This Week in Congress

Congress returns from recess, and will deal with the student loan interest rate this week, along with a spending bill for federal energy and water programs.

In the Senate —

The Senate adjourned in late June without passing a bill dealing with student loans, but is hoping to make progress this week. Two bills will be considered:

  • The Keep Student Loans Affordable Act (S 1238): would lower the 6.8% interest rate on subsidized student loans back down to 3.4% for another year.
  • – The Bipartisan Student Loan Certainty Act (S 1241): would set the rate at that of the 10-year Treasury note plus 1.85 percent. –

The Scoop: Neither of these bills has yet to be summarized on THOMAS.  The bipartisan bill is purported to be much closer to a version passed by the House in June. Passing it in the Senate would likely set up a House-Senate conference that could work to reach an agreement on a final bill. Passage of the one-year extension, however, could delay progress on the issue further, as House Republicans have indicated they are not likely to advance a simple extension.

In the House — 

In the House, members will deal with a major spending bill for 2014:

– The Energy and Water Development and Related Agencies Appropriations Act(HR 2609):  This bill spends about $30 billion on energy and water programs in the federal government, and is nearly $3 billion below the spending level for 2013.

The House will also consider:

  • The National Strategic and Critical Minerals Production Act (HR 761): aimed at boosting the production of strategic “rare earth” elements. (Summary on Thomas)
  • The FOR VETS Act (HR 1171): donating federal property to veterans’ organizations. The “Formerly Owned Resources for Veterans to Express Thanks for Service Act of 2013” or the “FOR VETS Act of 2013” if passed, would authorize the transfer of federal surplus property to a state agency for distribution, through donation, within the state, for purposes of education or public health for organizations whose membership comprises substantially veterans, and whose representatives are recognized by the Secretary of Veterans Affairs (VA) in the preparation, presentation, and prosecution of claims under laws administered by the Secretary.
  • The Financial Competitive Act (HR 1341): requiring a study of differences in derivative markets in the U.S. and overseas.   I call this one the “Pass the Buck” law, in that it would
    • Direct the Financial Stability Oversight Council to study and report to Congress on the likely effects that differences between the United States and other jurisdictions in implementing the derivatives credit valuation adjustment capital requirement would have on: (1) U.S. financial institutions that conduct derivatives transactions and participate in derivatives markets, (2) end users of derivatives, and (3) international derivatives markets.
    • Require the study to recommend steps Congress and the constituent agencies of the Council should take to: (1) minimize any expected negative effects on U.S. financial institutions, derivatives markets, and end users; and (2) encourage greater international consistency in implementation of internationally agreed capital, liquidity, and other prudential standards.
  • The Audit Integrity and Job Protection (HR 1564): easing regulations that require public companies to rotate their external auditors. This bill would:
    • Authorizes the Secretary of the Interior, through the National Park Service (NPS), to make improvements to a support facility, including a visitor center, for a National Historic Site administered by the NPS if such project: (1) is conducted within the agency’s existing budget, (2) is subject to a 50% non-federal cost sharing requirement, and (3) is conducted for a unit of the NPS which has the authority to establish a support facility outside the park’s boundary.
    • Allows the NPS to operate and use all or part of a support facility, including a visitor center, for such a Site: (1) to carry out the duties associated with the administration and support of such Site, and (2) only in situations where there is an agreement between the Secretary and the commissioners of the county or parish in which the facility is located.

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