Economic Policy

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Agriculture and Related Agencies: FY2024 Appropriations

Complete Streets: A Primer

Science and Technology Issues for the 118th Congress

Great Power Competition: Implications for Defense—Issues for Congress

Social Security: The Windfall Elimination Provision (WEP)

Section 199A Deduction: Economic Effects and Policy Issues

Clean Vehicle Tax Credits

Energy Tax Provisions: Overview and Budgetary Cost

Women’s History Month Speech Resources: Fact Sheet

U.S. Trade Policy: Background and Current Issues

The Casualty and Theft Loss Deduction

Economic Forecasts and Projections: Fact Sheet

The IRS’s Free Direct Filing Pilot Program

Federal Reserve: Policy Issues in the 118th Congress

The Fed’s Balance Sheet and Quantitative Tightening

How Would the Child Credit Be Calculated for 2023 Under H.R. 7024?

Child Tax Credit: What Lies Ahead?

The Role of Patents and Regulatory Exclusivities in Drug Pricing

How Treasury Issues Debt

The European Union: Questions and Answers

Debt Limit Policy Questions: How Long Do Extraordinary Measures Last?

The Section 199A Deduction: How It Works and Illustrative Examples

Changes in the Arctic: Background and Issues for Congress

Malaysia

U.S.-Vietnam Relations

National Monuments and the Antiquities Act

The Emergency Food Assistance Program (TEFAP): Background and Funding

Low Unemployment in 2023: Can It Last?

School Meals and Other Child Nutrition Programs: Background and Funding

The Retirement Savings Contribution Credit and the Saver’s Match

Nuclear Negotiations with North Korea

Iran and Special Drawing Rights (SDRs)

Resources for Financial Market Data

Siting Challenges for Carbon Dioxide (CO2) Pipelines

Terrorist Financing: Hamas and Cryptocurrency Fundraising

Generalized System of Preferences (GSP): Overview and Issues for Congress

Antitrust Reform and Big Tech Firms

Bank Exposure to Commercial Real Estate

National Park System: What Do the Different Park Titles Signify?

Debt Limit Suspensions

The Earned Income Tax Credit (EITC): How It Works and Who Receives It

Statistics on Women in National Governments Around the Globe

Statutory Inspectors General in the Federal Government: A Primer

Trends in Mandatory Spending

U.S. Assistance for Sub-Saharan Africa: An Overview

Distribution of IRS Audits by Income and Race

The Factors Influencing the High Cost of Insurance for Consumers

Internal Revenue Service Appropriations, FY2024

Saudi Arabia: Background and U.S. Relations

The United States-Mexico-Canada Agreement (USMCA)

Semiconductors and the CHIPS Act: The Global Context

China’s Economy: Current Trends and Issues

Paid Family and Medical Leave in the United States

Economic Effects of Government Shutdowns

The Pillar 2 Global Minimum Tax: Implications for U.S. Tax Policy

International Financial Institutions: FY2024 Budget Request

Cell-Cultivated Meat: An Overview

The Debt Limit

EB-5 Immigrant Investor Program

Multilateral Development Banks: Overview and Issues for Congress

China-Russia Relations

Discretionary Budget Authority by Subfunction: An Overview

The Section 45Q Tax Credit for Carbon Sequestration

The U.S. “Housing Recession”

Meme Stock MMTLP and FINRA Trading Halt

The Individual Income Tax, 2023

Short Selling: Background and Policy Issues

Family Office Regulation in Light of the Archegos Fallout

Russia’s War Against Ukraine: Related CRS Products

Mountain Valley Pipeline: Congressional Authorization

Federal Reserve Launches FedNow

Energy Tax Credits and the Global Minimum Tax

Sub-Saharan Africa: Overview and U.S. Engagement

Changes to IRS Funding in the Debt Limit Deal

Australia: Background and U.S. Relations

Kuwait: Issues for the 118th Congress

The U.S. Housing Underbuilding Gap

Firearms and Ammunition Excise Tax (FAET)

Office of Management and Budget (OMB): An Overview

Dynamic Scoring for Tax Legislation: A Review of Models

Foreign Holdings of Federal Debt

North Korea: Legislative Basis for U.S. Economic Sanctions

Stop the Presses? Newspapers in the Digital Age

Introduction to Cryptocurrency

Lebanon: Background and U.S. Relations

Selecting the World Bank President

Remittances: Background and Issues for the 118th Congress

Egypt: Background and U.S. Relations

Structure of Federal Debt and Extraordinary Measures

Debt Limit Policy Questions: What Are Extraordinary Measures?

An Introduction to the Low-Income Housing Tax Credit

Locate an Agency or Program Within Appropriations Bills

Central Bank Digital Currencies

Ghana: Overview and U.S. Policy

Introduction to Financial Services: Capital Markets

Internal Revenue Service Appropriations, FY2023

Bank Failures and the FDIC

Common Causes of Economic Recession

Banking, Data Privacy, and Cybersecurity Regulation

CRS Series: Introduction to Financial Services—118th Congress

Multifamily Housing Finance and Selected Policy Issues

Dynamic Scoring in the Congressional Budget Process

State Minimum Wages: An Overview

Stafford Act Assistance and Acts of Terrorism

U.S. Foreign Aid to Israel

SBA Disaster Loan Limits: Policy Options and Considerations

SBA Disaster Loan Interest Rates: Overview and Policy Options

The 10-20-30 Provision: Defining Persistent Poverty Counties

Employer Tax Credit for Paid Family and Medical Leave

Russia’s War on Ukraine: Financial and Trade Sanctions

Caribbean Trade Preference Programs

Advanced Nuclear Reactors: Technology Overview and Current Issues

Noncitizen Eligibility for Supplemental Security Income (SSI)

The 1% Excise Tax on Stock Repurchases (Buybacks)

Cryptocurrency: Selected Policy Issues

The Internal Revenue Service’s Private Tax Debt Collection Program

Will Inflation Continue to Fall?

Crypto and Banking: Policy Issues

Accredited Investor Definition and Private Securities Markets

Federalism-Based Limitations on Congressional Power: An Overview

The SEC’s Proxy Advisory Firm Disclosure Reforms

Small Business Tax Benefits: Current Law

Consumption Taxes: An Overview

The 15% Corporate Alternative Minimum Tax

Recent Trends in Wages and Productivity

Pandemic Relief: The Emergency Rental Assistance Program

Introduction to U.S. Economy: Monetary Policy

Japan-U.S. Relations: Issues for Congress

Introduction to U.S. Economy: GDP and Economic Growth

Solar Energy: Frequently Asked Questions

Introduction to Financial Services: Consumer Finance

Introduction to Financial Services: The Regulatory Framework

Introduction to U.S. Economy: Inflation

Introduction to Financial Services: Banking

Introduction to Financial Services: Systemic Risk

Introduction to Financial Services: The Federal Reserve

Introduction to Financial Services: The Housing Finance System

Ukraine and International Financial Institutions

Introduction to U.S. Economy: Housing Market

Introduction to U.S. Economy: The Business Cycle and Growth

Introduction to U.S. Economy: Productivity

Introduction to U.S. Economy: Fiscal Policy

Introduction to U.S. Economy: Business Investment

Introduction to U.S. Economy: Personal Income

Poverty in the United States in 2021

The Debt Limit Since 2011

Higher Education Tax Benefits: Brief Overview and Budgetary Effects

Deficits, Debt, and the Economy: An Introduction

Tax Treatment of Research Expenses: Current Law and Policy Issues

Debt and Deficits: Spending, Revenue, and Economic Growth

Federal Reserve: Master Accounts and the Payment System

What Happened at FTX and What Does It Mean for Crypto?

Agricultural Research: Background and Issues

Federal Debt and the Debt Limit in 2022

Housing Issues in the 117th Congress

Block Grants: Perspectives and Controversies

New Markets Tax Credit: An Introduction

Small Business Research Programs: SBIR and STTR

IRS-Related Funding in the Inflation Reduction Act

The National Security Council: Background and Issues for Congress

An Analysis of the Tax Treatment of Capital Losses

Offshore Wind Provisions in the Inflation Reduction Act

Exchange Rates and Currency Manipulation

Public Banks: History and Recent Proposals

Phone Service at the Internal Revenue Service During the 2022 Filing Season

The USDA Healthy Food Financing Initiative

North Korea: September 2022 Update

The Philippines: Background and U.S. Relations

Labor, Health and Human Services, and Education: FY2022 Appropriations

Teen Birth Trends: In Brief

The Davis-Bacon Act: 2022 Proposed Rule

Tax Provisions in the Inflation Reduction Act of 2022 (H.R. 5376)

Federal Payroll Tax Administration

The Corporate Minimum Tax Proposal

Taxation of Carried Interest

Is the U.S. Economy in a Recession?

Job Corps: A Primer

Big Tech in Financial Services

Small Business Administration HUBZone Program

Federal Individual Income Tax Terms: An Explanation

Federal Research Tax Credit: Current Law and Policy Issues

U.S. Employment-Based Immigration Policy

The Social Security Statement

Small Business: Access to Capital and Job Creation

Housing and the Consumer Price Index

Introduction to U.S. Economy: Personal Saving

Introduction to U.S. Economy: Consumer Spending

Introduction to U.S. Economy: Unemployment

The Social Security Retirement Age

Small Business Administration 7(a) Loan Guaranty Program

Potential Impacts of a Federal Gasoline Tax Moratorium

Patents and Innovation Policy

Small Business Administration 504/CDC Loan Guaranty Program

The Loan Limits for Government-Backed Mortgages

Overview of the Federal Tax System in 2022

Nicaragua in Brief: Political Developments and U.S. Policy

Agency-Related Nonprofit Research Foundations and Corporations

Brazil: Background and U.S. Relations

Farm Bill Primer: Agricultural Research and Extension

The Earned Income Tax Credit (EITC): Legislative History

Small Business Administration: A Primer on Programs and Funding

Tax Incentives for Opportunity Zones

Challenges for Taxpayers Filing in 2022

Blockchain: Novel Provenance Applications

Overview of Correspondent Banking and “De-Risking” Issues

SBA Small Business Investment Company Program

An Economic Perspective on Wealth Taxes

Preparing for the Next Farm Bill

Small Business Administration Microloan Program

Mark-to-Market Taxation of Capital Gains

Overdraft: Payment Service or Small-Dollar Credit?

Internal Revenue Service Appropriations, FY2022

SBA Women-Owned Small Business Federal Contracting Program

The Federal Reserve and Inflation

The LIBOR Transition

The Charitable Deduction for Individuals

U.S.-South Korea Relations

The Terrorism Risk Insurance Act (TRIA)

Reforming the U.S. Postal Service: Background and Issues for Congress

Central Bank Digital Currencies: Policy Issues

Iran Sanctions

The Exclusion of Capital Gains for Owner-Occupied Housing

Financial Regulation: Systemic Risk

Private Activity Bonds: An Introduction

Federal Reserve: Tapering of Asset Purchases

Federal Research and Development (R&D) Funding: FY2022

U.S. Sanctions on Russia

Introduction to Financial Services: Financial Cybersecurity

Introduction to Financial Services: Credit Unions

Introduction to Financial Services: Insurance

Military Families and Financial Readiness

Tax Havens: International Tax Avoidance and Evasion

Corporate Income Taxation in a Global Economy

Money Laundering in the U.S. Real Estate Sector

Libya: Transition and U.S. Policy

The Debt Limit in 2021

The Child Tax Credit: Legislative History

Federal Resources for State and Local Economic Development

Breaking Down the U.S. Inflation Rate

Business Interruption Insurance and COVID-19

The Housing Trust Fund: An Overview

Trends and Proposals for Corporate Tax Revenue

Women in the Middle East and North Africa: Issues for Congress

China’s Recent Trade Measures and Countermeasures: Issues for Congress

Nasdaq’s Board Diversity Directive

Digital Trade and U.S. Trade Policy

Corporate Tax Reform: Issues for Congress

Bank Use of Cloud Technology

Infrastructure and the Economy

The Impact of a “Fully Refundable” Child Tax Credit

Worker Participation in Employer-Sponsored Pensions: Data in Brief

The Post-Pandemic Labor Market and Rising Inflation

Legislative Branch Revolving Funds

Minimum Taxes on Business Income: Background and Policy Options

Global Economic Effects of COVID-19

Stablecoins: Background and Policy Issues

Clearing the Air on the Debt Limit

Bank Mergers and Acquisitions

U.S. Climate Change Policy

Dam Removal and the Federal Role

Recent Changes in the Estate and Gift Tax Provisions

World Trade Organization: Overview and Future Direction

Russian Arms Sales and Defense Industry

Who Pays the Corporate Tax?

Key Issues in WTO Agriculture Negotiations

An Overview of Rural Credit Markets

Social Security: Revisiting Benefits for Spouses and Survivors

Civilian Nuclear Waste Disposal

Tax Policy and Disaster Recovery

The Home Office Tax Deduction

Inflation in the Wake of COVID-19

Base Erosion and Profit Shifting (BEPS): OECD Tax Proposals

Trade Remedies: Countervailing Duties

European Union Enlargement

Tax Treatment of Gig Economy Workers

COVID-19: Government Resources for Real-Time Economic Indicators

COVID-19 and the U.S. Timber Industry

How Stable Are Stablecoins?

Craft Alcoholic Beverage Industry: Overview and Regulation

India-U.S. Relations

Agriculture and Related Agencies: FY2021 Appropriations

Digital Assets and SEC Regulation

The Debt Collection Market and Selected Policy Issues

Corporate Expatriation, Inversions, and Mergers: Tax Issues

Tax Treatment of Capital Gains at Death

New Zealand: Background and Relations with the United States

COVID-19 and the U.S. Economy

COVID-19: Household Debt During the Pandemic

The Small Business Lending Fund

U.S. Naturalization Policy

The Energy Credit or Energy Investment Tax Credit (ITC)

Oil and Gas Tax Preferences

Is High Inflation a Risk in 2021?

SPAC IPO: Background and Policy Issues

Small Businesses and COVID-19: Relief and Assistance Resources

Tax Credit Bonds: Overview and Analysis

Payroll Tax Credit for COVID-19 Sick and Family Leave

Public-Private Partnerships (P3s) in Transportation

The Liquidity Coverage Ratio and the Net Stable Funding Ratio

Federal Taxation of Unemployment Insurance Benefits

Green Building Overview and Issues

SBA New Markets Venture Capital Program

The Qualified Mortgage (QM) Rule and Recent Revisions

Cross-Cutting Issues in Cybersecurity: Financial Institutions

COVID-19 Testing Supply Chain

Money for Something: Music Licensing in the 21st Century

Financial Transactions Taxes: In Brief

Federal Crop Insurance: A Primer

The Federal Reserve’s Response to COVID-19: Policy Issues

The Federal Minimum Wage: In Brief

Internal Revenue Service Appropriations, FY2021

Fiscal Policy and Recovery from the COVID-19 Recession

State Minimum Wage Ballot Measures: In Brief

Keystone XL Pipeline: The End of the Road?

Fiscal Policy: Economic Effects

Capital Gains Tax Options: Behavioral Responses and Revenues

An Overview of Consumer Finance and Policy Issues

The Tax Treatment of Canceled Mortgage Debt

The U.S. Income Distribution: Trends and Issues

U.S. Restrictions on Relations with Burma

COVID-19: Presidential Order Deferring Individual Payroll Taxes

COVID-19: Employment Across Industries

Issues in the Reauthorization of Amtrak

Real Wage Trends, 1979 to 2019

COVID-19: China Medical Supply Chains and Broader Trade Issues

Pandemic-Related Statutory Provisions Expiring in 2020

African American Members of the U.S. Congress: 1870-2020

Section 301 of the Trade Act of 1974: Origin, Evolution, and Use

Vulnerable Youth: Background and Policies

A Brief Overview of Business Types and Their Tax Treatment

U.S.-Brazil Economic Relations

USDA’s Coronavirus Food Assistance Program: Round One (CFAP-1)

COVID-19: How Quickly Will Unemployment Recover?

The “Regular Order”: A Perspective

The Federal Reserve’s Main Street Lending Program

Economic Development Revolving Loan Funds (ED-RLFs)

Heroes Act: Revenue Provisions

COVID-19: Consumer Loan Forbearance and Other Relief Options

The Impact of the Federal Income Tax Code on Poverty

The Tax Treatment and Economics of Net Operating Losses

Housing Issues in the 116th Congress

Heroes Act (H.R. 6800/H.R. 925): Selected Consumer Loan Provisions

Policy Options for Multiemployer Defined Benefit Pension Plans

International Economic Policy Coordination at the G-7 and the G-20

Trade Adjustment Assistance for Firms

Delivery of Economic Impact Payments (EIPs)

Daylight Saving Time (DST)

Competition Among Video Streaming Services

Patent Law: A Handbook for Congress

Trade Remedies: Antidumping

Russia: Domestic Politics and Economy

Industrial Loan Companies (ILCs): Background and Policy Issues

The GSEs’ Adverse Market Refinance Fee

Alternative Data in Financial Services

Military Spouse Employment

Tax Issues Relating to Charitable Contributions and Organizations

Iraq: Issues in the 116th Congress

COVID-19: Measuring Unemployment

Federal Reserve: Emergency Lending in Response to COVID-19

State and Local Fiscal Conditions and Economic Shocks

Individual Tax Provisions (“Tax Extenders”) Expiring in 2020: In Brief

Six temporary individual income tax provisions were extended or reinstated by the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). In the past, Congress has regularly acted to extend expired or expiring temporary tax provisions. These provisions are often referred to as “tax extenders.” Of the six provisions that were extended through 2020, three had expired in 2017 and were extended retroactively. They are the tax exclusion for canceled mortgage debt, the mortgage insurance premium deduction, and the above-the-line deduction for qualified tuition and related expenses. Two of...

Coronavirus Disease 2019 (COVID-19) Pandemic: CRS Experts

On December 31, 2019, the World Health Organization (WHO) was informed of a cluster of pneumonia cases in Wuhan, China. Illnesses have since been linked to a new strain of coronavirus, designated Coronavirus disease 2019, or COVID-19. The disease has spread to many other countries, including the United States. The situation is rapidly changing, and both WHO and the U.S. Centers for Disease Control and Prevention (CDC) post frequent updates. CRS products on the outbreak are available under the “Coronavirus Resources” banner at https://www.crs.gov/.

Novel Coronavirus 2019 (COVID-19): Q&A on Global Implications and Responses

In December 2019, hospitals in the city of Wuhan in China’s Hubei Province began seeing cases of pneumonia of unknown origin. Chinese health authorities ultimately connected the condition, later named coronavirus disease 2019 (COVID-19), to a previously unidentified strain of coronavirus. The disease has spread to almost every country in the world, including the United States. WHO declared the outbreak a Public Health Emergency of International Concern on January 30, 2020; raised its global risk assessment to “Very High” on February 28; and labeled the outbreak a “pandemic” on March 11....

Tax Cuts and Economic Stimulus: How Effective Are the Alternatives?

The economic effects of the Coronavirus Disease 2019 (COVID-19) pandemic has led Congress to enact general fiscal stimulus in the form of tax cuts and spending increases. Further stimulus may be considered. This report discusses tax cuts enacted during the Great Recession, as well as those recently enacted and those under consideration.

In response to the Great Recession several types of tax cuts were debated as possible fiscal stimulus—with fiscal stimulus legislation enacted in February 2008 (P.L. 110-185) and a much larger one in February 2009 (P.L. 111-5). Both bills included...

Australia: Background and U.S. Relations

Intellectual Property Rights and International Trade

This report provides background on intellectual property rights (IPR) and discusses the role of U.S. international trade policy in enhancing IPR protection and enforcement abroad. IPR are legal rights granted by governments to encourage innovation and creative output by ensuring that creators reap the benefits of their inventions or works. They may take forms such as patents, trade secrets, copyrights, trademarks, or geographical indications (GIs). Congress has constitutional responsibility for legislating and overseeing IPR and international trade policy. Responsibility for developing IPR...

Funding and Financing Highways and Public Transportation

For many years, federal surface transportation programs were funded almost entirely from taxes on motor fuels deposited in the Highway Trust Fund. The tax rates, which are fixed in terms of cents per gallon, have not been increased at the federal level since 1993. Meanwhile, motor fuel consumption is projected to decline due to improved fuel efficiency, increased use of electric vehicles, and slow growth in vehicle miles traveled. In consequence, revenue flowing into the Highway Trust Fund has been insufficient to support the surface transportation program authorized by Congress since...

Community Bank Leverage Ratio (CBLR): Background and Analysis of Bank Data

Capital allows banks to withstand losses (to a point) without failing, and regulators require banks to hold certain minimum amounts. These requirements are generally expressed as ratios between balance sheet items, and banks (particularly small banks) indicate that reporting those ratios can be difficult. Capital ratios fall into one of two main types—simpler leverage ratios and more complex risk-weighted ratios. A leverage ratio treats all assets the same, whereas a risk-weighted ratio assigns assets a risk weight to account for the likelihood of losses.

In response to concerns that small...

COVID-19, U.S. Agriculture, and USDA’s Coronavirus Food Assistance Program (CFAP)

As COVID-19 has spread throughout the United States, it has reduced domestic economic activity and disrupted domestic and international supply chains for goods and services, including food and agricultural products. These disruptions have produced an immediate and very strong demand shock on the U.S. food supply chain that has sent many commodity prices sharply lower.

The food supply chain refers to the path that raw agricultural commodities take from the farm where they are produced, through the food processing and distribution network to the consumer where they are used. Supply chain...

Medicaid Recession-Related FMAP Increases

Medicaid is jointly financed by the federal government and the states. States incur Medicaid costs by making payments to service providers (e.g., for doctor visits) and performing administrative activities (e.g., making eligibility determinations), and the federal government reimburses states for a share of these costs. The federal government’s share of a state’s expenditures for most Medicaid services is called the federal medical assistance percentage (FMAP). The FMAP varies by state and is inversely related to each state’s per capita income. For FY2020, FMAP rates range from 50% (13...

The Mortgage Interest Deduction

Transportation Infrastructure Investment as Economic Stimulus: Lessons from the American Recovery and Reinvestment Act of 2009

Congress is considering federal funding for infrastructure to revive an economy damaged by Coronavirus Disease 2019 (COVID-19). Congress previously provided infrastructure funding for economic stimulus in the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5). Enacted on February 17, 2009, ARRA was a response to the “Great Recession” that officially ran from December 2007 through June 2009. This report discusses the economic impact of the transportation infrastructure funding in ARRA.

ARRA provided $48.1 billion for programs administered by the U.S. Department of...

COVID-19: Role of the International Financial Institutions

The international financial institutions (IFIs), including the International Monetary Fund (IMF), the World Bank, and regional and specialized multilateral development banks, are mobilizing unprecedented levels of financial resources to support countries responding to the health and economic consequences of the COVID-19 pandemic.

More than half of the IMF’s membership has requested IMF support, and the IMF has announced it is ready to tap its total lending capacity, about $1 trillion, to support governments responding to COVID-19.

The World Bank has committed to mobilizing $160 billion...

The Renewable Electricity Production Tax Credit: In Brief

The renewable electricity production tax credit (PTC) is a per-kilowatt-hour (kWh) tax credit for electricity generated using qualified energy resources. The credit expires at the end of 2020, so that only projects that began construction before the end of 2020 qualify for tax credits. Since the PTC is available for the first 10 years of production at a qualified facility, PTCs will continue to be claimed after the PTC’s stated expiration date. Whether the PTC should be extended, modified, or allowed to expire as scheduled is an issue Congress may choose to consider.

Most recently, the...

Fintech: Overview of Innovative Financial Technology and Selected Policy Issues

Advances in technology allow for innovation in the ways businesses and individuals perform financial activities. The development of financial technology—commonly referred to as fintech—is the subject of great interest for the public and policymakers. Fintech innovations could potentially improve the efficiency of the financial system and financial outcomes for businesses and consumers. However, the new technology could pose certain risks, potentially leading to unanticipated financial losses or other harmful outcomes. Policymakers designed many of the financial laws and regulations...

Fintech: Overview of Financial Regulators and Recent Policy Approaches

New technologies in the financial services sector can create challenges for the various federal agencies responsible for financial regulation in the United States. As these regulators address the potential benefits and risks of innovation, policymakers have demonstrated significant interest in understanding the types of technologies that may benefit consumers and financial markets while identifying the risks that new financial services may present. As Congress considers the potential tradeoffs of financial technology or fintech, it can be useful to understand how the financial system...

The Coronavirus Aid, Relief, and Economic Security (CARES) Act—Tax Relief for Individuals and Businesses

Congress is considering a number of proposals that seek to mitigate the economic effects of the COVID-19 pandemic. One such proposal, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (S. 3548), was introduced in the Senate on March 19, 2020. On March 22, 2020, an updated version of the CARES Act was circulated, as a proposed amendment to H.R. 748. A cloture vote on a motion to proceed, which was designed to allow consideration of the CARES Act, was rejected on March 22. A third version of the CARES Act was released on March 25, 2020. On March 25, the Senate voted 96-0 to pass...

Paycheck Protection Program (PPP) Lending Set Asides for Community Development Financial Institutions (CDFIs)

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) created the Small Business Administration’s (SBA’s) Paycheck Protection Program (PPP). On April 16, 2020, the SBA reported that it had exhausted all funding provided by the CARES Act for the PPP.

On April 24, 2020, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-139), which contains lending set asides for smaller lenders. These set asides appear to be motivated by media coverage claiming that some big banks benefited from issuing large volumes of PPP loans and...

The Internet of Things: CRS Experts

“Internet of Things” (IoT) refers to networks of objects that communicate with other objects and with computers through the Internet. “Things” may include virtually any object for which remote communication, data collection, or control might be useful, such as meters, vehicles, appliances, medical devices, electric grids, transportation infrastructure, manufacturing equipment, or building systems. Although the full extent and nature of the IoT’s impacts remain uncertain, economic analyses predict that it will contribute trillions of dollars to economic growth over the next decade. Sectors...

Bank and Credit Union Regulators’ Response to COVID-19

Once it became clear that the coronavirus (COVID-19) outbreak would have serious financial ramifications, the federal agencies that regulate banks and credit unions—the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and Consumer Financial Protection Bureau (CFPB) (collectively referred to as the bank regulators), and the National Credit Union Administration (NCUA)—responded using existing authorities in two broad ways:

taking measures to encourage banks to work with customers affected by COVID-19; and

making...

Bank Exposure to COVID-19 Risks: Business Loans

The COVID-19 (coronavirus) pandemic has caused financial hardship across the country. If COVID-19 causes borrowers to miss loan payments, it could have negative consequences for banks. This Insight examines the exposure banks have to business loan repayments, such as commercial and industrial (C&I) loans and commercial real estate (CRE) loans. For exposure to household debt, such as mortgages and consumer loans, see CRS Insight IN11336, Bank Exposure to COVID-19 Risks: Mortgages and Consumer Loans, by David W. Perkins and Raj Gnanarajah.

The main business of a bank is to make loans and buy...

COVID-19 and U.S. Iran Policy

Overview

The spread in Iran of COVID-19 (the disease caused by the virus SARS-CoV-2) has raised questions about the possible effects of U.S. policy on the capacity of Iran to cope with the outbreak. Since May 2018, when the Trump Administration withdrew the United States from the 2015 multilateral Iran nuclear agreement (Joint Comprehensive Plan of Action, JCPOA), the Administration has reimposed all U.S. sanctions that were in place prior to that agreement and added further sanctions. The U.S. sanctions target virtually every economic sector in Iran, but at least technically exempt...

Treasury’s Exchange Stabilization Fund and COVID-19

Cryptocurrency: The Economics of Money and Selected Policy Issues

Cryptocurrencies are digital money in electronic payment systems that generally do not require government backing or the involvement of an intermediary, such as a bank. Instead, users of the system validate payments using certain protocols. Since the 2008 invention of the first cryptocurrency, Bitcoin, cryptocurrencies have proliferated. In recent years, they experienced a rapid increase and subsequent decrease in value. One estimate found that, as of March 2020, there were more than 5,100 different cryptocurrencies worth about $231 billion. Given this rapid growth and volatility,...

Multiemployer Defined Benefit (DB) Pension Plans: A Primer

Multiemployer defined benefit (DB) pension plans are private-sector pensions sponsored by more than one employer and maintained as part of a collective bargaining agreement. In 2017, about 3% of all DB pension plans, covering 29% of all DB pension plan participants, were multiemployer plans. Nearly all of the remaining DB pension plans were maintained by a single employer. A few DB pension plans were maintained by more than one employer but were not maintained under a collective bargaining agreement. In DB pension plans, participants receive a monthly benefit in retirement that is based on...

Direct Federal Support of Individuals Pursuing Training and Education in Non-degree Programs

Recent Administrations and Congress have demonstrated bipartisan support for increasing federal assistance to individuals pursuing training and education in postsecondary non-degree programs, sometimes referred to as short-term programs. Non-degree programs are postsecondary training and education programs that are most often shorter in duration than a bachelor’s or associate’s degree program. They generally provide work-based learning or educational instruction to individuals who are beyond the typical age for secondary education to prepare them for a particular occupation. Examples of...

Title IV Provisions of the CARES Act (P.L. 116-136)

Economic conditions have deteriorated rapidly in the past few weeks, as the Coronavirus Disease 2019 (COVID-19) pandemic has caused many businesses and public institutions to limit or close their operations, increasing financial hardship for many Americans due to layoffs or time off of work due to illness. COVID-19’s effect on the airline industry has been one of many areas of interest for Congress.

On March 27, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law as P.L. 116-136. The act contains a number of provisions aimed broadly at stabilizing the economy...

The Crime Victims Fund: Federal Support for Victims of Crime

In 1984, the Crime Victims Fund (CVF, or the Fund) was established by the Victims of Crime Act (VOCA, P.L. 98-473) to provide funding for state victim compensation and assistance programs. Since 1984, VOCA has been amended several times to support additional victim-related activities including (1) discretionary grants for private organizations, (2) the Federal Victim Notification System, (3) funding for victim assistance staff within the Federal Bureau of Investigation and Executive Office of U.S. Attorneys, (4) funding for the Children’s Justice Act Program, (5) assistance and...

“Technical Corrections” to Tax Reform

For some in Congress, “technical corrections” to the 2017 tax revision (commonly known as the “Tax Cuts and Jobs Act,” or TCJA; P.L. 115-97) have been a legislative priority. It is not always clear, however, what is strictly a “technical correction.” This Insight highlights provisions that have been widely discussed as “technical corrections” to the 2017 tax revision, starting with provisions in former Ways and Means Committee Chairman Kevin Brady’s 2019 “technical corrections” discussion draft. It then highlights other “fixes” to the 2017 tax revision that might be considered, even if...

Federal Reserve: Emergency Lending

The 2007-2009 financial crisis led the Federal Reserve (Fed) to revive an obscure provision found in Section 13(3) of the Federal Reserve Act (12 U.S.C. 344) to extend credit to nonbank financial firms for the first time since the 1930s. Section 13(3) provides the Fed with greater flexibility than its normal lending authority. Using this authority, the Fed created six broadly based facilities (of which only five were used) to provide liquidity to “primary dealers” (certain large investment firms) and to revive demand for commercial paper and asset-backed securities. More controversially,...

The Employment-Based Immigration Backlog

Currently in the United States, almost 1 million lawfully present foreign workers and their family members have been approved for, and are waiting to receive, lawful permanent resident (LPR) status (a green card). This employment-based backlog is projected to double by FY2030. It exists because the number of foreign workers whom U.S. employers sponsor for green cards each year exceeds the annual statutory green card allocation. In addition to this numerical limit, a statutory 7% per-country ceiling prevents the monopolization of employment-based green cards by a few countries.

For...

Agriculture and Related Agencies: FY2020 Appropriations

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA) except for the U.S. Forest Service. It also funds the Food and Drug Administration (FDA) and—in even-numbered fiscal years—the Commodity Futures Trading Commission (CFTC).

Agriculture appropriations include both mandatory and discretionary spending. Discretionary amounts, though, are the primary focus during the bill’s development. The largest discretionary spending items are the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); agricultural research; rural development; FDA;...

Data Flows, Online Privacy, and Trade Policy

“Cross-border data flows” refers to the movement or transfer of information between computer servers across national borders. Such data flows enable people to transmit information for online communication, track global supply chains, share research, provide cross-border services, and support technological innovation.

Ensuring open cross-border data flows has been an objective of Congress in recent trade agreements and in broader U.S. international trade policy. The free flow of personal data, however, has raised security and privacy concerns. U.S. trade policy has traditionally sought to...

The Take Responsibility for Workers and Families Act: Division T—Revenue Provisions

A number of recently introduced legislative proposals seek to alleviate the adverse economic effects of the COVID-19 outbreak. One such proposal, the Take Responsibility for Workers and Families Act (H.R. 6379), was introduced in the House on March 23, 2020. The proposal includes a number of provisions that would make changes to the tax system, including modifications that would

provide a one-time payment to households;

temporarily expand the earned income tax credit, child tax credit, and dependent care tax credit;

provide employer payroll tax credits for certain hospital expenses and...

Money Market Mutual Funds: A Financial Stability Case Study

Federal Research and Development (R&D) Funding: FY2020

President Trump’s budget request for FY2020 included approximately $134.1 billion for research and development (R&D). Several FY2019 appropriations bills had not been enacted at the time the President’s FY2020 budget was prepared; therefore, the President’s budget included the FY2018 actual funding levels, 2019 annualized continuing resolution (CR) levels, and the FY2020 request levels. On February 15, 2019, Congress enacted the Consolidated Appropriations Act, 2019 (P.L. 116-6). This act included each of the remaining appropriations acts, completing the FY2019 appropriations process. The...

Federal Assistance to Troubled Industries: Selected Examples

Serious disruptions for certain industries caused by the COVID-19 (coronavirus) pandemic have led to calls for federal government assistance to affected industries. Direct federal financial assistance to the private sector on a large scale is unusual, except for geographically narrow assistance following natural disasters. Nonetheless, assistance to business sectors affected by COVID-19 would not be the first occasion on which the federal government has aided troubled or financially distressed industries. Historically, aid—sometimes popularly referred to as “government bailouts”—has taken...

Military Child Development Program: Background and Issues

The Department of Defense (DOD) operates the largest employer-sponsored child care program in the United States, serving approximately 200,000 children of uniformed servicemembers and DOD civilians, and employing over 23,000 child care workers, at an annual cost of over $1 billion. DOD’s child development program (CDP) includes accredited, installation-based, government-run, full-time pre-school and school-aged care in its Child Development Centers (CDCs), and subsidized care in Family Care Centers (FCCs). DOD also subsidizes care in private child care centers outside of military...

The Hours of Service (HOS) Rule for Commercial Truck Drivers and the Electronic Logging Device (ELD) Mandate

In response to the COVID-19 outbreak, on March 13, 2020, the Department of Transportation (DOT) issued a national emergency declaration to exempt from the Hours of Service (HOS) rule through April 12, 2020, commercial drivers providing direct assistance in support of relief efforts related to the virus. This includes transport of certain supplies and equipment, as well as personnel. Drivers are still required to have at least 10 consecutive hours off duty (eight hours if transporting passengers) before returning to duty.

It has been estimated that up to 20% of bus and large truck crashes...

Business Tax Provisions Expiring in 2020, 2021, and 2022 (“Tax Extenders”)

Thirteen temporary business tax provisions are scheduled to expire at the end of 2020. Four other temporary business tax provisions are scheduled to expire in 2021 or 2022. In the past, Congress has regularly acted to extend expired or expiring temporary tax provisions. Collectively, these temporary tax provisions are often referred to as “tax extenders.”

This report briefly summarizes and discusses the economic impact of the 17 business-related tax provisions that are scheduled to expire in 2020, 2021, or 2022. The provisions discussed in this report are listed below, grouped by type and...

The SALT Cap: Overview and Analysis

Taxpayers who elect to itemize their deductions may reduce their federal income tax liability by claiming a deduction for certain state and local taxes paid, often called the “SALT deduction.” The 2017 tax revision (commonly referred to as the Tax Cuts and Jobs Act, TCJA; P.L. 115-97) made a number of changes to the SALT deduction. Most notably, the TCJA established a limit, or “SALT cap,” on the amounts claimed as SALT deductions for tax years 2018 through 2025. The SALT cap is $10,000 for single taxpayers and married couples filing jointly and $5,000 for married taxpayers filing...

Office of Science and Technology Policy (OSTP): History and Overview

Congress established the Office of Science and Technology Policy (OSTP) through the National Science and Technology Policy, Organization, and Priorities Act of 1976 (P.L. 94-282). The act states, “The primary function of the OSTP Director is to provide, within the Executive Office of the President [EOP], advice on the scientific, engineering, and technological aspects of issues that require attention at the highest level of Government.” Further, “The Office shall serve as a source of scientific and technological analysis and judgment for the President with respect to major policies, plans,...

International Trade: Rules of Origin

Rules of origin (ROO) are laws, regulations, and procedures used to determine the country of origin of an imported product. They are a significant part of international trade policy because ROO are needed to properly assess tariffs, enforce trade remedies (such as antidumping and countervailing duties) or quantitative restrictions (tariff quotas), and statistical purposes. Other commercial trade policies are also linked with country of origin determinations, such as labeling and government procurement regulations. Given Congress’ authority to regulate foreign commerce, it may consider how...

U.S.-EU Trade Agreement Negotiations: Trade in Food and Agricultural Products

The Office of the U.S. Trade Representative (USTR) officially notified the Congress of the Trump Administration’s plans to enter into formal trade negotiations with the European Union (EU) in October 2018. In January 2019, USTR announced its negotiating objectives for a U.S.-EU trade agreement, which included agricultural policies—both market access and non-tariff measures. However, the EU’s negotiating mandate, released in April 2019, stated that the trade talks would exclude agricultural products.

U.S.-EU27 Agricultural Trade, 1990-2019/

Source: CRS from USDA data for “Total...

Major Agricultural Trade Issues in 2020

Sales of U.S. agricultural products to foreign markets absorb about one-fifth of U.S. agricultural production, thus contributing significantly to the health of the farm economy. Farm product exports, which totaled $136 billion in FY2019 (see chart), make up about 8% of total U.S. exports and contribute positively to the U.S. balance of trade. The economic benefits of agricultural exports also extend across rural communities, while overseas farm sales help to buoy a wide array of industries linked to agriculture, including transportation, processing, and farm input suppliers.

U.S....

The Committee on Foreign Investment in the United States (CFIUS)

The Committee on Foreign Investment in the United States (CFIUS) is an interagency body comprised of nine Cabinet members, two ex officio members, and other members as appointed by the President, that assists the President in reviewing the national security aspects of foreign direct investment in the U.S. economy. While the group often operated in relative obscurity, the perceived change in the nation’s national security and economic concerns following the September 11, 2001, terrorist attacks and the proposed acquisition of commercial operations at six U.S. ports by Dubai Ports World in...

Section 199A Deduction for Pass-through Business Income: An Overview

Workers’ Compensation: Overview and Issues

Workers’ compensation provides cash and medical benefits to workers who are injured or become ill in the course of their employment and provides cash benefits to the survivors of workers killed on the job. Benefits are provided without regard to fault and are the exclusive remedy for workplace injuries, illnesses, and deaths. Nearly all workers in the United States are covered by workers’ compensation. With the exception of federal employees and some small groups of private-sector employees covered by federal law, workers compensation is provided by a network of state programs. In general,...

Brexit: Status and Outlook

The United Kingdom (UK) formally withdrew from membership in the European Union (EU) on January 31, 2020. Under the withdrawal agreement negotiated by the two sides, the UK is to continue applying EU rules during a transition period scheduled to run through the end of 2020. During the transition period, the UK and the EU are expected to begin negotiating the terms of their future relationship, including trade and economic relations as well as cooperation on foreign policy, security, and a range of other issues.

Overview of Developments

After the 2016 referendum in which 52% of voters in...

Economic and Fiscal Conditions in the U.S. Virgin Islands

Fiscal and economic challenges facing the U.S. Virgin Islands (USVI) government raise several issues for Congress. Congress may choose to maintain oversight of federal policies that could affect the USVI’s long-term fiscal stability. Congress also may consider further legislation that would extend or restructure long-range disaster assistance programs to mitigate those challenges and promote greater resiliency of infrastructure and public programs. Federal responses to the USVI’s fiscal distress could conceivably affect municipal debt markets more broadly. Greater certainty in federal...

Drug Pricing and Pharmaceutical Patenting Practices

Intellectual property (IP) rights in pharmaceuticals are typically justified as necessary to allow manufacturers to recoup their substantial investments in research, development, and regulatory approval. IP law provides exclusive rights in a particular invention or product for a certain time period, potentially enabling the rights holder (e.g., a brand-name drug manufacturer) to charge higher-than-competitive prices. If rights holders are able to charge such prices, they have an incentive to lengthen the period of exclusive rights as much as possible. Indeed, some commentators allege that...

Monetary Policy and the Federal Reserve: Current Policy and Conditions

Congress has delegated responsibility for monetary policy to the Federal Reserve (the Fed), the nation’s central bank, but retains oversight responsibilities for ensuring that the Fed is adhering to its statutory mandate of “maximum employment, stable prices, and moderate long-term interest rates.” To meet its price stability mandate, the Fed has set a longer-run goal of 2% inflation.

The Fed’s control over monetary policy stems from its exclusive ability to alter the money supply and credit conditions more broadly. Normally, the Fed conducts monetary policy by setting a target for the...

Oil Market Effects from U.S. Economic Sanctions: Iran, Russia, Venezuela

Economic sanctions imposed by the United States—through enacted legislation and executive action—on Iran, Russia, and Venezuela aim to pressure the ruling governments to change their behavior and policies. Currently, these sanctions aim to either eliminate (Iran) or restrict (Venezuela) crude oil trade of as much as 3.3 million to 4.0 million barrels per day (bpd), roughly 3%-4% of global petroleum supply. Estimated oil production volumes affected to date have been approximately 1.7 million bpd from Iran. Venezuela oil production has also likely been affected, although accurately...

Wage Inequality and the Stagnation of Earnings of Low-Wage Workers: Contributing Factors and Policy Options

Over the 1979-2018 period, real wages at the 10th percentile of the hourly wage distribution grew by 1.6%, whereas wages at the 50th percentile grew by 6.1% and wages at the 90th percentile grew by 37.6%. These patterns varied by sex, race, and ethnicity. Most of the increase in wage inequality at the bottom of the distribution occurred by 1990 and leveled off by 2000, whereas inequality continued to grow at the top of the distribution after 2000. Lower wages are associated with less education, and the college wage premium (the ratio of earnings of those with a college degree over those...

Introduction to Financial Services: Corporate Governance

Section 232 Auto Investigation

Regulation Best Interest (Reg BI): The SEC’s Rule for Broker-Dealers

On June 5, 2019, the Securities and Exchange Commission (SEC) voted to adopt Regulation Best Interest (Reg BI) under the Securities and Exchange Act of 1934 (P.L. 73-291). Reg BI reforms requirements for broker-dealers when they make investment recommendations to retail customers. According to the SEC, Reg BI is meant to “enhance the broker-dealer standard of conduct beyond existing ... obligations [by] requiring broker-dealers ... to: (1) act in the best interest of the retail customer at the time the recommendation is made, without placing the financial or other interest of the...

Overview of FY2020 Appropriations for Commerce, Justice, Science, and Related Agencies (CJS)

This report describes actions taken by the Trump Administration and Congress to provide FY2020 appropriations for Commerce, Justice, Science, and Related Agencies (CJS) accounts. The annual CJS appropriations act provides funding for the Department of Commerce, which includes bureaus and offices such as the Census Bureau, the U.S. Patent and Trademark Office (USPTO), the National Oceanic and Atmospheric Administration (NOAA), and the National Institute of Standards and Technology (NIST); the Department of Justice (DOJ), which includes agencies such as the Federal Bureau of Investigation...

Recent Slower Economic Growth in the United States: Policy Implications

The current economic expansion is the longest in recorded U.S. history, but it has not been characterized by rapid economic growth. From the beginning of the current economic expansion in the third quarter of 2009 to the second quarter of 2017, this expansion had the lowest economic growth rate of any expansion since World War II, averaging 2.2%. For the next five quarters, growth accelerated to 3.1%. However, growth has slowed since, averaging 2.1% over the next four quarters beginning in the fourth quarter of 2018. The slower growth rate has been widespread, but has been particularly...

Internet Regimes and WTO E-Commerce Negotiations

From retail to agriculture or healthcare, digitization has affected all sectors and allowed more industries to engage with customers and partners around the globe. Many U.S. companies thrived in the initial online environment, which lacked clear rules and guidelines, quickly expanding their offerings and entering foreign markets. As the internet has evolved, however, governments have begun to impose national laws and regulations to pursue data protection, data security, privacy, and other policy objectives. The lack of global rules and norms for data and digital trade is leading to...

Federal Income Tax Treatment of the Family Under the 2017 Tax Revisions

The federal income tax treatment of the family is affected by several major structural elements applicable to all taxpayers: amounts deductible from taxable income through standard deductions, personal exemptions, and itemized deductions; the rate structure (which varies across taxpayer types); the earned income credit and the child credit; and the alternative minimum tax. Some of these provisions only affect high-income families and some only low-income families, but they are the tax code’s fundamental structural features. They lead to varying tax burdens on families depending on whether...

Petitions for Rulemaking: An Overview

The Administrative Procedure Act (APA), enacted in 1946, is known primarily for its procedural requirements for notice-and-comment rulemaking. Those requirements state that when issuing regulations, agencies must generally give public notice (i.e., issue a proposed rule), hold a public comment period, and publish a final rule.

A lesser known provision in the APA is a petition mechanism through which any interested party can request an agency to issue, amend, or repeal a rule (Section 553(e)). Such petitions are sometimes referred to as 553(e) petitions, petitions for rulemaking, petitions...

U.S. Trade in Services: Trends and Policy Issues

Trade in “services” refers to a wide and growing range of economic activities. These activities include transport, tourism, financial services, use of intellectual property, telecommunications and information services, government services, maintenance, and other professional services from accounting to legal services. Compared to goods, the types and volume of services that can be traded are limited by factors such as the requirement for direct buyer-provider contact, and other unique characteristics such as the reusability of services (e.g., professional consulting) for which traditional...

International Trade and Finance: Overview and Issues for the 116th Congress

The U.S. Constitution grants authority to Congress to lay and collect duties and regulate foreign commerce. Congress exercises this authority in numerous ways, including through oversight of trade policy and consideration of legislation to implement trade agreements and authorize trade programs. Policy issues cover areas such as U.S. trade negotiations, U.S. trade and economic relations with specific regions and countries, international institutions focused on trade, tariff and nontariff barriers, worker dislocation due to trade liberalization, enforcement of trade laws and trade agreement...

The Effectiveness of the Community Reinvestment Act

The Community Reinvestment Act (CRA; P.L. 95-128, 12 U.S.C. §§2901-2908) addresses how banking institutions meet the credit needs of the areas they serve, particularly in low- and moderate-income (LMI) neighborhoods. The federal banking regulatory agencies—the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)—currently implement the CRA. The regulators issue CRA credits, or points, where banks engage in qualifying activities—such as mortgage, consumer, and business lending; community...

Internal Revenue Service Appropriations, FY2020

FDIC Proposes Changes to Brokered Deposit Regulation

On December 12, 2019, the Federal Deposit Insurance Corporation (FDIC) proposed changes to current rules that restrict banks that are not well capitalized from accepting brokered deposits, a perennial point of contention between banks and regulators. Recently, banks and financial technology companies have developed or begun using new arrangements that may qualify as brokered deposits. This development has refocused attention on the issue.

Background

Core deposits are the funds individuals or companies directly place in checking and savings accounts, primarily to utilize the safekeeping,...

Terrorism Risk Insurance: Overview and Issue Analysis for the 116th Congress

Prior to the September 11, 2001, terrorist attacks, coverage for losses from such attacks was normally included in general insurance policies without additional cost to the policyholders. Following the attacks, such coverage became expensive, if offered at all. Some observers feared the absence of insurance against terrorism loss would have a wider economic impact, because insurance is required to consummate a variety of transactions (e.g., real estate). For example, if real estate deals were not completed due to lack of insurance, this could have ripple effects—such as job loss—on related...

The National Flood Insurance Program: Selected Issues and Legislation in the 116th Congress

The National Flood Insurance Program (NFIP) was established by the National Flood Insurance Act of 1968 (NFIA; 42 U.S.C. §4001 et seq.), and was most recently reauthorized until September 30, 2020 (P.L. 116-93). The general purpose of the NFIP is both to offer primary flood insurance to properties with significant flood risk, and to reduce flood risk through the adoption of floodplain management standards. A longer-term objective of the NFIP is to reduce federal expenditure on disaster assistance after floods. The NFIP also engages in many “non-insurance” activities in the public interest:...

“Stage One” U.S.-Japan Trade Agreements

On October 7, 2019, after six months of formal negotiations, the United States and Japan signed two agreements intended to liberalize bilateral trade. One, the U.S.-Japan Trade Agreement (USJTA), provides for limited tariff reductions and quota expansions to improve market access. The other, the U.S.-Japan Digital Trade Agreement, includes commitments pertaining to digital aspects of international commerce, such as cross-border data flows. These agreements constitute what the Trump and Abe Administrations envision as “stage one” of a broader trade liberalization negotiation, which the two...

Iran’s Nuclear Program: Status

Iran’s nuclear program began during the 1950s. The United States has expressed concern since the mid-1970s that Tehran might develop nuclear weapons. Iran’s construction of gas centrifuge uranium enrichment facilities is currently the main source of proliferation concern. Gas centrifuges can produce both low-enriched uranium (LEU), which can be used in nuclear power reactors, and weapons-grade highly enriched uranium (HEU), which is one of the two types of fissile material used in nuclear weapons.

Is Iran Capable of Building Nuclear Weapons?

The United States has assessed that Tehran...

Demand for Broadband in Rural Areas: Implications for Universal Access

As of 2019, over 20 million Americans—predominantly those living in rural areas—lacked access to high speed broadband service according to the Federal Communications Commission (FCC). Federal subsidies underwritten by taxpayer funds and long-distance telephone subscriber fees have injected billions of dollars into rural broadband markets over the past decade—mostly on the supply side in the form of grants, loans, and direct support to broadband providers.

Yet, adoption rates have leveled off after more than a decade of rapid growth, even as broadband providers have extended service to...

Repurchase Agreements (Repos): A Primer

Leveraged Lending and Collateralized Loan Obligations: Frequently Asked Questions

Leveraged lending generally refers to loans made to businesses that are highly indebted or have a low credit rating. Most leveraged loans are syndicated, meaning a group of bank or nonbank lenders collectively funds a leveraged loan made to a single borrower, in contrast to a traditional loan held by a single bank. In some cases, investors hold leveraged loans directly. However, more than 60% of leveraged loans are securitized into collateralized loan obligations (CLOs)—securities backed by cash flow from pools of leveraged loans. These securities are then sold to investors. The largest...

Department of Defense First Agency-wide Financial Audit (FY2018): Background and Issues for Congress

The Chief Financial Officers Act of 1990 (CFO Act, P.L. 101-576) requires annual financial audits of federal agencies’ financial statements to “assure the issuance of reliable financial information ... deter fraud, waste and abuse of Government resources ... [and assist] the executive branch ... and Congress in the financing, management, and evaluation of Federal programs.” Agency inspectors general (IGs) are responsible for the audits and may contract with one or more external auditors. Congressional interest in the Department of Defense’s (DOD’s) audits is especially acute because DOD’s...

Farm Policy: USDA’s 2019 Trade Aid Package

On May 23, 2019, Secretary of Agriculture Sonny Perdue announced that the U.S. Department of Agriculture (USDA) would undertake a second trade aid package in 2019 valued at up to $16 billion—similar to a trade aid package initiated in 2018 valued at $12 billion—to assist farmers in response to trade damage from continued tariff retaliation and trade disruptions.

Under the 2019 trade aid package, USDA will use its authority under the Commodity Credit Corporation (CCC) Charter Act to fund three separate programs to assist agricultural producers in 2019 while the Administration works to...

Charitable Conservation Contributions: Potential for Abuse?

Taxpayers may be able to claim a charitable deduction for the value of qualified conservation contributions, which include conservation easements. In recent years, deductions for conservation contributions have increased. There are concerns that some of this increase has been driven by syndicated conservation easements, where a pass-through business entity acquires real property on behalf of investors, makes a conservation contribution to a qualified organization, and then allocates the tax benefits among the investors. Conservation contributions made through syndicated conservation...

Video Broadcasting from the Federal Courts: Issues for Congress

Members of Congress, along with the legal community, journalists, and the public, have long considered the potential merits and drawbacks of using video cameras to record and/or broadcast courtroom proceedings. The first bill to propose video camera use in the federal courts was introduced in the House of Representatives in 1937, and since the mid-1990s, Members of Congress in both chambers have regularly introduced bills to expand the use of cameras in the federal courts and have sometimes held hearings on the subject.

Video cameras are commonly used in state and local courtrooms...

Overview of Continuing Appropriations for FY2020 (P.L. 116-59)

This report provides an analysis of the continuing appropriations provisions for FY2020 included in Division A (Continuing Appropriations Act, 2020) of H.R. 4378. The legislation also included a separate Division B (Health and Human Services Extenders and Other Matters), which extended multiple federal health care programs that were otherwise set to expire September 30, 2019, and provided for some adjustments to additional health programs. This report examines only Division A, the continuing resolution (CR) portion of the legislation. On September 27, 2019, the President signed H.R. 4378...

Financial Inclusion and Credit Access Policy Issues

Access to basic financial products and services is generally considered foundational for households to manage their financial affairs, improve their financial well-being, and graduate to wealth building activities in the future. Financial inclusion in three domains can be particularly important for households: access to bank and other payment accounts; access to the credit reporting system; and access to affordable short-term small-dollar credit. In the United States, robust consumer credit markets allow most consumers to access financial services and credit products to meet their needs...

Deficit Financing, the Debt, and “Modern Monetary Theory”

Explaining persistently low interest rates despite large deficits and rising debt has been one of the central challenges of macroeconomists since the end of the Great Recession. This dynamic has led to increasing attention to Modern Monetary Theory (MMT), presented as an alternative to the mainstream macroeconomic way of thinking, in some fiscal policy discussions. Such discussions are at times restricted by a difficulty, expressed by policymakers and economists alike, in understanding MMT’s core principles and how they inform MMT’s views on fiscal policy. MMT suggests that deficit...

Libra: A Facebook-led Cryptocurrency Initiative

On June 18, 2019, Facebook announced that, with 28 other members, it had founded the Libra Association, which planned to launch a new cryptocurrency, called Libra. The association released a white paper that outlined the characteristics of Libra and described its goal of creating a cryptocurrency that would overcome some of the challenges faced by other cryptocurrencies and deliver the possible benefits of the technology on a large scale.

President Trump and Treasury Secretary Mnuchin raised concerns about the Libra project, as did several Members of Congress during Senate Banking...

Gun Control: National Instant Criminal Background Check System (NICS) Operations and Related Legislation

The Federal Bureau of Investigation (FBI) administers a computer system of systems that is used to query federal, state, local, tribal, and territorial criminal history record information (CHRI) and other records to determine an individual’s firearms transfer/receipt and possession eligibility. This FBI-administered system is the National Instant Criminal Background Check System (NICS). NICS, or parallel state systems, must be checked and the pending transfer approved by the FBI or state point of contact before a federally licensed gun dealer may transfer a firearm to any customer who is...

Expired and Expiring Tax Provisions (“Tax Extenders”): CRS Resources

Some Members of Congress have expressed interest in extending temporary tax provisions that expired at the end of 2017 and 2018, and possibly extending provisions scheduled to expire at the end of 2019. Collectively, temporary tax provisions that are regularly extended as a group by Congress, rather than being allowed to expire as scheduled, are often referred to as “tax extenders.”

Temporary tax provisions were most recently extended in the Bipartisan Budget Act of 2018 (BBA18; P.L. 115-123). BBA18 extended nearly all of the provisions that had expired at the end of 2016, with most...

Congressional Budget Office: Appointment and Tenure of the Director and Deputy Director

The requirements regarding the appointment and tenure of the Congressional Budget Office (CBO) director are set forth in Section 201(a) of the 1974 Congressional Budget Act, as amended, and codified at 2 U.S.C. 601(a). The Speaker of the House of Representatives and the President pro tempore of the Senate jointly appoint the director after considering recommendations received from the House and Senate Budget Committees. The Budget Committee chairs inform the congressional leaders of their recommendations by letter. The appointment is usually announced in the Congressional Record.

Section...

The Diversity Immigrant Visa Program

The purpose of the diversity immigrant visa program (DV program, sometimes called “the green card lottery” or “the visa lottery”) is, as the name suggests, to foster legal immigration from countries other than the major sending countries of current immigrants to the United States. Current law weights the allocation of immigrant visas primarily toward individuals with close family in the United States and, to a lesser extent, toward those who meet particular employment needs. The diversity immigrant category was added to the Immigration and Nationality Act (INA) by the Immigration Act of...

Overtime Exemptions in the Fair Labor Standards Act for White-Collar Employees: Frequently Asked Questions

The Fair Labor Standards Act (FLSA), enacted in 1938, is the main federal law that establishes general wage and hour standards for most, but not all, private and public sector employees. Among other protections, the FLSA establishes that covered nonexempt employees must be compensated at one-and-a-half times their regular rate of pay for each hour worked over 40 hours in a workweek.

The FLSA also establishes certain exemptions from its general labor market standards. One of the major exemptions to the overtime provisions in the FLSA is for bona fide “executive, administrative, and...

Capital Markets: Asset Management and Related Policy Issues

The asset management industry is large and complex. Asset management companies—also known as investment management companies, or asset managers—are companies that manage money for a fee with the goal of growing it for those who invest with them. The most well-known product these companies create are investment funds. Many types of investment funds exist, including mutual funds, exchange-traded funds (ETFs), hedge funds, private equity, and venture capital. Their business practices and the types of regulatory requirements to which they are subject are far from standardized. Investment funds...

U.S. Offshore Aquaculture Regulation and Development

Regulatory uncertainty has been identified as one of the main barriers to offshore aquaculture development in the United States. Many industry observers have emphasized that congressional action may be necessary to provide statutory authority to develop aquaculture in offshore areas. Offshore aquaculture is generally defined as the rearing of marine organisms in ocean waters beyond significant coastal influence, primarily in the federal waters of the exclusive economic zone (EEZ). Establishing an offshore aquaculture operation is contingent on obtaining several federal permits and...

U.S.-China Tariff Actions by the Numbers

Since early 2018, the United States and China have imposed a series of tariffs against one another’s products. These tariffs now affect the majority of trade between the two countries. U.S. tariffs imposed under Section 301 of the Trade Act of 1974 (which followed an investigation on China’s intellectual property rights practices) and China’s retaliatory tariffs affect the largest share of U.S.-China trade. Earlier U.S. tariffs (and Chinese retaliation) on steel and aluminum (Section 232) and solar panels and washing machines (Section 201) also affect U.S.-China trade. The Trump...

Human Rights in China and U.S. Policy: Issues for the 116th Congress

This report examines selected human rights issues in the People’s Republic of China (PRC) and policy options for Congress. U.S. concern over human rights in China has been a central issue in U.S.-China relations, particularly since the Tiananmen crackdown in 1989. In recent years, human rights conditions in China have deteriorated, while bilateral tensions related to trade and security have increased, possibly creating both constraints and opportunities for U.S. policy on human rights.

After consolidating power in 2013, Chinese Communist Party (CCP) General Secretary and State President Xi...

Executive Branch Service and the “Revolving Door” in Cabinet Departments: Background and Issues for Congress

Individuals may be subject to certain restrictions when leaving the government for private employment or joining the government from the private sector. These restrictions were enacted in response to what is often referred to as the revolving door. Generally, the revolving door is described as the movement of individuals between the public and private sector. Individuals may move because they possess policy and procedural knowledge and have relationships with former colleagues that are useful to prospective employers.

Laws attempting to restrict the movement of individuals between the...

Strategic Petroleum Reserve: Mandated Sales and Reform

The Strategic Petroleum Reserve (SPR), administered by the Department of Energy (DOE), has played a role in U.S. energy policy for over 40 years. Over that time, its primary focus has changed from its original intent as world oil market conditions have changed. Originally intended to offset the market power of cartels and prevent economic damage from oil supply disruption, it has become primarily a tool for combatting the fuel market effects of domestic natural disasters like hurricanes. Most recently, U.S. net imports of oil and petroleum products have decreased as a result of the...

The Budget Control Act: Frequently Asked Questions

When there is concern with deficit or debt levels, Congress will sometimes implement budget enforcement mechanisms to mandate specific budgetary policies or fiscal outcomes. The Budget Control Act of 2011 (BCA; P.L. 112-25), which was signed into law on August 2, 2011, includes several such mechanisms.

The BCA as amended has three main components that currently affect the annual budget. One component imposes annual statutory discretionary spending limits for defense and nondefense spending. A second component requires annual reductions to the initial discretionary spending limits...

The Defense Budget and the Budget Control Act: Frequently Asked Questions

Enacted on August 2, 2011, the Budget Control Act of 2011 as amended (P.L. 112-25, P.L. 112-240, P.L. 113-67, P.L. 114-74, P.L. 115-123, and P.L. 116-37) sets limits on defense and nondefense discretionary spending. As part of an agreement to increase the statutory limit on public debt, the BCA aimed to reduce annual federal budget deficits by a total of at least $2.1 trillion from FY2012 through FY2021, with approximately half of the savings to come from defense.

The spending limits (or caps) apply separately to defense and nondefense discretionary budget authority. Budget authority is...

U.S. Payment System Policy Issues: Faster Payments and Innovation

Technological advances in digitization and data processing and storage have greatly increased the availability and convenience of electronic payments. New products and services offer faster, more convenient payment for individuals and businesses, and the numerous options on offer foster competition and innovation among end-user service providers. Currently, many new payment services are layered on top of existing electronic payment systems, which may limit their speed.

Most payments flow through both retail and wholesale payment systems before they are completed. Consumers access retail...

Holocaust-Era Insurance Claims

Retaliatory Tariffs and U.S. Agriculture

Certain foreign nations have targeted U.S. food and agricultural products with retaliatory tariffs since early 2018 in response to U.S. Section 232 tariffs on steel and aluminum imports and Section 301 tariffs levied on U.S. imports from China. Retaliatory tariffs have made imports of U.S. agricultural products relatively more expensive compared to similar products from competitor nations. In the short run, U.S. shipments of products to countries with retaliatory tariffs have declined, reducing overall global demand for affected U.S. agricultural products and driving down the prices of...

Holocaust-Era Insurance Claims: Background and Issues for Congress

In November 1998, U.S. insurance regulators, six European insurers, international Jewish organizations, and the State of Israel agreed to establish the International Commission on Holocaust Era Insurance Claims (ICHEIC). ICHEIC was tasked with identifying policyholders and administering payment of hundreds of thousands of Holocaust-era insurance policies that had never been honored by European insurance companies. It ended its claims process in March 2007, having offered payments totaling about $306 million to 48,263 claimants. An additional $169 million was allocated to a “humanitarian...

Antitrust and “Big Tech”

Over the past decade, Google, Amazon, Facebook, and Apple (“Big Tech” or the “Big Four”) have revolutionized the internet economy and affected the daily lives of billions of people worldwide. While these companies are responsible for momentous technological breakthroughs and massive wealth creation, they have also received scrutiny related to their privacy practices, dissemination of harmful content and misinformation, alleged political bias, and—as relevant here—potentially anticompetitive conduct. In June 2019, the Wall Street Journal reported that the Department of Justice (DOJ) and...

Household Debt Among Older Americans, 1989-2016

In the past three decades, debt has grown substantially among older Americans. The increase in debt among older Americans has raised concerns about financial security for people near or during retirement, not only because Americans aged 65 and older represent a large and growing proportion of the U.S. population, but also because increases in household debt might require retirees to devote a larger share of their fixed income from Social Security, pensions, or government subsidies toward paying debt. Older people also tend to have limited ability to adjust their labor supply to offset...

Overseas Contingency Operations Funding: Background and Status

Congressional interest in Overseas Contingency Operation (OCO) funding has continued as Members debate ways of funding priorities without breaching discretionary spending limits set in law.

Since the terrorist attacks of September 11, 2001, Congress has appropriated $2 trillion in discretionary budget authority designated as emergency requirements or for Overseas Contingency Operations/Global War on Terrorism (OCO/GWOT) in support of the broad U.S. government response to the 9/11 attacks and for other related international affairs activities. This figure amounts to 9.5% of total...

Flooding Events: CRS Experts

The following table provides access to names and contact information for CRS experts on policy concerns relating to flooding events in the United States. Policy areas identified include disaster assistance and recovery matters, and impacts such as displaced residents and business, losses in agricultural production, disruptions in transportation (river, rail, and highway), problems with water treatment and supply; responses and recovery operations such as disaster declarations and federal assistance, public health provisions, federal flood insurance, agricultural disaster relief and...

State and Local Financing of Public Schools

The funding of public elementary and secondary schools in the United States involves a combination of local, state, and federal government revenues, in proportions that vary substantially both across and within states. According to the most recent data, state governments provide 47.0% of these revenues, local governments provide 44.8%, and the federal government provides 8.3%. Over the last several decades, the share of public elementary and secondary education revenues provided by state governments has increased, the share provided by local governments has decreased, and the federal share...

Small Business Credit Markets and Selected Policy Issues

Small businesses are owned by and employ a wide variety of entrepreneurs—skilled trade technicians, medical professionals, financial consultants, technology innovators, and restaurateurs, among many others. As do large corporations, small businesses rely on credit to purchase inventory, to cover cash flow shortages that may arise from unexpected expenses or periods of inadequate income, or to expand operations. During the Great Recession of 2007-2009, lending to small businesses declined. A decade after the recession, it appears that while many small businesses enjoy increased access to...

Proposed Relocation/Realignment of USDA’s ERS and NIFA

Bitcoin, Blockchain, and the Energy Sector

The popularity of cryptocurrencies such as Bitcoin and the underlying blockchain technology presents both challenges and opportunities to the energy sector. As interest in Bitcoin and other cryptocurrencies has increased, the energy demand to support cryptocurrency “mining” activities has also increased. The increased energy demand—when localized—can exceed the available power capacity and increase customers’ electricity rates. On the other hand, not all cryptocurrencies require energy-intensive mining operations. Some cryptocurrencies can operate under algorithms that require less energy....

Export-Import Bank: Overview and Reauthorization Issues

The Export-Import Bank of the United States (Ex-Im Bank or the Bank)—commonly referred to as the official export credit agency (ECA) of the United States—provides financing and insurance to facilitate the export of U.S. goods and services to support U.S. jobs. Ex-Im Bank, a wholly owned U.S. government corporation, operates pursuant to a renewable statutory charter (Export-Import Bank Act of 1945, as amended; 12 U.S.C. §635 et seq.), and also abides by international rules on ECA financing under the Organization for Economic Cooperation for Development (OECD). The Bank aims to provide...

Labor, Health and Human Services, and Education: FY2019 Appropriations

This report offers an overview of actions taken by Congress and the President to provide FY2019 appropriations for accounts funded by the Departments of Labor, Health and Human Services, and Education, and Related Agencies (LHHS) appropriations bill. This bill includes all accounts funded through the annual appropriations process at the Department of Labor (DOL) and Department of Education (ED). It also provides annual appropriations for most agencies within the Department of Health and Human Services (HHS), with certain exceptions (e.g., the Food and Drug Administration is funded via the...

3D Printing: Overview, Impacts, and the Federal Role

Three-dimensional (3D) printing, also known as additive manufacturing, is a highly flexible manufacturing process that has been used in product development and production for the past 30 years. Greater capabilities, lower prices, and an expanded range of manufacturing materials have vastly expanded adoption of 3D printers over the last decade and a half. The economic and scientific potential of this technology, as well as certain regulatory concerns (such as 3D printing of firearms), have recently increased congressional interest.

3D printers are used in a variety of industries—such as...

Behavioral Economics, IRS Letter Campaigns, and Tax Compliance

Research from the fields of behavioral economics and behavioral science suggests there may be cost-effective ways for the Internal Revenue Service (IRS) to increase tax compliance and collections. This Insight discusses one relatively simple approach to potentially increase compliance: carefully crafted letters to taxpayers. The discussion below is also intended to introduce the reader to a small portion of the vocabulary used by behavioral economists.

Classical and Behavioral Theories

According to the most recent estimates, the IRS collects about 84% of the taxes it should be collecting....

The Front End of the Nuclear Fuel Cycle: Current Issues

Nuclear power contributes roughly 20% of the electrical generation in the United States. Uranium is the fundamental element in fuel used for nuclear power production. The nuclear fuel cycle is the cradle-to-grave life cycle from extracting uranium ore from the earth through power production in a nuclear reactor to permanent disposal of the resulting spent nuclear fuel.

The front-end of the nuclear fuel cycle considers the portion of the nuclear fuel cycle leading up to electrical power production in a nuclear reactor. The front-end of the nuclear fuel cycle has four stages: mining and...

Overview of Recent Administrative Reforms of Fannie Mae and Freddie Mac

Congress chartered Fannie Mae and Freddie Mac, also known collectively as the government-sponsored enterprises (GSEs), to promote homeownership for underserved groups and locations by providing liquidity to the secondary mortgage market. The GSEs specifically facilitate financing for single-family residential mortgages and multifamily (apartment and condominium) construction. After purchasing pools of single-family 30-year fixed rate mortgages, the GSEs retain the credit (default) risks from the whole mortgages and subsequently issue mortgage-backed securities (MBSs), which are bond-like...

Job Creation in the Manufacturing Revival

The health of the U.S. manufacturing sector is of ongoing interest to Congress. Numerous bills aimed at promoting manufacturing are introduced in each Congress, often with the stated goal of creating jobs. Implicit in many of these bills is the assumption that the manufacturing sector is uniquely able to provide well-paid employment for workers who have not pursued education beyond high school.

Definitional issues have made it more challenging to assess the state of the manufacturing sector. Lines between manufacturing and other economic sectors are increasingly blurred. Many workers in...

Afghanistan: Background and U.S. Policy

Afghanistan has been a significant U.S. foreign policy concern since 2001, when the United States, in response to the terrorist attacks of September 11, 2001, led a military campaign against Al Qaeda and the Taliban government that harbored and supported it. In the intervening 18 years, the United States has suffered approximately 2,400 military fatalities in Afghanistan, with the cost of military operations reaching nearly $750 billion. Congress has appropriated approximately $133 billion for reconstruction. In that time, an elected Afghan government has replaced the Taliban, and most...

The Regional Greenhouse Gas Initiative: Background, Impacts, and Selected Issues

The Regional Greenhouse Gas Initiative (RGGI) was the nation’s first mandatory cap-and-trade program for greenhouse gas (GHG) emissions. RGGI currently involves nine states—Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. New Jersey is to rejoin the program in 2020. The RGGI cap-and-trade system applies only to carbon dioxide (CO2) emissions from electric power plants with capacities to generate 25 megawatts or more—165 facilities in the region. The RGGI emissions cap took effect January 1, 2009, based on an agreement signed by RGGI...

Section 232 Investigation: Uranium Imports

On July, 12, 2019, President Trump declined to impose quotas or other trade measures on imports of uranium materials under Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862). The President did not concur with the U.S. Department of Commerce’s (Commerce’s) findings that “uranium imports threaten to impair the national security of the United States as defined under section 232.” As part of his decision, the President established a Nuclear Fuel Working Group to “examine the current state of domestic nuclear fuel production to reinvigorate the entire nuclear fuel supply chain,”...

Federal Highway Traffic Safety Policies: Impacts and Opportunities

In 2017, 37,133 Americans were killed in crashes involving motor vehicles. Motor vehicle crashes are a leading cause of death for Americans overall, and the number one cause of death for teenagers. Millions of people are injured in crashes annually, and motor vehicle crashes are estimated to have cost some $242 billion in 2010 in lost productivity, medical costs, legal costs, property damage, and time lost in congestion caused by crashes. As measured by the number of deaths per mile people are driving, the rate at which people are killed in traffic crashes declined significantly from 1929,...

Spending and Tax Expenditures: Distinctions and Major Programs

Spending programs and tax expenditures are the two primary ways that the federal government provides benefits to the public. Each type of intervention represents a transfer from the government to individuals and firms, though differences in the budget process, saliency, and targeting may have ramifications for usage across different types of services.

Federal expenditures (spending) are transfers from the federal government to individuals, firms, or institutions that do not draw directly from individual or corporate tax liability. Federal spending programs fall into three broad...

The Disaster Recovery Reform Act of 2018 (DRRA): A Summary of Selected Statutory Provisions

The Disaster Recovery Reform Act of 2018 (DRRA, Division D of P.L. 115-254) was enacted on October 5, 2018. DRRA is the most comprehensive reform of the Federal Emergency Management Agency’s (FEMA’s) disaster assistance programs since the passage of the Sandy Recovery Improvement Act of 2013 (SRIA, Division B of P.L. 113-2) and the Post-Katrina Emergency Management Reform Act of 2006 (PKEMRA, P.L. 109-295). DRRA focuses on improving pre-disaster planning and mitigation, response, and recovery, and increasing FEMA accountability. As such, it amends many sections of the Robert T. Stafford...

Critical Infrastructure: Emerging Trends and Policy Considerations for Congress

Protection of the nation’s critical infrastructure (CI) against asymmetric physical or cyber threats emerged in the late 1990s as a policy concern, which was then further amplified by the 9/11 terrorist attacks. Congress created the Department of Homeland Security (DHS) in the wake of the attacks, and directed the new Department to identify, prioritize, and protect systems and assets critical to national security, the economy, and public health or safety. Identification of CI assets was, and remains, a complex and resource-intensive task.

Many governmental and non-governmental...

Resources for Key Economic Indicators

An understanding of economic indicators and their significance is seen as essential to the formulation of economic policies. These indicators, or statistics, provide snapshots of an economy’s health as well as starting points for economic analysis. This report contains a list of selected authoritative U.S. government sources of economic indicators, such as gross domestic product (GDP), income, inflation, and labor force (including employment and unemployment) statistics.

Additional content includes related resources, frequently asked questions (FAQs), and links to external glossaries.

Beneficial Ownership Transparency in Corporate Formation, Shell Companies, Real Estate, and Financial Transactions

Beneficial ownership refers to the natural person or persons who invest in, control, or otherwise reap gains from an asset, such as a bank account, real estate property, company, or trust. In some cases, an asset’s beneficial owner may not be listed in public records or disclosed to federal authorities as the legal owner. For some years, the United States has been criticized by international bodies for gaps in the U.S. anti-money laundering system related to a lack of systematic beneficial ownership disclosure. While beneficial ownership information is relevant to several types of assets,...

Effects of Buy America on Transportation Infrastructure and U.S. Manufacturing

In 1978, Congress began placing domestic content restrictions on federally funded transportation projects that are carried out by nonfederal government agencies such as state and local governments. These restrictions, which have changed over the years, are commonly referred to as the Buy America Act, or more simply, Buy America. Although there has been ongoing congressional interest in domestic preference policy over the years, statements and actions by the Trump Administration about reinvigorating domestic manufacturing and investing in infrastructure have stimulated renewed interest in...

Critical Minerals and U.S. Public Policy

President Trump and various U.S. lawmakers have expressed concerns about U.S. reliance on critical mineral imports and potential disruption of supply chains that use critical minerals for various end uses, including defense and electronics applications. Chinese export quotas on a subset of critical minerals referred to as rare earth elements (REEs) and China’s 2010 curtailment of REE shipments to Japan heightened U.S. vulnerability concern.

In December 2017, Presidential Executive Order 13817, “A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals,” tasked the...

Policy and Legislative Research for Congressional Staff: Finding Documents, Analysis, News, and Training

This report is intended to serve as a finding aid for congressional documents, executive branch documents and information, news articles, policy analysis, contacts, and training, for use in policy and legislative research. It is not intended to be a definitive list of all resources, but rather a guide to pertinent subscriptions available in the House and Senate in addition to selected resources freely available to the public. This report is intended for use by congressional staff and will be updated as needed.

The Opioid Epidemic: Supply Control and Criminal Justice Policy—Frequently Asked Questions

Over the last several years, lawmakers in the United States have responded to rising drug overdose deaths, which increased four-fold from 1999 to 2017, with a variety of legislation, hearings, and oversight activities. In 2017, more than 70,000 people died from drug overdoses, and approximately 68% of those deaths involved an opioid.

Many federal agencies are involved in domestic and foreign efforts to combat opioid abuse and the continuing increase in opioid related overdose deaths. A subset of those agencies confront the supply side (some may also confront the demand side) of the opioid...

Technology Service Providers for Banks

Major Features of 529 Plans and Coverdells

Fiscal Policy Considerations for the Next Recession

Although the United States is currently experiencing its longest economic expansion, history has shown that economic expansions inevitably give way to economic slowdowns. If the next slowdown is significant, the economy could enter a recession, which is typically characterized by falling output and rising unemployment. Short-term forecasts are predicting continued economic expansion, but predicting when the economy may transition from expansion to recession is notoriously difficult, as the ebb and flow of the economy is determined by many different factors, including a number that lie...

Keystone XL Pipeline: The Saga Continues

On March 29, 2019, President Trump issued a new Presidential Permit for the proposed Keystone XL Pipeline, superseding the prior Presidential Permit issued by the U.S. State Department in 2017. By issuing the new permit personally, rather than delegating his permit authority as before, the President pursued a new approach to advance the pipeline project in the face of ongoing legal challenges. The pipeline’s developer, TC Energy (previously named TransCanada), has not yet made major capital commitments to the project as it evaluates changing oil market conditions and seeks “a clear path to...

The Economic Effects of the 2017 Tax Revision: Preliminary Observations

The 2017 tax revision, P.L. 115-97, often referred to as the Tax Cuts and Jobs Act, and referred to subsequently as the Act, substantially revised the U.S. tax system. The Act permanently reduced the corporate tax rate to 21%, made a number of revisions in business tax deductions (including limits on interest deductions), and provided a major revision in the international tax rules. It also substantially revised individual income taxes, including an increase in the standard deduction and child credit largely offset by eliminating personal exemptions, along with rate cuts, limits on...

Biologics and Biosimilars: Background and Key Issues

A biological product, or biologic, is a preparation, such as a drug or a vaccine, that is made from living organisms. Compared with conventional chemical drugs, biologics are relatively large and complex molecules. They may be composed of proteins (and/or their constituent amino acids), carbohydrates (such as sugars), nucleic acids (such as DNA), or combinations of these substances. Biologics may also be cells or tissues used in transplantation.

A biosimilar, sometimes referred to as a follow-on biologic, is a therapeutic drug that is highly similar but not structurally identical, to a...

Vehicle Electrification: Federal and State Issues Affecting Deployment

Most of the 270 million cars, trucks, and buses on U.S. highways are powered by internal combustion engines using gasoline or diesel fuel. However, improvements in technology have led to the emergence of vehicle electrification as a potentially viable alternative to internal combustion engines. Several bills pending in the 116th Congress address issues and incentives related to electric vehicles and charging infrastructure.

Experience with fully electric vehicles is relatively recent: While a few experimental vehicles were marketed in the United States in the 1990s, the first contemporary...

Programs Available to Unemployed Workers Through the American Job Center Network

Many federally funded programs that assist unemployed workers are co-located and coordinated through state and locally run American Job Centers (AJCs; also known as One-Stop Career Centers). The specific set of benefits and services available to a worker through the AJC network varies by the worker’s characteristics and reason for unemployment.

Unemployment insurance (UI) is a federal-state system and mandatory AJC partner. UI benefits are available to workers who have involuntarily lost their jobs and have demonstrated a required level of labor force attachment. UI provides weekly cash...

Financial Services and General Government (FSGG) FY2019 Appropriations: Independent Agencies and General Provisions

The Financial Services and General Government (FSGG) appropriations bill includes funding for more than two dozen independent agencies. Among them are the Consumer Product Safety Commission (CPSC), Election Assistance Commission (EAC), Federal Communications Commission (FCC), Federal Election Commission (FEC), Federal Labor Relations Authority (FLRA), Federal Trade Commission (FTC), General Services Administration (GSA), National Archives and Records Administration (NARA), Office of Personnel Management (OPM), Privacy and Civil Liberties Oversight Board (PCLOB), Securities and Exchange...

USDA Domestic Food Assistance Programs: FY2019 Appropriations

The Consolidated Appropriations Act, 2019 (P.L. 116-6) was enacted on February 15, 2019. This omnibus bill included appropriations for the U.S. Department of Agriculture (USDA), of which USDA’s domestic food assistance programs are a part. Prior to its enactment, the federal government had continued to operate for the first six months of the fiscal year under continuing resolutions (CRs). This report focuses on the enacted appropriations for USDA’s domestic food assistance programs and, in some instances, policy changes provided by the omnibus law. CRS Report R45230, Agriculture and...

Combating Corruption in Latin America: Congressional Considerations

Corruption of public officials in Latin America continues to be a prominent political concern. In the past few years, 11 presidents and former presidents in Latin America have been forced from office, jailed, or are under investigation for corruption. As in previous years, Transparency International’s Corruption Perceptions Index covering 2018 found that the majority of respondents in several Latin American nations believed that corruption was increasing. Several analysts have suggested that heightened awareness of corruption in Latin America may be due to several possible factors: the...

Major Agricultural Trade Issues in the 116th Congress

Sales of U.S. agricultural products to foreign markets absorb about one-fifth of U.S. agricultural production, thus contributing significantly to the health of the farm economy. Farm product exports, which totaled $143 billion in FY2018 (see chart below), make up about 9% of total U.S. exports and contribute positively to the U.S. balance of trade. The economic benefits of agricultural exports also extend across rural communities, while overseas farm sales help to buoy a wide array of industries linked to agriculture, including transportation, processing, and farm input suppliers.

U.S....

Federal Preemption in the Dual Banking System: An Overview and Issues for the 116th Congress

Banks play a critical role in the United States economy, channeling money from savers to borrowers and facilitating productive investment. While the nature of lawmakers’ interest in bank regulation has shifted over time, most bank regulations fall into one of three general categories. First, banks must abide by a variety of safety-and-soundness requirements designed to minimize the risk of their failure and maintain macroeconomic stability. Second, banks must comply with consumer protection rules intended to deter abusive practices and provide consumers with complete information about...

The Plug-In Electric Vehicle Tax Credit

The Potential Decline of Cash Usage and Related Implications

Electronic forms of payment have become increasingly available, convenient, and cost efficient due to technological advances in digitization and data processing. Anecdotal reporting and certain analyses suggest that businesses and consumers are increasingly eschewing cash payments in favor of electronic payment methods. Such trends have led analysts and policymakers to examine the possibility that the use and acceptance of cash will significantly decline in coming years and to consider the effects of such an evolution.

Cash is still a common and widely accepted payment system in the United...

Agriculture and Related Agencies: FY2019 Appropriations

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA) except for the Forest Service. It also funds the Food and Drug Administration (FDA) and—in even-numbered fiscal years—the Commodity Futures Trading Commission (CFTC).

Agriculture appropriations include both mandatory and discretionary spending. Discretionary amounts, though, are the primary focus during the bill’s development. The largest discretionary spending items are the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); agricultural research; rural development; FDA; foreign...

Financial Services and General Government (FSGG) FY2019 Appropriations: Overview

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. The House and Senate FSGG bills fund the same agencies, with one exception. The Commodity Futures Trading Commission (CFTC) is usually funded through the Agriculture appropriations bill in the House and the FSGG bill in the Senate.

President Trump submitted his FY2019 budget request on February 12, 2018. The request included a total of...

Enhanced Prudential Regulation of Large Banks

The 2007-2009 financial crisis highlighted the problem of “too big to fail” financial institutions—the concept that the failure of large financial firms could trigger financial instability, which in several cases prompted extraordinary federal assistance to prevent their failure. One pillar of the 2010 Dodd-Frank Act’s (P.L. 111-203) response to addressing financial stability and ending too big to fail is a new enhanced prudential regulatory (EPR) regime that applies to large banks and to nonbank financial institutions designated by the Financial Stability Oversight Council (FSOC) as...

Federally Supported Water Supply and Wastewater Treatment Programs

For more than four decades, Congress has authorized and refined several programs to help communities address water supply and wastewater problems. The agencies that administer these programs differ in multiple ways. In terms of funding mechanisms, projects developed by the Bureau of Reclamation (Reclamation) and the U.S. Army Corps of Engineers (USACE) typically require direct, individual project authorizations from Congress.

In contrast, standing program authorizations provide project funding for other agencies, including

the Department of Agriculture (USDA),

the U.S. Environmental...

Cybersecurity: Legislation and Hearings, 115th-116th Congresses

Most major cybersecurity legislative provisions were enacted prior to 2002, despite many recommendations having been made over the past decade. More recently, in the 115th and 116th Congresses, cybersecurity legislation has received either committee or floor action or final passage, and both chambers have held multiple hearings.

In the 116th Congress, a number of House and Senate bills have received consideration, and hearings have been held by committees in each chamber.

In the 115th Congress, 31 bills received some type of action (committee consideration or passage by one or both...

Water Infrastructure Financing: The Water Infrastructure Finance and Innovation Act (WIFIA) Program

The Water Infrastructure Finance and Innovation Act (WIFIA) program provides financial assistance for water infrastructure projects, including projects to build and upgrade wastewater and drinking water treatment systems. Congress established the WIFIA program in the Water Resources Reform and Development Act of 2014 (WRRDA 2014, P.L. 113-121).

The WIFIA concept is modeled after a similar program that finances transportation projects, the Transportation Infrastructure Finance and Innovation Act (TIFIA) program. Proponents of the WIFIA approach, including water utility organizations, cite...

The National Institutes of Health (NIH): Background and Congressional Issues

The National Institutes of Health (NIH), under the Department of Health and Human Services (HHS), is the primary federal agency charged with performing and supporting biomedical and behavioral research. In FY2018, NIH used its over $34 billion budget to support more than 300,000 scientists and research personnel working at over 2,500 institutions across the United States and abroad, as well as to conduct biomedical and behavioral research and research training at its own facilities. The agency consists of the Office of the Director, in charge of overall policy and program coordination, and...

The Federal Communications Commission: Current Structure and Its Role in the Changing Telecommunications Landscape

The Federal Communications Commission (FCC) is an independent federal agency established by the Communications Act of 1934 (1934 Act, or “Communications Act”). The agency is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable. The mission of the FCC is to make available for all people of the United States, “without discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient, Nationwide, and worldwide wire and radio communication service with adequate facilities at reasonable charges.”

The...

Tax Equity Financing: An Introduction and Policy Considerations

This report provides an introduction to the general tax equity financing mechanism. The term tax equity investment describes transactions that pair the tax credits or other tax benefits generated by a qualifying physical investment with the capital financing associated with that investment. These transactions involve one party agreeing to assign the rights to claim the tax credits to another party in exchange for an equity investment (i.e., cash financing). The exchange is sometimes referred to as “monetizing,” “selling,” or “trading” the tax credits. Importantly, however, the “sale” of...

Bosnia and Herzegovina: Background and U.S. Policy

Bosnia and Herzegovina (hereafter, “Bosnia”) drew heavily on U.S. support after gaining independence from Yugoslavia in 1992. The United States helped end the Bosnian war (1992-1995), one of the most lethal conflicts in Europe since the Second World War, by leading NATO airstrikes against Bosnian Serb forces, brokering the Dayton Peace Agreement in 1995, and deploying 20,000 U.S. troops. Some Members of Congress became involved in policy debates over these measures, and Congress monitored and at times challenged the Bush and Clinton Administrations’ response through numerous hearings,...

Drug Pricing and Intellectual Property Law: A Legal Overview for the 116th Congress

Intellectual property (IP) rights play an important role in the development and pricing of pharmaceutical products such as prescription drugs and biologics. In order to encourage innovation, IP law grants the rights holder a temporary monopoly on a particular invention or product, potentially enabling him to charge higher-than-competitive prices. IP rights, if sufficiently limited, are typically justified as necessary to allow pharmaceutical manufacturers the ability to recoup substantial costs in research and development, including clinical trials and other tests necessary to obtain...

Virtual Currencies and Money Laundering: Legal Background, Enforcement Actions, and Legislative Proposals

Law enforcement officials have described money laundering—the process of making illegally obtained proceeds appear legitimate—as the “lifeblood” of organized crime. Recently, money launderers have increasingly turned to a new technology to conceal the origins of illegally obtained proceeds: virtual currency. Virtual currencies like Bitcoin, Ether, and Ripple are digital representations of value that, like ordinary currency, function as media of exchange, units of account, and stores of value. However, unlike ordinary currencies, virtual currencies are not legal tender, meaning they cannot...

Overview of Federal Housing Assistance Programs and Policy

The federal government has been involved in providing housing assistance to lower-income households since the 1930s. In the beginning, the federal government played a role in supporting the mortgage market (through establishment of the Federal Housing Administration [FHA] and the government-sponsored enterprises) and in promoting construction of low-rent public housing for lower-income families through local public housing authorities (PHAs). Over time, the federal government has shifted away from providing construction-based subsidies toward providing rental subsidies, and private...

Data Protection Law: An Overview

Recent high-profile data breaches and other concerns about how third parties protect the privacy of individuals in the digital age have raised national concerns over legal protections of Americans’ electronic data. Intentional intrusions into government and private computer networks and inadequate corporate privacy and cybersecurity practices have exposed the personal information of millions of Americans to unwanted recipients. At the same time, internet connectivity has increased and varied in form in recent years. Americans now transmit their personal data on the internet at an...

Department of State and Foreign Operations Appropriations: History of Legislation and Funding in Brief

Congress currently appropriates most foreign affairs funding through annual Department of State, Foreign Operations, and Related Programs (SFOPS) appropriations. Prior to FY2008, however, Congress provided funding for the Department of State, international broadcasting, and related programs within the Commerce, Justice, State, the Judiciary, and Related Agencies appropriations. In those years, Congress separately appropriated funding for the U.S. Agency for International Development (USAID) and foreign aid within the Foreign Operations, Export Financing, and Related Programs...

Attaching a Price to Greenhouse Gas Emissions with a Carbon Tax or Emissions Fee: Considerations and Potential Impacts

The U.S. Fourth National Climate Assessment, released in 2018, concluded that “the impacts of global climate change are already being felt in the United States and are projected to intensify in the future—but the severity of future impacts will depend largely on actions taken to reduce greenhouse gas [GHG] emissions and to adapt to the changes that will occur.” Members of Congress and stakeholders articulate a wide range of perspectives over what to do, if anything, about GHG emissions, future climate change, and related impacts. If Congress were to consider establishing a program to...

Overview of FY2019 Appropriations for Commerce, Justice, Science, and Related Agencies (CJS)

This report describes actions taken by the Trump Administration and Congress to provide FY2019 funding for Commerce, Justice, Science, and Related Agencies (CJS) accounts. It also provides an overview of enacted FY2018 funding for agencies and bureaus funded as part of annual CJS appropriations acts.

The Administration requested $66.555 billion for CJS for FY2019. The request included $9.797 billion for the Department of Commerce, $28.835 billion for the Department of Justice (DOJ), $27.372 billion for the science agencies, and $551 million for the related agencies. The Administration’s...

The Value of Energy Tax Incentives for Different Types of Energy Resources

The U.S. tax code supports the energy sector by providing a number of targeted tax incentives, or tax incentives available only for the energy industry. Some policymakers have expressed interest in understanding how energy tax benefits are distributed across different domestic energy resources. For example, what percentage of energy-related tax benefits support fossil fuels (or support renewables)? How much domestic energy is produced using fossil fuels (or produced using renewables)? And how do these figures compare?

In 2017, the value of federal tax-related support for the energy sector...

District of Columbia Opportunity Scholarship Program (DC OSP): Overview, Implementation, and Issues

The District of Columbia Opportunity Scholarship Program (DC OSP) is the only federally funded voucher program for elementary and secondary education. It operates exclusively in the District of Columbia. The Consolidated Appropriations Act, 2004 (P.L. 108-199), which included the FY2004 District of Columbia Appropriations Act, also included the now-repealed DC School Choice Incentive Act of 2003. The DC School Choice Incentive Act initially authorized the DC OSP. Appropriations were authorized for FY2004 through FY2008. The DC OSP provides scholarships to eligible students to attend...

Budget Issues That Shaped the 2018 Farm Bill

The farm bill is an omnibus, multiyear law that governs an array of agricultural and food programs. The farm bill has typically undergone reauthorization about every five years. The current farm bill—the Agriculture Improvement Act of 2018 (P.L. 115-334), often called the “2018 farm bill”—was enacted in December 2018 and expires in 2023. Budget for the 2018 Farm Bill (dollars in millions, FY2019-FY2023, mandatory outlays) Farm bill titlesApril 2018 baselineScore of P.L. 115-334Projected outlays at enactment

Commodities 31,340 +101 31,440

Conservation...

Federal Disaster Assistance After Hurricanes Katrina, Rita, Wilma, Gustav, and Ike

This report provides information on federal financial assistance provided to the Gulf States after major disasters were declared in Alabama, Florida, Louisiana, Mississippi, and Texas in response to the widespread destruction that resulted from Hurricanes Katrina, Rita, and Wilma in 2005 and Hurricanes Gustav and Ike in 2008.

Though the storms happened over a decade ago, Congress has remained interested in the types and amounts of federal assistance that were provided to the Gulf Coast for several reasons. This includes how the money has been spent, what resources have been provided to...

Considerations for Implementing a Small Business Disaster Grant Program

Throughout the years, Congress has expressed interest and concern for businesses recovering from disasters. For nearly a century, the federal government’s policy for providing disaster assistance to businesses has been limited primarily to low interest loans rather than grant assistance. More recently, Congress has contemplated whether grants should be made available to small businesses after a major disaster. During this debate, some have questioned why small businesses are not eligible for disaster grants when residences, nonprofit groups, and state and local governments are eligible. In...

Puerto Rico: CRS Experts and Products

SUPPRESS Puerto Rico is in the midst of a fiscal crisis resulting from economic contraction, public sector debt, outmigration, and other factors. To address the crisis, Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; P.L. 114-187), enacted on June 30, 2016. PROMESA established the Financial Oversight and Management Board for Puerto Rico (Oversight Board), created processes for adjusting the island’s public debts, among other provisions. PROMESA allocated no federal funds to Puerto Rico.

The Puerto Rican Governor was charged with developing fiscal...

Housing Issues in the 115th Congress

A variety of housing-related issues were active during the 115th Congress. These issues included topics related to housing finance, tax provisions related to housing, housing assistance and grant programs administered by the Department of Housing and Urban Development (HUD), and regulatory review efforts underway at HUD. In some cases, the 115th Congress considered or passed legislation related to certain housing issues, such as mortgage-related provisions enacted as part of broader financial “regulatory relief” legislation and particular housing-related tax provisions. In other cases,...

Digital Services Taxes (DSTs): Policy and Economic Analysis

Several countries, primarily in Europe, and the European Commission have proposed or adopted taxes on revenue earned by multinational corporations (MNCs) in certain “digital economy” sectors from activities linked to the user-based activity of their residents. These proposals have generally been labeled as “digital services taxes” (DSTs). For example, beginning in 2019, Spain is imposing a DST of 3% on online advertising, online marketplaces, and data transfer service (i.e., revenue from sales of user activities) within Spain. Only firms with 750 million in worldwide revenue and 3 million...

The 2018 Farm Bill (P.L. 115-334): Summary and Side-by-Side Comparison

Congress sets national food and agriculture policy through periodic omnibus farm bills that address a broad range of farm and food programs and policies. The 115th Congress established the direction of farm and food policy for five years through 2023 by enacting the Agricultural Improvement Act of 2018, which the President signed into law on December 20, 2018, as P.L. 115-334.

The Congressional Budget Office (CBO) has scored the cost of programs with mandatory spending—such as nutrition programs, commodity support programs, major conservation programs, and crop insurance—in the enacted...

Banking Policy Issues in the 116th Congress

Regulation of the banking industry has undergone substantial changes over the past decade. In response to the 2007-2009 financial crisis, many new bank regulations were implemented pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act; P.L. 111-203) or under the existing authorities of bank regulators to address apparent weaknesses in the regulatory regime. While some observers view those changes as necessary and effective, others argued that certain regulations were unjustifiably burdensome. To address those concerns, the Economic Growth,...

The Transportation Infrastructure Finance and Innovation Act (TIFIA) Program

The Transportation Infrastructure Finance and Innovation Act (TIFIA) program, administered by the Department of Transportation’s Build America Bureau, provides long-term, low-interest loans and other types of credit assistance for the construction of surface transportation projects (23 U.S.C. §601 et seq.). The TIFIA program was reauthorized from FY2016 through FY2020 in the Fixing America’s Surface Transportation (FAST) Act (P.L. 114-94). Direct funding for the TIFIA program is authorized at $300 million for each of FY2019 and FY2020. Additionally, state departments of transportation can...

Selected International Insurance Issues in the 116th Congress

The growth of the international insurance market and trade in insurance products and services has created opportunities and new policy issues for U.S. insurers, Congress, and the U.S. financial system. Insurance regulation is centered on the states, with the federal government having a limited role. Although the risks of loss and the regulation may be local, the business of insurance, as with many financial services, has an increasingly substantial international component as companies and investors look to grow and diversify.

The 2010 Dodd-Frank Wall Street Reform and Consumer Protection...

Science and Technology Issues in the 116th Congress

Science and technology (S&T) have a pervasive influence over a wide range of issues confronting the nation. Public and private research and development spur scientific and technological advancement. Such advances can drive economic growth, help address national priorities, and improve health and quality of life. The ubiquity and constantly changing nature of science and technology frequently create public policy issues of congressional interest.

The federal government supports scientific and technological advancement directly by funding and performing research and development and...

LNG as a Maritime Fuel: Prospects and Policy

The combination of growing liquefied natural gas (LNG) supplies and new requirements for less polluting fuels in the maritime shipping industry has heightened interest in LNG as a maritime fuel. The use of LNG as an engine (“bunker”) fuel in shipping is also drawing attention from federal agencies and is beginning to emerge as an issue of interest in Congress.

In 2008, the International Maritime Organization (IMO) announced a timeline to reduce the maximum sulfur content in vessel fuels to 0.5% by January 1, 2020. Annex VI of the International Convention for the Prevention of Pollution...

Economics of Federal User Fees

The federal government collects various fees from businesses and households. Choosing to raise public funds via user fees, as opposed to other means such as taxes, has important administrative and economic consequences. Many fees stem from “business-like activities,” in which the government provides a service or benefit in return for payment. For example, many national parks charge entry fees, which then help fund maintenance projects. Such fees and charges that result from voluntary choices, such as entering a national park, are distinguished from taxes—which stem from the government’s...

Latin America and the Caribbean: Issues in the 115th Congress

Geographic proximity has ensured strong linkages between the United States and Latin America and the Caribbean, based on diverse U.S. interests, including economic, political, and security concerns. The United States is a major trading partner and the largest source of foreign investment for many countries in the region, with free-trade agreements enhancing economic linkages with 11 countries. The region is a large source of U.S. immigration, both legal and illegal; proximity and economic and security conditions are major factors driving migration. Curbing the flow of illicit drugs has...

BUILD Act: Frequently Asked Questions About the New U.S. International Development Finance Corporation

Members of Congress and Administrations have periodically considered reorganizing the federal government’s trade and development functions to advance various U.S. policy objectives. The Better Utilization of Investments Leading to Development Act of 2018 (BUILD Act), which was signed into law on October 5, 2018 (P.L. 115-254), represents a potentially major overhaul of U.S. development finance efforts. It establishes a new agency—the U.S. International Development Finance Corporation (IDFC)—by consolidating and expanding existing U.S. government development finance functions, which are...

Cybersecurity: Cybercrime and National Security Authoritative Reports and Resources

As online attacks grow in volume and sophistication, the United States is expanding its cybersecurity efforts. Cybercriminals continue to develop new ways to ensnare victims, whereas nation-state hackers compromise companies, government agencies, and businesses to create espionage networks and steal information. Threats come from both criminals and hostile countries, especially China, Russia, Iran, and North Korea.

Much is written on this topic, and this CRS report directs the reader to authoritative sources that address many of the most prominent issues. The annotated descriptions of...

Federal Grand Jury Secrecy: Legal Principles and Implications for Congressional Oversight

The Fifth Amendment to the U.S. Constitution states that “[n]o person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury.” This provision requires that a federal prosecutor, in order to charge a suspect with a serious federal crime, secure the assent of an independent investigative and deliberative body comprising citizens drawn from the jurisdiction in which the crime would be tried. Federal grand juries serve two primary functions: (1) they aid federal prosecutors in investigating possible crimes by issuing subpoenas...

The Federal Income Tax: How Do Marginal Income Tax Rates Work?

Calculating Income Tax Liability For many taxpayers, calculating their federal income tax liability can be broken down into three main steps. Taxpayers calculate the amount of their income subject to taxation (i.e., their taxable income). Taxpayers apply marginal income tax rates to their taxable income to determine their “pre-tax credit” income tax liability. Taxpayers subtract any tax credits from their pre-tax credit income tax liability to determine their final income tax liability. Some taxpayers with more complex tax situations, including those who are subject to the alternative...

Profiles and Effects of Retaliatory Tariffs on U.S. Agricultural Exports

Countries have imposed tariffs on U.S. agricultural products to retaliate against actions the Trump Administration took in spring 2018 to protect U.S. steel and aluminum producers and in response to Chinese intellectual property rights and technology policies. Since then, more than 800 U.S. food and agricultural products have been subject to retaliatory tariffs from China, the European Union (EU), Turkey, Canada, and Mexico. U.S. exports of those products to the retaliating countries totaled $26.9 billion in 2017, according to USDA export data. The choice of agricultural and food products...

The House-Proposed Tax Cut: Amendment to H.R. 88

Funding Gaps and Government Shutdowns: CRS Experts

Contacting CRS Subject Matter Experts In the event of a funding gap, the potential impacts of a government shutdown would depend on a program’s or agency’s specific circumstances and, furthermore, how relevant law is interpreted. Table 1 provides names and contact information for CRS subject matter experts on policy issues relating to funding gaps and the processes and effects that may be associated with a government shutdown. Policy areas that are identified in Table 1 include agencies and programs funded by specific regular appropriations bills; cross-cutting shutdown issues; domestic...

Selected International Insurance Issues in the 115th Congress

The growth of the international insurance market and trade in insurance products and services has created opportunities and new policy issues for U.S. insurers, Congress, and the U.S. financial system. Insurance regulation is centered on the states, with the federal government having a limited role. While the risks of loss and the regulation may be local, the business of insurance, as with many financial services, has an increasingly substantial international component as companies and investors look to grow and diversify.

The 2010 Dodd-Frank Wall Street Reform and Consumer Protection...

International Approaches to Digital Currencies

Since Bitcoin was introduced a decade ago, about 2,100 cryptocurrencies have been developed. Cryptocurrencies are digital representations of value that have no status as legal tender and are administered using distributed ledger technology, running on a network of independent, peer-to-peer computers. Cryptocurrencies are controversial. Some think they will revolutionize the international payments system for the better; others are skeptical of the business model, calling it a scam. The interest and debate surrounding cryptocurrencies has led some central banks to examine whether the...

USDA Domestic Food Assistance Programs: FY2018 Appropriations

The Consolidated Appropriations Act, 2018 (P.L. 115-141) was enacted on March 23, 2018. This omnibus bill included appropriations for the U.S. Department of Agriculture (USDA), of which USDA’s domestic food assistance programs are a part. Prior to its enactment, the federal government had continued to operate for the first six months of the fiscal year under continuing resolutions (CRs). This report focuses on the enacted appropriations for USDA’s domestic food assistance programs and, in some instances, policy changes provided by the omnibus law. CRS Report R45128, Agriculture and Related...

Shutdown of the Federal Government: Causes, Processes, and Effects

When federal agencies and programs lack funding after the expiration of full-year or interim appropriations, the agencies and programs experience a funding gap. If funding does not resume in time to continue government operations, then, under the Antideficiency Act, an agency must cease operations, except in certain situations when law authorizes continued activity. Funding gaps are distinct from shutdowns, and the criteria that flow from the Antideficiency Act for determining which activities are affected by a shutdown are complex.

Failure of the President and Congress to reach agreement...

Buprenorphine and the Opioid Crisis: A Primer for Congress

Buprenorphine is a medication used to treat adults addicted to opioids (it is also used in the treatment of pain). Buprenorphine’s effectiveness, safety, and availability in the treatment of opioid addiction are of considerable interest to policymakers seeking to address the ongoing opioid epidemic in the United States. Congressional actions taken in recent years to address the opioid crisis have included attempts to increase access to buprenorphine. This report addresses questions policymakers may have about the effectiveness of buprenorphine, the demand for buprenorphine, and access to...

Advanced Gene Editing: CRISPR-Cas9

Scientists have long sought the ability to control and modify DNA—the code of life. A gene editing technology known as CRISPR-Cas9 offers the potential for substantial improvement over other gene editing technologies in that it is simple to use and inexpensive and has a relatively high degree of precision and efficiency. These characteristics have led many in the scientific and business communities to assert that CRISPR-Cas9 will lead to groundbreaking advances in many fields, including agriculture, energy, ecosystem conservation, and the investigation, prevention, and treatment of...

Public Health and Other Related Provisions in P.L 115-271, the SUPPORT for Patients and Communities Act

On October 24, 2018, President Donald J. Trump signed into law H.R. 6, the Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities Act (P.L. 115-271; the SUPPORT for Patients and Communities Act, or the SUPPORT Act).

The SUPPORT Act is a sweeping measure designed to address widespread overprescribing and abuse of opioids in the United States. The act includes provisions involving law enforcement, public health, and health care financing and coverage. Broadly, the legislation imposes tighter oversight of opioid production and...

U.S. Trade Trends and Developments

Summary

The United States is the world’s biggest economy (in nominal dollars), leading trading nation (goods and services), and largest source of and destination for foreign direct investment. The U.S. output of goods and services, or gross domestic product (GDP), totaled $19.5 trillion in 2017. That is almost the combined GDP in nominal dollars of the next three largest economies. All told, the United States, with close to 5% of the world’s population, accounted for almost 25% of the world’s output and more than 16% of its growth in 2017. While the United States is the world’s largest...

Trends in Social Security Disability Insurance Enrollment

The Social Security Disability Insurance (SSDI) program pays cash benefits to non-elderly workers and their dependents provided that the workers have paid into the Social Security system for a sufficient number of years and are determined to be unable to continue performing substantial work because of a qualifying disability. The total number of disabled-worker beneficiaries was approximately 2.7 million in 1985, peaked at approximately 9.0 million in 2014, and then declined over the last three years by nearly 0.3 million. In December 2017, 8.7 million disabled workers received SSDI...

Cybersecurity: Critical Infrastructure Authoritative Reports and Resources

Critical infrastructure is defined in the USA PATRIOT Act (P.L. 107-56, §1016(e)) as “systems and assets, physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health and safety, or any combination of those matters.”

Presidential Decision Directive 63, or PDD-63, identified activities whose critical infrastructures should be protected: information and communications; banking and finance; water supply; aviation, highways, mass transit,...

After Prudential, Are There Any Systemically Important Nonbanks?

During the 2008 financial crisis, problems at AIG, Bear Stearns, and Lehman Brothers led to broader financial instability or government “bailouts” in order to prevent instability. At the time, these firms were nonbank financial institutions and not generally subject to effective safety and soundness regulation on a consolidated basis.

The Dodd Frank Act (P.L. 111-203) provided the Financial Stability Oversight Council (FSOC) with the authority to designate nonbanks for enhanced prudential oversight by the Federal Reserve as systemically important financial institutions (SIFIs). Since...

The U.S. Economy in a Global Context

Federal Student Loan Forgiveness and Loan Repayment Programs

Student loan forgiveness and loan repayment programs provide borrowers a means of having all or part of their student loan debt forgiven or repaid in exchange for work or service in specific fields or professions or following a prolonged period during which their student loan debt burden is high relative to their income. In both loan forgiveness and loan repayment programs, borrowers typically qualify for benefits by working or serving in certain capacities for a specified period or by satisfying other program requirements over an extended term. Upon qualifying for benefits, some or all of...

21st Century U.S. Energy Sources: A Primer

Since the start of the 21st century, the U.S. energy system has seen tremendous changes. Technological advances in energy production have driven changes in energy consumption, and the United States has moved from being a growing net importer of most forms of energy to a declining importer—and possibly a net exporter in the near future. The United States remains the second largest producer and consumer of energy in the world, behind China.

The U.S. oil and natural gas industry has gone through a “renaissance” of production. Technological improvements in hydraulic fracturing and horizontal...

National and International Educational Assessments: Overview, Results, and Issues

U.S. students participate in many assessments to track their educational achievement. Perhaps the most widely discussed of these are statewide assessments required by the Elementary and Secondary Education Act (ESEA), which was most recently comprehensively amended by the Every Student Succeeds Act (ESSA; P.L. 114-95). However, U.S. students also participate in large-scale national assessments, authorized by the National Assessment of Educational Progress Assessment Act (NAEPAA; Title III, Section 303 of P.L. 107-279), and international assessments, authorized by the Education Sciences...

EPA’s Affordable Clean Energy Proposal

In August 2018, the U.S. Environmental Protection Agency (EPA) proposed three actions in the “Affordable Clean Energy Rule” (ACE). First, EPA proposed to replace the Obama Administration’s 2015 Clean Power Plan (CPP) with revised emission guidelines for existing fossil fuel steam electric generating units (EGUs), which are largely coal-fired units. Second, EPA proposed revised regulations to implement emission guidelines under Clean Air Act (CAA) Section 111(d). Third, EPA proposed to modify an applicability determination for New Source Review (NSR), a CAA preconstruction permitting...

VA Maintaining Internal Systems and Strengthening Integrated Outside Networks Act of 2018 (VA MISSION Act; P.L.115-182)

On June 6, 2018, the John S. McCain III, Daniel K. Akaka, and Samuel R. Johnson VA Maintaining Internal Systems and Strengthening Integrated Outside Networks Act of 2018, or the VA MISSION Act of 2018 (S. 2372; P.L. 115-182; H.Rept. 115-671), was signed into law. The Department of Veterans Affairs Expiring Authorities Act of 2018 (S. 3479; P.L. 115-251), enacted on September 29, 2018, made some changes and technical amendments to the VA MISSION Act. This act, as amended, broadly addresses four major areas.

First, it establishes a new permanent Veterans Community Care Program (VCCP),...

Natural Gas Liquids: The Unknown Hydrocarbons

The U.S. oil and natural gas industries have gone through a “renaissance” of production. Technological improvements in hydraulic fracturing and horizontal drilling have unlocked enormous oil and natural gas resources from tight formations, such as shale. In conjunction with the rise in oil and natural gas production, U.S. production of natural gas liquids has also increased.

Natural gas liquids (NGLs) are a group of hydrocarbons that includes ethane, propane, butane, isobutane, and natural gasoline. NGLs are differentiated from one another by the number of carbon atoms in their molecular...

Tax Provisions That Expired in 2017 (“Tax Extenders”)

Twenty-eight temporary tax provisions expired at the end of 2017. Collectively, temporary tax provisions that are regularly extended as a group by Congress, rather than being allowed to expire as scheduled, are often referred to as “tax extenders.”

Temporary tax provisions were most recently extended in the Bipartisan Budget Act of 2018 (BBA18; P.L. 115-123). BBA18 extended nearly all of the provisions that had expired at the end of 2016, with most provisions extended through the end of 2017. For most provisions, this extension was purely retroactive. Since the BBA18 was enacted in...

Insurance Regulation: Legislation in the 115th Congress

Insurance companies constitute a major segment of the U.S. financial services industry. The insurance industry is often separated into two parts: (1) life and health insurance companies, which also often offer annuity products, and (2) property and casualty insurance companies, which include most other lines of insurance, such as homeowners insurance, automobile insurance, and various commercial lines of insurance purchased by businesses. Different lines of insurance present different characteristics and risks. Life insurance typically is a longer-term proposition with contracts stretching...

Banking: Current Expected Credit Loss (CECL)

Some observers asserted that leading up to the financial crisis of 2007-2009 banks did not have sufficient credit loss reserves or capital to absorb the resulting losses and as a consequence supported additional government intervention to stabilize the financial system. In its legislative oversight capacity, Congress has devoted attention to strengthening the financial system in an effort to prevent another financial crisis and avoid putting taxpayers at risk. However, some Members of Congress have expressed concern that financial reforms have been unduly burdensome, reducing the...

Federal Research and Development (R&D) Funding: FY2019

President Trump’s budget request for FY2019 includes approximately $131.0 billion for research and development (R&D), of which $118.056 billion is included in the President’s budget and an estimated additional $12.9 billion in nondefense discretionary R&D is requested as part of an addendum to the President’s budget. The additional funding requested in the addendum followed enactment of the Bipartisan Budget Act of 2018 (P.L. 115-123), which raised defense and nondefense discretionary spending caps for FY2018 and FY2019. In April 2018, the Administration issued amendments to the...

Labor Market Patterns Since 2007

The period since 2007 has been a time of significant change for labor markets. The Great Recession of 2007-2009, the longest and deepest recession since the Great Depression, caused the unemployment rate to briefly reach 10%, and labor markets have subsequently experienced a long and gradual recovery. Most labor force metrics, including the unemployment rate and various other measures of labor force underutilization, have returned to levels that have historically been consistent with full employment.

Labor Force Participation

One exception is the labor force participation rate (the ratio...

Cloture Attempts on Nominations: Data and Historical Development Through November 20, 2013

The motion for cloture is available in the Senate to limit debate on nominations, as on other matters. Table 6 lists all nominations against which cloture was moved from 1949, when the Senate changed the cloture rule to allow it to be moved on nominations, until November 21, 2013, when the Senate reinterpreted the rule to lower the threshold for invoking cloture on most nominations from three-fifths of the Senate to a majority of Senators voting. The reinterpretation of the rule significantly altered the use of cloture in the Senate, such that conclusions drawn from the data in this report...

Federal Reserve: Legislation in the 115th Congress

The Federal Reserve (Fed) is the subject of legislation being considered in the 115th Congress. This report analyzes Fed bills that have seen committee or floor action and the policy debate surrounding them. The bills contain wide-ranging changes that can be grouped into five broad categories:

Fed governance. Some proposals, such as H.R. 4753, would change the Fed’s institutional structure. H.R. 10, H.R. 4759, and H.R. 6741 would increase the voting weight of regional Fed presidents on the Federal Open Market Committee (FOMC) at the expense of the Fed’s Board of Governors and the New York...

Exchange-Traded Funds (ETFs): Issues for Congress

Exchange-traded funds (ETFs) are common ways for Americans to invest. An ETF is an investment vehicle that, similar to a mutual fund, offers public investors shares of a pool of assets; unlike a mutual fund, however, an ETF can be traded on exchanges like a stock. The catchall category of exchange-traded products (ETPs) includes all portfolio products that trade on exchanges.

U.S. ETF domestic listings stand at more than $3.4 trillion, making ETFs among the most important investment methods and critical components of the financial system. The first U.S. ETF was introduced in 1993 to track...

Systemically Important or “Too Big to Fail” Financial Institutions

Although “too big to fail” (TBTF) has been a long-standing policy issue, it was highlighted by the financial crisis, when the government intervened to prevent the near-collapse of several large financial firms in 2008. Financial firms are said to be TBTF when policymakers judge that their failure would cause unacceptable disruptions to the overall financial system. They can be TBTF because of their size or interconnectedness. In addition to fairness issues, economic theory suggests that expectations that a firm will not be allowed to fail create moral hazard—if the creditors and...

Long-Tenured Displaced Workers

Labor, Health and Human Services, and Education: FY2018 Appropriations

This report offers an overview of actions taken by Congress and the President to provide FY2018 appropriations for accounts funded by the Departments of Labor, Health and Human Services, and Education, and Related Agencies (LHHS) appropriations bill. This bill includes all accounts funded through the annual appropriations process at the Departments of Labor (DOL) and Education (ED). It also provides annual appropriations for most agencies within the Department of Health and Human Services (HHS), with certain exceptions (e.g., the Food and Drug Administration is funded via the Agriculture...

Hurricane Events: CRS Experts

The following table provides access to names and contact information for CRS experts on policy concerns related to hurricane events in the United States. Policy areas identified include disaster assistance and recovery matters extending to impacts such as displaced residents and business, disruptions in the energy sector and transportation, problems with water treatment and supply; responses and recovery operations such as disaster declarations and federal assistance, public health provisions, federal flood insurance, agricultural disaster relief and assistance, tax relief, environmental...

Natural Disasters and Hazards: CRS Experts

The following table provides the names and contact information for CRS experts on policy concerns relating to natural disasters and hazards in the United States. Policy areas identified include disaster assistance and recovery matters extending to impacts such as displaced residents and business, losses in agricultural production, disruptions in transportation (river, rail, and highway), problems with water treatment and supply; responses and recovery operations such as disaster declarations and federal assistance, public health provisions, federal flood insurance, agricultural disaster...

Costs of Government Interventions in Response to the Financial Crisis: A Retrospective

In August 2007, asset-backed securities (ABS), particularly those backed by subprime mortgages, suddenly became illiquid and fell sharply in value as an unprecedented housing boom turned into a housing bust. Losses on the many ABS held by financial firms depleted their capital. Uncertainty about future losses on illiquid and complex assets led to firms having reduced access to private liquidity, sometimes catastrophically. In September 2008, the financial crisis reached panic proportions, with some large financial firms failing or needing government assistance to prevent their...

Tax Policy and Disaster Recovery

Glider Kit, Engine, and Vehicle Regulations

On October 25, 2016, the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration jointly published the second phase of greenhouse gas (GHG) emissions and fuel efficiency standards for medium- and heavy-duty vehicles and engines. The rule affects commercial long-haul tractor-trailers, vocational vehicles, and heavy-duty pickup trucks and vans. It phases in between model years 2018 and 2027.

Under the rulemaking, EPA proposed a number of changes and clarifications for standards respecting “glider kits” and “glider vehicles.” A glider kit is a...

JOBS and Investor Confidence Act (House-Amended S. 488): Capital Markets Provisions

Capital markets provide financing for businesses to fund their growth that would facilitate innovation and jobs creation, and enhance the society’s overall standard of living. They are segments of the financial system in which funding is raised through issuing and trading equity or debt securities, which are forms of financial assets representing ownership or indebtedness of a firm. They are considered the largest source of financing for U.S. nonfinancial companies, significantly larger than bank loans and other forms of financing.

The Securities and Exchange Commission (SEC) is the...

Marketplace Lending: Fintech in Consumer and Small-Business Lending

Marketplace lending—also called peer-to-peer lending or online platform lending—is a nonbank lending industry that uses innovative financial technology (fintech) to make loans to consumers and small businesses. Although marketplace lending is small compared to traditional lending, it has grown quickly in recent years. In general, marketplace lenders accept applications for small, unsecured loans online and determine applicants’ creditworthiness using an automated algorithm. Often, the loans are then sold—individually or in pieces—directly to investors (although holding the loans on their...

The Clean Air Act’s Good Neighbor Provision: Overview of Interstate Air Pollution Control

Notwithstanding air quality progress since 1970, challenges remain to reduce pollution in areas exceeding federal standards and to ensure continued compliance elsewhere. The movement of air pollutants across state lines, known as interstate transport, has made it difficult for some downwind states to attain federal ozone and fine particulate matter (PM2.5) standards, partly because states lack authority to limit emissions from other states.

The Clean Air Act’s “Good Neighbor” provision (Section 110(a)(2)(D)) seeks to address this issue and requires states to prohibit emissions that...

Judge Brett M. Kavanaugh: His Jurisprudence and Potential Impact on the Supreme Court

On July 9, 2018, President Donald J. Trump announced the nomination of Judge Brett M. Kavanaugh of the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) to fill retiring Justice Anthony M. Kennedy’s seat on the Supreme Court of the United States. Nominated to the D.C. Circuit by President George W. Bush, Judge Kavanaugh has served on that court for more than twelve years. In his role as a Circuit Judge, the nominee has authored roughly three hundred opinions (including majority opinions, concurrences, and dissents) and adjudicated numerous high-profile cases...

Youth and the Labor Force: Background and Trends

Congress has indicated a strong interest in ensuring that today’s young people (ages 16 to 24) attain the education and employment experience necessary to make the transition to adulthood as skilled workers and taxpayers. This report provides context for Congress on trends in the labor force for youth. It discusses youth labor force data since 1948, with a focus on the period from 2000 to the present.

The labor market experiences of youth ages 16 to 24 have varied based on their age and other factors. Over the post-World War II period, teens ages 16 to 19 generally have had a lower labor...

The Earned Income Tax Credit (EITC): An Economic Analysis

The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers earning relatively low wages. The EITC, enacted more than 40 years ago, has evolved from a relatively modest tax benefit to a significant antipoverty program. This report reviews economic research on the EITC. Understanding the economic impact of the credit, as well as its limitations and potential drawbacks, may inform future legislative discussions of the EITC and other refundable tax credits.

When initially enacted in the 1970s, there were two major purposes of the EITC. First, the credit was...

Maritime Fuel Regulations

China-U.S. Trade Issues

U.S.-China economic ties have expanded substantially since China began reforming its economy and liberalizing its trade regime in the late 1970s. Total U.S.-China merchandise trade rose from $2 billion in 1979 (when China’s economic reforms began) to $636 billion in 2017. China is currently the United States’ largest merchandise trading partner, its third-largest export market, and its biggest source of imports. In 2015, sales by U.S. foreign affiliates in China totaled $482 billion. Many U.S. firms view participation in China’s market as critical to their global competitiveness. U.S....

The House and Senate 2018 Farm Bills (H.R. 2): A Side-by-Side Comparison with Current Law

Congress sets national food and agriculture policy through periodic omnibus farm bills that address a broad range of farm and food programs and policies. The 115th Congress has the opportunity to establish the future direction of farm and food policy, because many of the provisions in the current farm bill (the Agricultural Act of 2014, P.L. 113-79) expire in 2018.

On June 21, 2018, the House voted 213-211 to approve H.R. 2, the Agriculture and Nutrition Act of 2018, an omnibus farm bill that would authorize farm and food policy for FY2019-FY2023. The Senate passed its version of H.R. 2,...

North Korea: U.S. Relations, Nuclear Diplomacy, and Internal Situation

North Korea has posed one of the most persistent U.S. foreign policy challenges of the post-Cold War period due to its pursuit of proscribed weapons technology and belligerence toward the United States and its allies. With North Korea’s advances in 2016 and 2017 in its nuclear and missile capabilities under 34-year-old leader Kim Jong-un, Pyongyang has evolved from a threat to U.S. interests in East Asia to a potentially direct threat to the U.S. homeland. Efforts to halt North Korea’s nuclear weapons program have occupied the past four U.S. Administrations, and North Korea is the target...

Capital Markets, Securities Offerings, and Related Policy Issues

U.S. capital markets are the largest and considered to be the most efficient in the world. Companies rely heavily on capital access to fund growth and create jobs. As the principal regulator of U.S. capital markets, the Securities and Exchange Commission (SEC) requires that offers and sales of securities either be registered with the SEC or be undertaken with an exemption from registration. Registered securities offerings, often called public offerings, are available to all types of investors and have more rigorous disclosure requirements. By contrast, securities offerings that are exempt...

Debt-for-Nature Initiatives and the Tropical Forest Conservation Act (TFCA): Status and Implementation

In the late 1980s, extensive foreign debt and degraded natural resources in developing nations led to the creation of debt-for-nature initiatives that reduced debt obligations, allowed for debt repayments in local currency as opposed to hard currency, and generated funds for the environment. These initiatives, called debt-for-nature swaps typically involved restructuring, reducing, or buying a portion of a developing country’s outstanding debt, with a percentage of proceeds (in local currency) being used to support conservation programs within the debtor country. Most early transactions...

Indexing Capital Gains Taxes for Inflation

Recently, proposals to index capital gains for inflation have reentered the public debate. The proposed change would eliminate the part of capital gains that reflects inflation by increasing the basis (i.e., the amount subtracted from sales price to determine capital gains) by inflation occurring since acquisition of the asset. President Trump’s head of the White House National Economic Council, Larry Kudlow, has long proposed the indexation of capital gains for inflation through regulation, and Americans for Tax Reform has urged Treasury Secretary Steven Mnuchin to index capital gains....

Financial Services and General Government (FSGG) FY2018 Appropriations: Independent Agencies and General Provisions

The Financial Services and General Government (FSGG) appropriations bills include funding for more than two dozen independent agencies in addition to the larger entities in the bill (Department of the Treasury, the Executive Office of the President, the District of Columbia, and the judiciary). Among these are Consumer Product Safety Commission (CPSC), Election Assistance Commission (EAC), Federal Communications Commission (FCC), Federal Election Commission (FEC), Federal Labor Relations Authority (FLRA), Federal Trade Commission (FTC), General Services Administration (GSA), National...

Hemp as an Agricultural Commodity

Industrial hemp is an agricultural commodity that is cultivated for use in the production of a wide range of products, including foods and beverages, cosmetics and personal care products, nutritional supplements, fabrics and textiles, yarns and spun fibers, paper, construction and insulation materials, and other manufactured goods. Hemp can be grown as a fiber, seed, or other dual-purpose crop. However, hemp is also from the same species of plant, Cannabis sativa, as marijuana. As a result, production in the United States is restricted due to hemp’s association with marijuana, and the U.S....

The House Agriculture Committee’s 2018 Farm Bill (H.R. 2): A Side-by-Side Comparison with Current Law

Congress sets national food and agriculture policy through periodic omnibus farm bills. The 115th Congress has the opportunity to establish the future direction of farm and food policy because many of the provisions in the current farm bill (the Agricultural Act of 2014, P.L. 113-79) expire in 2018. The 2014 farm bill addresses a broad range of farm and food programs and policies, including commodity support, crop insurance, conservation, domestic food assistance, trade and food aid, credit, rural development, research, horticulture, forestry, and bioenergy, among others.

On June 21,...

Trade Deficits and U.S. Trade Policy

The economic effects of the U.S. trade deficit have been a topic of long-standing congressional interest. The U.S. Constitution grants authority to Congress to regulate commerce with foreign nations and to lay and collect duties, and Congress exercises this authority in numerous ways. These include oversight of trade policy and consideration of legislation to implement trade agreements and to authorize trade programs. In some cases, Congress has delegated certain authorities over trade policy to the Executive Branch: for example, to facilitate trade negotiations.

As part of efforts to...

Debates over Exchange Rates: Overview and Issues for Congress

Exchange rates are among the most important prices in the global economy. They affect the price of every country’s imports and exports, as well as the value of every overseas investment. Over the past decade, some Members of Congress have been concerned that foreign countries are using exchange rate policies to gain an unfair trade advantage against other countries, or “manipulating” their currencies. Congressional concerns have focused on China’s foreign exchange interventions over the past decade to weaken its currency against the U.S. dollar, although concerns have also been raised...

Science, Technology, Engineering, and Mathematics (STEM) Education: An Overview

The term STEM education refers to teaching and learning in the fields of science, technology, engineering, and mathematics. It typically includes educational activities across all grade levels—from pre-school to post-doctorate—in both formal (e.g., classrooms) and informal (e.g., afterschool programs) settings. Federal policymakers have an active and enduring interest in STEM education, and the topic is frequently raised in federal science, education, workforce, national security, and immigration policy debates.

Various attempts to assess the federal STEM education effort have produced...

Economic Growth, Regulatory Relief, and Consumer Protection Act (P.L. 115-174) and Selected Policy Issues

Some observers assert the financial crisis of 2007-2009 revealed that excessive risk had built up in the financial system, and that weaknesses in regulation contributed to that buildup and the resultant instability. In response, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203; the Dodd-Frank Act), and regulators strengthened rules under existing authority. Following this broad overhaul of financial regulation, some observers argue certain changes are an overcorrection, resulting in unduly burdensome regulation.

The Economic Growth, Regulatory...

The American Opportunity Tax Credit: Overview, Analysis, and Policy Options

The American Opportunity Tax Credit (AOTC)—originally enacted on a temporary basis by the American Recovery and Reinvestment Act (ARRA; P.L. 111-5) and made permanent by the Protecting Americans from Tax Hikes Act (PATH; Division Q of P.L. 114-113)—is a partially refundable tax credit that provides financial assistance to taxpayers (or their children) who are pursuing a higher education. The credit, worth up to $2,500 per student, can be claimed for a student’s qualifying expenses incurred during the first four years of post-secondary education. In addition, 40% of the credit (up to...

Prioritizing Waterway Lock Projects: Barge Traffic Changes

Congress faces decisions about prioritizing new lock construction projects on the inland waterway system. As both houses debate differing versions of water resources and development bills (S. 2800, H.R. 8) and the FY2019 Energy and Water Development Appropriations bill (S. 2975, H.R. 5895), the decision about which of these projects could be undertaken first will likely be among the most controversial issues.

The inland waterway system supports barge transportation of heavy raw materials such as grain, coal, petroleum, and construction aggregates. The new locks are needed, according to the...

The International Monetary Fund

The International Monetary Fund (IMF), conceived at the Bretton Woods conference in July 1944, is the multilateral organization focused on the international monetary system. Created in 1946 with 46 members, it has grown to include 189 countries. The IMF has six purposes that are outlined in Article I of the IMF Articles of Agreement: promoting international monetary cooperation; expanding the balanced growth of international trade; facilitating exchange rate stability; eliminating restrictions on the international flow of capital; ensuring confidence by making the general resources of the...

Science and Technology Issues in the 115th Congress

Science and technology (S&T) have a pervasive influence over a wide range of issues confronting the nation. Public and private research and development spur scientific and technological advancement. Such advances can drive economic growth, help address national priorities, and improve health and quality of life. The constantly changing nature and ubiquity of science and technology frequently create public policy issues of congressional interest.

The federal government supports scientific and technological advancement directly by funding and performing research and development and...

U.S. and Global Trade Agreements: Issues for Congress

Congress plays a prominent role in shaping, debating, and approving legislation to implement trade agreements, and over the past three decades, bilateral and regional trade agreements (RTAs, or free trade agreements (FTAs) in the U.S. context) have become a primary source of new international trade liberalization commitments. The United States has historically pursued FTAs to open markets for U.S. goods, services, and agriculture, and establish trade rules and disciplines to enhance overall domestic and global economic growth. They are actively debated and can be contentious due to...

Federal Crop Insurance: Program Overview for the 115th Congress

Since its inception in 1938, the federal crop insurance program has evolved from an ancillary program with low participation to a central pillar of federal support for agriculture. From 2007 to 2016, the federal crop insurance title had the second-largest outlays in the farm bill after nutrition. The total net cost of the program for crop years 2007-2016 was about $72 billion, of which $43 billion (60%) was of direct benefit to producers, $28 billion (39%) went to private insurers, and $754 million (1%) went to the Risk Management Agency (RMA) within the U.S. Department of Agriculture...

Science, Technology, and Innovation Policy: CRS Experts

S

cience, technology, and innovation (STI) play important roles in the nation’s economic and military strength, public health and safety, and the quality of our lives. Individuals, companies, governments, universities, and other organizations fund, conduct, disseminate, and acquire science and technology for a myriad of purposes. Among the purposes: providing for the national defense and homeland security; improving manufacturing processes and enabling the manufacture of new products; developing new materials; advancing computing and communications tools; preventing and treating disease,...

Cuba Sanctions: Legislative Restrictions Limiting the Normalization of Relations

U.S. economic sanctions on Cuba date back to the early 1960s when the Cuban government under Fidel Castro began to build a repressive communist dictatorship and aligned with the Soviet Union. The trade embargo was first imposed in 1962 under the authority of the Foreign Assistance Act of 1961 and the Trading with the Enemy Act and soon broadened to include a prohibition on most financial transactions with Cuba. In 1963, the Department of the Treasury issued the Cuban Assets Control Regulations (CACR); they remain the main body of embargo regulations today, and have been amended many times...

Withdrawal from International Agreements: Legal Framework, the Paris Agreement, and the Iran Nuclear Agreement

The legal procedure through which the United States withdraws from treaties and other international agreements has been the subject of long-standing debate between the legislative and executive branches. Recently, questions concerning the role of Congress in the withdrawal process have arisen in response to President Donald J. Trump’s actions related to certain high-profile international commitments. This report outlines the legal framework for withdrawal from international agreements under domestic and international law, and it applies that framework to two pacts that may be of...

College and University Endowments: Overview and Tax Policy Options

Colleges and universities maintain endowments to directly support their activities as institutions of higher education. Endowments are typically investment funds, but may also consist of cash or property. Current tax law benefits endowments and the accumulation of endowment assets. Generally, endowment fund earnings are exempt from federal income tax. The 2017 tax revision (P.L. 115-97), however, imposes a new 1.4% excise tax on the net investment earnings of certain college and university endowments. Taxpayers making contributions to college and university endowment funds may be able to...

Overview of FY2018 Appropriations for Commerce, Justice, Science, and Related Agencies (CJS)

This report describes actions taken by the Administration and Congress to provide FY2018 appropriations for the Commerce, Justice, Science, and Related Agencies (CJS) accounts. It also provides an overview of FY2017 appropriations for agencies and bureaus funded as part of annual CJS appropriations.

Division B of the Consolidated Appropriations Act, 2017 (P.L. 115-31) provided a total of $66.360 billion (which includes $109 million in emergency-designated funding) for CJS. Under the act, the Department of Commerce received $9.237 billion, the Department of Justice received $28.962 billion,...

Abortion At or Over 20 Weeks’ Gestation: Frequently Asked Questions

Legislation at the federal and state levels seeking to limit or ban abortions in midpregnancy has focused attention on the procedure and the relatively small number of women who choose to undergo such an abortion. According to the Guttmacher Institute, about 926,200 abortions were performed in 2014; 1.3% of abortions were performed at or over 21 weeks’ gestation in 2013. A 2018 National Academies of Sciences, Engineering, and Medicine study found that most women who have abortions are unmarried (86%), are poor or low-income (75%), are under age 30 (72%), and are women of color...

Unemployment and Employment Programs Available to Workers Affected by Disasters

The federal government supports several programs that can provide assistance to workers who lose their jobs as a result of a natural or other disaster. In many cases, disaster-affected workers will be served by permanent programs and systems that generally provide assistance to workers who involuntarily lose their jobs. In some cases, disaster-triggered federal supports may be made available to provide additional assistance or aid to workers who do not qualify for assistance under the permanent programs.

This report discusses two income support programs and two workforce service programs....

U.S. Trade with Free Trade Agreement (FTA) Partners

During the Obama Administration, the United States negotiated two mega-regional free trade agreements that its participants argued were comprehensive and high-standard: the Trans-Pacific Partnership (TPP) among the United States and 11 other countries, and the U.S.-European Transatlantic Trade and Investment Partnership (T-TIP). The 12 TPP countries signed the agreement in February 2016, but the agreement required ratification by each country before it could enter into force. In the United States, this required implementing legislation by Congress. Upon taking office, President Trump...

Transatlantic Perspectives on Defense Innovation: Issues for Congress

The North Atlantic Treaty Organization (NATO) has a renewed focus on defense and deterrence in Europe. In the past, NATO relied at least in part on its military technological superiority over potential adversaries for defense and deterrence in Europe, but some policymakers are increasingly concerned that NATO’s technological superiority is eroding.

Russia, China, and others are modernizing their militaries, investing in new and emerging technologies, and exploring their applications for defense. In addition, NATO faces rising operating costs, and both conventional and hybrid challenges in...

Financial Services and General Government (FSGG) FY2018 Appropriations: Overview

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. The House and Senate FSGG bills fund the same agencies, with one exception. The Commodity Futures Trading Commission (CFTC) is funded through the Agriculture appropriations bill in the House and the FSGG bill in the Senate.

President Trump submitted his FY2018 budget request on May 23, 2017. The request included a total of $45.2...

The Earned Income Tax Credit (EITC): Administrative and Compliance Challenges

The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers earning relatively low wages. Since the credit is refundable, an EITC recipient need not owe taxes to receive the benefit. Hence, many low-income workers, especially those with children, can receive significant financial assistance from this tax provision.

Studies indicate that a relatively high proportion of EITC payments are issued incorrectly. The Treasury Department estimates that in FY2017 between 21.9% and 25.8% of EITC payments—between $14.9 billion and $17.6 billion—were issued improperly....

China-India Great Power Competition in the Indian Ocean Region: Issues for Congress

The Indian Ocean Region (IOR), a key geostrategic space linking the energy-rich nations of the Middle East with economically vibrant Asia, is the site of intensifying rivalry between China and India. This rivalry has significant strategic implications for the United States. Successive U.S. administrations have enunciated the growing importance of the Indo-Pacific region to U.S. security and economic strategy. The Trump Administration’s National Security Strategy of December 2017 states that “A geopolitical competition between free and repressive visions of world order is taking place in...

The Economic Effects of Trade: Overview and Policy Challenges

During the Obama Administration, the United States negotiated two comprehensive and high-standard mega-regional free trade agreements: the Trans-Pacific Partnership (TPP) among the United States and 11 other countries, and the U.S.-European Transatlantic Trade and Investment Partnership (T-TIP). The 12 TPP countries signed the agreement in February 2016, but the agreement required ratification by each country before it could enter into force. In the United States this requires implementing legislation by Congress. Upon taking office, President Trump withdrew the United States from the TPP...

Softwood Lumber Imports from Canada: Current Issues

Softwood lumber imports from Canada have been a persistent concern for Congress for decades. Canada is an important trading partner for the United States, but lumber production is a significant industry in many states. U.S. lumber producers claim they are at an unfair competitive disadvantage in the domestic market against Canadian lumber producers because of Canada’s timber pricing policies. This has resulted in five major disputes (so-called lumber wars) between the United States and Canada since the 1980s.

The current dispute (Lumber V) started when the 2006 Softwood Lumber Agreement...

Regulatory Reform 10 Years After the Financial Crisis: Systemic Risk Regulation of Non-Bank Financial Institutions

When large, interconnected financial institutions become distressed, policymakers have historically faced a choice between (1) a taxpayer-funded bailout, and (2) the destabilization of the financial system—a dilemma that commentators have labeled the “too-big-to-fail” (TBTF) problem. The 2007-2009 financial crisis highlighted the significance of the TBTF problem. During the crisis, a number of large financial institutions experienced severe distress, and the federal government committed hundreds of billions of dollars in an effort to rescue the financial system. According to some...

Residential Energy Tax Credits: Overview and Analysis

Currently, on their 2017 federal income tax return, taxpayers may be able to claim two tax credits for residential energy efficiency. The nonbusiness energy property or “Section 25C” credit expired at the end of 2017. The residential energy efficient property or “Section 25D” credit is scheduled to expire at the end of 2021.

The nonbusiness energy property tax credit (Internal Revenue Code [IRC] §25C) provides homeowners with a tax credit for investments in certain high-efficiency heating, cooling, and water-heating appliances, as well as tax credits for energy-efficient windows and doors....

Recently Expired Individual Tax Provisions (“Tax Extenders”): In Brief

Three individual temporary tax provisions expired in 2017. In the past, Congress has regularly acted to extend expired or expiring temporary tax provisions. Collectively, these temporary tax provisions are often referred to as “tax extenders.” Most recently, Congress addressed tax extenders in the Bipartisan Budget Act of 2018 (BBA18; P.L. 115-123). Three of the four individual income tax provisions that had expired at the end of 2016 were extended in the BBA18, retroactive to 2017. These include the

Tax Exclusion for Canceled Mortgage Debt,

Mortgage Insurance Premium Deductibility,...

Business Tax Provisions that Expired in 2017 (“Tax Extenders”)

Twelve temporary business tax provisions expired at the end of 2017. All of these provisions had expired at the end of 2016 but were retroactively extended by the Bipartisan Budget Act of 2018 (BBA; P.L. 115-123) and made available for the 2017 tax year, although one provision was extended through 2021.

This report briefly summarizes and discusses the economic impact of selected business-related tax provisions that expired at the end of 2017, including the following.

Special business investment (cost recovery) provisions:

Special Expensing Rules for Certain Film, Television, and Live...

Trends in Public Transportation Ridership: Implications for Federal Policy

Despite significant investments in public transportation at the federal, state, and local levels, transit ridership has fallen in many of the top 50 transit markets. If strong gains in the New York area are excluded, ridership nationally declined by 7% over the past decade. This report examines the implications for federal transit policy of the current weakness and possible future changes in transit ridership.

Although there has been a lot of research into the factors that explain transit ridership, there seems to be no comprehensive explanation for the recent decline. One complication is...

FY2018 Appropriations Overview: Census Bureau and Bureau of Economic Analysis

This report discusses FY2018 appropriations (discretionary budget authority) for the Bureau of Economic Analysis (BEA) and Bureau of the Census (Census Bureau), historic components of the Economics and Statistics Administration (ESA) in the U.S. Department of Commerce. This report will be updated as legislative developments warrant.

The Administration’s FY2018 budget request assumes the termination of ESA and proposes $97.0 million for BEA, $6.8 million (6.6%) less than the $103.8 million enacted for FY2017.

The FY2018 request for the Census Bureau is $1,497.0 million, $27.0 million...

Agriculture and Related Agencies: FY2018 Appropriations

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA) except for the Forest Service. It also funds the Food and Drug Administration (FDA) and—in even-numbered fiscal years—the Commodity Futures Trading Commission (CFTC).

Agriculture appropriations include both mandatory and discretionary spending. Discretionary amounts, though, are the primary focus during the bill’s development, since mandatory amounts are generally set by authorizing laws such as the farm bill.

The largest discretionary spending items are the Special Supplemental Nutrition Program for Women,...

Capital Gains Taxes: An Overview

Taxes on long-term capital gains (on assets held for at least a year) are imposed at rates that correspond to pre-2018 brackets: a 0% rate for those whose income placed them in the regular 15% bracket or less (now in regular bracket of 12%), and 15% for taxpayers in higher brackets, except for those in the 39.6% bracket. The tax revision adopted in December 2018 (P.L. 115-97) maintained the links to the income level corresponding to the rate brackets in prior law. Therefore, the tax rates on capital gains are affected only by changes in the deductions to arrive at taxable income and the...

Pass-Throughs, Corporations, and Small Businesses: A Look at Firm Size

In tax policy discussions it is not uncommon for the terms pass-through and small business to be interchanged, or, similarly, for the terms corporation and large business to be interchanged. This report uses 2015 U.S. Census data to investigate how the size of businesses varies by legal form (corporate versus pass-through). For this report, firm size is based on employment. The analysis finds that the majority of both corporations and pass-throughs in 2015 had fewer than five employees (55% of C corporations and 64% of pass-throughs). Nearly 99% of both corporations and pass-throughs had...

Tax-Preferred College Savings Plans: An Introduction to Coverdells

A Coverdell ESA—often referred to simply as a Coverdell—is a tax-advantaged investment account that can be used to pay for both higher-education expenses and elementary and secondary school expenses. The specific tax advantage of a Coverdell is that distributions (i.e., withdrawals) from this account are tax-free, if they are used to pay for qualified education expenses. If the distribution is used to pay for nonqualified expenses, a portion of the distribution is taxable and may also be subject to a 10% penalty.

Several parameters of Coverdells were temporarily modified by the Economic...

Cybersecurity: Selected Issues for the 115th Congress

Cybersecurity has been gaining attention as a national issue for the past decade. During this time, the country has witnessed cyber incidents affecting both public and private sector systems and data. These incidents have included attacks in which data was stolen, altered, or access to it was disrupted or denied. The frequency of these attacks, and their effects on the U.S. economy, national security, and people’s lives have driven cybersecurity issues to the forefront of congressional policy conversations. This report provides an overview of selected cybersecurity concepts and a...

Energy Tax Provisions That Expired in 2017 (“Tax Extenders”)

Thirteen temporary energy tax provisions expired at the end of 2017. All of these provisions had expired at the end of 2016, and were retroactively extended by the Bipartisan Budget Act of 2018 (BBA; P.L. 115-123) and made available for the 2017 tax year. This report briefly summarizes and discusses the economic impact of energy-related tax provisions that expired at the end of 2017, including the following: Renewable energy property provisions Production Tax Credit (PTC) for Nonwind Facilities Alternative and renewable fuels provisions Incentives for Biodiesel and Renewable...

Banking Policy Issues in the 115th Congress

The financial crisis and the ensuing legislative and regulatory responses greatly affected the banking industry. Many new regulations—mandated or authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) or promulgated under the authority of bank regulators—have been implemented in recent years. In addition, economic and technological trends continue to affect banks. As a result, Congress is faced with many issues related to the bank industry, including issues concerning prudential regulation, consumer protection, “too big to fail” (TBTF) banks, community...

Financial Regulation: FY2018 Appropriations and the Financial CHOICE Act (H.R. 10)

Background

On September 14, 2017, the House passed H.R. 3354, which included the FY2018 Financial Services and General Government (FSGG) Appropriations bill in Division D. The Senate Appropriations Committee released an FY2018 FSGG chairmen’s mark on November 20, 2017, but further action has yet to occur on the bill. Much of the federal government, including agencies covered by FSGG appropriations, has been operating for the first part of FY2018 under successive continuing resolutions (P.L. 115-56, P.L. 115-90, P.L. 115-96, P.L. 115-120, and P.L. 115-123), now effective through March 23,...

International Trade and Finance: Overview and Issues for the 115th Congress

The U.S. Constitution grants authority to Congress to regulate commerce with foreign nations. Congress exercises this authority in numerous ways, including through oversight of trade policy and consideration of legislation to implement trade agreements and authorize trade programs. Policy issues cover areas such as U.S. trade negotiations, U.S. trade and economic relations with specific regions and countries, international institutions focused on trade, tariff and nontariff barriers, worker dislocation due to trade liberalization, enforcement of trade laws and trade agreement commitments,...

Tax-Preferred College Savings Plans: An Introduction to 529 Plans

Among the options families may choose to save for education (elementary and secondary as well as higher education), they may consider using tax-advantaged qualified tuition programs (QTPs), also known as 529 plans.

529 plans, named for the section of the tax code which dictates their tax treatment, are tax-advantaged investment trusts used to pay for education expenses. The specific tax advantage of a 529 plan is that distributions (i.e., withdrawals) from this savings plan are tax-free if they are used to pay for qualified higher-education expenses. In addition, up to $10,000 per...

Guns, Excise Taxes, Wildlife Restoration, and the National Firearms Act

Federal taxes on firearms and ammunition are collected through different methods and used for different purposes, depending on the nature of the firearms. Some tax receipts are used for wildlife restoration and for hunter education and safety, for example, whereas others are deposited into the General Fund of the U.S. Treasury. The assessment of these taxes and the uses of generated revenues are routinely of interest to many in Congress.

In general, taxes on the manufacture of firearms (including pistols and revolvers as well as rifles and other long guns) and ammunition are collected as...

EPA’s Proposal to Repeal the Clean Power Plan: Benefits and Costs

In 2015, when the U.S. Environmental Protection Agency (EPA) promulgated the Clean Power Plan to reduce greenhouse gas emissions from fossil-fueled electric power plants, it concluded that the benefits of reducing emissions would outweigh the costs by a substantial margin under the scenarios analyzed. EPA estimated benefits ranging from $31 billion to $54 billion in 2030 and costs ranging from $5.1 billion to $8.4 billion in 2030, when the rule would be fully implemented.

In proposing to repeal the rule in October 2017, EPA revised the estimates of both its benefits and costs, finding in...

Analysis of the Tax Exclusion for Canceled Mortgage Debt Income

A home foreclosure, mortgage default, or mortgage modification can have important tax consequences. As lenders and borrowers work to resolve indebtedness issues, some transactions are resulting in cancellation of debt. Mortgage debt cancellation can occur when lenders restructure loans, reducing principal balances, or sell properties, either in advance, or as a result, of foreclosure proceedings. Historically, if a lender forgives or cancels such debt, tax law has treated it as cancellation of debt (COD) income subject to tax. Exceptions have been available for taxpayers who are insolvent...

Eurasian Economic Union

Tax-Exempt Bonds: A Description of State and Local Government Debt

This report provides information about state and local government debt. State and local governments issue debt instruments in exchange for the use of individuals’ and businesses’ savings. This debt obligates state and local governments to make interest payments for the use of these savings and to repay, at some time in the future, the amount borrowed. State and local governments may finance capital facilities with debt rather than out of current tax revenue to more closely align benefits and tax payments. There was just over $3 trillion in state and local debt outstanding in the third...

Potential Options for Electric Power Resiliency in the U.S. Virgin Islands

In September 2017, Hurricanes Irma and Maria, both Category 5 storms, caused catastrophic damage to the U.S. Virgin Islands (USVI), which include the main islands of Saint Croix, Saint John, and Saint Thomas among other smaller islands and cays. Hurricane Irma hit the USVI on September 6, with the eye passing over St. Thomas and St. John. Fourteen days later, on September 20, the eye of Hurricane Maria swept near St. Croix with maximum winds of 175 mph. The USVI government estimates that total uninsured damage from the hurricanes will exceed $7.5 billion. Although the electric power plants...

Financial Stability Oversight Council (FSOC): Structure and Activities

The Financial Stability Oversight Council (FSOC) and its Office of Financial Research (OFR) were established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) to address several potential sources of systemic risk. Some observers argue that communication and coordination of financial regulators was insufficient to prevent the financial crisis of 2008. To foster coordination and communication, the FSOC assembles the heads of federal financial regulators, representatives from state regulatory bodies, and an independent insurance expert in a single venue. The OFR...

The 2017 Tax Revision (P.L. 115-97): Comparison to 2017 Tax Law

A tax revision enacted late in 2017 substantively changed the federal income tax system (P.L. 115-97). Broadly, for individuals, the act temporarily modifies income tax rates. Some deductions, credits, and exemptions for individuals are eliminated, while others are substantively modified. These changes are mostly temporary. For businesses, pass-through entities experience a reduction in effective tax rates via a new deduction, which is also temporary. The statutory corporate tax rate is permanently reduced. Many deductions, credits, and other provisions for businesses are also modified....

Community Development Financial Institutions (CDFI) Fund: Programs and Policy Issues

As communities face a variety of economic challenges, some are looking to local banks and financial institutions for solutions that address the specific development needs of low-income and distressed communities. Community development financial institutions (CDFIs) provide financial products and services, such as mortgage financing for homebuyers and not-for-profit developers; underwriting and risk capital for community facilities; technical assistance; and commercial loans and investments to small, start-up, or expanding businesses. CDFIs include regulated institutions, such as community...

Federal Research and Development Funding: FY2018

President Trump’s budget request for FY2018 includes $117.697 billion for research and development (R&D). This represents a $30.605 billion (20.6%) decrease from the FY2016 actual level of $148.302 billion (FY2017 enacted levels were not available at the time of publication). Adjusted for inflation, the President’s FY2018 R&D request represents a constant dollar decrease of 23.6% from the FY2016 actual level.

However, in 2016 the Office of Management and Budget changed the definition used for “development” to “experimental development.” This new definition was used in calculating R&D in...

Economic Impact of Infrastructure Investment

Infrastructure investment has received renewed interest as of late, with both President Trump and some Members of Congress discussing the benefits of such spending. Infrastructure can be defined in a number of ways depending on the policy discussion; in general, however, the term refers to longer-lived, capital-intensive systems and facilities, such as roads, bridges, and water treatment facilities.

Over the past several decades, government investment in infrastructure as a percentage of gross domestic product (GDP) has declined. Annual infrastructure investment by federal, state, and...

Banking Law: An Overview of Federal Preemption in the Dual Banking System

Banks play a critical role in the United States economy, channeling funds from savers to borrowers and thereby facilitating economic activity. To address the risks of bank failures and excessive risk-taking, and the problem that consumers at times lack the information or expertise to make sound choices concerning financial products and services, both federal and state lawmakers have imposed a host of regulations on commercial banks.

The United States has what is referred to as a “dual banking system,” in which banks can choose to apply for a charter from a state banking authority or a...

The Marshall Plan: Design, Accomplishments, and Significance

The European Recovery Program (ERP), more commonly known as the Marshall Plan (the Plan), was a program of U.S. assistance to Europe during the period 1948-1951. The Marshall Plan—launched in a speech delivered by Secretary of State George Marshall on June 5, 1947—is considered by many to have been the most effective ever of U.S. foreign aid programs. An effort to prevent the economic deterioration of postwar Europe, expansion of communism, and stagnation of world trade, the Plan sought to stimulate European production, promote adoption of policies leading to stable economies, and take...

Financial Reform: Bank Supervision

Trends in Bank Secrecy Act/Anti-Money Laundering Enforcement

This report provides an overview of recent trends in the enforcement of the Bank Secrecy Act (BSA), the principal U.S. anti-money laundering law regulating financial institutions.

The report begins by providing general background information on BSA penalties and enforcement. The report concludes by discussing three recent trends that commentators have observed in BSA enforcement: (1) an increase in the frequency with which BSA enforcement actions involve an assessment of money penalties, and an increase in the size of those penalties, (2) an increased emphasis by regulators on the...

Funding and Financing Highways and Public Transportation

For many years, federal surface transportation programs were funded almost entirely from taxes on motor fuels deposited in the Highway Trust Fund (HTF). Although there has been some modification to the tax system, the tax rates, which are fixed in terms of cents per gallon, have not been increased at the federal level since 1993. Prior to the recession that began in 2007, annual increases in driving, with a concomitant increase in fuel use, were sufficient in most years to keep revenue rising steadily. This is no longer the case. Although vehicle miles traveled have recently surpassed...

Financial Reform: Muni Bonds and the LCR

Arctic National Wildlife Refuge (ANWR): An Overview

In the ongoing energy debate in Congress, one recurring issue has been whether to allow oil and gas development in the Arctic National Wildlife Refuge (ANWR, or the Refuge) in northeastern Alaska. ANWR is rich in fauna and flora and also has significant oil and natural gas potential. Energy development in the Refuge has been debated for more than 50 years. On December 22, 2017, President Trump signed into law P.L. 115-97, which provides for an oil and gas program on ANWR’s Coastal Plain. The Congressional Budget Office estimated federal revenue from the program’s first two lease sales at...

The Federal Tax System for the 2017 Tax Year

The 115th Congress has passed legislation that substantially changes the U.S. federal tax system (H.R. 1). This report describes the federal tax structure, provides some statistics on the tax system as a whole, as of 2017.

Historically, the largest component of the federal tax system, in terms of revenue generated, has been the individual income tax. In fiscal year (FY) 2016, $1.5 trillion, or 47% of the federal government’s revenue, was collected from the individual income tax. The corporate income tax generated another $300 billion in revenue in FY2016, or 9% of total revenue. Social...

Tailoring Bank Regulations: Differences in Bank Size, Activities, and Capital Levels

Banking organizations differ across a multitude of characteristics. The amount of assets they hold, the services they provide, and how they secure funding are just a few examples. These differences affect an individual organization’s risk of failure and the risk its failure or distress could pose to the overall financial system. Policymakers generally agree that certain banking regulations should be tailored to account for such differences, and as a result, banks are currently subject to or exempt from various regulations if they meet certain criteria. To what degree existing bank...

Efforts to Address Seasonal Agricultural Import Competition in the NAFTA Renegotiation

The United States has initiated renegotiations of the North American Free Trade Agreement (NAFTA) with Canada and Mexico. Among the Administration’s agriculture-related objectives in the renegotiation is a proposal to establish new rules for seasonal and perishable products, such as fruits and vegetables, which would establish a separate domestic industry provision for perishable and seasonal products in anti-dumping and countervailing duties (AD/CVD) proceedings. This could protect certain U.S. seasonal fruit and vegetable products by making it easier to initiate trade remedy cases...

Bank Systemic Risk Regulation: The $50 Billion Threshold in the Dodd-Frank Act

The 2007-2009 financial crisis highlighted the problem of “too big to fail” financial institutions—the concept that the failure of a large financial firm could trigger financial instability, which in several cases prompted extraordinary federal assistance to prevent their failure. This report focuses on one pillar of the Dodd-Frank Act’s (P.L. 111-203) response to addressing financial stability and ending too big to fail: a new enhanced prudential regulatory regime that applies to all banks with more than $50 billion in assets and to certain other financial institutions. Under this regime,...

Winter Fuels Outlook 2017-2018

The Energy Information Administration (EIA), in its Short-Term Energy and Winter Fuels Outlook (STEWFO) for the 2017-2018 winter heating season, projects that American consumers should expect to see heating expenditures that will be higher than last winter. However, the winter of 2016-2017 was relatively warm. Average expenditures for those heating with natural gas are projected to increase by 12%, while those heating with electricity are projected to see an increase of about 8%. These two fuels serve as the heating source for about 87% of all U.S. household heating. Propane and home...

The Child and Dependent Care Credit: Impact of Selected Policy Options

Some policymakers have shown interest in having the federal government offset some of the costs families incur for child care. The child and dependent care tax credit (CDCTC or “child care credit”) reimburses some taxpayers for a portion of their out-of-pocket child care expenses. The CDCTC is a nonrefundable tax credit, meaning taxpayers with little or no income tax liability—including many low-income taxpayers—receive little if any credit. Using the TRIM3 model, this report provides estimates of key characteristics of the CDCTC under current law and estimates the distributional effect of...

Tax Reform: The Senate Tax Proposal

Tax Reform: The Alternative Minimum Tax

Money Laundering: An Overview of 18 U.S.C. § 1956 and Related Federal Criminal Law

This report provides an overview of the elements of federal criminal money laundering statutes and the sanctions imposed for their violation. The most prominent is 18 U.S.C. § 1956. Section 1956 outlaws four kinds of money laundering—promotional, concealment, structuring, and tax evasion laundering of the proceeds generated by designated federal, state, and foreign underlying crimes (predicate offenses)—committed or attempted under one or more of three jurisdictional conditions (i.e., laundering involving certain financial transactions, laundering involving international transfers, and...

Money Laundering: An Abridged Overview of 18 U.S.C. § 1956 and Related Federal Criminal Law

This report provides an overview of the elements of federal criminal money laundering statutes and the sanctions imposed for their violation. The most prominent is 18 U.S.C. § 1956. Section 1956 outlaws four kinds of money laundering—promotional, concealment, structuring, and tax evasion laundering of the proceeds generated by designated federal, state, and foreign underlying crimes (predicate offenses)—committed or attempted under one or more of three jurisdictional conditions (i.e., laundering involving certain financial transactions, laundering involving international transfers, and...

Cybersecurity: State, Local, and International Authoritative Reports and Resources

Much is written by and about state, local, and international government efforts to address cybersecurity policy issues. This report and the CRS reports listed below link to authoritative sources that address many of the most prominent issues. It includes resources and studies from government agencies (federal, state, local, and international), think tanks, academic institutions, news organizations, and other sources. These sources are listed in reverse chronological order, with an emphasis on materials published in the past several years.

This report is intended to serve as a starting...

Tax Reform: Estate and Gift Tax

Tax Reform: H.R. 1, Tax Cuts and Jobs Act

Repair or Rebuild: Options for Electric Power in Puerto Rico

On September 20, 2017, Hurricane Maria made landfall in Puerto Rico as a Category 4 storm with sustained wind speeds of over 155 miles per hour. The hurricane also brought torrential rainfall with a range of 15 to 40 inches or more in some places, resulting in widespread flooding across the island. Puerto Rico’s office of emergency management reported that the storm had incapacitated the central electric power system, leaving the entire island without power as the island’s grid was essentially destroyed.

Even before the 2017 hurricane season, Puerto Rico’s electric power infrastructure...

Potential Effects of a U.S. NAFTA Withdrawal: Agricultural Markets

The North American Free Trade Agreement (NAFTA) entered into force on January 1, 1994, establishing a free trade area as part of a comprehensive economic and trade agreement among the United States, Canada, and Mexico. Currently, the United States is renegotiating the agreement. However, repeated threats by President Trump to abandon NAFTA and other actions by the Administration as part of ongoing efforts to “modernize” NAFTA have raised concerns that the United States could withdraw from NAFTA. Although some U.S. agricultural sectors support NAFTA renegotiation and efforts to address...

Cybersecurity: Federal Government Authoritative Reports and Resources

This report serves as a starting point for congressional staff assigned to cover cybersecurity issues related to federal and military government activities. Much is written by and about the federal government’s efforts to address cybersecurity policy challenges, and this CRS report directs the reader to authoritative sources that address many of the most prominent issues. The annotated descriptions of these sources are listed in reverse chronological order with an emphasis on material published in the past several years. This report includes resources and studies from government agencies...

Resolutions of Inquiry: An Analysis of Their Use in the House, 1947-2017

A resolution of inquiry is a simple resolution making a direct request or demand of the President or the head of an executive department to furnish the House with specific factual information in the Administration’s possession. Under the rules and precedents of the House of Representatives, such resolutions, if properly drafted, are given a privileged parliamentary status. This means that, under certain circumstances, a resolution of inquiry can be brought to the House floor for consideration even if the committee to which it was referred has not reported it and the majority party...

Government Printing, Publications, and Digital Information Management: Issues and Challenges

In the past half-century, in government and beyond, information creation, distribution, retention, and preservation activities have transitioned from a tangible, paper-based process to digital processes managed through computerized information technologies. Information is created as a digital object which then may be rendered as a text, image, or video file. Those files are then distributed through a myriad of outlets ranging from particular software applications and websites to social media platforms. The material may be produced in tangible, printed form, but typically remains in digital...

The U.S. Science and Engineering Workforce: Recent, Current, and Projected Employment, Wages, and Unemployment

The adequacy of the U.S. science and engineering workforce has been an ongoing concern of Congress for more than 60 years. Scientists and engineers are widely believed to be essential to U.S. technological leadership, innovation, manufacturing, and services, and thus vital to U.S. economic strength, national defense, and other societal needs. Congress has enacted many programs to support the education and development of scientists and engineers. Congress has also undertaken broad efforts to improve science, technology, engineering, and math (STEM) skills to prepare a greater number of...

Overtime Exemptions in the Fair Labor Standards Act for Executive, Administrative, and Professional Employees

The Fair Labor Standards Act (FLSA) is the primary federal statute providing labor standards for most, but not all, private and public sector employees. The FLSA standards require that “non-exempt” employees working excess hours in a workweek receive pay at the rate of one-and-a-half times their regular rate for hours worked over 40 hours. The requirements in the FLSA for overtime pay beyond this threshold refer to the “maximum hours,” but the FLSA does not actually limit the number of hours that may be worked. Instead, it establishes standards for the pay required for hours beyond 40...

Presidential Appointments to Full-Time Positions in Executive Departments During the 114th Congress

The President makes appointments to positions within the federal government, either using the authorities granted by law to the President alone, or with the advice and consent of the Senate. There are some 350 full-time leadership positions in the 15 executive departments for which the Senate provides advice and consent. This report identifies all nominations submitted to the Senate during the 114th Congress for full-time positions in these 15 executive departments.

Information for each department is presented in tables. The tables include full-time positions confirmed by the Senate, pay...

Taiwan: Issues for Congress

Taiwan, which officially calls itself the Republic of China (ROC), is an island democracy of 23 million people located across the Taiwan Strait from mainland China. It is the United States’ tenth-largest trading partner. Since January 1, 1979, the U.S. relationship with Taiwan has been unofficial, a consequence of the Carter Administration’s decision to establish diplomatic relations with the People’s Republic of China (PRC) and break formal diplomatic ties with self-ruled Taiwan, over which the PRC claims sovereignty. The Taiwan Relations Act (TRA, P.L. 96-8; 22 U.S.C. 3301 et seq.),...

Renegotiating NAFTA and U.S. Textile Manufacturing

When the North American Free Trade Agreement (NAFTA) was negotiated more than two decades ago, textiles and apparel were among the industrial sectors most sensitive to the agreement’s terms. NAFTA, which was implemented on January 1, 1994, has encouraged the integration of textile and apparel production in the United States, Canada, and Mexico. For example, under NAFTA’s “yarn-forward” rule of origin, textiles and apparel benefit from tariff-free treatment in all three countries if the production of yarn, fabric, and apparel, with some exceptions, is done within North America.

The United...

Who Earns Pass-Through Business Income? An Analysis of Individual Tax Return Data

Pass-through businesses—sole proprietorships, partnerships, and S corporations—generate more than half of all business income in the United States. Pass-through income is, in general, taxed only once at the individual income tax rates when it is distributed to its owners. In contrast, the income of C corporations is taxed twice; once at the corporate level according to corporate tax rates, and then a second time at the individual tax rates when shareholders receive dividend payments or realize capital gains. This leads to the so-called “double taxation” of corporate profits.

This report...

Asian Carp and the Great Lakes Region

Four species of nonindigenous Asian carp are expanding their range in U.S. waterways, resulting in a variety of concerns and problems. Three species—bighead, silver, and black carp—are of particular note, based on the perceived degree of environmental concern. Current controversy relates to what measures might be necessary and sufficient to prevent movement of Asian carp from the Mississippi River drainage into the Great Lakes through the Chicago Area Waterway System. Recent federal response and coordination measures direct actions to avoid the possibility of carp becoming established in...

USDA Export Market Development and Export Credit Programs: Selected Issues

Agricultural exports are important to both farmers and the U.S. economy. With the productivity of U.S. agriculture growing faster than domestic demand, farmers and agriculturally oriented firms rely heavily on export markets to sustain prices and revenue. The 2014 farm bill (Agricultural Act of 2014, P.L. 113-79) authorizes a number of programs to promote farm exports that are administered by the U.S. Department of Agriculture (USDA). There are two main types of agricultural trade and export promotion programs:

Export market development programs assist efforts to build, maintain, and...

Government Assistance for AIG: Summary and Cost

American International Group (AIG), one of the world’s major insurers, was the largest recipient of government financial assistance during the 2007-2009 financial crisis. At the maximum, the Federal Reserve (Fed) and the Treasury committed approximately $182.3 billion in specific extraordinary assistance for AIG and another $15.2 billion through a more widely available lending facility. The amount actually disbursed to assist AIG reached a maximum of $141.8 billion in April 2009. In return, AIG paid interest and dividends on the funding and the U.S. Treasury ultimately received a 92%...

The Tax Treatment of Net Operating Losses: In Brief

Tax reform could result in any number of changes to current tax policy. One modification that could occur is the tax treatment of net operating losses (NOLs). An NOL is incurred when a business taxpayer has negative taxable income. A business has no tax liability in the year they incur a loss. Additionally, a loss can be “carried back” for a refund on taxes paid in the past two years or “carried forward” for up to 20 years to reduce future taxes. The intent of the NOL carryback and carryforward regime is to give taxpayers the ability to smooth out changes in business income, and therefore...

Preliminary Damage Assessments for Major Disasters: Overview, Analysis, and Policy Observations

When a major disaster overwhelms a state or tribal nation’s response capacity, the state’s governor or tribal nation’s chief executive may request a major disaster declaration from the federal government. The Robert T. Stafford Disaster Relief and Emergency Assistance Act authorizes the President to issue major disaster declarations in response to such requests.

To evaluate a state or tribal nation’s need for federal assistance, the Federal Emergency Management Agency (FEMA) uses a Preliminary Damage Assessment (PDA) as a mechanism to determine the impact and magnitude of damage caused by...

Department of Homeland Security Appropriations: FY2017

This report discusses the FY2017 appropriations for the Department of Homeland Security (DHS). Its primary focus is on funding approved by Congress through the appropriations process. It includes an Appendix with definitions of key budget terms used throughout the suite of Congressional Research Service reports on homeland security appropriations. It also directs the reader to other reports providing context for and additional details regarding specific component appropriations and issues engaged through the FY2016 appropriations process.

The Obama Administration requested $40.62 billion...

The Tax Reform Framework

DHS Appropriations FY2017: Protection, Preparedness, Response, and Recovery

This report is part of a suite of reports that address appropriations for the Department of Homeland Security (DHS) for FY2017. It specifically discusses appropriations for the components of DHS included in the third title of the homeland security appropriations bill—the National Protection and Programs Directorate, the Office of Health Affairs, and the Federal Emergency Management Agency. Collectively, Congress has labeled these components in recent years as “Protection, Preparedness, Response, and Recovery.”

The report provides an overview of the Obama Administration’s FY2017 request for...

Commodity Futures Trading Commission: Proposed Reauthorization in the 115th Congress

The Commodity Futures Trading Commission (CFTC), created in 1974, regulates futures, most options, and swaps markets. The CFTC administers the Commodity Exchange Act (CEA; P.L. 74-765, 7 U.S.C. §§1 et seq.), enacted in 1936, to monitor trading in certain derivatives markets. The CFTC was last reauthorized in 2008 as part of the Food, Conservation, and Energy Act (P.L. 110-246), which included authorization of appropriations through FY2013. Although the underlying authority in the statute to administer programs does not have an explicit expiration, the authorization of appropriations only...

FY2017 Appropriations for the Census Bureau and Bureau of Economic Analysis

This report discusses FY2017 appropriations (discretionary budget authority) for the Bureau of Economic Analysis (BEA) and Bureau of the Census (Census Bureau), which make up the Economics and Statistics Administration (ESA) in the U.S. Department of Commerce. The report will not be updated.

The Administration’s FY2017 budget request for ESA (except the Census Bureau, whose budget justification is published separately from ESA’s) was $114.6 million, $5.6 million (5.2%) above the $109.0 million FY2016-enacted funding level. Of the $114.6 million, the $110.7 million requested for BEA...

Itemized Tax Deductions for Individuals: Data Analysis

Reforming or limiting itemized tax deductions for individuals has gained the interest of policymakers as one way to increase federal tax revenue, increase the share of taxes paid by higher-income tax filers, simplify the tax code, or reduce incentives that might lead to inefficient economic behavior. However, limits on deductions could cause adverse economic effects or changes in the distributional burden of the federal income tax code. This report is intended to identify who claims itemized deductions, for how much, and for which provisions.

This report analyzes data to inform the policy...

The Financial CHOICE Act in the 115th Congress: Selected Policy Issues

The Financial CHOICE Act (FCA; H.R. 10) was introduced on April 26, 2017, by Representative Jeb Hensarling, chairman of the House Committee on Financial Services. It passed the House on June 8, 2017. Selected provisions of H.R. 10 were then added to the appropriations bill passed by the House (H.R. 3354).

H.R. 10, as passed, is a wide-ranging proposal with 12 titles that would alter many parts of the financial regulatory system. Much of the FCA is in response to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act; P.L. 111-203), a broad package of regulatory...

The OCS Royalty Rate: Statutory Requirements and General Guidance

Background

The Outer Continental Shelf Lands Act (OCSLA) (43 U.S.C. 1337; P.L. 83-212) authorizes the Secretary of the Interior to establish a royalty rate as part of the process for leasing acreage for oil and gas developments in federal waters. “The Secretary of the Interior shall establish royalties, fees, rentals, bonuses, and other payments to ensure a fair return to the United States for any lease....” Further, OCSLA requires a cash bonus bid with a royalty set at not less than 12.5% in amount or value of production (43 U.S.C. 1337 (a)(1)(A)) (For details on product valuation, see 30...

Labor, Health and Human Services, and Education: FY2017 Appropriations

This report provides an overview of actions taken by Congress and the President to provide FY2017 appropriations for accounts funded by the Departments of Labor, Health and Human Services, and Education, and Related Agencies (LHHS) appropriations bill. This bill provides funding for all accounts funded through the annual appropriations process at the Departments of Labor (DOL) and Education (ED). It provides annual appropriations for most agencies within the Department of Health and Human Services (HHS), with certain exceptions (e.g., the Food and Drug Administration is funded via the...

Retirement Benefits for Federal Law Enforcement Personnel

Federal employees who perform specific duties, as defined in statute, are classified as law enforcement officers (LEOs) for the purpose of federal retirement benefits. LEOs and a few legislatively designated groups, including federal firefighters and air traffic controllers, are eligible for enhanced retirement benefits under the Civil Service Retirement System (CSRS), for individuals hired before 1984, or the Federal Employees’ Retirement System (FERS), for individuals hired in 1984 or later.

The availability of enhanced retirement benefits for LEOs and similar groups is linked to an...

U.S.-UK Free Trade Agreement: Prospects and Issues for Congress

Prospects for a bilateral free trade agreement (FTA) between the United States and the United Kingdom (UK) are of increasing interest for both sides. In a national referendum held on June 23, 2016, a majority of British voters supported the UK exiting the European Union (EU), a process known as “Brexit.” The Brexit referendum has prompted calls from some Members of Congress and the Trump Administration to launch U.S.-UK FTA negotiations, though other Members have moderated their support with calls to ensure that such negotiations do not constrain the promotion of broader transatlantic...

Stafford Act Declarations 1953-2016: Trends, Analyses, and Implications for Congress

The Robert T. Stafford Disaster Relief and Emergency Assistance Act authorizes the President to issue declarations that provide states, tribes, and localities with a range of federal assistance in response to natural and man-made incidents. Since 1953 the frequency of declarations has increased. For example, the average number of major disaster declarations issued from 1960 to 1969 was roughly 18.6 per year. In contrast, the average number of major disaster declarations issued from 2000 to 2009 was 57.1 per year. The highest number was declared in 2011, with 97 major disaster...

Infrastructure: Green Building Overview and Issues

Buildings, whether residential, commercial, government, or special-use, are core components of the nation’s infrastructure. Their construction, operation, and demolition are increasingly recognized as major sources of environmental impact. Without significant transformation of building construction and operations, that impact is expected to increase with population growth and changes in other demographic and economic factors. One strategy for achieving that transformation is most widely known by the term green building. However, the term is used differently by various proponents and...

Orderly Liquidation Authority

DHS Appropriations FY2017: Departmental Management and Operations

This report is part of a suite of reports that discuss appropriations for the Department of Homeland Security (DHS) for FY2017. It specifically discusses appropriations for the components of DHS included in the first title of the homeland security appropriations bill—the Office of the Secretary and Executive Management, the Office of the Under Secretary for Management, the DHS headquarters consolidation project, the Office of the Chief Financial Officer, the Office of the Chief Information Officer, Analysis and Operations, and the Office of Inspector General for the department....

Budget Actions in 2017

The Constitution grants Congress the power of the purse, but does not dictate how Congress must fulfill this constitutional duty. Congress has, therefore, developed certain types of budgetary legislation, along with rules and practices that govern its content and consideration. This set of budgetary legislation, rules, and practices is often referred to as the congressional budget process.

There is no prescribed congressional budget process that must be strictly followed each year, and Congress does not always consider budgetary measures in a linear or predictable pattern. Such...

Financial Services and General Government (FSGG) FY2017 Appropriations: Independent Agencies and General Provisions

The Financial Services and General Government (FSGG) appropriations bills include funding for more than two dozen independent agencies in addition to the larger entities in the bill (Department of the Treasury, the Executive Office of the President, the District of Columbia, and the judiciary). Among these are Consumer Product Safety Commission (CPSC), Election Assistance Commission (EAC), Federal Communications Commission (FCC), Federal Election Commission (FEC), Federal Labor Relations Authority (FLRA), Federal Trade Commission (FTC), General Services Administration (GSA), National...

Russia: Background and U.S. Policy

Over the last five years, Congress and the executive branch have closely monitored and responded to new developments in Russian policy. These developments include the following: increasingly authoritarian governance since Vladimir Putin’s return to the presidential post in 2012; Russia’s 2014 annexation of Ukraine’s Crimea region and support of separatists in eastern Ukraine; violations of the Intermediate-Range Nuclear Forces (INF) Treaty; Moscow’s intervention in Syria in support of Bashar al Asad’s government; increased military activity in Europe; and cyber-related influence...

The U.S. Coal Industry: Historical Trends and Recent Developments

The Trump Administration has taken several actions intended to help revive the U.S. coal industry. Within its first two months, the Administration rolled back or began reversing several coal-related regulations finalized under the Obama Administration. This effort was undertaken as three of the largest coal producers continued recovery from Chapter 11 bankruptcy, and occurred in the context of higher coal prices (making coal production possibly more profitable), lower inventories, and higher natural gas prices—factors that could lead to coal being more competitive as a fuel source for...

Insurance and the Financial CHOICE Act (H.R.10)

The Financial CHOICE Act of 2017 (H.R. 10) was passed by the House on June 8, 2017. Among many other provisions, H.R. 10 would revamp many of the insurance provisions in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank; P.L. 111-203).

Background on Insurance Regulation

The federal role in regulating insurance is relatively limited compared with the role in banking and securities. Insurance companies, unlike banks and securities firms, have been chartered and regulated solely by the states for the past 150 years. The current state-centric system was confirmed...

Farm Safety-Net Payments Under the 2014 Farm Bill: Comparison by Program Crop

The 2014 farm bill (Agricultural Act of 2014, P.L. 113-79) authorizes farm safety-net programs for the five crop years of 2014 through 2018. This includes revenue support for 20 “covered commodities” under either the Agricultural Risk Coverage (ARC) program or the Price Loss Coverage (PLC) program and interim financing and floor price support for an expanded list of 24 “loan commodities” under the Marketing Assistance Loan (MAL) program. Outlays under the MAL, ARC, and PLC programs are funded by the U.S. Department of Agriculture’s (USDA’s) Commodity Credit Corporation (CCC).

In addition,...

Status of FY2017 Labor-HHS-Education Appropriations

This report provides a brief summary of the general scope of the Departments of Labor, Health and Human Services, and Education, and Related Agencies (LHHS) appropriations bill. The report also provides a high-level overview of congressional action with regard to the FY2017 LHHS bill (S. 3040 and H.R. 5926), FY2017 continuing resolutions (CRs; P.L. 114-223, P.L. 114-254, and P.L. 115-30), and LHHS components of the FY2017 omnibus (P.L. 115-31). The report concludes with a list of additional resources.

The “Better Way” House Tax Plan: An Economic Analysis

On June 24, 2016, House Speaker Paul Ryan released the Better Way Tax Reform Task Force Blueprint, which provides a revision of federal income taxes. For the individual income tax, the plan would broaden the base, lower the rates (with a top rate of 33%), and alter some of the elements related to family size and structure by eliminating personal exemptions, allowing a larger standard deduction, and adding a dependent credit. For business income, the current income tax would be replaced by a cash-flow tax rebated on exports and imposed on imports, with a top rate of 20% for corporations and...

Reform of U.S. International Taxation: Alternatives

A striking feature of the modern U.S. economy is its growing openness—its increased integration with the rest of the world. The attention of tax policymakers has recently been focused on the growing participation of U.S. firms in the international economy and the increased pressure that engagement places on the U.S. system for taxing overseas business. Is the current U.S. system for taxing U.S. international business the appropriate one for the modern era of globalized business operations, or should its basic structure be reformed?

The current U.S. system for taxing international business...

Tax Provisions that Expired in 2016 (“Tax Extenders”)

In the past, Congress has regularly acted to extend expired or expiring temporary tax provisions. Collectively, these temporary tax provisions are often referred to as “tax extenders.” Most recently, in December 2015, Congress addressed tax extenders in the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), enacted as Division Q of the Consolidated Appropriations Act, 2016 (P.L. 114-113). This legislation extended all of the 52 provisions that had expired at the end of 2014. Unlike past tax extenders legislation, however, a number of provisions that had expired at the end of 2014...

NAFTA and Motor Vehicle Trade

Motor vehicles and vehicle parts accounted for more than 20% of the total value of U.S. merchandise trade with Canada and Mexico in 2016, making them the largest category of manufactured products traded among the United States, Mexico, and Canada. Since the North American Free Trade Agreement (NAFTA) took effect in January 1994, the vehicle supply chain has become fully integrated, with parts manufacturing and assembly in all three countries.

On May 18, 2017, the Trump Administration notified Congress of its intent to renegotiate NAFTA. In consequence, the 115th Congress will likely...

Accounting and Auditing Regulatory Structure: U.S. and International

Accounting and auditing standards in the United States are promulgated and regulated by various federal, state, and self-regulatory organizations (SROs). Accounting and auditing standards are also influenced by practitioners from businesses, nonprofits, and government entities. Congress has allowed financial accounting and auditing practitioners to remain largely self-regulated while retaining oversight responsibility. At certain times, Congress has sought to achieve specific accounting- and auditing-based policy objectives by enacting legislation such as the Sarbanes-Oxley Act of 2002...

An Analysis of the Geographic Distribution of the Mortgage Interest Deduction

This report analyzes variation in the mortgage interest deduction tax expenditure across states. Tax expenditures, such as the mortgage interest deduction, can generally be viewed as government spending administered via the tax code, or as tax incentives that are intended to achieve particular policy objectives. Regardless of the interpretation, tax expenditures provide a benefit to qualifying taxpayers by lowering their federal tax liabilities. Recent proposals to change the mortgage interest deduction could affect how its benefits are distributed. Understanding how the deduction’s...

Human Rights in China and U.S. Policy: Issues for the 115th Congress

This report examines human rights conditions in the People’s Republic of China (PRC) and policy options for Congress. The PRC government under the leadership of Chinese Communist Party General Secretary and State President Xi Jinping has implemented a clampdown on political dissent, civil society, human rights activists and lawyers, and the religious, cultural, and linguistic practices of Tibetans and Uyghurs. Other major human rights violations in China include the practice of incommunicado detention, torture of persons in custody, censorship of the Internet, and restrictions on the...

Community Oriented Policing Services (COPS): In Brief

The Community Oriented Policing Services (COPS) program was created by Title I of the Violent Crime Control and Law Enforcement Act of 1994 (P.L. 103-322). The mission of the COPS program is to advance community policing in jurisdictions across the United States. The Violence Against Women and Department of Justice Reauthorization Act of 2005 (P.L. 109-162) reauthorized the COPS program for FY2006-FY2009 and changed it from a multi-grant program to a single-grant program. Even though the COPS grant program is not currently authorized, Congress has continued to appropriate funding for...

Students with Disabilities Graduating from High School and Entering Postsecondary Education: In Brief

In recent decades, many federal policies have attempted to help prepare students with disabilities to complete high school and to continue into postsecondary education. Corollary interest has arisen in being able to track the progress being made toward achieving these aims.

This report offers a brief overview of what is currently known about the U.S. population of students with disabilities as they advance through secondary education and into postsecondary education. It devotes particular attention to high school graduation trends and data on postsecondary enrollment. Within the...

The Section 199 Production Activities Deduction: Background and Analysis

In 2004, Congress added the Section 199 domestic production activities deduction to the Internal Revenue Code (IRC). The deduction was intended to achieve a number of policy goals, including compensating for repeal of the extraterritorial income (ETI) export-subsidy provisions, supporting the domestic manufacturing sector, and reducing effective corporate tax rates.

Under current law, qualified activities are eligible for a deduction equal to 9% of the lesser of taxable income derived from qualified production activities, or taxable income. Eligible income includes that derived from the...

Department of Labor’s 2016 Fiduciary Rule: Background and Issues

Regulations issued in 1975 (called the 1975 rule in this report) defined investment advice using a five-part test. To be held to ERISA’s fiduciary standard with respect to his or her advice, an individual had to (1) make recommendations on investing in, purchasing, or selling securities or other property, or give advice as to the value (2) on a regular basis (3) pursuant to a mutual understanding that the advice (4) will serve as a primary basis for investment decisions, and (5) will be individualized to the particular needs of the plan regarding such matters as, among other things,...

The Federal Budget: Overview and Issues for FY2018 and Beyond

The federal budget is a central component of the congressional “power of the purse.” Each fiscal year, Congress and the President engage in a number of practices that influence short- and long-run revenue and expenditure trends. This report offers context for the current budget debate and tracks legislative events related to the federal budget.

In recent years, policies enacted to decrease spending along with a stronger economy have led to reduced budget deficits. The Budget Control Act of 2011 (BCA; P.L. 112-25) implemented several measures intended to reduce the deficit from FY2012...

Agriculture and Related Agencies: FY2017 Appropriations

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA) except for the Forest Service. It also funds the Food and Drug Administration (FDA) and—in even-numbered fiscal years—the Commodity Futures Trading Commission (CFTC). (For CFTC, the Agriculture appropriations subcommittee has jurisdiction in the House but not in the Senate.)

Agriculture appropriations include both mandatory and discretionary spending. Discretionary amounts, though, are the primary focus during the bill’s development, since mandatory amounts are generally set by authorizing laws such as the...

The North American Free Trade Agreement (NAFTA) and U.S. Agriculture

The North American Free Trade Agreement (NAFTA) entered into force on January 1, 1994, establishing a free trade area as part of a comprehensive economic and trade agreement among the United States, Canada, and Mexico. President Trump has repeatedly stated that he intends to either renegotiate or withdraw from NAFTA. In May 2017, the U.S. Trade Representative (USTR) formally notified Congress of the Administration’s intent to renegotiate NAFTA. Reactions to the announcement have been mixed, with some industries supporting NAFTA “modernization” as a way to address a range of trade concerns,...

India-U.S. Relations: Issues for Congress

India will soon be the world’s most populous country, home to about one of every six people. Many factors combine to infuse India’s government and people with “great power” aspirations: the Asian giant’s rich civilization and history, expanding strategic horizons, energetic global and international engagement, critical geography (with more than 9,000 total miles of land borders, many of them disputed) astride vital sea and energy lanes, major economy (at times the world’s fastest growing) with a rising middle class and an attendant boost in defense and power projection capabilities...

Argentina: Background and U.S. Relations

Argentina, a South American country with a population of almost 44 million, has had a vibrant democratic tradition since its military relinquished power in 1983. Current President Mauricio Macri—the leader of the center-right Republican Proposal and the candidate of the Let’s Change coalition representing center-right and center-left parties—won the 2015 presidential race. He succeeded two-term President Cristina Fernández de Kirchner, from the center-left faction of the Peronist party known as the Front for Victory, who in turn had succeeded her husband, Néstor Kirchner, in 2007. Macri’s...

Short-Term, Small-Dollar Lending: Policy Issues and Implications

Short-term, small-dollar loans are consumer loans with relatively low initial principal amounts (often less than $1,000) with relatively short repayment periods (generally for a small number of weeks or months). Short-term, small-dollar loan products are frequently used to cover cash-flow shortages that may occur due to unexpected expenses or periods of inadequate income. Small-dollar loans can be offered in various forms and by various types of lenders. Banks and credit unions (depositories) can make small-dollar loans through financial products such as credit cards, credit card cash...

Financial Regulatory Relief: Approaches for Congress, Regulators, and the Administration

The 2007-2009 financial crisis led to significant changes in financial regulation, but critics argue that the burden these changes have imposed now exceeds their benefits. Congress and the Administration are considering financial regulatory relief from various postcrisis regulatory changes, including the Dodd-Frank Act (P.L. 111-203). This report provides an overview of the options available to pursue that goal.

Approaches for Congress

Congress can mandate that regulators provide relief through legislation. Most relief legislation likely would follow the normal legislative process. For...

The Financial CHOICE Act (H.R. 10) and the Dodd-Frank Act

Representative Jeb Hensarling, chairman of the House Committee on Financial Services, introduced the Financial CHOICE Act of 2017 (H.R. 10) on April 26, 2017. H.R. 10 was passed by the House on June 8, 2017. The bill as passed is a wide-ranging proposal with 12 titles that would alter many parts of the financial regulatory system. H.R. 10 is similar to, but has several major differences from, H.R. 5983 from the 114th Congress (called the Financial CHOICE Act of 2016).

The next section highlights major proposals included in the bill, as passed. It is not a comprehensive summary. For a more...

Financial Services and General Government (FSGG) FY2017 Appropriations: Overview

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. The House and Senate FSGG bills fund the same agencies, with one exception. The Commodity Futures Trading Commission (CFTC) is funded through the Agriculture appropriations bill in the House and the FSGG bill in the Senate. This structure has existed since the 2007 reorganization of the House and Senate Committees on Appropriations.

On...

Treasury Department Appropriations, FY2017

At its most basic level of organization, the Treasury Department is a collection of departmental offices and operating bureaus. The bureaus as a whole typically account for 95% of Treasury’s budget and workforce. Most bureaus and offices are funded through annual appropriations.

Treasury appropriations are distributed among 12 accounts in FY2017: (1) Departmental Offices (DO), (2) Office of Terrorism and Financial Intelligence (TFI), (3) Cybersecurity Enhancement Account (CEA), (4) Department-wide Systems and Capital Investments Program (DSCIP), (5) Office of Inspector General (OIG), (6)...

Federal Research and Development Funding: FY2017

President Obama’s budget request for FY2017 included $152.333 billion for research and development (R&D), an increase of $6.195 billion (4.2%) over the estimated FY2016 enacted R&D funding level of $146.138 billion.

Funding for R&D is concentrated in a few departments and agencies. Under President Obama’s FY2017 budget request, seven federal agencies would have received 95.6% of total federal R&D funding, with the Department of Defense (47.8%) and the Department of Health and Human Services (21.5%) accounting for nearly 70% of all federal R&D funding.

In dollars, the largest increases in...

Malawi: Key Developments and U.S. Relations

Malawi is a poor, landlocked country in southeastern Africa. A former British colony, Malawi transitioned from one-party rule to a democratic system in the early 1990s. It has since held a series of multi-party elections—though the most recent polls, held in 2014, featured some logistical shortcomings, limited violence, and a number of controversies, including a failed attempt by then-incumbent President Joyce Banda to annul the election. The race was ultimately won by Peter Mutharika, whose brother, Bingu wa Mutharika, served as president from 2004 until his death in 2012, when he was...

East Asia’s Foreign Exchange Rate Policies

According to the International Monetary Fund (IMF), monetary authorities in East Asia (including Southeast Asia) have adopted a variety of foreign exchange rate policies, varying from Hong Kong’s currency board system which links the Hong Kong dollar to the U.S. dollar, to the “independently floating” exchange rates of Japan, the Philippines, and South Korea. Most Asian monetary authorities have adopted “managed floats” that allow their currency to fluctuate within a limited range over time as part of a larger economic policy. Regardless of their exchange rate policies, monetary...

Overview of FY2017 Appropriations for Commerce, Justice, Science, and Related Agencies (CJS)

This report describes actions taken by the Administration and Congress to provide FY2017 appropriations for the Commerce, Justice, Science, and Related Agencies (CJS) accounts. It also provides an overview of FY2016 appropriations for agencies and bureaus funded as part of annual CJS appropriations.

Division B of the Consolidated Appropriations Act, 2016 (P.L. 114-113), provided $66.000 billion for CJS, which included $9.246 billion for the Department of Commerce, $29.090 billion for the Department of Justice (DOJ), $26.754 billion for the science agencies, and $910 million for the related...

The North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) entered into force on January 1, 1994. The agreement was signed by President George H. W. Bush on December 17, 1992, and approved by Congress on November 20, 1993. The NAFTA Implementation Act was signed into law by President William J. Clinton on December 8, 1993 (P.L. 103-182). The overall economic impact of NAFTA is difficult to measure since trade and investment trends are influenced by numerous other economic variables, such as economic growth, inflation, and currency fluctuations. The agreement likely accelerated and also locked in...

Selected Federal Water Activities: Agencies, Authorities, and Congressional Committees

Congress addresses numerous issues related to the nation’s water resources annually, and over time it has enacted hundreds of water-related federal laws. These laws—many of which are independent statutes—have been enacted at different points in the nation’s history and during various economic climates. They were developed by multiple congressional committees with varying jurisdictions. Such committees are involved in legislating, funding, and overseeing the water-related activities of numerous federal agencies. These activities include responding to natural disasters such as droughts and...

Malaysia: Background and U.S. Relations

Malaysia, an ethnically diverse majority Muslim nation in Southeast Asia, has long been a partner in U.S. security and economic initiatives in the region, although political sensitivities in Malaysia have constrained both sides from forging deeper ties. Bilateral relations have improved over the past decade. Prime Minister Najib Razak, who came to power in 2009, made relations with the United States a priority early in his administration. More recently he has moved to deepen trade and economic ties with China. Congress has shown interest in a variety of issues in U.S.-Malaysia relations...

Buying American: Protecting U.S. Manufacturing Through the Berry and Kissell Amendments

The Berry and Kissell Amendments are two separate but closely related laws requiring that certain goods purchased by national security agencies be produced in the United States.

The Berry Amendment (10 U.S.C. §2533a) is the popular name for a law requiring textiles, clothing, food, and hand or measuring tools purchased by the Department of Defense (DOD) to be grown, reprocessed, reused, or produced wholly in the United States. Congress over the decades has varied the list of products covered by the law. Under the Kissell Amendment (6 U.S.C. §453b), textile, apparel, and footwear products...

Presidential Transitions: Issues Involving Outgoing and Incoming Administrations

The crux of a presidential transition is the transfer of executive power from the incumbent to the President-elect. Yet the transition process encompasses a host of activities, beginning with pre-election planning and continuing through inauguration day. The process ensures that the federal government provides resources to presidential candidates’ transition teams, and, eventually, the President-elect’s team; and includes close coordination between the outgoing and incoming Administrations. The Presidential Transition Act (PTA) of 1963, as amended, established formal mechanisms to...

Background and Federal Efforts on Summer Youth Employment

Labor force activity for youth ages 16 to 24 has been in decline since the late 1990s. This trend has been consistent even during the summer months, when youth are most likely to be engaged in work. Labor force data from the month of July highlight changes in summer employment over time. For example, the employment rate—known as the employment to population (E/P) ratio—for youth was 64.1% in July 1996 and 53.2% in July 2016. Congress has long been concerned about ensuring that young people have productive pathways to adulthood, particularly for those youth who are low-income and have...

Regulation of Debit Interchange Fees

The United States has seen continued growth of electronic card payments (and a simultaneous decrease in check payments). From 2009 through 2012, debit card transactions have outpaced other payment forms. When a consumer uses a debit card in a transaction, the merchant pays a “swipe” fee, which is also known as the interchange fee. The interchange fee is paid to the card-issuing bank (i.e., the consumer’s bank that issued the debit card) as compensation for facilitating the transaction. Section 1075 of the Consumer Financial Protection Act of 2010 (or Title X of the Dodd-Frank Wall Street...

Congress’s Contempt Power and the Enforcement of Congressional Subpoenas: Law, History, Practice, and Procedure

Congress’s contempt power is the means by which Congress responds to certain acts that in its view obstruct the legislative process. Contempt may be used either to coerce compliance, to punish the contemnor, and/or to remove the obstruction. Although arguably any action that directly obstructs the effort of Congress to exercise its constitutional powers may constitute a contempt, in recent times the contempt power has most often been employed in response to non-compliance with a duly issued congressional subpoena—whether in the form of a refusal to appear before a committee for purposes of...

FY2017 Agriculture and Related Agencies Appropriations: In Brief

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA), except for the Forest Service. It also funds the Food and Drug Administration (FDA) and—in even-numbered fiscal years—the Commodity Futures Trading Commission (CFTC). (For CFTC, the Agriculture appropriations subcommittee has jurisdiction in the House but not in the Senate.)

Agriculture appropriations include both mandatory and discretionary spending. Discretionary amounts, though, are the primary focus during the bill’s development, since mandatory amounts are generally set by authorizing laws such as the...

Cost-Benefit Analysis and Financial Regulator Rulemaking

Cost-benefit analysis (CBA) in the federal rulemaking process is the systematic examination, estimation, and comparison of the potential economic costs and benefits resulting from the promulgation of a new rule. Agencies with rulemaking authority implement regulations that carry the force of law. While this system allows technical rules to be designed by experts that are to some degree insulated from political considerations, it also results in rules being implemented by executive branch staff that arguably are not directly accountable to the electorate.

One method for Congress to...

Selected Homeland Security Issues in the 115th Congress

In 2001, in the wake of the terrorist attacks of September 11th, “homeland security” went from being a concept discussed among a relatively small cadre of policymakers and strategic thinkers to a broadly discussed issue among policymakers, including those in Congress. Debates over how to implement coordinated homeland security policy led to the passage of the Homeland Security Act of 2002 (P.L. 107-296) and the establishment of the Department of Homeland Security (DHS). Evolution of America’s response to terrorist threats has continued under the leadership of different Administrations,...

Federal Deductibility of State and Local Taxes

Under current law, taxpayers who itemize can deduct state and local real estate taxes, personal property taxes, and income taxes from federal income when calculating taxable income. A deduction for sales taxes in lieu of income taxes is also available. The federal deduction for state and local taxes results in the federal government paying part of these state and local taxes through lower federal tax collections. Theory would suggest that taxpayers are willing to accept higher state and local tax rates and greater state and local public spending because of lower federal income taxes...

Cost and Benefit Considerations in Clean Air Act Regulations

The Clean Air Act (CAA) gives the Environmental Protection Agency (EPA) broad authority to set ambient air quality standards to protect public health and welfare. It authorizes emission standards for both mobile and stationary air pollution sources, including cars, trucks, factories, power plants, fuels, consumer products, and dozens of other source categories. Since 1970, EPA has used this authority to require emission controls for these sources. Emissions of the most widespread (“criteria”) pollutants have been reduced by 72% during that period.

As directed by Congress and by executive...

Terrorism in Southeast Asia

Southeast Asia is home to more than 625 million people and around 15% of the world’s Muslim population. The region has faced the threat of terrorism for decades, but threats in Southeast Asia have never been considered as great as threats in some other regions. However, the rise of the Islamic State poses new, heightened challenges for Southeast Asian governments and for U.S. policy towards the region.

Southeast Asia has numerous dynamic economies and three Muslim-majority states, including the world’s largest Muslim-majority nation, Indonesia, which also is the world’s third largest...

The Strategic Petroleum Reserve: Authorization, Operation, and Drawdown Policy

Congress authorized the Strategic Petroleum Reserve (SPR) in the Energy Policy and Conservation Act (EPCA) of 1975 to help prevent a repetition of the economic disruption caused by the 1973-1974 Arab oil embargo. EPCA specifically authorizes the President to draw down the SPR upon a finding that there is a “severe energy supply interruption.” The meaning of a “severe energy supply interruption” has, over time, been controversial. The authors of EPCA intended the SPR only to ameliorate discernible physical shortages of crude oil. Historically, increasing crude oil prices typically signal...

Patent Boxes: A Primer

Economists generally agree that government support for private investment in research and development (R&D) is useful in correcting a market failure that predisposes most companies to invest less for that purpose than the overall economic benefits from R&D investments would warrant. The market failure stems from a company’s inability to capture all the returns to its R&D investments as a result of the spillover effects of successful R&D investments.

Most governments offer some kind of support for R&D, including tax incentives for business R&D investments. The U.S. government provides a tax...

What Does the Gig Economy Mean for Workers?

The gig economy is the collection of markets that match providers to consumers on a gig (or job) basis in support of on-demand commerce. In the basic model, gig workers enter into formal agreements with on-demand companies (e.g., Uber, TaskRabbit) to provide services to the company’s clients. Prospective clients request services through an Internet-based technological platform or smartphone application that allows them to search for providers or to specify jobs. Providers (i.e., gig workers) engaged by the on-demand company provide the requested service and are compensated for the jobs....

U.S. Physical Infrastructure: CRS Experts

A nation’s physical infrastructure (for example, its transportation, water, energy, and communications systems and structures) serves as arteries for its economic and societal activity. The infrastructure of the United States was considered to be among the finest in the world, as post-World War II growth saw large amounts of investment in much of that infrastructure. Since all infrastructure structures and equipment have a finite useful life, some would say that functionality of U.S. infrastructure has declined over time.

Estimates of cost to meet the needs of the infrastructure sectors...

Mexico’s Free Trade Agreements

Mexico has had a growing commitment to trade integration and liberalization through the formation of free trade agreements (FTAs) since the 1990s, and its trade policy is among the most open in the world. Mexico’s pursuit of FTAs with other countries not only provides economic benefits, but could also potentially reduce its economic dependence on the United States. The United States is, by far, Mexico’s most significant trading partner. Approximately 80% of Mexico’s exports go to the United States, and about 47% of Mexico’s imports are supplied by the United States. In an effort to...

The Dodd-Frank Wall Street Reform and Consumer Protection Act: Background and Summary

Beginning in 2007, U.S. financial conditions deteriorated, leading to the near-collapse of the U.S. financial system in September 2008. Major commercial banks, insurers, government-sponsored enterprises, and investment banks either failed or required hundreds of billions in federal support to continue functioning. Households were hit hard by drops in the prices of real estate and financial assets, and by a sharp rise in unemployment. Congress responded to the crisis by enacting the most comprehensive financial reform legislation since the 1930s.

Then-Treasury Secretary Timothy Geithner...

Border-Adjusted Consumption Taxes and Exchange Rate Movements: Theory and Evidence

In June 2016, House Speaker Paul Ryan proposed a destination-based cash flow tax (DBCFT) as part of the “A Better Way” tax reform blueprint. One component of the DBCFT proposal is the implementation of a border adjustment, which is a common feature of national consumption-based taxes. Were the United States to adopt a DBCFT and the accompanying border adjustment, it would only tax production that is consumed in the United States—domestically produced goods and services sold abroad would not be taxed.

Although there are many important issues surrounding a DBCFT that would require careful...

NASS and U.S. Crop Production Forecasts: Methods and Issues

The National Agricultural Statistics Service (NASS) of the U.S. Department of Agriculture (USDA) estimates agricultural production (including area and yield) and stocks for more than 120 crops and 45 livestock items. Traditionally NASS estimates have focused on state and national data, but in recent years county-level estimates have gained in importance. NASS crop production estimates are crucial to people in the U.S. agricultural sector involved in making marketing and investment decisions, policymakers who design farm support programs, USDA agents who implement those programs, and...

Keystone XL: Greenhouse Gas Emissions Assessments in the Final Environmental Impact Statement

On March 23, 2017, the State Department issued a Presidential Permit for the border facilities of the proposed Keystone XL Pipeline, having determined that issuing the permit “would serve the national interest.” The Department announced that the Record of Decision and National Interest Determination for the Presidential Permit “is informed by” the 2014 Final Environmental Impact Statement (FEIS). It cites no new documentation aside from fresh communications with the Canadian pipeline company.

State Department Assessment

The State Department released the FEIS on January 31, 2014, to inform...

Preserving Homeownership: Foreclosure Prevention Initiatives

The home mortgage foreclosure rate began to rise rapidly in the United States beginning around the middle of 2006 and remained elevated for several years thereafter. Losing a home to foreclosure can harm households in many ways; for example, those who have been through a foreclosure may have difficulty finding a new place to live or obtaining a loan in the future. Furthermore, concentrated foreclosures can negatively impact nearby home prices, and large numbers of abandoned properties can negatively affect communities. Finally, elevated levels of foreclosures can destabilize housing...

Federal Reserve: Oversight and Disclosure Issues

Critics of the Federal Reserve (Fed) have long argued for more oversight, transparency, and disclosure. Criticism intensified following the extensive assistance the Fed provided to financial firms during the financial crisis. Some critics downplay the degree of Fed oversight and disclosure that already takes place.

For oversight, the Fed is required to provide a written report to and testify before the committees of jurisdiction semiannually. In addition, these committees periodically hold more focused hearings on Fed topics. Critics have sought a Government Accountability Office (GAO)...

Tax Deductions for Individuals: A Summary

Every tax filer has the option to claim deductions when filing their income tax return. Deductions serve four main purposes in the tax code: (1) to account for large, unusual, and necessary personal expenditures, such as extraordinary medical expenses; (2) to encourage certain types of activities, such as homeownership and charitable contributions; (3) to ease the burden of taxes paid to state and local governments; and (4) to adjust for the expenses of earning income, such as unreimbursed employee expenses.

Some tax deductions can be taken by individuals even if they do not itemize. These...

Statutory, Average, and Effective Marginal Tax Rates in the Federal Individual Income Tax: Background and Analysis

Tax reform is a stated priority of the 115th Congress. In June 2016, Ways and Means Committee Republicans released the “Better Way” tax reform blueprint. The proposal seeks to make the individual income tax system “simpler, flatter, and fairer” by consolidating the number of individual income tax brackets. Looking at statutory tax rates alone, however, provides limited information regarding the simplicity or fairness of the tax system. Average tax rates and effective marginal tax rates are frequently used by economists and policy analysts to evaluate the fairness of the tax system, as well...

Previewing a 2018 Farm Bill

Congress periodically establishes agricultural and food policy in an omnibus farm bill. The 115th Congress faces reauthorization of the 2014 farm bill—the Agricultural Act of 2014 (P.L. 113-79, H.Rept. 113-333)—because many of its provisions expire in 2018.

The 2014 farm bill is the most recent omnibus farm bill. It was enacted in February 2014 and succeeded the Food, Conservation, and Energy Act of 2008 (P.L. 110-246, “2008 farm bill”). In recent decades, the breadth of farm bills has steadily grown to include new and expanding food and agricultural interests. The 2014 farm bill contains...

German Chancellor Angela Merkel Visits President Trump

German Chancellor Angela Merkel is scheduled to meet with President Donald Trump at the White House on March 17, 2017. The meeting—the first between the two leaders—comes amid uncertainty and unease in Europe about the direction of U.S.-German and U.S.-European relations during the Trump Administration. Merkel has led Europe’s largest and most prosperous country for almost 12 years and is widely viewed as the most influential political leader in Europe. Most analysts agree that the U.S.-German relationship could play a pivotal role in guiding U.S. policy toward Europe and vice...

An Introduction to Poverty Measurement

Poverty measures convey the number or percentage of people falling below given income amounts, which are intended to represent a level of economic privation and are computed using some factually based measurement of basic needs. The poverty measures discussed in this report—the official U.S. poverty measure and the research Supplemental Poverty Measure—focus on financial resources. A family’s income is compared against a dollar amount representing some measure of need, called a threshold, which typically varies by family size and composition. Those with family income less than the...

Deficits and Debt

Anti-Money Laundering: An Overview for Congress

Anti-money laundering (AML) refers to efforts to prevent criminal exploitation of financial systems to conceal the location, ownership, source, nature, or control of illicit proceeds. Despite the existence of long-standing domestic regulatory and enforcement mechanisms, as well as international commitments and guidance on best practices, policymakers remain challenged to identify and address policy gaps and new laundering methods that criminals exploit. According to United Nations estimates recognized by the U.S. Department of the Treasury, criminals in the United States generate some $300...

An Overview of Recent Tax Reform Proposals

Many agree that the U.S. tax system is in need of reform. Congress continues to explore ways to make the U.S. tax system simpler, fairer, and more efficient. In doing so, lawmakers confront challenges in identifying and enacting policies, including consideration of competing proposals and differing priorities. To assist Congress as it continues to debate the intricacies of tax reform, this report provides a review of legislative tax reform proposals introduced since the 113th Congress.

Although no comprehensive tax reforms have been introduced into legislation yet in the 115th Congress,...

Housing Issues in the 114th Congress

Housing and residential mortgage markets in the United States are continuing to recover from several years of turmoil that began in 2007-2008, though the recovery has been uneven across the country. Nationally, home prices have been consistently increasing since 2012. Negative equity and mortgage foreclosure rates have been steadily decreasing, though both remain elevated. Home sales have begun to increase, with sales of existing homes approaching levels that were common in the early 2000s, though sales of new homes and housing starts remain relatively low.

Mortgage originations have also...

U.S. Sanctions and Russia’s Economy

In response to Russia’s annexation of the Crimean region of neighboring Ukraine and its support of separatist militants in Ukraine’s east, the United States imposed a number of targeted economic sanctions on Russian individuals, entities, and sectors. The United States coordinated its sanctions with other countries, particularly the European Union (EU). Russia retaliated against sanctions by banning imports of certain agricultural products from countries imposing sanctions, including the United States.

U.S. policymakers are debating the use of economic sanctions in U.S. foreign policy...

Wildfire Suppression Spending: Background, Issues, and Legislation

Congress has directed that the federal government is responsible for managing wildfires that begin on federal lands, such as national forests or national parks. The states are responsible for managing wildfires that originate on all other lands. Although a greater number of wildfires occur annually on nonfederal lands, wildfires on federal lands tend to be much larger, particularly in the western United States. The federal government’s wildfire management responsibilities—fulfilled primarily by the Forest Service (FS) and the Department of the Interior (DOI)—include prevention, detection,...

Present Trends and the Evolution of Mandatory Spending

Federal spending is divided into three broad categories: discretionary spending, mandatory spending, and net interest. Mandatory spending is composed of budget outlays controlled by laws other than appropriation acts, including federal spending on entitlement programs. Entitlement programs such as Social Security, Medicare, and Medicaid make up the bulk of mandatory spending. Other mandatory spending funds various income support programs, including Supplemental Security Income (SSI), unemployment insurance, and the Supplemental Nutrition Assistance Program (SNAP), as well as federal...

Cross-Border Energy Trade in North America: Present and Potential

The United States, Canada, and Mexico in many ways comprise one large, integrated market for energy commodities. Canada, for example, is the single largest foreign supplier of crude oil to the United States, and the United States is Canada’s sole crude oil customer. Both Mexico and Canada are major buyers of petroleum products refined in the United States. A growing trade in natural gas produced in the United States is also increasingly important to the energy relationship among the three countries. Trade in the other energy commodities—electricity, natural gas liquids, and coal—is...

An Overview of the Housing Finance System in the United States

When making a decision about housing, a household must choose between renting and owning. Multiple factors, such as a household’s financial status and expectations about the future, influence the decision. Few people who decide to purchase a home have the necessary savings or available financial resources to make the purchase on their own. Most need to take out a loan. A loan that uses real estate as collateral is typically referred to as a mortgage.

A potential borrower applies for a loan from a lender in what is called the primary market. The lender underwrites, or evaluates, the...

U.S. Farm Program Eligibility and Payment Limits

Current U.S. farm program participants—whether individuals or multi-person legal entities—must meet specific eligibility requirements to receive benefits under certain farm programs. Some requirements are common across most programs while others are specific to individual programs. In addition, program participants are subject to annual payment limits that vary across different combinations of farm programs. Federal farm support programs, along with their current eligibility requirements and payment limits, are listed in Table 1.

Since 1970, Congress has used varying policies to address...

Invasive Species: Major Laws and the Role of Selected Federal Agencies

An “invasive” species (alternatively known as an alien, exotic, injurious, introduced or naturalized, non-native, nonindigenous, nuisance, or noxious species) refers to an animal or plant that is introduced into an environment where it is not native. The introduction of invasive species to the United States—whether deliberate or unintentional—from around the globe can pose a significant threat to native animal and plant communities, and may result in extinctions of native animals and plants, species disruptions as native and non-native species compete for limited resources, reduced...

The Excise Tax on High-Cost Employer-Sponsored Health Insurance: Estimated Economic and Market Effects

The Patient Protection and Affordable Care Act (ACA; P.L. 111-148, as amended) included a provision to impose an excise tax on high-cost employer-sponsored insurance (ESI) coverage beginning in 2018 (recently delayed until 2020). This provision, popularly termed the Cadillac tax, imposes an excise tax on ESI coverage in excess of a predetermined threshold. The tax is imposed on the coverage provider, typically the health insurance provider or the entity that administers the plan benefits.

Currently, employers’ spending on ESI coverage and most employees’ contributions to ESI plans are...

The Office of Surface Mining’s Stream Protection Rule: An Overview

On July 16, 2015, the Office of Surface Mining Reclamation and Enforcement (OSM) of the Department of the Interior proposed a Stream Protection Rule that would revise regulations implementing Title V of the Surface Mining Control and Reclamation Act (SMCRA). Revised rules are intended to avoid or minimize adverse impacts of coal mining on surface water, groundwater, fish, wildlife, and other natural resources by limiting the mining of coal in or through streams, placement of waste in streams and limiting the generation of mining waste. Some of the existing regulations that would be...

Border-Adjusted Taxes: A Primer

Overview of Further Continuing Appropriations for FY2017 (H.R. 2028)

This report is an analysis of the provisions in H.R. 2028, which provides further continuing appropriations for FY2017 through April 28, 2017. The measure also included appropriations for the remainder of the fiscal year for Overseas Contingency Operations in the Security Assistance Appropriations Act (Division B). On December 10, 2016, the President signed H.R. 2028 into law (P.L. 114-254).

Division A of H.R. 2028 was termed a “continuing resolution” (CR) because it provided temporary authority for federal agencies and programs to continue spending in FY2017 in the same manner as a...

Insurance Regulation: Background, Overview, and Legislation in the 114th Congress

The individual states have been the primary regulators of insurance since 1868. Following the 1945 McCarran-Ferguson Act, this system has operated with the explicit blessing of Congress, but has also been subject to periodic scrutiny and suggestions that the time may have come for Congress to reclaim the regulatory authority it granted to the states. In the late 1980s and early 1990s, congressional scrutiny was largely driven by the increasing complexities of the insurance business and concern over whether the states were up to the task of ensuring consumer protections, particularly...

Legislative Options in the 114th Congress for Financing Water Infrastructure

This report addresses several options considered by Congress to address the financing needs of local communities for wastewater and drinking water infrastructure projects and to decrease or close the gap between available funds and projected needs. Some of the options exist and are well established, but they have been under discussion for expansion or modification. Other innovative policy options for water infrastructure have been proposed, especially to supplement or complement existing financing tools. Some are intended to provide robust, long-term revenue to support existing financing...

U.S. Economy in a Global Context

The 21st Century Cures Act (Division A of P.L. 114-255)

The 21st Century Cures Act (P.L. 114-255) was signed into law on December 13, 2016, by President Barack Obama. On November 30, 2016, the House passed the House amendment to the Senate amendment to H.R. 34, the 21st Century Cures Act, on a vote of 392 to 26. The bill was then sent to the Senate where it was considered and passed, with only minor technical modification, on December 7, 2016, on a vote of 94 to 5. The law consists of three divisions: Division A—21st Century Cures Act; Division B—Helping Families in Mental Health Crisis; and Division C—Increasing Choice, Access, and Quality...

The Overseas Private Investment Corporation: Background and Legislative Issues

The Overseas Private Investment Corporation (OPIC), a wholly owned U.S. government corporation, is referred to as the U.S. development finance institution (DFI). It provides political risk insurance, project and investment funds financing, and other services to promote U.S. direct investment in developing countries and emerging economies that will have a development impact. It operates under the foreign policy guidance of the Secretary of State. OPIC’s governing legislation is the Foreign Assistance Act of 1961, as amended (22 U.S.C. §2191 et seq.).

Congress periodically has extended...

U.S. International Corporate Taxation: Basic Concepts and Policy Issues

Recent deficit reduction and tax reform plans have included broad proposals to reform the U.S. international corporate tax system. These proposals have raised concerns over how changing the way American multi-national corporations are taxed could impact the deficit and debt, domestic job markets, competitiveness, and the use of corporate tax havens, among other things. An informed debate about how to reform the system governing the taxation of U.S. multi-national corporations requires careful consideration of these issues, as well as a basic understanding of several features of the current...

DHS Appropriations FY2017: Security, Enforcement, and Investigations

This report is part of a suite of reports that discuss appropriations for the Department of Homeland Security (DHS) for FY2017. It specifically discusses appropriations for the components of DHS included in the second title of the homeland security appropriations bill—Customs and Border Protection, Immigration and Customs Enforcement, the Transportation Security Administration, the U.S. Coast Guard, and the U.S. Secret Service. Collectively, Congress has labeled these components in recent years as “Security, Enforcement, and Investigations.”

The report provides an overview of the...

DHS Appropriations FY2017: Research and Development, Training, and Services

This report is part of a suite of reports that discuss appropriations for the Department of Homeland Security (DHS) for FY2017. It specifically discusses appropriations for the components of DHS included in the fourth title of the homeland security appropriations bill—in past years, this has comprised U.S. Citizenship and Naturalization Services, the Federal Law Enforcement Training Center, the Science and Technology Directorate, and the Domestic Nuclear Detection Office (DNDO). In FY2017, the Administration proposed moving the Domestic Nuclear Detection office into a new Chemical,...

The Federal Food Safety System: A Primer

Numerous federal, state, and local agencies share responsibilities for regulating the safety of the U.S. food supply. Federal responsibility for food safety rests primarily with the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA). FDA, an agency of the Department of Health and Human Services, is responsible for ensuring the safety of all domestic and imported food products (except for most meats and poultry). FDA also has oversight of all seafood, fish, and shellfish products. USDA’s Food Safety and Inspection Service (FSIS) regulates most meat and poultry...

Financial Challenges of Operating Nuclear Power Plants in the United States

Some of the 60 operating nuclear power plants (comprising 99 nuclear reactors) in the United States have experienced financial stress in recent years due to a combination of low wholesale electricity prices and escalating costs. Six nuclear reactors have permanently shut down during the past five years, and 19 others have announced their intention to close or have been identified as “at-risk” of closure by financial consultants and ratings agencies.

Generally, U.S. nuclear plants are located in one of two market areas: (1) competitive—where the value of electricity fluctuates based on...

The National Space Council

According to press reports, the Trump Administration may reestablish the National Space Council, a coordinating body in the Executive Office of the President that was last active in 1993. The National Space Council was established in 1989 “to provide a coordinated process for developing a national space policy and strategy and for monitoring its implementation.” It was chaired by the Vice President and included the Secretaries of State, Treasury, Defense, Commerce, and Transportation, the Director of the Office of Management and Budget, the President’s Chief of Staff, the Assistant to the...

Creating a Federal Advisory Committee in the Executive Branch

Federal advisory committees provide a formal forum for members of the public to provide advice and recommendations to the federal government on issues ranging from how to support trade goals of small and minority-owned businesses to which drugs best treat arthritis pain. Many of the roughly 1,000 federal advisory committees that operate at any given time are required to operate pursuant to the open meetings, records access, and reporting requirements of the Federal Advisory Committee Act (FACA).

Advisory committees are established for a number of reasons. These reasons often include...

Has the U.S. Government Ever “Defaulted”?

During recent debt limit episodes, federal officials have contended that if the debt limit were to constrain the government’s ability to meet its obligations, that would be an unprecedented blemish on the nation’s credit. For example, the U.S. Treasury has asserted that “(f)ailing to increase the debt limit would have catastrophic economic consequences. It would cause the government to default on its legal obligations” or that it “would represent an irresponsible retreat from a core American value: we are a nation that honors all of its commitments. It would cause the government to default...

The U.S. Trade Situation for Fruit and Vegetable Products

Over the last decade, there has been a growing U.S. trade deficit in fresh and processed fruits and vegetables. Although U.S. fruit and vegetable exports totaled $6.3 billion in 2015, U.S. imports of fruits and vegetables were $17.6 billion, resulting in a gap between imports and exports of $11.4 billion (excludes nuts and processed nut products). This trade deficit has generally widened over time as growth in imports has outpaced export growth. As a result, the United States has gone from being a net exporter of fresh and processed fruits and vegetables in the early 1970s to being a net...

Demographic and Social Characteristics of Persons in Poverty: 2015

This report provides a snapshot of the characteristics of the poor in the United States in 2015. It shows that people from families whose income falls below the federal poverty thresholds represent a diverse subset of the overall population.

There were 43 million people living below the federal poverty level in 2015, representing 13.5% of the total population.

Nearly half (45.1%) of all people in poverty lived in deep poverty (with income below 50% of the poverty threshold).

The largest share of people in poverty were non-Hispanic white (41.2%) but the majority were not. Almost all other...

Federal Income Tax Treatment of the Family

Individual income tax provisions have shifted over time, first in increasing the burden on larger families, and then in decreasing it. These shifts were caused by changing tax code features: personal exemptions, standard and itemized deductions, rates, the earned income credit (EIC), the child credit, and other standard structural aspects of the tax. Some of these features reflect changes made by the 2001 Bush tax cuts, which were extended for an additional two years by P.L. 111-312 and largely made permanent by the American Taxpayer Relief Act (P.L. 112-240). The most recent legislative...

Financial Innovation: “Fintech”

“Regulatory Relief” for Banking: Selected Legislation in the 114th Congress

The 114th Congress is considering legislation to provide “regulatory relief” for banks. The need for this relief, some argue, results from new regulations introduced in response to vulnerabilities that were identified during the financial crisis that began in 2007. Some have contended that the increased regulatory burden—the cost associated with government regulation and its implementation—is resulting in significant costs that restrain economic growth and consumers’ access to credit. Others, however, believe the current regulatory structure strengthens financial stability and increases...

Infrastructure Finance and Debt to Support Surface Transportation Investment

Investment in surface transportation infrastructure is funded mainly with current receipts from taxes, tolls, and fares, but it is financed by public-sector borrowing and, in some cases, private borrowing and private equity investment. Financing is normally not arranged at the federal level, as the federal government builds few transportation projects directly. This report discusses current federal programs that support the use of debt finance and private investment to build and rebuild highways and public transportation. It also considers legislative options intended to encourage greater...

Internet Gambling: Policy Issues for Congress

Gambling, once widely outlawed, is now a regulated, taxed activity that is legal in some form—bingo, card games, slot machines, state-run lotteries, casinos, and even online—in all states except Hawaii and Utah. Like so many other industries, the gambling industry is being transformed by technology that has begun to shift patronage from casinos, bingo halls, or stores selling lottery tickets to desktop computers and tablets connected to the Internet and to mobile devices that may communicate by telephone or direct satellite links. According to one private estimate, annual revenue in the...

Compensated Work Sharing Arrangements (Short-Time Compensation) as an Alternative to Layoffs

Short-time compensation (STC) is a program within the federal-state unemployment insurance system. In states that have STC programs, workers whose hours are reduced under a formal work sharing plan may be compensated with STC, which is a regular unemployment benefit that has been pro-rated for the partial work reduction.

Although the terms work sharing and short-time compensation are sometimes used interchangeably, work sharing refers to any arrangement under which workers’ hours are reduced in lieu of a layoff. Under a work sharing arrangement, a firm faced with the need to downsize...

Corporate Tax Integration: In Brief

In January 2016, Senator Orrin Hatch, chairman of the Senate Finance Committee, announced plans for a tax reform that would explore corporate integration. Corporate integration involves the elimination or reduction of additional taxes on corporate equity investment that arise because corporate income is taxed twice, once at the corporate level and once at the individual level. Traditional concerns are that this system of taxation is inefficient because it (1) favors noncorporate equity investment over corporate investment, (2) favors debt finance over equity finance, (3) favors retained...

Selected Recently Expired Individual Tax Provisions (“Tax Extenders”): In Brief

The Protecting Americans From Tax Hikes (PATH) Act, considered as an amendment to the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2016 (P.L. 114-113), was signed into law on December 18, 2015. That legislation made some tax provisions that had expired at the end of 2014 permanent, and extended others through the 2016 tax year. This report briefly summarizes and discusses selected items categorized as individual tax provisions. These and other temporary tax provisions that have been regularly extended for one or two years are often referred to as “tax...

The Federal Minimum Wage: Indexation

In 1938, the Fair Labor Standards Act (FLSA) established a federal minimum wage of $0.25 per hour. The minimum wage provisions of the FLSA have been amended numerous times since then, typically for the purpose of expanding coverage or raising the wage rate. Since its establishment, the minimum wage rate has been raised 22 separate times, most recently in 2007-2009 when it was increased from $5.15 per hour to its current rate of $7.25 per hour in three steps.

The federal minimum wage changes only when Congress amends the FLSA. Since 1938, Congress has amended the FLSA to raise the minimum...

Federal Reserve: Legislation in the 114th Congress

The Federal Reserve (Fed) is the subject of legislation being considered in the 114th Congress. These bills contain wide-ranging provisions that can be grouped into four broad categories:

Changes to Fed governance. Some proposals would change the Fed’s institutional structure. H.R. 22 (P.L. 114-94) reduced the dividend paid by the Fed to large commercial banks that hold stock in the Fed and permanently capped the Fed’s surplus at $10 billion. H.R. 3189 would permanently eliminate the Fed’s surplus. H.R. 26 (P.L. 114-1) required at least one nominee for the Fed’s board of governors to have...

Effects of Lower Oil Prices

Unemployment and Inflation: Implications for Policymaking

The unemployment rate is a vital measure of economic performance. A falling unemployment rate generally occurs alongside rising gross domestic product (GDP), higher wages, and higher industrial production. The government can generally achieve a lower unemployment rate using expansionary fiscal or monetary policy, so it might be assumed that policymakers would consistently target a lower unemployment rate using these policies. Part of the reason policymakers do not revolves around the relationship between the unemployment rate and the inflation rate.

In general, economists have found that...

State Voter Identification Requirements: Analysis, Legal Issues, and Policy Considerations

About 60% of U.S. voters live in the 32 states that require a voter at a polling place to produce an identification document (ID) before casting a ballot. Among those states, 19 permit voters without ID to cast a ballot through alternative means, such as signing an affidavit; 13 strictly enforce the ID requirement. The other 18 states and the District of Columbia have a range of nondocument requirements instead.

Over the last two decades, the number of states requiring voter IDs has tripled. The stringency of those requirements is controversial. States vary substantially in the range of...

Congress and the Budget: 2016 Actions and Events

The Constitution grants Congress the power of the purse, but does not dictate how Congress must fulfill this constitutional duty. Congress has, therefore, developed certain types of budgetary legislation, along with rules and practices that govern its content and consideration. This set of budgetary legislation, rules, and practices is often referred to as the congressional budget process.

There is no prescribed congressional budget process that must be strictly followed each year, and Congress does not always consider budgetary measures in a linear or predictable pattern. Such...

Irrigation in U.S. Agriculture: On-Farm Technologies and Best Management Practices

Recent threats to water availability as a result of moderate to exceptional drought in several states have raised questions about agricultural water use and efficiencies across the United States. An understanding of common irrigation technologies and the impacts of best management practices in irrigation may be useful to Congress concerning potential policy responses to this issue. As a major user of water, the agricultural industry’s use of water resources continues to be a focal point of agriculture policy. Additional demands on water supplies, extreme weather events (e.g., prolonged...

Overview of Continuing Appropriations for FY2017 (H.R. 5325)

The purpose of this report is to provide an analysis of the continuing appropriations provisions for FY2017 in H.R. 5325. The measure also included provisions covering appropriations in the Military Construction and Veterans Affairs Appropriations bill for all of FY2017 (Division A), as well as emergency funds to combat the Zika virus and provide relief for flood victims in Louisiana and other affected states (Division B). On September 29, 2016, the President signed H.R. 5325 into law (P.L. 114-223).

Division C of H.R. 5325 was termed a “continuing resolution” (CR) because measures to...

Trafficking in Persons in Latin America and the Caribbean

Countries in Latin America serve as source, transit, and destination countries for trafficking in persons (TIP). Victims are exploited within their own countries and trafficked to other countries in the region. Latin America is also a primary source region for people trafficked to the United States, including by transnational organized crime groups. In FY2015, Mexico was the primary country of origin for foreign trafficking victims certified as eligible to receive U.S. assistance. Recent victims identified in the United States also have originated in Brazil and Central America. Smaller...

Receipt of Unemployment Insurance by Higher-Income Unemployed Workers (“Millionaires”)

Under the federal-state Unemployment Insurance (UI) system, there is currently no prohibition on the receipt of UI benefits by high-income unemployed workers. States, which determine many of the eligibility requirements for UI benefits, may not restrict eligibility based on individual or household income.

Recent Congresses, however, have considered proposals to restrict the payment of unemployment benefits to high-income individuals. These proposals define high income in a variety of ways—often prohibiting UI benefits for “millionaires.” For instance, in the 112th Congress, the...

Tax Policy and U.S. Territories: Overview and Issues for Congress

There are 14 U.S. territories, or possessions, five of which are inhabited: Puerto Rico (PR), Guam, U.S. Virgin Islands (USVI), American Samoa (AS), and the Commonwealth of the Northern Mariana Islands (CNMI). Each of these inhabited territories has a local tax system with features that help determine each territory’s local public finances.

The U.S. Internal Revenue Code (IRC) has two important roles in establishing the tax policy relationship between the United States and the territories. First, native residents of U.S. territories are U.S. citizens or nationals but are taxed more...

Patents and Prescription Drug Importation

Prescription drugs often cost far more in the United States than in other countries. Some consumers have attempted to import medications from abroad in order to realize cost savings. The practice of importing prescription drugs outside the distribution channels established by the brand-name drug company is commonly termed “parallel importation” or “re-importation.” Parallel imports are authentic products that are legitimately distributed abroad and then sold to consumers in the United States, without the permission of the authorized U.S. dealer.

Numerous bills have been introduced in the...

Labor, Health and Human Services, and Education: FY2016 Appropriations

This report provides an overview of actions taken by Congress and the President to provide FY2016 appropriations for accounts funded by the Departments of Labor, Health and Human Services, and Education, and Related Agencies (LHHS) appropriations bill. This bill provides funding for all accounts funded through the annual appropriations process at the Departments of Labor (DOL) and Education (ED). It provides annual appropriations for most agencies within the Department of Health and Human Services (HHS), with certain exceptions (e.g., the Food and Drug Administration is funded via the...

Statutorily Required Federal Advisory Committees that Began Operations in FY2015

Congress regularly establishes federal advisory committees—sometimes called task forces, panels, commissions, working groups, boards, councils, or conferences. Many of these committees are required to operate pursuant to the Federal Advisory Committee Act (FACA; 5 U.S.C. Appendix), which seeks to make advisory committee operations more accessible and transparent. Federal advisory committees are one of only a few formalized mechanisms for private-sector citizens to participate in the executive branch’s policymaking process. FACA committees are prohibited from creating policy or issuing...

Conflict in South Sudan and the Challenges Ahead

South Sudan, which separated from Sudan in 2011 after almost 40 years of civil war, was drawn into a devastating new conflict in late 2013, when a political dispute that overlapped with preexisting ethnic and political fault lines turned violent. Civilians have been routinely targeted in the conflict, often along ethnic lines, and the warring parties have been accused of war crimes and crimes against humanity. The war and resulting humanitarian crisis have displaced more than 2.7 million people, including roughly 200,000 who are sheltering at U.N. peacekeeping bases in the country. Over 1...

Corporate Tax Integration and Tax Reform

In January 2016, Senator Orrin Hatch, chairman of the Senate Finance Committee, announced plans for a tax reform that would explore corporate integration. Corporate integration involves the elimination or reduction of additional taxes on corporate equity investment that arise because corporate income is taxed twice, once at the corporate level and once at the individual level. Traditional concerns are that this system of taxation is inefficient because it (1) favors noncorporate equity investment over corporate investment, (2) favors debt finance over equity finance, (3) favors retained...

The Financial CHOICE Act in the 114th Congress: Policy Issues

The Financial CHOICE Act (FCA; H.R. 5983), sponsored by Chairman Jeb Hensarling, was ordered to be reported by the House Committee on Financial Services on September 13, 2016. The bill is a wide-ranging proposal with 11 titles that would alter many parts of the financial regulatory system. Much of the FCA is in response to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act; P.L. 111-203), a broad package of regulatory reform legislation that initiated the largest change to the financial regulatory system since at least 1999. Many of the provisions of the...

U.S. International Food Aid Programs: Background and Issues

For almost six decades, the United States has played a leading role in global efforts to alleviate hunger and malnutrition and to enhance world food security through international food assistance—traditionally through either the donation or sale on concessional terms of U.S. agricultural commodities but in recent years also by direct cash transfers targeting emergency situations and by investing in host-country nutrition and agricultural development activities.

Historically, U.S. international food assistance has been distributed through four main program authorities: (1) the Food for...

The Dodd-Frank Act: An Overview of the 2016 Incentive-Based Compensation Proposal

Incentive compensation or incentive-based compensation refers to the portion of an employee’s pay that is not fixed in contrast to an annual or monthly salary. Incentive compensation takes the form of variable contingent compensation, particularly cash bonuses, that are based on the attainment of certain firm or employee performance metrics. Such pay has been a significant component of compensation for executives and other key personnel at many firms in the financial sector. Many argue that such compensation contributed to the 2007-2009 financial crisis by incentivizing pivotal financial...

Sea-Level Rise and U.S. Coasts: Science and Policy Considerations

Policymakers are interested in sea-level rise because of the risk to coastal populations and infrastructure and the consequences for coastal species and ecosystems. From 1901 to 2010, global sea levels rose an estimated 187 millimeters (mm; 7.4 inches), averaging a 1.7 mm (0.07 inch) rise annually. Estimates are that the annual rate rose to 3.2 mm (0.13 inches) from 1992 to 2010. Although the extent of future sea-level rise remains uncertain, sea-level rise is anticipated to have a range of effects on U.S. coasts. It is anticipated to contribute to flood and erosion hazards, permanent or...

Selected Securities Legislation in the 114th Congress

In the aftermath of the 2008-2009 financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act; P.L. 111-203), a wide-ranging package of regulatory reform legislation. Some provisions mandated new securities regulations that expanded required corporate disclosures to the Securities and Exchange Commission (SEC) and the investing public. Some Members of Congress have characterized provisions of the act, including several requiring additional corporate disclosures, as excessive regulation.

Enacted in the 112th Congress, the...

China: Economic Sanctions

United States-China relations, since 1969, when the process of normalization began under President Richard M. Nixon, have advanced to a point that relatively few restrictions affecting trade remain. This report summarizes the United States’ economic sanctions on China. The United States, in its relationship with China, limits U.S. foreign assistance and State Department programs; limits U.S. support for China’s requests for funding in the international banks; prohibits the exportation of defense articles and defense services to China; prohibits the importation of munitions and ammunition...

Implementing Bills for Trade Agreements: Statutory Procedures under Trade Promotion Authority

The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (BCTPAA, title II of P.L. 114-26) renewed the “trade promotion authority” (TPA) under which implementing bills for trade agreements that address non-tariff barriers to trade (and certain levels of tariff reduction) are eligible for expedited (or “fast track”) consideration by Congress under the “trade authorities procedures” established by the Trade Act of 1974 (P.L. 93-618). These expedited procedures provide for automatic introduction of the implementing bill submitted by the President, attempt to ensure that...

Shale Gas, Tight Oil, and Hydraulic Fracturing: CRS Experts

The following tables provide names and contact information for CRS experts on policy areas relating to the use of hydraulic fracturing for oil and gas development. The first table covers topics generally related to unconventional oil and gas resources, including Resource Assessment and Development, Technical Issues, and Markets and Utilization. The second table addresses topics related to environmental regulation and management of hydraulic fracturing activities. Broad topics include the following: Air Quality, Chemical Disclosure, Regulation of Hydraulic Fracturing on Federal Lands, Water...

Trafficking in Persons and U.S. Foreign Policy Responses in the 114th Congress

Trafficking in persons, or human trafficking, refers to the subjection of men, women, and children to exploitative conditions that may be tantamount to slavery. Reports suggest that human trafficking is a global phenomenon, victimizing millions of people each year and contributing to a multi-billion dollar criminal industry. Common forms of human trafficking include trafficking for commercial sexual exploitation, forced labor, and debt bondage. Other forms of human trafficking include trafficking for domestic servitude and the use of children in armed conflict (e.g., child soldiers).

Human...

Commodity Futures Trading Commission: Proposed Reauthorization in the 114th Congress

The Commodity Futures Trading Commission (CFTC), created in 1974, regulates futures, most options, and swaps markets. The CFTC administers the Commodity Exchange Act (CEA; P.L. 74-765, 7 U.S.C. §1 et seq) enacted in 1936 to monitor trading in certain derivatives markets. The CEA contains a sunset provision, meaning Congress periodically reauthorizes appropriations to carry out the CEA. If an explicit authorization of appropriations for a program or activity is present—as in the CEA—and it expires, the underlying authority in the statute to administer such a program does not, however. Thus,...

Overview of the Prudential Regulatory Framework for U.S. Banks: Basel III and the Dodd-Frank Act

The Basel III international regulatory framework, which was produced in 2010 by the Basel Committee on Banking Supervision (BCBS) at the Bank for International Settlements, is the latest in a series of evolving agreements among central banks and bank supervisory authorities to promote standardized bank prudential regulation (e.g., capital and liquidity requirements, transparency, risk management) to improve resiliency during episodes of financial distress. Because prudential regulators are concerned that banks might domicile in countries with the most relaxed safety and soundness...

Natural Gas: A Key Part of the Global Energy Mix

The role of natural gas in the U.S. economy has been a major part of the energy policy debate in the 114th Congress. This report briefly explains key aspects of global natural gas markets, including supply and demand, and major U.S. developments.

Natural gas is considered by some as a potential bridge fuel to a lower-carbon economy, because it is cleaner burning than its hydrocarbon alternatives coal and oil. Natural gas combustion emits about one-half less carbon dioxide than coal and one-quarter less than oil when consumed in a typical electric power plant, although fugitive gas...

Energy Legislation: Comparison of Selected Provisions in S. 2012 as Passed by the House and Senate

Congress most recently enacted major energy legislation in the Energy Independence and Security Act of 2007 (P.L. 110-140). The 114th Congress is currently considering new legislation to address broad energy issues. On April 20, 2016, the Senate passed an amended version of S. 2012, the Energy Policy and Modernization Act. On December 3, 2015, the House passed an amended version of H.R. 8, the North American Energy Security and Infrastructure Act of 2015. On May 25, 2016, the House passed an amended version of S. 2012 which contains the text of H.R. 8, as well as the text of several other...

Federal Inspectors General: History, Characteristics, and Recent Congressional Actions

Federal inspectors general (IGs) are authorized to combat waste, fraud, and abuse within their affiliated federal entities. To execute their missions, offices of inspector general (OIGs) conduct and publish audits and investigations—among other duties. Two major enactments—the Inspector General Act of 1978 and its amendments of 1988 (codified at 5 U.S.C. Appendix)—established federal IGs as permanent, nonpartisan, and independent offices in more than 70 federal agencies.

OIGs serve to assist Congress in overseeing executive branch—and a few legislative branch—agencies. They provide...

Sessions, Adjournments, and Recesses of Congress

The House and Senate use the terms session, adjournment, and recess in both informal and more formal ways, but the concepts apply in parallel ways to both the daily and the annual activities of Congress. A session begins when the chamber convenes and ends when it adjourns. A recess, by contrast, does not terminate a session, but only suspends it temporarily.

In context of the daily activities of Congress, any calendar day on which a chamber is in session may be called a (calendar) “day of session.” A legislative day, by contrast, continues until the chamber adjourns. A session that...

Terrorism and Violent Extremism in Africa

The pace of high-profile terrorist attacks in Sub-Saharan Africa has intensified in recent years, and the death toll now rivals that of other regions where violent Islamist extremist groups are active. This report provides context for these trends, including a summary of sub-regional dynamics, factors affecting radicalization, and U.S. responses. It focuses primarily on Sunni Islamist terrorism, given the ideological underpinnings of the African groups currently designated by the U.S. State Department as Foreign Terrorist Organizations. Select issues for Congress are also explored....

Economic Implications of a United Kingdom Exit from the European Union

This report provides an analysis of the possible economic implications for the United States and the global economy of an exit from the European Union (EU) by the United Kingdom (UK), commonly referred to as Brexit. It offers background information on possible implications of the vote to leave the EU, an overview of U.S.-UK trade and investment relations, and various estimates of Brexit’s financial implications for the U.S. and global economies. For Members of Congress, economic fallout from Brexit could increase the risks of a slower rate of economic growth and potentially complicate...

Agriculture and the Transatlantic Trade and Investment Partnership (T-TIP) Negotiations

The Transatlantic Trade and Investment Partnership (T-TIP) is a potential reciprocal free trade agreement being negotiated between the United States and the European Union (EU). Formal negotiations began in July 2013. Through the negotiations, both sides are seeking to liberalize transatlantic trade and investment, set globally relevant rules and disciplines that could boost economic growth, support multilateral trade liberalization through the World Trade Organization (WTO), and address third-country trade policy challenges. Agricultural issues have been an active topic of debate in the...

Real Estate Investment Trusts (REITs) and the Foreign Investment in Real Property Tax Act (FIRPTA): Overview and Recent Tax Revisions

The Consolidated Appropriations Act of 2016 (P.L. 114-13) made several changes to the tax treatment of Real Estate Investment Trusts (REITs) and the Foreign Investment in Real Property Tax Act (FIRPTA, enacted in the Omnibus Reconciliation Act of 1980, P.L. 96-499) as it relates to REITs. REITs are corporations that issue shares of stock, are largely invested in real property, and do not generally pay corporate tax. REITs distribute and deduct most income as dividends to shareholders. U.S. individual shareholders pay tax at ordinary individual income tax rates on those dividends (rather...

Consumer Operated and Oriented Plan (CO-OP) Program: Frequently Asked Questions

The Consumer Operated and Oriented Plan (CO-OP) program was included in the Patient Protection and Affordable Care Act (ACA; P.L. 111-148) in an effort to increase the competitiveness of state health insurance markets and improve choice. Under the program, the Centers for Medicare & Medicaid Services (CMS) uses appropriated funds to award low-interest loans to organizations applying to become CO-OPs—nonprofit, member-run health insurance issuers that sell health insurance in the state(s) in which they are licensed.

CMS awarded loans to 24 CO-OPs. One of the 24 CO-OPs was dropped from the...

FHFA’s Administrative Reform of Fannie Mae, Freddie Mac, and the Housing Finance System

Housing finance reform remains one of the major unresolved issues stemming from the financial crisis. Congress has held hearings and marked up bills related to reform, but so far only modest structural changes have been enacted. The Federal Housing Finance Agency (FHFA) has used its regulatory authority to enact certain policy changes.

FHFA is the regulator and conservator of Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) that play a significant role in the housing finance system. FHFA has leveraged the authority that it has over the GSEs and their market...

TPP: Estimates of Economic Effects

Financial Services and General Government (FSGG) FY2016 Appropriations: Independent Agencies and General Provisions

The Financial Services and General Government (FSGG) appropriations bill funds more than two dozen independent agencies performing a wide range of functions, such as managing federal real property, regulating financial institutions, and delivering mail. These agencies include Commodity Futures Trading Commission (CFTC), Consumer Product Safety Commission (CPSC), Election Assistance Commission (EAC), Federal Communications Commission (FCC), Federal Election Commission (FEC), Federal Labor Relations Authority (FLRA), Federal Trade Commission (FTC), General Services Administration...

Derivatives: Introduction and Legislation in the 114th Congress

Derivatives are financial instruments that come in several different forms, including futures, options, and swaps. A derivative is a contract that derives its value from some underlying asset at a designated point in time. The derivative may be tied to a physical commodity, a stock index, an interest rate, or some other asset.

Derivatives played a role in the 2008 financial crisis in a variety of ways. The unmonitored buildup of derivatives positions in the largely unregulated “over-the-counter” (OTC) market led many major financial institutions into large financial losses. Possibly the...

The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; H.R. 5278, S. 2328)

Representative Duffy introduced H.R. 5278, the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), on May 18, 2016. This bill is a revised version of H.R. 4900, introduced by Representative Duffy on April 12, 2016. The House Committee on Natural Resources marked up H.R. 5278 on May 25, 2016. Amendments include technical corrections and extensions of certain studies on the Puerto Rico government and economy. The major provisions of the bill were unaffected. The House passed an amended version of H.R. 5278, which is organized into seven titles, on June 9, 2016,...

SBA and CDBG-DR Duplication of Benefits in the Administration of Disaster Assistance: Background, Policy Issues, and Options for Congress

Numerous nonprofit, private, and governmental organizations provide a wide range of assistance after a disaster strikes. Section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (P.L. 93-288) requires federal agencies providing disaster assistance to ensure that individuals and businesses do not receive disaster assistance for losses for which they have already been compensated. Duplication of benefits occurs when compensation from multiple sources exceeds the need for a particular recovery purpose. Recipients are liable to the United States when the assistance...

The Trans-Pacific Partnership (TPP): Analysis of Economic Studies

Congress plays a major role in formulating and implementing U.S. trade policy through its legislative and oversight responsibilities. Under the U.S. Constitution, Congress has the authority to regulate foreign commerce, while the President has the authority to conduct foreign relations. In 2015, Congress reauthorized Trade Promotion Authority (TPA) that (1) sets trade policy objectives for the President to negotiate in trade agreements; (2) requires the President to engage with and keep Congress informed of negotiations; and (3) provides for Congressional consideration of legislation to...

Puerto Rico and Health Care Finance: Frequently Asked Questions

Puerto Rico’s financial circumstances, including uncertainty about its ability to service its large public debt, have drawn attention in recent months. As Congress examines Puerto Rico’s finances, questions have arisen about how federal health care programs (Medicare, Medicaid, and the State Children’s Health Insurance Program [CHIP]) and private health insurance requirements apply to Puerto Rico. Is Puerto Rico treated like a state, or is it treated differently?

This report provides answers to frequently asked questions (FAQs) about Puerto Rico’s health care system. The FAQs are divided...

U.S. Semiconductor Manufacturing: Industry Trends, Global Competition, Federal Policy

Invented and pioneered in the United States shortly after World War II, semiconductors are the enabling technology of the information age. Because of semiconductors new industries have emerged and existing ones, such as aerospace and automotive, have been transformed. Semiconductors have contributed in powerful and unique ways to nearly all fields of science and engineering, and semiconductors’ economic and military importance has made the industry’s health a focus of congressional interest for nearly 70 years. In July 2015, Congress formed the Semiconductor Caucus, a group that seeks to...

Slow Growth in the Current U.S. Economic Expansion

Between 2008 and 2015, economic growth has been, depending on the indicator, one-quarter to one-half the long-term average since World War II. Economic performance has been variable throughout the post-war period, but recent growth is markedly weaker than previous low growth periods, such as 1974 to 1995. Initially, slow growth was attributed to the financial crisis and its aftermath. But even after the recession ended and financial conditions normalized, growth has remained below average in the current economic expansion. The current expansion has already lasted longer than average, but...

Trade-Based Money Laundering: Overview and Policy Issues

Trade-based money laundering (TBML) involves the exploitation of the international trade system for the purpose of transferring value and obscuring the true origins of illicit wealth. TBML schemes vary in complexity but typically involve misrepresentation of the price, quantity, or quality of imports or exports. Financial institutions may wittingly or unwittingly be implicated in TBML schemes when such institutions are used to settle, facilitate, or finance international trade transactions (e.g., through the processing of wire transfers, provision of trade finance, and issuance of letters...

Energy Tax Policy: Issues in the 114th Congress

Current U.S. energy tax policy is a combination of long-standing provisions and relatively new incentives. Provisions supporting the oil and gas sector reflect desires for domestic energy production and energy security, long-standing cornerstones of U.S. energy policy. Incentives for renewable energy reflect the desire to have a diverse energy supply, also consistent with a desire for domestic energy security. Incentives for energy efficiency are designed to reduce use of energy from all energy sources. Incentives for renewable energy, energy efficiency, and alternative technology vehicles...

Social Media for Emergencies and Disasters: Overview and Policy Considerations

Since the mid-1990s, new technologies have emerged that allow people to interact and share information through the Internet. Often called “social media,” these platforms enable people to connect in ways that were non-existent, or widely unavailable 15 years ago. Examples of social media include blogs, chat rooms, discussion forums, wikis, YouTube channels, LinkedIn, Facebook, and Twitter. Social media can be accessed by computers, tablets, smart and cellular telephones, and mobile telephone text messaging (SMS).

In recent years social media has played an increasing role in emergencies and...

Peru: Politics, Economy, and Elections

This report provides an overview of Peru’s political, economic, and security conditions and of U.S.-Peruvian relations.

As President Ollanta Humala is nearing the end of his five-year term, Peru held national elections for the presidency and the 130-seat unicameral legislature on April 10, 2016. Because none of the presidential candidates won an absolute majority, a runoff was held June 5 between two center-right candidates. Economist Pedro Pablo Kuczynski defeated former congresswoman Keiko Fujimori by less than 1% of the vote, 50.12% to 49.88%.

For months, Fujimori had maintained a...

The Trans-Pacific Partnership (TPP): Key Provisions and Issues for Congress

The Trans-Pacific Partnership (TPP) is a proposed free trade agreement (FTA) among 12 Asia-Pacific countries, with both economic and strategic significance for the United States. The proposed agreement is perhaps the most ambitious FTA undertaken by the United States in terms of its size, the breadth and depth of its commitments, its potential evolution, and its geo-political significance. Signed on February 4, 2016, after several years of negotiations, if implemented, TPP would be the largest FTA in which the United States participates, and would eliminate trade barriers and establish new...

A Patent/Innovation Box as a Tax Incentive for Domestic Research and Development

A patent box provides a lower tax rate on income from patents, and in some cases, from other intellectual property. A number of countries, including the U.K., France, the Netherlands, and China, have adopted a patent box. Rates generally range from 5% to 15%. Patent boxes are in some cases referred to as innovation boxes because they cover income from non-patented as well as patented intellectual property. Patent boxes can have narrow coverage (providing a lower tax rate on royalties and licenses from patents) or broadly cover income attributable to intellectual property, including that...

Financial Services and General Government (FSGG) FY2016 Appropriations: Overview

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. The House and Senate FSGG bills fund the same agencies, with one exception. The Commodities and Futures Trading Commission (CFTC) is funded through the Agriculture appropriations bill in the House and the FSGG bill in the Senate. This structure has existed since the 2007 reorganization of the House and Senate Committees on...

PROMESA (H.R. 5278) and Puerto Rico

Overview

Representative Sean Duffy introduced Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA—which means promise in Spanish; H.R. 5278) on May 18, 2016, which is a revised version of H.R. 4900, which Representative Duffy had introduced on April 12, 2016. The House Natural Resources Committee held a hearing on the bill’s provisions and Puerto Rico’s fiscal condition on May 19, 2016. The committee marked up H.R. 5278 on May 25, 2016, and agreed to amendments including those making technical corrections and extending the focus of certain studies on the Puerto Rico...

The EMV Chip Card Transition: Background, Status, and Issues for Congress

Consumer financial card fraud due to data breaches of card information is an ongoing problem in the United States. The majority of breaches are carried out against point-of-sale (POS) systems, and are facilitated by what many consider to be the weak link in the U.S. retail sales payment process: the continued use of magnetic stripe cards (also referred to as stripe-and-signature cards). These cards are still what most U.S. consumers think of when referring to financial cards.

In much of the rest of the world, cards that provide a much higher level of security for conducting sales...

Puerto Rico’s Current Fiscal Challenges

The government of Puerto Rico faces severe fiscal challenges. A federal district court judge in late March 2016 held that the island’s government was insolvent and unable to pay its obligations on time. Emergency legislation (Act 21 of 2016) enacted on April 6, 2016, stated that the Puerto Rican government’s fiscal condition “is more dire than at any other point in its history” and that “depleted resources and strained liquidity threaten to bind the Commonwealth to a choice between honoring its commitments to bondholders or continuing to provide the residents of Puerto Rico with essential...

Overtime Provisions in the Fair Labor Standards Act (FLSA): Frequently Asked Questions

The Fair Labor Standards Act (FLSA), enacted in 1938, is the main federal legislation that establishes general wage and hour standards for most, but not all, private and public sector employees. Among other protections, the FLSA establishes that covered nonexempt employees must be compensated at one-and-a-half times their regular rate of pay for each hour worked over 40 hours in a workweek.

The FLSA also establishes certain exemptions from its general labor market standards. One of the major exemptions to the overtime provisions in the FLSA is for bona fide “executive, administrative, and...

Treasury Issues White Paper on Fintech and Marketplace Lending

Marketplace lenders exemplify some of the ways that shadow banks have sought to access securities markets to fund commercial loans for consumers and businesses. Although there are several marketplace lending arrangements, it is typical for these firms to use data and modeling techniques to evaluate risks and finance loans, which are then typically destined for securities markets instead of depository banks’ portfolios. In some cases, online platforms partner with depository banks to originate the initial platform notes to fund the loans even though the loans are then sold. On May 10, 2016,...

Federal Prison Industries: Background, Debate, Legislative History, and Policy Options

The Federal Prison Industries, Inc. (FPI), is a government-owned corporation that employs offenders incarcerated in correctional facilities under the Federal Bureau of Prisons (BOP). The FPI manufactures products and provides services that are sold to executive agencies in the federal government. The FPI was created to serve as a means for managing, training, and rehabilitating inmates in the federal prison system through employment in one of its industries.

The FPI is intended to be economically self-sustaining and it does not receive funding through congressional appropriations. In...

The Alternative Minimum Tax for Individuals: In Brief

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In addition to raising revenue, the individual income tax has been used as a vehicle to promote various social and economic goals. This has been accomplished by according preferential tax treatment to certain items of income and expense. The net result, however, has been an erosion of the individual income tax base. By utilizing the preferences and incentives in the tax code, some individuals can substantially reduce their income taxes.

To make sure that everyone paid at least some taxes and still preserve the economic and social incentives in the tax code,...

Agricultural Exports and 2014 Farm Bill Programs: Background and Current Issues

U.S. agricultural exports have long been a bright spot in the U.S. balance of trade, with exports exceeding imports in every year since 1960. But the trend of recent years—increasing export sales and a wider agricultural trade surplus—was reversed in FY2015, and the reversal is expected to be more pronounced in FY2016. After climbing to a record $152.3 billion in FY2014, U.S. farm exports declined to $139.7 billion in FY2015, and the U.S. Department of Agriculture (USDA) projects a further reduction to $125 billion in FY2016. Meanwhile, the value of U.S. agricultural imports has continued...

Overview of Commercial (Depository) Banking and Industry Conditions

A commercial bank is an institution that obtains either a federal or state charter that allows it to accept federally insured deposits and pay interest to depositors. In addition, the charter allows banks to make residential and commercial mortgage loans; to provide check cashing and clearing services; to underwrite securities that include U.S. Treasuries, municipal bonds, commercial paper, and Fannie Mae and Freddie Mac issuances; and to conduct other activities as defined by statute, namely the National Banking Act. Commercial banks are limited in what they can do. For example, the...

Patents and Prescription Drug Importation

Prescription drugs often cost far more in the United States than in other countries. Some consumers have attempted to import medications from abroad in order to realize cost savings. The practice of importing prescription drugs outside the distribution channels established by the brand-name drug company is commonly termed “parallel importation” or “re-importation.” Parallel imports are authentic products that are legitimately distributed abroad and then sold to consumers in the United States, without the permission of the authorized U.S. dealer.

Numerous bills have been introduced in the...

China’s Natural Gas: Uncertainty for Markets

China could potentially be a much larger producer and consumer of natural gas than it is now. Despite China’s pollution problems and international environmental commitments, the role of natural gas in China’s energy mix remains relatively low, particularly compared to the United States. China has announced big plans for its natural gas development and use, but the changes will require significant investment in exploration, production, infrastructure, and consumption. With a slowing economy, China may not be in a position in the short-term to undertake these investments.

China’s natural gas...

What’s on Television? The Intersection of Communications and Copyright Policies

In the 1940s and 1950s, watching television meant tuning into one of a few broadcast television stations, with the help of an antenna, to watch a program at a prescheduled time. Over subsequent decades, cable and satellite operators emerged to enable households unable to receive over-the-air signals to watch the retransmitted signals of broadcast television stations. More recently, some viewers have taken to watching TV programming on their computers, tablets, mobile phones, and other Internet-connected devices at times of their own choosing, dispensing with television stations and cable...

DHS Appropriations FY2016: Protection, Preparedness, Response, and Recovery

This report is part of a suite of reports that discuss appropriations for the Department of Homeland Security (DHS) for FY2016. It specifically discusses appropriations for the components of DHS included in the third title of the homeland security appropriations bill—the National Protection and Programs Directorate (NPPD), the Office of Health Affairs (OHA), and the Federal Emergency Management Agency (FEMA). Collectively, Congress has labeled these components in the appropriations act in recent years as “Protection, Preparedness, Response, and Recovery.”

The report provides an overview of...

Export-Import Bank: Frequently Asked Questions

The Export-Import Bank of the United States (Ex-Im Bank or the Bank), a wholly owned federal government corporation, is the official export credit agency (ECA) of the U.S. government. Its mission is to assist in financing and facilitating U.S. exports of goods and services to support U.S. employment. Ex-Im Bank operates under a renewable general statutory charter (Export-Import Bank Act of 1945, as amended). In the 114th Congress, Ex-Im Bank’s charter was extended through September 30, 2019, by the Export-Import Bank Reform and Reauthorization Act of 2015 (Division E of P.L. 114-94, a...

Higher Oil Prices?

The Internet Tax Freedom Act: In Brief

The Internet Tax Freedom Act (ITFA; P.L. 105-277), enacted in 1998, implemented a three-year moratorium preventing state and local governments from taxing Internet access, or imposing multiple or discriminatory taxes on electronic commerce. Under the moratorium, state and local governments cannot impose their sales tax on the monthly payments that consumers make to their Internet service provider in exchange for access to the Internet. In addition to the moratorium, a grandfather clause was included in ITFA that allowed states which had already imposed and collected a tax on Internet...

Nigeria’s Boko Haram: Frequently Asked Questions

Boko Haram, a violent Nigerian Islamist movement, has grown increasingly active and deadly in its attacks against state and civilian targets in recent years, drawing on narratives of religious exclusivism, victimization, and vengeance for state abuses to elicit sympathizers and recruits. The group’s April 2014 abduction of almost 300 schoolgirls drew particular international attention, including from the Obama Administration and Members of Congress. Boko Haram’s high death toll and its pledge of allegiance to the Islamic State (IS, aka ISIL or ISIS) in March 2015 have further raised the...

Unaccompanied Children from Central America: Foreign Policy Considerations

Since FY2011, the number of unaccompanied alien children (UAC) traveling to the United States from the “northern triangle” nations of Central America—El Salvador, Guatemala, and Honduras—has increased sharply. U.S. authorities encountered more than 52,000 unaccompanied minors from the region at the U.S. border in FY2014, a more than 1,200% increase compared to FY2011. This unexpected surge of children strained U.S. government resources and created a complex crisis with humanitarian implications. U.S. apprehensions of unaccompanied minors from the northern triangle declined by 45% in...

High Frequency Trading: Overview of Recent Developments

High-frequency trading (HFT) generally refers to trading in financial instruments, such as securities and derivatives, transacted through supercomputers executing trades within microseconds or milliseconds (or, in the technical jargon, with extremely low latency). There is no universal or legal definition of HFT, however. Neither the Securities and Exchange Commission (SEC), which oversees securities markets, nor the Commodity Futures Trading Commission (CFTC), which regulates most derivatives trading, have specifically defined the term. By most accounts, high frequency trading has grown...

Department of Labor’s 2015 Proposed Fiduciary Rule: Background and Issues

On April 20, 2015, the Department of Labor (DOL) proposed redefining the term investment advice within pension and retirement plans. Under the Employee Retirement Income Security Act of 1974 (ERISA; P.L. 93-406), a person who provides investment advice has a fiduciary obligation, which means that the person must provide the advice in the sole interest of plan participants. Thus, redefining the term investment advice could affect who is subject to this fiduciary standard.

Regulations issued in 1975 define investment advice using a five-part test. To be held to ERISA’s fiduciary standard...

Offender Reentry: Correctional Statistics, Reintegration into the Community, and Recidivism

The number of people incarcerated in the United States grew steadily for nearly 30 years. That number has been slowly decreasing since 2008, but as of 2014 there were still over 2 million people incarcerated in prisons and jails across the country. The Bureau of Justice Statistics (BJS) reports that between 1990 and 2014 an average of 594,600 inmates have been released annually from state and federal prisons and almost 5 million ex-offenders are under some form of community-based supervision.

Nearly all prisoners will return to their communities as some point. Offender reentry can include...

Taxation of Credit Unions: In Brief

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Credit unions are financial cooperatives organized by people with a common bond; they are the only depository institutions exempt from the federal corporate income tax. As financial cooperatives, credit unions only accept deposits of members and make loans only to members, other credit unions, or credit union organizations. At the inception of the federal income tax, credit unions along with thrifts and other mutual financial institutions were exempt from federal tax. Subsequent developments have seen thrifts and other mutual financial institutions lose their exemption....

The Pacific Alliance: A Trade Integration Initiative in Latin America

The Pacific Alliance is a regional integration initiative formed by Chile, Colombia, Mexico, and Peru on April 28, 2011. Its main purpose is for members to form a regional trading bloc and forge stronger economic ties with the Asia-Pacific region. Costa Rica and Panama are candidates to become full members once they meet certain requirements. The United States joined the Alliance as an observer on July 18, 2013. The United States has free trade agreements with all four countries and has significant trade and foreign policy ties with the region. The Pacific Alliance is of interest to...

DHS Appropriations FY2016: Research and Development, Training, and Services

This report is part of a suite of reports that discuss appropriations for the Department of Homeland Security (DHS) for FY2016. It specifically discusses appropriations for the components of DHS included in the fourth title of the homeland security appropriations bill—U.S. Citizenship and Immigration Services (USCIS), the Federal Law Enforcement Training Center (FLETC), the Science and Technology Directorate (S&T), and the Domestic Nuclear Detection Office (DNDO). Collectively, Congress has labeled these components in appropriations acts in recent years as “Research and Development,...

U.S. Trade Concepts, Performance, and Policy: Frequently Asked Questions

Congress plays a major role in U.S. trade policy through its legislative and oversight authority. There are a number of major trade issues that are currently the focus of Congress. For example, bills were introduced in the 113th Congress to reauthorize Trade Promotion Authority (TPA), the U.S. Generalized System of Preferences (GSP), and the U.S. Export-Import Bank, and legislative action on these issues could be forthcoming in the 114th Congress. Additionally, Congress has been involved with proposed free trade agreements (FTAs), including the Trans-Pacific Partnership (TPP) involving the...

The Federal Budget: Overview and Issues for FY2017 and Beyond

The federal budget is a central component of the congressional “power of the purse.” Each fiscal year, Congress and the President engage in a number of practices that influence short- and long-run revenue and expenditure trends. This report offers context for the current budget debate, and tracks legislative events related to the federal budget as they occur.

In recent years, policies enacted to decrease spending, along with a stronger economy, have led to reduced budget deficits. The Budget Control Act of 2011 (BCA; P.L. 112-25) implemented several measures intended to reduce the deficit...

The Chinese Military: Overview and Issues for Congress

China is building a modern and regionally powerful military with a limited but growing capability for conducting operations away from China’s immediate periphery. The question of how the United States should respond to China’s military modernization effort is a central issue in U.S. defense planning and foreign policy. Congress’s decisions on this issue could affect U.S. defense strategy, budgets, plans, and programs, and the U.S. defense industrial base.

China has engaged in a sustained and broad effort over more than 25 years to transform its military, the People’s Liberation Army (PLA),...

Financial Services and Cybersecurity: The Federal Role

Multiple federal and state regulators oversee companies in the financial services industry. Regulatory authority is often directed at particular functions or financial services activities rather than at particular entities or companies. It is, therefore, likely that a financial services company with multiple product lines—deposits, securities, insurance—will find that it must answer to different regulators with respect to particular aspects of its operations. Five federal agencies oversee depository institutions, two regulate securities, several agencies have discrete authority over...

Individual Taxpayer Identification Number (ITIN) Filers and the Child Tax Credit: Overview and Legislation

The child tax credit is intended to help ease the financial burden on families when they have children. The credit offsets a taxpayer’s federal income tax liability and also includes a refundable portion that may be claimed by taxpayers with little or no tax liability. The refundable portion is known as the additional child tax credit (ACTC).

To claim the child tax credit (including the ACTC), the taxpayer must provide a taxpayer identification number for the taxpayer, his or her spouse if married filing jointly, and any children. These identification numbers can be Social Security...

Tax Reform in the 114th Congress: An Overview of Proposals

Many agree that the U.S. tax system is in need of reform. Congress continues to explore ways to make the U.S. tax system simpler, fairer, and more efficient. Identifying and enacting policies that will result in a simpler, fairer, and more efficient tax system remains a challenge.

On December 10, 2014, the chairman of the House Committee on Ways and Means introduced a comprehensive tax reform proposal, the Tax Reform Act of 2014 (H.R. 1). The bill proposed substantial changes to both the individual and corporate income tax systems, reducing statutory tax rates for many taxpayers, while...

DHS Appropriations FY2016: Departmental Management and Operations

This report is part of a suite of reports that discuss appropriations for the Department of Homeland Security (DHS) for FY2016. It specifically discusses appropriations for the components of DHS included in the first title of the homeland security appropriations bill—the Office of the Secretary and Executive Management, the Office of the Under Secretary for Management, the DHS headquarters consolidation project, the Office of the Chief Financial Officer, the Office of the Chief Information Officer, Analysis and Operations, and the Office of Inspector General for the department....

Daylight Saving Time

Daylight Saving Time (DST) is a period of the year between spring and fall when clocks in the United States are set one hour ahead of standard time. DST is currently observed in the United States from 2:00 a.m. on the second Sunday in March until 2:00 a.m. on the first Sunday in November. The following states and territories do not observe DST: Arizona (except the Navajo Nation, which does observe DST), Hawaii, American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands.

Country-of-Origin Labeling for Foods and the WTO Trade Dispute on Meat Labeling

Since the final rule to implement country-of-origin labeling (COOL) took effect in March 2009, most retail food stores have been required to inform consumers about the country of origin of fresh fruits and vegetables, fish, shellfish, peanuts, pecans, macadamia nuts, ginseng, and ground and muscle cuts of beef, pork, lamb, chicken, and goat. The rules were required by the 2002 farm bill (P.L. 107-171) as amended by the 2008 farm bill (P.L. 110-246). COOL for beef and pork resulted in a World Trade Organization (WTO) dispute settlement case with Canada and Mexico that started in 2009 and...

International Trade and Finance: Key Policy Issues for the 114th Congress, 2nd Session

The U.S. Constitution grants authority to Congress to regulate commerce with foreign nations. Congress exercises this authority in numerous ways, including through oversight of trade policy and consideration of legislation to approve trade agreements and authorize trade programs. Policy issues cover such areas as U.S. trade negotiations, U.S. trade and economic relations with specific regions and countries, international institutions focused on trade, tariff and nontariff barriers, worker dislocation due to trade liberalization, trade remedy laws, import and export policies, international...

Transatlantic Trade and Investment Partnership (T-TIP) Negotiations

The Transatlantic Trade and Investment Partnership (T-TIP) is a potential reciprocal free trade agreement (FTA) that the United States and the European Union (EU) are negotiating with each other. Formal negotiations commenced in July 2013. Both sides initially aimed to conclude the negotiations in two years, but more recently have updated their timeline and aim to conclude the T-TIP by the end of 2016. Twelve rounds of T-TIP negotiations have occurred to date.

The United States and EU seek to enhance market access and trade disciplines by addressing remaining transatlantic barriers to...

Daily Fantasy Sports: Industry Trends, Legal and Regulatory Issues, and Policy Options

Daily fantasy sports (DFS) companies, which operate online gaming platforms that allow players to assemble imaginary sports teams and compete in daily or weekly contests, function in a gray area of the law. The federal government does not license or regulate them. State governments have the main responsibility for regulating gaming activities that offer the prospect of monetary rewards, but a series of federal laws, most recently the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA; P.L. 109-347), may limit states’ ability to oversee DFS. The 2006 law, however, was enacted at a...

Local Food Systems: Selected Farm Bill and Other Federal Programs

Sales of locally produced foods comprise a small but growing part of U.S. agricultural sales. Estimates vary but indicate that local food sales total between $4 billion to $12 billion annually. The U.S. Department of Agriculture (USDA) estimates that local food sales totaled $6.1 billion in 2012, reflecting sales from nearly 164,000 farmers selling locally marketed foods. This represents 8% of U.S. farms, and an estimated 1.5% of the value of total U.S. agricultural production. Most (85%) of all local-food farms are smaller in size, with gross revenues under $75,000.

Local and regional...

FY2016 Agriculture and Related Agencies Appropriations: In Brief

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA), except for the Forest Service. It also funds the Food and Drug Administration (FDA) and—in even-numbered fiscal years—the Commodity Futures Trading Commission (CFTC).

Agriculture appropriations include both mandatory and discretionary spending. Discretionary amounts, though, are the primary focus during the bill’s development since mandatory amounts generally are set by authorizing laws such as the farm bill.

The largest discretionary spending items are the Special Supplemental Nutrition Program for Women,...

Agriculture and Related Agencies: FY2016 Appropriations

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA), except for the Forest Service. It also funds the Food and Drug Administration (FDA) and—in even-numbered fiscal years—the Commodity Futures Trading Commission (CFTC).

Agriculture appropriations include both mandatory and discretionary spending. Discretionary amounts, though, are the primary focus during the bill’s development since mandatory amounts generally are set by authorizing laws such as the farm bill.

The largest discretionary spending items are the Special Supplemental Nutrition Program for Women,...

The Federal Excise Tax on Motor Fuels and the Highway Trust Fund: Current Law and Legislative History

The federal government levies an excise tax on various motor fuels. Under current law, the tax rate is 18.3 cents per gallon on gasoline and 24.3 cents per gallon on diesel fuel. A 0.1 cents per gallon tax is also levied on top of these fuel tax rates to help fund expenses associated with fuel regulation. These rates are not automatically adjusted for inflation. Specific tax rates also apply to special motor fuels. Under current law, federal motor fuels excise tax collections are credited to two federal spending accounts: the Highway Trust Fund (HTF) and the Leaking Underground Storage...

The Role of Local and Regional Food Systems in U.S. Farm Policy

Sales of locally produced foods comprise a small but growing part of U.S. agricultural sales. Estimates vary but indicate that local food sales total between $4 billion and $12 billion annually. The U.S. Department of Agriculture (USDA) estimates that local food sales totaled $6.1 billion in 2012, reflecting sales from nearly 164,000 farmers selling locally marketed foods. This represents 8% of U.S. farms and an estimated 1.5% of the value of total U.S. agricultural production. Most (85%) of all local-food farms are smaller in size, with gross revenues under $75,000.

A wide range of farm...

Federal Research and Development Funding: FY2016

President Obama’s budget request for FY2016 included $145.694 billion for research and development (R&D), an increase of $7.625 billion (5.5%) over the estimated FY2015 R&D funding level of $138.069 billion. The request represented the President’s R&D priorities.

Funding for R&D is concentrated in a few departments and agencies. Under President Obama’s FY2016 budget request, seven federal agencies would have received 95.6% of total federal R&D funding, with the Department of Defense (DOD, 49.5%) and the Department of Health and Human Services (HHS, 21.3%) accounting for more than 70% of...

FY2016 Appropriations for the Census Bureau and Bureau of Economic Analysis

This report discusses FY2016 appropriations (discretionary budget authority) for the Bureau of Economic Analysis (BEA) and Bureau of the Census (Census Bureau), which make up the Economics and Statistics Administration (ESA) in the U.S. Department of Commerce. The report will not be updated.

The FY2016 budget request for ESA (except the Census Bureau) was $113.8 million, $13.8 million (13.8%) over the $100.0 million FY2015-enacted funding level. Of the $113.8 million, the $110.0 million requested for BEA was $13.7 million (14.2%) above the $96.3 million FY2015-enacted amount; the $3.9...

An Overview of USDA Rural Development Programs

More than 88 programs administered by 16 different federal agencies target rural economic development. The United States Department of Agriculture (USDA) administers the greatest number of rural development programs and has the highest average of program funds going directly to rural counties (approximately 50%). The Rural Development Policy Act of 1980 also designated USDA as the lead federal agency for rural development. The Federal Crop Insurance Reform and Department of Agricultural Reorganization Act of 1994 created the Office of the Under Secretary for Rural Development and...

The Trans-Pacific Partnership (TPP): In Brief

The Trans-Pacific Partnership (TPP) is a proposed free trade agreement (FTA) among 12 Asia-Pacific countries, with both economic and strategic significance for the United States. If approved, it would be the largest FTA in which the United States participates. The 12 countries announced the conclusion of the TPP negotiations and released the text of the agreement in late 2015, after several years of ongoing talks. Trade ministers from the TPP countries signed the final agreement on February 4, 2016, but Congress would need to pass implementing legislation for the agreement to enter into...

The Child Tax Credit: Economic Analysis and Policy Options

The child tax credit is currently structured as a $1,000-per-child credit that is partially refundable for lower-income families with more than $3,000 in earnings. Prior to 2001, the child tax credit was a $500-per-child nonrefundable tax credit which generally benefited middle- and upper-middle-income taxpayers.

Since 2001, legislative changes, particularly those made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA; P.L. 107-16) and the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5), have altered the structure of this tax benefit. Specifically,...

The Trans-Pacific Partnership (TPP): Strategic Implications

On February 4, 2016, Ministers of the 12 countries participating in the Trans Pacific Partnership (TPP) negotiations signed the proposed free trade agreement (FTA). TPP is one of the Obama Administration’s signature trade policy initiatives, an effort to reduce and eliminate trade and investment barriers and establish new rules and disciplines to govern trade and investment among the 12 countries. TPP proponents, including Administration officials, argue that the proposed TPP would have substantial strategic benefits for the United States in addition to its direct economic impact. They...

Overview of FY2016 Appropriations for Commerce, Justice, Science, and Related Agencies (CJS)

This report tracks and describes actions taken by the Administration and Congress to provide FY2016 appropriations for the Commerce, Justice, Science, and Related Agencies (CJS) accounts. It also provides an overview of FY2015 appropriations for agencies and bureaus funded as part of the annual appropriation for CJS.

The Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235) provided a total of $61.753 billion for the agencies and bureaus funded by the annual CJS appropriations act, including $8.467 billion for the Department of Commerce, $27.030 billion for the...

Methods of Estimating the Total Cost of Federal Regulations

Federal agencies issue thousands of regulations each year under delegated authority from Congress. Over the past 70 years, Congress and various Presidents have created a set of procedures agencies must follow to issue these regulations, some of which contain requirements for the calculation and consideration of costs, benefits, and other economic effects of regulations. In recent years, many Members of Congress have expressed an interest in various regulatory reform efforts that would change the current set of rulemaking requirements, including requirements to estimate costs and benefits...

An Analysis of Portfolio Lending and Qualified Mortgages

Title XIV of the Dodd-Frank Act established the ability-to-repay (ATR) requirement. Under the ATR requirement, a lender must determine based on documented and verified information that, at the time a mortgage is made, the borrower has the ability to repay the loan. Lenders that fail to comply with the ATR rule could be subject to legal liability, such as the payment of certain statutory damages.

A lender can comply with the ATR requirement in different ways, one of which is by originating a Qualified Mortgage (QM). When a lender originates a QM, it is presumed to have complied with the ATR...

Recently Expired Community Assistance-Related Tax Provisions (“Tax Extenders”): In Brief

The Protecting Americans from Tax Hikes Act Of 2015 (PATH Act; P.L. 114-113), signed by President Obama on December 18, 2015, permanently authorized many tax extenders and temporarily extended others. Four community assistance tax extenders were among the provisions temporarily extended by the law.

This report briefly summarizes and discusses the economic impact of the four community assistance-related tax provisions, which are (1) the New Markets Tax Credit, (2) Empowerment Zone Tax Incentives, (3) allocation of bond limitations for Qualified Zone Academy Bonds, and (4) the American...

The Glass-Steagall Act: A Legal and Policy Analysis

The phrase “Glass-Steagall” generally refers to the separation of commercial banking from investment banking. Congress effected a separation of commercial and investment banking through four sections of the Banking Act of 1933—Sections 16, 20, 21, and 32. These four statutory provisions are commonly referred to as the Glass-Steagall Act.

Key Takeaways of This Report

The Glass-Steagall debate is not centered on prohibiting risky financial services; rather, the debate is about whether to permit inherently risky commercial and investment banking activities to be conducted within a single...

Treasury Department Appropriations, FY2016

At its most basic level of organization, the Treasury Department is a collection of departmental offices and operating bureaus. The bureaus as a whole account for 95% of Treasury’s budget and workforce. Most bureaus and offices are funded through annual appropriations.

Treasury appropriations were distributed among 10 accounts in FY2015: (1) Departmental Offices (DO), (2) Departmentwide Systems and Capital Investments Program (DSCIP), (3) Office of Inspector General (OIG), (4) Treasury Inspector General for Tax Administration (TIGTA), (5) Special Inspector General for the Troubled Asset...

The Social Security Disability Insurance (DI) Trust Fund: Background and Current Status

Social Security Disability Insurance (SSDI) provides benefits to nonelderly workers and their eligible dependents if the worker paid Social Security taxes for a certain number of years and is unable to perform substantial work due to a qualifying impairment. As in Old-Age and Survivors Insurance (OASI)—the retirement component of Social Security—benefits are based on a worker’s past earnings in covered employment. In December 2014, SSDI provided disability insurance coverage to more than 151 million people and paid benefits to about 9 million disabled workers and 2 million of their spouses...

Recently Expired Charitable Tax Provisions (“Tax Extenders”): In Brief

The Protecting Americans from Tax Hikes Act of 2015, enacted as Division Q in the Consolidated Appropriations Act, 2016 (P.L. 114-113), made permanent several temporary charitable tax provisions. Previously, these charitable tax provisions had been a part of the “tax extenders.” Most recently before P.L. 114-113, “tax extenders” were extended in The Tax Increase Prevention Act of 2014 (P.L. 113-295). Under P.L. 113-295, provisions that had expired at the end of 2013 were extended, for one year, through 2014. This report briefly summarizes the temporary charitable tax provisions that were...

Department of Homeland Security Appropriations: FY2016

This report discusses the FY2016 appropriations for the Department of Homeland Security (DHS) and provides an overview of the Administration’s FY2016 request. The report makes note of many budgetary resources provided to DHS, but its primary focus is on funding approved by Congress through the appropriations process. It also includes an Appendix with definitions of key budget terms used throughout the suite of Congressional Research Service reports on homeland security appropriations. It also directs the reader to other reports providing context for and additional details regarding...

The Indian Health Service (IHS): An Overview

The IHS provides an array of medical services, including inpatient, ambulatory, emergency, dental, public health nursing, and preventive health care. The IHS does not have a defined medical benefit package that includes or excludes specific health services or health conditions. The majority of IHS facilities provide outpatient care, focusing on primary and preventive care including preventive screenings and health education. IHS provides services directly when possible; when needed services are not available, IHS beneficiaries may be referred to private providers for care. This is called...

The Consolidated Appropriations Act, 2016: Effects on Budgetary Trends

This report discusses recent changes to the federal budget outlook and the effects of these amendments on recent budgetary trends using the CBO and JCT cost estimates for the legislation, the CBO budget forecast released in August 2015, and OMB historical data.

Separation of Powers: An Overview

Congress’s role and operation in national politics is fundamentally shaped by the design and structure of the governing institution in the Constitution. One of the key principles of the Constitution is separation of powers. The doctrine is rooted in a political philosophy that aims to keep power from consolidating in any single person or entity, and a key goal of the framers of the Constitution was to establish a governing system that diffused and divided power. These objectives were achieved institutionally through the design of the Constitution. The legislative, executive, and judicial...

Health-Related Tax Expenditures: Overview and Analysis

Public and private health care spending is growing due to increased enrollment in health insurance, demographic changes of an aging society, and the expansion of government programs, among other reasons. While much attention is being paid to the budgetary cost of outlays from the largest federally funded health programs (Medicare, Medicaid, and the Children’s Health Insurance Program), the implicit subsidies in the Internal Revenue Code for the provision of private- and publicly-provided health insurance are sometimes less prominent in public debates. These subsidies are tax expenditures,...

Selected Recently Expired Business Tax Provisions (“Tax Extenders”)

The Consolidated Appropriations Act of 2016 (P.L. 114-113), signed into law on December 18, 2015, made permanent, extended through 2019, or extended through 2016 some tax provisions that had expired at the end of 2014. Previous legislation had extended these provisions for a year (or in some cases two years) at a time. Several bills had been considered in the 114th Congress to make some provisions permanent, including the R&E tax credit (H.R. 880), expensing of investments (H.R. 636, S. 1399), and treatment of built-in gains for Subchapter S corporations (H.R. 636). The Senate Finance...

USDA’s “GIPSA Rule” on Livestock and Poultry Marketing Practices

The 2008 farm bill (P.L. 110-246) included new provisions that amended the Packers and Stockyards Act (P&S Act) to give poultry and swine growers the right to cancel contracts, to require that poultry processors clearly disclose to growers additional required capital investments, to set the choice of law and venue in contract disputes, and to give poultry and swine growers the right to decline an arbitration clause that requires arbitration to resolve contract disputes. The farm bill required USDA to propose rules to implement these provisions.

On June 22, 2010, the U.S. Department of...

Big Data in U.S. Agriculture

Recent media and industry reports have employed the term big data as a key to the future of increased food production and sustainable agriculture. A recent hearing on the private elements of big data in agriculture suggests that Congress too is interested in potential opportunities and challenges big data may hold. While there appears to be great interest, the subject of big data is complex and often misunderstood, especially within the context of agriculture.

There is no commonly accepted definition of the term big data. It is often used to describe a modern trend in which the combination...

Federal Reserve Issues Final Rule on Emergency Lending

This report briefly discusses major provisions of the Federal Reserve's (Fed's) Final Rule, governing emergency lending under Section 13(3) of the Federal Reserve Act and implementing Section 1101 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank).

Gun Control: CRS Experts

The following table provides names and contact information for CRS experts on policy and legal issues related to gun control. In the wake of mass shootings and other firearms-related violence, several gun control issues are often raised. They include improving and expanding background checks, further regulating certain semiautomatic firearms (“assault weapons” or “military-style” firearms) that accept detachable ammunition feeding devices (“magazines”), combating illegal gun trafficking, interstate concealed carry of handguns, and enacting or repealing appropriations limitations related...

Oil, Natural Gas, and Coal: CRS Experts

Fossil fuels play a dominant role in U.S. energy. The United States is a major producer and consumer of oil (and petroleum products), natural gas, and coal. U.S. fossil fuel reserves, production, processing and refining, distribution, markets, and use are of perennial interest among policymakers and the public. Ongoing concerns include retail gasoline prices, oil and other commodity markets, potential for expanded domestic supply, environmental effects of continued fossil combustion, and the benefits and drawbacks of trade in these commodities. The following tables provide access to names...

Need-Tested Benefits: Estimated Eligibility and Benefit Receipt by Families and Individuals

Need-tested benefits have received increased attention from policymakers in recent years, as spending levels for these programs remain elevated well into the economic expansion that followed the 2007-2009 recession. While information is available on the number of people who receive benefits from individual programs, it is more challenging to examine how these programs interact and the cumulative benefits families receive from them. Case studies based on hypothetical families often show how much in benefits a family may potentially receive from multiple programs under federal and state...

The Budget Control Act of 2011 as Amended: Budgetary Effects

Following a lengthy debate over raising the debt limit, the Budget Control Act of 2011 (BCA; P.L. 112-25) was signed into law by President Obama on August 2, 2011. In addition to including a mechanism to increase the debt limit, the BCA contained a variety of measures intended to reduce the budget deficit through spending restrictions. There are two main components to the spending reductions in the BCA: (1) discretionary spending caps that came into effect in FY2012 and (2) a $1.2 trillion automatic spending reduction process that was initially scheduled to come into effect on January 2,...

Recently Expired Housing Related Tax Provisions (“Tax Extenders”): In Brief

SUPRESS SUMMARY

On December 18, 2015, a set of temporary tax provisions that are regularly extended and that are commonly known as “tax extenders” was retroactively extended by Division Q of P.L. 114-113—the Protecting Americans from Tax Hikes Act (or “PATH” Act). Some of the extensions are permanent; others are temporary. This report briefly summarizes and discusses the economic impact of the four housing related tax provisions included in P.L. 114-113. These provisions include (1) the tax exclusion for canceled mortgage debt; (2) the deduction for qualified mortgage insurance premiums;...

Alcohol Excise Taxes: Current Law and Economic Analysis

The federal excise tax on alcoholic beverages is imposed at the manufacturer and importer level, based on the per unit production or importation of alcoholic beverages (e.g., distilled spirits, wine, and beer) for sale in the U.S. market. When converted to standard drink measures liquor drinks are generally subjected to a federal excise tax of approximately 13 cents per 1.5 ounce shot, wine is taxed at 4 cents per 5 ounce glass, and beer is taxed at 5 cents per 12 ounce can or bottle. Alcohol excise tax collections totaled $10.4 billion in FY2015, with collections from distilled spirits...

Community Banks

Potential Policy Implications of the House Reconciliation Bill (H.R. 3762)

On December 3, 2015, the Senate passed an amendment to H.R. 3762. For information about the Senate amendment to H.R. 3762 and how it compares to the House-passed version of H.R. 3762, see CRS Report R44300, Provisions of the Senate Amendment to H.R. 3762, coordinated by Annie L. Mach. This report will not be updated to reflect the Senate’s actions or subsequent actions taken by the House.

The FY2016 budget resolution (S.Con.Res. 11) established the congressional budget for the federal government for FY2016 and set forth budgetary levels for FY2017-FY2025. It also included reconciliation...

Bitcoin: Questions, Answers, and Analysis of Legal Issues

Bitcoin first appeared in January 2009, the creation of a computer programmer using the pseudonym Satoshi Nakamoto. His invention is an open-source (its controlling computer code is open to public view), peer-to-peer (transactions do not require a third-party intermediary such as PayPal or Visa) digital currency (being electronic with no physical manifestation). The Bitcoin system is private, with no traditional financial institutions involved in transactions. Unlike earlier digital currencies that had some central controlling person or entity, the Bitcoin network is completely...

The National Nanotechnology Initiative: Overview, Reauthorization, and Appropriations Issues

Nanotechnology—a term encompassing the science, engineering, and applications of submicron materials—involves the harnessing of unique physical, chemical, and biological properties of nanoscale substances in fundamentally new and useful ways. The economic and societal promise of nanotechnology has led to investments by governments and companies around the world. In 2000, the United States launched the world’s first national nanotechnology program. From FY2001 through FY2015, the federal government invested approximately $20.9 billion in nanoscale science, engineering, and technology...

Multilateral Development Banks: How the United States Makes and Implements Policy

This report analyzes how the United States makes policy towards the multilateral development banks (MDBs) and identifies ways by which Congress can shape U.S. policy and influence the activities of the banks themselves.

The executive branch and Congress share responsibility for U.S. policy towards the MDBs and each has primary control over a different part of the policy process. The Administration is responsible for negotiating with other countries and for managing day-to-day U.S. participation in the MDBs. Congress has ultimate authority over the level of U.S. financial commitments and...

International Climate Change Negotiations: What to Expect in Paris, December 2015

The Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) convenes for the 21st time (COP21) in Paris, France, from November 29 to December 11, 2015. The United States ratified the UNFCCC in 1992. Accordingly, the United States and the other 195 UNFCCC Parties already have legally binding but qualitative obligations under the treaty. COP21 intends to finalize an agreement under the UNFCCC to address climate change from 2020 on. A major focus is to lay out a path toward stabilizing greenhouse gas (GHG) concentrations in the atmosphere to avoid...

The Islamic State—Frequently Asked Questions: Threats, Global Implications, and U.S. Policy Responses

In the wake of the deadly November 13, 2015, terrorist attacks in Paris, U.S. policymakers are faced with a wide range of strategy and operational considerations related to the activities of and threats emanating from the Islamic State (IS). A terrorist attack such as this prompts an examination of U.S. domestic security precautions; the role of allies and coalition partners; the appropriate military and diplomatic reactions; the safety and security of infrastructure and that of travelers; and numerous additional discrete issues that require the active involvement of dozens of federal,...

Legislation Eliminating the Federal Reserve's Surplus

The Fed retains some of its profits in a surplus account, which currently has a balance of $29.3 billion. This report discusses H.Amdt. 824 to the highway bill (H.R. 22) and H.R. 3189, which would permanently eliminate the surplus.

Policy Issues Related to Credit Union Lending

Credit unions make loans to their members, to other credit unions, and to corporate credit unions that provide financial services to individual credit unions. There are statutory restrictions on their business lending activities, which the credit union industry has long advocated should be lifted. Specific restrictions on business lending include an aggregate limit on an individual credit union’s member business loan balances and on the amount that can be loaned to one member. Industry spokespersons have argued that easing the restrictions on member business lending could increase the...

The Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA): Background and Funding

Native Americans living in tribal areas experience some of the poorest housing conditions in the United States. Native Americans in tribal areas are several times more likely to live in housing that is physically substandard or overcrowded than the U.S. population as a whole. They are also more likely to live in poverty than the general population, further contributing to housing problems. In addition, a number of issues, such as the legal status of tribal land, pose unique barriers to housing for many people living in tribal areas.

In light of these conditions, and the federal...

The Debt Limit: History and Recent Increases

Congress has always restricted federal debt. The Second Liberty Bond Act of 1917 included an aggregate limit on federal debt as well as limits on specific debt issues. Through the 1920s and 1930s, Congress altered the form of those restrictions to give the U.S. Treasury more flexibility in debt management and to allow modernization of federal financing. In 1939, a general limit was placed on federal debt.

Federal debt accumulates when the government sells debt to the public to finance budget deficits and to meet federal obligations or when it issues debt to government accounts, such as the...

State and Local Government Series (SLGS) Treasury Debt: A Description

On February 4, 2014, in anticipation of no increase in the statutory debt limit, the U.S. Treasury announced in a press release that it would suspend “sales of State and Local Government Series (SLGS) nonmarketable Treasury securities until further notice” on February 7, 2014. The debt limit was extended on February 15, 2014, and the Treasury resumed sales of SLGS on February 18, 2014. As of September 30, 2014, SLGS represented 0.6% ($105.7 billion) of total debt outstanding. Suspending SLGS does not change the debt limit but rather just delays the date when it is reached. Some have...

Federal Reserve: Dividends Paid to Commercial Banks

This report briefly provides background on dividends paid to banks by the Federal Reserve (Fed), which would be reduced in the Senate-passed highway trust fund bill (H.R. 22) as a budgetary offset.

The SBA Disaster Loan Program: Overview and Possible Issues for Congress

Through its Office of Disaster Assistance (ODA), the Small Business Administration (SBA) has been a major source of assistance for the restoration of commerce and households in areas stricken by natural and human-caused disasters since the agency’s creation in 1953. Through its disaster loan program, SBA offers low-interest, long-term loans for physical and economic damages to businesses to help repair, rebuild, and recover from economic losses after a declared disaster. The majority of the agency’s disaster loans, however (over 80%) are made to individuals and households (renters and...

The Effect of Base-Broadening Measures on Labor Supply and Investment: Considerations for Tax Reform

One source of interest in a tax reform that broadens the base and lowers the rate is the potential increase in growth, as labor supply and investment respond to lower marginal tax rates. Yet, studies of a signature reform in the past, the Tax Reform Act of 1986, found little effect on growth. The act was revenue and distributionally neutral, which is a goal of some recent tax reform proposals. One reason advanced for the limited effects on growth is that the effects of provisions that broaden the base to finance lower statutory rates increase effective marginal tax rates for some...

Alternative Inflation Measures for the Social Security Cost-of-Living Adjustment (COLA)

Monthly Social Security payments for retired workers, disabled workers, and all other beneficiaries are generally increased annually by a cost-of-living adjustment (COLA), which is based on growth in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation calculated by the Bureau of Labor Statistics (BLS). Several proposals would base the COLA on other measures of inflation produced by the BLS. Some would set the Social Security COLA equal to growth in the Chained CPI for All Urban Consumers (C-CPI-U), which is projected to reduce Social...

Meat Animal Research Center: The Animal Welfare Act and Farm Animal Research

On January 19, 2015, the New York Times (NYT) published an exposé of research activities at the Roman L. Hruska U.S. Meat Animal Research Center located near Clay Center, Nebraska. The Center is a U.S. Department of Agriculture (USDA) facility overseen by USDA’s Agricultural Research Service (ARS). A veterinarian, who had worked at the Center for 24 years, approached the newspaper after his concerns about animal welfare conditions apparently went unanswered by the Center. The news article described “unsanitary housing and brutal treatment of pigs; violent forced mating between bulls and...

Issues in a Tax Reform Limited to Corporations and Businesses

Some tax proposals have focused on broadening the tax base and lowering the rates of both individual and corporate income taxes. In some cases, these proposals have advanced a revenue-neutral tax reform. In other instances, they have proposed revenue increases. An example of a broad-based revenue-neutral income tax reform is H.R. 1 introduced in the 113th Congress by then Ways and Means Chairman Dave Camp. The bill proposed lowering both individual and corporate rates, while increasing the tax base through revising both business-related tax benefits (such as accelerated depreciation) and...

Integrated Mortgage Disclosure Forms and H.R. 3192 and S. 1484/S. 1910: In Brief

On November 20, 2013, the Consumer Financial Protection Bureau (CFPB) issued the TILA-RESPA Integrated Disclosure (TRID) Final Rule that would require mortgage lenders to use more easily understood and streamlined mortgage disclosure forms. The Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) have long required lenders to provide consumers disclosures about the estimated and actual real estate settlement costs and financial terms of the mortgages they offer. These disclosures are intended to help consumers compare the terms and make informed decisions...

Overview of the FY2016 Continuing Resolution (H.R. 719)

The purpose of this report is to provide an analysis of the FY2016 continuing appropriations in H.R. 719. None of the FY2016 regular appropriations bills were enacted by the start of the fiscal year (October 1, 2015). On September 30, 2015, H.R. 719, a continuing resolution (CR) for FY2016, was signed into law by the President (P.L. 114-53).

The CR for FY2016 covers all 12 regular appropriations bills by providing continuing budget authority for projects and activities funded in FY2015 by that fiscal year’s regular appropriations acts, with some exceptions. It includes both budget...

Klamath Basin Settlement Agreements

The Klamath River Basin on the California-Oregon border is a focal point for local and national discussions on water allocation and species protection. Previously, water and species management issues have exacerbated competition and generated conflict among several interests—farmers; Indian tribes; commercial and sport fishermen; federal water project and wildlife refuge managers; environmental groups; hydropower facility operators; and state, local, and tribal governments. Drought conditions and a call for water by senior water rights holders in 2013 have again brought these issues to the...

Economic Effects of the FY2014 Shutdown

This report provides an info-graphic discussing the economic effects of the FY2014 shutdown.

Funding and Financing Highways and Public Transportation

Federal surface transportation programs are currently funded primarily through taxes on motor fuels that are deposited in the Highway Trust Fund (HTF). Although there has been some modification to the tax system, the tax rates, which are fixed in terms of cents per gallon, have not been increased at the federal level since 1993. Prior to the recession that began in 2007, annual increases in driving, with a concomitant increase in fuel use, were sufficient to keep revenues rising steadily. This may no longer be the case. Although vehicle miles traveled have recently returned to...

Human Rights in China and U.S. Policy: Issues for the 114th Congress

This report examines human rights issues in the People’s Republic of China (PRC), including ongoing rights abuses, and legal developments. Major events of the past two years include a clampdown on political dissent and civil society and an escalation of violence in Xinjiang, which many experts attribute at least in part to repressive government policies. Some observers view the closing of the “Re-education Through Labor” penal system as a potentially positive development, although many PRC citizens still are subject to various forms of extra-legal detention. Other, ongoing human rights...

Federal Credit Programs: Comparing Fair Value and the Federal Credit Reform Act (FCRA)

The U.S. government uses direct loans and loan guarantees in a range of policy areas. More than 100 direct federal loans and private financial institution loans guaranteed by the government, known as federal credit programs, are available to individuals and firms. The credit programs support a wide range of economic activities, including home ownership, education, small business, farming, energy, infrastructure investment, and exports. At the end of fiscal year (FY) 2014, outstanding federal credit totaled $3.3 trillion, with direct loans at $1.0 trillion and loan guarantees at $2.3...

Powering Africa: Challenges of and U.S. Aid for Electrification in Africa

The largest infrastructure deficit in sub-Saharan Africa, a region mostly made up of low income developing countries, is in the power sector, according to the World Bank. Rates of access to electricity in Africa are very low by global standards, notably in rural areas. About 57% of Africans, or about 621 million people, lack access to electricity (also referred to as “power” in this report). Whether measured in terms of generation and distribution capacity, electricity consumption, or security of supply, Africa’s power sector delivers a fraction of the service needed or found elsewhere in...

The FY2014 Government Shutdown: Economic Effects

The federal government experienced a funding gap beginning on October 1, 2013, which ended when the Continuing Appropriations Act, 2014 (P.L. 113-46) was signed into law on October 17, 2013. This funding gap resulted in a “government shutdown” and the furlough of federal employees who were not excepted. The Continuing Appropriations Act, 2014 also temporarily suspended the statutory debt limit through February 7, 2014. This report discusses the effects of the FY2014 government shutdown on the economy.

The government shutdown had both direct and indirect effects on economic growth. It...

Unmanned Aircraft Systems (UAS): Commercial Outlook for a New Industry

Unmanned aircraft systems (UAS)—commonly referred to as drones—have become a staple of U.S. military reconnaissance and weapons delivery in overseas war zones such as Afghanistan. Now some new technologies and pending federal regulations are enabling the manufacture and use of UAS in domestic commerce, giving rise to a growing commercial UAS industry.

Flying small, unmanned aircraft has been a hobbyists’ pastime for decades. However, the Federal Aviation Administration (FAA) currently prohibits the use of UAS for commercial purposes, except where it has granted an exemption permitting...

U.S. Catfish Industry and Foreign Trade: A Fact Sheet

Catfish Industry Channel catfish Mississippi, Alabama, Arkansas Fillets frozen Aquaculture Seafood Catch Fisheries Farming Freshwater, Marine Vietnam, Asia Farm Bill, 2008, 2014 Trade Basa, Tra Antidumping duties Labeling USDA, U.S. Department of Agriculture FDA, Food and Drug Administration USITC, U.S. International Trade Commission

VA Accountability Act of 2015 (H.R. 1994) as Passed by the House

This report describes H.R. 1994, 114th Congress, 1st Session, the VA Accountability Act of 2015, as passed by the House on July 29, 2015, and compares its sections to current law where appropriate. Sections 1 through 10 were reported by the Committee on Veterans Affairs. Section 11 was added as a floor amendment.

Section 1 is the short title, “VA Accountability Act of 2015.” Section 2 would authorize the Secretary of Veterans Affairs to expedite removing or demoting most employees for misconduct. Section 3 would require an individual appointed to a permanent position in the competitive...

The Low-Income Housing Tax Credit Program: The Fixed Subsidy and Variable Rate

The Low-Income Housing Tax Credit (LIHTC) program was originally designed to provide financing for rehabilitated and newly constructed rental housing with a subsidy equal to 30% and 70% of construction costs, respectively. To ensure that the 30% or 70% subsidies were achieved, the U.S. Department of the Treasury designed a formula for determining the LIHTC rate. The LIHTC rate is a percentage of the initial qualified investment in a low-income housing project. A higher LIHTC rate generates a larger tax credit. The formula used to determine the rate depends in part on current market...

The Renewable Fuel Standard (RFS): Cellulosic Biofuels

Congressional Research Service 7-5700 www.crs.gov R41106 Summary The Renewable Fuel Standard (RFS) was established under the Energy Policy Act of 2005 (EPAct05, P.L. 109-58), and was later expanded under the Energy Independence and Security Act of 2007 (EISA; P.L. 110-140), in accordance with efforts at that time to reduce dependence on foreign oil, promote biofuel use, and stabilize transportation fuel prices, among other goals. Over 15 years, the RFS requires that increasing amounts of biofuels—36 billion gallons by 2022—be used in transportation fuel. The mandate is to be accomplished...

Seafood Fraud

Fraudulent seafood sales and marketing—the act of defrauding buyers of seafood for economic gain—has been widely reported and has gained greater public attention in recent years. The extent of seafood fraud is difficult to determine because of its clandestine nature; fraud depends on not being detected, which often depends on not attracting attention or causing immediate harm to customers. Seafood fraud can include a variety of illegal activities, such as transshipping products to avoid antidumping and countervailing duties; mislabeling products or substituting one species for another;...

Financial Services and General Government (FSGG): FY2015 Appropriations

Congressional Research Service 7-5700 www.crs.gov R44172 Summary The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. In its current form, it has existed since the 2007 reorganization of the House and Senate Committees on Appropriations. The House and Senate FSGG bills fund nearly the same agencies, with the exception of the Commodities and Futures Trading Commission (CFTC), which is...

Financial Regulatory Improvement Act Included in Senate Appropriations Bill

This report highlights some of the major policy proposals included in S. 1484, as reported by the Senate Banking Committee on June 2, 2015. The text of the bill was among the financial regulatory changes included in the FY2016 Financial Services and General Government Appropriations Act (S. 1910). S. 1484 encompasses a broad package of reforms to the financial regulatory system, including some changes to the Dodd-Frank Act (P.L. 111-203).

The Excise Tax on High-Cost Employer-Sponsored Health Coverage: Background and Economic Analysis

Congressional Research Service 7-5700 www.crs.gov R44160 Summary Beginning in 2018, the Patient Protection and Affordable Care Act (ACA; P.L. 111-148, as amended) imposes a 40%, nondeductible excise tax on the value of applicable employer-sponsored health coverage above specific dollar thresholds. In 2018, these thresholds are $10,200 for single health coverage and $27,500 for non-single (e.g., family) coverage. The thresholds are adjusted for eligible retirees, workers in certain high-risk professions, and plans whose demographics differ from the national workforce. This excise tax on...

Iran Nuclear Agreement: CRS Experts

Congressional Research Service 7-5700 www.crs.gov R44139 Summary Congress is currently in a period of formal review, being conducted on the basis of the Iran Nuclear Agreement Review Act (P.L. 114-17), of the “Joint Comprehensive Plan of Action” (JCPOA) nuclear agreement concluded between Iran and six negotiating powers (“P5+1”) on July 14. The period for initial congressional review under the Act is to conclude on September 17. The agreement has raised a wide variety of questions in Congress. Issues include the specific terms of the deal; the implications for inspections, proliferation,...

The Demand for Municipal Bonds: Issues for Congress

Congressional Research Service 7-5700 www.crs.gov R44146 Summary Municipal bonds are debt securities issued by states, cities, counties, and other government-created agencies to finance capital projects, such as highways, airports, sewers, bridges, schools, hospitals, and other public goods for residents. The municipal bond market is large and varied, consisting of more than an estimated 1.5 million bond types and more than an estimated 55,000 issuers borrowing to finance a variety of civic projects. The U.S. municipal bond market had a total of $3.7 trillion outstanding issuances by year...

Federal Crop Insurance: Background

Congressional Research Service 7-5700 www.crs.gov R40532 Summary The federal crop insurance program began in 1938 when Congress authorized the Federal Crop Insurance Corporation. The current program, which is administered by the U.S. Department of Agriculture’s Risk Management Agency (RMA), provides producers with risk management tools to address crop yield and/or revenue losses for about 130 crops. The federal farm safety net also includes the farm commodity support programs, which provide price and income support for a much narrower list of “covered and loan commodities” such as corn,...

Trafficking in Persons: International Dimensions and Foreign Policy Issues for Congress

Congressional Research Service 7-5700 www.crs.gov R42497 Summary Trafficking in persons, or human trafficking, refers to the subjection of men, women, and children to exploitative conditions that can be tantamount to slavery. Reports suggest that human trafficking is a global phenomenon, victimizing millions of people each year and contributing to a multi-billion dollar criminal industry. It is a centuries-old problem that, despite international and U.S. efforts to eliminate it, continues to occur in virtually every country in the world. Human trafficking is also an international and...

H.R. 6: The 21st Century Cures Act

On July 10, 2015, the House passed H.R. 6, the 21st Century Cures Act, on a vote of 344 to 77. Eight amendments were offered; five were approved by voice vote, two failed by recorded vote, and one was withdrawn. The House Energy and Commerce Committee, on May 21, 2015, unanimously ordered to be reported H.R. 6 and the House Committee on Rules published a committee print of the bill on July 2, 2015. On July 7, 2015, H.R. 6 was reported by the Committee on Energy and Commerce (H.Rept. 114-190), and the House Committee on Ways and Means was discharged from further consideration of the bill....

Iran Nuclear Agreement: Selected Issues for Congress

The nuclear agreement between Iran and six negotiating powers (“P5+1:” United States, France, Britain, Germany, Russia, and China), finalized on July 14, 2015, raises a wide variety of issues as Congress undertakes a formal review under the Iran Nuclear Agreement Review Act (P.L. 114-17). The Administration submitted the 150+ page text (including annexes) of the “Joint Comprehensive Plan of Action,” (JCPOA) to Congress on July 19, 2015, and the period for congressional review under the act is to conclude on September 17. Should the agreement stand after review processes in Congress and in...

Specialty Drugs: Background and Policy Concerns

Congressional Research Service 7-5700 www.crs.gov R44132 Summary Specialty drugs are one of the fastest-growing areas of health care spending. There is no one set definition of specialty drugs, although insurers and other health care payers often characterize them as prescription products requiring extra handling or administration that are used to treat complex diseases including hepatitis C, multiple sclerosis, and cancer. High cost can trigger a specialty drug designation. Biologics, or drugs derived from living cells, are often but not always deemed to be specialty drugs. Over the past...

Federal Tax Benefits for Manufacturing: Current Law and Arguments For and Against

Fueled in part by certain policy initiatives advocated by President Obama, a lively debate over whether additional federal assistance should be provided for manufacturing is taking place among some analysts and lawmakers. Several issues are central to the debate: (1) the contributions of manufacturing to the performance and growth of the U.S. economy, (2) whether the federal government should do more to promote the growth of the sector, and (3) if so, what measures would be likely to have the intended effect?

The federal government supports manufacturing in a variety of ways. This report...

The America COMPETES Acts: An Overview

Scientific and technological advancement played a central role in ensuring U.S. prosperity and power in the 20th century. From the first flight of the Wright brothers in 1903 to the creation of Google in the 1990s, U.S. scientific and technological innovations have reshaped the global economy and provided both economic mobility and national security for generations of Americans.

Whether the United States will maintain its preeminence over the course of the 21st century is an open question. Some observers assert that U.S. leadership is at risk. They argue that the United States...

U.S. Agency for International Development (USAID): Background, Operations, and Issues

This report provides background information on the institutional makeup and operations of the U.S. Agency for International Development (USAID), the leading international humanitarian and development arm of the U.S. government. The report then discusses in greater depth several aspects of the agency that might be of particular congressional interest.

In FY2015, USAID is responsible for more than $20 billion in appropriations, representing more than one-third of the International Affairs 150 budget function and more than half of total foreign assistance encompassed by the State, Foreign...

Update on the Highly-Pathogenic Avian Influenza Outbreak of 2014-2015

The U.S. poultry industry is experiencing a severe outbreak of highly-pathogenic avian influenza (HPAI). The U.S. Department of Agriculture’s (USDA’s) Animal and Plant Health Inspection Service (APHIS) has reported 223 cases of HPAI in domestic flocks in 15 states. With the start of summer, the finding of new cases slowed. The last reported new case was in Iowa on June 17, 2015. More than 48 million chickens, turkeys, and other poultry have been euthanized to stem the spread of the disease. Cases have been caused by several highly pathogenic H5 avian influenza (AI) strains that result in...

Presidential Appointments to Full-Time Positions in Executive Departments During the 113th Congress

The President makes appointments to positions within the federal government, either using the authorities granted by law to the President alone, or with the advice and consent of the Senate. There are some 351 full-time leadership positions in the 15 executive departments for which the Senate provides advice and consent. This report identifies all nominations submitted to the Senate during the 113th Congress for full-time positions in these 15 executive departments.

Information for each department is presented in tables. The tables include full-time positions confirmed by the Senate, pay...

Considerations for a Catastrophic Declaration: Issues and Analysis

The Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act) is the principal authority governing federal emergency and disaster response in the United States. The act authorizes the President to issue three categories of declaration: (1) major disaster, (2) emergency, or (3) fire management assistance grants in response to incidents that overwhelm the resources of state and local governments. Once a major disaster declaration is issued, a wide range of federal disaster assistance becomes available to eligible individuals and households, public entities, and...

Trade Promotion Authority (TPA) and the Role of Congress in Trade Policy

Legislation to reauthorize Trade Promotion Authority (“TPA”), sometimes called “fast track,” was signed by President Obama on June 29, 2015 (P.L. 114-26). It was introduced as the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015; H.R. 1890/S. 995) on April 16, 2015. The legislation was reported by the Senate Finance Committee on April 22, 2015, and by the House Ways and Means Committee the next day. TPA, as incorporated into H.R. 1314 by substitute amendment, passed the Senate on May 22 by a vote of 62-37. In the House of Representatives, the measure was...

California Agricultural Production and Irrigated Water Use

California ranks as the leading agricultural state in the United States in terms of farm-level sales. In 2012, California’s farm-level sales totaled nearly $45 billion and accounted for 11% of total U.S. agricultural sales. Five counties—Tulare, Kern, Fresno, Monterey, and Merced—rank among the leading agricultural counties in the nation.

Given current drought conditions in California, however, there has been much attention on the use of water to grow agricultural crops in the state. Depending on the data source, irrigated agriculture accounts for roughly 40% to 80% of total water...

U.S. Capital Markets and International Accounting Standards: GAAP Versus IFRS

Capital markets function most efficiently when investors and creditors have a high degree of trust in the quality of information communicated by firms. Financial reports and disclosures are the primary means by which firms communicate about their performance with investors, creditors, regulators, and the public. Since the creation of the Securities and Exchange Commission (SEC) in 1930s, domestic companies in the United States have used U.S. Generally Accepted Accounting Principles (U.S. GAAP) to issue financial reports.

In 2002, the International Accounting Standards Board (IASB) was...

U.S. Customs and Border Protection: Trade Facilitation, Enforcement, and Security

International trade is a critical component of the U.S. economy, with U.S. merchandise imports amounting to $2.4 trillion and exports to $1.6 trillion in 2014. The efficient flow of legally traded goods in and out of the United States is thus a vital element of the country’s economic security.

U.S. Customs and Border Protection (CBP), within the Department of Homeland Security (DHS), is the primary agency charged with monitoring, regulating, and facilitating the flow of goods through U.S. ports of entry (POEs). CBP’s policies are designed to (1) ensure the smooth flow of imported cargo...

The Medical Device Excise Tax: Economic Analysis

The 2.3% medical device tax imposed by the Affordable Care Act (ACA; P.L. 111-148) in 2010 was one of a number of additional revenue-raising provisions to finance health reform. This tax, which took effect in January 2013, is projected to collect approximately $30.6 billion over the next 10 fiscal years (FY2016-FY2025), resulting in $24.4 billion of net revenue raised, after accounting for offsets from other taxes.

Some have called for a repeal of the medical device tax since enactment in 2010. Repeal of the tax has become such a high priority for some Members of Congress that it was one...

African Growth and Opportunity Act (AGOA): Background and Reauthorization

The African Growth and Opportunity Act (AGOA) is a nonreciprocal trade preference program that provides duty-free treatment to U.S. imports of certain products from eligible sub-Saharan African (SSA) countries. There are 49 candidate SSA countries with 39 currently eligible for the preference benefits. Congress first authorized AGOA in 2000 to encourage export-led growth and economic development in SSA and improve U.S. economic relations with the region. Its current authorization expires on September 30, 2015.

Bills to renew the preference program (H.R. 1891/S. 1009) were introduced in...

Cybersecurity: Authoritative Reports and Resources, by Topic

Cybersecurity Issues for the Bulk Power System

In the United States, it is generally taken for granted that the electricity needed to power the U.S. economy is available on demand and will always be available to power our machines and devices. However, in recent years, new threats have materialized as new vulnerabilities have come to light, and a number of major concerns have emerged about the resilience and security of the nation’s electric power system. In particular, the cybersecurity of the electricity grid has been a focus of recent efforts to protect the integrity of the electric power system.

The increasing frequency of cyber...

Legislation to Facilitate Cybersecurity Information Sharing: Economic Analysis

Data breaches, such as those at Target, Home Depot, Neiman Marcus, JPMorgan Chase, and Anthem, have affected financial records of tens of millions of households and seem to occur regularly. Companies typically respond by trying to increase their cybersecurity, hiring consultants, and purchasing new hardware and software. Policy analysts have suggested that sharing information about these breaches could be an effective and inexpensive part of improving cybersecurity. Firms share information directly on an ad hoc basis and through private-sector, nonprofit organizations, such as Information...

Department of Homeland Security: FY2015 Appropriations

This report analyzes the FY2015 appropriations for the Department of Homeland Security (DHS). While this report makes note of many budgetary resources provided to DHS, its primary focus is on funding approved by Congress through the appropriations process.

The Administration requested $38.332 billion in adjusted net discretionary budget authority for DHS for FY2015, as part of an overall budget of $60.919 billion (including fees, trust funds, and other funding that is not appropriated or does not score against the budget caps). The request amounted to a $0.938 billion, or 2.4%, decrease...

An Overview of the Employment-Population Ratio

The Bureau of Labor Statistics (BLS) defines the employment-population ratio as the ratio of total civilian employment to the civilian noninstitutional population. Simply put, it is the portion of the population that is employed. The ratio is used primarily as a measure of job holders and to track the pace of job creation, relative to the adult population, over time.

The employment-population ratio has several properties that make it an attractive indicator for labor market analysis. It is easy to interpret and can be used to make meaningful comparisons across time and groups with...

Selected Issues in Homeland Security Policy for the 114th Congress

In 2001, in the wake of the terrorist attacks of September 11th, “homeland security” went from being a concept discussed among a relatively small cadre of policymakers and strategic thinkers to a broadly discussed issue in Congress. Debates over how to implement coordinated homeland security policy led to the passage of the Homeland Security Act of 2002 (P.L. 107-296) and the establishment of the Department of Homeland Security (DHS). Evolution of America’s response to terrorist threats has continued under the leadership of different Administrations, Congresses, and in a shifting...

How Have Small Banks Been Affected by Financial Reform?

This report briefly summarizes a CRS analysis of major rules issued since 2010 by banking regulators pursuant to the Dodd-Frank Act.

Employment for Veterans: Trends and Programs

Veterans’ employment outcomes in the civilian labor market are an issue of ongoing congressional interest. This report offers introductory data on veterans’ performance in the civilian labor market as well as a discussion of veteran-targeted federal programs that provide employment-related benefits and services.

According to federal data, the unemployment rate for veterans who served after September 2001 is higher than the unemployment rate for nonveterans. Conversely, the unemployment rate for veterans from prior service periods (a much larger population than post-9/11 veterans) is lower...

Corporate Tax Base Erosion and Profit Shifting (BEPS): An Examination of the Data

Congress and the Obama Administration have expressed interest in addressing multinational corporations’ ability to shift profits into low- and no-tax countries with little corresponding change in business operations. Several factors appear to be driving this interest. Economists have estimated that profit shifting results in significant tax revenue losses annually, implying that reducing the practice could help address deficit and debt concerns. Profit shifting and base erosion are also believed to distort the allocation of capital as investment decisions are overly influenced by taxes....

Cybersecurity and Information Sharing

Cash Versus Accrual Accounting: Tax Policy Considerations

Two methods of accounting are generally available to businesses: cash basis and accrual basis accounting. Under cash basis accounting, revenue and expenses are recognized and recorded when cash is actually paid or received. Under accrual basis accounting, revenue is recorded when it is earned and expenses are reported when they are incurred, regardless of when payment is actually made or received. On the one hand, the cash basis method is simpler and arguably less administratively burdensome on businesses. On the other hand, cash accounting may result in a less accurate measure of economic...

An Analysis of the Regulatory Burden on Small Banks

Since the financial crisis, policymakers have focused on addressing the failures that led to turmoil and ensuring that the financial system and the economy are better positioned to withstand future market disruptions. Some believe that the actions taken to realize these goals have been beneficial; others argue that the pendulum of regulation has swung too far and that the additional regulation has stymied economic growth and reduced consumers’ access to credit. Much of the debate has centered on how new regulation has affected small banks.

A central question about the regulation of small...

2014 Farm Bill Provisions and WTO Compliance

The enacted 2014 farm bill (Agricultural Act of 2014; P.L. 113-79) could result in potential compliance issues for U.S. farm policy with the rules and spending limits for domestic support programs that the United States agreed to as part of the World Trade Organization’s (WTO’s) Uruguay Round Agreement on Agriculture (AoA). In general, the act’s new farm safety net shifts support away from classification under the WTO’s green/amber boxes and toward the blue/amber boxes, indicating a potentially more market-distorting U.S. farm policy regime.

The 2014 farm bill eliminates many of the...

Housing Issues in the 113th Congress

The 113th Congress was active in considering a number of housing-related issues. In general, these issues can be divided into two broad categories: (1) issues related to homeownership and financing home purchases, and (2) issues related to housing assistance programs for low-income households. Housing assistance for low-income households tends to be primarily, but not exclusively, related to rental housing.

During the 113th Congress, housing and mortgage markets showed some signs of recovering after several years of distress. Nevertheless, several issues that Congress considered were...

Islamic State Financing and U.S. Policy Approaches

Countering the financial resources of the Islamic State, which has seized significant territory in Iraq and Syria and threatened to conduct attacks against the United States and its citizens, has become a significant national security priority for policymakers, including Members of Congress. By undermining the financial strength of the group, also known as ISIL or ISIS, policymakers seek to reduce its capability to conduct terrorist attacks, as well as to ultimately “degrade and ultimately destroy” the group. This effort includes a comprehensive look at how the group generates...

Food Safety Issues for the 114th Congress

Congress passed comprehensive food safety legislation in December 2010 (FDA Food Safety Modernization Act [FSMA], P.L. 111-353), representing the largest expansion and overhaul of U.S. food safety authorities since the 1930s. FSMA greatly expanded food safety oversight authority at the Food and Drug Administration (FDA), within the U.S. Department of Health and Human Services (HHS), but did not alter oversight authorities within other federal agencies responsible for food safety, such as the U.S. Department of Agriculture (USDA). Given challenges facing FDA in implementing this law and...

Science and Technology Issues in the 114th Congress

Science and technology (S&T) have a pervasive influence over a wide range of issues confronting the nation. Public and private research and development spur scientific and technological advancement. Such advances can drive economic growth, help address national priorities, and improve health and quality of life. The constantly changing nature and ubiquity of science and technology frequently create public policy issues of congressional interest.

The federal government supports scientific and technological advancement directly by funding research and development and indirectly by creating...

Ballistic Missile Defense in the Asia-Pacific Region: Cooperation and Opposition

The growing number and modernization of ballistic missiles in the Asia-Pacific region poses a security challenge for the United States and its allies and is thus a concern for many in Congress. The United States has made ballistic missile defense (BMD) a central component of protection for forward-deployed U.S. forces and extended deterrence for allied security. The configuration of sensors, command-and-control centers, and BMD assets in the region has slowly evolved with contributions from treaty allies, primarily Japan, Australia, and South Korea.

Observers believe that North Korea has...

Keystone XL Pipeline: Overview and Recent Developments

TransCanada’s proposed Keystone XL Pipeline would transport oil sands crude from Canada and shale oil produced in North Dakota and Montana to a market hub in Nebraska for further delivery to Gulf Coast refineries. The pipeline would consist of 875 miles of 36-inch pipe with the capacity to transport 830,000 barrels per day. Because it would cross the Canadian-U.S. border, Keystone XL requires a Presidential Permit from the State Department based on a determination that the pipeline would “serve the national interest.” To make its national interest determination (NID), the department...

Labor, Health and Human Services, and Education: FY2015 Appropriations

This report provides an overview of actions taken by Congress and the President to provide FY2015 appropriations for accounts funded by the Departments of Labor, Health and Human Services, and Education, and Related Agencies (L-HHS-ED) appropriations bill. This bill provides funding for all accounts subject to the annual appropriations process at the Departments of Labor (DOL) and Education (ED). It provides annual appropriations for most agencies within the Department of Health and Human Services (HHS), with certain exceptions (e.g., the Food and Drug Administration is funded via the...

Reaching the Debt Limit: Background and Potential Effects on Government Operations

The gross federal debt, which represents the federal government’s total outstanding debt, consists of (1) debt held by the public and (2) debt held in government accounts, also known as intragovernmental debt. Federal government borrowing increases for two primary reasons: (1) budget deficits and (2) investments of any federal government account surpluses in Treasury securities, as required by law. Nearly all of this debt is subject to the statutory limit.

Treasury has yet to face a situation in which it was unable to pay its obligations as a result of reaching the debt limit. In the...

Designating Systemically Important Financial Institutions (SIFIs)

This report briefly discusses congressional concerns regarding the Financial Stability Oversight Council's (FSOC) authorization to designate certain non-bank entities as Systemically Important Financial Institutions (SIFI).

The Trans-Pacific Partnership (TPP) Negotiations and Issues for Congress

The Trans-Pacific Partnership (TPP) is a proposed regional free trade agreement (FTA) being negotiated among the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. U.S. negotiators and others describe and envision the TPP as a “comprehensive and high-standard” FTA that aims to liberalize trade in nearly all goods and services and include rules-based commitments beyond those currently established in the World Trade Organization (WTO). The broad outline of an agreement was announced on the sidelines of the Asia-Pacific...

China's Mineral Industry and U.S. Access to Strategic and Critical Minerals: Issues for Congress

China is the world’s leading producer and consumer of many minerals and metals that are in high demand in the United States and on which the United States is highly import dependent. In the near future, China anticipates rapid urbanization, a rising middle class, and increased product manufacturing of high-value, high-quality goods and increased consumption. As China pursues this development path, will adequate supplies of critical and strategic raw materials and metals be available to the U.S. economy from reliable suppliers? Is there a possibility of material shortfalls? If China uses...

Mandatory Spending Since 1962

Federal spending is divided into three broad categories: discretionary spending, mandatory spending, and net interest. Mandatory spending is composed of budget outlays controlled by laws other than appropriation acts, including federal spending on entitlement programs. Entitlement programs such as Social Security and Medicare make up the bulk of mandatory spending. Other mandatory spending programs include Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), unemployment insurance, some veterans’ benefits, federal employee retirement and disability, and...

Cybersecurity and Information Sharing: Legal Challenges and Solutions

Over the course of the last year, a host of cyberattacks has been perpetrated on a number of high profile American companies. The high profile cyberattacks of 2014 and early 2015 appear to be indicative of a broader trend: the frequency and ferocity of cyberattacks are increasing, posing grave threats to the national interests of the United States. While considerable debate exists with regard to the best strategies for protecting America’s various cyber-systems and promoting cybersecurity, one point of general agreement amongst cyber-analysts is the perceived need for enhanced and timely...

Teacher Quality Issues in the Elementary and Secondary Education Act

One of the major goals of the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the No Child Left Behind Act of 2001 (NCLB, P.L. 107-110), is to raise the achievement of students who currently fail to meet grade-level proficiency standards. Because student achievement is widely believed to depend largely on the quality of instruction, the law also contains provisions designed to improve teacher quality. These provisions establish professional credentials for teachers and charge states and school districts with developing plans to improve teacher quality. According to the...

Climate Change Adaptation by Federal Agencies: An Analysis of Plans and Issues for Congress

Though Congress has debated the significance of global climate change and what federal policies, if any, should address them, the Government Accountability Office (GAO) since 2013 has identified the changing climate as one of the 30 most significant risks facing the federal government. President Obama established adaptation as a prominent part of his Climate Action Plan in June 2013. The November 2013 Executive Order 13653, Preparing the United States for the Impacts of Climate Change, directed agencies to undertake vulnerability assessments and planning for adaptation. The Administration...

Commerce, Justice, Science, and Related Agencies: FY2015 Appropriations

This report tracks and describes actions taken by the Administration and Congress to provide FY2015 appropriations for the Commerce, Justice, Science, and Related Agencies (CJS) accounts. It also provides an overview of FY2014 appropriations for agencies and bureaus funded as a part of the annual appropriation for CJS.

The annual CJS appropriations act provides funding for the Departments of Commerce and Justice, the science agencies, and several related agencies. Appropriations for the Department of Commerce include funding for agencies such as the Census Bureau; the U.S. Patent and...

Tailoring the Patent System for Specific Industries

Congressional interest in the patent system has been demonstrated by the enactment of the Leahy-Smith America Invents Act (AIA) in the 112th Congress. Most of the provisions of the AIA apply to any type of patented invention, whether it consists of a chemical compound, mechanical device, electrical circuit, or other technology. However, other AIA provisions are specific to particular types of inventions, including business methods, tax strategies, and human organisms. The AIA reflects the principle that, for the most part, patentable inventions are generally subject to the same statutory...

The Global Climate Change Initiative (GCCI): Budget Authority and Request, FY2010-FY2016

The United States supports international financial assistance for global climate change initiatives in developing countries. Under the Obama Administration, this assistance has been articulated primarily as the Global Climate Change Initiative (GCCI), a platform within the President’s 2010 Policy Directive on Global Development. The GCCI aims to integrate climate change considerations into U.S. foreign assistance through a range of bilateral, multilateral, and private sector mechanisms to promote sustainable and climate-resilient societies, foster low-carbon economic growth, and reduce...

Agriculture and Related Agencies: FY2015 Appropriations

The Agriculture appropriations bill funds the U.S. Department of Agriculture (USDA), except for the Forest Service. It includes the Food and Drug Administration (FDA) and—in the House and in even-numbered enacted fiscal years—the Commodity Futures Trading Commission (CFTC).

The FY2015 Agriculture and Related Agencies appropriation was enacted as Division A of the FY2015 Consolidated Appropriations Act, P.L. 113-235 (December 16, 2014), an omnibus appropriation that included 11 of the 12 appropriations subcommittee bills. Although the fiscal year began under a continuing resolution, the...

The Target and Other Financial Data Breaches: Frequently Asked Questions

In November and December of 2013, cybercriminals breached the data security of Target, one of the largest U.S. retail chains, stealing the personal and financial information of millions of customers. On December 19, 2013, Target confirmed that some 40 million credit and debit card account numbers had been stolen. On January 10, 2014, Target announced that personal information, including the names, addresses, phone numbers, and email addresses of up to 70 million customers, was also stolen during the data breach. A report by the Senate Committee on Commerce in March 2014 concluded that...

U.S. Travel and Tourism: Industry Trends and Policy Issues for Congress

The U.S. travel and tourism industry accounted for 2.6% of gross domestic product (GDP) in 2012 and directly employed nearly 5.4 million people in 2013. Tourism exports reached a record $215 billion in 2013, representing almost a third of total U.S. services exports. The sector has posted an annual trade surplus with the world for more than two decades. The Department of Commerce forecasts foreign visitor volume in the United States will reach nearly 90 million in 2019.

In 1996, Congress stopped funding the United States Travel and Tourism Administration (USTTA), which for 35 years...

Federal Research and Development Funding: FY2015

President Obama’s budget request for FY2015 included $135.352 billion for research and development (R&D), a $1.670 billion (1.2%) increase from the FY2014 level of $133.682 billion.

Funding for R&D is concentrated in a few departments and agencies. Under President Obama’s FY2015 budget request, seven federal agencies would have received 95.4% of total federal R&D funding, with the Department of Defense (DOD, 47.6%) and the Department of Health and Human Services (HHS, 23.0%) accounting for more than two-thirds of all federal R&D funding.

In addition to the FY2015 base budget request, the...

Who Regulates Whom and How? An Overview of U.S. Financial Regulatory Policy for Banking and Securities Markets

Financial regulatory policies are of interest to Congress because firms, consumers, and governments fund many of their activities through banks and securities markets. Furthermore, financial instability can damage the broader economy. Financial regulation is intended to protect borrowers and investors that participate in financial markets and mitigate financial instability. This report provides an overview of the regulatory policies of the agencies that oversee banking and securities markets and explains which agencies are responsible for which institutions, activities, and markets. Some...

Poverty in the United States: 2013

In 2013, 45.3 million people were counted as poor in the United States under the official poverty measure—a number statistically unchanged from the 46.5 million people estimated as poor in 2012. The poverty rate, or percent of the population considered poor under the official definition, was reported at 14.5% in 2013, a statistically significant drop from the estimated 15.0% in 2012. Poverty in the United States increased markedly over the 2007-2010 period, in tandem with the economic recession (officially marked as running from December 2007 to June 2009), and remained unchanged at a...

Government Assistance for GMAC/Ally Financial: Unwinding the Government Stake

Ally Financial, formerly known as General Motors Acceptance Corporation or GMAC, provides auto financing, insurance, online banking, and mortgage and commercial financing. For most of its history, it was a subsidiary of General Motors Corporation. Like some of the automakers, it faced serious financial difficulties due to a downturn in the market for automobiles during the 2008-2009 financial crisis and recession, while also suffering from large losses in the mortgage markets. With more than 90% of all U.S. passenger vehicles financed or leased, GMAC’s inability to lend was particularly...

North Korea: Back on the State Sponsors of Terrorism List?

From 1988 until 2008, the United States designated the government of North Korea, officially known as the Democratic People’s Republic of Korea (DPRK), as a state sponsor of terrorism. The Reagan Administration designated the DPRK after it was implicated in the 1987 bombing of a South Korean airliner, in which more than 100 people died. The George W. Bush Administration removed the designation from the DPRK in 2008, one of the measures the United States took in exchange for North Korea’s agreement to take steps to disable its nuclear program. As of early 2015, only the governments of Cuba,...

Dynamic Scoring

This report explains dynamic scoring, including the types of effects incorporated and the types of models used, as well as what groups conduct or have conducted macroeconomic analysis of tax changes.

Bee Health: Background and Issues for Congress

Bees, both commercially managed honey bees and wild bees, play an important role in global food production. In the United States alone, the value of insect pollination to U.S. agricultural production is estimated at $16 billion annually, of which about three-fourths is attributable to honey bees. Worldwide, the contribution of bees and other insects to global crop production for human food is valued at about $190 billion. Given the importance of honey bees and other bee species to food production, many have expressed concern about whether a “pollinator crisis” has been occurring in recent...

Social Security Disability Insurance (SSDI) Reform: An Overview of Proposals to Manage the Growth in the SSDI Rolls

Social Security Disability Insurance (SSDI) provides benefits to nonelderly workers with certain disabilities and their eligible dependents. As in Old-Age and Survivors Insurance (OASI)—Social Security’s retirement program—SSDI benefits are based on a worker’s past earnings. To qualify, individuals must have worked and paid Social Security taxes for a certain number of years and be unable to engage in substantial gainful activity (SGA) due to a severe mental or physical impairment that is expected to last for at least one year or result in death. In 2015, the monthly SGA earnings limit for...

Presidential Appointments to Full-Time Positions in Executive Departments During the 112th Congress

The President makes appointments to positions within the federal government, either using the authorities granted to the President alone or with the advice and consent of the Senate. There are some 349 full-time leadership positions in the 15 executive departments for which the Senate provides advice and consent. This report identifies all nominations submitted to the Senate during the 112th Congress for full-time positions in these 15 executive departments.

Information for each department is presented in tables. The tables include full-time positions confirmed by the Senate, pay levels...

U.S. Postal Service Retiree Health Benefits and Pension Funding Issues

Congress designed the U.S. Postal Service (USPS) to be a self-supporting government agency. Since 1971, the agency has not relied upon annual appropriations to cover its operating costs. Rather, USPS has funded its operations mostly through the sales of postage and postal products and services.

Since FY2007, however, the agency has run more than $40 billion in deficits and has reached its statutory borrowing limit ($15 billion). The agency does receive an annual appropriation of approximately $90 million per year, which amounts to about 0.1% of USPS’s $65 billion operating budget.

USPS’s...

Lower Oil Prices 2015

U.S.-China Military Contacts: Issues for Congress

This CRS Report, updated through the 113th Congress, discusses policy issues regarding military-to-military (mil-to-mil) contacts with the People’s Republic of China (PRC) and records major contacts and crises since 1993. The United States suspended military contacts with China and imposed sanctions on arms sales in response to the Tiananmen Crackdown in 1989. In 1993, President Clinton reengaged with the top PRC leadership, including China’s military, the People’s Liberation Army (PLA). Renewed military exchanges with the PLA have not regained the closeness reached in the 1980s, when...

China and Proliferation of Weapons of Mass Destruction and Missiles: Policy Issues

Congress has long been concerned about whether policy advances the U.S. interest in reducing the role of the People’s Republic of China (PRC) in the proliferation of weapons of mass destruction (WMD) and missiles that could deliver them. Recipients of PRC technology included Pakistan, North Korea, and Iran. This CRS Report, updated through the 113th Congress, discusses the security problem of China’s role in weapons proliferation and issues related to the U.S. policy response since the mid-1990s. China has taken some steps to mollify U.S. and other foreign concerns about its role in...

FY2015 Commerce, Justice, Science, and Related Agencies’ Appropriations: Fact Sheet

The annual Commerce, Justice, Science, and Related Agencies (CJS) appropriations act provides funding for the Departments of Commerce and Justice, the science agencies, and several related agencies. Appropriations for the Department of Commerce include funding for agencies such as the Census Bureau; the U.S. Patent and Trademark Office; the National Oceanic and Atmospheric Administration; and the National Institute of Standards and Technology. Appropriations for the Department of Justice provide funding for agencies such as the Federal Bureau of Investigation; the Bureau of Prisons; the...

The ACA Medicaid Expansion

Historically, Medicaid eligibility has generally been limited to certain low-income children, pregnant women, parents of dependent children, the elderly, and individuals with disabilities; however, as of January 1, 2014, states have the option to extend Medicaid coverage to most non-elderly, low-income individuals.

The Patient Protection and Affordable Care Act (ACA; P.L. 111-148 as amended) established 133% of the federal poverty level (FPL) (effectively 138% of FPL with an income disregard of 5% of FPL) as the new mandatory minimum Medicaid income eligibility level for most non-elderly...

An Overview of Selected Legislation in the 113th Congress Related to the Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) has been a controversial product of the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203; the Dodd-Frank Act). Some in Congress view the CFPB as an important protector of consumers and families against predatory financial actors. Others believe the CFPB is an institution not subject to sufficient accountability that imposes undue regulatory burdens on providers of financial services and limits credit available to households. This policy disagreement among Members of Congress has been on display during the controversy...

Presidential Advisers’ Testimony Before Congressional Committees: An Overview

Since the beginning of the federal government, Presidents have called upon executive branch officials to provide them with advice regarding matters of policy and administration. While Cabinet members were among the first to play such a role, the creation of the Executive Office of the President (EOP) in 1939 and the various agencies located within that structure resulted in a large increase in the number and variety of presidential advisers. All senior staff members of the White House Office and the leaders of the various EOP agencies and instrumentalities could be said to serve as...

Federal Laws Relating to Cybersecurity: Overview of Major Issues, Current Laws, and Proposed Legislation

For more than a decade, various experts have expressed increasing concerns about cybersecurity, in light of the growing frequency, impact, and sophistication of attacks on information systems in the United States and abroad. Consensus has also been building that the current legislative framework for cybersecurity might need to be revised.

The complex federal role in cybersecurity involves both securing federal systems and assisting in protecting nonfederal systems. Under current law, all federal agencies have cybersecurity responsibilities relating to their own systems, and many have...

State Marijuana Legalization Initiatives: Implications for Federal Law Enforcement

Marijuana is the most commonly used illicit drug in the United States. In 2013, an estimated 19.8 million individuals in the United States aged 12 or older (7.5% of this population) had used marijuana in the past month. While reported marijuana use is similar to that in 2012, it has generally increased since 2007 when 5.8% of individuals aged 12 or older were current users of marijuana. Mirroring this increase in use, marijuana availability in the United States has also increased. This growth has been linked to factors such as rising marijuana production in Mexico, and increasing marijuana...

“Living Wills”: The Legal Regime for Constructing Resolution Plans for Certain Financial Institutions

One of the chief objectives of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) is to promote financial stability within the United States, without the need for emergency governmental assistance to troubled firms. To achieve this goal, the DFA establishes a heightened regulatory regime for certain, generally large “covered financial institutions.” A pillar of this heightened regulatory regime is that each covered financial institution must submit “credible” plans to the Board of Governors of the Federal Reserve System (FRB) and the Federal Deposit Insurance Corporation...

U.S. Rail Transportation of Crude Oil: Background and Issues for Congress

North America is experiencing a boom in crude oil supply, primarily due to growing production in the Canadian oil sands and the recent expansion of shale oil production from the Bakken fields in North Dakota and Montana as well as the Eagle Ford and Permian Basins in Texas. Taken together, these new supplies are fundamentally changing the U.S. oil supply-demand balance. The United States now meets 66% of its crude oil demand from production in North America, displacing imports from overseas and positioning the United States to have excess oil and refined products supplies in some...

The Corporate Income Tax System: Overview and Options for Reform

Many economists and policy makers believe that the U.S. corporate tax system is in need of reform. There is, however, disagreement over why the corporate tax system needs to be reformed, and what specific policy measures should be included in a reform. To assist policy makers in designing and evaluating corporate tax proposals, this report (1) briefly reviews the current U.S. corporate tax system; (2) discusses economic factors that may be considered in the corporate tax reform debate; and (3) presents corporate tax reform policy options, including a brief discussion of current corporate...

What Is the Current State of the Economic Recovery?

This report discusses the U.S. economy's recovery from the 2007-2009 recession.

Employment Growth and Progress Toward Full Employment

This report provides figures on job growth since October 2010 to the second half of 2012.

The Budget Control Act and Trends in Discretionary Spending

Discretionary spending is provided and controlled through appropriations acts, which fund many of the activities commonly associated with such federal government functions as running executive branch agencies, congressional offices and agencies, and international operations of the government. Essentially all spending on federal wages and salaries is discretionary. Spending can be measured by budget authority (BA; what agencies can legally obligate the government to pay) or outlays (disbursements from the U.S. Treasury). This report mostly discusses trends in outlays.

Federal spending in...

Welfare, Work, and Poverty Status of Female-Headed Families with Children: 1987-2013

Eighteen years have passed since repeal of what was the nation’s major cash welfare program assisting low-income families with children, the Aid to Families with Dependent Children (AFDC) program, and its replacement with a block grant of Temporary Assistance for Needy Families (TANF). This report focuses on trends in the economic well-being of female-headed families with children, the principal group affected by the replacement of AFDC with TANF. Female-headed families and their children are especially at risk of poverty, and children in such families account for well over half of all...

Overview of the Federal Tax System

The major sources of federal tax revenue are individual income taxes, Social Security and other payroll taxes, corporate income taxes, excise taxes, and estate and gift taxes. This report describes the federal tax structure, provides some statistics on the tax system as a whole, and presents analysis of selected tax concepts.

The federal income tax is levied on an individual’s taxable income, which is adjusted gross income (AGI) less deductions and exemptions. Tax rates, based on filing status (e.g., married filing jointly or single individual) determine the level of tax liability. Tax...

The G-20 Summit: Brisbane, November 15-16, 2014

U.S. Family Wealth from 1989 to 2013: Evidence and Analysis

U.S. family wealth has been an underlying consideration in congressional deliberations on various issues, including education, taxation, social welfare, and recovery from the 2007-2009 recession. This report analyzes the change over time in the level and concentration of family wealth as measured by net worth (i.e., assets minus liabilities) to help inform those policy deliberations.

According to the Federal Reserve’s latest Survey of Consumer Finances (SCF), in 2013, mean family net worth was $534,600 and median family net worth was $81,200. The median is the value at which one-half of...

Federal Proposals to Tax Marijuana: An Economic Analysis

The combination of state policy and general public opinion favoring the legalizing of marijuana has led some in Congress to advocate for legalization and taxation of marijuana at the federal level. The Marijuana Tax Equity Act of 2013 (H.R. 501) would impose a federal excise tax of 50% on the producer and importer price of marijuana. The National Commission on Federal Marijuana Policy Act of 2013 (H.R. 1635) proposes establishing a National Commission on Federal Marijuana Policy that would review the potential revenue generated by taxing marijuana, among other things.

This report focuses...

Bonus Depreciation: Economic and Budgetary Issues

The Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act (S. 2260) would extend expiring provisions, including bonus depreciation. The Jobs for America Act (H.R. 4) would make bonus depreciation permanent. The temporary provisions enacted in the past for only a year or two and extended many times are generally referred to collectively as the “extenders.” One reason advanced for these extenders is that time is needed to evaluate them. Most provisions have been extended multiple times, and some suggest they are actually permanent but are extended a year or two at a time because...

Labor, Health and Human Services, and Education: FY2014 Appropriations

This report provides an overview of actions taken by Congress to provide FY2014 appropriations for accounts funded by the Departments of Labor, Health and Human Services, and Education, and Related Agencies (L-HHS-ED) appropriations bill. The L-HHS-ED bill provides funding for all accounts subject to the annual appropriations process at the Departments of Labor (DOL) and Education (ED). It provides annual appropriations for most agencies within the Department of Health and Human Services (HHS), with certain exceptions (e.g., the Food and Drug Administration is funded via the Agriculture...

Federal Pollution Control Laws: How Are They Enforced?

As a result of enforcement actions and settlements for noncompliance with federal pollution control requirements, the U.S. Environmental Protection Agency (EPA) reported that, during FY2013, regulated entities committed to invest an estimated $7.0 billion for judicially mandated actions and equipment to control pollution (injunctive relief), and $22.0 million for implementing mutually agreed-upon (supplemental) environmentally beneficial projects. EPA estimated that these compliance/enforcement efforts achieved commitments to reduce or eliminate 1.3 billion pounds of pollutants in the...

Supplemental Appropriations for Disaster Assistance: Summary Data and Analysis

The federal government has provided a significant amount of money through supplemental appropriations to state, local, and tribal governments to help them repair, rebuild, and recover from catastrophic incidents. For example, Congress provided roughly $120 billion for the 2005 and 2008 Gulf Coast hurricane seasons and $50 billion for Hurricane Sandy recovery. Congressional interest in disaster assistance has always been high given the associated costs.

Additional issues associated with disaster assistance have been contentious. These issues include

increasing disagreements over the...

Temporary Professional, Managerial, and Skilled Foreign Workers: Legislation in the 113th Congress

The admission of professional, managerial, and skilled foreign workers raises a complex set of policy issues as the United States competes internationally for the most talented workers in the world, without adversely effecting U.S. workers and U.S. students entering the labor market. Legislative proposals that Congress has considered include streamlining procedures that govern the admission of professional, managerial, and skilled foreign workers; increasing the number of temporary professional, managerial, and skilled foreign workers admitted each year; requiring employers of...

India-U.S. Economic Relations: In Brief

Congressional Research Service 7-5700 www.crs.gov R43741 Summary As the world’s 3rd largest economy, India is an important trade and economic partner for the United States. The upcoming September 29-30 visit by recently elected Prime Minister Narendra Modi, his first to Washington, DC, has heightened congressional interest in the current status of the relationship. Modi’s visit provides the Obama Administration with an opportunity to advance the U.S.-India strategic partnership, including by discussing ways to foster greater trade and investment between the two nations. May 2014...

The U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implementation

President Obama signed the legislation implementing the U.S.-South Korea Free Trade Agreement (KORUS FTA) on October 21, 2011 (P.L. 112-41), and the Korean National Assembly passed the agreement on November 22, 2011. The KORUS FTA entered into force on March 15, 2012.

With the KORUS FTA now in force for over two years, focus has shifted from the debate over its passage to its implementation, economic impact, and effect on future U.S. FTAs. Some U.S. companies have argued that certain aspects of the KORUS agreement are not being implemented appropriately, citing issues related to rules of...

Conservation Reserve Program (CRP): Status and Issues

The Conservation Reserve Program (CRP) provides payments to agricultural producers to take highly erodible and environmentally sensitive land out of production and install resource conserving practices for 10 or more years. CRP was first authorized in the Food Security Act of 1985 (P.L. 99-198, 1985 farm bill) and is administered by the U.S. Department of Agriculture’s (USDA’s) Farm Service Agency (FSA) with technical support from other USDA agencies. Participants offer land for enrollment through two types of sign-up: general and continuous. General sign-ups are competitive and only open...

"Dark Pools" In Equity Trading: Significance and Recent Developments

This report discusses "Dark Pools", relatively recent and controversial electronic stock trading alternatives to traditional exchanges, such as the New York Stock Exchange (NYSE), and now account for about 15% of overall trading volume. The report discusses the pros and cons of "dark trading", civil suits in reaction to Dark Pools and recent Securities and Exchange Commission actions.

Overview of the Relationship between Federal Student Aid and Increases in College Prices

College affordability is an issue that has received considerable attention from federal policy makers in recent years as concerns have arisen that a college education may be out of reach for an increasing number of students and families. While there is little disagreement that escalating college prices pose a problem, there is not a consensus about the precise causes for these increases.

Among the possible explanations for price increases, one that has surfaced with some frequency in recent years is the notion that the availability of or increases in federal student aid may help to fuel...

Small Refineries and Oil Field Processors: Opportunities and Challenges

The last refinery constructed in the United States opened in 1977. Since the mid-1980s, some 150 have closed as part of an industry-wide consolidation. Over the same time, the remaining refineries expanded their operational capacity by 23% to keep up with increasing demand. Current U.S. refining capacity appears to satisfy if not exceed demand as the increasing export of refined petroleum products would seem to suggest. Notwithstanding the current surplus capacity, opportunities for new refineries appear to have emerged as the result of the rise in production of U.S. light-sweet crude oil...

India’s New Government and Implications for U.S. Interests

The United States and India have been pursuing a “strategic partnership” since 2004, and a 5th Strategic Dialogue session was held in New Delhi in late July 2014. A May 2014 national election seated a new Indian government led by the Hindu nationalist Bharatiya Janata Party (BJP) and new Prime Minister Narendra Modi. Top U.S. officials express eagerness to engage India’s new leadership and re-energize what some see as a relationship flagging in recent years. High hopes for the engagement have become moderated as expectations held in both capitals remain unmet, in part due to a global...

Nonmarital Births: An Overview

Although nonmarital births (i.e., births to unmarried women) are not a new phenomenon, their impact on families has not diminished and there is much agreement that the complexity of modern family relationships and living arrangements may further complicate the well-being of children born to unwed mothers.

For the past six years (2008-2013), the percentage of all U.S. births that were nonmarital births remained unchanged at about 41% (1.6 million births per year), compared with 28% of all births in 1990 and about 11% of all births in 1970. Many of these children grow up in mother-only...

Shipping U.S. Crude Oil by Water: Vessel Flag Requirements and Safety Issues

New sources of crude oil from North Dakota, Texas, and western Canada have induced new routes for shipping crude oil to U.S. and Canadian refineries. While pipelines have traditionally been the preferred method of moving crude overland, they either are not available or have insufficient capacity to move all the crude from these locations. While rail has picked up some of this cargo, barges, and to a lesser extent tankers, also are moving increasing amounts of crude in domestic trade.

The rather sudden shift in transportation patterns raises concerns about the safety and efficiency of oil...

The Role of Local Food Systems in U.S. Farm Policy

Presidential Appointments to Full-Time Positions in Executive Departments During the 111th Congress, 2009-2010

This report explains the process for filling positions to which the President makes appointments with the advice and consent of the Senate (also referred to as PAS positions). It also identifies, for the 111th Congress, all nominations to full-time positions requiring Senate confirmation in the 15 executive departments. It excludes appointments to regulatory boards and commissions and independent and other agencies, which are covered in other CRS reports.

The appointment process for advice and consent positions consists of three main stages. The first stage is selection, clearance, and...

Fruits, Vegetables, and Other Specialty Crops: Selected Farm Bill and Federal Programs

U.S. farmers grow more than 350 types of fruit, vegetable, tree nut, flower, nursery, and other horticultural crops in addition to the major bulk commodity crops. Specialty crop producers are ineligible for the federal commodity price and income support programs that benefit commodity crop producers (e.g., grains and cotton); however, they are eligible for other types of U.S. Department of Agriculture (USDA) support. Unlike federal support for commodity crops, support for specialty crops spans a wide range of existing USDA programs, many of which also provide support to other agricultural...

Unaccompanied Alien Children: Potential Factors Contributing to Recent Immigration

Since FY2008, the growth in the number of unaccompanied alien children (UAC) from Mexico, El Salvador, Guatemala, and Honduras seeking to enter the United States has increased substantially. Total unaccompanied child apprehensions increased from about 8,000 in FY2008 to 52,000 in the first 8 ½ months of FY2014. Since 2012, children from El Salvador, Guatemala, and Honduras (Central America’s “northern triangle”) account for almost all of this increase. Apprehension trends for these three countries are similar and diverge sharply from those for Mexican children. Unaccompanied child...

Remote Gambling: Industry Trends and Federal Policy

Gambling, once widely outlawed, is now a regulated, taxed activity that is legal in some form—bingo, card games, slot machines, state-run lotteries, casinos, and even online—in all but two states. Like so many other industries, the gambling industry is being transformed by technology that has begun to shift patronage from casinos, bingo halls, or stores selling lottery tickets to desktop computers and tablets connected to the Internet and to mobile devices that may communicate by telephone or direct satellite links. This report discusses remote gambling and the likely implications for the...

Financial Services and General Government (FSGG): FY2014 Appropriations

The Financial Services and General Government (FSGG) appropriations bill provides funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. Among those independent agencies are the General Services Administration (GSA), the Office of Personnel Management (OPM), the Small Business Administration (SBA), the Securities and Exchange Commission (SEC), and the United States Postal Service (USPS). The Commodity Futures Trading Commission (CFTC) is funded in the House through the...

U.S. Energy: Overview and Key Statistics

Energy policy has been a recurring issue for Congress since the first major crises in the 1970s. As an aid in policymaking, this report presents a current and historical view of the supply and consumption of various forms of energy.

The historical trends show petroleum as the major source of primary energy, rising from about 38% in 1950 to 45% in 1975, and then declining to about 40% in response to the energy crises of the 1970s. Significantly, the transportation sector continues to be almost completely dependent on petroleum, mostly gasoline. Oil prices, which had been low and stable...

Budgetary Treatment of Federal Credit (Direct Loans and Loan Guarantees): Concepts, History, and Issues for Congress

The U.S. government uses federal credit (direct loans and loan guarantees) to allocate financial capital to a range of areas, including home ownership, higher education, small business, agriculture, and energy. At the end of FY2013, outstanding federal credit totaled $3.2 trillion. This report explains the budgetary treatment of federal credit, examines proposed reforms, and describes recent legislation.

Title V of the Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508), the Federal Credit Reform Act of 1990 or FCRA, changed how the unified budget reports the cost of federal credit...

Legislation to Approve the U.S.-Mexico Transboundary Hydrocarbons Agreement

This report discusses the U.S.-Mexico Transboundary Hydrocarbons Agreement and analyzes relevant legislative initiatives (S. 812 and H.R. 1613) and other legislative action surrounding Congress's approval of the Agreement (P.L. 113-67).

Climate Change: CRS Experts

Selected Legislative Proposals to Reform the Housing Finance System

The 113th Congress has seen several developments in the effort to reform the housing finance system. In the House, the Protecting American Taxpayers and Homeowners Act of 2013 (PATH Act; H.R. 2767) was ordered to be reported out of the House Financial Services Committee on July 24, 2013. The PATH Act proposes to wind down Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) over several years. In this context, wind down refers to dissolving Fannie Mae and Freddie Mac by removing their charters and placing certain assets and liabilities into a receivership entity. It...

Year-Round Schools: In Brief

In general, year-round schools are schools that reorganize a traditional school year without allowing for any extended breaks in instruction (e.g., 10-week summer vacation). Rather, the days usually included in summer break are redistributed to create regular breaks throughout the year. While year-round schools have existed to some extent since the early 1900s, there was substantial growth in the number of year-round schools from the mid-1980s to 2000. In 1985, there were 410 year-round public schools, serving about 350,000 students. By 2000, the number of year-round public schools had...

Reauthorization Issues for the Magnuson Stevens Fishery Conservation and Management Act

The 113th Congress is actively considering reauthorization of the Magnuson-Stevens Fishery Conservation and Management Act (MSFCMA). The MSFCMA governs the management and conservation of commercial and recreational fisheries in U.S. federal waters (3-200 nautical miles from shore). The MSFCMA was last reauthorized and extensively amended in 2006 (P.L. 109-479). Although the authorization of appropriations under the MSFCMA expired at the end of FY2013, the act’s requirements continue in effect and Congress has continued to appropriate funds to administer the act. Historically,...

FEMA’s Disaster Relief Fund: Overview and Selected Issues

The Robert T. Stafford Emergency Relief and Disaster Assistance Act (P.L. 93-288, as amended) authorizes the President to issue declarations for incidents ranging from destructive, large-scale disasters to more routine, less damaging events. Declarations trigger federal assistance in the forms of various response and recovery programs under the Stafford Act to state, local, and tribal governments. The Federal Emergency Management Agency’s (FEMA’s) Disaster Relief Fund (DRF) is the primary funding source for disaster response and recovery.

Funds from the DRF are used to pay for ongoing...

South Africa: Politics, Economy, and U.S. Relations

South Africa is a multi-racial, majority black southern African country of nearly 52 million. It held its first universal suffrage elections in 1994, after a transition from white minority rule under apartheid, a system of state-enforced racial segregation and socioeconomic discrimination. South Africa entered a period of mourning in late 2013, upon the death of its first post-apartheid president, Nelson Mandela. He is viewed as the founding father of the countrys nonracial democratic system, the 20th anniversary of which was recently celebrated prior to national elections on May 7. South...

Tier 3 Motor Vehicle Emission and Fuel Standards

On March 3, 2014, the Environmental Protection Agency finalized new (Tier 3) emission standards for light duty (and some larger) motor vehicles. Light duty vehicles include cars, SUVs, vans, and most pickup trucks. Phase-in of the standards will begin with Model Year 2017. By the time Tier 3 is fully implemented in Model Year 2025, the standards for light duty vehicles will require reductions of about 80% in tailpipe emissions of non-methane organic gases and nitrogen oxides (both of which contribute to the formation of ground-level ozone) and of about 70% in tailpipe emissions of...

Affordable Housing Provisions in Selected Housing Finance Reform Proposals

Congress is considering different approaches to reforming the housing finance system. One of the major policy issues to emerge concerns the role of the federal government in supporting affordable housing for low- and moderate-income households. Much of this debate centers on Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs). As GSEs, Fannie Mae and Freddie Mac are hybrid entities, private companies with congressional charters that contain special privileges and certain responsibilities to support affordable housing. Some argue that the hybrid nature of the GSEsprivate...

Analysis of S. 2198: Emergency Drought Relief Act of 2014

Over the past five years, portions of the country have been gripped with extensive drought, including the state of California. Drought conditions in California are exceptional and extreme in much of the state, including in prime agricultural areas of the Central Valley, according to the U.S. Drought Monitor. Such conditions pose significant challenges to water managers who before this dry winter were already grappling with below-normal surface water storage in the states largest reservoirs. Groundwater levels in many areas of the state also have declined due to increased pumping over the...

Federal Deposit Insurance for Banks and Credit Unions

The federal deposit insurance system in the United States protects depositors from losses that would occur in the event that a financial institution becomes insolvent, meaning that the institutions lending activities did not generate enough revenue to repay depositors their principal and interest. By guaranteeing depositor accounts up to a set limit, deposit insurance may also help prevent runs, which occur when bank customers lose confidence in the ability of a financial institution to repay its depositors and rush to withdraw deposits. A bank run, or panic, can spread and threaten the...

Department of Homeland Security: FY2014 Appropriations

This report analyzes the FY2014 appropriations for the Department of Homeland Security (DHS). The Administration requested $39.0 billion in adjusted net discretionary budget authority for DHS for FY2014, as part of an overall budget of $60.0 billion (including fees, trust funds, and other funding that is not appropriated or does not score against the budget caps). Net requested appropriations for major agencies within DHS were as follows: Customs and Border Protection (CBP), $10,833 million; Immigration and Customs Enforcement (ICE), $4,997 million; Transportation Security...

Returning to Full Employment: What Do the Indicators Tell Us?

Until recently, the economy and labor market were experiencing an unusually slow recovery from the longest and deepest recession since the Great Depression compared to other expansions since World War II. The rapid decline in the unemployment rate from 7.9% in January to 6.7% in December 2013 (where it remained in the first quarter of 2014) would seem to indicate that the labor market is returning to normal. The current unemployment rate is only 0.5 to 1.5 percentage points higher than the consensus range of full employment.

Unusually, the unemployment rate may not currently be a good...

Commerce, Justice, Science, and Related Agencies: FY2014 Appropriations

On March 26, 2013, President Obama signed into law the Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6). The act provides a total of $60.638 billion for Commerce, Justice, Science, and Related Agencies (CJS). After rescissions and sequestration, the act provided a total of $57.936 billion for CJS, of which $7.510 billion was for the Department of Commerce, $25.830 billion was for the Department of Justice, $23.769 billion was for the science agencies, and $827.9 million was for the related agencies.

On April 10, 2013, President Obama submitted his FY2014 budget to...

Oil Sands and the Keystone XL Pipeline: Background and Selected Environmental Issues

If constructed, the Keystone XL pipeline would transport crude oil derived from oil sands sites in Alberta, Canada, to U.S. refineries and other destinations. Because the pipeline would cross an international border, it requires a Presidential Permit.

Although some groups have opposed previous oil pipelines, opposition to the Keystone XL proposal has generated substantially more interest. Stakeholder concerns vary from local impacts, such as oil spills or extraction impacts in Canada, to potential climate change consequences.

Arguments supporting the pipelines construction cover an...

U.S. Implementation of the Basel Capital Regulatory Framework

The Basel III international regulatory framework, which was produced in 2010 by the Basel Committee on Banking Supervision at the Bank for International Settlements, is the latest in a series of evolving agreements among central banks and bank supervisory authorities to standardize bank capital requirements, among other measures. Capital serves as a cushion against unanticipated financial shocks (such as a sudden, unusually high occurrence of loan defaults), which can otherwise lead to insolvency. The Basel III regulatory reform package revises the definition of regulatory capital and...

Temporary Assistance for Needy Families Subsidized Employment and the President’s FY2015 Budget Proposal: In Brief

President Obama’s FY2015 budget proposal would establish within the Temporary Assistance for Needy Families (TANF) block grant a “Pathways to Jobs” fund. The fund would help states pay for subsidized employment programs targeted toward needy parents, guardians, and youth. Subsidized employment programs use government funds to pay all or part of the wages, benefits, and other costs of employing a participant. Under the President’s proposal, the subsidized job could be in either the public or the private sector. Funding for “Pathways to Jobs” would be $602 million per year beginning in...

Foreign Assistance to North Korea

Between 1995 and 2008, the United States provided North Korea with over $1.3 billion in assistance: slightly more than 50% for food aid and about 40% for energy assistance. Since early 2009, the United States has provided virtually no aid to North Korea, though episodically there have been discussions about resuming large-scale food aid. Additionally, the Obama Administration officials have said that they would be willing to consider other types of aid if North Korea takes steps indicating that it will dismantle its nuclear program, a prospect that most analysts view as increasingly...

Federal Minimum Wage, Tax-Transfer Earnings Supplements, and Poverty

Pending before Congress is legislation (S. 1737 and H.R. 1010) that would raise the federal minimum wage from its current $7.25 per hour to, ultimately, $10.10 per hour. The minimum wage would be adjusted for inflation thereafter. Whether the minimum wage or alternative policies, namely government-funded earnings supplements such as the Earned Income Tax Credit (EITC), are more effective in addressing poverty has been long debated.

The minimum wage affects workers regardless of their family status. A full-time, year-round worker at the current minimum wage would gross $15,080 in the year....

The Debate Over Selected Presidential Assistants and Advisors: Appointment, Accountability, and Congressional Oversight

A number of the appointments made by President Barack H. Obama to his Administration or by Cabinet secretaries to their departments have been referred to, especially by the news media, as “czars.” For some, the term is used to convey an appointee’s title (e.g., climate “czar”) in shorthand. For others, it is being used to convey a sense that power is being centralized in the White House or certain entities. When used in political science literature, the term generally refers to White House policy coordination or an intense focus by the appointee on an issue of great magnitude. Congress has...

Reporting Foreign Financial Assets Under Titles 26 and 31: FATCA and FBAR

All citizens of the United States as well as U.S. resident aliens are required to report their world-wide income for U.S. federal income tax purposes. However, where foreign assets are involved, this is an area in which taxpayers, knowingly or unknowingly, may fail to comply with the law. There are numerous information reporting requirements involving foreign assets that may assist the Internal Revenue Service (IRS) in recognizing a failure to report foreign income; however, both taxpayers and tax preparers may not be fully compliant with filing these forms. Again, this may be more a...

Financial Condition of Depository Banks

A bank is an institution that obtains either a federal or state charter that allows it to accept federally insured deposits and pay interest to depositors. In addition, the charter allows banks to make residential and commercial mortgage loans; provide check cashing and clearing services; underwrite securities that include U.S. Treasuries, municipal bonds, commercial paper, and Fannie Mae and Freddie Mac issuances; and other activities as defined by statute.

Congressional interest in the financial conditions of depository banks or the commercial banking industry has increased in the wake...

Selected Characteristics of Private and Public Sector Workers

An issue for Congress and state and local governments is whether the pay and benefits of public workers are comparable to those of workers in the private sector. In addition, among the ways to reduce budget deficits, policy makers are considering the pay and benefits of public sector employees.

The number of people employed in both the private and public sectors has increased steadily as the U.S. economy has grown. However, after increasing to 19.2% of total employment in 1975, the percentage of all jobs that are in the public sector fell to 15.7% in 1999. In 2013, public sector jobs...

Forestry Provisions in the 2014 Farm Bill (P.L. 113-79)

The Agricultural Act of 2014 (P.L. 113-79, the 2014 farm bill) was signed into law by President Obama on February 7, 2014, after both the House and Senate voted to approve a conference agreement. The 2014 farm bill establishes agricultural and food policy for the next several years, and also addresses several aspects of federal forestry policy.

Forestry provisions were included in the Forestry title (Title VIII) of the 2014 farm bill as well as in some of the other titles. The 2014 farm bill generally repeals, reauthorizes, and modifies existing forestry assistance programs and provisions...

Central Asia: Regional Developments and Implications for U.S. Interests

This report discusses the current status of Central Asian states and U.S. policy, which has been aimed at facilitating their cooperation with U.S. and NATO stabilization efforts in Afghanistan and their efforts to combat terrorism, proliferation, and trafficking in arms, drugs, and persons.

The Mortgage Interest and Property Tax Deductions: Analysis and Options

Concern has increased over the size and sustainability of the United States’ recent budget deficits and the country’s long-run budget outlook. This concern has brought the issues of the government’s revenue needs and fundamental tax reform to the forefront of congressional debates. Congress may choose to address these issues by reforming the set of tax benefits for homeowners. According to the Joint Committee on Taxation, federally provided tax benefits for homeowners will cost approximately $136.3 billion annually between 2014 and 2017. Reducing, modifying, or eliminating all or some of...

Climate Change Legislation in the 113th Congress

In the 113th Congress, Members have introduced multiple bills that include provisions that would directly or indirectly address climate change-related issues. In some cases, it is difficult to distinguish between direct and indirect climate change bills, because a specific bill or action may seek to achieve multiple objectives. The bills listed in this report include provisions that directly address climate change, as opposed to those that primarily address other issues (e.g., energy efficiency) but could have ancillary impacts on climate.

Observations about the climate change-related...

The Ability-to-Repay Rule: Possible Effects of the Qualified Mortgage Definition on Credit Availability and Other Selected Issues

On January 10, 2013, the Consumer Financial Protection Bureau (CFPB) released a final rule implementing the Ability-to-Repay (ATR) requirement of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The rule is effective January 10, 2014. The ATR rule will require a lender to determine based on documented and verified information that at the time a mortgage loan is made, the borrower has the ability to repay the loan. Failure to make such a determination could result in a lender having to pay damages to a borrower who brings a lawsuit claiming that the lender did...

Keystone XL: Greenhouse Gas Emissions Assessments in the Draft Environmental Impact Statement

On June 25, 2013, President Obama announced a national “Climate Action Plan” to reduce emissions of carbon dioxide (CO2) and other greenhouse gases (GHG), as well as to encourage adaptation to expected climate change. During his speech, the President made reference to the proposed Keystone XL Pipeline and stated that an evaluation of the project’s impacts on climate change would factor into the U.S. State Department’s national interest determination. The State Department, in the March 2013 Draft Environmental Impact Statement (DEIS) for the Keystone XL Pipeline, reports estimates for both...

Agriculture and Related Agencies: FY2014 and FY2013 (Post-Sequestration) Appropriations

The annual Agriculture appropriations bill provides funding for all of the U.S. Department of Agriculture (USDA) except the Forest Service, plus the Food and Drug Administration (FDA) and, in even-numbered fiscal years, the Commodity Futures Trading Commission (CFTC).

The FY2014 Agriculture and Related Agencies appropriations bill was included as Division A of the FY2014 Consolidated Appropriations Act, an omnibus appropriation that was enacted on January 17, 2014 (P.L. 113-76). It provides $20.880 billion of discretionary funding for agricultural and related programs. This is $1.165...

Restrictions on Itemized Tax Deductions: Policy Options and Analysis

The President and leading Members of Congress have indicated that income tax reform is a major policy objective. Some itemized deductions are visible candidates for “broadening the base” of the individual income tax and cutting back on tax expenditures and primarily consist of deductions for mortgage interest, state and local taxes, and charitable contributions. The benefits of itemized deductions are concentrated among higher-income individuals, and that is particularly the case for state and local income tax deductions and charitable deductions.

Proposals for addressing these provisions...

The Distribution of Household Income and the Middle Class

Although not itself a subject of legislation, the shape of the income distribution enters Congress’s decision-making process concerning such policy issues as taxes, means-tested benefits, and social insurance programs. Congress also considers legislation specifically in the name of those in the middle class, which is variously defined as some income level or income range within the distribution of U.S. households with income. After briefly analyzing the distribution of household money income in 2012, this report attempts to put the term middle class into greater perspective.

The first key...

The Taxation of Dividends: Background and Overview

The tax treatment of dividends has changed numerous times over the past century. Most recently, the American Taxpayer Relief Act (ATRA; P.L. 112-240) increased the tax rate on dividends, from 15% to 20%, for taxpayers in the top income tax bracket. The change was effective for 2013. Also effective in 2013 is the 3.8% tax on net investment income for taxpayers with modified adjusted gross income above certain thresholds ($200,000 for single, $250,000 for married filing jointly).

Further increases in the tax rate on dividends may be considered as part of a base-broadening, rate-reducing tax...

Taxation of Hedge Fund and Private Equity Managers

Private equity and hedge funds are investment pools generally available only to institutions and individuals able to make investments in excess of $200,000. Private equity funds acquire ownership stakes in other companies and seek to profit by improving operating results or through financial restructuring. Hedge funds follow many strategies, investing in any market where managers see profit opportunities. The two kinds of funds are generally structured as partnerships: the fund managers act as general partners, while the outside investors are limited partners. Fund managers are compensated...

Highway and Public Transportation Infrastructure Provision Using Public-Private Partnerships (P3s)

Growing demands on the transportation system and constraints on public resources have led to calls for more private sector involvement in the provision of highway and transit infrastructure through what are known as “public-private partnerships” or “P3s.” A P3, broadly defined, is any arrangement whereby the private sector assumes more responsibility than is traditional for infrastructure planning, financing, design, construction, operation, and maintenance. Some P3s involve the leasing by the public sector to the private sector of existing infrastructure, while others provide for a...

The Tax Reform Act of 2014

Efforts to Delay the Gradual Elimination of Flood Insurance Premium Subsidies

On July 6, 2012, President Barack Obama signed into law the Biggert-Waters Flood Insurance Reform Act of 2012 (Division F, Title II, P.L. 112-141; 126 Stat. 918) to reauthorize the National Flood Insurance Program (NFIP) through September 30, 2017, and make significant program changes designed to make the program more financially stable. To achieve long-term financial sustainability and ensure that flood insurance rates more accurately reflect the actuarial risk of flooding, the new law gradually phases out subsidized premiums and grandfathered policies for approximately 19% (or about 1.1...

Federal Trust Funds and the Budget

The federal budget consists of four basic fund groups—the general fund, special funds, revolving funds, and trust funds. The first three are often referred to as the federal funds group. Trust funds are an accounting mechanism that records revenues, offsetting receipts, or collections earmarked for the purpose of the specific fund. Trust funds generally share three common features: (1) they are established for programs serving long-term purposes, (2) monies are used for a single purpose, and (3) users are charged to finance the trust fund. About 40% of all federal outlays were through...

Free Trade Agreements: Impact on U.S. Trade and Implications for U.S. Trade Policy

Free trade areas (FTAs) are arrangements among two or more countries under which they agree to eliminate tariffs and nontariff barriers on trade in goods among themselves. However, each country maintains its own policies, including tariffs, on trade outside the region.

In the last few years, the United States has engaged or has proposed to engage in negotiations to establish bilateral and regional free trade arrangements with a number of trading partners. Such arrangements are not new in U.S. trade policy. The United States has had a free trade arrangement with Israel since 1985 and with...

Federal Research and Development Funding: FY2014

Congress completed action on the FY2014 regular appropriations bills with enactment of the Consolidated Appropriations Act, 2014 (P.L. 113-76), in January 2014. The act contains the 12 regular appropriations bills that fund federal departments and agencies and provide funding for most research and development (R&D) supported by the federal government. Prior to enactment of P.L. 113-76, FY2014 funding was provided by two continuing resolutions (P.L. 113-46 and P.L. 113-73). Where possible, CRS has identified and included in this report R&D funding in P.L. 113-76 for agencies and programs....

Motorized Recreation on National Park Service Lands

In managing its lands, the National Park Service (NPS) seeks to balance a dual statutory mission of preserving natural resources while providing for their enjoyment by the public. Motorized recreation on NPS lands sometimes brings the two parts of this mission into conflict. Off-highway vehicles (OHVs) have been particularly controversial, with calls for greater recreational access intersecting with concerns about environmental impacts and disturbance of quieter pursuits. NPS’s laws, regulations, and policies generally emphasize the conservation of park resources in conservation/use...

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Congress periodically establishes agricultural and food policy in a multi-year, omnibus farm bill. The 2008 farm bill governed policy for farm commodity support, horticulture, livestock, conservation, nutrition assistance, trade and international food aid, agricultural research, farm credit, rural development, bioenergy, and forestry. It originally expired in 2012, but the 112th Congress did not complete action and instead extended the law for one year (P.L. 112-240), leaving consideration of a new farm bill to the 113th Congress.

After nearly three years of deliberations, Congress...

Career and Technical Education (CTE): A Primer

Career and Technical Education (CTE), often referred to as vocational education, provides occupational and non-occupational preparation at the secondary, postsecondary, and adult education levels. CTE is an element of the nation’s workforce development system. As such, CTE plays a role in reducing unemployment and the associated economic and social ills. This report provides a primer on CTE to support congressional discussion of initiatives designed to rationalize the workforce development system.

CTE prepares students for roles outside the paid labor market, teaches general employment...

The FutureGen Carbon Capture and Sequestration Project: A Brief History and Issues for Congress

More than a decade after the George W. Bush Administration announced its signature clean coal power initiative—FutureGen—the program is still in early development. Since its inception in 2003, FutureGen has undergone changes in scope and design. As initially conceived, FutureGen would have been the world’s first coal-fired power plant to integrate carbon capture and sequestration (CCS) with integrated gasification combined cycle (IGCC) technologies. FutureGen would have captured and stored carbon dioxide (CO2) emissions from coal combustion in deep underground saline formations and...

Federal Reserve: Unconventional Monetary Policy Options

The Great Recession and the ensuing weak recovery have led the Federal Reserve (Fed) to expand its monetary policy tools. Since December 2008, overnight interest rates have been near zero; at this zero bound, they cannot be lowered further to stimulate the economy. As a result, the Fed has taken unprecedented policy steps to try to fulfill its statutory mandate of maximum employment and price stability. Congress has oversight responsibilities for ensuring that the Feds actions are consistent with its mandate.

The Fed has made large-scale asset purchases, popularly referred to as...

Data Security and Credit Card Thefts: CRS Experts

Thefts of credit-card and other customer information from major retailers in the fall of 2013 have renewed concerns about the security of credit cards and the information systems that hold, process, and transmit data from them, as well as other financial and personal information of consumers. The impacts and growing sophistication of such data breaches, along with the broader growth of cybercrime, has added urgency to long-standing concerns about the security of electronic data. The table below provides names and contact information for CRS experts on data security, cybercrime, privacy,...

An Analysis of STEM Education Funding at the NSF: Trends and Policy Discussion

Federal policy makers have a long-standing interest in science, technology, engineering, and mathematics (STEM) education that dates to at least the 1st Congress. This interest is largely driven by concerns about the national science and engineering workforce, which is widely believed to play a central role in U.S. global economic competitiveness and national security.

The National Science Foundation (NSF) is a key component of the federal STEM education effort. Several inventories of the federal STEM education portfolio have highlighted NSF’s important role—both in terms of funding and in...

Social Security Disability Insurance (SSDI): The Five-Month Waiting Period for Benefits

Social Security Disability Insurance (SSDI) is authorized by Title II of the Social Security Act and provides income replacement for eligible individuals who are unable to work due to a long-term injury or illness that is expected to last at least one year or result in death. Current eligibility requirements include (1) verification of an applicant’s disability, (2) filing a claim, (3) a “recent work” and “duration of work” test, (4) verification that an individual has not reached normal retirement age, and (5) a five-month waiting period from disability-onset.

In implementing the...

Executive Order 13438: Blocking Property of Certain Persons Who Threaten Stabilization Efforts in Iraq

On July 17, 2007, President Bush issued Executive Order 13438, Blocking Property of Certain Persons Who Threaten Stabilization Efforts in Iraq. It is the latest in a series of executive orders based on the national emergency declared by President Bush with respect to “the unusual and extraordinary threat to the national security and foreign policy of the United States posed by obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in that country, and the development of political, administrative and economic institutions in Iraq.” Regulations...

International Trade and Finance: Key Policy Issues for the 113th Congress, Second Session

The U.S. Constitution grants authority over the regulation of foreign commerce to Congress, which it exercises through oversight of trade policy, including the consideration of legislation to approve trade agreements and authorize trade programs. Policy issues cover such areas as: U.S. trade negotiations; tariff and nontariff barriers; worker dislocation from trade liberalization, trade remedy laws; import and export policies; international investment, economic sanctions; and trade policy functions of the federal government. Congress also has an important role in international finance. It...

Multifamily and Commercial Mortgages: An Overview of Issues

As the recovery from the recession of December 2007-June 2009 continues, congressional interest in multifamily and commercial mortgages has shifted from worries about the immediate impact of foreclosures to consideration of the future of mortgage finance. During the recession, losses on mortgages raised concerns about the risk to tax payers through Federal Deposit Insurance Corporation (FDIC) insurance, which is backed by the full faith and credit of the federal government. Significant parts of these losses occurred due to commercial loans at smaller insured depositories. The federal...

Elementary and Secondary School Teachers: Policy Context, Federal Programs, and ESEA Reauthorization Issues

The Elementary and Secondary Education Act of 1965 (ESEA) is the primary legislative vehicle for federal policymaking regarding teachers and instructional quality in the nation’s elementary and secondary schools. Authorization for ESEA programs and policies, enacted through the No Child Left Behind Act of 2001 (NCLB), expired at the end of FY2008 and the 113th Congress is likely to consider whether to amend and extend the ESEA. Notable ESEA provisions concerning K-12 teaching include requirements for minimum teacher qualifications and authority for a teacher training and class size...

Identity Theft: Trends and Issues

In the current fiscal environment, policymakers are increasingly concerned with securing the economic health of the United States—including combating those crimes that threaten to undermine the nation’s financial stability. Identity theft is one such crime. In 2012, about 12.6 million Americans were reportedly victims of identity fraud, and the average identity fraud victim incurred a mean of $365 in costs as a result of the fraud. Identity theft is often committed to facilitate other crimes such as credit card fraud, document fraud, or employment fraud, which in turn can affect not only...

Recent Trends in Consumer Retail Payment Services Delivered by Depository Institutions

Congressional interest in the performance of the credit and debit card (checking account services) markets and how recent developments are affecting customers is growing. This report discusses these developments and examines the costs and availability of consumer retail payments services, particularly those provided by depository institutions, since the recent recession and subsequent legislative actions.

Consumer retail payment services include products such as credit cards, cash advances, checking accounts, debit cards, and prepayment cards. Some depository institutions have increased...

The Role of Trade Secrets in Innovation Policy

Many businesses have developed proprietary information that provides a competitive advantage because it is not known to others. As the United States continues its shift to a knowledge- and service-based economy, the strength and competitiveness of domestic firms increasingly depends upon their know-how and intangible assets. Trade secrets are the form of intellectual property that protects this sort of confidential information.

Trade secret law protects secret, valuable business information from misappropriation by others. Subject matter ranging from marketing data to manufacturing...

Follow-On Biologics: The Law and Intellectual Property Issues

The term “biologics” refers to a category of medical preparations derived from a living organism. These medicines have added notable therapeutic options for many diseases and impacted fields such as oncology and rheumatology. The biologics industry invests extensively in R&D and contributes to a rapidly expanding market for these treatments. Biologics are often costly, however, in part due to the sophistication of the technologies and the manufacturing techniques needed to make them.

Some commentators have also observed that, in contrast to the generic drugs available in traditional...

The Leahy-Smith America Invents Act: Innovation Issues

Following several years of legislative discussion concerning patent reform, the Congress enacted P.L. 112-29, signed into law on September 16, 2011. The Leahy-Smith America Invents Act, or “AIA,” made significant changes to the patent system, including:

First-Inventor-to-File Priority System. The AIA shifted the U.S. patent priority rule from a “first-to-invent” system to the “first-inventor-to-file principle” while allowing for a one-year grace period.

Prior User Rights. The legislation established an infringement defense based upon an accused infringer’s prior commercial use of an...

Gene Patents: A Brief Overview of Intellectual Property Issues

In the past, the U.S. courts upheld gene patents that met the criteria of patentability defined by the Patent Act. However, the practice of awarding patents on genes came under scrutiny by some scientists, legal scholars, politicians, and other experts. In June 2013, the Supreme Court ruled in Association for Molecular Pathology v. Myriad Genetics, Inc. that genomic DNA was ineligible for patenting under 35 U.S.C. §101 due to the “product of nature” doctrine. However, the Court adopted the view that cDNA could be patented. The Myriad holding attempts to provide inventors and firms with...

The Consumer Financial Protection Bureau (CFPB): A Legal Analysis

In the wake of the worst U.S. financial crisis since the Great Depression, Congress passed and the President signed into law sweeping reforms of the financial services regulatory system through the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), P.L. 111-203. Title X of the Dodd-Frank Act is entitled the Consumer Financial Protection Act of 2010 (CFP Act). The CFP Act establishes the Bureau of Consumer Financial Protection (CFPB or Bureau) within the Federal Reserve System (FRS) with rulemaking, enforcement, and supervisory powers over many consumer financial...

Community Oriented Policing Services (COPS): Current Legislative Issues

The Community Oriented Policing Services (COPS) program was created by Title I of the Violent Crime Control and Law Enforcement Act of 1994 (P.L. 103-322). The mission of the COPS program is to advance community policing in all jurisdictions across the United States. The Violence Against Women and Department of Justice Reauthorization Act of 2005 (P.L. 109-162) reauthorized the COPS program through FY2009 and changed the COPS program from a multi-grant program to a single-grant program.

The COPS program awards grants to state, local, and tribal law enforcement agencies throughout the...

Science, Technology, Engineering, and Mathematics (STEM) Education: A Primer

The term “STEM education” refers to teaching and learning in the fields of science, technology, engineering, and mathematics. It typically includes educational activities across all grade levels—from pre-school to post-doctorate—in both formal (e.g., classrooms) and informal (e.g., afterschool programs) settings. Federal policy makers have an active and enduring interest in STEM education, and the topic is frequently raised in federal science, education, workforce, national security, and immigration policy debates. For example, more than 225 bills containing the term “science education”...

International Corporate Tax Rate Comparisons and Policy Implications

Advocates of cutting corporate tax rates frequently make their argument based on the higher statutory rate in the United States as compared with the rest of the world; they argue that cutting corporate taxes would induce large investment flows into the United States, which would create jobs or expand the taxable income base enough to raise revenue. President Barack Obama has supported a rate cut if the revenue loss can be offset with corporate base broadening. Others have urged on one hand, a revenue raising reform, and, on the other, setting deficit concerns aside.

Is the U.S. tax rate...

Right to Work Laws: Legislative Background and Empirical Research

The National Labor Relations Act (NLRA) establishes most private-sector workers’ rights to unionize and collectively bargain over wages, benefits, and working conditions. Enacted in 1935, the NLRA also permits collective bargaining contracts between employers and labor organizations that require every individual covered by the collective bargaining contract to pay dues to the negotiating labor organization. These contract provisions are known as union security agreements. Since the NLRA was amended by the Taft-Hartley Act in 1947, individual states have been permitted to supersede the...

The Organization for Economic Cooperation and Development

The Organization for Economic Cooperation and Development (OECD) celebrated its 50th anniversary in 2011, a time when the global economy was struggling to recover from the financial crisis and slow economic growth. The OECD is an intergovernmental economic organization in which the 34 member countries discuss and develop key policy recommendations that often serve as the basis for international standards and practices. In addition, the OECD members analyze economic and social policy and share expertise and exchanges with more than 70 developing and emerging economies. The 34 member...

War in Afghanistan: Campaign Progress, Political Strategy, and Issues for Congress

This is a critical time for U.S. efforts in the war in Afghanistan. U.S. military engagement beyond December 2014, when the current NATO mission ends, depends on the achievement of a U.S.-Afghan Bilateral Security Agreement (BSA), specifying the status of U.S. forces. Afghan President Hamid Karzai threw the BSA process into confusion by introducing new terms and conditions after a deal had been reached by negotiators. Even if a BSA is reached, U.S. decisions are still pending regarding the scope, scale, and timeline for any post-2014 U.S. force presence in Afghanistan. President Obama has...

Unemployment: Issues in the 113th Congress

The longest and deepest recession since the Great Depression ended as expansion began in June 2009. Although output started growing in the third quarter of 2009, the labor market was weak in 2010, with the unemployment rate averaging 9.6% for the year. Despite showing improvement in 2011, the unemployment rate averaged a still high 8.9% for the year. The labor market continued to improve slowly, reaching 8% for the first time since January 2009. The rate fell slowly in 2013, reaching 7% by November, but still above the pre-recession rate of 5%.

Several policy steps were taken after the...

Shadow Banking: Background and Policy Issues

Shadow banking refers to financial firms and activities that perform similar functions to those of depository banks. Although the term is used to describe dissimilar firms and activities, a general policy concern is that a component of shadow banking could be a source of financial instability, even though that component might not be subject to regulations designed to prevent a crisis, or be eligible for emergency facilities designed to mitigate financial turmoil once it has begun. This concern is magnified by the experience of 2007-2009, during which financial problems among nonbank...

Science and Technology Issues in the 113th Congress

Science and technology (S&T) have a pervasive influence over a wide range of issues confronting the nation. Public and private research and development spurs scientific and technological advancement. Such advances can drive economic growth, help address national priorities, and improve health and quality of life. The constantly changing nature and ubiquity of science and technology frequently create public policy issues of congressional interest.

The federal government supports scientific and technological advancement by directly funding research and development and indirectly by creating...

The Development of High Speed Rail in the United States: Issues and Recent Events

The provision of $8 billion for intercity passenger rail projects in the 2009 American Recovery and Reinvestment Act (ARRA; P.L. 111-5) reinvigorated efforts to expand intercity passenger rail transportation in the United States. The Obama Administration subsequently announced that it would ask Congress to provide $1 billion annually for high speed rail (HSR) projects. This initiative was reflected in the President’s budgets for FY2010 through FY2014. Congress approved $2.5 billion for high speed and intercity passenger rail in FY2010 (P.L. 111-117), but has provided no funding for the...

Increasing the Efficiency of Existing Coal-Fired Power Plants

Coal has long been the major fossil fuel used to produce electricity. However, coal-fired electric power plants are one of the largest sources of air pollution in the United States, with greenhouse gas (GHG) emissions from burning of fossil fuels believed to be the major contributor to global climate change. Regulations under development at the Environmental Protection Agency (EPA) would impose new requirements on fossil-fueled (mostly coal-fired) power plants (CFPPs) to control GHG emissions. The first of these requirements was issued in September 2013 with proposed standards for the...

Rare Earth Elements: The Global Supply Chain

The concentration of production of rare earth elements (REEs) outside the United States raises the important issue of supply vulnerability. REEs are used for new energy technologies and national security applications. Two key questions of interest to Congress are: (1) Is the United States vulnerable to supply disruptions of REEs? (2) Are these elements essential to U.S. national security and economic well-being?

There are 17 rare earth elements (REEs), 15 within the chemical group called lanthanides, plus yttrium and scandium. The lanthanides consist of the following: lanthanum, cerium,...

The National Labor Relations Act (NLRA): Union Representation Procedures and Dispute Resolution

The National Labor Relations Act of 1935 (NLRA) gives private sector workers the right to join or form a labor union and to bargain collectively over wages, hours, and other working conditions. An issue before Congress is whether to change the procedures under which a union is certified as the bargaining representative of a union chosen by a majority of workers.

Under current law, the National Labor Relations Board (NLRB) conducts a secret ballot election when a petition is filed requesting one. A petition can be filed by a union, worker, or employer. Workers or a union may request an...

Federal Research and Development Funding: FY2013

President Obama’s budget request for FY2013 included $140.820 billion for research and development (R&D), a $1.951 billion (1.4%) increase from the FY2012 estimated funding level of $138.869 billion. The FY2013 Consolidated and Further Continuing Appropriations Act (P.L. 113-6), signed into law on March 26, 2013, provided year-long appropriations to all agencies for FY2013. The law included divisions incorporating five of the regular appropriations bills—Agriculture, Rural Development, Food and Drug Administration, and Related Agencies; Commerce, Justice, Science, and Related Agencies;...

Legislation to Repeal the Private Equity Fund Adviser Registration Requirement in the Dodd-Frank Act: In Brief

The summary will be suppressed. Key searchable terms are:

H.R. 1105 Capital Formation Investor Protection Private Funds Investment Funds Private investment fund Investment company Private adviser exemption

Keystone XL Pipeline Project: Key Issues

This report describes the Keystone XL pipeline proposal and the process required for federal approval. It summarizes key arguments for and against the pipeline put forth by the pipeline's developers, federal agencies, environmental groups, and other stakeholders. The report discusses potential consistency challenges faced by the State Department in reviewing the pipeline application given its recent prior approvals of similar pipeline projects. Finally, the report reviews the constitutional basis for the State Department's authority to issue a Presidential Permit, and opponents' possible...

European Union Enlargement: A Status Report on Turkey’s Accession Negotiations

October 2013 marked the eighth anniversary of the European Union’s decision to launch formal negotiations with Turkey toward full membership in the Union. Throughout all of 2012 and the first half of 2013, little or no progress was made on any open chapters of the EU’s rules and regulations known as the acquis communautaire, as formal accession talks between Turkey and the EU seemed to have reached a political and technical stalemate.

In February 2013, France, which has been part of a group in the EU that has expressed doubts about Turkey’s EU membership, signaled that it was prepared to...

Geoengineering: Governance and Technology Policy

Climate change policies at both the national and international levels have traditionally focused on measures to mitigate greenhouse gas (GHG) emissions and to adapt to the actual or anticipated impacts of changes in the climate. As a participant in several international agreements on climate change, the United States has joined with other nations to express concern about climate change. Some recent technological advances and hypotheses, generally referred to as “geoengineering” technologies, have created alternatives to traditional approaches to mitigating climate change. If deployed,...

Renewable Fuel Standard (RFS): Overview and Issues

Federal policy has played a key role in the emergence of the U.S. biofuels industry. Policy measures have included minimum renewable fuel usage requirements, blending and production tax credits, an import tariff, loans and loan guarantees, and research grants. One of the more prominent forms of federal policy support is the Renewable Fuel Standard (RFS)—whereby a minimum volume of biofuels is to be used in the national transportation fuel supply each year. This report describes the general nature of the RFS mandate and its implementation, and outlines some emerging issues related to the...

International Food Aid: U.S. and Other Donor Contributions

Postsecondary Education Issues in the 113th Congress

The 113th Congress may face an array of policy issues affecting postsecondary education. Many of these postsecondary education issues may be considered as part of efforts to reauthorize the Higher Education Act of 1965, as amended (HEA). However, postsecondary education issues also may emerge as part of other legislative efforts such as comprehensive immigration reform (CIR), reform of the federal tax code, or the annual appropriations process.

This report identifies and briefly examines several postsecondary education policy issue areas that may be of general interest. For each of these...

The “Pay Ratio Provision” in the Dodd-Frank Act: Legislation to Repeal It in the 113th Congress

Section 953(b) of the Dodd-Frank Consumer Protection and Wall Street Reform Act (Dodd-Frank Act; P.L. 111-203), known as the “pay ratio provision,” requires the Securities and Exchange Commission (SEC) to write rules to implement a requirement that public companies disclose the ratio between the total compensation of a company’s chief executive officer (CEO) and the median compensation of all other employees. On September 18, 2013, the agency released proposals to implement the pay ratio provision. A firm will be able to choose its own methodology to calculate worker median pay, including...

Sovereign Debt in Advanced Economies: Overview and Issues for Congress

Sovereign debt, also called public debt or government debt, refers to debt incurred by governments. Since the global financial crisis of 2008-2009, public debt in advanced economies has increased substantially. A number of factors related to the financial crisis have fueled the increase, including fiscal stimulus packages, the nationalization of private-sector debt, and lower tax revenue. Even if economic growth reverses some of these trends, such as by boosting tax receipts and reducing spending on government programs, aging populations in advanced economies are expected to strain...

Federal Financial Reporting: An Overview

Federal financial reporting—defined here as the process of recording retrospective executive department-level financial and performance information—can provide both a snapshot of the government’s financial health at a given moment in time, as well as an accounting of its financial performance over a particular time frame. Federal financial reports may help the federal government demonstrate accountability, provide information for policy formulation and planning, and be used to evaluate governmental performance. Multiple reports are required by law, and all are intended to permit...

Dairy Policy Proposals in the Next Farm Bill

The 113th Congress has been considering an omnibus farm bill that would establish the direction of U.S. agricultural policy for the next five years. Among the many provisions being considered, both the Senate-passed (S. 954) and House-passed (H.R. 2642) versions of the 2013 farm bill would reshape the structure of U.S. dairy support.

Current U.S. federal dairy policy is based on five major programs—the Dairy Product Price Support Program (DPPSP), the Milk Income Loss Contract (MILC) Program, Federal Milk Marketing Orders (FMMOs), Dairy Import Tariff Rate Quotas (TRQs), and the Dairy...

Updating the Statutory Framework for Communications for the Digital Age: Issues for Congress

The statutory framework for the communications sector largely was enacted prior to the commercial development and deployment of digital technology, Internet Protocol (IP), broadband networks, and online voice, data, and video services. These new technologies have driven changes in market structure throughout the communications sector. Technological spillovers have allowed for the convergence of previously service-specific networks, creating new competitive entry opportunities. But they also have created certain incentives for market consolidation. Firms also have used new technologies to...

Issues in Homeland Security Policy for the 113th Congress

With the 10th anniversary of the establishment of the Department of Homeland Security (DHS), many observers have made a fresh assessment of where America’s homeland security enterprise stands today. DHS is currently the third-largest department in the federal government, although it does not incorporate all of the homeland security functions at the federal level. The definition of homeland security remains unsettled, and questions about the effectiveness and efficiency of the department have been raised since it was first proposed. Evolution of America’s response to terrorist threats has...

U.S. Sanctions on Burma: Issues for the 113th Congress

In March 2011, Burma’s ruling military junta, the State Peace and Development Council (SPDC) formally dissolved itself and transferred power to a semi-military/semi-civilian government known as the Union Government, headed by President Thein Sein, ex-general and former prime minister for the SPDC. President Thein Sein, with the support of Burma’s Union Parliament, has implemented a number of political and economic reforms, to which the Obama Administration has responded by waiving or easing sanctions.

Although the presidential waivers effectively lift the sanctions, they do not revoke or...

GSEs and the Government’s Role in Housing Finance: Issues for the 113th Congress

The federal government’s role in the mortgage market dates to the Depression and is considered by many to be substantial: Fannie Mae, Freddie Mac, and Ginnie Mae (officially the Government National Mortgage Association, which is part of the Department of Housing and Urban Development) together guarantee virtually all new mortgage-backed securities (MBS). With slightly less than $10 trillion in mortgages outstanding, the residential mortgage market is of central importance both to households and to lenders.

As government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac have special...

Rebuilding Household Wealth: Implications for Economic Recovery

The pace of economic recovery from the 2007-2009 recession has been historically slow. Over four years of recovery, the annual rate of growth of real gross domestic product (GDP) has averaged 2%, well below the 3% to 5% typical of other post-WWII recoveries. As a result, the output gap—the difference between what the economy could produce and what it actually produced—has only declined from a high of 8.1% in mid-2009 to a still large 5.8% in mid- 2013. Slow growth of output has translated into a slow reduction of unemployment.

The recovery has persisted, in part, due to support to...

Federal Mandatory Minimum Sentencing Statutes

Federal mandatory minimum sentencing statutes limit the discretion of a sentencing court to impose a sentence that does not include a term of imprisonment or the death penalty. They have a long history and come in several varieties: the not-less-than, the flat sentence, and piggyback versions. Federal courts may refrain from imposing an otherwise required statutory mandatory minimum sentence when requested by the prosecution on the basis of substantial assistance toward the prosecution of others. First-time, low-level, non-violent offenders may be able to avoid the mandatory minimums under...

Teacher Evaluation: Policy Issues in Brief

Teacher evaluation has historically been largely the responsibility of local school administrators working within broad rules set by state law and collective bargaining agreements. These rules generally identify the procedures and circumstances under which a teacher may be dismissed for poor performance and have little to do with conducting teacher evaluation. Until recently, only a handful of states had implemented statewide teacher evaluation policies and federal policy had been silent on the issue of evaluating teacher effectiveness.

In 2006, Congress authorized the Teacher Incentive...

Sri Lanka: Background and U.S. Relations

The Democratic Socialist Republic of Sri Lanka, an island nation in the Indian Ocean, is a constitutional democracy with a relatively high level of development. For two and a half decades, political, social, and economic development was seriously constrained by years of ethnic conflict and war between the government and the Liberation Tigers of Tamil Eelam (LTTE), also known as the Tamil Tigers. After a violent end to the civil war in May 2009, in which authorities crushed LTTE forces and precipitated a humanitarian emergency in Sri Lanka’s Tamil-dominated north, attention has turned to...

Proposed U.S.-Mexico Transboundary Hydrocarbons Agreement: Background and Issues for Congress

This report discusses the offshore areas of the Gulf of Mexico that provide a setting for domestic and international energy production, U.S. military training and border operations, trade and commerce, fishing, tourist attractions, and recreation.

Federal Excise Taxes: An Introduction and General Analysis

There are four common types of excise taxes: (1) sumptuary (or “sin”) taxes, (2) regulatory or environmental taxes, (3) benefit-based taxes (or user charges), and (4) luxury taxes. Sumptuary taxes were traditionally imposed for moral reasons, but are currently rationalized, in part, to discourage a specific activity that is thought to have negative spillover effects (or “externalities”) on society. Regulatory or environmental taxes are imposed to offset external costs associated with regulating public safety or to discourage consumption of a specific commodity that is thought to have...

China’s Holdings of U.S. Securities: Implications for the U.S. Economy

Given its relatively low savings rate, the U.S. economy depends heavily on foreign capital inflows from countries with high savings rates (such as China) to meet its domestic investment needs and to fund the federal budget deficit. The willingness of foreigners to invest in the U.S. economy and purchase U.S. public debt has helped keep U.S. real interest rates low. However, many economists contend that U.S. dependency on foreign savings exposes the U.S. economy to certain risks, and some argue that such low-cost capital inflows were a contributing factor to the U.S. housing bubble and...

U.S.-Chinese Motor Vehicle Trade: Overview and Issues

The U.S. auto industry employs nearly 800,000 workers and is a major employer in certain parts of the country. International competition is fierce, with many automakers and thousands of parts makers vying for market share. Because of the industry’s importance to the U.S. economy, the rapid rise of China’s auto assembly and auto parts industries in recent years has raised concerns among some Members of Congress.

In 2009, China overtook the United States to become both the world’s largest producer of and market for motor vehicles. In 2012, assemblers in China sold 19 million vehicles, and...

Financing Natural Catastrophe Exposure: Issues and Options for Improving Risk Transfer Markets

This report opens with an examination of the current role of private insurers in managing disaster risk and their capacity and willingness to deal with the rising cost of financing recovery and reconstruction following natural disasters. The report then examines the current role of federal, state, and local governments in managing disaster risk.

Fannie Mae’s and Freddie Mac’s Financial Status: Frequently Asked Questions

Fannie Mae and Freddie Mac are chartered by Congress as government-sponsored enterprises (GSEs) to provide liquidity in the mortgage market and to promote homeownership for underserved groups and locations. They purchase mortgages, guarantee them, and package them in mortgage-backed securities (MBSs), which they either keep as investments or sell to institutional investors. In addition to the GSEs’ guarantees, investors widely believe that MBSs are implicitly guaranteed by the federal government. In 2008, the GSEs’ financial condition had weakened and there were concerns over their ability...

Changing the Federal Reserve’s Mandate: An Economic Analysis

The Federal Reserve’s (Fed’s) current statutory mandate calls for it to “promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” Some economists have argued that this mandate should be replaced with a single mandate of price stability. Often the proposal for a single mandate is paired with a more specific proposal that the Fed should adopt an inflation target. Under an inflation target, the goal of monetary policy would be to achieve an explicit, numerical target or range for some measure of price inflation. Inflation targets could be...

European Union Wind and Solar Electricity Policies: Overview and Considerations

European Union (EU) countries have provided support for the development and deployment of renewable energy technologies, dating back to as early as the 1980s. Today, the European Union has established binding renewable energy targets with the goal of having the entire EU derive 20% of total energy consumption (electricity, heating/cooling, and transportation) from renewable sources by 2020. EU member countries have discretion to decide how best to achieve EU-level targets. Each country uses a unique set of policies and financial incentives to stimulate renewable energy production. While EU...

Trade Adjustment Assistance (TAA) and Its Role in U.S. Trade Policy

Congress created Trade Adjustment Assistance (TAA) in the Trade Expansion Act of 1962 to help workers and firms adjust to dislocation that may be caused by increased trade liberalization. It is justified now, as it was then, on grounds that the government has an obligation to help the “losers” of policy-driven trade opening. TAA is also presented as an alternative to policies that would restrict imports, and so provides assistance while bolstering freer trade and diminishing prospects for potentially costly tension (retaliation) among trade partners. As in the past, critics strongly debate...

The Conforming Loan Limit

Congress is concerned with the pace of the recovery in the housing and mortgage markets. A series of laws starting with the Economic Stimulus Act of 2008 (ESA; P.L. 110-185) were designed to increase the availability and affordability of mortgages in “high-cost” areas. This concern about housing and mortgage markets is balanced by attention being paid to possible taxpayer financial risks and the desire to minimize government intervention in economic markets.

Two congressionally chartered government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, provide liquidity to the mortgage...

The U.S. Congress and the European Parliament: Evolving Transatlantic Legislative Cooperation

The United States and the European Union (EU) share an extensive, dynamic, and mutually beneficial political and economic partnership. A growing element of that relationship is the role that the U.S. Congress and the European Parliament (EP)—a key EU institution—have begun to play, including in areas ranging from foreign and economic policy to regulatory reform. Proponents of establishing closer relations between the U.S. Congress and the EP point to the Parliament’s growing influence as a result of the EU’s 2009 Lisbon Treaty which increased the relative power of the EP within the EU, and...

International Illegal Trade in Wildlife: Threats and U.S. Policy

Global trade in illegal wildlife is a potentially vast illicit economy, estimated to be worth billions of dollars each year. Some of the most lucrative illicit wildlife commodities include elephant ivory, rhino horn, sturgeon caviar, and so-called “bushmeat.” Wildlife smuggling may pose a transnational security threat as well as an environmental one. Numerous sources indicate that some organized criminal syndicates, insurgent groups, and foreign military units may be involved in various aspects of international wildlife trafficking. Limited anecdotal evidence also indicates that some...

Medicare Durable Medical Equipment: The Competitive Bidding Program

The Medicare Supplementary Medical Insurance Program (Part B) currently covers a wide variety of durable medical equipment, prosthetics, orthotics, and other medical supplies (DMEPOS) if they are medically necessary and are prescribed by a physician.

Durable medical equipment (DME) is equipment that (1) can withstand repeated use, (2) has an expected life of at least three years (effective for items classified as DME after January 1, 2012), (3) is used to serve a medical purpose, (4) generally is not useful in the absence of an illness or injury, and (5) is appropriate for use in the...

China's Currency Policy: An Analysis of the Economic Issues

China’s policy of intervening in currency markets to limit or halt the appreciation of its currency, the renminbi (RMB), against the U.S. dollar and other currencies has been an issue of concern for many in Congress over the past decade who view it as one of several distortive economic and trade policies that are used to convey an unfair competitive advantage to Chinese producers and exporters. They charge that China’s currency policy is intended to make its exports significantly less expensive, and its imports more expensive, than would occur if the RMB were a freely-traded currency. They...

Health Care Reform and Small Business

Financial Services and General Government: FY2013 Appropriations

The Financial Services and General Government appropriations bill provides funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. Among those independent agencies are the General Services Administration (GSA), the Office of Personnel Management (OPM), the Small Business Administration (SBA), the Securities and Exchange Commission (SEC), and the United States Postal Service (USPS). The Commodity Futures Trading Commission (CFTC) is funded in the House through the...

Outsourcing and Insourcing Jobs in the U.S. Economy: Evidence Based on Foreign Investment Data

The impact of foreign direct investment on U.S. employment continues to attract national attention. While local communities compete with one another for investment projects, many of the residents of those communities fear losing their jobs as U.S. companies seek out foreign locations and foreign workers to perform work that traditionally has been done in the United States, generally referred to as outsourcing. Some observers suggest that current U.S. experiences with outsourcing are different from those that have preceded them and that this merits legislative actions by Congress to blunt...

Department of Homeland Security: FY2013 Appropriations

This report describes the FY2013 appropriations for the Department of Homeland Security (DHS). The Administration requested $39.510 billion in adjusted net discretionary budget authority for DHS for FY2013, as part of an overall budget of $59.501 billion (including fees, trust funds, and other funding that is not appropriated or does not score against the budget caps). The request amounted to a $90 million, or 0.2%, decrease from the $39.600 billion enacted for FY2012 through the consolidated appropriations act (P.L. 112-74).

Congress did not enact final FY2013 appropriations legislation...

Human Rights in China and U.S. Policy: Issues for the 113th Congress

This report examines human rights issues in the People’s Republic of China (PRC), including ongoing rights abuses, legal reforms, and the development of civil society. Major events of the past year include the PRC leadership transition, the Wukan protests over land expropriation, the negotiations that allowed legal advocate Chen Guangcheng to leave China, and the Tibetan self-immolations. Ongoing human rights problems include excessive use of force by public security forces, unlawful detention, torture of detainees, arbitrary use of state security laws against political dissidents and...

Agricultural Export Programs: Background and Issues

Report that discusses the agricultural export programs that aim to develop overseas markets for U.S. agricultural products.

The United States and Europe: Responding to Change in the Middle East and North Africa

U.S. and European Responses to Changes in the Middle East and North Africa

Over the last two years, many U.S. policymakers, Members of Congress, and their European counterparts have struggled with how best to respond to the wide range of challenges posed by the popular uprisings and political upheaval in many countries in the Middle East and North Africa (MENA). Almost immediately after the onset of the so-called “Arab Spring” in early 2011, U.S. and European leaders alike declared their intention to put greater emphasis than in the past on democratic reform and economic development in...

Trade Reorganization: Overview and Issues for Congress

On January 13, 2012, President Obama asked Congress for authority to reorganize and consolidate, into one department, the business- and trade-related functions of six federal entities: Department of Commerce; Export-Import Bank (Ex-Im Bank); Overseas Private Investment Corporation (OPIC); Small Business Administration (SBA); Trade and Development Agency (TDA); and Office of the United States Trade Representative (USTR). Bills based on the proposal were introduced in the 112th Congress. The President reiterated the proposal in his FY2014 budget request, and he may resubmit his request for...

International Climate Change Financing: The Climate Investment Funds (CIFs)

The United States contributes funding to various international financial institutions to assist developing countries to address global climate change and other environmental concerns. Congress is responsible for several activities in this regard, including (1) authorizing periodic appropriations for U.S. financial contributions to the institutions, and (2) overseeing U.S. involvement in the programs. Issues of congressional interest include the overall development assistance strategy of the United States, U.S. leadership in global environmental and economic affairs, and U.S. commercial...

International Environmental Financing: The Global Environment Facility (GEF)

The United States contributes funding to various international financial institutions to assist developing countries to address global climate change and other environmental concerns. Congress is responsible for several activities in this regard, including (1) authorizing periodic appropriations for U.S. financial contributions to the institutions, and (2) overseeing U.S. involvement in the programs. Issues of congressional interest include the overall development assistance strategy of the United States, U.S. leadership in global environmental and economic affairs, and U.S. commercial...

Wildfire Damages to Homes and Resources: Understanding Causes and Reducing Losses

Wildfires are getting more severe, with more acres and houses burned and more people at risk. This results from excess biomass in the forests, due to past logging and grazing and a century of fire suppression, combined with an expanding wildland-urban interface—more people and houses in and near the forests—and climate change, exacerbating drought and insect and disease problems. Some assert that current efforts to protect houses and to reduce biomass (through fuel treatments, such as thinning) are inadequate, and that public objections to some of these activities on federal lands raise...

Forest Fire/Wildfire Protection

Congress continues to face questions about forestry practices, funding levels, and the federal role in wildfire protection. Recent fire seasons have been, by most standards, among the worst in the past half century. National attention began to focus on wildfires when a prescribed burn in May 2000 escaped control and burned 239 homes in Los Alamos, NM. President Clinton responded by requesting a doubling of wildfire management funds, and Congress enacted much of this proposal in the FY2001 Interior appropriations act (P.L. 106-291). President Bush responded to the severe 2002 fires by...

Financial Stability Oversight Council: A Framework to Mitigate Systemic Risk

The Financial Stability Oversight Council (FSOC) was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA; P.L. 111-203) in 2010 as part of a comprehensive reform of banking and securities market regulators. The council is charged with monitoring systemic risk in the financial system and coordinating several federal financial regulators. The 113th Congress may wish to monitor the performance, rulemaking, and policy recommendations of the council.

This report describes the mission, membership, and scope of the FSOC. It provides an analysis of several major policy...

Public Health, Workforce, Quality, and Related Provisions in ACA: Summary and Timeline

In March 2010, President Obama signed into law a comprehensive health reform bill, the Patient Protection and Affordable Care Act (ACA; P.L. 111-148), and a package of amendments to ACA, the Health Care and Education Reconciliation Act of 2010 (HCERA; P.L. 111-152). Health reform was one of President Obama’s top domestic policy priorities during his first term, driven by concerns about the growing ranks of the uninsured and the unsustainable growth in spending on health care and health insurance. Improving access to care and controlling rising costs were seen to require changes to both the...

The Federal Budget: Issues for FY2014 and Beyond

This report provides an overview of federal budget issues, focusing on recent fiscal policy changes. It also discusses the major policy proposals contained in the President's FY2014 budget and the House and Senate budget resolutions.

Expediting the Return to Work: Approaches in the Unemployment Compensation Program

The most recent recession led to an unprecedented increase in the number of those unemployed for more than 26 weeks (the long-term unemployed). As a result, congressional interest in policy initiatives to expedite the return to work grew. This report examines a variety of initiatives and measures within the Unemployment Compensation (UC) program that might reduce long-term unemployment for beneficiaries.

Even before the recent recession began, large numbers of UC recipients exhausted their entitlement to regular state benefits before returning to work. In 2007, one in three recipients...

Agriculture-Based Biofuels: Overview and Emerging Issues

Since the late 1970s, U.S. policymakers at both the federal and state levels have authorized a variety of incentives, regulations, and programs to encourage the production and use of agriculture-based biofuels—i.e., any fuel produced from biological materials. Initially, federal biofuels policies were developed to help kick-start the biofuels industry during its early development, when neither production capacity nor a market for the finished product was widely available. Federal policy (e.g., tax credits, import tariffs, grants, loans, and loan guarantees) has played a key role in helping...

U.S. International Investment Agreements: Issues for Congress

Foreign direct investment (FDI) is an increasingly important driver of the global economy. In the absence of an overarching multilateral framework on investment, bilateral investment treaties (BITs) and investment chapters in free trade agreements (FTAs), collectively referred to as “international investment agreements,” have emerged as the primary mechanism for promoting a rules-based system for international investment. These agreements contain provisions on nondiscriminatory treatment of investments by the host country, limits on expropriation of investments, and access to impartial...

Labor, Health and Human Services, and Education: FY2013 Appropriations Overview

This report provides an overview of actions taken by Congress to provide FY2013 appropriations for the accounts funded by the Departments of Labor, Health and Human Services, and Education, and Related Agencies (L-HHS-ED) appropriations bill. The L-HHS-ED bill provides funding for all accounts subject to the annual appropriations process at the Departments of Labor (DOL) and Education (ED). It provides annual appropriations for most agencies within the Department of Health and Human Services (HHS), with certain exceptions (e.g., the Food and Drug Administration is funded via the...

Argentina’s Defaulted Sovereign Debt: Dealing with the “Holdouts”

In December 2001, Argentina suffered a severe financial crisis, leading to the largest sovereign debt default in history, until Greece. In 2005, after prolonged, contentious, and unsuccessful attempts to restructure the debt, Argentina abandoned the negotiation process and made a unilateral offer. The terms were highly unfavorable to creditors, but $62.3 billion of the $81.8 billion in principal owed was exchanged. A diverse group of “holdouts” representing $18.6 billion did not exchange their bonds, and some have opted to litigate instead. These actions resulted in attachment orders...

Changes to the Residential Mortgage Market: Legislation, Demographics, and Other Drivers

This report provides an overview of the changing residential mortgage market, focusing on trends in housing prices, homeownership, mortgage characteristics, and financing. It also examines legislation and regulations designed to promote the efficient functioning of the mortgage market.

Congressional Concern About Mortgages

Congressional interest in residential mortgage markets has increased following the collapse of the housing bubble, government financial support to the mortgage market, and housing’s perceived importance to the broader economic recovery. Since 2008, the residential...

Commerce, Justice, Science, and Related Agencies: FY2013 Appropriations

On February 13, 2012, President Obama submitted his FY2013 budget to Congress. The Administration requests a total of $62.076 billion for the agencies and bureaus funded as a part of the annual Commerce, Justice, Science, and Related Agencies (CJS) appropriations bill. The Administration’s request includes $7.978 billion for the Department of Commerce, $28.079 billion for the Department of Justice, $25.090 billion for the science agencies, and $929.2 million for the related agencies. The FY2013 request for CJS is 1.9% greater than the FY2012 appropriation of $60.910 billion.

On April 19,...

Department of Defense Implementation of the Federal Data Center Consolidation Initiative: Implications for Federal Information Technology Reform Management

The Department of Defense (DOD) is the single largest energy consumer in the nation. As the largest owner of federal data centers, with 772, the DOD has more than twice as many centers as any other agency. By consolidating some of its data centers, DOD could have a significant positive impact on energy savings for the federal government. DOD has instituted a number of policy directives, as have all federal agencies, that influence energy use in its data centers.

Data centers are facilities—buildings or parts of buildings—used to store, manage, and disseminate electronic information for a...

Economic Recovery: Sustaining U.S. Economic Growth in a Post-Crisis Economy

The 2007-2009 recession was long and deep, and according to several indicators was the most severe economic contraction since the 1930s (but still much less severe than the Great Depression). The slowdown of economic activity was moderate through the first half of 2008, but at that point the weakening economy was overtaken by a major financial crisis that would exacerbate the economic weakness and accelerate the decline.

Economic recovery began in mid-2009. Real gross domestic product (GDP) has been on a positive track since then, although the pace has been uneven and slowed significantly...

An Overview of the “Patent Trolls” Debate

Congress has recently demonstrated significant ongoing interest in litigation by “patent assertion entities” (PAEs), which are colloquially known as “patent trolls” and sometimes referred to as “non-practicing entities” (NPEs). The PAE business model focuses not on developing or commercializing patented inventions but on buying and asserting patents, often against firms that have already begun using the claimed technology after developing it independently, unaware of the PAE patent. PAEs include not only freestanding businesses but patent holding subsidiaries, affiliates, and shells of...

The World Bank Group Energy Sector Strategy

One in five people worldwide lack access to electricity. This is among the many challenges that financial institutions face when providing assistance to lower-income countries in order to promote economic and social development. Access to modern energy sources has the potential to substantially increase worldwide economic growth, creating markets in the developing world for products from the developed world, and vice versa. Filling this need may also result in environmental problems that could threaten development, including an increase in pollution that damages fisheries, reduces farm...

Argentina’s Post-Crisis Economic Reform: Challenges for U.S. Policy

U.S.-Argentine economic relations have long history of mutually beneficial engagement. In recent years, however, they have been strained at times, in part because of Argentina’s struggle to maintain macroeconomic stability, and also because of specific policy choices that have made the business environment difficult to navigate since the country’s 2001 financial crisis. Following a steep currency devaluation and the largest sovereign default in history, Argentina entered a deep recession with high unemployment and social upheaval. It brought to power a new government, and with it a shift...

International Trade and Finance: Key Policy Issues for the 113th Congress

This report discusses a variety of issues faced by the 113th Congress. Topics include trade negotiations with China, export controls and sanctions, import policies, intellectual property rights, international investments and international financial institutions.

DOD Alternative Fuels: Policy, Initiatives and Legislative Activity

This report provides background information and identifies issues for Congress regarding Department of Defense (DOD) alternative fuel initiatives, a subject of debate at congressional hearings on DOD’s proposed FY2013 budget. The services (the Army, Navy, and Air Force) have spent approximately $48 million to purchase alternative fuels, and the Navy has proposed a $170 million investment in biofuel production capacity. The services have also spent funds on testing, certification and demonstrations of alternative fuels. By comparison, DOD purchases of petroleum fuels totaled approximately...

Trade Agreements: Impact on the U.S. Economy

The United States is considering a number of trade agreements, including the Trans-Pacific Partnership Trade Agreement (TPP) and the U.S.-European Union Trade and Investment Partnership. The Congress also may address the issue of trade promotion authority (TPA), which expired on July 1, 2007. In contrast with trade agreements with smaller economies, these two recently proposed agreements could have a significant impact on some aspects of U.S. trade and investment activities that could affect numerous U.S. workers and businesses. During this process, Congress likely will be presented with...

Fair Credit Reporting Act: Rights and Responsibilities

The purpose of the Fair Credit Reporting Act (FCRA) is “to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information.” The FCRA establishes consumers’ rights in relation to their credit reports, as well as permissible uses of credit reports. It also imposes certain responsibilities on those who collect, furnish, and use the...

Foreign Investment and National Security: Economic Considerations

The United States is the largest foreign direct investor in the world and also the largest recipient of foreign direct investment. This dual role means that globalization, or the spread of economic activity by firms across national borders, has become a prominent feature of the U.S. economy and that through direct investment the U.S. economy has become highly enmeshed with the broader global economy. This also means that the United States has important economic, political, and social interests at stake in the development of international policies regarding direct investment. With some...

Financial Market Supervision: Canada's Perspective

This report presents an overview of Canada's financial system and its supervisory framework and draws some distinctions between that system and the current U.S. framework.

Carbon Tax: Deficit Reduction and Other Considerations

In the context of budget deficit and fiscal policy debates, policymakers have considered a number of options for raising additional federal revenues, including a carbon tax. A carbon tax could apply directly to carbon dioxide (CO2) and other greenhouse gas (GHG) emissions, or to the inputs (e.g., fossil fuels) that lead to the emissions. Unlike a tax on the energy content of each fuel (e.g., Btu tax), a carbon tax would vary with a fuel’s carbon content, as there is a direct correlation between a fuel’s carbon content and its CO2 emissions.

Carbon taxes have been proposed for many years...

The Exon-Florio National Security Test for Foreign Investment

This report covers the recent background of the Exon-Florio provision with special regards to issues faced in the 112th Congress. The Exon-Florio provision grants the President the authority to block proposed or pending foreign acquisitions of "persons engaged in interstate commerce in the United States" that threaten to impair the national security.

Individual Retirement Accounts (IRAs): Issues and Proposed Expansion

Current law provides many incentives to promote saving. The goal of these provisions is to increase saving for special purposes such as education or retirement, and to increase national saving. Increased national saving can lead to faster wealth and capital accumulation, which can boost future national income.

An increasingly important retirement saving vehicle is the individual retirement account (IRA). IRA savings is encouraged by two mechanisms—a carrot approach and a stick approach. First, tax provisions allow individuals to defer taxes on IRA contributions and investment earnings or...

Inflation: Causes, Costs, and Current Status

Since the end of World War II, the United States has experienced almost continuous inflation—the general rise in the price of goods and services. It would be difficult to find a similar period in American history before that war. Indeed, prior to World War II, the United States often experienced long periods of deflation. Note that the Consumer Price Index (CPI) in 1941 was virtually at the same level as in 1807.

For more than two decades, the inflation rate has remained low, in contrast to the 1970s and early 1980s. This is true regardless of which of the many available official price...

The Eurozone Crisis: Overview and Issues for Congress

Crisis Overview

What started as a debt crisis in Greece in late 2009 evolved into a broader economic and political crisis in the Eurozone and European Union (EU). The Eurozone faces four major, and related, economic challenges: (1) high debt levels and public deficits in some Eurozone countries; (2) weaknesses in the European banking system; (3) economic recession and high unemployment in some Eurozone countries; and (4) persistent trade imbalances within the Eurozone.

The economic crisis also turned into a political crisis. A combination of deep cuts in public spending, rising...

Malawi: Recent Developments and U.S. Relations

President Barack Obama’s Administration and a number of Members of Congress welcomed Malawian President Joyce Banda’s accession to power, largely because she reversed a number of controversial decisions taken by her predecessor, Bingu wa Mutharika. Banda succeeded him after he died in early April 2012 while serving a contentious second term. Banda’s status as Africa’s second female president, an internationally recognized women’s rights advocate, and a leader with socioeconomic development expertise has also attracted U.S. and other international support for her. There are some indications...

Hedge Fund Speculation and Oil Prices

Dramatic swings in crude oil prices have led Congress to examine the functioning of the markets where prices are set. A particular concern is that financial speculators may at times drive prices above the level justified by supply and demand. Most oil speculators produce no commercial quantities of oil and take no deliveries; rather, they trade financial contracts whose value is linked to the price of oil. These derivative contracts—futures, options, and swaps—allow speculators to profit if they can forecast price trends or exploit new arbitrage opportunities. Derivatives also permit oil...

Understanding China’s Political System

This report is designed to provide Congress with a perspective on the contemporary political system of China, the only Communist Party-led state in the G-20 grouping of major economies. China’s Communist Party dominates state and society in China, is committed to maintaining a permanent monopoly on power, and is intolerant of those who question its right to rule. Nonetheless, analysts consider China’s political system to be neither monolithic nor rigidly hierarchical. Jockeying among leaders and institutions representing different sets of interests is common at every level of the system....

Analysis of Recent Proposals to Amend the Resource Conservation and Recovery Act (RCRA) to Create a Coal Combustion Residuals Permit Program

In the 112th Congress, the House passed two bills to address the long-standing regulatory impasse over coal combustion residuals (CCRs). The impasse originated in 1980, when an amendment to the Resource Conservation and Recovery Act (RCRA) excluded CCRs from regulation as a hazardous waste, pending further study by the Environmental Protection Agency (EPA). That study was required to identify adverse effects on human health and the environment, if any, of CCR disposal and use before determining whether the materials should be subject to hazardous waste requirements.

For over 30 years, EPA...

U.S. and World Coal Production, Federal Taxes, and Incentives

Even though U.S. coal production remained strong over the past decade, reaching record levels of production, coal is losing its share of overall U.S. energy production primarily to natural gas. One of the big questions for the industry is how to penetrate the overseas market, particularly in steam coal, to compensate for declining domestic demand. As U.S. energy policy and environmental regulations are constantly debated, there is ongoing congressional interest in the role of coal in meeting U.S. and global energy needs. The question may not be whether the domestic production of coal is...

U.S. Policy Towards Burma: Issues for the 113th Congress

U.S. policy towards Burma has undergone a discernible shift in its approach since a quasi-civilian government was established in March 2011. While the overall objectives of U.S. policy towards the country remain in place—the establishment of civilian democratic government based on the rule of law and the protection of basic human rights—the Obama Administration has moved from a more reactive, “action-for-action” strategy and a skeptical and cautious attitude towards the newly created Union Government and Union Parliament to a more proactive mode. The new approach is designed to foster...

U.S. Trade and Investment in the Middle East and North Africa: Overview and Issues for Congress

U.S. interest in deepening economic ties with certain countries in the Middle East and North Africa (MENA) has increased in light of the political unrest and transitions that have swept the region since early 2011. Policymakers in Congress and the Obama Administration are discussing ways that U.S. trade and investment can bolster long-term economic growth in the region. In May 2011, President Obama announced the MENA “Trade and Investment Partnership Initiative” (MENA-TIP), through which various federal government agencies are engaged in efforts to enhance trade and investment with the...

Federal Benefits and the Same-Sex Partners of Federal Employees (Prior to the 2013 United States v. Windsor Decision)

The information provided in this report reflects law and policies prior to the 2013 Supreme Court decision in United States v. Windsor.

The federal government provides a variety of benefits to its 4.4 million civilian and military employees and 4.7 million civilian and military retirees. Among these benefits are health insurance; enhanced dental and vision benefits; survivor benefits; retirement and disability benefits; family, medical, and emergency leave; and reimbursement of relocation costs. Pursuant to Title 5 U.S.C. Chapters 89, 89A, 89B, and other statutes, federal employees may...

Border Security: Understanding Threats at U.S. Borders

The United States confronts a wide array of threats at U.S. borders, ranging from terrorists who may have weapons of mass destruction, to transnational criminals smuggling drugs or counterfeit goods, to unauthorized migrants intending to live and work in the United States. Given this diversity of threats, how may Congress and the Department of Homeland Security (DHS) set border security priorities and allocate scarce enforcement resources?

In general, DHS’s answer to this question is organized around risk management, a process that involves risk assessment and the allocation of resources...

FY2013 Supplemental Funding for Disaster Relief

On January 29, 2013, the Disaster Relief Appropriations Act, 2013, a $50.5 billion package of disaster assistance largely focused on responding to Hurricane Sandy, was enacted as P.L. 113-2.

In late October 2012, Hurricane Sandy impacted a wide swath of the East Coast of the United States, resulting in more than 120 deaths and the major disaster declarations for 12 states plus the District of Columbia. The Administration submitted a request to Congress on December 7, 2012, for $60.4 billion in supplemental funding and legislative provisions to address both the immediate losses and damages...

The National Flood Insurance Program: Status and Remaining Issues for Congress

This report provides an analysis of flood risk management, summarizes major challenges facing the National Flood Insurance Program (NFIP), and outlines key reforms enacted in the Flood Insurance Reform Act of 2012. The report identifies and presents some key remaining flood management issues for congressional consideration, and concludes with a discussion of policy options for the future financial management of flood hazards in the United States.

The Work Opportunity Tax Credit (WOTC)

Prospects for Coal in Electric Power and Industry

For most of the twentieth century, the primary use of coal in the United States was for electric power generation, and for most of the history of power generation in the United States, coal has been the dominant fuel used to produce electricity. Even as recently as 2011, coal was the fuel used for almost 42% of power generation in the United States accounting for 93% of coal use. Industrial uses represented the remaining 7%. However, in April 2012, coal’s share of the power generation market dropped to about 32% (according to Energy Information Administration statistics), equal to that of...

U.S. Government Agencies Involved in Export Promotion: Overview and Issues for Congress

This report provides an overview of the federal government agencies that participate in U.S. export promotion efforts and the issues that they raise for Congress. The recent global economic downturn has renewed congressional debate over the role of the federal government in promoting exports. This debate has been heightened with the Obama Administration’s efforts to double U.S. exports under the National Export Initiative (NEI) and policy debates about possible reorganization of federal trade-related agencies. Some Members of Congress have placed greater priority on understanding the...

Business Investment and Employment Tax Incentives to Stimulate the Economy

According to the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), the U.S. economy was in recession from December 2007 to June 2009. Congress passed and the President signed an economic stimulus package, the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), in February 2009. The $787 billion package included $286 billion in tax cuts to help stimulate the economy. Among the tax reductions, many were tax incentives directed to business. The preliminary estimate of fourth quarter real gross domestic product (GDP) growth is 5.9%; the unemployment...

Domestic Food Assistance in 112th Congress 2012 Farm Bill Proposals: S. 3240 and H.R. 6083

Many provisions of the 2008 farm bill (P.L. 110-246) expired on September 30, 2012. On January 2, 2013, President Obama signed the American Taxpayer Relief Act (P.L. 112-240), which included an extension of the 2008 farm bill through September 30, 2013.

This report focuses on the Nutrition title (Title IV) of the 2012 farm bill proposals included in the 112th Congress’s Senate-passed bill (Agriculture Reform, Food, and Jobs Act of 2012; S. 3240) and House Committee-reported bill (Federal Agriculture Reform and Risk Management Act of 2012; H.R. 6083). These were five-year reauthorization...

The Increase in Unemployment Since 2007: Is It Cyclical or Structural?

The unemployment rate greatly increased after the onset of the latest recession in December 2007, when it measured 5.0%. The rate peaked at 10.0% in October 2009, four months after the recession’s official end in June 2009. More than three years into the recovery, the unemployment rate averaged 8.1% in 2012. Given its still elevated level, policymakers may continue to be concerned about how to spur economic growth and create jobs.

Over the past few years, Congress has used fiscal policy and the Federal Reserve (Fed) has used monetary policy to put the economy on a path toward the level of...

Procedures for Considering Changes in Senate Rules

This report discusses procedures and related issues involved in considering changes to Senate rules. The Constitution empowers each house of Congress to determine its own rules. The Senate normally considers changes to its Standing Rules in the form of a simple resolution, which (like any ordinary measure) can be adopted by a majority of Senators voting, a quorum being present (“simple majority”). Like most measures, however, such a resolution is debatable. Senate rules place no general limits on how long consideration of a measure may last, and allow such limits to be imposed only by a...

Tax Cuts for Short-Run Economic Stimulus: Recent Experiences with Rebates and Bonus Depreciation

Although the economy is recovering from the 2007-2009 recession, unemployment continues to be high and further stimulus may be considered in the 113th Congress. Recent legislation in the American Taxpayer Relief Act of 2012 (P.L. 112-240) averted part of the so-called “fiscal cliff,” a set of tax increases and spending cuts that were scheduled to occur at the beginning of 2012. Shortly a decision must be made about continuing with sequestration, a set of automatic spending cuts that were delayed by two months by P.L. 112-240. In addition, while most changes were permanent, bonus...

Using Business Tax Cuts to Stimulate the Economy

Business tax cuts were part of the economic stimulus, included in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), provisions that were subsequently extended (in P.L. 111-240 and P.L. 111-315) by the American Taxpayer Relief Act of 2012, P.L. 112-240. The most important provision is bonus depreciation, which extends to the end of 2013.

Bonus depreciations provisions were enacted in 2002, as increased interest in providing business tax cuts to stimulate the economy followed the terrorist attacks of 2001, which heightened concerns about an economic slowdown. Among the tax...

An Analysis of Where American Companies Report Profits: Indications of Profit Shifting

This report uses data on the operations of U.S. multinational companies (MNCs) to examine the extent to which, if any, MNCs are moving profits out of high-tax countries (or out of the U.S.) and into low-tax countries with little corresponding change in business operations, a practice known as “profit shifting.” To do this, the profits reported by American firms in two groups of countries are compared with measures of real economic activity in those locations. The first group consists of the five countries commonly identified as being “tax preferred” or “tax haven” countries, and includes...

Agriculture and Related Agencies: FY2013 Appropriations

Note: Due to the late enactment of the FY2013 appropriation, this report summarizes action only through the end of the 112th Congress. Final amounts for FY2013 are presented in CRS Report R43110, Agriculture and Related Agencies: FY2014 and FY2013 (Post-Sequestration) Appropriations.

The Agriculture appropriations bill provides funding for all of the U.S. Department of Agriculture (USDA) except the Forest Service, plus the Food and Drug Administration (FDA) and, in alternating years, the Commodity Futures Trading Commission (CFTC).

FY2013 has begun under a continuing resolution (CR; P.L....

Circular A-76 and the Moratorium on DOD Competitions: Background and Issues for Congress

This report discusses the status of the ongoing moratorium on the conduct of Department of Defense (DOD) public-private competitions under Office of Management and Budget (OMB) Circular A-76, and potential issues for Congress.

OMB Circular A-76 is a federal executive branch policy for managing public-private competitions to perform functions for the federal government. A-76 states that, whenever possible, and to achieve greater efficiency and productivity, the federal government should conduct competitions between public agencies and the private sector to determine who should perform the...

U.S. Wind Turbine Manufacturing: Federal Support for an Emerging Industry

Increasing U.S. energy supply diversity has been the goal of many Presidents and Congresses. This commitment has been prompted by concerns about national security, the environment, and the U.S. balance of payments. Investments in new energy sources also have been seen as a way to expand domestic manufacturing. For all of these reasons, the federal government has a variety of policies to promote wind power.

Expanding the use of wind energy requires installation of wind turbines. These are complex machines composed of some 8,000 components, created from basic industrial materials such as...

Cuba: Issues for the 112th Congress

Cuba remains a one-party communist state with a poor record on human rights. The country’s political succession in 2006 from the long-ruling Fidel Castro to his brother Raúl was characterized by a remarkable degree of stability. The government of Raúl Castro has implemented limited economic policy changes, including an expansion of self-employment. A party congress held in April 2011 laid out numerous economic goals that, if implemented, could significantly alter Cuba’s state-dominated economic model. Few observers expect the government to ease its tight control over the political system....

Can Contractionary Fiscal Policy Be Expansionary?

As Congress considers policies to foster economic growth, arguments have been made that the traditional expectations of fiscal policy, namely that cutting spending will contract the economy in the short run, should be reversed. Proponents of this view also argue that cutting spending rather than raising taxes would be a more effective means of increasing economic growth (or at least avoiding contractions). These arguments often refer to recent empirical studies of deficit reductions across countries.

This view contrasts with that held by most economists and found in conventional models....

The Challenge of Individual Income Tax Reform: An Economic Analysis of Tax Base Broadening

Congressional interest in a major reform of the individual income tax that would broaden the base and use the additional tax revenues to lower rates and/or reduce the deficit has increased. The President’s Fiscal Commission, for example, proposed an individual income tax reform with three objectives: to broaden the base and lower the tax rate, to contribute to deficit reduction, and to maintain or increase the progressivity of the tax system. The Fiscal Commission proposed to broaden the tax base by eliminating or modifying most tax expenditures. One legislative proposal in the 112th...

Availability of Injunctive Relief for Standard-Essential Patent Holders

An “industry standard” is a set of technical specifications that provides a common design for a product or process. Standardization is crucial to the functioning of the modern innovation-based economy and in particular to the efficient interoperability of technologically complex consumer electronic devices. Standards allow several firms to supply services and products that incorporate the standard, which may help to lower prices and provide greater consumer choices. Standard-setting organizations (SSOs) are voluntary membership organizations in which industry participants collaboratively...

The “Fiscal Cliff”: Macroeconomic Consequences of Tax Increases and Spending Cuts

A major policy concern for Congress has been when and whether to address the “fiscal cliff,” a set of tax increases and spending cuts that would have substantially reduced the deficit in 2013. In projections made in March 2012 by the Congressional Budget Office (CBO), this fiscal restraint, constituting 5.1% of output in 2013, would have reduced growth to 0.5% from 4.4%. Unemployment would increase by 2 million. In August, updated estimates projected growth at a negative 0.5%. The American Taxpayer Relief Act (H.R. 8) eliminated part of the fiscal cliff.

Policy choices with respect to the...

Federal Programs Available to Unemployed Workers

Four groups of federal programs target unemployed workers: unemployment insurance, health care assistance, job search assistance, and training. This report presents information on federal programs targeted to unemployed workers specifically, but does not attempt to discuss means-tested programs (such as Medicaid or SSI) that are available regardless of employment status.

When eligible workers lose their jobs, the Unemployment Compensation (UC) program may provide up to 26 weeks of income support through the payment of regular UC benefits. Unemployment benefits may be extended by the...

Economic Growth and the Unemployment Rate

A persistently high unemployment rate is of concern to Congress for a variety of reasons, including its negative consequences for the economic well-being of individuals and its impact on the federal budget. The unemployment rate was 9.5% when the economy emerged from the 11th postwar recession in June 2009. It climbed further to peak at 10.0% in October 2009. The rate has slowly declined since then. Although it dropped below 8% in the fourth quarter of 2012, the unemployment rate remains high by historical standards.

After most postwar recessions, it took at least eight months for the...

The “Fiscal Cliff” and the American Taxpayer Relief Act of 2012

The federal budget deficit has exceeded $1 trillion in each of the last four fiscal years (FY2009-FY2012). Concern over these large deficits, as well as the long-term trajectory of the federal budget, resulted in significant debate during the 112th Congress over how to achieve meaningful deficit reduction and how to implement a plan to stabilize the federal debt. Numerous expiring provisions, across-the-board spending cuts, and other short-term considerations having a major budgetary impact, were scheduled to take effect at the very end of 2012 or in early 2013. This combination of...

Russia’s Accession to the WTO and Its Implications for the United States

In 1993, Russia formally applied for accession to the General Agreement on Tariffs and Trade (GATT). In 1995, its application was taken up by the World Trade Organization (WTO), the successor organization of the GATT. Russia is the largest economy not in the WTO; after a number of fits and starts during the 18-year process, the then-153 members of the WTO, on December 16, 2011, invited Russia to join the WTO during the Ministerial Conference in Geneva. On July 10 and July 18, 2012, respectively, the lower house of the Russian parliament—the State Duma—and the upper house—the Federal...

Ghana: Recent Developments and U.S. Relations

Ghana: Bilateral Cooperation and Leadership Engagement

Ghana is considered a model for many of the outcomes that many Members of Congress have long sought to achieve in sub-Saharan Africa in the areas of authorizations; appropriations and program guidance; and oversight. Ghana has received a large U.S. Millennium Challenge Corporation (MCC) Compact and may soon receive a second. It is also a recipient of substantial U.S. Agency for International Development (USAID) and State Department bilateral aid, much of which is channeled through three presidential development initiatives:

the Global...

The Definition of “Supervisor” Under the National Labor Relations Act (NLRA)

The National Labor Relations Act (NLRA) establishes certain protections for private sector employees who want to form or join a labor union. These protections do not extend to supervisors. Historically, Congress has debated where to draw the line between employees who have different levels of management responsibility. It is generally agreed that employees who have significant supervisory duties, such as hiring and firing, are supervisors. However, disagreement occurs with respect to employees who have minor supervisory duties.

In 2001, the U.S. Supreme Court ruled that the test...

Physician Practices: Background, Organization, and Market Consolidation

A growing number of U.S. physicians are combining their practices; affiliating with hospitals, insurance companies, and specialty management firms; or going to work directly for such organizations. The moves are part of a broader trend toward consolidation in health care, with the overall number of mergers and acquisitions in the sector at the highest level in a decade.

Alterations in physician practice appear to be a response to a number of factors. Younger doctors are more eager than their predecessors to work for an outside institution, such as a hospital, to secure a set schedule and...

The U.S. Oil Refining Industry: Background in Changing Markets and Fuel Policies

A decade ago, 158 refineries operated in the United States and its territories and sporadic refinery outages led many policy makers to advocate new refinery construction. Fears that crude oil production was in decline also led to policies promoting alternative fuels and increased vehicle fuel efficiency. Since the summer 2008 peak in crude oil prices, however, the U.S. demand for refined petroleum products has declined, largely due to the economic recession, and the outlook for the petroleum refining industry in the United States has changed.

In response to weak demand for gasoline and...

Distributional Effects of Taxes on Corporate Profits, Investment Income, and Estates

Tax reductions enacted in 2001-2004 reduce the effective tax rate on capital income in several different ways. Taxes on capital arise from individual taxes on dividends, interest, capital gains, and income from non-corporate businesses (proprietorships and partnerships). Reductions in marginal tax rates, as well as some tax benefits for business, reduce these taxes. Taxes on capital income also arise from corporate profits taxes, which are affected not only by rate reductions but also by changes to provisions affecting depreciation, interest deductions, other deductions and credits....

Structure and Functions of the Federal Reserve System

In 1913, Congress created the Federal Reserve System to serve as the central bank for the United States. The Federal Reserve formulates the nation’s monetary policy, supervises and regulates banks, and provides a variety of financial services to depository financial institutions and the federal government. The system comprises three major components: the Board of Governors, a network of 12 Federal Reserve Banks, and member banks.

Congress created the Federal Reserve as an independent agency to enable the central bank to carry out its responsibilities protected from excessive political and...

Tax Cuts on Repatriation Earnings as Economic Stimulus: An Economic Analysis

From the start of the 112th Congress, reform of the current U.S. corporate tax system has been widely debated as an option to stimulate the economy. Most of the debate has focused on lowering the corporate tax rate and moving toward a territorial system. An exception to this approach is a plan to reduce the tax rate on repatriated dividends that has received some consideration. Under such a plan, the U.S. tax that U.S. firms pay when their overseas operations remit (“repatriate”) their foreign earnings as dividends to their U.S. parent corporations would be reduced. Variations of this type...

Immigration of Foreign Nationals with Science, Technology, Engineering, and Mathematics (STEM) Degrees

Although the United States remains the leading host country for international students in science, technology, engineering, or mathematics (STEM) fields, the global competition for talent has intensified. A record number of STEM graduates—both U.S. residents and foreign nationals—are entering the U.S. labor market, and there is a renewed focus on creating additional immigration pathways for foreign professional workers in STEM fields. Current law sets an annual worldwide level of 140,000 employment-based admissions, which includes the spouses and children in addition to the principal...

Offshoring (or Offshore Outsourcing) and Job Loss Among U.S. Workers

Offshoring, also known as offshore outsourcing, is the term that came into use more than a decade ago to describe a practice among companies located in the United States of contracting with businesses beyond U.S. borders to perform services that would otherwise have been provided by in-house employees in white-collar occupations (e.g., computer programmers and systems designers, accounting clerks and accountants). The term is equally applicable to U.S. firms’ offshoring the jobs of blue-collar workers on textile and auto assembly lines, for example, which has been taking place for many...

Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945 (Updated)

Income tax rates are at the center of many recent policy debates over taxes. Some policymakers argue that raising tax rates, especially on higher income taxpayers, to increase tax revenues is part of the solution for long-term debt reduction. This report examines the top tax rates since 1945 and analyzes the ways in which tax rates affect economic growth.

Economic Downturns and Crime

The United States is currently recovering from a broad recession that is considered the longest-lasting economic downturn since World War II. Various indicators of economic strength, such as the unemployment rate and foreclosures, reached their worst showings in decades during the recession and the following months. The state of the economy has generated debate concerning whether economic factors can affect crime. This report examines research on how selected economic variables may or may not be related to crime rates.

There are multiple macroeconomic indicators, such as the consumer price...

Value-Added Modeling for Teacher Effectiveness

Two of the major goals of the Elementary and Secondary Education Act (ESEA), as amended by the No Child Left Behind Act of 2001 (P.L. 107-110; NCLB), are to improve the quality of K-12 teaching and raise the academic achievement of students who fail to meet grade-level proficiency standards. In setting these goals, Congress recognized that reaching the second goal depends greatly on meeting the first; that is, quality teaching is critical to student success. Thus, NCLB established new standards for teacher qualifications and required that all courses in “core academic subjects” be taught...

The Hatch-Waxman Act: Over a Quarter Century Later

Congressional interest in health-related issues has refocused attention on legislative efforts to provide both new as well as lower-cost pharmaceuticals for the marketplace. P.L. 98-417, the Drug Price Competition and Patent Term Restoration Act of 1984 (commonly known as the Hatch-Waxman Act), made significant changes to the patent laws as they apply to pharmaceutical products in an attempt to balance the need for innovative new drugs and the availability of less expensive generic products. The act created several practices intended to facilitate the marketing of generic drugs while...

Alternative Minimum Taxpayers by State: 2009, 2010, and Projections for 2012

Report that breaks down, state-by-state, the percentage of taxpayers subject to Alternative Minimum Tax (AMT), and also maps out these projections for the year 2012.

The Bayh-Dole Act: Selected Issues in Patent Policy and the Commercialization of Technology

Congressional interest in facilitating U.S. technological innovation led to the passage of P.L. 96-517, Amendments to the Patent and Trademark Act (commonly referred to as the Bayh-Dole Act after its two main sponsors). The act provides patent rights to certain inventions arising out of government-sponsored research and development (R&D) to non-profit institutions and small businesses with the expressed purpose of encouraging the commercialization of new technologies through cooperative ventures between and among the research community, small firms, and industry.

Patents provide an...

Rising Economic Powers and U.S. Trade Policy

A handful of developing countries are becoming major players in the global economy due, in part, to their large populations, rising trade flows, and rapidly growing economies. These evolving economies are likely to be of increasing interest to the 113th Congress. Led by China, these rising economic powers (REPs) include Brazil, India, Indonesia, Mexico, Russia, and Turkey. Based on purchasing power parity estimates, China, India, Brazil, and Russia are now among the 10 largest economies in the world and Mexico (#11), Indonesia (#15), and Turkey (#16) are not far behind. With large...

Industrial Competitiveness and Technological Advancement: Debate Over Government Policy

There is ongoing interest in the pace of U.S. technological advancement due to its influence on U.S. economic growth, productivity, and international competitiveness. Because technology can contribute to economic growth and productivity increases, congressional attention has focused on how to augment private-sector technological development. Legislative activity over the past 30 or more years has created a policy for technology development, albeit an ad hoc one. Because of the lack of consensus on the scope and direction of a national policy, Congress has taken an incremental approach...

Federal R&D, Drug Discovery, and Pricing: Insights from the NIH-University-Industry Relationship

Public interest in approaches that might provide prescription drugs at lower cost, particularly for the elderly, has rekindled discussion over the role the federal government plays in facilitating the creation of new pharmaceuticals for the marketplace. In the current debate, some argue that the government’s financial, scientific, and/or clinical support of health-related research and development (R&D) entitles the public to commensurate considerations in the prices charged for any resulting drugs. Others view government intervention in price decisions based upon initial federal funding as...

The U.S. Income Distribution and Mobility: Trends and International Comparisons

The historically slow rebound in the labor market from the 2007-2009 recession appears to be partly responsible for the current focus of some within the public policy community on the unequal distribution of the benefits of economic growth (e.g., higher national income) across U.S. households. This report examines changes over time and across countries in the shape of the income distribution to afford Members of Congress a broader perspective when deliberating such policy issues as the progressivity of income tax rates, the generosity of social insurance programs, and the level of the...

Drug Patent Expirations: Potential Effects on Pharmaceutical Innovation

Congress has exhibited a strong and ongoing interest in facilitating the development of new, innovative pharmaceuticals for the marketplace while reducing the cost of drugs to consumers. Policies pertaining to funding for research and development (R&D), intellectual property protection, and cooperative ventures have played an important role in the economic success of the pharmaceutical sector. Industry-specific legislation, including the Drug Price Competition and Patent Term Restoration Act of 1984, commonly known as the “Hatch-Waxman Act,” also work to encourage innovation in the...

Colombia: Background, U.S. Relations, and Congressional Interest

Colombia, a key U.S. ally, has made measurable progress in providing security despite having endured the longest internal armed conflict in the Western Hemisphere. It has long been a source for both cocaine and heroin. Drug trafficking has helped to perpetuate civil conflict by funding both left-wing and right-wing armed groups. Over the years, Colombia and the United States forged a close partnership focused initially on counternarcotics and later counterterrorism. Building on that cooperation, the U.S.-Colombia partnership has broadened to include development, human rights, and trade....

An Overview of the Transaction Account Guarantee (TAG) Program and the Potential Impact of Its Expiration or Extension

The Federal Deposit Insurance Corporation’s (FDIC’s) initial Transaction Account Guarantee (TAG) program provided unlimited deposit insurance for noninterest-bearing transaction accounts (NIBTAs). A NIBTA is an account in which interest is neither accrued nor paid and the depositor is permitted to make withdrawals at will. NIBTAs are frequently used by businesses, local governments, and other entities as a cash management tool, often for payroll transactions. In spite of a loss of confidence in other parts of the financial system, the insured banking sector saw few bank runs during the...

Government Transparency and Secrecy: An Examination of Meaning and Its Use in the Executive Branch

From the beginnings of the American federal government, Congress has required executive branch agencies to release or otherwise make available government information and records. Some scholars and statesmen, including James Madison, thought access to information—commonly referred to in contemporary vernacular as “transparency”—was an essential cornerstone of democratic governance. Today, the federal government attempts to balance access to information with the need to protect certain information (including national security information and trade secrets) in order to achieve transparency....

The U.S.-Panama Free Trade Agreement

On June 28, 2007, the United States and Panama signed a free trade agreement (FTA) after two and a half years and 10 rounds of negotiations. Negotiations formally concluded on December 16, 2006, with an understanding that changes to labor, environment, and intellectual property rights chapters would be made pursuant to future congressional input. These changes were agreed to and the FTA was signed in time to be considered under Trade Promotion Authority (TPA) legislation, which expired on July 1, 2007. TPA allows Congress to consider certain trade agreement implementing bills under...

U.S. Renewable Electricity: How Does Wind Generation Impact Competitive Power Markets?

U.S. wind power generation has experienced rapid growth in the last 20 years as total installed capacity has increased from 1,500 megawatts (MW) in 1992 to more than 50,000 MW in August of 2012. According to the Energy Information Administration (EIA), wind power provided approximately 3% of total U.S. electricity generation in 2011. Two primary policies provide market and financial incentives that support the wind industry and have contributed to U.S. wind power growth: (1) production tax credit (PTC)—a federal tax incentive of 2.2 cents for each kilowatt-hour (kWh) of electricity...

Natural Gas in the U.S. Economy: Opportunities for Growth

Due to the growth in natural gas production, primarily from shale gas, the United States is benefitting from some of the lowest prices for natural gas in the world and faces the question of how to best use this resource.

Different segments of the U.S. economy have different perspectives on the role natural gas can play. Suppliers, which have become the victims of their own production success, are facing low prices that are forecast to remain low. Some companies that have traditionally produced only natural gas have even turned their attention to oil in order to improve their financial...

Federal Personnel: Conversion of Employees from Appointed (Noncareer) Positions to Career Positions in the Executive Branch

The term “burrowing in” is sometimes used to describe an employment status conversion whereby an individual transfers from a federal appointed (noncareer) position to a career position in the executive branch. Critics of such conversions note that they often occur during the transitional period in which the outgoing Administration prepares to leave office and the incoming Administration prepares to assume office. Conversions are permissible when laws and regulations governing career appointments are followed, but they can invite scrutiny because of the differences in the appointment and...

Tax Reform: An Overview of Proposals in the 112th Congress

This report gives an overview of tax reform issues. The President and leading members of Congress have stated that fundamental tax reform is a major policy objective for the 112th Congress. Some Members have said that fundamental tax reform is needed in order to raise a large amount of additional revenue, which is necessary to reduce high forecast budget deficits and the sharply rising national debt. Congressional interest has been expressed in both a major overhaul of the U.S. tax system and the feasibility of levying a consumption tax.

Australia and the U.S. Rebalancing to Asia Strategy

Australia, a traditionally staunch U.S. ally, is exploring ways to support the U.S. strategy of increasing its involvement in Asia—often called the rebalancing to Asia strategy—at a time when Australia has embarked on significant cuts to its defense budget. Australia is seeking to strengthen its long-standing defense alliance with the United States without jeopardizing its important trade relationship with China. Australia’s strategic geography is increasingly focused on its north and west at a time when the United States is also increasingly focused on the same areas, namely Southeast...

The Impact of the Federal Estate Tax on State Estate Taxes

An estate tax is a tax levied on the assets left behind by a decedent. The federal government and many state governments levy estate taxes or some type of tax on the transfer of assets at death. In 2012, the federal estate tax allows for a $5.12 million exclusion and a top rate of 35%. The federal estate tax is scheduled to revert to the pre-2001 structure on January 1, 2013, with a $1 million exclusion and top rate of 55%. The Administration’s FY2013 budget proposes a federal estate tax with a $3.5 million exemption and top rate of 45% for 2013. Many states also levy estate or inheritance...

The 2012 Farm Bill: A Comparison of Senate-Passed S. 3240 and the House Agriculture Committee’s H.R. 6083 with Current Law

Congress periodically establishes agricultural and food policy in an omnibus farm bill. The 112th Congress faces reauthorization of the current five-year farm bill (the Food, Conservation, and Energy Act of 2008, P.L. 110-246) because many of its provisions expire in 2012. The 2008 farm bill contained 15 titles covering farm commodity support, horticulture, livestock, conservation, nutrition assistance, international trade and food aid, agricultural research, farm credit, rural development, bioenergy, and forestry, among others.

The Senate approved its version of the 2012 omnibus farm...

The Article V Convention for Proposing Constitutional Amendments: Historical Perspectives for Congress

The Philadelphia Convention of 1787 provided two methods of proposing amendments to the U.S. Constitution. In the first, Congress, by two-thirds vote in both houses, proposes amendments to the states. If three-fourths of the states (38 at present) vote to ratify the amendment, it becomes part of the Constitution. Since 1789, Congress has proposed 33 amendments by this method, 27 of which have been adopted. In the second method, if the legislatures of two-thirds of the states (34 at present) apply, Congress must call a convention to consider and propose amendments, which must meet the same...

U.S. Sanctions on Burma

Existing U.S. sanctions on Burma are based on various U.S. laws and presidential executive orders. This report provides a brief history of U.S. policy towards Burma and the development of U.S. sanctions, a topical summary of those sanctions, and an examination of additional sanctions that have been considered, but not enacted, by Congress, or that could be imposed under existing law or executive orders. It also discusses recent easing of some of those sanctions and provisions under which additional sanctions could be waived or removed. The report concludes with a discussion of options for...

Managing the Nuclear Fuel Cycle: Policy Implications of Expanding Global Access to Nuclear Power

After several decades of widespread stagnation, nuclear power has attracted renewed interest in recent years. New license applications for 30 reactors have been announced in the United States, and another 548 are under construction, planned, or proposed around the world. In the United States, interest appears driven, in part, by tax credits, loan guarantees, and other incentives in the 2005 Energy Policy Act, as well as by concerns about carbon emissions from competing fossil fuel technologies.

A major concern about the global expansion of nuclear power is the potential spread of nuclear...

U.S. International Trade: Trends and Forecasts

The global financial crisis and the U.S. recession, during the 19 months from December 2007 through June 2009, caused the U.S. trade deficit to decrease, or lessen, from August 2008 through May 2009. Since then it has begun to increase again as recovery has commenced. The financial crisis caused U.S. imports to drop faster than U.S. exports, but that trend has reversed as U.S. demand for imports recovers.

Exports of goods of $1,497 billion in 2011 increased from 2010 by $209 billion or 16%, while imports of goods of $2,236 billion in 2011 increased by $302 billion, also 16%, over 2010....

Federal Support for Academic Research

From the time of Vannevar Bush and his 1945 report on U.S. science policy, academic research has played a role in the nation’s economy. Vannevar Bush’s report, Science the Endless Frontier, maintained that major investments in research should be made to the nation’s universities. He stated that the research capacity of the colleges and universities was significantly important to long-term national interests. Currently, some Members of Congress have expressed concern about the health and competitiveness of the nation’s colleges and universities. There are those who continue to maintain that...

Job Growth During the Recovery

Congress in recent years passed a number of bills intended in part to jump-start a recovery in the labor market from the recession that began in December 2007. Members are interested in the labor market’s response to these measures to help them decide how well the legislation has worked and whether additional job-creation legislation may be warranted in light of the pace and composition of job growth since the recession’s end in June 2009. Accordingly, employment data from the U.S. Bureau of Labor Statistics is analyzed in this report from December 2007 to September 2012 (the latest month...

Sequestration: A Review of Estimates of Potential Job Losses

Policymakers and economists have expressed concern that spending cuts and tax increases (commonly referred to as the “fiscal cliff”) may push a slowly growing economy into recession in 2013. In summer 2012, policymakers particularly focused on how sequestration as delineated in the Budget Control Act (BCA) of 2011 (P.L. 112-25) might affect employment in the near term. (Sequestration refers to an automatic cancellation of a portion of federal agencies’ budgetary resources.) Effective on January 2, 2013, the BCA imposes across-the-board spending cuts split about equally (in dollar terms)...

U.S. Initial Public Stock Offerings and the JOBS Act

Over the past decade, many sources have reported a precipitous decline in the number of initial public offerings (IPOs) in the United States. These statistics raise several questions: what has caused such a decline? What are the implications for the U.S. economy, and particularly for job creation? At the same time as IPOs appear to have fallen, the amount of private stock offerings has increased, suggesting growth in an alternative source of equity financing.

This report analyzes factors contributing to the decline in IPOs, differences between an IPO involving the sale of shares to the...

Energy Tax Policy: Issues in the 112th Congress

The economic rationale for interventions in energy markets helps inform the debate surrounding energy tax policy. This report begins by providing background on the economic rationale for energy market interventions, highlighting various market failures. After identifying possible market failures in the production and consumption of energy, possible interventions are discussed. The report concludes with an analysis of energy tax policy as it stands at the start of the 112th Congress.

An Overview of Tax Provisions Expiring in 2012

A number of tax provisions have either expired at the end of 2011 or are scheduled to expire at the end of this year. This report provides an overview of these expiring provisions.

The Rum Excise Tax Cover-Over: Legislative History and Current Issues

Under current law, the excise tax on rum is $13.50 per proof gallon and is collected on rum produced in or imported into the United States. Through 2011, $13.25 per proof gallon of imported rum is transferred or “covered over” to the Treasuries of Puerto Rico (PR) and the United States Virgin Islands (USVI). In FY2011, PR received over $449.0 million in revenue and the USVI received over $133.5 million. The law does not impose any restrictions on how PR and USVI can use the transferred revenues. Both territories use some portion of the revenue to promote and assist the rum industry.

The...

Housing Issues in the 112th Congress

As the 112th Congress began, the economy was no longer officially in recession. However, housing markets remain fragile, many economic indicators remain weak, and home foreclosure rates remain high. Against this backdrop, the 112th Congress has considered a number of housing-related issues. Broadly speaking, these issues include long-term questions related to reforms to the housing finance system, short-term concerns related to ongoing turmoil in housing markets, perennial issues related to housing assistance programs, and possible reductions in funding for housing programs administered by...

Supervision of U.S. Payment, Clearing, and Settlement Systems: Designation of Financial Market Utilities (FMUs)

The U.S. financial system processes millions of transactions each day representing daily transfers of trillions of dollars, securities, and other assets to facilitate purchases and payments. Concerns had been raised, even prior to the recent financial crisis, about the vulnerability of the U.S. financial system to infrastructure failure. These concerns about the “plumbing” of the financial system were heightened following the market disruptions of the recent crisis.

The financial market infrastructure consists of the various systems, networks, and technological processes that are necessary...

National Mortgage Servicing Standards: Legislation in the 112th Congress

This report analyzes the potential misaligned incentives in the servicer-mortgage holder relationship and the servicing standards that attempt to address each concern, the servicer-borrower relationship and the relevant servicing provisions, as well as the possible implications of reforming the servicing industry.

Reduce, Refinance, and Rent? The Economic Incentives, Risks, and Ramifications of Housing Market Policy Options

The bursting of the housing bubble in 2006 precipitated the December 2007-June 2009 recession and a financial panic in September 2008. With the housing market seen as a locus for many of the economic problems that emerged, some Members of Congress propose intervening in the housing market as a means of improving not only the housing market itself but also the financial sector and the broader economy. Critics are concerned that further intervention could prolong the housing slump, delay recovery, and affect outcomes based on the government’s preferences. Three frequently discussed proposals...

The Postal Accountability and Enhancement Act of 2006

President George W. Bush signed the Postal Accountability and Enhancement Act (PAEA; P.L. 109-435; 120 Stat. 3198) on December 20, 2006. The PAEA was the first broad revision of the 1970 statute that replaced the U.S. Post Office with the U.S. Postal Service (USPS), a self-supporting, independent agency of the executive branch.

This report describes Congress’s pursuit of postal reform and summarizes the major provisions of the new postal reform law. The report also suggests possible PAEA-related oversight issues for Congress.

Legislatively, the pursuit of reform of the U.S. Postal Service...

Afghanistan: U.S. Foreign Assistance

The U.S. program of assistance to Afghanistan is intended to stabilize and strengthen the Afghan economic, social, political, and security environment so as to blunt popular support for extremist forces in the region. Since 2001, nearly $83 billion has been appropriated toward this effort.

Since FY2002, nearly two-thirds of U.S. assistance—roughly 62%—has gone to the training and equipping of Afghan forces. The remainder has gone to development and humanitarian-related activities from infrastructure to private sector support, governance and democratization efforts, and counter-narcotics...

When Congressional Legislation Interferes with Existing Contracts: Legal Issues

Laws enacted by Congress on occasion interfere with contracts entered into before enactment, prompting suits against the United States by disappointed contract parties. In a few of them, courts have awarded billions of dollars to the United States’ contracting partners. This report surveys the legal theories invoked in such suits. Note that litigation on the grounds covered herein can be avoided entirely if the congressional enactment is construed to apply only to future contracts.

Two competing interests underlie this report’s topic. On the one hand, protection of settled expectations, at...

Effects of Tohoku Tsunami and Fukushima Radiation on the U.S. Marine Environment

The massive Tohoku earthquake and tsunami of March 11, 2011, caused extensive damage in northeastern Japan, including damage to the Fukushima Dai-ichi nuclear power installation, which resulted in the release of radiation. Some have called this incident the biggest manmade release ever of radioactive material into the oceans. Concerns arose about the potential effects of this released radiation on the U.S. marine environment and resources.

Both ocean currents and atmospheric winds have the potential to transport radiation over and into marine waters under U.S. jurisdiction. It is unknown...

JP Morgan Trading Losses: Implications for the Volcker Rule and Other Regulation

On May 10, 2012, JP Morgan disclosed that it had lost more than $2 billion by trading financial derivatives. Jamie Dimon, CEO and chairman of JP Morgan, reported that the bank’s Chief Investment Office (CIO) executed the trades to hedge the firm’s overall credit exposure as part of the bank’s asset liability management program (ALM). The CIO operated within the depository subsidiary of JP Morgan, although its offices were in London. The funding for the trades came from what JP Morgan characterized as excess deposits, which are the difference between deposits held by the bank and its...

Potential Trade Effects of Adding Vietnam to the Generalized System of Preferences Program

Report that looks at the effects of adding Vietnam to the U.S. Generalized System of Preferences (GSP) as a "developing country."

Fannie Mae’s and Freddie Mac’s Financial Problems

This report presents, in analytical question and answer form, the issues surrounding the financial conditions of Fannie Mae and Freddie Mac, which are stockholder-owned government-sponsored enterprises (GSEs). Their federal charters give the GSEs special public policy goals aimed at providing liquidity in the mortgage market and to provide access to homeownership for underserved groups and locations. In return, their charters give the GSEs a special relationship with the government.

The U.S. Postal Service’s Financial Condition: Overview and Issues for Congress

This report provides an overview of the U.S. Postal Service’s (USPS’s) financial condition, legislation enacted to alleviate the USPS’s financial challenges, and possible issues for the 112th Congress.

Since 1971, the USPS has been a self-supporting government agency that covers its operating costs with revenues generated through the sales of postage and related products and services.

In recent years, the USPS has experienced significant financial challenges. After running modest profits from FY2004 through FY2006, the USPS lost $25.4 billion between FY2007 and FY2011. Were it not for...

Major Fiscal Issues Before Congress in FY2013

This report provides a brief overview of the major tax and spending policy changes set to take effect under current law at the end of 2012 or early in 2013. Collectively, these policies have been referred to by some as the “fiscal cliff.” Extending current revenue policies (e.g., extending the Bush tax cuts) and changing current spending policies (e.g., not allowing the BCA sequester to take effect) would increase the projected budget deficit relative to current law. The Congressional Budget Office (CBO) estimates that if current law remains in place, the budget deficit will fall by $502...

Aviation and the European Union’s Emission Trading Scheme

Small Business and the Expiration of the 2001 Tax Rate Reductions: Economic Issues

At the end of 2010, the lower income tax rates provided in 2001 were to expire. The President had proposed to extend most tax cuts, but to continue higher rates for couples with income over $250,000 and singles with income over $200,000. The most important element of this proposal, as measured by revenue effect, is allowing the top rates of 33% and 35% to expire, when they would have risen to 36% and 36.9%. P.L. 111-312, enacted in December 2010, extended all tax cuts for two years, through 2012, delaying the consideration of which tax cuts to retain.

Some critics of allowing the tax rates...

Comparing Compensation for Federal and Private-Sector Workers: An Overview

Recently there has been significant congressional interest in compensation of the federal civilian workforce. The increased interest has been driven at least in part by budgetary pressure and in part by the state of the economy since the recession began in 2007. Issues related to the compensation of federal employees often center on the pay differential between federal workers and their private sector counterparts. For several years, the annual President’s Pay Agent (PPA) study has shown a large wage penalty for federal workers compared to private sector workers in similar occupations. A...

Moving to a Territorial Income Tax: Options and Challenges

Among potential tax reforms under discussion by Congress is revising the tax treatment of foreign source income of U.S. multinational corporations. Some business leaders have been urging a movement toward a territorial tax, which would eliminate some U.S. income taxes on active foreign source income. Under a territorial tax, only the country where the income is earned imposes a tax. Territorial proposals include the Grubert-Mutti proposal (included in President Bush’s Advisory Panel on Tax Reform proposal in 2005) and, more recently, a draft Ways and Means Committee proposal and a Senate...

The 2001 and 2003 Bush Tax Cuts and Deficit Reduction

Auction-Rate Securities

Many municipalities, student loan providers, and other debt issuers borrowed funds using auction-rate securities (ARSs), whose interest rates are set periodically by auctions. ARSs combine features of short- and long-term securities. ARSs are typically long-maturity bonds with interest rates linked to short-term money markets. ARS issuance volumes grew rapidly since they were introduced in the mid-1980s. By 2007, ARSs comprised a $330 billion market. The credit crunch of 2007-2008, however, exposed major vulnerabilities in the design of ARSs.

Turmoil in global financial markets that...

Confirmation of U.S. Circuit and District Court Nominations in Presidential Election Years

In 2012, a presidential election year, an ongoing subject of debate in the Senate has been how many U.S. circuit and district court nominations should be confirmed by year’s end, and how late in the year the Senate should continue to confirm them. Senators have disagreed as to what guidance, if any, previous presidential election years provide to the Senate regarding these questions. They have differed specifically on whether slowing down, or stopping, the processing of judicial nominations at a certain point during this session of Congress, or after a certain number of nominees have been...

Community Development Block Grants: Funding Issues in the 112th Congress and Recent Funding History

The FY2013 budget debate will take place within the context of growing concerns about the need to address federal budget deficits, the national debt, and a sluggish economic recovery following the longest and deepest recession since the Great Depression. The 112th Congress will continue to consider and debate a number of approaches to spur economic activity and job growth, including federal public works and community and economic development programs.

On February 13, 2012, the President released the Administration’s proposed federal budget for FY2013. The Administration’s budget proposal...

Project Labor Agreements

The National Labor Relations Act (NLRA) gives most private sector workers the right to join or form a labor union and to bargain collectively over wages, hours, and working conditions. The act allows workers in the construction industry to enter into a collective bargaining agreement before a project begins. A project labor agreement (PLA) is a collective bargaining agreement that applies to a specific construction project and lasts only for the duration of the project.

In February 2009, President Barack Obama signed an Executive Order (EO) that encourages federal agencies “to consider...

Regulation of Real Estate Appraisers

Real estate appraisers attempt to measure the value of a property that is being purchased or refinanced. In mortgage contracts, the property serves as collateral for the loan. Banks and their regulators may rely on the appraisal to reduce the potential losses if the borrower fails to repay the loan. Property purchasers may also rely on an appraisal if they wish to reassure themselves that the price they offered was reasonable given market conditions. This report discusses the regulation of appraisers and provides information on related statutes and rules.

The fallout from the housing...

FDA’s Authority to Ensure That Drugs Prescribed to Children Are Safe and Effective

Update: On June 20, 2012, the House of Representatives passed, by voice vote and under suspension of the rules, S. 3187 (EAH), the Food and Drug Administration Safety and Innovation Act, as amended. This bill would reauthorize the FDA prescription drug and medical device user fee programs (which would otherwise expire on September 30, 2012), create new user fee programs for generic and biosimilar drug approvals, and make other revisions to other FDA drug and device approval processes. It reflects bicameral compromise on earlier versions of the bill (S. 3187 [ES], which passed the Senate on...

China’s Auto Sector Development and Policies: Issues and Implications

The automobile industry, a key sector in China’s industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world’s largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world’s biggest market for automobile sales. Meanwhile, China’s auto sector development and policies have caused concerns in the United States, from automotive trade, China’s failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor...

Credit Union Commercial Business Lending: Key Issues for Legislation in the 112th Congress

Credit unions currently can make loans only to their members, to other credit unions, and to credit union organizations. In addition, there are restrictions in law on their business lending activities from which the credit union industry has long advocated for relief. Specific restrictions on business lending include an aggregate limit on an individual credit union’s member business loan balances and on the amount that can be loaned to one member. Industry spokesmen have argued that easing the restrictions on member business lending could increase the available pool of credit for small...

Double-Dip Recession: Previous Experience and Current Prospect

Concerns have been expressed that growth in the United States may falter to the point where the U.S. economy again experiences recession. A double-dip or W-shaped recession occurs when the economy emerges from a recession, has a short period of growth, but then, still well short of a full recovery, falls back into recession. This prospect raises policy questions about the current level of economic stimulus and whether added stimulus may be needed. The pace of the recovery has been relatively slow and growth has recently decelerated. For the first year of the recovery, real GDP grew at an...

Medical Malpractice: Overview and Legislation in the 112th Congress

As a policy area, medical malpractice involves issues related to its prevalence in the health care system; the market for provider liability insurance; and the resolution of malpractice complaints through the tort system.

Medical malpractice has attracted congressional attention numerous times over the past decades, particularly in the midst of three “crisis” periods for the liability insurance market in the mid-1970s, the mid-1980s, and the early 2000s. These periods were marked by sharp increases in medical liability insurance premiums, difficulties in finding any medical liability...

Employee Stock Options: Tax Treatment and Tax Issues

National Flood Insurance Program: Background, Challenges, and Financial Status

In 1968, Congress created the National Flood Insurance Program (NFIP) to address the increasing costs of taxpayer-funded disaster relief for flood victims and the increasing amount of damage caused by floods. This report provides an analysis of the NFIP and its financial status; summarizes the major challenges facing the program, including issues affecting its long-term financial solvency; presents some alternative approaches for managing and financing the flood losses; and describes pending legislation on this issue.

The Multilateral Debt Relief Initiative

In June 2005, G8 finance ministers proposed the new Multilateral Debt Relief Initiative (MDRI). The MDRI proposes to cancel debts of some of the world’s poorest countries owed to the International Monetary Fund, World Bank, and African Development Bank. This report discusses MDRI’s implementation and raises some issues regarding debt relief’s effectiveness as a form of foreign assistance for possible congressional consideration.

Klamath River Basin: Background and Issues

The Klamath River Basin on the California-Oregon border is a focal point for local and national discussions on water allocation and species protection. Previously, water and species management issues have exacerbated competition and generated conflict among several interests—farmers, Indian tribes, commercial and sport fishermen, federal wildlife refuge managers, environmental groups, and state, local, and tribal governments. As is true in many regions in the West, the federal government plays a prominent role in the Klamath Basin’s waters. This role stems primarily from (1) operation and...

Ending Overfishing and Rebuilding Fish Stocks in U.S. Federal Waters

Provisions of the Magnuson-Stevens Fishery Conservation and Management Act (MSFCMA, P.L. 94-265, as amended; 16 U.S.C. §§1801 et seq.) enacted during the 1996 reauthorization and amended during the 2006 reauthorization, added specific requirements to end overfishing and to rebuild overfished fish stocks. To implement these requirements, the MSFCMA directed the National Marine Fisheries Service of the National Oceanic and Atmospheric Administration to develop regulations by 2008 to provide guidance for establishing annual catch limits (ACLs) and related biological benchmarks. By the end of...

Revisiting Mortgage Loan Disclosures Under the Consumer Financial Protection Bureau

High default and foreclosure rates in the housing market have resulted in questions as to whether borrowers were fully informed about the terms of their mortgage loans. A lack of transparency with respect to loan terms and settlement costs can make it difficult for consumers to make well-informed decisions when choosing mortgage products. In addition, inadequate disclosures can make some borrowers more vulnerable to predatory lending or discriminatory practices.

The adequate disclosure of mortgage terms is a longstanding issue that has prompted several congressional actions. For example,...

Ability to Repay, Risk-Retention Standards, and Mortgage Credit Access

Prior to the recent financial crisis, mortgage underwriting standards were relaxed to the point where many borrowers could only repay their loans if favorable financial conditions that existed at the time of origination remained intact. In other words, borrowers obtained mortgage loans that relied upon interest rates not rising or the value of the underlying collateral (house prices) not declining. When market conditions changed, however, many mortgage loans became delinquent and went into default. The mortgage defaults often translated into large losses for both the borrowers and the...

What Is Systemic Risk? Does It Apply to Recent JP Morgan Losses?

Systemic risk refers to the possibility that the financial system as a whole might become unstable, rather than the health of individual market participants. Stable financial systems do not transmit

or magnify shocks to the broader economy. A firm, person, government, financial utility, or policy might create systemic risk if (1) its failure causes other failures in a domino effect; (2) news about its assets signals that others with similar assets may also be distressed, called contagion; (3) it contributes to fire sales during price declines; or (4) its absence prevents other firms from...

U.S. Spent Nuclear Fuel Storage

Regardless of the outcome of the ongoing debate about the proposed Yucca Mountain geologic waste repository in Nevada, the storage of spent nuclear fuel (SNF)—also referred to as “high-level nuclear waste”—will continue to be needed and the issue will continue to be debated. The need for SNF storage, even after the first repository is opened, will continue for a few reasons.

The Obama Administration terminated work on the only planned permanent geologic repository at Yucca Mountain, which was intended to provide a destination for most of the stored SNF. Also, the Yucca Mountain project was...

Social Security: Temporary Payroll Tax Reduction

In December 2010, Congress approved a temporary 2 percentage point reduction in the Social Security payroll tax rate for employees and the self-employed in 2011 as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312). The Social Security payroll tax rate in 2011 was 4.2% for employees and 10.4% for self-employed workers. P.L. 111-312 made no changes to the Social Security payroll tax rate for employers (6.2%) or to the amount of wages and net self-employment income subject to the Social Security payroll tax ($106,800 in 2011). It...

An Overview of Major Tax Proposals in the President's FY2012 Budget

This report provides a broad overview of the provisions included in the President's budget request. The budget groups proposed tax provisions into several general categories. According to the Administration's estimates, the tax proposals in the budget would increase revenues $280 billion over the next 10 years

Housing Counseling: Background and Federal Role

The term “housing counseling” refers to a wide variety of educational activities geared toward homebuyers, homeowners, renters, senior citizens, or other populations with particular housing goals. Some potential topics of housing counseling include pre-purchase counseling for potential homebuyers; post-purchase counseling on subjects such as budgeting or home maintenance; foreclosure prevention counseling; counseling on helping renters find or maintain rental housing; and counseling on fair housing, predatory lending, or other topics, among other things. The federal government does not...

The Federal Budget: Issues for FY2013 and Beyond

The federal budget is central to Congress's ability to exercise its "power of the purse." Over the last several fiscal years the imbalance between spending and revenues has grown as a result of the economic downturn and policies enacted in response to financial turmoil. This report discusses how a growing budget deficit will affect the FY2013 budget and government spending.

China’s Rare Earth Industry and Export Regime: Economic and Trade Implications for the United States

Over the past few years, the Chinese government has implemented a number of policies to tighten its control over the production and export of “rare earths”—a unique group of 17 metal elements on the periodic table that exhibit a range of special properties, such as magnetism, luminescence, and strength. Rare earths are important to a number of high technology industries, including renewable energy and various defense systems.

China’s position as the world’s dominant producer and supplier of rare earths (97% of total output) and its policies to limit exports have raised concerns among many...

The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA DR): Developments in Trade and Investment

On August 5, 2004, the United States entered into the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). Congress passed the implementing bill on July 28, 2005 (P.L. 109-53) and CAFTA-DR entered into force with El Salvador, Honduras, Nicaragua, and Guatemala by July 1, 2006, the Dominican Republic on March 1, 2007, and Costa Rica on January 1, 2009. This permanent, comprehensive, and reciprocal trade agreement eliminates tariff and non-tariff barriers to two-way trade, building on unilateral trade preferences begun under the 1983 Caribbean Basin Initiative...

Gold: Uses of U.S. Official Holdings

Unemployment and the Availability of Health Insurance: Issues for Congress

When workers lose their jobs, they can also lose their health insurance. If that health insurance is family coverage, then a worker’s family members can also become uninsured. For individuals who do not typically use many health care services, loss of insurance might have little impact. However, for individuals who have health problems or who are injured, loss of coverage can be serious. Without insurance, individuals often have difficulty obtaining needed care and problems paying for the care they receive. Unemployed individuals and their family members who cannot postpone care may incur...

Financial Services and General Government: A Summary of the President’s FY2013 Budget Request

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. Among those independent agencies are the General Services Administration (GSA), the Office of Personnel Management (OPM), the Small Business Administration (SBA), the Securities and Exchange Commission (SEC), and the United States Postal Service (USPS). The Commodity Futures Trading Commission (CFTC) is funded in the House through the...

Federal Research and Development Funding: FY2012

Federal research and development (R&D) funding for FY2012 is estimated to total $138.869 billion, $3.845 billion (-2.7%) below the FY2011 funding level of $142.714 billion, and $9.042 billion (-6.1%) below the President’s request of $147.911 billion. Among the overarching issues that Congress contended with in the FY2012 appropriations process were the extent to which the federal R&D investment could grow in the context of increased pressure on discretionary spending and how available funding would be prioritized and allocated. The appropriations legislation was incorporated into two...

Executive Compensation: SEC Regulations and Congressional Proposals

Concern about shareholder value, corporate governance, and the economic and social impact of escalating pay for corporate executives has led to a controversy regarding the practices of paying these executives. Proposals have been made in the current and recent Congresses to limit executive compensation and the amount of deferred compensation for tax purposes. In the 110th Congress, two laws containing executive compensation provisions were enacted: P.L. 110-289, the Housing and Economic Recovery Act of 2008, and P.L. 110-343, the Emergency Economic Stabilization Act of 2008. Bills have...

U.S. Oil Imports and Exports

Over the last six years, net oil imports have fallen by 33% to average 8.4 million barrels per day (Mb/d) in 2011. This represents 45% of domestic consumption, down from 60% in 2005. Oil is a critical resource for the U.S. economy, but despite policy makers’ long-standing concern, U.S. oil imports had generally increased for decades until peaking in 2005. Since then, the economic downturn and higher oil prices were a drag on oil consumption, while price-driven private investment and policy helped increase domestic supply of oil and oil alternatives. Net imports are gross imports minus...

Pivot to the Pacific? The Obama Administration’s “Rebalancing” Toward Asia

In the fall of 2011, the Obama Administration issued a series of announcements indicating that the United States would be expanding and intensifying its already significant role in the Asia-Pacific, particularly in the southern part of the region. The fundamental goal underpinning the shift is to devote more effort to influencing the development of the Asia-Pacific’s norms and rules, particularly as China emerges as an ever-more influential regional power. Given that one purpose of the “pivot” or “rebalancing” toward the Asia-Pacific is to deepen U.S. credibility in the region at a time of...

An Analysis of the “Buffett Rule”

Energy Storage for Power Grids and Electric Transportation: A Technology Assessment

Energy storage technology has great potential to improve electric power grids, to enable growth in renewable electricity generation, and to provide alternatives to oil-derived fuels in the nation’s transportation sector. In the electric power system, the promise of this technology lies in its potential to increase grid efficiency and reliability—optimizing power flows and supporting variable power supplies from wind and solar generation. In transportation, vehicles powered by batteries or other electric technologies have the potential to displace vehicles burning gasoline and diesel fuel,...

Compensating State and Local Governments for the Tax-Exempt Status of Federal Lands: What Is Fair and Consistent?

The federal government owns significant amounts of land and resources that are exempt from state and local taxation. State and local governments provide a wide variety of services—education, social services, public safety, transportation facilities, utilities, and much more. These services are funded through intergovernmental transfers (federal grants to state governments and federal and state grants to local governments), user fees, and state and local levied taxation—property taxes, income taxes, sales and use taxes, excise taxes, severance taxes, and more.

Congress has established...

Congressional Oversight of Agency Public Communications: Implications of Agency New Media Use

This report intends to assist Congress in its oversight of executive branch agencies’ public communications. Here, “public communications” refers to agency communications that are directed to the public.

Many, and perhaps most, federal agencies routinely communicate with the public. Agencies do so for many purposes, including informing the public of its rights and entitlements, and informing the public of the agency’s activities. Agencies spent more than $900 million on contracts for advertising services in FY2010, a figure that does not include all agency communications...

U.S. Immigration Policy on Permanent Admissions

Four major principles underlie current U.S. policy on permanent immigration: the reunification of families, the admission of immigrants with needed skills, the protection of refugees, and the diversity of admissions by country of origin. These principles are embodied in the Immigration and Nationality Act (INA). The INA specifies a complex set of numerical limits and preference categories that give priorities for permanent immigration reflecting these principles. Legal permanent residents (LPRs) refer to foreign nationals who live permanently in the United States.

During FY2010, a total...

Executive Branch Reorganization Initiatives During the 112th Congress: A Brief Overview

On January 13, 2012, President Barack Obama announced a proposal for a federal government reorganization. This reorganization initially would involve two legislative stages. First, the President would ask Congress to reinstate the so-called “President’s reorganization authority,” an expedited process that was available to Presidents periodically between 1932 and 1984. A legislative proposal that would renew this authority was conveyed to Congress on February 16, 2012. A bill that is substantively similar to the Administration’s request, S. 2129, was subsequently introduced in the Senate....

Financial Services and General Government: FY2012 Appropriations

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. Among those independent agencies are the General Services Administration (GSA), the Office of Personnel Management (OPM), the Small Business Administration (SBA), the Securities and Exchange Commission (SEC), and the United States Postal Service (USPS). The Commodity Futures Trading Commission (CFTC) is funded in the House through the...

Budget Process Reform: Proposals and Legislative Actions in 2012

An array of budget process reform proposals are put forth each year seeking to refine or modify the existing constitutional requirements, laws, and rules that make up the federal budget process. This report identifies, tracks, and explains current budget process reform proposals reported from committee or considered on the floor during 2012. The proposals are organized into categories related to the existing budget process. When appropriate, a brief description of the current process is provided.

Measures included in this report are H.R. 3575, the Legally Binding Budget Act of 2011; H.R....

Rising Gasoline Prices 2012

Globalization, Worker Insecurity, and Policy Approaches

Today’s global economy, or what many call globalization, has a growing impact on the economic futures of American companies, workers, and families. Increasing integration with the world economy makes the U.S. and other economies more productive. For most Americans, this has translated into absolute increases in living standards and real disposable incomes. However, while the U.S. economy as a whole benefits from globalization, it is not always a win-win situation for all Americans. Rising trade with low-wage developing countries not only increases concerns of job loss, but it also leads...

The Depreciating Dollar: Economic Effects and Policy Response

Depreciation of the dollar since 2002 raises concern among some in Congress and the public that the dollar’s decline is a symptom of broader economic problems, such as a weak economic recovery, rising public debt, and a diminished standing in the global economy. However, a falling currency is not always a problem, but possibly an element of economic adjustments that are, on balance, beneficial to the economy.

A depreciating currency could affect several aspects of U.S. economic performance. Possible effects include increased net exports, decreased international purchasing power, rising...

Homeland Security Department: FY2012 Appropriations

This report describes the FY2012 appropriations for the Department of Homeland Security (DHS). The Administration requested a total appropriation (mandatory and discretionary) of $45,015 million in budget authority for FY2012. This amounts to a $1,610 million, or a 3.7%, increase from the $43,405 million enacted for FY2011 through the continuing resolution (P.L. 112-10). Total budget authority, including appropriations, fee revenues, and trust funds in the Administration’s budget request for DHS for FY2012 amounts to $57,079 million as compared to $55,783 million enacted for FY2011.

Net...

China’s Banking System: Issues for Congress

China’s banking system has been gradually transformed from a centralized, government-owned and government-controlled provider of loans into an increasingly competitive market in which different types of banks, including several U.S. banks, strive to provide a variety of financial services. Only three banks in China remain fully government-owned; most banks have been transformed into mixed ownership entities in which the central or local government may or may not be a major equity holder in the bank.

The main goal of China’s financial reforms has been to make its banks more commercially...

Reducing the Budget Deficit: Policy Issues

This report discusses why the federal government's fiscal path is unsustainable and provides an overview of proposals of selected groups that have published detailed recommendations on how to return the federal budget to a sustainable course.

Previewing the Next Farm Bill

Congress periodically establishes agricultural and food policy in an omnibus farm bill. The 112th Congress faces reauthorization of the current five-year farm bill (the Food, Conservation, and Energy Act of 2008, P.L. 110-246) because many of its provisions expire in 2012. The 2008 law contained 15 titles covering farm commodity support, horticulture, livestock, conservation, nutrition assistance, international food aid, trade, agricultural research, farm credit, rural development, bioenergy, and forestry, among others. The breadth of farm bills has steadily grown in recent decades to...

The U.S. Foreign-Born Population: Trends and Selected Characteristics

This report offers context for consideration of immigration policy options by presenting data on key geographic, demographic, social, and economic characteristics of the foreign-born population residing in the United States. Interest in the U.S. foreign-born population stems in part from the changing demographic profile of the United States as well as the rapidity of such change, and how both of these trends correspond to U.S. immigration policy. Although the foreign born are relatively small in absolute terms—39.9 million people representing 12.9% of the total U.S. population of 309.3...

Labor, Health and Human Services, and Education: FY2012 Appropriations

This report provides an overview of actions taken by Congress to provide FY2012 appropriations for the accounts funded by the Departments of Labor, Health and Human Services, Education, and Related Agencies (L-HHS-ED) appropriations bill. The L-HHS-ED bill provides funding for all accounts subject to the annual appropriations process at the Departments of Labor and Education. It provides annual appropriations for most agencies within the Department of Health and Human Services, with certain exceptions (e.g., the Food and Drug Administration is funded via the Agriculture appropriations...

U.S. Household Debt Reduction

Since the third quarter of 2008, U.S. household debt has steadily fallen. Household debt reduction is known as deleveraging, and such substantial and persistent deleveraging (reflected in Federal Reserve data) has been uncommon over the past several decades. Given that much household debt is used to finance consumption, which accounts for about 70% of gross domestic product, continued deleveraging implies slower consumption growth and economic recovery. Beginning in the third quarter of 2007, household net worth (i.e., the difference between the value of assets and liabilities) preceded...

Legislative Branch: FY2012 Appropriations

The legislative branch appropriations bill provides funding for the Senate; House of Representatives; Joint Items; Capitol Police; Office of Compliance; Congressional Budget Office; Architect of the Capitol; Library of Congress, including the Congressional Research Service; Government Printing Office; Government Accountability Office; and Open World.

The legislative branch budget request of $4.857 billion, which is included in the President’s budget, was submitted on February 14, 2011. This represents an approximately 7% increase over funds provided for FY2011, although the request was...

Evaluating the Current Stance of Monetary Policy Using a Taylor Rule

Oversight of the Federal Reserve's (Fed's) monetary policy decisions rests with Congress. But oversight is encumbered by the absence of a straightforward relationship between interest rates and economic performance. Further, the Fed's policy decisions are discretionary, meaning there is no objective, transparent “yardstick” for evaluating their decisions. A simple rule of thumb guide to monetary policy decisions called a “Taylor rule” is an intuitive way to judge actual policy against some objective, albeit simplistic, ideal. Taylor rules

prescribe a federal funds target based on...

Derivatives Regulation and Legislation Through the 111th Congress

In the wake of the financial crisis and unusual oil price volatility, new attention was drawn to the regulation of derivatives—and particularly toward the unregulated over-the-counter (OTC) derivatives market. What regulatory changes, if any, would reduce risks to the financial system from derivatives trading? A number of bills were introduced in the 111th Congress, and several congressional committees have held hearings. The Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) enacted a sweeping reform of derivatives trading and oversight and brought the unregulated...

The Early Agenda of the Consumer Financial Protection Bureau: The Nonbank Supervision Program

The Consumer Financial Protection Bureau (CFPB) was established by Title X of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act (P.L. 111-203, the Dodd-Frank Act). The creation of the CFPB consolidates many existing consumer financial protection responsibilities into one agency. The Dodd-Frank Act states that the purpose of the CFPB is to implement and enforce federal consumer financial law while ensuring that consumers can access financial products and services. The CFPB is also instructed to ensure that the markets for consumer financial services and products are...

Multilateral Development Banks: General Capital Increases

For the first time in the history of the institutions, each of the major Multilateral Development Banks (MDBs) are simultaneously seeking increases in their capital bases to fund the continued expansion of their development lending programs. The requests come after several years of increased lending by the banks. If the increases are fully funded, the resources of the World Bank, African Development Bank (AfDB), European Bank for Reconstruction and Development (EBRD), Asian Development Bank (AsDB), and Inter-American Development Bank (IDB) would increase by between 31% and 200%....

Pharmaceutical Patent Litigation Settlements: Implications for Competition and Innovation

Although brand-name pharmaceutical companies routinely procure patents on their innovative medications, such rights are not self-enforcing. Brand-name firms that wish to enforce their patents against generic competitors must commence litigation in the federal courts. Such litigation ordinarily terminates in either a judgment of infringement, which typically blocks generic competition until such time as the patent expires, or a judgment that the patent is invalid or not infringed, which typically opens the market to generic entry.

As with other sorts of commercial litigation, however, the...

State and Local Government Debt: An Analysis

The financial consequences of the recession that spanned from December 2007 through June 2009 have increased congressional interest in the fiscal health of state and local governments. State and local tax revenues declined, expenditures climbed, and debt increased. Even though tax revenue has begun to rebound, expenditures for unemployment benefits and other social programs remain elevated. Also, federal aid to states, which had increased as part of the American Recovery and Reinvestment Act, has receded. Federal outlays for grants in aid to state and local governments rose from $538...

U.S.-EU Trade and Economic Relations: Key Policy Issues for the 112th Congress

The 112th Congress, in both its legislative and oversight roles, confronts numerous issues that affect the trade and economic relationship between the United States and the European Union (EU). As U.S.-EU commercial interactions drive significant job creation on both sides of the Atlantic, Congress is monitoring ongoing efforts to deepen transatlantic ties that are already large, dynamic, and mutually beneficial.

U.S. and European private stakeholders, concerned about slow growth, job creation, and increased competition from emerging economies, have urged Brussels and Washington to...

The Future of the Eurozone and U.S. Interests

Seventeen of the European Union's 27 member states share an economic and monetary union (EMU) with the euro as a single currency. These countries are effectively referred to as the Eurozone. What has become known as the Eurozone crisis began in early 2010 when financial markets were shaken by heightened concerns that the fiscal positions of a number of Eurozone countries, beginning with Greece, were unsustainable. This report provides background information and analysis on the future of the Eurozone in six parts, including discussions on the origins and design challenges of the Eurozone,...

Deflation: Economic Significance, Current Risk, and Policy Responses

Despite the severity of the recent financial crisis and recession, the U.S. economy has so far avoided falling into a deflationary spiral. Since mid-2009, the economy has been on a path of economic recovery. However, the pace of economic growth during the recovery has been relatively slow, and major economic weaknesses persist. In this economic environment, the risk of deflation remains significant and its occurrence could derail sustained economic recovery.

Deflation is a persistent decline in the overall level of prices. It is not unusual for prices to fall in a particular sector because...

Housing Issues in the 111th Congress

Housing issues related to the recent turmoil in U.S. housing markets, as well as perennial issues related to the housing needs of low-income individuals and families, were prominent in the 111th Congress. The recent recession that was, in part, both a cause and a result of issues in the housing finance system put legislation designed to address current foreclosures and prevent a future crisis on the congressional agenda. At the same time, the 111th Congress faced questions about how best to meet the affordable housing needs of low-income and vulnerable populations, particularly as...

Preservation of HUD-Assisted Housing

The term “assisted housing preservation” refers to public policy efforts to maintain the affordability of rental properties financed or subsidized by the Department of Housing and Urban Development (HUD) but owned by private for-profit or nonprofit organizations. Beginning in the late 1950s, HUD extended mortgage and/or rental assistance to owners, in exchange for which the owners agreed to make their units affordable to low- and, in some cases, moderate-income tenants. The agreements to maintain affordability, sometimes called “affordability restrictions,” were to last between 20 years...

U.S.-South Korea Free Trade Agreement and Potential Employment Effects: Analysis of Studies

The Obama Administration finalized negotiations with South Korea in early December 2010 on a bilateral free trade agreement. Congress passed the implementing legislation for the U.S.-South Korea free trade agreement on October 21, 2011 (P.L. 112-42). Congress not only plays a direct role in approving legislation that implements the provisions of free trade agreements, but also authorizes and appropriates funding for programs that are meant to provide special assistance to firms and workers that are dislocated as a result of lower barriers to trade. Since the agreement with South Korea...

The National Security Council: An Organizational Assessment

The National Security Council (NSC) was established by statute in 1947 to create an inter-departmental body to advise the President with respect to the integration of domestic, foreign, and military policies relating to the national security so as to enable the military services and the other departments and agencies of the government to cooperate more effectively in matters involving the national security. Currently, statutory members of the Council are the President, Vice President, the Secretary of State, the Secretary of Defense, and, since 2007, the Secretary of Energy; but, at the...

American Jobs Act: Provisions for Hiring Targeted Groups, Preventing Layoffs, and for Unemployed and Low-Income Workers

In response to continuing high rates of unemployment and a weak economy, President Obama announced his American Jobs Act on September 8, 2011. As stated by the President, the proposal aims to “put more people back to work and more money in the pockets of those who are working.” The proposal was introduced, by request, as S. 1549 and H.R. 12. Senate Majority Leader Harry Reid subsequently introduced the proposal with a different spending offset, as S. 1660 on October 6. Since then, individual pieces of the American Jobs Act have been considered—and some provisions enacted—as freestanding...

Derivatives Legislation in the 112th Congress

In the wake of the 2008 financial crisis, amid the perception that the unregulated over-the-counter (OTC) derivatives market contributed to systemic risk, the Dodd-Frank Act (P.L. 111-203) sought to remake the OTC market in the image of the regulated futures exchanges. Reforms included a requirement that swap contracts be cleared through a clearinghouse regulated by one or more federal agencies. Clearinghouses require traders to put down cash (called initial margin) at the time they open a contract to cover potential losses, and they require subsequent deposits (called maintenance margin)...

Transatlantic Regulatory Cooperation: Background and Analysis

Commercial ties between the United States and the 27-member European Union are substantial, growing, and mutually beneficial. However, differences in regulatory approaches limit an even more integrated marketplace from developing. To deal with this situation, a variety of government-to-government efforts have been created to dismantle existing regulatory barriers and to prevent new ones from emerging. These efforts fall under the rubric of transatlantic regulatory cooperation (TRC) and are at the heart of today’s U.S.-EU economic relationship.

This report is intended to serve as an...

A 2008 Farm Bill Program Option: Average Crop Revenue Election (ACRE)

Farm commodity programs over the decades have focused on protecting farmers against declines in farm prices and not declines in revenue (price times production). Traditional programs for field crops provide benefits to producers when farm prices drop below specified levels. To help farmers manage their revenue risks, Congress included the Average Crop Revenue Election (ACRE) program in the Food, Conservation, and Energy Act of 2008 (P.L. 110-246 or 2008 farm bill) as a revenue-based program option for farmers who enroll in traditional farm commodity programs for crop years 2009-2012....

A Whole-Farm Crop Disaster Program: Supplemental Revenue Assistance Payments (SURE)

In an effort to end the ad-hoc nature of emergency crop disaster assistance to farmers, Congress authorized a new Supplemental Revenue Assistance Payments Program (SURE) in the Food, Conservation, and Energy Act of 2008. The program provides payments to producers for crop revenue losses due to natural disaster or adverse weather incurred on or before September 30, 2011. Although program authority has expired, SURE is still making payments for losses that occurred prior to that date.

SURE essentially compensates eligible producers for a portion of losses that are not eligible for an...

National Infrastructure Bank: Overview and Current Legislation

Several bills to establish a national infrastructure bank have been introduced in the 112th Congress. This report examines three such bills, the Building and Upgrading Infrastructure for Long-Term Development Act (S. 652), the American Infrastructure Investment Fund Act of 2011 (S. 936), and the National Infrastructure Development Bank Act of 2011 (H.R. 402). These proposals share three main goals:

increasing total investment in infrastructure by encouraging new investment from nonfederal sources;

improving project selection by insulating decisions from political influence;...

Consumer Bankruptcy and Household Debt

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA; P.L. 109-8) included the most significant amendments to consumer bankruptcy procedures since the 1970s. Bankruptcy reform was enacted in response to the high number of consumer bankruptcy filings, which in 2004 and 2005 reached five times the level of the early 1980s. Why did filings increase so dramatically during a period that included two of the longest economic expansions in U.S. history? Because bankruptcy is by definition a condition of excessive debt, many would expect to see a corresponding increase in the...

The Trans-Pacific Partnership Agreement

At the Asia-Pacific Economic Cooperation Forum (APEC) in November 2011, the leaders of the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam announced the broad outlines of a Trans-Pacific Partnership (TPP) agreement, which the parties hope to complete in 2012. If enacted the TPP would eliminate 11,000 tariff lines among the parties and, with 26 chapters under negotiation, potentially it could serve as a template for future trade pact among the APEC states. At the same venue the leaders of Japan, Canada, and Mexico announced that they would seek...

Patent Reform: Issues in the Biomedical and Software Industries

The Leahy-Smith America Invents Act, P.L. 112-29, passed Congress following several years of legislative debate over patent reform. This attention to patent policy reflects a recognition of the increasing importance of intellectual property to U.S. innovation. Patent ownership is perceived as an incentive to the technological advancement that leads to economic growth. As such, the number of patent applications and grants has grown significantly, as have the type and breadth of inventions that can be patented.

Along with the expansion in the number and range of patents, there were growing...

Anaerobic Digestion: Greenhouse Gas Emission Reduction and Energy Generation

Anaerobic digestion technology may help to address two congressional concerns that have some measure of interdependence: development of clean energy sources and reduction of greenhouse gas emissions. Anaerobic digestion technology breaks down a feedstock—usually manure from livestock operations—to produce a variety of outputs including methane. An anaerobic digestion system may reduce greenhouse gas emissions because it captures the methane from manure that might otherwise be released into the atmosphere as a potent greenhouse gas. The technology may contribute to the development of clean...

Commerce, Justice, Science, and Related Agencies: FY2012 Appropriations

This report provides an overview of actions taken by Congress to provide FY2012 appropriations for Commerce, Justice, Science, and Related Agencies (CJS) accounts.

On November 18, 2011, President Obama signed into law the Consolidated and Further Continuing Appropriations Act, 2012 (P.L. 112-55), which includes the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2012 (Division B). The act includes $60.91 billion for CJS, of which $7.808 billion is for the Department of Commerce, $27.408 billion is for the Department of Justice, $24.838 billion is for the science...

The EU-South Korea Free Trade Agreement and Its Implications for the United States

On October 6, 2010, the 27-member European Union (EU) and South Korea signed a bilateral free trade agreement (FTA). The South Korean National Assembly and the EU Parliament have ratified the agreement. The agreement went into effect on July 1, 2011. The South Korea-EU FTA (KOREU FTA) is the largest FTA in terms of market size that South Korea has entered into. The KOREU FTA reflects the EU and South Korean trade strategies to use FTAs to strengthen economic ties outside their home regions. It also builds upon the surge in trade and investment flows between South Korea and the EU over the...

The Budget Control Act of 2011: Effects on Spending Levels and the Budget Deficit

This report focuses on how the Budget Control Act of 2011 (BCA) will affect spending and the budget deficit through the "first round" effects, related to discretionary spending caps and student loan provisions, and the "second round" effects of additional deficit reduction, related to the work of the Joint Committee. The report also examines short and long run effects of deficit reduction on the economy.

Flat Tax: An Overview of the Hall-Rabushka Proposal

Boosting U.S. Exports: Selected Issues for Congress

For many years, the U.S. government has played an active role in promoting U.S. commercial exports of goods and services by administering various forms of export assistance through federal government agencies. Congress has had a long-standing interest in the effectiveness and efficiency of federal export promotion activities and may exercise export promotion authority in a number of ways, including through oversight, authorization, and funding roles.

The recent global economic downturn has renewed congressional interest in U.S. government efforts to expand U.S. exports levels. In addition,...

The Uninsured by State and Congressional District, 2010

The total U.S. civilian non-institutionalized population in 2010 was estimated to be slightly more than 304 million, of whom 15.5%, or 47.2 million, were estimated by the American Community Survey to be without health insurance or uninsured. The uninsured are far more likely than those with health insurance to report problems getting needed medical care, less likely to follow recommended treatments because of costs, have less access to care, receive less preventive care, and are more likely to be hospitalized for avoidable health problems. Moreover, it is widely believed that the...

Remote Gaming and the Gambling Industry

Fund for "Gifts to the United States for Reduction of the Public Debt": Current Law and Proposed Legislation

This report describes current law for the Public Debt Reduction Fund and discusses proposed legislation in order to evaluate four bills which have been introduced in the 112th Congress to add another method of making a contribution to reduce the national debt.

Europe’s Preferential Trade Agreements: Status, Content, and Implications

Preferential trade agreements (PTAs) comprise a variety of arrangements that favor member parties over nonmembers by extending tariff and other nontariff preferences. PTAs, particularly free trade agreements (FTAs), have proliferated in recent years. In the post-war period, the European Union (EU), which is a PTA itself, has developed the largest network of PTAs in the world. The main findings of this report are as follows.

Historically, Europe’s PTAs have differed among its partners in terms of provisions and commitments and they have been characterized by relatively modest ambition in...

Finance and the Economy: Occupy Wall Street in Historical Perspective

Wall Street and Main Street—the financial system and the real economy of goods and services—are bound together. If businesses large and small had to fund investment projects out of their own pockets, society would be significantly poorer. The financial system aggregates the savings of millions of households and allocates them to the most productive uses. The importance and value of this function are almost universally acknowledged and are axiomatic in market economics.

Nevertheless, the benefits of certain forms of financial intermediation to the real economy are not always apparent....

Wartime Contracting in Afghanistan: Analysis and Issues for Congress

Government contracting in Afghanistan and other wartime environments is different than contracting in peacetime. In peacetime, the goal of contracting is generally to obtain the good or service that is required. The measurements of success are generally getting the right good or service, on schedule, and at a fair price. In wartime, however—and particularly in a counterinsurgency environment—cost, schedule, and performance are often secondary to larger strategic goals of promoting security and denying popular support for the insurgency.

From FY2005 through 2011, the U.S. government...

Zimbabwe: The Transitional Government and Implications for U.S. Policy

The U.S. government, which has expressed concerns regarding the rule of law in Zimbabwe for over a decade and which has long been critical of President Robert Mugabe, has been cautious in its engagement with the country’s three-year-old power-sharing government. That government, which includes members of the former opposition, has improved economic and humanitarian conditions during its ongoing transitional rule. However, significant concerns about the country’s political future remain. Zimbabwe’s March 2008 elections resulted in the party of long-serving President Mugabe losing its...

Health Insurance Coverage by State and Congressional District, 2010

The total U.S. civilian non-institutionalized population in 2010 was estimated to be slightly more than 304 million. Roughly 84.5% of the U.S. civilian non-institutionalized population had one or more forms of health insurance, while 15.5%, or roughly 47.2 million, were uninsured. The most common form of insurance was employer provided.

This report employs the U.S. Census Bureau’s 2010 American Community Survey (ACS) to describe health insurance coverage and provide estimates of coverage by type of coverage at the national, state, and congressional district level. The ACS survey has a...

Fiscal Impacts of the Foreign-Born Population

This report reviews estimates of fiscal impacts to the federal, state, and local governments of the foreign born who reside in the United States. It examines the academic and policy literature on fiscal impacts of two populations: all U.S. foreign born and unauthorized aliens. Computing such fiscal impacts involves numerous methodological and conceptual challenges, and resulting estimates vary considerably according to the assumptions used, including those about the time frame considered, the treatment of U.S.-born children, the unit of analysis used, and which costs and revenues are...

The Federal Budget: Issues for FY2011, FY2012, and Beyond

Proxy Access Reform: The SEC Makes It Potentially Easier for Shareholders to Nominate Directors

In response to the financial crisis, the Dodd-Frank Wall Street Reform and Consumer Protections Act (P.L. 111-203) overhauled the nation’s financial sector regulation. The 112th Congress is actively involved in overseeing the act’s implementation, including provisions involving corporate governance such as expanding the role played by shareholders in the selection of public company corporate boards. While some regarded this as a change that would help make boards more sensitive to market developments and thus shareholder interests, others see it as a change that would place too much...

Issues in Homeland Security Policy for the 112th Congress

With the tenth anniversary of the September 11th terrorist attacks, many observers are making a fresh assessment of where America’s homeland security enterprise stands today. In the wake of those attacks, Congress made extensive changes to the structure and function of many agencies, establishing a consolidated Department of Homeland Security and dedicating significant additional resources expressly to the security of the homeland. After the initial surge of activity, evolution of America’s response has continued under the leadership of different Administrations, Congresses, and in a...

The Role of Public Works Infrastructure in Economic Recovery

During the recent recession, policymakers took a number of monetary and fiscal policy actions to stimulate the economy. Notably, Congress enacted the American Recovery and Reinvestment Act (ARRA) that provided increases in federal spending and reduction in taxes in order to increase demand for goods and services. However, as the economy is only slowly emerging from the recession, interest in using federal government spending to boost U.S. economic recovery has again intensified. There is widespread desire to accelerate job creation and economic recovery, although consensus on how to do so...

Limiting Central Government Budget Deficits: International Experiences

FY2011 Appropriations: A Side-by-Side Comparison of Key Proposals and Enacted Legislation

FY2011 funding levels were not enacted in the 111th Congress. Thus, the debate over FY2011 appropriations continued into the 112th Congress and FY2011 spending proposals became a key focal point in the budget debates between the now-Republican-controlled House of Representatives and the Obama Administration.

This report was originally intended to facilitate comparison of three key spending proposals for FY2011—the Administration’s budget request, H.R. 1, and S.Amdt. 149 to H.R. 1—to FY2010 enacted funding levels. It has been updated to include the enacted FY2011 appropriations in P.L....

Forest Certification Programs

The national forests have been the focus of controversy for many years. Reduced timber harvests, increased wildfire risks, degraded forest health, and disagreements among users and other stakeholders have led to congressional disputes over appropriate management. Some interests have suggested third-party certification of sustainable management of the national forests as a possible solution to many of these difficulties. There are two major certification programs in the United States: the Sustainable Forestry Initiative (SFI) and the Forest Stewardship Council (FSC) program.

The FSC and...

Speculation, Fundamentals, and Oil Prices

High oil prices affect nearly every household and business in the United States. During the course of 2008, oil prices doubled to more than $145 per barrel and then fell by 80%. In early 2011, there was a run-up of about 20%, sending gasoline prices to near 2008 highs. Few would rule out the possibility of similar price swings in the months to come. What explains oil price volatility?

Some consider price movements such as those of 2008 and early 2011 to be more extreme than warranted by the fundamentals of supply and demand. Their explanation for unstable commodity prices focuses on...

Climate Change: Conceptual Approaches and Policy Tools

Congress has, over the past three decades, authorized and funded federal programs to improve understanding of climate changes and their implications. Climate changes have potentially large economic and ecological consequences, both positive and negative, which depend on the rapidity, size, and predictability of change. Some of the impacts of past change are evident in shifting agricultural productivity, forest insect infestations and fires, shifts in water supply, record-breaking summer high temperatures, and coastal erosion and inundation.

People and natural systems respond to climate...

Russian Military Reform and Defense Policy

Russia has undertaken several largely piecemeal and halting efforts to revamp the armed forces it inherited from the Soviet Union. In 2007, near the end of then-President Vladimir Putin’s second term in office, he appointed Anatoliy Serdyukov—the former head of the Federal Tax Service—as defense minister as part of an effort to combat corruption in the military and carry out reforms. After the August 2008 Russia-Georgia conflict revealed large-scale Russian military operational failures, the leadership became more determined to boost military capabilities. U.S. government and congressional...

Rising Economic Powers and the Global Economy: Trends and Issues for Congress

A small group of developing countries are transforming the global economic landscape. Led by China, India, and Brazil, these rising economic powers pose varied challenges and opportunities for U.S. economic interests and leadership of the global economy. They also raise significant policy issues for Congress, including the future direction of U.S. trade policy and negotiations, as well as for the multilateral economic institutions that have historically served as the foundation of an open and rules-based global economy.

This report addresses ongoing shifts in global trade and finance and...

Characteristics of Children With and Without Health Insurance, 2009

About 8.3 million children under age 19 in the United States, or 10.4% of children in this age group, had no health insurance for at least some of 2009. (Similarly, about 10.3% of children in this age group had no health insurance for at least some of 2008.) Children living in families below the poverty threshold, children not living with at least one parent, Hispanic children, and children whose parents did not have health insurance were especially likely to be uninsured. On the other hand, children whose parents had employer-sponsored coverage were themselves likely to have...

Greece’s Debt Crisis: Overview, Policy Responses, and Implications

The Eurozone is facing a serious sovereign debt crisis. Several Eurozone member countries have high, potentially unsustainable levels of public debt. Three—Greece, Ireland, and Portugal—have borrowed money from other European countries and the International Monetary Fund (IMF) in order to avoid default. With the largest public debt and one of the largest budget deficits in the Eurozone, Greece is at the center of the crisis. The crisis is a continuing interest to Congress due to the strong economic and political ties between the United States and Europe.

Build-Up of Greece’s Debt Crisis

In...

The Economic Implications of the Long-Term Federal Budget Outlook

Following the financial crisis, the budget deficit reached 10% of gross domestic product (GDP) in 2009 and 9% of GDP in 2010, a level that cannot be sustained in the long run. Concerns about long-term fiscal sustainability depend on the projected future path of the budget, absent future policy changes. While entitlement spending made little contribution to current budget deficits, the retirement of the baby boomers, rising life expectancy, and the rising cost of medical care result in projections of large and growing budget deficits over the next several decades. Social Security outlays...

Treasury Securities and the U.S. Sovereign Credit Default Swap Market

Paying the public debt is a central constitutional responsibility of Congress (Article I, Section 8). U.S. Treasury securities, which represent nearly all federal debt, have long been considered risk-free assets. The size of federal deficits and the projected imbalance between federal revenues and outlays, however, have raised concerns among some, including the rating agency Standard & Poor’s (S&P), which downgraded the U.S. sovereign credit rating from AAA to AA+ on August 5, 2011. S&P also cited “political brinksmanship” in debt ceiling negotiations as a factor, which raised the issue of...

Federal Research and Development Funding: FY2011

President Obama requested $147.696 billion for research and development (R&D) in FY2011, a $343 million (0.2%) increase from the estimated FY2010 R&D funding level of $147.353 billion. Congress plays a central role in defining the nation’s R&D priorities, especially with respect to two overarching issues: the extent to which the federal R&D investment can grow in the context of increased pressure on discretionary spending and how available funding will be prioritized and allocated. Low or negative growth in the overall R&D investment may require movement of resources across disciplines,...

Foreign Operations Appropriations: General Provisions

This report identifies the legislative origins of General Provisions that pertain to foreign aid in the current Department of State, Foreign Operations, and Related Programs Appropriations Act, 2010 (division F of the Consolidated Appropriations Act, 2010; P.L. 111-117; 123 Stat. 3034 at 3312), as continued for Fiscal Year 2011 by the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (P.L. 112-10; 125 Stat. 38; of which sec. 1101(a)(6) continues appropriations enacted in P.L. 111-117, and division B, title XI, which provides further instruction for FY2011 foreign...

EPA’s Regulation of Coal-Fired Power: Is a “Train Wreck” Coming?

Given the central role of electric power in the nation’s economy, and the importance of coal in power production, concerns have been raised recently about the cost and potential impact of regulations under development at the Environmental Protection Agency (EPA) that would impose new requirements on coal-fired power plants. Six of the rules, which have drawn much of the recent attention, are Clean Air Act regulations. Two others are Clean Water Act rules, and one is a Resource Conservation and Recovery Act rule. The majority are expected to be promulgated over the next 18 months. All...

U.N. System Development Assistance: Issues for Congress

Agriculture and Related Agencies: FY2011 Appropriations

The Agriculture appropriations bill provides funding for all of the U.S. Department of Agriculture (USDA) except the Forest Service, plus the Food and Drug Administration (FDA) and, in some cases, the Commodity Futures Trading Commission (CFTC). Appropriations jurisdiction for the CFTC is split between two subcommittees—the House Agriculture Appropriations Subcommittee and the Senate Financial Services Appropriations Subcommittee.

For the FY2011 Agriculture appropriations bill, no separate floor action and limited formal committee action occurred in the 111th Congress. The full Senate...

The Debt Limit: CRS Experts

Financial Services and General Government: FY2012 Appropriations Overview

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and more than two dozen independent agencies. Among those independent agencies are the General Services Administration (GSA), the Office of Personnel Management (OPM), the Small Business Administration (SBA), the Security and Exchange Commission (SEC), and the United States Postal Service (USPS). The Commodity Futures Trading Commission (CFTC) is funded in the House through the...

Challenge to the Boeing-Airbus Duopoly in Civil Aircraft: Issues for Competitiveness

The importance of a successful aerospace industry to the United States economy has been repeatedly acknowledged by President Obama and members of his Cabinet, many Members of Congress, and by all concerned with the competitive fortunes of the U.S. aircraft manufacturing industry. The U.S. aerospace industry is highly competitive and global in scope. U.S. firms manufacture a wide range of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S....

Commerce, Justice, Science, and Related Agencies: FY2011 Appropriations

This report provides an overview of actions taken by Congress to provide FY2011 appropriations for Commerce, Justice, Science, and Related Agencies (CJS). It also provides an overview of FY2010 appropriations for agencies and bureaus funded as a part of the annual appropriation for CJS.

The Consolidated Appropriations Act, 2010 (P.L. 111-117), included a total of $68.705 billion in new budget authority for CJS. Of the $68.705 billion appropriated for FY2010, $14.035 billion was for the Department of Commerce, $28.078 billion was for the Department of Justice, $25.658 billion was for the...

Homeland Security Department: FY2011 Appropriations

This report describes the FY2011 appropriations for the Department of Homeland Security (DHS). The Administration requested a net appropriation of $45.0 billion in budget authority for FY2011. This amounts to a $1.1 billion, or a 2.4% increase from the $43.9 billion enacted for FY2010. Total budget authority requested by the Administration for DHS for FY2011 amounts to $52.6 billion as compared to $51.7 billion enacted for FY2010.

Net requested appropriations for major agencies within DHS were as follows: Customs and Border Protection (CBP), $9,809 million; Immigration and Customs...

Oil Industry Financial Performance and the Windfall Profits Tax

Over the past 13 years, surging crude oil and petroleum product prices have increased oil and gas industry revenues and generated record profits, particularly for the top five major integrated companies, ExxonMobil, Royal Dutch Shell, BP, Chevron, and ConocoPhillips. These companies, which reported a predominant share of those profits, generated more than $104 billion in profit on nearly $1.8 trillion of revenues in 2008, before declining as a result of the recession and other factors. From 2003 to 2008, revenues increased by 86%; net income (profits) increased by 66%. Oil output by the...

Potential Trade Implications of Restrictions on Antimicrobial Use in Animal Production

Exports of U.S. livestock and poultry products are important both to farmers and to the U.S. economy. In 2009, U.S. livestock and poultry exports were valued at more than $10 billion, accounting for about 12% of total global meat trade (estimated at nearly $87 billion in 2009).

Growing concerns about antimicrobial resistance have caused some U.S. trading partners and competitors to implement restrictions and prohibitions on the use of certain antimicrobials for subtherapeutic or nontherapeutic purposes in animal production. Although antibiotic use in animals has not been a significant...

Financial Services and General Government (FSGG): FY2011 Appropriations

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President, the judiciary, the District of Columbia, and 26 independent agencies. Among the independent agencies funded by the bill are the Small Business Administration, the Office of Personnel Management, and the United States Postal Service.

The FSGG FY2010 appropriations were provided through P.L. 111-117, Consolidated Appropriations Act, 2010. P.L. 111-117 provided $46.265 billion for FSGG agencies in FY2010. In addition, P.L. 111-80...

Patent Reform in the 112th Congress: Innovation Issues

Brief History of the Gold Standard in the United States

The U.S. monetary system is based on paper money backed by the full faith and credit of the federal government. The currency is neither valued in, backed by, nor officially convertible into gold or silver. Through much of its history, however, the United States was on a metallic standard of one sort or another.

On occasion, there are calls for Congress to return to such a system. Such calls are usually accompanied by claims that gold or silver backing has provided considerable economic benefits in the past. This report briefly reviews the history of the gold standard in the United States....

The Quasi Government: Hybrid Organizations with Both Government and Private Sector Legal Characteristics

To assist Congress in its oversight, this report provides an overview of federally related entities that possess legal characteristics of both the governmental and private sectors. These hybrid organizations (e.g., Fannie Mae, National Park Foundation, In-Q-Tel), collectively referred to in this report as the “quasi government,” have grown in number, size, and importance in recent decades.

A brief review of executive branch organizational history is followed by a description of entities with ties to the executive branch, although they are not “agencies” of the United States as defined in...

Waiving the Restriction of Annual Limits in Private Health Insurance

Considerable congressional attention has been placed on the dollar value of health insurance coverage in terms of out-of-pocket (OOP) costs placed on policyholders. One method that lowers the dollar value of coverage is the use of annual limits on the dollar amount of coverage. Private health insurers use annual limits to require the consumer to assume 100% of the cost of coverage after a certain amount of spending for the year has been reached. While annual limits may be a benefit design feature in any type of health insurance, they are used as the primary method of cost control for...

Japan’s 2011 Earthquake and Tsunami: Economic Effects and Implications for the United States

The March 11, 2011, earthquake and tsunami that occurred in Japan followed by the nuclear crisis are having a large negative impact on the economy of Japan but a lesser effect on world trade and financial markets. Japan has lost considerable physical and human capital. Physical damage has been estimated to be from $195 billion to as much as $305 billion. (Greece’s GDP is $330 billion.) In excess of 23,000 persons in Japan are killed or missing, and more than 400,000 homes and other buildings have been totally or partially damaged. The negative effects of the earthquake and tsunami have...

Reducing the Budget Deficit: The President’s Fiscal Commission and Other Initiatives

The federal budget is on an unsustainable path. Though deficit levels are currently elevated, they are expected to fall towards the middle part of the decade as the economic recovery continues. Looking beyond this decade, however, the country’s fiscal outlook becomes more bleak as spending on programs like Social Security, Medicare, and Medicaid, and net interest are projected to consume a larger portion of the total federal budget.

Budget policy debates thus far in the 112th Congress have centered on how to achieve meaningful deficit reduction and implementation of a plan to stabilize the...

Political Status of Puerto Rico: Options for Congress

Legislative Branch: FY2011 Appropriations

The legislative branch operated on continuing resolutions from October 1, 2010 (P.L. 111-242, P.L. 111-290, P.L. 111-317, P.L. 111-322, P.L. 112-4, and P.L. 112-6) until the enactment of P.L. 112-10 on April 11, 2011. P.L. 112-10 provides $4.54 billion for legislative branch activities.

The legislative branch appropriations bill provides funding for the Senate; House of Representatives; Joint Items; Capitol Police; Office of Compliance; Congressional Budget Office; Architect of the Capitol, including the Capitol Visitor Center; Library of Congress, including the Congressional Research...

Tax Expenditures and the Federal Budget

New Zealand: Background and Bilateral Relations with the United States

New Zealand is increasingly viewed as a stalwart partner of the United States that welcomes U.S. presence in its region. New Zealand and the United States enjoy very close bilateral ties across the spectrum of relations between the two countries. These ties are based on shared cultural traditions and values as well as on common interests. New Zealand is a stable and active democracy with a focus on liberalizing trade in the Asia-Pacific region. New Zealand also has a history of fighting alongside the United States in most of its major conflicts including World War I, World War II, Korea,...

International Monetary Fund: Selecting a Managing Director

On May 14, 2011, Dominique Strauss-Kahn, the Managing Director of the International Monetary Fund (IMF), was arrested at John F. Kennedy Airport and charged with the attempted rape, criminal sexual assault, and unlawful imprisonment of a maid at the New York City Sofitel hotel. He resigned on May 18, 2011. Mr. Strauss-Kahn’s arrest and resignation come at a challenging time for the IMF, which he had led since 2007. Under his leadership, the IMF reasserted its role as the premier international organization for international economic corporation. In the wake of the financial crisis, Mr....

Overview of the Federal Debt

The size of current and projected federal deficits and the accumulation of federal debt are central to current congressional deliberations regarding fiscal reforms. This report provides a broad overview of the federal debt, annual budget deficits, and debt service costs. Federal debt is the accumulated sum of unrepaid borrowing by the federal government over time. The total federal debt consists of debt held by the public and intragovernmental debt. Debt owed to the public represents borrowing from entities other than the federal government, and includes borrowing from state and local...

Oil Spill in the Gulf of Mexico: CRS Experts

Conservation Reserve Program: Status and Current Issues

The Conservation Reserve Program (CRP), enacted in the 1985 farm bill, provides payments to farmers to take highly erodible or environmentally sensitive cropland out of production for 10 years or more. It is the federal government’s largest private land retirement program. The program is administered by the Farm Service Agency (FSA) of the U.S. Department of Agriculture (USDA), with technical assistance provided by USDA’s Natural Resources Conservation Service. The CRP also has several subprograms, the best-known of which is the Conservation Reserve Enhancement Program (CREP).

The 2008...

International Climate Change Financing: Needs, Sources, and Delivery Methods

Many voices, domestic and international, have called upon the United States to increase foreign assistance to address climate change. Proponents maintain that such assistance could help promote low-emissions and high-growth economic development in lower-income countries, while simultaneously protecting the more vulnerable countries from the effects of a changing climate. Recent studies estimate the needs for climate change financing in the developing world to range from US$4 billion to several hundred billion annually by the year 2030. The United States has pledged funds in such fora as...

Israel’s Offshore Natural Gas Discoveries Enhance Its Economic and Energy Outlook

Israel has been dependent on energy imports since it became a nation in 1948, but the recent offshore natural gas discoveries could change that and possibly make Israel an exporter of natural gas. Development of the recently discovered natural gas fields—Tamar, Dalit, and Leviathan—likely will decrease Israel’s needs for imported natural gas, imported coal, and possibly imported oil. A switch to natural gas would most likely affect electric generation, but could also improve Israel’s trade balance and lessen carbon dioxide emissions. Regionally, Israel’s success thus far has sparked...

Health Insurance Coverage by State and Congressional District, 2009

Roughly 85% of Americans were covered by health insurance in 2009. The insured were more likely to be white or Asian; more educated; higher income; elderly; and female. The uninsured, about 15% of the population, were more likely to be African American or Hispanic; less educated; lower income; non-elderly adult; and male. In general, the uninsured are more likely to report problems getting needed medical care and to be hospitalized for avoidable health problems.

This report employs the U.S. Census Bureau’s 2009 American Community Survey (ACS) to describe health insurance coverage and...

Public Financing of Congressional Campaigns: Overview and Analysis

To critics, public campaign financing, generally in conjunction with spending limits, is the ultimate solution to perceived problems arising from ever-growing costs of campaigns and the accompanying need for privately donated campaign funds. Public financing supporters maintain that replacing private funds with public money would most effectively reduce potentially corrupting influence from “interested” money. On the other hand, opponents of public financing question whether real or apparent corruption from private fundraising is as serious a problem as critics claim. They also argue that...

Analysis of an Estimate of the Total Costs of Federal Regulations

Some policy makers have expressed an interest in measuring total regulatory costs and benefits (e.g., the Congressional Office of Regulatory Analysis Creation and Sunset and Review Act of 2011, H.R. 214, 112th Congress), and estimates of total regulatory costs have been cited in support of regulatory reform legislation (e.g., H.R. 10, the Regulations from the Executive In Need of Scrutiny (REINS) Act, H.R. 10, 112th Congress). However, measuring total costs and benefits is inherently difficult. This report examines one such study to illustrate the complexities of this type of analysis.

A...

Railroad Access and Competition Issues

Beginning in the late 1970s, Congress gave railroads flexibility to set rates and to enter into confidential contracts with their customers. Over the last decade, large railroads have consolidated and, particularly in recent years, have achieved higher profitability. These changes have left some bulk shippers, particularly those that claim to be “captive” to a single railroad, frustrated with what they perceive as poor rail service and exorbitant rates. “Captive shippers” claim that the railroad serving them acts like a monopoly—charging excessively high rates and providing less service...

District of Columbia Opportunity Scholarship Program: Implementation Status and Policy Issues

The Consolidated Appropriations Act for FY2004 (P.L. 108-199), which combined six appropriations bills—including the FY2004 District of Columbia Appropriations Act—authorized and appropriated funding for the Opportunity Scholarship program, a federally funded school voucher program, for the District of Columbia. It also provided funding for the District of Columbia Public Schools (DCPS) for the improvement of public education and the State Education Office for public charter schools. The provision of federal funds for DCPS, public charter schools, and vouchers is commonly referred to as...

The Obama Administration’s Report on “Reforming America’s Housing Finance Market”: Implications for Fannie Mae and Freddie Mac

In February 2011, the Obama Administration released a report, “Reforming America’s Housing Finance Market,” setting out several options for the future of housing finance. In the past, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac have played a crucial role in government support for the mortgage market. In 2008, however, both firms were taken over by the government and have received government life support since then. Fannie and Freddie continue to provide funds for mortgage lending, at a time when private capital has largely exited the market and not yet returned,...

Value-Added Tax (VAT) as a Revenue Option: A Primer

This report summarizes issues, arguments, and concerns relevant to a value-added tax (VAT).

Impact on the Federal Budget of Freezing Non-Security Discretionary Spending

This report examines the impact on the federal budget of the President’s proposals, specifically the proposed freeze in non-security discretionary spending and how the freeze might change the fiscal outlook over the 10-year budget window.

Should the United States Levy a Value-Added Tax for Deficit Reduction?

This report discusses the levying of a value-added tax (VAT), a broad-based consumption tax, to potentially assist in resolving United States fiscal problems. It considers the experiences of the 29 nations with value-added taxes (VATs) in the 30-member Organization for Economic Cooperation and Development (OECD) which are relevant to the feasibility and operation of a possible U.S. VAT.

U.S. and EU Agricultural Support: Overview and Comparison

The European Union (EU) is one of the United States’ chief agricultural trading partners but also a major competitor in world markets. Both the United States and the EU provide significant government support for their agricultural sectors. According to the Organization for Economic Cooperation and Development (OECD), in 2009 the EU and the United States together accounted for 60% of all government support to agriculture among the major developed economies.

In the United States, federal farm policy has traditionally focused on price and/or income support programs concentrated on row crops...

Liability and Compensation Issues Raised by the 2010 Gulf Oil Spill

The 2010 Deepwater Horizon incident produced the largest oil spill that has occurred in U.S. waters, releasing more than 200 million gallons into the Gulf of Mexico. BP has estimated the combined oil spill costs—cleanup activities, natural resource and economic damages, potential Clean Water Act (CWA) penalties, and other obligations—will be approximately $41 billion.

The Deepwater Horizon oil spill raised many issues for policymakers, including the ability of the existing oil spill liability and compensation framework to respond to a catastrophic spill. This framework determines (1) who...

Middle East and North Africa Unrest: Implications for Oil and Natural Gas Markets

Political unrest in the Middle East and North Africa (MENA) has contributed to higher oil prices and added instability to energy markets. Supply disruptions and fears about the possible spread of unrest to major exporters have pushed prices higher. Even if the crisis abates, some risk premium may persist to the degree that market participants fear such an event could occur again.

Higher oil prices can negatively impact the economies of oil importing countries. The cost of oil is the primary determinant of gasoline prices and prices of other petroleum products; increased costs can be a...

Previewing Dairy Policy Options for the Next Farm Bill

Financial stress encountered by dairy farmers in recent years has led Congress and the industry to reconsider how to deal with fluctuations in milk prices and financial prospects for dairy farmers. Some Members have voiced interest in alternatives to current federal programs (which expire in 2012). Alternative policies could either be incorporated into the next omnibus farm bill or enacted separately before expiration.

The dairy industry is currently developing or advocating a variety of policy changes. All of the proposals discussed in this report—loosely categorized as either supply...

Characteristics of Individuals With and Without Health Insurance, 2009

Almost 51 million people, or 16.7% of the U.S. population, had no health insurance for at least some of 2009. In fact, the aggregate uninsurance rate over the past decade was never less than 13.4%. Individuals living in poorer families, young adults between ages 19 and 25, and Hispanics were especially likely to be uninsured. On the other hand, individuals over 65, who are almost always eligible for Medicare, were the least likely to be uninsured. An extensive body of research suggests that those without health insurance are more likely to face worse health outcomes than those with...

U.S. Immigration Policy on Temporary Admissions

U.S. law provides for the temporary admission of various categories of foreign nationals, who are known as nonimmigrants. Nonimmigrants are admitted for a designated period of time and a specific purpose. They include a wide range of visitors, including tourists, foreign students, diplomats, and temporary workers. There are 24 major nonimmigrant visa categories. These visa categories are commonly referred to by the letter and numeral that denotes their subsection in the Immigration and Nationality Act (INA); for example, B-2 tourists, E-2 treaty investors, F-1 foreign students, H-1B...

Medical Malpractice Insurance and Health Reform

As a policy area, concerns about medical malpractice typically involve issues related to the market for physician liability insurance, the prevalence of malpractice in the health care system, and the resolution of malpractice complaints through the tort system. This report focuses primarily on the private insurance market. Medical malpractice liability insurance has attracted congressional attention numerous times over the past decades, particularly in the midst of three “crisis” periods in the mid-1970s, the mid-1980s, and the early 2000s. These periods were marked by sharp increases in...

The Deepwater Horizon Oil Spill and the Gulf of Mexico Fishing Industry

On April 20, 2010, the Deepwater Horizon oil drilling rig was destroyed by an explosion and fire, and the oil well began releasing oil into the Gulf of Mexico. The oil spill caused significant economic harm to the Gulf fishing industry because of fishery closures and consumer concerns related to the safety of Gulf seafood. Intermediate and long-term concerns are related to impacts on marine populations and degradation of fisheries habitat necessary for spawning, development of early life stages, and growth.

The closing and opening of fishing grounds has involved a tradeoff between...

Empowerment Zones, Enterprise Communities, and Renewal Communities: Comparative Overview and Analysis

Empowerment Zones (EZs), Enterprise Communities (ECs), and Renewal Communities (RCs) are federally designated geographic areas characterized by high levels of poverty and economic distress, where businesses and local governments may be eligible to receive federal grants and tax incentives. Congress remains interested in these programs to revitalize selected areas affected by unemployment and a decline in economic activity, despite increased concern over the size and sustainability of the long-term budget outlook.

The objective of this report is to provide a comparative overview of the...

The Market for Biomass-Based Diesel Fuel in the Renewable Fuel Standard (RFS)

The market for biomass-based diesel (BBD) fuel, most notably biodiesel, has expanded rapidly since 2004, largely driven by federal policies, especially tax credits and a mandate for their use under the federal Renewable Fuel Standard (RFS). Most expect that the majority of the BBD fuel quota in the RFS will be met using biodiesel produced from soybean oil. Biodiesel from other feedstocks, and other biomass-based substitutes (e.g., synthetic diesel from cellulosic feedstocks or algae) could play a larger role in the future, although currently these other alternatives are prohibitively...

Environmental, Health, and Safety Tradeoffs: A Discussion of Policymaking Opportunities and Constraints

A policymaker making a decision on approving a program may face the questions, What are the tradeoffs? What alternatives are foregone by committing resources to that program? This issue has been sharpened in environmental, health, and safety policy because studies indicate that some programs are more cost-effective than others, suggesting that redirecting resources from less efficient to more effective programs would increase overall national economic welfare.

Actually making implied tradeoffs has proved difficult, however. One reason is continuing controversy over methods for evaluating...

Legislative, Executive, and Judicial Officials: Process for Adjusting Pay and Current Salaries

Leaders and Members of the Senate and the House of Representatives, the Vice President, individuals in positions on the Executive Schedule (EX), and federal justices and judges—all hereafter referred to as federal officials—are to receive an annual pay adjustment under the Ethics Reform Act of 1989, P.L. 101-194 (103 Stat. 1716, at 1769, 5 U.S.C. §5318 note). The percentage change in the wages and salaries for the private industry workers element of the Employment Cost Index (ECI), minus 0.5% (December indicator), provides the basis for the pay adjustment. In January 2011, the Vice...

Salary Linkage: Members of Congress and Certain Federal Executive and Judicial Officials

The salaries of Members of Congress, certain high-level federal officials (those paid at Level II of the Executive Schedule (EX)), and certain federal Justices and judges have, until recently, generally been in parity for many years. The Ethics Reform Act of 1989 provides for annual pay adjustments to be established for the Members, the Vice President, federal officials paid under the EX Schedule, and federal Justices and judges. The act also requires a Citizens’ Commission on Public Service and Compensation and the President to recommend salaries in parity for these federal government...

Federal Benefits and Services for People with Low Income: Programs, Policy, and Spending, FY2008-FY2009

The federal government spent almost $708 billion in FY2009 on programs for low-income people, and nearly $578 billion the previous year. The increased spending between the two years was largely due to the recession, with almost two-thirds coming from the American Recovery and Reinvestment Act (ARRA, P.L. 111-5), the economic stimulus enacted in February 2009.

Low-income programs discussed in this report are distinct from social insurance programs, such as Social Security or Medicare, which aim to protect American workers universally against lost wages or benefits when they retire, become...

Currency Manipulation: The IMF and WTO

Congress has been concerned, for many years, with the possible impact that currency manipulation has on international trade. The International Monetary Fund (IMF) has jurisdiction for exchange rate questions. The World Trade Organization (WTO) is responsible for the rules governing international trade. The two organizations approach the issue of “currency manipulation” differently. The IMF Articles of Agreement prohibit countries from manipulating their currency for the purpose of gaining unfair trade advantage, but the IMF cannot force a country to change its exchange rate policies. The...

Climate Change and the EU Emissions Trading Scheme (ETS): Looking to 2020

The European Union’s (EU) Emissions Trading Scheme (ETS) is a cornerstone of the EU’s efforts to meet its obligation under the Kyoto Protocol. It covers more than 10,000 energy intensive facilities across the 27 EU Member countries; covered entities emit about 45% of the EU’s carbon dioxide emissions. A “Phase 1” trading period began January 1, 2005. A second, Phase 2, trading period began in 2008, covering the period of the Kyoto Protocol. A Phase 3 will begin in 2013 designed to reduce emissions by 21% from 2005 levels.

Several positive results from the Phase 1 “learning by doing”...

The Uninsured by State and Congressional District

The total U.S. civilian non-institutionalized population in 2009 was estimated to be slightly more than 301 million of whom 15.1%, or 45.5 million, were estimated by the American Community Survey to be without health insurance or uninsured. The uninsured are far more likely than those with health insurance to report problems getting needed medical care, less likely to follow recommended treatments because of costs, have less access to care, receive less preventive care, and are more likely to be hospitalized for avoidable health problems. Moreover, it is widely believed that the uninsured,...

Patent Reform in the 111th Congress: Innovation Issues

Pending U.S. and EU Free Trade Agreements with South Korea: Possible Implications for Automobile and Other Manufacturing Industries

South Korea has negotiated free trade agreements (FTAs) with the United States and the European Union (EU), but neither agreement has yet been approved. The U.S. Congress must approve the United States and South Korea free trade agreement (KORUS FTA) and the European Parliament must vote on the European Union and South Korea free trade agreement (KOREU FTA) before the FTAs can take effect. If the FTAs are ratified, it is possible there could be a “first mover” advantage for either the United States or the European Union, depending on which FTA is approved first. Some argue that both...

Patents on Tax Strategies: Issues in Intellectual Property and Innovation

Several bills were introduced in previous sessions of Congress that would have addressed the recently recognized phenomenon of patented tax strategies. These legislative initiatives would have prevented the grant of exclusive intellectual property rights by the United States Patent and Trademark Office (USPTO) on methods that individuals and enterprises might use in order to minimize their tax obligations. This issue may arise before the 112th Congress.

Many commentators trace the rise of tax strategy patents to the 1998 opinion of the Federal Circuit in State Street Bank v. Signature...

Cellulosic Biofuels: Analysis of Policy Issues for Congress

Cellulosic biofuels are produced from cellulose (fibrous material) derived from renewable biomass. They are thought by many to hold the key to increased benefits from renewable biofuels because they are made from potentially low-cost, diverse, non-food feedstocks. Cellulosic biofuels could also potentially decrease the fossil energy required to produce ethanol, resulting in lower greenhouse gas emissions.

Cellulosic biofuels are produced on a very small scale at this time—significant hurdles must be overcome before commercial-scale production can occur. The renewable fuels standard (RFS),...

The Proposed Comcast-NBC Universal Combination: How It Might Affect the Video Market

The proposed combination of Comcast, the largest distributor of video services in the United States, and NBC Universal (NBCU), a major producer and aggregator of video content, would create a huge, vertically integrated entity with potentially enormous negotiating power at a time when market forces already are altering traditional content provider/distributor relationships. Comcast would own or control media and entertainment properties of significant scope and scale.

Despite the size and reach that Comcast would be afforded, there is so much uncertainty in the video market that the...

The U.S. Newspaper Industry in Transition

Cuomo v. The Clearing House Association, L.L.C.: National Banks Are Subject to State Lawsuits to Enforce Non-Preempted State Laws

On June 29, 2009, the U.S. Supreme Court ruled that the National Bank Act (NBA) does not preempt states from bringing judicial actions against national banks to enforce non-preempted state anti-discrimination laws, and by implication state consumer protection laws, as long as the state authorities do not encroach on the visitorial powers of the national bank regulator, the Office of Comptroller of the Currency (OCC). The Court ruled that administrative subpoenas or other forms of administrative oversight or examination are included in visitorial powers and, thus, are not available as state...

Critical Infrastructure Security: CRS Experts

The following table provides access to names and contact information for CRS experts on policy concerns relating to critical infrastructure security. Policy areas identified include: mission, magnitude, importance, relationship to departmental mission; policy, organization, and operations across all infrastructures; information disclosure, Freedom of Information Act (FOIA); security services, airport screeners, guards; specific sectors, assessing vulnerabilities, planning and implementation; agriculture; banking and finance; chemical; defense industry; emergency systems; energy;...

Tax-Favored Financing for Renewable Energy Resources and Energy Efficiency

Tax policy is one tool available to promote the use of domestic renewable energy resources. Tax-subsidized financing, specifically tax-favored bonds, reduce the cost associated with making oftentimes capital intensive investments in renewables and energy efficiency. This report provides an overview of the various federally tax-favored financing options available for renewable energy and energy-efficiency investments. This report also highlights the economic foundations for subsidizing renewable energy investment and comments on economic issues specific to tax-favored financing.

Various...

The Obama Administration’s Feed the Future Initiative

The global food price crisis of 2007-2008 and the global economic crisis resulted in an increase in the proportion and absolute number of hungry people worldwide to historic levels, over one billion in 2009. In 2010, the estimate of hungry people in the world declined to 925 million, a decrease of about 9.6%. The vast majority of the world’s undernourished live in developing countries; South Asia and sub-Saharan Africa account for 63% and 26% of the total, respectively.

In June 2009, at the G8 Summit in L’Aquila, Italy, President Obama pledged $3.5 billion over three years (FY2010 to...

Ownership of Individual Retirement Accounts (IRAs) and Policy Options for Congress

Preparing for financial security in retirement continues to be a concern of working Americans and policymakers. Although most Americans participate in the Social Security system, Social Security is likely to be only a part of income in retirement. A recent Gallup poll indicated that while 34% of working Americans expect Social Security to be a major source of retirement income, 45% of those polled expect private retirement savings accounts to be a major source of retirement income.

Since the 1920s, Congress has provided tax incentives to employers to sponsor pension plans for their...

Energy’s Water Demand: Trends, Vulnerabilities, and Management

The energy choices before Congress represent vastly different demands on domestic freshwater because water is used in varying amounts in most aspects of the energy sector. Transitions in the energy sector, such as the pursuit of greater energy independence and security, produce changes in how much and where the energy sector uses water. The energy sector is the fastest-growing water consumer in the United States, in part because of energy policies. Whether the federal government addresses the energy sector’s rising water demand, and if so how, is one of the many energy decisions that may...

Economic Recovery and Jobs: CRS Experts

Older Unemployed Workers Following the Recent Economic Recession

Although the economic recession that began in December of 2007 has officially ended, unemployment rates still remain close to 10%. Especially hard hit have been older workers, aged 55 and older, for whom unemployment rates have reached historical highs. A combination of an increase in the number of older individuals re-entering the workforce and a limited number of job openings (i.e., weak demand for labor) is responsible for their historically high unemployment rate.

Older unemployed workers face a unique set of challenges, distinct from those of their younger counterparts. The magnitude...

The Tax Exclusion for Employer-Provided Health Insurance: Issues for Congress

Employer-provided health insurance is excluded from the determination of employees’ federal income taxes, resulting in significant tax savings for many workers. Comparable exclusions apply to federal employment taxes and to state income and employment taxes. Because employment-based health insurance covers three-fifths of the population under the age of 65, the exclusions also result in considerable revenue loss to the government. Ending them could raise several hundred billion dollars a year, depending on exactly what is repealed and how workers and employers adjust. Some see this revenue...

Economics and National Security: Issues and Implications for U.S. Policy

As the world begins the second decade of the twenty-first century, the United States holds what should be a winning hand of a preeminent military, large economy, strong alliances, and democratic values. The nation’s security should be secure. Yet the debate over national security seems to be both intensifying and broadening. The problem appears not only in the difficulty of finding a winning strategy in the long war against acts of terrorism but having to face economic constraints that loom large in the public debate. In addition, the global financial crisis and recession have highlighted...

Compensation Reform and the Federal Teacher Incentive Fund

Congress has historically recognized the importance of teacher quality in improving the academic performance of elementary and secondary school students; however, federal policy has only recently begun to address the impact of teacher compensation systems on both quality and performance. Growing concern about the dominant feature of these systems—the single salary schedule—has led to a variety of compensation reform efforts around the country. These efforts include pay-for-performance incentives that attempt to align teacher compensation more closely with student achievement, as well as...

China-North Korea Relations

The People’s Republic of China (PRC) plays a key role in U.S. policy toward the Democratic People’s Republic of Korea (DPRK or North Korea). The PRC is North Korea’s closest ally, largest provider of food, fuel, and industrial machinery, and arguably the country most able to wield influence in Pyongyang. China also is the host of the Six-Party Talks (involving the United States, China, North Korea, South Korea, Japan, and Russia) over North Korea’s nuclear program. The close PRC-DPRK relationship is of interest to U.S. policymakers because China plays a pivotal role in the success of U.S....

Estate Tax Options

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA; P.L. 107-16), among other tax cuts, provided for a gradual reduction and elimination of the estate tax. Under EGTRRA, the estate tax exemption rose from $675,000 in 2001 to $3.5 million in 2009, and the rate fell from 55% to 45%. In 2010, the estate tax was eliminated. The estate tax changes, however, were scheduled to sunset in 2011, when the exemption would have become $1 million (as scheduled in pre-EGTRRA law) and the tax rate would return to 55%.

There was general agreement that some sort of estate tax would be...

International Treaty on Plant Genetic Resources for Food and Agriculture

Plant genetic resources for food and agriculture (PGRFA) serve as the raw material used by plant breeders and farmers to create new crop varieties. As such, they are viewed by many as the foundation for modern agriculture and as essential for achieving global food security. The United Nations Food and Agriculture Organization estimates that more than three-quarters of the increased crop productivity of the past 30 years is the result of plant breeding, and that future global food security depends to a large extent on the continued improvement of food crops—for example, developing new...

Unemployment Through Layoffs and Offshore Outsourcing

This report focuses on unemployment through layoffs. It sets forth the publicly available sources of information on layoffs and determines whether they provide data on the reasons that underlie those events (e.g., weak product demand, financial difficulty). The report next briefly provides a context for the offshore outsourcing phenomenon and its relationship to gross and net employment change. It then analyzes the trend in, severity of, and explanations of extended mass layoffs before concluding with an examination of those layoff events that involve movement-of work to foreign-based...

Quantitative Easing and the Growth in the Federal Reserve’s Balance Sheet

On November 3, 2010, the Federal Reserve (Fed) announced that it would purchase an additional $600 billion of Treasury securities, an action that has popularly been dubbed quantitative easing or “QE2.” This announcement followed purchases since March 2009 of $300 billion of Treasury securities, $175 billion of agency debt, and $1.25 trillion of agency mortgage-backed securities (MBS). (The agency debt and MBS were primarily issued by Fannie Mae and Freddie Mac.) This report defines quantitative easing as actions to further stimulate the economy through growth in the Fed’s balance sheet...

Distribution of the Tax Burden Across Individuals: An Overview

Distributional issues often lie at the center of tax policy debates. Distributional analysis may address several issues: How should the tax burden be distributed or, are progressive (increasing as a share of income as income rises) taxes justified? What is the estimated distribution of the current system? How does a particular proposal change that distribution?

Unlike many analyses that study optimal behavior related to allocative issues and economic efficiency, economic analysis cannot be used to answer the questions of how the tax burden should be distributed. Such an answer would depend...

The Market Structure of the Health Insurance Industry

In March 2010, Congress passed a pair of measures designed to reform the U.S. health care system and address the twin challenges of constraining rapid growth of health care costs and expanding access to high-quality health care. On March 21, the House passed the Patient Protection and Affordable Care Act (H.R. 3590), which the Senate had approved on Christmas Eve, as well as the Health Care and Education Reconciliation Act of 2010 (H.R. 4872). President Obama signed the first measure (P.L. 111-148) on March 23 and the second on March 30 (P.L. 111-152). On November 2, 2009, the House...

Cruise Ship Pollution: Background, Laws and Regulations, and Key Issues

The cruise industry is a significant and growing contributor to the U.S. economy, providing more than $32 billion in benefits annually and generating more than 330,000 U.S. jobs, but also making the environmental impacts of its activities an issue to many. Although cruise ships represent a small fraction of the entire shipping industry worldwide, public attention to their environmental impacts comes in part from the fact that cruise ships are highly visible and in part because of the industry’s desire to promote a positive image.

Cruise ships carrying several thousand passengers and crew...

Stability in Russia’s Chechnya and Other Regions of the North Caucasus: Recent Developments

Terrorist attacks in Russia’s North Caucasus—a border area between the Black and Caspian Seas that includes the formerly breakaway Chechnya and other ethnic-based regions—appeared to increase substantially in 2007-2009. Moreover, civilian and government casualties reached levels not seen in several years and terrorist attacks again took place outside the North Caucasus. Although the number of terrorist incidents may have leveled off or even declined slightly in 2010 from the high levels of 2009, the rate of civilian and government casualties continued to increase throughout the North...

The Bush Tax Cuts and the Economy

The George W. Bush Administration enacted a series of tax cuts through the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. This report examines these tax cuts within the context of the current and long-term economic environment.

The Public Safety Employer-Employee Cooperation Act

Since 1995, legislation that would guarantee collective bargaining rights for state and local public safety officers has been introduced in Congress. The Public Safety Employer-Employee Cooperation Act (PSEECA)—introduced in the 111th Congress as H.R. 413 by Representative Dale E. Kildee, S. 1611 by Senator Judd Gregg, and S. 3194 and S. 3991 by Senator Harry Reid—would recognize such rights by requiring compliance with federal regulations and procedures if these rights are not provided under state law. Supporters of the measure maintain that strong partnerships between public safety...

Who Regulates Whom? An Overview of U.S. Financial Supervision

This report provides an overview of current U.S. financial regulation: which agencies are responsible for which institutions, activities, and markets, and what kinds of authority they have. Some agencies regulate particular types of institutions for risky behavior or conflicts of interest, some agencies promulgate rules for certain financial transactions no matter what kind of institution engages in it, and other agencies enforce existing rules for some institutions, but not for others. These regulatory activities are not necessarily mutually exclusive.

Ghana, an Emergent Oil Producer: Background and U.S. Relations

This report provides information on current developments in Ghana and Ghanaian-U.S. relations, which are close. Warm bilateral relations were signaled by President Barack Obama's July 2009 trip to Ghana. Ghana was chosen for his first travel as president to Africa because of its democratic and economic development successes. In Ghana, President Obama made the last of a four-part thematic series of major overseas speeches on key foreign policy issues. The speech in Ghana, to the national parliament, centered on the integral relationship between democracy, good governance, and development in...

Islamic Finance: Overview and Policy Concerns

Islamic finance is based on principles of shariah, or “Islamic law.” Major financial principles of shariah are a ban on interest, a ban on contractual uncertainty, adherence to risk-sharing and profit-sharing, promotion of ethical investments that enhance society, and asset-backing.

While the Islamic finance industry represents a fraction of the global finance market, it has grown at double-digit rates in recent years. By some estimates, total assets held globally under Islamic finance reached $1 trillion in 2010. Islamic banks have appeared to be more resilient than conventional banks to...

Nuclear, Biological, Chemical, and Missile Proliferation Sanctions: Selected Current Law

The proliferation of nuclear, biological, and chemical weapons, and the means to deliver them, are front and center today for policy makers who guide and form U.S. foreign policy and national security policy, and economic sanctions are considered a valuable asset in the national security and foreign policy toolbox. The United States currently maintains robust sanctions regimes against foreign governments it has identified as proliferators (particularly Iran, North Korea, and Syria). If the 112th Congress takes up even a fraction of the proposals introduced by its predecessor involving...

Turkey: Selected Foreign Policy Issues and U.S. Views

This report focuses on the foreign policy of Turkey, a long-time valued U.S. NATO ally, and examines the ruling Justice and Development Party's (AKP) recalculation of the country's approach to foreign affairs and its possible effects on relations with the United States. This report surveys Turkish foreign policy issues that are of critical interest to U.S. officials and Members of Congress.

The Dodd-Frank Wall Street Reform and Consumer Protection Act: Title IX, Investor Protection

Title IX of the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) contains 10 subtitles and 113 separate sections amending federal securities laws intended to improve investor protection. The range of Title IX’s provisions is very broad: some sections will bring significant changes to the securities business, while others are little more than technical clarifications of the Securities and Exchange Commission’s (SEC’s) authority. This report provides brief summaries of those provisions that create new SEC authority, that were controversial during the legislative...

Long-Term Unemployment and Recessions

The recession that began in the United States in December 2007 and officially ended in June 2009 was one of the deepest and the longest since the Great Depression. One feature that distinguishes the recent recession from its postwar predecessors is the historically high percentage of workers who have been unemployed for more than six months (the long-term unemployed). This report analyzes the trend in long-term unemployment over the postwar period and offers explanations for its unusually high incidence during the most recent postwar recession. It compares the individual, job, and...

Presidential Appointments to Full-Time Positions in Executive Departments During the 110th Congress, 2007-2008

The appointment process for advice and consent positions consists of three main stages. The first stage is selection, clearance, and nomination by the President. This step includes preliminary vetting, background checks, and ethics checks of potential nominees. At this stage, the president may also consult with Senators who are from the same party if the position is located in a state. The second stage of the process is consideration of the nomination in the Senate, most of which takes place in committee. Finally, if a nomination is approved by the full Senate, the nominee is given a...

“Robo-Signing” and Other Alleged Documentation Problems in Judicial and Nonjudicial Foreclosure Processes

During the summer of 2010, several employees and individuals with power-of-attorney signing authority for major servicers, including GMAC Mortgage, J.P. Morgan Chase, and Wells Fargo, were deposed as part of foreclosure contests. These depositions raised concerns about what has been characterized as “robo-signing”—the practice of having a small number of individuals sign a large number of affidavits and other legal documents submitted to courts and other public authorities by mortgage companies to execute foreclosures. As a result of these depositions, many have questioned whether...

General Motors' Initial Public Offering: Review of Issues and Implications for TARP

This report analyzes the progress General Motors Company has made since it was created from the sale of the bankrupt Old GM in July 2009 and the major issues related to its anticipated 2010 initial public offering (IPO).

Water Reuse and the Title XVI Program: Legislative Issues

Congress authorized the Department of the Interior (DOI) to undertake a program to provide federal financing for water reuse (i.e., planned beneficial use of treated wastewater and impaired surface and groundwater) with passage of the Reclamation Wastewater and Groundwater Studies Feasibility Act of 1992 (Title XVI of P.L. 102-575). The Department of the Interior’s implementation of the program by the Bureau of Reclamation at times has been contentious. Many Members of Congress, particularly from water-scarce western states, have supported the program and specific projects. However, with a...

Raising the Tax Rates on High-Income Taxpayers: Pros and Cons

This report focuses on the debate over whether the top two marginal tax rates should be permitted to rise back to their 2001 levels, once the temporary tax provisions known as the "Bush tax cuts" expire on December 31, 2010. The report discusses arguments for and against raising the tax rates.

Substance Abuse and Mental Health Services Administration (SAMHSA): Agency Overview and Reauthorization Issues

The Substance Abuse and Mental Health Services Administration (SAMHSA), within the Department of Health and Human Services (HHS), provides federal funding to support community-based mental health and substance abuse prevention and treatment services. SAMHSA awards formula and competitive grants under its authorities in Title V of the Public Health Service Act (PHSA). The agency also administers the $1.8 billion Substance Abuse Prevention and Treatment (SAPT) block grant and the $420 million Community Mental Health Services (CMHS) block grant, both of which are authorized in PHSA Title XIX....

Foreign Science and Engineering Presence in U.S. Institutions and the Labor Force

The increased presence of foreign students in graduate science and engineering programs and in the scientific workforce has been and continues to be of concern to some in the scientific community. Enrollment of U.S. citizens in graduate science and engineering programs has not kept pace with that of foreign students in those programs. In addition to the number of foreign students in graduate science and engineering programs, a significant number of university faculty in the scientific disciplines are foreign, and foreign doctorates are employed in large numbers by industry.

Few will...

The Status of the Basel III Capital Adequacy Accord

The new Basel Capital Adequacy Accord (Basel III) is an agreement among countries' central banks and bank supervisory authorities on the amount of capital banks must hold as a cushion against losses and insolvency. Basel III is of concern to Congress mainly because it could put U.S. financial institutions at a competitive disadvantage in world financial markets. This report follows the basic elements of the Basel III documents on the types of capital requirements and their phase-in schedule, which were approved by the Basel member central bank governors on September 12, 2010. The elements...

Cellulosic Ethanol: Feedstocks, Conversion Technologies, Economics, and Policy Options

In the Energy Independence and Security Act of 2007 (P.L. 110-140), Congress mandated the use of a large and rapidly increasing volume of biofuels as part of the U.S. national transportation fuel base. In particular, the share of cellulosic biofuels is mandated to grow to 16 billion gallons by 2022—a daunting challenge considering that no commercial production existed as of mid-2010. Cellulosic biofuels can be produced from almost any sort of biomass. As a result, a variety of biomass types that can be produced or collected under a range of geographic settings are potential feedstock...

How Changes in the Economics of Broadcast Television Are Affecting News and Sports Programming and the Policy Goals of Localism, Diversity of Voices, and Competition

Market and technological changes are creating challenges to the long-standing business models employed by broadcast television networks and local television stations, but at the same time generating potential opportunities. The changes also may be affecting the three pillars of U.S. government media policy—localism, diversity of voices, and competition—and damping the effectiveness of existing regulations intended to foster them. These changes generally are strengthening the position of parties that own or control popular content in their negotiations with distributors of video...

The Deepwater Horizon Oil Spill: Coastal Wetland and Wildlife Impacts and Response

The explosion of the Deepwater Horizon drilling rig in the Gulf of Mexico on April 20, 2010, and the resulting oil spill began a cascade of effects on the coastal areas of the Gulf and on the wealth of species that inhabit those areas. This report addresses the importance of wetlands in general, the ecology of the coastal wetlands in the Gulf, impacts of oil spills on wetland habitats, response options, the implications of hurricane season for the spill's impacts, and cleanup and recovery issues. The emphasis is on the

nearshore environment, although a few species found in deeper waters...

The 2007-2009 Recession: Similarities to and Differences from the Past

According to the National Bureau of Economic Research (NBER), the U.S. economy was in a recession for 18 months from December 2007 to June 2009. It was the longest and deepest recession of the post-World War II era. The recession can be separated into two distinct phases. During the first phase, which lasted for the first half of 2008, the recession was not deep as measured by the decline in gross domestic product (GDP) or the rise in unemployment. It then deepened from the third quarter of 2008 to the first quarter of 2009. The economy continued to contract slightly in the second quarter...

What Effects Would the Expiration of the 2001 and 2003 Tax Cuts Have on the Economy?

In 2001 and 2003, Congress enacted major tax cuts (popularly referred to as the "Bush tax cuts"), the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. Congress is currently debating whether to extend some or all of these tax cuts that are scheduled to expire at the end of 2010. This report discusses the two main economic arguments against allowing the tax cuts to expire as scheduled, using historical evidence and by examining the current economic environment.

Mortgage Markets in Selected Developed Countries

The United States, Canada, Denmark, and Australia are advanced economies that share many features, but their approaches to financing homeownership have differed. As the U.S. Congress considers housing finance reform, the experiences of these other nations may suggest some potentially useful policy approaches.

In recent years, homeownership rates in the United States, Canada, and Australia have been similar: 66.9% in the United States, 68.4% in Canada, and 69.8% in Australia. Denmark’s homeownership rate of 54.0% is low for this group of nations and for countries with developed...

China’s Sovereign Wealth Fund: Developments and Policy Implications

China’s ruling executive body, the State Council, established the China Investment Corporation (CIC), a sovereign wealth fund, in September 2007 to invest $200 billion of China’s then $1.4 trillion in foreign exchange reserves. As with other sovereign wealth funds worldwide, the CIC’s existence allows China to invest its reserves in a wide range of assets, including stocks, bonds, and hedge funds. After a rocky start in which it incurred losses of 2.1% on its global investments in 2008 – caused in part by aftereffects of the global financial crisis of 2007 – the CIC’s rate of return in...

Securities Investor Protection Corporation

The Federal Debt: An Analysis of Movements from World War II to the Present

Financing the obligations of the United States has always been a central concern of Congress and the President. If policy decisions and economic conditions lead to levels of government spending which exceed revenue collection, the government will incur debt. Levels of federal debt are reported in terms of debt held by federal government accounts (intragovernmental), and gross (total) federal debt. Debt held by the public is the total amount the federal government has borrowed from the public and remains outstanding. Intragovernmental debt is the amount owed by the federal government to...

The Mexican Economy After the Global Financial Crisis

The state of Mexico’s economy is important for U.S. policymakers for many reasons, most significantly because a prosperous and democratic neighboring country is in the best interest of the United States. The two countries have strong economic, political, and social ties, which have direct policy implications related to bilateral trade, economic competitiveness, migration, and border security. In May 2010, President Barack Obama hosted Mexican President Felipe Calderón at a meeting in the White House in which the two leaders discussed key issues affecting the two countries. They agreed to...

Trade Remedy Legislation: Applying Countervailing Action to Nonmarket Economy Countries

Concern regarding the level of low-cost imports from China and other countries and its impact on U.S. firms and workers, combined with China’s limiting of the appreciation of its currency, have led some in Congress to introduce legislation proposing to make countervailing duty laws applicable to China and other nonmarket economy countries.

Countervailing duty laws provide for the assessment of additional duties on imports whose production and/or importation are found to be subsidized by a public entity in their country of origin and are injurious to a U.S. producer of similar merchandise....

Running Deficits: Positives and Pitfalls

Governments run deficits for several reasons. By running short-run deficits, governments can avoid raising taxes during economic downturns, which helps households smooth consumption over time. Running deficits can stimulate aggregate demand in the economy, thus giving policymakers a valuable fiscal policy tool to help support macroeconomic stability. In particular, short-run deficits may help boost economic activity when monetary policy loses its potency. When interest rates fall during an economic downturn, banks can become reluctant to lend when perceived lending risks outweigh...

Saving Rates in the United States: Calculation and Comparison

The amount of money saved has important economic consequences. Nationally, the amount of saving affects how much can be invested and ultimately the size of the capital stock. This report explains how national saving is measured, presents recent estimates of saving rates in the United States, and, for comparison, provides those of other major industrial countries.

Federal Business Taxation: The Current System, Its Effects, and Options for Reform

A foundation of the broad tax revisions implemented 24 years ago by the Tax Reform Act of 1986 was tax “neutrality”—the idea that economic efficiency and economic welfare are promoted if the distorting impact of taxes on business and other economic decisions is minimized. Based on this principle, the 1986 act broadened the tax base and reduced statutory tax rates set forth by the tax code. In time, however, the underlying thrust of tax policy has changed. Rather than neutrality and efficiency, recent business tax legislation has been guided more by a concern for promoting investment and...

Certain Temporary Tax Provisions Scheduled to Expire in 2009 (“Extenders”)

This report discusses numerous temporary tax provisions exist in the tax code. Often referred to as “extenders,” these provisions were originally enacted with an expiration date that has then been temporarily extended, in some cases numerous times.

The Dodd-Frank Wall Street Reform and Consumer Protection Act: Systemic Risk and the Federal Reserve

The recent financial crisis contained a number of systemic risk episodes, or episodes that caused instability for large parts of the financial system. The lesson some policymakers have taken from this crisis is that a systemic risk or “macroprudential” regulator is needed to prevent similar episodes in the future. But what types of risk would this new regulator be tasked with preventing, and is it the case that those activities are currently unsupervised?

Some of the major financial market phenomena that have been identified as posing systemic risk include liquidity problems; “too big to...

Frequently Asked Questions about IMF Involvement in the Eurozone Debt Crisis

On May 2, 2010, the Eurozone member states and the International Monetary Fund (IMF) announced an unprecedented €110 billion (about $145 billion) financial assistance package for Greece. The following week, on May 9, 2010, EU leaders announced that they would make an additional €500 billion (about $636 billion) in financial assistance available to vulnerable European countries, and suggested that the IMF could contribute up to an additional €220 billion to €250 billion (about $280 billion to $318 billion). This report answers frequently asked questions about IMF involvement in the Eurozone...

Unemployment and Economic Recovery

This report examines the relationship between economic growth and the unemployment rate to anticipate possible future developments.

The European Union's Response to the 2007-2009 Financial Crisis

This report examines the EU responses to the financial crisis through changes to the financial regulatory structure at the EU level as well as the member country level. The countries examined are Germany and the United Kingdom, which have single financial regulators; the Netherlands, which has a twin peaks regulatory structure; and Spain, which has a functional structure.

Speed of Presidential and Senate Actions on Supreme Court Nominations, 1900-2010

The speed with which appointments to the Supreme Court move through various stages in the nomination-and-confirmation process is often of great interest not only to all parties directly involved, but, as well, to the nation as a whole. This report provides information on the amount of time taken to act on all Supreme Court nominations occurring between 1900 and the present. It focuses on the actual amounts of time that Presidents and the Senate have taken to act (as opposed to the elapsed time between official points in the process). For example, rather than starting the nomination clock...

FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Other Programs

The Administration requested $64.3 billion in FY2010 supplemental appropriations: $5.1 billion to replenish the U.S. Disaster Relief Fund administered by the Federal Emergency Management Agency (FEMA); $33 billion for the Department of Defense (DOD) primarily for deploying 30,000 additional troops to Afghanistan; $4.5 billion in war-related foreign aid; and $2.8 billion for Haiti earthquake-related relief and reconstruction aid; $243 million for activities related to the Deepwater Horizon oil spill; $600 million for border security, and $129 million to reduce backlogs in patent requests;...

The FY2011 Federal Budget

This report provides an historical overview of the budget trends through the most recently completed fiscal year (2009). It discusses major budgetary challenges over the past several fiscal years given the current economic conditions and provides an in-depth discussion of the FY2011 budget process. Finally, it provides context for the issues facing the country's federal budget over the long term. This report will be updated as events warrant.

Deepwater Horizon Oil Spill: Selected Issues for Congress

Insurance and Financial Regulatory Reform in the 111th Congress

This report discusses the broad financial regulatory reform legislation has been advanced by the Obama Administration and by various Members of Congress in the aftermath of the recent financial crisis.

Financial Turmoil: Federal Reserve Policy Responses

The Federal Reserve (Fed) has been central in the policy response to the financial turmoil that began in August 2007. It has sharply increased reserves to the banking system through open market operations and lowered the federal funds rate and discount rate on several occasions. Since December 2008, it has allowed the federal funds rate to fall close to zero. As the crisis deepened, the Fed’s focus shifted to providing liquidity directly to the financial system through new policy tools. Through new credit facilities, the Fed first expanded the scale of its lending to the banking system and...

Potential Stafford Act Declarations for the Gulf Coast Oil Spill: Issues for Congress

The Robert T. Stafford Disaster Relief and Emergency Assistance Act, P.L. 93-288, presents several options, and could provide a number of programs, to address the Gulf Coast oil spill. That spill is currently being addressed by a law fashioned for that purpose, the Oil Pollution Act of 1990, P.L. 101-380.

An emergency declaration under the Stafford Act would appear a potential approach to the current situation since it is intended to lessen the impact of an imminent disaster. A major disaster declaration would open up more Stafford Act programs that might be especially appropriate for the...

Measuring Equity in Farm Support Levels

Job Loss and Infrastructure Job Creation Spending During the Recession

After the long economic expansion that characterized much of the current decade, the nation entered its 11th postwar recession in December 2007. The size of job losses and the comparison to the Great Depression intensified congressional interest in passing legislation early in 2009 aimed at encouraging job creation and warding off further cuts in employment.

To mitigate all but one recession since the 1960s, Congress chose to increase federal spending on public works (i.e., infrastructure). Public works expenditures traditionally have gone to certain types of construction activities (e.g.,...

Coal Mine Safety and Health

The U.S. Trade Deficit: Causes, Consequences, and Policy Options

The current account balance is the nation’s most comprehensive measure of international transactions. It has three component balances: the goods and services balance, the investment income balance, and net unilateral transfers. These are all transactions thought to be closely related to current production, consumption, and income. For the United States, the size of the current account deficit is largely the refection of a similarly sized goods and services deficit (i.e., trade deficit).

The U.S. current account (trade) deficit grew steadily from 1992 through 2006. In 2007, however, the...

Deepwater Horizon Oil Spill Disaster: Risk, Recovery, and Insurance Implications

This report begins with a review of the Deepwater Horizon incident and identifies the limits of liability facing the operators of offshore oil rigs. The next two sections of the report examine risk management in the offshore energy exploration and production business, the scope of the oil spill financial responsibility and insurance requirements, and the marine insurance industry that offers specialized coverage for offshore oil and gas firms. The fourth section outlines the various approaches to compensating oil pollution victims, including compensation funds, commercial insurance,...

An Economic Analysis of the Homebuyer Tax Credit

There have been three different versions of the homebuyer tax credit enacted since the summer of 2008. In July 2008, Congress enacted a first-time homebuyer tax credit as part of the Housing and Economic Recovery Act of 2008 (HERA; P.L. 110-289). The tax credit was originally set to expire on July 1, 2009. The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) increased the tax credit’s value and extended its expiration date to December 1, 2009. The Worker, Homeownership, and Business Assistance Act of 2009 (WHBAA; P.L. 111-92) extended the tax credit through the first half...

North Korea: Back on the Terrorism List?

Whether North Korea should be included on the U.S. list of terrorism-supporting countries has been a major issue in U.S.-North Korean diplomacy since 2000, particularly in connection with negotiations over North Korea’s nuclear program. North Korea demanded that the Clinton and Bush Administrations remove it from the terrorism support list. On October 11, 2008, the Bush Administration removed North Korea from the terrorism list.

This move was one of the measures the Bush Administration took to implement a nuclear agreement that it negotiated with North Korea in September 2007 and...

From Solicitor General to Supreme Court Nominee: Responsibilities, History, and the Nomination of Elena Kagan

On May 10, 2010, President Obama nominated Solicitor General Elena Kagan to replace retiring Justice John Paul Stevens. If confirmed, Elena Kagan would be the first serving Solicitor General to be appointed to the Court since the elevation of Thurgood Marshall in 1967. She would also be only the fifth of 111 Justices to come to the bench with such experience.

Given that Solicitor General Kagan has made few public statements on important legal and policy issues, some have looked to her record as Solicitor General for some indication of her views. Others have looked to her time as Solicitor...

The Economic Effects of Capital Gains Taxation

One provision of the 1913 individual income tax that generated a great deal of confusion was the taxation of income from the sale of property (i.e., capital gains income). This initial confusion has led to almost 100 years of legislative debates over capital gains. Beginning in 1922 capital gains were first subject to lower tax rates than ordinary income. This preferential treatment has continued throughout most of the history of the income tax. Proposals dealing with the taxation of capital gains have ranged from the outright elimination of capital gains taxation to the reduction of...

World Trade Organization (WTO): Issues in the Debate on Continued U.S. Participation

Following World War II, the United States led efforts to establish an open and nondiscriminatory trading system with the expressed goal of raising the economic well-being of all countries and bolstering world peace. These efforts culminated in the creation of the General Agreement on Tariffs and Trade (GATT) in 1948, a provisional agreement on tariffs and trade rules that governed world trade for 47 years. The World Trade Organization (WTO) succeeded the GATT in 1995 and today serves as a permanent body that administers the rules and agreements negotiated and signed by 153 participating...

The Size and Role of Government: Economic Issues

The size and role of the government is one of the most fundamental and enduring debates in American politics. Economics can be used to analyze the relative merits of government intervention in the economy in specific areas, but it cannot answer the question of whether there is “too much” or “too little” government activity overall. That is not to say that one cannot find many examples of government programs that economists would consider to be a highly inefficient, if not counterproductive, way to achieve policy goals. Reducing inefficient government spending would benefit the economy;...

Intellectual Property Rights and Access to Medicines: International Trade Issues

A patent, which is a form of intellectual property right (IPR), is a legal, exclusive right granted for the invention of a new product, process, organism, design, and plant. It allows the right holder to exclude others from making, using, or selling the protected invention for a period of 20 years. Patents constitute the most common method for governments to encourage research and development (R&D) in order to find pharmaceutical treatments and cures for diseases and other illnesses.

IPR protection and enforcement have evolved from an area primarily of national concern to an area of...

Payment Card Interchange Fees: An Economic Assessment

Interchange fees in the processing of credit and debit cards have become controversial. An interchange fee is paid by the merchant’s bank to a cardholder’s bank (that issued the card) after the cardholder purchases goods or services with a payment (credit or debit) card. Merchants and cardholders assert that they must accept excessive and increasing interchange fees set by the card associations such as Visa and MasterCard and member card-issuing banks. Interchange fees have been rising since the 1990s, despite diminishing fraud losses and technological advances in communications that lower...

NAFTA and the Mexican Economy

The North American Free Trade Agreement (NAFTA), in effect since January 1994, plays a very strong role in the bilateral economic relationship between Mexico and the United States. The two countries are also closely tied in areas not directly related to trade and investment such as security, environmental, migration, and health issues. The effects of NAFTA on Mexico and the Mexican economic situation have impacts on U.S. economic and political interests. A number of policymakers have raised the issue of revisiting NAFTA and renegotiating parts of the agreement. Some important factors in...

Financial Regulatory Reform and the 111th Congress

This report reviews issues related to financial regulation. It provides brief descriptions of the two main comprehensive reform bills in the 111th Congress that address these issues.

Tax Options for Financing Health Care Reform

Several tax options were proposed to provide financing for health care reform. President Obama initially proposed restricting itemized deductions for high-income taxpayers, along with some narrower provisions. H.R. 3962 passed in the House on November 14, 2009; its largest source of increased revenues was from additional income taxes for higher-income taxpayers. On December 24, 2009, the Senate adopted H.R. 3590, whose revenue provisions are similar to those in the bill reported by the Senate Finance Committee (S. 1796). Taxing insurance companies on high-cost employer plans was the...

Financial Regulatory Reform: Systemic Risk and the Federal Reserve

This report defines the potential duties and responsibilities of a systemic risk regulator, relating those duties to events that potentially contributed to the recent crisis. It then identifies the powers that would need to be given to a regulator to perform those duties, and compares those powers and responsibilities to the Fed's existing powers and responsibilities. It discusses advantages and disadvantages of giving those responsibilities to the Fed or the executive branch. It also includes a brief overview of major elements of the Administration's proposal, H.R. 4173, which passed the...

Financial Regulatory Reform: Consumer Financial Protection Proposals

This report provides a brief summary of the Consumer Financial Protection Agency Act of 2009 (the CFPA Act or the Act) and delineates some of the substantive differences between it and H.R. 4173, Title IV, as it passed the House, and S. 3217, Title X, as it passed the Senate. It then analyzes some of the policy implications of the proposal, focusing on the separation of safety and soundness regulation from consumer protection, financial innovation, and the scope of regulation. The report then raises some questions regarding state law preemption, sources of funding, and rulemaking...

Forest Carbon Markets: Potential and Drawbacks

Forests are major carbon sinks (storehouses), and activities that alter forests can release or sequester carbon dioxide (CO2), the most common greenhouse gas (GHG). Some carbon markets have been formed under mandatory GHG reduction regimes, such as the Kyoto Protocol and various regional and state initiatives in the United States. Other markets have formed for voluntary efforts to reduce GHG emissions. Offsets, or credits for sequestering carbon or reducing emissions in unregulated sectors, are typically allowed in both mandatory and voluntary markets. Forestry activities are among the...

Loss Exposure and the Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) was established as an independent government corporation under the authority of the Banking Act of 1933, also known as the Glass- Steagall Act (P.L. 73-66, 48 Stat. 162, 12 U.S.C.), to insure bank deposits. The FDIC is funded through insurance assessments collected from its member depository institutions and held in what is now known as the Deposit Insurance Fund (DIF). This report begins with an overview of the FDIC, followed by an explanation of the loss exposure and total risk to the DIF. Next, the report discusses issues regarding the...

Proxy Access Reform Being Considered by the SEC: An Overview

This report discusses the Securities and Exchange Commission (SEC) role that oversees matters related to the content of proxy materials.

Haiti Earthquake: Crisis and Response

The largest earthquake ever recorded in Haiti devastated parts of the country, including the capital, on January 12, 2010. The quake, centered about 15 miles southwest of Port-au-Prince, had a magnitude of 7.0. A series of strong aftershocks have followed. Experts estimate the earthquake caused $8 to $14 billion in damage. Approximately 3 million people, roughly one-third of the overall population, have been affected by the earthquake with estimates ranging from 1.2 to 2 million people displaced. The government of Haiti is reporting an estimated 230,000 deaths and 300,600 injured. In the...

Russia’s Economic Performance and Policies and Their Implications for the United States

Until recently, the Russian economy was one of the fastest growing economies in the world. The growth brought an improvement in the standard of living of the average Russian citizen and also brought economic stability that Russia had not experienced in at least a decade. This strong economic performance had been a major factor in the popular support that the Russian leadership enjoyed and was also arguably a factor in the boldness with which that leadership reasserted Russia’s status as a world power, challenging the United States, Europe, the neighboring former Soviet states in economic...

Consolidation and Concentration in the U.S. Dairy Industry

The changing structure of U.S. agriculture has generated concerns about reduced competition in a wide variety of agricultural products markets, including dairy. Two primary areas of concern in the dairy industry are consolidation—the shift to fewer and larger firms—and industry concentration—the extent to which a small number of firms control most of the sales. On August 5, 2009, the Obama Administration announced that the U.S. Department of Agriculture (USDA) and the Department of Justice would hold several public workshops to consider competition issues affecting agriculture and the...

FDA Regulation of Follow-On Biologics

On March 23, 2010, President Obama signed into law a comprehensive health care reform bill, the Patient Protection and Affordable Care Act (PPACA; P.L. 111-148). PPACA establishes a new regulatory authority within the Food and Drug Administration (FDA) by creating a licensure pathway for follow-on biologics, also called biosimilars, and authorizing the agency to collect associated fees.

A biologic is a preparation, such as a drug or a vaccine, that is made from living organisms. A follow-on biologic, or biosimilar, is similar to the brand-name (innovator) product made by the...

Iran’s Economic Conditions: U.S. Policy Issues

The Islamic Republic of Iran, a resource-rich and labor-rich country in the Middle East, is a central focus of U.S. national security policy. The United States asserts that Iran is a state sponsor of terrorism and that Iran’s uranium enrichment activities are for the development of nuclear weapons. To the extent that U.S. sanctions and other efforts to change Iranian state policy target aspects of Iran’s economy as a means of influence, it is important to evaluate Iran’s economic structure, strengths, and vulnerabilities.

Since 2000, Iran has enjoyed broad-based economic growth. However,...

Estimating Offset Supply in a Cap-and-Trade Program

If allowed as a compliance option in a greenhouse gas (GHG) emission reduction program (e.g., a cap-and-trade system), offsets have the potential to provide considerable cost savings and other benefits. However, offsets have generated considerable controversy, primarily over the concern that illegitimate offsets could undermine the ultimate objective of a cap-and-trade program: emission reduction.

An offset is a measurable reduction, avoidance, or sequestration of GHG emissions from a source not covered by an emission reduction program. An estimate of the quantity and type of offset...

Interest Payments on the Federal Debt: A Primer

This report provides a brief overview of the federal debt and net interest payments. Of the three broad categories of federal spending, the only category that cannot be reduced by legislative action is net interest payments. The report provides information about federal debt, interest payments on the federal dept, and determinants of net interest payments.

North Korea’s Second Nuclear Test: Implications of U.N. Security Council Resolution 1874

The United Nations Security Council unanimously passed Res. 1874 on June 12, 2009, in response to North Korea’s second nuclear test. The resolution puts in place a series of sanctions on North Korea’s arms sales, luxury goods, and financial transactions related to its weapons programs, and calls upon states to inspect North Korean vessels suspected of carrying such shipments. The resolution does allow for shipments of food and nonmilitary goods. As was the case with an earlier U.N. resolution, 1718, that was passed in October 2006 after North Korea’s first nuclear test, Resolution 1874...

Capturing CO2 from Coal-Fired Power Plants: Challenges for a Comprehensive Strategy

Any comprehensive approach to substantially reduce greenhouse gases must address the world’s dependency on coal for one-quarter of its energy demand, including almost half of its electricity demand. To maintain coal in the world’s energy mix in a carbon-constrained future would require development of a technology to capture and store its carbon dioxide emissions. This situation suggests to some that any greenhouse gas reduction program be delayed until such carbon capture technology has been demonstrated. However, technological innovation and the demands of a carbon control regime are...

East Asian Regional Architecture: New Economic and Security Arrangements and U.S. Policy

The global financial crisis, the end of the Cold War, the rise of China, globalization, free trade agreements, the war on terror, and an institutional approach to keeping the peace are causing dramatic shifts in relationships among countries in East Asia. A new regional architecture in the form of trade, financial, and political arrangements among countries of East Asia is developing that has significant implications for U.S. interests and policy. This report examines this regional architecture with a focus on China, South Korea, Japan, and Southeast Asia. The types of arrangements include...

Economic Impacts of Prison Growth

This report provides an economic overview of the correctional sector as background for the unfolding debate over spending and other policies. It begins with information on the growth in prison populations in public and in private prisons and also briefly explores the economic impacts of prison location. It is not intended a study of the effectiveness of sentencing and other laws, nor of evolving polices aimed at reducing recidivism and prison populations.

Immigration: The Effects on Low-Skilled and High-Skilled Native-Born Workers

The large influx of immigrants in recent decades has led to an equally long debate over their effect on the labor market outcomes of native-born workers. Economic theory posits that an increase in the supply of labor, such as from immigration, will reduce the wage employers are willing to pay all workers (native-born and foreign-born) in a given labor market. As a result, some of the workers who had been earning a higher wage before the increase in labor supply will be unwilling to accept a lower wage and they will leave that labor market. The economic model assumes, however, that labor is...

Federal Financial Services Regulatory Consolidation: Structural Response to the 2007-2009 Financial Crisis

This report provides a brief history and overview of the U.S. federal financial services regulatory structure and examines the regulatory structural changes the three major federal government proposals would make to remedy the causes of the financial crisis. It concludes with a discussion of some possible implications of reform.

Climate Change: EU and Proposed U.S. Approaches to Carbon Leakage and WTO Implications

The United States has proposed, and the European Union (EU) developed, policies to mitigate the potential economic and environmental (i.e., “carbon leakage”) impacts of carbon policies on energy- or greenhouse gas-intensive, trade-exposed industries. While studies have found little effect of carbon policies on EU competitiveness in the present, the EU decision to move toward auctioning of allowances in the future has spurred development of criteria to extend potential availability of free allowances to exposed industries to 2020. In a December 2009 decision, the European Commission (EC)...

Credit Rating Agencies and Their Regulation

Credit rating agencies (CRAs) are expected to provide investors with an informed and unbiased view on securities’ debt risk (also referred to as credit risk), the risk that issuers will fail to make promised interest or principal payments when they are due. The agencies provide judgments (“opinions”) on the creditworthiness of bonds issued by a wide spectrum of entities, including corporations, nonprofit firms, special purpose entities, sovereign nations, and state and municipal governments. They take the form of ratings that are usually displayed in a letter hierarchical format: AAA being...

Supreme Court Justices: Demographic Characteristics, Professional Experience, and Legal Education, 1789-2010

This report provides an introduction of Supreme Court appointments in historical context. The report discusses the Supreme Court Justices demographic characteristics, professional background, and educational background.

Key Issues in Derivatives Reform

This report provides background related to financial derivatives. It also analyzes market structure and regulation, derivatives reform, legislative proposals and exemptions for end users, safeguards for uncleared over-the-counter (OTC) swaps, and hypothetical examples.

Macroprudential Oversight: Monitoring Systemic Risk in the Financial System

Recent innovations in finance, while increasing the capacity to borrow and lend, resulted in a large volume of banking transactions occurring outside of traditional banking institutions. Also, even though existing regulators supervise individual banks for safety and soundness, there are risks that do not reside with those institutions but may still adversely affect the banking system as a whole. Macroprudential policy refers to a variety of tasks designed to defend the broad financial system against threats to its stability. Responsibilities include monitoring the system for systemic risk...

The Global Economic Crisis: Impact on Sub-Saharan Africa and Global Policy Responses

Sub-Saharan Africa has been strongly affected by the global recession, despite initial optimism that the global financial system would have few spillover effects on the continent. The International Monetary Fund (IMF) estimated in 2009 that average economic growth in Africa would slow to 1%, from an annual average of over 6% to 1% over the previous five years, before rebounding to 4% in 2010. As a region, Africa is not thought to have undergone a recession in 2009. However, most African countries are thought to require high rates of economic growth in order to outpace population growth and...

CRS Issue Statement on Health Care Reform

Is the U.S. Current Account Deficit Sustainable?

America’s current account (CA) deficit (the trade deficit plus net income payments and net unilateral transfers) rose as a share of gross domestic product (GDP) from 1991 to a record high of about 6% of GDP in 2006. It began falling in 2007, and reached 3% of GDP in 2009. The CA deficit is financed by foreign capital inflows. Many observers have questioned whether such large inflows are sustainable. Even at 3% of GDP, the deficit is probably still too large to be permanently sustained, and many economists fear that the decline is temporary and caused by the recession. Further, a large...

The U.S. Motor Vehicle Industry: Confronting a New Dynamic in the Global Economy

This report provides an in-depth analysis of the 2009 crisis in the U.S. auto industry and its prospects for regaining domestic and global competitiveness. It also analyzes business and policy issues arising from the unprecedented restructurings that occurred within the industry. The starting point for this analysis is June-July 2009, with General Motors Company (GM or new GM) and Chrysler Group LLC (or new Chrysler) incorporated as new companies, having selectively acquired many, but not all, assets from their predecessor companies.

Public Health, Workforce, Quality, and Related Provisions in the Patient Protection and Affordable Care Act (P.L. 111-148)

On March 23, 2010, President Obama signed into law a comprehensive health care reform bill, the Patient Protection and Affordable Care Act (PPACA; P.L. 111-148). Health care reform has been the Obama Administration’s top domestic priority, driven by concerns about the growing ranks of the uninsured and the unsustainable growth in spending on health care and health insurance. Improving access to care and controlling rising costs are seen to require changes to both the financing and delivery of health care.

Both the House and the Senate passed comprehensive health care reform bills last...

How Agencies Monetize “Statistical Lives” Expected to Be Saved By Regulations

Federal health, safety, and environmental regulations are often designed to reduce the risk of death, illness, or injury from exposure to a particular hazard (e.g., arsenic in drinking water or rollover car crashes). As part of an economic analysis required by Executive Order 12866, the issuing agencies often place a monetary value on these expected health benefits by determining the number of “statistical lives” that the rules are expected to extend or save, and then multiplying that number by an estimated “value of a statistical life” (VSL). For example, if 100,000 people are each...

The Impact of Major Legislation on Budget Deficits: 2001 to 2009

This report examines to what extent major legislative changes from 2001 to 2009 caused the budget to move from surplus to deficit. Legislative actions taken in 2009 increased the FY2009 deficit by $509 billion, whereas legislative actions taken between 2001 and 2008 increased the FY2009 deficit by $903 billion. Furthermore, legislative changes have cumulatively increased federal budget deficits over FY2001 to FY2009 by $5.4 trillion.

Public Health, Workforce, Quality, and Related Provisions in H.R. 3962

Health care reform is at the top of the domestic policy agenda for the 111th Congress, driven by concerns about the growing ranks of the uninsured and the unsustainable growth in spending on health care and health insurance. Improving access to care and controlling rising costs are seen to require changes to both the financing and delivery of health care. Experts point to a growing body of evidence of the health care system’s failure to consistently provide high-quality care to all Americans.

The health reform debate has encompassed a number of proposals to address these challenges and...

Tax Reform: An Overview of Proposals in the 111th Congress

This report primarily covers fundamental tax reform by discussing background and proposals for review during the 111th Congress. It includes sections about fundamental tax reform, the relationship between income and consumption, what should be taxed, types of broad-based consumption taxes, international comparisons, other types of fundamental tax reform, legislative proposals and other legislation, and sections looking at other specific kinds of taxation.

Ongoing Government Assistance for American International Group (AIG)

This report discusses government assistance for American International Group (AIG), the future of AIG and the ultimate government cost of the intervention that are unclear. The Troubled Asset Relief Program (TARP) has been the primary vehicle for most of these actions.

Federal Complaint-Handling, Ombudsman, and Advocacy Offices

Federal complaint-handling, ombudsman, and advocacy offices have different forms, capacities, and designations. This report, which reviews the state of research in this field and the heritage of such offices, examines and compares them, along with recent legislative developments and past proposals to establish a government-wide ombudsman. In so doing, the report identifies the basic characteristics of these offices, recognizing differences among them with regard to their powers, duties, jurisdictions, locations, and resources, as well as control over them. This study covers only...

Charitable Contributions: The Itemized Deduction Cap and Other FY2011 Budget Options

The Administration’s 2010 and 2011 budget outlines contain a proposal to cap the value of itemized deductions at 28%, for high-income taxpayers. In the 2010 proposal, the expected revenue was dedicated to addressing health care issues; as other sources are expected to finance health care, the proposal is now part of the increased taxes on upper income taxpayers. This proposal has generated considerable concern about its potential negative effect on charitable contributions. This concern has been heightened because charities are having difficulties in the current economic climate. The...

The Magnitude of Changes That Would Be Required to Balance the FY2011 Budget

This report lays out generic scenarios for balancing the budget in the next fiscal year. Although these are not policy options that are likely to be enacted, they are meant to offer simple examples to gauge the scope of tradeoffs that would be required if policymakers eventually decide to bring the budget back to balance. If changes are postponed or stretched over a longer time period, they would need to be larger because of higher debt service.

Earthquake Risk, Insurance, and Recovery: Issues for Congress

This report examines earthquake catastrophe risk and insurance in the United States in light of recent developments, particularly the devastating earthquakes in Haiti and Chile. It examines both traditional and non-traditional approaches for financing recovery from earthquake losses as well as challenges in financing catastrophe losses with insurance.

The National Debt: Who Bears Its Burden?

The United States has been free of a national debt for only two years, 1834 and 1835. In its first year, 1790, the country faced a debt of $75 million. From FY1998 to FY2001, the federal government ran budget surpluses. Since then, the budget has returned to deficit, and the debt had risen to $7.5 trillion by 2009. It rose to a high of 108.6% of gross domestic product (GDP) at the end of World War II; declined to a post-World War II low of 23.8% of GDP in 1974; and, then, rose to another high of 49.5% of GDP in 1993.

The national debt results from borrowing to finance budget deficits....

Armenia, Azerbaijan, and Georgia: Security Issues and Implications for U.S. Interests

The South Caucasus region has been the most unstable in the former Soviet Union in terms of the number, intensity, and length of ethnic and civil conflicts. Other emerging or full-blown security problems include crime, corruption, terrorism, the proliferation of weapons of mass destruction, and narcotics trafficking. The regional governments have worked to bolster their security by combating terrorism, limiting political dissent they view as threatening, revamping their armed forces, and seeking outside assistance and allies.

The roles of neighbors Iran, Russia, and Turkey have been of...

Iceland's Financial Crisis

This report discusses the banking collapse in Iceland. Iceland's banking system had collapsed as a result of a culmination of a series of decisions the banks made that left them highly exposed to disruptions in financial markets. The collapse of the banks raised questions for U.S. leaders and others about supervising banks that operate across national borders, especially as it has become increasingly difficult to distinguish the limits of domestic financial markets.

Chile Earthquake: U.S. and International Response

On February 27, 2010, an earthquake of magnitude 8.8 struck off the coast of central Chile. Centered 70 miles northeast of Chile’s second-largest city, Concepción, at a depth of 22 miles, the earthquake was the second largest ever recorded in Chile and the fifth largest recorded worldwide since 1900. Over 100 aftershocks of magnitude 5.0 or greater were recorded following the initial earthquake. The earthquake and subsequent tsunami, which struck Chile’s coast roughly 20 minutes after the earthquake and moved 2,000 feet onto shore in some places, devastated parts of the country. Although...

Financial Services and General Government (FSGG): FY2010 Appropriations

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and 26 independent agencies. Among the independent agencies funded by the bill are the General Services Administration (GSA), the Office of Personnel Management (OPM), the Small Business Administration (SBA), the Security and Exchange Commission (SEC), and the United States Postal Service (USPS).

On May 7, 2009, the Obama Administration delivered its FY2010 budget request to...

Prosecutorial Discretion in the Context of Corporate Attorney-Client Relations

The Justice Department enjoys prosecutorial discretion to bring criminal charges against a corporation, its culpable officers or employees, or both. For a corporation, indictment alone can be catastrophic, if not fatal, in some instances. The Thompson Memorandum, since replaced with guidelines in the U. S. Attorneys Manual, described the policy factors to be considered in the exercise of prosecutorial discretion. Two of the factors explicitly mentioned were whether a corporation had waived its privileges and whether it had cut off the payment of attorneys’ fees for its officers and...

Firms That Incorporate Abroad for Tax Purposes: Corporate “Inversions” and “Expatriation”

In the early 2000s, reports indicated that an increasing number of U.S. firms have altered their structure by substituting a foreign parent corporation for a domestic one. Such “inversions” typically involved the creation of a new foreign corporation in a country with low tax rates (a “tax haven”) that becomes the parent of the firm’s foreign and U.S. component corporations. A chief motive for inversions was apparently savings by firms on their U.S. corporate income tax. One source of savings was tax on a firm’s foreign income: the United States taxes corporations chartered in the United...

Greenhouse Gas Emission Drivers: Population, Economic Development and Growth, and Energy Use

In the context of climate change and possible responses to the risk associated with it, three variables strongly influence the levels and growth of greenhouse gas (GHG) emissions: population, income (measured as per capita gross domestic product [GDP]), and intensity of emissions (measured as tons of greenhouse gas emissions per million dollars of GDP).

(Population) × (per capita GDP) × (Intensityghg) = Emissionsghg

This is the relationship for a given point in time; over time, any effort to change emissions alters the exponential rates of change of these variables. This means that the...

The Federal Home Loan Bank System and Resolution of a Failure

The Federal Home Loan Bank system is a cooperative, government-sponsored enterprise, created to provide liquidity to the nation’s lenders with a special focus on low and moderate-income housing and community development, all under the supervision of the recently created Federal Housing Finance Agency. Each Federal Home Loan Bank (FHLBank) essentially acts as a lender to lenders. The 12 regional banks engage in no direct lending to the public. Instead, member banks turn to the FHLBank for on-demand low interest loans, which the member bank can then use to issue mortgages or other loans to...

Accelerated Vehicle Retirement for Fuel Economy: "Cash for Clunkers"

This report outlines the key provisions of the Consumer Assistance to Recycle and Save (CARS) program established by P.L. 111-32, which provide rebates to prospective purchasers toward the purchase of new, fuel-efficient vehicles, provided the trade-in vehicles are scrapped. It discusses the impact of the program on the economy and also summarizes similar programs in other industrial countries.

Iraq: Oil and Gas Sector, Revenue Sharing, and U.S. Policy

Development in Iraq’s oil and natural gas sector is proceeding, amid ongoing debates. Iraqis differ strongly on a number of key issues, including the proper role and powers of federal and regional authorities in regulating oil and gas development; the terms and extent of potential foreign participation in the oil and gas sectors; and proposed formulas and mechanisms for equitably sharing oil and gas revenue. Concurrent, related discussions about the administrative status of the city of Kirkuk and proposed amendments to articles of Iraq’s constitution that outline federal and regional oil...

War Bonds in the Second World War: A Model for a New Iraq/Afghanistan War Bond?

This report discusses the high costs of fighting the wars in Iraq and Afghanistan that have rekindled congressional interest in the concept of the sale of a Treasury security to help finance these war costs.

Potential Implications of a Carbon Offset Program to Farmers and Landowners

Numerous studies have attempted to estimate the economic effects of potential climate legislation currently being considered by Congress. These studies have examined both the economy-wide effects, as well as the effects to specific sectors. Two principal reports on the economic effects to the U.S. agriculture and forestry sectors were conducted by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Agriculture (USDA). As described by USDA, these studies generally concluded that the overall economic costs to the agricultural community of the proposed legislation would...

Jobs for Main Street Act: Education, Training and Direct Assistance Provisions

The Obama Administration and Congress continue to grapple with high rates of unemployment despite some tentative signs of economic recovery. On December 8, 2009, President Obama outlined a series of proposals intended to accelerate job growth, focusing on incentives to small businesses, spending on infrastructure projects, and job creation through energy initiatives. The President also signaled support for the extension of some of the direct assistance provisions included in the American Recovery and Reinvestment Act (ARRA, P.L. 111-5), including Unemployment Compensation (UC) benefits and...

Distribution of Small Business Ownership and Income by Individual Tax Rates and Selected Policy Issues

Some lawmakers have expressed concern over several proposals being considered in the current Congress to raise the tax burden on high-income individuals. Of particular concern are a proposal by the Obama Administration to allow the top two individual marginal tax rates (currently 33% and 35%) to return to their pre-2001 levels of 36% and 39.6%, starting in 2011, and a provision in the health care reform bill passed by the House (H.R. 3962) to impose a 5.4% surtax on the modified adjusted gross incomes (MAGIs) of single filers above $500,000 and the MAGIs of joint filers above $1 million,...

Health Reform and the 111th Congress

The health reform debate in the 111th Congress continued and expanded upon the work begun in the 110th Congress. On November 12, 2008, the chairman of the Senate Finance Committee, Senator Baucus, released a white paper detailing his principles for health reform. This provided a framework for work within the committee for the 111th Congress. Several bills were introduced when the 111th Congress first convened, and these bills focused on a broad spectrum of approaches to health reform.

On November 7, 2009, the House passed H.R. 3962, the Affordable Health Care for America Act. H.R. 3962 is...

Reverse Mortgages: Background and Issues

Costa Rica: Background and U.S. Relations

Costa Rica is a politically stable Central American nation with a relatively well-developed economy. Former president (1986-1990) and Nobel-laureate Oscar Arias of the historically center-left National Liberation Party was elected President in 2006. Throughout his term, Arias has advanced so-called “third-way” policies, embracing his party’s traditional support for social welfare programs while rejecting state-led development in favor of market-oriented economic policies. Considerable economic growth and social protection programs have provided Costa Rica’s citizens with a relatively high...

Pipeline Safety and Security: Federal Programs

This report discusses congressional interest in securing the nation's pipelines. Nearly half a million miles of oil and natural gas transmission pipeline crisscross the United States. While an efficient and fundamentally safe means of transport, many pipelines carry hazardous materials with the potential to cause public injury and environmental damage.

Credit Union Member Business Loans

The Global Financial Crisis: Analysis and Policy Implications

The world appears to be recovering from the global recession that has caused widespread business contraction, increases in unemployment, and shrinking government revenues. Although the industrialized economies have stopped contracting, for many, unemployment is still rising. The United States likely hit bottom in June 2009, but numerous small banks and households still face huge problems in restoring their balance sheets, and unemployment has combined with sub-prime loans to keep home foreclosures at a high rate. Nearly all industrialized countries and many emerging and developing nations...

The Federal Government Debt: Its Size and Economic Significance

This report explains the different measures of the U.S. government debt, discusses the historical growth in the debt, identifies the current owners of the debt, presents comparisons with government debt in other countries, and examines the potential economic risks associated with a growing federal debt.

The Economics of the Federal Budget Deficit

The Congressional Budget Office (CBO) estimates that the federal budget deficit for FY2009 was $1,414 billion, triple the $459 billion deficit recorded in FY2008. The CBO expects the deficit for FY2010 to be $1,349 billion. The estimate for 2010 is based on current law. The budget deficit in FY2009 was, in dollar terms, unprecedented. Compared to the overall economy, the $1.4 trillion budget deficit equaled 9.9% of gross domestic product (GDP). In 1943, the budget deficit reached 30.3% of GDP. Since 1946 and before now, the largest the budget deficit had been, relative to the overall...

Mandatory Flood Insurance Purchase in Remapped Residual Risk Areas Behind Levees

This report examines the amount of flood insurance that must be purchased (and retained) on loans secured by real property located in federally designated special flood hazard areas (SFHAs).

Government Interventions in Response to Financial Turmoil

This report reviews new programs introduced and other actions taken by the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation in response to the recent financial crisis. It does not cover longstanding programs such as the Fed's discount window and FDIC receivership of failed banks.

U.S. Global Health Assistance: Background, Priorities, and Issues for the 111th Congress

U.S. funding for global health activities has grown significantly over the past decade, from $1.8 billion in FY2001 to $8.5 billion in FY2010. During this time period, Congress has significantly increased funding for responses against infectious disease outbreaks, including the 2009 influenza pandemic (H1N1), H5N1 avian influenza (avian flu), human immunodeficiency/acquired immunodeficiency syndrome (HIV/AIDS), tuberculosis (TB), and malaria. U.S. agencies and departments also supplement funds that Congress appropriates for these purposes with funds from their discretionary...

The German Economy and U.S.-German Economic Relations

Germany is the world’s fifth largest economy and the largest in Europe, accounting for about one-fifth of the European Union’s (EU) GDP. Germany is also the largest European trade and investment partner of the United States. Mutually profitable and growing U.S.-German commercial ties historically have been facilitated by a strong German economy. The health and functioning of the German economy, as well as its approaches to international economic policy issues, thus, are of considerable importance to the United States as well as to the rest of Europe.

By most standards, post-war West...

Federal Domestic Illegal Drug Enforcement Efforts: Are They Working?

This report examines the federal drug enforcement data reported annually by key agencies charged with enforcing federal drug control laws. This report provides background and an overview of current federal drug control efforts and outcomes.

Federal Flood Policy Challenges: Lessons from the 2008 Midwest Flood

Floods remain a significant hazard in the United States. Developing and investing in flood-prone areas represents a tradeoff between the location’s economic and other benefits and the exposure to a flood hazard. In the United States, flood mitigation, protection, emergency response, and recovery roles and responsibilities are shared. Local governments are responsible for land use and zoning decisions that shape floodplain and coastal development. State and federal programs, policies, and investments influence community and individual decisions on managing flood risk. The federal government...

Comparing U.S. and EU Program Support for Farm Commodities and Conservation

The European Union (EU) is one of the United States’ chief agricultural trading partners and also a major competitor in world food markets. Both the United States and the EU provide significant government support for their agricultural sectors. In the United States, a large share of support is concentrated on wheat, feed grains, cotton, oilseeds, sugar, and dairy. The EU provides more extensive support to a broader range of farm and food products, including grains, cotton, rice, oilseeds, peanuts, dairy, and sugar, but also fresh and processed fruits and vegetables, and livestock products....

Security and Prosperity Partnership of North America: An Overview and Selected Issues

The Security and Prosperity Partnership of North America (SPP) was a trilateral initiative that was launched in March 2005 by Canada, Mexico, and the United States to increase cooperation and information sharing for the purpose of increasing and enhancing security and prosperity in North America. President Obama met with Mexican President Calderón and Canadian Prime Minister Harper at the North American Leaders’ Summit in Guadalajara, Mexico in August 2009. The three leaders discussed key issues that affect the three countries and agreed to continue cooperation in these areas, but there...

The MS-13 and 18th Street Gangs: Emerging Transnational Gang Threats?

This report provides an overview of the MS-13 and M-18 gangs,5 examines how MS-13 and M-18 gangs are different from other gangs and organized crime groups, and discusses what constitutes a transnational gang. The report also explores whether MS-13 and M-18 gangs are transnational gangs, and discusses the various federal responses to these gangs.

North Korea: Economic Leverage and Policy Analysis

In early and mid-2009, the Democratic Peoples Republic of Korea (DPRK or North Korea) embarked on a course that included a series of extremely provocative military actions, a shift in power toward the military, emphasis on ideological purity, rising criticism of the United States, and going forward with its nuclear and missile program in spite of sanctions and objections from much of the rest of the world. As 2009 ended, the DPRK was in the midst of a “charm offensive” in which it took specific actions to ease tensions with the United States and South Korea and appears to have...

U.S. Foreign-Trade Zones: Trade Agreement Parity (TAP) Proposal

This report provides an introduction to U.S. Foreign Trade Zones (FTZ). The report discusses the details of the Trade Agreement Parity (TAP) proposal, the potential winners and losers under the TAP proposal, economic studies on the TAP proposal, and policy analysis on the TAP proposal.

Commerce, Justice, Science, and Related Agencies: FY2010 Appropriations

This report provides an overview of actions taken by Congress to provide FY2010 appropriations for Commerce, Justice, Science, and Related Agencies (CJS). This report uses the House report to accompany H.R. 2847 (H.Rept. 111-149) and the text of the Supplemental Appropriations Act, 2009 (P.L. 111-32), as the source for the FY2009-enacted and the FY2010-requested amounts, and it uses the Senate report to accompany H.R. 2847 (S.Rept. 111-34) as the source for the amounts in the House-passed bill. The Senate-passed version of H.R. 2847 is used as the source for the Senate-passed amounts. The...

The Farm Price-Cost Squeeze and U.S. Farm Policy

When farm commodity prices fall and costs of production rise, farmers can get caught in a “farm price-cost squeeze.” The potential for such a financial bind dates to the first half of the 20th century when farmers began purchasing more of their farm inputs such as fertilizers, improved seeds, and feed concentrates. Since the 1930s, U.S. agriculture has been supported through the ups and downs of the market by federal farm policy, most recently set under the 2008 farm bill.

In 2009, some farmers found themselves in difficult financial circumstances, following high farm prices and relatively...

Older Displaced Workers in the Context of an Aging and Slowly Growing Population

The United States is projected to experience two major demographic changes that could greatly affect labor markets in the future. The demographic changes are the aging of the U.S. population and the slowdown in population growth. Both are expected to raise the total dependency ratio (the number of younger and older persons relative to the economically productive population). The possibility of a rising ratio has led to concern about the nation’s ability to maintain the current standard of living. One way to lessen the dependency ratio’s expected increase is for people to spend more years...

CRS Issue Statement on Medicare Reform

Insolvency of Systemically Significant Financial Companies (SSFCs): Bankruptcy vs. Conservatorship/Receivership

One clear lesson of the 2008 recession, which brought Goliaths such as Bear Sterns, CitiGroup, AIG, and Washington Mutual to their knees, is that no financial institution, regardless of its size, complexity, or diversification, is invincible. Congress, as a result, is left with the question of how best to handle the failure of systemically significant financial companies (SSFCs). In the United States, the insolvencies of depository institutions (i.e., banks and thrifts with deposits insured by the Federal Deposit Insurance Corporation (FDIC)) are not handled according to the procedures of...

Legislative Branch: FY2010 Appropriations

Approximately $5.0 billion was requested for legislative branch operations in FY2010, an increase of 14.5% over the FY2009 enacted level. The Subcommittees on the Legislative Branch of the House and Senate Appropriations Committees held hearings during which Members considered the legislative branch requests.

On September 23, 2009, the House ordered the previous question (Roll No. 733, 240-171) and agreed by voice vote to a conference with the Senate on H.R. 2918, the FY2010 Legislative Branch Appropriations bill. A motion to instruct conferees failed (Roll No. 734, 191-213), and the House...

The Design and Implementation of Patent Revocation Proceedings: Innovation Issues

Congressional recognition of the role patents play in promoting innovation and economic growth has resulted in the introduction of legislation proposing changes to the patent system. Among other goals, these changes would potentially decrease the cost of resolving disputes concerning patents, increase commercial certainty regarding the validity of particular patents, address potential abuses committed by speculators, and account for the particular needs of individual inventors, universities, and small firms with respect to the patent system.

In pursuit of these goals, several bills...

Korea-U.S. Relations: Issues for Congress

The United States has had a military alliance with South Korea (R.O.K.) and important interests in the Korean peninsula since the Korean War of 1950-1953. Many U.S. interests relate to communist North Korea. Since the early 1990s, the issue of North Korea’s development of nuclear weapons has been the dominant U.S. policy concern. Experts in and out of the U.S. government believe that North Korea has produced plutonium for at least six atomic bombs. North Korea tested nuclear devices in October 2006 and May 2009. In 2007, a six party negotiation (among the United States, North Korea, China,...

Managing Coal Combustion Waste (CCW): Issues with Disposal and Use

In 2008, coal-fired power plants accounted for almost half of the United States’ electric power, resulting in as much as 136 millions tons of coal combustion waste (CCW). On December 22, 2008, national attention was turned to issues regarding the waste when a breach in an impoundment pond at the Tennessee Valley Authority’s (TVA’s) Kingston, TN, plant released 1.1 billion gallons of coal ash slurry. The estimated cleanup cost will likely reach $1.2 billion.

The characteristics of CCW vary, but it generally contains a range of heavy metals such as arsenic, beryllium, chromium, lead, and...

Climate Change: Design Approaches for a Greenhouse Gas Reduction Program

Three events provide impetus for revisiting the cost issue with respect to designing a greenhouse gas reduction program. The first is the election of a new President publicly committed to substantial reductions in greenhouse gases over the next several decades. The second was passage of H.R. 2454 by the House that would mandate a 83% reduction in the country’s greenhouse gas emissions from 2005 by 2050. The reduction would be primarily achieved through a market-based, cap-and-trade program, beginning in 2012. The third is the Copenhagen Accord that may begin the process of incorporating...

Federal Research and Development Funding: FY2010

In his FY2010 budget request, President Obama sought $147.620 billion for R&D, a $555 million (0.4%) increase from the estimated FY2009 R&D funding level of $147.065 billion (not including FY2009 R&D funding provided under the American Recovery and Reinvestment Act (P.L. 111-5). According to the Obama Administration, preliminary allocations of R&D funding provided under P.L. 111-5 brought total FY2009 R&D funding to $165.400 billion. Unless otherwise noted in this report, comparisons of FY2009 and FY2010 R&D funding do not incorporate funding provided under P.L. 111-5. To the extent...

Automatic Cost of Living Adjustments: Some Economic and Practical Considerations

This report looks at how automatic cost-of-living adjustments (COLAs) influence the budget and identifies major programs that have indexing provisions. It also explains what price indexes attempt to measure and discusses some of their weaknesses. Finally, it points out some practical things to keep in mind when establishing an indexing provision.

U.S. Motor Vehicle Industry Restructuring and Dealership Terminations

As Chrysler and General Motors (GM) moved toward and into bankruptcy, they received permission from the U.S. Bankruptcy Court to terminate about 2,000 contracts with auto dealers. Many of the dealers want their contracts reinstated and have sought relief from Congress. This report examines the changed economic landscape facing the auto sector, automaker arguments in favor of dealer reductions, and dealer counterpoints. It also highlights recent legislation introduced to address dealers’ concerns.

Chrysler and GM have emerged from bankruptcy as significantly smaller companies, reflecting...

Follow-On Biologics: Intellectual Property and Innovation Issues

Estate Taxes and Family Businesses: Economic Issues

Agriculture and Related Agencies: FY2010 Appropriations

The FY2010 Agriculture appropriations bill provides funding for all of the U.S. Department of Agriculture (USDA) except the Forest Service, plus the Food and Drug Administration (FDA) and the Commodity Futures Trading Commission (CFTC). Appropriations jurisdiction for the Commodity Futures Trading Commission (CFTC) is split between two subcommittees—the House Agriculture appropriations subcommittee and the Senate Financial Services appropriations subcommittee.

The FY2010 Agriculture appropriations bill (P.L. 111-80) was enacted on October 21, 2009. This is the first time that the bill was...

Transatlantic Regulatory Cooperation: A Possible Role for Congress

The United States and the European Union (EU) share a comprehensive, dynamic, and mutually beneficial economic relationship. Transatlantic markets are among the most open in the world and are deeply integrated. Although the global economic crisis has had a significant negative impact on the transatlantic economy, the great stake each side has had in the other’s economy has afforded both sides the ability to withstand the worst of each other’s current economic downturn. The key measure of the strength of the transatlantic relationship has been the ability of both sides to work with each...

The Federal Budget: Current and Upcoming Issues

The federal budget helps implement Congress’s “power of the purse” by expressing Congress’s spending priorities among competing aims. The Obama Administration’s FY2010 budget described several important changes, including increased funding for certain domestic priorities, major programmatic reforms, and proposed spending cuts in some programs. The current economic climate continues to pose major challenges to policymakers. Federal spending tied to means-tested social programs rose due to rising unemployment, while federal revenues are projected to fall as individuals’ incomes have dropped...

Social Security, Saving, and the Economy

Agriculture and Forestry Provisions in Climate Legislation in the 111th Congress

In June 2009, the House passed H.R. 2454, the American Clean Energy and Security Act of 2009. In September 2009, Senator Kerry introduced S. 1733, the Clean Energy Jobs and American Power Act, which was referred to the Senate Committee on Environment and Public Works. The committee completed markup of the bill on November 5, 2009, by approving Senator Boxer’s “Manager’s Amendment” as a substitute, and ordered S. 1733 reported. Both the House and Senate bills would establish a cap-and-trade system to regulate greenhouse gas (GHG) emissions, as well as address energy efficiency, renewable...

The Primary Residence Exception: Legislative Proposals in the 111th Congress to Amend the Bankruptcy Code to Allow the Strip Down of Certain Home Mortgages

The U.S. housing market began to slow in early 2006 and has led to what many economists believe is the worst housing finance environment since the Great Depression of the 1930s. As a result, there has been a significant rise in late mortgage payments, foreclosures, and bankruptcies nationwide. High unemployment has exacerbated these problems.

Mortgage market participants may voluntarily agree to adjust mortgage terms in order to help troubled borrowers continue to stay in their homes. However, there are a number of obstacles that may discourage mortgage servicers and creditors from...

Homeland Security Department: FY2010 Appropriations

This report describes the FY2010 appropriations for the Department of Homeland Security (DHS). The Administration requested a net appropriation of $44.1 billion in budget authority for FY2010. This amounts to a $2.8 billion, or a 6.7% increase over the $41.2 billion enacted for FY2009 (not including supplemental funding). Total budget authority requested by the Administration for DHS for FY2010 amounts to $55.1 billion.

Net requested appropriations for major agencies within DHS were as follows: Customs and Border Protection (CBP), $10,049 million; Immigration and Customs Enforcement...

Proposals for a Commission to Address the Federal Government’s Long-Term Fiscal Situation

In the 111th Congress, Members have introduced several proposals to establish a commission that would make potentially far-reaching recommendations on how to address the federal government’s long-term fiscal situation. Generally speaking, the measures would include Members of Congress as some or most of a commission’s membership, provide for a majority of commission members to be appointed by congressional leaders, have varying degrees of partisan balance in membership, and require supermajority votes of commission members to approve recommendations. Each of the bills also would provide...

Major Tax Issues in the 111th Congress

Economic Stimulus: Issues and Policy

This report discusses the passing of the American Recovery and Reinvestment Act of 2009, which included tax cut and spending provisions totaling at a cost of $787 billion in an attempt to mitigate the economic fallout of the housing and financial crises on the general economy. The report examines issues surrounding fiscal stimulus such as timeliness, the magnitude of stimulus, long-term effects and previously adopted policies.

Status of the Copenhagen Climate Change Negotiations

The United States and almost 200 other countries are negotiating under the United Nations Framework Convention on Climate Change (UNFCCC) to address climate change cooperatively beyond the year 2012. Parties agreed to complete the negotiations by the 15th meeting of the Conference of the Parties (COP-15) from December 7-18, 2009, in Copenhagen. However, some nations’ leaders have indicated that the Copenhagen outcome is likely to be a political agreement providing a mandate for a later legally binding, comprehensive agreement.

The negotiations are intended to decide the next steps toward...

High Speed Rail (HSR) in the United States

This report provides an overview of high speed rail in the United States. It discusses definitions of high speed rail, looks at high speed rail in selected other countries, and describes congressional initiatives to promote HSR, including provisions in the Passenger Rail Investment and Improvement Act of 2008 (P.L. 110-432) and ARRA. The report then surveys rationales for developing HSR, cost estimates for HSR, and some of the challenges expected in implementing HSR.

The U.S. Global Food Security Initiative: Issues for Congress

The combination of food and economic crises has pushed the number of food-insecure or hungry people worldwide to historic levels—more than 1 billion people are undernourished, according to estimates by the United Nations (U.N.) Food and Agriculture Organization (FAO). In addition, the U.N. Secretary General reports that the proportion of hungry people in the world rose in 2008 as a result of global food and economic crises. The rise in the proportion of hungry people threatens achievement of the U.N.’s Millennium Development Goal (MDG) of reducing the proportion of hungry people in the...

China-U.S. Relations: Current Issues and Implications for U.S. Policy

The bilateral relationship between the U.S. and the People’s Republic of China (PRC) is vitally important, touching on a wide range of areas including, among others, economic policy, security, foreign relations, and human rights. U.S. interests with China are bound together much more closely now than even a few years ago. These extensive inter-linkages have made it increasingly difficult for either government to take unilateral actions without inviting far-reaching, unintended consequences. The Administration of President Barack Obama has inherited from the George W. Bush Administration...

An Overview of the Nonprofit and Charitable Sector

A number of policy issues have direct or indirect consequences for the nonprofit and charitable sector, including the establishment of a social innovation initiative, changes in the tax treatment of charitable donations, responses to the economic downturn, and health care reform. The nonprofit and charitable sector represents a significant portion of the U.S. economy. The sector is also highly diverse. Having a greater understanding of the nonprofit and charitable sector as a whole may help policymakers evaluate proposals that may impact the sector.

The first section of this report...

Net Operating Losses: Proposed Extension of Carryback Period

This report explains the current law regarding the tax treatment of net operating losses (NOLs). In addition, this report highlights a number of policy considerations relating to the extension of the NOL carryback period.

Comparison of Climate Change Adaptation Provisions in S. 1733 and H.R. 2454

This report summarizes and compares climate change adaptation-related provisions in the American Clean Energy and Security Act of 2009 (H.R. 2454) and the Clean Energy, Jobs, and Power Act (S. 1733). H.R. 2454 was introduced by Representatives Waxman and Markey and passed the House on June 26, 2009. S. 1733 was introduced to the Senate by Senators Boxer and Kerry and, after subsequent revisions made in the form of a manager’s substitution amendment, was reported out of the Senate Environment and Public Works Committee on November 5, 2009.

Adaptation measures aim to improve an individual’s...

Advertising Industry in the Digital Age

This report discusses regulatory challenges faced by policymakers as the advertising industry enters a period of far-reaching change brought about by the economic downturn and structural shifts as consumers move to the Internet and other digital platforms for news, entertainment, and socializing.

Climate Change: The Role of the U.S. Agriculture Sector

The agriculture sector is a source of greenhouse gas (GHG) emissions, which many scientists agree are contributing to observed climate change. Agriculture is also a “sink” for sequestering carbon, which might offset GHG emissions by capturing and storing carbon in agricultural soils. The two key types of GHG emissions associated with agricultural activities are methane (CH4) and nitrous oxide (N2O). Agricultural sources of CH4 emissions mostly occur as part of the natural digestive process of animals and manure management at livestock operations; sources of N2O emissions are associated...

Statutory Offices of Inspectors General (IGs): Methods of Appointment and Legislative Proposals

This report addresses the duties and functions of statutory Inspectors General (IGs); the numbers of each type of IG; the differences between IGs appointed by the President and those appointed by the agency head; considerations for whether certain IGs should be appointed by the President as opposed to the agency head; and the Inspector General Reform Act of 2008 (Reform Act), P.L. 110-409. In October 2008, Congress enacted the Reform Act, which created additional protections and authorities for IGs with regard to removal or transfer of an IG, budgets, law enforcement authority, pay,...

Income of Americans Aged 65 and Older, 1968 to 2008

This report presents data collected by the Census Bureau in the Current Population Survey from 1969 through 2009 about the employment status and the sources and amounts of income received by people aged 65 and older.

Public Health, Workforce, Quality, and Other Provisions in the America’s Healthy Future Act (S. 1796)

Health care reform is at the top of the domestic policy agenda for the 111th Congress, driven by concerns about the growing ranks of the uninsured and the unsustainable growth in spending on health care and health insurance. But efforts to improve access to care and control rising health care costs also will require changes to the health care delivery system. Experts point to a growing body of evidence of the health care system’s failure to consistently provide high-quality care to all Americans. Major challenges to the delivery of high-quality care include improving patient safety by...

The 2009 Influenza Pandemic: Selected Legal Issues

On June 11, in response to the global spread of a new strain of influenza, the World Health Organization (WHO) raised the level of influenza pandemic alert to phase 6, which indicates the start of an actual pandemic. This change reflected the spread of the new influenza A(H1N1) virus, not its severity. Although currently the pandemic is of moderate severity with the majority of patients experiencing mild symptoms and making a rapid and full recovery, this experience could change. This report provides a brief overview of selected legal issues including emergency measures, civil rights,...

Awards of Attorneys’ Fees by Federal Courts and Federal Agencies

In the United States, the general rule, which derives from common law, is that each side in a legal proceeding pays for its own attorney. There are many exceptions, however, in which federal courts, and occasionally federal agencies, may order the losing party to pay the attorneys’ fees of the prevailing party. The major common law exception authorizes federal courts (not agencies) to order a losing party that acts in bad faith to pay the prevailing party’s fees.

There are also roughly two hundred statutory exceptions, which were generally enacted to encourage private litigation to...

Inequality in the Distribution of Income: Trends and International Comparisons

This report examines the distribution of income in the United States, including factors that may help explain it, how it has changed over time, and how it compares with those of other countries.

Lehman Brothers and IndyMac: Comparing Resolution Regimes

In the United States, the insolvencies of depository institutions are not handled according to the procedures of the U.S. Bankruptcy Code. Instead, they and their subsidiaries are subject to a separate regime prescribed in federal law, called a conservatorship or receivership. Under this regime, the conservator or receiver, which generally is the Federal Deposit Insurance Corporation (FDIC), is provided substantial authority to deal with virtually every aspect of the insolvency. The failure of most other financial institutions within bank, thrift, and financial holding company umbrellas...

Taxable Base of the Value-Added Tax

Medical Malpractice Insurance: An Economic Introduction and Review of Historical Experience

Insurance is a critical piece of a modern economic system, but it often goes unnoticed until it becomes prohibitively expensive or its availability is curtailed. Such problems occurred in the medical malpractice liability insurance market most recently in the early part of the 2000s. Many physicians experienced substantial increases in insurance premiums, and there were reports of problems with availability of physician services due to doctors retiring or relocating from areas that had seen high premium increases. This was not the first time such a crisis has been proclaimed; similar...

South Korea: Its Domestic Politics and Foreign Policy Outlook

South Korea’s maturing democracy and rapid economic development have had a significant impact on its external relations, including the strategic and economic relationship with the United States. After decades of close strategic alignment with the United States under authoritarian governments, the past several democratically elected leaders in Seoul have sought their own brand of foreign policy and relations with the United States. Now the 13th largest global economy, South Korea is a major U.S. trade partner and host to some 37,000 forward deployed U.S. troops.

President Lee Myung-bak...

Energy Efficiency and Renewable Energy Legislation in the 110th Congress

This report reviews the status of energy efficiency and renewable energy legislation introduced during the 110th Congress. Most action in the second session is focused on the FY2009 budget request and legislation that would extend or modify selected renewable energy and energy efficiency tax incentives.

The Student Aid and Fiscal Responsibility Act of 2009

The House and the Senate approved H.Rept. 111-89, the conference report to accompany S.Con.Res. 13, the Concurrent Resolution on the Budget for Fiscal Year 2010, on April 29, 2009. The FY2010 budget resolution includes reconciliation instructions directing the Senate Committee on Health, Education, Labor, and Pensions (HELP) and the House Committee on Education and Labor to report changes in laws within their jurisdictions to reduce the deficit by $1 billion for the period of fiscal year (FY) 2009 through FY2014. The reconciliation instructions for the House specifically direct the...

Summary and Analysis of S. 1462: American Clean Energy Leadership Act of 2009, As Reported

As reported by the Senate Committee on Energy and Natural Resources, the six titles of S. 1462 are intended to address the energy security of the United States by promoting the development of clean energy technologies, improving energy efficiency, encouraging the development of domestic energy resources, promoting energy innovation and energy workforce development, improving the stability of U.S. energy markets, and informing energy strategies through a series of studies and reports. Some of these provisions build on similar or related provisions in the Energy Policy Act of 2005 (EPACT05,...

Public Health, Workforce, Quality, and Other Provisions in the Affordable Health Choices Act (S. 1679)

Health care reform is at the top of the domestic policy agenda for the 111th Congress, driven by concerns about the growing ranks of the uninsured and the unsustainable growth in spending on health care and health insurance. But efforts to improve access to care and control rising health care costs also will require changes to the health care delivery system. Experts point to a growing body of evidence of the health care system’s failure to consistently provide high-quality care to all Americans. Major challenges to the delivery of high-quality care include improving patient safety by...

Renewable Energy—A Pathway to Green Jobs?

In the United States, growing awareness of greenhouse gas (GHG) emissions and the possible implications for global climate change have combined with recent high energy prices and economic uncertainty to rekindle interest in renewable energy. Renewable energy technologies generate electricity from resources such as the sun, wind, or biomass, with essentially no net GHG emissions. President Obama has declared a goal for the United States to become the world’s leading exporter of renewable energy technologies, setting out policy objectives for the development of related “green jobs”.

Green...

Public Health, Workforce, Quality, and Other Provisions in H.R. 3200

Health care reform is at the top of the domestic policy agenda for the 111th Congress, driven by concerns about the growing ranks of the uninsured and the unsustainable growth in spending on health care and health insurance. But efforts to improve access to care and control rising health care costs also will require changes to the health care delivery system. Experts point to a growing body of evidence of the health care system’s failure to consistently provide high-quality care to all Americans. Major challenges to the delivery of high-quality care include improving patient safety by...

An Analysis of Borrowing From Defined Contribution Retirement Plans

Americans are being given more responsibility for saving for their own retirements. Over the past 25 years, fewer households have been covered by traditional defined benefit (DB) retirement plans, in which retirees receive monthly checks based on a formula using some combination of earnings history and employment tenure. In place of DB plans, more and more employees are being covered by defined contribution (DC) plans, in which employees (and often their employers) place funds in individual employee accounts that are used as the basis for retirement incomes.

A feature of many DC plans is...

Climate Change: Costs and Benefits of the Cap-and-Trade Provisions of H.R. 2454

This report examines seven studies that project the costs of H.R. 2454 to 2030 or beyond. It is difficult (and some would consider it unwise) to project costs up to the year 2030, much less beyond. The already tenuous assumption that current regulatory standards will remain constant becomes more unrealistic as time goes forward, and other unforeseen events (such as technological breakthroughs) loom as critical issues which cannot be modeled. Hence, long-term cost projections are at best speculative, and should be viewed with attentive skepticism. The finer and more detailed the estimate...

Federal Tax Treatment of Health Insurance Expenditures by the Self-Employed: Current Law and Issues for Congress

Federal tax law allows self-employed individuals to deduct from their gross income the entire amount they spend on health insurance for themselves and their spouses and dependents.

This report explains how these expenditures are treated under the federal tax code, reviews the legislative history of the deduction, assesses its effectiveness as a policy tool for expanding access to health care for the self-employed, describes proposals in the 111th Congress to modify the deduction, and discusses the implications of leading health care reform proposals in Congress for health insurance...

Electric Power Storage

Unlike natural gas or fuel oil, electricity cannot be easily stored. However, interest in electric power storage (EPS) has been growing with technological advancements that can make storage a more practical means of integrating renewable power into the electricity grid and achieving other operating benefits.

This report summarizes the technical, regulatory, and policy issues that surround implementation of EPS. Electricity storage is one of several non-traditional technologies and methods of meeting power demand that are of current congressional interest (others include distributed...

Executive Compensation Limits in Selected Federal Laws

Concern about shareholder value, corporate governance, and the economic and social impact of escalating pay for corporate executives has led to controversy regarding the practices of paying these executives. This report focuses on legal provisions related to tax, bankruptcy, and corporate governance that attempt to limit executive compensation. Many provisions have existed for a number of years, but some have a more recent origin in the 110th and 111th Congresses.

In the 110th Congress, two laws containing executive compensation provisions were enacted: P.L. 110-289, the Housing and...

The Fall and Rise of Household Saving

This report begins by showing how the household saving rate has varied in recent years. Next, it explains how household saving is measured, and it provides some detail on how saving varies across the income distribution. Finally, it discusses factors that may account for the long decline in household saving, as well as prospects for its recovery.

The Global Economic Downturn and Protectionism

In today’s severe global economic downturn, concerns are being raised that countries may try to improve their own trade positions in order to help domestic industries at the expense of others by imposing measures that artificially increase their exports or restrict imports. Such efforts are considered by some to be a form of “protectionism” and are often referred to as beggar-thy-neighbor policies.

This report develops three scenarios to approximate different dimensions of the relationship between the global economic downturn and protectionism. The scenarios are not predictions, but...

Noncitizen Health Insurance Coverage and Use of Select Safety-Net Providers

The 111th Congress has made health reform a priority. As health reform is debated, one possible issue that may surface is the rights and requirements of noncitizens (aliens) under health reform. Because some of the proposals to address health reform in the United States would create a mechanism to provide health insurance to the overwhelming majority of individuals in the nation, this report explores the health insurance coverage of noncitizens, as well as noncitizen use of selected safety-net providers and the impact of unauthorized aliens on the health care system.

Noncitizens are not...

Insurance Regulation: Issues, Background, and Legislation in the 111th Congress

This report discusses congressional and action on insurance regulation in the wake of the recent financial crisis. Although the financial crisis has changed the focus of the debate surrounding insurance regulatory reform, many of the pre-crisis pressures for regulatory changes continue.

Financial Regulation and Oversight: Latin American Financial Crises and Reform Lessons from Chile

The 111th Congress has taken a broad approach to capturing the lessons on financial crises as part of the effort to evaluate possibilities for revamping the U.S. financial regulatory system. Latin America stands out as one region that has survived multiple financial crises, and in the aftermath of such devastation, many countries undertook comprehensive regulatory reform. Although a smaller developing economy, Chile provides one important example. Following two financial crises, one the result of extreme over regulation, the other of catastrophic under regulation, Chile redesigned its...

Carbon Sequestration in Forests

Widespread concern about global climate change has led to interest in reducing emissions of carbon dioxide (CO2) and, under certain circumstances, in counting additional carbon absorbed in soils and vegetation as part of the emissions reductions. Congress may consider options to increase the carbon stored (sequestered) in forests as it debates this and related issues.

Forests are a significant part of the global carbon cycle. Plants use sunlight to convert CO2, water, and nutrients into sugars and carbohydrates, which accumulate in leaves, twigs, stems, and roots. Plants also respire,...

Burma: Economic Sanctions

This report provides background information on existing economic sanctions against Burma and possible options to expand sanctions.

Mandating Dealership Agreements for Automakers Receiving Federal Funds: Constitutional Analysis

Auto dealers, which act as intermediaries between automakers and final consumers, are independent businesses with contracts with the automakers. As General Motors Corporation (Old GM) and Chrysler LLC (Old Chrysler) have moved through bankruptcy restructuring, the presence of these dealer contracts has been an important issue. In order to allow the automakers to downsize and seek a more competitive business model, the bankruptcy courts allowed both Old Chrysler and Old GM to cut their dealership networks. This allowed the new entities that bought the assets of the bankrupt companies,...

Small Business Tax Benefits and the American Recovery and Reinvestment Act of 2009

In a bid to arrest a sharp downturn in the U.S. economy that is thought to have begun in late 2007, Congress passed and President Obama signed in February 2009 a bill to stimulate the economy known as the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5). Among its many provisions, the act contains a variety of tax cuts and spending initiatives, whose estimated 10-year cost comes to $787 billion. The tax provisions account for 36% of that amount, or $285.6 billion. Most of this cost is due to tax benefits for individuals, as the 10-year cost of the business tax provisions...

Agricultural Research, Education, and Extension: Farm Bill Issues

The 110th Congress passed an omnibus farm bill (Food, Conservation, and Energy Act of 2008, P.L. 110-246) to authorize and direct the implementation of the U.S. Department of Agriculture’s (USDA’s) major programs across the spectrum of its mission areas through FY2012. The enacted bill reorganizes the Department’s Research, Education, and Economics mission area, which currently comprises four agencies that separately administer intramural and extramural programs supporting agricultural research and development (R&D).

The research title of P.L. 110-246 (Title VII) classifies all current...

The Worker Adjustment and Retraining Notification Act (WARN)

Congress has passed legislation to facilitate the reemployment of workers who through no fault of their own are let go by their employers. Among these laws is the Worker Adjustment and

Retraining Notification (WARN) Act, P.L. 100-379, enacted in 1988. This report discusses the WARN Act in brief, especially as related to Congress's renewed interest in the Act due to the current financial crises and recession.

Financing Catastrophic Risk: Summary of the Homeowners' Defense Act of 2009 (S. 505 and H.R. 2555)

This report discusses the drastic increase in demand for homeowners' insurance in Atlantic and Gulf Coast states following the devastation of Hurricane Katrina in 2005. This report also discusses various measures and efforts underway to enhance insurer capacity, pursue alternative forms of risk transfer, and create a national catastrophe financing facility, the last of which is an issue under considerable debate.

Agriculture and Related Agencies: FY2009 Appropriations

The Agriculture appropriations bill includes all of the U.S. Department of Agriculture (USDA) except the Forest Service, plus the Food and Drug Administration (FDA). The Commodity Futures Trading Commission (CFTC) appropriation also has been enacted with the Agriculture appropriations bill, even though jurisdiction in the Senate for CFTC funding moved to the Financial Services appropriations subcommittee in FY2008.

An FY2009 Omnibus Appropriations Act, P.L. 111-8, was enacted on March 11, 2009, more than five months after the beginning of the fiscal year. A continuing resolution had...

America COMPETES Act: Programs, Funding, and Selected Issues

The America COMPETES Act (P.L. 110-69) became law on August 9, 2007. The act responds to concerns that the United States may not be able to compete economically with other nations in the future due to insufficient investment today in science and technology research and science, technology, engineering, and mathematics (STEM) education and workforce development. The America COMPETES Act is intended to increase the nation’s investment in science and engineering research and in STEM education from kindergarten to graduate school and postdoctoral education. It is designed to focus on two...

Federally Funded Innovation Inducement Prizes

Since at least the 18th century, philanthropic organizations, industry, governments, and nongovernmental organizations throughout the world have offered many different kinds of prizes with a variety of objectives to reward accomplishments in science and technology. In the United States, Congress authorized most of today’s federally-funded innovation inducement prizes beginning with the 108th Congress (2003). This analysis focuses on federally-funded “innovation inducement prizes,” which are sponsored by federal organizations and designed to encourage scientists and engineers to pursue...

Iran: U.S. Concerns and Policy Responses

Much of the debate over U.S. policy toward Iran has centered on the nature of the current regime; some believe that Iran, a country of about 70 million people, is a threat to U.S. interests because hardliners in Iran's regime dominate and set a policy direction

intended to challenge U.S. influence and allies in the region. President George W. Bush, in his January 29, 2002, State of the Union message, labeled Iran part of an "axis of evil" along with

Iraq and North Korea. This report discusses the political history of Iran, U.S. strategy in Iran, and the Obama Administration's policies...

Carbon Capture and Sequestration (CCS)

Carbon capture and sequestration (or storage) - known as CCS - has attracted interest as a measure for mitigating global climate change because large amounts of carbon dioxide (CO2) emitted from fossil fuel use in the United States are potentially available to be captured and stored underground or prevented from reaching the atmosphere. Congressional interest has grown in CCS as part of legislative strategies to address climate change. The large and rapid influx of funding for industrial-scale CCS projects may accelerate

development and deployment of CO2 capture technologies.

East Timor: Political Dynamics, Development, and International Involvement

The situation in the Democratic Republic of Timor-Leste, which is also known as simply Timor-Leste or East Timor, is relatively calm compared with recent periods of political strife and insurrection. That said, some underlying tensions, such as with the security sector, remain to be resolved. Timor-Leste faces many serious challenges as it seeks to establish a stable democracy and develop its economy. Prior to 2006 the international community’s main concern focused on possible tensions in East Timor’s relations with Indonesia. Since 2006 the main threat to East Timor has been internal...

North Korean Counterfeiting of U.S. Currency

The United States has accused the Democratic People’s Republic of Korea (DPRK or North Korea) of counterfeiting U.S. $100 Federal Reserve notes (Supernotes) and passing them off in various countries, although there is some doubt by observers and other governments that the DPRK is capable of creating Supernotes of the quality found. What has been confirmed is that the DPRK has passed off such bills in various countries and that the counterfeit bills circulate both within North Korea and around its border with China. Defectors from North Korea also have provided information on Pyongyang’s...

Financial Market Turmoil and U.S. Macroeconomic Performance

Lending in credit markets requires confidence in the borrowers' ability to repay the debt (principal and interest) in full and on schedule. The current turmoil in U.S. financial markets is the result of a breakdown in that necessary confidence. A number of indicators have pointed to a substantial rise in the cost of credit and a decrease in the flow of credit to the broader economy. Economic policy may be needed to get credit flowing smoothly again and to mitigate the damage incurred by households and non-financial businesses. Three types of policy response exist and are being applied in...

U.S. Motor Vehicle Industry: Federal Financial Assistance and Restructuring

This report focuses on the current situation faced by the Detroit 3, key aspects of their current crisis, including possible consequences of a failure of one or more companies, and some aspects of legislative actions that have been considered to bridge their financial conditions to a more stable situation.

The No Child Left Behind Act: An Overview of Reauthorization Issues for the 111th Congress

Most programs of federal aid to K-12 education are authorized by the Elementary and Secondary Education Act (ESEA). The ESEA was most recently amended and reauthorized by the No Child Left Behind Act of 2001 (NCLB). The authorization for ESEA programs expired at the end of FY2008, although ESEA programs continue to operate as long as appropriations are provided, and the 111th Congress is expected to consider whether to amend and extend the ESEA.

Debates over reauthorization of the ESEA have thus far focused on the following overarching issues: (1) What has been the impact of the...

Science and Technology Policymaking: A Primer

Scientific and technical knowledge and guidance influences not just policy related to science and technology, but also many of today’s public policies as policymakers seek knowledge to enhance the quality of their decisions. Science and technology policy is concerned with the allocation of resources for and encouragement of scientific and engineering research and development, the use of scientific and technical knowledge to enhance the nation’s response to societal challenges, and the education of Americans in science, technology, engineering, and mathematics.

Science and engineering...

Federal Research and Development Funding: FY2009

In February 2008, President Bush proposed total research and development (R&D) funding of $147.0 billion in his FY2009 budget request to Congress, a $3.9 billion (2.7%) increase over the estimated FY2008 level of $143.1 billion. President Bush’s request included $29.3 billion for basic research, up $847 million (3.0%) from FY2008; $27.1 billion for applied research, down $1.0 billion (-3.6%); $84.0 billion for development, up 1.6 billion (1.9%); and $6.5 billion for R&D facilities and equipment, up $2.5 billion (61.7%).

In the absence of final action on the regular FY2009 appropriations...

The Role of Offsets in a Greenhouse Gas Emissions Cap-and-Trade Program: Potential Benefits and Concerns

If Congress establishes a greenhouse gas (GHG) emissions reduction program (e.g., cap-and-trade system), the treatment of GHG emission offsets would likely be a critical design element. If allowed as part of an emissions program, offsets could provide cost savings and other benefits. However, offsets have generated concern.

An offset is a measurable reduction, avoidance, or sequestration of GHG emissions from a source not covered by an emission reduction program. If allowed, offset projects could generate “emission credits,” which could be used by a regulated entity (e.g., power plant) to...

Climate Change Litigation: A Survey

The scientific, economic, and political questions surrounding climate change have long been with us. This report focuses instead on a relative newcomer: the legal debate. Though the first court decision related to climate change appeared 19 years ago, such litigation has proliferated in just the past six. Representatives of some suing organizations and states acknowledge that a prime cause for this litigation surge was inaction by Congress and the executive branch during the George W. Bush Administration with regard to mandatory constraints on greenhouse gas (GHG) emissions.

The court...

Science, Engineering, and Mathematics Education: Status and Issues

An important aspect of U.S. efforts to maintain and improve economic competitiveness is the existence of a capable scientific and technological workforce. A major concern of the 111th Congress may be regarding the future ability of the U.S. science and engineering base to generate the technological advances needed to maintain economic growth. Discussions have centered on the quality of science and mathematics education and training and on the scientific knowledge of those students entering other disciplines. Even students pursuing nonscientific and nonmathematical specialities are likely...

Financial Services and General Government (FSGG): FY2009 Appropriations

The Financial Services and General Government (FSGG) appropriations bill includes funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and 26 independent agencies. Among the independent agencies funded by the bill are the General Services Administration (GSA), the Office of Personnel Management (OPM), the Small Business Administration (SBA), and the United States Postal Service (USPS).

On September 30, 2008, President George W. Bush signed the Consolidated Security, Disaster Assistance, and Continuing...

The Credit Card Market: Recent Trends and Regulatory Proposals

Thirty-Five Years of Water Policy: The 1973 National Water Commission and Present Challenges

Concern about the availability and use of water to support the nation’s people, economy, and environment has bolstered interest in establishing a national water commission. The commission structure proposed in recent legislation (e.g., H.R. 135) is similar to that of the 1968-1973 National Water Commission (NWC or Commission). As proposed in H.R. 135, the commission would assess future water demands, study current management programs, and develop recommendations for a comprehensive water strategy. Questions about a commission as an effective model and which topics a commission might...

Mortgage Fraud: Federal Criminal Provisions

Although criminal prosecutions will likely be only one part of a broader governmental response to the recent financial crisis, the perceived role of fraudulent activity in the downturn, and of mortgage fraud in particular, has spurred interest in the criminal provisions available to federal prosecutors. This report analyzes statutory sources of federal criminal liability for fraudulent actions taken in the primary mortgage market – i.e., fraud committed by borrowers, brokers, lenders, or others during the mortgage origination process. It also discusses some statutes implicated by...

Commerce, Justice, Science and Related Agencies: FY2009 Appropriations

This report provides an overview of actions taken by Congress to provide FY2009 appropriations for Commerce, Justice, Science, and Related Agencies (CJS). On March 11, 2009, President Obama signed into law the Omnibus Appropriations Act, 2009 (P.L. 111-8). In the Omnibus, Congress appropriated $60.538 billion for CJS agencies. This amount was $4.578 billion more than the FY2008 enacted level (an 8.2% increase) and $3.488 billion more than the amended FY2009 request (a 6.1% increase). The Omnibus included $9.268 billion for the Department of Commerce, $26.120 billion for the Department of...

Voluntary Carbon Offsets: Overview and Assessment

Businesses and individuals are buying carbon offsets to reduce their “carbon footprint” or to categorize an activity as “carbon neutral.” A carbon offset is a measurable avoidance, reduction, or sequestration of carbon dioxide (CO2) or other greenhouse gas (GHG) emissions. Offsets generally fall within the following four categories: biological sequestration, renewable energy, energy efficiency, and reduction of non-CO2 emissions.

In terms of the carbon concentration in the atmosphere, an emission reduction, avoidance, or sequestration is beneficial regardless of where or how it occurs. A...

Biomass Resources: The Southeastern United States and the Renewable Electricity Standard Debate

Congress has been debating establishment of a Renewable Electricity Standard (RES) to encourage increased use of all forms of renewable energy including generating electricity from biomass sources (H.R. 890, S. 433). Concerns over the potential impacts of a federal RES seem to revolve largely around the issue of whether, nationwide, sufficient renewable energy resources exist and are economically viable. States and electricity suppliers in the southeastern United States have been most vocal in their concern that they may be unfairly burdened by an RES. They contend there is a lack of wind...

U.S. Tree Planting for Carbon Sequestration

Climate change is a growing concern for Congress. “Cap-and-trade” and carbon tax proposals have been suggested to limit and reduce domestic emissions of greenhouse gases, especially carbon dioxide (CO2). Most cap-and-trade proposals would establish limits on emissions from many economic sectors, while allowing “offsets”—reduced emissions or enhanced carbon sequestration—from uncapped sectors, such as forestry and agriculture. Alternatively, carbon tax proposals might include tax expenditures or credits for such “offsets.” In the 111th Congress, a discussion draft of possible legislation...

The Global Financial Crisis: Lessons from Japan’s Lost Decade of the 1990s

During the 1990s and into the early years of the 21st century, Japan experienced prolonged recessionary economic conditions triggered by the bursting of a bubble in its equity and real estate markets and an ensuing banking crisis. Although the current global financial crisis is much more than Japan’s “Great Recession” writ large, many have turned to Japan’s experience to either support or oppose various policies and to improve general understanding of the underlying forces of financial crises.

In fiscal policy, the Japanese experience has been used both as an example of stimulus packages...

Banking and Financial Infrastructure Continuity: Pandemic Flu, Terrorism, and Other Challenges

This report outlines the financial sector's recovery plans for two kinds of disasters: the inability to conduct transactions and large losses of asset value. The basic function of the payment system is carried out by banks, and monetary policy affects banks immediately. Because brokers, exchanges, secondary market facilities, and insurance companies carry out crucial financial functions, their regulators and trade associations are involved in continuity of operations planning for contingencies.

Federal Reserve Interest Rate Changes: 2001-2009

The Federal Open Market Committee (FOMC) decided at its scheduled meeting, held on April 29, 2009, to leave unchanged the target rate for federal funds, which is now at a range from 0% to ¼%. In doing so, it took notice of its previous decision to add up to $1.75 trillion to the reserves of depository institutions by purchasing agency mortgage-backed securities ($1.25 trillion), agency debt ($200 billion), and Treasury securities ($300 billion). It also repeated that other measures had been adopted to facilitate the flow of credit to households and small businesses. In making its decision,...

Financial Institution Insolvency: Federal Authority over Fannie Mae, Freddie Mac, and Depository Institutions

On September 7, 2008, the Secretary of the Treasury announced that the Federal Housing Finance Agency (FHFA), the newly installed regulator of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), had been appointed conservator of the two enterprises. Until the enactment of the Housing and Economic Recovery Act of 2008 (P.L. 110-289), there was no clear statutory authority for dealing with the insolvency of either or both of these two mortgage giants. Among the reforms included in P.L. 110-289 were extensive provisions...

The Public Health and Medical Response to Disasters: Federal Authority and Funding

When there is a catastrophe in the United States, state and local governments lead response activities, invoking state and local legal authorities to support them. When state and local response capabilities are overwhelmed, the President, acting through the Secretary of Homeland Security, can provide assistance to stricken communities, individuals, governments, and not-for-profit groups to assist in response and recovery. Aid is provided under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act) upon a presidential declaration. The...

Fifth Summit of the Americas, Port of Spain, Trinidad and Tobago, April 2009: Background, Expectations, and Results

The fifth Summit of the Americas in Port of Spain, Trinidad and Tobago was held April 17-19, 2009. It was the first hemispheric forum for President Barack Obama to engage with leaders from across Latin America and the Caribbean. The Port of Spain Summit was also the first meeting of all 34 democratic heads of government from Latin America, the Caribbean, Canada, and the United States since the contentious 2005 Summit in Mar del Plata, Argentina. Despite some criticism of past and current U.S. policies in the region, the Summit was largely cordial and may provide the foundation for improved...

Selected Federal Compensation Programs for Physical Injury or Death

Congress has established a number of programs to compensate or assist victims of certain specific circumstances, including negligence, terrorism, and “acts of God.” Federal compensation programs can be described by certain common attributes. These include aspects of program administration; requirements for and determination of individual eligibility; eligibility of health care providers; types of benefits provided; whether certain diseases are presumed to be eligible for compensation; and the means by which the program is financed.

Though federal compensation programs display considerable...

The Year 2000 Computer Problem: Congressional Issues

Many computers were designed to store a two-digit number for the year, which makes the year 2000 indistinguishable from 1900. Unless they are corrected, many computers will not be able to process dates beyond the year 2000, and may cause many costly problems in commerce and government. In the 106th Congress, hearings are being held and will continue to provide the public with the most accurate information available on the status of Y2K remediations at federal agencies, state and local agencies, private sector entities, and international organizations. Congress may also consider additional...

American Recovery and Reinvestment Act of 2009 (P.L. 111-5): Summary and Legislative History

President Barack Obama signed H.R. 1, the American Recovery and Reinvestment Act (ARRA) of 2009, into law on February 17, 2009, as P.L. 111-5 (123 Stat. 115-521). The act is seen as one of the most significant legislative responses made thus far to the current economic turmoil. This report provides a summary and legislative history of ARRA and identifies other resources that provide additional information regarding its content and implementation.

ARRA is a relatively lengthy and complex act, amounting to just over 400 pages (in slip law form) and melding together hundreds of billions of...

Authority of the Senate Over Seating Its Own Members: Exclusion of a Senator-Elect or Senator-Designate

This report is intended to provide a brief legal analysis of the authority of the Senate over the seating of its own Members, and the Senate’s power to exclude, that is, to refuse by majority vote to seat a Senator-elect or Senator-designate who presents valid credentials from state officials. Under Article I, Section 5, clause 1 of the Constitution, each house of Congress is granted the express authority to judge the “elections,” the “returns,” and the “qualifications” of its own Members. This explicit delegation in the Constitution grants the Senate broad authority to judge and to make...

Funding for Education in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5)

The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Obama on February 17, 2009 (P.L. 111-5). The primary purposes of the ARRA focus on promoting economic recovery, assisting those most affected by the recession, improving economic efficiency by “spurring technological advances in science and health,” investing in infrastructure, and stabilizing state and local government budgets.

The ARRA provides funds to several existing education programs administered by the U.S. Department of Education (ED), including programs authorized by the Elementary and...

State Health Reform Strategies

States have taken the initiative to propose and enact health care reforms to address perceived problems related to health insurance coverage, health care costs, and other issues. These reform efforts vary in scope, intent, and target demographic group. While not all members of Congress agree in the need to reform health care, many have expressed interest in learning about these state efforts to inform ongoing debate at the national level.

Each state has implemented a unique set of reform strategies to address concerns about health insurance and the health care delivery system. However,...

Legislative Branch: FY2009 Appropriations

The FY2009 Omnibus Appropriations Act, P.L. 111-8, was enacted on March 11, 2009. Division G of the act provides $4.4 billion for legislative branch activities. This represents an approximate 11% increase over the nearly $4 billion approved by Congress for FY2008. Legislative branch entities had requested nearly $4.7 billion for FY2009, or an increase of 18%.

An additional $25 million was provided for the Government Accountability Office in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5).

On September 30, 2008, the President signed the Consolidated Security, Disaster...

Business Tax Issues in 2009

This report discusses the tax climate for businesses, while economic stimulus proposals dominate the congressional debate. During 2009, it is anticipated that congressional deliberations will once again turn towards the extension of several expiring business tax provisions, energy taxation, tax shelters, and international taxation, while continuing to examine opportunities to stimulate the economy.

The Global Financial Crisis: Foreign and Trade Policy Effects

The global financial and economic crisis affects all three of the essential national interests of the United States: national security, economic well being, and value projection. Only occasionally does an event of this magnitude occur that generates such daunting challenges yet also opportunities for U.S. policy. The effects of the crisis on foreign policy, trade, and security are so diverse and widespread that, out of necessity, policy responses must range from the highly specific to the broad and ethereal.

This report provides an overview of the major non-financial effects of the global...

The President’s Malaria Initiative and Other U.S. Global Efforts to Combat Malaria: Background, Issues for Congress, and Resources

In 2008, malaria remained a serious problem in 109 countries, although it was eradicated almost 60 years ago in the United States. Malaria sickens an estimated 247 million people every year; of these, nearly 1 million die, mostly children younger than 5 years old. The disease is caused by a parasite that is transmitted to a person through the bite of a particular mosquito. Infection can lead to fever, muscle aches, and, without effective treatment, organ failure and sometimes death. Although approximately 40% of the world’s population is at risk of malaria, most cases and deaths are in...

Ethanol: Economic and Policy Issues

Biofuels are a major source of renewable energy in the United States. Ethanol produced from corn starch accounts for 90% of the biofuels consumed, but only 5% of all light-duty motor transportation fuel consumption. Ethanol is blended with gasoline to increase octane and reduce emissions, and used as a substitute for gasoline to reduce consumption of petroleum-based fuels.

Ethanol has the potential to provide many benefits. As an alternative to gasoline refined from imported oil, its use can improve U.S. national energy security, albeit marginally. Although the exact magnitude is subject...

Operation Iraqi Freedom: Strategies, Approaches, Results, and Issues for Congress

Operation Iraqi Freedom (OIF), the U.S.-led coalition military operation in Iraq, was launched on March 20, 2003, with the immediate stated goal of removing Saddam Hussein’s regime and destroying its ability to use weapons of mass destruction or to make them available to terrorists. Over time, the focus of OIF shifted from regime removal to the more open-ended mission of helping the Government of Iraq (GoI) improve security, establish a system of governance, and foster economic development.

In 2009, the war in Iraq appears to be winding down, as security gains made since the height of the...

Asia Pacific Economic Cooperation (APEC) and the 2008 Meetings in Lima, Peru

Congress and the Executive Branch have historically identified the Asia Pacific Economic Cooperation (APEC) as an important organization to help promote the U.S. goal of liberalizing international trade and investment in Asia, and possibly the rest of the world. APEC’s commitment to the goal of trade and investment liberalization is embodied in its Bogor Goals, in which APEC members pledged to free and open trade and investment in the Asia-Pacific by 2010 for industrialized economies and 2020 for developing economies.

However, several alternative avenues for the promotion of trade...

The Federal Deposit Insurance Corporation (FDIC): Efforts to Support Financial and Housing Markets

This report discusses recent actions taken by the FDIC in support of financial and housing markets, which include restoration of the Deposit Insurance Fund, the development of the Temporary Liquidity Guarantee Program, efforts to reduce foreclosures, and establishment of the proposed Public-Private Investment Fund. Legislation such as H.R. 786 (introduced by Representative Barney Frank); H.R. 1106, Helping Families Save Their Homes Act of 2009 (introduced by Representative John Conyers, Jr., with 24 co-sponsors); and S. 541, The Depositor Protection Act of 2009 (introduced by Senator...

Federal Taxation of the Drug Industry and Its Effects on New Drug Development

A key issue in congressional debates over expanding consumer access to prescription drugs is the impact of proposed initiatives on the development of new medicines. Some of the initiatives entail significant changes in one or more of the federal policies affecting new drug development. One such policy is federal taxation of firms that invest in this development.

This report examines the impact of federal taxation on the incentive to invest in new drug development. More specifically, it looks at the provisions in current tax law that affect the performance of the drug industry, compares the...

Budget Deficits: An Explanation of How Policy Affects Budget Balance

In fiscal year (FY) 2008, the nation’s budget deficit reached $455 billion or 3.2% of gross domestic product (GDP), up from $161 billion or 1.2% of GDP in FY2007. New deficit projections provide a picture of what the United States faces over the next decade. In February 2009, the Congressional Budget Office (CBO) projected that the deficit in FY2009 will reach more than $1.4 trillion. Between FY2010 and FY2019, cumulative deficits could reach as high as $10 trillion. CBO projects deficits in each fiscal year of this period. These deficits are largely a result of enacted federal financial...

Monetary Aggregates: Their Use in the Conduct of Monetary Policy

Economic theory and history make a compelling case that monetary policy is powerful in affecting the pace of economic activity and employment in the short run and the rate of inflation in the longer run. Thus, unambiguous indicators should exist for those formulating, executing, and overseeing monetary policy. To this end, definitions of money are sought, as are collections of assets consistent with those definitions. For these measures of money—known as monetary aggregates—to be useful in a policy context, they must, at a minimum, be stable and predictably related to spending, meaning...

Carbon Tax and Greenhouse Gas Control: Options and Considerations for Congress

Market-based mechanisms that limit greenhouse gas (GHG) emissions can be divided into two types: quantity control (e.g., cap-and-trade) and price control (e.g., carbon tax or fee). To some extent, a carbon tax and a cap-and-trade program would produce similar effects: Both are estimated to increase the price of fossil fuels, which would ultimately be borne by consumers, particularly households. Although there are multiple tools available to policymakers that could control GHG emissions—including existing statutory authorities—this report focuses on a carbon tax approach and how it compares...

The Cigarette Tax Increase to Finance SCHIP

On January 15, the House passed H.R. 2, a bill which included increased tobacco taxes to finance State Children’s Health Insurance Program (SCHIP). This legislation was similar to that passed in the 110th Congress (H.R. 976 and H.R. 3162) although the initial House proposal had smaller tax increases.. H.R. 2 increases cigarette taxes, the primary source of tobacco tax revenues from 39 cents to $1.00. According to the Joint Committee on Taxation, the cigarette tax will raise $6.4 billion in federal revenues in FY2010 with all federal tobacco taxes increases raising $7.1 billion. A similar...

Climate Change: Current Issues and Policy Tools

On June 2, 2008, the Senate agreed to consider a bill (S. 3036) to control greenhouse gas emissions in the United States. In the 111th Congress, leadership in both chambers have announced their intentions to pass bills in 2009 to reduce greenhouse gas emissions. These actions are indicative of the pressures Members of Congress increasingly face on whether and how to address human-induced climate change. Contentious debates scrutinize issues of science, economics, values, geopolitics and a host of other concerns. Deliberations also weigh the appropriateness of alternative policy tools and...

Higher Education Tax Credits: An Economic Analysis

Homeland Security Department: FY2009 Appropriations

This report describes the FY2009 appropriations for the Department of Homeland Security (DHS). The Administration requested a net appropriation of $38,849 million in budget authority for FY2009. The House Appropriations Committee reported its version of the FY2009 DHS Appropriations bill on June 24, 2008. The bill was filed on September 18, 2008, as H.R. 6947, and the accompanying report has been numbered H.Rept. 110-862. House-reported H.R. 6947 would have provided a net appropriation of $41,137 million in budget authority for DHS for FY2009. This amounted to an increase of $2,288...

Government Interventions in Financial Markets: Economic and Historic Analysis of Subprime Mortgage Options

This report summarizes and analyzes four previous government market interventions (Home Owners Loan Corporation in 1933, Continental Illinois in 1984, the savings and loan insurance fund shortfall in 1989, and the Latin American debt crisis in 1989), in light of current mortgage market conditions. Current proposals to help delinquent homeowners share many features in common with all of these actions.

The Home Owners Loan Corporation (HOLC) purchased delinquent mortgages at a discount and worked with homeowners to restructure the mortgages into more manageable terms. HOLC accepted slightly...

The FHA Modernization Act of 2008

The Federal Housing Administration (FHA) has been insuring lenders against loss on home loans since 1934, and has insured about 35 million homes at a mortgage volume of about $2 trillion. In past years, FHA was often the innovator in testing new mortgage products, but in recent years the private mortgage market has been offering mortgages that appealed to borrowers who otherwise may have sought FHA-insured home loans. As a result, the FHA share of the mortgage market declined. FHA reform measures were debated in previous sessions of Congress, but FHA reform proved controversial and these...

Small Business Provisions in the American Recovery and Reinvestment Act of 2009

This report provides an overview of key provisions related to the Small Business Administration (SBA), based on appropriations in the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5).

China’s Sovereign Wealth Fund

China established its major sovereign wealth fund, the China Investment Corporation (CIC) on September 29, 2007—six months after it first announced its intention to create such a fund. Financed with $200 billion in initial capital, the CIC is one of the largest sovereign wealth funds (SWFs) in the world.

The creation of CIC was somewhat controversial in China. Both the People’s Bank of China (PBOC) and the Ministry of Finance (MOF) reportedly wanted the CIC under their authority. In the end, the CIC reports directly to China’s ruling State Council. However, as part of the interagency...

Foreign Students in the United States: Policies and Legislation

In the midst an economic downturn, colleges and universities in the United States are finding themselves confronting economic difficulties. Foreign students have historically been an important source of revenue for colleges and universities because unlike many of their native counterparts, foreign students frequently do not receive financial aid from the university—particularly at the undergraduate level. Despite the financial justifications for admitting large numbers of foreign students, critics of foreign student admissions generally raise two objections. The first objection is that...

The First-Time Homebuyer Tax Credit: An Economic Analysis

This report analyzes the ability of the first-time homebuyer tax credit to stimulate home buying and stabilize home prices. It includes information about current economic conditions, the tax credit with an economic analysis, marginal first-time home buyers, the cost of home ownership, the influence of the economy, and information about policy options and specific ways to adjust the tax credit.

Israel and Hamas: Conflict in Gaza

This report closely examines the conflict in Gaza (2008-2009), assessing the impact of the conflict on civilians, possible consequences and unresolved issues, the regional and international implications and possible modes of action for the 111th Congress to consider in response.

Troubled Asset Relief Program and Foreclosures

Increasing foreclosure rates and problems in financial markets are some of the issues addressed in the Emergency Economic Stabilization Act of 2008 (P.L. 110 343), which created the Troubled Asset Relief Plan (TARP). This report is concerned with Title II of the bill, which would require the Treasury to spend a minimum of $40 billion of the second $350 billion on foreclosure mitigation.

Auction Basics: Background for Assessing Proposed Treasury Purchases of Mortgage-Backed Securities

To address the turmoil in financial markets, the Emergency Economic Stabilization Act (EESA; H.R. 1424, P.L. 110-343), enacted on October 3, 2008, authorizes purchases of “troubled assets.” The act passed the Senate on October 1, 2008, passed the House on October 3, 2008, and was signed into law the same day. While the last Bush Administration Treasury Secretary, Henry Paulson, initially proposed using reverse Dutch auctions to purchase troubled assets—primarily mortgage-related securities from financial institutions—he soon chose to shelve the reverse auction program. A “Financial...

China-U.S. Relations in the 110th Congress: Issues and Implications for U.S. Policy

This report deals with U.S.-China relations during the 110th Congress (2007-2008) and with a number of key events involving China during the two-year period. These events included: China’s anti-satellite weapon test (January 2007); the 17th Party Congress (October 2007); a crackdown against demonstrations in Tibet (March 2008); the election of a new, pro-engagement government in Taiwan (March 2008); the massive Sichuan earthquake (May 2008); and Beijing’s hosting of the 2008 Olympics (August 2008).

U.S.-China relations were remarkably smooth for much of the 110th, although there were...

U.S. Patent and Trademark Office Reforms: Regulatory Impacts Upon Innovation and Competition

Congressional interest in the patent system has been evidenced by discussion of substantial reform bills in previous sessions. Alongside these congressional proposals, the United States Patent and Trademark Office (USPTO) has engaged in a significant rulemaking effort in recent years. This process culminated in new rules that would make several significant changes to the patent acquisition process.

First, the rules would limit the number of “continued applications” that could be filed, absent a petition and showing by the patent applicant of the need for such applications. Stated...

Should the Federal Reserve Adopt an Inflation Target?

Some economists have long criticized the American model of central banking for featuring multiple policy goals, discretion on the part of the central bankers as to which goal to emphasize, freedom in the choice of instruments to achieve the policy goals, and rather vague accountability for policy failures if, indeed, these can even be identified. Recently, the critics have urged that the multiple policy goals of the Federal Reserve (Fed) be replaced by a single goal of price stability. Critics believe that central bankers tend to use their discretionary powers to achieve political as well...

Financing Recovery from Large-Scale Natural Disasters

This report provides an analysis of the challenges facing property and casualty insurance and reinsurance companies in financing large-scale natural disasters, particularly during financial market turmoil.

Ocean Piracy and Its Impact on Insurance

This report examines the issue of piracy off the coast of East Africa in the Indian Ocean and the Gulf of Aden. The report looks into the impact of such piracy on the insurance industry and explains the available options for Congress to mitigate piracy's negative effects on the industry.

Livestock Marketing and Competition Issues

Changes in the structure and business methods of livestock and meat production and marketing—sometimes referred to as consolidation, concentration and/or vertical integration—have long generated interest and controversy in Congress. The top four firms slaughtered 69% of all U.S. cattle in 2006. In 1985, the then-top four packers accounted for 39% of all cattle slaughter, according to industry and USDA statistics. Since 2007, however, some approved and planned acquisitions in the beef packing sector could further alter these statistics. In the beef sector, one company now accounts for a...

Taxes and Offshore Outsourcing

The impact of taxes on international trade and investment has been debated for decades. Most recently, a variety of bills addressing international taxation were introduced in the 110th Congress—some would have cut taxes for U.S. firms overseas, while others would have increased taxes on foreign investment. The debate over taxes and foreign outsourcing has tended to grow more heated during times of domestic economic weakness and high unemployment; questions arise over whether taxes contribute to such weakness by discouraging exports (or encouraging imports) or by encouraging U.S. firms to...

Sugar Policy and the 2008 Farm Bill

Congress reauthorized the sugar price support program with some changes in the Food, Conservation, and Energy Act of 2008 (P.L. 110-246, the enacted 2008 farm bill). The sugar program is designed to guarantee the price received by sugar crop growers and processors and is intended to operate at “no cost” to the U.S. Treasury. To accomplish this, the U.S. Department of Agriculture (USDA) controls supply by limiting the amount of sugar that processors can sell domestically under “marketing allotments” and restricts imports. At the same time, USDA seeks to ensure that supplies of sugar are...

Financial Market Intervention

This report provides answers to some frequently asked questions concerning ongoing financial disruptions and the Troubled Asset Relief Program (TARP). It also summarizes legislation in the 111th Congress such as H.R. 384, the TARP Reform and Accountability Act of 2009 and H.R. 703, "Promoting Bank Liquidity and Lending Through Deposit Insurance, Hope for Homeowners, and other Enhancements."

Russia’s Accession to the WTO

In 1993, Russia formally applied for accession to the General Agreement on Tariffs and Trade (GATT). Its application was taken up by the World Trade Organization (WTO), the successor organization of the GATT, in 1995. Russia’s application has entered into its most significant phase as Russia negotiates with WTO members on the conditions for accession.

Accession to the WTO had been critical to Russia and its political leadership. President, now Prime Minister, Vladimir Putin had made it a top priority. However, in the last year, Russian leaders have sent mixed signals regarding their...

Infrastructure Programs: What's Different About Broadband?

This report discusses the unique characteristics that may dictate that government programs in support of broadband deployment be structured differently than conventional infrastructure programs.

Sovereign Wealth Funds: Background and Policy Issues for Congress

Sovereign wealth funds (SWFs) are investment funds owned and managed by national governments. Such funds currently manage between $1.9 and $2.9 trillion and are expected to grow to over $10 trillion by 2015. This is due to the rapid growth of commodity prices and large trade surpluses in several emerging market economies. Beginning in 2007, interest in SWFs increased as Asian and Middle Eastern SWFs, fueled by surging foreign exchange reserves, invested large sums of capital in U.S. and other Western companies.

Policy makers in the United States have raised two broad policy concerns...

Fishery, Aquaculture, and Marine Mammal Legislation in the 110th Congress

Aquaculture — the farming of fish, shellfish, and other aquatic animals and plants in a controlled environment — is expanding rapidly abroad, with more modest advances in the United States. This report discusses the federal laws and regulations that guide the management of resources in open ocean and near-shore coastal areas.

Animal Agriculture: 2008 Farm Bill Issues

With a few exceptions (such as milk), the products of animal agriculture are not eligible for the price and income supports that Congress historically has written into farm bills for major row crops such as grains, cotton, and oilseeds. However, the meat and poultry industries do look to the federal government for leadership and support in promoting their exports, resolving trade disputes, and reassuring markets that their products are safe, of high quality, and disease-free. Farm bills can contain policy guidance and resources to help achieve these objectives.

Animal producers closely...

The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR)

The United States Trade Representative (USTR) and trade ministers from Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic signed the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) on August 5, 2004. Nearly one year later, it faced a contentious debate and close vote in both houses of the U.S. Congress. The Senate passed implementing legislation 54 to 45 on June 30, 2005, with the House following in kind 217 to 215 on July 28, 2005. President Bush signed the legislation into law on August 2, 2005 (P.L. 109-53, 119 Stat....

The Cost of Government Financial Interventions, Past and Present

The results of previous government financial interventions are summarized in this report. In response to ongoing financial turmoil that began in the subprime mortgage-backed securities market, the federal government has intervened with private corporations on a large scale and in an ad hoc manner three times from the beginning of 2008 through September 19, 2008.

The Role of Public Works Infrastructure in Economic Stimulus

Interest in using federal government spending to stimulate U.S. economic recovery has intensified recently in response to indicators showing significant deterioration of the economy. Policymakers at all levels of government are debating a range of options to address these problems. Some favor using traditional monetary and fiscal policies. Others, however, favor making accelerated investments in the nation’s public infrastructure in order to create jobs while also meeting infrastructure needs. This report is an overview of policy issues associated with the approach of using infrastructure...

Income Inequality and the U.S. Tax System

Supplemental Appropriations: Trends and Budgetary Impacts Since 1981

Economic Slowdown: Issues and Policies

Federal Deposit and Share Insurance: Proposals for Change

Carbon Control in the U.S. Electricity Sector: Key Implementation Uncertainties

Congress has been debating a range of potential initiatives for reducing atmospheric CO2 from U.S. sources. Legislative proposals would seek to limit U.S. CO2 emissions to historical levels through emissions caps, carbon taxes, or other mechanisms. In the 110th Congress, the most prominent CO2 proposals sought reductions of nationwide CO2 emissions to 1990 levels or lower by 2030. President-elect Barack Obama has proposed cutting carbon CO2 emissions to 1990 levels by 2020, and by an additional 80% by 2050.

A fundamental question arising from carbon control proposals is how the CO2...

“Carbon Leakage” and Trade: Issues and Approaches

As the debate on reducing greenhouse gases (GHGs) has progressed, increasing concern has been raised about how a U.S. reduction program would interact with those of other countries. In a global context where currently some countries have legally binding policies to reduce greenhouse gas emission and other countries do not—i.e., differentiated global carbon policies—the potential exists that countries imposing carbon control policies will find themselves at a competitive disadvantage vis-à-vis countries without comparable policies.

The risks accompanying establishment of carbon control...

Chrysler Corporation Loan Guarantee Act of 1979: Background, Provisions, and Cost

A look at how the Chrysler Loan Guarantee Act of 1979 affected TARP funding for the Detroit Big Three.

What is a Recession and Who Decided When It Started?

The National Bureau of Economic Research (NBER) recently announced that the economy had reached a cyclical peak and that a recession had begun in December 2007. A recession is one of several discrete phases in the overall business cycle. The term may often be used loosely to describe an economy that is slowing down or characterized by weakness in at least one major sector like the housing market. When used by economists, “recession” means a significant decline in overall economic activity that lasts more than a few months. NBER business cycle dating committee is the generally recognized...

Health Insurance Reform and the 110th Congress

Resale Price Maintenance No Longer a Per Se Antitrust Offense: Leegin Creative Leather Products v. PSKS, Inc.

The plaintiff in Leegin Creative Leather Products v. PSKS, Inc. successfully asked the Supreme Court to soften the longstanding treatment of resale price maintenance (RPM, vertical imposition of direct, minimum price restraints) as a per se (automatic, and not capable of being justified) antitrust offense. RPM had been so analyzed since the Court decided in 1911 that a manufacturer of patent medicines could not lawfully agree with retailers of its products on the prices at which those products would be sold (Dr. Miles Medical Company v. John D. Park & Sons Company, 220 U.S. 373). Such...

Government Spending or Tax Reduction: Which Might Add More Stimulus to the Economy?

Some policymakers have called for another “stimulus” package to boost economic activity in response to the recession that began in December 2007. A fundamental difference between stimulus proposals is how much of the stimulus should be composed of government spending and how much should be composed of tax cuts. This report considers that issue in the context of conventional economic analysis. It first identifies any policy measure that increases the budget deficit (or reduces a surplus) and is not entirely saved by the recipient as “stimulative” if the economy is operating below its full...

Housing and Economic Recovery Act of 2008

The Housing and Economic Recovery Act of 2008, P.L. 110-289, is likely to affect most owner-occupied housing in the United States through a variety of channels.

The act creates a new, stronger, unified regulator for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (the housing GSEs). As a result of various provisions in the act, the secondary mortgage market is likely to be broadly affected. For example, the Secretary of the Treasury is given (until December 31, 2009) the authority to lend or invest in the housing GSEs on whatever terms the Secretary determines to be appropriate....

Current Economic Conditions and Selected Forecasts

Presidential Libraries: The Federal System and Related Legislation

This report provides a brief overview of the federal presidential libraries system and tracks the progress of related legislation.

The Executive Office of the President: An Historical Overview

Resolving Legislative Differences in Congress: Conference Committees and Amendments Between the Houses

This report summarizes the procedures the two houses of Congress use most frequently to resolve their legislative differences. It is based upon an interpretation of the rules and published precedents of the House and Senate, and an analysis of the application of these rules and precedents in recent practice. It bears emphasizing that

this report is not exhaustive nor is it in any way an official statement of House or Senate procedures. It may serve as a useful introduction or general guide, but it should not be considered an adequate substitute for a study of House and Senate rules and...

Executive Branch Reorganization and Management Initiatives: A Brief Overview

This report provides a brief overview of recent executive branch reorganization actions and related management initiatives. It reviews the relevant plans and preparations of President-elect Barack Obama as the new Administration transitions to assuming management of the executive branch. Briefly examined, as well, are the organization and management efforts of the most recent regimes.

Global Climate Change: Three Policy Perspectives

The 1992 U.N. Framework Convention on Climate Change requires that signatories, including the United States, establish policies for constraining future emission levels of greenhouse gases, including carbon dioxide (CO2). The George H. W. Bush, Clinton, and George W. Bush Administrations each drafted action plans in response to requirements of the convention. These plans have raised significant controversy and debate.

This debate intensified following the 1997 Kyoto Agreement, which, had it been ratified by the United States, would have committed the United States to reduce greenhouse gases...

An Overview of Tax Benefits for Higher Education Expenses

Containing Financial Crisis

Climate Change and the EU Emissions Trading Scheme (ETS): Kyoto and Beyond

The European Union’s (EU) Emissions Trading Scheme (ETS) is a cornerstone of the EU’s efforts to meet its obligation under the Kyoto Protocol. It covers more than 10,000 energy intensive facilities across the 27 EU Member countries; covered entities emit about 45% of the EU’s carbon dioxide emissions. A “Phase 1” trading period began January 1, 2005. A second, Phase 2, trading period began in 2008, covering the period of the Kyoto Protocol, with a Phase 3 proposed for 2013.

Several positives resulting from the Phase 1 “learning by doing” exercise assisted the ETS in making the Phase 2...

Worker Safety in the Construction Industry: The Crane and Derrick Standard

This report first examines the incidence of fatal and nonfatal on-the-job injuries in the private sector. It next analyzes the causes of fatalities in the construction industry and the involvement of cranes in those deaths. The report then addresses the status of a proposed rule to update the Occupational Safety and Health Administration's (OSHA) crane and derrick standard. It closes with an overview of jurisdictions having safety regulations for cranes more stringent, in whole or part, than the existing federal standard.

Membership of the 110th Congress: A Profile

Federal Budget Process Reform in the 110th Congress: A Brief Overview

Nonmarital Childbearing: Trends, Reasons, and Public Policy Interventions

In 2006, a record 38.5% of all United States births were nonmarital births. Many of these children grow up in mother-only families. Although most children who grow up in mother-only families or step-parent families become well-adjusted, productive adults, the bulk of empirical research indicates that children who grow up with only one biological parent in the home are more likely to be financially worse off and have worse socioeconomic outcomes (even after income differences are taken into account) compared to children who grow up with both biological parents in the home.

In recognition of...

Tax Reform: An Overview of Proposals in the 110th Congress

"Fast Track" Parliamentary Procedures of the Emergency Economic Stabilization Act

The Emergency Economic Stabilization Act of 2008 (Division A of H.R. 1424, P.L. 110-343) empowers the Secretary of the Treasury to purchase certain "troubled assets" as a means to stabilize the economy. This report examines this procedure and explains how it

differs from the regular parliamentary mechanisms of the House and Senate.

Power Plants: Characteristics and Costs

This report analyzes the factors that determine the cost of electricity from new power plants. These factors—including construction costs, fuel expense, environmental regulations, and financing costs—can all be affected by government energy, environmental, and economic policies. Government decisions to influence, or not influence, these factors can largely determine the kind of power plants that are built in the future. For example, government policies aimed at reducing the cost of constructing power plants could especially benefit nuclear plants, which are costly to build. Policies that...

Tax Gap and Tax Enforcement

Homeland Emergency Preparedness and the National Exercise Program: Background, Policy Implications, and Issues for Congress

This report provides an overview of emergency preparedness authorities and guidance; development and management of the National Exercise Program (NEP); and current exercise planning, scheduling, and evaluation processes. Additionally, it provides analysis of national preparedness policy issues and exercise operations issues that Congress might wish to consider.

The 2008 Farm Bill: Major Provisions and Legislative Action

The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, “2008 farm bill”) was enacted into law on June 18, 2008. It contains 15 titles covering support for commodity crops, horticulture and livestock production, conservation, nutrition, trade and food aid, agricultural research, farm credit, rural development, energy, forestry, and other related programs. It also includes provisions that make certain changes to tax laws, in order to offset some new spending initiatives in the final bill. The enacted bill succeeds the most recent 2002 farm bill (P.L. 107-171) and is to guide most...

Argentina: Background and U.S. Relations

A South American nation with a population of around 40 million, Argentina returned to elected civilian democracy in 1983 after seven years of harsh military rule. In 2001-2002, the democratic political system experienced considerable stress as the country experienced a severe economic crisis, but ultimately weathered the storm. Current President Cristina Fernández de Kirchner, elected in October 2007, succeeded her husband President Néstor Kirchner (2003-2007), who had made popular policy moves regarding human rights, institutional reform, and economic policy that helped restore...

Housing Issues in the 110th Congress

Securitization and Federal Regulation of Mortgages for Safety and Soundness

Gasoline and Oil Prices

The U.S. Postal Service’s Use of Contractors to Deliver Mail

Federal Reserve Interest Rate Changes: 2001-2008

The Federal Open Market Committee (FOMC) decided at its scheduled meeting held on October 29 to lower the target rate for federal funds to 1% from 1½% set at its unscheduled meeting of October 8, 2008. In making its decision to reduce the target, the FOMC stressed the following factors: (1) the pace of economic growth appears to have slowed markedly owing importantly to a softening of consumer spending; (2) business equipment spending and industrial production have weakened; (3) economic slowdowns abroad have dampened the prospects for U.S. exports; (4) intensified strains in financial...

Reporting Issues Under the Home Mortgage Disclosure Act

Recent developments in the subprime home loan market have triggered concern in Congress and the public at large as to whether borrowers were fully informed about the terms of their mortgage loans. Some observers have suggested that some borrowers in the subprime market may have been victims of predatory lending practices or other discriminatory activity. Bills introduced in the 110th Congress, such as S. 1299 (Senator Charles Schumer et al.) and S. 2452 (Senator Christopher Dodd et al.) would seek to remedy perceived abuses particularly with higher-priced mortgage lending.

This report...

The Executive Schedule IV Pay Cap on General Schedule Compensation

Who Are the "Middle Class"?

There is no consensus definition of "middle class," neither is there an official government definition. What constitutes the middle class is relative, subjective, and not easily defined. The mid-point in the distribution is the median, and in 2007 the median household income was $50,233. How far above and below that amount the middle stretches remains an open question. This report explores the various definitions of the middle class and what salary ranges those definitions encompass, as well as related statistics and surveys that support this information.

Annuities and the Securities and Exchange Commission Proposed Rule 151A

The Securities and Exchange Commission (SEC) recently released a proposed rule that would effectively reclassify equity indexed annuities as a security product in addition to being an insurance product. This report presents the different types of annuities, explains the taxation of annuities, and disentangles the federal and state roles in the regulation of annuities. It outlines the proposed SEC rule and its current status.

Wind Power in the United States: Technology, Economic, and Policy Issues

Rising energy prices and concern over greenhouse gas emissions have focused congressional attention on energy alternatives, including wind power. Although wind power currently provides only about 1% of U.S. electricity needs, it is growing more rapidly than any other energy source. In 2007, over 5,000 megawatts of new wind generating capacity were installed in the United States, second only to new natural gas-fired generating capacity. Wind power has become “mainstream” in many regions of the country, and is no longer considered an “alternative” energy source.

Wind energy has become...

The Child Tax Credit

Nominations to Article III Lower Courts by President George W. Bush During the 110th Congress

This report tracks nominations made by President George W. Bush to judgeships on the U.S. courts of appeals, the U.S. district courts, and the U.S. Court of International Trade — the lower courts on which, pursuant to Article III of the Constitution, judges serve "during good Behaviour." It lists and keeps count of all nominations made to these courts during the 110th Congress, including pertinent actions taken by the Senate Judiciary Committee and the full Senate. It also tracks the number of judicial vacancies on the courts (including vacancies classified by the federal judiciary as...

The Process, Data, and Costs of Mortgage Foreclosure

FY2009 Appropriations for State and Local Homeland Security

Congress appropriated, in P.L. 110-329, approximately $4.36 billion for state and local homeland security assistance programs. This is approximately $135 million more than was appropriated in FY2008 ($4.22 billion). Congress chose not to fund the Real ID program in FY2009, however, it did appropriate funding ($2 million) for a new

assistance program titled the Center for Counterterrorism and Cyber Crime at Norwich University in Northfield, Vermont.

Expedited Funds Availability/Check-Holds

Financial Turmoil: Comparing the Troubled Asset Relief Program to the Federal Reserve's Response

As financial conditions have deteriorated over the past year, the Federal Reserve (FeD) has greatly increased its lending to financial firms. It has also expanded the scope of eligible borrowers to include non-bank financial firms. Some have asked why these loans have not restored financial stability, and if the purchase of up to $700 billion of distressed assets through the recently enacted Troubled Asset Relief Program (TARP) might lead to a different result. Financial assistance to financial firms entails considerable risks to taxpayers. This report analyzes the risks and possible...

Presidential Succession: Perspectives, Contemporary Analysis, and 110th Congress Proposed Legislation

This report provides analytical perspective on presidential succession questions in U.S. history, identifies and assesses contemporary succession issues, and identifies and analyzes relevant legislation offered in the 110th Congress.

Education Tax Benefits: Are They Permanent or Temporary?

Minerals Price Increases and Volatility: Causes and Consequences

This report discusses China's efforts to improve and increase its access to foreign mineral resources, which may have the effect of raising prices for U.S. domestic industrial users. The report examines in detail the relationship between prices, production, and availability of selected metal minerals essential to the U.S. economy. It focuses on iron ore, aluminum (bauxite/alumina), copper, manganese, molybdenum (moly), zinc, platinum group metals (PGMs), and uranium.

Farm Commodity Programs in the 2008 Farm Bill

Farm commodity price and income support provisions in the Food, Conservation, and Energy Act of 2008 (P.L. 110-246, the 2008 farm bill) include three primary types of payments: Direct payments unrelated to production or prices; Counter-cyclical payments for a commodity that are triggered when (a) prices are below statutorily-determined target prices, or (b) revenue falls below a historical guaranteed level; and Marketing assistance loans that offer interim financing and, if prices fall below loan prices set in statute, additional income support. The farm commodity programs are the most...

Hedge Fund Failures

The U.S. Financial Crisis: Lessons from Sweden

In the early 1990s, Sweden faced a large banking and exchange rate crisis which it eventually resolved. Four lessons that emerged from Sweden's experience are: 1) the resolution process must be transparent; 2) the resolution agency must be politically and financially independent; 3) market discipline must be maintained; and 4) there must be a plan to jump-start credit flows in the financial system. This report provides an overview of the Swedish banking crisis and an explanation of the measures Sweden used to restore its banking system to health.

The Resolution Trust Corporation: Historical Analysis

In a 1989 legislative response to financial troubles in the thrift industry, the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA, P.L. 101-73) was enacted: FIRREA’s principal mission was to conduct a partially tax-payer funded program to address the troubles of the nation’s many insolvent thrifts. To do so, it established a new entity, the Resolution Trust Corporation (RTC), whose mission was to address troubled thrifts by arranging their sale to other institutions or shuttering them and disposing of their assets. The RTC would eventually obtain $105 billion in...

Statutory Offices of Inspector General: Past and Present

Statutory offices of inspector general (OIG) consolidate responsibility for audits and investigations within a federal agency. Established by public law as permanent, nonpartisan, independent offices, they now exist in more than 60 establishments and entities, including all departments and largest agencies, along with numerous boards and commissions. Under two major enactments—the Inspector General Act of 1978 and its amendments of 1988—inspectors general are granted substantial independence and powers to carry out their mandate to combat waste, fraud, and abuse. Recent initiatives have...

Proposal to Allow Treasury to Buy Mortgage-Related Assets to Address Financial Instability

Financial markets underwent severe stress during the week of September 15 - 22, 2008. After Lehman Brothers declared bankruptcy and AIG received a bridge loan from the Federal Reserve, policymakers reassessed their case-by-case approach to resolving financial problems. Secretary of the Treasury Paulson announced a plan to allow Treasury to purchase mortgage-related assets from U.S. financial institutions. The announced intent of the plan is to unclog financial markets, increase the health of the banking sector, and reduce ongoing risks to the economy. This report discusses a draft

of the...

National Flood Insurance Program: Treasury Borrowing in the Aftermath of Hurricane Katrina

In 2008, Hurricanes Ike, Gustav, and Dolly made landfall in the United States, causing widespread flood damage. Exactly three years earlier, claims and expenses related to the massive flooding caused by Hurricanes Katrina, Rita, and Wilma had financially overwhelmed the National Flood Insurance Program (NFIP). The Federal Emergency Management Agency (FEMA) estimates that the NFIP will need about $3 billion in additional borrowing authority to cover the claims currently outstanding and a yet to be determined amount for the 2008 Hurricanes. Congress is currently working to reform the NFIP...

Reauthorization of the Federal Maritime Commission (FMC): Opportunity to Reexamine the Congressionally Mandated Antitrust Exemption for Ocean Liner Carriers?

The focus of this report is on the commercial aspects of the U.S. liner trade. The report discusses the historical rationale for shipping conferences and legislative history of U.S. shipping law.

State and Local Taxes and the Streamlined Sales and Use Tax Agreement

Emergency Communications Legislation: Implications for the 110th Congress

Since September 11, 2001, several bills introduced in the U.S. Congress have included provisions to assist emergency communications. Key provisions from a number of these bills have become law.

Legislation addressing communications among first responders focused first on interoperability—the capability of different systems to connect—with provisions in the Homeland Security Act (P.L. 107-296). The Intelligence Reform and Terrorism Prevention Act (P.L. 108-458) provided more comprehensive language that included requirements for developing a national approach to achieving interoperability....

Fannie Mae and Freddie Mac in Conservatorship

On September 7, 2008, the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) that play a critical play in the U.S. home mortgage market, in conservatorship. As conservator, the FHFA has full powers to control the assets and operation of the firms. Dividends to common and preferred shareholders are suspended, but the U.S. Treasury has put in place a set of financing agreements to ensure that the GSEs continue to meet their obligations to holders of bonds that they have issued or guaranteed. This means that the U.S. taxpayer...

Productivity Growth: Trends and Prospects

Economic Analysis of a Mortgage Foreclosure Moratorium

This report discusses the legislation that creates a voluntary program to enable troubled mortgage borrowers and lenders to refinance their loans through the Federal Housing Administration (FHA)

Vulnerability of Concentrated Critical Infrastructure: Background and Policy Options

“Critical infrastructure” consists of systems and assets so vital to the United States that their incapacity would harm the nation’s physical security, economic security, or public health. Critical infrastructure is often geographically concentrated, so it may be distinctly vulnerable to events like natural disasters, epidemics, and certain kinds of terrorist attacks. Disruption of concentrated infrastructure could have greatly disproportionate effects, with costs potentially running into billions of dollars and spreading far beyond the immediate area of disturbance. Hurricane Katrina in...

The Alaska Natural Gas Pipeline: Status and Current Policy Issues

This report provides a brief review of efforts to develop and construct a natural gas pipeline from Prudhoe Bay, a status report on recent efforts to proceed, and an analysis of major relevant policy issues.

State and Local Taxes and the Federal Alternative Minimum Tax

Credit Default Swaps: Frequently Asked Questions

Government-Sponsored Enterprises (GSEs): An Institutional Overview

Congress chartered government-sponsored enterprises (GSEs) to improve the workings of credit markets. This report briefly describes the nature of GSEs, their mixed governmental-private nature, the differences between GSEs and government agencies, and the arguments for and against GSEs.

The Higher Education Opportunity Act: Reauthorization of the Higher Education Act

The Higher Education Act of 1965 (HEA; P.L. 89-329), as amended, authorizes a broad array of federal student aid programs that assist students and their families with paying for or financing the costs of obtaining a postsecondary education. The HEA also authorizes a series of programs that provide federal aid and support to institutions of higher education. HEA programs are administered by the U.S. Department of Education (ED).

In the 110th Congress, the Higher Education Opportunity Act (HEOA; P.L. 110-315) was enacted to amend, extend, and establish new programs under the Higher Education...

Major Tax Issues in the 110th Congress

The U.S. Farm Economy

H.R. 6076: Home Retention and Economic Stabilization Act of 2008

The Home Retention and Economic Stabilization Act of 2008 would defer foreclosure for eligible mortgage borrowers for up to 270 days. If passed, the bill would give extra time to some borrowers and lenders to consider alternatives to foreclosure, including traditional loss mitigation and participation in the new Federal Housing Administration (FHA) program for refinancing troubled loans. Some policymakers believe that a moratorium on foreclosures could help stabilize housing markets and alleviate problems from the subprime financial turmoil. This report explores this issue in detail and...

Low-Income Country Debt Cancellation: H.R. 2634 and S. 2166

This report discusses previous efforts to cancel debt owed by low-income countries. It summarizes the Jubilee debt reduction proposal and provides an overview of House and Senate action. It assesses the likely cost of a possible Jubilee debt reduction program. Finally, the report examines some possible implementation and policy issues.

North Korean Crime-for-Profit Activities

Strong indications exist that the North Korean (Democratic People’s Republic of Korea or DPRK) regime has been involved in the production and trafficking of illicit drugs, as well as of counterfeit currency, cigarettes, and pharmaceuticals. It appears that drug trafficking has declined and counterfeiting of cigarettes may be expanding. Reports indicate that North Korea may engage in insurance fraud, human trafficking, and wildlife trafficking as a matter of state policy. DPRK crime-for-profit activities have reportedly brought in important foreign currency resources and come under the...

Midwest Flooding Disaster: Rethinking Federal Flood Insurance?

Tax Credit Bonds: A Brief Explanation

This report provides a brief explanation on tax credit bonds (TCBs). The first section of this report examines the mechanics of TCBs in more detail. The second section of this report analyzes the market for TCBs relative to municipal and corporate bonds.

General Services Administration Prospectus Thresholds for Owned and Leased Federal Facilities

The General Services Administration (GSA) oversees GSA-owned and -leased federal buildings and courthouses. This report provides an overview of the funding for GSA, GSA procedures, and related legislation, especially in light of recent disasters, i.e., hurricanes, flooding, etc.

Comparing Global Influence: China’s and U.S. Diplomacy, Foreign Aid, Trade, and Investment in the Developing World

This report compares the People’s Republic of China’s (PRC) and U.S. projections of global influence, with an emphasis on non-coercive means or “soft power,” and suggests ways to think about U.S. foreign policy options in light of China’s emergence. Part One discusses U.S. foreign policy interests, China’s rising influence, and its implications for the United States. Part Two compares the global public images of the two countries and describes PRC and U.S. uses of soft power tools, such as public diplomacy, state diplomacy, and foreign assistance. It also examines other forms of soft power...

Nomination and Confirmation of Lower Federal Court Judges in Presidential Election Years

This report seeks to shed light on whether Senate processing of lower court nominations, particularly to the courts of appeals, has tended over recent decades to slow down in presidential election years. The report begins by reviewing recent debate, and historical events dating back to 1980, concerning whether the Senate and its Judiciary Committee customarily observe a practice referred to as the "Thurmond rule." Next, the report provides narratives on each presidential election year from 1980 to 2004, reviewing Senate and committee actions taken on court of appeals and district court...

Economics of Guaranteed Student Loans

Since 1966, the federal government has provided guarantees and subsidies to approved private lenders or certain state government entities that make student loans. College graduates’ enhanced human capital is generally not viewed as collateral. Lenders, without federal subsidies and guarantees, would charge interest rates more in line with other unsecured loans, such as credit card debt, that could push the financial costs of higher education beyond the reach of many students and their families. Although federal subsidies for student lenders have probably expanded access to higher...

Congressional Influence on Rulemaking and Regulation Through Appropriations Restrictions

This report examines the Consolidated Appropriations Act for 2008, and identifies four types of such provisions: (1) restrictions on the finalization of particular proposed rules, (2) restrictions on regulatory activity within certain areas, (3) implementation or enforcement restrictions, and (4) conditional restrictions (e.g., preventing implementation of a rule until certain actions are taken). The report then examines appropriations acts in nine previous fiscal years, noting that some provisions have been included in appropriations bills every year, and others have appeared for several...

Reforming the Regulation of Government-Sponsored Enterprises in the 110th Congress

This report provides background on the government-sponsored enterprises (GSEs), discusses reform issues, and summarizes the provisions of House- and Senate-passed versions of H.R. 3221.

Why Has the Economy Become Less Volatile?

Job Loss: Causes and Policy Implications

Total nonfarm private employment has fallen since the beginning of 2008. Job loss is one of the most important macroeconomic problems facing policymakers, both in terms of its economic and social cost. But what is often missing from the policy debate is a distinction between net job loss and gross job loss. Gross job loss is the total number of jobs eliminated by all contracting firms in a given period, whereas net job loss is the result of greater gross job loss than gross job gains in a given period. Economists view net job loss as a detrimental phenomenon, and most recommend that fiscal...

U.S. Assistance to North Korea

This report summarizes U.S. assistance to the Democratic People's Republic of North Korea (DPRK, also known as North Korea). It will be updated periodically to track changes in U.S. provision of aid to North Korea.

Financing Issues and Economic Effects of American Wars

The increased government outlays associated with wars can be financed in four ways: through higher taxes, reductions in other government spending, government borrowing from the public, or money creation. The first two methods are unlikely to have an effect on economic growth (aggregate demand) in the short run: the expansion in aggregate demand caused by greater military outlays is offset by the contraction in aggregate demand caused by higher taxes or lower non-military government spending. The latter two methods increase aggregate demand. Thus, a by-product of American wars has typically...

Credit Union, Bank, and Thrift Regulatory Relief Act of 2008

Credit unions, banks and thrifts (savings associations) are subject to numerous safety, soundness, and consumer protection laws and regulations. Since 2001, both the banking/thrift and the credit union industries have worked with Congress to develop legislative proposals that would reduce existing regulatory requirements and what are seen as the burdens compliance enforcement places on depository financial institutions. During the 109th Congress, legislation was enacted (P.L. 109-351; 120 Stat. 1966) that provided some of the changes sought by the industries. The statute reduced regulatory...

Freedom of Information Act (FOIA) Amendments: 110th Congress

Community Reinvestment Act: Regulation and Legislation

This report begins with a brief outline of the Community Reinvestment Act of 1977 (CRA) statute and the regulations. It also assesses the costs and the benefits of the 1977 act. The report then turns to regulatory agencies’ recent CRA compliance rules. The two last sections of the report briefly summarize the provisions of the Community Reinvestment Modernization Act of 2007 and conclude with some implications.

Federal Advisory Committees: A Primer

FY2008 Spring Supplemental Appropriations and FY2009 Bridge Appropriations for Military Operations, International Affairs, and Other Purposes (P.L. 110-252)

On June 30, 2008, President Bush signed into law a bill, H.R. 2642 (P.L. 110-252), that makes supplemental appropriations for FY2008 and FY2009, extends unemployment payments, and expands veterans’ educational benefits. The House approved the measure on June 19 and the Senate on June 26. As enacted, the bill reflects compromises with the White House on several key issues. It extends unemployment benefits for 13 weeks but not 26, allows veterans’ educational benefits to be transferred to dependents, does not include an offsetting tax increase, limits other domestic spending, and delays...

Primer on Energy Derivatives and Their Regulation

This report presents basic information about over-the-counter(OTC) markets, the instruments traded, the regulatory framework, speculation, and current legislative proposals.

Senate Administrative Officers and Officials

Weak Dollar, Strong Dollar Causes and Consequences

This report provides background information on the forces that most likely determine the path of the dollar exchange rate. The report also considers recent events in international markets for goods and assets as well as suggest what implications these forces carry for the state of the U.S. economy and for economic policy.

Federal Financial Services Regulatory Consolidation: An Overview

Public-Private Partnerships in Highway and Transit Infrastructure Provision

This report begins with a brief discussion of the surface transportation system and its financing needs as background to the debate on public-private partnerships (PPPs). That is followed by sections describing the different types of PPPs, with details of a few prominent examples, and the development of federal legislation with respect to PPPs. The report then discusses the main issues of contention with the construction and longterm leasing of highways by the private sector, particularly as they relate to the funding, planning, and operation of the surface transportation system, before...

The Enron Loophole

This report discusses the Commodity Exchange Act that exempts certain energy derivatives contracts from regulation by the Commodity Futures Trading Commission (CFTC).

Regulation of Energy Derivatives

This report analyzes the development of energy derivatives regulation.

Internet Taxation: Issues and Legislation

Pages of the United States Congress: History, Background Information, and Proposals for Change

This report provides a brief history of the congressional page programs, including their duties, and background information about House and Senate pages. It also has an overview of changes and reforms from 1981-2001, and proposed changes, reforms, and various issues.

Record Voting in the House of Representatives: Issues and Options

Record voting in the House of Representatives appears to be a straightforward process but is an activity steeped in parliamentary complexity. While this report analyzes the evolution of voting beginning with the Legislative Reorganization Act of 1970 (LRA), some House rules related to voting have existed since the First Congress. The House has had nearly 220 years of experience with voting that manifests itself in precedents relevant today.

The LRA contained two major departures related to record voting. First, it authorized development of an electronic voting system. Second, it allowed...

Tax Treatment of Employer Educational Assistance for the Benefit of Employees

Educational assistance offered by employers to their employees may be exempt from federal income tax under Section 127 and Section 132 of the Internal Revenue Code. Section 127 is the employer educational assistance exclusion; Section 132, the fringe benefit exclusion for working condition benefits (e.g., job-related eduction) among other benefits. Congress established the two tax provisions well before it enacted to her higher education tax benefits meant to assist taxpayers, their spouses, and dependents -- regardless of employment status -- pay current educational expenses incurred...

Estate Tax Legislation in the 110th Congress

North Korea: Economic Sanctions Prior to Removal from Terrorism Designation

This paper explains the U.S. economic sanctions in place up to the point when North Korea was delisted as a state sponsor of acts of international terrorism.

Until June 2008, U.S. economic sanctions were imposed against North Korea for five primary reasons: (1) North Korea is seen as posing a threat to U.S. national security; (2) North Korea is designated by the Secretary of State as a state sponsor or supporter of international terrorism; (3) North Korea is a Marxist-Leninist state, with a Communist government; (4) North Korea has been found by the State Department to have engaged in...

Side-by-Side Comparison of Flood Insurance Reform Legislation in the 110th Congress

This report provides background information regarding the National Flood Insurance Program (NFIP), and discusses the key points for flood insurance reform and the changes that should be made in the broader context of program re-authorization.

Possible Federal Revenue from Oil Development of ANWR and Nearby Areas

Recent high petroleum prices, and the related economic burden on consumers and energy-intensive industries, has raised the issue of stimulating domestic supplies of crude oil. One possible source is the coastal plain of the Arctic National Wildlife Refuge (ANWR), which is estimated to contain significant quantities of oil and gas. Interest in developing the ANWR oil resources has also focused on the revenues that the federal government could collect should exploration and development be successful. Some observers have suggested using such revenues for purposes such as providing relief to...

Asian Pacific Americans in the United States Congress

Asian Pacific Americans have served in both houses of Congress representing California, Hawaii, Louisiana, Oregon, Virginia, American Samoa, and Guam. They have served in leadership positions, including committee and subcommittee chairmanships. This report presents information on Senators, Representatives, and Delegates, including party affiliations, length and dates of service, and committee assignments.

State Corporate Income Taxes: A Description and Analysis

Mental Health Parity: Federal and State Action and Economic Impact

In the 110th Congress, the Senate and House have passed different versions of expanded mental health parity legislation (S. 558 and H.R. 1424). These bills have always been strongly supported by advocates for the mentally ill and have had broad, bipartisan support in Congress. Although employers and health insurance groups opposed the legislation in the past because of concern that it would drive up costs, the provisions in S. 558 now have their support. Expanded parity legislation was introduced in the 107th, 108th, and 109th Congresses, but each time it failed to pass.

Private health...

The 2008 Farm Bill: A Summary of Major Provisions and Legislative Action

The report discusses the 2008 farm bill (H.R. 2419), covering a wide range of programs including The Food, Conservation, and Energy Act of 2008, farm credit, agricultural conservation, research, rural development, and foreign and domestic food programs, among others.

Overview of the Executive Budget Process

Government Spending on Health Care Benefits and Programs: A Data Brief

In a country where health spending accounts for more than 16% of gross domestic product (GDP), health care costs and spending are often described as a problem for consumers and their families; for employers that provide (or seek to provide) health benefits; and for government, which finances a mix of health care services, health research and training, and health safety programs. To describe government spending on health care benefits and programs, this report presents data from the Office of Management and Budget (OMB), the Congressional Budget Office (CBO), and the Centers for Medicare...

The Federal Royalty and Tax Treatment of the Hardrock Mineral Industry: An Economic Analysis

Under current law, the hardrock mineral industry pays no royalty to the federal government for the privilege of extracting resources from federal lands. This differs from the federal policy toward the coal and oil/gas industries, the policy of State governments, and the leasing arrangements in the private sector, which often require bonus bids and an ad-valorem royalty on the value of the resulting output. Hardrock mining on acquired federal lands pays a 5% royalty.

The current federal policy toward hardrock minerals is inconsistent with the fundamental market principle that a royalty is a...

Presidential Appointments to Full-time Positions in Executive Departments During the 109th Congress, 2005-2006

During the 109th Congress, the President submitted to the Senate 283 nominations to executive department full-time positions. Of these 283 nominations, 233 were confirmed; nine were withdrawn; and 41 were returned to him in accordance with Senate rules. For those nominations that were confirmed, an average of 75 days elapsed between nomination and confirmation. The median number of days elapsed was 57. These statistics do not include the days during which the Senate was adjourned for its summer recesses and between sessions of Congress.

President George W. Bush made a total of 13 recess...

Tax Deductions for Catastrophic Risk Insurance Reserves: Explanation and Economic Analysis

According to the Insurance Services Office, Inc., (ISO), the property/casualty (p/c) insurance industry paid $62.2 billion in catastrophe losses from 24 disasters and more than 4.4 million claims in 2005, making 2005 the most costly year for catastrophe losses. This report begins by providing some background on the market for catastrophe insurance. It continues by describing the proposal for tax-deductible reserve accounts as set forth in H.R. 164/S. 926 of the 110th Congress, and concludes by providing an economic analysis of the plan.

Petroleum Refining: Economic Performance and Challenges for the Future

This report discusses the petroleum refining industry and its relation to the economy. Along with volatile changes in crude oil prices, the industry has faced evolving health, safety, and environmental requirements which have changed and multiplied product specifications and required capital investment in refineries. This report also seeks to describe the recent performance of the refining industry, to evaluate the structural changes that are occurring in the industry, and to analyze the nature and effects of the challenges confronting the industry.

Emission Allowance Allocation in a Cap-and-Trade Program: Options and Considerations

When designing a cap-and-trade program, one of the more controversial and challenging questions for policymakers is how, to whom, and for what purpose to distribute the emission allowances. Regarding the method of distribution to covered sources, policymakers could (1) sell the allowances through an auction process, (2) allocate the allowances at no cost to covered sources, (3) provide allowances to non-covered sources who would, in turn, sell them to covered sources, or (4) use some combination of these methods. Although the emission allocation method would not affect the environmental...

High Agricultural Commodity Prices: What Are the Issues?

Prices for nearly all major U.S. agricultural program crops—corn, barley, sorghum, oats, wheat, rice, and soybeans—have exhibited extreme price volatility since mid-2007, while rising to record or near-record levels in early 2008. Several international organizations have announced that the sharply rising commodity prices are likely to have dire consequences for the world’s vulnerable populations, particularly in import-dependent, less developed nations. In the United States, high commodity prices have pushed farm income to successive annual records and have sharply lowered government farm...

“Price Gouging,” the Antitrust Laws, and Vertical Integration in the Petroleum Industry: How They Are Related

The antitrust laws and statutes to prohibit “price gouging” each aim to serve the same end—realization of lower or reasonable prices for consumers, but they do so from different perspectives. Antitrust law operates on the premise that vigorous and unfettered marketplace competition will yield the most advantageous result for consumers. Statutes concerning “price gouging,” by contrast, are direct consumer-protection measures, generally making no reference to competition. Statutes to limit the extent of vertical integration in the petroleum industry (common ownership of different stages of...

Tax Treaty Legislation in the 110th Congress: Explanation and Economic Analysis

This report discusses the proposals that are designed to curb “treaty shopping” — instances where a foreign parent firm in one country receives its U.S.-source income through an intermediate subsidiary in a third country that is signatory to a tax-reducing treaty with the United States.

China’s Currency: Economic Issues and Options for U.S. Trade Policy

The continued rise in China’s trade surplus with the United States and the world, and complaints from U.S. manufacturing firms and workers over the competitive challenges posed by Chinese imports have led several Members to call for a more aggressive U.S. stance against certain Chinese trade policies they deem to be unfair. Among these is the value of the China’s currency (the renminbi or yuan) relative to the dollar. From 1994 to July 2005, China pegged its currency to the U.S. dollar. On July 21, 2005, China announced it would let its currency immediately appreciate by 2.1% and link its...

U.S. Taxation of Overseas Investment and Income: Background and Issues

This report analyzes how the current U.S. tax system applies to foreign investment undertaken by U.S. firms abroad, and how that application was changed by recent legislation. It also assesses the impact of the tax system and legislation, and concludes by discussing a variety of issues in international taxation that Congress may face in 2008 and beyond. It begins with a brief examination of the data on international investment.

The House Amendment Tree

Unanimous Consent Agreements in the Senate

This report discusses the idea of "unanimous consent" in the Senate. Without its tradition of unanimous consent, the Senate would find it harder to process its complex workload.

Electronic Rulemaking in the Federal Government

This report explores the Bush Administration's initiative of implementing electronic rulemaking (e-rulemaking) in the federal government, the questions regarding how this initiative is being funded, its overall structure, its costs and expected financial benefits, the functionality of some of the applications being used, and its effect on public participation in the rulemaking process.

Climate Change: Costs and Benefits of S. 2191/S. 3036

This report examines six studies that project the costs of S. 2191 (S. 3036) to 2030 or 2050. It is difficult to project costs up to the year 2030, much less beyond. The already tenuous assumption that regulatory standards will remain constant becomes more unrealistic, and other unforeseen events loom as critical issues which cannot be modeled. Long-term cost projections are at best speculative, and should be viewed with attentive skepticism. Despite models’ inability to predict the future, cases examined here do provide insights on the costs and benefits of S. 2191.

First, the ultimate...

Maritime Security: Potential Terrorist Attacks and Protection Priorities

This report outlines the key dimensions of maritime terrorism and how these dimensions may characterize specific attacks in the global maritime domain. The report illustrates credible maritime attack scenarios based on actual past attacks or potential attacks developed for maritime security exercises or other U.S. counter terrorism activities. It discusses the challenge to maritime security planners of facing a virtually unlimited number of potential attack scenarios and how certain federal programs address this challenge. It also reviews various perspectives on the overall likelihood of...

Rising Energy Competition and Energy Security in Northeast Asia: Issues for U.S. Policy

Asia has become a principal driver in world energy markets, largely due to China’s remarkable growth in demand. As the gap between consumption and production levels in Asia expands, the region’s economic powers appear to be increasingly anxious about their energy security, concerned that tight supplies and consequent high prices may constrain economic growth. Rising energy competition in East Asia promises to affect U.S. policy in many ways, from contributing to price spikes because of China’s rapidly increasing demand to altering the geostrategic landscape in the years to come as regional...

Transportation Fuel Taxes: Impacts of a Repeal or Moratorium

The report includes an introduction regarding the increase in crude oil and refined product prices and discusses the proposals to offset effects of higher crude oil prices and the impact on markets and prices.

Calculating Estate Tax Liability: 2001 to 2011 and Beyond

This report provides a basic explanation of how to calculate the federal estate tax liability for a taxable estate of any given size, using the schedule of graduated marginal tax rates and the applicable exclusion amount or the applicable credit amount for the year of death. The “applicable exclusion amount” is the amount of any decedent’s taxable estate that is free from tax. It is known informally as the estate tax “exemption.” The “applicable credit amount” or “unified credit” is the corresponding tax credit. It is equal to the tax that would be due on a taxable estate that is the size...

Dollar Crisis: Prospect and Implications

This report describes the anatomy of dollar crisis, and possible reasons why a dollar crisis won't occur. The report discusses the macroeconomics effects of a dollar crisis, and the response of economic policy.

A User’s Guide to the Congressional Record

The Pattern of Interest Rates: Does it Signal an Impending Recession?

The cyclical behavior of the economy is of great interest to Congress, yet the onset of an economic downturn is seldom recognized promptly. Policymakers frequently search for reliable recession predictors. The behavior of interest rates may provide advanced warning of an impending downturn. The easing of monetary policy in evidence since September 2007 is consistent with efforts to forestall or minimize an economic downturn. Economic growth has been low since the last quarter of 2007, and some forecasters are now predicting a recession in 2008.

The Single European Payments Area (SEPA): Implementation Delays and Implications for the United States

This report presents a brief background on the efforts to create the Single European Payments Area (SEPA) by the European government and the banking industry. It assesses the current electronic payments systems from the wholesale (large value) level and the retail (small value) level of payments. The report then examines the attempts to develop the pan- European automated clearinghouse system (PEACH).

Does Price Transparency Improve Market Efficiency? Implications of Empirical Evidence in Other Markets for the Health Sector

Consumer advocates, proponents of wider use of market incentives in the health care sector, and some policy makers have called for greater price transparency. These measures might include posting prices in an accessible form or regulations constraining price discrimination (different prices charged to different customers). Price transparency implies that consumers can obtain price information easily, so they can usefully compare costs of different choices. Price transparency may also mean consumers understand how prices are set and are aware of price discrimination. In health care markets...

House and Senate Chaplains

Private Activity Bonds: An Analysis of State Use, 2001 to 2006

Congressional Budget Resolutions: Revisions and Adjustments

Foreign Direct Investment: Effects of a ”Cheap” Dollar

Consolidated Appropriations Act for FY2008: Brief Overview

The Low-Income Housing Tax Credit: A Framework for Evaluation

The Low-Income Housing Tax Credit (LIHTC) is an economic incentive to produce affordable rental housing. These federal housing tax credits are awarded to developers of qualified projects, who either use or sell the credits to investors to raise capital (or equity) for real estate projects. The tax benefit reduces the debt and/or equity financing that the developer would otherwise have to obtain. With lower financing costs, beneficiaries of tax credits can offer lower, more affordable rents. See CRS Report RS22389, An Introduction to the Design of the Low-Income Housing Tax Credit, by Mark...

European Union–U.S. Trade and Investment Relations: Key Issues

Former NFL Players: Disabilities, Benefits, and Related Issues

This report discusses professional football players' injuries and health conditions that might have long-term consequences for their health.

Insurance Regulation: Major Interest Groups

Judicial Security: Responsibilities and Current Issues

Credit Card Minimum Payments

U.S.-Malaysia Relations: Implications of the 2008 Elections

This report discusses key aspects of the U.S.-Malaysia relationship (including economics and trade, counterterrorism cooperation, and defense ties) and the possible impact of Malaysia’s 2008 elections on the future of the relationship.

In parliamentary elections held on March 8, 2008, the Barisan Nasional (BN), which has ruled Malaysia since independence in 1957, was struck by a “political tsunami” that saw it lose its two-thirds “supermajority” for the first time since 1969. Malaysia’s major opposition parties won 82 of the 222 parliamentary seats up for election. In addition, the...

Presidential Transitions

The World Bank’s International Development Association (IDA)

The World Bank is a Multilateral Development Bank (MDB) that makes loans and grants to low and middle-income countries to reduce poverty and promote economic development. Both the World Bank and the International Monetary Fund (IMF) were founded at the Bretton Woods Conference in 1944. Two of the World Bank facilities, the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) lend directly to governments to finance projects and programs.

IDA was established in 1960, 16 years after the creation of the World Bank to address concern that...

Financial Institutions and Markets: Major Federal Statutes

This report provides brief summaries of the major federal laws affecting financial institutions and markets. Arrangement is chronological according to the order of original enactment, with divisions into three periods. The first period begins with the Civil War era and includes the creation of national banks and the Federal Reserve System. The second period encompasses the New Deal and its aftermath, during which a wall was erected and reinforced between commerce and banking. The third or current period is characterized by statutes designed to modernize the financial services industry and,...

Selected Federal Homeland Security Assistance Programs: A Summary

Fischer-Tropsch Fuels from Coal, Natural Gas, and Biomass: Background and Policy

This report provides background information and policy analysis regarding the ways to develop that directly and indirectly convert coal into liquid fuel.

Secret Sessions of the House and Senate

Secret Sessions of Congress: A Brief Historical Overview

Davis-Bacon Act Coverage and the State Revolving Fund Program Under the Clean Water Act

The Davis-Bacon Act (DBA) requires, among other things, that not less than the locally prevailing wage be paid to workers employed, under contract, on federal construction work “to which the United States or the District of Columbia is a party.” Congress has added DBA prevailing wage provisions to more than 50 separate program statutes.

In 1961, a DBA prevailing wage requirement was added to the Federal Water Pollution Control Act (P.L. 87-88), now known as the Clean Water Act (CWA), which assists in construction of municipal wastewater treatment works. In 1987, Congress moved from a...

Saving for College Through Qualified Tuition (Section 529) Programs

Farm Labor: The Adverse Effect Wage Rate (AEWR)

Japan’s Currency Intervention: Policy Issues

The rapid depreciation of the value of the dollar on foreign exchange markets is mirrored by an equally rapid appreciation of currencies, such as the yen (and Euro). This has raised concerns that Japan may intervene in currency markets for the first time since March 2004 to shore up the value of the dollar and slow the appreciation of the yen. Japan has conducted such intervention in the past by purchasing dollars and selling yen on foreign exchange markets. This intervention has raised concerns in the United States and brought charges that Tokyo is manipulating its exchange rate in order...

Estate and Gift Taxes: Economic Issues

The unified estate and gift tax is levied on the transfer of assets that occurs when someone dies or gives a gift. Filing an estate tax return can be difficult depending on the value and complexity of the estate. The purpose here is to outline the mechanics of the estate and gift tax. The first section begins with a brief review of the general rules accompanied with a numerical example. There are some minor provisions of the law that are not discussed here, however, such as the phase out of the graduated rates and the credit for taxes on property recently transferred. The second section...

Federal Courthouse Construction

Former Presidents: Federal Pension and Retirement Benefits

Financial Services and General Government (FSGG): FY2008 Appropriations

FY2008 appropriations for Financial Services and General Government (FSGG) agencies were originally proposed in H.R. 2829. The bill included funding for the Department of the Treasury, the Executive Office of the President (EOP), the judiciary, the District of Columbia, and 20 independent agencies. Among the independent agencies funded by the bill are the General Services Administration (GSA), the Office of Personnel Management (OPM), the Small Business Administration (SBA), and the United States Postal Service (USPS).

On June 28, 2007, the House approved $43.8 billion for H.R. 2829, a...

Commerce, Justice, Science, and Related Agencies: FY2008 Appropriations

This report monitors actions taken by the 110th Congress for the FY2008 Commerce, Justice, Science, and Related Agencies (CJS) appropriations bill. In the Consolidated Appropriations Act, 2008 (P.L. 110-161), Congress has provided $54.637 billion in CJS appropriations, a 3.4% increase over the FY2007 enacted level and a 2.2% increase over the Administration’s request. This amount includes $6.857 billion for the Department of Commerce (a 3.5% increase over the FY2007 enacted level), $23.592 billion for the Department of Justice (a 1.6% increase), $23.38 billion for science agencies (a 5.3%...

OMB and Risk Assessment

The Condition of the Banking Industry

The Flat Tax, Value-Added Tax, and National Retail Sales Tax: Overview of the Issues

The current income tax system is criticized for costly complexity and damage to economic efficiency. Reform suggestions have proliferated, including a national retail sales tax, several versions of a value-added tax (VAT), the much-discussed “Flat Tax” on consumption (the “Hall-Rabushka” tax), the “USA” proposal for a direct consumption tax, and revisions of the income tax. The President has indicated that major tax reform will be a priority item in his second term, and his tax reform commission has included a modified flat tax as one of its options.

Most reform proposals are based on the...

Russia’s March 2008 Presidential Election: Outcome and Implications

This report discusses the campaign and results of Russia’s March 2, 2008, presidential election and implications for Russia and U.S. interests. Popular outgoing President Vladimir Putin endorsed his First Deputy Prime Minister, Dmitriy Medvedev, who easily won an election viewed by some observers as not free and fair. This report will not be updated. Related products include CRS Report RL33407, Russian Political, Economic, and Security Issues and U.S. Interests, by Stuart D. Goldman; and CRS Report RS22770, Russia’s December 2007 Legislative Election: Outcome and Implications, by Jim...

Federal Grants to State and Local Governments: A Brief History

Taxes and International Competitiveness

The term “international competitiveness” has long been an important part of tax policy debates and most recently has been prominent in discussions about fundamental U.S. tax reform. For example, in Executive Order 13369, President Bush stated that one goal of reform should be to “strengthen the competitiveness of the United States in the global market place.” And in July 2007, the U.S. Treasury Department hosted a conference on business tax policy to explore ways in which the U.S. tax system might be reformed to enhance competitiveness. Yet despite its prominent use, the meaning of...

Bond Insurers: Issues for the 110th Congress

Beginning in 2007, higher than expected defaults and delinquencies in “subprime” mortgages led to a significant slowdown of the housing market. Most of these mortgages were financed by capital markets through asset- or mortgage-backed securities, rather than by traditional banks. Thus, rather than being confined to the institutions that made the now-questionable loans, losses caused by unexpected mortgage defaults have been felt throughout the financial system by any entity who bought mortgage-backed securities. In addition, financial guaranty insurance companies, often known as “monoline”...

Possible Indexation of the Federal Minimum Wage: Evolution of Legislative Activity

Indexation of the minimum wage (linking the minimum wage to an outside economic variable) in a variety of forms has been a subject of discussion at least since the early years of the 20th century. When early proponents of a wage floor began to consider the matter as public policy within the United States, they established a series of state wage boards. These boards were given the authority to fix a reasonable rate below which most workers were not permitted to be paid. The powers of the boards varied from one state to the next and, where they were reasonably effective, there was the...

Individual Tax Rates and Tax Burdens: Changes Since 1960

Insurance Guaranty Funds

Some constituencies are urging Congress to allow insurers to become federally regulated, like banks. Other constituencies are urging Congress to instead ratify its 1945 delegation of insurance regulation to the states. In the past few years, various pieces of legislation have been introduced to implement some form of federal charter for insurance companies. The latest such legislation is the National Insurance Act of 2007 (S. 40 and H.R. 3200).

How to protect insurance policyholders in the event of their insurer’s insolvency is among the thorniest issues in insurance regulation, whether...

Possible Small Business Issues in the 110th Congress

Patent Reform in the 110th Congress: Innovation Issues

Tax Rebate Refundability: Effects and Issues

The Potential Distributional Effects of the Alternative Minimum Tax

Homeland Security Department: FY2008 Appropriations

This report describes the FY2008 appropriations for the Department of Homeland Security (DHS). The Administration requested a net appropriation of $35.5 billion in net budget authority for FY2008. The requested net appropriation for major components of the department included the following: $8,783 million for Customs and Border Protection (CBP); $4,168 million for Immigration and Customs Enforcement (ICE); $3,608 million for the Transportation Security Administration (TSA); $8,457 million for the U.S. Coast Guard; $1,399 million for the Secret Service; $1,047 for the National Protection...

Transportation, Housing and Urban Development, and Related Agencies (THUD): FY2008 Appropriations

The FY2008 Transportation, Housing and Urban Development, and Related Agencies appropriations bill (THUD) provides funding for the Department of Transportation (DOT), the Department of Housing and Urban Development (HUD), and five independent agencies related to these two departments.

The Bush Administration requested $100.3 billion (after scorekeeping adjustments) for FY2008, an increase of $300 million (less than 1%) over FY2007. DOT would receive $64.5 billion, $1.3 billion more than provided in FY2007. HUD would receive $35.6 billion, $1.0 billion less than provided in FY2007.

A...

Tax Credits for Hybrid Vehicles

Baseline Budget Projections: A Discussion of Issues

Products Liability: A Legal Overview

Economic Forecasts and the Budget

Obesity Among Older Americans

Federal Research and Development Funding: FY2008

The Consolidated Appropriations Act, 2008 (P.L. 110-161) was the measure used by Congress and the President to wrap up action on the regular appropriations acts in late 2007. On December 19, 2007, Congress completed action on the act, and it was signed into law by President Bush on December 26, 2007. Previously, action had been completed on only one of the regular appropriations acts, the Defense Appropriations Act, FY2008 (P.L. 110-116) which was signed into law by President Bush on November 13, 2007. The Consolidated Appropriations Act, 2008 provides appropriations covered in the eleven...

Tax Expenditures: Trends and Critiques

Interior, Environment, and Related Agencies: FY2008 Appropriations

The Interior, Environment, and Related Agencies appropriations bill includes funding for the Department of the Interior (DOI), except for the Bureau of Reclamation, and for two agencies within other departments—the Forest Service within the Department of Agriculture and the Indian Health Service (IHS) within the Department of Health and Human Services. It also includes funding for arts and cultural agencies, the Environmental Protection Agency, and numerous other entities.

The Consolidated Appropriations Act for FY2008 (P.L. 110-161) included $26.89 billion for Interior, Environment, and...

Agriculture and Related Agencies: FY2008 Appropriations

The agriculture appropriations bill includes all of the U.S. Department of Agriculture (USDA), except the Forest Service, plus the Food and Drug Administration. Jurisdiction for the Commodity Futures Trading Commission (CFTC) remains with the House agriculture appropriations subcommittee, but was moved to the Senate financial services subcommittee in FY2008.

The FY2008 agriculture appropriations bill was combined with 10 other appropriations bills into the Consolidated Appropriations Act, 2008 (P.L. 110-161). The consolidated bill passed the House on December 17, 2007, passed the Senate on...

California Wildfires: The Role of Disaster Insurance

Agriculture in U.S. Free Trade Agreements: Trade with Current and Prospective Partners, Impact, and Issues

Trade in agricultural products frequently is one of the more difficult issues negotiators face in concluding free trade agreements (FTAs). While U.S. negotiators seek to eliminate barriers to U.S. agricultural exports, they also face pressures to protect U.S. producers of import sensitive commodities (i.e., beef, dairy products, sugar, among others). FTA partner country negotiators face similar pressures. One U.S. objective is for FTAs be comprehensive (i.e., cover all products). For the more import-sensitive agricultural commodities, negotiators have agreed on long transition periods, or...

Countries of the World and International Organizations: Sources of Information

This report provides a selection of authoritative materials for locating information on foreign countries and international organizations. In the general information section, it presents sources giving an overview of politics, economics, and recent history. A specialized information section cites sources on human rights, immigration, international organizations, military strengths, terrorism, and other topics. Included are titles of some of the most frequently consulted bibliographic sources that are available for use in many libraries. Electronic information on foreign countries is also...

Retiring Baby-Boomers = A Labor Shortage?

The unemployment rate in 2007 averaged just 4.6%, which is low by historic standards and suggests the presence of tight labor market conditions that are related to long-running demographic trends. The oldest members of the baby-boom generation turned age 60 at the end of 2006, and every year thereafter, more of this large birth-cohort will move into the ages when workers traditionally have retired. Consequently, the business community in particular has asserted that the future supply of labor will fall short of employer demand and that U.S. economic growth and competitiveness would be put...

The Homeowners’ Defense Act: An Overview

The World Bank and Iran

Distribution of Homeland Security Grants in FY2007 and P.L. 110-53, Implementing Recommendations of the 9/11 Commission Act

This report summarizes and compares the FY2007 and P.L. 110-53 Homeland Security Grant Program distribution method; it also presents an estimate of State Homeland Security Grant Program guaranteed minimum allocations for FY2008 through FY2012.

Should Credit Unions Be Taxed?

Youth Gangs: Background, Legislation, and Issues

FY2008 Appropriations for State and Local Homeland Security

Legislative Branch: FY2008 Appropriations

From beginning of the fiscal year on October 1, 2007, until the enactment of the Consolidated Appropriations Act on December 26, 2007, funding for the legislative branch was provided through a series of interim continuing appropriations measures. The first, which was signed by President Bush on September 29, 2007, provided funding at FY2007 levels through November 16, 2007. Three additional continuing appropriations measures were enacted on November 13, December 14, and December 21, 2007.

Legislative branch entities requested $4.3 billion in new budget authority for FY2008. The House...

Farm Legislation and Taxes in the 110th Congress

Minimum Wage: Characteristics of Low-Wage Workers and Their Families

Innovation and Intellectual Property Issues in Homeland Security

The U.S. government and private firms alike seek high technology solutions to detect and prevent future terrorist attacks, as well as to respond to any future attacks that do occur. Some concerns exist, however, that patents, trade secrets or other intellectual rights may impede the prompt, widespread and cost-effective distribution of innovations that promote homeland security. In 2001, these concerns arose with respect to pharmaceutical CIPRO, an antibiotic that treats inhalation anthrax. Some commentators called for the U.S. government to “override” a privately owned patent in order to...

What Effects Did the 2001 to 2003 Tax Cuts Have on the Economy?

Recession concerns have led policymakers to consider economic stimulus legislation. These proposals have raised questions about the economic effects of past policy changes. Congress enacted major tax cuts in 2001, 2002, and 2003. The acts reduced marginal income tax rates; reduced taxes on married couples, dividends, capital gains, and on estates and gifts; increased the child tax credit; and accelerated depreciation for business investment. The tax cuts resulted in an estimated revenue loss of 0.4% of GDP in 2001, 1.1% in 2002, and 1.6% in 2003. Since government spending rose as taxes...

Pipelines for Carbon Dioxide (CO2) Control: Network Needs and Cost Uncertainties

Congress is considering policies promoting the capture and sequestration of carbon dioxide (CO2) from sources such as electric power plants. Carbon capture and sequestration (CCS) is a process involving a CO2 source facility, a long-term CO2 sequestration site, and CO2 pipelines. There is an increasing perception in Congress that a national CCS program could require the construction of a substantial network of interstate CO2 pipelines. However, divergent views on CO2 pipeline requirements introduce significant uncertainty into overall CCS cost estimates and may complicate the federal role,...

Why is the Household Saving Rate So Low?

This report begins by showing how much the household saving rate has declined in recent years. Next, it explains how household saving is measured, and provides some detail on how saving varies across the income distribution. Finally, it discusses factors that may account for the decline in household saving, as well as how much of a policy concern the decline in household saving may be.

Fundamental Tax Reform: Options for the Mortgage Interest Deduction

The mortgage interest deduction, which is one of the largest sources of federal tax revenue loss with an estimated annual cost of $72 billion, is intended to encourage homeownership. Empirical studies suggest that the mortgage interest deduction subsidizes mortgage lending, which has more impact on housing consumption than homeownership rates. Other homeownership subsidies, like down-payment assistance programs, are proven to be more effective at increasing homeownership among lower-income families and are less expensive than the mortgage interest deduction.

A recent enhancement to the...

Value-Added Tax: A New U.S. Revenue Source?

Do Budget Deficits Push Up Interest Rates and Is This the Relevant Question?

Persistent budget deficits have directed attention to their economic effect, particularly whether they raise interest rates. Any explanation of the budget deficit-interest rate relationship must first come to grips with an indisputable fact: budget deficits consume real resources, and this is the more relevant public policy concern. When the government borrows from the public to finance public spending or tax cuts, the resources must come from somewhere. In mainstream theory, the resources come from the nation’s pool of saving, which pushes up interest rates for simple supply and demand...

Stock Options: The Backdating Issue

The Economics of Corporate Executive Pay

In the past ten years, the pay of chief executive officers (CEOs) has more than doubled, and the ratio of median CEO to worker pay has risen to 179 to 1. High and rising executive pay could be an issue of public concern on two different grounds. First, it is contributing to widening income inequality that may be of concern from an equity perspective. Second, it could be the result of economically inefficient labor markets. It is difficult to determine whether executive pay is excessive across the board since executives’ marginal product cannot be directly observed. An upward trend in pay...

The U.S.-Australia Treaty on Defense Trade Cooperation

The United States and Australia signed a Treaty on Defense Trade Cooperation in September 2007 that would facilitate defense trade and cooperation between the two nations. On the strategic level, the treaty would further develop ties between two very close allies who have fought together in most of America’s conflicts, including most recently in Iraq and in Afghanistan. This treaty is proposed at a time when the United States has found few friends that have been willing to work as closely with the United States in its efforts to contain militant anti-Western Islamists as Australia has...

The National Environmental Policy Act: Streamlining NEPA

In recent years, the time needed to comply with various environmental laws has been the subject of public scrutiny and debate in Congress. As a result, numerous administrative and legislative efforts (both proposed and enacted) have intended to expedite or streamline the environmental compliance process. Although methods to do so vary, streamlining measures are often proposed or implemented when the participation of multiple local, state, tribal, or federal agencies is necessary to comply with various environmental requirements. Streamlining measures may be applied to various environmental...

The FCC’s 10 Commissioned Economic Research Studies on Media Ownership: Policy Implications

The Federal Communications Commission (FCC or Commission) has released for public comment 10 economic research studies on media ownership that it had commissioned to provide data and analysis to support the policy debate on what ownership limitations are in the public interest. These studies also provide data and analysis useful to the on-going policy debates on how best to foster minority ownership of broadcast stations and on tiered vs. à la carte pricing of multichannel video program distribution (MVPD) services, such as cable and satellite television. The FCC also has released peer...

Going to Conference in the Senate

Excessive CEO Pay: Background and Policy Approaches

PEPFAR: Policy Issues from FY2004 through FY2008

The Joint United Nations Program on HIV/AIDS (UNAIDS) estimates that 33.2 million people are living with human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS). The U.N. organization believes that in 2007, some 2.5 million people will contract HIV and it will kill about 2.1 million. Sub-Saharan Africa is the most affected region, with about 68% of the world’s HIV-positive population, 90% of all HIV-infected children, and more than 11 million children who have lost one or both parents to the virus. UNAIDS anticipates that in 2007, about 420,000 children will contract...

Davis-Bacon: The Act and the Literature

The Davis-Bacon Act of 1931, as amended, requires that contractors engaging in certain federal contract construction pay workers on such projects not less than the locally prevailing wage for comparable work. In addition, such contractors are required to file payroll reports and to meet other administrative and labor standards requirements.

Enacted at the urging of the Hoover Administration, the statute was modified in 1934 with adoption of the Copeland (“anti-kickback”) Act and in 1935 through general amendments dealing with administration and implementation: among them, establishment of...

The Federal Budget: Sources of the Movement from Surplus to Deficit

Federal Home Loan Bank System: Policy Issues

The Federal Home Loan Bank (FHLB) System comprises 12 regional banks (the Banks) that form a collective government-sponsored enterprise (GSE). As a GSE, the Banks have special ties to the federal government that accord them “agency” status and lead investors in capital markets to infer that the government would step in to make good any failure in the debt of the Banks.

Originally begun in 1932 as lenders to the savings and loan associations that were the primary lenders for home mortgages, the Banks have undergone several changes since the savings and loan crisis of the 1980s. Membership...

Accounting and Management Problems at Freddie Mac

Would a Housing Crash Cause a Recession?

Terrorism Risk Insurance: Issue Analysis and Legislation

College Costs and Prices: Issues for Reauthorization of the Higher Education Act

The rising cost of attending U.S. colleges and universities is a growing concern, as most Americans believe that college is out of financial reach for qualified students. For federal policymakers, concerns focus on issues of affordability, access for low-income students, and whether federal student financial aid is keeping pace with rising prices. This report presents the current status and historical trends of college costs, with an emphasis on the prices undergraduate students are ultimately charged at the varying types of institutions of higher education and how they pay for...

Anti-Doping Policies: The Olympics and Selected Professional Sports

Agriculture-Based Renewable Energy Production

Comparative Clinical Effectiveness and Cost-Effectiveness Research: Background, History, and Overview

Comparative clinical effectiveness research has been discussed as a source of information for health care decision makers that may aid them in reaching evidence-based decisions. The premise that “what is newest is not always the best” is the core of the rationale behind comparative effectiveness research. Diverse governmental and non-governmental organizations have publicly expressed their support and reservations about comparative effectiveness research. Many bills have been introduced in the 110th Congress that support comparative effectiveness research, including S. 3, H.R. 2184, H.R....

The Economic Effects of Raising National Saving

Productivity: Will the Faster Growth Rate Continue?

Gift Cards

Health Care Spending: Context and Policy

Legislative Branch: FY2007 Appropriations

Congressional Research Service 7-5700 www.crs.gov RL33379 Summary Congress provided $3.785 billion in FY2007 appropriations for the legislative branch in the Revised Continuing Appropriations Resolution, 2007, which was enacted on February 15, 2007. Additional funding was subsequently provided in the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007, which was enacted on May 25, 2007. From October 1, 2006, the beginning of the 2007 fiscal year, until the enactment of the Revised Continuing Appropriations Resolution, the legislative...

Saving Incentives: What May Work, What May Not

Rail Transportation of Coal to Power Plants: Reliability Issues

Half the nation’s electricity comes from coal, and most of that coal is delivered to power plants by railroads. The reliable supply of coal by rail is therefore important to the electric power system. Concern over reliable deliveries of coal and other commodities, limited rail system capacity, and related issues such as rail rates, sparked several congressional hearings in 2006.

This report provides background information and analysis on coal transportation by rail to power plants. The report discusses:

Problems since 1990 with the rail delivery of coal.

Implications of rail capacity...

Asset Bubbles: Economic Effects and Policy Options for the Federal Reserve

After several years of steady growth, stock market prices began to rise rapidly in 1995, more than tripling over the next five years. In 2000, stock prices began a prolonged decline. Shortly thereafter, in March 2001, the longest expansion in history ended, and the economy entered a recession. By September 2002, the Standard and Poor’s 500 Index had fallen by nearly half from its peak. In hindsight, it is clear that some of the appreciation in stock prices in the 1990s was caused by a “bubble,” a rise in price that cannot be attributed to underlying economic fundamentals, but is instead...

Asia Pacific Economic Cooperation (APEC) and the 2007 Meetings in Sydney, Australia

There is apparent agreement between Congress and the Bush Administration that the Asia Pacific Economic Cooperation (APEC) is a potential vehicle for advancing U.S. economic, trade, diplomatic, and security interests both globally and regionally. In particular, APEC offers the United States an organizational counterpoint to other proposed regional associations in Asia. However, the organization’s approach and perspective on these issues may pose problems for the United States. By design, APEC operates on the basis of consensus, under which its members voluntarily liberalize their economic...

Health Insurance Basics: Roles for the Market and Government in Providing, Financing, and Regulating Private Insurance Coverage

Both the market and government have important roles in ensuring the availability, affordability, and adequacy of private health insurance. These roles complement one another, but even together the market and government have limitations.

The market provides a variety of insurance products for consumers and employers with different needs and preferences. These products differ on many dimensions, including the breadth of provider networks, amount of beneficiary cost-sharing, and techniques for managing the use of health care services. Large employers, small employers, and individuals have...

Tax Incentives for Charity: An Overview of Legislative Proposals

Tax Reform and Distributional Issues

Point Systems for Immigrant Selection: Options and Issues

Replacing or supplementing the current preference system for admitting legal permanent residents (LPRs) with a point system is garnering considerable interest for the first time in over a decade. Briefly, point systems such as those of Australia, Canada, Great Britain, and New Zealand assign prospective immigrants with credits if they have specified attributes, most often based on educational attainment, skill sets used in shortage occupations, extent of work experience, language proficiency, and desirable age range.

President George W. Bush has stated that comprehensive immigration reform...

The House-Passed 2007 Farm Bill (H.R. 2419) at a Glance

India-U.S. Economic and Trade Relations

After decades of strained political relations, the U.S. and Indian governments are currently pursuing a “strategic partnership” based on numerous overlapping interests, shared values, and improved economic and trade relations. India is in the midst of a rapid economic expansion, and many U.S. companies view India as a lucrative market and a candidate for foreign investment. For its part, the current Indian government sees itself continuing the economic reforms started in 1991, aimed at transforming a quasi-socialist economy into a more open, market-oriented economy. However, the U.S....

Congress and the Internet: Highlights

Unemployment and Older Workers

This is one in a series of papers that explore issues of our aging society. This report examines how unemployment has a different impact on the older worker. As workers age, negative—but previously temporary—events such as unemployment may push otherwise firmly entrenched workers out of the labor force. Older workers are less likely than others to experience a spell of unemployment, but those older workers who do experience unemployment have a higher incidence of withdrawing from the labor market. Some studies have found that unemployment in older workers contributes up to a one-third...

Migrant and Seasonal Agricultural Workers: Protective Statutes

The Fair Labor Standards Act: A Historical Sketch of the Overtime Pay Requirements of Section 13(a)(1)

Section 13(a)(1) of the Fair Labor Standards Act permits exemption of employers of bona fide executive, administrative and professional employees from the minimum wage and overtime pay requirements of the act; that is, from the basic wage and hour provisions of the statute. What constitutes a bona fide executive, administrative, or professional employee has been left by Congress for the Secretary of Labor to define and delimit. That process, begun in 1938, lapsed after 1975 and was renewed by the Bush Administration in 2003 (see 29 CFR 541).

The first Section 13(a)(1) regulation appeared...

Private Fee for Service (PFFS) Plans: How They Differ from Other Medicare Advantage Plans

The Balanced Budget Act of 1997 (BBA, P.L. 105-33) established the Medicare+Choice program (now called Medicare Advantage), creating new options for the delivery of required benefits under Medicare. One of these options is a Private Fee-For-Service plan (PFFS), statutorily defined as a plan that (1) reimburses hospitals, physicians, and other providers on a fee-for-service basis without placing the provider at financial risk; (2) does not vary rates for a provider based on utilization relating to that provider; and (3) does not restrict the selection of providers from among those who are...

The Budget for Fiscal Year 2007

Bangladesh: Background and U.S. Relations

Bangladesh (the former East Pakistan) gained its independence in 1971, following India’s intervention in a rebellion against West Pakistan (currently called Pakistan). Democratic elections in 1991 ended two decades of authoritarian rule in Dhaka. The Bangladesh National Party (BNP), which led the ruling coalition of the previous government, and the leading opposition party, the Awami League (AL), traditionally have dominated Bangladeshi politics. The BNP is led by former Prime Minister Khaleda Zia while the AL is led by Sheikh Hasina. Bangladesh has been a largely moderate and democratic...

The Child Tax Credit

The Telephone Excise Tax: An Economic Analysis

Emergency Spending: Statutory and Congressional Rules

This report discusses the designation of spending as emergency, which has had significance in both procedural and budgetary terms.

Members Who Have Served in the U.S. Congress 30 Years or More

Pakistan: Significant Recent Events, March 26 - June 21, 2007

Many see Pakistani President General Pervez Musharraf as currently facing the most serious challenges to his authority since he wrested control of Pakistan’s government in a 1999 coup. Set off by the March 9, 2007 suspension of the chief justice, Pakistan’s citizenry has grown vocal in its objections to Musharraf. Subsequent restrictions on the media increased the outrage, and journalists have joined thousands of lawyers and social activists in the streets to demonstrate against the president and demand his resignation. Pro-government groups have countered, resulting in factional fighting...

Economic Growth and the Business Cycle: Characteristics, Causes, and Policy Implications

Economic growth can be caused by random fluctuations, seasonal fluctuations, changes in the business cycle, and long-term structural causes. Policy can influence the latter two.

Business cycles refer to the regular cyclical pattern of economic boom (expansions) and bust (recessions). Recessions are characterized by falling output and employment; at the opposite end of the spectrum is an “overheating” economy, characterized by unsustainably rapid economic growth and rising inflation. Capital investment spending is the most cyclical component of economic output, whereas consumption is one of...

Selected Small Business Statistics

This report gathers selected statistics on the role of small businesses in the national economy that Congress has frequently asked the Congressional Research Service (CRS) to provide. Most of the statistics are calculated by CRS from Census data. The report uses the widely accepted research definition that a small business has fewer than 500 employees.

Russian Oil and Gas Challenges

Is the U.S. Trade Deficit Caused by a Global Saving Glut?

Project BioShield: Appropriations, Acquisitions, and Policy Implementation Issues for Congress

The Project BioShield Act of 2004 (P.L. 108-276) established a 10-year program to acquire civilian medical countermeasures to chemical, biological, radiological, and nuclear (CBRN) agents for the Strategic National Stockpile. Provisions of this act were designed to encourage private companies to develop these countermeasures by guaranteeing a government market for successfully developed countermeasures.

Congress has expressed concern about the implementation of Project BioShield. It has held multiple oversight hearings and considered several pieces of legislation to improve the execution...

Telecommunications Act: Competition, Innovation, and Reform

In 1996, Congress enacted comprehensive reform of the nation’s statutory and regulatory framework for telecommunications by passing the Telecommunications Act, which substantially amended the 1934 Communications Act. The general objective of the 1996 Act was to open up markets to competition by removing unnecessary regulatory barriers to entry. At that time, the industry was characterized by service-specific networks that did not compete with one another: circuit-switched networks provided telephone service and coaxial cable networks provided cable service. The act created distinct...

Fixed Exchange Rates and Floating Exchange Rates: What Have We Learned?

Congress is generally interested in promoting a stable and prosperous world economy. Stable currency exchange rate regimes are a key component to stable economic growth. This report explains the difference between fixed exchange rates, floating exchange rates, and currency boards/unions, and outlines the advantages and disadvantages of each. Floating exchange rate regimes are market determined; values fluctuate with market conditions. In fixed exchange rate regimes, the central bank is dedicated to using monetary policy to maintain the exchange rate at a predetermined price. In theory,...

Access to Broadband Networks

Central Bank Independence and Economic Performance: What Does the Evidence Show?

Keeping an economy growing over the long run at rates sufficient to provide full employment for labor and capital with low inflation or a stable price level has been an important goal for economic policy. Money and monetary policy have figured importantly in achieving this goal. Currently, it is argued, central bank independence is important to achieving this end.

Many small factors contribute to central bank independence, and so the literature does not yield a consistent definition of it. Rather, the emphasis is on three aspects of independence, the degree to which

(1) the governing board...

Congressional Budget Actions in 2007

Transportation, the Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, the Executive Office of the President, and Independent Agencies (TTHUD): FY2007 Appropriations

The Bush Administration requested $138.5 billion (after scorekeeping adjustments) for these agencies for FY2007, an increase of $2.3 billion over the $136.2 billion Congress provided in the agencies’ FY2006 appropriations act (this FY2006 figure reflects a 1.0% across-the-board rescission that was included in the FY2006 Department of Defense Appropriations Act, P.L. 109-148). The total FY2006 funding (after scorekeeping adjustments) for the agencies in this bill was $146.3 billion, due to emergency supplemental funding provided to deal with the effects of the Gulf Coast hurricanes of...

Patents and Drug Importation

Prescription drugs often cost far more in the United States than in other countries. Some consumers have attempted to import medications from abroad in order to realize cost savings. The practice of importing prescription drugs outside the distribution channels established by the brand-name drug company is commonly termed “parallel importation.” Parallel imports are authentic products that are legitimately distributed abroad and then sold to consumers in the United States, without the permission of the authorized U.S. dealer.

Parallel importation may raise significant intellectual property...

Haiti’s Development Needs and a Statistical Overview of Conditions of Poverty

Haiti’s poverty is massive and deep. Over half the population (54%) of 8.2 million people live in extreme poverty, living on less than $1 a day; 76% live on less than $2 a day. Poverty and hunger among the rural population is even more widespread. In order to reach Haiti’s goal of eradicating extreme poverty and hunger by 2015, its Gross Domestic Product (GDP) would have to grow 3.5% per year, a goal Haiti is not considered likely to achieve. In the past 40 years, Haiti’s per capita real GDP has declined by 30%. Therefore economic growth, even if greater than population growth, is not...

Lobbying Disclosure: Themes and Issues, 110th Congress

Eliminating the Planting Restrictions on Fruits and Vegetables in the Farm Commodity Programs

Owners of cropland with a history of growing “program crops” receive federal subsidy payments without regard to what crops are currently being produced on these base acres. In other words, these “direct payments” are decoupled from crop planting decisions. While the direct payments program is characterized as giving producers the flexibility to make planting choices based on actual market conditions instead of subsidy rules, there are restrictions. There is a prohibition on planting fruits, vegetables, and wild rice on program crop base acres. This planting restrictions policy is now under...

The Department of Housing and Urban Development: FY2007 Budget

On February 6, 2006, the President submitted his FY2007 budget to the Congress. It proposed funding the Department of Housing and Urban Development (HUD) at $34.1 billion, just over the FY2006 level (not including FY2006 supplementals related to Hurricane Katrina). HUD’s FY2007 budget summary stated that the budget intended to use “taxpayer money more wisely” and “reform programs in need of repair.”

The President’s budget would have increased funding for the Section 8 Housing Choice Voucher program from $15.4 billion in FY2006 to $15.9 billion in FY2007. It proposed to reduce funding to...

Bovine Spongiform Encephalopathy (BSE, or “Mad Cow Disease”): Current and Proposed Safeguards

Through mid-May 2007, the United States had confirmed three cases of bovine spongiform encephalopathy (BSE, or “mad cow disease”): the first in December 2003 in a Canadian-born cow found in Washington state, the second in June 2005 in cow in Texas, and the third in March 2006 in a cow in Alabama.

Shortly after the first case, U.S. Department of Agriculture (USDA) and other officials announced measures to improve existing safeguards against the introduction and spread of BSE. Previously, the major safeguards were: (1) USDA restrictions on imports of ruminants and their products from...

Securities Arbitration: Background and Questions of Fairness

Free Mail for Troops Overseas

Social Security: The Chilean Approach to Retirement

Over the past few years, there has been intense debate about Social Security reform in the United States. A number of options, ranging from changing the benefit formula to adding individual accounts, has been discussed. The policy debate takes place against the backdrop of an aging population, rising longevity, and relatively low fertility rates, which pose long-range financial challenges to the Social Security system. According to the 2007 Social Security Trustees Report’s intermediate assumptions, the Social Security trust funds are projected to experience cash-flow deficits in 2017 and...

House Subcommittees: Assignment Process

House rules, Republican Conference and Democratic Caucus rules, and individual committee rules all address the subcommittee assignment process, although to varying degrees. This report describes the assignment process for House Subcommittees.

Science, State, Justice, Commerce and Related Agencies (House)/Commerce, Justice, Science and Related Agencies (Senate): FY2007 Appropriations

This report monitors actions taken by the 109th Congress for the House’s Science, State, Justice, Commerce, and Related Agencies (SSJC) and the Senate’s Commerce, Justice, Science, and Related Agencies (CJS) FY2007 appropriations bill. Appropriations bills reflect the jurisdiction of the subcommittees of the House and Senate Appropriations Committees in which they are considered. Jurisdictions for the subcommittees of the House and Senate Appropriations Committees changed at the beginning of the 109th Congress.

On September 29, 2006, Congress passed the Defense Department Appropriation...

Data Security Breaches: Context and Incident Summaries

Personal data security breaches are being reported with increasing regularity. Within the past few years, numerous examples of data such as Social Security, bank account, credit card, and driver’s license numbers, as well as medical and student records have been compromised. A major reason for the increased awareness of these security breaches is a California law that requires notice of security breaches to the affected individuals. This law, implemented in July 2003, was the first of its kind in the nation.

State data security breach notification laws require companies and other entities...

DHS’s Max-HR Personnel System: Regulations on Classification, Pay, and Performance Management Compared With Current Law, and Implementation Plans

This report compares the final regulations with current law under Title 5 of the United States Code and relevant regulations under Title 5 of the Code of Federal Regulations. Specifically, Subparts A (General Provisions), B (Classification), C (Pay and Pay Administration), and D (Performance Management) of the final regulations are examined.

Subcommittees in the House of Representatives

Subcommittees are entities created by full committees to assist them in managing their work. Service on subcommittees enables members to develop expertise in specialized fields. Subcommittees diffuse the legislative process. For the most part, they are independent, autonomous units with written jurisdictions, and, pursuant to longstanding practice, most bills are referred by a full committee to them. This report provides a brief history of subcommittees, as well as their modern role and function in Congress.

Issues in Dynamic Revenue Estimating

Climate Change: Science and Policy Implications

Almost all scientists agree that the Earth’s climate is changing, having warmed by 0.6 to 0.9o Celsius (1.1 to 1.6o Fahrenheit) since the Industrial Revolution. Science indicates that the Earth’s global average temperature is now approaching, or possibly has passed, the warmest experienced since human civilizations began to flourish about 12,000 years ago. During the 20th Century, some areas became wetter while others experienced more drought. Most climate scientists conclude that humans have induced a large part of the climate change since the 1970s. Although natural forces such as solar...

Potential Challenges to U.S. Farm Subsidies in the WTO

Senate Policy Committees

Tax Credit Bonds: A Brief Explanation

Privatization and the Federal Government: An Introduction

During the past two decades, the privatization of federal agencies and activities has been much debated. That said, privatization—here defined as the use of the private sector in the provision of a good or service, the components of which include financing, operations (supplying, production, delivery), and quality control—is not a recent phenomenon. Since its founding in 1789, the federal government has used private firms to provide goods and services. Hence, privatization, in all its forms, which include contracting out, vouchers, and prize competitions, is of perennial interest to...

Campaign Finance: An Overview

Spending and Receipts in FY2006, by Time Period

The federal government collected $2.407 trillion and spent $2.655 trillion in FY2006. These dollar amounts are so large compared to the amounts that most policy makers and citizens encounter in their daily lives that the magnitudes may lose their significance. Over the years, congressional staff and Members have looked for more understandable measures or comprehensible comparisons. This report attempts to provide some of those measures.

Economics of Federal Reserve Independence

The Federal Reserve System (Fed) is charged with responsibility for making U.S. monetary policy. Quasi-public in structure, overseen by a Board of Governors whose members are appointed to serve long terms, and reliant on its own source of funding, the Fed possesses a degree of independence that some argue is inimical to the spirit of democracy. Although this argument (and refutations of it) may be political or constitutional in nature, it is also rooted in certain notions about macroeconomic policy.

The power that the Fed wields is substantial. Along with fiscal policy, monetary policy is...

Pharmaceutical Costs: A Comparison of Department of Veterans Affairs (VA), Medicaid, and Medicare Policies

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) (P.L. 108-173) addressed seniors’ rising out-of-pocket costs of prescription drugs by providing a mechanism for beneficiaries to obtain affordable prescription drug insurance coverage. The Medicare prescription drug benefit, otherwise known as Part D, was designed to take advantage of market competition. In accordance with market competition principles, the drug plans that administer the drug benefit are corporations who may rely on rebate negotiation and price-volume discounts as a way to affect prices.

A...

Federal White-Collar Pay: FY2006 and FY2007 Salary Adjustments

Trade Conflict and the U.S.-European Union Economic Relationship

The United States and the European Union (EU) share a huge, dynamic, and mutually beneficial economic partnership. Not only is the U.S.-EU trade and investment relationship the largest in the world, but it is also arguably the most important. Agreement between the two partners in the past has been critical to making the world trading system more open and efficient.

Given the high level of U.S.-EU commercial interactions, trade tensions and disputes are not unexpected. In the past, U.S.-EU trade relations have witnessed periodic episodes of rising trade tensions and conflicts, only to be...

Individual Capital Gains Income: Legislative History

Student Loan Repayment for Federal Employees

Under a law enacted in 1990 (P.L. 101-510) and amended in 2000 (P.L. 106-398) and 2003 (P.L. 108-123 and P.L. 108-136), federal agencies may repay portions of the student loans of highly qualified General Schedule (GS) and non-GS (including Foreign Service) employees they seek to recruit and retain. Eligible employees must sign at least a three-year service agreement to remain with their agencies. In return, these employees may receive loan repayments of up to $10,000 per year and up to $60,000 in total from an agency. Various student loans specified in law and authorized by the Higher...

The Federal Activities Inventory Reform Act and Circular A-76

This report begins with a brief history of Circular A-76, a review of the its key components, and an assessment of the implementation of the circular. The section on FAIR (Federal Activities Inventory Reform Act) describes how it emerged from a series of compromises, explains the statute's key provisions, and reviews the implementation process, including guidance issued by OMB. The final section addresses recent initiatives, notably the President's competitive sourcing initiative and the Commercial Activities Panel.

Land Conversion in the Northern Plains

Land is being converted from native grass or rangeland into crop production in the Northern Plains region, especially in South Dakota, North Dakota, and Montana. Advocates of wildlife protection and enhancement, and grazing interests, are concerned that landowners in this region will continue to convert grasslands to crop production, especially to corn production, as long as market prices remain high. As the rate of land conversion accelerates, those concerned suspect it will have significant environmental impacts and reduce the amount of land available for both wildlife habitat and...

Capital Gains Tax Rates and Revenues

Proposed Transaction Fee on Futures Contracts

H.R. 1 (Implementing the 9/11 Commission Recommendations Act of 2007) and S. 4 (Improving America’s Security Act of 2007): A Comparative Analysis

This comparative analysis of H.R. 1 (Implementing the 9/11 Commission Recommendations Act of 2007) and S. 4 (Improving America’s Security Act of 2007) is an assessment of major similarities and differences between the two bills as passed by the House (January 9, 2007) and Senate (March 13, 2007) and under conference consideration.

References to the two bills are to engrossed versions. The presentation is organized to follow the basic construct of the House bill because its coverage remained more stable through the legislative process and as the analyses began. Titles unique to S. 4 follow...

Estate Tax Legislation in the 109th Congress

U.S. Trade with Developing Countries: Trends, Prospects, and Policy Implications

Developing countries, a heterogeneous group of low- and middle-income countries, have become an increasingly significant factor in U.S. trade flows and trade policy over the last two or more decades. Their influence is reflected in the issues on the trade agenda of the 110th Congress: the possible renewal of fast track trade authority/Trade Promotion Authority; implementing legislation for free trade agreements; re-authorization of trade adjustment assistance (TAA) for workers and firms; review and possible re-authorization of Generalized System of Preferences and other trade preference...

Exon-Florio Foreign Investment Provision: Overview of H.R. 556

Subprime Mortgages: Primer on Current Lending and Foreclosure Issues

This report discusses the issue of subprime mortgages, which are loans extended to borrowers with weak credit profiles. Subprime mortgages entail higher risk of delinquency and default. Recent increases in subprime borrower foreclosures and lender bankruptcies have prompted concerns that some lenders’ underwriting guidelines are too loose and that some borrowers may not have fully understood the risks of the mortgage products they chose. Regulatory agencies are revisiting the guidance they provide lenders and are reevaluating required disclosures to consumers. In addition, Congress is...

Network Centric Operations: Background and Oversight Issues for Congress

Network Centric Operations (also known as Network Centric Warfare) is a key component of DOD planning for transformation of the military. Network Centric Operations (NCO) relies on computer equipment and networked communications technology to provide a shared awareness of the battle space for U.S. forces. Proponents say that a shared awareness increases synergy for command and control, resulting in superior decision-making, and the ability to coordinate complex military operations over long distances for an overwhelming war-fighting advantage. NCO technology saw limited deployment in...

Federal Research and Development Funding: FY2007

On February 15, 2007 President Bush signed into law P.L. 110-5 (H.J.Res. 20), which provides funding for the nine outstanding regular appropriations bills through September 30, 2007.The 109th Congress passed two appropriations bills, the Department of Defense (P.L. 109-289, H.Rept. 109-676) and the Department of Homeland Security (P.L. 109-295, H.Rept. 109-699). P.L. 110-5 will fund most agencies at FY2006 levels through September 30, 2007. However, P.L. 110-5 contains some exceptions to those guidelines, including the centerpiece of the President’s proposed FY2007 R&D budget, the American...

State Estate and Gift Tax Revenue

The Electoral College: Reform Proposals in the 109th Congress

American voters elect the President and Vice President of the United States under a complex arrangement of constitutional provisions, federal and state laws, and political party practices known as the electoral college system. For additional information on contemporary operation of the system, please consult CRS Report RL32611, The Electoral College: How It Works in Contemporary Presidential Elections, by Thomas H. Neale.

Despite occasional close elections, this system has delivered uncontested results in 47 of 51 elections since the 12th Amendment was ratified in 1804. Down these many...

The USDA 2007 Farm Bill Proposal: Possible Questions

On January 31, 2007, the Secretary of Agriculture publicly released a set of recommendations for a 2007 farm bill. The proposal is comprehensive and follows largely the outline of the current 2002 farm bill, which expires this year. It includes proposals regarding commodity support, conservation, trade, nutrition and domestic food assistance, farm credit, rural development, agricultural research, forestry, energy, and such miscellaneous items as crop insurance, organic programs, and Section 32 purchases of fruits and vegetables.

The Administration delivered its report to Congress, not as a...

FY2007 Appropriations for State and Local Homeland Security

Nuclear Power: Outlook for New U.S. Reactors

Nearly three decades after the most recent order was placed for a new nuclear power plant in the United States, several utilities are now expressing interest in building a total of up to 30 new reactors. The renewed interest in nuclear power has resulted primarily from higher prices for natural gas, improved operation of existing reactors, and uncertainty about future restrictions on coal emissions. A substantial tax credit and other incentives for nuclear generation provided by the Energy Policy Act of 2005 (P.L. 109-58) are also likely to improve the economic viability of qualifying new...

Health Care and Markets

Health care spending is one of the most rapidly growing portions of the federal budget. Projections suggest if the rapid growth in health care costs is not curtailed, governments at all levels will face an uncomfortable choice between significant cuts in other spending priorities or major tax increases. This report examines the economic justification for government intervention and involvement in health care markets.

Many analysts claim market-oriented policies, in certain instances, could lower costs and enhance efficiency in health care. This report discusses the Invisible Hand Theorem,...

Credit Union Regulatory Improvements Act of 2005 (CURIA)

Proposed Savings Accounts: Economic and Budgetary Effects

Interior, Environment, and Related Agencies: FY2007 Appropriations

The FY2007 Interior, Environment, and Related Agencies appropriations bill includes funding for the Department of the Interior (DOI), except for the Bureau of Reclamation, and for two agencies within other departments—the Forest Service within the Department of Agriculture and the Indian Health Service within the Department of Health and Human Services. It also includes funding for arts and cultural agencies; the Environmental Protection Agency, which was recently transferred to the appropriations subcommittees that deal with Interior and Related Agencies; and numerous other entities and...

Federal Emergency Management Policy Changes After Hurricane Katrina: A Summary of Statutory Provisions

Reports issued by committees of the 109th Congress, the White House, federal offices of Inspector General, and the Government Accountability Office (GAO), among others, concluded that the losses caused by Hurricane Katrina were due, in part, to deficiencies such as questionable leadership decisions and capabilities, organizational failures, overwhelmed preparation and communication systems, and inadequate statutory authorities. As a result, the 109th Congress revised federal emergency management policies vested in the President; reorganized the Federal Emergency Management Agency (FEMA);...

Homeland Security: Compendium of Recommendations Relevant to House Committee Organization and Analysis of Considerations for the House, and 109th and 110th Congresses Epilogue

This report has been updated with an epilogue on the creation of a standing House Committee on Homeland Security in the 109th Congress, the election of a new chair September 15, 2005, and the committee’s organization in the 110th Congress. The original report was not changed; its summary follows:

The 9/11 Commission and other commissions and think tanks studying homeland security recommended congressional committee reorganization to increase Congress’s policy and oversight coordination. This report analyzes selected recommendations relevant to House committee reorganization.

In the 108th...

Child Support Provisions Considered But Not Enacted During the 2002-2005 Welfare Reauthorization Debate

The Child Support Enforcement (CSE) program, Part D of Title IV of the Social Security Act, was enacted in January 1975 (P.L. 93-647) and most recently amended by the Deficit Reduction Act of 2005 (P.L. 109-171). The CSE program is administered by the Office of Child Support Enforcement (OCSE) in the Department of Health and Human Services (HHS), and is funded by general revenues. All 50 states, the District of Columbia, Guam, Puerto Rico, the Virgin Islands, and nine tribal nations operate CSE programs and are entitled to federal matching funds. In FY2005, the CSE program collected $23...

Senior Executive Service (SES) Pay for Performance System

Check Cashers and Banker’s Discontinuance of Services

A check cashing enterprise is a fee-based business that will cash a customer’s check without requiring an account relationship. The U.S. check cashing industry underwent a significant expansion in the 1990s. Customers are attracted by the immediate access to funds, availability of service without a bank account, and convenience of extended hours of operation. In general, the industry is viewed as a provider of valuable financial services to an under served market segment.

Check cashers are dependent on access to bank services to operate. Banks provide depository accounts, check collection...

The Motion to Recommit in the House: The Minority's Motion

Recommittal motions can take one of two forms: a simple (or “straight”) motion to recommit or a motion to recommit with instructions. Bills and conference reports can be recommitted, but the motion to recommit does not have the same effect on measures at both stages of the legislative process.

A simple motion to recommit a bill gives the minority party a final opportunity to “kill” a measure before the House votes on whether to pass it. When the House adopts a simple motion, the underlying bill goes back to committee and is considered to have been rejected by the House. A simple motion to...

Social Security Reform: Economic Issues

Judiciary Appropriations for FY2007

PAYGO Rules for Budget Enforcement in the House and Senate

Immigration Issues in Trade Agreements

The connections between trade and migration are as longstanding as the historic movements of goods and people. The desire for commerce may often be the principal motivation, but the need to send people to facilitate the transactions soon follows. Recognition of this phenomenon is incorporated into the Immigration and Nationality Act (INA), which includes provisions for aliens who are entering the United States solely as “treaty traders” and “treaty investors.” Although the United States has not created a common market for the movement of labor with our trading partners, there are...

Drug Trafficking and North Korea: Issues for U.S. Policy

At least 50 documented incidents in more than 20 countries around the world, many involving arrest or detention of North Korean diplomats, link North Korea to drug trafficking. Such events, in the context of credible, but unproven, allegations of large scale state sponsorship of drug production and trafficking, raise important issues for the United States and its allies in combating international drug trafficking. The challenge to policy makers is how to pursue an effective counter drug policy and comply with U.S. law which may require cutting off aid to North Korea while pursuing other...

527 Political Organizations: Legislation in the 109th Congress

Campaign Financing: Highlights and Chronology of Current Federal Law

Is China a Threat to the U.S. Economy?

The Postal Accountability and Enhancement Act

President George W. Bush signed the Postal Enhancement and Accountability Act (P.L. 109-435) on December 20, 2006. This report briefly describes Congress’s pursuit of postal reform, summarizes the major provisions of the new postal reform law, and identifies possible P.L. 109-435 oversight issues for Congress.

The Employment of People with Disabilities: Federal Data Sources and Trends

Congress has enacted major legislation related to the employment of individuals with disabilities. In 1938, the Congress passed the Fair Labor Standards Act (FLSA), which, among other provisions, established a reduced wage for the employment of individuals whose earning capacity was impaired by age or physical or mental deficiency or injury (Section 14). The Americans with Disabilities Act (ADA) of 1990 banned discrimination in the workplace and elsewhere on the basis of disability, and the Civil Rights Act (CRA) of 1991 allowed people bringing employment discrimination suits to seek...

Haitian Textile Industry: Impact of Proposed Trade Assistance

U.S. External Debt: How Has the United States Borrowed Without Cost?

Despite the huge increase in U.S. external debt, the investment income component of the current account has remained in surplus. The size of this surplus has varied, hitting a low of $4 billion in 1998 and a high of $37 billion in 2003, but over the past 25 years, the surplus has remained between $15 billion and $30 billion. Since 2003, the surplus has fallen, reaching $28 billion in 2004 and $11 billion in 2005. This means that the United States, although a large net debtor, has been borrowing free of any economically meaningful debt service cost. What is behind this apparent paradox?...

Russian Natural Gas: Regional Dependence

Patent Reform: Innovation Issues

Congress, the IMF, and Exchange Rate Reform: Legislative Proposals

In recent years, Congress has been increasingly concerned that other countries—China, Japan, Taiwan and Korea in particular—are manipulating the value of their national currencies in ways injurious to the U.S. economy. A spate of legislation was introduced in the 109th Congress seeking to pressure foreign countries to revalue their currencies or seeking changes in the international financial system—particularly changes in the International Monetary Fund (IMF)—that would help accomplish that end. Similar bills are likely to be introduced in the 110th Congress.

Current law on this topic is...

Terrorism Risk Insurance: An Overview

Automatic Enrollment in 401(k) Plans

Most employers that sponsor retirement savings plans under §401(k) of the Internal Revenue Code (IRC) require employees to decide whether to enroll in the plan. The Internal Revenue Service (IRS) has issued rulings to inform employers that it is permissible under current law to enroll employees in these plans automatically, provided that the employee is notified in advance and is permitted to leave the plan if he or she chooses to do so. Automatic enrollment, in which a percentage of the employee’s salary is placed in an individual account without requiring the worker to take any action,...

Veterans’ Benefits Issues in the 109th Congress

Oil Industry Profit Review 2005

Presidential Appointments to Full-time Positions in Executive Departments During the 108th Congress, 2003-2004

During the 108th Congress, the President submitted to the Senate 166 nominations to executive department full-time positions. Of these 166 nominations, 120 were confirmed; eight were withdrawn; one was returned to the President at the end of the first session; and 37 were returned to him at the end of the second session of the 108th Congress. For those nominations that were confirmed, an average of 98 days elapsed between the time of the nomination and the nomination’s receipt and confirmation. The median number of days elapsed was 83. These statistics do not include the days during which...

Housing Issues in the 109th Congress

The 109th Congress considered a number of housing-related issues in its two sessions. These included appropriations for the Department of Housing and Urban Development (HUD); assistance for families and communities affected by Hurricanes Katrina, Rita, and Wilma; reform of the Government Sponsored Enterprises—Fannie Mae and Freddie Mac—and Federal Home Loan Banks (GSEs and FHLBs); revisions to the FHA loan insurance program; and changes to existing housing programs such as the Section 8 Housing Choice Voucher and the Low-Income Housing Tax Credit program. However, the 109th Congress...

Caspian Oil and Gas: Production and Prospects

GSE Reform: A New Affordable Housing Fund

Internet: An Overview of Key Technology Policy Issues Affecting Its Use and Growth

In the decade between 1994 and 2004, the number of U.S. adults using the Internet increased from 15% to 63%, and by 2005, stood at 78.6%. From electronic mail to accessing information to watching videos to online purchasing, the Internet touches almost every aspect of modern life. The extent to which use of the Internet continues to grow, however, may be affected by a number of technology policy issues being debated in Congress.

First is the availability of high-speed—or “broadband”—Internet access. Broadband Internet access gives users the ability to send and receive data at speeds far...

Textile and Apparel Trade Issues

Agriculture and Related Agencies: FY2007 Appropriations

The Agriculture and Related Agencies appropriations bill includes all of USDA (except the Forest Service), plus the Food and Drug Administration and the Commodity Futures Trading Commission. The full House passed the FY2007 agriculture appropriations bill on May 23, 2006 (H.R. 5384, H.Rept. 109-463). On June 22, 2006, the Senate Appropriations Committee reported its version (H.R. 5384, S.Rept. 109-266). The full Senate took up the bill on December 5, 2006, but only to consider a crop disaster amendment, which was defeated. Because a final bill has not been enacted, a continuing resolution...

Postal Reform

Previewing a 2007 Farm Bill

Federal farm support, food assistance, agricultural trade, marketing, and rural development policies are governed by a variety of separate laws. However, many of these laws periodically are evaluated, revised, and renewed through an omnibus, multi-year “farm bill.” The Farm Security and Rural Investment Act of 2002 (P.L. 107-171) was the most recent omnibus farm bill, and many of its provisions expire in 2007, so reauthorization is expected to be addressed in the first session of the 110th Congress.

The heart of every omnibus farm bill is farm income and commodity price support...

China-U.S. Relations in the 109th Congress

Savings in Mandatory Outlays in Selected Reconciliation Acts

Congressional Budget Actions in 2006

Revenue Reconciliation Directives to the Senate Finance Committee in Congressional Budget Resolutions

This report discusses the revenue reconciliation directives that varied in their time frame, from single-year coverage (in the FY1976, FY1981, and FY1990 budget resolutions) to 11-year coverage (in the FY2002 and FY2004 budget resolutions)

Expanded Access to Financial Services Act

Conversion of Credit Union Charter to Mutual Savings Bank Charter: Current Legal Process and Congressional Response

There are several statutory requirements imposed by the Credit Union Membership Access Act (CUMAA) for converting a federal credit union to a mutual savings bank. In addition, the National Credit Union Administration (NCUA), the federal agency that charters and supervises federal credit unions, has issued regulations requiring significant disclosures by a federal credit union attempting to convert its charter to a mutual savings bank. Some of these disclosures are considered by critics to be speculative in nature, such as whether the directors of the converted institution intend later to...

Foreign Affairs, Defense, and Trade: Key Issues for the 110th Congress

The 110th Congress will face a number of pressing foreign affairs, defense, and trade issues in the opening days of its tenure. This report identifies major issues most likely to be on the legislative agenda, discusses critical policy choices at stake, and summarizes some of the major alternatives that Congress may consider. The report lists Congressional Research Service reports that address these issues, and it identifies key analysts and their areas of responsibility.

A major issue confronting the new Congress is what to do in Iraq. The Baker/Hamilton-led Iraq Study Group recommended...

Major Tax Issues in the 109th Congress

Open Access Publishing and Citation Archives: Background and Controversy

Controversies about open access publishing and archiving confront issues of copyright and governmental competition with the private sector. Traditional publishers typically charge readers subscriber fees to fund the costs of publishing and distributing hard-copy and/or online journals. In contrast, most open access systems charge authors publication fees and give readers free online access to the full text of articles. Supporters of the open access “movement” object to the rising costs of journal subscriptions; share peer reviewers’ reluctance to do free reviews for journals rapidly...

Pay-for-Performance in Health Care

Federal Spending by Agency and Budget Function, FY2001-FY2006

Derivatives, Risk Management, and Policy in the Energy Markets

Risk management is important in the energy industries because of the volatility of oil and natural gas prices. Price volatility can reduce the profit of business strategies and hurt consumers. The use of financial derivatives, both traded and over-the-counter, has developed as a low cost method of hedging price risk. However, the use of derivatives has also been linked to major financial scandals and bankruptcies.

Risk management strategies can be undertaken without the use of derivatives. Vertical integration of the production process, inventory control, and long-term, fixed price...

Accounting Problems at Fannie Mae

9/11 Commission Recommendations: Implementation Status

This report provides a review of the 9/11 Commission recommendations and the status of their implementation at the end of the 109th Congress. The discussions herein are organized on the basis of policy themes that are at the core of the 9/11 Commission’s recommendations, rather than through a review of each numbered item set out in the Commission’s final report. The analysis was produced by a large team of CRS Specialists, analysts, and attorneys who are responsible for the wide variety of policy areas covered by the 9/11 Commission in its work. The authors of the varied segments of this...

Membership of the 109th Congress: A Profile

This report presents a profile of the membership of the 109th Congress. Statistical information is included on selected characteristics of Members, including data on party affiliation, average age and length of service, occupation, religious affiliation, female and minority Members, foreign-born Members, and military service.

Gulf Coast Hurricanes: Addressing Survivors’ Mental Health and Substance Abuse Treatment Needs

Major disasters such as Hurricanes Katrina, Rita, and Wilma, which struck Gulf Coast states in 2005, have the potential not only to cause mental health problems for individuals, but also to weaken or disable the systems designed to address those individuals’ needs. Striking an appropriate balance of responsiveness, fiscal responsibility, and accountability in the provision of federal assistance programs during and following a disaster remains a difficult goal.

Federal leadership for mental health and substance abuse programs resides in the Substance Abuse and Mental Health Services...

Proposals in the 109th Congress to Split the Ninth Circuit Court of Appeals

Proposals to split the Ninth Circuit Court of Appeals have been before Congress for decades. Proponents of a split generally argue that the current Ninth Circuit is overburdened, and that creating two or more new circuits with reduced geography, population, and caseloads would improve judicial administration. Opponents of a split reject those claims, saying that the current Ninth Circuit functions well and that the court is a model of innovation. Opponents of a split also suggest that efforts to divide the circuit represent an attack on judicial independence, a claim supporters of a split...

Dam Removal: Issues, Considerations, and Controversies

Homeland Security Department: FY2007 Appropriations

The annual consideration of appropriations bills (regular, continuing, and supplemental) by Congress is part of a complex set of budget processes that also encompasses the consideration of budget resolutions, revenue and debt-limit legislation, other spending measures, and reconciliation bills. In addition, the operation of programs and the spending of appropriated funds are subject to constraints established in authorizing statutes. Congressional action on the budget for a fiscal year usually begins following the submission of the President’s budget at the beginning of each annual session...

Growth in Foreign Holdings of Federal Debt

This report discusses the special role that the dollar plays in international finance and the strength and stability of the U.S. financial markets (including Treasury securities) which make them attractive sources for foreign investment.

Balancing Scientific Publication and National Security Concerns: Issues for Congress

The federal government has historically supported the open publication of federally funded research results. In cases where such results presented a challenge to national security concerns, several mechanisms have been employed. For fundamental research results, the federal policy has been to use classification to limit dissemination. For advanced technology and technological information, a combination of classification and export and arms trafficking regulation has been used to inhibit its spread. The terrorist attacks of 2001 increased scrutiny of nonconventional weapons, including...

Minimum Wage, Overtime Pay, and Child Labor: An Inventory of Proposals in the 109th Congress to Amend the Fair Labor Standards Act

This report discusses potential changes to the Fair Labor Standards Act that may occur during the 109th Congress.

Clean Air Act Issues in the 109th Congress

The courts and the executive branch have faced major decisions on clean air issues in 2006, with Congress playing a limited role. One focus has been the EPA Administrator’s September 21, 2006 decision regarding air quality standards for fine particles. According to EPA and the consensus of the scientific community, current concentrations of fine particles cause tens of thousands of premature deaths annually. The Administrator’s September 21 decision will strengthen the standards; according to the agency, it will reduce premature mortality by 1,200 - 13,000 persons annually. However, many...

The Fair Labor Standards Act: Minimum Wage in the 109th Congress

Senate Committees: Categories and Rules for Committee Assignments

Senate Rule XXV and party conference rules address committee assignments. Senate Rule XXV, paragraphs 2 and 3 establish categories of committees, popularly referred to as "A," "B," and "C," that condition assignment rules. This report outlines the categories of and rules for assigning Senators to Senate committees.

The Budget for Fiscal Year 2006

This report discusses the President's fiscal year (FY) 2007 budget (February 2006) included a revised FY2006 deficit estimate of $423 billion, $72 billion larger than its previous estimate (July 2005) and $53 billion larger than its original deficit estimate in February 2005.

Tax Policy Options After Hurricane Katrina

Elections in States Affected by Hurricanes Katrina and Rita

Tax Benefits for Families: Recent Changes for the Head of Household Filing Status

This report describes the recent changes to file a federal income tax return as a head of household.

The Federal Reserve: Recurrent Public Policy Issues

Revenue Feedback from the 2001-2004 Tax Cuts

An unexpected increase in revenues has led to a renewed discussion of the effect of the 2001-2004 tax cuts on the economy and the possible feedback effects on revenue. Some proponents of the tax cuts suggest that induced economic growth was large enough that taxes on the additional income more than offset the cost of the tax cuts, causing an increase rather than a decrease in revenues. Other observers doubt that economic growth was related to the tax cuts, or that it was large enough to significantly offset the cost of the cuts.

This report reviews available economic studies, theory, and...

Executive Lobbying: Statutory Controls

Policy Options for U.S. Export Taxation

The Information Quality Act: OMB’s Guidance and Initial Implementation

Credit Rating Agency Regulatory Reform: A Side-by-Side Comparison of H.R. 2990 and S. 3850

This report provides a side-by-side comparison of the H.R. 2990 and S. 3850 bills’ major provisions.

Lebanon: The Israel-Hamas-Hezbollah Conflict

This report analyzes the conflict between Israel and two U.S. State Department-designated Foreign Terrorist Organizations (FTOs), the Lebanese Shiite Muslim group Hezbollah and the radical Palestinian Hamas organization. On July 12, 2006, what had been a localized conflict between Israel and Palestinian militants in the Gaza Strip instantly became a regional conflagration after Hezbollah captured two Israeli soldiers in a surprise attack along the Israeli-Lebanese border. Israel responded by carrying out air strikes against suspected Hezbollah targets in Lebanon, and Hezbollah countered...

The Federal Funding Accountability and Transparency Act (S. 2590): Overview and Comparison with H.R. 5060

In an attempt to expand oversight of federal spending, including earmarks, S. 2590 would provide the public with access to an online database containing information about entities that are awarded federal grants, loans, and contracts. This report summarizes S. 2590, compares it to H.R. 5060, and outlines the arguments in favor of the bill and those critical of it. The final section discusses the implications of using the Federal Assistance Award Data System (FAADS) and the Federal Procurement Data System (FPDS) to populate the bill’s proposed database.

U.S. Housing Prices: Is There a Bubble?

Average Effective Corporate Tax Rates: 1959 to 2005

This report examines average effective corporate tax rates of domestic nonfinancial corporations. Generally, the average effective corporate tax rate is total corporate tax receipts divided by corporate profits.

FEMA Reorganization Legislation in the 109th Congress

Abandoned Mine Reclamation Fee on Coal

Asbestos Litigation: Prospects for Legislative Resolution

Long-Term Measures of Fiscal Imbalance

Short-term budget estimates, while critical for program administration and congressional spending decisions, provide a partial and potentially misleading impression of the federal government’s fiscal situation. On the other hand, long-term measures have their own limitations. On the positive side, they indicate the magnitude of long-term budget imbalances resulting from the gap between future federal tax revenues and the costs of providing retirement and health care for the baby-boom generation. However, long-term projections are subject to substantial uncertainties for two reasons. First,...

Emergency Supplemental Appropriations for Hurricane Katrina Relief

This CRS report summarizes federal disaster assistance funding legislation in the 109th Congress and presents some information on federal expenditures and obligations for disaster recovery activities.

The Emergency Management Assistance Compact (EMAC): An Overview

Disaster Evacuation and Displacement Policy: Issues for Congress

Parents’ Work and Family Economic Well-Being

Family and work structure most Americans’ lives. Work provides the principal means by which most families support themselves, and public policies directed at low-income families with children have generally attempted to encourage and support work. Family structure also has been a focus of public policy because an increasing number of children live with a single parent, and poverty rates for such children are much higher than for those in married-couple families. Families with children, regardless of marital status, are at greater risk of poverty, with child poverty rates higher than those...

Life Expectancy in the United States

As a result of falling age-specific mortality, life expectancy rose dramatically in the United States over the past century. Final data for 2003 (the most recent available) show that life expectancy at birth for the total population has reached an all-time American high level, 77.5 years, up from 49.2 years at the turn of the 20th century. Record-high life expectancies were found for white females (80.5 years) and black females (76.1 years), as well as for white males (75.3 years) and black males (69.0 years). Life expectancy gaps between males and females and between whites and blacks...

State and Local Homeland Security: Unresolved Issues for the 109th Congress

Arguably, the three most important homeland security public laws enacted following the terrorist attacks on September 2001 are: P.L. 107-56, “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act)”; P.L. 107-296, “Homeland Security Act of 2002”; and P.L. 108-458, “Intelligence Reform and Terrorism Prevention Act of 2004.” The PATRIOT Act focused on enhancing domestic security through anti-terrorism measures, specifically, law enforcement and legal responses to terrorism. The Homeland Security Act established the...

Federal Emergency Management and Homeland Security Organization: Historical Developments and Legislative Options

This report provides background information about the establishment and evolution of federal emergency management and related homeland security organization since 1950. Post-Katrina assessments of current arrangements by Congress and the White House are also discussed. Finally, the report provides a brief summary of related legislation that had been introduced as of July 17, 2006.

FY2003 and FY2004 State Allocations for Selected Homeland Security Assistance Programs

The Department of Homeland Security (DHS) and the Department of Health and Human Services (HHS) provide assistance programs to state and local first responders and public health officials to prepare for, respond to, and recover from terrorist attacks, including weapons of mass destruction (WMD) incidents. Most of the programs provide assistance funding to states, which in turn allocate funding to localities. Some programs, however, provide assistance directly to localities. Programs of this type include the Assistance to Firefighters Program (FIRE) and the Urban Area Security Initiative...

FY2006 Appropriations for State and Local Homeland Security

Financial Services Regulatory Relief in the 109th Congress: H.R. 3505 and S. 2856

This report gives an overview of the major regulatory relief provisions in H.R. 3505 and S. 2856, focusing on their potential impact on bank concentration. The report examines both bills’ provisions to assess whether they are likely to support or discourage bank consolidation. The consolidation of the banking industry arguably reduces competition, which could tend to raise the price of banking services. On the other hand, there is empirical evidence that shows economies of scale in banking, including economies in complying with banking regulations, suggesting larger banks might be able to...

European Approaches to Homeland Security and Counterterrorism

The September 11, 2001 terrorist attacks on the United States and the subsequent attacks on European countries such as the United Kingdom and Spain have prompted both sides of the Atlantic to reinvigorate their respective efforts to ensure homeland security and combat terrorism. However, U.S. and European approaches to these issues differ. While the United States has embarked on a wholesale reorganization of its domestic security and border protection institutions, European countries have largely preferred to work within their existing institutional architectures to combat terrorism and...

FY2004 Appropriations for First Responder Preparedness: Fact Sheet

This report provides an overview of FY2004 appropriations for state and local terrorism preparedness. Preparedness may be defined as enhancing a state or local government’s capability to respond effectively to a terrorist attack, particularly one involving a weapon of mass destruction (WMD).

A Sunset Commission for the Federal Government: Recent Developments

The sunset concept provides for programs and agencies to terminate automatically on a periodic basis unless explicitly renewed by law. In the last ten years, bills to create a federal sunset commission, modeled on the sunset review process in Texas, have been introduced in each Congress. President Bush called for creation of a federal sunset commission in his FY2006 budget submission. This report discusses this issue and relevant pieces of legislation.

Item Veto and Expanded Impoundment Proposals

China, the United States and the IMF: Negotiating Exchange Rate Adjustment

In recent years, the United States and other countries have expressed considerable concern that China's national currency (the yuan or renminbi) is seriously undervalued. Some analysts say the yuan needs to rise by as much as 40% in order to reflect its equilibrium value. Critics say that China's undervalued currency provides it with an unfair trade advantage that has seriously injured the manufacturing sector in the United States. Chinese officials counter that they have not pegged the yuan to the dollar in order to gain trade advantages. Rather, they say the fixed rate promotes economic...

S. 3521, the Stop Over Spending Act of 2006: A Brief Summary

S. 3521, the Stop Over Spending Act of 2006, proposes several changes to the congressional budget process. This report provides a brief summary of the major provisions of S. 3521.

Student Loan Forgiveness Programs

The Advisory Panel’s Tax Reform Proposals

In November 2005, the President’s Advisory Panel on Tax Reform presented two potential reform proposals: a simplified income tax (SIT) and a direct consumption tax proposal (the growth and investment tax, or GIT). Both proposals would eliminate itemized deductions while allowing, for all taxpayers, a credit for mortgage interest deductions and deductions for charitable contributions and health insurance. Both proposals substitute credits for personal exemptions and standard deductions. Both would allow greatly expanded tax-preferred savings plans. SIT would eliminate taxes on dividends and...

Korea: U.S.-Korean Relations — Issues for Congress

A Changing Natural Rate of Unemployment: Policy Issues

A concept that is fundamental to understanding the economy is that there is an equilibrium, market-clearing rate of unemployment determined by labor market characteristics, policy, and conditions. This rate of unemployment is referred to as the "natural rate" or "full employment rate" of unemployment or the NAIRU (non-accelerating inflation rate of unemployment). Although expansionary fiscal or monetary policy might be able to temporarily push unemployment below the natural rate in exchange for higher inflation, eventually actual unemployment would rise back to the natural rate without...

Arctic National Wildlife Refuge (ANWR): Controversies for the 109th Congress

One part of the energy debate is whether to approve energy development in the Arctic National Wildlife Refuge (ANWR) in northeastern Alaska, and if so, under what conditions, or whether to continue to prohibit development to protect the area's biological, recreational, and subsistence values. ANWR is rich in fauna, flora, and oil potential. Its development has been debated for over 40 years, but sharp increases in energy prices from late 2000 to early 2001, terrorist attacks, more price increases in 2004-2006, and energy infrastructure damage from hurricanes have intensified debate. Few...

Middle East Free Trade Area: Progress Report

The purpose of this report is to describe Middle East Free Trade Area (MEFTA) in terms of: (1) its impetus, (2) its major elements; (3) background trade data, (4) details; and (5) arguments for each.

Public Debt Reduction Fund

Federal Monthly Budget Totals

Standard Deduction and Personal/Dependency Amounts for Children Age 14 and Over or Students

Generally, a taxpayer is allowed one exemption for each person claimed as a dependent. The taxpayer can claim the dependent if the individual meets five tests for dependency. As a result of the Working Families Tax Relief Act of 2004 , the tests for certain dependents, children, were simplified when a uniform definition of a qualifying child was adopted. A taxpayer may claim dependency exemptions for children 19 through 23 years of age who are full-time students at least five months during the year. Between 1954 and 1986, it was possible for both a parent and his or her child or...

Coal Mine Safety

Foreign Outsourcing: Economic Implications and Policy Responses

Foreign outsourcing—the importing of some intermediate product (i.e., a portion of a final product or some good or service needed to produce a final product) that was once produced domestically—is not a new phenomenon, nor is it one that is economically distinct from other types of imports in terms of its basic economic consequences. A steadily rising level of trade in intermediate products is one of the salient characteristics of U.S. trade and world trade for the last 30 years. It has been estimated that as much as a third of the growth of world trade since 1970 has been the result of...

The Level of Taxes in the United States, 1940-2005

The Basel Accords: The Implementation of II and the Modification of I

FY2006 Supplemental Appropriations: Iraq and Other International Activities; Additional Hurricane Katrina Relief

This report discusses the two separate FY2006 supplemental appropriations requests submitted on February 16, 2006. The first, totaling $72.4 billion, would fund ongoing military operations in Iraq and Afghanistan ($67.9 billion), non-DOD intelligence operations ($0.3 billion), State Department operations in Iraq and various foreign aid programs, including additional assistance for Iraq ($4.2 billion), and other counter-terrorism funding for other agencies ($12 million). The other supplemental would provide $19.8 billion for recovery and reconstruction activities in hurricane affected Gulf...

Hearings in the House of Representatives: A Guide for Preparation and Procedure

Congressional hearings are the principal formal method by which committees collect and analyze information in the early stages of policy making. Whether legislative, oversight, investigative, or a combination of these, all hearings share common elements of preparation and conduct. House Rule XI sets down many of the regulations to which committee hearings must conform, including the quorum requirement, advance submission of witness statements, the opportunity for minority party members to call witnesses of their choosing, the five-minute rule for questioning witnesses, witness rights, the...

Taxes and Fiscal Year 2006 Budget Reconciliation: A Brief Summary

Why the Dollar Rose in 2005 and the Prospect for 2006: Insights into the State of International Asset Markets and the Global Economy

The dollar exchange rate rose substantially in 2005, halting a three-year decline and moving counter to the expectations of many observers. This report discusses potential reasons for the dollar's appreciation.

Long-Term Growth of the U.S. Economy: Significance, Determinants, and Policy

The rate of long-term economic growth is the salient measure of the nation’s ability to steadily advance its material living standard. The pace of long-term economic growth is likely to be a center of attention in the decades just ahead, as the U.S. economy confronts the need to undertake unprecedentedly large generational transfers of income to pay for the retirement of the huge baby-boom generation as well as large transfers to the rest of the world to meet the debt service costs of the United States’ large and still growing foreign debt.

For the United States, the long-term growth of...

WTO: Antidumping Issues in the Doha Development Agenda

Congressional Gifts and Travel: Proposals for the 109th Congress

Extending the 2001, 2003, and 2004 Tax Cuts

Argentina's Sovereign Debt Restructuring

In December 2001, after four years of deepening recession, impending financial crisis, and mounting social unrest, Argentina's government suddenly collapsed and ceased all payments on its debt. Argentina has failed to pay before, but this time it registered the largest sovereign default in history. Total public debt grew from 62% of GDP in late 2001 to a record-breaking and unsustainable 164% following default and devaluation in early 2002. Argentina faced restructuring over $100 billion of debt owed to domestic and international bondholders, including $10-15 billion of bonds held by...

Medical Malpractice: An Overview

Campaign Finance

The Structure of Social Security Individual Account Contributions and Investments: Choices and Implications

Policymakers have debated creating a system of individual accounts (IAs) as part of Social Security for many years. This report describes policymakers’ administrative and structural choices regarding the collection and investment of assets in a system of individual accounts.

Real Estate Investment Trusts (REITs): Considerations for the Federal Employees Thrift Savings Plan (TSP)

Real Estate Investment Trusts (REITs) are mutual funds made up of real estate and mortgage assets. In recent years, their performance has been stronger than broader market indicators, leading to calls for inclusion of an REIT alternative in the Thrift Savings Plan (TSP) for federal workers. At present, the TSP is limited to five savings vehicles, three of which are broad-based stock indexes. Proponents of inclusion cite greater diversification and participant choice in the TSP as well as potentially higher returns as benefits of the proposal. The TSP board, while studying the matter,...

North Korea: A Chronology of Events in 2005

This report provides a chronology of events relevant to U.S. relations with North Korea in 2005 and is a continuation of CRS Report RL32743, North Korea: A Chronology of Events, October 2002-December 2004, by Mark E. Manyin, Emma Chanlett-Avery, and Helene Machart. The chronology includes significant meetings, events, and statements that shed light on the issues surrounding North Korea’s nuclear weapons program. An introductory analysis highlights the key developments and notes other significant regional dynamics. Particular attention is paid to the Six-Party Talks, inter-Korean relations,...

ANWR Leasing Revenue Estimates

A Value-Added Tax Contrasted With a National Sales Tax

Value-Added Tax as a New Revenue Source

Debt Relief for Heavily Indebted Poor Countries: Issues for Congress

In recent decades, the rapid growth in poor country debt has emerged as a key foreign policy concern. Many analysts believe that this debt burden is an impediment to economic growth and poverty reduction. Others contend that for the poorest countries, other factors such as weak political and economic institutions, are a greater impediment to growth than the debt burden. There have been many efforts to help reduce poor country debt. In 1988 a group of major creditor nations, known as the Paris Club, agreed for the first time to cancel debts owed to them instead of refinancing them on...

Davis-Bacon Suspension and Its Legislative Aftermath

The Effects of Government Expenditures and Revenues on the Economy and Economic Well-Being: A Cross-National Analysis

Congress passed and the President signed a reconciliation bill (P.L. 109-171) to reduce mandatory spending by $39 billion between FY2006 and FY2010. A revenue reduction reconciliation bill (H.R. 4297) has not been enacted as of the date of this report. Many argue that tax and spending reductions will stimulate economic growth, whereas many others argue that tax cuts will lead to a larger deficit with adverse economic effects and that spending cuts will reduce critical government services. This report examines the effects of government spending and taxation on economic growth and economic...

China-Southeast Asia Relations: Trends, Issues, and Implications for the United States

Southeast Asia has been considered by some to be a region of relatively low priority in U.S. foreign and security policy. The war against terror has changed that and brought renewed U.S. attention to Southeast Asia, especially to countries afflicted by Islamic radicalism. To some, this renewed focus, driven by the war against terror, has come at the expense of attention to other key regional issues such as China's rapidly expanding engagement with the region. Some fear that rising Chinese influence in Southeast Asia has come at the expense of U.S. ties with the region, while others...

Tax Preferences for Sport Utility Vehicles (SUVs): Current Law and Legislative Initiatives in the 109th Congress

The surge in domestic popularity of large sport utility vehicles (SUVs) since the early 1990s has stirred a debate over what steps the federal government should take, if any, to mitigate their effects on the environment, highway safety, traffic congestion, and U.S. dependence on foreign sources of oil. Legislative activity in the 108th Congress expanded the scope of the debate to include the ways in which the federal tax code encourages the purchase of heavy-duty SUVs, primarily for business use. In May 2003, Congress passed a measure (the Jobs and Growth Tax Relief Reconciliation Act of...

The FCC's "a la Carte" Reports

The Federal Communications Commission (FCC) has released two reports on a la carte pricing of cable television networks that reach contradictory conclusions. The purpose of this report is to explain how these two reports reached differing conclusions and to analyze the different assumptions and calculations used in each.

Estate and Gift Tax Revenues: Several Measurements

The Crude Oil Windfall Profit Tax of the 1980s: Implications for Current Energy Policy

In April 1980, the federal government enacted the crude oil windfall profit tax on the U.S. oil industry. The main purpose of the tax was to recoup for the federal government much of the revenue that would have otherwise gone to the oil industry as a result of the decontrol of oil prices. Supporters of the tax viewed this revenue as an unearned and unanticipated windfall caused by high oil prices, which were determined by the OPEC (Organization of Petroleum Exporting Countries) cartel.

Despite its name, the windfall profit tax (WPT) was actually an excise tax, not a profits...

State and Local Sales and Use Taxes and Internet Commerce

An Overview of the Administration's Strengthening America's Communities Initiative

For the second consecutive year, the Administration has included in its budget request, a proposal that would eliminate a number of federal economic and community development programs. Last year, the Administration's FY2006 budget recommendations included a proposal that would have consolidated the activities of at least 18 existing community and economic development programs into a two-part grant proposal called the "Strengthening America's Communities Initiative" (SACI). Responsibility for the18 programs now being carried out by five federal agencies (the Department of Housing and Urban...

LIHEAP and Residential Energy Costs

Congress and Program Evaluation: An Overview of Randomized Controlled Trials (RCTs) and Related Issues

Program evaluations can play an important role in public policy debates and in oversight of government programs, potentially affecting decisions about program design, operation, and funding. One technique that has received significant recent attention is the randomized controlled trial (RCT). There are also many other types of evaluation, including observational and qualitative designs.

An RCT attempts to estimate a program’s impact upon an outcome of interest (e.g., crime rate). An RCT randomly assigns subjects to treatment and control groups, administers an intervention to the treatment...

Comparison of Selected Senate Earmark Reform Proposals

In response to reports of, and concern over, alleged irregularities in certain lobbying and representational activities, the Senate is considering various lobby and ethics reform proposals. Some have argued that the Senate should consider changes to the process by which the Senate earmarks spending priorities as a part of the larger focus on lobby and ethics reform.

Proposals to modify the earmark processes have been included in some Senate bills. On February 28, 2006, for example, the Senate Committee on Rules and Administration ordered reported S. 2349 , Legislative Transparency and...

The Department of Housing and Urban Development (HUD): FY2006 Budget

In February 2005, a House Appropriations Committee reorganization plan abolished the Veterans Affairs, Department of Housing and Urban Development (HUD), and Independent Agencies Subcommittee, sending HUD to a new Treasury, Transportation, Judiciary, Housing and Urban Development, District of Columbia and Related Agencies Subcommittee. A similar but not identical change was made in the Senate, creating the Transportation, Treasury, HUD Subcommittee. On February 7, 2005, the Administration submitted a $29.1 billion FY2006 budget request for HUD, which is 9% less than was provided in...

China and the CNOOC Bid for Unocal: Issues for Congress

The bid by the China National Offshore Oil Corporation (CNOOC) to acquire the U.S. energy company Unocal for $18.5 billion raised many issues with U.S. policymakers. This report provides an overview and analysis of the CNOOC bid, U.S. interests, implications for U.S. energy security, U.S. investment in the PRC’s (People’s Republic of China’s) oil industry, the process for reviewing the security and other implications of foreign investment in the United States, Congressional activity, and a listing of unresolved issues.

Civilian Nuclear Waste Disposal

Baseline Budget Projections Under Alternative Assumptions

Trade Issues in the 109th Congress: Policy Challenges and Opportunities

The second session of the 109th Congress is expected to face an extensive trade agenda consisting of a wide range of issues. In some respects these issues are distinct, each with its own policy and economic implications. In other respects the issues are interrelated. They have emerged from common sets of domestic political, foreign policy, and economic factors and affect or are affected by the concerns of Members of Congress, of other policymakers and of many interest groups. These issues and how policymakers deal with them will define overall U.S. trade policy. During the first session,...

Ad Hoc Select Committees: Use in the House of Representatives

A select committee is generally created to focus on a specific, significant issue. Although not extensively used in recent years, select committees have been employed when jurisdiction over a subject matter is so fragmented or overlapping that no single committee has a clearly established leading jurisdictional authority. As such, the development of a coordinated approach may only be possible through the use of a select committee. An ad hoc select committee is a type of select panel that is usually formed for a single purpose to deal with a specific subject. This report describes...

Tax Credits for Individual Development Accounts

An individual development account (IDA) is a structured savings instrument for lower income individuals. This report discusses legislation introduced in the 108th Congress to establish IDA programs utilizing tax benefits to encourage program development.

Funding for Public Charter School Facilities: Federal Policy Under the ESEA

This report examines the federal role in providing funding for public charter school facilities. Under the Elementary and Secondary Education Act (ESEA), federal support for public charter school facilities is authorized under Title V-B -- Public Charter Schools. It includes background on the topic and on current facilities, as well as relevant federal policy and federal programs authorized under the Internal Revenue Code.

Tax Benefits for Health Insurance: Current Legislation

This report discusses a variety of potential proposals to change the tax benefits for health insurance and medical expenses, including measures that would expand the availability and attractiveness of health savings accounts (HSAs), or employer tax credits.

Interior, Environment, and Related Agencies: FY2006 Appropriations

The FY2006 Interior, Environment, and Related Agencies appropriations bill includes funding for the Department of the Interior (DOI), except for the Bureau of Reclamation, and for two agencies within other departments—the Forest Service within the Department of Agriculture and the Indian Health Service within the Department of Health and Human Services. It also includes funding for arts and cultural agencies; the Environmental Protection Agency, which was newly-transferred to the Appropriations subcommittees that deal with Interior and Related Agencies; and numerous other entities and...

Brazilian Trade Policy and the United States

As the largest and one of the most influential countries in Latin America, Brazil has emerged as a leading voice for developing countries in setting regional and multilateral trade agendas. The United States and Brazil have cultivated a constructive relationship in pursuit of their respective efforts to promote trade liberalization, including attempting to broker a compromise with the European Union in the World Trade Organization (WTO) Doha Round and forming bilateral working groups on trade (and other) issues. Still, they approach trade policy quite differently, are at odds over how to...

The Continued Dumping and Subsidy Offset Act ("Byrd Amendment")

The Continued Dumping and Subsidy Offset Act (CDSOA), commonly known as the "Byrd Amendment," is a U.S. law providing for the distribution of import duties collected as a result of antidumping (AD) or countervailing duty (CVD) orders to petitioners and other interested parties in the investigations that resulted in the orders. CDSOA disbursements amounted to $231 million in FY2001, $330 million in FY2002, $190 million in FY2003 (with an additional $50 million held in reserve pending the outcome of a legal challenge), and $284 million in FY2004. The CDSOA was successfully challenged in a...

China: Economic Sanctions

The United States currently maintains the following economic sanctions against China: limits on U.S. foreign assistance;
U.S. “No” votes or abstention in the international banks;
ban on Overseas Private Investment Corporation programs;
ban on export of defense articles or defense services;
ban on import of munitions or ammunition;
ban on procurement of goods and services listed on the munitions list in the International Trafficking in Arms Regulations;
denial of Generalized System of Preferences status;
substantial export controls on dual-use items,...

Oil and Gas Leasing in the Arctic National Wildlife Refuge (ANWR): The 2,000-Acre Limit

Congress is again considering whether to permit drilling for oil and gas on the coastal plain of the Arctic National Wildlife Refuge (ANWR), Alaska, or to maintain the current statutory prohibition on oil and gas development in the Refuge. The 109th Congress has considered the issue in authorizing bills, budget reconciliation bills, and an appropriation bill, but legislation opening the Refuge has not yet passed both chambers. Several measures would have limited the surface area that could be covered by certain oil production and support facilities to 2,000 acres of the 1.5 million acres...

Federal Research and Development Funding: FY2006

The Bush Administration requested $132.4 billion in federal research and development (R&D) funding for FY2006. This sum represents a $400 million increase over the FY2005 estimated funding level of $132 billion. CRS estimates that Congress has approved a record $135.7 billion for federal R&D in FY2006, a 2.8% increase over the FY2005 estimated funding level. However, nearly all of that increase can be attributed to increases in defense weapons systems and the National Aeronautics and Space Administration's $877 million increase for human space exploration technology. (1) (See Table 13) ...

Liquefied Natural Gas (LNG) in U.S. Energy Policy: Infrastructure and Market Issues

Liquefied natural gas (LNG) imports to the United States are increasing to supplement domestic gas production. Recent actions by Congress and federal agencies have promoted greater LNG supplies by changing regulations, clarifying siting authorities, and streamlining the approval process for LNG import terminals. Were these policies to continue and gas demand to grow, LNG might account for as much as 21% of U.S. gas supply by 2025, up from 3% in 2005. Congress is examining the infrastructure and market implications of greater U.S. LNG demand.

There are concerns about how LNG capacity...

Federal Tax Benefits for Families’ K-12 Education Expenses in the Context of School Choice

This report focuses on proposals offered to amend the federal income tax code to subsidize the expenses of families with children enrolled in the K-12 school of their choice. It begins with a discussion of K-12 education reform efforts to provide a context for the proposed tax subsidies. Next, it reviews existing federal tax provisions that could help families pay for the cost of their children’s K-12schooling. The report then analyzes the kind of proposals that have been introduced to expand existing federal tax benefits or to authorize new ones for families incurring K-12 education expenses.

Agriculture and Related Agencies: FY2006 Appropriations

The President signed the FY2006 Agriculture Appropriations Act (P.L. 109-97, H.R. 2744) into law on November 10, 2005. The act includes all of the U.S. Department of Agriculture (except the Forest Service), plus the Food and Drug Administration, and the Commodity Futures Trading Commission. The $100.1 billion law is $15.0 billion (+18%) above FY2005 levels, and contains $17.03 billion in discretionary spending and $83.07 billion for mandatory programs. The discretionary amount is $199 million (+1.2%) above FY2005 levels, $201 million (+1.2%) more than the House bill, and $317 million...

Foreign Operations (House)/State, Foreign Operations, and Related Programs (Senate): FY2006 Appropriations

The annual Foreign Operations appropriations bill in the House, and the State, Foreign Operations measure in the Senate are the primary legislative vehicles through which Congress reviews the U.S. international affairs budgets and influences executive branch foreign policy making generally. They contain the largest shares—the House bill, about two-thirds; the Senate bill, about 97%—of total U.S. international affairs spending.

Funding for Foreign Operations and State Department/Broadcasting programs have been rising for five consecutive years, while amounts approved in FY2004 reached an...

Pension Issues Cloud Postal Reform Debate

Trade Integration in the Americas

Since the 1990s, the countries of Latin America and the Caribbean have been a focus of United States trade policy, as demonstrated by the passage of the North American Free Trade Agreement (NAFTA), the U.S.-Chile Free Trade Agreement, and, more recently, the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). The Bush Administration has made trade agreements important elements of U.S. trade policy. The United States currently is in the process of completing trade negotiations with Andean countries for a free trade agreement (FTA) and on reactivating talks for a U.S.-Panama...

Appropriations for the Treasury Department and Internal Revenue Service in FY2006: Issues for Congress

The Treasury Department performs a host of critical functions as a federal agency. Foremost among them are protecting the nation’s financial system from a variety of financial crimes, administering the tax code and collecting tax revenue, managing and accounting for the public debt, administering the government’s finances, and regulating and supervising financial institutions.

This report examines the President’s budget request for Treasury and the Internal Revenue Service (IRS) in FY2006, some of the key policy issues it raised, and congressional action on the request. It will not be...

Homeland Security Department: FY2006 Appropriations

This report describes the FY2006 appropriations for the Department of Homeland Security (DHS). The Administration requested a net appropriation of $30.6 billion in net budget authority for FY2006, of which $29.6 billion is discretionary budget authority, and $1 billion is mandatory budget authority. P.L. 109-90 was signed into law on October 18, 2005, and provides a net appropriation of $31.9 billion for DHS and $30.8 billion in discretionary budget authority.

The President’s request for appropriations includes the following break out of net budget authority for the four Titles of the DHS...

ANWR Development: Economic Impacts

Libya: Legislative Basis for U.S. Economic Sanctions

This report discusses U.S. laws and executive orders that impose economic sanctions currently in place against Libya, including whether they can be changed by executive action, and exemptions to the sanctions that could make foreign assistance available. This report will be updated as events warrant.

Postal Reform

Transportation, the Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, the Executive Office of the President, and Independent Agencies: FY2006 Appropriations

At the beginning of the 109th Congress, both the House and Senate Committees on Appropriations reorganized their subcommittee structure, affecting the coverage of the FY2006 appropriations bills. As a result, the appropriations subcommittees that previously oversaw the Departments of Transportation and the Treasury, the Executive Office of the President, and Independent Agencies now also oversee the Department of Housing and Urban Development, the Judiciary, and (in the case of the House, but not the Senate) the District of Columbia.

The Bush Administration requested $126.1 billion for...

Textile and Apparel Quota Phaseout: Some Economic Implications

Congressional Budget Actions in 2005

Avoiding Gridlock in the Skies: Issues and Options for Addressing Growth in Air Traffic

A major challenge facing aviation policymakers is developing a strategy for increasing the capacity of the national airspace system to keep pace with projected growth in demand for air travel. While Transportation Secretary Norman Mineta’s vision for the next generation air traffic system aspires to triple system capacity by 2025, FAA projections suggest that capacity enhancements will struggle to keep pace with growth in demand at major airports, in busy airspace around major metropolitan areas, and along certain busy high altitude corridors. Factors, including the continuing...

Early Childhood Education: Preschool Participation, Program Efficacy, and Federal Policy Issues

This report examines what we currently know about preprimary programs, including numbers of children served and their family characteristics; as well as data on the efficacy of preprimary programs in enhancing later learning and other life skills. It also discusses federal programs that serve preschool age children are described, and policy issues which may arise as the federal role in early childhood education.

Personal Reemployment Accounts: Results from Bonus Experiments

Banking and Securities Regulation and Agency Enforcement Authorities

The federal bank regulatory agencies — the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision — have extensive authority to enforce various legal and regulatory standards with respect to the banking institutions that they supervise. Similarly, the Securities and Exchange Commission (SEC) has a wide range of tools to enforce the securities laws. This report provides a brief sketch of these authorities and identifies the organizational entities within each agency that...

The Role of HUD Housing Programs in Response to Past Disasters

Hurricane Katrina has resulted in the displacement of tens of thousands of families from their homes. While its magnitude is unprecedented, the resulting need to shelter and house displaced families is not. The Department of Housing and Urban Development (HUD), the nation's agency with a mission to provide safe and decent housing for all Americans, has played a role in meeting those needs in the past and is playing a role in the wake of Katrina. This report looks at HUD's current programs and how they have been used to respond to past disasters. The report begins by introducing the...

Price Determination in Agricultural Commodity Markets: A Primer

This report provides a general description of price determination in major U.S. agricultural commodity markets for wheat, rice, corn, soybeans, and cotton. Understanding the fundamentals of commodity market price formation is critical to evaluating the potential effects of government policies and programs (existing or proposed), as well as of trade agreements that may open U.S. borders to foreign competitors. In addition, an understanding of the interplay of market forces over time contributes to flexibility in making policy for what may be short-term market phenomena. The general price...

The Benefits of Education

Science, State, Justice, Commerce and Related Agencies (House)/Commerce, Justice, Science and Related Agencies (Senate): FY2006 Appropriations

This report monitors actions taken by the 109th Congress for the House’s Science, State, Justice, Commerce, and Related Agencies (SSJC) and the Senate’s Commerce, Justice, Science, and Related Agencies (CJS) FY2006 appropriations legislation. Appropriations bills reflect the jurisdiction of the subcommittees of the House and Senate Appropriations Committees in which they are considered. Jurisdictions for the subcommittees of the House and Senate Appropriations Committees changed at the beginning of the 109th Congress. In the 108th Congress, both the House and Senate subcommittees had...

Organization of American States: A Primer

This report provides a background on the Organization of American States (OAS), which is an international organization based in Washington, D.C., comprised of 35 Western Hemisphere states. The OAS works to promote democracy, protect human rights, preserve security, expand trade, and address cross-cutting issues of hemispheric concern.

Trade-Through Rule Reform: The SEC’s Depth of Book Alternative

California's San Joaquin Valley: A Region in Transition

CRS was requested to undertake a study of the San Joaquin Valley (SJV) and a comparison with another U.S. region. The eight-county San Joaquin Valley, part of California's Central Valley, is home to 5 of the 10 most agriculturally productive counties in the United States. By a wide range of indicators, the SJV is also one of the most economically depressed regions of the United States. This report analyzes the SJV's counties and statistically documents the basis of current socioeconomic conditions. The report further explores the extent to which the SJV shares similarities with and...

The Budget for Fiscal Year 2005

Medicaid and the State Fiscal Crisis of 2000-2003

Trade Liberalization Challenges Post-CAFTA

Since taking office in January 2001, President Bush has supported trade liberalization through negotiations on multiple fronts: globally, regionally, and bilaterally. During this period, Congress has approved five free trade agreements (FTAs) that the Bush Administration has negotiated and signed. The FTAs are designed to promote broad economic and political objectives, both domestic and foreign. However, the debate in Congress over the last FTA approved—the Central American Free Trade Agreement (CAFTA)—was contentious, sparking concerns about how Congress might consider future trade...

Costs and Benefits of Clear Skies: EPA's Analysis of Multi-Pollutant Clean Air Bills

The electric utility industry is a major source of air pollution, particularly sulfur dioxide (SO2), nitrogen oxides (NOx), and mercury (Hg), as well as suspected greenhouse gases, particularly carbon dioxide (CO2). On October 27, 2005, the Environmental Protection Agency (EPA) released a long-awaited analysis comparing the costs and benefits of alternative approaches to controlling this pollution. The alternative schemes focus on using market-oriented mechanisms directed at multiple pollutants to achieve health and environmental goals. The new analysis compares four versions of the...

AIDS Orphans and Vulnerable Children (OVC): Problems, Responses, and Issues for Congress

Since HIV/AIDS was discovered in 1981, more than 20 million people have lost their lives to the virus. According to the Joint United Nations Program on HIV/AIDS (UNAIDS), nearly 40 million are currently living with HIV/AIDS, including nearly 2.2 million children under the age of 15. In 2004, 4.9 million people acquired the virus, and 3.1 million died from AIDS. Sub-Saharan Africa remains the most affected region with 25.4 million people living with HIV/AIDS at the end of 2004, 1.9 million of whom were children under the age of 15. The United States Agency for International Development...

Stock Options: The Accounting Issue and Its Consequences

The Financial Accounting Standards Board (FASB) has issued a long-anticipated rule that stock options must be recognized as an expense on corporation income statements. The previous accounting rule permitted but did not require recognition; corporations that elected to omit the cost of options, as most did, have been able to report higher earnings. This report examines the debate surrounding the issue and discusses the potential consequences.

Proposals for a Commission on the Accountability and Review of Federal Agencies (CARFA): Analysis and Issues for Congress

In the 109th Congress, companion bills have been introduced ( S. 1155 / H.R. 2470 ) that, if enacted, would establish a Commission on the Accountability and Review of Federal Agencies (CARFA). Either version of the proposed CARFA Act would require this 12-member commission to review certain federal agencies and programs to determine if any are duplicative , wasteful , inefficient , outdated , irrelevant , or failed . The House version would include within the commission's scope only non-defense, non-entitlement agencies and programs in the executive branch, while the Senate version...

Federal Deposit Insurance Reform Legislation (Including Budgetary Implications)

This report discusses two major deposit insurance reform bills that are currently before Congress, the

Federal Deposit Insurance Reform Act of 2005 and the Safe and Fair Deposit Insurance Act of 2005. Both bills, if passed, would effectively raise assessments paid by banks and savings associations to the deposit insurance fund.

Congressional Primaries and Filing Deadlines, 2006 Schedule

This report provides the dates of congressional filing deadlines and primary and runoff primary dates for 2006 for the states, the District of Columbia, and territories.

Postal Service for Katrina Survivors

This report discusses the affected areas served by the U.S. Postal Service (USPS) in the aftermath of Hurricane Katrina.

Disaster Response and the Appointment of a Recovery Czar: The Executive Branch's Response to the Flood of 1927

This report describes the flood of 1927, and assesses the federal government’s response thereto. In short, the federal response was an executive branch response. President Calvin Coolidge created a quasi-governmental commission that included members of his Cabinet and the American National Red Cross. This commission encouraged the public to donate funds to the relief effort. It also gave Secretary of Commerce Herbert Hoover near-absolute authority to organize and oversee its response. Hoover used this authority to weave together federal resources, American National Red Cross volunteers,...

Central America and the Dominican Republic in the Context of the Free Trade Agreement (DR-CAFTA) with the United States

This report explains the conditions in five countries in Central America (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) and one country in the Caribbean (Dominican Republic) that will be partners with the United States in the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) signed in August 2004. All of the signatory countries except Costa Rica have approved the pact. The agreement will enter into force for the approving countries on an agreed date, tentatively January 1, 2006. In U.S. approval action, the House and Senate passed the...

Hurricane Katrina Recovery: Contracting Opportunities

Community Development Block Grant Funds in Disaster Relief and Recovery

In the aftermath of previous, presidentially-declared disasters, Congress has used the Community Development Block Grant (CDBG) program to help states and local governments finance recovery efforts, whether from natural or man-made disasters. This report will provide a general overview of the CDBG program and its use in disaster relief.

ANWR and FY2006 Budget Reconciliation Legislation

This report briefly discusses the Arctic National Wildlife Refuge (ANWR) and FY2006 budget reconciliation legislation, which is considered under expedited procedures that, in particular, limit debate and amendments in the Senate.

Sudan: Economic Sanctions

The United States maintains a range of economic sanctions on the Government of Sudan. The United States generally restricts foreign aid because Sudan has been found, by the Secretary of State, to be a supporter of acts of international terrorism, is operating under a military dictatorship, and has fallen into arrears in its debt repayment. The United States has also suspended bilateral preferential trade treatment, restricted commercial exports and imports, denied the export of defense articles and defense services, and refused to support requests from Sudan for funding or program support...

Davis-Bacon Suspension and Its Legislative Aftermath

During the last week of August 2005, Hurricane Katrina gathered strength in the Atlantic and moved against the gulf states. On September 8, 2005, amid the devastation left in Katrina’s wake, President George W. Bush suspended the Davis-Bacon Act as it applies to certain jurisdictions in Florida, Alabama, Mississippi, and Louisiana. Although the President has the authority, under Section 6 of the Act, to render such suspensions during a national emergency, that authority has rarely been utilized.1 This report analyzes the legislative aftermath of the suspension.

Katrina’s Wake: Restoring Financial Services

Klamath River Basin Issues and Activities: An Overview

The Klamath River Basin, an area on the California-Oregon border, has become a focal point for local and national discussions on water management and water scarcity. Water and species management issues were brought to the forefront when severe drought in 2001 exacerbated competition for scarce water resources and generated conflict among several interests -- farmers, Indian tribes, commercial and sport fishermen, other recreationists, federal wildlife refuge managers, environmental groups, and state, local, and tribal governments. The conflicts over water distribution and allocation are...

Congress and the Courts: Current Policy Issues

The purposes of this report are to examine the Congress-court connection along several discrete, but overlapping, dimensions. First, the constitutional authority of Congress and the judiciary is summarized briefly. Second, the report highlights the court’s role as legislative-executive “umpire” and federal-state “referee” in our constitutional system. Third, the report discusses the court’s part in statutory interpretation as well as the diverse ways Congress may “check and balance” the judiciary. Fourth, the paper reviews several current controversies associated with the judicial...

Regulatory Waivers and Extensions Pursuant to Hurricane Katrina

This report identifies some of Katrina-related waivers and extensions. Federal agencies have waived a number of regulatory requirements and extended the deadlines for certain reports and applications to assist victims of Hurricane Katrina and to ease the economic effects of the storm.

National Emergency Powers

Colleges and Universities Attended by Senators of the 109th Congress

This report identifies the colleges and universities attended by Senators serving in the 109th Congress. Where available in published sources, the degrees earned are also listed.

Manufacturing Trends: Long-Term Context for Today’s Policy Issues

Emergency Preparedness and Continuity of Operations (COOP) Planning in the Federal Judiciary

This report discusses actions taken by AOUSC following the September 11 attacks, and describes expectations for emergency preparedness and COOP plans in the judiciary. Other sections address issues and policy questions Congress might consider, including matters of the status of judicial emergency and COOP preparedness, and funding for future policy and oversight questions regarding judicial contingency planning.

Mexican Workers in the United States: A Comparison with Workers from Social Security Totalization Countries

On June 29, 2004, the United States and Mexico signed a Social Security totalization agreement, the effects of which depend on the yet to be disclosed language of the agreement. A totalization agreement coordinates the payment of Social Security taxes and benefits for workers who divide their careers between two countries. The agreement has not been transmitted to Congress for review, which is required under law before the agreement can go into effect. This report does not attempt to estimate the potential cost of a totalization agreement with Mexico, or reach a conclusion on the effects...

Louisiana Emergency Management and Homeland Security Authorities Summarized

Supplemental Appropriations for the 2004 Hurricanes and Other Disasters

Republic of the Marshall Islands Changed Circumstances Petition to Congress

In September 2000, the Republic of the Marshall Islands (RMI) government submitted to the United States Congress a Changed Circumstances Petition related to U.S. nuclear testing on the Marshall Islands atolls of Bikini and Enewetak during the 1940s and 1950s. The Petition requests additional compensation for personal injuries and property damages and restoration costs, medical care programs, health services infrastructure and training, and radiological monitoring. According to various estimates, between 1954 and 2004, the United States spent over $500 million on nuclear test compensation...

Legislative Branch: FY2006 Appropriations

The President signed H.R. 2985, the FY2006 Legislative Branch Appropriations Act, into P.L. 109-55 on August 2, 2005 (119 Stat. 565). The act provides $3.804 billion in new budget authority, a 4.49% increase of $163.61 million over current budget authority. Going into conference, the House bill contained $2.87 billion, a 1.7% increase over the current budget, excluding funds for Senate items, which were determined by the Senate after House consideration of the bill. The Senate bill contained $3.83 billion, a 6.3% increase, including funds for House items.

The level of funding is less than...

Japan’s Free Trade Agreement Program

Japan’s trade policy historically has centered on multilateral negotiations and dispute settlement mechanisms. Over the past five years, however, Japan has shifted course somewhat by seeking free trade agreements (FTAs) with a number of countries, mostly in Asia. An FTA is an agreement between two countries or regional groupings to eliminate or reduce tariffs and other barriers on trade in goods and services. Non-members find their exports discriminated against.

The pursuit of FTAs is occurring worldwide. The U.S. has an aggressive program and has FTAs in place with two Asian-Pacific...

Intellectual Property and Collaborative Research

Innovative individuals and firms have increasingly engaged in collaborative research. The greater complexity of modern technology, heightened specialization in advanced fields, improved means of communications, and the desire to share the risks and expenses of high technology research have each contributed to this trend. Congressional interest in creating an environment conducive to collaborative research has resulted in numerous legislative initiatives. The Patent Law Amendments Act of 1984 and the Cooperative Research and Technology Enhancement (CREATE) Act of 2004 are among those that...

Loss-of-Use Damages From U.S. Nuclear Testing in the Marshall Islands: Technical Analysis of the Nuclear Claims Tribunal's Methodology and Alternative Estimates

Key oversight committees in the 109th Congress have held joint hearings on the Republic of the Marshall Islands (RMI) Changed Circumstances Petition, which requests $522 million in additional compensation for loss-of-use of Enewetak and Bikini atolls due to U.S. nuclear testing. The $522 million appears to be significantly overstated because the methodology -- sample rent data, assumptions, and statistical procedures (i.e., the sampling technique and the use of the exponential regression model) -- overestimates the per-acre rental rate for land on Enewetak and Bikini, the key variable in...

Continuity of Congress: Enacted and Proposed Federal Statutes for Expedited Election to the House in Extraordinary Circumstances

This report is one of several CRS products related to congressional continuity and contingency planning.

Reintroduction of the 30-Year Treasury Bond: An Economic Analysis

This report discusses the reintroduction of the 30-year bond that could reduce government borrowing costs.

Terrorist Financing: U.S. Agency Efforts and Inter-Agency Coordination

Stopping the ability of terrorists to finance their operations is a key component of the U.S. counterterrorism strategy. To accomplish this, the Administration has implemented a three-tiered approach based on (1) intelligence and domestic legal and regulatory efforts; (2) technical assistance to provide capacity-building programs for U.S. allies; and (3) global efforts to create international norms and guidelines. Effective implementation of this strategy requires the participation of, and coordination among, several elements of the U.S. Government. This report provides an...

China’s Currency: U.S. Options

In recent years, the United States and China have disagreed whether China’s national currency, the yuan or renminbi, is properly valued compared to the U.S. dollar and whether China is manipulating its currency.1 The United States has pushed China to raise the value of its currency. Chinese officials say they want to make their exchange rate system more flexible, but China also needs long-term stability in its currency value in order to avoid dislocations. Chinese officials also say they will not bow to foreign pressure. China announced a new exchange rate procedure on July 21, 2005. This...

Unocal Corporation’s Oil and Gas

The Federal Excise Tax on Telephone Service: A History

Energy Tax Policy: An Economic Analysis

This report provides background on the theory and application of tax policy as it relates to the energy sector, particularly with respect to the theory of market failure in the energy sector and suggested policy remedies. Economic theory suggests that producers of energy-related minerals be taxed no differently than non-mineral producers: Exploration and development costs and other investments in a deposit (including geological and geophysical costs and delay rentals) should be capitalized. In general, competitive mineral producers subject to a pure income tax would not exploit resources...

Business Tax Provisions That Benefit Persons with Disabilities

This report describes tax provisions designed to either help businesses in making their facilities available to the disabled or to promote the hiring of disabled persons. Federal tax law provides four Internal Revenue Code provisions of special significance to disabled individuals. The first three provisions discussed in this report are employer based: the work opportunity tax credit, the deduction for architectural and transportation barrier removal, and the tax credit for public accommodations expenditures for disabled individuals. A fourth provision, a deduction for employee business...

Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition

The complexities of federal farm and food programs have generated a unique vocabulary. Common understanding of these terms (new and old) is important to those involved in policymaking in this area. For this reason, the House Agriculture Committee requested that CRS prepare a glossary of agriculture and related terms (e.g., food programs, conservation, forestry, environmental protection, etc.). Besides defining terms and phrases with specialized meanings for agriculture, the glossary also identifies acronyms, abbreviations, agencies, programs, and laws related to agriculture that are of...

Food Safety Issues in the 109th Congress

Libya

World Trade Organization (WTO): Issues in the Debate on U.S. Participation

The World Trade Organization (WTO) is of interest to the 109th Congress for several reasons. First, House Members considered a joint resolution (H.J.Res. 27) to withdraw congressional approval of the agreement establishing the WTO. The House Ways and Means Committee reported the resolution adversely on May 26, 2005, and the full House disapproved the resolution by a vote of 338-86 on June 9, 2005. Debate on the resolution offered Members an opportunity to examine the costs and benefits of WTO participation and examine other aspects of WTO membership.

Second, the 109th Congress will monitor...

Reconciliation and the Deficit in FY2006 and Through FY2010: Fact Sheet

This report discusses the budget resolution for FY2006 (H.Con.Res. 95), adopted by Congress on April 28, 2005, which included reconciliation instructions for three bills.

The Trade-Through Rule

The trade-through rule mandates that when a stock is traded in more than one market, transactions may not occur in one market if a better price is offered on another market. Defenders of the rule portray it as an essential protection for investors, particularly small investors who find it difficult to monitor their brokers' performance. Opponents argue that its principal effect is anti-competitive; that it protects traditional exchanges -- where brokers and dealers meet face to face on trading floors -- from newer forms of trading based on automatic matching of buy and sell orders. In...

State Unemployment Taxes and SUTA Dumping

This report provides a summary of the State Unemployment Tax Acts (SUTA) Dumping Prevention Act of 2004, P.L. 108-295 . The term "SUTA dumping" refers to a variety of tax planning strategies used by employers to minimize the tax burden of federally mandated state unemployment taxes. The strategies exploit the differences in methods state employ to determine unemployment tax rates among established employers and the method by which states determine the tax rate of new firms and firms that have either created new subsidiaries or have absorbed other firms. SUTA dumping creates tax inequities...

Item Veto: Budgetary Savings

Foreign Assistance to North Korea

Consular Identification Cards: Domestic and Foreign Policy Implications, the Mexican Case, and Related Legislation

The current debate about consular identification cards in the United States has centered around the matrícula consular, the consular identification card issued by Mexican consulates to Mexican citizens in the United States. In May 2003, the Treasury Department issued regulations allowing acceptance of the cards as proof of identity for the purpose of opening a bank account, and the cards are accepted for other purposes as well, including issuance of drivers licenses.

Consular identification cards raise issues for domestic policy and foreign policy. With respect to domestic policy,...

Public Relations and Propaganda: Restrictions on Executive Agency Activities

Controversies recently have arisen over certain executive branch agencies' expenditures of appropriated funds on public relations activities, some of which have been characterized as propagandistic. Generally speaking, there are two legal restrictions on agency public relations activities and propaganda. 5 U.S.C. 3107 prohibits the use of appropriated funds to hire publicity experts. Appropriations law "publicity and propaganda" clauses restrict the use of funds for puffery of an agency, purely partisan communications, and covert propaganda. No federal agency monitors federal public...

Gasoline Excise Tax — Historical Revenues: Fact Sheet

Pakistan's Nuclear Proliferation Activities and the Recommendations of the 9/11 Commission: U.S. Policy Constraints and Options

In calling for a clear, strong, and long-term commitment to the military-dominated government of Pakistan despite serious concerns about that country's nuclear proliferation activities, The 9/11 Commission cast into sharp relief two long-standing dilemmas concerning U.S. policy towards Pakistan and South Asia. First, in an often strained security relationship spanning more than five decades, U.S. and Pakistani national security objectives have seldom been congruent. Pakistan has viewed the alliance primarily in the context of its rivalry with India, whereas American policymakers have...

Should Credit Unions Be Taxed?

DR-CAFTA, Textiles, and Apparel

The Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), signed on August 5, 2004, by the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic is a comprehensive and reciprocal trade agreement that, if ratified by all parties, would govern market access of goods, services trade, investment, government procurement, intellectual property, labor, and the environment. With respect to textiles and apparel, DR-CAFTA is comparatively less restrictive than most other trade agreements and trade preference programs regarding...

Vaccine Policy Issues

This report’s focus is on vaccination, one of the most cost-effective methods available to prevent infectious diseases. Whether a vaccine’s target is naturally occurring or present because of hostile intent, the issues policy makers must deal with include vaccine development, production, availability, safety, effectiveness, and access. Vaccines are biologics: their basic components begin as living material. They introduce bacteria or dead or weakened viruses into a person or animal to stimulate an immune reaction that the body will remember if assaulted by the same pathogen in the future. ...

Points of Order in the Congressional Budget Process

Federal Budget Process Reform: A Brief Overview

Bankruptcy Reform: The Means Test

Legislative Vetoes After Chadha

In INS v. Chadha, 462 U.S. 919 (1983), the Supreme Court struck down Congress's use of the "legislative veto," a device used for half a century to control certain activities in the executive branch. Congress had delegated power to executive officials on the condition that Congress could control their decisions without having to pass another law. These legislative controls, short of a public law, included one-house vetoes, two-house vetoes, and committee vetoes. Congress no longer relies on one-house or two-house vetoes, but committee and subcommittee vetoes continue to be a part of...

House Committee Funding Legislation, 109th Congress

Federal Excise Taxes on Tobacco Products: Rates and Revenues

This report examines increases in excise tax rates on tobacco products contained in the Balanced Budget Act of 1997 (P.L. 105-33). Under that act, the increased rates on tobacco products became effective in two stages. The first scheduled increase in rates occurred on January 1, 2000, while the second increase in rates occurred two years later on January 1, 2002

Detention of U.S. Citizens

In 1971, Congress passed legislation to repeal the Emergency Detention Act of 1950 and to enact the following language: “No citizen shall be imprisoned or otherwise detained by the United States except pursuant to an Act of Congress.” The new language, codified at 18 U.S.C. §4001(a), is called the Non-Detention Act. This statutory provision received attention after the 9/11 terrorist attacks when the Administration designated certain U.S. citizens as “enemy combatants” and claimed the right to detain them indefinitely without charging them, bringing them to trial, or giving them access to...

Affiliates in Banking, Finance, and Commerce: Development and Regulatory Background

The proliferation of corporate affiliates in banking, finance, and commerce has figured in discussion of several policy issues, including how to protect against (1) losses incurred by affiliated companies; (2) anticompetitive “tying” of bank and nonbank financial services; and (3) misuse of financial data of consumers. This report outlines the nature and evolution of affiliates, primarily from a regulatory perspective. It provides background for discussing financial issues involving corporate affiliates.

Discretionary Spending: Prospects and History

Federal spending has changed, both in size and composition over the last 40 years. Total federal spending is now a larger percentage of the economy (as measured by gross domestic product — GDP) than it was in 1965 (19.8% of GDP vs 17.2% of GDP). Mandatory spending (generally spending that result from laws other than appropriations acts, such as Social Security and Medicare), has grown substantially, both as a percentage of GDP and as a percentage of total spending to become, today, the largest component of federal spending. Mandatory spending, without significant changes to the programs...

House Select Committee on Intelligence: Leadership and Assignment Limitations

Both House rules and respective party rules address committee assignments and leadership selection. Several of those rules apply specifically to select committees, and in some cases, are unique to the Permanent Select Committee on Intelligence. This report identifies House rules, Republican Conference rules, and Democratic Caucus rules that affect the makeup of the Permanent Select Committee on Intelligence. It will be updated if events warrant.

Youth: From Classroom to Workplace?

The Sale of a Principal Residence Acquired Through a Like-Kind Exchange

When business or investment property is exchanged for property of a “like kind,” (often referred to as a 1031 exchange) no gain or loss is recognized on the exchange, and therefore, no tax is paid at the time of the exchange on any appreciation in the value of the property . This report discusses the like-kind exclusion, which is sometimes combined with the exclusion of tax on the gain from the sale of a principal residence. In effect, this combination can allow taxpayers to avoid paying tax on the gain from the sale of their investment property.

The Canadian Hog Trade Dispute

“Entrenchment” of Senate Procedure and the “Nuclear Option” for Change: Possible Proceedings and Their Implications

Senate procedure permits most matters to be decided by a simple majority of Senators voting (with a quorum present). Yet Senate procedure generally lacks means for a simple majority to limit consideration and proceed to a vote. As a result, Senate minorities can attempt to block proposals by preventing a vote from occurring, a practice known as filibustering. Filibuster opponents have long sought to institute rules permitting a voting majority to limit consideration, most recently, in relation to judicial nominations. The Senate has seldom been able to adopt such limits, however, because...

Flat Tax Proposals and Fundamental Tax Reform: An Overview

Floor Procedure in the House of Representatives: A Brief Overview

The House considers bills and resolutions on the floor under several different sets of procedures governing the time for debate and the opportunities for amendment. Some procedures allow 40 or 60 minutes for debate; others permit debate to continue until a majority of Members vote to end it. Some procedures prohibit most or all floor amendments; others allow Members to offer any amendments that meet the requirements

of the House’s rules and precedents. Notwithstanding these differences, the rules, precedents, and practices of the House generally are designed to permit the majority to work...

Floor Procedure in the House of Representatives: A Brief Overview

The Postal Revenue Forgone Appropriation: Overview and Current Issues

Social Security: Proposed Changes to the Earnings Test

Appropriations for FY2005: Interior and Related Agencies

The Interior and related agencies appropriations bill includes funds for the Department of the Interior (DOI), except for the Bureau of Reclamation, and for some agencies or programs within three other departments—Agriculture, Energy, and Health and Human Services. It also funds numerous related agencies. H.R. 4568, the Interior and Related Agencies Appropriations bill for FY2005, was passed by the House (334-86) on June 17, 2004. The bill contained $20.03 billion. The Senate companion bill, S. 2804, was reported by the Senate Committee on Appropriations (S.Rept. 108-341) on September 14,...

Cloture: Its Effect on Senate Proceedings

Cloture is the only means by which the Senate can vote to limit debate on a matter, and thereby overcome a possible filibuster. Until 1949, cloture could not be invoked on nominations, and before 1980 this action was attempted only twice. From 1949 through 2002, cloture was sought on 35 nominations, and invoked on 21.

The Federal Budget Deficit: A Discussion of Recent Trends

An Analysis of the Administration's Deficit Reduction Goal

This report briefly discusses the Bush Administration's proposal to reduce the deficit between FY2004 and FY2009. It discusses the provisions of the FY2006 budget proposal in respect to the Administration's deficit reduction goal. CRS has constructed a modified baseline budget which, arguably, provides a “best guess” of the path of future deficits if current policy is extended. Under this alternative, the deficit is projected to rise to $425 billion in FY2009.

Congressional Official Mail Costs

This report discusses the franking privilege , which allows Members of Congress to send official mail at government expense, such as letters commenting on legislation and casework, press releases, government reports, town meeting notices, and newsletters.

Federal Medical Assistance Percentage (FMAP) for Medicaid

Financial Privacy Laws Affecting Sharing of Customer Information Among Affiliated Institutions

The privacy provisions of the Gramm-Leach-Bliley Act of 1999 ( P.L. 106-102 ) do not permit customers to preclude financial institutions from sharing nonpublic personal information with affiliated companies; they merely require companies to notify their customers of their practices of information sharing with affiliates. Until the Fair Credit Reporting Act (FCRA) was amended in 1996, sharing of such information with affiliates might have subjected a company to being regulated as a credit reporting agency. Under provisions added in 1996, 15 U.S.C. Sections 1681a(d)(2)(A)(ii) and (iii),...

Debt-Limit Legislation in the Congressional Budget Process

The gross federal debt consists of the debt held by the public plus the debt held by government accounts. Almost all of the gross federal debt is subject to a public debt limit, as set forth in statute (31 U.S.C. 3101).This report considers legislation needed to change the public debt limit.

House Rules Changes Affecting Floor Procedures in the 109th Congress

On the first day of the 109th Congress, the House agreed to H.Res. 5 , which made several rules changes affecting floor proceedings. These modifications include allowing committees to adopt rules giving chairs the general authority to make the motion necessary to send a measure to conference; adding Wednesdays to the permissible days on which suspension motions may be entertained; eliminating the Corrections Calendar; amending the rules of decorum and debate regarding references to the Senate and its members; and granting the Speaker added authority to postpone votes on certain questions....

Insurance Regulation: History, Background, and Recent Congressional Oversight

This report provides the historical background for examining the arguments in this debate. It shows that state regulation of insurance is largely a historical artifact, that Congress has become increasingly involved in both regulating insurance and overseeing states' regulation of insurance, and that the National Association of Insurance Commissioners has assumed a national role.

The Director of National Intelligence and Intelligence Analysis

The 9/11 Commission made a number of recommendations to improve the quality of intelligence analysis. A key recommendation was the establishment of a Director of National Intelligence (DNI) position to manage the national intelligence effort and serve as the principal intelligence adviser to the President -- along with a separate director of the Central Intelligence Agency. Subsequently, the Intelligence Reform and Terrorism Prevention Act of 2004, P.L. 108-458 , made the DNI the principal adviser to the President on intelligence and made the DNI responsible for...

Invoking Cloture in the Senate

This report discuses cloture, which is is the only procedure by which the Senate can vote to set an end to a debate without also rejecting the bill, amendment, conference report, motion, or other matter it has been debating. A Senator can make a nondebatable motion to table an amendment, and if a majority of the Senate votes for that motion, the effect is to reject the amendment. Thus, the motion to table cannot be used to conclude a debate when Senators still wish to speak and to enable the Senate to vote for the proposal it is considering. Only the cloture provisions of Rule XXII...

The Fair Labor Standards Act: Minimum Wage in the 108th Congress

Federal Regulatory Reform: An Overview

Asbestos: Federal Regulation of Uses

Computer Services Personnel: Overtime Pay Under the Fair Labor Standards Act

The Fair Labor Standards Act of 1938 (FLSA), as amended, is the primary federal statute in the area of minimum wages and overtime pay. Through administrative rulemaking, the Secretary of Labor has established two tests through which to define eligibility under the Section 13(a)(1) exemption: a duties test and an earnings test. In the 106th Congress, legislation was introduced by Representatives Andrews and Lazio that would have increased the scope of the exemption: first, by expanding the range of exempt job titles, and then, through a relative reduction in the value of the earnings...

Internet Taxation: Issues and Legislation

The Internet Tax Freedom Act (ITFA) placed a three-year moratorium on the ability of state and local governments to (1) impose new taxes on Internet access or (2) impose any multiple or discriminatory taxes on electronic commerce. The act grandfathered the state and local access taxes that were “... generally imposed and actually enforced prior to October 1, 1998 ....” This report discusses issues of state and local taxation of Internet transactions because commerce conducted by parties in different states over the Internet.

Mutual Fund Reform Bills in the 108th Congress: A Side-by-Side Comparison

This report compares the provisions of these legislative proposals. It serves as an historical record of legislative activity in the 108th Congress.

Executive Branch Continuity of Operations (COOP): An Overview

Federal Recess Judges

This report discusses the recess clause and takes a look at the history of recess appointments. Under Article II of the Constitution, the President is empowered "to fill up all Vacancies that may happen during the Recess of the Senate, by granting Commissions which shall expire at the End of their next Session." Presidents have used the recess appointment power on more than 300 occasions to place judges on the district, appellate, and U.S. Supreme Court level. This practice slowed after the 1950s, but recent recess appointments to federal appellate courts (the Fourth, Fifth, and Eleventh...

Federal Research and Development Funding: FY2005

This report discusses federal research and development (R&D) funding for FY2005. The Bush Administration requested $131.9 billion in R&D funding for FY2005. This was $5.9 billion above the estimated $126 billion that was appropriated for federal R&D in FY2004.

Suspension of the Rules in the House of Representatives

Suspension of the rules is a procedure the House of Representatives uses frequently to debate and pass measures on the floor. After a Representative moves to suspend the rules and pass a particular measure, there can be 40 minutes of debate on the motion and the measure. No floor amendments to the measure are in order. However, the Member who offers the suspension motion may include amendments to the measure as part of the motion. In this case, the Member moves to suspend the rules and pass the bill or resolution as amended. At the end of the debate, the House casts a single vote on...

Continuity of Operations (COOP) in the Executive Branch: Issues in the 109th Congress

Spurred in part by occasional warnings of potential terrorist threats in the post- 9/11 era, some policymakers have intensified their focus on continuity of operations (COOP) issues. COOP planning is a segment of federal government contingency planning linked to continuity of government (COG). Together, COOP and COG are designed to ensure survival of a constitutional form of government and the continuity of essential federal functions. This report focuses primarily on executive branch COOP activities.

Comparison of Tax Incentives of Domestic Manufacturing: 108th Congress

The enacted provision of this legislation (H.R. 4520), following the passage of the Senate’s version (then S. 1637) and the House bill (H.R. 4520) followed the Senate version, which allowed a deduction and would cover unincorporated firms as well as corporations. However, the proposal contained the broader definition of manufacturing in the House bill which included oil and gas extraction, utilities, construction, and electricity. This report discusses the provisions in these two versions of the subsidy as well as some of the issues surrounding alternative methods of providing a...

Housing Issues in the 108th Congress

Multilateral Development Banks: Procedures for U.S. Participation

The Adverse Effect Wage Rate (AEWR)

Credit Scores: Credit-Based Insurance Scores

An insurance score, a type of credit score, is a number produced by a computer scoring model that analyzes a person's credit information (i.e., payment history, collections, balances, and bankruptcies) obtained principally from that person's credit reports. Increasingly, insurers have been using insurance scores as an underwriting factor to evaluate insurance applications, especially for automobile and homeowners insurance, in predicting possible future insurance claims an applicant might generate. Insurers maintain that there is a clear statistical connection between a person's insurance...

Appropriations for FY2005: Commerce, Justice, State, the Judiciary, and Related Agencies

This report monitors actions taken by the 108th Congress on FY2005 appropriations for the Departments of Commerce, Justice, and State, the judiciary and related agencies (often referred to as the CJS appropriations). The Administration requested $43.216 billion for CJS appropriations in its FY2005 budget request sent to Congress on February 2, 2004. In the spring of 2004, the House and Senate Appropriations Committees held hearings on these requests. The House Appropriations Committee reported out its unnumbered bill on June 23, 2004, recommending a total of $43.483 billion for CJS in...

Foreign Intelligence Surveillance Act: Selected Legislation from the 108th Congress

The Foreign Intelligence Surveillance Act, 50 U.S.C. Section 1801 et seq. , (FISA) as passed in 1978, provided a statutory framework for the use of electronic surveillance in the context of foreign intelligence gathering. In so doing, Congress sought to strike a delicate balance between national security interests and personal privacy rights. Subsequent legislation expanded federal laws dealing with foreign intelligence gathering to address physical searches, pen registers and trap and trace devices, and access to certain business records. The Uniting and Strengthening America...

Salaries of Federal Officials: A Fact Sheet

Calendars of the House of Representatives

In the House of Representatives, the term “calendar” has two related meanings. This fact sheet, one of a series of fact sheets on legislative process, explains calendars and their use in the House of Representatives.

Information Sharing for Homeland Security: A Brief Overview

Suspension of Rules in the House: Measure Sponsorship by Party

From the 100th through the 105th Congresses (1987-1998), the House of Representatives acted on measures through a motion to suspend the rules an average of 549 times per Congress. Measures so acted on were sponsored by Members of the minority party, on average, 17.3% of the time (15.9% if sponsors of House measures only are counted). Figures for the 106th through the 108th Congresses, are significantly above these averages.

Committee System Rules Changes in the House, 109th Congress

This fact sheet details changes in the committee system contained in H.Res. 5 , the rules of the House for the 109th Congress, agreed to by the House January 4, 2005, and the Speaker’s announced policies. The fact sheet will not be updated unless further rules changes for the 109th Congress are adopted.

The Senate's Executive Calendar

The Senate's Calendar of Business

This report provides a summary of the contents of the Senate's Calendar of Business, which lists bills, resolutions, and other items of legislative business that are eligible for floor consideration.

"Dear Colleague" Letters: A Brief Overview

“Dear Colleague” letters are official correspondence distributed in bulk to Members in both chambers. Primarily, they are used by one or more Members to persuade others to cosponsor or oppose a bill (generally, prior to introduction). Dear Colleague letters might also inform Members of an event connected with congressional business, of new or modified House procedures, or of some other matter. The use of the phrase “‘Dear Colleague’ letter” to refer to a widely distributed letter among Members dates at least to the start of the 20th century. New technologies and expanded use of the...

Bank and Thrift Deposit Insurance Premiums: The Record from 1934-2004

Since federal deposit insurance first came into being in the mid-1930s, commercial banks and savings associations (thrifts) have paid premiums into government insurance reserves to cover losses due to financial institution failures. Banks and thrifts have come to offer similar services and the government has standardized insurance premiums for the two institutions to reflect their competition. Deposit insurance premiums have been the subject of legislation several times over recent years including measures passed by the House. Most banks and thrifts pay essentially no premiums, but the...

Appropriations for FY2005: VA, HUD, and Independent Agencies

Germany's Role in Fighting Terrorism: Implications for U.S. Policy

This report examines Germany's response to global Islamic terrorism after the September 11, 2001 attacks in the United States. It looks at current German strategy, domestic efforts, and international responses, including possible gaps and weaknesses. It examines the state of U.S.-German cooperation, including problems and prospects for future cooperation. This report may be updated as needed. Although somewhat overshadowed in the public view by the strong and vocal disagreements over Iraq policy, U.S.-German cooperation in the global fight against international terrorism has been...

Congressional Budget Actions in 2004

During the second session of the 108th Congress, the House and Senate considered many different budgetary measures. Most of them pertained to FY2005 (referred to as the “budget year”) and beyond. In addition, some made adjustments to the budget for FY2004 (referred to as the “current year”). This report describes House and Senate action on major budgetary legislation within the framework of the congressional budget process and other procedural requirements.

Barriers to Corporate Fraud: How They Work, Why They Fail

The collapse of Enron Corp. in the fall of 2001 had a peculiar side effect: accounting became front page news. For the next year, accounting fraud at a long series of Fortune 500 companies made headlines. The worst cases led to spectacular bankruptcies, mass layoffs, and criminal prosecutions. Many other companies remained intact, but paid millions of dollars to settle charges that their books did not correspond to financial reality.

The economic costs of the corporate scandals were substantial: trillions of dollars in shareholder wealth lost and a climate of uncertainty that may have...

Foreign Affairs, Defense, and Trade: Key Issues for the 109th Congress

The 109th Congress will likely address a number of pressing foreign affairs, defense and trade issues. This report identifies the issues most likely to be taken up in the first session, and provides information and analysis to support Congress in shaping U.S. policy on these key issues. The report also provides lists of selected CRS products that provide more detailed analysis. Since the terrorist attacks of September 11, 2001, Congress has increasingly been confronted with issues relating to the war on terrorism and homeland security. Congress will likely be particularly interested in...

Secrecy Versus Openness: New Proposed Arrangements for Balancing Competing Needs

During the latter half of 2004, disputes arose over whether or not to declassify portions of the sensitive content of reports resulting from congressional investigations and national commission inquiries into the terrorist attacks of September 11, 2001, the war in Iraq, and related matters. As a result, some called for Congress to create a special mechanism for the impartial and expeditious resolution of such disputes (S. 2672/H.R. 4855; S. 2845 amendment). This report discusses the culmination of one such effort at balancing legitimate competing needs for secrecy and openness.

Casework in a Congressional Office

9/11 Commission Recommendations: A Civil Liberties Oversight Board

This report discusses the recommendation made by the National Commission on Terrorist Attacks Upon the United States (9/11 Commission) regarding the creation of a board within the executive branch to oversee adherence to guidelines on, and the commitment to defend, civil liberties by the federal government.

Appropriations for FY2005: Transportation, Treasury, and Independent Agencies

The FY2005 Transportation, Treasury and Independent Agencies appropriations bill was passed as Division H of P.L. 108-447 , an omnibus appropriations bill, and was signed into law on December 8, 2004. The bill provides $90.6 billion for Transportation, Treasury, and Independent Agencies. However, the bill also includes an across-the-board rescission of 0.80%, which will reduce the Transportation, Treasury, and Independent Agencies funding by approximately $725 million. This will make the final figure $89.9 billion, slightly less than FY2004’s $90.3 billion but more than...

The Gender Wage Gap and Pay Equity: Is Comparable Worth the Next Step?

This report examines the trend in the male-female wage gap and the explanations offered for its existence. Remedies proposed for the gender wage gap's amelioration are addressed, with an in-depth focus on the comparable worth approach to achieving "pay equity" or "fair pay" between women and men.

Latin America and the Caribbean: Issues for the 108th Congress

The Latin American and Caribbean region has made enormous strides over the past two decades in political development, with all countries but Cuba having regular free and fair elections for head of state. But several nations have faced considerable challenges that have threatened political stability, including economic decline and rising poverty, violent guerrilla conflicts, drug trafficking, and increasing crime. Bush Administration officials maintain that U.S. policy toward Latin America has three overarching goals: strengthening security; promoting democracy and good governance;...

Congressional Budget Actions in 2003

Can the Pension Benefit Guaranty Corporation Be Restored to Financial Health?

In 2003, the Bush administration made a proposal for reform to strengthen pension plan funding and the financial condition of the Pension Benefit Guaranty Corporation (PBGC). Various bills with the goal of reforming the PBGC were proposed in the 108th Congress but none were enacted into law. The doubling of the PBGC deficit from fiscal 2003 to fiscal 2004, has heightened awareness about the PBGC deficit situation. Congressional leaders from both parties have announced their intention to move aggressively on legislative solutions in the 109th Congress.

Campaign Finance Legislation in the 108th Congress

During the 108th Congress, 30 bills were introduced to change the nation's campaign finance laws (primarily under Titles 2 and 26 of the U.S. Code). These bills -- 21 in the House and nine in the Senate -- seek to make improvements in the current system, including to tighten perceived loopholes. In the wake of enactment of the Bipartisan Campaign Reform Act of 2002 ( P.L. 107-155 ), there has been decidedly less legislative activity in this area than in recent Congresses, which typically saw well over 100 campaign finance-related bills introduced.

Can Public Policy Raise the Saving Rate?

Appropriations for FY2005: Legislative Branch

Congress agreed to a 1.2% increase in its budget authority for FY2005, appropriating $3.57 million, subject to a 0.80% rescission. Although legislative branch agencies requested an overall 12.5% increase, the chairmen and some members of the House and Senate Subcommittees on Legislative Branch indicated early in budget discussions the probability of a fairly flat FY2005 budget. Subsequently, during markup the House and Senate Committees on Appropriations approved a freeze on FY2005 legislative branch budget authority. The House bill ( H.R. 4755 ) contained a -0.1% change from FY2004,...

Appropriations for FY2005: U.S. Department of Agriculture and Related Agencies

On November 20, 2004, the House and Senate approved the conference agreement on the FY2005 Consolidated Appropriations Act ( H.R. 4818 , H.Rept. 108-792 ), which combined nine annual appropriations bills into one measure. The President signed H.R. 4818 into law ( P.L. 108-447 ) on December 8, 2004. Division A of the act provides the U.S. Department of Agriculture and Related Agencies with $85.28 billion in budget authority for FY2005, which is $1.3 billion below FY2004 and $2.0-$2.3 billion above the FY2005 House-passed ( H.R. 4766 ) and Senate-reported ( S. 2803 ) bills, and the...

Executive Branch Reorganization and Management Initiatives

The Congressional Appropriations Process: An Introduction

This report describes the annual appropriations cycle from the President’s submission of his annual budget through enactment of the appropriations measures. It describes the three types of appropriations measures—regular appropriations bills, continuing resolutions, and supplemental bills. It explains the spending ceilings for appropriations bills that are associated with the budget resolution and the sequestration process, including a description of the mechanisms used to enforce the ceilings. It also explains the authorization appropriations process, which prohibits certain provisions in...

Major Tax Issues in the 108th Congress

This report provides an overview of major tax issues. It begins by describing three aspects of the economic context in which the tax policy debate during 2004 is likely to occur: the general state of the U.S. economy; the position of the federal budget; and the level of taxes in the United States.

A Presidential Item Veto

During a news conference on November 4, 2004, President George W. Bush stated that he “would like to see the President have a line-item veto again, one that passed constitutional muster. I think it would help the executive branch work with the legislative branch to make sure that we’re able to maintain budget discipline.” The

Supreme Court struck down an earlier version of item-veto authority (the Line Item Veto Act of 1996) in Clinton v. City of New York, 524 U.S. 417 (1998), but several statutory alternatives are available. Options to the Line Item Veto Act have been proposed over the...

Transaction Tax: General Overview

Dumping of Exports and Antidumping Duties: Implications for the U.S. Economy

Dumping in the United States is the selling of a product by a foreign producer at a price that is below the product’s sale price in the country of origin, or at a price that is lower than the cost of production. Under U.S. law such an action is considered an unfair trade practice. If that action is found to cause “material injury” to a competing domestic industry, an antidumping duty equal to the “dumping margin” will be levied against the foreign good.

Metropolitan Area Designations by OMB: History, Current Definitions, and Uses

On December 27, 2000, the Office of Management and Budget (OMB) announced its uniform criteria, or "standards," for defining metropolitan and micropolitan statistical areas in the current decade. These areas together are termed "core based statistical areas" (CBSAs). Also announced were the standards for defining New England city and town areas (NECTAs), which are conceptually similar to CBSAs. The 2000 standards superseded those for defining metropolitan statistical areas in the 1990s. CBSAs consist of counties and county-equivalents in the United States and Puerto Rico. Each CBSA must...

Appropriations for FY2005: Military Construction

The military construction (MilCon) appropriations bill provides funding for (1) military construction projects in the United States and overseas; (2) military family housing operations and construction; (3) U.S. contributions to the NATO Security Investment Program; and (4) the bulk of base realignment and closure (BRAC)costs. The President forwarded his FY2005 budget request of $9.6 billion to the Congress on February 2, 2004. Military construction subcommittees held hearings between February 25 and June 22, 2004. The House Appropriations Committee its bill ( H.R. 4837 ) on July 15,...

Homeland Security Financial Accountability Act: History and Recent Developments

Prior to the enactment of the Department of Homeland Security (DHS) Financial Accountability Act ( P.L. 108-330 ), the DHS was the only federal cabinet department not included under the Chief Financial Officers (CFO) Act of 1990. DHS had a CFO, but the position was not subject to Senate confirmation. In the 108th Congress, S. 1567 , to bring DHS under the CFO Act, passed the Senate on November 21, 2003, and a related bill, H.R. 4259 , was approved by the House on July 20, 2004. Supporters of the DHS Financial Accountability Act contended that the CFO Act and related laws should apply...

Tobacco Quota Buyout Proposals in the 108th Congress

On October 22, 2004, the tobacco quota buyout was signed into law. Title VI of P.L. 108-357 is known as the Fair and Equitable Tobacco Reform Act of 2004. This legislation eliminated the tobacco quota program and compensated active producers and absentee quota owners for the lost value. The concept of a quota buyout was not new, but it gained political momentum after being endorsed in the final report of a presidential commission on tobacco, Tobacco at a Crossroads, A Call for Action (May 14, 2001), and by the leading U.S. cigarette manufacturer, Philip Morris. Several quota bills...

Electronic Banking: The Implementation of the Check 21 Act

On October 28, 2003, President Bush signed the Check Clearing for the 21st Century Act into law ( P.L. 108-100 , "Check 21 Act") to become effective on October 28, 2004. In the Check 21 Act, Congress gave the Board of Governors of the Federal Reserve System (Fed) the responsibility to prescribe regulations necessary to implement the provisions of the act. On July 26, 2004, the Fed published its final regulations for the Check 21 Act. The purpose of the act is to allow banks to take advantage of the potential cost savings of processing checks electronically. The final regulations facilitate...

Medicaid Reimbursement Policy

This report begins with a summary of basic federal requirements applicable to payments for all services and an overview of major developments in federal Medicaid reimbursement policy over the last 20 years. This overview provides a historical context for current policies and highlights some issues that have been perennial concerns for federal and state policymakers. The next four sections of the report provide a detailed discussion of Medicaid reimbursement for four basic categories of services or providers.

The Budget for Fiscal Year 2004

Safeguarding Federal Elections from Possible Terrorist Attack: Issues and Options for Congress

Concerns have arisen that terrorist attacks near the November 2, 2004 federal election might be launched to disrupt voting and affect the outcome. As a result, questions have arisen about what might be done both to prevent such attacks and to respond to any that occur. Deliberations have centered largely around two questions: If a terrorist attack occurs, should the election be postponed, in whole or in part, and if so, by whom and under what authority? What steps should and are being taken to enhance security for the election? Questions about election postponement include who has the...

Membership of the 108th Congress: A Profile

H.R. 10 (9/11 Recommendations Implementation Act) and S. 2845 (National Intelligence Reform Act of 2004): A Comparative Analysis

This comparative analysis of H.R. 10 (9/11 Recommendations Implementation Act) and S. 2845 (National Intelligence Reform Act of 2004) is an assessment of major similarities and differences between the two bills as passed by the House (October 8, 2004) and Senate (October 6, 2004) and under conference consideration.

References to the two bills are to engrossed versions. The presentation is organized to follow the basic construct of the House bill, because its coverage remained more stable through the legislative process to date. For purposes of clarity, we refer to the House-passed bill as...

9/11 Commission Recommendations: Joint Committee on Atomic Energy -- A Model for Congressional Oversight?

In its July 22, 2004, final report, the National Commission on Terrorist Attacks Upon the United States (also known as the "9/11 Commission") proposed a five-part plan to build unity of effort across the U.S. government in fighting terrorism. The commission's report includes specific recommendations for "centralizing and strengthening congressional oversight of intelligence and homeland security issues" including a recommendation that Congress consider creating a joint committee for intelligence, using the Joint Atomic Energy Committee as its model. Created in the wake of the explosion of...

Military Base Closures: A Historical Review from 1988 to 1995

The United States has experienced difficulty in closing military bases to match the requirements of downsized forces with changed composition. During the decade of the 1980s, major military base closures were seriously hampered by procedural requirements established by Congress, to the point that none occurred. The mismatch between real estate assets and defense requirements grew with the military downsizing that began late in the Reagan Administration and continued under Presidents George H. W. Bush and Clinton. After several legislative efforts to break the deadlock had failed,...

Senate Select Committee on Intelligence: Term Limits and Assignment Limitations

The 2005 Intelligence Authorization bill ( S. 2386 ) as reported by the Senate Intelligence Committee contains a provision repealing term limits for committee members. (1) The 9/11 Commission Report recommended that the eight-year term limit for members serving on the Intelligence Committee be abolished. S.Res. 445 , introduced by Rules and Administration Committee Chairman Trent Lott on October 1, 2004, reported from that committee by a vote of 12-0 on October 5, 2004, and agreed to October 9, by a vote of 79-6, eliminated term limits for Intelligence Committee members. The 9/11...

General Management Laws and the 9/11 Commission's Proposed Office of National Intelligence Director (NID) and National Counterterrorism Center (NCTC)

To improve the organization and capabilities of the U.S. intelligence community, the National Commission on Terrorist Attacks Upon the United States (9/11 Commission) recommended, among other things, that two entities be established -- a National Intelligence Director (NID) and a National Counterterrorism Center (NCTC). The commission said that the NID should be located within the Executive Office of the President (EOP), and said the NCTC should report to the NID. Legislation designed to create these entities would place them either within the EOP (e.g., H.R. 5024 and H.R. 5050 ) or...

Washington Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Washington.

Vermont Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Vermont.

Shutdown of the Federal Government: Causes, Effects, and Process

This report provides a brief overview of the causes and effects of federal government shutdowns. This report provides a brief overview of the causes and effects of federal government shutdowns. When federal agencies and programs lack appropriated funding, they must cease operations, except in emergency situations. The failure of the President and Congress to reach agreement on funding measures has caused government shutdowns. It is necessary either to enact temporary funding legislation at the close of the fiscal year or to shut down the activities that are not funded at that time.

Fishery, Aquaculture, and Marine Mammal Online News and Information Sources

A variety of free online sources can be used by Members of Congress and staff seeking current and breaking news on fisheries, aquaculture, and marine mammals. Services identified include newswires and news services, press release services, regional and topical newsletters, topical discussion groups, comprehensive resource archives, professional organizations, trade and interest organizations, government agencies and international commissions, and issue-specific sites. This summary does not attempt a complete listing of available online sources, but offers a selection of frequently used...

Accounting Reform After Enron: Issues in the 108th Congress

Salaries of Members of Congress: Current Procedures and Recent Adjustments

West Virginia Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of West Virginia.

Puerto Rico Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on Puerto Rico.

Maryland Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Maryland.

Maine Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Maine.

Wyoming Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Wyoming.

Productivity and Wages

Privacy: Key Recommendations of the 9/11 Commission

Several of the recommendations made to protect against and prepare for terrorist attacks in the final report of the National Commission on Terrorist Attacks Upon the United States (9/11 Commission) focus on the protection of civil liberties. This report examines these recommendations, and those of other recent commissions. It will not be updated.

International Remittances: A Primer

Electronic Voting Systems (DREs): Legislation in the 108th Congress

Several bills have been introduced in the 108th Congress to address issues that have been raised about the security of direct recording electronic (DRE) voting machines. Touchscreen and other DREs using computer-style displays are arguably the most versatile and voter-friendly of any current voting system. The popularity of DREs, particularly the touchscreen variety, has grown in recent years. In addition, the Help America Vote Act of 2002 (HAVA, P.L. 107 -- 252), while not requiring or prohibiting the use of any specific kind of voting system, does promote the use of DREs through some of...

Combating Terrorism: Possible Lessons for U.S. Policy from Foreign Experiences, Summary of the Major Points of a Seminar

Participants in a CRS seminar on the possible lessons to be learned from other countries' experiences in dealing with terrorism, generally agreed on three things. First, terrorism is a used by a wide variety of groups for a wide variety of ends. Second, the current threat that the United States faces from Islamist terrorism is most likely long-term. And third, policymakers must think through anti-terrorist actions in order to avoid consequences that may be worse than the original problem. Much of the seminar discussion focused on matters that two and a half years later became the subject...

House Select Committee on Homeland Security: Possible Questions Raised If the Panel Were to Be Reconstituted as a Standing Committee

On January 7, 2003, the House created a Select Committee on Homeland Security with legislative and oversight jurisdiction over the Department of Homeland Security. The Select Committee is also charged with reviewing the rules of the House, including Rule X, as they relate to homeland security, and to report to the Committee on Rules any recommendations by September 30, 2004. The 9/11 Commission has recommended that Congress create a "permanent standing committee" in each chamber to serve as a "single, principal point of oversight and review for homeland security." This report poses a...

Athens Olympics 2004: U.S. Government Involvement in Security Preparations

The Athens Olympics 2004 are the first Summer Games to be held since the terrorist attacks of September 11, 2001. The Salt Lake City Winter Olympics were held in February 2002, but the Winter Games involve far fewer people than the Summer Games. For example, 2,399 athletes competed in 2002; 10,500 athletes are expected to compete at the Athens Games, August 13-29, 2004. The Greek government expects 2 million visitors, 21,500 journalists, 5,500 team officials, and 8,000 members of the Olympic family. To help safeguard the Olympics, Greece reportedly has spent $1.2 billion on security, and...

Africa: Development Issues and Policy Options

Sub-Saharan Africa has been a focus for U.S. development assistance for decades. Many believe that U.S. interests in the region are increasing, partly because of its oil resources and the international terrorist threat. However, at the beginning of the twenty-first century, Africa faces grave challenges that potentially threaten long-term stability, including the world's most serious HIV/AIDS pandemic, widespread rural poverty, and high levels of urban unemployment. In constant dollar terms, incomes in Africa are only about $100 higher than in 1960. Recently, gross domestic product (GDP)...

Below-Cost Timber Sales: An Overview

The USDA Forest Service (FS) sells some timber at prices that are less than the agency expenses to administer the timber program. These below-cost timber sales have been debated by Congress sporadically for more than two decades, but no policy to address the issue has been adopted legislatively or administratively. Part of the debate over below-cost timber sales has been about their relative frequency. At the direction of Congress, the FS developed a system for reporting the financial and economic results of timber sales. Data were reported annually for each national forest, beginning...

The 2003 Tax Cut: Proposals and Issues

This report provides a brief description of each tax cut proposal, including major proposals offered by the Democrats in both the House and the Senate during 2003. It discusses the distributional affects of the proposals and potential effects on short and long term economic growth.

Location of Federal Government Offices

Anti-Corruption Standards of the International Financial Institutions

The international financial institutions (IFIs) all have procedures to prevent, identify, and punish corruption within their organizations. The World Bank appears to have the most extensive and detailed process for addressing corruption issues, but the other multilateral development banks (MDBs) have or are establishing similar procedures. The International Monetary Fund (IMF) does not make loans for specific projects; all its loans go directly to the central bank or finance ministry of the borrower country. Nevertheless, it also has procedures for preventing, investigating, and punishing...

U.S. Virgin Islands Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the U.S. Virgin Islands.

Wisconsin Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Wisconsin.

Federal Workforce Flexibility Act of 2003: S. 129 (108th Congress)

As in the previous Congress, management of the federal workforce continues to be an issue of interest to the Senate and the House of Representatives in the 108th Congress. S. 129 , the Federal Workforce Flexibility Act of 2003, passed the Senate with an amendment by unanimous consent on April 8, 2004. In the House, the Subcommittee on Civil Service and Agency Organization forwarded S. 129 to the House Committee on Government Reform on May 18, 2004, after amending it by voice vote. On June 24, 2004, the House committee ordered the bill to be reported to the House of Representatives, after...

Federal Workforce Flexibilities: A Side-by-Side Comparison of S. 129 (108th Congress) with Current Law

A bill related to the management of the federal workforce is being considered by the 108th Congress. S. 129 , the Federal Workforce Flexibility Act of 2003, passed the Senate with an amendment by unanimous consent on April 8, 2004. In the House, the Subcommittee on Civil Service and Agency Organization forwarded S. 129 to the House Committee on Government Reform on May 18, 2004, after amending it by voice vote. On June 24, 2004, the House committee ordered the bill to be reported to the House of Representatives, after amending it, by voice vote. The bill was introduced by Senator George...

Salaries of Federal Officials: A Fact Sheet

Rhode Island Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Rhode Island.

South Dakota Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of South Dakota.

South Carolina Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of South Carolina.

The U.S.-Singapore Free Trade Agreement

On September 4, 2003, President Bush signed the U.S.-Singapore Free Trade Agreement ( P.L. 108-78 ) into law in a White House ceremony. The agreement went into effect on January 1, 2004. In late July 2003, the United States-Singapore Free Trade Agreement Implementation Act had passed the House by a vote of 272-155 and the Senate by a vote of 66-32. The Free Trade Agreement (FTA) will, with a phase-in period, eliminate tariffs on all goods traded between them, cover trade in services, and protect intellectual property rights. In July 2003, the House Ways and Means Committee, Senate Finance...

Appropriations for FY2004: Interior and Related Agencies

The Interior and related agencies appropriations bill includes funds for the Department of the Interior (DOI), except for the Bureau of Reclamation, and for some agencies or programs within three other departments -- Agriculture, Energy, and Health and Human Services. It also funds numerous smaller related agencies. President Bush's FY2004 budget for Interior and related agencies totaled $19.89 billion, $220.5 million (1%) less than enacted for FY2003 ($20.11 billion). On July 17, 2003, the House passed H.R. 2691 (268-152) containing a total of $19.60 billion for Interior and...

Sensitive Security Information and Transportation Security: Issues and Congressional Options

As a result of the terrorist attacks of September 11, 2001, Congress passed legislation creating the Transportation Security Administration (TSA). The agency was charged with making improvements to the country's transportation security systems and protecting against future terrorist attacks. TSA was also given the authority to establish regulations for protecting certain information from public disclosure. These regulations govern sensitive security information, or SSI. The SSI regulations prohibit TSA officials and employees having a "need to know" status from disclosing transportation...

Credit Scores: Development, Use, and Policy Issues

Tennessee Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Tennessee.

Public Printing Reform: Issues and Actions

Virginia Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Virginia.

Utah Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Utah.

A Currency Board as an Alternative to a Central Bank

The Foreign Operations Act ( P.L. 102-391 ) signed on October 6, 1992 allows the U.S. quota, or contribution, increase to the IMF of $12 billion to be used to "...support monetary stability in member countries through the instrumentality of currency boards." What is a currency board? How does it differ from an alternative monetary arrangement such as a central bank? Why was it adopted by countries with histories of chronic inflation (e.g., Argentina) and those emerging from the Soviet bloc (e.g., Bulgaria), and urged upon those suddenly hit by currency speculation (e.g., Indonesia)? What...

Administrative Office of the U.S. Courts: History, Operations, and Current Issues

The Administrative Office of the United States Courts (AO) is the principal administrative agency of the judicial branch. Originally created by Congress to improve the supervision of the federal courts and to give the federal judicial branch greater managerial independence from the executive branch, the AO is charged with a number of important tasks. Since the September 11, 2001, terrorist attacks, a principal area of concern for the AO has been courthouse security and emergency preparedness. In addition, the AO is currently decentralizing its budget process and improving the judicial...

General Management Laws: A Compendium

This report (hereafter "compendium") is a companion to CRS Report RL32388(pdf) , General Management Laws: Major Themes and Management Policy Options . In combination, these reports have three main objectives: (1) to identify and describe the major management laws under which the executive branch of the federal government is required to operate, including their rationale, design, and scope; (2) to assist Members of Congress and their staff in oversight of executive branch management; and (3) to help Congress when considering potential changes to the management laws themselves, as well as...

Estate Tax Legislation in the 108th Congress

Under provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA, P.L. 107-16, enacted June 7, 2001), the estate tax and generation-skipping transfer tax are scheduled to be repealed in 2010 but reinstated in 2011. This is because all tax cut provisions of EGTRRA are scheduled to sunset on December 31, 2010. This report tracks actions in the 108th Congress to permanently repeal — or retain but alter — the estate tax.

Insurance Regulation: International Developments

Events and entities outside the United States are affecting or may affect the competitive position of U.S. insurers, in two ways. First, supranational organizations are developing international standards for insurance accounting and for aspects of supervision, such as reinsurance supervision. Second, U.S. insurers are operating under a much more fragmented regulatory regime than their competitors in other countries, such as the U.K., that are consolidating and modernizing their supervision. International standards and regulatory competition are important parameters on the U.S....

Insurance Regulation After the Gramm-Leach-Bliley Act

Congress passed the Gramm-Leach-Bliley Act in 1999, anticipating wholesale integration in financial services. Since then, markets have not really integrated, and regulatory silos -- with few exceptions -- remain intact. Congress is now exploring federal standards for some aspects of state regulation of insurance. This report was written under the supervision of Barbara Miles, Government and Finance Division, and will be updated as events warrant.

Inflation and Unemployment: What is the Connection?

Even at times when the inflation rate shows little indication that it is about to rise significantly, many economists feel that there is some risk of that happening as unemployment rate falls to near 5%. There are those who consider an unemployment rate below 5% to be unsustainable, or at least incompatible with continued low rates of inflation. It might seem strange that an economy with both low unemployment and low inflation could be considered a source of concern. But, many economists believe that it may not be possible to keep them both low for very long. The experience of the...

Congressional Overrides of Presidential Vetoes

This report discusses Congress' power to override presidential vetoes. The President's veto authority is among his most significant tools in legislative dealings with Congress. It is effective not only in preventing the passage of legislation undesirable to the President, but also as a threat, sometimes forcing Congress to modify legislation before it is presented to the President.

President Clinton’s Vetoes

Presidential Vetoes, 1789-Present: A Summary Overview

This report discusses the veto power vested in the President by Article I, Section 7 of the Constitution. It provides a general overview and a table of presidential vetoes from 1789-2004, listing the coincident Congresses, regular vetoes, pocket vetoes, total vetoes, and vetoes overridden for each president.

Delaware Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Delaware.

Commonwealth of the Northern Mariana Islands Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the Northern Mariana Islands.

District of Columbia Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the District of Columbia.

Connecticut Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Connecticut.

Guam Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on Guam.

American Samoa Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on American Samoa.

Georgia Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Georgia.

The Economic Impact of Cyber-Attacks

Foreign Relations Authorization, FY2004 and FY2005: State Department and Foreign Assistance

The foreign relations authorization process dovetails with the annual appropriation process for the Department of State (within the Commerce, Justice, State and Related Agency appropriation) and foreign policy/foreign aid activities (within the foreign operations appropriation). Congress is required by law to authorize the spending of appropriations for the State Department and foreign policy activities every two years. Foreign assistance authorization measures (such as authorization for the U.S. Agency for International Development, economic and military assistance to...

Idaho Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Idaho.

Colorado Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Colorado.

Indiana Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Indiana.

Florida Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Florida.

Oregon Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Oregon.

North Dakota Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of North Dakota.

Pennsylvania Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Pennsylvania.

The Davis-Bacon Act: Issues and Legislation During the 108th Congress

This report discusses the debate surrounding the Davis-Bacon Act (1931, as amended), which requires, among other things, that not less than the locally-prevailing wage be paid to workers employed in federal contract construction. Through recent decades, the Act has become a continuing source of contention, particularly regarding its impacts, whether it should be modified, strengthened, or repealed, and if it is being administered effectively.

Arizona Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Arizona.

Animal Rendering: Economics and Policy

Renderers convert dead animals and animal byproducts into ingredients for a wide range of industrial and consumer goods, such as animal feed, soaps, candles, pharmaceuticals, and personal care products. U.S. regulatory actions to bolster safeguards against bovine spongiform encephalopathy (BSE or mad cow disease) could portend significant changes in renderers' business practices, the value of their products, and, consequently, the balance sheets of animal producers and processors. Also, if animal byproducts have fewer market outlets, questions arise about how to dispose of them safely....

Emergency Management and Homeland Security Statutory Authorities in the States, District of Columbia, and Insular Areas: A Summary

The National Conference of State Legislatures (NCSL), through a contract with the Congressional Research Service (CRS), compiled information in calendar year 2003 that was used to develop profiles of emergency management and homeland security statutes in the 50 states, the District of Columbia, and the insular areas. These profiles are published separately as CRS reports and are listed in the appendix to this report.

Alaska Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Alaska.

California Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of California.

Arkansas Emergency Management and Homeland Security Statutory Authorities Summarized

This report is one of a series that profiles the emergency management and homeland security statutory authorities of the 50 states, the District of Columbia, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and three territories (American Samoa, Guam, and the U.S. Virgin Islands). Each profile identifies the more significant elements of state statutes, generally as codified. This report focuses on the state of Arkansas.

Air Quality: EPA's Proposed Interstate Air Quality Rule

On December 17, 2003, the Environmental Protection Agency (EPA) issued a proposed rule to address the effect of interstate transport of air pollutants on non-attainment of the National Ambient Air Quality Standards (NAAQS) for fine particulates (PM2.5) and ozone (specifically, the 8-hour standard). The proposed Interstate Air Quality (IAQ) rule appeared in the Federal Register January 30, 2004. For PM2.5, the proposed rule finds that the interstate transport of sulfur dioxide (SO2) and nitrogen oxides (NOx) from 28 states and the District of Columbia contributes significantly to downwind...

Intellectual Property, Computer Software and the Open Source Movement

The term "open source" refers to a computer program that is distributed along with a license, or contract, that requires users of the program to comply with specified conditions. Among these stipulations are that the source code be distributed along with the software, and that others be allowed to modify the source code as they desire. In contrast, the source code of "closed source" software is proprietary, not publicly distributed and subject to alteration only by the software manufacturer. Some concerns have arisen concerning the relationship between open source software...

Appropriations for FY2004: VA, HUD, and Independent Agencies

Budget Sequesters: A Brief Review

Title IX and Sex Discrimination in Education: An Overview

This report provides an overview of Title IX of the Education Amendments of 1972, and the various aspects of education affected by this law. Although Title IX has been only partially successful in eliminating sex discrimination in education, the effects of this legislation have been far-reaching.

Appropriations for FY2004: Transportation, Treasury, Postal Service, Executive Office of the President, General Government, and Related Agencies

For FY2004 Congress began providing, in a single bill, appropriations for the Departments of Transportation and the Treasury, the United States Postal Service, the Executive Office of the President, and Related Agencies, as well as General Government provisions. On January 23, 2004, President Bush signed the Consolidated Appropriations Act, 2004 ( H.R. 2673 ; P.L. 108-199 ), which included the conference version of the FY2004 Transportation, Treasury and Independent Agencies Appropriations bill. On September 9, 2003, the House passed H.R. 2989 , the FY2004 Transportation, Treasury and...

Appropriations for FY2004: Commerce, Justice, State, the Judiciary, and Related Agencies

Congress packaged a number of appropriations bills, including CJS, into an omnibus bill ( H.R. 2673 ). A conference report ( H.Rept. 108-401 ) emerged just prior to the Thanksgiving recess. The CJS portion of the bill (Division B) contains a total of $41.0 billion, not reflecting the .465% rescission in the general provisions of Division B. Within Division H--Miscellaneous Appropriations and Offsets--Section 168 includes a .59% across-the-board rescission. The House agreed to the conference report on December 8th, while the Senate passed the package on January 22, 2004. The President...

Financial Privacy: The Economics of Opt-In vs Opt-Out

SARS, Avian Flu, and Other Challenges for China's Political, Social, and Economic Transformation

In November 2002, SARS, a new and deadly human illness suspected of having an animal origin, made its first appearance in China. Chinese leaders at first minimized the effects of the new virus and covered up the extent of its spread. But the disease moved rapidly to other countries, prompting the World Health Organization in 2003 to label the virus a "global health threat." Under intense public scrutiny, Chinese leaders in April 2003 eventually acknowledged that people were sickening and dying, apologized for their leadership failures in addressing the problem, and launched a series of...

Tax Activity in the 108th Congress: An Overview

Appropriations for FY2004: U.S. Department of Agriculture and Related Agencies

On January 23, 2004, the President signed into law an FY2004 consolidated appropriations measure ( P.L. 108-199 , H.R. 2673 ) that includes annual funding for the U.S. Department of Agriculture and Related Agencies. The full House approved the conference agreement of the measure on December 8, 2003. Senate floor action on the conference agreement was delayed for several weeks until a cloture motion was approved and the conference agreement was adopted on January 22, 2004. Part of the reason for the delay in Senate consideration of the measure was opposition to a conference-adopted...

Appropriations for FY2004: Legislative Branch

On September 30, 2003, the President signed into law H.R. 2657 , the FY2004 Legislative Branch Appropriations Act ( P.L. 108-83 ). The Act contains $3.548 billion for FY2004 legislative branch activities, and $937.6 million for FY2003 emergency supplemental appropriations (for executive and judicial programs). During markup on July 9, 2003, the Senate Committee on Appropriations added $1.989 billion in FY2003 emergency supplemental appropriations to its version of the FY2004 legislative branch funding bill, S. 1383 . It placed the funds in Title III of the bill. The Senate amended the...

Harbor Maintenance Funding

The Harbor Maintenance Tax (HMT) was instituted by the Water Resources Development Act (WRDA) of 1986 (P.L. 99-662) to pay for the routine maintenance and operations costs of harbors. Numerous legal challenges to the HMT raise questions about its future and the issue of possible legislative changes. In March 1998, the Supreme Court struck down the application of the HMT with respect to exports, finding that it violated the Constitution’s ban on export taxes. Cases regarding the constitutionality of the HMT on imports remain in litigation. The European Union sees the application of the HMT...

Appropriations for FY2004: District of Columbia

On February 3, 2003, the Bush Administration released its FY2004 budget recommendations. The Administration ' s proposed budget included $420.5 million in federal payments to the District of Columbia. This includes $166.5 million for the Court Services and Offender Supervision Agency for the District of Columbia, an independent federal agency that has assumed management responsibility for the District ' s pretrial services, adult probation, and parole supervision functions. In addition, the Administration requested $163.8 million in support of court operations, and $32 million for...

Comparison of California's Financial Information Privacy Act of 2003 with Federal Privacy Provisions

The California Financial Information Privacy Act,1 enacted on August 28, 2003, and effective on July 1, 2004, governs the rights of California residents with respect to the dissemination of nonpublic personal information by financial institutions. In some respects, it diverges from two federal laws that impose restrictions on the dissemination of nonpublic personally identifiable customer information by financial information.

Supreme Court Recognition of Fifth Amendment Protection for Acts of Production

On several occasions the Supreme Court has addressed the question of when Fifth Amendment privilege against self-incrimination applies to the act of responding to a government subpoena or other command. Beginning with Schmerber and Fisher , through Doe, and finishing with Hubbell , the Court has declared that acts of production may fall within the privilege when they are personal, compelled, incriminating, testimonial communications. The act of production doctrine is easily misunderstood, but some of the uncertainty can be dissipated by a close examination of the facts and views of the...

Congressional Member Office Operations

Taxation of Life Insurance Companies

Life insurance companies determine their federal income tax liability using a set of Internal Revenue Code provisions that apply only to those companies. This report provides an overview of these tax provisions. Life insurance companies sell financial contracts that contain two common features. First, these contracts generally provide protection against uncertain financial risks that relate to the timing of the death of insured individuals. Second, they incorporate a broad variety of financial investment arrangements. Most of the difficult issues that arise concerning the taxation of...

Multilateral Development Banks: Issues for the 108th Congress

21st Century Community Learning Centers: Evaluation and Implementation Issues

The 21st CCLC program was originally authorized as Part I of Title X, of the Elementary and Secondary Education Act (ESEA), as amended. This program was reauthorized as part of the reauthorization of the ESEA by the No Child Left Behind Act of 2001, P.L. 107-110, and was signed into law on January 8, 2002. This report discusses implementation of the reauthorized 21st CCLC program, and the recent evaluation of the program and its implications.

Foreign Remittances to Latin America

Sports Legislation in the 108th Congress

As a result of increasing conflict within the sports industry over the past few decades, Congress and federal agencies have given greater attention to public policy issues associated with amateur and professional sports in the United States. Congress has focused on sports in the context of the following public policy areas: antitrust, labor relations, immigration, player and fan violence, broadcasting and cable issues, taxation, drug abuse and testing, federal spending related to the conduct of U.S.-held Olympic Games, sports franchise relocations, legal and illegal gambling, oversight of...

The House's Corrections Calendar

This report discusses the establishment of the "Corrections Day," a concept credited to Michigan Governor John Englerwhich, which is a procedure for repealing "the dumbest things the federal government is currently doing."

Japan-North Korea Relations: Selected Issues

Japan and North Korea have not established official relations since the Korean Peninsula, which the Japanese Empire annexed in 1910, was liberated from Japanese rule and divided into two separate states following Japan's defeat in World War II. Attempts to establish normal relations in the early 1990s and again in 2000 ended in failure, due to seemingly unresolvable obstacles. In September 2002, a one-day summit was held in Pyongyang between Japanese Prime Minister Junichiro Koizumi and North Korean leader Kim Jong-il, the first ever between the leaders of the two countries. Koizumi and...

The Budget for Fiscal Year 2003

This report discusses the budget for fiscal year 2003. It debates issues such as budget action, receipts surpluses or deficits, and the economy.

The Budget for Fiscal Year 2003

The American Steel Industry: A Changing Profile

The U.S. steel industry has faced increasing difficulties since the late 1990s. About 40 U.S. steel producers have gone into bankruptcy. While different companies and parts of the industry have been affected to different degrees, the two types of domestic producers of raw steel, integrated mills and minimills, have both supported restrictions on imports, which they say have undermined the ability of the U.S. industry to produce steel economically. This report reviews industry developments and the economic situation of the steel industry, including legacy cost aspects of its problems.

Electronic Banking: The Check Truncation Issue

The clearing process for checks is more expensive than other methods of payment which are cleared electronically, such as credit cards and Internet banking. The main reason is that check clearing requires banks to physically present and return checks unless they obtain legal agreements to clear electronically. The Check Clearing for the 21st Century Act of 2003 ( P.L. 108-100 ) eliminates the requirement to physically return the original checks to the paying bank. Before the bill by the same title became law, on April 3, 2003, the Senate held its first hearing on the Fed's Check...

The New York Stock Exchange: Governance and Market Reform

As the world’s largest stock exchange and a key part of the U.S. economy, the NYSE is a central focus of Congress’s oversight of financial markets. This report sets out the basic issues in NYSE governance and market structure.

U.S. Trade Policy and Changing Domestic and Foreign Priorities: A Historical Overview

U.S. trade policy involves actions that influence the flow and composition of goods, services, and investments. Resting at the intersection of domestic and foreign policy, trade policy seeks to promote both domestic and foreign policy objectives, economic as well as political. Viewed in historical perspective, foreign policy priorities have dominated U.S. trade policy decisions over long periods of time; conversely, domestic policy priorities have held sway in other eras. In today’s post September 11th world, foreign policy and national security priorities may be gaining increased...

Industry Trade Effects Related to NAFTA

The North American Free Trade Agreement (NAFTA), signed by President George Bush on December 17, 1992, has been in effect since January 1994. After eight years of implementation, the full effects of NAFTA on the U.S. economy are still unclear. There are numerous indications that NAFTA has achieved many of the trade and economic benefits that proponents claimed it would bring, although there have been adjustment costs. However, there is not enough evidence to quantify the impacts on specific U.S. industries. Some studies show that the agreement has had an overall positive effect on the U.S....

Reorganization of the House of Representatives: Modern Reform Efforts

On January 7, 2003, the House created a Select Committee on Homeland Security. One of its responsibilities is to conduct a "thorough and complete study of the operation and implementation of the rules of the House, including Rule X, with respect to the issue of homeland security." The select committee is required to submit its recommendations on possible changes to the Committee on Rules not later than September 30, 2004. Numerous official and unofficial reviews by Congress have been conducted in the past 60 years. Three joint committees, two select committees, two commissions, and...

Reorganization of the Senate: Modern Reform Efforts

Numerous reviews of the operations and structure of the Senate have been conducted in the past 60 years. Three joint committees, two select committees, two commissions, one study group, one standing committee, and party conferences have studied various aspects of the Senate and its committee system. The contemporary Senate is primarily a product of two major laws and a significant overhaul of Senate Rules. The Legislative Reorganization Act of 1946, among other things, codified committee jurisdictions, streamlined the committee system, and instituted a professional committee staffing...

Unemployment Compensation (UC)/ Unemployment Insurance (UI): Trends and Contributing Factors in UC Benefit Exhaustion

This report examines trends and contributing factors in Unemployment Compensation (UC) benefit exhaustion rates. To counter the disincentive effect of benefit receipt, most state UC programs limit the duration of UC benefits to a maximum of 26 weeks and many require some evidence of a job search. The limited duration of UC benefits results in some unemployed individuals exhausting their benefits before finding work or voluntarily leaving the labor force. Furthermore, the availability of compensation (UC benefits) may create disincentives to search for and accept reemployment....

Homeland Security: Standards for State and Local Preparedness

College Costs and Prices: Background and Issues for Reauthorization of the Higher Education Act

Based on available data, college tuition and fees have been rising more rapidly than household income over the past 2 decades. The divergence is particularly pronounced for low-income households and becomes less pronounced as household income increases. In analyzing price increases, researchers have considered whether a relationship exists between federal aid and price increases. There are several ways Congress could consider addressing the issue, such as imposing price controls, offering incentives for controlling prices or costs, ensuring the public is better educated about college cost...

Federal Research and Development Funding: FY2004

Disaster Relief and Response: FY2003 Supplemental Appropriations

Federal departments and agencies are authorized to undertake a range of emergency management activities, including disaster relief and response efforts. The Department of Homeland Security (DHS) has primary responsibility, but other departments and agencies provide grants and loans to disaster victims and reimburse state and local governments overwhelmed by costs associated with clearing debris and rebuilding facilities, among other forms of assistance. FY2003 supplemental funding for these activities has been the issue of debate.

Insurance Regulation: Background and Issues

First Responder Initiative: Policy Issues and Options

This report provides background information and policy analysis pertinent to proposals to restructure first responder assistance programs. Specifically, this report provides information on existing programs, appropriations, legislation in the 108th Congress, and selected policy issues. This report does not discuss all relevant policy issues, but, rather, those issues that may be germane to any significant restructuring of existing programs.

The Electoral College: Reform Proposals in the 107th Congress

Seven proposals to reform the Electoral College system have been introduced to date in the 107th Congress. H.J.Res. 3 (Representative Green of Texas), and H.J.Res. 5 (Representative Delahunt) would eliminate the electoral college, substituting direct popular election of the President. H.J.Res. 1 (Representative Clyburn), H.J.Res. 18 (Representative Engel), and H.J.Res. 37 (Representative Clement) would incorporate the “district” method of awarding electoral votes, and H.J.Res. 17 (Representative Engel) would provide for proportional award of electoral votes. H.J.Res. 25 (Representative...

Haiti: Issues for Congress

Fair Credit Reporting Act: Frequently Asked Questions

As financial privacy issues are debated in Congress, numerous questions about the Fair Credit Reporting Act (FCRA) have emerged. Enacted in 1970, the Fair Credit Reporting Act is the federal statute that establishes a regulatory framework for credit reporting in the United States and establishes a consumer’s rights with respect to his or her credit report. This report attempts to answer frequently asked questions about the Fair Credit Reporting Act.

The Electoral College: How it Works in Contemporary Presidential Elections

The Constitution assigns each state a number of electors equal to the combined total of the state’s Senate and House of Representatives delegations; at present, the number of electors per state ranges from three to 55, for a total of 538. This report discuses constitutional origins, the electoral college today and explains the allocation of electors and electoral votes.

Creation of Executive Departments: Highlights from the Legislative History of Modern Precedents

On November 25, 2002, President George W. Bush signed legislation to establish a Department of Homeland Security ( P.L. 107-296 , 106 Stat. 2135). In the period from World War II until the establishment of this latest department, Congress also created or implemented major reorganizations of seven other Cabinet departments. This report provides a brief legislative history of the establishment of the Department of Homeland Security (DHS) and for the purpose of comparison, describes the principal elements of the legislative process that established the Departments of Defense; Health,...

The Air Force KC-767 Tanker Lease Proposal: Key Issues For Congress

The Air Force wishes to replace its KC-135E aircraft by leasing 100 new Boeing KC-767 tankers. The Air Force indicates that leasing is preferred because it will result in faster deliveries than outright purchasing. Air Force leaders argue that a lease will allow them to husband scarce procurement dollars by making a small down payment. Although Congress authorized the proposed lease in the FY2002 DOD Appropriations Act, it stipulated that the defense oversight committees must approve the lease -- only the Senate Armed Services Committee has yet to approve. The lease proposal has been...

Casework in a Congressional Office

This report and its appendices present a general overview of congressional office procedures associated with handling casework and the assistance provided by a Member of Congress to help constituents in their dealings with federal agencies. It discusses options for assisting Members’ constituents and the role of Members and staff in providing casework services.

Economic Development Administration: Overview and Issues

The Economic Development Administration (EDA), targeted for elimination or major “reinvention” early in the 104th Congress, gained a new lease on life in the waning days of the 105th. Having been kept alive via appropriations bills since its last authorizing legislation expired in 1982, P.L. 105-393 reauthorized the EDA and its programs for 5 years. On October 27, Congress approved a conference agreement recommending $286.7 million for EDAP and $28 million for S&E, for a totalFY2001 appropriation of$411.9 million for EDA. It became part of the Consolidated Appropriations Act (H.R. 4942,...

Chaplain of the House: Selection and Related Procedures

House procedures to elect an officer during a Congress differ from those followed at the start of a Congress. A resolution to elect a replacement officer to fill a vacancy during a Congress is privileged and debatable under the hour rule. By statute, the Speaker has authority to appoint a temporary replacement officer, and in some cases, temporary appointments have continued in effect for the remainder of a Congress. This report describes the consultative process that ultimately led to Father Coughlin’s temporary appointment, and related parliamentary issues concerning the selection of...

Energy Tax Incentives in the 108th Congress: A Comparison of the House and Senate Versions of H.R. 6 and the Senate Finance Committee Amendment

This report discusses energy taxes incentives, which have long been an integral component of this nation’s energy policy. Efforts to significantly expand existing energy tax subsidies have been undertaken since the 106th Congress, but controversy over various non-tax energy policy provisions — corporate average fuel economy standards, the Alaskan National Wildlife Refuge, etc. — have helped stall the legislation.

Departmental Organization, 1947-2003

Since the end of World War II, nine federal departments have been created in the executive branch. The tables in this report provide selected information on the organization of those departments.

Emergency Electronic Communications in Congress: Proposals and Issues

The events of September 11, 2001, and the subsequent anthrax incidents have prompted some observers to suggest creating an emergency electronic communications system for Congress to ensure continuity of its operations. On July 25, 2003, Representative James R. Langevin introduced H.R. 2948. The bill would direct the Comptroller General of the United States to enter into arrangements with the National Academy of Sciences (NAS) and the Librarian of Congress for conducting a study on the feasibility and costs of implementing such a system for Congress to use during an emergency.

Messages, Petitions, Communications, and Memorials to Congress

Trade Remedy Law Reform in the 108th Congress

Trade remedies are government measures to minimize the adverse impact of imports on domestic industries. Antidumping duties are used to counter the effects of imports sold at unfairly low prices on the domestic market. Countervailing duties are used to counter the price effects of imports that benefit from government subsidies in the exporting countries. Safeguard remedies (also called Section 201 and escape clause remedies) are used to reduce the injurious impact of surges in fairly trade imports. Some of the bills introduced in the 108th Congress would revise safeguard remedies....

"Fast-Track" or Expedited Procedures: Their Purposes, Elements, and Implications

This report discusses certain provisions of law that commonly are known as “fast-track” or expedited procedures. They are so labeled because these statutory provisions contain special legislative procedures that apply to one or both houses of Congress and that expedite, or put on a fast track, congressional consideration of a

certain measure or a narrowly defined class of measures. This report first presents the nature, purpose, and elements of fast-track procedures. Then the report discusses some of the most important ways in which these procedures differ from the normal procedures of...

Calling Up Measures on the Senate Floor

The Senate takes up measures under procedures set in Senate rules and by longstanding customs, thereby giving it flexibility in setting its floor agenda. This report first treats those processes or customs most often used by the Senate and then discusses some procedures less often used to call up measures.

Taxation of Life Insurance Products: Background and Issues

Owners and beneficiaries of life insurance contracts receive favorable treatment under the federal income tax laws. Before examining this tax treatment, this report provides an overview of the term life insurance and cash value life insurance products, including "whole" life insurance, "universal" life insurance, and "variable" life insurance. This discussion illustrates how cash value life insurance can operate as an investment vehicle that combines life insurance protection with a financial instrument that operates similarly to bank certificates of deposit and mutual fund investments. ...

The Congressional Budget Process Timetable

The Congressional Budget Act (CBA) of 1974 (Titles I-IX of P.L. 93-344, 88 Stat. 297-332) established the congressional budget process, which coordinates the legislative activities on the budget resolution, appropriations bills, reconciliation legislation, revenue measures, and other budgetary legislation. Section 300 of this act provides a timetable (see Table 1) so that Congress may complete its work on the budget by the start of the fiscal year on October 1.

Congressional Record: Its Production, Distribution, and Accessibility

The Congressional Record is the most widely recognized published account of the debates and activities in Congress. The Record often reflects the intent of Congress in enacting legislation. This fact sheet is one of a series on the legislative process.

Budget Reconciliation Legislation: Development and Consideration

Budget reconciliation is an optional two-step process Congress may use to assure compliance with the direct spending, revenue, and debt-limit levels set forth in budget resolutions.

Secret Sessions of the House and Senate

A User's Guide to the Congressional Record

The Congressional Record is a substantially verbatim account of remarks made during the proceedings of the House and Senate, subject only to technical, grammatical, and typographical corrections. It consists of four main sections: the proceedings of the

House and Senate, the Extensions of Remarks, and the Daily Digest. This fact sheet is one of a series on the legislative process.

Suspension of Rules in the House: Measure Sponsorship by Party

Diamonds and Conflict: Background, Policy, and Legislation

In several diamond-rich countries affected by armed conflict, notably in Africa, belligerents have funded their military activities by mining and selling diamonds, and competition over the use and control of diamond wealth has contributed significantly to the depth and extended duration of these conflicts. Diamonds used in this fashion, labeled "conflict diamonds," were estimated to have comprised an estimated 3.7 % to 15% of the value of the global diamond trade in 2000. The present volume of such trade appears is difficult to estimate. Several diamond-related conflicts have ended, but...

Flow of Business: Typical Day on the Senate Floor

Several authorities govern the daily chamber work of the Senate: the standing rules, the “standing orders,” unanimous consent agreements, precedent, and tradition. Because these authorities have different influence at certain times, no Senate session day is truly typical. This report discusses procedures and business that usually occur every session day, and refers to certain business items that may occur less frequently.

"Sense of" Resolutions and Provisions

One or both houses of Congress may formally express opinions about subjects of current national interest through freestanding simple or concurrent resolutions (called generically “sense of the House,” “sense of the Senate,” or “sense of the Congress” resolutions). These opinions may also be added to pending legislative measures by amendments expressing the views of one or both chambers. This fact sheet identifies the various forms such expressions may take and the procedures governing such actions.

Guide to Individuals Seated on the Senate Dais

This report is a brief summary of House and Senate procedures for reaching agreement on legislation. It discusses the provisions of House Rule XXII and Senate Rule XXVIII as well as other applicable rules, precedents, and practices. The report focuses on the most common and customary procedures.

A Tax Limitation Constitutional Amendment: Issues and Options Concerning a Super-Majority Requirement

Proposals to limit the federal government’s authority to raise taxes have been made several times in recent years. Most frequently, these proposals call for limits on Congress’s ability to pass revenue measures. Typically, limitation proposals would allow increases in tax revenues only under one of two circumstances. First, tax revenues could increase under existing tax laws as a result of economic upturns. Alternatively, they could increase because of a new law, but only if it were passed by a super-majority (typically two-thirds or three-fifths). Questions about how such proposals might...

Presidential Appointments to Full-Time Positions in Independent and Other Agencies During the 107th Congress

During the 107th Congress, 109 nominations to full-time positions in independent and other agencies were submitted to the Senate. Of these nominations, three were submitted by President Clinton before he left office and were withdrawn by President Bush on March 19, 2001. President Bush submitted 106 nominations, of which 94 were confirmed, 10 were returned to him, and two were withdrawn. President Clinton made three recess appointments to these positions during the intersession between the 106th and 107th Congresses; all expired at the end of the first session of the 107th Congress....

Political Action Committees: Their Role in Financing Congressional Elections

Political action committees, or PACs, are legal entities through which interest groups raise and spend money in elections. They constitute one of four major sources of funds contributed to congressional campaigns, along with individual citizens, political parties, and candidates. While PACs proliferated and became an issue in the 1970s and 1980s, interest groups have long played a major role in funding American elections.

House Leadership Structure: Overview of Party Organization

At the beginning of each Congress, Members meet to organize and select their leaders. Democrats call their party organization the Democratic Caucus; Republicans call their party organization the Republican Conference. Within the caucus and conference are numerous entities that assist party leaders in determining the work and role of the Members of that party. This report serves as a companion piece to CRS Report RS20499(pdf) , House Leadership: Whip Organization , and CRS Report RS20881 , Party Leaders in the House .

Statutory Offices of Inspector General: Establishment and Evolution

Presidential Vetoes, 1789-Present: A Summary Overview

Benefit-Cost Analysis and the Discount Rate for the Corps of Engineers' Water Resource Projects: Theory and Practice

Construction of large water resource projects, such as those of the Army Corps of Engineers (Corps), can be controversial because they involve trade-offs among various river uses, and between current and future generations. Pursuant to federal water project planning guidelines, the Corps weighs these trade-offs using benefit-cost analysis. If its analysis shows that a project's national economic development (NED) benefits exceed its NED costs, the Corps seeks project authorization from Congress. Congress authorizes the Corps to construct some of these large water projects through (usually)...

Public Printing Reform: Issues and Actions

Countries of the World and International Organizations: Sources of Information

This report provides a selection of materials for locating information on foreign countries and international organizations. In the general information section, it presents sources giving an overview of politics, economics, and recent history. A specialized information section cites sources on human rights, immigration, international organizations, military strengths, terrorism, and other topics. Included are titles of some of the most frequently consulted bibliographic sources that are available for use in many libraries. Electronic information on foreign countries is also provided, via...

Medicare+Choice

Medicare has a long-standing history of offering its beneficiaries an alternative to the traditional fee-for-service program. Health Maintenance Organizations and other types of managed care plans have been allowed to participate in the Medicare program, beginning with private health plans contracts in the 1970s and the Medicare risk contract program in the 1980s. Then, in 1997, Congress passed the Balanced Budget Act of 1997 (BBA, P.L. 105-33 ), replacing the risk contract program with the Medicare+Choice (M+C) program. The M+C program established new rules for beneficiary and plan...

E-Commerce Statistics: Explanation and Sources

Congress will play a vital role in many e-commerce policy issues, including Internet taxation, encryption and electronic authentication (i.e., digital signatures), intellectual property protection (i.e., patent or copyright infringement), computer network security, and privacy safeguards for individuals and organizations, as well as consideration of how European Union (EU) and World Trade Organization (WTO) policies may affect U.S. e-commerce activities. This report addresses the complexities of measuring e-commerce growth, and provides background information on government and private...

Iraq's Economy: Past, Present, Future

This report discusses the government of Iraq and its active role in stimulating and directing the Iraqi economy.This report identifies issues to be addressed before Iraq can participate normally in the world economy.

Innovation, Intellectual Property, and Industry Standards

An "industry standard" is a set of technical specifications that provides a common design for a product or process. Relating to products ranging from typewriter keyboards to high technology computer protocols, standards are pervasive in the modern economy. Standards sometimes arise through government action or through the operation of the marketplace. However, private industry groups called standards bodies have long been active in promulgating standards. Standards bodies and their members have encountered a growing number of claims that a privately held "intellectual property right" --...

American National Government: An Overview

Employee Stock Ownership Plans (ESOPs): Legislative History

Employee Stock Ownership Plans (ESOPs) are defined contribution plans primarily invested in the employer's securities. Employee stock plans in the form of an ESOP pre-date the 1974 Employee Retirement Income Security Act (ERISA). (1) ERISA, however, was the first law to recognize ESOPs. Congress has routinely revisited ESOPs and amended the IRC to reflect policy. The 1975 Tax Reduction Act created a tax credit for ESOPs. The Revenue Act of 1978 added new formalities to ESOPs through creation of IRC Section 409A. In the mid-1980s, the 1984 Tax Reform Act created new and substantial tax...

Floor Consideration of Conference Reports in the House

This report briefly discusses procedure regarding conference reports in the House.

Floor Consideration of Conference Reports in the Senate

This report briefly discusses procedure regarding conference reports in the Senate.

Amendments Between the Houses

This report briefly summarizes the process of amendments between the House of Representatives and the Senate, which occurs if the House and Senate approve differing versions of a measure. An exchange of amendments between the houses resolves these differences.

Amendments in the Senate: Types and Forms

The amending process is central to the consideration of legislation by the Senate. This report briefly describes the various types of amendments that take place in the Senate.

The Debt Limit: Why It Rose After Four Years of Surpluses and the Debt Changes Since

In December 2002, the Administration began warning Congress that the debt limit ($6.4 trillion) would be reached in the first half of 2002. As the limit was approached in February 2003, the Administration resorted to suspension of certain internal fund investments to avoid a default. The adoption of the budget resolution (H.Con.Res. 95; April 11, 2003) for FY2004 generated legislation (H.J.Res. 51) — deemed passed by the House — that would increase the debt limit to $7.4 trillion.

Small Business Tax Relief: Proposals in the 108th Congress and Their Economic Justification

This report examines the economic arguments for and against small business tax subsidies in the context of current congressional proposals to expand them. It begins with a brief description of current federal tax subsidies for small firms, moves on to consider the principal economic arguments for and against these subsidies, and concludes with a discussion of proposals in the 108th Congress to expand small business tax subsidies and their likely economic effects.

Committee Funding for the House and Senate, 108th Congress

The Senate adopted ad hoc procedures in approving committee operating budgets. With the Senate divided 51-48-1 at the beginning of the 108th Congress, Senate Democrats argued for a proportional allocation of committee staff between the parties. On January 15, after a week-long delay in the appointment of Senate committees, a unanimous consent agreement was reached providing for the proportional allocation of staff and office space between the parties on each committee, with a separate provision for each committee chair to control up to 10% of the committee budget to employ administrative...

Revenue Reconciliation Directives in the FY2004 Budget Resolution

This report discusses the proposed levels of revenue reduction in the President’s budget and the congressional budget resolution for FY2004, the features of the budget reconciliation process, the inclusion of revenue reconciliation directives in the FY2004 budget resolution, and selected procedural issues pertaining to the consideration of the resultant reconciliation legislation.

South Korean Politics and Rising "Anti-Americanism": Implications for U.S. Policy Toward North Korea

In December 2002, South Koreans elected Roh Moo-hyun, a little-known, self-educated lawyer, as their president. The left-of-center Roh narrowly defeated the conservative candidate, Lee Hoi Chang. Roh ran on a platform of reform, pledging to make South Korean politics more transparent and accountable, to make the economy more equitable, and to make South Korea a more equal partner in its alliance with the United States. During the campaign, Roh pledged to continue his predecessor, Kim Dae Jung's, "sunshine policy" of engaging North Korea, and harshly criticized the Bush Administration's...

Department of Homeland Security: State and Local Preparedness Issues

The Homeland Security Act of 2002 (P.L. 107-296) makes the new Department of Homeland Security (DHS) responsible for providing assistance to state and local governments to ensure adequate preparedness for all disasters, including terrorist attacks. Several federal entities with functions relating to state and local preparedness, ranging from entire independent agencies to units of agencies and departments, will be transferred to the new department.

Supplemental Appropriations FY2003: Iraq Conflict, Afghanistan, Global War on Terrorism, and Homeland Security

On March 25, 2003, President Bush requested $74.8 billion in the FY2003 Emergency Supplemental for ongoing military operations in Iraq, postwar occupation, reconstruction and relief in Iraq, international assistance to countries contributing to the war in Iraq or the global war on terrorism, the cost of the continued U.S. presence in Afghanistan, and additional homeland security. On April 12, 2003, the House and Senate passed the conference version of the FY2003 supplemental ( H.R. 1559 / H.Rept. 108-76 / P.L. 108-11 ). It includes $78.49 billion, $3.7 billion more than requested by the...

The Balance of Payments: Meaning and Significance

This report provides a basic discussion of the U.S. balance of payments (BOP). The BOP is a systematic accounting of the U.S.'s international transactions for a specified period of time. It is an economic indicator that is followed closely by Members and Committees concerned with international trade and financial flows. The BOP measures flows between U.S. and non-U.S. residents. Transactions involving items capable of directly satisfying economic needs and wants are recorded in the BOP's current account. These are further distinguished as goods and services trade, receipt or payment of...

The African Union

In July 2002, the Organization of African Unity (OAU), founded in 1963 during the decolonization era, was superseded by the African Union (AU). An AU Interim Commission, created to transfer the institutional and real assets and liabilities of the OAU to the AU, and establish the AU's organizational structure, is the focal point of AU activities during its inaugural year. The AU's policy agenda overlaps substantially with that of the OAU, but more strongly emphasizes a need for greater economic growth and for governance reforms. The AU is likely to confront many of the same policy and...

Appropriations for FY2003: Commerce, Justice, and State, the Judiciary, and Related Agencies

The Commerce, Justice, and State, the Judiciary, and other related agencies (often referred to as CJS) appropriations for FY2003 were completed by Congress and signed ( P.L. 108-7 ) by the President on February 20, 2003, five months into the budget year. The enacted CJS appropriation provides $44,773.7 million in new budget authority (before applying an across-the-board rescission of 0.65%). President Bush sent the FY2003 budget request to Congress on February 4, 2002 seeking a total budget authority level for CJS appropriations of $44,019.0 million -- a mandatory level of $649.3 million...

Preparation for Senate Committee Markup

Sponsorship and Cosponsorship of Senate Bills

Sponsorship and Cosponsorship of House Bills

This report discusses the sponsorship and co-sponsorship of House bills. A Representative who introduces a bill or other measure in the House is called its sponsor. Under House Rule XII, clause 7, several Members together may submit a bill, but the first-named Representative is considered the chief or primary sponsor; the others are considered cosponsors.

Introducing a Senate Bill or Resolution

This report discusses the beginning steps in the Senate's legislative procedure. Ideas and recommendations for legislation may come from private sources, like ordinary citizens or interest groups; executive branch agencies and the White House; states and localities; and, of course, from individual Senators, committees and other Senate work groups, and party and chamber leaders. Any or all of these entities may also participate in drafting legislation (resolutions as well as bills).

The Discharge Rule in the House: Recent Use in Historical Context

The discharge rule of the House of Representatives affords a way for Members to bring to the floor a measure not reported from committee. Before a motion to discharge may be made, 218 Members must sign a petition for that purpose. This report provides summary data on discharge petitions filed since adoption of the present form of discharge rule in 1931. It also identifies the 32 occasions since 1967 on which a committee report or floor action occurred on a measure against which a petition was filed (or an alternative measure on the same subject).

Presidential Appointments to Full-Time Positions on Regulatory and Other Collegial Boards and Commissions, 107th Congress

During the 107th Congress, 125 nominations to full-time positions on 33 regulatory and other boards and commissions were submitted to the Senate by the President. President Clinton submitted 12 of these nominations before he left office on January 20, 2001, and these 12 were withdrawn by President Bush on March 19, 2001. President Bush submitted 113 nominations, of which 72 were confirmed, 6 were withdrawn, and 35 were returned to him (13 at the August 2001 recess and 22 at the end of the Congress). President Clinton made 12 recess appointments during the intersession between the 106th and...

The Electoral College: Reform Proposals in the 108th Congress

American voters elect the President and Vice President of the United States under a complex arrangement of constitutional provisions, federal and state laws, and political party practices known as the electoral college system. Despite occasional close elections, this system has delivered uncontested results in 46 of 50 elections since adoption of the 12th Amendment, effective in 1804. Throughout this period, nevertheless, it has been the subject of persistent criticism and many reform proposals. Related measures fall into two basic categories: those that would eliminate the electoral...

Homeland Security Act of 2002: Legislative History and Pagination Key

Senate Consideration of Treaties

Appropriations for FY2003: VA, HUD, and Independent Agencies

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This Report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittee on VA, HUD, and Independent Agencies.

Congressional Investigations: Subpoenas and Contempt Power

When conducting investigations of the executive branch, congressional committees and Members of Congress generally receive the information required for legislative needs. If agencies fail to cooperate or the President invokes executive privilege, Congress can turn to a number of legislative powers that are likely to compel compliance. The two techniques described in this report are the issuance of subpoenas and the holding of executive officials in contempt. These techniques usually lead to an accommodation that meets the needs of both branches. Litigation is used at times, but federal...

Appropriations for FY2003: Treasury, Postal Service, Executive Office of the President, and General Government

The Treasury and General Government accounts are funded for FY2003 through the Consolidated Appropriations Resolution, 2003 ( P.L. 108-7 ; Division J). Because the accounts in this appropriation were not funded, other than under continuing resolution, as the 107th Congress adjourned, legislation was required for that purpose early in the 108th Congress. During the interim, the accounts were funded at FY2002 enacted levels. P.L. 108-7 also requires a rescission across all discretionary funding within the Act. On February 4, 2002, President George W. Bush submitted his FY2003 budget to...

Federal Pay: FY2003 Salary Adjustments

Federal white-collar employees are to receive an annual pay adjustment and a locality-based comparability payment, effective in January of each year, under Section 529 of P.L. 101-509 , the Federal Employees Pay Comparability Act (FEPCA) of 1990. In January 2003, they received a 3.1% annual pay adjustment under Executive Order 13282 issued by President Bush on December 31, 2002 and a locality-based comparability payment, averaging about 1.0% of the General Schedule payroll, under Executive Order 13291 issued by the President on March 21, 2003. The locality pay adjustment is retroactive to...

Judicial Salary-Setting Policy

Appropriations for FY2003: District of Columbia

On February 20, 2003, President Bush signed the Consolidated Appropriations Act for FY2003, P.L. 108-7 (formerly H. J. Res. 2). Division C of the act appropriates $512 million in federal funds for the District of Columbia. for fiscal year 2003. On February 13, 2003, the House and the Senate approved the conference report ( H.Rept. 108-10 ) accompanying H. J. Res. 2. The Senate approved an earlier version of H.J.Res. 2 , on January 23, 2003, that would have allowed the District of Columbia to spend $5.8 billion in locally raised funds while Congress completed action on the proposed $517...

Congressional Budget Actions in 2002

Enron: A Select Chronology of Congressional, Corporate, and Government Activities

This report presents basic background information on the collapse of the Enron Corporation, identifying public policy issues in financial market oversight. This report briefly summarizes some federal laws carrying criminal penalties which may be implicated in the events surrounding the collapse of the Enron Corp. This report compares the auditing and accounting reform measures passed by the House (H.R. 3763) and reported by the Senate Committee on Banking, Housing, and Urban Affairs. This report compares the major provisions of three auditor and accounting reform proposals: H.R. 3763, S....

Australian-U.S. Economic Relations

Australia and the United States maintain extensive economic relations. Each is a strong proponent of more liberalized trade in the World Trade Organization. Australia, like the U.S., maintains relatively few trade barriers. U.S.-Australian economic ties have expanded steadily over the past several years, although some trade disputes have arisen, especially in regard to agriculture issues. In 2002, the two nations agreed to begin negotiations for a free trade agreement, which, if achieved, could further boost bilateral economic ties. This report will be updated as events warrant.

The Amending Process in the Senate

This report summarizes many of the rules, precedents, and practices of the Senate affecting the consideration of amendments to measures on the floor. Much of the information presented here has been extracted from Riddick’s Senate Procedure (Senate Document 101-28) the published collection of Senate precedents.

Appropriations for FY2003: Interior and Related Agencies

The Interior and Related Agencies Appropriations bill includes funds for the Department of the Interior (DOI), except for the Bureau of Reclamation, and funds for some agencies or programs within three other departments--Agriculture, Energy, and Health and Human Services. It also funds numerous smaller related agencies. On February 4, 2002, President Bush submitted his FY2003 budget for Interior and related agencies, totaling $18.94 billion compared to $19.17 billion enacted for FY2002 ( P.L.107-63 ). While the House passed an Interior funding bill in the 107th Congress, the Senate did...

The Effect of the President’s Dividend Relief Proposal on Corporate Tax Subsidies

The first section of this report explains how these excludable dividend amounts (EDAs) work and how they affect the value of corporate tax preferences. The second section of the report details alternative approaches and their effects on corporate tax subsidies. The next section of the report explores the rationale for EDAs. The final section concludes with a review of general policy issues, including a discussion of the general types of corporate tax preferences currently allowed and a discussion of possible alternative approaches.

District of Columbia: Issues in the 108th Congress

This report provides an overview of District of Columbia-related policy and funding issues of interest to Congress. The United States Constitution gives Congress exclusive legislative authority over the affairs of the District of Columbia. As a result, the 108th Congress may debate a number of funding, governance, and constitutional issues affecting the District of Columbia, including approval of the city’s budget, enactment of a general federal payment, budget autonomy for the city, and voting representation in Congress. In addition, Congress will consider whether to continue to include...

Appropriations for FY2003: U.S. Department of Agriculture and Related Agencies

On February 20, 2003, the President signed into law the FY2003 omnibus appropriations act ( P.L. 108-7 , H.J.Res. 2 ), containing funding for agencies and programs within the eleven regular FY2003 appropriations bills that were unresolved in the 107th Congress. For the U.S. Department of Agriculture (USDA) and related agencies, P.L. 108-7 contains a total regular annual appropriation of $74.25 billion, of which $56.7 billion is for mandatory programs and $17.55 billion is for discretionary programs. The $17.55 billion in discretionary funds is $805 million below the Senate-passed...

Conference Reports and Joint Explanatory Statements

The conference report presents the formal legislative language on which the conference committee has agreed. The joint explanatory statement explains the various elements of the conferees’ agreement in relation to the positions that the House and Senate had committed to the conference committee.

Appropriations for FY2003: Legislative Branch

Final congressional action on the FY2003 legislative branch bill was completed on February 13, 2003, when both houses agreed to the conference report on H.J.Res. 2 , the FY2003 omnibus appropriations resolution. The President signed the resolution into law on February 20 ( P.L. 108-7 ) Division H of P.L. 108-7 contains $3.36 billion for legislative branch activities. Language in the Act also requires a rescission of 0.65% in the appropriations of most entities funded in the bill, including those for the legislative branch. The FY2003 legislative branch appropriation of $3.36 billion,...

Special Rules in the House of Representatives

This document also available in PDF Image . The House Rules Committee enables the House to debate and vote on major legislation that is not privileged for floor consideration and that cannot pass by unanimous consent or under suspension of the rules. The Committee reports resolutions, known as rules or special rules, to make individual bills in order for floor action and to affect the procedures for debating, amending, and voting on the bills, usually in Committee of the Whole. Open rules do not restrict the germane floor amendments that Members can propose. Closed rules generally...

Clean Air: New Source Review Policies and Proposals

On November 22, 2002, the Environmental Protection Agency (EPA) finalized revisions to several aspects of the Clean Air Act’s (CAA) New Source Review (NSR) requirements. At the same time, EPA proposed rules to clarify the definition of “routine maintenance” under NSR. The proposed and final rules have generated controversy. The Bush Administration has argued that the new rules will reduce pollution and increase energy efficiency. In contrast, the State and Territorial Air Pollution Program Administrators (STAPPA) and Association of Local Air Pollution Control Officials (ALAPCO) argue that...

Foreign Direct Investment in China

This report provides an overview of global Foreign Direct Investment in the People's Republic of China, examines its effects on the Chinese economy, surveys U.S. FDI in China, and includes a discussion of policy implications for the United States. China, by far, is the largest recipient of FDI among emerging economies with an inflow of $52.7 billion in 2002 and 424,196 foreign-affiliated firms operating in China representing paid-in foreign investment of $448.0 billion. These firms account for about half of China's exports and imports. Nearly 1,500 U.S. companies from 41 states have direct...

Presidential Appointments to Full-Time Positions in Executive Departments During the 107th Congress, 2001-2002

During the 107th Congress, 354 nominations to executive department full-time positions were submitted to the Senate. Of these nominations, seven were submitted by President Clinton before he left office and were withdrawn by President Bush on March 19, 2001. President Bush submitted 347 nominations, of which 297 were confirmed, two were withdrawn, 35 were returned to him at the August 2001 recess, one was returned to him at the adjournment of the first session, and 12 were returned to him at the end of the 107th Congress. President Clinton made eight recess appointments during the...

Federal Research and Development Funding: FY2003

Estate Tax: Legislative Activity in 2002

Global Markets: Evaluating Some Risks the U.S. May Face

The Commodity Futures Modernization Act (P.L. 106-554)

The last act of the 106th Congress was to pass an omnibus bill that included the Commodity Futures Modernization Act (H.R. 5660; P.L. 106-554), the most significant amendments to the regulation of derivatives trading in 25 years. Derivative financial instruments are those that gain or lose value as some underlying rate, price, or other economic variable changes. The 106th Congress approved an overhaul of derivatives regulation which codified the unregulated status of certain derivatives, permitted the exemption of other currently-regulated contracts from oversight by the Commodity Futures...

Managing International Financial Crises: Alternatives to "Bailouts," Hardships and Contagion

Since 1995, a number of measures have been adopted to help prevent future international financial crises. Similar progress, however, has not been made in the management of such crises. Currently there is no clear alternative to large loans (often called bailouts) by the IMF or letting the debtor country fend for itself (which may lead to severe recession in the debtor country and/or the spread of the crisis to other countries). Two recent proposals -- one by Anne Krueger of the IMF and the other by John Taylor of the U.S. Treasury - aim to resolve this dilemma by establishing a...

The Child Tax Credit After the Economic Growth and Tax Relief Reconciliation Act of 2001

This report discusses the child tax credit was initially enacted as part of the Taxpayer Relief Act of 1997. Congress passed the credit because it believed that the tax structure did not adequately reflect a family’s reduced ability to pay taxes as family size increased. The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) increases the child tax credit from its prior law level of $500 to $1,000.

Taxes and Incentive Stock Options

Sports Legislation in the 106th Congress

Over the past few decades, Congress and other federal agencies have given greater attention to public policy issues associated with amateur and professional sports in the United States. Congress has focused on sports in the context of other public policy issues: antitrust, labor relations, immigration, gambling and other criminal behavior, player and fan violence, broadcasting and cable issues, taxation, drug abuse and testing, federal spending relative to the conduct of U.S. held Olympic Games, sports franchise relocations, legal and illegal gambling, and equal access for women to...

Economic and Revenue Effects of Permanent and Temporary Capital Gains Tax Cuts

Recent proposals have been made to enact either a temporary or a permanent capital gains tax cut. The former would probably gain revenue in the first 2 years but lose that revenue and more, most likely within the following 3 years. H.R. 3090, passed by the House, would lower the top tax rate from 20% to 18% for assets held at least a year. The Senate Finance Committee version of H.R. 3090, does not reduce capital gains taxes. A capital gains tax cut appears the least likely of any permanent tax cut to stimulate the economy in the short run; a temporary capital gains tax cut is unlikely to...

Federal Regulatory Reform: An Overview

Enron and Stock Analyst Objectivity

Stock analysts provide research on companies and make recommendations on their stocks. When analysts are employed by brokerage firms and provide information for the firms’ retail and institutional clients, they are called sell-side analysts. Analysts who work specifically for institutional investors like mutual and pension funds are known as buy-side analysts. Because of their widespread presence

in the national media, sell-side analysts’ recommendations have become part of the public domain and they can have significant influence on stock prices. This report examines the performance of...

Employer Stock in Retirement Plans: Investment Risk and Retirement Security

This CRS Report begins by describing the shift from traditional defined benefit pensions to defined contribution plans – like the 401(k) – that has occurred over the last 20 to 25 years. It then summarizes recent research findings on the extent to which employees’ retirement savings are invested in employer stock. The third section of the report outlines the provisions of federal law that define an employer’s duty to manage its retirement plan in the best interest of the plan’s participants. The report concludes with a summary of pension reform legislation passed by the House of...

Major Tax Issues in the 107th Congress

Ergonomics in the Workplace: Is It Time for an OSHA Standard?

Improper ergonomic design of jobs is one of the leading causes of work-related illness, accounting for perhaps a third of employers’ costs under state workers’ compensation laws. Due to the wide variety of circumstances, however, any comprehensive standard would probably have to be complex and costly, while scientific understanding of the problem is not complete.

Ergonomics in the Workplace: Is It Time for an OSHA Standard?

Faith-Based Organizations and Their Relationship with State and Local Governments: Analysis of Recent Initiatives

This report discusses federal, state, and local government funding for faith-based organizations (FBOs) to provide services to needy citizens. It provides an overview of several selected issues including the effectiveness of FBOs, their accountability for results, and the working relationship that FBOs have at various levels of government.

House and Senate Vacancies: How Are They Filled?

This report discusses how vacancies in Congress are filled when a Senator or Representative dies, resigns, declines to serve, or is expelled or excluded from either house. The Constitution requires that vacancies in both houses be filled by special election, but in the case of the Senate, it empowers state legislatures to provide for temporary appointments by the state governor until special elections can be scheduled.

House and Senate Vacancies: How Are They Filled?

Vacancies in Congress occur due to the death, resignation, or declination (refusal to serve) of a Senator or Representative, or as the result of expulsion or exclusion by either house. The Constitution requires that vacancies in both houses be filled by special election, but in the case of the Senate, it empowers state legislatures to provide for temporary appointments by the state governor until special elections can be scheduled. This report describes this process.

Patent Law and Innovation: The Creation, Operation and a Twenty-Year Assessment of the U.S. Court of Appeals for the Federal Circuit

The U.S. Court of Appeals for the Federal Circuit ("Federal Circuit") is a specialized court with exclusive appellate jurisdiction over patent appeals. Congress established the Federal Circuit in 1982 in order to promote predictability and uniformity in the patent law. Now that the Federal Circuit has celebrated its twentieth anniversary, it is appropriate to consider the influence of the court upon patent law and, more generally, the climate for innovative industry within the United States. A number of commentators believe that the Federal Circuit has strengthened the economic, legal...

Committee System Rules Changes in the House, 108th Congress

This fact sheet details changes in the committee system contained in H.Res. 5 , the rules of the House for the 108th Congress, adopted by the House January 7, 2003. (1) The fact sheet will not be updated unless further rules changes for the 108th Congress are adopted. 1.  The resolution agreed to by the House, H.Res. 5 , also changed the rules affecting floor procedure. These changes are described in CRS Report RS21388(pdf) , House Rules Changes Affecting Floor Proceedings in the 108th Congress . The resolution also made technical and grammatical changes to the House rules.

House Rules Changes Affecting Floor Proceedings in the 108th Congress

On the first day of the 108th Congress, the House agreed to H.Res. 5 , which made several rules changes affecting floor proceedings. The 108th Congress was the first Congress to convene after the terrorist attacks of September 11, 2001, and the House modified three rules to prepare for a catastrophic event. In addition, the House adjusted its rules regarding motions to instruct conferees and the admission of electronic devices on the floor. It also repealed the term limit on the Speaker. The House clarified rules concerning the access of leadership staff to the floor, five-minute voting...

U.S. Bilateral Assistance to Russia: 1992-2002

For more than ten years, the U.S. program of foreign assistance to Russia has supported three aims -- security , by promoting nuclear and chemical weapons nonproliferation activities; stability , by supporting a range of programs to create a democratic and economically prosperous Russia that would be a cooperative member of the international community; and humanitarian relief , reflecting traditional American values. Since it was launched, the Russia foreign aid program has been subject to considerable criticism. Some argued the amount of funding was too little, too late; others that...

Tax Activity in the 107th Congress

After passing a major multi-year tax cut in Mid-2001 (which was sunsetted after 10 years) and a stimulus bill in 2002, Congress considered, but did not complete, work on energy tax subsidies, tax incentives for charitable giving deductions, pension diversification in the wake of the ENRON problems, and tax shelters. The House passed several bills that would make the multiyear tax cut permanent as well as a bill to speed up certain provisions. This report will not be updated.

Sports Legislation in the 107th Congress

As a result of increasing conflict within the sports industry over the past few decades, Congress and other federal agencies have given greater attention to public policy issues associated with amateur and professional sports in the United States. Congress has focused on sports in the context of related public policy areas. These areas are: antitrust, labor relations, immigration, player and fan violence, broadcasting and cable issues, taxation, drug abuse and testing, federal spending relative to the conduct of U.S.-held Olympic Games, sports franchise relocations, legal and illegal...

Terrorism Preparedness: Catalog of Selected Federal Assistance Programs

Export Administration Act of 1979 Reauthorization

The Export Administration Act of 2001 was introduced on January 23, 2001. Hearings were held by the Senate Banking, Housing, and Urban Affairs Committee, and the bill was reported for consideration by the full Senate by a vote of 19-1 to March 22, 2001. A companion version in the House, H.R. 2581, was introduced by Rep. Gilmanon July 20, 2001. The House International Relations Committee reported the measure with 35 amendments on August 1. The Export Administration Act of 1979 expired on August 20, 2001, however the President extended export control authority and the Export Administration...

The Military Draft and a Possible War with Iraq

Since the possibility of a second major war with Iraq became apparent in mid-2002, interest and concern about a return to the draft have manifested themselves for the first time since the 1991 Persian Gulf War. As was the case in 1991, a review of military manpower levels and potential war scenarios suggests that only a prolonged war, with major military reverses for U.S. forces, or new international developments creating the need for substantially larger armed forces, would result in a military requirement to reinstitute the draft. Virtually all proposed scenarios for a war with...

Congressional Budget Actions in 2002

During the second session of the 107th Congress, the House and Senate will consider many different budgetary measures. Most of these measures will pertain to FY2003 (which will begin on October 1, 2002) and beyond, but some may make adjustments to the budget for FY2002. As the congressional session progresses, this issue brief will describe House and Senate action on major budgetary legislation within the framework of the congressional budget process and other procedural requirements.

Government Performance and Results Act: Overview of Associated Provisions in the 106th Congress

The Government Performance and Results Act of 1993 (P. L. 103-62, known as GPRA, or the Results Act) established a new framework for performance management and budgeting in federal agencies. In complying with GPRA, agencies must set goals, devise performance measures, and assess results achieved. This report identifies and analyzes provisions in public laws and committee reports from the 106th Congress (1999-2000) relating to GPRA and its implementation, including comparisons to similar provisions in the 104th and 105th Congresses. The purpose of these studies is to review ways in which...

State and Local Preparedness for Terrorism: Selected Policy Issues

Cloture Attempts on Nominations

Cloture is the only means by which the Senate can vote to limit debate on a matter, and thereby overcome a possible filibuster. Until 1949, cloture could not be invoked on nominations, and before 1980 this action was attempted only twice. From 1949 through 2002, cloture was sought on 35 nominations, and invoked on 21. Only three of the 35 nominees were not confirmed; all three were among those on whom the Senate rejected cloture. Except in the 103rd Congress (1993-1994), most of the nominations involved have been judicial. The 103rd and 107th Congress are the only ones in which cloture was...

2001 Tax Cut: Description, Analysis, and Background

A major tax cut, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), was enacted in June 2001. This report summarizes the provisions of the bill, analyzes effects, and considers the development of the legislation.

Latin America and the Caribbean: Legislative Issues in 2001-2002

This report provides an overview of the major legislative issues Congress dealt with in 2001 and 2002 relating to Latin America and the Caribbean. Organized by the regions and subregions of the Western Hemisphere, the report provides reference and linkages to other reports covering the issues in more detail. The importance of the region to the United States has been emphasized by President Bush's trips to Mexico in February 2001 and March 2002 and his trips to Peru and El Salvador in March 2002, and by a number of congressional trips to the region. At the hemispheric level, the major...

Developing Countries: Definitions, Concepts and Comparisons

What is a developing country? How does one know whether a country is actually developing or not? This report looks at this issue from several perspectives. Using a series of reports by various organizations, it shows how countries rank in their levels of development according to different criteria. Countries ranking high according to one measure may rank lower according to another. It was once commonly believed that raising a country's average per capita income level would lead to improvements in most other areas. Time and experience have shown, however, that social conditions and the...

Membership of the 107th Congress: A Profile

Securities Fees and SEC Pay Parity

Federal Grants to State and Local Governments: Overview and Characteristics

Each fiscal year, Congress appropriates funds for grants to state and local governments to further national goals and assist state and local government operations. Examples of goals include attaining minimum national standards and improving program effectiveness. The federal government provides grants for numerous substantive purposes, such as crime prevention, community development, and transportation. In FY2001, grants to state and local governments totaled $317 billion. Grants can be classified by the substantive purposes they address. This report, however, reviews the...

New IMF Conditionality Guidelines

Department of Homeland Security: Appropriations Transfer Authority

The Administration’s proposals regarding appropriations transfer authority have sparked controversy and engendered significant modifications in pending legislative proposals. This report defines appropriations transfer authority and explains its legal basis, examines recent congressional practices in this area, and assesses the current proposals regarding appropriations transfer authority for the DHS.

The Budget for Fiscal Year 2002

The Contractor Responsibility Regulation: Needed Clarification or a Potential Blacklist?

This report analyzes the controversy, for the most part now concluded, surrounding a Clinton Administration revision of the Federal Acquisition Regulation to clarify the meaning and application of a statutory requirement that federal contracting officers must determine that a prospective contractor has "a satisfactory record of integrity and business ethics." The new rule issued in the Clinton Administration's final days, instructed contracting officers to consider compliance with a wide range of tax, employment, environmental, antitrust, and consumer protection laws in deciding whether a...

Shutdown of the Federal Government: Causes, Effects, and Process

Budget Enforcement Procedures: Senate Pay-As-You-Go (PAYGO) Rule

The Senate “pay-as-you-go,” or PAYGO, rule generally requires that any legislation increasing direct spending or reducing revenues be offset. A motion to waive the rule requires an affirmative vote of three-fifths of the membership (i.e., 60 Senators if no seats are vacant). Beginning in 1993, six points of order under the PAYGO rule have been raised against an entire bill or an amendment. Of these six points of order, four were sustained and two fell upon the adoption of a waiver motion.

Japan's Economic and Security Challenges

This report provides a snapshot of U.S.-Japan relations, current economic and security challenges facing Japan, and policies being adopted or considered to deal with them. The information was gathered primarily during a trip to Japan in February 2002 and augmented by subsequent research. Japan's economy is beginning to recover from its third recession over the past twelve years. This "lost decade of the 1990s" and slow growth means that Japanese gross domestic product is as much as $1.3 trillion dollars (equivalent to Brazil's GDP) below what it could have been if it had continued to...

Internet Gambling: A Sketch of Legislative Proposals in the 107th Congress

The Internet gambling bill passed by the House on October 1, 2002 ( H.R. 556 )(Reps. Leach & LaFalce), 148 Cong.Rec. H6848, outlaws the acceptance of credit cards, checks, electronic transfers, and the like for purposes of illegal Internet gambling. An amended version of the language approved by the Financial Services Committee and earlier endorsed by the Committee in H.R. 3004 , it enlarges the coverage of the Wire Act to reach gambling-related transmissions by satellite or microwave. It also creates a system of regulation and immunities to ensure the enforcement assistance of...

Value-Added Agricultural Enterprises in Rural Development Strategies

From 1910 to 1990, farmers' share of the overall GDP of the food and fiber system fell from 21% to 5%, while the share contributed by the agricultural input and distribution subsectors rose from 13% to 30%. Congress is concerned about how these and other changes in agriculture are affecting rural America and the role value-added agricultural production might play in future rural economic development strategies. Value-added production is a legislative concern in the 107th Congress; the rural development title in the 2002 enacted farm bill ( P.L.107-171 ) includes provisions for...

The Economic Effects of 9/11: A Retrospective Assessment

The tragedy of September 11, 2001 was so sudden and devastating that it may be difficult at this point in time to write dispassionately and objectively about its effects on the U.S. economy. This retrospective review will attempt such an undertaking. The loss of lives and property was not large enough to have had a measurable effect on the productive capacity of the United States even though it had a very significant localized effect on New York City and, to a lesser degree, on the greater Washington, D.C. area. Thus, for the tragedy to affect the economy it would have had to have affected...

District of Columbia Appropriations Act for FY2003: Comparison of General Provisions of P.L. 107-96 and S. 2809

This report discusses the District of Columbia Appropriations Act for FY2003, as reported by the Senate Appropriations Committee, that does continue existing prohibitions and restrictions on the use of federal and District funds for abortions and medical marijuana.

How Many Commercial Fishermen?

Budget FY2002: A Chronology with Internet Access

This is a select chronology of, and a finding guide for information on, congressional and presidential actions and documents related to major budget events in calendar year 2001, covering the FY2002 budget. Brief information is provided for the President’s budget, congressional budget resolutions, appropriations measures (regular, continuing, supplementals, and rescissions), budget reconciliation, House and Senate votes, line-item vetoes, publications, testimony, charts, and tables.

The National Petroleum Reserve -- Alaska (NPRA)

In May 2002, the United States Geological Survey (USGS) released revised estimates of the oil and gas resources that may lie beneath the surface of the National Petroleum Reserve Alaska (NPRA), an area of more than 20-million acres that lies West of the Arctic National Wildlife Refuge (ANWR). Significantly higher than previous estimates, these numbers may be considered by House and Senate conferees as they seek to reach agreement on a mutually acceptable energy bill ( H.R. 4 ). The House-passed version of omnibus energy legislation, H.R. 4 , would allow oil and gas leasing in ANWR...

Plants, Patents, and Seed Innovation in the Agricultural Industry

Agricultural research and seed distribution systems within the United States have become increasingly privatized. Private plant breeders have turned to the intellectual property system on the grounds that research and development expenses should be recovered. Intellectual property laws allow innovators to appropriate the benefits of their inventions by excluding others from reproducing and selling the protected subject matter. In recent years, plant breeders have pursued intellectual property rights through three different statutes. The Patent Act of 1952 allows inventors to obtain...

Postal Service Financial Problems and Stakeholder Proposals

The Vietnam-U.S. Bilateral Trade Agreement

On July 13, 2000, U.S. and Vietnamese negotiators signed a sweeping bilateral trade agreement (BTA). Following affirmative votes in Congress and the Vietnamese National Assembly, the BTA entered in into force on December 10, 2001, when the two countries formally exchanged letters implementing the agreement. Under the deal, the U.S. will extend temporary most-favored nation (MFN, also known as normal trade relations [NTR] status) status to Vietnam, a step that will significantly reduce U.S. tariffs on most imports from Vietnam. The World Bank has estimated that Vietnam's exports to the...

Textile and Apparel Trade Issues

Supplemental Appropriations for FY2002: Combating Terrorism and Other Issues

On March 21, 2002, President Bush requested $27.1 billion in emergency supplemental funding to continue the war on terrorism and provide additional assistance for New York City and aviation security as well as other homeland security needs. With the $1.3 billion FY2002 supplemental request for Pell grants in the President's February budget, the Administration's request was $28.4 billion. Although there was broad congressional support for the new supplemental, Congress debated the total spending level, the amount for homeland security, and inclusion of budget ceilings for FY2003, as well...

WorldCom: The Accounting Scandal

Passthrough Organizations Not Taxed As Corporations

This report describes the various forms of tax conduit organizations found in the Internal Revenue Code (IRC), or the Internal Revenue Services (IRS) regulations and discusses how the form of organization affects the tax situation of the owners. It is organized according to the major types of conduit organization.

Russian National Security Policy After September 11

Russian President Putin appears to have made a strategic decision to shift Russian policy toward cooperation with the United States and the West. This is a major departure from the policy that Putin inherited from his predecessors, which saw Russia as the leader of a coalition aimed at opposing U.S. "global domination." Putin seized upon the events of September 11 to promote his new policy by: cooperating with the United States against Al Qaeda and the Taliban regime in Afghanistan; softening Russian opposition to NATO enlargement, including admission of former Soviet republics, and...

NAFTA: Economic Effects on the United States After Eight Years

The North American Free Trade Agreement (NAFTA) among the United States, Canada and Mexico went into effect on January 1, 1994. It is the first trade agreement the United States has entered into with a geographically-close developing country and has raised concerns about its economic effect, particularly on U.S. communities and workers. Since the mid-1980s, when Mexico began reducing trade restrictions, the U.S. and Mexican economies have become more highly integrated. This is evidenced by the rapid growth in U.S. merchandise trade with Mexico, which is now 12% of all U.S. trade (up...

A Shortage of Registered Nurses: Is It on the Horizon or Already Here?

The largest traditionally female-dominated health care occupation is registered nurses (RNs). It has been asserted that there is an ongoing nationwide shortage of RNs of various kinds and in various sectors of the health care services industry. Before the latest (mid-2002) release of supply-demand projections from the U.S. Health Resources and Services Administration (HRSA), it was estimated, based in whole or part on 1996 HRSA projections, that there would likely be a shortage of RNs in 2007 or shortly thereafter.

This report first will analyze recent trends in the RN labor market and...

Agriculture: A List of Websites

This list provides a sampling of the rapidly proliferating number of agricultural resources available on the Internet. It is not intended to be exhaustive. It is divided into 24 main categories and 16 subcategories.

U.S. Taxation of Overseas Investment

Informing Congress: The Role of the Executive in Times of War and Military Conflict, 1941-2001

Under the Constitution of the United States, the President is responsible for prosecuting war and directing the armed forces during military conflicts, including attacks upon the nation. Congress is constitutionally empowered to declare war, may otherwise authorize the involvement of American armed forces in military conflict, appropriates funds for government activities and operations, including military actions, and engages in oversight to assess the extent to which government operations have been efficiently, economically, and effectively conducted using appropriated funds. Congress...

Terrorism: The New Occupational Hazard

Federal Interagency Coordinative Mechanisms: Varied Types and Numerous Devices

Interagency coordinative mechanisms at the federal level have become more prominent and prevalent recently. The Office of Homeland Security (OHS) and the companion Homeland Security Council (HSC), along with proposals for change, are the most visible. Other examples not only include such well-known entities as the National Security Council (NSC) and the so-called “drug czar” but also extend to a multiplicity of nearly anonymous working groups and task forces. Some of them have short life spans, while others have remained in place for long periods.

Seven different types of interagency...

Latino Political Participation and Representation in Elective Office

America's Latino population is on the verge of becoming the largest minority group in the country, a phenomenon that is significant with respect to the representational responsibilities of Members of Congress. After several decades of rapid population growth, Latinos will surpass African Americans as the largest minority group within the decade, according to the Census Bureau projections. By 2010, Latinos are projected to be 13.8% of the national population (African Americans are projected to be 13.5%), and 16.3% of the population a decade later. However, Latino voting participation...

Auditing and Accounting Regulation: Key SEC Powers

Key auditing and accounting reform legislation, S. 2673 (Sarbanes), and H.R. 3763 (Oxley), and proposals for auditor oversight by the Securities and Exchange Commission (SEC) have been launched to help restore public confidence in a system of corporate financial accounting tainted by accounting fiascos at companies like Enron, Tyco, and Worldcom. This report provides background on significant current SEC regulatory powers in the area of accounting and auditing. It will be updated if there are changes in SEC authority.

Electronic Payments and the U.S. Payments System

This report provides a framework for understanding the paper-based and electronic components of the current U.S. payments system. It begins with a basic overview of the payments system, explaining the relative size and growth of various methods of payment. The report discusses paper-based payments and then examines the operations of wholesale and retail electronic payments. Finally, the report discusses some of the major policy issues concerning the regulation and supervision of electronic payments.

Federal Disaster Policies After Terrorists Strike: Issues and Options for Congress

This report is intended to assist Congress as it considers options for consequence management legislation. It provides information on federal policies that would be implemented in the event that terrorist attacks in an attempt to answer the question: Based on experiences gained thus far, should Congress consider changes in federal consequence management policies to address the effects of possible future attacks? The report explores two types of issues--selected administrative issues pertinent to the delivery of assistance, and selected policy issues about the assistance provided.

Cuba: An Economic Primer

This report provides an overview of the Cuban economy. Recent congressional interest in Cuba has centered on the partial lifting of trade sanctions on agricultural products and medicine. The 107th Congress may consider further easing of sanctions or other alterations to the trade embargo in effect since 1962. The paper first presents a brief historical overview of the Cuban economy. This history is characterized by dependence on major powers: first Spain, then the United States, and then the Soviet Union. The report then charts the different, and often conflicting, economic policy courses...

Colombia: The Uribe Administration and Congressional Concerns

On August 7, 2002, President-elect, Alvaro Uribe Velez, age 49, is scheduled to take office amid an intensifying conflict. Uribe's election has been widely attributed to his law-and-order campaign promises to pursue the guerrillas vigorously by increasing Colombia's military budget, doubling the size of the military to 100,000, and creating a one-million man civilian militia to aid the Colombian military, as well as to the worsening security situation in Colombia. Nevertheless, Uribe's campaign slogan, "Firm Hand, Big Heart," also reflected the social concerns that have marked his 20-plus...

The Budget for Fiscal Year 2002

This report discusses the budget for fiscal year 2002. The congress debates issues such as budget action, receipts surpluses or deficits, and the economy

Klamath River Basin Issues: An Overview of Water Use Conflicts

Severe drought in 2001 affected the Klamath River Basin, an area on the California-Oregon border, exacerbating competition for scarce water resources and generating conflict among several interests -- farmers, municipal and industrial users, commercial and sport fishermen, other recreationists, federal wildlife refuges, environmental groups, and Indian Tribes. The conflicts over water distribution and allocation are physically and legally complex, reflecting the varied and sometimes competing uses of limited water supplies in the Upper Basin.

On April 6, 2001, the Bureau of Reclamation...

The Black Lung Benefits Program

Terrorism Insurance - The 2002 Marketplace

House and Senate Committee Organization and Jurisdiction: Considerations Related to Proposed Department of Homeland Security

The creation of a Department of Homeland Security, along the lines proposed by the Administration, would affect the jurisdiction of numerous House and Senate committees. In addition, the expansiveness of the proposal may cause Congress to consider using alternative procedures and structures to review the proposal and to monitor the implementation of such a new department. This report discusses the current legislative jurisdictions of House and Senate committees with responsibility over terrorism, homeland security, and the agencies affected by the proposed new department. It also...

The Canadian Financial System

Patent Administration: Current Issues and Possibilities for Reform

The United States Patent and Trademark Office ("USPTO") examines patent applications to determine whether the subject matter claimed within those applications is sufficiently inventive to merit the award of a patent. The environment in which patent examination occurs has become increasingly challenging. The USPTO is facing an escalating rate of patent application filings as well as applications of increasing technical complexity. Other potential concerns include budgetary constraints and the retention of personnel with appropriate technical and legal qualifications to perform patent...

Africa: Scaling Up the Response To the HIV/AIDS Pandemic

Sub-Saharan Africa's AIDS pandemic continues to spread -- an estimated 3.4 million people were newly infected by HIV in 2001. International resources for combating the pandemic are increasing, and there is continuing interest in proposals for a further "scaling-up." In December 2001, the House passed the Global Access to HIV/AIDS Prevention, Awareness, and Treatment Act ( H.R. 2069 ), finding that the African pandemic has become a national security and development crisis and authorizing increased funding. AIDS experts see three dimensions to the effort to curb the spread of HIV/AIDS and...

Steel Industry and Trade Issues

Discretionary Spending Limits for FY2002: A Procedural Assessment

This report discusses discretionary spending, which is provided in annual appropriations acts, is constrained in part by limits set in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

China's Banking Reforms: Background and Issues for Congress

The Peoples Republic of China's entry into the World Trade Organization (WTO) will require that it open its financial services sector to foreign investment and international competition. In preparation for a more market-based banking system, China has announced reforms intended to strengthen its banks and American investors have been buying portfolios of Chinese non-performing loans. The international community has a stake in Chinese financial reform primarily for three reasons. The first is to prevent contagion -- to keep a failure of Chinese banks from touching off global financial...

Renewal Communities Initiative: Background and Overview

This report discusses the Renewal Communities (RC) Initiative, which combines tax credits and other provisions designed to revive some of the nation’s more impoverished areas.

Election Reform Legislation: Comparison of House and Senate Versions of H.R. 3295

In the wake of the November 2000 presidential election, Congress, the states, and various commissions have examined election procedures, the reliability and costs of different voting technologies, whether national standards are necessary, and the federal role in the election process. More than 80 bills addressing various aspects of federal election reform have been introduced in the 107th Congress. One bill, H.R. 3295 , has passed the House and Senate in different forms and is awaiting conference. The Help America Vote Act (Ney-Hoyer), passed the House on December 12, 2001. The Martin...

Sierra Leone: Transition to Peace

On May 14, 2002, Sierra Leoneans voted in the first national elections to be held since 1996, following an extensive, United Nations (U.N.)-assisted poll preparation process. The election followed the successful completion of a U.N.-sponsored national disarmament process in January 2002, when government, U.N., and RUF officials formally declared an end to Sierra Leone's decade-old conflict. Initial poll results indicated that President Ahmad Tejan Kabbah, the incumbent, would win the election, but he reportedly garnered less than 20 % of the military vote. A special court of mixed...

Auditor Oversight: Proposals for New Regulator

This report provides basic background information on current regulation of auditors and summarizes alternatives now under consideration. Reforms proposed by Congress and the executive branch focus on oversight of the independent auditor, whose responsibility (in the broadest sense) is to certify that a corporation’s accounting statements reflect its true financial condition.

Appropriations for FY2002: Legislative Branch

Conferees on the FY2002 legislative branch appropriations bill agreed to $2.97 billion for legislative branch operations, an 8.9% increase over the FY2001 funding level of $2.73 billion ( P.L. 107-68 ). Total FY2002 funding made available for the legislative branch is $3.23 billion, when including emergency response funds transferred pursuant to P.L. 107-117 , the FY2002 Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks (in Division B, chapter 9). P.L. 107-68 contains funds for 79 new Capitol Police positions, funds for Capitol Police...

Telework in the Federal Government: Background, Policy, and Oversight

Advances in information and computer technology; the development of the Internet; and the explosion of wireless and digital products, including powerful laptops, hand-held electronic devices, and remote work-access capabilities, have given some federal employees the ability to telework -- work anytime from almost anyplace. Telework emerged as an option for the federal workforce over the last decade. Management considerations, such as productive and satisfied workers; environmental considerations, such as reduced traffic congestion and improved air quality; and quality of...

Techniques for Preventing a Budget Sequester

This report briefly describes the budget sequestration process, including the ways in which a sequester could be avoided under the regular process, and then discusses in more detail various techniques that have been used since FY1991 to prevent a sequester by intervening in the regular process.

Business Investment and a Repeal of the Corporate Alternative Minimum Tax

With the U.S. economy either stuck in a recession or entering what some analysts anticipate will be a protracted period of sluggish recovery, Congress is considering various proposals to stimulate the economy. One such proposal -- H.R. 3090 , which the House narrowly passed on October 24, 2001-- contains a variety of individual and business tax cuts, including a repeal of the corporate alternative minimum tax (CAMT). This report assesses the likely stimulative effect of repealing the CAMT. A central aim of the CAMT is to prevent corporations that report substantial profits...

What if the National Debt Were Eliminated? Some Economic Consequences

Appropriations for FY2002: Commerce, Justice, and State, the Judiciary, and Related Agencies

This report tracks action by the 107th Congress on FY2002 appropriations for the Departments of Commerce, Justice, and State, the Judiciary, and other related agencies (often referred to as CJS appropriations). President Bush's FY2002 budget request totals $40.81 billion, about one billion dollars (2.6%) above the FY2001 total. The House agreed to $41.46 billion, the committee total, and passed the bill ( H.R. 2500 ) on July 18th. The Senate Appropriations Committee recommended a total of $41.53 billion ( S. 1215 ). The Senate passed its version of H.R. 2500 , as amended, on September 13,...

Terrorism: Near Eastern Groups and State Sponsors, 2002

The Al Qaeda terrorist network founded by Osama bin Laden is believed to pose a continuing, although diminished, threat to the United States at home and to U.S. interests and allies abroad following the network's defeat in its base in Afghanistan. As stated in taped appearances by its leaders since the September 11, 2001 terrorist attacks on the World Trade Center and the Pentagon, the goal of Al Qaeda is to destroy high profile U.S. targets in order to end what Al Qaeda claims is U.S. suppression of Islamic societies. In these appearances, bin Laden virtually claimed responsibility for...

House Leadership: Whip Organization

The whip system performs two primary functions: to take responsibility for the mobilization of party Members for key votes and to serve as a conduit for information between party leaders and party Members.

Unemployment and Economic Growth

Appropriations for FY2002: Foreign Operations, Export Financing, and Related Programs

The annual Foreign Operations appropriations bill is the primary legislative vehicle through which Congress reviews the U.S. foreign aid budget and influences executive branch foreign policy making generally. It contains the largest share -- over two-thirds -- of total U.S. international affairs spending. President Bush requested $15.167 billion for FY2002 Foreign Operations, an amount 1.5% higher than enacted FY2001 appropriations. By comparison, foreign policy resources proposed for State Department, U.N. contributions, and other non-foreign aid activities would increase by 13.2% from...

Appropriations and Authorization for FY2002: Defense

On June 27, the Administration submitted an amended fiscal year 2002 defense budget request to Congress. The request totaled $343.5 billion in funding for the national defense budget function, $32.9 billion above the amount originally enacted for FY2001, an 11% increase. The total included funding for the Department of Defense and for defense-related activities of the Department of Energy and other agencies. Both House and Senate versions of the DOD appropriations bill provided the total for national defense that the Administration requested. To accommodate that level, Congress adjusted...

Paying Down the Federal Debt: A Discussion of Methods

Appropriations for FY2002: Interior and Related Agencies

The Interior and Related Agencies Appropriations bill includes funds for the Department of the Interior (DOI), except the Bureau of Reclamation, and funds for some agencies or programs within three other departments--Agriculture, Energy, and Health and Human Services. It also funds numerous smaller agencies. On April, 9, 2001, President Bush submitted his FY2002 budget for Interior and Related Agencies, totaling $18.19 billion compared to the $19.07 billion enacted for FY2001 ( P.L. 106-291 ). These figures reflect scorekeeping adjustments. (See Table 10 and Table 11 ). Title VIII...

Patent Quality and Public Policy: Issues for Innovative Firms in Domestic Markets

The administration of United States Patent and Trademark Office ("USPTO") concerns issues of resource availability and management, as well as need to identify and prioritize the goals of federal patent examination procedures. This report focuses upon this latter issue. There are currently at least three competing views concerning USPTO priorities. One position is that the USPTO should aim to achieve a high level of patent quality. Government, industry, academia and the patent bar alike have traditionally agreed that the USPTO approve only those patent applications that fully describe...

Campaign Finance Bills in the 107th Congress: Comparison of S. 27 (McCain-Feingold), H.R. 2356 (Shays-Meehan), H.R. 2630 (Ney-Wyn), and Current Law

S. 27 (McCain-Feingold), the Bipartisan Campaign Reform Act of 2001, was introduced January 22, 2001 in a form similar to prior versions of the last two Congresses. On April 2, after a two-week debate and adoption of 22 amendments, the Senate passed S. 27 by a vote of 59-41. That measure’s companion Shays-Meehan bill, the Bipartisan Campaign Finance Reform Act of 2001, was initially introduced as H.R. 380 in a form similar to House-passed versions of the prior two Congresses; on June 28, the bill was modified and offered as H.R. 2356. H.R. 2360 (Ney-Wynn), the Campaign Finance Reform and...

The Budget for Fiscal Year 2001

Extending the Internet Tax Moratorium and Related Issues

The Internet Tax Freedom Act, enacted in 1998, placed a 3-year moratorium on the ability of state and local governments 1) to impose new taxes on Internet access or 2) to impose multiple or discriminatory taxes on electronic commerce. It grandfathered existing taxes on Internet access. The original moratorium expired on October 21, 2001. Numerous bills to extend the moratorium were introduced in the first session of the 107th Congress. The Congress approved H.R. 1552 (P.L. 107-75, enacted November 28, 2001) which extended the prior moratorium by 2 years, until November 1, 2003.

Appropriations for FY2002: Treasury, Postal Service, Executive Office of the President, and General Government

The Treasury, Postal Service, Executive Office of the President, and General Government FY2002 appropriation, P.L. 107-67 , totals $32.4 billion. Congressional Budget Office scorekeeping puts the totals at $32.8 billion ($15.7 billion mandatory and $17.1 discretionary. The House passed an appropriation totaling $32.7 billion. The Senate-passed bill would have funded the accounts at $32.8 billion. The conference agreement would provide a 4.6% pay adjustment in January 2002 for federal civilian employees. Several of the accounts within the bill are also receiving funding through...

Enron: Selected Securities, Accounting, and Pension Laws Possibly Implicated in its Collapse

This report takes a brief look at some of the federal statutes concerning finance that the Congress and the Executive branch may focus on in their investigations. The report considers three major areas: the federal securities laws, the federal pension laws, and accounting standards.

Tax Changes Affecting Installment Sales

Disadvantaged Businesses: A Review of Federal Assistance

It is the policy of the federal government to encourage the development of small disadvantaged businesses (SDBs) owned by minorities and women. SDBs are statutorily defined as small businesses that are owned and controlled by socially and economically disadvantaged individuals who have been subjected to racial or ethnic prejudice or cultural bias and who have limited capital and credit opportunities. This report presents an overview of the major federal programs now in existence and indicates where interested persons can obtain further information about specific programs.

Energy Independence: Would It Free the United States From Oil Price Shocks?

Over the past 25-years, the U.S. economy has experienced four large oil price shocks (1973-74, 1979-80, 1990-91, and 1999-2000). Each has been a catalyst for discussions about a proper national energy policy. Many analysts have suggested that energy independence should be an integral part of such a policy. Both major party candidates for president in the 2000 election expressed similar views. However, U.S. suppliers of energy participate in the world energy market. So long as prices are determined in that market, energy independence will not free the United States from oil price shocks.

Appropriations for FY2002: District of Columbia

On December 21, 2001, President Bush signed into law the District of Columbia Appropriations Act for FY2002, P.L. 107-96 (formerly H.R. 2944 ). Two weeks earlier, the House on December 6, 2001, and the Senate on December 7, 2001, approved the conference report accompanying H.R. 2944 , after resolving significant differences in the general provisions of their respective versions of the act. The act, which appropriates $408 million in special federal payments, includes $16 million for reimbursement to the District for the cost of providing security for a cancelled World Bank and...

Colleges and Universities Attended by Senators of the 107th Congress

This report identifies the colleges and universities attended by Senators serving in the 107th Congress. Where available in published sources, the degrees earned are also listed.

Small Business Administration: Overview and Issues

Small Business Administration: Overview and Issues

The Arctic National Wildlife Refuge: The Next Chapter

This report discusses the ongoing debate about whether or not to open the Arctic National Wildlife Refuge (ANWR) for energy development. The report discusses arguments for and against such development and focuses especially on related pieces of legislation that directly affects the future of the ANWR.

The Office of Attending Physician in the U.S. Congress

The Office of Attending Physician (OAP) was established by congressional resolution in 1928 to meet the medical needs of Members of Congress. (1) Over the years, the services offered by the office have expanded. During the anthrax scare on Capitol Hill in 2001, it coordinated all the testing of the Capitol complex as well as the care and treatment of Members and staff who may have been exposed to the bacteria. The office has always been headed by a naval officer who is a physician. Six Navy doctors have served as attending physician. (2) The staffing and funding of the office have...

Terrorism: Section by Section Analysis of the USA PATRIOT Act

The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act, P.L. 107-56 , is part of the Congressional response to September 11. It is the merger of two similar bills. S. 1510 passed the Senate on October 11, 147 Cong.Rec. S10604, and H.R. 2975 passed the House on October 12 after substituting the language of H.R. 3108 for its text, 147 Cong.Rec. H6775. Having informally resolved their differences, the House enacted the measure in final form on October 24, 147 Cong.Rec. H7282, and the Senate on October...

Appropriations for FY2002: VA, HUD, and Independent Agencies (P.L. 107-73)

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittee on VA, HUD, and Independent Agencies.

International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, Title III of P.L. 107-56 (USA PATRIOT Act)

Title III, of the USA PATRIOT Act, P.L. 107-56 ( H.R. 3162 ), 115 Stat. 272 (2001), the "International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001," contains three subtitles that deal with: International Counter Money Laundering and Related Measures; Bank Secrecy Act Amendments and Related Improvements; and, Currency Crimes and Protection. It contains a list of 10 findings and 13 purposes, relating the scope of international money laundering to the financing of global terrorism and focusing on problems in the international banking system that have facilitated...

Appropriations for FY2002: U.S. Department of Agriculture and Related Agencies

This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on Agriculture by summarizing the current legislative status of the bill, its scope, major issues, funding levels, and related legislative activity. The report also lists the key CRS staff relevant to the issues covered and related CRS products.

Small Business Disaster Assistance: Responding to the Terrorist Attacks

The Economic Effects of Spending on Homeland Security

One direct result of the terrorist attacks of September 11 is that the cost of domestic security has risen. That increased cost is likely to be in the form of increased outlays on the military, as well as increases in spending for domestic law enforcement, public safety, and private security services. This report briefly discusses the economic effects of this increased cost looks into how security affects GDP.

Global Financial Turmoil, the IMF, and the New Financial Architecture

The economies of the world appear to be heading into a simultaneous slowdown and possible global recession that could bear significant consequences for U.S. and world employment, government finances, stock markets, international trade, and capital flows. The poor economic outlook has been clouded even further following the terrorist attacks on September 11, 2001. There has been a sharp curtailment of activity in industries such as travel and tourism, a drop and slow recovery in stock markets, and sagging consumer confidence not only in the United States but in numerous other countries. ...

Research and Development Funding: Fiscal Year 2002

China's Maritime Territorial Claims: Implications for U.S. Interests

The relatively shallow and resource-rich waters surrounding the People's Republic of China (PRC) are of growing economic and strategic importance, yet they often remain invisible in the American foreign policy process. The United States, along with most of the international community, regards these as international waters, through which approximately half of the world's sea-going commercial shipments pass each year. Consequently, a primary U.S. economic and strategic objective in the region has been the maintenance of freedom-of-navigation through these waters. But apart from their...

China's Foreign Conventional Arms Acquisitions: Background and Analysis

This CRS Report examines the major, foreign conventional weapon systems that China has acquired or has committed to acquire since 1990, with particular attention to implications for U.S. security concerns. It is not the assumption of this report that China's military, the People's Liberation Army (PLA), will engage in conflict with other forces in Asia. Nonetheless, since the mid-1990s, there has been increasing concern about China's assertiveness in Asia and military buildup against Taiwan. Since 1990, China has acquired or sought to acquire select types and modest quantities of modern...

The Changing Structure of Agriculture and Rural America: Emerging Opportunities and Challenges

When agricultural production and related businesses dominated rural economies, policies that strengthened and improved agriculture tended to strengthen and improve the well-being of most of America's small communities and rural residents. As the strength of this linkage declined over the past century, many have felt that rural policy has been left largely fragmented and unfocused, comprising a patchwork of programs and initiatives rather than a coherent policy. Yet agriculture remains the primary policy framework for Congress's consideration of rural issues. Significant changes are...

China: Labor Conditions and Unrest

China's labor conditions have become a key variable affecting its domestic politics and economic policies, U.S. human rights policies toward China, and U.S.-China trade. Deepening economic reforms in the People's Republic of China (PRC) since the early 1990s have imposed hardships upon many urban industrial workers, who were once among the most economically-privileged social classes in the country. While raising living standards for many Chinese, the reforms have eroded the material well-being and job security of many workers in state-owned enterprises (SOEs). Bankruptcies of many SOEs...

Federal Hiring Flexibilities for Emergency Situations: Fact Sheet

n the aftermath of the September 11, 2001 attacks on the World Trade Center and the Pentagon, the Office of Personnel Management (OPM), in a September 13, 2001 memorandum to executive branch agencies, identified various hiring flexibilities that can be used to meet staffing needs in emergency situations. This report provides information on each of the flexibilities.

Reserve Funds in the FY2002 Budget Resolution

Nuclear Sanctions: Section 102(b) of the Arms Export Control Act and Its Application to India and Pakistan

Section 102(b) of the Arms Export Control Act (AECA) requires the President to impose sanctions on any country that he has determined is a "non-nuclear-weapon state" and has received or detonated a "nuclear explosive device." Sanctions include prohibitions on foreign assistance; munitions sales and licenses; foreign military financing; government credits, guarantees, and financial assistance; U.S. support for multilateral financial assistance; private bank lending to the affected government; and exports of certain specific controlled goods and technology. Specific exceptions exist...

Japan's "Economic Miracle": What Happened?

What happened to Japan's "economic miracle?" Since the 1990s, Japan has been experiencing slow economic growth, income contraction, and recession along with high unemployment and other problems. These trends since the 1990s compare starkly with the 1970s and 1980s, when Japan's rapid economic growth and development drew admiration from much of the world, including many in the United States, and thrust Japan into the elite club of major industrialized countries. Japan even became established in the minds of some as a model for economic growth and development for other economies to follow,...

The 2002 Farm Bill: Overview and Status

Sequestration Procedures Under the 1985 Balanced Budget Act

The sequestration process, which involves automatic, largely across-the-board spending reductions made toward the beginning of the fiscal year, was established under the Balanced Budget and Emergency Deficit Control Act of 1985 as a means of enforcing deficit targets. The Budget Enforcement Act of 1990 amended the 1985 act to supersede the deficit targets with two new enforcement mechanisms--limits on discretionary spending ( i.e. , spending controlled through the annual appropriations process) and a "pay-as-you go" (PAYGO) requirement applicable to legislation affecting direct spending (...

Initial Federal Budget Response to the 1941 Attack on Pearl Harbor

This report discusses initial federal budget response to attack on Pearl Harbor on December 7, 1941, which occurred as the federal government was half way through FY1942.

China's Western Development Campaign

The Peoples Republic of China (PRC) began its economic reform and self-styled "opening up" process more than two decades ago with the hopes of developing the country's backward economy, raising living standards, incomes, and the quality of life of its citizens. Deng Xiaoping, architect of China's economic reforms, stated that during the reform process some Chinese may get rich faster than others, but he believed that the rest of China would benefit from this process. Today, there are many signs that wealth has come to China and its people. The bustling metropolises of Shanghai, Shenzhen,...

The Child Care Workforce

Recess Appointments of Federal Judges

Multinational Patent Acquisition and Enforcement: Public Policy Challenges and Opportunities for Innovative Firms

Globalization and technology have been viewed as increasingly prominent influences upon the U.S. economy. This perception has led to renewed attention towards the pragmatic aspects and policies of multinational patent acquisition and enforcement. Patent protection has long been understood to be a fundamental mechanism for encouraging the pursuit of technological knowledge, particularly for entrepreneurs and small, innovative firms. Recent trends reveal that U.S. industry has come to rely more heavily upon the world's patent systems, as compared to other intellectual property alternatives...

Japan's Banking "Crisis"

The Japanese economy is burdened by an overhang of nonperforming bank loans that are officially recognized to total $367.5 billion but could exceed a trillion dollars if all problem loans are taken into account and economic conditions worsen significantly. These bad loans have weakened Japan's already sluggish economy, undermined the strength of the yen, and are exacerbating the slowdown in Asia's economies. In recent years, Japan has averted a replay of the crisis conditions that accompanied earlier failures of financial institutions, but the problem is immense, and restoring health to...

Congressional Budget Resolutions: Motions to Instruct Conferees

Both the House and the Senate have procedures whereby the full bodies may issue instructions to conferees on budget resolutions, usually in the form of a motion. The practices of the House and Senate regarding such motions differ markedly in key respects. First, the House resorts to such motions regularly (having considered 10 such motions in the past 12 years), while the Senate seldom uses them. Second, the House has considered only one motion per budget resolution, while the Senate considered five motions on one budget resolution. Finally, the House regards the motion to instruct...

U.S. Trade in Financial Services: An Overview

Financial services -- banking, securities, and insurance -- are a key element of the U.S. economy. With international trade in services generally rising, financial services have become a critical element of new and proposed multilateral, regional, and bilateral trade agreements, as well as a source of some disputes with major trading partners. Congress not only oversees this critical industry, but it also has very substantial responsibilities with regard to U.S. trade, trade policy, and trade agreements, of which financial services are today an important part. U.S. policy has been to...

The House of Representatives Apportionment Formula: An Analysis of Proposals for Change and Their Impact on States

This report examines the methods and formulas used to reapportion seats in the House of Representatives following a Census. Although modern Congresses have rarely considered the issue of the formula used in the calculations, this report describes apportionment options from which Congress could choose and the criteria that each method satisfies.

Senate Committee Activity: Action on Measures Referred, 1973-2000

This report discusses the use of committees as crucial centers of policymaking, oversight of federal agencies, and public education is an organizing principle of the contemporary Congress.

Regional Trade Agreements: An Analysis of Trade-Related Impacts

The 107th Congress is currently debating regional trade agreements (RTAs) from two important perspectives directly and in connection with granting the Administration trade negotiating authority. The Congress is directly addressing RTAs via the U.S.-Jordan Free Trade agreement, which has been approved in the House and is under consideration in the Senate. Also, the Bush Administration is negotiating agreements with Chile and Singapore that may be sent to Congress for consideration. In addition, Congress is weighing whether to grant the Administration trade promotion authority (TPA), also...

Formulation of Monetary Policy by the Federal Reserve: Rules vs. Discretion

Would the economy be better off if the responsibility for setting the federal funds rate were taken from Federal Reserve (Fed) Chairman Alan Greenspan and his colleagues on the Federal Open Market Committee (FOMC) and replaced by a simple rule? A surprising number of economists would answer yes. John Taylor, now an Undersecretary of the Treasury, formulated what is now called the "Taylor rule" in which interest rate changes would automatically be based on gaps between inflation and growth and their desired or sustainable long-run rates. Some Members of Congress have expressed a...

Putin's Economic Strategy and U.S. Interests

President Putin has set as a goal the conversion of Russia to a functioning market system in this decade. Without successful reform to develop a functioning market system with sustained growth, the Russian economy is likely to recede in performance toward the level of a developing country. Putin's strategy calls for rapid and comprehensive changes in the structure of the Russian economy, including radical changes in fiscal, financial, enterprise and administrative systems. Whether Putin is able and willing to implement the difficult decisions to bring about successful market reform...

The Marriage Tax Penalty: An Overview of the Issues

Russia's Paris Club Debt and U.S. Interests

Russia faced both fiscal and external debt crises in August 1998. Russia's external debt became unmanageable as the servicing of the debt would have required 80% to 90% of the anticipated federal revenue. These crises threatened Russia's ability to govern and to continue a process of transition to a democratic market system. U.S. interests were directly involved because of the danger posed by a potentially unstable Russian economic, political and security system and the possible linkage by policy makers between economics, security, political interests and debt settlement. Relief came from...

The National Performance Review and Other Government Reform Initiatives: An Overview, 1993-2001

Shortly after his inauguration in 1993, President William Clinton announced he was initiating a National Performance Review (NPR) to be conducted over the next six months by a task force headed by Vice President Albert Gore, Jr. In September 1993, this task force delivered a report to the President, offering some 380 major recommendations concerning management reform, reorganization, and government downsizing. Implementation of these recommendations was to be accomplished through presidential directives, congressional action, and individual agency initiatives. A year later, in September...

Presidential Appointments to Full-time Positions in Independent and Other Agencies During the 106th Congress, 1999 -- 2000

This report provides information on 120 full-time positions requiring Senate confirmation in 25 independent executive agencies, six units in the Executive Office of the President, six multilateral banking agencies, and four legislative branch agencies. It does not cover appointments to cabinet departments or independent regulatory and other collegial boards and commissions. During the 106th Congress, President Clinton submitted 37 nominations to full-time positions requiring Senate confirmation. The Senate confirmed 28 of the nominations and returned seven at the end of the Congress. The...

The 0.22 Percent Across-the-Board Cut in FY2001 Appropriations

Report describing changes that affected the government budget for the 2001 fiscal year under the Consolidated Appropriations Act.

Federal Regulatory Reform: An Overview

Credit Union Deposit Insurance: Purpose, Management, and Policy Issues

This report discusses various issues surrounding federal deposit insurance. A key concern is maintaining a balance between providing the benefits of deposit insurance and promoting sound management practices at banks, thrifts, and credit unions.

Congressional Access to Executive Branch Information: Legislative Tools

This report begins by reviewing the precedents established during the Washington Administration for withholding documents from Congress. Close examination reveals that the scope of presidential privilege is often exaggerated. Congress had access to more documentation than is commonly believed and might have had more had it pressed for it. Subsequent sections focus on various forms of congressional leverage: the power of the purse, the power to impeach, issuing congressional subpoenas, holding executive officials in contempt, House resolutions of inquiry, GAO investigations, and blocking...

Summit of the Americas III, Quebec City, Canada, April 20-22, 2001: Background, Objectives, and Results

Summit of the Americas III was held in Quebec City, Canada, on April 20-22, 2001, and was attended by 34 democratically elected Presidents and Prime Ministers from the Western Hemisphere, including President George W. Bush. It was President Bush's first international summit, and his first major opportunity to reemphasize the priority his administration places on the Western Hemisphere, given that he visited Mexico in mid-February, spoke at the Organization of American States (OAS) in mid-April, and met with seven hemispheric leaders before he attended the Summit in Canada. The Quebec...

Consideration of the Budget Resolution

Consideration of a concurrent budget resolution is governed by special procedures in the House and Senate. Although the procedures of each chamber differ, they serve generally to expedite consideration of the budget resolution.

The Issue of Globalization An Overview

In the 1990s, globalization gained widespread usage as a term with many interpretations. Globalism is employed in this report to describe networks of interdependence functioning at multi-continental distances. Globalization is an increase in globalism and de-globalization a reduction. In providing an introductory view of these networks, with an emphasis on contemporary economic factors, a goal of this report is to illustrate how policy consequences, sometimes unintended, may be dispersed via globalized networks. As networks expand and become more intricate there is an opportunity...

Appropriations for FY2001: Legislative Branch

Congress appropriated $2.649 billion for legislative branch operations in FY2001, a 6.6% increase over the FY2000 appropriation of $2.486 billion. The FY2001 funding level includes the appropriation in the regular annual legislative branch appropriations bill; a supplemental appropriation of $118 million in a miscellaneous appropriations bill; and a rescission of 0.22%. Regular FY2001 Appropriations . The first regular FY2001 legislative branch appropriations bill ( H.R. 4516 ) approved by Congress was vetoed by President Clinton in late October 2000. Seven weeks later, on December 14, a...

Automated Teller Machine (ATM) Fees: Legislation and Issues

This report discusses the fees associated with automated teller machines (ATMs) that was increased as a result of a 1996 Visa U.S.A. and MasterCard International decision.

The Clean Coal Technology Program: Current Prospects

The Clean Coal Technology (CCT) program, started in the 1980's and funded generously in the early 1990's, has completed most of its surviving projects and has not funded any new ones since 1994. However, President Bush’s FY2002 budget outline proposed spending $2 billion over 10 years on a restructured CCT program. It is not clear what kind of projects would be included in the new program.

House Rules Manual: Summary of Contents

This report briefly discusses The House Rules and Manual, officially titled Constitution, Jefferson’s Manual and Rules of the House of Representatives, which contains the fundamental source material describing procedures in the House of Representatives.

The Economics of the Federal Budget Surplus

Fiscal 1998 marked the first year that total receipts exceeded outlays in the federal budget since 1969. Since then, the budget has been in surplus and official projections expect the budget to remain in surplus for the foreseeable future. Congressional Budget Office (CBO) baseline projections indicate that the budget surpluses are expected to grow steadily over the next 10 years.

The Child Tax Credit and the President's Tax Cut Plan

The child tax credit was enacted as part of the Taxpayer Relief Act of 1997. The current credit is $500 per qualifying child. President Bush has proposed increasing the child tax credit to $1,000 per qualifying child. The President has also proposed making permanent the temporary rule in current law that allows the child tax credit to offset a taxpayer’s alternative minimum tax.

Committee Funding Resolutions and Processes, 107th Congress

Senate action on its committee funding for the 107th Congress was modified as a result of the power-sharing agreement established by S. Res. 8 of January 5, 2001.1 This agreement assures Republicans and Democrats of equal staffing resources on all committees, and supplants Senate rules that require minority party control of at least one-third of each committee’s staff positions. Despite some delays in its normal timetable, the Senate, on March 8, 2001, agreed to a biennial funding resolution by unanimous consent.

The Pocket Veto: Its Current Status

The Growth of the Private Sector in China and Implications For China's Accession to the World Trade Organization

Over the past 21 years, economic reforms have transformed China from a relatively inefficient, centrally planned, economy to one that is significantly more market-oriented. The gains in efficiency resulting from free market policies have helped make China one of the world's fastest growing economies in recent years. A key policy in China's economic success has been the decentralization of economic production, which has helped produce a thriving private sector in China. Prior to 1979, Chinese government policies eliminated most private enterprises. However, over time, the central...

The House's Corrections Calendar

This report discusses the establishment of the “Corrections Day”, a concept credited to Michigan Governor John Englerwhich, which is a procedure for repealing “the dumbest things the federal government is currently doing and just abolish them.”

The Discharge Rule in the House: Principal Features and Uses

The “discharge rule” of the House of Representatives allows a measure to come to the floor for consideration, even if the committee of referral does not report it and the leadership does not schedule it. To initiate this action, a majority of House Members must first sign a petition for that purpose. The rule permits either (1) the committee of referral to be discharged from the measure itself; or (2) the Committee on Rules to be discharged from a special rule for considering the measure. Layover periods required by the rule permit the Committee on Rules to preempt a discharge attempt, and...

Presidential Appointments to Full-Time Positions in Executive Departments During the 106th Congress, 1999-2000

This report focuses on presidential nominations and Senate confirmations to the 330 full-time positions in the 14 executive departments to which the President makes appointments, with the advice and consent of the Senate. During the 106th Congress, President Clinton submitted 136 nominations and made 18 recess appointments to full-time positions requiring Senate confirmation. The Senate confirmed 108 nominations and returned 24; the President withdrew four nominations. On average, the Senate took 105 days (three and a half months) to confirm a nomination. Sixty-eight nominations (63%)...

IRS: Status of Restructuring and Reform at the Opening of the 107th Congress

Passage in July 1998 of the IRS Restructuring and Reform Act ( H.R. 2676 , P.L. 105-206 ) required a number of significant changes in the way the service operates as well as a fundamental change in its culture. After two years of intensive work, IRS is well along in the process of converting itself to a user-friendly institution, which is one of the most difficult tasks the Restructuring Act (RRA) requires of it. The RRA was based fundamentally on the report of the National Commission on Restructuring the Internal Revenue Service. This commission was created by Congress in its FY1996...

Presidential Appointments to Full-Time Positions on Regulatory and Other Collegial Boards and Commissions, 106th Congress

This report lists full-time positions, requiring Senate confirmation, in regulatory and other collegial bodies. Incumbents in each position are identified, as are fixed-term positions, and the dates their terms of office expire. The report also provides information on the nominations made by President Clinton to positions that were vacant or had incumbents whose terms had expired, and Senate actions on the nominations. In addition, a brief profile of each board and commission indicates if political balance is required among the members, and, if so, the political affiliation of the...

The Sequestration Process

Discretionary Spending Limits

Discretionary spending limits are statutory caps on the level of budget authority and outlays determined through the annual appropriations process. They were initially established by the Budget Enforcement Act (BEA) of 1990 (Title XIII of P.L. 101-508) as part of an agreement between Congress and President George Bush to reduce the deficit. Twice since, they were extended to enforce agreements between Congress and President Bill Clinton, most recently to achieve a surplus.

Campaign Finance in the 2000 Federal Elections: Overview and Estimates of the Flow of Money

Federal election law regulates money in federal elections through a ban on union and corporate treasury money, limits on contributions, and uniform, periodic disclosure of receipts and expenditures. Money raised and spent under these laws to directly influence federal elections is commonly known as hard money. Money that is largely outside the restrictions and prohibitions of the federal regulatory framework–but raised and spent in a manner suggesting possible intent to affect federal elections–is commonly known as soft money.

House Committee Hearings: Arranging Witnesses

This report briefly discusses the process of selecting and arranging witnesses for House committee hearings.

Types of Committee Hearings

House Committee Hearings: Preparation

Committee hearings afford Representatives an opportunity to gather information on,

and draw attention to, legislation and issues within a committee's purview; conduct

oversight of programs or agencies; and investigate allegations of wrongdoing. This report identifies many of the tasks that need to be performed by full committees and, in most cases, subcommittees in advance of a hearing. Some of these tasks are required by House or committee rules; others are common committee practice.

Timetable for Sequestration Actions

Budget Resolution Enforcement

The annual budget resolution sets forth Congress's budget plan for a period of at least five fiscal years. It includes total levels of spending, revenues, and the debt limit for each of the fiscal years covered.

Functional Categories of the Federal Budget

This report presents a list of the 20 functional categories currently included in the federal budget, as well as the sub-functions.

Congressional Budget Act Points of Order

Title III of the Congressional Budget Act (CBA) of 1974 (P.L. 93-344), as amended, establishes the points of order that are used to enforce congressional budget procedures and substantive provisions of a budget resolution. These points of order prohibit certain congressional actions and consideration of certain legislation.

Basic Federal Budgeting Terminology

In its most elemental form, the federal budget is a comprehensive accounting of the government’s spending, revenues, and borrowing. This fact sheet provides a brief overview of the basic terminology and concepts used in the federal budget process.

Tax Activity in the 106th Congress

Foreign Affairs, Defense, and Trade Policy: Key Issues in the 107th Congress

Among the 107th Congress' first orders of business will be dealing with the initiatives--both domestic and foreign policy--proposed by President Bush throughout his presidential campaign. The 2000 congressional campaigns suggested that the agenda of the 107th Congress will be largely domestic: Social Security, health care, education, taxes, and military pay were prominent in campaigns across America and on post-election news programs. Indeed, many issues discussed in this report will be affected by the resolution of a contentious battle for the presidency. In the Congress, the 50-50...

Appropriations for FY2001: An Overview

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a broad overview of all appropriations activity and a guide to the CRS Appropriation Product Series that provides analytical perspectives on the 13 annual FY2001 appropriations bills.

Small Business Legislation: Sources of Information

This report seeks to respond to inquiries from congressional staff who request information about major legislation affecting small business.

House Voting Procedures: Forms and Requirements

This report discusses the procedural considerations suffuse voting and the methods of voting in both the House and in the Committee of the Whole.

Super-Majority Votes in the Senate

Voting in the Senate: Forms and Requirements

Senate Rules for Committee Markups

Campaign Finance Bills in the 107th Congress: Comparison of H.R. 380 (Shays-Meehan) with S. 27 (McCain-Feingold)

As in the last two Congresses, campaign finance reform will be a major issue in the 107th Congress, with attention again centered on the Senate McCain-Feingold and House Shays-Meehan bills. S. 27 (Bipartisan Campaign Reform Act of 2001), introduced on January 22, 2001, will be considered by the Senate in March 2001; H.R. 380 (Bipartisan Campaign Finance Reform Act of 2001) was introduced January 31. Both bills ban the raising of soft money by national parties and the spending of it by state and local parties on federal election-related activities (as defined). But on the other key...

Uncertainty in Budget Projections

The Vice Presidency: Evolution of the Modern Office, 1933-2001

Something of an afterthought, the vice presidential office came to the attention of the delegates to the constitutional convention in the closing days of their deliberations in 1787. The Vice President's constitutional mandate vested him with two responsibilities: presiding over the deliberations of the Senate and standing by to succeed to the presidency in the event of the incumbent's death. For the next 140 years, those holding the vice presidential office served only these functions. Indeed, the Vice President soon came to be regarded as a legislative branch official. However, for...

Softwood Lumber Imports From Canada: History and Analysis of the Dispute

Softwood lumber imports from Canada have been of concern to U.S. lumber producers for many years because of questions about Canadian government timber pricing policies. In 1996, the United States and Canada reached a 5-year agreement on restrictions -- a fee on lumber imports from four Canadian provinces in excess of the specified quota -- that expires on March 31, 2001. Resolutions and bills have been introduced in recent Congresses that, had they been enacted, would have restricted lumber imports from Canada or eliminated the basis for restricting those imports. The 107th Congress may...

House Schedule: Recent Practices and Proposed Options

House scheduling practices have been criticized frequently in recent years for bringing about compressed workweeks, protracted daily sessions, conflicts between floor and committee work, pressure on family life, and inefficient use of time generally. Especially in the context of reform efforts in the 103rd and 104th Congresses (1993-1996), several alternatives have drawn support and objection. These discussions indicate that current practices are strongly related to Members' weekend commutes to their home districts. Members generally arrange their schedules so as to devote to these trips...

The Telephone Excise Tax: Revenues, Effects, and Repeal Proposals

The Amending Process in the House of Representatives

The amending process on the floor of the House of Representatives gives Members an opportunity to change the provisions of the bills and resolutions on which they are going to vote. This report summarizes many of the procedures and practices affecting this process, which can be among the most complex as well as the most important stages of legislative consideration.

The First Year: Assessments of Cooperation Between Newly Elected Presidents and Congress

During their first year in office, most recent Presidents have enjoyed a beginning period of cooperation--a "honeymoon"--with Congress. For some, it has lasted longer than for others, and with different legislative results. This report, drawing upon the evaluations of journalists, historians, and political scientists, provides a brief assessment of the extent of cooperation between newly elected Presidents, during their first year in office, and Congress. The Presidents and the focus periods of the study are Franklin D. Roosevelt in 1933, when the famed Hundred Days resulted in 15 major...

The Presidential Veto and Congressional Procedure

Congressional Overrides of Presidential Vetoes

The President’s veto is effective not only in preventing the passage of legislation undesirable to the President, but also as a threat, sometimes forcing Congress to modify legislation before it is presented to the President. However, as a veto threat is carried out, Congress is faced with choices: letting the veto stand, the difficult task of overriding the veto, meeting the President’s objections and sending a new bill forward, or resubmitting the same provisions under a new bill number.

The Presidential Veto and Congressional Procedure

Appropriations for FY2001: Treasury, Postal Service, Executive Office of the President, and General Government

FY2001 Treasury, Postal Service, Executive Office of the president, and General Government funding was enacted through P.L. 106-554 , the Consolidated Appropriations Act for FY2001, December 21, 2001. Partial funding for a select few of the accounts and some general provisions of the Treasury, Postal Service, Executive Office of the President, and General Government FY2001 Appropriations are included in the Department of Transportation FY2001 Appropriation ( P.L. 106-346 , Title V, October 23, 2000) and the continuing funding resolution ( P.L. 106-275 , as amended). Twenty-one continuing...

Appropriations for FY2001: Commerce, Justice, and State, the Judiciary, and Related Agencies

This report tracks action by the 106th Congress on FY2001 appropriations for the Departments of Commerce, Justice, and State, the Judiciary, and other related agencies (often referred to as CJS appropriations). P.L. 106-113 appropriated $39.6 billion for these agencies for FY2000. President Clinton's FY2001 budget requested $39.6 billion for these agencies. On June 14, 2000, the House Appropriations Committee approved its version of the CJS appropriations bill ( H.R. 4690 ) It recommended funding totaling $37.4 billion--$2.2 billion below the President's request and $2.2 billion below...

House Rules Changes Affecting Floor Proceedings in the 107th Congress

On the first day of the 107th Congress, the House agreed to H.Res. 5, making six substantive changes affecting its floor proceedings. These amendments facilitate use of the Corrections Calendar and voting on amendments in Committee of the Whole. They also limit votes relating to use of exhibits on the floor, and bar motions to instruct containing argument as well as proposals to name public works after sitting members of either house. Finally, the rule providing for the House to agree to change the public debt ceiling without a separate floor vote was repealed.

Election of the President and Vice President by Congress: Contingent Election

The 12th Amendment to the Constitution requires that candidates for President and Vice President receive a majority of electoral votes (currently 270 or more of a total of 538) to be elected. If no candidate receives a majority, the President is elected by the House of Representatives, and the Vice President is elected by the Senate. This process is referred to as contingent election and is the topic of discussion in this report.

Government at the Dawn of the 21st Century: A Status Report

Shortly after the beginning of the 20th century, the federal government entered a new phase the rise of the administrative state. Among the forces propelling this development was the Progressive Movement, which sought greater government engagement with and regulation of various sectors of American society. An autonomous Department of Labor, with Cabinet status, was established in 1913, along with the Federal Reserve. The Federal Trade Commission was created the following year. With the entry of the United States into World War I, regulatory activities further expanded, and the number of...

China's Military-Owned Businesses

Defense companies of the People's Republic of China (PRC) fall under two hierarchies: those belonging to the military, or the People's Liberation Army (PLA), and those in the defense industries under the State Council. This CRS Report focuses on PLA-owned businesses. Some advocate limiting economic ties with PLA companies. Others say targeting the PLA would unnecessarily hurt strategic goals with China and would be formidable to enforce. Complicating the issue is the ban on the PLA doing business that China's president ordered on July 22, 1998. The FY1999 National Defense Authorization Act...

The Cost of Prescription Drugs for the Uninsured Elderly and Legislative Approaches

The purpose of this report is to explain why many of those who are least able to afford high drug costs are those who are most frequently charged the most. This report describes the basic economic theory underlying price differentiation and, in the context of the pharmaceutical market, analyzes the role and behavior of pharmacy benefit managers (PBMs), pharmaceutical manufacturers, and retail pharmacies, respectively. It also looks at a number of the criticisms that have been made of the practice of differential pricing. Finally, this report discusses various policy approaches aimed at...

Appropriations for FY2001: Defense

House and the Senate action on annual FY2001 defense funding was completed in December when Congress approved the FY2001 omnibus appropriations bill. In all, Congress provided about $310.0 billion for national defense, including $287.8 billion in the Department of Defense Appropriations bill. The national defense total is about $4.7 billion above the Administration's request. The conference agreement on the FY2001 Labor-HHS-Education Appropriations/Omnibus appropriations bill, H.R. 4577 , approved in the House and Senate on December 15, provides some additional FY2001 funds for the...

Senate Floor Procedure: A Summary

Senate Floor Procedure: A Summary

Performance-Based Pay for Teachers

Internet Tax Legislation: Distinguishing Issues

Consumption Taxes and the Level and Composition of Saving

This report examines how the composition of saving might change with the introduction of a consumption tax. Specifically, the report analyzes the possible impact of a consumption based tax system on various forms and levels of saving.

Legislative Research in Congressional Offices: A Primer

This report discusses the process of conducting legislative research: deciding the scope, collecting the information and evaluating sources. Members of Congress need many kinds of information and analysis to support their legislative, oversight, and representational work, including both quick facts, or information to improve their understanding of a complex set of issues.

House Apportionment 2000: States Gaining, Losing, and on the Margin1

This report provides figures regarding the population of the 50 states in 2000, which is 281,424,177, a figure 13.4% greater than in 1990.

Superfund and Natural Resource Damages

ELECTRONIC TRANSFER ACCOUNTS

New U.S. Dollar Coin

Committee System Rules Changes in the House, 107th Congress

This fact sheet details changes in the committee system contained in H.Res. 5 , the rules of the House for the 107th Congress, adopted by the House January 3, 2001. The fact sheet will not be updated unless further rules changes are adopted.

Africa Backgrounder: History, U.S. Policy, Principal Congressional Actions

Congress has dealt repeatedly with issues related to sub-Saharan Africa since the late 1950s. This report provides basic background on Africa and its history, U.S. policy, and congressional involvement, for the general congressional reader. The modern human species is believed to have emerged in Africa approximately 200,000 years ago. Perhaps 2,500 years ago, the Bantu people began to expand from a West African base, gradually spreading a complex agricultural system over much of the continent. Africanists generally agree that loyalties to large ethnic groups, a key factor in African...

IMF Reform and the International Financial Institutions Advisory Commission

In the fall of 1998, financial crises in Asia, Russia, and Brazil were unfolding, though in different stages, as the 105th Congress was in the process of passing the Omnibus Consolidated and Emergency Supplemental Appropriations Act for FY1999 ( H.R. 4328 , P.L. 105-277 ). This legislation increased the U.S. quota of the International Monetary Fund (IMF), but attached a number of conditions to dispersal of the funds. Among them was creation of the International Financial Institutions Advisory Commission (the Meltzer Commission), which Congress chartered to evaluate and recommend future...

Electricity Restructuring: The Implications for Air Quality

In the context of federal and state proposals to restructure the electric utility industry, this paper analyzes forces and policies affecting utility generation that may have consequences for emissions of air pollutants and of greenhouse gases. Key concerns are potential increases in nitrogen oxide emissions, raising questions about the effectiveness of the Clean Air Act to regulate a restructured industry, and in carbon dioxide emissions, which are not currently regulated but could be if the U.S. ratifies the Kyoto Agreement. These issues may be raised in the context of electricity...

How Budget Surpluses Change Federal Debt

This report discusses how budget surpluses change federal debt. The answer involves understanding what drives changes in the two components of total federal debt, debt held by the public (which includes debt held by individuals, pension funds, banks, and insurance companies, among other entities) and debt held by government accounts (almost all in federal trust funds, such as Social Security).

Congressional Oversight

Congressional oversight of policy implementation and administration, which has occurred throughout the U.S. government experience under the Constitution, takes a variety of forms and utilizes various techniques. These range from specialized investigations by select committees to annual appropriations hearings, and from informal communications between Members or congressional staff and executive personnel to the use of extra congressional mechanisms, such as offices of inspector general and study commissions. Oversight, moreover, is supported by a variety of authorities—the Constitution,...

Budget FY2001: A Chronology with Internet Access

This is a select chronology of, and a finding guide for information on, congressional and presidential actions and documents related to major budget events in calendar year 2000, covering the FY2001 budget. Brief information is provided for the President’s budget, congressional budget resolutions, appropriations measures (regular, continuing, supplementals, and rescissions), budget reconciliation, House and Senate votes, line-item vetoes, publications, testimony, charts, and tables.

Causes of Unemployment: A Cross-Country Analysis

This report examines data from the Organization for Economic Cooperation and Development (OECD) to explore what differences in microeconomic structures and policies explain the causes of unemployment across various countries.

Environmental Protection: New Approaches

In recent years, the interest in alternatives to the nation's "command-and-control" approach to environmental protection has heightened. Driving this interest are concerns that the current approach is inefficient and excessively costly, and that it is ineffective in addressing certain problems such as nonpoint source pollution and global climate change. Several blue-ribbon panels have issued reports on environmental protection needs for the next century, including one headed by former two-time Administrator of the Environmental Protection Agency, William D. Ruckelshaus -- ...

China-U.S. Trade Agreements: Compliance Issues

On November 15, 1999, the United States and China completed a bilateral agreement on China's accession to the World Trade Organization (WTO). China agreed to substantially liberalize its markets for U.S. agriculture, manufactured goods, and services. In addition China has completed bilateral trade agreements with 35 other WTO members (an agreement with Mexico is still pending) and is close to completing negotiations with the WTO Working Party handling its WTO application. Once China completes all of its bilateral and multilateral agreements, it will likely join the WTO soon after, and the...

American Federalism, 1776 to 2000: Significant Events

Since ratification of the Constitution, which established a union of states under a federal system of governance, two questions that have generated considerable debate are: What is the nature of the union? What powers, privileges, duties, and responsibilities does the Constitution grant to the national government and reserve to the states and the people? During the 211-year history of the Constitution, these issues have been debated time and again and have shaped and been shaped by the nation's political, social, and economic history. During the pre-federalism period, the country waged a...

Pharmacy Benefit Managers

Appropriations for FY2001: District of Columbia

On February 7, 2000, President Clinton submitted his budget recommendations for FY2001. The Administration's proposed budget includes $ 445 million in federal payments and assistance to the District of Columbia. On March 13, 2000, D.C. Mayor Anthony Williams submitted his proposed budget for FY2001. The proposed budget included $4.7 billion in general fund expenditures and $695 million in enterprise funds. The District of Columbia Financial Responsibility and Management Assistance Authority (Authority), on June 7, 2000, approved a budget compromise reached by the city council and the...

Term Limits for Members of Congress: Issues in the 106th Congress

Congressional efforts to limit federal lawmakers' tenure have waned since 1997, but supporters' differing strategies, various service limits at the federal and state levels, and the most recent general election are keeping the issue alive. Some proponents have changed their goal from mandatory limits through a constitutional amendment to voluntary limits through candidates' pledges to limit their own tenure. Fifty-nine Members of the 106th Congress have pledged to limit their service, including 10 who will reach their self-imposed limit at the end of this Congress. House Members who have...

China's Emergence as a Major Economic Power: Implications for U.S. Interests

China's likely development as a major economic power over the next quarter century holds important implications for U.S. interests. Assuming a continuation of current trends, by 2025 China is likely to become a medium income economy with an estimated $3.5 trillion to $5.8 trillion gross domestic product and a 1.5 billion population. An optimistic view of China in 2025 is for it to be well integrated into the world economy with global standards for trade, investments, finance, labor, and the environment and with a booming investment and trading relationship with the United States conducted...

Appropriations for FY2001: VA, HUD, and Independent Agencies (P.L. 106-377)

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Subcommittees on VA, HUD and Independent Agencies Appropriations.

Appropriations for FY2001: U.S. Department of Agriculture and Related Agencies

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on Agriculture Appropriations.

Senate Rules and Practices on Committee, Subcommittee, and Chairmanship Assignment Limitations as of November 4, 2000

Senate Rule XXV and party practice limit the number and types of committee and subcommittee assignments a Member may hold. The rule sets the size of each committee, and Senate tradition dictates that, in most instances, party ratios in committee reflect the overall party ratio in the chamber. Both parties utilize Member seniority, state represented, and ideology as factors influencing committee assignments. Rule XXV divides committees into three classes, characterized as A, B, and C. Class A consists of 12 standing committees; class B includes four standing committees, two...

U.S. Federal Taxes in Puerto Rico

Depreciation and the Taxation of Real Estate

The Tax Reform Act of 1986 set up a depreciation system designed to equalize tax burdens on different types of assets. The recovery period for nonresidential structures was, however, lengthened in 1993. Economic conditions and practices that may bear on this issue have also changed. Lately, there has been some interest in reexamining this depreciation structure. For example, H.R. 4328, The Omnibus Consolidated and Emergency Supplemental Appropriations Act of 1998, mandated the Treasury Department to study current tax depreciation rules and how they relate to tax burdens. This report...

Appropriations for FY2001: Interior and Related Agencies

The Interior and Related Agencies Appropriations bill includes funding for agencies and programs in four separate federal departments as well as numerous smaller agencies and diverse programs. The bill includes funding for the Interior Department except the Bureau of Reclamation, but only segments of the funding of the other three departments, Agriculture, Energy, and Health and Human Services. On February 7, 2000, President Clinton submitted his FY2001 budget to Congress. The FY2001 request for Interior and Related Agencies totals $16.32 billion compared to the $14.91 billion enacted...

Foreign Aid Authorization: The Technical Assistance, Trade Promotion, and Anti-Corruption Act of 2000

For one of the few times during the past 15 years, legislation was reported in the Senate authorizing broad portions of U.S. foreign assistance programs. In the absence of foreign aid authorizations, Congress has overseen and funded the program through annual Foreign Operations appropriations bills. S. 2382 , the Technical Assistance, Trade Promotion, and Anti-Corruption Act of 2000, as reported by the Senate Foreign Relations Committee on April 7, selectively authorizes a range of foreign aid activities, updates permanent foreign assistance laws, expands several aid initiatives such as...

The House Apportionment Formula in Theory and Practice

This report has four major purposes: to summarize the constitutional and statutory requirements governing apportionment; to explain how the current apportionment formula works in theory and in practice; to summarize recent challenges to it on grounds of unfairness; and to explain the reasoning underlying the choice of the equal

proportions method over its chief alternative, major fractions.

President Clinton's Vetoes

District of Columbia Appropriations Act for FY2001: Comparison of General Provisions of P.L. 106-113, and House and Senate Versions of H.R. 4942

This report discusses the appropriations act for FY2001, proposed budget includes $ 445 million in federal payments and assistance to the District of Columbia.

Major Tax Issues in the 106th Congress: A Summary

Community Development Block Grants: Funding and Other Issues in the 106th Congress

In this report Congress addresses a number of community development issues, including reauthorization of the CDBG and revision of the CDBG program definitions of entitlement communities and low- and moderate-income households. Congress also will consider legislation appropriating funds for the program for FY2001, including funding for a number of new initiatives proposed by the Clinton Administration.

The President's Cabinet: Evolution, Alternatives, and Proposals for Change

The President's Cabinet is an institution whose existence rests upon custom rather than law. President George Washington found the Cabinet concept, a meeting of departmental secretaries, to be useful, and all subsequent Presidents have followed this precedent. Presidents have differed in their opinions as to the utility of the Cabinet, but all have found some political and administrative strengths in its continuance. This report discusses how membership in the Cabinet has changed over the decades. The selection and removal processes are examined as well as commentary on the Cabinet by...

Economic Indicators: Country Comparisons

Policymaking in this time of globalization often requires information about the economic output of various countries, how those countries' economies compare with one another, and where the United States stands relative to the rest of the world. This report provides a summary of output measures, explaining their strengths and weaknesses, and various cross-country comparisons. It does not delve into any of several other measures of economic performance that also may be of use depending on the focus of a particular line of inquiry. Although perhaps seemingly straight forward, comparing the...

China and the WTO: Labor Issues

Voting in Primary Elections: State Rules On Participation

This report summarizes information for the states and the District of Columbia concerning voting participation in primary elections. Procedures vary from state to state concerning who is eligible to vote in primary elections, depending on whether the state has an open primary (a voter has the option of choosing either party ballot in the secrecy of the polling booth) or a closed primary (a voter must register with a political party before the election to be eligible to vote or must publicly choose a party ballot at the polling place). At present, 12 states have open primaries and 38 states...

The Electronic Stock Market

Federal R&D, Drug Discovery, and Pricing: Insights from the NIH-University-Industry Relationship

Interest in methods to provide drugs at lower cost, particularly for the elderly, has rekindled discussion over the role the federal government plays in facilitating the creation of new pharmaceuticals for the marketplace. This report explores the issue of whether or not the substantial federal investment in health-related research and development (R&D) entitles the public to commensurate consideration in prices charged for any resulting drugs. It is intended to provide the reader with an understanding of the rationale for government support of R&D and subsequent efforts to...

The International Monetary Fund: An Overview of Its Mission and Operations

The International Monetary Fund (IMF) is the institution designed to support global trade and economic growth by helping maintain stability in the international financial system. Originally created to finance short-term balance of payments deficits during the Bretton Woods era of gold/dollar fixed exchange rates (1944-1971), in the current world where flexible exchange rates dominate in the industrial economies, it has focused on developing countries where ever larger financial crises have erupted. As part of the periodic IMF quota review process, the U.S. Congress in October 1998...

Patents on Methods of Doing Business

The decision of the United States Court of Appeals for the Federal Circuit in State Street Bank & Trust Co. v. Signature Financial Group , 149 F.3d 1368 (Fed. Cir. 1998), held that inventors may obtain patents on methods of doing business. Subsequent judicial opinions have confirmed this holding. Recently issued patents in fields such as architecture, investment, marketing, psychological analysis and sports methods also suggest that inventions from virtually any human endeavor may be the subject of proprietary rights through the patent system. Since State Street Bank , proprietors of...

Appropriations for FY2000: Treasury, Postal Service, Executive Office of the President, and General Government

P.L. 106-58 ( H.R. 2490 ), signed by the President September 29, 1999, to fund the Department of the Treasury, the Executive Office of the President, several independent agencies and to provide partial funding for the U.S. Postal Service. The act funds the accounts at $27.99 billion, including mandatories (before scorekeeping by the Congressional Budget Office (CBO)). The consolidated FY2000 funding measure, P.L. 106-113 , signed November 29, 1999, requires a cut by 0.38% in all accounts. The administration's budget, to be submitted in early February, will contain a report on the exact...

Biennial Budgeting: Background and Legislative History in the 106th Congress

Proposals for a two-year budget cycle have previously been reported in the Senate in 1988, 1990, 1994, and 1997. Another such proposal, S. 92, was reported by the Senate Governmental Affairs Committee on March 10, 1999 (S.Rept. 106-12). S. 92 calls for the House and Senate to use the first year of each Congress to consider a two-year budget resolution and two-year appropriation bills, and the second year to consider multiyear authorizations and conduct oversight. More recently, biennial budgeting has also been a topic of interest in the House where the Rules Committee conducted a series of...

Employer-Provided Training

Term Limits for Members of Congress: State Activity

Medical Records Confidentiality

Coping with High Oil Prices: A Summary of Options

A near tripling in the price of crude oil from March 1999 to the first months of 2000, coupled with other developments, initially brought about sharp increases in the price of home heating oil and diesel fuel, which are essentially the same product. Gasoline prices then increased. These developments brought about discussion of what might be done to mitigate price increases and possible spot shortages, and what might be done to prevent a similar situation in the future.

Suspending the Gas Tax: Analysis of S. 2285

S. 2285 proposes to temporarily suspend the federal excise tax on gasoline, diesel, aviation fuel, and certain other motor fuels, which varies by type of fuel and fuel use. The suspension would be for at least 4.3¿/gallon. It would begin on April 16, 2000, and last through December 31, 2000. Thus, on April 16, 2000 the gasoline tax would decline from 18.4¿/gallon to 14.1¿/gallon; the diesel fuel tax would decline from 24.4¿/gallon to 20.1¿/gallon. The bill also provides for a suspension of almost the entire federal tax if two conditions are met: 1) the national average price of unleaded...

Asian Financial Crisis and Recovery: Status and Implications for U.S. Interests

In terms of broad economic measurements, the Asian financial crisis largely has ended, but the surprisingly swift recovery has left lingering economic and political problems that still could have negative effects on U.S. interests. The economies that suffered most from the crisis that began with the collapse of the Thai baht in July 1997 have regained positive economic growth, bolstered their trade positions, sharply reduced interest rates, and rebuilt their international financial reserves. At the same time, the recovery has been uneven and most of the IMF-assisted...

Morocco: Royal Succession and Other Developments

King Hassan II of Morocco succumbed to a heart attack on July 24, 1999, and was succeeded by his 36-year old elder son, who became King Mohammed VI. The new King’s progressive agenda highlights efforts to fight poverty, advance economic development, support the opposition-led government, and redress human rights abuses. In foreign policy, his priorities include improving relations with Europe and Algeria, and he has reached out to the Moroccan Jews of Israel. The long-standing U.S. friendship with Morocco continues. For background, see CRS Report 98-663(pdf) , Morocco: Political and...

Russian Capital Flight, Economic Reforms, and U.S. Interests: An Analysis

Russian capital flight is a longstanding problem with very negative consequences for the Russian economy. Authoritative studies estimate Russian capital flight to have totaled $150 billion from 1992-1999. Recent reports of Russian money laundering and other financial scandals involving the Russian Central Bank, the Bank of New York, other commercial banks, and even former President Yeltsin's household involve forms of capital flight and have drawn greater attention to the problem. They have been the subjects of recent Congressional hearings and have focused the attention of Members of...

Campaign Financing: Highlights and Chronology of Current Federal Law

Current law governing financial activity of campaigns for federal office is based on two principal statutes: the Federal Election Campaign Act (FECA) of 1971, as amended in 1974, 1976, and 1979, and the Revenue Act of 1971. These laws were enacted to remedy widely perceived shortcomings of existing law, the Corrupt Practices Act of 1925, and in response to reports of campaign finance abuses over the years, culminating in the 1972-1974 Watergate scandal. This report provides a summary of major provisions of federal law and a chronology of key legislative and judicial actions.

Debt and Development in Poor Countries: Rethinking Policy Responses

The poorest countries face enormous challenges to development, with economic issues still presenting some of the greatest obstacles. High on the current public policy agenda, including in the U.S. Congress, is financing increased debt relief for the poorest countries. Indebtedness is not a new issue. In the 1980s, Latin American middle income countries became severely indebted to private banks, causing a financial crisis with prolonged economic and social consequences. Today, the Heavily Indebted Poor Countries (HIPCs), mostly located in Sub-Saharan Africa, face worse economic prospects...

Patent Law Reform: An Analysis of the American Inventors Protection Act of 1999 and Its Effect on Small, Entrepreneurial Firms

The American Inventors Protection Act of 1999, P.L. 106-113 , worked substantial reforms to the U.S. patent system. These reforms include provisions to protect inventors from deceptive invention promotion services; reduce certain fees associated with filing applications at the United States Patent and Trademark Office (PTO); create an infringement defense to first inventors of business methods later patented by another; ensure that processing delays at the PTO would not adversely impact patent term; mandate the publication of certain pending patent applications; establish...

Appropriations for FY2000: An Overview

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year.

The 0.38 Percent Across-the-Board Cut in FY2000 Appropriations

This report outlines cuts made in the federal budget for FY2000. The 0.38% cut was expected to yield savings of $2.4 billion in budget authority and $1.4 billion in outlays for the fiscal year. Departments with cuts in excess of $100 million included the Departments of Defense, Transportation, Health and Human Services, and Education.

Ecuador's Brady Bond Default: Background and Implications

Ecuador faces its worst economic crisis since the 1930s, suffering from a deep recession, collapsed currency, and failing banking system. Together, these problems led to huge fiscal deficits and increased external borrowing. The fiscal shortfall took a dramatic turn on September 30, 1999 when Ecuador decided to default on its Brady bonds, effectively cutting off Ecuador from foreign financial resources. This proved to be a pivotal decision, contributing to the escalating social and political strife that resulted in the forced removal of a sitting president in January 2000. Brady bonds...

Appropriations for FY2000: Commerce, Justice, and State, the Judiciary, and Related Agencies

This report tracks action by the 106th Congress on FY2000 appropriations for the Departments of Commerce, Justice, and State, the Judiciary, and other related agencies (often referred to as CJS appropriations). P.L. 105-277 ( H.R. 4328 ) appropriated $36.2 billion for these agencies for FY1999. The President's FY2000 budget requested about $40.5 billion for these agencies, about a $4.3 billion increase or 12% above the FY1999 total. On October 18, the Conference Committee approved a CJS bill for FY2000 ( H.R. 2670 , H.Rept. 106-283 ) totaling $39 billion--$2.8 billion (or 7.7%) above...

Budget FY2000: A Chronology with Internet Access

Iran: U.S. Policy and Options

Iran: U.S. Policy and Options

Iran and the United States have been adversaries, and have sometimes engaged in low-level military hostilities, since Iran's Islamic revolution on February 11, 1979. During its first term, the Clinton Administration sought to build on earlier policies designed to contain Iran and moderate its behavior. The Clinton Administration initially placed its policy of containing Iran within a broader framework for keeping both Iran and Iraq weak, terming the policy "dual containment." The Administration maintained that dual containment was a necessary departure from past Persian Gulf policies in...

The Glass Ceiling: A Fact Sheet

Appropriations for FY2000: Legislative Branch

On September 29, 1999, the President signed a $2.457 billion FY2000 legislative branch appropriations bill into P.L. 106-57 (113 Stat. 408). This represented a reduction of 4.8%, or $124.1 million, from the FY1999 budget of $2.581 billion.

The House bill, H.R. 1905 , contained $1.862 billion, excluding funds for Senate activities and Senate activities of the architect of the Capitol. This appropriation was a $54.8 million decrease from that reported by the House Appropriations Committee. The reduction was contained in an amendment agreed to by the House. The total legislative...

The Use of Task Forces in the House

Appropriations for FY2000: District of Columbia

On November 29, 1999, President Clinton signed the Consolidated Appropriations Act for FY2000, formerly H.R. 3194 , into law as P.L. 106-113 . The Act appropriates funds for the District of Columbia, Division A of the act, and four other appropriation measures, Division B of the act, including: Commerce, Justice, State, Judiciary; Foreign Operation Appropriations; Interior Appropriations; and Labor, Health and Human Services, and Education Appropriations for FY2000. Division B of P.L. 106-113 , also includes a section governing Miscellaneous Appropriations, and provisions amending the...

Cuba-U.S. Relations: Chronology of Key Events 1959-1999

This chronology outlines major events in U.S.-Cuban relations from Fidel Castro's rise to power in 1959 through 1999. The chronology provides more detailed information on events since 1994, including U.S. legislative action and congressional hearings and significant economic and political events in Cuba. In the 1960s, U.S.-Cuban relations deteriorated quickly as the Castro government espoused Communism and aligned itself with the Soviet Union. After Cuba began expropriating U.S. property in 1960, the United States began imposing economic sanctions. In 1961, diplomatic relations...

Appropriations for FY2000: VA, HUD, and Independent Agencies

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Subcommittees on VA, HUD and Independent Agencies Appropriations.

Appropriations for FY2000: Interior and Related Agencies

The Interior and Related Agencies Appropriations bill includes funding for agencies and programs in four separate federal departments as well as numerous smaller agencies and diverse programs. The bill includes funding for the Interior Department except the Bureau of Reclamation, but only segments of the funding of the other three departments, Agriculture, Energy, and Health and Human Services. On February 1, 1999, President Clinton submitted his FY2000 budget to Congress. The FY2000 request for Interior and Related Agencies totaled $15.266 billion compared to the $14.298 billion enacted...

Appropriations for FY2000: U.S. Department of Agriculture and Related Agencies

The FY2000 appropriations bill ( P.L. 106-78 , H.R. 1906 ) for the U.S. Department of Agriculture (USDA) and related agencies was signed into law on October 22, 1999. P.L. 106-78 contains regular (non-emergency) appropriations of $60.559 billion, which is $2 billion below the Administration request, but nearly $6 billion above the FY1999 level. Just over three-fourths ($46.57 billion) of the total amount in the act is classified as mandatory spending (primarily food stamps and farm programs funded through USDA's Commodity Credit Corporation), which in essence is governed by authorizing...

Committee Funding Resolutions and Processes, 106th Congress

This report describes the procedures under which committee funding resolutions are considered in the two chambers, and 106th Congress action to review and approve committee operating budgets. Also noted are changes in the Senate’s committee funding processes to move from a session-based biennial funding process to one more closely matched to a fiscal year cycle. Tables at the end of the report show funds approved for the 105th Congress, and the funds requested, recommended, and approved for the 106th Congress for each House and Senate committee.

Economic Sanctions to Achieve U.S. Foreign Policy Goals: Discussion and Guide to Current Law

This report provides background on foreign policy sanctions. It addresses the following questions: Why do we apply sanctions? What objectives does the U.S. government seek to achieve when it imposes sanctions? Who imposes sanctions? What tools are available? How likely is it that sanctions will achieve the stated goal? What secondary consequences might sanctions have? What change is required for the sanctions to be lifted? Would multilateral sanctions be more desirable and achievable? The report also provides an uncomplicated map of where sanctions policies and options currently may be...

Economic Sanctions to Achieve U.S. Foreign Policy Goals: Discussion and Guide to Current Law

As the close of the 106th Congress, 1st session, nears, there are last-minute efforts to place one or more sanctions measures into a bill that has its own momentum. H.R. 434 , the African Growth and Opportunity Act, is under consideration to carry a variety of trade-related amendments. It has been mentioned in the press as a possible vehicle for S. 757 , the Sanctions Policy Reform Act. It is also possible that H.R. 434 could advance "Food and Medicine for the World Act." The Senate agreed to food and medicine exemption language earlier in the session; that language was excised from...

Vietnam: Economic Reforms and Commercial Relations with the United States

Vietnam has made considerable progress in implementing economic reforms since 1986. The reforms have nudged Vietnam to a more market-oriented economy and have facilitated higher rates of economic growth, particularly during 1988-1996. Momentum for deepening the reforms, however, has stalled in recent years, and since 1997, there has been a significant decline in foreign investment, as well as a deterioration in the underlying performance of the economy. To address these problems, multilateral institutions and U.S. officials have urged Vietnam's leaders to initiate a second wave...

Decorum in House Debate

Decorum in House Debate

The basic standards of decorum that govern remarks made in the House of Representatives are described in this report. The report also discusses the procedure for "words taken down" and other mechanisms used in the House for enforcing these standards. The standards and mechanisms covered here include those set forth in House rules, related sections of Jefferson's Manual, published precedents, and supplementary policy statements by the Speaker. Also provided are examples from the 103rd-105th Congress of words spoken in House floor debate that led to one or more enforcement mechanisms being invoked.

The Proposed Tobacco Settlement: Who Pays for the Health Costs of Smoking?

One of the issues raised in the consideration of tobacco settlements is the compensation of various parties that might pursue lawsuits to recover the health costs of smoking. These parties include states whose settlements now total $26 billion over 26 years, the federal government which has filed suit against the industry, and individuals. Popular estimates of the annual medical costs of smoking range around $50 billion, with the states accounting for slightly under $4 billion, individuals about $10 billion and the remainder paid for by the federal government and private entities. Some...

Off-Budget Status of Federal Entities: Background and Current Proposals

During the 106th Congress, several proposals have been introduced to provide off-budget status to certain trust funds and other special funds, in which revenues are collected for specified purposes. These proposals would prohibit the receipts and disbursements of the funds from being counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of the President's budget, the congressional budget, or the Balanced Budget and Emergency Deficit Control Act of 1985. Proponents argue that taking a fund off budget provides an assurance that the federal government is...

Capital Gains Taxes: Distributional Effects

Many types of data have been presented to illustrate who pays capital gains taxes (and who might benefit from a reduction in these taxes). These different approaches include absolute measures of distribution (such as how the tax is distributed relative to the distribution of the population and the average tax paid), relative measures of distribution (whether after-tax incomes would become more or less equal without the tax), measures of the distribution of tax liability, and measures of who pays the tax. These measures are presented for 1999 and indicate that capital gains taxes are...

The Exchange Stabilization Fund of the U.S. Treasury Department: Purpose, History, and Legislative Activity

As part of an international support package, the United States agreed, in November 1998, to provide contingent financing of $5 billion to Brazil. Funds would come from the Department of the Treasury's Exchange Stabilization Fund (ESF). Some congressional concern has been expressed about the ESF's ability to make foreign loans without congressional approval. Appropriation legislation in the 104th Congress imposed limitations on the use of the ESF ( P.L. 104-52 , Section 632 and P.L. 104-208 , Section 628), but the limitations expired at the end of fiscal year 1997. Seven bills were...

Judicial Rulings on the War Power

Introducing a House Bill or Resolution

This report discusses the primary steps for drafting a bill in the House. Ideas and recommendations for legislation may come from private sources, such as ordinary citizens or interest groups; executive branch agencies and the White House; state and local initiatives; and, of course, individual Members, committees and other work groups, and party and chamber leaders. Any or all of these entities may also participate in drafting legislation (resolutions as well as bills).

The World Trade Organization: Future Negotiations

The World Trade Organization's (WTO) Ministerial Conference, to be held in Seattle from November 30 to December 3, 1999, will launch a new round of trade negotiations. President Clinton, in his State of the Union Address on January 19, 1999, called for an ambitious round focusing on agriculture, services, industrial tariffs, intellectual property, and government procurement. He also proposed that negotiations should result in early agreements, and should be concluded in far less time than the seven years that the Uruguay Round took. The United States and the other WTO countries are...

Capital Gains Taxes, Innovation and Growth

The growth effect of cutting capital gains taxes on innovation, where lower capital gains taxes may encourage investment in new, "high-tech" firms, has been a subject of continued interest. A recent Congressional Budget Office study, while concluding a limited and uncertain effect on growth induced by capital gains tax cuts through normal savings and investment channels, noted a lack of evidence on the effect through new firm formation. The belief on the part of many venture capital advocates that the capital gains tax plays an important role developed because the slump and recovery in...

Presidential Disability: An Overview

In the original document, Article II, section 1, clause 6 of the Constitution provided that, in the event of the President's "Inability to discharge the Powers and Duties" of his office, "the Same shall devolve on the Vice President." This language was superseded by the 25th Amendment to the Constitution, ratified in 1967. Although there were several instances of severe presidential disability between 1789 and 1967, no Vice President sought to assume the chief executive's powers and duties during this period. Sections 3 and 4 of the 25th Amendment currently govern cases of...

The U.S. Trade Deficit: Trends, Theory, Policy, and Sustainability

This report briefly surveys recent trends in the U.S. trade deficit and the economic theory and policies surrounding it. After dropping to $74 billion in 1991, the U.S. merchandise trade deficit increased by $49 billion in 1998 to a record high of $248 billion. Even though the reasons for the rising deficit seem apparent, it raises questions about the theoretical analysis that underlies U.S. policies to deal with it and its sustainability and effect on the U.S. economy. The Federal Trade Deficit Review Commission was organized on June 10, 1999, and is responsible for developing trade...

Alternative Trading Systems: Will Computers Replace Stock Exchanges?

Recently, the retired head of a large investment bank reflected on the great changes he had seen on Wall Street over his long career. The deregulation of commissions and the shift from partnerships to public ownership were key events, but the changes brought by electronic technology were "a revolution" that, although still in the early stages, "superseded the others infinitely." Perhaps the most visible aspect of this electronic transformation has been the rise of Internet trading by small investors. Another change, however, although less publicized, may have a much greater impact on the...

Appropriations for FY1999: Commerce, Justice, and State, the Judiciary, and Related Agencies

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to CRS reports that provide analytical perspectives on the 13 annual appropriations bills, and other related appropriation measures. It does not include a detailed explanation or description of the budget or appropriations processes. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on Treasury, Postal...

Military Interventions by U.S. Forces from Vietnam to Bosnia: Background, Outcomes, and "Lessons Learned" for Kosovo

The congressional debate on Kosovo has raised interest in previous cases where the United States military has intervened in other countries. Of these, nine are cited as providing some type of lesson or precedent for future action. In eight of these, the U.S. military used force: Vietnam, Lebanon, Grenada, Panama, Iraq, Somalia, Haiti, and Bosnia. In the ninth, Rwanda, the United States undertook a humanitarian mission. The numbers, purposes, circumstances and results of these interventions varied greatly. They have involved numbers of U.S. military personnel ranging, at peak, from about...

Russia's Economic and Political Transition: U.S. Assistance and Issues for Congress

The adoption by Russia of a democratic political system and free market economic system is an objective of U.S. foreign policy facilitated by the foreign aid program funded under the New Independent States (NIS) account of the foreign operations appropriations. Since 1992, an estimated $2.3 billion has been obligated to assist this transition. The history of the aid program has been characterized by a declining amount of resources, multiple objectives, implementation problems, and mixed results. Some programs have had little positive impact and others have been affirmatively appraised by...

Russia: Primakov's Economic Policy Dilemma and U.S. Interests

Russia's devaluation of the ruble and default on its debts in August 1998 put it in its most serious crisis to date. If trends that created the crisis continue, Russia is faced with a vicious downward cycle toward dire economic straits hyperinflation, steep reduction in output and income, default on debts precluding the ability to borrow; political weakness disintegration of central government power with increased corruption and instability, and growing military dissent inviting a political implosion resulting in a threatened collapse of Russia's ability to govern. The Russian...

Appropriations for FY1999: An Overview

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to CRS reports that provide analytical perspectives on the 13 annual appropriations bills, and other related appropriation measures. It does not include a detailed explanation or description of the budget or appropriations processes.

Appropriations for FY1999: An Overview

House and Senate Rules of Procedure: A Comparison

This report compares selected House and Senate rules of procedure governing various stages of the legislative process: referral of legislation to committees; scheduling and calling up measures; and floor consideration. The appendices provide sources of additional information about House and Senate rules of procedure.

Credit Union Membership Act Implementation: Legal Issues

This report examines the background and issues of the litigation regarding Regulations implementing the Credit Union Membership Act of 1998 that is being challenged in court as impermissively expansive.

House Committee Hearings: Scheduling and Notification

Each House committee has authority to hold hearings whether the House is in session, has recessed, or has adjourned (Rule XI, clause 2(m)(1)(A)). Regardless of the type of hearing, or whether a hearing is held in or outside of Washington, hearings share common aspects of planning and preparation. this report discusses the issues a committee faces in deciding whether to schedule a hearing.

China's Response to the Global Financial Crisis: Implications for U.S. Economic Interests

Since 1997, several East Asian economies (notably Indonesia, Thailand, and South Korea), and since 1998, Russia and Brazil, have experienced significant financial difficulties, including sharp currency depreciations, plunging stock market prices, and declining economic growth. The global financial crisis contributed to a slowdown in the growth of the Chinese economy in 1998, especially its export sector, although it fared better than most of its East Asian neighbors, many of whom fell into recession. However, many analysts have expressed concern that a deepening of the global...

Engrossment, Enrollment, and Presentation of Legislation

Engrossment, enrollment, and presentation of legislation are technical components of the legislative process. They attest to the accuracy of bill texts, confirm passage by the House and Senate, and confirm delivery of the bills to the President for his review.

Surpluses and Federal Debt

House Rules Affecting Committees

House Rules, especially Rules X-XIII, govern the authority and operations of its committees and subcommittees. This report identifies and summarizes these and other rules and directives affecting committee powers, authority, activities, and operations.

Aviation: Direct Federal Spending, 1918-1998

The federal government has played a large role in the development of aviation. In the ten years prior to 1918 this role was exclusively military in origin. Beginning in 1918, with the first air mail flights, commercial aviation became a growing focus of federal attention and assistance. In the intervening 80 years the federal government has spent $155 billion in support of aviation activities. This report details, and comments on, federal assistance provided directly in support of commercial aviation. Direct assistance in this view can take several forms; for example, the...

Federal Government Information Technology Policy: Selected Issues

Federal government information technology (IT) is an important part of the federal mission to serve Americans. Federal government IT policy can improve how services and information are provided to citizens, increase the timeliness and quality of federal agencies' responses, and save federal tax dollars by improving government efficiency. Protection and security of individuals' privacy, as well as making appropriate federal data more transparent and available for its citizens, are the ultimate goals of federal agency IT policies. But there are some questions and concerns regarding federal...

Budget FY1999: A Chronology with Internet Access

This is a select chronology of, and a finding guide for information on, congressional and presidential actions and documents related to major budget events in calendar year 1998, covering the FY1999 budget. Brief information is provided for the President’s budget, congressional budget resolutions, appropriations measures (regular, continuing, supplementals, and rescissions), budget reconciliation, House and Senate votes, line-item vetoes, publications, testimony, charts, and tables.

Appropriations for FY1999: U.S. Department of Agriculture and Related Agencies

The conference agreement on the FY1999 omnibus appropriations bill ( P.L. 105-277 / H.R. 4328 ) was signed into law on October 21, 1998. The measure contains $55.9 billion in regular FY1999 appropriations for the U.S. Department of Agriculture and related agencies and $5.9 billion in emergency disaster and economic assistance for agriculture, for a total of $61.8 billion. The House and Senate earlier had approved a separate conference agreement for FY1999 USDA appropriations ( H.R. 4101 ), but the President vetoed the measure because its emergency provisions did not authorize an increase...

Appropriations for FY1999: U.S. Department of Agriculture and Related Agencies

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on Agriculture Appropriations.

Russian Missile Technology and Nuclear Reactor Transfers to Iran

Many in Congress and the Clinton Administration charge that Russian entities are assisting Iran in developing ballistic missiles. Russia is also building a nuclear power station in, and is furnishing other nuclear services to, Iran. Congress has passed legislation requiring the President to impose sanctions for missile technology transfers, arms sales, nuclear technology transfers, and large-scale investments in Iran. H.R. 2709 , which includes the "Iran Missile Proliferation Sanctions Act of 1997," is one of several bills designed to tighten existing sanctions law. It was amended and...

Appropriations for FY1999: Department of Transportation and Related Agencies

The text of this report is a guide to of the original (Department of Transportation and Related Agencies) appropriations bill for FY1999. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on Transportation Appropriations. It summarizes the current legislative status of the bill, its scope, major issues, funding levels, and related legislative activity. The report lists the key CRS staff relevant to the issues covered and related CRS products.

Appropriations for FY1999: Department of Transportation and Related Agencies

For FY1999, the U.S. Department of Transportation (DOT) requested total funding of approximately $43 billion, a 1% increase over the FY1998 enacted level of $39 billion. The FY1999 budget request for the DOT was similar in many respects to the FY1998 appropriation. There are many "macro" issues or factors that are influencing the debate over the Administration's FY1999 budget request. Some of them have been carried over from the previous fiscal year. Complicating the budget process had been the delay associated with reauthorizing many of the Department's programs. The recently...

India-Pakistan Nuclear Tests and U.S. Response

On May 11 and 13, 1998, India conducted a total of five underground nuclear tests, breaking a 24-year self-imposed moratorium on nuclear testing. Pakistan followed claiming 5 tests on May 28, 1998, and an additional test on May 30. The Indian tests, which appear to have completely surprised the U.S. intelligence and policy community set off a world-wide storm of criticism. President Clinton announced, on May 13, 1998, that he was imposing economic and military sanctions mandated by Sec. 102 of the Arms Export Control Act (AECA.) The Administration applied the same sanctions to Pakistan on...

East Asia and the Pacific: Issues at the End of the 105th Congress

U.S. policy in East Asia and the Pacific since the end of the cold war is subject to often competing pulls from U.S. economic, security and political interests. Nonetheless, workable agreement has been reached on keeping some U.S. military forces actively involved in the region, keeping U.S. markets open to regional exports, and toning down at least temporarily earlier U.S. emphasis on human rights and other values in policy toward China and some other regional states. Interviews with twenty-five congressional staff members of both parties and both chambers who deal directly with issues...

Appropriations for FY1999: Labor, Health and Human Services, and Education

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on Labor, Health and Human Services, and Education.

Appropriations for FY1999: VA, HUD, and Independent Agencies

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Subcommittees on VA, HUD and Independent Agencies Appropriations.

Appropriations for FY1999: District of Columbia

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on the District of Columbia.

Short-Run Macroeconomic Effects of Fundamental Tax Reform

Fundamental tax reform continues to receive attention from lawmakers, private advocacy groups, and tax analysts. Preeminent among the proposals is the replacement of the current income tax with some form of a consumption tax. Much of the discussion of the merits of consumption taxes relative to income taxes is centered on the kinds of incentives and efficiencies that the two kinds of taxes exhibit in the long run. Increasingly, however, analysts have begun to explore the transition (short- run) effects associated with shifting from an income tax to a consumption tax. Some of these...

Holocaust-Related Legislation of the 105th Congress

Over 30 bills and resolutions related in some way to the Nazi-era Holocaust were introduced in the 105th Congress. Five of these were enacted or adopted: S. 1564 ( P.L. 105-158 ), the Holocaust Victims Redress Act, authorizes $25 million for Holocaust survivors and $5 million for archival research on Holocaust-era issues. It also urges the 15 European states receiving gold from the final disbursement of the Tripartite Gold Commission to donate those proceeds to Holocaust-related charities. S. 1900 ( P.L. 105-186 ), establishes the Presidential Advisory Commission on Holocaust...

Appropriations for FY1999: Treasury, Postal Service, Executive Office of the President, and General Government

Appropriations are one part of a complex federal budget process that includes budget resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and budget reconciliation bills. This report is a guide to one of the 13 regular appropriations bills that Congress passes each year. It summarizes the current legislative status of the bill, its scope, major issues, funding levels, and related legislative activity.

The Marriage Penalty and Other Family Tax Issues

Proposals to reduce marriage tax penalties have received attention: an increase in the joint return standard deduction is included in H.R. 4579 , passed by the House on September 26. The Administration has proposed an increase in the child care credit; a number of bills have been introduced as well. Current law and proposed changes are addressed with respect to their effects on equity, efficiency, and administrative feasibility. Using an ability-to-pay standard in determining at what incomes families of different sizes are equal, the current tax rules favor large families across most...

Hemispheric Free Trade: Status, Hurdles, and Opposition

At the 1994 Summit of the Americas in Miami, 34 countries in the Western Hemisphere agreed to complete negotiations to create a "Free Trade Area of the Americas" (FTAA) no later than the year 2005. Since the summit, two approaches have emerged for promoting hemispheric free trade. The first approach involves the expansion and deepening of sub-regional groupings such as MERCOSUR (the Southern Cone Common Market) and the proliferation of bilateral free trade agreements. Most all countries of the Western Hemisphere -- except the United States -- have been active in this process. The...

The Transportation Equity Act for the 21st Century (TEA-21) and the Federal Budget

The Transportation Equity Act for the 21st Century ( P.L. 105-178 )(TEA-21) changes the relationship between the highway trust fund and the federal budget process. Spending for highway programs is now linked directly to annual revenue collections for the highway trust fund. Core highway and mass transit program funding has been given special status in the discretionary portion of the federal budget by virtue of the creation of two new budget categories. As a result, highway and transit programs become similar to entitlement programs during the period FY2000 through FY2003. From the...

The Asian (Global?) Financial Crisis, the IMF, and Japan: Economic Issues

The Asian financial crisis involves four basic problems or issues: (1) the role, operations, and replenishment of funds of the International Monetary Fund, (2) a shortage of foreign exchange in Thailand, Indonesia, South Korea and other Asian countries that has caused the value of currencies and equities to fall dramatically, (3) inadequately developed financial sectors and mechanisms for allocating capital in the troubled Asian economies, and (4) effects of the crisis on both the United States and the world. In 1998, the crisis that had been confined primarily to Asia appeared to...

Trade with Developing Countries: Effects on U.S. Workers

Growth in U.S. trade with developing countries is one of the more troubling "globalization" issues and has been part of the debate over passage of fast-track authority, extension of the North American Free Trade Agreement (NAFTA), and the Africa trade bill. A central concern for many is whether this trade relationship leads to lost jobs or reduced wages for the U.S. labor force, particularly unskilled workers. Over the past three decades, U.S. trade with developing countries has expanded markedly. From 1987 to 1997, developing-country trade rose 195% (compared to 104% for trade...

Terrorism: Middle Eastern Groups and State Sponsors, 1998

During the 1980s and the early 1990s, Iran and terrorist groups it sponsors have been responsible for the most politically significant acts of Middle Eastern terrorism. In late 1997, signs began to appear that major factions within Iran want to change Iran's image from a backer of terrorism to a constructive force in the region. If this trend in Iran takes hold, there is a chance that state-sponsored Middle Eastern terrorism will decline over time as Iran moves away from active opposition to the Arab-Israeli peace process. The Arab-Israeli peace process is a longstanding major U.S....

The IMF's Proposed New Arrangements to Borrow (NAB): An Overview

In the wake of the Mexican financial crisis, the major industrial countries agreed, at the Halifax economic summit of June 15-16, 1995, to establish an "emergency financing mechanism." This goal would be achieved by the proposed establishment of the "New Arrangements to Borrow" (NAB), adopted by the International Monetary Fund's (IMF) Executive Board on January 27, 1997. The proposed NAB are medium-term lines of credit that will provide funds to the IMF to enable it to "forestall or cope with an impairment of the international monetary system, or to deal with an exceptional situation that...

Vice Presidential Vacancies: Congressional Procedures in the Ford and Rockefeller Nominations

Although the Constitution provides that the Vice President succeeds the President in cases of removal, death, resignation, or disability, it makes no provision for filling vacancies in the vice presidency. On sixteen occasions between 1789 and 1967, the vice presidency was vacant. In eight instances, the Vice President replaced a President who had died; in seven, the Vice President died in office; and in one case, the incumbent resigned. During these sometimes lengthy periods, the office remained vacant, and some other officer served as first in line to the President. Between 1792 and...

Internet Tax Bills in the 105th Congress

This report tracks the evolution and content of the Internet tax freedom bills. In general, the bills would impose a federal moratorium on the ability of state and local governments to impose taxes on certain aspects of the Internet and would establish a temporary federal commission to study selected issues and make policy recommendations.

The OECD Shipbuilding Agreement and Legislation in the 105th Congress

In December 1994, the United States, the European Union, Japan, Korea, and Norway signed an agreement on shipbuilding that was negotiated under the Organization for Economic Cooperation and Development (OECD). The agreement prohibits most subsidies for shipbuilding, limits financing assistance, allows actions against injurious pricing, and establishes a dispute resolution process. Although the United States was the lead proponent of the agreement, it is the only signatory that has not ratified the agreement. U.S. maritime industries are split. The largest shipyards oppose the agreement...

Tax Code Termination Act: A Fact Sheet

This report discusses the Tax Code Termination Act, which would “sunset” (repeal) the Internal Revenue Code of 1986 on December 31, 2002 and would require that any new federal tax system that is adopted be approved not later than July 4, 2002.

Tax Code Termination Act: A Fact Sheet

Morocco: Political and Economic Changes and U.S. Policy

This report describes the unprecedented strides in democratization and economic liberalization occurring in Morocco, where the first opposition-led government took power in February 1998. The government of this long-term U.S. ally is trying to address endemic economic and social problems while adhering to stringent International Monetary Fund economic guidelines. Active Islamist groups capitalize on societal ills and create a troubling context for the government's efforts. They and others are victims of human rights abuses. The overall human rights situation is deficient; yet...

Banking and Finance: Legislative Initiatives in the 105th Congress, Second Session

This report reviews major banking and finance issues that are receiving congressional attention in the 2nd session of the 105th Congress. It will be updated periodically to reflect legislative developments. Relevant CRS products are referenced.

The Budget of the Department of Housing and Urban Development (HUD) FY1999

This report provides an overview of FY1999 budget request for the Department of Housing and Urban Development (HUD). Initially, the report is limited to the Administration’s budget request for HUD. The report is updated periodically as legislative action occurs on FY1999 appropriations for HUD and as action occurs on authorizing legislation to implement the budget proposals.

Iran: Relations With Key Central Asian States

Iran sees the Central Asian region as an arena for reducing its own isolation. Hoping to make itself an attractive economic and political partner to these states, Iran has been cautious in supporting radical Islamic opposition movements in the region. Several Central Asian states are proceeding with or contemplating energy projects that transit Iran. These projects present the Administration and Congress with the dilemma of how to keep Iran's financial resources constrained while at the same time fostering economic and political development in Central Asia. Provisions in S. 2334 ,...

Budget Surpluses: Economic Effects of Debt Repayment, Tax Cuts, or Spending - An Overview

Updated projections released on July 15 by the Congressional Budget Office (CBO) indicate budget surpluses rising from $63 billion (0.9% of GDP) in FY1998 to more than $100 billion (1.3% to 1.5% of GDP) from FY2002 through FY2005 and over $200 billion (1.8% to 1.9%) from FY2006 through FY2008.1

Compensating Farmers for the Tobacco Settlement

The legislative proposals designed to reduce smoking, primarily by teenagers, are likely to have negative economic consequences for tobacco growers and tobacco-dependent communities. This report discusses the possibility of some kind of compensation to farmers as part of the settlement package legislation.

Technology, Trade, and Security Issues Between the United States and the People's Republic of China: A Trip Report, August 1997

From August 12th through August 20th, 1997, a congressional staff delegation visited the People's Republic of China. This report provides the research findings of this group, which was sponsored by the U.S.-Asia Institute, and was the 37th such trip undertaken since 1979 to increase the understanding between the two nations. The U.S. group was comprised of seven congressional staff from the House of Representatives, the U.S. Senate, and the Congressional Research Service. The delegation met with Chinese industry and business leaders in Beijing, Xi'an, Shanghai, and Hong Kong. The group...

Airport Finance: A Brief Overview

Current Economic Conditions and Selected Forecasts

This report begins with a comprehensive presentation of current economic conditions focusing on income growth, unemployment, and inflation. The posture of monetary and fiscal policy is surveyed as are the forecasts of economic activity. It concludes with data on the factors important for economic growth.

One Million Personal Bankruptcies a Year: Economic Implications and Policy Options

This report examines various explanations for the rapid rise in personal bankruptcy filings in the United States since 1980, the economic significance of the phenomenon, and policy options. This discussion and analysis provide a background for consideration of legislation before the 105th Congress ( H.R. 3150 and S. 1301), which proposes to reform the consumer bankruptcy process.

The Work Opportunity Tax Credit and the 105th Congress

The Work Opportunity Tax Credit (WOTC) was initiated in the Small Business Job Protection Act of 1996 (P.L. 104-188). It is a temporary measure intended to encourage for-profit employers to hire members of specifically designated groups thought to experience recurring problems in the labor market. This document describes the WOTC and identifies issues for members of the 105th Congress.

Copyright Term Extension: Estimating the Economic Values

This report considers proposals to extend the duration of copyrights by 20 years (as in H.R. 2589 and other bills) and related proposals to charge a fee to the owners in order to receive the extension. The method of analysis is economic rather than legal. The report reviews the basic economic principals involved in copyright law and gives rough estimates of the value of copyrights on books, music, and movies produced in the 1920s and 1930s — those that would be most immediately affected by an extension of copyright terms.

Copyright Term Extension: Estimating the Economic Values

This report considers proposals to extend the duration of copyrights by 20 years (as in H.R. 2589 and other bills) and related proposals to charge a fee to the owners in order to receive the extension. The method of analysis is economic rather than legal. The report reviews the basic economic principals involved in copyright law and gives rough estimates of the value of copyrights on books, music, and movies produced in the 1920s and 1930s — those that would be most immediately affected by an extension of copyright terms.

The Kodak-Fuji Film Case at the WTO and the Openness of Japan's Film Market

On March 31, 1998, the World Trade Organization released a decision in a U.S.-initiated dispute involving access by Kodak to the photographic film and paper market in Japan. The WTO panel decided against the United States, but it did not address the more general question of market barriers in Japan. In the process of arguing its position at the WTO, Japan made representations that its market for photographic film and paper is open. Rather than appeal the case, one U.S. strategy is to hold Japan to its representations about the openness of its markets. In the 105th Congress, S.Con.Res. 88 ...

Armenia: Unexpected Change in Government

This report describes the recent change in the Armenian government and its possible consequences. President Levon Ter-Petrosyan resigned on February 3, 1998, primarily because of domestic opposition to his acceptance of an international peace plan to resolve the conflict over Nagorno- Karabakh with Azerbaijan. Prime Minister Robert Kocharyan assumed power for an interim period and then won the special presidential election of March 1998. His new government wants to advance market reforms and change the Constitution to balance power among the branches of government. Kocharyan rejects the...

International Monetary Fund (IMF): Costs and Benefits of U.S. Participation

This report examines U.S. costs of participating in the International Monetary Fund (IMF). Under conventions governing U.S. budgetary treatment of the IMF, any expenditures (outlays) arising from transactions with the IMF are offset by the increase in the U.S. reserve position in the IMF and, thus, have no net impact on the budget. Nevertheless, funds for the IMF are both authorized and appropriated. Expenditures in connection with U.S. participation in the Fund, however, do give rise to three other types of financial flows that enter the budget: an increase or decrease in the...

NATO and the European Union: Economic Capacity of New Member Countries and Opportunity Costs

Formal entry of the Czech Republic, Hungary, and Poland into the North Atlantic Treaty Organization (NATO) is scheduled for spring 1999, with accession to the European Union (EU) several years later. In tight budgets over the coming decade defense spending in these three nations, with or without NATO membership, would have to compete with other incremental programs designed to further economic transition and meet European Union (EU) accession requirements. The cost of opportunities foregone by choice of one required program over another could represent significant opportunity costs when...

International Science and Technology Issues: Summary of a Report to the Committee on Science

The 1990s have been a time of great vitality and change for U.S. science and technology (S&T) policy and research and development (R&D) programs. As a result, many Members of Congress have asked what might be done to set national S&T priorities more efficiently, establish policies, and fund or otherwise support R&D programs that best enhance U.S. resources?

The answers may be found, in part, by understanding other nations' S&T policies and R&D programs within the context of U.S. policy and programs. For many, U.S. S&T policy (and the R&D programs supported by the policy) is perhaps...

Federal Regulation of Working Hours: The Ballenger and Ashcroft Proposals (H.R. 1 and S. 4)

During the 104 Congress, legislation was considered that would have altered the 40-hour workweek and overtime pay requirements for private sector workers. In somewhat altered form, such legislation [H.R. 1 (Ballenger) and S. 4 (Ashcroft)] has been reintroduced in the 105 Congress. This report, very briefly, summarizes the issues presented by H.R. 1 and S. 4.

The Work Opportunity Tax Credit: A Fact Sheet

The 104th Congress replaced the Targeted Jobs Tax Credit (TJTC, 1978-1994) with the Work Opportunity Tax Credit (WOTC) in section 1201 of the Small Business Job Protection Act of 1996 (P.L. 104-188). This document provides basic facts about the WOTC.

Summit of the Americas II, April 18-19, 1998: Background, Objectives, and Expectations

President William Clinton will attend Summit of the Americas II in Santiago, Chile, on April 18-19, 1998, with 34 democratic Presidents and Prime Ministers from Latin American and Caribbean countries expected to attend. This is a follow up to Summit of the Americas I hosted by President Clinton in Miami in December 1994. The 1994 Miami Summit created a Plan of Action with 23 initiatives in four major areas. Under the leadership of various countries and organizations, these initiatives have been advanced, and major agreements have been concluded and are in the process of being implemented....

Civilian Nuclear Spent Fuel Temporary Storage Options

The Department of Energy (DOE) is studying a site at Yucca Mountain, Nevada, for a permanent underground repository for highly radioactive spent fuel from nuclear reactors, but delays have pushed back the facility’s opening date to 2010 at the earliest. In the meantime, spent fuel is accumulating at U.S. nuclear plant sites at the rate of about 2,000 metric tons per year. Major options for managing those growing quantities of nuclear spent fuel include continued storage at reactors, construction of a DOE interim storage site near Yucca Mountain, and licensing of private storage facilities....

Federal Excise Taxes and Statutory Exemptions

This report consists of a chart of selected federal excise taxes that apply to sales of goods and services. The chart is divided into two columns. The first indicates how the taxes are imposed, and the second contains a general listing of statutory exemptions, with a special emphasis on whether there are statutory exemptions for federal agencies. This report does not cover such details as how the tax revenues are used, tax rates, effective dates, or sunset dates. The report does not cover payroll taxes such as social security, Medicare, or unemployment taxes, nor does it include excise...

Bankruptcy and Credit Card Debt: Is There A Causal Relationship?

Personal bankruptcy filings now exceed one million per year. Why should bankruptcies have risen to record levels during a period when the economy has enjoyed two of the longest peacetime expansions in history, with unemployment, inflation, and interest rates all falling? Something must have changed in household finance; credit cards are among the "usual suspects." Credit cards figure prominently in the debate over bankruptcy reform. Credit card lenders argue that bankruptcy makes it is too easy for debtors to avoid paying their debts, creating an incentive for reckless or fraudulent...

Africa: Trade and Development Initiatives by the Clinton Administration and Congress

In February 1997, the Clinton Administration submitted the second of five annual reports on the Administration's Comprehensive Trade and Development Policy for Africa as required by section 134 of the Uruguay Round Agreements Act (House Document 103-3415, Vol. 1.). On April 24, 1997, members of the African Trade and Investment

Caucus introduced a bill, H.R. 1432, on U.S.-Africa trade and investment issues. In his State of the Union address in January 1998, President Clinton called on Congress to pass the trade legislation.

Maquiladoras and NAFTA: The Economics of U.S.-Mexico Production Sharing and Trade

Debate continues over the benefits of U.S. trade with Mexico, the North American Free Trade Agreement (NAFTA), and particularly maquiladoras, or cross-border production sharing plants. Maquiladoras generate a large portion of U.S.-Mexico trade, yet the economic effects are not widely understood. Many believe there is no benefit to such trade because it leads to the loss of U.S. jobs, production, and wages. Maquiladora products, however, have a high U.S. content that in addition to fostering productivity gains in both countries, may actually minimize the loss of U.S. jobs by allowing the...

The International Monetary Fund's (IMF) Proposed Quota Increase: Issues for Congress

The International Monetary Fund (IMF) is the international lender-of-last-resort. Each of the 182 members of the IMF have a "quota," which broadly reflects the size of its economy and its relative position in the world economy. Among other things, quotas determine the size of a country's contribution to the IMF's capital. Thus, they provide the funds out of which the IMF makes its loans. Under the IMF's Articles of Agreement, a general review of the adequacy of the IMF's quota resources must be conducted at least every five years. The Eleventh General Quota Review has just been...

Appropriations for FY1998: U.S. Department of Agriculture and Related Agencies

The President signed into law the FY1998 appropriations act for USDA and related agencies ( P.L. 105-86 , H.R. 2160 ) on November 18, 1997. The House and Senate gave final approval to the $49.55 billion measure on October 6 and 29, respectively. Two days after signing the bill, the President exercised his line-item-veto authority by canceling funds for five agricultural research projects, for total savings of $1.9 million. Congress has 30 calendar days to disapprove the cancellations, once it returns in late January 1998. The FY1998 measure provides $3.6 billion less than the FY1997...

APEC and the 1997 Summit in Vancouver

This report discusses the November 25, 1997 summit held by leaders of the Asia Pacific Economic Cooperation (APEC) in Vancouver, B.C., Canada. The purpose of the summit was to further pursue the APEC agenda of endorsing a framework developed by APEC leaders' finance ministers to promote financial stability in the Asia-Pacific region and to supplement resources by the International Monetary Fund when necessary.

APEC and the 1997 Summit in Vancouver

Appropriations for FY1998: Department of Transportation and Related Agencies

For FY1998, the U.S. Department of Transportation (DOT) requested total funding of $38.384 billion, about a 2.6% decrease from the FY1997 estimate of $39.204 billion. The FY1998 budget request for the DOT was similar in many respects to the FY1997 appropriation. For many of the DOT modal administrations, for example, the Federal Railroad Administration, the Federal Aviation Administration, and the Federal Highway Administration, funding levels were requested to decrease slightly but most programs and priorities would continue. A small increase was for the U.S. Coast Guard. There were...

Fast Track for Trade Agreements: Procedural Controls for Congress and Proposed Alternatives

This report discusses the fast track trade procedures in the Trade Act of 1974 operate as procedural rules of the House and Senate, and the statute itself declares them to be enacted as an exercise of the constitutional authority of each house to determine its own rules. These procedures prevent Congress from altering an implementing bill or declining to act, but permit it to enact or reject the bill. By these means Congress retains authority to legislate in the areas covered, yet affords the President conditions for effective negotiation.

China and the Multilateral Development Banks

Congress is currently considering appropriations for U.S. contributions to the World Bank and other multilateral development banks (MDBs) as well as separate legislation that would require U.S. representatives to these institutions to oppose all concessional loans to China. This report provides a brief analysis of China’s relationship with the MDBs to highlight some issues and help Members of Congress, congressional staff, and observers better understand the context for the current debates in Congress and the multilateral agencies.

China and the Multilateral Development Banks

Congress is currently considering appropriations for U.S. contributions to the World Bank and other multilateral development banks (MDBs) as well as separate legislation that would require U.S. representatives to these institutions to oppose all concessional loans to China. This report provides a brief analysis of China’s relationship with the MDBs to highlight some issues and help Members of Congress, congressional staff, and observers better understand the context for the current debates in Congress and the multilateral agencies.

China's Economic Development: An Overview

Since the initiation of economic and trade reforms in 1978, China has been one of the world's fastest growing economies. According to Chinese data, real GDP grew at an average annual rate of 10% between 1979 and 1996, increasing the real size of the Chinese economy by five times its 1978 level and substantially raising Chinese living standards. Much of China's recent economic growth has been driven by a high rate of capital accumulation and large productivity gains, both largely the result of economic reforms. Foreign investment and trade have played a major role in China's economic...

The Israeli Economy: Overview and Developments Through 1997

The Israeli economy belies simple categorization. Based on a per capita income level of $16,783, a large services sector, and hundreds of dynamic high-tech companies, it is modern and advanced. Based on the large role the government still plays in the economy, it is interventionist and regulated. And based on the country's high defense requirements, chronic trade deficits, and political economy, it can be described as distinctive or unique. Since 1948, the economy has experienced three different stages of development. The first (1948-1972) and third stages (1989-1995) were classic boom...

China: U.S. Economic Sanctions

The use of sanctions as a foreign policy tool to bring states into conformity with certain international norms, whether on human rights, nonproliferation, aggression, or a number of other issues, plays a central and controversial part in current U.S. foreign policy debates. Much of the authority to impose, waive, or lift sanctions rests with the President. In the case of the People's Republic of China, however, Congress has played an active part in constructing the U.S. sanction regime and, given current tensions, will probably examine the issue of U.S.-China relations in the coming...

Agriculture: A Glossary of Terms, Programs, and Laws

This report includes a glossary of approximately 1,700 agriculture and related terms (e.g., food programs, conservation, forestry, environmental protection, etc.). Besides defining terms and phrases with specialized meanings for agriculture, the glossary also identifies acronyms, agencies, programs, and laws related to agriculture.

China: U.S. Economic Sanctions

This report presents a history of U.S. economic sanctions imposed against the People's Republic of China for foreign policy reasons since 1949. It highlights sanctions that are currently active and details occasions on which those restrictions have been modified, waived or permanently lifted. The report provides citations for Presidential authority in current law and the Administration's issuance of regulations and administrative orders.

Gasoline Excise Tax—Historical Revenues: Fact Sheet

The federal government has levied a tax on gasoline since 1932. This report provides a table that examines this tax since its inception.

Russian Conventional Armed Forces: On the Verge of Collapse?

All quantitative indicators show a sharp, and in most cases an accelerating, decline in the size of the Russian armed forces. Since 1986, Russian military manpower has decreased by over 70 percent; tanks and other armored vehicles by two-thirds; and artillery, combat aircraft, and surface warships by one-third. Weapons procurement has been plummeting for over a decade. In some key categories, such as aircraft, tanks, and surface warships, procurement has virtually stopped. This has led not only to a decline in present inventory, but implies a long-term crisis of bloc obsolescence in the...

NAFTA, Mexican Trade Policy, and U.S.-Mexico Trade: A Longer Term Perspective

The North American Free Trade Agreement (NAFTA) has been in place for over three years, and Congress continues to evaluate it as part of the trade policy process. "Free trade" is a contentious debate and has become even more complicated in the NAFTA context because of Mexico's 1995 economic crisis. Many critics consider the sudden shift from surplus to deficit in the U.S. trade balance with Mexico a clear indication of NAFTA's failure. Others see NAFTA as a positive force supporting U.S. exports. To sort out the effects of trade agreements, this report evaluates the U.S.- Mexico trade...

Aviation Taxes and the Airport and Airway Trust Fund

This report discusses the reauthorization of excise tax revenues for the airport and airway trust fund, which has been a contentious issue for the last two years. Most of the concern during this

period was about future funding needs for the Federal Aviation Administration (FAA). The issue, somewhat unexpectedly, became an element of the tax plans embedded in House and Senate FY1998 budget reconciliation proposals. The House proposed a major structural change in how aviation taxes would be imposed.

The IMF's "General Arrangements to Borrow" (GAB): A Background Paper

In the wake of the Mexican financial crisis, the G-7 industrial countries (1) agreed, at the Halifax economic summit of June 15-16, 1995, to establish an "emergency financing mechanism." This proposal has ultimately evolved into the so-called "New Arrangements to Borrow" (NAB). (2) The NAB, however, parallels and complements the GAB, which were established in 1962. While the proposed NAB would become the facility of first recourse, the GAB remain in existence and are still available to be drawn upon. More importantly, the SDR 17.0 billion (3) in existing financial commitments to the...

Environmental Protection: How Much It Costs and Who Pays

A recurring issue in environmental policy is the cost of pollution control imposed on individuals, businesses, and governments. To inform policymakers about these costs, a number of surveys and analyses have been conducted over the years. Consistent, basic sources have been an annual survey of costs to manufacturers, conducted by the Bureau of Census (BOC), and an annual analysis of total costs, prepared by the Bureau of Economic Analysis (BEA). Overall, the BEA analysis showed the nation spent $122 billion for pollution abatement and control in 1994, or about 1.76% of Gross Domestic...

Excise Taxes on Alcohol, Tobacco, and Gasoline: History and Inflation Adjusted Rates

This report provides inflation adjusted excise tax rates for alcohol, tobacco, and gasoline products. The base for computation is November 1951; the adjustments show what the tax rates would be if they had been increased to reflect inflation. All of the above cited commodities had rate increases effective for that date under the Revenue Act of 1951. Just as the Congress was prepared to lower excise tax rates because of peacetime conditions, plans had to be revised as a result of the start of the Korean War. Thus, the Revenue Act of 1951 was born out of revenue needs due to increased...

The Marshall Plan: Design, Accomplishments, and Relevance to the Present

Periodically, Members of Congress and others have recommended establishment of a 'Marshall Plan' for Central America, Eastern Europe, the former Soviet Union, and elsewhere. They do so largely because the original Marshall Plan, a program of U.S. assistance to Europe during the period 1948-1951, is considered by many to have been the most effective ever of U.S. foreign aid programs. An effort to prevent the economic deterioration of Europe, expansion of communism, and stagnation of world trade, the Plan sought to stimulate European production, promote adoption of policies leading to...

Vietnam: Economic/Political Developments and U.S. Relations

Vietnam's experiment with economic reforms continues to outpace liberalization of its political system. The Eighth Vietnamese Party Congress, which ended on July 2, 1996, failed to resolve deep- rooted differences among the communist leadership concerning the pace and scope of economic reforms. These continuing divisions among Vietnam's top leaders likely will affect relations with the United States, including efforts to normalize commercial relations.

International Monetary Fund (IMF) Gold Auctions: Current Proposal, History, and Congressional Role

The International Monetary Fund (IMF) is proposing to sell 5 million ounces of gold, equal to a little less than 5% of its total gold holdings and, at current market prices, worth about $1.9 billion. Profits from the gold sale would be used to provide debt relief to poor countries. Although the IMF now has sufficient votes to adopt the proposal, the opposition of Germany, Switzerland, and Italy has resulted in an indefinite delay. Gold sales held by the IMF between 1976 and 1980 provided substantial profits -- $5.7 billion -- which were used to establish the IMF's Trust Fund, which was...

Legislative Procedure for Disapproving the Renewal of China's Most-Favored-Nation Status

The continuation in effect of China's most-favored-nation status with the United States is contingent principally on the maintenance in force of the waiver of full compliance with the requirements of the freedom-of-emigration ("Jackson-Vanik") amendment of the Trade Act of 1974. Waivers and their underlying authority must be extended annually. Such extensions are automatic upon presidential recommendation, to be made by June 3, unless they are disapproved by a joint resolution of Congress. Such resolutions are enacted -- should the Congress wish to do so -- under specific...

Russia and U.S. Foreign Assistance: 1992-1996

This report, written in 1996, provides historical background that may be useful to Congress as it considers funding levels, types of programs, and problems in implementation of U.S. assistance to other countries. As defined by Congress in the FREEDOM Support Act and the pronouncements of two Administrations, among key objectives of U.S. foreign policy toward Russia are the promotion of a democratic system and a free market economy. Foreign assistance has been a prominent tool of that policy. Many factors in the United States and Russia have affected the course of the U.S. program...

Services Trade and the Uruguay Round: An Issue Overview

The General Agreement on Trade in Services (GATS), which went into effect on January 1, 1995, is a significant achievement, but only a first step on the road to liberalization of services barriers. For the first time, legally enforceable multilateral rules and principles for services trade are part of the international trading system. At the same time, the immediate elimination or reduction of barriers to services transactions was much less than desired by many. The GATS, however, includes provisions for future negotiations to liberalize trade. The Congress will have an important...

The Flat Tax and Other Proposals: Who Will Bear the Tax Burden?

Several proposals for major reform of the Federal income tax system, including replacement of the current tax with a new type of tax, have been introduced or considered in the 104th Congress. These proposals include national sales and value added taxes, the Armey flat tax, and the Nunn-Domenici- Kerrey USA tax. Representative Gephardt has proposed a major reform of the income tax. These proposals alter the tax base, the rate structure, and the point of collection of taxes in ways that have important economic implications. The Armey flat tax, although often discussed as if it were an...

Individual Transferable Quotas in Fishery Management

This report discusses individual transferable quota (ITQ), which is an allocated privilege of landing a specified portion of the total annual fish catch in the form of quota shares.

The GATT and the WTO: An Overview

Under the auspices of the General Agreement on Tariffs and Trade (GATT), eight rounds of trade negotiations lowered tariffs of developed countries to an average 3.9 percent. New areas, such as services, intellectual property rights, agriculture, and textiles and apparel, were brought under the discipline of the GATT for the first time in the Uruguay Round. The World Trade Organization (WTO), a permanent entity agreed on during the Uruguay Round, went into effect January 1, 1995. Multilateral trade issues for the future include continuing services negotiations, the relationship of...

Committee System: Rules Changes in the House, 104th Congress

The election of a Republican majority in the House for the first time in 40 years brought extensive change to the committee system. Many of the changes were previously recommended by the Republican members of the Joint Committee on the Organization of Congress which reported during the 103d Congress, but on which no action was taken. Others have traditionally been included in the Republican alternative to the Democratic rules package adopted on the opening day of a new Congress. Still others were part of the Contract with America. This fact sheet details changes in the committee system...

The Former Soviet Union and U.S. Foreign Aid: Implementing the Assistance Program, 1992-1994

This report, written in 1995, provides historical background that may be useful to Congress as it considers funding levels, types of programs, and problems in implementation of U.S. assistance to other countries. In FY1994, the new states of the former Soviet Union (FSU) collectively became the second largest recipient of U.S. foreign assistance made available from all sources, reflecting the exceptional importance attached by the U.S. Government to the region. Whether and how the assistance program is helping to bring about democratic systems and free market economies is increasingly a...

Market-Based Environmental Management: Issues in Implementation

The acid rain title of the 1990 Clean Air Act Amendments authorizes the first nationwide system for trading the regional location and method of pollution control. This market-type mechanism, if successfully implemented, could reduce the cost of compliance of meeting new limits on sulfur dioxide emissions, the main precursor of acid rain. Successful passage of the sulfur dioxide trading mechanism has invigorated efforts to add similar mechanisms to the regulatory regimes for other environmental management areas. Limitations of current regulatory approaches, complexity of remaining and...

Plant Closings, Mass Layoffs, and Worker Dislocations: Data Issues

For at least 15 years Members of Congress have continued to ask: How many U.S. manufacturing plants have closed? For at least 15 years they have continued to ask: How many U.S. manufacturing plants have relocated abroad, and where have they gone? For at least 15 years the answer has been: For the most part, those questions can't be answered, based on Government data. How many plants are moving to Mexico? What industries and what States are the plants from? How many U.S. workers are losing their jobs as a result? It appears that still, after two legislative attempts to mandate collection...