OVERNIGHT MONEY: Immigration reform gets underway

Speaker John BoehnerJohn BoehnerFormer House leader Bob Michel, a person and politician for the ages Former House GOP leader Bob Michel dies at 93 Keystone pipeline builder signs lobbyist MORE (R-Ohio) predicted Tuesday that immigration reform would become law by year’s end.

So there is momentum amid some major hurdles. 

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The Senate scaled the first one on Tuesday, voting 84-15 to send the comprehensive overhaul bill to the floor.

The measure overall would create a pathway to citizenship for immigrants in the country illegally, toughen border security, create a guest-worker program and boost high-skilled immigration to fill jobs. 

Despite the strong support on the procedural vote, Republicans including Senate Minority Leader Mitch McConnellMitch McConnellPoll: Senate should confirm Gorsuch Cardboard cutouts take place of absent lawmakers at town halls GOP groups ramp up pressure on lawmakers over ObamaCare MORE (Ky.) and Republican Sen. John CornynJohn CornynRyan on border: ‘We will get this done’ Ryan tours Mexican border on horseback IPAB’s Medicare cuts will threaten seniors’ access to care MORE (Texas) have said there will have to be some big changes, including stronger border security language, before they will vote for a final product. 

"I’ll vote to debate it and for the opportunity to amend it, but in the days ahead there will need to be major changes to this bill if it’s going to become law," McConnell said. 

A similar train of thought emerged from the House. 

“I've got real concerns about the Senate bill, especially in the area of border security and internal enforcement of the system. I'm concerned that it doesn't go far enough,” BoehnerJohn BoehnerFormer House leader Bob Michel, a person and politician for the ages Former House GOP leader Bob Michel dies at 93 Keystone pipeline builder signs lobbyist MORE told ABC News.

Both chambers will have their hands full trying to iron out the multitude of expected wrinkles before getting to a point where a majority will be prepared to send the bill to Obama's desk. 

Cornyn will offer an amendment that puts strict requirements on border security before allowing the millions of those already in the country illegally to get on a path to citizenship. 

“The bottom line is that if border and national security cannot be guaranteed in this bill, I cannot and will not support it.”

McConnell argued that the provision would “put us in a position where we can look the American people in the face and say we are going to secure the border”.

Reid, on the other hand, said it could kill the bill. 

The bipartisan Gang of Eight has put together an 867-page bill that gives each party something to tout, and plenty to grumble about. 

Sen. Marco RubioMarco RubioA guide to the committees: Senate Schumer: GOP will break from Trump within months GOP loses top Senate contenders MORE (R-Fla.), a key member of the group working on the legislation, plans to offer an amendment that would require undocumented immigrants to learn English before earning a green card.

Sen. Roy BluntRoy BluntA guide to the committees: Senate Judiciary Committee wants briefing, documents on Flynn resignation Intel Dem: House GOP now open to investigating Flynn MORE (R-Mo.) said while he supports debate on the bill, it "does not change the fact that I still have very serious concerns about the underlying Senate bill."

“I believe there are ways to improve the base bill, with an eye toward meeting three important goals: first securing our borders, then fulfilling our legitimate workforce needs and determining how we deal with people who come to the country illegally or overstay," he said. 

"I plan to co-sponsor several amendments during this debate that would help meet these goals. However, I will not vote for final passage of any immigration legislation that fails to meet these critical objectives.”

Let the debate begin. 


WHAT ELSE WE'RE WATCHING

Viva Brazil: A House Ways and Means Trade subcommittee on Wednesday will talk with experts about how to improve and expand the U.S.-Brazil trade and investment relationship.

Housing fix: The House Financial Services Committee on Wednesday will continue searching for a path forward on reworking the architecture of the housing market. They will discuss what to do about mortgage giants Fannie Mae and Freddie Mac with a host of experts. Lawmakers and the Obama administration have talked about ways to wind down the government-controlled firms but plans are still in the works and legislation to overhaul the housing market has yet to emerge.  

Economic outlook: The Business Roundtable on Wednesday will announce the results of its second-quarter CEO economic survey, which will provide a glimpse into what the nation's top executives expect over the next six months. Economists are expecting the economy to improve, barring any other unforeseen issues slowing the recovery. 

Focusing on Defense: The Senate and House Budget committees on Wednesday will examine the budget request from the Pentagon and discuss the effects of sequestration and sexual assaults in the military with Defense Secretary Chuck HagelChuck HagelWho will temper Trump after he takes office? Hagel: I’m ‘encouraged’ by Trump’s Russia outreach Want to 'drain the swamp'? Implement regular order MORE and Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff. The base budget is $526 billion, $52 billion above the budget caps under sequestration in 2014.

On Wednesday, the House Appropriations Committee will mark up its defense appropriations bill for fiscal 2014, which would provide $512.5 billion in non-war funding, a decrease of $5.1 billion below the fiscal 2013 enacted level and $3.4 billion below the president’s request. This is approximately $28.1 billion above the current level caused by automatic sequestration spending cuts.

On a similar tack, the Senate Armed Services Committee will start what is expected to be, at least, a two-day closed markup of the defense authorization bill. The White House threatened Tuesday to veto House’s version of the authorization measure that is on the floor this week.

Cybersecurity: Senate appropriators will spend Wednesday discussing the government’s needs on the threat of cybersecurity with top military and government officials.

Tourism jobs: A House Small Business subcommittee will address the seasonal employment needs of small tourism businesses and H-2B visa policies with state and national tourism officials. 

Raising capital: A House Financial Services subcommittee will chat with experts on how to reduce barriers to capital formation for small businesses. 

Next up for OMB: The Senate Homeland Security and Governmental Affairs Committee will sit down with Howard Shelanski, who has been nominated by President Obama to be administrator of the Office of Management and Budget's Office of Information and Regulatory Affairs.

Spending policies: The House Oversight and Government Reform Committee will tackle problems with government agencies effectively employing suspension and debarment policies that avoid the waste of taxpayer funds. The General Accounting Office, which will testify at the hearing, has found in years past that various federal agencies have awarded money to contractors that have criminal convictions and federal tax liabilities, among other issues. 

Fiscal matters: Several policy groups will hold a summit on tax, budget and healthcare policies featuring some top congressional lawmakers, including House Ways and Means Committee Chairman Dave Camp (R-Mich.), House Budget Committee Chairman Paul RyanPaul RyanRyan on border: ‘We will get this done’ Ryan tours Mexican border on horseback Trump: Healthcare plan coming in March MORE (R-Wis.), Joint Economic Committee Chairman Kevin BradyKevin BradyThe House GOP tax plan needs some tweaking A guide to the committees: House House Democrats hit GOP over town hall protests in Twitter ad campaign MORE (R-Texas), Sen. Tim KaineTim KaineA guide to the committees: Senate Mattis on rise in Trump administration Senate advances Trump's Commerce pick MORE (D-Va.) and Speaker John Boehner (R-Ohio).


LOOSE CHANGE

Making an investment: Sens. Roy Blunt (R-Mo.) and Jay RockefellerJay RockefellerObama to preserve torture report in presidential papers Lobbying world Overnight Tech: Senators place holds on FCC commissioner MORE (D-W.Va.) introduced a bipartisan bill on Tuesday to make permanent the New Markets Tax Credit program. The program provides private investors with a 39 percent federal tax credit for investments made in businesses or economic development projects in some of the most distressed communities in the nation. The bipartisan bill is co-sponsored by Sens. Ben CardinBen CardinWarren wants briefing on probe into Trump ally A guide to the committees: Senate House bill would prevent Trump from lifting Russian sanctions MORE (D-Md.), Susan CollinsSusan CollinsGOP senator: Flynn should testify on Russia Greens launch ads against two GOP senators for Pruitt votes GOP healthcare plans push health savings account expansion MORE (R-Maine) and Maria CantwellMaria CantwellA guide to the committees: Senate Trump signs bill undoing Obama coal mining rule Nine Dem senators say hiring freeze hurting trade enforcement MORE (D-Wash.).

"The New Markets Tax Credit Program has already had a positive impact in Missouri, leading to more than $2 billion in investments and thousands of jobs,” Blunt said. “I’m glad to support this bipartisan bill to make this tax credit permanent so that we can continue to encourage investment, growth, and job creation in low-income communities nationwide.”

Congress first authorized the program as part of the Community Renewal Tax Relief Act of 2000. The fiscal-cliff deal included a two-year extension of the tax credit program with $3.5 billion in annual credit authority provided for 2012 and 2013.


ECONOMIC INDICATORS 

MBA Mortgage Index: The Mortgage Bankers Association releases its weekly report on mortgage application volume. 

Treasury Budget: The Treasury Department releases its May budget data, which is used mostly by the market for year-over-year changes in receipts and outlays. 


WHAT YOU MIGHT HAVE MISSED

— Chairman Issa: Release of full IRS transcripts would be ‘reckless’

— Senate Finance approves Froman to head trade office

— Consumer watchdog eyes overdraft fees

— Optimism edges up for small businesses

— White House opposes rule reining in Dodd-Frank

— CBO: Debt-limit boost can wait until possibly November

— Democratic freshmen oppose fast-track trade powers for Obama

— Options exchange settles SEC allegations


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