It was a busy week on Capitol Hill this week as Congress prepares to adjourn for the President’s Day Break. Members will travel home to meet with constituents this weekend. On Tuesday, President Obama gave his first State of the Union address in his second term. Throughout the 59 minute speech the President outlined a broad agenda for his next 4 years in office, from raising the minimum wage, to making college tuition more affordable and addressing climate change, his speech focused on his plan to reduce the deficit, grow the economy, reform immigration, education and promote clean energy & technology.
He also mentioned a multitude of issues that will impact Washington State University (WSU). We have pulled out four we have included below: For additional details, you can find President Obama’s State of the Union and information on his agenda here.
Sequestration
If Congress does not pass legislation in the next 2 weeks to cut spending or extend the current sequester language, sequestration is scheduled to go into effect on March 1, 2013. The agreed upon sequester provides for $85 billion in across the board spending cuts. According to a report from the Office of Management and Budget (OMB), the cuts will include a 9.4% reduction in non-exempt defense discretionary funding, 8.2% reduction in non-exempt nondefense discretionary funding and 2.0% cut to Medicare. The White House released talking points highlighting the impact sequestration will have on research and innovation including fewer research awards and delays in critical scientific research if an agreement is not reached. You can find more information here.
Clean Technology
Washington State University is at the forefront of innovative clean technology research. During the State of the Union address, the President highlighted the possibility of creating an “Energy Security Trust” to help fund alternative fuel technology and research. The proposed trust would redirect, approximately $200 million dollars in royalties from oil and gas drilling on onshore and offshore federal lands for the development of biofuels, natural gas-powered and electric vehicles.
Higher Education
President Obama highlighted education frequently in his speech last night. Among the initiatives he touched upon is a plan to better prepare high school students for college. He proposed a model that would allow high school students to graduate with both a high school diploma and Associate of Arts (AA) leading to high school graduates that are ready to enter the workforce and are better prepared to successfully attend colleges and universities.
Immigration
Earlier this year, the President released his proposal for immigration reform, including greater border security, cracking down on employers hiring undocumented workers and providing a path to citizenship for approximately 11 million undocumented immigrants. As part of the reform highlighted in his speech, the President suggested that children brought to the country illegally who attend college or serve in the Armed Forces for at least two years become eligible for a fast-track to earning U.S. citizenship. In addition, his plan would also provide “staple” green cards to all foreign graduate students who receive diplomas in science, technology, engineering and mathematics (STEM) fields from a qualified university and are now employed in the United States to help fill employer demands and fuel future innovation.
Following the President’s speech the big question remains, will Congress support any of these proposals and how will these initiatives be funded? United States Senator Marco Rubio (R-FL) provided a glimpse of what we can expect in the coming months during the Republican response to the State of the Union. While his speech outlined alternatives to those of the President, such as expanding federal lands for exploratory drilling, modernizing higher education models and funding for non-traditional students, the most contentious issue is regarding revenue. Both House and Senate Republicans have growing concerns on the economic impact of raising taxes on the American public. With a Republican controlled House and a Democratically controlled Senate, reaching agreement on increasing revenues will be a challenge for the President’s ability to move forward with his initiatives.
As we look ahead, Congress is currently waiting for the Administration to release its budget. Historically the budget is scheduled to be released in early February but citing uncertainty regarding the “fiscal cliff” the Administration is expected to provide the budget by mid-March. Please keep checking back so that we can update you on the latest information and let us know if you have any questions. We work for you.