Statement of Administration Policy: H.R. 2118 - Supplemental Appropriations Act of 1993

(Senate Floor)
(Sponsor: Byrd (D), West Virginia)

The purpose of this Statement of Administration Policy is to present the Administration's views on the Supplemental Appropriations Act of 1993, as reported by the Committee.

The Administration supports H.R. 2118, as reported by the Appropriations Committee, but has some concerns with the bill that are discussed below. It is hoped that these concerns can be addressed in the Senate or later in the process.

• In an effort to provide a down payment on the Administration's long-term investment program, the President asked Congress to consider a new package of key, targeted investments. The Administration appreciates the Committee's effort to include some of these key investments in H.R. 2118. While the Administration is not seeking Senate amendments to fully fund the investments, we will work with the conferees to fund these items.
• The Administration would support an amendment to provide authority requested by the President on June 4th that would permit the Secretary of Agriculture to transfer up to $63 million in previously appropriated funds to continue the effort to help the victims of Hurricane Andrew, Hurricane Iniki, and Typhoon Omar. This proposal involves the transfer of previously appropriated "emergency" funds and would have no net budgetary effect.
  
  The Administration would support an amendment to provide at least $98 million in additional funding for the Department of Housing and Urban Development's (HDD's) HOME/CDBG programs specifically for victims of Hurricanes Andrew and Iniki and Typhoon Omar. This increase can be funded through transfers and/or rescissions of currently available HUD funds.
  
  Enactment of these two proposals would permit the Departments to address the depth of destruction caused by natural disasters, such as Hurricane Andrew, and the need to redirect disaster assistance in order to promote rebuilding and to respond effectively to the continuing need for disaster relief.
  
  
• The Administration would support an amendment, with appropriate offsets, to provide $181 million for Small Business Administration Section 7(a) loan guarantees, as included in the House-passed bill. Regular appropriations for FY 1993 were exhausted April 27th. As a result, thousands of businesses have been unable to secure the credit needed for working capital or expansion.
  
  
• The Administration would support an amendment to provide $36 million in FY 1993 user fees for the Food and Drug Administration (FDA), as requested. This language would enable the FDA to implement the Prescription Drug User Act of 1992, which allows the FDA to collect user fees dedicated to improving and expediting the process for review of drug applications. If user fee language is included in the bill, the Department of Health and Human Services will make fulltime equivalent employment available to conduct the new drug reviews in FY 1993.
• o The Administration urges the Senate to include $38 million, with appropriate offsets, requested for the FHA General and Special Risk Insurance Fund to insure single-family and multifamily mortgages through the remainder of the year. Without this funding, which will provide for an increase of up to $1 billion in the existing loan guarantee limitation, thousands of homebuyers will have to delay their purchases, and thousands of tenants will lose the benefit of lower rents due to reduced financing costs.
  
  
• The Administration urges deletion of the provision allowing the CCC to use available disaster funds to make payments on crop losses in 1993, 1994, and 1995 that are due to Hurricanes Andrew and Iniki or Typhoon Omar.
  
  Under current law, disaster payment funds are available for obligation only through FY 1993. While Committee report language seeks to direct the Secretary to obligate for out-year losses in FY 1993 based on projections of the future losses, this intent will be difficult to achieve since obligations require documentary evidence (31 U.S.C 1501) that will not be available in FY 1993.
  
  Funding for out-year disaster losses should be deferred until needs can be determined in a more accurate manner. If funding is provided, the statutory language should be clarified so that obligations may be made in the out-years.
  
  While the Administration has no objection to making disaster payments on quality losses for crop years 1990, 1991, and 1992, producers will be required to have clear, valid documentation of those losses. In addition, payments for expanded disaster eligibilities included in the bill should only be made from currently available balances of disaster funds so that the Federal deficit would not be increased.
  
  
• The Administration objects to several of the rescissions contained in the Committee-reported bill. The Administration will work with the conferees to identify alternative offsets.