Publications :  The Watcher :  OMB Watcher Vol. 8: 2007 :  July 24, 2007 Vol. 8, No. 15 : 

In This Issue

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Pressure to Pass Lobby Reform Grows (07/24/2007)
No one is certain when Congress will leave for its summer recess. Senate Majority Leader Harry Reid (D-NV) has said the Senate will recess only when it has passed several high profile bills, including lobby reform. Progress on this legislation has stalled because Sen. Jim DeMint (R-SC) has used parliamentary procedure to stop Reid from appointing the Senate conferees. One solution to the problem may be that the House and Senate pass identical bills to avoid a conference. However, reform groups have raised concerns about this process, since it may result in weakened legislation.

New Executive Order on Iraq Expands Problems for Charities (07/24/2007)
President Bush issued an executive order on July 16 that expands the government's authority to block the U.S.-based financial assets of individuals or groups in Iraq beyond those it designates as supporters of terrorism, to include those who act, or assist those who act, against peace and stability in Iraq. The order, titled Blocking Property of Certain Persons Who Threaten Stabilization Efforts in Iraq, directs the U.S. Treasury Department to freeze assets of those who impede "efforts to promote economic reconstruction and political reform in Iraq or to provide humanitarian assistance to the Iraqi people." Experts both in and out of the charitable sector have expressed concern about the potential impact on civil liberties and provision of aid in the region. As the Washington Post warns, "Be careful what you say and whom you help -- especially when it comes to the Iraq war and the Iraqi government."

FEC Will Draft Rule Allowing Issue Advocacy Broadcasts (07/24/2007)
Following the June U.S. Supreme Court ruling in Federal Election Commission vs. Wisconsin Right to Life, Inc., which found the federal electioneering communications ban unconstitutional when applied to genuine issue ads, there has been a fast-paced effort to tie up loose ends in related cases and set the stage for the 2008 election. The Federal Election Commission (FEC) announced that it will issue a proposed rule in August to incorporate the decision into its regulations. In two related court cases, the FEC conceded that certain ads in question were genuine issue ads, including one that was critical of a senator's position on a bill. The "electioneering communications" provision of the Bipartisan Campaign Reform Act of 2002 (BCRA) prohibits corporations, including nonprofits, from paying for broadcasts that refer to a candidate for federal office within 30 days of a primary and 60 days of a general election.

Trial Testing Humanitarian Aid Standards Begins (07/24/2007)
The jury has been sworn in for the criminal trial of the Holy Land Foundation (HLF) and five of its leaders, who are charged with indirectly aiding Hamas by providing charitable aid to grassroots organizations in the West Bank and Gaza. The case is focusing public attention on two issues important to the charitable sector. First, some of the secret evidence used to shut down HLF and freeze its assets in 2001 will come to light, and its reliability and veracity will be challenged. Secondly, the case raises the question of whether it is a crime to provide humanitarian aid through organizations that are not designated as supporters of terrorism. The trial in the U.S. District Court in Dallas, TX, is expected to take three to five months.

Bush's Regulatory Changes Set to Go into Effect (07/24/2007)
As of today, July 24, federal agencies are to be in full compliance with all the provisions of Executive Order 13422 (E.O. 13422), which amends the regulatory process for agencies, and the Final Bulletin for Agency Good Guidance Practices. Both documents were issued Jan. 18 and work in concert to bring significant changes to the way agencies develop and enforce public protections.

Amidst Increased Scrutiny, FDA Wants to Shut Testing Labs (07/24/2007)
Amidst increased scrutiny by the public and Congress of the problems with food imports and instances of bacterial outbreaks in the domestic food supply, the U.S. Food and Drug Administration (FDA) plans to close 7 of 13 laboratories that test for food safety.

White House Delays Whale Protection Rule (07/24/2007)
The White House is currently delaying the completion of a final rule intended to protect a critically endangered whale species. Critics are concerned the Bush administration is giving special access to business interests and overemphasizing economic considerations in its review of the rule. The delay of the whale protection rule is indicative of a larger problem in the White House regulatory review process.

Questions, Concerns Surround Start of Nussle Confirmation Hearings (07/24/2007)
On June 19, Office of Management and Budget (OMB) Director Rob Portman announced his resignation, effective in August. The same day, President Bush nominated former House Budget Committee chairman Jim Nussle (R-IA) to be the next OMB director. Today, July 24, the Senate Homeland Security and Governmental Affairs Committee (HSGAC) held the first confirmation hearing for Nussle; on July 26, the Senate Budget Committee, which also has jurisdiction over the nomination, will hold its own hearings.

Sustaining Presidential Vetoes May Become More Difficult (07/24/2007)
As Congress continues making progress on appropriations legislation, and as details of its spending priorities are revealed in each of the twelve FY 2008 appropriations bills, signs of waning enthusiasm for sustaining presidential vetoes are appearing within a group of 147 House Republicans. While this group vowed to support any presidential veto of appropriations bills, eight of the appropriations bills passed thus far by the House have garnered significant bipartisan support, defraying the solidarity of that coalition.

Reauthorization of Children's Health Insurance Program Gains Momentum (07/24/2007)
On July 19, the Senate Finance Committee approved a proposal to expand coverage of the State Children's Health Insurance Program (SCHIP) to four million additional children who would otherwise not have health insurance. The entire Senate is expected to vote on the proposal this week (July 24-27), while the House is expected to act soon to approve legislation providing insurance for even more children than the Senate's version. The president has threatened to veto the Senate Finance Committee-approved version, even though it cleared the committee with strong bipartisan support, 17-4.

Another Attempt at Ending IRS Privatization Program Moves Forward (07/24/2007)
Both the House and Senate have taken important steps toward ending the wasteful and risky Internal Revenue Service (IRS) private tax collection program. The House Ways and Means Committee approved a bill (H.R. 3056) that would repeal the program, and the Senate Appropriations Committee cleared a bill (H.R. 2829) that would tightly limit the funding available at the IRS to administer the program.

OMB Releases Flawed Mid-Session Budget Review (07/24/2007)
On July 11, the Office of Management and Budget (OMB) released its annual Mid-Session Review, which contains updated estimates of the budget deficit, receipts, outlays and budget authority for fiscal years 2007 through 2012. While the administration trumpeted the decrease in the projected deficit, several aspects of the review cast doubt on the accuracy of these claims. In addition, the projections for years 2008-2012 were less noted and far more sobering.

FEMA Ignores Toxic Trailers of Hurricane Victims (07/24/2007)
The Federal Emergency Management Agency (FEMA) turned a blind eye to Katrina victims who became ill while living in FEMA-provided trailers, according to testimony given at a hearing of the House Committee on Oversight and Government Reform on July 19. Trailer tenants and experts described how FEMA, with evidence of toxic levels of formaldehyde in the trailers from construction materials, refused to substantively evaluate the extent of the problem, respond to known instances of formaldehyde poisoning or take adequate precautionary action.

Energy Task Force Advisors Revealed, Six Years after Meetings (07/24/2007)
In the long-standing struggle to gain access to details regarding Vice President Dick Cheney's energy task force meetings in 2000 and 2001, the Washington Post reported last week some of the many players who influenced the vice president's policy recommendations. An undisclosed former White House official gave the Post a list of approximately 300 names, companies and organizations who met with White House staff.

Baltimore Calls on Congress for More Chemical Security (07/24/2007)
On July 16, the Baltimore City Council unanimously passed a resolution supporting federal chemical security legislation that would require, when feasible, the use of safer chemicals and technologies.

Surgeon General Warning: Manipulated Science (07/24/2007)
At a July 10 hearing of the House Committee on Oversight and Government Reform, former Bush administration Surgeon General Richard Carmona joined a growing list of officials to disclose the executive branch's political manipulation of science. Carmona's claims that agency science is being distorted for political purposes echoes charges leveled by recent whistleblowers from the Department of the Interior, the U.S. Food and Drug Administration, the U.S. Environmental Protection Agency (EPA) and the National Aeronautics and Space Administration.

An Examination of Government Openness (07/24/2007)
OpenTheGovernment.org and People For the American Way recently released Government Secrecy: Decisions Without Democracy, which gives a comprehensive examination of the importance of government transparency and the various legislative and policy means for promoting and curtailing open government.

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