On September 14, 1999, the House passed the Shays-Meehan bill--H.R. 417, the Bipartisan Campaign Finance Reform Act of 1999, as amended, by a vote of 252-177. Senate sponsors of the companion measure, S. 26 (McCain-Feingold), revised their proposal and, on September 16, introduced S. 1593, containing just four sections of H.R. 417 and S. 26. The Senate debated S. 1593 from October 13-20, culminating in unsuccessful cloture votes October 19 on two amendments: Daschle amendment 2298, substituting text nearly identical to the House-passed H.R. 417; and Reid amendment 2229 (a perfecting amendment to no. 2298), substituting text of S. 1593 as offered, plus McCain amendment 2294 (adopted October 14), which added certain disclosure requirements. This report compares provisions of the House-passed bill with the one considered by the Senate in October 1999. No further updates are planned.

The Administration initiative to shift federal emergency management policy away from a "response and recovery" emphasis has generated little congressional controversy, although some have raised concerns about the cost effectiveness of implementing a mitigation strategy. Greater attention, it is generally argued, should be given to mitigation (loss reduction) efforts before disasters occur in order to reduce future losses. Legislation (H.R. 707, S. 1691) pending before the 106th Congress would amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act) which authorizes federal assistance when the President declares that a catastrophe has overwhelmed state and local resources.

This report discuses issues such as Reforming Superfund, defense cleanup compliance, funding measures, beach assessment, air-related risk management plans, and research received congressional attention in the 106th Congress, first session. In the remaining days, there may be action related on water quality programs involving specific water bodies, and funding of environmental programs.

The Clean Air Act and its 1990 amendments appear to have contributed to a marked improvement in air quality nationwide. Of nearly 100 metropolitan areas not meeting air quality standards for ozone in 1990, more than two-thirds now do so. Even greater progress has been achieved with carbon monoxide: 36 of 42 areas not in attainment in 1990 now meet the standard. Nevertheless, EPA remains concerned about air pollution. In 1997, the Agency promulgated major revisions to its air quality standards for ozone and particulates, an action that would require most states and urban areas to establish additional controls on a wide range of pollution sources. The revised standards were challenged by numerous parties and the courts have remanded the standards to EPA. Implementation is currently in limbo, pending resolution of appeals by the Supreme Court.

This report discusses the Airport Improvement Program (AIP), which provides federal grants to airports for capital development. This report also discusses the Aviation Investment and Reform Act for the 21st Century, also referred to as AIR21, which includes provisions for increases in AIP spending, among other things. Primarily, this report discusses the legislative processes surrounding the enaction of these laws and the various appropriations the laws authorize.

The 106th Congress is considering a general overhaul of derivatives regulation. Pending legislation would codify the unregulated status of certain derivatives, exempt many other currently-regulated contracts from oversight by the Commodity Futures Trading Commission, and permit the trading of a new kind of contract: a futures contract based on the stock of an individual corporation. Derivatives legislation has been reported out of committee in both House and Senate. This report analyzes this legislation in the 106th Congress, and will be updated as developments warrant.

The Centers for Disease Control and Prevention (CDC) released in September new estimates showing that each year in the United States 76 million people get sick, 325,000 are hospitalized, and 5,000 die from food-related illnesses. Food-borne illness is a serious public health problem. Often, people do not seek medical help and their illness is not officially reported. Yet, consumers have become aware of the serious consequences of illnesses linked to a growing variety of foods, produced domestically or imported. Consumers want the government to regulate the food supply, and industry is interested in producing foods that are safe at a reasonable price. As a result there is congressional interest in oversight and legislation in this area.

SUMMARY The United States and Mexico have a special relationship under the North American Free Trade Agreement (NAFTA), which removes trade and investment barriers between the countries. The relationship has been strengthened by presidential visits, including President Clinton's February 1999 trip to Mexico and President Zedillo's upcoming May 23 trip to Washington, and by regular contacts between cabinet-level officials. Major issues of concern to Congress are trade, immigration, drug trafficking, and political rights.

The United States and Mexico have a special relationship under the North American Free Trade Agreement (NAFTA), which removes trade and investment barriers between the countries. The relationship has been strengthened by presidential visits, including President Clinton's February 1999 trip to Mexico and President Zedillo's June 2000 trip to the United States, and by regular contacts between cabinet-level officials. Major issues of concern to Congress are trade, immigration, drug trafficking, and political rights.

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Two reauthorization bills have been reported in the House: the Transportation and Infrastructure Committee reported H.R. 1300 (H.Rept. 106-353, Part I), and the Commerce Committee reported H.R. 2580 (H.Rept. 106-775, Part I). The Senate Environment and Public Works Committee has considered a brownfields bill, S. 2700. The outlook for passage of any of them is not bright.

Taxes have been a major focus of congressional attention during the first half of 2000. In part, Congress has returned to many of the issues it addressed last year. In August, 1999, Congress passed a set of tax cuts with the Taxpayer Refund and Relief Act (H.R. 2488; TRRA). However, President Clinton vetoed the bill, arguing that the cuts were too large (an estimated $792 billion over 10 years), would drain funds from Social Security surpluses, and would force reductions in domestic spending. Early in 2000, Congress signaled its intention of revisiting tax cuts with passage on April 13 of a fiscal year (FY) 2001 budget resolution (H.Con.Res. 290) calling for a 5-year tax cut of $175 billion.

In the months approaching China's resumption of sovereignty over Hong Kong on July 1, 1997, policy analysts are trying to assess how the territory will fare under Chinese rule. The answer is important to U.S. interests because of the enormous U.S. economic presence in Hong Kong; because any adverse developments in Hong Kong are likely to affect U.S.-China relations; and because China's promise to give Hong Kong a high degree of autonomy under the "one-China, two-systems" policy has major implications for Taiwan. But given the political situation, the American ability to affect the course of events in Hong Kong seems marginal unless the U.S. decides to confront Beijing more directly. Developments in U.S.-China relations in 1994-1995 suggest Washington might be hesitant to do so.

Agricultural interests have been following trade policy developments against a backdrop of weak foreign demand and large world supplies of agricultural products. The U.S. Department of Agriculture reports that the value of U.S. agricultural exports fell between FY1996 (a record year) and FY1999 by almost $11 billion. USDA forecasts agricultural exports at $50.5 billion in FY2000 and $51.5 billion in FY2001. However, the projected agricultural trade surpluses for those years, of $11.5 billion and $12 billion, would be less than half the FY1996 surplus of $27.2 billion. Many agricultural groups and their supporters in Congress believe that the sector's future prosperity depends upon such U.S. trade policies as: 1) encouraging China's entry into the World Trade Organization (WTO), with its binding rules and responsibilities; 2) exempting agriculture from U.S. unilateral economic sanctions; 3) fully using export and food aid programs; and 4) aggressively battling foreign-imposed barriers to the movement of U.S. farm products. A few U.S. farm groups are wary of such approaches.

The 106th Congress considered a number of trade policy developments against a backdrop of weak foreign demand and large world supplies of agricultural commodities. The U.S. Department of Agriculture reports that the value of U.S. agricultural exports fell between FY1996 (a record year) and FY1999 by almost $11 billion, to $49.2 billion. Agricultural exports did climb back to $50.9 billion in FY2000, and are now projected at $53 billion in FY2001. However, the pace of recovery concerned many agricultural groups and their supporters in Congress. Although they recognize that many world economic, farm production, political, and weather factors influence exports, many of these groups believe that the agricultural sector's future prosperity also depends upon such U.S. trade policies as: 1) encouraging China's entry into the World Trade Organization (WTO), with its binding rules and responsibilities; 2) exempting agricultural exports from U.S. unilateral economic sanctions; 3) fully using export and food aid programs; and 4) aggressively battling foreign-imposed barriers to the movement of U.S. farm products. A few U.S. farm groups are wary of such approaches.

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The quality and quantity of public elementary and secondary school teachers are of increasing concern to the 106th Congress. Although states and localities are responsible for most aspects of teacher preparation, recruitment, and employment, the federal government supports a wide array of programs for teachers. Several of these programs are being considered for amendment and extension by the 106th Congress including the Eisenhower Professional Development program and the Class Size Reduction program. The 106th Congress has before it a wide array of legislative proposals to address teacher issues. Action has occurred on several proposals. This report tracks such action and will be updated as it occurs.

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In this report Congress addresses a number of community development issues, including reauthorization of the CDBG and revision of the CDBG program definitions of entitlement communities and low- and moderate-income households. Congress also will consider legislation appropriating funds for the program for FY2001, including funding for a number of new initiatives proposed by the Clinton Administration.

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This report briefly discusses the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR21 or FAIR21), which helps ensure that all aviation trust fund receipts (including interest) are spent for aviation purposes on an annual basis.

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Among the civil service retirement issues addressed in bills introduced thus far in the 106th Congress are the correction of retirement coverage errors for federal employees assigned to the wrong retirement system; immediate eligibility for federal employees to participate in the Thrift Savings Plan (TSP); improved portability of pension benefits; and repeal of the temporary increase in employee retirement contributions that was mandated by the Balanced Budget Act of 1997. Other bills would expand TSP eligibility to include members of the armed services; improve pension coverage for temporary and part-time federal employees; and designate several categories of federal employees as law enforcement officers for purposes of determining their retirement benefits.