# Chuck Grassley



IA-01, IA-02: Debt ceiling hike to be campaign issue

Last week, the U.S. House passed a resolution to disapprove President Barack Obama’s latest request to raise the debt limit. The mostly party-line vote was also mostly symbolic and consequently received little media attention. However, Republican challengers in Iowa’s first and second Congressional districts are likely to highlight this vote in their campaigns against Representatives Bruce Braley and Dave Loebsack.

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Where the Iowans in Congress stand on SOPA and PIPA

Wikipedia, Reddit and many other websites are dark today to protest the Stop Online Piracy Act (SOPA) and the Protect Intellectual Property Act (PIPA), now pending in the U.S. House and Senate. Momentum appears to have shifted against this legislation in its current form, but a modified bill might still pose a threat to freedom of information. I sought comment on this legislation from all members of Iowa’s Congressional delegation.

UPDATE: Added Representative Bruce Braley’s statement opposing SOPA below, along with a comment from Representative Steve King’s office.

LATER UPDATE: A statement from Representative Leonard Boswell is now below as well.

THURSDAY UPDATE: Added a YouTube video about SOPA, released by Braley’s re-election campaign.

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Iowa political reaction to jobs report, recess appointments (updated)

The Bureau of Labor Statistics released new employment figures yesterday, showing nonfarm payroll employment up by 200,000 in December 2011, and the unemployment rate down slightly to 8.5 percent. Several members of Congress from Iowa cited the news a Their statements are after the jump.

I’ve also enclosed reaction from U.S. Senators Chuck Grassley and Tom Harkin to President Barack Obama’s recess appointments of Richard Cordray to head the Consumer Financial Protection Bureau and three members of the National Labor Relations Board. While Harkin welcomed Cordray’s appointment, Grassley slammed the president for “upending years of Senate practice and legal precedent.” Grassley was among Senate Republicans who filibustered Cordray’s confirmation last month.

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Iowa caucus news roundup, with final Des Moines Register poll

Is Rick Santorum rising fast enough to finish in the top two on Tuesday? The Des Moines Register’s final Iowa poll before the caucuses is one of many to show Santorum gaining strength. Representative Steve King and Senator Chuck Grassley made positive comments about Santorum’s campaign over the weekend. Although Rick Perry is criticizing Santorum’s record in Congress, there’s not enough time left to make an effective case against the latest “not Romney” through paid media.

The new Iowa polling numbers are after the jump, along with news from the stump and some candidates’ closing Iowa television and radio ads.

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How the Iowans voted on year-end spending bills

Catching up on news from the weekend, the U.S. House and Senate averted a federal government shutdown by passing an omnibus spending bill for fiscal year 2012, which runs through September 30 of next year. The government had been operating on a continuing spending resolution, which was due to expire on December 17. Details on the last-minute appropriations deal and how the Iowans voted are after the jump, along with comments from some members of the Congressional delegation.

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Iowa reaction to the official end of the Iraq war

The U.S. officially ended the war in Iraq today “with an understated ceremony in Baghdad” to lower the American flag of command. In a sense, Representative Ron Paul is correct to say that we’re “pretending” to bring all our troops home while putting 17,000 military contractors in Iraq. If the war is well and truly over, I wonder why two-thirds of U.S. senators recently voted against repealing the Authorization for the Use of Military Force Against Iraq Resolution of 2002. Senator Tom Harkin supported that effort to repeal the war authorization, while Senator Chuck Grassley opposed it. The proposed amendment to the 2012 defense authorization bill “would have forced the president to return to Congress and seek additional authority to send more troops” to Iraq.

In any event, today is a milestone in the war that began in March 2003. After the jump I’ve posted reaction from some members of Iowa’s Congressional delegation. I will update this post as more comments appear.

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Payroll tax extension news roundup

A year ago, former President George W. Bush’s income tax cuts for all brackets were due to expire on December 31. Republicans had President Barack Obama and Congressional Democrats on the defensive, not wanting to be seen as raising taxes in a tough economy. Now the tables are turned as a payroll tax cut benefiting all wage earners will expire at the end of the year unless Congress acts otherwise. Democrats in Washington and around the country see this issue as a political winner.

Last week the U.S. Senate defeated two more proposals for extending the payroll tax cut. Meanwhile, the Democratic Congressional Campaign Committee and the Iowa Democratic Party used the controversy to create bad publicity for Representative Tom Latham (IA-04) and Representative Steve King (IA-05).

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GOP caucus campaign and debate discussion thread

Seven Six Republican presidential candidates debate tonight in Des Moines, the first time the group has debated since Herman Cain left the race and former House Speaker Newt Gingrich became the front-runner. I plan to live-blog tonight’s debate here, but I wanted to post this thread early to give Bleeding Heartland readers a chance to talk about the race. Links and recent news from the campaign are after the jump.

UPDATE: Scroll down for the live-blog.

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Braley, Boswell, Loebsack vote with House Republicans on farm dust bill

Some bills are designed to solve real problems, some bills are designed to create the appearance of solving real problems, and some bills are designed to solve non-existent problems. The U.S. House passed that third kind of bill yesterday, seeking to block rules the Environmental Protection Agency has not even proposed.

Bruce Braley (IA-01), Dave Loebsack (IA-02), and Leonard Boswell (IA-03) were among the 33 Democrats who voted with Republicans to pass the H.R. 1633, the Farm Dust Regulation Prevention Act of 2011. The Iowa Democrats weren’t all equally supportive during the floor debate, however.

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PATRIOT Act 10th anniversary discussion thread

Ten years ago today, President George W. Bush signed a bill called the “United and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism,” better known as the PATRIOT Act. It’s a good time to reflect on the law’s impact as well as how the Iowans in Congress voted on its provisions over the last decade.

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Iowa reaction to the death of former Libyan dictator Gadhafi

Libyan forces captured and killed Colonel Moammar Gadhafi today in the former dictator’s hometown of Sirte. Representative Bruce Braley (D, IA-01) welcomed news of the “victory for freedom-loving people” but added that “With Gadhafi out of the picture, it’s time for US involvement in Libya to end.” Braley has been an outspoken critic of the Obama administration’s open-ended intervention in Libya. He has voted against authorizing military action there and repeatedly demanded a cost accounting of our mission.

Representative Dave Loebsack (D, IA-02) reacted to today’s news with a statement calling on “international organizations to step forward and help the Libyan people” so that the U.S. can “focus on creating jobs here at home.” Loebsack sits on the House Armed Services Committee but has generally avoided commenting on the U.S. mission in Libya. In June, he voted against authorizing the intervention but also against defunding it.

The full statements from Braley and Loebsack are after the jump. I will update this post if other members of Iowa’s Congressional delegation comment on today’s events. UPDATE: Added reaction from Leonard Boswell (D, IA-03) and Steve King (R, IA-05). King and Boswell supported authorizing the Libya intervention. King was one of only five House members to vote against barring federal funding for U.S. ground troops in Libya.

SECOND UPDATE: Comments from Tom Latham (R, IA-04) and Senator Chuck Grassley are below.

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The beginning of the end for the Senate filibuster?

Senator Tom Harkin has tried repeatedly to change Senate procedures that obstruct simple majority rule. In January of this year, Senate Democrats failed to coalesce around his reasonable filibuster reform proposals, opting instead for what Harkin called “baby steps” that “don’t get to the heart of the matter.”

Tonight, while the chamber debated a low-profile bill, Senate Majority Leader Harry Reid used a simple majority vote to change Senate rules. He was targeting a procedure that amounted to a repeat filibuster rather than the filibuster itself, but he may have set the stage for major rule changes in the future.

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Latham votes yes, but House rejects government funding resolution

Less than 10 days before the current fiscal year ends, Congress has not approved any appropriations bills for fiscal year 2012. Yet again, continuing funding resolutions are needed to prevent the federal government from shutting down after September 30. Yesterday Representative Tom Latham was the only Iowan to vote yes as the U.S. House failed to approve a continuing resolution backed by Republican leaders.

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Weekend open thread and news from Iowa's Congressional delegation

All five Iowans in the U.S. House are co-sponsoring a bill that would require the U.S. Army Corps of Engineers “to revise the Missouri River Master Manual to increase the total amount of storage space within the Missouri River Reservoir System that is allocated for flood control.” After the jump I’ve posted more details on that bill and other news about the Iowans in Congress.

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Grassley yes, Harkin no on motion to block debt ceiling hike

Both of Iowa’s senators voted against the deal to raise the debt ceiling in early August, but only one of them voted last night to block a $500 billion debt ceiling increase, which was part of that agreement.

Earlier on September 8, Senators Tom Harkin and Chuck Grassley helped send a patent reform bill to President Barack Obama. The president and Senate Majority Leader Harry Reid have characterized patent reform as a job creation measure. Follow me after the jump for more on yesterday’s Senate votes.

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Obama jobs speech thread, with Iowa political reaction

President Barack Obama just made his case for “an American Jobs Act” in a speech to both chambers of Congress. In the usual Obama style, he offered Republicans a lot of compromises, like corporate tax cuts and a tax credit for employers. He argued for a payroll tax cut as well and called on Democrats to support “modest adjustments” to Medicare and Medicaid as well. On the spending side, Obama is seeking more funding for infrastructure, such as repairing roads and bridges and fixing “at least 35,000 schools.”

The full transcript of the president’s speech (as prepared) is after the jump. I’ve also posted some Iowa reaction, and I’ll keep this post updated as other members of Congress weigh in.  

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File destruction scandal highlights Obama's failure to regulate Wall Street

Senator Chuck Grassley made news last week by publicizing a whistleblower’s claims about widespread file destruction at the Securities and Exchange Commission. Thousands of preliminary investigation files no longer exist, which hampers the SEC’s ability to identify and prosecute financial crimes. The alleged practice goes back nearly two decades, despite a federal law that grants the National Archives and Records Administration authority over preserving government files.

President Barack Obama didn’t create this problem, but his cozy relationship with Wall Street helped keep law-breaking alive at the SEC.

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Ames straw poll news and discussion thread

The Republican Party of Iowa gets its first bite at the apple today, raking in money at the Ames straw poll event. Six presidential candidates who paid for space at the venue will speak to the crowd, along with five GOP elected officials and state party chairman Matt Strawn. I’ve posted the speaking schedule below and will update this post throughout the day.

Nine candidates will appear on the straw poll ballot: the eight who debated Thursday night plus Representative Thad McCotter of Michigan. Voting closes at 4 pm, but it may take Iowa Secretary of State Matt Schultz a long time to tabulate results because of the large number of expected write-ins. Speaking of Schultz, I noticed on the Secretary of State’s website yesterday that he has put out only one press release since his embarrassing smackdown of former Utah Governor Jon Huntsman two months ago. The Iowa Ethics and Campaign Disclosure Board dismissed an ethics complaint that the Iowa Democratic Party filed regarding that press release.

Any comments about the spectacle are welcome in this thread, especially first-person accounts from Bleeding Heartland users who are in Ames today.

Which candidates, if any, will receive fewer votes than write-ins Sarah Palin, Texas Governor Rick Perry or “Rick Parry,” the name Stephen Colbert’s Super PAC is pushing? I expect McCotter will have a tough day. Don’t know who is supporting him besides former Iowa House Speaker Chris Rants, and he doesn’t have a huge following in the Iowa GOP anymore, to put it mildly. When McCotter bid for space at the straw poll, he probably wasn’t expecting to be left out of the Fox News debate. That plus the lack of time and money he’s spent in Iowa puts him at a big disadvantage.

If former Minnesota Governor Tim Pawlenty does better than expected in the straw poll, he will owe thanks to a couple of outside groups. The American Petroleum Institute’s Iowa Energy Forum and Strong America Now both have organizational ties to the Pawlenty campaign. Jennifer Jacobs of the Des Moines Register discussed those connections and the outside groups’ work in greater detail here. Four years ago, Mike Huckabee’s Ames straw poll effort got a huge assist from Americans for Fair Taxation, helping Huckabee finish a close second to Mitt Romney.

UPDATE: News from the day is after the jump.

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Senate approves debt ceiling deal; Harkin and Grassley vote no

The U.S. Senate approved the last-minute deal to raise the debt ceiling today by a vote of 74 to 26 (roll call). Iowa’s senators voted no for very different reasons. Democrat Tom Harkin reject the deal he called “a clear and present danger to the fragile, indeed faltering, economic recovery.” Republican Chuck Grassley said the plan “delays meaningful spending reductions, fails to address entitlement spending in a way that will save the programs for future generations of retirees, and leaves open the possibility of tax increases.” The complete statements from by Harkin and Grassley are after the jump.

Yesterday all five Iowans in the U.S. House voted against the debt deal as well. To my knowledge, no other state’s entire Congressional delegation rejected this national embarrassment.

After hailing passage of an austerity plan that will deeply cut domestic spending, President Barack Obama said today, “We’ve got to do everything in our power to grow this economy and put America back to work.” He missed that chance.

LATE UPDATE: Richard Kogan posted a helpful summary on “How the Potential Across-the-Board Cuts in the Debt Limit Deal Would Occur.”

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All Iowans vote no, but House passes Boehner debt plan (updated)

The U.S. House on Friday evening approved Speaker John Boehner’s latest bill to sharply cut federal spending as a condition for raising the debt ceiling. The bill barely passed by a 218 to 210 vote (roll call). Every House Democrat present voted no, including Bruce Braley (IA-01), Dave Loebsack (IA-02), and Leonard Boswell (IA-03). The big surprise for me was that both Tom Latham (IA-04) and Steve King (IA-05) were among the 22 Republicans who voted against the bill. I expected King to oppose the measure, because many of his Tea Party Caucus colleagues believe Boehner isn’t cutting enough spending. But Latham is one of the speaker’s closest friends, and I thought he would be one of the votes putting the bill over the top. It was a tremendous struggle for Boehner to line up enough support for this bill; he had to delay Thursday’s scheduled vote in order to rewrite some provisions today.

Sometimes in situations like these, the House speaker gives some members in the majority caucus permission to vote no, if they are in tough districts. Latham will face Boswell in the new third Congressional district next year, and some of the spending cuts in this bill would affect popular programs. It’s possible Latham voted no with Boehner’s consent, once the speaker knew he had 218 yes votes lined up. That insulates Latham against some potential attack ads. However, Latham was on WHO radio this afternoon saying something must be done to ensure that the government pays its bills. If he acknowledges the need to raise the debt ceiling, when does he think a better deal will come around than Boehner’s bill?

Incidentally, House leaders don’t seem inclined to move on Latham’s bill to prioritize certain types of spending in case no debt ceiling deal is reached.

The U.S. Senate is expected to table the latest House bill on the debt ceiling later Friday evening. Senate Majority Leader Harry Reid has been working on a new “compromise” that is depressingly similar to what Boehner proposed, so Congress is probably headed toward a total Republican victory–big spending cuts, no revenue increases. Notably, if the U.S. ever does pull out of Iraq and Afghanistan, all the savings would go toward deficit reduction, rather than investing in our own infrastructure or social programs. Never mind that the U.S. economy is sputtering and will probably go back into recession under fiscal austerity. That serves Republican political interests as well, because President Barack Obama will be blamed for the downward spiral. Obama’s approval rating on the economy is already low, and most Americans think job creation is more important than deficit reduction right now.

For some reason, Obama prefers this outcome to Senator Tom Harkin’s advice: raise the debt ceiling by invoking the 14th Amendment to the U.S. Constitution.

UPDATE: On Friday night six Senate Republicans voted with all 53 members of the Democratic caucus to table the motion on concurring with Boehner’s bill (roll call). Grassley was among the 41 Republicans who opposed the motion to table.

Statements released by Latham, King, Loebsack and Braley are now after the jump.

SATURDAY UPDATE: The House rejected Senate Majority Leader Harry Reid’s bill on July 30; it was a symbolic vote because Reid is still revising the proposal, which so far doesn’t have enough support to overcome a Republican filibuster in the Senate.

Most House Democrats voted for the Reid bill, including Boswell. However, Braley and Loebsack were among the 11 Democrats who voted with all Republicans present against that bill (roll call). I am seeking comment from Braley and Loebsack offices on why they voted against the Reid proposal. It’s worth noting that like Boehner’s bill, Reid’s plan would cut more than $2 trillion in spending over the next decade, with no revenue increases. A total disgrace.

UPDATE: Loebsack released this statement about Saturday’s vote: “We must get Iowa’s economy moving forward.  Today’s vote was not about a solution, it was about political leverage in Washington.”

FURTHER UPDATE: Here’s Harkin speaking on July 30:

“I’m talking about that there’s precedents for presidents to do things where the Constitution doesn’t give the president explicit authority but it doesn’t prohibit the president from doing it, and I believe there’s a basis in the 14th amendment as decided in Perry v. United States,” Sen Tom Harkin (D-IA) said on the Senate floor. “I think the president – barring action from the Congress – not only has the authority to do so, he has the responsibility to not let this country default.”

SUNDAY UPDATE: Senate Majority Leader Reid called a cloture motion on his horrendous compromise proposal Sunday afternoon. It needed 60 votes to pass but only received 50, mostly from Democrats (roll call). I don’t understand Harkin voting for cloture here, when the bill has none of the balance he has advocated. Maybe he planned to vote against the bill itself later–who knows? Grassley voted against cloture, as did every Republican present besides Scott Brown. I’ve added Grassley’s statement below.

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Senate tables "Cut, Cap, and Balance" on party-line vote

The U.S. Senate voted down the Cut, Cap, and Balance Act of 2011 today, three days after the House approved that Republican budget-cutting plan. All members of the Democratic caucus present, including Iowa’s Tom Harkin, voted for a motion to table the motion to proceed with considering the bill (roll call). All Senate Republicans present, including Iowa’s Chuck Grassley, voted against the motion to table. Tabling the bill in effect kills it for this session of Congress.

After the jump I’ve posted the floor statement Grassley submitted yesterday in support of the Cut, Cap, and Balance Act. He argued that raising taxes would neither increase federal government revenues nor reduce the federal deficit. He described Cut, Cap, and Balance as “the only plan that has been put forth to address our deficit and debt problem” and claimed it would “impose budget caps to get our spending down to a manageable level compared to our gross domestic product.” This piece by Michael Linden and Michael Ettlinger points out that the “last time federal spending dipped below 18 percent of GDP was 1966.” Click through for a chart showing how severe spending cuts would have to be to bring fiscal year 2016 spending down to 18 percent of GDP. Robert Greenstein of the Center on Budget and Policy Priorities described this bill as “one of the most ideologically extreme pieces of major budget legislation to come before Congress in years, if not decades.”

I’ve also posted below Harkin’s floor statement opposing Cut, Cap, and Balance. He reminded colleagues that President Ronald Reagan warned Congress against refusing to raise the debt ceiling, and that Reagan supported “corrective income tax increases in 1982 and 1984” when he realized that “his 1981 tax cuts were resulting in large deficits.” Harkin also claimed the Republican bill would defund Medicare by putting “the federal government in a fiscal straightjacket, allowed to spend no more than in the mid-1960s, before Medicare.”

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King, Grassley speak out for Defense of Marriage Act

Senator Chuck Grassley and Representative Steve King (IA-05) spoke out this week for preserving the 1996 federal Defense of Marriage Act, which states that the federal government recognizes only marriages between one man and one woman. The Senate Judiciary Committee held a July 20 hearing on S. 598, the Respect for Marriage Act. That bill would repeal part of the DOMA so that for purposes of federal law, “an individual shall be considered married if that individual’s marriage is valid in the state where the marriage was entered into.” Six states and the District of Columbia recognize same-sex marriages.

Grassley is the ranking Republican on the Judiciary Committee, and his opening statement in yesterday’s hearing asserted that “George Orwell would have marveled” at calling S. 598 the “Respect for Marriage Act.” In Grassley’s view, the bill would undermine the institution of marriage. He denied that Congress passed DOMA in 1996 “to express disapproval of gay and lesbian people.” He asserted that supporters of DOMA now face threats and intimidation that amount to an “unacceptable” “chilling of First Amendment rights.”

Grassley invited King to testify before the committee, and in his statement, King asserted that recognizing same-sex marriages would devalue the institution of marriage. Saying “you can’t choose who you love” could be used to justify incestuous or polygamous unions, King told the senators. He also argued that the DOMA is consistent with the will of the American people, who have voted in 31 states to restrict legal marriage to one man and one woman. (More recent opinion polling has shown growing support for same-sex marriage rights.)

After the jump I’ve posted the full texts of Grassley’s opening remarks and King’s testimony. Both Iowa Republicans described the government’s interest in protecting marriage as an institution that promotes procreation. King cited a 1942 U.S. Supreme Court ruling that said, “Marriage and procreation are fundamental to the very existence and survival of the race.” During the past decade, several state Supreme Courts have rejected that argument as a reason to deny same-sex couples the benefits of marriage.

Multiple plaintiffs have challenged the constitutionality of the federal DOMA. Click here for a brief summary of six lawsuits working their way through federal courts. In July 2010, a U.S. District Court judge hearing two of those cases in Massachusetts struck down section 3 of the DOMA. In February of this year, President Barack Obama instructed the U.S. Department of Justice not to defend “the constitutionality of Section 3 of DOMA as applied to same-sex married couples” as applied in those two court cases. This week, White House spokesman Jay Carney affirmed that the president supports repealing DOMA. King claimed in his testimony that President Obama said DOMA is unconstitutional “despite no court ever reaching that conclusion.” He may be unaware of U.S. District Court Judge Joseph Tauro’s ruling from last summer.

While I support repealing DOMA, I view the current debate over S. 598 as a somewhat cynical public relations exercise. Everyone knows that the Republican-controlled U.S. House would never approve a DOMA repeal bill. Had Democrats tried to move this legislation when they held majorities in both houses of Congress, I would give them more credit. It’s notable that Obama publicly voiced his opinion about DOMA only after its repeal was a dead letter in the House.

Any comments about marriage equality are welcome in this thread.

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Harkin, Grassley vote yes as Senate confirms first openly gay federal judge

The U.S. Senate confirmed J. Paul Oetken as a District Court just for the Southern District of New York today, making Oetken the first openly gay person confirmed for a federal judgeship. The Senate vote was 80 to 13 (roll call), with Republicans casting all of the no votes. Iowa Democrat Tom Harkin and Republican Chuck Grassley both voted yes on Oetken’s nomination. Throughout his career, Grassley has usually voted to confirm judges nominated by presidents from either party. However, Grassley voted against confirming both of President Barack Obama’s nominees to the U.S. Supreme Court, Sonia Sotomayor and Elena Kagan. More recently, Grassley helped filibuster Goodwin Liu’s nomination for the 9th Circuit U.S. Court of Appeals.

Oetken was valedictorian at Regis High School in Cedar Rapids before graduating from the University of Iowa in 1988 and from Yale Law School in 1991. Here is more background on his career in law and business:

Oetken is currently the senior vice president and associate general counsel of Cablevision, a cable television company primarily serving customers on the eastern seaboard. He has a long history of federal service, previously serving as a clerk to Supreme Court Justice Harry A. Blackmun and attorney-advisor in the United States Department of Justice Office of Legal Counsel. Oetken was recommended to replace Judge Denny Chin on the United States District Court for the Southern District of New York by New York Senator Charles E. Schumer. […]

Schumer called Oetken a “strong advocate for the LGBT community” in his statement, citing Oetken’s support of the ACLU Lesbian Gay Bisexual & Transgender Project as well as the amicus brief he co-authored in the Supreme Court case Lawrence v. Texas, which struck down the sodomy law in Texas.

“The Texas Homosexual Conduct Law violates principles that are basic to the Equal Protection Clause of the Fourteenth Amendment,” stated the introduction to the amicus brief, which Oetken wrote with Chai R. Feldblum, a commissioner of the Equal Employment Opportunity Commission. “[A]nimosity toward a group of people is not a legitimate purpose for governmental discrimination against such a group.”

Speaking on the Senate floor today, Schumer said Oetken

will give hope to many talented young lawyers who, until now, thought their paths might be limited because of their sexual orientation. When Paul becomes Judge Oetken, he will be living proof to all those young lawyers that it really does get better.

Schumer also hailed Oetken’s “moderation,” which (along with his work for a major media company) may explain why Oetken won support from so many Senate Republicans.

Perhaps some Bleeding Heartland readers remember Oetken from his time in Cedar Rapids or Iowa City. Regis alums must be proud.

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Senate votes to repeal ethanol tax credit; Grassley and Harkin vote no

Two days after rejecting a similar measure, the Senate voted today to repeal a key ethanol tax credit as of July 1:

[Democratic Senator Dianne] Feinstein’s amendment to an economic development bill would quickly end the credit of 45 cents for each gallon of ethanol that fuel blenders mix into gasoline. The credit led to $5.4 billion inforegone revenue last year, according to the Government Accountability Office.

The amendment also ends the 54-cent per gallon import tariff that protects the domestic ethanol industry.

Thursday’s vote was a turnaround from Tuesday, when just 40 senators voted for [Republican Senator Tom] Coburn’s identical amendment, well shy of the 60 needed to advance it.

But the politics of Tuesday’s battle were clouded by Democratic anger at Coburn’s surprise procedural move last week that set up the vote. Democratic leaders had whipped against the amendment heading into Tuesday’s vote, but two aides said they did not do so ahead of the vote Thursday.

Both Iowans in the Senate voted against the Feinstein amendment, which passed 73 to 27 (roll call). Tom Harkin was one of 13 Democrats to vote no, and Chuck Grassley was one of 14 Republicans to vote no. Most of the opposition came from significant corn-producing states.

U.S. Secretary of Agriculture Tom Vilsack called today’s Senate vote “ill advised” and warned that jobs would be lost. His full statement is after the jump. I will update this post with reaction from Harkin and Grassley if it becomes available. Their comments on Tuesday’s ethanol vote are here.

UPDATE: Philip Brasher writes for the Des Moines Register,

The vote was largely symbolic in that the House is expected to reject the provision because tax measures are supposed to originate in the House, not in the Senate. But the sweeping defeat was a powerful indication of how the industry’s once legendary political clout on Capitol Hill has all but disappeared because of  the federal deficit and concerns about the impact of the biofuel on food prices and the environment. The subsidy and tariff are due to expire at the end of the year and the industry is trying to continue some kind of subsidy after that  to go with the annual usage mandates that require refiners  to add ethanol to gasoline. The mandate rises each year until 2015 before leveling off at 15 billion gallons. […]

Sen. Lamar Alexander, R-Tenn., said that the rising cost of food is a sleeper issue around the country and that the vote to kill the ethanol subsidy was a “vote to lower food prices and to lower the national debt.” […]

The ethanol industry did achieve one victory today when the Senate rejected, 59-41,  a proposal by Sen. John McCain, R-Ariz., to block the Obama administration from subsidizing the installation of ethanol pumps and storage tanks. However, the House approved a similar measure 283-128 earlier in the day as part of an appropriations bill for the Agriculture Department. That Senate vote’s important, however, because it shows the industry has support there for shifting at least some of the  federal aid it’s now getting into infrastructure subsidies, according to energy policy analyst Kevin Book.

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Grassley, Harkin vote no as Senate defeats amendment on ethanol

Senators Chuck Grassley and Tom Harkin both voted to preserve a key ethanol tax credit today, as an effort to end that credit six months early fell way short of the 60 votes needed in the U.S. Senate. Republican Tom Coburn of Oklahoma had submitted an amendment to repeal the 45-cent-per-gallon volumetric ethanol excise tax credit for ethanol blenders as of July 1. The credit is scheduled to expire at the end of 2011. Coburn’s amendment “also would have eliminated a 54 cent-per-gallon tariff on imported ethanol,” saving the federal government approximately $2.7 billion total. Only 40 senators (34 Republicans and six who caucus with Democrats) voted for a cloture motion on Coburn’s amendment. Grassley and Harkin were among the 59 senators (13 Republicans and 46 who caucus with Democrats) who voted against cloture; click here for the roll call.

Today’s vote might have been much closer had Coburn not used unusual Senate procedures to force the legislation to the floor. Democratic Senate leaders whipped the vote against Coburn’s amendment, bringing around some Democrats who oppose ethanol subsidies. Democrat Dianne Feinstein, a co-sponsor of the Coburn amendment, nonetheless voted no on today’s cloture motion and said publicly, “If it weren’t for the process, we would have 60 votes.” Feinstein had urged Coburn “to withdraw his amendment and wait until next week” for a Senate vote.

Most of the Republicans who voted against the Coburn amendment represent large corn-producing states. A major anti-tax group’s opposition to the measure may have peeled off a few GOP votes as well. Grover Norquist’s group Americans for Tax Reform argued that eliminating any tax credit without simultaneously adding new tax cuts amounts to a tax increase.

Ethanol supporters also reduced support for Coburn’s amendment by introducing a rival proposal yesterday. Harkin and Grassley are both co-sponsoring the new bipartisan Senate legislation:

While Coburn’s language would completely eliminate the subsidy, the pro-ethanol proposal would cut off the subsidy on July 1, and replace it with a variable subsidy that fluctuates with the price of oil. […]

Under this proposal, ethanol blenders would get no subsidy at all when oil prices are above $90 a barrel. If oil falls to between $80 and $90 a barrel, they would get a six cents per gallon subsidy. Another six cents would be added for each $10 drop in the price of oil, and a maximum subsidy of 30 cents a gallon could be received when oil falls to $50 a barrel or less (a summary of the bill is here).

That’s still less than the current 45 cents a gallon subsidy that ethanol blenders receive currently, regardless of the price of oil.

Proponents of the bill say ending the current system on July 1 and moving to a variable subsidy would save $2.5 billion. In a nod to Coburn and his supporters, the bill would use $1 billion of that for deficit reduction.

The rest would be used for the variable subsidy, but also for the development of ethanol infrastructure and other incentives. For example, the bill would expand tax credits to ethanol blender pumps, and extend through 2014 the small producer ethanol credit.

After the jump I’ve posted Grassley’s floor statement against the Coburn amendment and his comments released after today’s vote. I will update this post if I see official comment from Harkin.

UPDATE: Added Harkin’s statement praising the Senate for rejecting “this misguided amendment.” The Iowa Environmental Council reminds us that the government’s pro-ethanol policy has unintended consequences for water quality.

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Grassley, Harkin reject delay of debit card fee rules

Resisting a full-court press from bank industry lobbyists, Senators Chuck Grassley and Tom Harkin voted yesterday against delaying new regulations of fees banks can charge for debit card retail transactions. Under the Dodd-Frank financial reform law enacted last year, the Federal Reserve Board has until July 21 “to ensure fees banks charge merchants for debit card purchases are ‘reasonable and proportional.’” Those fees currently average 44 cents per transaction, totaling approximately $1.3 billion per month nationwide. A proposed Fed rule would cap the fees at 12 cents per transaction.

Democratic Senator Jon Tester of Montana and Republican Senator Bob Corker of Tennessee have been trying to water down the regulation:

Tester and Corker had originally proposed a 24-month delay, then shortened it to 15 months and on Tuesday filed an amendment to reduce it to 12 months in a bid to pick up support.

The Tester-Corker measure would require bank regulators to study the impact of the Durbin regulation on consumers and community banks and credit unions for six months. It requires regulators to issue a rule implementing new swipe fee rates six months later but gives them power to include a wider range of costs which could let banks charge more than the Fed is currently proposing.

The number two Senate Democrat, Dick Durbin of Illinois, sponsored the Dodd-Frank amendment on debit card swipe fees. Speaking on the Senate floor yesterday, Durbin said “leading up to this vote has been one of the most heated debates and exchanges that many of us in the Senate have seen in our time.” The Hill’s Alexander Bolton called it ” the biggest K Street battle of 2011.”

Tester and Corker fell six votes short of the 60 needed to approve their amendment to the financial reform law. In an unusual split, 19 Democrats and 35 Republicans voted to delay the debit card fee rules. Grassley and Harkin were among the 12 Republicans, 32 Democrats and one independent who voted against the amendment (roll call).

Both of Iowa’s U.S. senators both voted for Durbin’s amendment on debit card fees last May (roll call). Kudos to them for resisting the pressure to delay this reasonable regulation. Bolton noted that nine Senate Democrats who supported the original debit card rule also voted for the Tester-Corker amendment.

For what it’s worth, credit cards still offer consumers more protection than debit cards for certain retail transactions.

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