Business

OVERNIGHT MONEY: Senate wraps up nominations, student loan deal

by Vicki Needham - 07/18/13 10:13 PM ET

Republicans had been seeking to derail the nomination since Perez first arrived on Capitol Hill to chat with lawmakers.

Many GOP senators argued that he had made “ethically questionable” decisions while heading the Civil Rights division of the Justice Department and would continue bending the rules as he sees fit.

{mosads}Senate Minority Leader Mitch McConnell (R-Ky.) has been one of Perez’s harshest critics.

He accused the new Labor secretary of making “misleading” statements to Congress and an inspector general during his service in the administration.

“Tom Perez is more than just some left-wing ideologue, he’s a left-wing ideologue who appears perfectly willing to bend the rules to achieve his ends,” McConnell said.

“This is reflective not of some passionate left-winger who views himself as patiently advancing policies within the bounds of a democratic system but as a crusading ideologue whose convictions lead him to believe that the law simply doesn’t apply to him.”

Until this week it seemed Perez might remain in a sort of nomination purgatory. Then Democrats and Republicans had a serious sit-down chat to hash out the future of filibuster policy in the chamber.

Republicans agreed to hold an up-or-down vote on the nomination as part of a deal to avoid the “nuclear option” to end filibusters.

In exchange, the Obama administration withdrew two National Labor Relations Board nominees and put a couple of fresh names into the hat. Those three nominations are expected to be handled next week.

Through it all, Democrats stood by Perez during his uncertain battle over his confirmation.

Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin (D-Iowa) said Perez has the “strongest reputation of professional integrity” and has acted “ethically.”

After Perez, the Senate wrapped up its week in the “new and improved” Senate, which some senators joked about this week, with a 59-40 to confirm the controversial nomination of Gina McCarthy to lead the EPA.

McCarthy will formally take the reins at the agency at a time when the Obama administration is stepping up work on controversial greenhouse gas regulations.

Meanwhile, amid the nominations dump, a bipartisan group of senators unveiled a deal that would provide a long-term fix to student loan rates, allowing them to float the rate to a ceiling of 8.25 percent.

Following a Tuesday evening meeting with President Obama, the coalition hammered out a compromise more than two weeks after rates doubled due to congressional inaction.

Negotiators called the deal a healthy compromise, which would bring both subsidized and unsubsidized Stafford loans under the same interest rate for the first time. The rate on unsubsidized loans, which lower-income students rely on, doubled on July 1 to 6.8 percent.

Even Speaker John Boehner (R-Ohio) said the proposal sounded like something the House could support.

“I haven’t seen the details of it, but clearly, it follows the structure of the House bill,” he said.

I wonder what they’ve got planned for next week …

WHAT ELSE WE’RE WATCHING

Making a cut: A House Appropriations subcommittee on Friday will mark up a 2014 spending bill that cuts foreign aid by 26 percent, rankling the State Department on Thursday.

The State Department said it is “concerned” about the “devastating” slash to spending.

“Our concern is that these proposed cuts, which we would consider would be devastating if put into effect, would hurt our ability to stand up for American interests and values around the world,” State Department spokeswoman Marie Harf said. “The U.S. can’t lead if we retreat in this way.”

The legislation also prohibits funding to implement the United Nations Arms Trade Treaty, which is opposed by the National Rifle Association, and limits aid to Egypt if it does not transition to democracy.

To Russia with economic ideas: Treasury Secretary Jack Lew is scheduled to touch down in Moscow on Friday to attend the Group of 20 meeting with his international counterparts and central bank governors to discuss measures to boost economic growth and create jobs.

His meetings include talks with French Finance Minister Pierre Moscovici, German Finance Minister Wolfgang Schäuble, Singaporean Deputy Prime Minister Tharman Shanmugaratnam and European Central Bank President Mario Draghi.

BREAKING NEWS

Motor City madness: The city of Detroit filed for Chapter 9 bankruptcy on Thursday afternoon.

“The fiscal realities confronting Detroit have been ignored for too long. I’m making this tough decision so the people of Detroit will have the basic services they deserve and so we can start to put Detroit on a solid financial footing that will allow it to grow and prosper in the future,” Michigan Gov. Rick Snyder (R) said in a statement.

ECONOMIC INDICATORS

State Unemployment: The Labor Department on Friday will release the latest regional and state employment figures for June, providing a better view into where the strengths and weaknesses of the labor market exist.

WHAT YOU MIGHT HAVE MISSED

— IRS inspector general: We didn’t get progressive documents until last week
— Dems charge Issa with politicizing IRS fight
— Issa vows IRS hearing will show DC involvement in Tea Party targeting
— Conservative economist predicts 1.5 million jobs from online sales tax
— SBA administrator leaving after August; Obama yet to name replacement
— Report: Ex-Im Bank rejects financing for Vietnam coal plant
— Froman warns lack of resources may stymie trade agenda
— Froman says Asia-Pacific deal can be done this year
— Dems tell Fed not to rush for the exit
— Paul Ryan heading to Iowa
— With eye on ending Hill gridlock, 81 lawmakers rally to back bipartisan bills
— Housing nominee Mel Watt advances in 12-10 vote
— FDIC official backs bill to create banking firewall
— Shelby signals opposition to Landrieu flood insurance language
— Applications for jobless benefits drop 24,000
— Lobby group girds for fight to save terrorism insurance
— House Democrats outline housing finance principles