This Week on the Hill
The Senate returns today and the House returns tomorrow, as both chambers must pass a bill to keep the government funded after the current continuing resolution (P.L. 114-223) expires on December 9. Another continuing resolution is expected, which would likely run through March 2017, but no bill has been introduced at this time.
The Senate returns today and first votes are scheduled for tomorrow, when the Senate will consider S. 2873, which would require the Department of Health and Human Services to study the possible use of distance-education technologies to provide health care.
The House returns tomorrow and will consider 16 bills under suspension of the rules, including S. 546 related to emergency response of hazardous material rail accidents and S. 2577 related to the reauthorization of several criminal justice programs. For Wednesday and the balance of the week, the House is scheduled to consider 13 bills under suspension of the rules, one bill subject to a rule, and may vote on a newly released version of the 21st Century Cures Act (H.R. 6). This bill is intended to spur development of new medical treatments, and would include almost $5 billion for the National Institutes of Health, provide $1 billion in grants to states to address the opioid crisis, and address the country’s mental health crisis.
Federal Judge Blocks Administration’s Overtime Rule
On Tuesday a judge in the U.S. District Court for the Eastern District of Texas issued a preliminary injunction to halt implementation of the Department of Labor’s overtime rule, which was slated to take effect on December 1. The final rule would have increased the minimum salary level for exempt employees from $23,660 annually to $47,476 annually and included an automatic indexing mechanism that adjusts the minimum salary level every three years. The rule was challenged by attorneys general in 21 states and several business groups. At this time, there is no timeline for additional hearings on the case. A link to the injunction can be found here under the case of State of Nevada, et al vs. United States Department of Labor, et al.
HHS Publishes Final FY2018 Federal Matching Rates for Medicaid and CHIP
The U.S. Department of Health and Human Services published final fiscal year 2018 Federal Medical Assistance Percentages (FMAPs), enhanced FMAPs, and disaster-recovery FMAP adjustments for fiscal year 2018. These percentages will be effective from October 1, 2017 through September 30, 2018. The department also released the increased eFMAPs for the Children’s Health Insurance Program (CHIP) as authorized under the Affordable Care Act for fiscal years 2016 through 2019. These rates will be used by the department in determining the amount of federal matching for Medicaid, Temporary Assistance for Needy Families (TANF) Contingency Funds, Child Support Enforcement collections, Child Care Mandatory and Matching Funds of the Child Care and Development Fund, Title IV-E Foster Care Maintenance payments, Adoption Assistance payments, and Guardianship Assistance payments.
Education Department Releases Final Accountability Regulations under ESSA
Today the U.S. Department of Education (ED) released the final regulations to implement the accountability, data reporting, and state plan provisions of the Every Student Succeeds Act. According to the release, the final regulations will give states flexibility to incorporate new measures of school quality or student success into accountability systems, require meaningful action where whole schools or groups of students within schools are struggling yet allow states to work with stakeholders to choose locally designed strategies, ensure that parents and stakeholders have access to clear and robust information about their students and schools, and give states the flexibility to think holistically about how to improve outcomes for all students. The final regulations also extend the timeline for states to identify schools for support and improvement to the 2018-19 school year (previous deadline was the 2017-18 school year). A fact sheet on the final regulations can be found here and a timeline for identification of schools for support and improvement can be found here.
CMS Issues Final Rule on Eligibility Changes under the Affordable Care Act
The Centers for Medicare & Medicaid Services (CMS) issued a final rule that includes finalized Medicaid and the Children’s Health Insurance Program (CHIP) provisions associated with the eligibility changes under the Affordable Care Act. Other provisions in the rule include coverage for former foster care youth, optional eligibility pathways and financial methodologies for medically needy individuals, and verification of citizenship and immigration status. CMS also issued an informational bulletin about a Medicaid demonstration project opportunity under section 1115 to allow Medicaid coverage for former foster care youth who moved to another state.
Education Department Releases Non-Regulatory Guidance for Fiscal Changes under ESSA
Last week the U.S. Department of Education (ED) released non-regulatory guidance for fiscal changes and equitable services requirements under the Elementary and Secondary Education Act, as amended by the Every Student Succeeds Act (ESSA). The ESSA makes a number of changes to certain fiscal requirements that existed in the Elementary and Secondary Education Act, including changes to Title I, Part A within-state allocations; Title I within-district allocations; Title II, Part A allocations; maintenance of effort requirements; and transferability requirements. The guidance discusses the specific changes and is designed to help state educational agencies, local educational agencies, and schools in implementing ESSA. Additional information on ESSA can be found here.
SAMHSA Announces Funding for Treatment Courts and Behavioral Health
The Substance Abuse and Mental Health Services Administration (SAMHSA) announced the award of up to $46.6 million over three years for treatment drug court programs for people involved in the criminal justice system with substance use disorders and co-occurring mental and substance use disorders. First, up to 41 grantees will receive up to $325,000 per year to expand and/or enhance substance use disorder treatment services in existing adult problem solving courts. Second, up to 10 grantees will receive up to $325,000 per year to build and/or expand drug court capacity at state, local and tribal levels. SAMHSA also announced it is accepting applications for grants to improve behavioral health outcomes for children and youth with serious emotional disturbances and their families. The agency expects to fund 5-15 grants of $1-3 million per year for up to four years and eligible applicants include state governments, Indian tribes or tribal organizations, local governmental units, the District of Columbia and U.S. territories. Applications are due January 3.
Guidance Released on State Maintenance of Effort Expenditures for TANF
The U.S. Department of Health and Human Services Office of the Administration for Children and Families recently released guidance for state agencies related to state maintenance-of-effort (MOE) expenditures for the Temporary Assistance for Needy Families (TANF) program. The guidance provides information to TANF agencies to clarify the appropriate application of the “new spending test,” which limits a state’s ability to count state MOE expenditures for certain programs that existed in fiscal year 1995 to the amount that exceeds the fiscal year 1995 expenditures. Under the guidance, the office considers a TANF MOE-funded program whose central purpose is the same as it was in fiscal year 1995 not to be “new” for the purposes of the “new spending test.” This means that incidental changes, name changes, funding level, hours of operation, service additions, or other changes that do not alter the central function or purpose of a program do not trigger the ability of the state to include the total program expenditures as MOE. Further, the state has the responsibility to demonstrate that a program is fundamentally “new” for the purposes of the new spending test.
Labor Awards $111 Million in America’s Promise Grants
Last week the U.S. Department of Labor announced the award of more than $111 million in America’s Promise grants to 23 regional workforce partnerships in 28 states to connect more than 21,000 Americans to education and in-demand jobs. America’s Promise grants are designed to accelerate the development and expansion of regional workforce partnerships committed to providing a pipeline of skilled workers in specific sectors. Grantees will focus on in-demand industries such as information technology, healthcare, advanced manufacturing, financial services and educational services.
GAO Releases Report on State WIOA Planning
A recent report from the U.S. Government Accountability Office (GAO) examined planning approaches for serving job seekers and employers in five selected states under the Workforce Innovation and Opportunity Act (WIOA). GAO examined approaches the selected states have taken to develop plans for implementing career pathways, sector partnerships, and regional planning strategies, as well as challenges related to these approaches. The five states studied by GAO were California, Colorado, Kentucky, Ohio and Pennsylvania. The report found the states used three main approaches: built on prior experience with career pathways and sector partnerships; increased the involvement of stakeholders in the planning process; and used multiple sources of labor market information to identify employer needs and draw the boundaries of the new regions required under WIOA. Additional information on the WIOA program can be found here.
Highway Safety Administration Issues Distracted Driving Guidelines for Portable Devices
On Wednesday the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) released proposed voluntary guidelines to help address driver distraction caused by mobile and other electronic devices in cars. According to the proposed guidelines, in 2015 ten percent of the 34,092 traffic fatalities involved one or more distracted drivers. This release covers the second phase of voluntary guidelines; the first phase was released in April 2013 and focused on devices or systems built into the vehicle. The proposed guidelines are designed to encourage electronic device developers to design products that, when used while driving, reduce the potential for driver distraction. Currently no safety guidelines exist for portable device technologies when they are used during driving. Comments can be submitted for 60 days following publication in the Federal Register.
Recently Released Reports
Accelerating Opportunity for Veterans: A Governor's Blueprint for Pathways to Veterans' Civilian Licensing and Certification, National Governors Association
Highlights of a Forum: Preventing Illicit Drug Use, U.S. Government Accountability Office
2015 Health Care Cost and Utilization Report, Health Care Cost Institute
The 2016 Annual Homeless Assessment Report to Congress, U.S. Department of Housing and Urban Development
Economic News
Consumer Price Index Increased in October as Real Hourly Earnings Also Increased
The U.S. Bureau of Labor Statistics released new data on the Consumer Price Index for All Urban Consumers (CPI-U) for October 2016, showing the CPI-U increased 0.4 percent on a seasonally adjusted basis. Over the last twelve months, the all items index increased 1.6 percent before seasonal adjustment, driven largely by increases in the shelter and gasoline indexes. The index for all items less food and energy rose 0.1 percent in October, while the energy index rose 3.5 percent, its largest advance since February 2013. The index for all items less food and energy rose 2.1 percent for the 12 months ending October. Meanwhile, real average hourly earnings for all employees increased 0.1 percent from September to October, seasonally adjusted. This result stems from a 0.4 percent increase in average hourly earnings being nearly offset by a 0.4 percent increase in the CPI-U.
Federal Reserve Holds Interest Rates Steady for Now
At its November meeting, the Federal Open Market Committee voted 8-2 to maintain the target range for the federal funds rate at .25 to .50 percent. The committee noted information received since the September meeting indicates that the labor market has continued to strengthen and that growth of economic activity has picked up from the modest pace seen in the first half of this year. Although there has been little change in the unemployment rate, job gains have been solid. Household spending has been rising moderately but business fixed investment has remained soft; meanwhile inflation has continued to run below the Committee’s 2 percent longer-run objective. Looking at future possible adjustments, the statement says that “the case for an increase in the federal funds rate has continued to strengthen but the Committee has decided, for the time being, to wait for further evidence of continued progress towards its objectives.” The two members who voted for raising the federal funds rate preferred to raise the target range to .50 to .75 percent.