Publications :  The Watcher :  OMB Watcher Vol. 7: 2006 :  May 16, 2006 Vol. 7, No. 10 : 

In This Issue

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Federal Court Rejects Challenge to Limitations on Grassroots Broadcasts (05/16/2006)
On May 9 a federal court denied the Christian Civic League of Maine's (CCLM) request for a preliminary injunction, allowing a Federal Election Commission (FEC) rule that bans "electioneering" broadcasts to be applied to the nonprofit group. The FEC prohibits broadcast references to federal candidates 30 days before a primary or 60 days before an election. Because the injunction was rejected, starting on May 14 and lasting until June 13 (when the senate primary in Maine takes place) CCLM will be barred from airing grassroots lobbying ads urging people in Maine to contact Sen. Olympia Snowe (R-ME) and ask her to support the constitutional amendment banning gay marriage. CCLM has appealed to the Supreme Court.

Lobby Reform Bill Squeaks Through House (05/16/2006)
A lobbying and ethics reform bill that barely passed the House last week is headed to what will likely be a contentious conference between the House and Senate, with lawmakers far from agreement on what to do about legislative earmarks, congressional travel paid by non-governmental entities, and 527 organizations, among other issues.

Federal Grant Rules in the Courts (05/16/2006)
Decision Favors Charity, Another Case Challenges OMB Favoritism of Faith-Based Groups
In a victory for nonprofit advocacy rights, a sweeping restriction on the privately-funded speech of nonprofits that participate in the U.S. government's international HIV/AIDS program has been held in violation of the First Amendment. Meanwhile, a challenge is being mounted against an OMB grading system allegedly used to encourage an increase in government funding to religious charities.

Closing of Muslim Charity Bank Account Causes Tension (05/16/2006)
On May 8, the Council on American-Islamic Relations (CAIR) and the Muslim American Society's (MAS) Freedom Foundation held a news conference in front of a Wachovia bank in Washington, DC, urging community members to speak out against the recent closing of a Muslim charity's accounts. The Wachovia Corporation closed the accounts of the Foundation for Appropriate and Immediate Temporary Help (FAITH) in January of 2006, despite the organization having been charged with no crime and having not even been informed of any federal investigation into its activities.

Dishonest Budget Gimmick Enables Passage of Irresponsible Tax Cuts (05/16/2006)
One day after the House passed the $70 billion tax reconciliation measure, the Senate passed it as well, sending the bill to President Bush for his signature. With these tax cuts, this Congress has once again proven itself to be a body determined to shirk fiscal responsibility and kowtow to the regressive, revenue-draining tax policies of this administration. And it was all made possible by a dishonest budget gimmick.

Fed. Board Report Underscores Estate Tax's Importance (05/16/2006)
Congressional Republicans are preparing to add to the federal debt by pushing through more tax cuts for the super-rich after just pushing through a $70 billion tax cut that mostly benefits the wealthy. When the Senate resumes work after Memorial Day, Senate Republicans will once again take up their assault on the estate tax, a tax levied solely on the wealthiest Americans. Senate Majority Leader Bill Frist (R-TN) remains committed to repealing the dynasty tax despite mounting evidence against repeal, the most recently of which being a report by the Federal Reserve Board (FRB) finding that during a 15-year period ending in 2004 "there was a shift in favor of the top of the [wealth] distribution."

House Fails to Pass Budget Again--Approps Move Forward Just the Same (05/16/2006)
House Majority Leader John Boehner (R-OH) once again failed to bring the budget resolution to the floor last week despite rumors and rumblings from the GOP leadership that passage of the bill was imminent. Having reached a compromise with Appropriations Committee Chairman Jerry Lewis (R-CA), Boehner was still unable to garner enough support from within the Republican caucus to hold a vote. Considering the difficulty of finding agreement in conference with the Senate at this late date, passing the resolution is now bordering on pointless anyway.

Update: Boehner Makes Sunset Commission Proposal Legislative Priority (05/16/2006)
House of Representatives Majority Leader John Boehner (R-OH) has begun work behind the scenes to draft new sunset commission legislation and has signaled to his party that the sunset commission will be a legislative priority.

Congress Could Save TRI from EPA's Chopping Block (05/16/2006)
Congress is expected to vote on an amendment this week that would save the Toxics Release Inventory (TRI) from changes the Environmental Protection Agency (EPA) proposed in September 2005 and expects to finalize this December. The Pallone-Solis Toxics Right to Know Amendment to the Interior Appropriations Bill would prevent the EPA from spending money to finalize the proposals. The amendment is welcome news to environmental, public health, first responder, and labor groups, who have mounted a campaign to compel the EPA to drop its plans to reduce information on toxic pollution.

Playing Politics with Government Contracts (05/16/2006)
Secretary of Housing and Urban Development (HUD) Alphonso Jackson suggested at a forum in Dallas that federal contracts would not be awarded to those who have political disagreements with President Bush. He described a meeting with a contractor that was about to receive federal money until the contractor expressed his disapproval of the president. Jackson has since told reporters that he made the story up and that federal contracts are not awarded on the basis of political ideology. Regardless of the veracity of the anecdote, however, it highlights the lack of transparency around the connections between politics and government contracts.

NSA Caught Spying Again (05/16/2006)
The National Security Agency (NSA), it was recently revealed, has been secretly amassing the largest database ever created on the telephone calling habits of millions of Americans. News of the data mining program comes as the NSA program of eavesdropping on international telephone calls without warrants remains unresolved, continuing to draw consternation and at times furor from both Congress and the public.

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