** 1/24/23 - NASBO Washington Report - Treasury Begins Deploying Extraordinary Measures to Delay Debt Limit + House to consider a bill to replace degree-based hiring with skills-and competency-based hiring in the civil service hiring system

[Buzz Sawyer]

     

Treasury Begins Deploying Extraordinary Measures to Delay Debt Limit

On Thursday the Secretary of the Treasury, Janet Yellen, sent a letter to Congressional leadership notifying them that the department began using extraordinary measures to avoid breaching the debt limit. These measures include suspension of certain investments. This was followed by another letter on January 24 outlining additional extraordinary measures. The period of time that extraordinary measures may last is unknown but in a previous letter to Congress, the Secretary indicated “it is unlikely that cash and extraordinary measures will be exhausted before early June.”

The House convenes today and will consider two bills, including a bill (H.R. 159) to replace degree-based hiring with skills-and

 competency-based hiring in the civil service hiring system. For Wednesday and the balance of the week, the House will consider 11 bills.

• The U.S. Department of Agriculture (USDA) announced expanded efforts to reduce wildfire risk across the western U.S.
•  with investments from the IIJA and Inflation Reduction Act (IRA). This announcement includes $490 million to protect 
• at-risk communities and critical infrastructure across 11 additional landscapes in AZ, CA, ID, NV, OR, UT and WA.

CMS Releases Updated 2023 Federal Poverty Level Standards

On Thursday the Centers for Medicare and Medicaid Services (CMS) released an informational bulletin on the 2023 Federal Poverty Level Standards. The Department of Health and Human Services updates the poverty guidelines at least annually and by law these updates are applied to eligibility criteria for programs such as Medicaid and the Children’s Health Insurance Program (CHIP). These annual updates increase the Census Bureau’s current official poverty thresholds by the relevant percentage change in the Consumer Price Index for All Urban Consumers (CPI-U). The 2023 guidelines reflect the 8.0 percent price increase between calendar years 2021 and 2022. After this inflation adjustment, the guidelines are rounded and adjusted to standardize the differences between family and household sizes.

FCC Issues Guidance for Calls and Texts During Medicaid Redeterminations

On Monday the Federal Communications Commission (FCC) provided guidance to federal and state governmental agencies, and their partners, to enable them to make Medicaid enrollment calls and send text messages without violating robocall and robotext prohibitions. The Consolidated Appropriations Act, 2023 (P.L. 117-328) allows states to resume Medicaid disenrollments beginning April 1, 2023. To ensure eligible participants remain covered, the Department of Health and Human Services asserts that state agencies and their partners must be able to reach large numbers of enrollees with information about retaining their enrollment. The FCC clarified how federal and state agencies may, under certain circumstances, make autodialed and prerecorded or artificial voice calls or send autodialed text messages regarding eligibility and enrollment requirements. The Declaratory Ruling can be found here.

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January 24, 2023 This Week on the Hill   The House and Senate return and continue work on organizing committees and subcommittees.   The House convenes today and will consider two bills, including a bill (H.R. 159) to replace degree-based hiring with skills-and competency-based hiring in the civil service hiring system. For Wednesday and the balance of the week, the House will consider 11 bills.   The Senate convened Monday and resumed consideration of a nominee to the Department of Defense. The Judiciary Committee held a hearing today on competition and consumer protection in live entertainment and ticketing.     Recent Court Actions on SLFRF Tax Offset Provision Last week the courts took two actions related to the tax offset provision of the State and Local Fiscal Recovery Funds (SLFRF). SLFRF cannot be used to directly or indirectly offset a reduction in the net state tax revenue that results from a change in law or regulation during the covered period. In the first action, the U.S. Supreme Court declined to take up the case of Missouri v. Yellen, where the state challenged the restrictions on the use of SLFRF. In the second action, the U.S. Court of Appeals for the 11th Circuit ruled that the offset provision was unconstitutional as written and affirmed a permanent injunction from a lower court in a case brought by 13 states challenging the provision.     COVID-19 Relief Implementation and Administration Actions The following guidance and information was recently released to implement provisions in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (Division M of H.R. 133, the Consolidated Appropriations Act, 2021), and the American Rescue Plan Act of 2021 (ARPA). Education Releases Updated ESSER Maintenance of Equity Resources: The Department of Education released new resources for Elementary and Secondary School Emergency Relief (ESSER) Fund maintenance of equity. The updates include changes to the frequently asked questions with a new question (17a) related to use of federal pandemic relief funds in determining maintenance of fiscal equity, along with a maintenance of equity local educational agency-level staffing equity data template. Treasury Releases Reallocation Amounts for ERA2: The Treasury Department released the reallocation amounts for Emergency Rental Assistance 2 (ERA2) Quarter 2 General Pool Reallocation and Designated Voluntary Reallocations. The department announced that 89 state and local grantees have been awarded $690 million in reallocated funds and to date, the department has reallocated over $3.5 billion. DOL Announces Deadline Extension for Pandemic Unemployment Assistance Program: The Department of Labor (DOL) released Unemployment Insurance Program Letter No. 16-20, Change 8. The letter advises states that the deadline for submitting a grant application for additional administrative costs under the Pandemic Unemployment assistance (PUA) program is extended to February 24 and the department has extended the deadline to expend PUA administrative funds from June 30, 2023 to June 30, 2024.  Education Releases New Edition of Newsflash: The Department of Education released the January 17 edition of its ESSER, GEER and EANS grantee communications newsletter, Newsflash. The edition includes recent grantee communications, technical assistance webinars, reporting updates and deadlines/announcements, along with a list of grantee resources, including information on an upcoming FFATA reporting webinar. FCC Announces More Than $40 Million in Emergency Connectivity Funding: The Federal Communications Commission (FCC) announced it is committing more than $40 million in a new funding round through the Emergency Connectivity Program, which provides digital services for students in communities across the country. This funding commitment will benefit approximately 100,000 students across six states. USDA Announces Additional Pandemic Aid for Dairy Farmers: The U.S. Department of Agriculture (USDA) announced the details of additional assistance for dairy farmers, including nearly $100 million in a second round of payments through the Pandemic Market Volatility Assistance Program. The program assists producers who received a lower value due to market abnormalities caused by the pandemic and ensuing federal policies. FDA Vaccine Advisory Panel to Consider Annual COVID-19 Shots: The Food and Drug Administration’s (FDA) Vaccines and Related Biological Products Advisory Committee will meet on Thursday to discuss how to simplify and streamline the COVID-19 vaccination process, including a possible annual schedule.     IIJA Implementation Resources Released Federal agencies continue to release implementation resources pertaining to the Infrastructure Investment and Jobs Act (IIJA). The Department of Energy (DOE) announced guidance so state, local, and Tribal governments can begin applying for funding through the Energy Efficiency and Conservation Block Grant (EECBG) Program. The EECBG Program opened applications for $430 million in formula grant funding from the IIJA for clean energy projects and programs in local communities. The department is hosting a series of webinars on the EECBG Program starting January 25 and state applications are due by July 31. The U.S. Department of Agriculture (USDA) announced expanded efforts to reduce wildfire risk across the western U.S. with investments from the IIJA and Inflation Reduction Act (IRA). This announcement includes $490 million to protect at-risk communities and critical infrastructure across 11 additional landscapes in AZ, CA, ID, NV, OR, UT and WA. The Environmental Protection Agency (EPA) announced the availability of $50 million in grant funding from the IIJA to help states, Tribes, and territories develop and implement Underground Injection Control (UIC) Class VI programs. These programs ensure that groundwater resources are protected while supporting geologic sequestration of carbon dioxide to reduce greenhouse gas emissions. Interested parties have until March 20 to submit letters of intent. The Federal Highway Administration (FHWA) announced two new resources from the IIJA to create economic opportunities for disadvantaged entrepreneurs and workers. These resources include new guidance to support state investment in workforce development, training and education to meet infrastructure workforce demands and $10 million to support small businesses owned by minorities, women, and other socially and economically disadvantaged individuals. A list of recipients of the $10 million is included in the announcement. The Bureau of Reclamation updated its frequently asked questions (FAQs) for its IIJA programs. The FAQs cover topics including projects funded to date, Buy America requirements, and status of funding opportunities. The National Telecommunications and Information Administration (NTIA) is holding a webinar on January 25 at 2:30pm ET focused on the State Digital Equity Planning Grant Program. The webinar will highlight digital equity technical assistance resources. Registration is required.      IRA Implementation Resources Released The administration announced implementation resources for the Inflation Reduction Act (IRA, P.L. 117-169). The Department of Energy (DOE) is holding a webinar on January 25 at 1:30pm ET to provide information on the Transmission Siting and Economic Development Grants program Request for Information, released on January 13. The grants program will support states and local communities in the siting and permitting of interstate and offshore electricity transmission lines. The webinar will provide additional details around the type of information DOE is requesting and how stakeholders can contribute; registration is required. The Department of Energy (DOE) released a Request for Information (RFI) seeking input on nearly $9 billion for the Home Energy Rebate Programs, funded by the IRA to help Americans cut energy costs in their homes. These programs will provide funding for states, territories, and Tribes to develop, implement, and enhance residential energy efficiency and electrification projects in households. The deadline to submit responses is March 3. The Environmental Protection Agency (EPA) announced opportunities for public input on new programs focused on lower carbon construction materials made possible by $350 million in the IRA. The agency will hold three public webinars and accept written feedback on establishing new grant and technical assistance programs, along with a carbon labeling program for construction materials with substantially lower levels of embodied greenhouse gas emissions. The first webinar is scheduled for March 2 and comments on the Request for Information are due by May 1.     FCC Issues Guidance for Calls and Texts During Medicaid Redeterminations On Monday the Federal Communications Commission (FCC) provided guidance to federal and state governmental agencies, and their partners, to enable them to make Medicaid enrollment calls and send text messages without violating robocall and robotext prohibitions. The Consolidated Appropriations Act, 2023 (P.L. 117-328) allows states to resume Medicaid disenrollments beginning April 1, 2023. To ensure eligible participants remain covered, the Department of Health and Human Services asserts that state agencies and their partners must be able to reach large numbers of enrollees with information about retaining their enrollment. The FCC clarified how federal and state agencies may, under certain circumstances, make autodialed and prerecorded or artificial voice calls or send autodialed text messages regarding eligibility and enrollment requirements. The Declaratory Ruling can be found here.     CMS Releases Updated 2023 Federal Poverty Level Standards On Thursday the Centers for Medicare and Medicaid Services (CMS) released an informational bulletin on the 2023 Federal Poverty Level Standards. The Department of Health and Human Services updates the poverty guidelines at least annually and by law these updates are applied to eligibility criteria for programs such as Medicaid and the Children’s Health Insurance Program (CHIP). These annual updates increase the Census Bureau’s current official poverty thresholds by the relevant percentage change in the Consumer Price Index for All Urban Consumers (CPI-U). The 2023 guidelines reflect the 8.0 percent price increase between calendar years 2021 and 2022. After this inflation adjustment, the guidelines are rounded and adjusted to standardize the differences between family and household sizes.     DEA and SAMHSA Provide Notice on Removal of X-Waiver Requirement for Buprenorphine The Drug Enforcement Administration (DEA) and Substance Abuse and Mental Health Services Administration (SAMHSA) recently posted information on removal of the DATA Waiver (X-Waiver) requirement. In a letter to registrants, the DEA noted the change as authorized by the Consolidated Appropriations Act, 2023, meaning a DATA-Waiver registration is longer required to treat patients with buprenorphine for opioid use disorder and that going forward, all prescriptions for buprenorphine only require a standard DEA registration number. There are also no longer any limits or patient caps on the number of patients a prescriber may treat for opioid use disorder with buprenorphine; the act does not impact existing state laws or regulations that may be applicable. SAMHSA noted that it is working with the DEA on implementation of a provision related to training requirements that becomes effective in June 2023.     FNS Announces Additional States for Medicaid Certification Demonstration Project The Food and Nutrition Service (FNS) recently announced 14 new states selected to participate in the Direct Certification with Medicaid Demonstration Project for school year 2023-24. The new states include AZ, CO, DE, GA, MT, NM, OH, OK, OR, PA, SD, TN, VT and WY. State agencies that administer the National School Lunch Program and School Breakfast Program may apply to participate in the demonstration project and conduct direct certification with Medicaid for both free and reduced price school meals in a portion of the local educational agencies within their state or on a statewide basis. The total number of states participating in the demonstration projects will now total 39; a table of states, including the year they began their pilot, is included in the announcement.     Treasury Begins Deploying Extraordinary Measures to Delay Debt Limit On Thursday the Secretary of the Treasury, Janet Yellen, sent a letter to Congressional leadership notifying them that the department began using extraordinary measures to avoid breaching the debt limit. These measures include suspension of certain investments. This was followed by another letter on January 24 outlining additional extraordinary measures. The period of time that extraordinary measures may last is unknown but in a previous letter to Congress, the Secretary indicated “it is unlikely that cash and extraordinary measures will be exhausted before early June.”     FEMA Hosting Webinars to Explain Public Assistance Simplified Procedures Policy The Federal Emergency Management Agency (FEMA) is hosting webinars from January 31 to February 3 to explain the updated Public Assistance (PA) Simplified Procedures policy. In August 2022, FEMA published a final rule to increase the small project maximum for the agency’s program to $1 million to reduce the administrative burden on state, local, Tribal and territorial governments and private non-profits receiving financial grants following a disaster. The webinars will occur each day at 3pm ET and information on joining the webinar is available in the announcement.     MARAD Announces $20 Million for Small Shipyard Grants On Thursday the Maritime Administration (MARAD) announced the availability of nearly $20 million in federal fiscal year 2023 funding to help modernize small U.S. shipyards and train the workforce. The Small Shipyard Grant Program provides grants that can be used to purchase equipment or provide employee training. Small Shipyard Grants are available to shipyards with fewer than 1,200 production employees and applications are due by February 27. Additional information can be found here.     HUD Publishes Allocations, Grant Requirements for CDBG-DR Last week the Department of Housing and Urban Development (HUD) published the Allocations for Community Development Block Grant Disaster Recovery (CDBG-DR) and Implementation of the Consolidated Waivers and Alternative Requirements Notice. The notice announces allocations of $1.45 billion for disasters occurring in 2021. The notice also identifies grant requirements for funds appropriated in March 2022 (Disaster Relief Supplemental Appropriations Act, 2022) and September 2022 (Continuing Appropriations Act, 2023). The Consolidated Notice, as amended by this Allocation Announcement Notice, includes waivers and alternative requirements, relevant regulatory requirements, the grant award process, criteria for action plan approval, and eligible disaster recovery activities.     HUD Proposes Rule on Setting Goals for Fair Housing Issues Last week the Department of Housing and Urban Development (HUD) published a Notice of Proposed Rulemaking that implements the Fair Housing Act’s affirmatively furthering fair housing mandate. The proposed rule also streamlines the required fair housing analysis for local communities, states, and public housing agencies and requires them to set ambitious goals to address fair housing issues facing their communities. Under the proposed rule, program participants would submit to HUD for review and acceptance an Equity Plan every five years, containing their analysis of fair housing issues confronting their communities, along with goals and strategies. Then participants would be required to conduct and submit an annual progress evaluation that describes progress toward the goals. Public comments may be submitted for 60 days following publication of the proposed rule in the Federal Register.     USDA Updates Organic Product Regulations Last Wednesday the U.S. Department of Agriculture (USDA) previewed the Strengthening Organic Enforcement (SOE) final rule, which strengthens oversight and enforcement of the production, handling, and sale of organic products. Key updates in the rule include requiring certification of more of the businesses at critical links in organic supply chains; requiring organic identification on nonretail containers; increasing authority for more rigorous on-site inspections of certified operations; and requiring standardized certificates of organic operation. Operations, businesses and stakeholders affected by the rule will have one year from the effective date to comply with the changes; the implementation date is March 19, 2024. Additional information on the National Organic Program can be found here. Recently Released Reports Alcohol, Other Drug, and Multiple Drug Use Among Drivers National Transportation Safety Board   Unemployment Insurance: Data Indicate Substantial Levels of Fraud During the Pandemic U.S. Government Accountability Office   Telehealth Delivery of Behavioral Health Care in Medicaid: Findings from a Survey of State Medicaid Programs Kaiser Family Foundation   State Corporate Income Tax Rates and Brackets for 2023 Tax Foundation

Economic News Unemployment Claims Reported for Week Ending January 14 The U.S. Department of Labor released unemployment insurance weekly claims data last Thursday that showed for the week ending January 14, the advance figure for seasonally adjusted initial claims was 190,000. This is a decrease of 15,000 from the previous week’s unrevised level of 205,000. The 4-week moving average was 206,000, a decrease of 6,500 from the previous week’s unrevised average of 212,500. The advance seasonally adjusted insured unemployment rate was 1.1 percent for the week ending January 7, unchanged from the previous week’s unrevised rate. The advance number of actual initial claims under state programs, unadjusted, totaled 285,575 in the week ending January 14, a decrease of 53,582 (or -15.8 percent) from the previous week.     Job Openings Increased in 7 States in November According to data recently released by the U.S. Department of Labor, the number of job openings decreased in 9 states, increased in 7 states, and was little changed in 34 states and the District of Columbia in November. The number of hires increased in 3 states, decreased in 3 states, and was little changed in 44 states and the District, while total separations increased in 6 states, decreased in 2 states, and was little changed in 42 states and the District of Columbia. The number of quits increased in 5 states, decreased in 1 state, and was little changed in 44 states and the District in November. For layoffs and discharges, 5 states had decreases, 2 states had increases, and 43 states and the District of Columbia had little change.     Unemployment Rates Higher in 7 States in December New data from the Bureau of Labor Statistics shows that many state unemployment rates saw little change in December; 38 states and the District of Columbia had stable unemployment rates, 7 states had higher rates, and 5 states had lower rates. Compared to one year earlier, 35 states and the District had jobless rate decreases, 4 states had increases, and 11 states had little change. The national jobless rate edged down to 3.5 percent over the month and was 0.4 percentage point lower than in December 2021. Compared to the national rate, 14 states had unemployment rates lower than the U.S. figure, 11 states and the District had higher rates, and 25 had rates that were not appreciably different. Nonfarm payroll employment decreased in 1 state in December and was essentially unchanged in 49 states and the District of Columbia. Over the year, nonfarm payroll employment increased in 42 states and was essentially unchanged in 8 states and the District.