VOLUME No: 75 Issue No:3

Washington, D.C. - July 15, 2005

Senate Focuses on Stem Cell and Embryonic Research

Opponents of embryo cell research continue to diminish support for legislation that would loosen the President's restrictions on stem cell research. Conservative activists are encouraging researchers to obtain cells not from human embryos, but from alternative, if unproven, sources. One of the alternatives suggested are embryos that have been engineered to lack a gene crucial to develop into a baby.

This week the Senate Appropriations Subcommittee on Labor, Health and Human Services and Education grappled with the question of whether human embryos intentionally endowed with fatal genetic flaws would still be too human to justify their mass production for experiments.

Supporters argue that the stem cells would be derived from an “entity” that could never become a viable embryo. The approach aims at eliminating some of the more ethical, philosophical, and religious concerns that stem from embryonic research, which derive the valuable stem cells from human embryos that are destroyed in the process.

Others support the pending Senate bill, which passed the House with bipartisan support in May. This bill would allow federal funding of research on cells from excess embryos at fertility clinics that are already scheduled to be destroyed.

Under the current Bush policy, federal funds may only be used to study those stem cells derived by August 9, 2001. It is likely that a measure loosen this policy will pass the Senate and force the President to decide whether to invoke a promised veto.

As many as six additional bills on related issues are expected to be considered by the Senate, including one promoting umbilical cord stem cell use (S 1317), one banning human cloning (S 658) and another (S 659) banning chimeras — organisms that result from introducing non-human cells into human embryos. Other proposals include legislation encouraging more research on adult stem cells; funding animal studies of alternative sources of stem cells; and banning human cloning.

Projected Budget Deficit Decrease

The White House Office of Management and Budget’s mid-session projection for the Fiscal Year (FY) 2005 federal budget deficit is $333 billion (2.7 percent of the dross domestic product). This amount is down from February’s $427 billion prediction.

OMB’s numbers track closely with the Congressional Budget Office’s predictions, which forecast a FY 2005 deficit of less than $350 billion and possibly less than $325 billion.

The FY 2004 deficit totaled $412 billion.

Much of the improvement can be attributed to higher-than-anticipated tax revenue from corporations and individuals, though the Administration credits the economic stimulation provided by the President’s tax cuts. Some analysts say the increased revenue from individual and corporate income taxes may be a one-time increase due to the expiring one-year corporate tax break and a strong stock market in 2004 that produced big capital gains. Democrats argue that the calculation has not included the full cost of military operations in Iraq and Afghanistan and expenditures to fix the alternative minimum tax.

OMB’s projection shows that the deficit will continue to decline over the next few years which is good news to the President, who set the goal of “halving” the deficit by 2009.

However, a FY 2005 deficit of $333 billion would still be the third highest on record and Social Security trust funds remain in surplus for now, which is included in the deficit calculations. That surplus will be exhausted.

Work Continues on the Reauthorization of the Patriot Act

This week the House Judiciary Committee, chaired by James Sensenbrenner (R-WI), rejected the White House’s request to make permanent the 16 expiring provisions of the USA PATRIOT Act. The committee, in turn, approved two 10-year sunsets on the most contentious provisions of the law—federal power to seek “roving” wiretaps and the FBI’s ability to demand a broad array of business records with the consent of a judge.

The Administration wants all of the expiring provisions to be made permanent without substantive changes, in addition to granting some new powers to the government. Democrats have introduced more than 40 amendments aimed at preserving civil liberties and have tried to make shorter sunsets, calling for the provisions to expire in 2009 or 2011.

In addition to the sunsets, the Committee approved an amendment making it a federal crime to surveil, photograph, videotape, diagram or otherwise collect information with intent to plan or assist a terrorist attack against mass transit. Other amendments add to the list of crimes for which wiretaps would be authorized and require intelligence investigators to notify a judge every time they seek to tap a new communications device within 10 days of a new wiretap being approved.

The bill, HR 3199, is expected to go to the House floor next week.

In the Senate, Arlen Specter (R-PA) and Dianne Feinstein (D-CA) have introduced legislation that would permanently reauthorize 14 of the 16 expiring provisions law, but only temporarily extend the roving wiretap and business records sections through 2009.

The legislation also would make changes to the law—

• Making it easier for federal law enforcement to execute a search warrant secretly and indefinitely delay notifying the target ( the sneak and peak provision).
• Eliminating “unduly delaying a trial” as a reason for law enforcement to delay notification, require judges to set a “date certain” for notice to the subject of the search, and limit any extensions to 90 days.
• Requiring the FBI director or the deputy director to approve obtaining library or bookseller records.