Wartime Commission Would Investigate Contracting Abuses in Iraq and Afghanistan
Sens. Jim Webb (D-VA) and Claire McCaskill (D-MO) have sponsored a bill (S. 1825) that would set up a commission to investigate and reform wartime contracting. It is likely the bill will be introduced as an amendment to the Defense Reauthorization Act that is currently being debated in the Senate.

FY 2008 War Funding Could Top $200 Billion
In May, Congress passed a $99.5 billion supplemental war spending bill that expires on Sept. 30. The next supplemental bill for FY 2008 war spending is expected to total close to $200 billion. That total, however, is an estimate based on speculation in Washington and continuously changing conditions in the wars in Iraq and Afghanistan.

Congress to Vote on Compromise SCHIP Package
House and Senate negotiators have agreed to an expansion of the State Children's Health Insurance Program (SCHIP) that closely mirrors the earlier Senate version. The House is scheduled to vote on the package today, Sept. 25, with the Senate voting later in the week. President Bush has promised to veto the bill.

U.S. Reaches Debt Limit: The Case for Long-Term Analysis
The Senate will vote soon on legislation to raise the ceiling on the national debt to nearly $10 trillion. This action is imperative as the statutory limit of $8.965 trillion on the United States' level of public debt will be reached by Oct. 1, according to Treasury Secretary Henry Paulson.

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Nussle Approved as Budget Head, Faces Task of Completing FY 2008 Budget
In the Senate's first vote following the August recess, former Rep. Jim Nussle (R-IA) was confirmed as director of the Office and Management and Budget (OMB), 69-24, with all Republican senators voting in favor of Nussle and the Democrats split down the middle. Notably, Senate Majority Leader Harry Reid (D-NV), Appropriations Committee Chair Robert Byrd (D-WV), and Senate Budget Committee Chair Kent Conrad (D-ND) voted against the nominee. Nussle's approval sets up what is expected to be a bitter struggle to complete work on the FY 2008 budget during the fall.

Continuing Resolution a Virtual Certainty; Congress Continues to Work for Appropriations Passage
A plethora of veto threats and the Senate's dithering over spending legislation have combined to all but guarantee the necessity of enacting a continuing resolution before the start of the new fiscal year on Oct. 1. While Senate Majority Leader Harry Reid (D-NV) has indicated that a continuing resolution will likely fund government operations for weeks, not months, time is not their only obstacle. Although it remains unclear how long it will take the Senate to complete its appropriations work, congressional leaders will also have to formulate a strategy to overcome President Bush's veto threats to see their spending priorities ultimately enacted.

Carried Interest Issue Gets Full Hearing(s) in Congress
On Sept. 6, the carried interest tax loophole took center stage, featuring a four-panel, 20-witness marathon hearing in the House Ways and Means Committee and the third hearing this year on the topic in the Senate Finance Committee. The day before the hearings, over 300 national, state and local nonprofit organizations sent a letter to Congress urging it to close the loophole in order to bring equity to the tax code.

Census Report Shows Working Americans Falling Behind
The U.S. Census Bureau released its annual report, Income, Poverty, and Health Insurance Coverage in the United States 2006 on Aug. 28. The report, which covers the most recent Current Population Survey (CPS) data, showed slight overall improvement in income and poverty, but continued declining rates of health insurance coverage. The headline numbers — a 0.7 percent increase in median household income and a 0.3 percent decline in poverty — are undermined, however, by the underlying story that middle- and low-income working Americans are not seeing substantial gains from the current economy.

Americans Dislike Rising Inequality, Contrary to Popular Belief
It is commonly assumed that Americans do not oppose increasing inequality. However, this belief may be a misinterpretation of American values and policy preferences.