Policy Updates and Issue News February 2017

February 2017

Washington Politics – Not As Usual

Washingtonians are still talking about the phenomenon commonly referred to as “Middle America”.  This is the vast expanse of geography between the coastal metropolises where folks feel ignored and forgotten.  Rural economies continue to decline, small town businesses falter, factories shutter, hospitals close, schools consolidate and younger generations move away.  Middle America’s citizens turned out to vote for change and against the status quo.   They voted not so much as Democrats or Republicans but as a common populace looking for hope and opportunity right where they are.

The Trump Administration aims to tackle some mighty big problems and quickly seize on some long-awaited opportunities.  These include repeal, replace and transition the Affordable Care Act, control illegal immigration, reform the tax code, renegotiate trade agreements, rebuild the nation’s infrastructure, and reduce federal regulations.  National Grange policy is strong on all these issues which will require considerable time and attention from Grange leadership and staff.   To accomplish most of these feats, the President will have to enter uncharted territory for him…negotiations with Congress.  While the President can implement some of his agenda by executive action, the heavy lifting on major issues cannot happen without Congress.

The President’s choice for Secretary of Agriculture, Georgian Sonny Perdue, has good support on both sides of the political aisle and should be easily confirmed.  Following Perdue’s confirmation, the Deputy Secretary appointment should come down rather quickly but this position also requires Senate confirmation.  Chances are good the Deputy Secretary candidate could come from either California or the Midwest.  Nine Under Secretary and Assistant Secretary appointments, all requiring Senate confirmation, will follow.  But don’t expect  USDA appointees to be in place any time soon.  They’re caught in a FBI background check logjam that’s government-wide.    The full regiment of top-tier leadership at USDA may not be in place for several months and could stretch well into summer.                  

HEALTH CARE

Affordable Care Act Executive Order

On Inauguration Day January 20, President Trump issued an executive order signaling his Administration’s priority to roll back major provisions of the ACA.  An analysis of the executive order was sent to state masters and legislative directors.

Maintain Patient Protections and Access to Drugs

The National Grange cosigned a letter to incoming Secretary of Health and Human Services Tom Price asking the Secretary to ensure uninterrupted coverage and access to drugs for patients with preexisting conditions while the ACA is under review.

Rural Hospitals

The Grange is drawing attention to the plight of rural and small town hospitals in the Affordable Care Act revamp.  Under the ACA, hospitals saw huge cuts in Medicare reimbursements on the assumption that expanded insurance coverage would pick up the shortfall.  Traditionally, rural hospitals treat a larger share of uninsured patients and those who are unable to pay.  As Congress moves to create a new patient care system, they must consider restoring Medicare reimbursements to pre-ACA levels.  Grange op-eds by Betsy Huber, Cindy Greer (Colorado), Jim Foster (West Virginia), Bob White Ohio), and Dwight Baldwin (Iowa, pending) appeared in numerous state and national media outlets.

Independent Payment Advisory Board (IPAB)

The National Grange joined over a thousand patient groups, healthcare providers, and advocacy organizations to urge Congress to repeal the IPAB provisions in the ACA.  The IBAB board is comprised of Presidential appointees charged with making Medicare cuts if spending growth reaches an arbitrary level.  Their actions are not subject to administrative or judicial review.  The groups are concerned about eroding patient access to quality healthcare.

Patient Access to Medication

The National Grange and twelve state Granges joined a large array of patient groups to urge Congress to oppose a proposal by the Department of Health and Human Services (HHS) to interfere in private negotiations in Medicare Part D.  the groups are concerned that that proposals could undermine Part D’s competitive structure and restrict access to drugs for millions of seniors and individuals with disabilities.

RURAL INFRASTRUCTURE

The National Grange joined with nearly 100 groups on a letter to President Trump asking for his Administration’s support for rebuilding infrastructure in rural America.  The letter pointed past initiatives often focused on urban and suburban infrastructure without addressing the unique needs of rural communities such as highways, bridges, railways, locks and dams, harbors and ports, and expanding broadband connectivity.  The President’s plans for public-private investment partnerships to fund infrastructure improvements are not financially feasible for rural infrastructure returns.

 TRANS PACIFIC PARTNERSHIP (TPP)

Following President Trump’s announcement to pull out of the pending TPP, Master Huber issued a rather unique statement that was picked up by numerous media outlets including Bloomberg News, The Progressive Farmer, Farm Policy News, and Kansas Agland among others.  The statement said, “With the Grange’s primary interest in agriculture, food production and the marketing of American products to all available markets, we understand the potential value of the Trans Pacific Partnership to the American producer and our rural economy”.  The Grange also represents the interests of rural residents and small community citizens who produce other products and may not expect to fare as well in the proposed TPP agreement.

TAX REFORM

Stay Tuned

Expect broad and far-reaching tax reform proposals to come from the Senate, the House and the White House in the coming weeks.  There will be close similarities and wide differences between some of the provisions contained in each proposal.  Support or opposition will, of course, depend upon whose ox is getting gored.

Death Tax Repeal

The Family Business Coalition (National Grange is a member) is again mounting a campaign in Congress to repeal the federal estate tax commonly known as the “death tax”.  Many studies show repealing the death tax would spur job creation and grow the economy.  Estate taxes amount to approximately one half of one percent of federal revenue.  Worst of all, the death tax is the primary cause of breaking up family businesses.

REGULATORY ROLLBACK

The executive order issued by President Trump requiring that for every one new regulation issued, at least two prior regulations be identified for elimination has the federal agencies buzzing.  Though similar actions have been threatened in the past, this is the first time agencies expect the directive to be enforced.  On Capitol Hill, the House has passed and sent to the Senate its “Regulations from the Executive in Need of Scrutiny” Act (REINS Act, HR 26 and S 21).  Under REINS any proposed regulation would die unless both chambers approve the regulation within 20 days.

TELECOMMUNICATIONS

Broadband Deployment

The new Federal Communications Commission (FCC) Chairman, Ajit Pai, has announced an aggressive digital empowerment agenda that includes a commitment for rural areas and small towns to have access to the same powerful high-speed connectivity taken for granted in most urban and suburban communities.  National Grange President Betsy Huber wrote an op-ed expressing encouragement to see the FCC considering new and innovative ways to approach the persistent issue of rural broadband expansion.  Daily newsletter The Hill in Washington published Betsy’s editorial.

FCC Broadband Deployment Advisory Committee

The National Grange has nominated National Grange President Betsy Huber to serve on this Committee whose charge is to encourage broadband deployment across America.  Members are expected to delve into FCC’s pole attachment rules, look at unreasonable regulatory barriers, encourage local governments to adopt deployment-friendly policies, and other reforms.

AT&T Advisory Panel

AT&T has asked National Grange Legislative Director Burton Eller to join its National Consumer Advisory Panel to represent rural and small community residents and engage in dialogue with AT&T executives on consumer, industry and policy issues.

FOOD AND AGRICULTURE

Farm Bill Hearings

The kickoff hearing for the 2018 Farm Bill was hosted February 23 on home territory in Kansas by Senate Agriculture Committee Chairman Pat Roberts.  The second Senate Ag hearing will be scheduled in ranking Democrat Debbie Stabenow’s home state of Michigan.  The House Agriculture Committee focuses on conservation policy and international market development in initial Farm Bill hearings February 28.  Actual legislative language for the 2018 Farm Bill will probably be made public early next year.

Ag Loans

The National Rural Lenders Association, National Association of Credit Specialists, National Sustainable Agriculture Coalition, and the Rural Coalition joined the National Grange to urge the leadership of the House and Senate Agriculture Committees to weigh in at the White House and ask that Farm Service loan officers be exempt from the Administration’s hiring freeze.  The number of FSA loans processed has increased more than 23% over the last five years while staffing levels of loan officers has decreased by six percent.  Further, 2016 marked the third straight year of a depressed agriculture economy.  Without sufficient loan servicing, credit delivery to rural America will drag down the farm economy even further.

Dietary Guidelines Built on Alternative Facts?

A report released February 3 by the National Academy of Sciences (NAS)says the Departments of Agriculture and Health and Human Services should be more transparent about their process of selecting members of the committee that develops the Dietary Guidelines for Americans document.  Members of Congress previously alleged the committee exceeded its scope by straying from traditional nutritional facts to make recommendations on wider policy like sustainability and tax policy.  NAS’ report suggested USDA and HHS use third party reviews by an organization or company without political, economic, or ideological identity. 

Millennials Food Preferences

The 10-to-34-year-old population demographic is rewriting the script in the food sector.  Their preference for nonpackaged, less processed, natural, organic, sustainably and locally sourced foods is radically changing food and grocery marketing.  Millennials are willing to pay a premium for what they want and the trend is for them to shop for groceries online.