US Congress Week: Senate GOP Regroups After Health Bill Defeat

--Senate Republicans Ponder Response to Health Bill Debacle

--WH Budget Chief: Senate Should Defer All Action Until Health Care Passes

By John Shaw

     WASHINGTON (MNI) - With the House already departed from Washington for its

August recess, Senate Republicans are now trying to assemble an agenda for the

first two weeks of August -- and beyond. 

     Senate Majority Leader Mitch McConnell has been working since May on a

strategy to pass health care legislation.

     Last week, McConnell tried multiple options and each one failed. A last

ditch effort to pass a modest bill was defeated early Friday on a 49 to 51 vote.

     McConnell seemed stunned by the result and said Congress needed to "move

on" to other issues.

     However, President Donald Trump and top officials in his administration are

demanding Senate Republicans try another approach on health care.

     On Saturday, Trump said Senate Republicans should "demand another vote" to

repeal and replace the Affordable Care Act.

     "Unless the Republican Senators are total quitters, Repeal & Replace is not

dead! Demand another vote before voting on any other bill!" the president said

via Twitter.

     White House Budget Director Mick Mulvaney said Sunday during an interview

on CNN the White House believes the Senate shouldn't hold vote on any other

issue -- including a vote to raise the debt ceiling -- until the Senate votes

again on health care.

     "In the White House's view, they can't move on in the Senate," Mulvaney

said.

     "You can't promise folks you're going to do something for seven years, and

then not do it," he said.

     The House passed legislation repealing the ACA, or Obamacare, in early May.

     Some Senate Republicans are trying to develop another health care bill

while Senate Democrats are urging bipartisan talks to fix the ACA.

     Dozens of House lawmakers from both parties unveiled proposals Monday to

remedy problems some of the ACA's deficiencies.

     "The last great hope for this country is that Republicans and Democrats

prove they can work together," Rep. Tom Reed, co-chairman of the Problem Solvers

Caucus, said in a statement.

     As McConnell sorts through his health care options, he must also begin to

forge a plan for dealing with a long list of fiscal challenges this fall.

     These include funding the government for the 2018 fiscal year, increasing

the statutory debt ceiling, and advancing the GOP's goal of comprehensive tax

reform.

     The Congressional Budget Office has said the debt ceiling must be lifted by

mid-October.

     Neither the House nor the Senate has passed a fiscal year 2018 budget

resolution.

     Budget law requires Congress to pass a budget resolution each year by April

15 that sets multi-year spending and revenue goals and makes budget deficit or

surplus estimates.

     There is no sanction for missing the deadline. A budget resolution is a

non-binding congressional fiscal blueprint.

     The House GOP's FY 2018 budget resolution was approved by the House Budget

Committee two weeks ago and will be considered in the fall by the full House. 

     The House GOP budget claims to balance the federal budget within a decade

with more than $5 trillion in deficit reduction. 

     The House GOP budget sets FY 2018 discretionary spending at $621 billion

for defense programs and $511 billion for domestic programs.

     Senate Republicans have not introduced their FY 2018 budget resolution yet.

     The FY 2018 budget resolution is important for two reasons: First, it will

set out the discretionary spending level for FY 2018, and second, passing a

budget resolution will allow for later consideration of a budget reconciliation

bill.

     This reconciliation bill will have certain procedural protections and is

likely to be the device by which Congress hopes to consider tax reform later

this year.

     The 2018 fiscal year begins Oct. 1, 2017 and it extends until Sept. 30,

2018.  

     Congressional Republican leaders, joined by Treasury Secretary Steve

Mnuchin and National Economic Council Director Gary Cohn, issued late last week

a statement outlining general principles that will guide their tax reform

efforts.

     They vowed to make good on a "once in a generation" opportunity to overhaul

the tax code, adding their package will not include the controversial border

adjustment tax.

     The Republican leaders said the tax overhaul package will be drafted this

fall by the House Ways and Means Committee and the Senate Finance Committee.

     "Our expectation is for this legislation to move through the committees

this fall, under regular order, followed by consideration on the House and

Senate floors," they said. 

     The administration is expected to release a tax proposal in September.

     In other action on Capitol Hill this week, the Senate Finance Committee is

holding a hearing Tuesday at 10 a.m. ET on the U.S.'s affordable housing crisis.

--MNI Washington Bureau; tel: +1 202-371-2121; email: john.shaw@marketnews.com

[TOPICS: M$U$$$,MC$$$$,MFU$$$,MGU$$$]