Boehner: Government Will Not Shutdown

House Speaker John Boehner (R-Ohio) assured reporters Thursday that the federal government will not shut down at the end of the month.

Current funding expires on September 30. A vote yesterday on a continuing resolution to extend funding through November 18 failed 195-230, with almost every single Democrat voting against. In addition, 48 conservative Republicans voted against the bill on the grounds that it did not cut enough spending.

“There is no threat of government shutdown,” Boehner said. “This resolution was designed to be a bipartisan bill and we had every reason to believe that our counterparts across the aisle would support it. Once they began to see where some of our votes were, they decided to play politics and vote against disaster relief for millions of Americans who’ve been affected.”

Democrats were unhappy with the amount of money — $3.65 billion for disaster relief in the bill, nor did they support the fact that it was partially offset by a $1.5 billion cut to a Department of Energy advanced manufacturing loan program.

Boehner said he had a feeling that the bill would be rejected.

“I’ve always believed in allowing the House to work its will,” Boehner said. “I understood what the risk was yesterday, but why not put the bill on the floor and let the members speak? And they did.”

With the Federal Emergency Management Agency (FEMA) down to $215 million in its disaster relief fund, time is running out for lawmakers to authorize new funding.

“We’re going to meet with our Members and present some options to find a way forward,” Boehner pledged. 

A new bill could come to the House floor as soon as Thursday, and leaders have warned that the House may stay in session through the weekend. Both the House and Senate are scheduled to recess next week.

Click here and here to see pictures from today’s briefing.

Pelosi: Threats Against Lawmakers Have No Place

By Sofia Sanchez
University of New Mexico/ Talk Radio News Service

On Thursday, House Speaker Nancy Pelosi (D-Calif.) said recent threats against Members who voted 'yes' on healthcare reform are unacceptable.

“I believe words have power, they weigh a ton," said Pelosi when asked to compare the current threats to those levied against famed San Francisco politician Harvey Milk during the 1970's.

The Speaker said she does not want the threatening emails, letters and voicemails from constituents angry with their elected officials to distract lawmakers from passing the Reconiciliation Act.

“We are here to pass health care for all Americans,” she said.

Pelosi scolded any Republicans who may have encouraged protesters to make noise during House debate inside the Capitol building earlier this week.

"I do think that this Congress and House of Representatives is a classroom, and that it is inappropriate for members of Congress to stand up and cheer when these sentiments are expressed in the gallery,” she said.

Pelosi reminded those opposed to healthcare reform that they will soon have a legal and more peaceful chance to express their discontent with lawmakers

“Elections are a way for us to show our pleasure or displeasure with a particular point of view."

House Dems Seek “Fairer Pricing” For Prescription Drugs Within Health Reform

By Learned Foote - Talk Radio News Service

A group of Democratic Congressmen introduced proposals on Thursday known as the CARE (Cut Americans’ Rx Expenses) Package. This package would seek to reduce the costs of prescription drugs, and thereby create savings worth $190 billion dollars that could be applied to health care reform.

The package has three amendments which the Congressmen will seek to insert into the legislation. Rep. Jane Harman (D-Calif.) said that Chairman of the House Energy and Commerce Committee Henry Waxman (D-Calif.) agreed to support these proposals during mark-up.

Rep. Peter Welch (D-Vt.) said that pharmaceutical companies “create life-extending, pain-relieving, life-saving drugs,” but also “charge very high prices and have an excessive control over the marketplace.”

Rep. Harman said that the first proposal seeks to reverse a 2003 law that passed 220-215, which prohibits the Health and Human Services Secretary from bargaining for lower prices for pharmaceuticals for Medicare D patients. She said the law represents a “poignant example of Congress’ failure to take meaningful action to rein in drug costs.”

According to Rep. Castor, the bill's second amendment allows a potential public option to “negotiate prices” and to establish a formulary. A prepared press release said that such a formulary would mean that “families who choose the public option are guaranteed the lowest cost for prescriptions.”

Rep. Betty Sutton said that the final provision “will require...drug manufacturers to pay a supplemental rebate when name-brand drugs exceed the current rate of inflation.” She said the companies “won’t have to pay these rebates if they decide not to jack up their drug prices above the rate of inflation.” She added that this proposal will incentivize drug companies to “show reasonable restraint, thereby making prescription drug prices more affordable.”

Rep. Kathy Castor (D-Fl.) noted that Americans pay higher prices for drugs than do consumers in other countries. Rep. John Sarbanes (D-Md.) said that the government has “terrific bargaining power.” He wondered “why shouldn’t the government in dealing with the pharmaceutical industry be able to go into the marketplace and use that bargaining power on behalf of seniors, on behalf of working families across the country?”

The members of Congress proposing this legislation include Reps. Jane Harman (D-Calif.), Anthony Weiner (D-N.Y.), Kathy Castor (D-Fla.), John Sarbanes (D-Md.), Betty Sutton (D-Ohio), and Peter Welch (D-Vt.).

Pelosi Says House Will Vote On Health Care Before August

By Learned Foote- Talk Radio News Service

Speaker of the House Nancy Pelosi (D-Calif.) emphasized that “we will be on schedule...to vote for [health care] legislation before we leave for the August recess” in a press conference on Monday.

“It is our plan to introduce our legislation tomorrow,” she continued. “It won’t be the finished product, it is...to be marked up in committee to go to the next step.”

Pelosi discussed the moderate Blue Dog Democrats who have expressed some concern about certain aspects of the health care legislation. She said that such give-and-take is commonplace during the legislative process.

“We’ve made a great deal of progress, I think we’re on schedule, and the conversations have been very productive. As you get toward the end, when you’re ready to introduce and then you go to the markup and the amendment process, is when you get some of the differentiation beyond the consensus that we have built to date. But from those conversations, I feel very confident that we will have strong health care reform,” Pelosi said.

Majority Leader Rep. Steny Hoyer (D-Md.) acknowledged that there have been “extensive and spirited discussions,” but emphasized that “to a person, the Blue Dogs believe we need to pass and they want to support health care reform... There is nobody with whom I’ve talked to in the caucus who doesn’t believe that health care reform is essential to do and do this year.”

Pelosi also emphasized the benefits of quick action on health care reform and several private citizens called for speedy action during the press conference. Pelosi said that reform will lower costs, improve the quality of health care and provide more choices to consumers and businesses.

“You’ll hear some of our opponents of reforming health care saying that this is putting government between you and your doctor,” she said. “That’s what they say, that is just the opposite. What we are doing is removing the health insurance company from between patients and their doctors. And in doing so, we’ll provide stability and peace of mind,” said Pelosi.

House Committee Questions Fed Member On Fed’s Expansion

By Learned Foote- Talk Radio News Service

On Thursday, the House Financial Services Committee questioned Federal Reserve Board Vice Chairman Donald Kohn regarding a proposal recently advanced by the Obama administration that would expand the powers of the Fed.

The Fed currently oversees monetary policy, and in 1977 Congress established that the agency's objectives are to maximize employment and stabilize prices.

The expanded powers would grant the Fed the authority to oversee systemic risks to the financial system as a whole. Said Kohn, “the job of the systemic risk regulator would be to take account of those interrelationships, the markets and how they’re developing, and the institutions and how they fit into the markets, and look at the overall risk to the system, as well as the risk of the individual institution.”

He added that the Federal Reserve could fulfill this role.

Some Congressmen argued that the expanded powers could compromise the Fed’s responsibilities regarding monetary policy.

Rep. Spencer Bachus (R-Ala.) said that the House Republicans’ view of the Federal Reserve dramatically differed from that of the administration. “Republicans believe that the Fed’s core mission, and I stress this, is to conduct monetary policy, and that that will be seriously undermined if its supervisory responsibilities are dramatically expanded.” He suggested that the Fed could become a “permanent bail-out agency,” and its political independence could be compromised.

“We need to end the bailouts that the Fed I think has been instrumental in carrying out over the last eighteen months, and I mean the ad hoc bailouts of individual institutions.”

Kohn said “we do not believe that enhancements to our existing supervisory and regulatory authority proposed by the administration would undermine our ability to pursue our monetary policy objectives effectively and independently.”

Rep. Ron Paul (R-Texas), who has introduced a bill in the House to audit the Fed more thoroughly, expressed skepticism as to whether the Fed’s powers should be expanded. He said that the Fed needs to be more transparent, although Kohn argued that “our independence in the conduct of monetary policy is accompanied by substantial accountability and transparency.”

Congressman Al Green (D-Texas) asked the Vice Chairman how he would respond to those who argue that it is “risky to give the Fed this much power.” Kohn replied that the additional powers are “incremental...not a huge increase in our authority.” He emphasized that “for the authority we already have, we are held accountable.”