Greenberg Traurig

The 2006 elections dramatically changed the power structure in Congress. For the first time in 12 years, the Democratic Party will control both the House of Representatives and the Senate. The election results currently give the Democrats a 227 - 195 majority in the House with 13 races still undecided. The Democrats also appear to have won a narrow 51 - 49 majority in the Senate. However, with Senate contests in Virginia and Montana separated by only a few thousand votes, recounts are expected.

Congress is expected to resume work on November 14^th. The first order of business is to pass the remaining FY 2007 spending bills. If they are unable to complete action on the spending bills, a continuing resolution will be passed to fund the government until early next year when Congress returns.

When the 110^th Congress convenes in January 2007, the Democratic controlled House of Representatives will change priorities and pursue a different agenda. Soon-to-be House Speaker Nancy Pelosi stated that in the first 100 hours of the new Congress, she will push for action to implement all 9/11 Commission recommendations on national security, raise the minimum wage to $7.25, eliminate corporate subsidies for oil companies, allow the government to negotiate Medicare drug prices, impose new restrictions on lobbyists, cut interest rates on college loans, and support embryonic stem-cell research.

Also, it is expected that House and Senate Democrats will increase oversight of large domestic industries. Specifically, Democrats will focus on drug prices, oil-company profits, and FDA-regulated industries. Congressional oversight will focus heavily on the Bush administration’s FY 2008 budget proposal. Finally, House Democrats are expected to look back and examine “waste, fraud and abuse” across the federal government – particularly the rebuilding efforts in Iraq and the Hurricane Katrina-ravaged Gulf Coast.

Over the next two years, Congress and the White House will debate a host of issues critical to businesses, municipalities, and non-profit organizations. In addition, Congress and the White House will consider business left unfinished by the previous Congress, issues triggered by national and international events, and matters arising from the requirements of the legislative process itself. While legislation may advance quickly in the House, Senate rules will require a more deliberative process. On issues related to education, immigration, health care, and homeland security, there will be opportunities for compromise between the Democratic controlled Congress and President Bush.

The following is a brief overview of legislative issues the new Congress is expected to consider.

Issue Area	Possible Initiatives in the 110th Congress
Business	· Increase employer penalties for violations of worker safety and benefit laws · Boost funding for OSHA, increase the number of inspectors · Extend the research and development tax credit · Increase the minimum wage · Repeal tax breaks that encourage companies to move jobs overseas
Health Care	· Reform the Part D prescription drug plan · Allow for federally negotiated prices for prescription drugs · Reauthorize and expand SCHIP (State Children’s Health Insurance Program) · Expand federally funded embryonic stem cell research · Increase usage of Health Information Technologies
Education	· Make permanent the deductibility of college tuition · Cut interest rates on student loans · Increase the number of Pell grants
Environment	· Mandate curbs of industrial carbon dioxide emissions · Examine methods to combat climate change
Defense and Homeland Security	· Increase screening of cargo containers entering ports and land borders · Increase funding for training and equipping of first responders · Examine DOD contracting practices · Increase veterans benefits · Augment capabilities of Special Forces
Energy	· Reform energy-related incentive programs, including tax credits. · Examine corporate subsidies for the oil and gas industry.
Immigration	· Address the 12-18 million undocumented workers in the U.S. · Establish a new guest worker program · Increase the green card allotments for families and employers · Revamp worksite enforcement mechanisms · Reform employer verification of employment eligibility · Mandate electronic and possibly biometric systems
Transportation	· Reauthorize the FAA · Examine the fees that provide funding for the FAA and airport operations · Block a pending agency final rule to allow increased foreign ownership of U.S. airlines. · Increase funding for mass transit.
Trade	· Consider new free trade agreements with such commercially significant trading partners as Korea, Malaysia, Colombia, Peru and Thailand · Debate new trade preference programs · Examine the imbalance of trade with China · Reauthorize the "Farm Bill" · Extend the President’s “trade promotion authority”
Tax	· Focus tax policy on “middle class” issues · Address the Alternative Minimum Tax · Increase child and education-related tax incentive programs · Examine windfall profit taxes on oil companies

Education and Workforce Cmte: George Miller (CA). Outgoing Chair: Buck McKeon (CA).

Energy and Commerce Cmte: John Dingell (MI). Outgoing Chair: Joe Barton (TX).

Financial Services Cmte: Barney Frank (MA). Outgoing Chair: Mike Oxley (OH).

Homeland Security Cmte: Bennie Thompson (MS). Outgoing Chair: Peter King (NY).

House Admin Cmte: Juanita Millender-McDonald (CA). Outgoing Chair: Vernon Ehlers (MI).

Small Business Cmte: Nydia Velazquez (NY). Outgoing Chair: Donald Manzullo (IL).

Standards of Official Conduct Cmte : Howard Berman (CA).Outgoing Chair: Doc Hastings(WA).

Transpo and Infrastructure Cmte: James Oberstar (MN). Outgoing Chair: Don Young (AK).

House Permanent Select Cmte on Intel: Alcee Hastings (FL) or Jane Harman (CA).
Outgoing Chair: Peter Hoekstra (MI).

Banking, Housing, and Urban Affairs Cmte: Chris Dodd (CT).
Outgoing Chair: Richard Shelby (AL).

Commerce, Science, and Transpo Cmte: Co-Chair Daniel Inouye (HI).
Outgoing Co-Chair: Ted Stevens (AK).

Energy and Natural Resources Cmte: Jeff Bingaman (NM).
Outgoing Chair: Pete Domenici (NM).

Enviro and Public Works Cmte: Barbara Boxer (CA). Outgoing Chair: James Inhofe (OK).

Health, Education, Labor, and Pensions Cmte: Ted Kennedy. Outgoing Chair: Mike Enzi (WY).

Homeland Security and Govt'l Affairs Cmte: Joe Lieberman (CT).
Outgoing Chair: Susan Collins (ME).

*This list contains our best estimate. Identities won't be confirmed until the Democrats and the Republicans formally choose Chairman and Ranking Members.