–Senate Majority Leader: ‘We Have A Lot To Do’ On Key Issues
–Sen. Reid: Senate To Stay In Session ‘As Long As We Have To’

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Monday
that Congress must secure this week agreements on long-stalled surface
transportation and student loan legislation.

In remarks on the Senate floor, Reid noted that Congress is
scheduled to be on recess next week for the Fourth of July break, but he
said the Senate holiday is contingent to completing action on several
key issues.

He said the Senate will stay is session “as long as we have to” in
order to complete action the student loan and surface transportation
bills and several other matters such as flood insurance and Federal Drug
Administration bill.

“We have a lot to do,” Reid said.

Regarding the student loan interest rate bill, congressional
leaders are exploring options to develop legislation that would prevent
a mandated increase in some student loan interest rates from going
forward.

Reid and Senate Minority Leader Mitch McConnell are leading the
efforts to craft a compromise.

Congress passed a bill in 2007 that was signed by President Bush to
temporarily reduce the interest rate on subsidized Stafford loans to
college undergraduates from 6.8 percent to 3.4 percent. That interest
rate decrease is set to expire July 1. Extending the interest rate
reduction would cost $6 billion for one year.

House Republicans have passed legislation that extends the student
loan interest rate reduction for another year and pays for the $6
billion cost by tapping funds from prevention and public health services
that were established by the 2010 health care law.

Reid has said that extending the student loan interest rate
reduction is important to seven million students and should be paid for
by ending a tax break for S corporations.

Now that the scheduled interest rate increase on July 1 is
approaching, leaders from both parties are actively exploring compromise
proposals to fund the package.

Reid has suggested two pension-related provisions to pay for the
package. Republicans have offered four suggested offsets.

Congressional leaders are also closely following the work of a
House-Senate conference committee as it continues to work on a
compromise transportation bill.

The Senate passed a two year $109 billion surface transportation
bill. House Republicans unveiled a five year $260 billion plan, but
never presented it to the full House.

House Speaker John Boehner has said that if an agreement can’t be
reached by the end of this month on a surface transportation bill, he
will push a stop-gap bill to fund current transportation programs until
after the November elections.

Another alternative is that Congress may pass a short-term
extension of transportation programs while the final multi-year package
is assembled and approved in July.

** MNI Washington Bureau: (202) 371-2121 **

[TOPICS: M$U$$$,MFU$$$,MCU$$$]