Update from Washington, D.C.
February 14, 2019
Congressional Leaders File Fiscal Year 2019 Appropriations Legislation; House Committee Prepares for Action on Homelessness and Cannabis Banking
After reaching a deal on border security, House and Senate lawmakers are expected to vote later today on a massive omnibus appropriations package (HJ Res 31) that would fund the government through September 30. Among other things, the measure would provide $1.38 billion in new spending for 55 miles of new fencing along the Rio Grande Valley of the U.S.-Mexico border, far short of the $5.7 billion President Trump had requested.
Aside from the border wall funding, a key sticking point that emerged in the final stages of the budget negotiations was funding for immigration detention beds. The final legislation would provide resources to detain an average daily population of 45,274 immigrants. Both sides have claimed victory on this issue, as Democrats expect the population of detainees to drop to 40,520, while GOP lawmakers argue that the administration can unilaterally increase the detention numbers by reprogramming funds from other accounts.
The agreement also includes funding for various other border security measures, including $564 million to install inspection equipment at ports of entry, $113 million for additional air and marine assets, $100 million for new border security technology, $77 million for opioid detection equipment, and $59 million for 600 new Customs officers. In addition, the legislation would provide $415 million for enhanced medical support, transportation, food and clothing for detained migrants, and over $30 million for family case management.
The nearly 1,200 page spending bill, which is backed by congressional leaders in both parties, also would provide fresh spending authority for the seven unfinished fiscal year 2019 appropriations bills, including the Agriculture; Commerce-Justice-Science; Financial Services; Homeland Security; Interior and Environment; State and Foreign Operations; and, Transportation-Housing and Urban Development funding measures.
The compromise legislation, which would avert another partial government shutdown, is expected to pass both chambers before this Friday’s midnight deadline. While administration officials have cautioned that no final decision has been made, President Trump is expected to sign the legislation into law. It should be noted that the president has not ruled out declaring a national emergency to construct a border wall without congressional approval, though such a move would likely face significant legal hurdles. Trump also may attempt to shift money away from other Homeland Security accounts to fund construction of a wall, but this would require permission from top appropriators in both chambers.
House Panel Focuses on Homelessness
The House Financial Services Committee, which is chaired by Congresswoman Maxine Waters (D-CA), convened its first hearing of the 116th Congress and the panel’s first full committee hearing ever to focus solely on the issue of homelessness. In her opening remarks, Chairwoman Waters noted that there are nearly a half million homeless people in the United States, with the number experiencing chronic homelessness on the rise. She also used the hearing as an opportunity to highlight draft legislation that she is crafting, which would provide $13.27 billion in new funding for various programs administered by the Department of Housing and Urban Development (HUD). It should be noted that the committee also discussed draft legislation introduced by Representative Scott Peters (D-CA) that would address the issue of homeless veterans.
During the three-hour hearing, the panel heard testimony from six experts on the issue, including a witness from the Corporation for Supportive Services, the National Alliance to End Homelessness, the National Coalition for Homeless Veterans, the True Colors Fund, the National Coalition for the Homeless, and a research fellow from Syracuse University. Among other things, witnesses described the magnitude of the problem, its root causes, and closely examined the populations that have been disproportionately impacted.
More information about the hearing, including testimony, additional background information, as well as an archived webcast can be found here.
Financial Services Hearing on Cannabis Banking
On February 13, a House Financial Services subcommittee held a hearing to examine the obstacles faced by state-legal cannabis businesses in gaining access to banking services. Despite its legal status in California, one of the most significant hurdles for the cannabis industry continues to be access to banking services. Due to the conflict between state and federal law, financial institutions have generally been reluctant to open accounts for such businesses out of fear that it may be perceived as a form of money laundering. This forces legal cannabis businesses to deal in large amounts of cash, which creates a public safety hazard in the communities where they operate. It also makes it more difficult for state and local governments to track revenues for taxation purposes.
Congressman Ed Perlmutter (D-CO), who spoke on the first panel of witnesses, urged the committee to consider draft legislation – the SAFE Banking Act – that he intends to introduce later this year. Specifically, the bill would help provide cannabis-related businesses with legal access to banking services. It also would exempt depository institutions and their employees from federal prosecution or investigation solely for providing banking services to a state authorized cannabis-related business. This safe harbor is intended to provide certainty for financial institutions to offer their products and services to well-regulated cannabis-related businesses.
In addition to Congressman Perlmutter, the committee heard from California State Treasurer Fiona Ma, as well as a witness from the Law Enforcement Action Partnership (LEAP), Smart Approaches to Marijuana, the owner of a DC-based medical cannabis dispensary, the Credit Union National Association, and the Independent Community Bankers of America. With the exception of Mr. Jonathan Talcott, who testified on behalf of Smart Approaches to Marijuana, all of the witnesses expressed support for the SAFE Banking Act.
More information about the hearing, including testimony, additional background information, as well as an archived webcast can be found here.
Senate Gives Final Approval to Public Lands Package
On February 10, the Senate overwhelmingly approved a broad public lands package (S 47) by a vote of 92-8. The legislation, which is the product of negotiations between House and Senate committee leaders, combines more than 100 bills from the previous Congress. As previously reported, the 662-page measure would permanently reauthorize the Land and Water Conservation Fund (LWCF). The fund, which expired on September 30, supports state and federal land acquisition, state recreation planning grants, and other outdoor recreational programs. It should be noted that LWCF is largely funded by federal receipts from offshore oil and gas leases.
In addition to renewing LWCF, S 47 would require the U.S. Forest Service and Bureau of Land Management to facilitate access to the federal lands they manage for recreational hunting and fishing. The bill would declare federal lands open for such activities, unless otherwise prohibited by law or the managing agency determines closing an area is necessary. If enacted into law, any determination to close off these lands would require a public review process and consultation with local authorities.
Finally, and of particular interest to California, the legislation includes the text of the California Desert Protection and Recreation Act as sponsored by Senator Dianne Feinstein (D-CA) and Representative Paul Cook (R-CA) (S 67 and HR 376, respectively). Among other things, the legislation would update and expand protections for over 700,000 acres of the California desert.
Across Capitol Hill, House Natural Resources Chairman Raúl Grijalva (D-AZ) has called on House leaders to provide for swift consideration of the legislation in the lower chamber. With such widespread support, the measure could be placed on the suspension calendar, an expedited legislative maneuver that requires a two-thirds majority. With Congress on recess next week, the earliest the measure could be considered is the week of February 25.