The Senate Finance Committee held a health care reform roundtable with health care stakeholders to discuss the possibility of a government-run health insurance plan. While most Republicans and some moderate Democrats oppose a government-run plan, Finance Chairman Max Baucus (D-MT) has indicated that he is open to the possibility and directed Sen. Chuck Schumer (D-NY) to prepare legislation for the committee to review. Schumer's plan would operate similar to private insurance, prompting worries that a plan could "crowd out" private insurers. In an unusual request, America's Health Insurance Plans (AHIP) President Karen Ignagni requested that the committee choose to more stiffly regulate the industry rather than create a new public plan: "We accept the premise that the system is not working today and needs to be reformed and, in fact, we need very clear, specific government regulation." Inclusion of a public plan in a health care reform package could be a deal breaker for some moderate Democrats, including recent party-switcher Sen. Arlen Specter (D-PA) who announced his opposition over the weekend.

The House and Senate budget agreement for fiscal year 2010 failed to include a Printing Industries-supported estate tax amendment that called for an increased exemption and decreased tax rate. The amendment introduced jointly by Sen. Blanche Lincoln (D-AR) and Sen. Jon Kyl (R-AZ) would have increased the 2009 estate tax exemption from $3.5 million to $5 million and decreased the rate from 45 percent to 35 percent. The amendment was narrowly passed in the Senate 51-48. Both Senate Finance Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA) supported the amendment along with a number of moderate Democrats. While the budget will not provide for increased estate tax reform, the House and Senate tax writing committees could still support reform in legislation expected later this year. Printing Industries thanks Lincoln and Kyl for their leadership on estate tax reform.

House Ways and Means Chairman Charlie Rangel (D-NY) last week stated that he intends to introduce legislation that would eliminate an alternative fuels credit that paper companies use to save nearly $7 billion a year. Paper companies that use the wood byproduct known as "black liquor" to fuel their plants can receive the 50 cents-per-gallon credit by mixing their alternative fuel with fossil fuels. While the credit expires on December 31, 2009, Rangel and Senate Finance Chairman Max Baucus (D-MT) have speculated that they may try to revoke the credit earlier. Such action, especially in already challenging economic times, would result in the closure of many paper plants and at the very least, an increase in the cost of paper. The printing industry is a major end-user of paper, spending more than $35 billion annually according to Printing Industries' Economic & Market Research. Along with the forestry and paper industries, Printing Industries is weighing in with lawmakers in opposition. 

The Office of Management and Budget today released President Obama's first detailed budget highlighting his call for $17 billion in cuts to federal spending. The total budget is $3.4 trillion and plans for increased taxes and a reserve fund to pay for health care reform legislation currently under consideration in Congress. Obama may face difficulty in convincing Congress to accept some of the cuts, including some defense programs that have strong legislative support. Additionally, some of the program cuts proposed by Obama were supported by the Bush administration in previous years but never approved by Congress for various reasons.

The Senate Energy and Natural Resources Committee will begin to consider energy legislation next week with the goal of passing a complete bill before Memorial Day. The first portions to be marked up will include plans to handle nuclear waste and expand the national electricity grid. Chairman Jeff Bingaman (D-NM) continues to negotiate with members of his own party on a plan to require utilities to produce a minimum percentage of their energy from renewable sources. Moderate Democrats from the South and Midwest-including Sens. Blanche Lincoln (D-AR), Evan Bayh (D-IN), and Debbie Stabenow (D-MI)-will be critical since these regions are especially dependent on fossil fuel-based electricity generation.

This week President Obama called House Energy and Commerce Democrats to a meeting at the White House to help broker an agreement on a carbon cap and trade program. The administration is supportive of the efforts by full committee Chairman Henry Waxman (D-CA) and Energy Environment Subcommittee Chairman Ed Markey (D-MA) to pass a comprehensive energy bill including regulation of greenhouse gas emissions. Over 30 Democrats have stated publicly their skepticism about the potential costs of the bill and impact on their districts. The meeting did not appear to have a huge impact as Waxman is now planning to bypass the subcommittee-on which a number of Democratic skeptics sit-and is working to pass it in full committee where the bill has more support. Waxman's target deadline is before the Memorial Day Recess so that the committee can dedicate time in June to health care reform. To read more reactions from legislators on cap and trade: "What Lawmakers Are Saying About Cap and Trade."

This morning the Senate Finance Committee met to receive expert testimony regarding how the federal government would auction emissions allowances under a carbon cap and trade program. A potential auction could cost industries and electricity generators over $650 billion, money that would be used by the federal government to fund clean energy research programs and assist consumers and vulnerable businesses with increased energy prices. Ranking Member Charles Grassley (R-IA) was highly critical of a carbon cap and trade plan stating that the, "costs would be paid by every American" and "would have a significant and negative impact on job growth." While the Senate Environmental and Public Works Committee has primary oversight of carbon cap and trade legislation, the Finance Committee would oversee a Treasury Department-operated auction for allowances.

USPS has filed the details of their "Summer Sale" with the Postal Regulatory Commission. In the filing USPS clearly states: "The Postal Service believes it can, and should, find ways to help its customers increase their use of mail during these challenging economic times." The program will run from July 1 to September 30 and will provide a 30 percent rebate to eligible mailers on Standard Mail letters and flats volume above a mailer-specific threshold. USPS will release more information about the sale and the application process in coming weeks. Also, as a reminder, the yearly postal rate increase goes into effect next week on Monday, May 11.

With Sen. Arlen Specter (D-PA) switching parties, there has been speculation that Sen. Tom Harkin (D-IA) is working to change EFCA to appeal to the new Democrat. Even while switching parties, Specter stated that he continues to oppose EFCA. He has, however, already outlined changes to the bill he would like to see, including a change from the card check system supported in the bill to a "quickie" election. When asked about the possibility of a compromise bill Harkin stated: "We're hoping to put something together. It may be something labor may not like." Specter's possible Democratic primary opponent, Rep. Joe Sestak (D-PA), is a cosponsor of the EFCA House bill.

The Small Business Administration (SBA) announced a temporary expansion of the eligibility requirements for 7(a) loans through September 30, 2010. The change is anticipated to affect over 70,000 small businesses by raising the qualifying net worth of companies to $8.5 million. With an earlier move to strengthen government loan guarantees, the SBA is seeing greatly increased applications for 7(a) loans from businesses and new lenders participating in the program. For more information on 7(a) loans, visit the SBA website.

The repercussions of Sen. Arlen Specter's switch to the Democratic Party continued this week with formal procedures to determine his status in the U.S. Senate. Contrary to Specter's own claims, the Senate voted to strip him of all of his seniority, effectively making him the newest member of the chamber. Specter will continue to serve on the same committees but will not hold any leadership posts and will be last in line to make statements or ask questions at hearings. Following the 2010 election, the Senate may reconsider his status and grant him a committee or subcommittee chairmanship. Sen. Jeff Sessions (R-AL) replaces Specter as Ranking Member on the Senate Judiciary Committee just as speculation begins about Obama's first Supreme Court nominee. While Specter left the Republican Party to avoid a potentially bruising primary, he may face a strong Democratic primary opponent in Rep. Joe Sestak. Sestak is publicly considering a run for the seat and is courting liberal Democrats. Specter has faced a difficult transition to his new party as he voted against Democratic priorities, including the fiscal year 2010 budget. This week he was also forced to retract comments stating that Sen. Norm Coleman (R-MN) should be seated while his court challenges to the Minnesota Senate race continue.

According to newly released poll numbers, Sen. Kirsten Gillibrand (D) could be in for a difficult primary to win the seat she was appointed to. Potential Democratic challenger Rep. Carolyn Maloney trails Gillibrand by only five points in a new poll. In general election polls, Gillibrand leads Rep. Peter King (R) by 42-31 percent but trails former Gov. George Pataki (R) 38-46 percent.

Nine-term Rep. Nathan Deal (R) has announced that he will step down from his seat to run for governor. Deal's seat is considered to be safely Republican as Deal won his past two races with more than 75 percent of the vote.

While Sen. Jim Bunning (R) continues to assert that he will run for reelection next year, pressure for him to step down continues to build. Kentucky Secretary of State Trey Grayson (R) last week set up an exploratory committee to begin raising funds to run against Bunning. Bunning has had difficulty raising funds for reelection and has publicly sparred with both Republican Leader Mitch McConnell (KY) and National Republican Senatorial Committee Chair John Cornyn (TX).

Rep. Ellen Tauscher (D) was formally nominated to serve as undersecretary of Arms Control and International Security at the U.S. State Department, potentially leading to a special election over the summer. According to California rules, the first-round election will be open with the top vote-getter in each party competing in a runoff election. However, should one candidate receive more than 50 percent of the vote, they would win the seat outright. Announced candidates include: State Senator Mark DeSaulnier (D), Assemblywomen Joan Buchanan (D), and Lt. Gov. John Garamendi (D).

"We need the kind of change in a health care system where they choose their own doctor, choose their own hospital, have something that's affordable, and when they need treatment, they get it right away."

-Sen. Mary Landrieu (D-LA) on health care reform legislation

"If you liked Anheuser-Busch being bought by InBev and think it is a good idea for Fiat to own Chrysler, this is the budget proposal for you."

-House Ways and Means ranking member Dave Camp (R-MI) on President Obama's proposal to raise taxes on U.S. firms' overseas operations