Senate Passes Minimum Wage Increase with Tax Cuts Added

On Feb. 1, the U.S. Senate wrapped up nearly two weeks of debate with a 94-3 vote to approve S. 2, the Fair Minimum Wage Act of 2007. The bill raises the federal minimum wage to $7.25 an hour by 2009 and extends $8.3 billion of existing small business tax breaks. The fate of the bill remains uncertain because House Democrats are reluctant to provide tax breaks for small business in exchange for passing a minimum wage hike.

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OMB Watch Critical of Proposed Chemical Security Rule

In response to the Department of Homeland Security's (DHS) proposed interim chemical security rule, OMB Watch will submit comments to DHS that argue for increased transparency and stronger protections at thousands of facilities across the country.

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Courts Defining When Government Funds Cannot Support Faith-Based Programs

The U.S. Supreme Court will soon hear oral arguments about whether taxpayers have the right to challenge the constitutionality of government funding for conferences supported by the White House Office of Faith-Based and Community Initiatives that are alleged to promote religious groups over secular ones. Meanwhile, several recent court decisions involving separation of government-funded and religious programs provide some clarity to vague federal regulations.

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More Grassroots Campaigns to Come

An article in The Hill discusses how ethics rule changes will generate an even greater reliance on grassroots campaigns. Grassroots lobbying and lobbying firms are becoming increasingly more important, and will continue to do so. Lobbyists are not required to report grassroots campaigns to the federal government making them difficult to monitor, while traditional lobby firms will growingly partner with independent grassroots firms.

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President Rehashes Tired Old Budget Process Reform Proposals

The Analytical Perspectives portion of President Bush's proposed budget includes a section that outlines seven budget process reform proposals. Six of them are updated versions of proposals from previous years, while one is new, covering earmark reform.

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Federal Contractors: The Invisible, Unaccountable Agency

The incredible growth in the amount of money spent by the federal government on contractors, with almost no corresponding increase in oversight or management, was highlighted in a recent New York Times article, "In Washington, Contractors Take on Biggest Role Ever." According to the article, the amount spent on federal contracts has doubled since 2000, from $207 billion to $400 billion. The lack of sufficient government oversight has led to a virtual free reign for contractors, who are not answerable to the public and have not been called to account by the federal government.

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OMB Wraps Up First Complete Round of PART Reviews with Little to Show

With the release of the President's FY 08 budget, the Office of Management and Budget has completed reviews of almost every federal program using their review mechanism — the Program Assessment Rating Tool (PART). To date, nearly 1,000 federal programs, representing 96 percent of all programs, have received at least one review with the PART.

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Media, Congress Begin to Examine Bush's Executive Order on Regulatory Process

President George W. Bush's Executive Order amending the regulatory process in significant ways didn't immediately garner the attention one might have expected from the mainstream media and Congress. The order set in motion changes that could further delay or hinder public health, safety, environmental, and civil rights protections. It was issued by the White House, with a press release, Jan. 18, and only OMB Watch and Public Citizen rang the alarm bells, calling attention to changes that give OMB's Office of Information and Regulatory Affairs (OIRA) even broader powers over agency actions.

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President's Budget Fails to Resolve Tax Gap

The president's legislative and budget proposals for tax enforcement will mostly serve to maintain the status quo and will not make a meaningful reduction in the $300 billion-plus tax gap.

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Congress Steps Up Oversight of Executive Branch

Congressional Democrats are stepping up their oversight of the Bush administration. Several of the steps Congress has taken, or is likely to take soon, have implications for the federal government's regulatory policy. One recent oversight hearing reflected concerns over scientific integrity within the White House. The impetus for two other hearings, and one potential hearing, is concern over the Bush administration's failure to enforce laws passed by Congress.

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