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Posts Tagged ‘Congress’
March 17th, 2015 at 1:40 pm
New House Budget Solidifies Ryan’s Legacy

New House Budget Chairman Tom Price (R-GA) is picking up right where his predecessor Paul Ryan (R-WI) left off.

Today, Price introduced his first federal budget proposal which borrows heavily from Ryan’s plans, “including a plan that would transform Medicare into a voucher-like ‘premium support’ program for seniors joining Medicare in 2024 or later,” reports Fox News. “They would receive a subsidy to purchase health insurance on the private market.”

Price would also keep Ryan’s idea to convert Medicaid and food stamps into federal block grants that states can spend with more freedom than they do now.

Though this budget stands little chance of passing because Republicans in Congress don’t have the votes to overcome a certain veto by President Barack Obama, retaining the core of Ryan’s reform package sends an important signal that these budget proposals are now the fundamental elements of any conservative spending reduction agenda. Every GOP presidential aspirant will have to weigh in on whether they support this approach and what, if any, changes they would make.

This is deliberative democracy at its best.

March 12th, 2015 at 3:53 pm
Tom Cotton’s Letter Echoes Jesse Helms’ Defense of the Constitution

If the Obama administration thinks U.S. Senator Tom Cotton’s (R-AR) letter is a threat to their negotiations with Iran, they should consider the actions of the late Jesse Helms.

Helms (R-NC) was the chairman of the Senate Foreign Relations Committee during the latter part of the Clinton presidency and made no bones about attempts to circumvent Congress so the White House could claim a big foreign policy headline.

In an op-ed published the day Clinton was to engage in talks with Vladimir Putin about reducing missile defense capabilities, Helms declared, “After dragging his feet on missile defense for nearly eight years, Mr. Clinton now fervently hopes that he will be permitted, in his final months in office, to tie the hands of the next President.”

Helms would have none of it. “Well I, for one, have a message for the President: Not on my watch. Let’s be clear, to avoid any misunderstandings: Any modified ABM treaty negotiated by this administration will be dead-on-arrival at the Senate Foreign Relations Committee… The Russian government should not be under any illusions whatsoever that any commitments made by this lame-duck Administration, will be binding on the next administration.”

And with that, the talks dissolved.

In this context, Cotton’s letter is tame by comparison. Which isn’t to say that it lacks verve and importance. Cotton and the forty-six other Senators who educated the Iranian leadership on the limitations of Obama’s go-it-alone strategy are guarding against the misimpression that Obama’s dealmaking lasts any longer than his hold on office.

What Helms and Cotton have in common is a clear-eyed view of constitutional procedure, and the difference it makes when shunted aside. If Obama wants a legacy pact with Iran, he can’t do it on the cheap. Congress – and specifically the Senate – needs to be consulted, the sooner the better.

March 10th, 2015 at 5:33 pm
Lessons from Britain in Repealing ObamaCare

Daniel Hannan, a British conservative serving in the European Parliament, warns Americans about the danger of propping up ObamaCare long enough for it to get entrenched in everyday life.

“ObamaCare isn’t a precise copy of the British health system. But there is one parallel on which its exponents are relying, namely the conflation of their healthcare model with the people who work in it,” writes Hannan. “The chairman of the body in charge of overseeing care quality in Britain recently put his finger on the problem: ‘The NHS became too powerful to criticize. When things were going wrong, people didn’t say anything. If you criticized the NHS – the attitude was how dare you?’”

Something similar seems to be happening now. Some states are getting ready to install ObamaCare exchanges if the Supreme Court strikes down the IRS subsidies as unlawfully distributed to people using the federal Healthcare.gov website.

Others are suggesting the creation of an “off-ramp” from ObamaCare that would keep the subsidies flowing until the 2016 presidential election, but would also extend the health law’s life span.

These kinds of half-measures do nothing to help move health reform in a more sustainable, market-oriented direction. All they do is put a bipartisan face on ObamaCare, albeit in an altered form.

Part of what makes repealing ObamaCare a realistic option is the steadfast resistance from state and federal Republicans in implementing it. If even a significant minority of GOP leaders start to go along with saving ObamaCare – in whatever form – then the United States runs the risk that Hannan in Britain knows all too well.

Socialized medicine will be here to stay.

March 5th, 2015 at 4:58 pm
Congress Would Rather Write Letters than Pass Laws

Reuters is reporting that Speaker John Boehner (R-OH) and a bipartisan group of House members sent a letter to President Barack Obama this week urging him to send weapons to the Ukrainian government in order to send a message to Russia.

“In the face of Russian aggression, the lack of clarity on our overall strategy thus far has done little to reassure our friends and allies in the region who, understandably, feel vulnerable. This needs to change,” wrote the lawmakers.

But here’s the irony. According to Reuters, “The House and U.S. Senate voted unanimously late last year for a bill authorizing Obama to provide weapons to Kiev but he has yet to decide whether to send any.”

That is, Congress voted to give Obama the discretion whether or not to send weapons to Ukraine. Now, some members are upset that he won’t enact their preferred strategy.

Just like immigration policy, Congress has the ability to limit the president’s options by passing laws that spell out exactly what he can and cannot do. Unlike immigration – where Obama’s amnesty programs are deliberately in conflict with federal law – in the case of Ukraine the president appears to be clearly within his power not to act.

It’s a sad commentary when leading members of Congress are reduced to relying on third-party lawsuits and strongly-worded letters instead of their inherent, constitutional power to create the laws of the land.

No wonder this president ignores them.

March 4th, 2015 at 12:49 pm
GOP Congress Caves on Obama Amnesty

After weeks of failing to pass a bill blocking implementation of President Barack Obama’s unilateral amnesty for millions of illegal immigrants, Republican leaders in Congress called it quits.

A so-called “clean” bill – one without the amnesty prohibition – passed the House of Representatives 257 – 167 yesterday, with all of the no votes coming from Republicans. The bill is expected to pass the Republican-controlled Senate quickly.

Though much of the blame is being focused on House Speaker John Boehner (R-OH), it seems the media is conveniently forgetting that new Senate Majority Leader Mitch McConnell (R-KY) let a presidential attack on constitutional separation-of-powers supersede a Senate debating procedure known as the filibuster. If the roles were reversed it is inconceivable that Harry Reid would let a procedural rule he controls thwart his sense of constitutional propriety.

By elevating a Senate tradition above Congress’ constitutional duty to make the laws, McConnell has effectively neutered his 54 member majority since it lacks the 60 votes it needs to actually govern.

Welcome to the Republican Senate. Its work product looks an awful lot like its Democratic predecessor.

February 26th, 2015 at 8:23 pm
Treasury Dept. Approves $3 Billion Transfer to Insurance Companies that Congress Denied

A letter from House Ways and Means Chairman Paul Ryan (R-WI) demands an explanation from the Treasury Department on why it allowed $3 billion in payments to ObamaCare insurance companies that Congress never approved.

In a well-documented piece, Philip Klein gives a disturbing summary of the Obama administration deliberately refusing to follow the law.

“At issue are payments to insurers known as cost-sharing subsidies,” writes Klein. “These payments come about because President Obama’s healthcare law forces insurers to limit out-of-pocket costs for certain low income individuals by capping consumer expenses, such as deductibles and co-payments, in insurance plans. In exchange for capping these charges, insurers are supposed to receive compensation.”

Here’s the rub.

“What’s tricky is that Congress never authorized any money to make such payments to insurers in its annual appropriations, but the Department of Health and Human Services, with the cooperation of the U.S. Treasury, made them anyway,” says Klein.

As proof, Klein cites a $4 billion funding request for the cost-sharing subsidies program in 2014 that was not fulfilled by Congress. It’s now 2015, the bills are coming due, and the Obama administration effectively said, “Never mind.”

Whether the domain is immigration or ObamaCare, the default setting for this administration seems to be that if it can’t get what it wants the legal way, it’s just as good to go around the law.

February 26th, 2015 at 1:44 pm
Boehner Stands Firm on Tying DHS Funding to Amnesty Ban

Kudos to House Speaker John Boehner (R-OH) for declining the Senate GOP’s offer to cave to Democrats’ demand for a so-called “clean” funding bill for the Department of Homeland Security.

As I discuss in my column this week, some Senate Republican leaders are getting gun shy about following through with the party’s promise to condition funding for DHS on new legislative language that specifically prohibits immigration agencies from implementing President Barack Obama’s unilateral amnesty program. They warn that Republicans will be blamed for the shutdown that would start on Sunday when the DHS budget ends, if no new bill is passed. Better, they argue, to appropriate the money now and hope the federal judiciary holds Obama accountable in the future.

At a press conference today, Boehner reminded everyone that – at least publicly – “All Republicans agree that we need to fund the Department of Homeland Security and we want to stop the president’s actions in response to immigration.”

Ever the politician, Boehner “would not say whether he would back a Senate funding bill without provisions that would defund President Obama’s executive actions on immigration,” reports National Journal.

Still, it’s encouraging to hear the Speaker of the House sound resolute in defense of the rule of law when so much of the political class is aching to cut a deal.

February 17th, 2015 at 12:53 pm
Congressional Democrats Want to Delay ObamaCare Penalties

It looks like having the courage of one’s convictions about the imperative of ObamaCare doesn’t include making good on the Democrats’ promise to “pay-as-you-go.”

Once upon a time when Rep. Nancy Pelosi (D-CA) was Speaker of the House, Democrats in Congress made a lot of noise about PAYGO, the fiscal policy that essentially requires new spending to be paid for with spending cuts, tax increases, or some combination of the two.

But now that ObamaCare’s IRS-imposed penalties are coming due, those same Democrats are singing a different tune.

“Three senior House members told the Associated Press that they plan to strongly urge the administration to grant a special sign-up opportunity for uninsured taxpayers who will be facing fines under the law for the first time this year,” the AP reports.

Interestingly, the three House members – Michigan’s Sander Levin, Washington’s Jim McDermott and Texas’ Lloyd Dogget – “[a]ll worked to help steer Obama’s law through rancorous congressional debates from 2009-2010.”

And now that the price of non-compliance with ObamaCare’s tax-raising mandates is becoming obvious, all three want to avoid a predictable constituent backlash.

Sorry fellas, if spending at least $684 million annually to educate the public about ObamaCare isn’t enough to adequately inoculate against angry voters, perhaps there’s a fatal flaw in the law.

At any rate, it’s time the American public got the version of health reform you voted for.

February 13th, 2015 at 6:05 pm
The ObamaCare Tax Even Democrats Want to Repeal

Nice things cost money, and so too does so-called affordable health insurance.

“More than one-third of all House members have signed onto legislation that would repeal ObamaCare’s tax on insurance companies, which even some Democrats agree is leading to high insurance costs for millions of American families,” reports The Blaze.

People familiar with the logic of doing business understand that private firms don’t pay taxes, people do. So when ObamaCare imposes a tax on health insurance providers, that amount gets passed on to consumers as higher premiums.

With ObamaCare’s second enrollment cycle about to end, many people are experiencing this economic rule up-close-and-personal.

“I hear every day from individuals, families, and businesses in Arizona about the cost of health care,” Rep. Kyrsten Sinema (D-AZ) is quoted as saying. “This common sense fix [i.e. repeal] will help lower out of pocket costs for hardworking Arizonans. By working together, we can provide relief for individuals, families, and employers while increasing access to quality affordable health care.”

That’s highly unlikely because ObamaCare’s regulations increase the cost of providing health care, and its complex web of subsidies is designed to hide some of that increase. Repealing a source for subsidies without also repealing the regulations that make them necessary leaves the elevated cost without a means to pay for it.

Still, it’s good to see at least some Democrats in Congress supporting the repeal of at least some part of ObamaCare. Remove enough supports, and eventually the whole architecture crumbles.

February 6th, 2015 at 4:43 pm
Avik Roy Weighs In on the GOP’s Patient CARE Act

Avik Roy, a conservative health policy expert, penned a very helpful primer on the latest GOP ObamaCare alternative.

The plan – the Patient CARE Act – is an updated version of similar reform concepts presented last year by three leading Republican members of Congress.

Along with other intriguing ideas, the Patient CARE Act replaces ObamaCare’s restrictive subsidy system – i.e. the money can only be spent on federally-approved insurance plans – with “a means-tested tax credit that individuals could use to buy a far broader range of insurance products, or deposit the funds in a health savings account.”

As a tremendous service to readers, Roy also summarizes how the Patient CARE Act compares to other conservative health reform alternatives: his Transcending ObamaCare and one championed by the 2017 Project. All three are serious proposals and deserve attention.

More on these and other ObamaCare alternatives as they develop…

February 5th, 2015 at 8:27 pm
New GOP ObamaCare Alternative

Here’s a look at the newest Republican alternative to ObamaCare.

According to the plan’s authors – Rep. Fred Upton of Michigan, plus Senators Richard Burr of North Carolina and Orrin Hatch of Utah – the plan would rein in Medicaid’s burgeoning costs by turning it into a block grant.

That’s not all.

Among other things, the Patient CARE Act would:

  • Enact medical malpractice reforms to reduce frivolous lawsuits
  • Require basic price transparency to inform and empower patients
  • Cap the exclusion of an employee’s employer-provided health coverage
  • Create a targeted tax credit to help buy health care

Billed as a “Bicameral Republican Blueprint,” this proposal has support from three powerful members of the GOP in Congress. Once they produce more details, then we’ll see how many votes they can muster.

February 4th, 2015 at 1:11 pm
IRS Delays Enforcement of ObamaCare “Clawback”

Ladies and gentlemen, please welcome another politically-motivated ObamaCare delay to the stage!

Megan McArdle sums up the IRS’ decision to let those who received too much in ObamaCare subsidies last year get extra time to pay back the difference (called the law’s “clawback” provision).

“It’s not relieving you of the obligation to repay; it’s just saying that you won’t be liable for a penalty if you don’t repay by the deadline,” explains McArdle. “Interest will continue to accrue, but the interest rates that the IRS charges are actually pretty reasonable (and probably much better than what your credit card company charges). It’s the failure-to-pay penalties it layers on top – half a percentage point a month, with even stiffer penalties for failing to file – that really make your tax bill add up fast.”

That is, if the Obama IRS ever gets around to enforcing the parts of laws it doesn’t like. McArdle writes, “The IRS emphasizes that this is a one-time deal, just for 2014. But I’m not sure if you should believe it. This emphasizes one of the problems we’ve spoken about a lot in this space: The political will to impose the costs of the Affordable Care Act is a lot less strong than the will to distribute the benefits.”

The Republican establishment was once derided as the tax collector for the welfare state. If Obama and the Democratic Party can’t be bothered to administer both the costs and the benefits of their so-called health reform law, the GOP shouldn’t shoulder the burden of balancing its books.

Every politically-motivated delay in enforcing an aspect of ObamaCare is a tacit admission by its supporters that the law is unworkable in practice. Republicans should acknowledge the obvious and start afresh.

February 3rd, 2015 at 7:36 pm
Harry Reid and the Senate Democrats Vote to Shut Down DHS; Time for GOP to Play Hardball

Harry Reid (D-NV) and his Senate Democrats voted to shut down the Department of Homeland Security today.

The piece of legislation they voted down was a Republican bill to fund DHS for the rest of the fiscal year with the caveat that no funds could be spent implementing President Barack Obama’s unilateral immigration amnesty. Currently, the DHS budget is set to expire at the end of February.

The decision probably didn’t involve too much deliberation or anguish since Reid & Co. can count on a sympathetic media to frame the result as Republican obstruction, i.e. not letting Obama and the Democratic Party run roughshod over federal law to curry favor with millions of potential future voters.

If anything Reid and his allies probably think they helped Obama save face by shielding him from having to veto common sense legislation for naked political reasons. Now, Obama can blame Congress for not working, even though it’s the members of his own party that are throwing up roadblocks.

One thing that is clear is that Reid never would have whipped his entire caucus in opposition unless Obama had authorized it. So, call this an indirect veto of Republicans’ immigration funding maneuver and we’re right where we would have been had the bill passed and been rejected.

Obama and Reid play on the same team, so Republicans can’t let the media portray this as anything other than what it is – a high stakes dispute over whether policy gets decided according to the rule of law or the whim of one.

If the president wants to start the negotiating process earlier than expected, so be it. Republicans in Congress shouldn’t use this an excuse to cave.

There had to be a strategy to overcome the veto, at least in the court of public opinion. After today’s vote, it’s time to accelerate the time line.

January 28th, 2015 at 5:16 pm
Striking Down ObamaCare Subsidies in Some States Would End Individual, Employer Mandates

There are many ways to skin a cat, the saying goes, and there may be more than one way to frame the Supreme Court striking down the IRS’ lawless extension of ObamaCare subsidies to an estimated 5 to 6 million Americans.

If the Court invalidates the subsidies for people living in states without a state-run ObamaCare exchange – as a plain reading of the law requires – then the consequences will have a ripple effect.

“For instance,” columnist Philip Klein explains, “ObamaCare’s fines against employers that do not offer health insurance coverage are triggered when a worker claims government subsidies to purchase insurance on an exchange – but in states where workers can no longer legally receive those subsidies, then there are no fines. The employer mandate, thus, is effectively dead in those states.”

There’s more.

“Additionally,” says Klein, “the individual mandate exempts those who can’t find health insurance options for less than 8 percent of their income – thus, if the subsidies are eliminated, more people will be able to claim this exemption.”

In other words, if a lack of ObamaCare subsidies make individual health insurance unaffordable, then the individual and employer mandates are null and void.

An ObamaCare without mandates weakens the law substantially, and makes it far more likely for Republicans to change. If the Supreme Court delivers a decision that brings it about, the GOP should be in a good position to enact a more workable alternative.

January 27th, 2015 at 6:41 pm
GOP Congress Working on ObamaCare Alternative If Subsidies Struck Down

Republicans on both sides of Capitol Hill are busy strategizing for ways to minimize the political fallout if the Supreme Court invalidates health insurance subsidies for millions of people currently receiving them under ObamaCare.

The case, King v. Burwell, challenges the IRS’ decision to make insurance premium subsidies available to citizens of 34 states that do not have a state-run ObamaCare exchange. The policy is in direct conflict with ObamaCare’s text, providing the justices with a clear opportunity to hold the Obama administration to the letter of the law.

The Hill is reporting that Republican members of the House and Senate are discussing ways to be ready when and if an estimated 5 to 6 million Americans suddenly can’t afford to purchase mandated health insurance.

So far, no details have emerged regarding specifics. There is a lot to consider since any change in the law will require President Barack Obama’s signature. A complicating factor may be this president’s willingness to let the media portray Republicans and the Court as heartless conservatives, even though all that’s being asked for is the Obama administration to implement its own law as written.

Nothing new here.

On the flip side, it’s encouraging to hear that Republicans in Congress are trying to get in front of a potentially damaging issue by coalescing around an alternative they can sell to the public.

Hopefully this is the start of a welcome trend.

January 22nd, 2015 at 8:20 pm
Obama Admin Shirking Legal Duty to Inform Congress of New Regulations

As Republicans turn to the Congressional Review Act (CRA) to rein in the Obama administration’s executive overreach, they should scrutinize a recent trend to shirk the CRA’s reporting requirements.

In my column this week I explain how the CRA works – a federal agency proposes a rule and Congress gets about 60 days to kill it (so long as the president agrees). Even if the president vetoes Congress’ disapproval, the process helps define each party’s stance on the proper role of regulation.

Importantly, the CRA imposes a reporting requirement on federal agencies to inform Congress about final rule proposals. It turns out, however, that the CRA doesn’t create an oversight process to ensure compliance.

Enter the Government Accountability Office (GAO), Congress’ watchdog over the administrative state.

“Shortly after the CRA was enacted, GAO voluntarily developed a database of submitted rules, began checking the Federal Register to ensure that all covered rules were being submitted, and periodically notified the Office of Management and Budget (OMB) about missing rules,” says a 2014 report from the Administrative Conference of the United States.

“However, in November 2011, GAO decided to reduce its checks of the Federal Register, and to stop notifying OMB about missing rules.”

As a consequence, GAO lost track of whether federal agencies were complying with the CRA. Between 2012 and 2014, “[m]ost of the 43 missing major and significant rules also did not appear to have been received by both houses of Congress – thereby preventing a Member of Congress from introducing a resolution of disapproval under the CRA.”

Since Congress can’t disapprove what it doesn’t know about, the Republicans that control the legislative branch should instruct GAO to ratchet up its oversight to ensure the Obama administration is CRA-compliant.

January 15th, 2015 at 8:07 pm
Paul Ryan Says No to Raising Gas Tax

With oil prices at record lows some Members of Congress have floated the idea of raising the federal gas tax to make up for lost revenue.

Today, Paul Ryan put the kibosh on the proposal.

“We won’t pass the gas tax,” Ryan, a Wisconsin Republican, said to members of the media outside a GOP policy retreat in Hershey, PA.

Ryan’s pronouncement likely quashes the idea that Congress will pass legislation during his tenure as chairman of the tax-writing Ways & Means Committee.

This won’t make the social engineering crowd happy.

According to a piece at Newsweek in support of imposing a higher gas tax, “Whenever you impose a new and unanticipated tax, some part of the existing capital stock becomes less valuable than it was before.” “Adding, say, 50 cents to a gallon of gasoline makes preexisting gas guzzlers, homes in the suburbs and oil-based home heating systems worth less than before.”

“Conversely, when oil prices fall, fuel-efficient cars, homes in city centers and public transit investments all drop in value. This can lead to economic waste: under-used automobiles, unrented homes and empty subways,” complains the author.

Note that the compacted urban lifestyle preferred by liberal social planners is the vision that suffers from low gas prices, while the middle class lifestyle experienced by millions of Americans benefits.

Raising taxes to force people to become public transit-riding renters instead of car-driving homeowners isn’t very popular when put in these terms.

Kudos to Chairman Ryan for putting this idea to rest.

January 14th, 2015 at 1:54 pm
Study: Best Time to Repeal ObamaCare Might be Year 2020

How important is the upcoming 2016 presidential election?

According to research by political scientist Jordan Ragusa, the most favorable time to repeal landmark legislation like ObamaCare occurs about ten years after its passage.

Since ObamaCare was passed in 2010, that means 2020 is the year repeal activity could be at its height.

Ragusa’s ten-year window is an average calculated over a fifty-year study of repeal efforts of major laws. In the context of ObamaCare, Ragusa’s timeline makes perfect sense. Republicans don’t have the supermajority in either chamber of Congress to override a certain veto from President Barack Obama. But if a Republican wins the presidency in 2016, all the GOP would need is a simple congressional majority to repeal any or all of ObamaCare.

Yes, it’s important for Republicans in Congress to get whatever wins they can muster now to weaken ObamaCare before it does more damage. But changes in partisan control take time. When ObamaCare was passed Democrats were in complete control of the political branches. The earliest Republicans could be in such a position is January of 2017.

It will also take time for the GOP to coalesce around a comprehensive alternative to ObamaCare, which, according to Ragusa’s data, shouldn’t be too much of a concern as long as a repeal-and-replace bill is signed into law before the Republican president’s first term expires.

There are a lot of considerations to keep in mind when it comes to securing a free market alternative to ObamaCare. Lack of time to do it right isn’t one of them.

January 8th, 2015 at 2:10 pm
Rep. Roby Files Bill to Defund Obama’s Amnesty

If you want to know how Congress can stop President Barack Obama’s unilateral amnesty plan, take a look at Rep. Martha Roby’s (R-AL) new proposal – H.R. 31, the “Prevention of Executive Amnesty Act of 2015.”

Filed as a standalone bill, the measure could easily be rolled into the upcoming appropriations package for the Department of Homeland Security, the federal agency that is tasked with implementing Obama’s decision to halt deportations for up to 5 million illegal immigrants and grant many of them work permits.

As Byron York explains, “Roby’s bill is essentially a ‘none of the funds’ clause, that is, it forbids the executive branch from spending money for a particular purpose.” In the so-called ‘crominbus’ bill passed in December to fund every other federal agency except DHS, Congress used the ‘none of the funds’ clause more than 450 times. Applying it to the directives that implement Obama’s amnesty is a simple, straightforward way for Congress to use its power of the purse to block the move.

Of course, Obama can veto any bill with Roby’s language. But since the president doesn’t have a line-item veto, refusing to sign the law would defund DHS.

For once, let this president get the blame for shutting down the government.

January 6th, 2015 at 4:23 pm
Senate GOP Eyes Keystone XL Approval

Now in the majority, GOP Senators are moving quickly to approve the Keystone XL pipeline, a transcontinental project that would link Canadian oil to refineries in American Gulf states.

“The president is going to see the Keystone XL pipeline on his desk and it’s going to be a bellwether decision by the president whether to go with jobs and the economy,” Senator John Barrasso (R-WY), said on Sunday.

President Barack Obama has played games with the approval process over the past few years. Initially, his State Department supported the project and was ready to go forward until environmental activists successfully lobbied for delaying tactics, such as additional feasibility studies.

Without a Democratic Senate running interference, Obama will now have to govern. Though it prefers to partner with the United States, Canada has said it will export its oil to China if the Obama administration remains beholden to the environmental lobby.

The truth of the matter is that the oil is being pumped and its $3.4 billion economic contribution will have to go somewhere. Ultimately, Obama’s decision boils down to whether he wants Canadian oil to boost the American economy or China’s.