President Signs Health Care Bill Today, Senate To Begin Reconciliation
President to sign health care bill today, prepares victory lap strategy. LAT: "Obama is to sign the healthcare bill in a ceremony Tuesday. Two days later, he'll travel to Iowa City, where as a presidential candidate he had unveiled his healthcare proposal. Iowa is only the first stop in what will be a concerted White House effort to explain a bill that many Americans don't understand ... Obama's Cabinet will also be part of the effort to reshape public perceptions, with events tailored for cities and rural areas."
GOP loses first round with Senate parliamentarian, can't stop reconciliation process. CNN: "Senate sources in both parties tell CNN the Senate parliamentarian told Republicans he will not rule in their favor, if they try to stop the health care fixes bill ... from even coming to the Senate floor."
GOP plans a "poison pill" strategy to derail reconciliation bill: "Democratic leaders are telling their senators that each Republican amendment is a 'poison pill' that would derail the process ... Senate Republicans are planning an onslaught of politically sensitive amendments to a health care reconciliation bill..."
Time's Jay Newton-Small lists "5 Reasons Republicans Should Let Go of Health Care": "What happens when, as President Obama put it to the Democratic House Caucus on Saturday, 'lo and behold nobody is pulling the plug on granny'?"
Dems will challenge GOP to get specific about repeal. NYT: "[Sen. Robert] Menendez said that he was advising Democratic Senate candidates to challenge opponents about whether they would vote to repeal the bill — particularly, an expansion of prescription drug benefits for the elderly or requirements that insurance companies not deny coverage based on pre-existing conditions. 'We will challenge them,' he said. 'What parts of this bill do you want to repeal?'"
Conservative state attorney generals embark on futile quest to overturn health care law. NYT: "Officials in a dozen states who oppose the health care bill say they hope to block it in court by arguing that requiring people to buy health insurance is an unprecedented intrusion by the federal government into people’s lives ... But constitutional scholars suggest that such cases would likely amount to no more than a speed bump for health care legislation ... Congress’s sweeping authority to regulate the nation’s economy ... has been clear since the 1930s."
Pollster Stan Greenberg finds public opinion turning towards reform in NYT oped: "...favorability ratings among independents for incumbent Republican members of Congress had dropped by 11 points in the last month ... [they] may have been stirred by Senator Jim Bunning’s one-man filibuster that stopped work sites and unemployment checks. They may have noticed the Republicans’ last stand for the insurance companies, just as one of the largest insurers, WellPoint, raised its rates 39 percent."
W. Post explores immediate changes to insurance regulations: "...health insurance will evolve into something more closely resembling a publicly regulated utility: It will have a guaranteed base of customers, thanks to the coverage requirement, but it will be bound by much tighter restraints than today's individual insurance market, where regulations vary widely from state to state."
Ezra Klein not worried insurers will quickly jack up rates before reforms kick in: "Starting in 2011, insurers will have to spend at least 80% of every premium dollar on medical care. If they don't, they have to rebate the difference to consumers ... In other words, rate hikes between now and 2014 would just mean rebates for the affected consumers."
Right-wing campaign to throw bricks and vandalize congressional offices in wake of health care reform. CNN: "Democratic offices in at least three states have reported instances of vandalism that party members say possibly were tied to Sunday's historic vote on health care reform ... The Alabama-based blog, called 'Sipsey Street Irregulars,' says it has launched a so-called 'window war' against Democrats... Blogger Michael B. Vanderboegh [said] 'If we can get across to the other side, that they are within inches of provoking a civil war in this country, then that's a good thing.'"
Student Loan Reform Hinges On Reconciliation Passage
Dem Sen. Blanche Lincoln will oppose reconciliation bill to side with banks over students. FireDogLake's David Dayen: " She’d rather reward banks and keep private subsidies flowing than offer that money to students. As a result, she would deprive the students of Arkansas $349 million dollars over ten years, helping as many as 58,000 college-age kids get a higher education. There’s also over $31 million dollars for Arkansas colleges and universities which Lincoln would like to leave on the table."
Dem Sen. Ben Nelson also will oppose reconciliation on behalf of banks that fleece student borrowers. The Hill: "Nelson said he opposed the package because the student lending bill would make the federal government the originator of student loans, replacing private lending institutions. Nelson said that would cost 30,000 jobs." EARLIER Wonk Room debunks attack on jobs: "For that much job loss to occur, every single position at every single company would have to vanish. No one seriously thinks that will happen."
New CAF report details ties between Nelson, Lincoln and four other anti-reform Dems to private student lending industry. Report author Kevin Connor: "Sallie Mae's PAC maxed out to Senator Blanche Lincoln's primary account in 2009, and Nelnet, another lender, gave $4000 to Ben Nelson in 2009 alone, on top of another $15,000 it has given him over the course of his career ... The report also identifies six of these Senators' former staffers who are now lobbyists for the student loan industry."
Click here to tell your Senators to back student loan and health care reform in Senate reconciliation bill.
Dodd Bill Zips Through Committee, But Compromises Loom
Dodd bill cleared by banking committee on party-line vote in under an hour, as GOP saves amendments for later. The Hill: "Dodd wanted to pass legislation out of committee before the Easter recess to give the full Senate more time to consider the measure. Senate Majority Leader Harry Reid (D-Nev.) wants to pass the financial overhaul through the Senate by the Memorial Day recess. Senate Democrats will need to attract at least one Republican vote for the bill to overcome a possible filibuster. The bill’s future likely will hinge on private negotiations between the two parties."
Senators believe quick mark-up will improve chances for bipartisan agreement. Roll Call: "According to [Sen. Mark] Warner and others, Senators can focus on reaching a bipartisan deal now that the markup is behind them. 'This does help. It helps because it avoids what can be an acrimonious [markup] process,' said Chairman Chris Dodd (D-Conn.) Standing side by side after the brief Monday afternoon markup, Dodd and ranking member Richard Shelby (R-Ala.) reaffirmed their commitment to reaching a deal."
Baseline Scenario's Simon Johnson criticizes Geithner speech for delusion regarding "too big to fail": "Mr. Geithner’s Treasury (and Senator Dodd’s bill) continue to rely on the complete illusion that a resolution authority (i.e., an augmented bankruptcy process for banks) based on US law will do anything to help manage the failure of a large cross-border financial institution. It simply will not ... someone needs to give another speech, walking us through – step-by-step – how exactly this resolution authority would have prevented the cross-border chaos that followed the collapse of Lehman in September 2008 ... "
Crackdown on Wall Street bonuses did not result in mass exodus. NYT: "Of the 104 senior executives whose pay was set by the federal pay regulator in the last two years, 88 executives, or nearly 85 percent, are still with the companies even though their pay was drastically cut back ... Kenneth R. Feinberg, the special master for executive compensation, is expected to release those findings on Tuesday when he formally approves the 2010 pay packages for last year’s 25 highest earners at five companies that received multiple bailouts."
Geithner to testify to House today on Fannie/Freddie reform. W.Post: "The Obama administration plans to begin a public debate next month on how best to overhaul Fannie Mae, Freddie Mac ... Among [Geithner's principles] are that consumers must have access to 30-year mortgages that are easy to understand and that the new finance system not pose risks to the entire financial system, according to his testimony. Geithner will also make it clear that Fannie Mae and Freddie Mac will not return to being shareholder-owned companies with an implicit government guarantee. "
LAT suggests WH not all that eager to quickly tackle what would replace Fannie and Freddie: "Administration officials had promised last year they would offer a plan in February. Now Geithner has said that a detailed plan won't come until next year ... Fannie Mae and Freddie Mac still are playing a large role in housing finance because banks remain hesitant to lend, so there are strong economic and political reasons Congress and the Obama administration need to move slowly..."
George Magnus calls on China to embark on major currency and monetary reforms to save itself and the global economy, in FT oped: "China’s monetary policy is complicated by the exchange rate regime, which is under-pricing capital and moving the country inexorably towards negative real interest rates. Commitment to the current development model weds China to a credit system that is incompatible with stable goods and asset prices, not unlike the US in the 1920s and Japan in the 1980s."
Pressure On Reid To Pursue Climate/Green Jobs Bill
22 Senators urge leadership to pass climate bill. Roll Call: "A group of 22 Democratic Senators urged Majority Leader Harry Reid (D-Nev.) Monday to take up comprehensive climate legislation this year, making the case that reform would be a boost for the economy ... Sens. John Kerry (D-Mass.), Joe Lieberman (ID-Conn.) and Lindsey Graham (R-S.C.) are expected to brief a bipartisan group of Members Tuesday on the climate proposal they have been developing for weeks."
Other senators pushing Reid to drop climate and pass a narrower energy bill. Politico: "Energy and Natural Resources Committee Chairman Jeff Bingaman and Democratic Policy Committee chair Byron Dorgan have been fiercely lobbying Senate Majority Leader Harry Reid to take up the energy-only bill approved by the energy committee last June ... [Meanwhie,] Kerry, Graham and Lieberman are expected to send their revamped climate proposal to the Environmental Protection Agency this week, kicking off the weeks-long economic modeling process the bill must undergo before coming to the Senate floor."
Reid meeting with relevant cmte chairs tomorrow. Graham still backing climate compromise. CQ: "Senate Majority Leader Harry Reid plans to meet Wednesday with chairmen of the committees with jurisdiction over a climate change bill — a signal that the Democratic leadership remains committed to trying to pass the legislation this year ... Lindsey Graham, R-S.C., said he will continue working with John Kerry, D-Mass., and Joseph I. Lieberman, I-Conn., toward a bipartisan deal — despite his displeasure with the procedures Democratic leaders are pursuing this week to complete action on their health care package."
Greenwire checks in on divisions within the environmental movement on direction of Senate bill: "Kieran Suckling, executive director of the Center for Biological Diversity, is urging lawmakers to vote against the Senate climate bill if it includes language that strips U.S. EPA of its authority to control greenhouse gas emissions ... [Friends of the Earth's Erich Pica] said he's not thrilled with some of the details emerging on EPA pre-emption and more nuclear loan guarantees ... Other environmental groups -- including the Sierra Club, National Wildlife Federation and Natural Resources Defense Council -- are trying to hold the line on the still-evolving Senate climate proposal."
TNR's Michael Livermore sees a possible EPA compromise: "There are certain EPA regulations that would interfere with any cap-and-trade system that is set up by Congress, such as setting mandatory concentration levels for greenhouse gases. But other EPA rules could well complement congressional action—for instance, rules to encourage a switch to renewable fuels and reduce dependence on foreign oil. A scalpel is needed, not a sledgehammer."
Grist's David Roberts doesn't see health care's victory as impacting climate debate: "...to pass a climate bill of comparable scope, there would have to be the same kind of patient, sustained effort from Dem leadership in the face of setbacks and prognostications of failure. Only it would have to be faster (time is running out). It would have to secure Republican support for a major Dem initiative, which would be a first in Obama's term. It would have to coax even more nervous Dems in conservative states from no to yes."
House Goes Small On Jobs
House emulating Senate's "bite-size" jobs strategy. The Hill: "Democrats are planning votes as soon as Tuesday on an $18 billion bill that funds infrastructure projects and provides small-business tax breaks, as well as a disaster-relief measure that includes $600 million for a summer youth jobs program ... The House is now following the Senate’s lead in looking to bite-sized bills, said Anne Kim ... economic program director at the center-left think tank Third Way."
Is Social Security Next?
What will Obama do on Social Security? NYT: "Early signs of disagreement have also been evident in the White House between members of the economic team, who generally favor addressing Social Security’s finances, and the political advisers, who resist it. The president’s debt-reduction commission is likely to force the issue, even though it is not required to report its recommendations to Congress until Dec. 1..."
Dean Baker hammers NYT for misreporting on Social Security: "[The paper] wrongly tells readers that: 'By 2016, Social Security will begin paying more in benefits than it collects in payroll taxes, according to the annual report of government trustees.' Actually, Social Security is currently paying out more in benefits than it collects in taxes. This fact has no special relevance for the program since it has already accumulated more than $2.5 trillion in government bonds to cover future projected shortfall. Opponents of Social Security have long sought to hype the date when benefits would exceed annual tax collections in order to promote the sense of crisis."
