Senator refuses to relinquish hold on OMB nominee

With Congress set to return from recess for its lame-duck session next week, one of the crucial pieces of unfinished federal management business is the nomination of Jacob "Jack" Lew to run the Office of Management and Budget.

Sen. Mary Landrieu, D-La., placed a hold on Lew's nomination on Sept. 23 in an attempt to force the Obama administration to lift or modify its moratorium on deepwater oil and gas drilling -- an important industry for Louisiana workers and businesses that was put in a deep freeze following the BP oil spill in the Gulf of Mexico in April. Landrieu said her hold was a "last resort" after months of meetings and hearings failed to move the administration from its policy.

But, while Interior Secretary Ken Salazar lifted the moratorium in mid-October, Landrieu has refused to budge from her stance and now is demanding more concessions from the White House.

"There is nothing new to report at this time," Landrieu spokesman Aaron Saunders told Government Executive. "The senator's hold on Mr. Lew remains in place."

In an Oct. 12 statement after Salazar lifted the moratorium, Landrieu asked the administration to "accelerate the granting of permits in shallow and deep water, and provide greater certainty about the rules and regulations industry must meet."

The senator said at the time that she would use the congressional recess to evaluate if the "lifting of the moratorium is actually putting people back to work." That internal evaluation is ongoing, according to Saunders. "The senator has not yet drawn any conclusions," he said.

Nonetheless, Landrieu continues to be concerned "over the issuance of shallow and deep water drilling permits," Saunders said.

Federal watchdogs argue Landrieu continues to move the goalposts and that the White House would be foolish to cave in to her stipulations.

"Who knows what her next demand will be," said Craig Jennings, director of federal fiscal policy at the nonpartisan OMB Watch. "Of course, the administration does have a history of being pliant, so she might be on to something. At the end of the day, though, she is putting her parochial interests ahead of the nation's, and it's disappointing to see any one senator cripple one of the most important offices in the federal bureaucracy."

Administration officials have condemned the hold and urged the Senate to move on the nomination.

"Our view has not changed; the hold on Jack Lew's nomination is outrageous and without merit," OMB Communications Director Kenneth Baer said. "There is no question that Jack Lew is eminently qualified to serve as OMB director -- a belief shared by the large number of senators from both parties and from across the ideological spectrum who supported his nomination in committee. We urge the Senate to act on this nomination as soon as possible so that Jack can get to work on the fiscal 2012 budget."

Known in political and government circles as practical and intellectual, Lew is widely supported for the OMB post, a position he held during the Clinton administration from 1998 to 2001. Most recently, Lew served as deputy secretary for management and resources and chief operating officer of the State Department.

Before Landrieu placed her hold, the Senate Homeland Security and Governmental Affairs Committee and the Senate Budget Committee confirmed Lew.

Since the departure of former OMB Director Peter R. Orszag in August, Jeffrey Zients, who holds the dual posts of chief performance officer and deputy director for management, has served as the office's interim director.

Even if Landrieu lifts her hold tomorrow, the damage already has been done, Jennings said. Congress has a mountain of other more immediate tasks on its plate when lawmakers return on Nov. 15, including passing all federal spending bills, considering a repeal of the "don't ask, don't tell" ban on gays serving openly in the military, and weighing an extension of Bush tax cuts. And, with just six weeks -- minus Thanksgiving -- to complete this to-do list, Jennings questioned whether Lew will be a priority.

"So, we're looking at going into January without an OMB director, exactly when the finishing touches are being put on the fiscal 2012 budget request," Jennings said. "Lew's going to be managing a budget request that he had nothing to do with."