Dear Readers:

Congress has finally gone home for the last time this year. The last few weeks were a time of "ups and downs," "backs and forths," and all night sessions with early morning votes. On the final day -- Thursday, December 22, the House with a nearly empty chamber refused to agree to the six-month extension of the Patriot Act which the Senate had passed the day before, and voted for a one month extension of the Act. Four hours later, Sen. John Warner (R-VA) was the lone member of the Senate to approve the House's action. And thus, it ended! The Senate will convene again on January 18, 2006, and the House comes back January 26, 2006. Of course, the Senate Judiciary Committee will begin the confirmation process for Judge Samuel Alito, nominated for the US Supreme Court, on January 9, 2006. But here's the summary of how the year ended with regard to legislative matters -- particularly the budget.

• BUDGET RECONCILIATION - On Wednesday, Dec. 21, the Senate approved the overall bill by a vote of 51-50 with Vice President Cheney casting the tie-breaking vote. Due to last minute provisions, the bill must go back to the House now for final approval. Because House Democrats insisted on a recorded vote on the last day in session, the bill must now await the new year for any further action. The House had approved the 774-page budget reconciliation bill on a vote of 212-206 in the very early hours on Monday, Dec. 19.
  
  The bill passed by the Senate on Wednesday settled on $39.7 billion in cuts to entitlements -- including $6.9 billion over five years to Medicaid. An additional $2.1 billion was added to the bill for hurricane relief and to support the Family Opportunity Act, SCHIP and Money Follows the Person demonstration project. Since the House will not vote now until January 2006 at the earliest, the extra time gives opponents of the bill another chance to lobby wavering GOP moderates. All Democrat House members voted against the bill along with nine Republican members while 16 members failed to vote.
  
  
• FISCAL YEAR 2006 DEPARTMENT OF DEFENSE APPROPRIATIONS - The Congress passed this appropriations bill after taking out the controversial Alaska National Wildlife Refuse (ANWR) provision. The Senate also stripped from the bill a provision which would have added $2 billion in energy assistance funding this winter for low-income households. The bill also contained a one percent across-the-board cut in all discretionary spending excluding programs that serve veterans. This reduction amounted to a total of $8 billion.
  
  
• FISCAL YEAR 2006 DEPARTMENTS OF LABOR - HEALTH AND HUMAN SERVICE - EDUCATION APPROPRIATIONS - The total FY 2006 funding is almost $170 million lower than the FY 2005 appropriation. This is the first time in decades that the Congress has provided less funding for these three departments than in the previous year. Very few, if any, disability programs will actually see an increase in FY 2006 -- particularly after the one percent cut.
  
  
• MENTAL HEALTH PARITY LAW - The Senate on Thursday, Dec. 22, by voice vote passed a bill (HR 4579) that would extend for one year a mental health parity law under which health insurers cannot place caps on annual or lifetime mental health benefits unless they place similar caps on medical and surgical benefits. This extends a 1996 law scheduled to expire on Dec. 31, 2005. The House had passed a similar bill on Dec. 17.

So when Congress returns in January, in addition to issues like immigration, stem cell research, tax cuts, and at least for the Senate a Supreme Court nominee, they will also be facing matters not finalized this year which include a very contentious budget reconciliation bill.

Look for a more detailed analysis of the final budget reconciliation legislation in an early January action alert. This will give you at least three weeks to contact your representatives before they convene again and vote on this legislation.

At AAPD, we wish everyone a very happy holiday season and what we hope will be a wonderful new year!