Federal Legislative Update Florida Regional Councils Association Policy

Federal Legislative Update Florida Regional Councils Association Policy Board Partners Meeting August 17, 2018

Presentation Overview • • FY 2019 Appropriations Farm Bill Reorganization Proposal Additional Updates

FY 2019 Appropriations • Budget deal approved in February raises spending caps set under 2011 Budget Control Act § Non-defense: $597 b (3. 1% increase from FY 2018) § Defense: $647 b (2. 9% increase from FY 2018) • All 12 spending bills approved by House & Senate Appropriations • House has approved two “minibus” bills § Energy-Water, Legislative, Military Construction-VA § Financial Services and Interior-Environment • Senate also passed two spending packages § Energy-Water, Legislative, Military Construction-VA § Financial services, Interior-Environment, Agriculture, Transportation-Housing and Urban Development

U. S. Economic Development Administration (amount rounded to nearest million) Economic Development Administration Economic Development Assistance Programs Planning Grants Public Works Economic Adjustment Assistance Technical Assistance Research & Evaluation Trade Adjustment Assistance Innovative Manufacturing Loans/Sec. 26 Regional Innovation Strategies/Sec. 27 Assistance for Coal Mining Communities Salaries and Expenses *figures not available Final FY 17 276 237 32 100 35 9 2 13 17 30 39 President Final Request House Senate FY 18 FY 19 301. 5 15 301. 5 305. 5 262. 5 33 117. 5 37 9. 5 13 21 30 39 15 262. 5 33 117. 5 37 9. 5 13 21 30 39 266. 5 33 117. 5 37 9. 5 13 25 30 39

U. S. Economic Development Administration House Appropriations Directives: • Coal communities § Assistance for communities w/o economic development strategy § Report on progress of assistance, outlook • Regional Innovation Program § Support innovation clusters w/ focus on advanced wood products • Nuclear plant closures § Increase assistance to communities impacted by plant closures

U. S. Economic Development Administration Senate Appropriations Directives: • Report on broadband investments • Recognize economic potential for outdoor recreation projects, eligibility for funding • Reserve $3 m for NBRC to address recovery in forestbased economies • Identify best practices, report on assistance available for communities facing nuclear power plant closures

U. S. Department of Agriculture – Rural Development (amount rounded to nearest million) Department of Agriculture - Rural Development USDA Rural Business-Cooperative Service Rural Business Development Grants Business and Industry Guaranteed Loans Delta Regional Authority and Appalachian Regional Commission (Transfer) Intermediary Relending Program Account (loan subsidy and administrative) Rural Cooperative Development Grants Rural Energy for America (subsidy and grants) Rural Utilities Service Rural Water and Waste Disposal Program (subsidies and grants) Rural Electrification and Telecommunications (loan subsidy) Broadband Program (loan subsidies and grants) *< $1 m Final FY 17 Final FY 18 President Request FY 19 2, 937 102 24 922 3, 001 114 34 920 2, 023 - 3, 029 54 34 950 3, 001 109 40 920 6 6 - 5 8 10 27 9 28 - 9 28 9 30 1 673 0* 661 123 0* 743 0* 662 571 560 18 638 558 3 66 1 67 1 35 1 71 2 69 House FY 19 Senate FY 19

U. S. Department of Agriculture – Rural Development (amount rounded to nearest million) Final FY 17 Rural Housing Service 2, 067 Rural Housing Insurance Fund (loan subsidies) 89 Rental Assistance 1, 405 Multi-Family Housing Revitalization 41 Mutual and Self-Help Housing 30 Grants Rural Housing Assistance Grants 34 Rural Community Facilities Program (loan subsidies and grants) 47 *Administrative expenses only, no funding provided for guaranteed loans or grants President Final Request House Senate FY 18 FY 19 1, 995 1, 743 1, 995 1, 997 63 1, 345 10 1, 331 69 1, 331 73 1, 331 47 - 53 50 30 - 30 30 40 - 45 40 49 148* 44 52

U. S. Department of Agriculture – Rural Development House Appropriations Directives: • Rural Housing Service § Submit report outlining criteria defining “rural in character” for eligibility § POWER Plus: Apply Community Facilities investments in coal communities • Rural Business-Cooperative Service § Funding provided for transportation technical assistance* • Rural Utilities Service § Focus on water systems of “Very Small Communities”, predevelopment planning § Issue grants for technology upgrades in health and education *$500, 000

U. S. Department of Agriculture – Rural Development Senate Appropriations Directives: • Rural Housing Service § Issue report on cost of rural housing vouchers for low-income households receiving USDA assistance, property supported w/ Sec. 515 loan § Prioritize projects under Community Facilities Program addressing substance abuse and wildfire risk • Rural Business-Cooperative Service § Funding provided for transportation technical assistance* • Rural Utilities Service § Create pilot to solve sewage issues in mid-south through new technology, management, & regulations § Promote broadband in areas where business case lacking to expand service, continue USDA infrastructure initiative *$500, 000

Department of Transportation (amount rounded to nearest million) Department of Transportation Essential Air Service (Payments to Air Carriers) BUILD Grants (formerly TIGER) Federal Aviation Administration Airport Improvement Grants (Grants-in-Aid to Airports) Airport Discretionary Grants Small Community Air Service Development Program Federal Transit Administration Formula/Bus Grants FTA Capital Investment Grants (New Start/Small Starts) Transit Infrastructure Grants Federal Highway Administration Final FY 17 76, 213 Final FY 18 86, 185 President Request FY 19 76, 056 House FY 19 87, 804 Senate FY 19 86, 565 149 500 16, 407 155 1, 500 18, 001 93 16, 122 175 750 17, 691 175 1, 000 17, 702 3, 350 n/a 3, 350 1, 000 3, 350 n/a 3, 350 500 3, 350 750 10 12, 415 9, 734 10 13, 480 9, 733 11, 119 9, 939 13, 621 9, 939 10 13, 514 9, 939 2, 413 n/a 43, 148 2, 645 834 47, 498 1, 000 n/a 45, 791 2, 614 800 50, 258 2, 553 800 49, 308

Department of Transportation House Appropriations Directives: • National Infrastructure Investments (BUILD Grants) § $250 m each: rural, seaport, and urban projects § Prioritize multimodal projects along freight corridors in urban areas, rural bridge projects • Explore reforms on cutting costs for Essential Air Service • Issue best practices on state bids, corrosion control of structurally deficient bridges

Department of Transportation Senate Appropriations Directives: • DOT to issue report on impact of FY 19 budget on state DOTs, other entities receiving highway funding • Reserves $3 m for research on autonomous vehicle use in rural areas • National Infrastructure Investments (BUILD Grants) § Balance awards between urban/rural § Directs DOT to not weigh federal share in selection criteria • Retain current air traffic control system against proposal to privatize • Advance education to address workforce needs of transportation sector • DOT to provide guidance to states on financing bike-ped projects

U. S. Department of Housing and Urban Development President Final Request House (amount rounded to nearest million) FY 17 FY 18 FY 19 Housing and Urban Development 43, 656 48, 349 37, 023 48, 795 Community Development Block Grant 3, 000 3, 300 HOME Investment Partnership 950 1, 362 1, 200 Choice Neighborhoods 138 150 Homeless Assistance 2, 383 2, 513 2, 383 2, 546 Senate FY 19 49, 649 3, 300 1, 362 100 2, 612

U. S. Department of Housing and Urban Development House Appropriations Directives: • CDBG § Encourage resiliency in structures against natural hazards § Prioritize technical assistance for coal communities, use CDBG to aid revitalization • HOME § Issue report on income concentration, housing supply in metro areas § Recommend best practices on localities providing new housing stock in high-cost metros • CHOICE Neighborhoods § Prioritize prior year planning grant recipients for grant implementation

U. S. Department of Housing and Urban Development Senate Appropriations Directives: • Encourages HUD to allow flexibility for applicants under 1, 000 pop. to use various sources of data to establish LMI • HUD to issue report on strengthening partnerships between CDBG recipients and non-profits for project development • $5 m provided for capacity building in rural communities under Self-Help Homeownership Opportunity Program (SHOP)

U. S. Department of Labor President Final Request House (amount rounded to nearest million) FY 17 FY 18 FY 19 Employment and Training Administration 9, 974 10, 018 6, 541 9, 800 Adult Employment and Training 816 846 490 846 Youth Activities 873 903 524 903 Dislocated Worker Employment and Training 1, 242 1, 262 615 1, 041 Job Corps 1, 704 1, 719 1, 297 1, 719 Apprenticeships 95 145 200 150 Senate FY 19 9, 907 846 903 1, 262 1, 719 160

U. S. Environmental Protection Agency (amount rounded to nearest million) Environmental Protection Agency State and Tribal Assistance Grants Infrastructure Assistance Grants Brownfields Categorical Grants Final FY 17 8, 149 3, 527 2, 461 80 1, 066 Final FY 18 8, 207 3, 562 2, 486 80 1, 076 President Request House FY 19 6, 412 8, 081 2, 929 3, 588 2, 332 2, 522 62 80 597 1, 066 Senate FY 19 8, 058 3, 575 2, 482 80 1, 093

Federal-State Regional Commissions Southeast Crescent Regional Commission Appalachian Regional Commission Base Program POWER+ Plan/Coal Related Investments Congressionally Directed Special Programs Special Regional Initiative for Distress Delta Regional Authority Denali Commission Northern Border Regional Commission Final FY 17 President Final Request House Senate FY 18 FY 19 . 25 N/A . 25 - 152 70 155 73 50 50 50 32 32 - 32 32 25 15 25 30 32 3 7 15 15 25 15 10 15 1 12 20

Farm Bill • House version passed 2 nd vote June 21: 213 -211 • House bill includes provision on work requirements for SNAP participants § SNAP recipients 18 to 59 must work or be enrolled in job training program for at least 20 hours/week § Excluded from work requirement are recipients over 59, disabled, pregnant women, and people with children under age 6 § Provides $250 m in FY 2020 and $1 b each year thereafter for employment and training programs • Senate version approved late July, 86 -11 • Moves to conference committee after recess • Authorization expires September 30

Farm Bill Provision House Senate Expands SECD Program Support against opioid epidemic Support for broadband expansion Supports healthy foods initiative Reauthorizes economic and infrastructure dev programs Reauthorizes Intermediary Relending Program Mandates new work requirements for SNAP recipients Removes mandatory spending for RD programs Establishes Under Secretary for Rural Development

Farm Bill • If provision on removing mandatory funding stands… § Potential for less funding towards loan/grant programs • Reauthorizes RD loan and grant programs through 2023 • Reauthorizes Strategic Economic & Community Development planning & technical assist. § $5 m annually • Enhances assistance for broadband § Upgrades standard § Prioritizes hard-to-reach areas • Supports community health § Emphasis on opioids: broadband, community facilities § Reauthorizes healthy foods initiative, creates pilot

Farm Bill • Establishes Undersecretary for RD (Senate) § RD lead designated as Assistant to the Secretary • Reauthorizes federal-state reg commissions § Delta Regional Authority § SW Border Regional Commission

Reorganization Proposal • In June, Trump Administration released its government reform plan • Delivering Government Solutions in the 21 st Century created by EO directive to reorganize Executive Branch • Aims to reduce duplicity and promote efficiency and effectiveness in federal gov • Private sector used as example for reinventing government service delivery • Plan offers 32 actions both domestic and foreignbased programs

Reorganization Proposal • Notable reforms: § Consolidate federal economic assistance under newlycreated agency in Commerce, Bureau of Economic Growth § Merge Labor and Education departments to create Department of Education and the Workforce § Transfer nutrition assistance from Agriculture to Health and Human Services, rename to Health and Public Welfare § Move rural housing loan guarantee and rental assistance programs to Housing and Urban Dev § Consolidate all federal lending programs for small business under Small Business Administration § Reassign program authority at DOT

Reorganization Proposal • Federal economic assistance reform: § Establishes Bureau of Economic Growth within Commerce § Agency would administer CDBG, EDA Economic Dev Assistance programs, USDA rural business and community grants § Bureau would also absorb federal-state regional commissions (ARC excluded) • DOT reform: § Transfers authority of air traffic control to non-profit entity § Homeland Security takes over administration of transportation security programs § Reassesses program authority under DOT Secretary (BUILD, INFRA) • Congressional action not being considered at this time

Additional Updates • Nomination of Assistant Secretary for Economic Development § John Fleming, former Louisiana congressman § Confirmation vote expected soon • Rescissions bill fails in Senate • Work left to do on reauthorization bills § Water Resources Development Bill (Senate) § National Defense Authorization Act (conference) § National Flood Insurance Program (Senate) § Recently extended through Nov. § House passed bill in Sep. 2017 § Federal Aviation Administration (Senate)

Additional Updates • House T&I Chairman Shuster released infrastructure plan § Increases gas tax by $. 15 and diesel by $. 20 § Eventual elimination of gas tax to replaced by VMT fees § National infrastructure funding (30% rural focus) § Reauthorizes EDA through 2023 • EDA Elimination Act introduced in House § Rep. Ralph Norman (SC) – 5 th District § Referred to Transportation and Infrastructure and Financial Services Committees

Questions?