As reported in the last Watcher, on April 28 the Senate passed a four-year continuation of the now-expired Internet tax moratorium. Disagreements with the House make passage of the ban unlikely.

In spite of the "PayGo" logjam over whether or not tax cuts ought to be offset, which continues to prevent passage of a budget resolution, the House persists with its "a tax cut a week" schedule.

Two of the six Federal Election Commission’s (FEC) six Commissioners have proposed a scaled-down version of the controversial proposed rule extending federal campaign finance rules to independent organizations. The proposal, drafted by Commissioners Michael Toner (R) and Scott Thomas (D), excludes organizations exempt under Section 501(c) of the Internal Revenue Code and some Section 527 groups from regulation. However, it incorporates thresholds that are vague and leave exempted organizations open to similar regulatory restrictions in the future.

The Environmental Protection Agency delayed the final adoption of new rules governing emission of the powerful neurotoxin mercury, but EPA Administrator Mike Leavitt vowed that the administration would not be withdrawing the controversial regulations despite widespread opposition. In the new timetable, the EPA will continue to accept comments on its proposed rules on emissions of mercury by power plants until March 15, 2005, and the rules will not be finally adopted until May 2005.