This Week In Washington DC, Dec 18, 2014

This Week In Washington DC

Top 5 Stories

1.      The Obama administration announced the US will normalize relations with Cuba, opening its first embassy in Havana in more than 50 years, following 18 months of secret negotiations between the two countries and the release of prisoners held by both nations.

Look ahead: Republicans have threatened to impede efforts to confirm an ambassador to Cuba and provide funding for an embassy.

2.      The omnibus appropriations bill cleared the Senate on a 56-40 vote, after stalling due to demands from Sens. Ted Cruz, R-Texas, and Mike Lee, R-Utah, for a vote to defund President Obama's executive action on immigration.

Look ahead: While Republicans intend to return to a regular budget process, the return of sequestration-induced cuts could spur contentious debates over funding in the next Congress.

3.      On a 76-16 vot, the Senate granted final approval to a short-term extension of 54 tax breaks, retroactive to Jan. 1, 2014, which is expected to add $42 billion to the federal deficit.

Look ahead: Lawmakers expect to resume negotiations on a long-term agreement in the new year.

4.      Federal investigators have linked North Korea to the cyberattack and terrorism threats against Sony Pictures Entertainment, who then canceled the release of The Interview.

Look ahead: This sets a bad precedence of succumbing to cyber threats and will embolden others to make more cyber attacks—look for an increase in cyber attacks.

5.      A six-year extension of the Terrorism Risk Insurance Act, which is designed to provide a federal backstop for insurers in the event of a terrorist attack, died in the Senate amid opposition from Sen. Tom Coburn, R-Okla., after passing the House on a 417-7 vote.

Look ahead: While the TRIA program is expected to lapse now that the 113th Congress has adjourned, Senate Republican leaders hope to take up legislation early in the 114th Congress.