Legislative business for the second session of the 112th Congress begins in the House on January 17 and in the Senate on January 23. President Obama will deliver his State of the Union address before a joint session of Congress on January 24.
With a number of important issues still unresolved, the combativeness of 2011 may be just a warm-up for what lies ahead, as lawmakers return to an even more partisan election year environment. Congressional Digest will be reporting on these and other topics in the year ahead.
Payroll Tax Extension
Before Congress adjourned for the holidays, House Republicans abandoned their opposition to a two-month extension of the 4.2 percent Social Security payroll tax, which had been set to revert to 6.2 percent December 31. The deal passed by Congress and signed by the President also extends for two months long-term unemployment benefits. This means that negotiators have until the end of February to hammer out a compromise. Although members of both parties say they support a year-long extension, the conflict is over how to pay for it. Senate Democrats have proposed a surtax on incomes over $1 million, while House Republicans want to freeze Federal salaries. If lawmakers don’t reach an agreement, about 160 million workers will see a tax increase and about 3 million people will see their unemployment benefits end.
Debt Limit
The August 2011 debt deal that created the “super committee” that failed to forge a deficit reduction agreement last fall also included a new process for raising the debt ceiling. Under the deal, the President must submit to Congress a certification that government borrowing is within $100 billion of the current debt limit and that the ceiling must be increased. Congress then has 15 days to pass a joint resolution disapproving any increase; otherwise, it happens automatically.
Even though borrowing came within the $100 million range at the end of December, the White House acquiesced to Congress’s request that the President wait until Congress was back in session to submit the debt ceiling increase request. The President will ask for $1.2 trillion, which would raise the federal debt limit to $16.4 trillion. After that the White House would not have to seek further increases before the November election.
Online Piracy
Legislation to crack down on websites that traffic in stolen digital content or counterfeit goods has moved quickly through House and Senate committees, but opponents have formed coalitions to fight against the measure when it reaches the floor. The Senate is currently scheduled to vote on January 24 on a motion to take up S. 968, the Protect IP Act, sponsored by Senate Judiciary Chairman Patrick Leahy (VT-D). For more on this issue, see the November 2011 Congressional Digest on “Internet Piracy.”
Farm Bill
The current farm bill ― the Food, Conservation, and Energy Act of 2008 ― is set to expire September 30 of this year. House and Senate Agriculture committees will soon resume hearings on aspects of the bill and may use spending cuts proposed by the failed deficit reduction “super committee” as a starting point for drafting legislation. The super committee recommended savings of $23 billion over 10 years in agriculture programs. The commodity section of the bill, which deals with farm subsidies and risk management, is expected to be the most contentious.
Postal Service
The U.S. Postal Service is facing bankruptcy and even with planned budget reductions of $3 billion is expected to lose $14 billion this year. House and Senate committees have approved separate plans to overhaul the Postal Service so that it can avoid bankruptcy, but outstanding issues remain ― including whether to eliminate Saturday mail delivery. The Postal Service has proposed its own plan to close more than half of its mail-processing centers and is also considering closing almost 3,700 post offices, a move that does not require congressional approval. Congress has asked the Postal Service to hold off on implementing its plan until May 15 in hopes that the financial problems can be addressed through legislation instead.
