In a report released today, the White House put climate change on par with terrorism and pandemics as threats to U.S. security. “Climate change is an urgent and growing threat to our national security, contributing to increased natural disasters, refugee flows and conflicts over basic resources like food and water,” according to Obama's 35-page strategy document. 

The President has made fighting climate change a major emphasis of his second term, perhaps as much to elevate it on the political radar screen as to register actual accomplishments. At least one specific recommendation — to diversify the sources of energy for the U.S. military — may have a chance to move forward.

In a rare display of bipartisan unanimity, Congress okays legislation aimed at preventing the rising number of suicides by military veterans.

The Clay Hunt Suicide Prevention for American Veterans Act, named for a Marine who took his life after serving tours of duty in Iraq and Afghanistan, passed both the House and Senate without a single dissenting vote.

The legislation calls for external audits of Veterans Affairs suicide prevention programsadd a pilot program to pay the student debt of doctors who psychiatric medicine and commit to working with the VA, The bill also authorizes creation of a website that highlights mental health services available through the VA.

There is a $28 million price tag attached to the legislation, but Senate supporters said that amount could be found within the existing VA budget, which itself has been the subject of criticism as being inadequate to handle the growing caseload of returning veterans.

If people wonder what it takes for Congress to act in unison, they now know — more soldiers killing themselves than being killed by enemy fire.

Critics say it shouldn't have take this long for Congress to tackle a problem that has gained increased publicity for the rise in post-traumatic stress disorder and traumatic brain injuries. They also contend more needs to be done than a website, audit or student debt repayments. Many charitable organizations, such as the Wounded Warrior Project, have stepped in to help, attracting contributions from businesses and private citizens and bringing fresh resources to the battle.

The Obama administration dropped its plan to tax 529 College Savings Plans after detractors said it would hurt, not help middle-class Americans.

Obama spokesperson said the 529 plan tax proposal was scrapped to allow the focus to remain on other parts of the President's higher education initiative, especially free tuition for two years of community college paid for by an increase in the federal capital gains tax. They also said the tax revenue from the proposal wasn't that large anyway.

However, the pressure to dump the idea was intense. Republicans, led by House Speaker John Boehner, said eliminating the tax-preferred status of 529 College Savings Plans would hurt middle-class Americans. House Democratic Leader Nancy Pelosi said pretty much the same thing as she rode with President Obama on his Air Force One flight from India to Saudi Arabia.

529 College Savings Plans vary from state to state, but essentially allow contributors — usually parents and grandparents — to put money into an account for a student and receive a tax break. The earnings on money in the student's 529 account aren't taxable as long as they are withdrawn down the line for a qualified educational expense.

Data shows that 80 percent of the tax benefits from contributions to more than 7 million existing 529 plan accounts go to households with more than $150,000 of annual income and 70 percent to households earning more than $200,000. Defenders of 529 plans say 10 percent of contributions are attributed to households with $50,000 or less in annual income, which means the program also works as an incentive for lower-earning households.

Obama's proposal sought to redirect tax benefits associated with college expenses to an expanded American Opportunity Tax Credit, which started in the 2009 economic stimulus bill as a tuition credit aimed at helping families paying for college, even if they didn't earn enough to pay federal income tax. The Government Accountability Office ran estimates showing Obama's plan would drive more economic benefits for families with $100,000 or less in annual income than the current 529 plan benefits.

“It’s kind of baffling that people in the middle are convinced they are getting hit hard when virtually all of them are the winners,” Robert Greenstein, the president of the liberal Center on Budget and Policy Priorities, told the New York Times.

However, that was lost in the political furor Obama's plan ignited.

529 plans are popular in part because they are a fairly easy way to transfer wealth from one generation to another. Tax benefits aren't always the primary motivating reason for the contributions. Threatening these plans showed their broad-based acceptance and popularity by many middle-income families and households.

President Obama's State of the Union Address didn't appeal to Republicans, but may have been intended as the first salvo in the 2016 election.

After the speech, GOP spokesmen said Obama needs a "reality check" because many of his proposals, such as raising taxes on wealthy Americans, won't fly in the new Congress controlled by Republicans. Democrats said Republicans can't admit that the economy is rolling and are unwilling to tackle issues such as wage stagnation that hobble middle and lower income Americans.

You could say the packed House chamber was the picture of gridlock in Washington, DC.

A close-up of that picture was visible as the TV cameras showed the respective reactions from Vice President Joe Biden and House Speaker John Boehner who were seated behind Obama during the speech. Biden nodded in agreement and rose repeatedly to applaud. Boehner clapped his hands tepidly a few times and mostly grimaced as Obama spoke.

Republicans say Obama failed to acknowledge voter repudiation of his policies that led the GOP to majorities in both the House and Senate. They also say he missed opportunities to identify areas of potential compromise, such as steps to strengthen Medicare.

Obama did cross swords with his own party by asking for fast-track authority to negotiate new international trade agreements in Europe and Asia, which many Republicans support. But he promised vetoes on legislation that tried to undo his executive actions on immigration.

Despite the closing section of Obama's speech where he said Washington is better than gridlock, there was little in his text or delivery to suggest he was willing to budge on his political priorities. Many observers called his speech the first salvo in the 2016 election.

When Obama mentioned he has no more election campaigns, some congressional Republicans applauded. Obama, with a smile on his face, shot back, "I know because I won both of them." The President also looked directly at the concentration of Republicans in the chamber when he ticked off positive economic indicators and said something to the effect of "That's good stuff."

For their part, Republicans invited Israeli Prime Minister Benjamin Netanyahu to speak from the same podium as Obama did. Netanyahu has objected to the deal the Obama administration is trying to cut with Iran to prevent it from becoming a nuclear power. Boehner pointedly told reporters he extended the invitation to Netanyahu without notifying Obama.​

The President's speech and Republican reactions follow what has become a political ritual. Now that political points have been made and battle lines drawn, it is still possible Obama and GOP congressional leaders can do some of the country's business.

Senator Patty Murray has been given immense responsibility by her Democratic Caucus, including co-chairing the Super Committee, heading the Democratic Senatorial Campaign Committee and chairing the Veterans Committee and the Transportation and Housing Appropriations Subcommittee. Murray and GOP Budget Chairman Ryan crafted the budget compromise that avoided deep domestic spending cuts and set a framework for a bipartisan roadmap to address longer-term challenges. In the 114th Congress, Murray takes on possibly her most challenging assignment. She gave up her chairmanship of both the full Budget Committee and Transportation/Housing Appropriations Subcommittee to take over the most powerful domestic discretionary issue, health care. Murray will now be the lead authorizer and appropriator on health care, education and workforce development. She is the Ranking Member of the Labor, Health, Human Services and Education Appropriations Subcommittee and the full Health, Education, Labor and Pension Committee.

Senator Ron Wyden will continue as the lead Democrat on the powerful Finance Committee.  Even in the minority, Wyden will wield significant power on the tax writing committee in a year when tax reform may finally percolate to the surface.  The Committee also will have a significant role in financing a transportation reauthorization bill, crafting a Trade Promotion Authority bill, addressing online sales tax and passing a host of tax extenders. 

Senator Jeff Merkley, who joined the Appropriations Committee in the last Congress, was recently selected to be the Ranking Member of the Agriculture Appropriations Subcommittee. Merkley is the beneficiary of a number of retirements and departing colleagues on the Appropriations Committee and is probably overjoyed to start his second term as the lead Democrat on the subcommittee. Agriculture is huge in Oregon, including the exploding wine industry, and Merkley will be well positioned to promote research and development of key agricultural products. Since coming to Congress, Merkley has been frustrated with the obstructionist tactics of the Republican minority. He led the fight for filibuster reform. It will be interesting to see if Merkley continues to champion the cause now that Democrats are in the minority.

The U.S. economy is humming along, with many positive indicators. However, one not-so-good metric is the disappearance of so-called middle income jobs, the kind of jobs traditionally found in the manufacturing sector.

Scott Paul, president of the Alliance, says this is a critical time to invest in programs that promote job growth, especially in manufacturing. His suggestions, which are aimed at the new GOP-controlled Congress taking office in January, include:

  • Take advantage of low gas prices to raise the revenue to boost lagging investment in roads, bridges, water and sewer systems and the electricity transmission grid. Paul says 21,000 jobs are created for every $1 billion in infrastructure investment.

Governments will still be puzzling over how to finance a growing backlog of infrastructure investments, health care will become even more ubiquitous with technological innovations and we still will be debating over personal privacy, increased convenience and the need to snoop to protect us from terrorists.

Through in-depth research and interviews with experts on each topic, Deloitte provides analysis on 39 drivers that will impact government operations and 194 trends that represent the shifts that may result by 2020. The results are posted on its new website, Gov2020.

Gov2020 is designed to be a one-stop shop for leaders in the private and public sectors to analyze how changing demographic, societal, economic and technological trends may impact the future. William Eggers, the leader of Deloitte’s public sector research department, compares the website to a “Wikipedia on the future of government.” However, Eggers also hopes the creation will spur an interactive discussion among its users about what is possible in the future. 

For instance, it’s no surprise that investing in infrastructure will remain critical to economic competitiveness in 2020. As with today’s ongoing debate, the challenge for governments will be finding a way to pay for these investments. More electric and fuel-efficient cars on the road will continue to have a significant impact on the gas tax.

The tax bill, which would extend 50 expiring tax benefits, was once a promising measure. But the omission of an earned income tax credit, the threat of a presidential veto and the looming GOP congressional majority in the next Congress left negotiators little wiggle room. They chose the lowest common denominator – extending the tax provisions through 2014, but ending January 1, 2015.

That means tax credits, such as the one that benefit electric motorcycle manufacturers like Brammo in Ashland, Oregon, won't be unplugged, at least for now.

The cromnibus has a similar political lineage.

Just last month, House and Senate Appropriations staff were well on their way to negotiating framework for a 2015 omnibus spending bill. Thanks to a bipartisan deal crafted last December by Senator Patty Murray (D-WA) and Representative Paul Ryan (R-WI), domestic and national security spending levels were set for fiscal years 2014 and 2015. The deal gave Congress a funding road map for fiscal 2015 and allowed House and Senate Appropriations panels to write nearly all of their fiscal 2015 bills with comparable top-line spending levels, leaving less to negotiate.

Republicans nearly swept all competitive Senate races to take control of the Senate. In the House, the GOP majority enlarged to 243 members, giving Republicans the biggest majority since Harry Truman – and, as returns are still tabulated, possibly the biggest majority since 1930. So the results are clear. What's less clear is how Democrats flubbed in telling their story.

Why did Democrats run away from arguably some of the most compelling domestic successes for which they could claim a share of responsibility? 

In any other decade, if I were to tell you:

  • The stock market has more than doubled and continues to push all-time highs;

  • Gas prices have plummeted to the lowest level in a decade;

  • The country is closer to energy independence than at any time in 40 years;

  • Unemployment has fallen from 10 percent to less than 6 percent;

  • Crime is relatively low; and

  • Welfare, food stamps and unemployment benefits are quickly coming back to normal levels, you would think that the economy was moving in the right direction.

While there may be a lack of close, competitive federal races in the Pacific Northwest, there is something to keep an eye on. The increasing seniority of Members of Congress from Oregon and Washington will continue to grow in the next Congress and the region’s influence may be nearing an all-time high. Here is a quick snapshot of the opportunities facing our region’s most influential policymakers.

Senator Patty Murray's rise to power is one of the most underreported stories in politics. Murray has been given immense responsibilities by her Democratic caucus, including co-chairing the Super Committee, heading the DSCC and chairing the Veterans Committee and the Transportation and Housing Appropriations Subcommittee. Murray and GOP Budget Chairman Paul Ryan crafted the budget compromise that avoided deep domestic spending cuts and set a framework for a bipartisan roadmap to address longer-term challenges.

Because of Senator Tom Harkin's (D-IA) retirement, Murray could take over as chair or ranking member on the Labor, Health and Human Services and Education Appropriations Subcommittee, which is responsible for the largest domestic spending bill by far and funds the Department of Health and Human Services, Education and Labor. Murray would have to give up her top spot on the Transportation and Housing Appropriations Subcommittee, but the opportunity will likely be too good to pass up.

Senator Ron Wyden will continue to lead the powerful Finance Committee as chair if Democrats stay in power or ranking member if the GOP controls the Senate. Even if he is in the minority, Wyden will continue to wield significant power on the tax writing committee in a year when tax reform may finally percolate to the surface.  The Committee also will have a significant role in financing the transportation reauthorization bill, crafting a Trade Promotion Authority bill, addressing online sales tax and passing a host of tax extenders.