2. APPROPRIATIONS:

Transportation, ag bills set to hit House floor despite veto threats

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Despite a veto threat from the Obama administration on both measures, the House is set to debate the spending bills for transportation and agriculture programs.

The Transportation, Housing and Urban Development, and Related Agencies fiscal 2013 bill -- which is essentially using placeholder language as negotiations continue over a long-term transportation spending reauthorization -- would spend $51.6 billion, $3.9 billion less than fiscal 2012 levels and $1.9 billion below President Obama's request. It passed the full Appropriations Committee by a voice vote last week.

Debate is scheduled to begin on the transportation spending measure tomorrow with a final vote expected this week. The House will move on to the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies appropriations bill later in the week if time allows -- which remains an open question, given the chamber's busy agenda.

The agriculture measure also passed the full committee by a voice vote last week. It would give programs $19.4 billion in discretionary spending in fiscal 2013, a 1.8 percent decrease from current levels and $1.7 billion below the administration's request.

Both measures will come up under an open rule, allowing amendments to the bills. They would represent the sixth and seventh spending bills to see floor time this year.

The White House last week threatened to veto both bills, citing heavy cuts it said could violate spending totals agreed to under the 2011 Budget Control Act. The administration said the transportation bill not only keeps spending levels low but also zeroes out money to pet administration programs like high-speed rail and the popular TIGER livability grant program. The administration also expressed disappointment that the House had not funded a $100 million administration proposal for a sustainable communities program.

However, the bill's funding levels may ultimately be rewritten based on progress of a bicameral conference working on a long-term transportation bill. Subcommittee Chairman Tom Latham (R-Iowa) said during a subcommittee markup that levels could change based on the results of the ongoing conference.

Conference members say they are making progress and could have an agreement this week ahead of a June 30 funding expiration. However, talk so far has largely focused on transportation policy, and sources close to the talks said Friday that funding levels and pay-fors have not been firmed up. Capirol Hill staff members were expected to meet through the weekend to continue negotiating a deal.

The bill currently contains an amendment from Rep. David Price (D-N.C.) rescinding unused funding for magnetic levitation trains and using the proceeds to pay for extra rail safety grants.

On the agriculture bill, the administration pointed to "harmful cuts" it makes to several programs, including food assistance, economic development, renewable energy development, food safety and international food aid.

Last week, House Appropriations Chairman Hal Rogers (R-Ky.) said the House agriculture bill represents a "careful balance between fiscal restraint and acceptable spending."

But House Democrats have also been highly critical of the measure for cuts it makes to the Commodity Futures Trading Commission, the federal agency responsible for regulating oil speculation. The bill proposes to fund the agency at $180 million, well below the president's request of $308 million and current funding levels of $205 million.

The bill's funding level, Democratic appropriators have said, does not give the agency the resources it needs to carry out the 2010 financial reform act. The reform package called for CFTC to put position limits on excessive speculation in the energy futures markets and regulate the $300 trillion over-the-counter derivatives market for the first time in its history.

Amendments will be offered on the House floor. Democratic amendments to boost the funding of CFTC have failed in both the subcommittee and committee markups.

Democratic Reps. Rosa DeLauro of Connecticut and Barney Frank and Ed Markey of Massachusetts attempted last week to attach an amendment to grant the administration's full $308 million request to a Republican energy package, but the amendment failed by a vote of 180-235.