Federal Updates

With the Senate returning right after Labor Day and the House returning a week later on September 13, Congress is gearing up for a frenzied three weeks of legislative activity before recessing for the month of October through election day on November 8. While there is lots to watch for, five items rise to the top of the list. See these and other quick highlights of what is happening within FY23 Appropriations, Health, Defense and Economic Development in this month’s report. We also share some upcoming events, such as our What’s Happening in Washington with the experts on September 7, our MHSRS Report following the September 12-15 conference on military bioscience innovation, and our Nonprofit Advocacy Planning Webinar on October 5.

The Senate just passed the Inflation Reduction Act on a party line vote on August 7, a bold measure to address climate change, corporate taxation, and health care. It is a $3.5 trillion budget reconciliation package that includes everything from electric vehicle tax credits to clean energy manufacturing to investments in environmental justice, a new 15% minimum tax on the income large corporations report to shareholders and a new 1% excise tax on companies’ stock buybacks, and extension of the enhanced federal premium subsidies for Obamacare and new Medicare power to negotiate prescription drug pricing. Also, the Senate released draft appropriations legislation for FY2023 on July 28, however, no Republicans were included in the process, so they are likely to change in the final negotiations with the House at the end of the year. See details in our report and please let me know any questions.

While June 24 marked a historic day with the Supreme Court ruling that the nearly 50-year old Roe v. Wade decision was unconstitutional, other events are shaping Washington, D.C. this summer. The November 8 elections are a big factor as the pundits predict the House to flip to Republican control and possibly the senate as well. And while all agree the recent Supreme Court decisions on the second amendment as well as abortion will impact the elections, no one is sure how as both sides are mobilizing for a big turnout. Meanwhile, the House passed the ARPA-H authorization bill and both chambers passed the most significant gun safety legislation in a generation that is bipartisan and a response to the Robb Elementary School shooting and several other mass shootings. President Biden signed this Bipartisan Safer Communities Act into law on June 25. In addition, gas prices and inflation continue to be top concerns and President Biden responded by asking Congress to authorize a gas tax holiday this summer, which was immediately rejected by many Republicans. Finally, the House and Senate National Defense Authorization Act and all the House appropriations bills moved through the markup process with floor activity planned for July. The Senate is expected to start subcommittee markups before the August recess. See details in our report.

The past few weeks have been among the most disturbing in recent years, raising renewed concerns about how to address mass casualty shootings. Several efforts are underway in Congress, however, partisanship remains a major barrier despite national polling indicating broad support for some gun control measures. Inflation is also top of mind these days. Gas and food prices are soaring, hitting Americans on a daily basis, and the baby formula supplies are far from pre-pandemic levels. Congress returns from the annual Memorial Day recess on June 7th and will work on nomination votes and legislation addressing the health of veterans exposed to burn pits, the annual defense authorization, and the appropriations funding levels for FY2023.

President Biden gave his first State of the Union speech on March 1, focused on Ukraine as well as infrastructure, electric vehicles, gas prices, climate change, manufacturing such as the new Intel semiconductor site in Columbus, child care and paid leave, crime and police training, voting rights, and several health issues: COVID and his “Test to Treat” initiative, opioids, mental health, Cancer Moonshot, and biomedical research through ARPA-H. In the coming weeks, he will announce his FY2023 budget and then Congress can begin work on their 12 appropriations bills.

The year kicked off with more questions than answers: will Congress agree on a final FY2022 appropriations omnibus package or settle for a year-long Continuing Resolution, how will Build Back Better legislation be rewritten and cut back to pass Congress, what key legislation will be enacted by year’s end, and what will the elections in November 2022 mean for the House, Senate and the White House, among others. While much is up in the air, some significant legislative measures are moving through Congress.

On November 15, President Biden signed into law the $1 trillion infrastructure package that passed both chambers with bipartisan support and includes $550 billion in new spending and $450 billion of redirected unused funds. While there was some bipartisan support for the measure, the Build Back Better bill is very partisan, requiring the reconciliation process to pass with a simple majority.

With the November 2 election day, many are watching Virginia to see if the gubernatorial race is a harbinger for the 2022 Congressional elections. It is a dead heat between former Governor Terry McAuliffe (D) and Glenn Youngkin (R). Meanwhile, the House is aiming to vote on the latest version of the Build Back Better Act as soon as this week, despite the fact that progressives and moderates within the Democratic party are still battling

September is proving to be the most stressful month of the new Biden Administration. Not only was pulling out of Afghanistan full of chaos and lost lives, but government shutdown could occur October 1, debt ceiling extension is required by mid-October, appropriations bills are stalled, and efforts to move historic legislation that would reshape the American economy over the next 10 years hit major hurdles in Congress. The sweeping 10-year $3.5 trillion spending plan marks the significant step in Democrats’ drive to expand education, health care and childcare support, tackle the climate crisis and make further investments in infrastructure.