While the health care reform negotiations continue, the Senate returns next week and will consider legislation that will raise the federal debt limit above the $13 trillion ceiling the House approved last year.

Senate Majority Leader Harry Reid (D-Nev.) has not said how much the bill would raise the limit but it is widely expected that a significant increase above the $925 billion passed in the House is needed to avoid another increase before the November mid-term elections. As part of the Senate agreement to consider the debt limit increase, they will vote on a series of amendments, including: one that would block EPA from using the Clean Air Act to regulate greenhouse gas emissions; another on the creation of a bipartisan budget commission to recommend spending cuts to Congress; and another that would end the Troubled Asset Relief Program (TARP).

Senate Democrats hope to move a "jobs" package in the coming weeks. Senate Majority Whip Richard Durbin (D-Ill.) has been working with House leaders and a group of senators to craft a bill that is expected to include funding for a variety of infrastructure programs.

The bill is also likely to be the vehicle for extending highway and transit program authorization through the end of 2010. The House passed a $150 billion "jobs" bill prior to the Christmas recess. It included $48.3 billion for infrastructure, $26.7 billion for state aid and $79 billion in emergency spending for unemployment benefits, Medicaid assistance and the like. The bill also extends the highway program through September 30, 2010. The Senate bill pays for the infrastructure and state aid with repaid TARP funds, the emergency spending is not paid for and the highway extension is paid for through an intergovernmental transfer.  The Senate has not decided if it will take up the House bill and or if it will  instead draft its own legislation. House Republicans and likely Senate Republicans oppose using TARP to pay for the infrastructure portion.

For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.