Insights

On Friday, February 21, Rep. Brett Guthrie (R-KY) and Rep. John Joyce (R-PA), the Chairman and Vice Chairman of the U.S. House Committee on Energy and Commerce, issued a Request for Information (RFI) inviting stakeholders to provide comment as the Committee explores the development of a federal data privacy and security framework. After efforts to consider a bipartisan and bicameral bill failed last year under former Chair Cathy McMorris Rodgers (R-WA), Chairman Guthrie is starting the effort anew, forming a working group with the goal of developing comprehensive legislation “that can get across the finish line.”

The opportunity to create and shape major policies impacting the transportation sector will be teed up in 2025. Some changes will be led or initiated by the change in Administration, some will come from expected retirements or potential changes in majorities, and other changes will be put in the forefront of congressional leaders because of expiring laws. In this client alert, part of our Election 2024 series, we identify some of the expected changes, opportunities, and challenges ahead for transportation policy.

To keep our clients informed about the proposed policies and announced platforms of the presidential candidates and the potential composition of the new Congress, Crowell is launching its Election 2024 series. The series will provide insight and analysis on what the election of Vice President Harris or former President Trump could mean for business, as well as explore what’s at stake in key state and congressional races. 

After weeks of tense negotiation between the White House and House Speaker Kevin McCarthy (R-CA), the Fiscal Responsibility Act, H.R. 3746 (the Act) has passed both chambers of the U.S. Congress and awaits President Biden’s signature. The compromise agreement pairs a two-year suspension of the $31.4 trillion debt ceiling (through January 1, 2025) with cuts in federal spending. The agreement automatically reinstates the debt limit to the amount of debt outstanding on January 2, 2025; defense and nondefense discretionary spending would be subject to caps — allowing for certain exceptions — which would be enforced by sequestration. The legislation also makes several policy changes, including: a rescission of a portion of funds provided to the IRS in the Inflation Reduction Act that cover enforcement activities through 2031; a rescission of $27 billion of budget authority from a broad collection of accounts related to the federal government’s response to the COVID-19 pandemic; an overhaul of permitting reviews for energy projects; and higher age limits for work requirements on certain federal safety net programs. The legislation also codifies pay-as-you-go (PAYGO) requirements for the executive branch. The agreement, in large part, averts significant cuts to federal spending and preserves President Biden’s key climate, infrastructure and health priorities enacted in the first two years of his administration.

On March 9, 2023, President Biden released his fiscal year (FY) 2024 budget request outlining the administration’s priorities, including a nearly 10 percent increase in discretionary spending over the current enacted funding levels. The President’s budget requests a total of $6.9 trillion federal spending for FY 2024. Of this amount, $4.2 trillion would be in mandatory spending and $1.9 trillion would be in discretionary spending. Defense spending would receive an approximately 3 percent increase from FY 2023 for a total of $885 billion in discretionary spending, while non-defense spending would receive a nearly 4 percent increase from FY 2023 levels for a total of $1.02 trillion in FY 2024. The President’s budget request proposes a 7 percent increase over current non-defense spending level and tax increases among other proposed revenue raisers designed to lower the national deficit by $3 trillion over the next 10 years. 

With the midterm elections (mostly) behind us (Republicans won a narrow House of Representatives majority, and Democrats will retain their slim Senate majority), Congress will return to Washington next week to tackle a list of must-pass items before the conclusion of the 117th Congress. Topping the must-do list in this period referred to as the “lame duck” session is funding the government for the remainder of fiscal year 2023 before the current continuing resolution (CR) expires on December 16 and passing the National Defense Authorization Act (NDAA), the annual defense policy bill. Many other issues are likely to be taken up in what is expected to be a very active end of the 117thCongress. In addition to these legislative priorities, the Senate will likely pass the annual tax extenders bill, try to fit in a few other priority bills that have waited all year or are time sensitive, and continue to process federal judicial nominations and agency appointments that need Senate confirmation.

Last week, the United States Congress passed the $280 billion CHIPS and Science Act of 2022 (CHIPS Act)[1] to bolster domestic semiconductor and microchip manufacturing in the United States. The bipartisan legislation will facilitate federal investments in the form of grants, loans, and loan guarantees to eligible entities and create significant business opportunities for companies in the U.S. The legislation also provides funding and new programs to boost advanced workforce training and research and development in a range of scientific and technology areas. The legislation now awaits the signature of President Biden, who hailed its passage as “exactly what we need to be doing to grow our economy right now.”

Just days following the enactment of the omnibus appropriations law for the remainder of the current fiscal year ending on September 30, President Biden released a $5.7 trillion budget proposal for the 2023 fiscal year. The President is seeking from Congress $1.64 trillion in funding for discretionary programs, a nine percent increase from current funding levels. Of that amount, the proposed budget seeks $813 billion in defense spending and $829 billion for non-defense programs.  In contrast, almost two-thirds of the proposed budget – $3.65 trillion – is earmarked for mandatory spending including Social Security, Medicare, and Medicaid. The White House projects the proposal would result in a $1.3 trillion decline in the federal deficit due in large part to new proposed taxes, including a 15 percent minimum tax on corporate profits and a new minimum tax on households worth more than $100 million.

During his first State of the Union address, President Joseph Biden promised continued coordination with allies and pressure against Russia in response to that country’s invasion of Ukraine before pivoting to a domestic agenda and economic recovery plan centered on improving health care for all Americans, rebuilding American manufacturing and infrastructure, and addressing lingering effects of the pandemic. President Biden highlighted accomplishments of his first year in office, such as enactment of the American Rescue Plan and the bipartisan Infrastructure Investment and Jobs Act, and renewed a call for reforming the tax code and immigration system, raising the minimum wage, lowering pharmaceutical prices, subsidizing child care, banning assault weapons and high-capacity magazines, and strengthening voting rights – all major priorities of the Democratic party that have stalled in the closely divided Congress.

Late in the evening on Friday, November 5, 2021, the U.S. House of Representatives passed the $1 trillion Bipartisan Infrastructure Bill (BIB), reauthorizing various surface transportation programs, paving the way for $550 billion in new infrastructure spending over five years, and paying a significant down payment towards the President’s goal of transitioning the transportation sector away from fossil fuels.  The legislation passed the U.S. Senate on August 10, 2021, and now awaits the President’s signature.

Infrastructure reform has been the talk of Washington, D.C., for years. The Trump and the Biden Administrations both made it a high priority, and the issue has now come to a head in Congress. In July, the U.S. House of Representatives passed the $715 billion INVEST in America Act (H.R. 3684) along a largely party-line vote. After months of behind-the-scenes negotiations, the U.S. Senate moved decisively to pass a $1.2 trillion Bipartisan Infrastructure Bill followed by a $3.5 trillion partisan Budget Resolution just prior to starting recess on August 11, 2021. The U.S. House of Representatives is scheduled to return to session on August 23, 2021 to take up both Senate-passed measures. While the prospects for infrastructure reform becoming law are stronger than they have been in years, there are a number of potential pitfalls that could derail the efforts this fall. The following is a summary of the current state of play in this August recess which will soon become an incredibly busy fall.

After 100 days in office, President Joe Biden has made it clear that he is not afraid to go it alone to pursue policy to match his campaign rhetoric and promises. The first 100 days of the administration were marked by a significant number of executive orders, a historic economic stimulus package passed with only Democratic support in Congress, and sweeping proposals that – if enacted – could transform everyday life for a significant number of Americans.

The Biden Administration reportedly is planning a new tax bill to fund the next round of economic initiatives, which could be paid for by increases to both the corporate tax rate and individual rate for high earners. The planned bill likely would fund infrastructure improvements, climate change projects, and assistance for lower income individuals, and would follow the “paying their fair share” initiatives announced by Biden during his campaign. The details and effective dates for these tax changes are yet to be announced and will likely be the subject of intense debate and negotiation.

The American Rescue Plan Act of 2021, or COVID-19 bill, was signed into law by President Biden on March 11, 2021.  It passed the U.S. House originally on February 27, 2021, by a vote of 219 to 212, was amended by and passed the U.S. Senate on March 6, 2021, by a vote of 50 to 49, and the amended and reconciled bill was passed by the U.S. House on March 10, 2021 by a vote of 220 to 211.  The 242-page bill provides a total of $1.9 trillion in economic stimulus related to the COVID-19 crisis and includes stimulus checks for Americans, renewed unemployment benefits, employment related provisions, tax related provisions, education related provisions, child benefits related provisions and provisions related to the COVID-19 pandemic at large and health care in general.  The purpose of this Client Alert is to provide a summary of the health care provisions of the new law.

Today, a group of ten Senate Republicans released a topline summary of a $618 billion counteroffer to President Joe Biden’s initial request that Congress pass a $1.9 trillion COVID-19 relief package. Republican Senators Susan Collins (R-ME), Bill Cassidy (R-LA), Jerry Moran (R-KS), Shelley Moore Capito (R-WV), Lisa Murkowski (R-AK), Rob Portman (R-OH), Mike Rounds (R-SD), Mitt Romney (R-UT), Thom Tillis (R-NC), and Todd Young (R-IN) are urging the Biden Administration and Senate Democrats to abandon potential plans to use the Budget Reconciliation process that would only require a simple majority, and thus no Republican votes, to pass a relief bill and to instead negotiate a bipartisan package. Using the President’s own calls for “unity” among the political parties, the group of Republican Senators hopes to reopen negotiations; however, Senate Majority Leader Charles Schumer (D-NY) swiftly sought to dash those hopes, claiming that the proposal comes nowhere near Biden’s starting point for negotiations.

Today, President Biden signed an executive order and published a presidential memorandum seeking to improve access to the health insurance markets created by the Affordable Care Act, reverse certain Trump Administration healthcare policies, and to protect access to reproductive health services. The action comes on the seventh business day since the administration took office, a day dedicated to addressing broad healthcare issues, as opposed to the more acute pandemic measures that were taken on days one and two. Although not sweeping policy changes, President Biden signals ownership of the Affordable Care Act, which he as President Obama’s vice president shepherded, and rings in a new era of leadership that seeks to strengthen the law rather than repeal and replace it. The following is a summary and link to each of today’s actions:

President Biden signed two executive orders (EO) today to address the economic toll of the pandemic. Among other provisions, the EOs include expanding the Supplemental Nutrition Assistance Program to address food insecurity, accelerating financial assistance to eligible Americans, ensuring worker protections, and beginning the process to require that everyone working for the federal government get a minimum wage of $15 an hour. The following is a brief summary and link to each EO signed today as well as a link to the talking points accompanying the directives:

Following remarks announcing his administration’s National Strategy for the COVID-19 Response and Pandemic Preparedness, President Biden signed an additional 10 Executive Orders (EOs) to operationalize the new administration’s federal response to the pandemic and “[provide] a roadmap to guide America out of the worst public health crisis in a century.” The following is a brief summary and link to each EO signed today:

President Biden’s administration issued 17 new Executive Orders and other announcements today.  The following is a brief summary and link to each by subject matter: