10-Year Tax Cut Measure
Surrounded in the ornate East Room by a crowd comprised mostly
of elite Republican lawmakers, President Bush today signed into
law the $1.35 trillion, 10-year tax relief package. The
legislation, which largely takes its cue from Bush's signature
campaign proposal, was hailed by Bush as a historic achievement
ranking with tax reduction bills signed by former Presidents
Kennedy and Reagan. Bush praised the role of some of the handful
of Democrats on hand - including Senate Finance Chairman Baucus
and Sens. John Breaux of Louisiana and Zell Miller of Georgia.
"Tax relief is the first achievement produced by the new tone in
Washington," Bush said. Calling this "an era of steady
cooperation," Bush predicted, "more achievements are ahead." But
few Democrats showed up to witness this particular moment of the
new era. Among them were Sens. Max Cleland of Georgia, Robert
Torricelli of New Jersey and Reps. Ralph Hall of Texas, Ken Lucas
of Kentucky and Bud Cramer of Alabama. Republican leaders such as
House Speaker Hastert, Senate Minority Leader Lott, House
Majority Leader Armey, Senate Minority Whip Nickles, House
Majority Whip DeLay, House Ways and Means Chairman Thomas and
Senate Finance ranking member Charles Grassley, R-Iowa, were more
typical of those attending the bill-signing ceremony.
Senior Senate Republicans declared afterward that one of their
top priorities this summer will be to make the tax cut, which
expires in a decade, permanent. Sen. Phil Gramm of Texas vowed to
aggressively move the legislation as an amendment. "The first
thing we [have] got to do is make this [tax cut] permanent,"
Gramm told CongressDaily. "I intend to offer it at least a dozen
times." Nickles said Republicans will "be successful in either
extending the rate reduction or extending the zero bracket for
estate taxes, I think," but he acknowledged, "It's going to be a
challenge." Nickles added that he still will try to reduce the
capital gains tax from 20 percent to 15 percent, to provide tax
breaks for unemployed and those lacking employer assistance to
buy health insurance, and add tax cuts to the minimum wage bill.
Other tax cut vehicles, he said, could be the "Patients' Bill of
Rights" and the tax extenders bill. On managed care reform,
Nickles said, "there are some discussions going on, but I
wouldn't try to claim any optimism" about a deal. - by Keith
Koffler
-=-=-=-=-=-=-=-

HEALTH
Senate Readies For Debate On Patients' Rights Proposal
With the Senate still mired in debate over the education bill,
behind-the-scenes discussions are picking up on what is expected
to be the chamber's next order of business - debate on a managed
care "Patients' Bill of Rights." HHS Secretary Thompson was on
Capitol Hill today to meet separately with Senate Democratic and
GOP leaders to discuss a potential compromise on an issue whose
differences have thus far proved unbridgeable. President Bush
earlier this spring vowed to veto the bill Democrats intend to
bring to the floor - sponsored by Senate Commerce ranking member
John McCain, R-Ariz., Sen. John Edwards, D-N.C., and Health,
Education, Labor and Pensions Chairman Kennedy. And Bush has
endorsed a competing bill sponsored by Sens. Bill Frist, R-Tenn.,
John Breaux, D-La., and James Jeffords, I-Vt. At the same time,
Rep. Charlie Norwood, R-Ga., who helped write the McCain-Edwards-
Kennedy bill - but deferred sponsorship while he sought to
negotiate with the White House - is continuing his efforts, but
signaled he will not wait much longer. After one of his meetings
today, Thompson tried to strike a conciliatory tone. "We hope
we're able to reach an agreement," he said, but added that "if
the president feels strongly and this bill doesn't reach his
principles, he will" veto it.
Meanwhile, backers of the Frist-Breaux-Jeffords approach said
new estimates from CBO show that their bill should represent the
final compromise. According to CBO, the Frist-Breaux-Jeffords
bill would, when fully phased in, raise health insurance premiums
by an estimated 2.9 percent. That compares to 4.2 percent for the
McCain-Edwards-Kennedy bill, and 2 percent for the GOP-sponsored
bill that passed the Senate in 1999. "Today's CBO report
illustrates what we've said all along, that our bill presents a
true compromise on the 'Patients' Bill of Rights,'" said Frist.
But the veto question appears the key to the upcoming debate.
Backers of the McCain-Edwards-Kennedy measure insist that the
president will sign virtually any patients' rights bill Congress
manages to pass. That prospect has frightened business and
insurance lobbyists, who vehemently oppose provisions that would
allow broad new rights to sue health plans in state and federal
court. Administration officials Wednesday denied widespread
speculation that Bush would soon issue a formal statement again
threatening to veto the bill, but also left what one source
called "wiggle room" if the Senate makes some, as yet undecided-
upon, changes.
While opponents of the McCain-Edwards-Kennedy measure fear
they lack the votes to defeat or even substantially change the
measure - it appears to have virtually unanimous support among
Democrats - save Breaux - as well as at least a handful of
Republicans, including Sens. Lincoln Chafee of Rhode Island and
Arlen Specter of Pennsylvania - opponents are more confident
about their ability to add to the measure a package of tax-
related health insurance "access" provisions. Some of those,
including a broad expansion of Medical Savings Accounts, could be
controversial. - by Julie Rovner and April Fulton
-=-=-=-=-=-=-=-

SENATE LEADERSHIP
Craig Predicts Senate Organizational Deal By Next Week
Senate Republican and Democratic leaders are nearing agreement
on a new organizational resolution for the Senate, although key
senators predicted the issue would not be resolved until next
week. Sen. Phil Gramm, R-Texas, said he hoped negotiators would
be able to complete an agreement today. Sen. Pete Domenici, R-
N.M., said Republicans were "purifying" their own proposals to
decide how many points to include. Gramm and Domenici are part of
a five-member GOP task force assigned by Minority Leader Lott to
negotiate a new resolution with Majority Leader Daschle. Daschle
said today negotiations were "going well," but declined to give
details. The group is expected to meet again with Daschle today.
But before any deal is final, Republicans will run any
agreement that is reached by the entire GOP Conference - a
requirement that led Republican Policy Committee Chairman Larry
Craig of Idaho to predict a deal would not be finalized until
mid-week. Republicans have backed down on their requirement that
any new resolution include a mechanism to move presidential
nominations to the floor. Instead, said a GOP aide, negotiators
will assemble a memorandum or some sort of written statement, or
a colloquy for leaders to deliver on the floor. Democrats,
meanwhile, have given in to a GOP demand that committees be
expanded to reflect a one-seat Democratic advantage, rather than
bumping Republicans from panels. Said Commerce Chairman Hollings,
"I'm not comfortable with it, but that's what it's going to be."
Hollings' panel will grow to 23 members, a size he said will make
it hard to hold efficient hearings. "You get through opening
statements and, good God, the day is over," he said. - by Geoff
Earle
-=-=-=-=-=-=-=-

GOVERNMENT OPERATIONS
Lieberman To Probe Decisions On Energy, Environment
Senate Governmental Affairs Chairman Lieberman today promised
not to use his new chairmanship to "practice the politics of
personal attacks and destruction," but said he will investigate
the high cost of energy, as well as ask the Bush administration
to explain its rescission of federal environmental standards.
"The current high price of energy and shortages in energy supply
in some parts of our country . will be the committee's immediate
priority," Lieberman said in an agenda session with reporters.
Lieberman has scheduled a hearing next Wednesday to look at the
deregulation of the electricity and natural gas industries and a
June 20 hearing to consider whether the Federal Energy Regulatory
Commission has done enough to keep electricity prices reasonable.
"From all that I have seen . I think FERC has the authority to
act and should have acted already," Lieberman said. A cosponsor
of price cap legislation proposed by Sens. Dianne Feinstein, D-
Calif., and Gordon Smith, R-Ore., Lieberman said he would not
ordinarily favor price controls, but said the lack of competition
in the Western energy market warrants them.
Lieberman said he also wanted to know how Bush administration
officials decided so quickly to roll back federal standards
regulating arsenic, forest roadbuilding and mining waste. "Who
did you talk to?" Lieberman asked rhetorically of the
administration's rapid rollback of federal policy long in the
making. He also said he would "put the breaks on any additional
plans the White House has to roll back environmental standards."
Lieberman said he had a good relationship with ranking member
Fred Thompson, R-Tenn., and said they would work together on
issues such as reducing government waste and abuse, electronic
government initiatives and attracting new and qualified federal
personnel.
As the Democratic vice presidential nominee in last year's
disputed election, Lieberman was asked to clarify his vow not to
use his committee for political retribution. "The difference
between oversight and overkill is in the eye of the beholder, but
you and I will know it once we see it," he said. When asked
specifically about whether he would investigate Vice President
Cheney's use of his official residence at the U.S. Naval
Observatory for a political event, Lieberman said definitively
no, but compared it to former President Clinton's White House
coffees. "It did make me laugh because the event and the
explanation of the event sounded very similar to what Republicans
said" about the coffees, Lieberman said. - by Mark Wegner
-=-=-=-=-=-=-=-

ENVIRONMENT
Interior Approps Panel Restores Bush Energy, Land Cuts
The House Interior Appropriations Subcommittee unanimously
approved an $18.9 billion spending bill today that restores
President Bush's proposed cuts in energy research and increases
funding for energy conservation and land preservation
initiatives, National Journal News Service reported. The measure
provides $1.8 billion for energy programs, an increase of $294
million over the administration's request. The panel included
$311 million for weatherization and state energy grants, which is
an increase of $120 million over last year's level, and includes
$940 million for overall energy conservation. Calling the
restoration of energy conservation and research funding
"crucial," given the nation's electricity woes, subcommittee
ranking member Norman Dicks, D-Wash., hailed the panel's "very
bipartisan effort" and dedication to conservation spending. "This
is a good example of how we can cooperate and work on a
bipartisan basis," he said.
In addition to the increased energy funding, the subcommittee
also agreed to provide $1.32 billion for the widely heralded land
conservation initiative launched last year as a compromise to the
controversial Conservation and Reinvestment Act. Although
significantly smaller than CARA, the conservation initiative
nonetheless represents a doubling of federal spending on a
variety of resource conservation programs. The bill increases
funding by $121 million over last year's level and $64 million
over the administration's request. The program includes $100
million for state wildlife grants, $45 million for wetlands
conservation, $47 million for historic preservation and $60
million in conservation incentives for private landowners.
House Appropriations ranking member David Obey, D-Wis., said
the increase in conservation funding keeps a commitment the
Congress made to the compromise program last year when
appropriators balked at CARA's 15-year budget commitment to land
programs. "That should send a message to the administration that
they ought to recognize a good deal when they see it," Obey said.
Appropriations Chairman Young said he expected the full committee
to mark up the Interior spending bill next Wednesday. - by Cyril
Zaneski
-=-=-=-=-=-=-=-

EDUCATION
GOP Criticizes Plan To Restrict 'Straight A's' Initiative
Republicans today said an amendment to the reauthorization of
the Elementary and Secondary Education Act exempting one category
of school funding from a trial program known as "Straight A's"
would gut a major component of the president's education bill.
The amendment to exempt 21st Century learning centers from the
"Straight A's" pilot program would remove almost half of the
available money and would discourage states from participating,
Sen. Bill Frist, R-Tenn., said. If the amendment passes, it would
"certainly be a blow to the bipartisan coalition that has worked
on this bill," said Sen. Susan Collins, R-Maine. The "Straight
A's" program was taken out of the bill on the House side, so
Frist said it was essential the provision stay in the Senate bill
when the bills go to conference. Sen. Christopher Dodd, D-Conn.,
who is sponsoring the amendment, said he still plans to move
forward on it.
Meanwhile, the Senate set aside another Dodd amendment today
after Republicans threatened a filibuster, delaying a potentially
explosive vote which Republicans said goes to the heart of
whether Congress wants federal or local control over schools. The
amendment would require states to "achieve comparability of
education opportunities" among their schools, and was watered
down from earlier, more specific language. "This is not radical,
this is common sense," Dodd said during floor debate. Senate
Health, Education, Labor and Pensions Chairman Kennedy said the
amendment does not interfere with the president's initiative and
encourages states to provide "additional focus and attention on
poor and underprivileged children." But Collins said it was an
"attempt by the federal government to set national standards." -
by April Fulton
-=-=-=-=-=-=-=-

SCHEDULE
Senate To Work Through Amendments On Education Next Week
The Senate next week will work through amendments to the
Elementary and Secondary Education Act reauthorization bill.
Majority Leader Daschle said votes are expected Monday, and that
he intends to finish the bill by the end of the week. The House
will return next week Tuesday for a series of suspension votes
after 6 p.m. On Wednesday and Thursday, the House is scheduled to
take up the Sudan Peace Act and the SEC fees reduction bill,
although the latter bill has been postponed several times. No
House votes are expected Friday.
-=-=-=-=-=-=-=-

POLITICS
Jackson Meets With Lawmakers To Discuss Electoral Reform, Other
Issues
Rev. Jesse Jackson was on Capitol Hill today meeting with
Senate Majority Leader Daschle, and Sens. Christopher Dodd, D-
Conn., and Russell Feingold, D-Wis., to discuss electoral reform
and other issues, including judicial nominations. "I'm sure
hearings on electoral reform will begin this summer," Jackson
said, citing a report to be formally released by the Civil Rights
Commission Friday showing that minority voters in Florida were
overwhelmingly "disenfranchised." A draft of that proposed report
leaked out earlier this week, prompting criticism from
Republicans that it was inspired by partisanship. The commission
consists of four Democrats, three independents and one
Republican. Jackson said, "We must even the playing field for
certain voters." Jackson also said he was taking another trip to
South Africa to deal with the spread of AIDS in that country.
-=-=-=-=-=-=-=-

POLITICS
Stenholm Expects Mark Up Of Emergency Aid To Farmers Next Week
House Agriculture ranking member Charles Stenholm, D-Texas,
told reporters today he expects the House Agriculture Committee
to mark up emergency aid to farmers for this crop year next week.
Stenholm also said the amount of aid for this year might be
higher than $5.5 billion in the FY02 budget resolution. That
money would come from a $79 billion, multi-year pool of funds
created to increase agricultural spending.
-=-=-=-=-=-=-=-

POLITICS
Daschle PAC To Hold Annual Gala
DASHPAC, the leadership PAC of newly minted Senate Majority
Leader Daschle, could not have picked a better time - fundraising
wise - to schedule its annual Washington bash than this evening.
Sources said the DASHPAC gala, which is being held at the 701
restaurant, is expected to pull in over $1 million and possibly
break the PAC's previous record. Tickets to tonight's gala are
going for $1,000 per individual, $5,000 per PAC or $10,000 for
corporate donors: the PAC has a $10,000 limit for contributors.
On K Street, lots of heavy lifting has been done by several blue
chip lobbyists, including Joel Jankowsky of Akin, Gump, Strauss,
Hauer & Feld; former Daschle staffer Rita Lewis of The Washington
Group; and former Texas Gov. Ann Richards of Verner, Liipfert,
Bernhand, McPherson & Hand.
-=-=-=-=-=-=-=-

POLITICS
Poll Finds Smith, Shaheen Tied
A new American Research Group poll shows Sen. Bob Smith, R-
N.H., in a statistical tie with Democratic Gov. Jeanne Shaheen,
but it also shows GOP Rep. John Sununu leading Shaheen by double
digits in a trial heat of the 2002 election. The poll, conducted
last Friday through Monday of 558 registered voters with a 4.26
point error margin, shows Smith leading Shaheen 42-41 percent,
with 17 percent undecided. But Sununu leads Shaheen 51-35
percent, with 14 percent undecided. Sununu has been contemplating
a challenge to Smith, who briefly left the Republican Party in
1999 during his unsuccessful presidential campaign, and the
Manchester Union-Leader reported today that many state
Republicans believe that Sununu has passed the point of no return
and will indeed challenge Smith in the GOP primary. However, a
recent invitation Sununu sent out for a June 10 fundraiser
headlined by former President Bush talks about a House re-
election campaign. In the letter, which refers to his 2000
Democratic challenger Martha Fuller Clark, Sununu wrote: "We had
a hard fought campaign last year. ... in less than six months
time, my opponent spent over $1 million ... already, she has
announced her candidacy for 2002. Our campaign next year will be
at least as tough, if not tougher." Sununu can transfer the money
to a Senate campaign if he decides to enter that race.
-=-=-=-=-=-=-=-

TRANSPORTATION
Airlines Offer More Voluntary Commitments To Improve Customer
Services
In an apparent effort to stave off potentially onerous
passengers' rights legislation, the airlines announced today they
are beefing up their voluntary commitments to improve customer
services and also are making those commitments legally
enforceable by including them in their customer contracts. House
Transportation and Infrastructure Chairman Young and
Transportation and Infrastructure Aviation Subcommittee Chairman
John Mica, R-Fla., applauded the industry's latest commitment,
saying airlines should not bear sole blame for air travel delays.
Citing weather difficulties as the leading cause of delay, Young
and Mica also singled out local opposition to runway construction
as a factor in air congestion and delay. Fairly narrow
passengers' rights legislation pending in the Senate would
strengthen the government's hand in holding the airline industry
to better standards and was expected to come to the floor for a
vote in that chamber. Among the airlines' latest commitments, are
pledges to offer the lowest fare available on the telephone
reservation system, to notify passengers of known delays,
cancellations and diversions and to meet passengers "essential
needs" during long on-aircraft delays.
-=-=-=-=-=-=-=-

AGRICULTURE
Veneman Defends Her Undersecretary Choice
Agriculture Secretary Veneman defended a nominee for a top
position at her department against allegations he was insensitive
to minorities and favored corporate farm interests, the
Associated Press reported. Veneman, speaking to reporters after a
ceremony honoring former Agriculture Secretary Glickman, called
Thomas Dorr, an Iowa farmer picked to be undersecretary for rural
development, a "visionary thinker." Dorr's nomination has been
criticized by groups representing minority farmers and small-
scale farming interests. At Iowa State University in 1999, Dorr
observed that an economically prosperous area of his state lacked
ethnic and religious diversity. He also has suggested the
creation of giant farming operations in which individual farmers
would work together. The Senate Agriculture Committee has not
scheduled a hearing on Dorr's nomination. Senate Agriculture
Chairman Harkin has not taken a position on Dorr. In a recent
letter to the committee, members of the Congressional Black
Caucus said they were shocked that a USDA nominee "would express
the belief that ethnic diversity is an impediment to economic
growth."
-=-=-=-=-=-=-=-

THE FINAL WORD
"We both have a clear understanding of important issues - like
endangered species. After all, he's a Democrat from Kansas and
I'm a Republican from California."
- Agriculture Secretary Veneman, speaking today at the formal
unveiling of the official portrait of former Agriculture
Secretary Glickman.



-=-=-=-=-=-=-=-

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