This Week In Washington DC, July 24, 2014

This Week In Washington

Top 5 Stories

1.      House GOP leadership aims to tackle 4 key issues ahead of the August recess: a short-term spending bill to keep government funded and operating at current levels beyond Oct. 1; Republicans' funding and policy response to the president's supplemental request; reforms to the embattled Veterans Affairs Department; and formal authorization of Speaker John Boehner's lawsuit over Obama's use of executive actions.

Look ahead: President Obama dispatched a team of Defense and Homeland Security department officials to determine the efficacy of a National Guard deployment to the border, and on Friday will host Central American presidents Friday to discuss joint efforts to stem the tide of undocumented arrivals.

2.      The conflict in Ukraine intensified this week, as 2 Ukrainian fighter jets were shot down near the Russian border, allegedly with missiles fired from inside Russia, just days after a Malaysia Airlines plane was struck, apparently by a Russian-made surface-to-air missile, killing all 298 on board.

Look ahead: The bodies of dozens of MH17 victims arrived in the Netherlands, where investigators will work to identify the victims and return them to relatives.

3.      Israel escalated its military operation in Gaza, launching a ground offensive and continuing aerial bombardment, as the death toll topped 600 Palestinians and 30 Israelis. Diplomats from the United States, Israel, and several Middle Eastern states proposed an immediate cease-fire in exchange for economic assistance, but Hamas leader Khaled Meshaal demands an end to the Israeli blockade of Gaza as a prerequisite.

Look ahead: The U.N. Security Council, which held an emergency meeting on the conflict Sunday, voiced "serious concern" over the number of civilian casualties and called for an immediate end to hostilities.

4.      A 3-judge panel of the U.S. Court of Appeals for the D.C. Circuit ruled the federal government may not subsidize the insurance premiums of individuals receiving coverage through the federal exchange, while a panel of the Richmond-based U.S. Court of Appeals for the Fourth Circuit held the Internal Revenue Service rule establishing the subsidies is "a permissible exercise of the agency's discretion."

Look ahead: The administration could seek a review.  Additional cases are pending in other courts, and the Supreme Court could take up one or more of the cases. Finally, Congress could clarify the relevant language in the ACA, or more states could set up their own exchanges.

5.      Former Dollar General CEO David Perdue edged 11-term Rep. Jack Kingston in the GOP runoff for Georgia's open Senate seat, garnering 51% of the vote and setting up a general-election battle against Democrat Michelle Nunn.

Look ahead: A victory for Nunn could help Democrats lock up control of the Senate, but Republicans haven't lost a major race in the state in over a decade.

This Week In Washington DC, July 17, 2014

This Week In Washington

Top 5 Stories This Week

1.      Amid increasing Democratic opposition to expedited deportations of Central American minors, President Obama met with members of the Congressional Hispanic Caucus, while White House officials briefed senators on the administration's response to the surge.

Look ahead: The White House cited Monday's expedited deportation of 38 Honduran women and children as evidence that those who cross the U.S. border illegally "will not be welcomed to this country."

2.      The United States imposed new, targeted sanctions against major Russian banks and energy and defense companies, but the administration stopped short of employing sector-based sanctions. The European Union agreed to halt European Investment Bank lending for public-sector projects in Russia, and to push for an end to new loans by the European Bank for Reconstruction and Development.

Look ahead: Russian President Vladimir Putin warned that the sanctions, which for the first time target key players in the Russian economy, will backfire on the Obama administration by harming bilateral relations and the interests of U.S. companies.

3.      Israel has invaded (land, sea and air)Gaza searching for underground tunnels after a comprehensive cease-fire—intended to allow delivery of supplies to Gaza— was apparently broken by mortar fire from militants.

Look ahead: Hostilities continue, though negotiations for a lasting truce continue in Egypt.

4.      The House approved on a 367-55 vote a $10.9 billion Highway Trust Fund bill authored by Ways and Means Committee Chairman Dave Camp, R-Mich., which would be funded through $6.4 billion in gains from pension-smoothing, $3.5 billion from customs fees, and $1 billion from a special fund dedicated to addressing leaking underground storage tanks.

Look ahead: Senate Majority Leader Harry Reid is eyeing consideration of three highway fund proposals: the House-passed bill, a competing measure from the Senate Finance Committee, and a shorter-term offering from Sen. Barbara Boxer, D-Calif.

5.      Federal Reserve Chair Janet Yellen delivered the semiannual Monetary Policy Report to Congress this week, resisting House Republicans' calls for disclosure of her weekly conversations with Treasury Secretary Jacob Lew and rejecting as "a grave mistake" a proposed formula to guide monetary policy.

Look ahead: Yellen advised the Senate Banking Committee that while the labor market is improving, "a high degree of monetary policy accommodation remains appropriate" until it becomes clear that the economy is on a solid footing.