Long-term Funding Extension Signed Into Law
On Thursday, Feb. 15—just in time to avoid a partial government shut down—the President signed and passed into law a joint-funding resolution to last through Sept. 30, 2007. The Senate approved the resolution the day before; the House had passed the measure on January 31st.
The $463 billion joint-resolution would provide funding for all federal programs whose FY2007 appropriations bills were not completed last year. It includes funding levels for job training, education, child care and many other services typically funded by the Labor-HHS-Appropriations bill that support women in economic transition and their families. Because Congress was unable to finalize its FY2007 funding decisions, these programs have been kept running through several short-term funding extensions since last October, the beginning of the 2007 fiscal year.
Additional funding for certain programs that help women and families
The joint-resolution is considered a “long-term funding extension,” because for most programs, it simply extends funding at FY2006 levels. However some programs were targeted for additional funding beyond the amount they received last year. Several of these programs benefit women and families who are working towards economic self-sufficiency. The joint-resolution includes:
A $260 increase in the maximum Pell Grant , from $4,050 to $4,310. The current maximum Pell grant is $4,050 and only covers a small percentage of actual tuition costs.
A $104 million increase for Head Start to prevent programs from having to reduce the number of children they enroll.
A $1.4 billion increase for Section 8 housing to provide for over 200,000 housing vouchers currently in use by individuals and families.
No earmarks
In order to afford these and other increases and to stay within the budgetary limits agreed to by Congress last year, House and Senate leaders chose to eliminate all earmarks from the joint-resolution: including those included in the draft FY2007 Labor-HHS-Education bills. Some local women's programs rely on earmarks—funds set aside by Members of Congress for individual projects, locations, or institutions—to provide critical services, especially in the absence of dedicated state or federal funding streams. Unfortunately, those programs who worked with their Members of Congress to secure earmark funding in this year's Labor-HHS-Education appropriations bill will need to make alternative plans for their upcoming budgets.
Congress Orders Administration to Halt Regulatory Changes to WIA
As part of the joint-funding resolution, Congress included a provision prohibiting the Department of Labor from finalizing or implementing any rule changes to the Workforce Investment Act (WIA) until Congress passes legislation reauthorizing WIA. Essentially, this action nullifies the recent proposed changes to the WIA program, which were released by the Department of Labor on December 20th. Several Members of Congress had opposed the proposed regulations because they weakened local control of job training programs and because they felt that the Department had overstepped its authority and was trying to do Congress' job through the regulatory process.
Minimum Wage Update
The roller coaster ride to passage of a much needed minimum wage increase continued in Congress last week, as the House of Representatives passed its own small-business tax-cut package on Friday, February 16th.
Earlier this year, the House had passed legislation to increase the minimum wage to $7.25 in three 70-cent increments over the course of two years. The Senate followed several weeks later, but in order to garner the 60 votes needed for successful passage, attached its minimum wage legislation to a package of tax breaks for small businesses. However, because an arcane constitutional rule specifies that all tax legislation must originate in the House—and because many Members of the House opposed the size and scope of the Senate tax-breaks—the House decided to write its own tax-cut companion bill, rather than approving the Senate measure.
Now, the House has passed a tax-cut package that differs from the Senate bill in several key respects. Most notably, it would include about $7 billion fewer in cuts. This means that the joint House-Senate conference committee that will meet to negotiate compromise legislation in late February is in for a contentious debate. And, low-wage workers—including the more than 9 million women who would benefit from the wage increase—will continue to wait for a much deserved raise.
Congress and the Insider Will Return after President's Day Recess
Congress adjourned for the President's Day Recess at the end of last week. They will return on February 26th. The Economic Equity Insider, which is published only when Congress is in session, will return on March 5th.
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