Quarterly Report
 
May 25, 2006
 

CAPITOL HILL

Since beginning the Second Session of the 109th Congress on January 1, both Chambers have tackled a number of issues, including the confirmation of a new Supreme Court Associate Justice; the lobbying scandal; and the annual appropriations process. Following Representative Tom DeLay’s resignation as Majority Leader in the House, Representative John Boehner (R-OH) was elected as the new Majority Leader. Since taking the helm, Representative Boehner’s diligence has enabled the House to pass bills reauthorizing the USA PATRIOT Act and the Office of National Drug Control Policy Reauthorization Act, a bill to fund the Low-Income Home Energy Assistance Program (LIHEAP), and the College Access and Opportunity Act. Meanwhile, the Senate has passed a bill reauthorizing the PATRIOT Act, a Congressional Budget Resolution, a Debt Limit Extension, a bill to fund LIHEAP, and the Legislative Transparency and Accountability Act (lobbying reform).

Success in early 2006 has not come without some roadblocks. Before the April Recess, the House failed to pass a Congressional Budget Resolution, which should have been passed before April 17. Moderates are refusing to support the Resolution because they claim that it fails to account for emergency spending and continues to limit discretionary funding to their financially-strapped districts. The House has not scheduled when it will return to the debate. Similarly, the Senate failed to pass an important measure prior to Recess: the Immigration Reform bill. Despite the efforts of Senator Majority Leader Bill Frist, conservative Republicans are unsatisfied with the bill’s current provisions and Democrats have refused to provide for effectual concessions through the amendment process. The Judiciary Committee is expected to report a revised bill by May 4. The House already passed a strict immigration reform bill in December 2005, though many of its provisions are not expected to remain through the conference process.

After returning from the April Recess, the House immediately began addressing a lobbying and ethics overhaul bill proposed by Representative Dreier (R-CA), Chairman of the Rules Committee. Despite a brief impasse, the bill is expected to go to the floor in early May. Meanwhile, the Senate has focused on the FY 2006 war and hurricane relief emergency supplemental package, which has involved contentious debate. On April 26, the Senate approved an amendment to the bill, which redirected nearly $2 billion for border security. However, the President has threatened to veto the bill if it exceeds $94.5 billion. The price tag is currently at $106.5 billion. A cloture vote, to limit debate, is scheduled for the first week in May.

FY 2007 Budget and Appropriations

The President’s Budget

On February 6, 2006, President Bush sent a $2.8 trillion FY 2007 budget to Congress that prioritizes military spending on the war against terrorism and proposes to trim domestic spending from two-thirds of all federal agencies. Funding for the Departments of State, Veterans Affairs, and Homeland Security are proposed to be increased while 141 programs are slated for elimination or substantial reduction. Eleven agencies would see a decrease in total amounts, with the Departments of Transportation, Justice and Agriculture impacted most.

FY 2007 Bureau of Indian Affairs (BIA). Under the President’s proposed budget, the BIA would receive $2.2 billion, $52.4 million less than the FY 2006 amount. The Bureau chose to focus resources in the areas of trust and education, with over $11 million proposed to be added to the management of trust resources, while education programs under the Operation of Indian Programs (OIP) are decreased by $7.3 million. Significant decreases are also proposed for construction and welfare assistance. Johnson O’Malley grants were eliminated entirely. However, Law enforcement is slated for an $8.2 million increase. It is expected that these funds will be used in high risk areas. Contract support costs are also proposed for an increase in funding, adding $19 million to the budget.

FY 2007 Indian Health Service. Under the President’s budget, the Indian Health Service (IHS) would receive $4 billion, a net increase of $124 million over the FY 2006 amount. The increase includes elevated funding for clinical services, preventive health care, contract support costs and facilities and environmental health support. There are a few significant decreases, including a decrease in Health care facilities construction funding by more than 50%, a $20 million cut. In addition, the Urban Indian Health program was eliminated, which has caused great controversy. During the hearing before the House Appropriations Subcommittee on Interior, Environment and Related Agencies on March 8, Chairman Taylor (R-NC) expressed his intent to restore or increase funding for IHS.

FY 2007 Department of Justice. The President requested $19.5 billion, a $1.5 billion decrease from the FY 2006 enacted amount, for the Department of Justice (DOJ). Drug Courts grants, while not available to tribes alone, would see an increase of nearly $60 million under the proposed budget. A significant portion of the funding has gone to tribal governments in the past. Meanwhile, the President requested $3 million for the Partnerships for Indian Communities Discretionary Grant Program, which would maintain its funding current funding level.

FY 2007 Department of Housing and Urban Development. The Department of Housing and Urban Development’s (HUD) proposed budget is $33.6 billion, a $700 million decrease in funding from the FY 2006 enacted amount. As stated at a hearing before the Senate Committee on Indian Affairs on February 14, 2006, approximately $696 million is specifically for Native American and Native Hawaiian housing and community development. Just over $620 million of that amount is slated for allocation through the Indian Housing Block Grant Program, a $4 million proposed decrease from last year’s enacted amount.

Program/Agency	FY2007 Request	Change from FY2005 Enacted
Department of the Interior	$10.5 billion	-$332.2 million
Bureau of Indian Affairs (BIA)	$2.2 billion	-$52.4 million
* BIA Construction	* $215 million	* -$56.5 million
* BIA Welfare Assistance	* $74.2 million	* -$11 million
* BIA Education	* $639.1 million	* -$7.3 million
* BIA Johnson O'Malley Grants	* $0 (eliminated)	* -$16.4 million
* BIA Law Enforcement	* $201.6 million	* +$8.2 million
* BIA Contract Support Costs	* $151.6 million	* +$19 million
Office of Special Trustee	$244.5 million	+$21.7 million
* Land Consolidation	* $59 million	* +$25.4 million
Department of Health and Human Services	$65.9 billion	-$1.4 billion
Indian Health Service (IHS)	$4 billion	+$124 million
* IHS Clinical Services (CS)	* $3 billion	* +$147 million
* CS Contract Support Costs	* $554 million	* +$37 million
* IHS Urban Indian Health Program	* $0 (eliminated)