Billy Moore's Washington Update

July 26, 2010

President Barack Obama enacted sweeping Wall Street reforms last week, but his economic message was overshadowed by a White House apology to an African-American Department of Agriculture employee who was terminated after a conservative website inaccurately portrayed her as unwilling to help a white man save his family farm. The President sought to refocus attention back on the economy, but the opportunity was squandered.

Late last week the Senate stripped the Iraq-Afghanistan supplemental appropriation of House-added domestic spending, and Representatives appear ready to surrender and clear the bill for President Obama's signature. Senate Democrats surrendered to defeat of their effort to pass global warming legislation.

Senators will begin the week debating a campaign finance reform measure and could turn to a small business jobs bill. Offshore drilling reforms are on the agenda for both chambers. The House will take up its first fiscal 2011 appropriation bill. Representatives begin their August recess Friday.

The White House issued its mid-session deficit forecast Friday, predicting a fiscal 2010 shortfall of $1.47 trillion, $84 billion less than estimated in February. Deficits below one trillion dollars are not forecast until 2012.

Amid the forecasts, Senate Democrats may add extending the Bush tax cuts for those with incomes below $250,000 to their pre-recess agenda. The proposal may include extension of expired tax provisions, a measure stuck in the Senate for months, but it is unclear whether it will extend enhanced Medicaid funding for states.

The Gallup poll found confidence in Congress at a record low of 11 percent, lowest among 16 institutions tested. Gallup also found generic Democratic congressional candidates winning a six-point advantage, the first significant lead for Democrats since Gallup began tracking the measure in March. Republican voters are almost twice as enthusiastic about the November election as Democrats.