Latest news from Washington, D.C. produced by Total Spectrum/SGA exclusively for members of the Arizona Chamber of Commerce & Industry

More Info: Michael DiMaria | Partner and Vice President of Business Development | 602-717-3891 | mdimaria@totalspectrumsga.com

Happy New Year. Thanks for your interest in Washington, D.C. and thanks for reading This Week in Washington.

Once a year I restate our vision of providing an accurate view into Congressional activity, the Administration鈥檚 actions, and national politics exclusively for members of the Arizona Chamber of Commerce and Industry. My perspective is as of a Republican, as is that of .  provides his perspectives as a Democrat.

This week鈥檚 Heard on the Hill is a benchmark report on where Republicans and Democrats are as we start a reelection year. It focuses on Senator John Thune鈥檚 decision to run for reelection, and how this election year could have been impacted if he had announced his retirement.  Our friend  provides his monthly Defense Update, and  shares the schedule of hearings and happenings on Capitol Hill. 

We鈥檒l be back in two weeks for the next issue of This Week. Stay well.

Total Spectrum Managing Director

Heard on the Hill

By n, Total Spectrum Managing Director

Happy, Healthy, and Successful 2022.

I greatly enjoyed being in Arizona last week and attending the Arizona Chamber鈥檚 Legislative Forecast Luncheon. Let鈥檚 start the year in Washington by reviewing where we are with about 10 months until the mid-term election.

Democrats have their backs against the wall. President Biden鈥檚 agenda is stuck in the mud. Majority Leader Schumer can talk about breaking the Senate鈥檚 filibuster rules, but he doesn鈥檛 have the votes in his own caucus. My guess is that Democrats will have to stop swinging for home runs and start hitting for singles and doubles. Small victories are still victories. We鈥檒l see how that develops.

Republicans start the year with momentum.  The off-year election generally bounces against the President鈥檚 election鈥� and 2022 is unlikely to be an exception. 

The House looks like it will go Republican in November. My old friend Charlie Cook at the Cook Political Report with Amy Walter said in a January 6, 2022  that 鈥渋t would seem to take divine intervention, Republican self-destruction, or both to save the House Democratic Majority.鈥� The big factors are Congressional redistricting, the number of Democratic incumbents retiring, the economy and inflation, and the President鈥檚 current polls. It has never been fun serving in the House of Representatives as a member of the minority party, and the number of Democratic Congressmen who now want to spend more time with their families tells the whole tale.

The Senate is currently 50-50, so it won鈥檛 take much of a wave election to knock the status quo off kilter.

Another great friend of mine is Nathan Gonzales, the publisher of Inside Elections. Nathan said in his January 7, 2022 report that 鈥溾�enate Democrats have no room for error. They probably can鈥檛 afford to lose even one of their own seats in a challenging environment where President Biden鈥檚 job approval rating has leveled off at mediocre.鈥� Nathan also pointed out the historical trend in off-year elections, noting that there have been 27 midterm elections since 1913, when the 17^th Amendment was ratified which allowed for the direct election of Senators. The President鈥檚 party gained Senate seats in six off-year elections, broke even in two, and lost seats in 19.

Senator John Thune 鈥� some background, and a personal disclaimer.

It goes without saying that the President and the Democratic Congressional leadership are looking for ways to start bending the curve and move momentum in their direction. Republican leaders have been working to retain their incumbents and put themselves in position to win in November 鈥� so everyone on Capitol Hill over the past five or six months has wondered if Senator John Thune (R-SD), the Republican Whip 鈥搕he second most senior Senator in the Republican caucus 鈥� was going to retire or run for reelection.

John Thune grew up in Murdo, South Dakota, a wide spot on a narrow road. He was a bright student who was also a great athlete, and he was marked for success in his hometown. John earned a bachelor鈥檚 degree at Biola University and later a master鈥檚 degree in business administration at the University of South Dakota. John got his start in politics as a staff member for U.S. Senator Jim Abdnor (R-SD), who was defeated for reelection by Tom Daschle, who eventually became the Senator Majority Leader. 

John Thune went on to serve in various key roles, including a presidential appointment with the U.S. Small Business Administration, the executive director of the South Dakota Republican Party, and then the executive director of the South Dakota Municipal League. John Thune became Congressman Thune in January 1997 and won reelection in 1998 and 2000.

He made a pledge to only serve three terms in the House of Representatives, so John decided to challenge Tim Johnson, South Dakota鈥檚 junior Senator in 2002. John lost that race by less than 1,000 votes 鈥� a race where I was the fundraising consultant. John was then asked to consider the near impossible task in 2004 of defeating a sitting Senate Majority Leader. John Thune did indeed defeat Senator Tom Daschle in a race that probably went better than 2002 because I was not involved. Senator Thune glided to reelection victories in 2010 and 2016.

Senator Thune has previously served as Chairman of the Senate Commerce, Science, and Transportation Committee, Chairman of the Senate Republican Policy Committee, and Chairman of the Senate Republican Conference. He was elected by his peers in 2020 to be the Republican Whip, the number two position in Republican Senate Leadership.

Senator Thune, Senator John Barrasso (WY), and Senator John Cornyn (TX) are the conventional choices to become Republican Senate Leader when Mitch McConnell retires. But Senator Thune was very non-committal all last year about whether he wanted to run for reelection in 2022 鈥� a run he would surely win in a walk.

I was often asked in 2021 for my opinion whether he would stay in the Senate.  My reply was consistent 鈥� he will run because Senator Thune has a genuine desire to serve. But a great number of people became concerned as summer turned to fall and the Senator started to look pained and unhappy. Leader McConnell made a public statement in December that he wanted Senator Thune to continue in the Senate, which meant that the Leader and other Republican Senators were putting real pressure on him. 

Last Saturday Senator Thune announced that he would indeed stand for reelection in November. 

South Dakota is solidly red, so the seat would not have been in peril if Senator Thune had retired. But political waves are built on good candidates, great timing, a dash of good fortune, and momentum. There鈥檚 little question Senator Thune leaving the Senate would have created a speed bump for that momentum.

2022 so far has the potential to be a strong Republican cycle. 

Defense Update

By Al Jackson, Total Spectrum Strategic Consultant

After months of debate, the Senate voted in December 88-11 to pass the National Defense Authorization Act (NDAA), which authorizes $740 billion in spending for the Department of Defense in Fiscal Year 2022. This will be the 61^st consecutive year this legislation has passed both Houses of Congress and sent to the President for signature. 

The legislation contains an annual 2.7% pay raise for members of the armed services and increases spending at a level $25 billion more than the administration鈥檚 request. The measure also overhauls how certain sexual misconduct crimes are prosecuted under military rules.  To ensure passage, the negotiators of the final version dropped language that would have added women to the Selective Service System for potential future conscription. The language was evident in both NDAA versions in the House and Senate but was deemed too controversial for the final bill.   

To the dismay of some, including Senator Kirsten Gillibrand (D-NY), the bill does not go far enough in reforming how the military handles serious crimes. Senator Gillibrand voted against final passage in protest of the omission of stronger language. Instead, in the final bill, the Department of Defense would be required to create an independent prosecutorial office within each service to handle serious crimes, including rape, sexual assault, murder, manslaughter, and kidnapping. Senator Gillibrand vowed to pursue this topic again in the FY2023 NDAA bill, as she and others desire for all serious non-military crimes to be taken out of the traditional military chain of command. 

Because of the additional $25 billion, the legislation includes authorization for 12 additional Boeing F/A-18 Super Hornets for the Navy. It added five more Boeing F-15EX jets above 12 already planned, and 13 ships total including two attack submarines and two destroyers, resulting in five more than the White House鈥檚 budget plan. The NDAA also authorizes 85 Lockheed Martin F-35 aircraft. As it relates to military end strength, the number of Army soldiers would drop by 900 to 485,000 compared to this year鈥檚 levels and the Marine Corps would cut its troop numbers by 2,700 to 178,500. The Navy鈥檚 end strength total would drop by about 900 to 346,920, which results in approximately 700 more sailors than the White House requested. The Air Force would see a decrease of about 4,200 personnel to 329,222, which is 1,000 more airmen than the administration requested. The Space Force end strength would be set at 8,400 guardians. 

One provision provided for a new 鈥淏asic Needs Allowance鈥� to give additional financial support to some low-income service members.  The legislation also has language to provide 12 weeks parental leave to all service members following the birth or adoption of a child, standardizing the rule across the services.  

Of major significance, the bill authorizes $2 billion above the administration鈥檚 request for the Pacific Deterrence Initiative, which is designed to bolster the military鈥檚 position in the region and deter China, for a total of $7.1 billion. Most of this initiative involves the leadership of the United States Marine Corps. The bill authorizes $4 billion for the European Deterrence Initiative, which is designed to deter Russia by bolstering cooperation with Eastern European allies, an increase over the administration鈥檚 $3.4 billion request.  Lawmakers added $50 million to the administration鈥檚 request for security assistance for Ukraine for a total of $300 million. 

Congress approved in the NDAA the retirement of more than 160 legacy aircraft for the Air Force, thereby freeing up money for the service to invest in new technologies, but once again, Members stifled the service鈥檚 hopes to retire A-10 Warthogs.  The Air Force will be allowed to retire all the aircraft it proposed divesting of in its FY22 budget request, including the 47 F-16C/Ds, 48 F-15C/D Eagles, four E-8 JSTARS ground surveillance aircraft and 20 RQ-4 Global Hawk Block 30 surveillance drones. 

Congress did impose significant restrictions on the F-35 program, per planned procurement of the jet by the Air Force, Navy and Marine Corps unless sustainment costs meet the services鈥� targets. The NDAA would also create an Afghanistan War Commission to review the nearly two decades of war there and review of the failed departure, which resulted in 13 service members killed and over $85 billion of modern weaponry left behind.  

In unrelated news, Boeing announced in late December that it had suspended its requirement for U.S.-based employees to be vaccinated against COVID-19. In an internal post to employees, Boeing indicated it made the decision after reviewing several recent developments that thwarted the federal government鈥檚 vaccine mandate effort for federal contractors. The Boeing decision was based on a U.S. district court in Georgia decision on Dec. 7 to invoke a preliminary injunction that would prevent the vaccine mandate for contractors required in executive order 14042 from taking effect.  This followed another injunction issued by a federal court in Kentucky on November 30, halting a national vaccine mandate for health care workers. As a result, on December 9, the Defense Department issued a memo suspending the enforcement of the mandate to comply with both court orders until further notice. Other defense contractors, both small and large, are doing the same as the Boeing Company. 

Congressional Calendar

Tuesday, Jan. 11

• 10 a.m. Senate Energy and Natural Resources Committee  – Hydropower Opportunities and Challenges.
• 10 a.m. Senate Judiciary Committee  – Domestic Terrorism threat 1 year Later.
• 10 a.m. House Appropriations Committee  – US Capitol Security Since January 6
• 10 a.m. Senate Armed Services Committee and Senate Foreign Relations Committee Briefing – US Policy on Afghanistan
• 10 a.m. House Oversight and Reform Committee  -Federal Cybersecurity Reform.
• 10 a.m. House Armed Services Subcommittee on Readiness  – Red Hill Bulk Facility Storage: The Current Crisis, the Response and the Way Forward.
• 10 a.m. Senate Foreign Relations Committee Closed  US Policy on Afghanistan. 

Wednesday, Jan. 12

• 9 a.m. Senate Foreign Relations Committee  – pending nominations
• 9 a.m. Senate Judiciary Committee  鈥� pending nominations.
• 9:30 am. Senate Foreign Relations Committee  – pending nominations.
• 10 a.m. House Small Business Committee  – SBA Management/Performance Challenges
• 10 a.m. House Agriculture Committee  – Electric Vehicle Implications for Agriculture/Rural America
• 10 a.m. House Transportation and Infrastructure Subcommittee on Water Resources  – Water Resources Development Act Proposals
• 10 a.m. House Appropriations Committee  – Continuing Resolution Impacts on the Department of Defense and Services.
• 2:30 pm. Senate Indian Affairs Committee  鈥� Closing the Digital Divide in Native Communities Through Infrastructure Investment.
• 2:45 pm. Senate Environment and Public Works Committee  鈥� USACE investment Implementation of Water Infrastructure Projects, Programs and Priorities. 

Thursday, Jan. 13

• 9 a.m. Senate Judiciary Committee  – Pending Nominations
• 9:30 am Senate Armed Services Committee  – Pending Nominations
• 10:45 am. Senate Homeland Security and Governmental Affairs Committee  – Civil Rights Cold Case Records Review Board Nominations

The post This Week in Washington appeared first on 探花精选.

Latest news from Washington, D.C. produced by Total Spectrum/SGA exclusively for members of the Arizona Chamber of Commerce & Industry

More Info: Michael DiMaria | Partner and Vice President of Business Development | 602-717-3891 | mdimaria@totalspectrumsga.com

Thanks for your interest in Washington, D.C., and thanks for reading This Week in Washington. 

Our goal is to provide you with all the information you need in a timely manner on the issues that are important to you. Our goal is also to publish on a regular schedule. Most of the time we can achieve both goals鈥� but this week we simply can鈥檛 catch lighting in a jar.

Amy Walter, who recently took over the Cook Political Report, said this week that 鈥渢his is the most consequential week of President Biden鈥檚 young Presidency,鈥� 鈥� and she was correct.  Today is the first day of the new fiscal year, and as Congress had not completed their work on this fiscal year鈥檚 budget, they passed a continuing resolution this week to continue funding at current levels until December 3. Congress will have to raise the debt ceiling before mid-October. The House of Representatives tried to vote this week on the Bipartisan Infrastructure Framework, but moderate Democrats and progressives couldn鈥檛 agree on a way forward. There is also work going on in both the Senate and the House on the proposed 鈥榮oft鈥� infrastructure bill currently priced at $3.5 trillion that Democrats want to pass using the budget reconciliation process.

I had dinner with a Senior Republican Senator this week, and he said that the smart money would probably bet that a 鈥榮oft infrastructure bill鈥� of about $2 trillion would pass the Senate and a bipartisan traditional infrastructure bill will eventually pass the House. But he added that there is a 20% chance that the wheels will fall off the wagon and the President鈥檚 agenda goes into the ditch.

Taking all of this into account, you鈥檒l understand why we adjusted our schedule this week to give  enough time to accurately report on all the week鈥檚 events, including the very latest on the 鈥楳anchin-Sinema vs. Progressives鈥� tug-of-war. 

罢辞诲补测鈥檚&苍产蝉辫;This Week includes Patrick鈥檚 summary and analysis of the week鈥檚 crazy events in his Washington Whispers.  writes about a Ways and Means proposal that is not good news for many small businesses, and  updates on all things defense.  summarizes two recent Senate hearings 鈥� one on CARES Act Oversight of the Treasury and Federal Reserve, and another reviewing the administration of laws under jurisdiction of the Federal Energy Regulatory Commission.

We鈥檙e already planning the October 13^th issue, which will include the next Total Spectrum Spotlight.

Stay well.

, Managing Partner

Washington Whispers

By Patrick Robertson, Total Spectrum Strategic Consultant

This week, Democrats in Washington took one step forward, two steps back, no real steps, or something in between, depending on who is analyzing the actions of the last few weeks. Let鈥檚 start with the facts, as we always do in Washington Whispers. 

This week, Congress passed:

• A nine-week continuing resolution, funding the federal government through December 3. 

However, the following items remain hanging out there and unresolved:

• The $1.2 trillion bipartisan infrastructure package;
• The $3.5 trillion Biden social infrastructure proposal that Senate Democrats want to pass under the budget reconciliation process;
• The lifting or extending of the debt ceiling, which is set to expire in mid-October; and
• Other policy priorities, like immigration reform. 

We have arrived at the make-or-break moment for the Biden agenda in Congress. If negotiations take much longer there will be little or no chance to move something big before next November鈥檚 elections. After the events of Thursday, the president has achieved a COVID relief package but has not yet been able to strike a final deal on renewed infrastructure package that passed the Senate in August with a 69-30 vote. Progressives in the House have refused to move forward on the infrastructure bill until they know more about the fate of their priority 鈥� the multitrillion-dollar reconciliation package. 

The President ran on broad social promises like immigration reform, government-supported childcare, higher taxes, election reform, better health care, and more support for higher education. None of those things will happen if the Senate does not come to an agreement on the reconciliation package. 

The President and a Democratic-controlled Congress hit the ground running, passing the American Rescue Plan with COVID relief, COVID spending, and other short-term priorities like state and local government relief. Then they turned their attention to infrastructure and moderate Senators ran roughshod over the House, cutting a deal with the White House on what has become known as the Bipartisan Infrastructure Framework (BIF). 

House progressives started to howl once the infrastructure bill passed the Senate and said that they would only support the infrastructure bill if the House agreed to move the President鈥檚 full agenda at the same time. Moderate Democrats then dug in their heels and got an understanding from the Speaker that the infrastructure bill would have a vote in the House on September 27, and without a vote moderate democrats refused to support the $3.5 trillion reconciliation package. This sounds a lot like two grade school children fighting over playground equipment to me. 

The standoff was supposed to end this week when the House, almost two months after the Senate, was scheduled to vote on the BIF. Progressives stood up to say, 鈥淣ot so fast,鈥� as it became clear that Senate moderates scoffed at their $3.5 trillion reconciliation package. As a result, the infrastructure bill hangs in the balance. Senate Democratic moderates have said, 鈥渆lect more progressives鈥� if you want more progressive policies, and Washington is at a standstill. 

The question now is how can the President shake his agenda loose of the Democratic gridlock that has been gripping it for months? 

News broke this week that Senator Joe Manchin (D-WV), who gets more press coverage than really anyone in Congress these days, offered Senate Majority Leader Schumer a framework for a deal in July. Senator Manchin鈥檚  included a corporate tax rate increase, an increase in the capital gains rate, a cap on spending at $1.5 trillion and oversight over climate policy for the coal-state Senator. The following months of silence indicate it was not well received. 

At the same time, Senator Kyrsten Sinema (D-AZ) has said that climate change policy is key to her vote and that she is not interested in major tax increases. Climate policy does not play well with Senator Manchin. 

When you take these two positions of cutting back the $3.5 trillion package and juxtapose them against Senator Bernie Sanders鈥� (I-VT), who said that $3.5 trillion in spending is already a compromise, you are hard pressed to understand how an agreement can be reached. 

It鈥檚 clear that the President and Democratic Congressional leaders are going to have to get very serious about compromising if they are to move the central pillars of their agenda. 

Senate liberals have already had their hopes dashed on a reconciliation move to do immigration reform when the Senate Parliamentarian ruled it would not be fit under the Senate鈥檚 Byrd Rule. Democrats now need to see if they can find any common ground within their 50-member Senate caucus to move something forward that will garner support from the center and the left.  

Democrats also need to find a way to lift or suspend the debt ceiling, the statutory limit for borrowing money by the federal government. While there are several kooky ideas out there on how to do it 鈥� all the way from minting a $4 trillion coin to deciding the debt ceiling is unconstitutional 鈥� it is still most likely Congress will simply extend or suspend the limit as it has done dozens of times in the last two decades. The idea that our country could default on our debt is just unacceptable. There is a whole separate column to be written on the need to lift or suspend the debt ceiling and the related politics, but we will save that for next month. 

In the meantime, keep watching the debate over infrastructure and reconciliation and watch for that make-or-break moment – which Democrats face imminently – when they must decide whether doing nothing is preferable to doing something less than what they want. I predict that once this reckoning happens, they will move on both the infrastructure bill and a reconciliation bill in the neighborhood of $2 trillion.

The Democrats’ Proposed Cap on the Small Business Deduction Will Hurt Over 900,000 Small Businesses

By Congressman Erik Paulsen, Total Spectrum Strategic Consultant

Congressman Richard Neal (D-MA), Chairman of the House Ways and Means Committee, has proposed in the House Democrat budget reconciliation legislation to severely limit Section 199A, the Small Business Deduction. This deduction is the centerpiece of the pro-small business tax reforms adopted in the Tax Cuts and Jobs Act passed into law in 2017. 

According to Small Business Administration (SBA) figures last updated in 2019, the United States has 30.7 million small businesses which employ 40.7% of the private workforce. Depending on the industry, the SBA defines a small business as one that has fewer than 1,500 employees and a maximum of $38.5 million in average annual receipts.

The vast majority of small businesses are organized as pass-through entities (partnerships, S corporations, LLCs, and sole proprietorships), not as C corporations. The owners of these firms pay individual income tax on income derived from their business. 

Section 199A specifically covers these pass-through entities and allows small business owners the ability to claim up to a 20% deduction on their share of the business鈥檚 income. 

Chairman Neal鈥檚 proposal would cap the deduction at $500,000. The Joint Committee on Taxation estimates that capping this deduction would raise just over $72 billion over ten years. It would also devastate many small businesses that found this deduction to be a lifeline during the pandemic, or who wanted to invest in new jobs and equipment. 

Another consequence is that many small businesses would now be forced to decide whether to structure themselves based on tax considerations rather than business considerations. This is because the owners of pass-through small businesses are taxed at a maximum tax rate of 37% while a C corporation is taxed at a maximum tax rate of 21%, a significant 16% difference. The small business deduction was adopted to ensure that business owners would not be penalized based on their choice of business entity. In other words, whether to operate as a C corporation or a pass-through entity should be determined by business considerations and not tax rates. 

As a result of Chairman Neal鈥檚 proposed repeal of Section 199A, over 900,000 small businesses that currently benefit from the 20% deduction could see their top tax rate skyrocket from 29.6% to 46.4%. 

That鈥檚 because the proposed legislation increases the top individual marginal tax rate from 37% to 39.6%. It also lowers the top bracket from $523,601 per individual and $628,301 for couples filing jointly to $400,001 per individual and $450,001 for couples filing jointly. The bill adds a new 3% surtax that includes business income and imposes the 3.8% net investment income tax on active business income. These tax changes would create a top 46.4% federal effective tax rate on passthrough business income before considering state and local taxes. 

The effective rate is 17.6% higher than anything being proposed for corporations. The rate does not even include the expansion of the Self Employment Tax with which small businesses would be burdened. 

Many small business associations and chambers of commerce are actively opposing the proposed cap on the small business deduction and are contacting members of their Congressional delegation.

Defense Update

By Al Jackson, Total Spectrum Strategic Consultant

The House of Representatives earlier this month approved their version of the National Defense Authorization Act (NDAA) for Fiscal Year 2022. The bill authorizes $740 billion to be spent on defense, providing $24 billion more than what the administration requested. It remains to be seen if the House and Senate Defense Appropriations Subcommittees will follow suit, however, this legislation portends more spending on defense. 

The budget policy bill, passed by a bipartisan 316 to 113 votes, includes a 2.7% pay raise for troops starting in January, sweeping changes to military sexual assault prosecutions, and language requiring women for the first time to register for the military draft. The bill also contains several provisions related to Afghanistan, as lawmakers specifically address the debacle that resulted from the recent military withdrawal. 

The House version of the NDAA mirrors the amount authorized by the Senate Armed Services Committee version approved earlier this summer and marks a victory for Republican lawmakers who indicated the military budget proposed by the administration was insufficient to counter threats like a growing Chinese military and worldwide terrorism. 

House liberal progressives and House Armed Services Committee Chairman Adam Smith (D-WA) had argued for lower spending levels after years of big defense plus-ups under President Donald Trump, however, the House overcame those objections by voting down an attempt to undo the $24 billion add. The vote on that amendment was 142 in favor of the cut and 268 for the additional $24 billion. An amendment to impose a broad 10% cut was also defeated, 332-86. 

Key parts of the House NDAA are as follows:

• The bill would create a 12-member bipartisan commission to investigate what happened in Afghanistan and whether there were intelligence missteps that led to America鈥檚 rapid evacuation of the country. The legislation would also require annual reports on the administration鈥檚 handling of long-distance counter-terrorism efforts now that there are no forces on the ground.
• It would fund 13 new ships for the Navy, including three new Arleigh Burke-class destroyers, and includes money for 85 F-35 fighters.
• Funding for the Ground-Based Strategic Deterrent, the next-generation ICBM, was protected against an effort from progressives to defund the program and keep the Minuteman III ICBMs working until 2040. 
• The House language includes a 2.7% pay raise for members of the military and sweeping changes to the sexual assault justice system. It also would require women to register for the draft for the first time, something expected to be backed fully in the Senate.
• It also includes language that would require any Defense Secretary nominee who previously served in uniform to have been retired for a full 10 years, rather than the current requirement of seven years. This comes after back-to-back administrations sought waivers to clear Jim Mattis and Lloyd Austin to serve as the top civilian at the Pentagon, neither of whom had cleared the seven-year period at that time. 

Procurement additions include:

• Aircraft: $394 million to buy four additional KC-130Js for the Navy and Marine Corps, $340 million for two additional P-8 Poseidon for the Navy, and $212 million for nine additional UH-60 Blackhawks for the Army National Guard.
• Combat vehicles: $234 million for Abrams tank upgrades, $183 million for HMMWV modifications, $139 million for Stryker upgrades, and $120 million for Joint Light Tactical Vehicles. The addition also covers $350 million more for missiles and $553 million to strengthen cybersecurity priorities. 

Of note are the recent remarks from Frank Kendall, Secretary, United States Air Force, pertaining to the retirement of older, legacy systems such as the A-10 Warthog aircraft. These legacy aircraft are stationed at Davis-Monthan Air Force base in Tucson. Secretary Kendall implored Congress in his remarks to allow the USAF to retire these legacy platforms to free up funding for next-generation planes, drones, and weapons. 鈥淚 have one request of the Congress: help us to focus on the one fight 鈥� the strategic competitive fight 鈥� we must win,鈥� Kendall said during a speech at the Air Force Association鈥檚 Air, Space and Cyber conference.  

In recent years, the service has shied away from seeking to retire full fleets of aircraft, as was common practice during the Obama administration when the Air Force unsuccessfully tried to divest its U-2 spy planes, RQ-4 Global Hawk surveillance drones, and A-10 Warthog attack planes. At the time, leaders from the Pentagon indicated the Budget Control Act caps made it impossible to modernize the force with next-generation aircraft while at the same time hanging on to aging planes that are expensive to maintain. Over the past two years, the Air Force has put forward budget proposals that called for retiring portions of certain aircraft inventories 鈥� several squadrons of A-10s, the oldest model Global Hawks, and dozens of aging KC-10 and KC-135 tankers. The retirement of these aircraft will impact the viability and economies associated with Davis-Monthan Air Force Base.  

According to Secretary Kendall, these older fleets are 鈥渃onsuming precious resources we do need for modernization. While it鈥檚 understandable that lawmakers try to protect their districts鈥� economies, local political interests are coming at the expense of national security priorities.鈥� 

Kendall further adds, 鈥渋t was a frequent occurrence during my confirmation process to have a senator agree with me about the significance of the Chinese threat, and in the same breath to tell me that under no circumstances could the 鈥� take your pick 鈥� C-130s, A-10s, KC-10s, [or] MQ-9s in that senator鈥檚 state be retired, nor could any base in his or her state ever be closed or lose manpower that would cause impact to the local economy.鈥� 

COVID-19 pandemic protections for defense contractors would be made permanent under the House鈥檚 version of NDAA. The safeguards, originally codified in Section 3610 of the , allowed the Pentagon to reimburse contractors for paid leave if employees aren鈥檛 working due to the COVID-19 pandemic. Congress has had to act several times to renew the reimbursement authority, currently set to lapse after Sept. 30. The permanent protections are based on the , authored by Representatives Rob Wittman (R-VA) and Anthony Brown (D-MD), which proposed expanded coverage for other emergencies, like hurricanes and floods. However, the bill passed out of committee with narrower, more pandemic-specific language. 

Industry groups are pressing for the broader emergency powers to be included in the final NDAA for 2022 and for a short-term extension in the meantime. Both the National Defense Industrial Association and Professional Services Council said extending and expanding the 3610-reimbursement authority is their top legislative priority. Major defense contractors and their workers, such as Boeing, Raytheon, and Lockheed Martin will benefit from these provisions. 

Congress will once again not complete their work as it relates to Fiscal Year 2022 appropriations, most likely relying on a continuing resolution (CR) to keep the government funded until December 3, 2021. As of time of print, the Republicans in the Senate are blocking the CR, as it also contains a controversial provision that would raise the debt limit. A resolution will be needed to avert a government shutdown on September 30 at midnight. 

Hearing Report

By Ramona Lessen, Total Spectrum Executive Director

Senate Banking, Housing and Urban Affairs Committee Hearing on CARES Act Oversight of the Treasury and Federal Reserve: Supporting an Equitable Pandemic Recovery

Tuesday, September 28; 10:00 a.m. 

To view a livestream of the hearing please . 

Opening Statements:

Senator Sherrod Brown (D-OH)

Chairman

听

Senator Patrick J. Toomey (R-PA)

Ranking Member

听

Witnesses:

The Honorable Janet L. Yellen

Secretary

Department of the Treasury

听

The Honorable Jerome H. Powell

Chairman

Board of Governors of the Federal Reserve System

Senate Energy and Natural Resources Committee hearing

Full Committee Hearing to Review Administration Of Laws Within FERC’s Jurisdiction

September 28, 2021; 10:00 AM

To View a livestream of the hearing please .

Opening Statements:

Senator Joe Manchin (D-WV)

Chairman

听

Senator John Barrasso (R-WY)

Ranking Member

听

Witnesses:

The Honorable Richard Glick

Chairman

Federal Energy Regulatory Commission

The Honorable Mark C. Christie

Commissioner

Federal Energy Regulatory Commission

The Honorable Allison Clements

Commissioner

Federal Energy Regulatory Commission

The Honorable James Danly

Commissioner

Federal Energy Regulatory Commission

Japan, China lead foreign holders of U.S. federal debt

A majority of Americans 65 and older have been fully vaccinated

What you need to know about worker shortages

Why four budget issues are causing so many problems on Capitol Hill

What you need to know about free community college

The Consumer Price Index went up in August — especially for gasoline

Congressional Calendar

All times EDT

Monday, September 27

• 2 p.m. House Rules Committee  to consider the PUMP for Nursing Mothers Act, the Protect Older Job Applicants Act and the Family Violence Prevention and Services Improvement Act.
• 10 a.m. House Foreign Affairs Asia, the Pacific and Nonproliferation Subcommittee  on strengthening U.S. ties with Southeast Asia.

Tuesday, September 28

• 9:30 a.m. Senate Armed Services Committee  to examine the Afghanistan withdrawal. Defense Secretary Lloyd Austin, Chairman of the Joint Chiefs Mark Milley and U.S. Central Command Commander Kenneth McKenzie testify. Part of this hearing will be closed to the public. 
• 10 a.m. House Financial Services Diversity and Inclusion Subcommittee  on increasing economic opportunity for 鈥渏ustice-involved individuals.鈥� 
• 10 a.m. House Judiciary Antitrust, Commercial and Administrative Law Subcommittee  on antitrust reforms.
• 10 a.m. House Economic Disparity and Fairness in Growth Select Committee on the effects of globalization on U.S. economic disparities. 
• 10 a.m. House Science Oversight Subcommittee virtual  on social media data. 
• 10 a.m. House Transportation and Infrastructure Highways and Transit Subcommittee  on ferries.
• 10 a.m. Senate Banking Committee  to examine CARES Act oversight of the Treasury and Federal Reserve. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell testify. 
• 10 a.m. Senate Energy and Natural Resources Committee  on the jurisdiction of the Federal Energy Regulatory Commission. FERC Chair Richard Glick testifies, among others.
• 10:15 a.m. House Education and Labor Civil Rights and Human Services Subcommittee virtual  on models for preventing Covid-19. 
• 2 p.m. House Foreign Affairs Africa, Global Health and Global Human Rights Subcommittee virtual  on conflict in Africa. 
• 2 p.m. House Modernization of Congress Select Committee hearing on supporting agencies. 
• 2:30 p.m. Senate Homeland Security Spending Oversight Subcommittee  to examine existing resources and innovations needed to replace legacy IT. 
• 2:30 p.m. Senate Judiciary Constitution Subcommittee  on toxic conservatorships.

Wednesday, September 29

• 9:30 a.m. House Homeland Security Committee virtual  on the state of the Transportation Security Administration 20 years after 9/11. TSA Administrator David Pekoske testifies, among others. 
• 10 a.m. House Judiciary Committee  of pending legislation, including H.R. 2891 (117), the Preserve Access to Affordable Generics and Biosimilars Act. 
• 10 a.m. House Financial Services Consumer Protection and Financial Institutions Subcommittee  on the future of banking.
• 10 a.m. House Agriculture Conservation and Forestry Subcommittee  on wildfire response and mitigation efforts. 
• 10 a.m. House Small Business Underserved, Agricultural and Rural Business Development Subcommittee  on sustainable forestry as it related to climate change. 
• 10 a.m. House Science Committee members day .
• 10 a.m. House Oversight Civil Rights and Civil Liberties Subcommittee  on violent white supremacy. 
• 10 a.m. Senate Commerce Committee  on protecting consumer privacy.
• 10 a.m. Senate Homeland Security Committee  on worsening natural disasters.
• 10 a.m. Senate Judiciary Committee  on Texas鈥� abortion law.
• 10:15 a.m. House Education and Labor Early Childhood, Elementary and Secondary Education Subcommittee virtual  on best practices for reopening schools. 
• 10:30 a.m. House Energy and Commerce Oversight Subcommittee  on revitalizing the chemical safety board. 
• 2 p.m. House Coronavirus Crisis Select Committee  on infrastructure updates in state and local public health departments.
• 2 p.m. Senate Foreign Relations Committee virtual  on pending nominations.

Thursday, September 30

• 9 a.m. Senate Judiciary Committee  to consider the nomination of Rachael Rollins to be U.S. Attorney for Massachusetts.
• 1 p.m. House Foreign Affairs  of pending legislation.
• 9:30 a.m. Senate Armed Services Committee  on Afghanistan.
• 10 a.m. House Financial Services Committee  on oversight of the Treasury Department and Federal Reserve鈥檚 pandemic response. 
• 10 a.m. House Oversight Committee  on abortion rights and access.
• 10 a.m. House Transportation and Infrastructure Committee  on the federal government鈥檚 Covid-19 response.
• 10 a.m. House Small Business Committee  on providing capital to employee-owned businesses.
• 10 a.m. Senate Banking Committee  on pending nominations to positions at the U.S. Export-Import Bank.
• 10 a.m. Senate Health, Education and Labor Committee  on school reopenings. Health and Human Services Secretary Xavier Becerra and Education Secretary Miguel Cardona testify. 
• 10 a.m. Senate Foreign Relations Committee  on pending nominations.
• 10:15 a.m. House Education and Labor Subcommittee on Higher Education and Workforce Investment  – Protecting Students and Taxpayers: Improving the Closed School Discharge Process.
• 10:30 a.m. Senate Commerce Subcommittee on Consumer Protection, Product Safety and Data Security  鈥� Protecting Kids Online: Facebook, Instagram, and Mental Health Harms.
• 10:30 a.m. House Energy and Commerce  鈥� A Level Playing Field: College Athletes鈥� Rights to Their Name, Image and Likeness.
• 2 p.m. House Homeland Security Subcommittee on Oversight, Management and Accountability  鈥� 20 Years after 9/11: Transforming DHS to meet the Homeland Security Mission.

The post This Week in Washington appeared first on 探花精选.

Latest news from Washington, D.C. produced by Total Spectrum/SGA exclusively for members of the Arizona Chamber of Commerce & Industry

More Info: Michael DiMaria | Partner and Vice President of Business Development | 602-717-3891 | mdimaria@totalspectrumsga.com

Thanks for your interest in Washington, D.C., and thanks for reading This Week in Washington. 

There was a flurry of last-minute activity in the Senate over the last few days, and I summarized what happened this week 鈥� and what happens next 鈥� in this week鈥檚 Heard on the Hill.

My colleague  was a member of the House Ways and Means Committee and served as Chairman of the Joint Economic Committee. He has written a series of articles this year about the economy, and his latest is about President Biden鈥檚 proposed 15% global tax and how it could hurt American workers.

We鈥檙e going to kick back for a few days, and then start planning the next editions of This Week and Total Spectrum Spotlight. Trust, however, that we鈥檒l provide you with immediate updates and analysis on anything you need to know between now and then.

Stay cool and stay safe.

, Managing Partner

Heard on the Hill

By Steve Gordon, Total Spectrum Strategic Partner

One of the best 鈥� and most accurate 鈥� lines of the 40-plus years I鈥檝e been in Washington is that staff and consultants never want to stand in the way of Senators and Congressmen heading to Washington National Airport on the way home for August recess. 

Washington National Airport has since been renamed to Ronald Reagan Airport, but the rest of that line is still correct. 

The Senate鈥檚 August recess was tentatively scheduled to begin late last week. But Majority Leader Schumer told his Senate colleagues that they would stay in Washington until the Bipartisan Infrastructure Framework bill passed and the budget resolution for the next fiscal year was approved.  

Both these bills passed, and the Senate left for the airport early this morning. They joined members of the House of Representatives, who had already left town for their August recess.  

Infrastructure Bill

It is often said that spending money on infrastructure is like the old Irish saying: everybody wants to go to heaven, but nobody wants to die. Everybody wants new roads, new bridges, and more infrastructure like broadband, but nobody wants to pay for them 鈥� and the best example is the highway gas tax, which hasn鈥檛 been raised since the 1970鈥檚 and never was indexed to account for inflation. 

We must give a lot of credit to the Gang of 10, but especially their leaders, Senators Kyrsten Sinema (D-AZ) and Rob Portman (R-OH), for getting this legislation over the goal line. They put the gang together, comprised of five Democrats and five Republicans, and then got buy-in from 10 additional Senators. They also got buy-in from President Biden, who campaigned on rebuilding the bipartisan legislating process, and who from all indications negotiated with both Senators in good faith. 

Passing this bill was never a forgone conclusion. Committee Chairmen were not pleased to have been cut out of the process. Progressives were not pleased that Democrats were working with Republicans on the bill, and it鈥檚 certainly true that progressives are far more interested in the social infrastructure part of the President鈥檚 program. It鈥檚 also true that former President Trump opposed the bill, and he encouraged his supporters around the country to do the same. 

The final vote was 69 for the bill and 30 opposed. (Senator Rounds (R-SD) missed the vote spending time with his ailing wife, but he said that he would have voted against the bill). Minority Leader McConnell supported the bill, saying that Republicans can鈥檛 be against everything the President supports. 

The total cost of the bill is over $1 trillion, but much of the bill was paid for by making use of unspent funds already appropriated by COVID legislation. (They call that reappropriating). Other offsets to the spending came from the sales of future spectrum auctions, petroleum from the nation鈥檚 oil reserve, and a provision that will ensure that cybercurrency investors pay taxes on their profits. 

The Congressional Budget Office said that the legislation would add $256 billion to the federal budget deficit over the next 10 years. Senator Kevin Cramer (R-ND), a member of the Senate Budget Committee, said that the CBO didn鈥檛 give the bill enough credit for reappropriating unused funds. 

The main categories of the bill include:

• Highways – highway programs, bridge investment, tribal, territory, and federal lands,
• Climate Change and Alternative Vehicles – programs to make infrastructure more resilient to storms and natural disasters, carbon reduction, electric charging stations and alternative fuel infrastructure,
• Regulatory – codifying the Trump Administration鈥檚 policy to force federal agencies to coordinate their review and authorization decisions,
• User Fees – sets aside funds to study a national motor vehicle per mile user fee to supplement the Highway Trust Fund,
• Emergency Appropriations for highway programs from the general fund instead of the Highway Trust Fund,
• Amtrak and Other Rail Grants,
• Aviation emergency appropriations,
• Drinking water and water infrastructure,
• Energy Grid Security, and
• Broadband,
• as well as many other sections. 

President Biden proposed spending over $2.3 trillion for customarily defined infrastructure and broadband. The bipartisan legislation spent about $550 billion in new money not previously appropriated. 

The bill now goes to the House of Representatives, where the Speaker has a very narrow majority. It鈥檚 presumed that many Republicans will follow former President Trump鈥檚 lead and vote against the bill when it comes up in the House, so the Speaker will have to couple the bipartisan infrastructure bill with something her Progressive members want to bring her Democratic caucus into line. 

Senate Budget Resolution on Social Infrastructure

The Senate Budget Committee passed President Biden鈥檚 infrastructure bill on a party-line vote. The Budget Committee approved a bill that would spend $3.5 trillion, and early Wednesday morning, the full Senate passed the budget resolution on a party line vote of 50-49. Now the resolution goes over to the House, where the Speaker is bringing Members of Congress back to Washington the week of August 23^rd to consider it. After the resolution is passed by both the Senate and the House, it will go to committees to build a legislative agenda that can be passed in the Senate using the reconciliation process, which allows some types of legislation to be passed with a simple majority. 

In a  dated August 9, Majority Leader Schumer describes the content of the budget resolution, which President Biden proposes to pay for by raising corporate tax rates, individual tax rates for some people, and estate taxes. 

My colleague  has written a series of articles on how raising taxes will impact individuals, businesses, and our economy.

At the end of the day 鈥� which probably will be near Christmas 鈥� the actual size of this social infrastructure bill will be decided by Senator Sinema and Senator Joe Manchin (D-WVA). 

In a  shortly after this morning鈥檚 vote on the resolution, Senator Manchin offered this reflection:

Over the past year, Congress has injected more than $5 trillion of stimulus into the American economy 鈥� more than any time since World War II 鈥� to respond to the pandemic. The challenge we now face is different: millions of jobs remain unfilled across the country and rising inflation rates are now an unavoidable tax on the wages and income of every American. These are not indications of an economy that requires trillions in additional spending. Every elected leader is chosen to make difficult decisions. Adding trillions of dollars more to nearly $29 trillion of national debt, without any consideration on the negative effects on our children and grandchildren, is one of those decisions that has become far too easy in Washington. 

The Biden 15 percent global tax puts foreign companies ahead of American workers

By Congressman Erik Paulsen, Total Spectrum Strategic Consultant

President Biden recently spearheaded an agreement among the G-7 nations to implement a global minimum corporate tax rate of 15 percent. The agreement has received the support of 130 other countries including China, Russia, and India. Notably withholding their support are several major tax havens, including Ireland, Hungary and others. 

The agreement, if fully implemented, would reduce competition among the world鈥檚 major economies and secure a tax funding base for financially strapped nations, particularly those in Europe, with bloated social spending budgets. President Biden says the agreement shows that 鈥淎merica鈥檚 back.鈥� However, the agreement would surrender America鈥檚 tax sovereignty to a coalition of nations who believe in high taxes and huge government spending. The tax is an essential part of President Biden鈥檚 plan to greatly expand the role of the federal government in America鈥檚 economy at a level not seen since World War II.  

The Tax Cuts and Jobs Act that was passed in 2017 created economic growth in America that eclipsed the economies of most of the G-7 countries. This tax reform eliminated the minimum corporate tax and reduced the top corporate tax rate to 21 percent, incentivizing U.S. companies to invest here at home instead of overseas. The United States hung out an 鈥淥pen for Business鈥� sign which attracted billions of dollars of investment and generated explosive job growth not seen in decades. 

President Biden and many Democrats in Congress are working vigorously to reverse this growth. Their support for a global minimum tax is one of at least 30 proposed tax increases on American families and businesses that will total around $2.975 trillion over the next 10 years. These tax increases include raising the top corporate tax rate to 28 percent, which, when state taxes are included, balloons to an average rate of 32 percent. This is significantly higher than the average corporate tax rate of most nations in Europe (23 percent) as well as China (25 percent). 

The global minimum tax is also subject to significant manipulation by nations seeking to gain an edge through offsets and work arounds. China鈥檚 state-controlled media already is calling for massive exemptions. Russia and India are likely to follow suit. Most significantly, many tax haven countries like Ireland who have seen their economies grow rapidly due to their low tax regimes .  

Treasury Secretary Yellen calls the current tax policies of China, Russia, India, Ireland, and other nations a 鈥渞ace to the bottom鈥� to attract business at the expense of their budgets. Another term for this is competition, so it is easy to predict that that even if the global corporate tax agreement is ratified, many of these nations will find a way to undermine it to better compete.   

President Biden鈥檚 tax policies amount to a surrender in this race for business. He is not only pressing for the global minimum tax, but he is basing its implementation in the United States on book income rather than taxable income, further disadvantaging American companies over foreign workers and companies.  

Should the Biden global minimum corporate tax go into effect, those losing most will be American consumers and workers. By eliminating competition, this tax, on top of his other tax increases, will make America even less competitive and drive jobs, manufacturing, innovation and investment overseas. It will encourage the flight of business to those nations, like Ireland, who do not sign on or to countries like China, who will effectively ignore the tax while making a show of agreeing to it. 

The American economy is just beginning to emerge from the damage wreaked by the pandemic. We are also engaged in fierce competition with China, which is seeking to become the world leader in technology and other critical industries. Instead of restricting competition with a 15 percent global minimum tax that is nothing more than a gift to China, the United States should be pursuing low tax policies that welcome investment and will secure our nation鈥檚 position as the leading economy in the world.  

 represented Minnesota鈥檚 3rd District from 2009 to 2019. He was a leading member of the chief tax writing Ways and Means Committee. He was also the Chairman of the Joint Economic Committee, which focuses on innovation, entrepreneurship, digital trade, and economic issues.

This  originally appeared in The Hill on July 26, 2021. The views expressed in this article are the writer鈥檚 own.

What you need to know about the end of Covid-19 Emergency Unemployment Benefits

Visualizing key takeaways from the IPCC’s dire climate report

What you need to know about Alzheimer’s treatments

People of color are more likely to need protections against eviction

Hit hard by pandemic, leisure and hospitality jobs lead July rebound

Vaccine tracker: U.S. finally reaches Biden’s 70% goal

Breaking down the Senate infrastructure agreement’s $550B in new spending

What you need to know about Lina Khan’s FTC

Congressional Calendar

All times EDT

Tuesday, August 10

• 10 a.m. Senate Foreign Relations Near East, South Asia, Central Asia and Counterterrorism Subcommittee  to examine U.S. security assistance in the Middle East.

Wednesday, August 11

• 10 a.m. Senate Judiciary Committee  to examine pending nominations.

Thursday, August 12

• 9 a.m. Senate Judiciary Committee  to consider S. 1787 (117), which would prevent antitrust cases filed by states from being transferred to other states, and S. 2502 (117), which would grant first-time, low-level, nonviolent simple drug possession offenders an opportunity to expunge their conviction by completing a court-imposed probation.

The post This Week In Washington appeared first on 探花精选.

Latest news from Washington, D.C. produced by Total Spectrum/SGA exclusively for members of the Arizona Chamber of Commerce & Industry

More Info: Michael DiMaria | Partner and SW Regional Director | 602-717-3891 | mdimaria@totalspectrumsga.com

Heard on the Hill covers the continuing and changing-by-the-minute story of the President鈥檚 traditional and social Infrastructure agenda. We also wade into the President鈥檚 20-page executive order on competition.  writes about six tax incentives that will play a major role in the President鈥檚 agenda.  brings us up to speed on the appropriations process for the 2022 fiscal year.  reviews a recent House Small Business Agriculture and Rural Development Subcommittee hearing on economic recovery in rural America.

We will return on in two weeks on July 28^thfor the next issue of This Week. Stay well.

, Managing Partner

Heard on the Hill

By Steve Gordon, Total Spectrum Managing Director

The most important thing that happened in Washington over the July 4^th recess was that nothing important happened. 

Tourists took over the town.  Most of us in Washington who spend our time on policy, politics, or both shut down our minds for a while and kicked back. Local restaurants were not busy because most Washingtonians left town, but the important thing was that restaurants, bars, and museums were open. 

The 15-month pandemic was a confining and confusing time for most of us, and a terrible time for those who became a COVID statistic.  Maybe we will not snap back immediately to the normal life we had before the pandemic. Maybe we find a new normal, maybe we are already there. Whatever it was and whatever you call it, kicking back a little felt pretty darn good.

President Biden鈥檚 leadership and legacy are on the line this summer.

As a candidate in the 2020 election, Joe Biden was projected as an experienced legislator who was used to working with his Republican and Democratic Senate colleagues. He stressed his knowledge of foreign affairs as the former chairman of the Senate Foreign Relations Committee, and he committed to getting COVID vaccines into Americans鈥� arms.

But in today鈥檚 base politics, those things are a good start 鈥� but only a start. The enthusiasm of the liberal and progressive base provided the energy for the campaign.

Now, President Biden is trying to project steadiness and calm while proposing a very expansive legislative agenda that plays to the base of his party. A midwestern Democrat told me recently that 鈥淪enator Biden watched both President Carter and President George H. W. Bush lose their base and then their reelection. There is no education in the second kick of the mule鈥� and even less the third time.鈥�

Working on traditional infrastructure through a bipartisan approach plays to the calm, steady, and predictable President. Working on social infrastructure plays to his base. Senate Majority Leader Schumer sent a Dear Colleague  to his Democratic Caucus on July 9^th in which he spoke about a two-track approach in July 鈥� a bipartisan traditional infrastructure bill and a resolution out of the Senate Budget Committee 鈥� setting the table for a social infrastructure bill which Democrats could try to pass this fall through the reconciliation process.

Some people on Capitol Hill will tell you that a traditional infrastructure bill costing somewhere between $600 billion and $1 trillion can be written by the bipartisan group of senators, and can get the votes of every Democrat and ten Republican senators.  Just as many people on Capitol Hill will tell you why it will not happen. For example, some Senate Republicans 鈥� including a few of the moderates who negotiated the bill 鈥� are concerned about the fuzzy revenue numbers proposed to fund the bipartisan bill, others are concerned about raising taxes to help pay for the bill. Still others are torn between passing a traditional infrastructure bill that we certainly need that is part of the President鈥檚 agenda. Senate Minority Leader McConnell has not commented publicly on the bipartisan proposal.

Senator Bernie Sanders, Chairman of the Senate Budget Committee, proposed a budget resolution of $6 trillion for social infrastructure. Senator Mark Warner (D-VA), a moderate member of the Senate Budget Committee, felt that $3 trillion would be more like it. Senator Joe Manchin (D-WV) said Tuesday that the social infrastructure bill 鈥� whatever the number 鈥� must be paid for and should not be put on the country鈥檚 credit card.

Tuesday night, the Senate Budget Committee passed a resolution that included $600 billion for traditional infrastructure and $3.5 trillion in new spending for social infrastructure. Budget Committee Democrats propose to pay for their program in large part by raising taxes on corporations and individuals.

The budget resolution passed Tuesday night by the Budget Committee has not yet been written, but early details came out Wednesday. Included is a significant climate provision and funding to provide universal prekindergarten, childcare, and community college. The proposal also increased funding for historically black colleges and universities, paid family and medical leave, and new Medicare provisions. The revenue to pay for this agenda would come from three 鈥榖uckets鈥�: increasing corporate and international taxes, health savings by lowering prescription drug costs and by repealing the Trump Administration鈥檚 rebate rule, and from new taxes to be generated by anticipated long-term economic growth. 

Again, the budget resolution has not been formally written yet, and it will take some time for it to go from bullet points to legislative language. Democrats can and ultimately will pass the resolution out of the Budget Committee on a party line vote, but the real work will be writing a budget resolution for social infrastructure that can be agreed to by each of the 50 Senate Democrats and House Democrats. 

Senate Democrats are a long way from agreement and in an evenly divided Senate, every Democratic senator is a king or a queen 鈥� and every senator has leverage.

The calendar also counts. The legislative packages need to be written and vetted. A budget resolution will require about a week of Senate floor time, and any infrastructure bill will require two weeks of floor time. The target start date for the summer recess is August 9^th, though Majority Leader Schumer is threatening to keep the Senate working beyond that date.

Majority Leader Schumer surprised many people this week by scheduling for next week the first procedural votes 鈥� technically a motion to proceed 鈥� on the bipartisan traditional infrastructure proposal. It is surprising because he knows full well that the bipartisan group of senators led by Senators Rob Portman (R-OH) and Kyrsten Sinema (D-AZ) have not finished agreeing to their proposal and then writing the bill.

The President鈥檚 legislative agenda and legacy hangs on how these two infrastructure bills do in Congress. I cannot see any Democratic senator being willing to be a final no vote on the social infrastructure bill that will be brought up through reconciliation, so I have four questions in my mind:

1. Will the bipartisan group of Senators find a way to pay for their traditional infrastructure bill? The good news is that they are still talking, but they must agree on how they will pay for the program, and that is always a rocky road.
2. If the bipartisan group of senators can find a way to pay for their traditional bill, will their proposal get the support of all 50 Democrats and 10 Republicans in the Senate? (Odds are less than 50-50.)
3. If the bipartisan infrastructure bill fails in the Senate, Democrats will include traditional infrastructure in their final budget resolution, thereby recoupling the President鈥檚 original proposal. The amount to be spent in that resolution will be decided through the push and pull of party moderates and party progressives and liberals. (The end number will almost assuredly more than $2 trillion, and will go up to the point where moderate Democrats will not spend any more.)
4. Congress has about four weeks and change until the scheduled start of the August recess. The Budget Act will take up a lot of time on the Senate floor, and there will be amendments aplenty. Look for a vote on the budget right before the start of the August recess, committee activity in the fall, and a final reconciliation bill sometime this fall.

The Debt Ceiling

The COVID relief legislation of the last two years has put additional pressure on raising the debt ceiling, which will need to be raised around August 1^st. But the Treasury Secretary traditionally finds loose change between the sofa cushions that will delay a vote to sometime in September. Most if not all Republicans will not vote to raise the debt ceiling, so it will be up to Majority Leader Schumer and Senate Democrats. 

The President鈥檚 Executive Order on Promoting Competition in the American Economy

On July 9^th, the White House issued a 20-page  designed to foster competition in labor, healthcare, transportation, agriculture, internet, technology, and banking/finance. It is a lengthy document, and an important one. But what is not clear is why the package was released on Friday 鈥� a traditionally bad day to release press releases if you want maximum exposure. 

The White House鈥檚 fact sheet on the executive order is available .  We will review the details of the executive order and provide more information in an upcoming Heard on the Hill.

Appropriations Update

By Steve Ruhlen, Total Spectrum Partner

Congress is marching through its annual appropriations process, putting together the dozen bills that provide for federal spending for fiscal year 2022, which starts October 1.  The House Appropriations Committee this week considered several of these bills, hoping to meet the goal of House Democratic leadership to pass all twelve government funding bills before the August recess.

Two factors complicate the outlook for the appropriations process:  the $600 billion infrastructure bill being considered in the Senate, and Democrats鈥� efforts to approve trillions in additional spending via a partisan legislative strategy.  

Given the jockeying over the infrastructure deal and the possibility of trillions in additional spending outside of the appropriations process, the House postponed consideration of its annual budget resolution 鈥� which spells out specific categorical spending limits 鈥� and instead passed in June a general topline spending limit of $1.5 trillion for FY2022.  This was a $200 billion increase from the FY2021 topline. 

The Senate appropriations timeline is more delayed.  With a 50-50 Democrat-Republican split in the Senate, it will be hard to get approval for many of the funding levels and policy initiatives that are expected to be included in the appropriations bills that pass in the Democrat-controlled House.  For example, House Democrats are expected to remove several bans on federal funding for abortions, increase the Education Department spending by over 40%, increase Labor Department spending by nearly 20%, and keep defense spending essentially flat.  

Keep in mind, however, that while the Democrats control the House, they only have a five-vote margin over the Republicans, so passage of any highly controversial spending bills is not assured.  

The outcome of the still ongoing infrastructure negotiations in the Senate and the potential of Democrats to push through several trillions in additional spending through the reconciliation process are muddying the appropriations outlook.

While House appropriators are looking to boost transportation spending by $17 billion over the Biden Administration鈥檚 budget recommendation, it is still not clear how much of the total transportation appropriations would be covered in the infrastructure package 鈥� a deal for which details are currently being hashed out in the legislative process.  And although 11 Republican senators previously signaled support for the framework of the infrastructure agreement, some have said they won鈥檛 be on board if the President and congressional Democrats try to ram though trillions in additional spending on a separate reconciliation bill through a party line vote. 

Reconciliation is a legislative procedure that could allow congressional Democrats to pass massive increases in social spending on their own. Reconciliation cannot be filibustered in the Senate, meaning it 鈥� as opposed to other bills that come before the Senate 鈥� would only need a majority of 51 votes to pass, with Vice President Harris casting the tie-breaking 51^st vote.

The first step in the reconciliation process requires both the House and Senate to pass a budget plan for FY2022.  This week, the Senate Budget Committee introduced a $3.5 trillion spending plan that Democratic leadership believes will fund their social spending priorities.  It is not the $6 trillion plan that many Democrat progressives, including Senate Budget Committee Chairman Bernie Sanders, wanted.  It is expected that the President鈥檚 calls for two years of free community college, increasing the child tax care credit, subsidies for childcare, and paid leave will be in the budget proposal.  The House is expected to follow suit, with both bodies looking to pass a final budget resolution before the August recess.

Senate Majority Leader Schumer still needs to ensure the support of all his Democratic senators.  With an evenly divided Senate, passage of the $3.5 trillion reconciliation package is not a done deal.  Senators Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ) have expressed concerns about using the reconciliation process to pass any massive controversial spending plan on a party line vote, and Sen. Manchin said that the budget proposal will need to be paid for and not rely on deficit spending. 

Senate Majority Leader Schumer announced this week that he wants to move forward with the infrastructure bill and hold a necessary procedural vote next Wednesday.  Republicans question how Leader Schumer can expect to advance a bill when there is no legislative language and no firm agreement on the specifics of the bill.  Seeing that it would require 60 votes to clear the procedural hurdle 鈥� needing at least ten Republicans to join in support 鈥� many Republicans see Schumer鈥檚 maneuver as a deliberate attempt to sink the bill, blame Republicans for its demise, and then wrap it into a reconstituted reconciliation bill which they hope to pass on a party line vote. 

Democrats enjoy control of the White House, the House, and the Senate, but they must reconcile the strong push for additional spending from their considerable progressive base with extremely slim majorities on both sides of Congress.  The implications of this year’s appropriations process, the infrastructure negotiations, and the potential of huge social spending through the reconciliation process will almost certainly reverberate into next year’s midterm elections.

President Biden’s Proposed Clean Energy and Community Development Tax Incentives Will Play a Major Role in his Infrastructure Plan

By Congressman Erik Paulsen, Total Spectrum Strategic Consultant

President Biden鈥檚 $2.3 trillion American Jobs Plan released in March includes a number of community development and clean energy tax incentives which build upon existing incentives that have traditionally enjoyed bipartisan support. Examples of these include an expansion of the low-income housing tax credit, creation of a neighborhood homes investment tax, permanence for the new markets tax credit, authorization of new tax-exempt bonds for schools and infrastructure, extensions and enhancements of the renewable energy production and investment tax credits, and extensions and modifications of the energy efficiency tax incentives.

President Biden also proposes in the American Jobs plan to repeal all tax credits, deductions and other special provisions that aim to encourage oil, gas, and coal production. Eliminating tax incentives to produce fossil fuels is a fundamental goal of Congressional progressives.

Almost all Republicans in Congress believe in an 鈥渁ll the above鈥� approach to energy production and support incentives to produce both renewable energy and energy from fossil fuels. Any bill put up by Senate Democrats that includes the President鈥檚 infrastructure and clean energy tax incentives but eliminates fossil fuel tax incentives will be filibustered by Republicans. 

That is exactly why Senate Democrats will try to unite their caucus and pass this legislation 鈥� including the Biden tax rate increases 鈥� through the budget reconciliation process, which allows certain bills to be passed with a simple majority and cannot be filibustered.

Below, my summary of the tax credits that will receive the greatest attention:

Expansion of the Low-Income Housing Tax Credit

The Biden Administration proposes to significantly expand this credit to incentivize affordable rental housing development in high opportunity areas. This proposal would create an additional allocation of low-income housing tax credits for these areas, which would be based on a formula that would take into consideration the cost of constructing and operating affordable housing. 

The New Neighborhood Homes Investment Tax Credit

There are currently no federal tax provisions that directly support building or renovating owner-occupied housing. The Biden Administration鈥檚 proposal would create the Neighborhood Homes Investment Tax Credit, which would provide approximately $2 billion in credit authority to support new construction and substantial rehabilitation for existing homeowners. It would be allocated to states with an emphasis on populations living in distressed urban, suburban, or rural neighborhoods.

The New Markets Tax Credit

This tax credit is for qualified equity investments made to acquire stock in a corporation, or a capital interest in a partnership, that is a qualified community development entity. The credit totals 39% of the original investment and can be claimed over seven years. The Biden proposal would permanently extend the New Markets Tax Credit and allow community development entities to continue generating investments in low-income communities, but now with greater certainty.  

Schools and Infrastructure

It is generally agreed we need to renovate some older educational facilities and to encourage the construction of new structures. This proposal would create tax-exempt School Infrastructure Bonds, which would be similar to the Build America Bonds that were authorized under the Obama Administration. The proposal would authorize up to $50 billion in these bonds, with $16.7 billion authorized in each of 2022, 2023, and 2024.

The proposal would also expand the category of private activity bonds by allocating an additional $15 billion for use by the Secretary of Transportation. The proposal would allow private activity bonds to be issued for public transit, passenger rail, and infrastructure for zero emissions vehicles. 

Extend and Enhance the Production Tax Credit and the Investment Tax Credit

The Renewable Energy Production Tax Credit would be extended in its entirety for projects that begin construction after December 31, 2021, and before January 1, 2027. Beginning in 2027, the credit rate would begin to phase down to zero over five years.

The Renewable Energy Investment Tax Credit, much like the Production Tax Credit, would be extended for 1) solar and geothermal electric energy property; 2) qualified fuel cell power plants; 3) geothermal heat pumps; 4) small wind properties; 5) offshore wind properties; 6) waste energy recovery properties; and 7) combined heat and power properties. Starting in 2022, the Renewable Energy Tax Credits would be expanded to include stand-alone technology that stores energy for conversion to electricity and has the capacity of not less than five kilowatt hours.

Taxpayers would have the option to receive a cash payment instead of a credit from either the Production Tax Credit or the Renewable Energy Investment Tax Credit. The Department of the Treasury has not specified the amount of the cash payment or how that option might work. This promises to be an area where intense input from policy makers will be needed.

New Electricity Transmission Tax Credit

The proposal would provide a credit equal to 30% of a taxpayer鈥檚 investment in qualifying power transmission property placed in service in any given year. Qualifying electric power transmission property would include overhead, submarine, and underground transmission facilities meeting certain criteria, including a minimum voltage of 275 kilovolts and a minimum transmission capacity of 500 megawatts. Qualifying property would also include any ancillary facilities and equipment necessary for the proper operation of the transmission facility. This new credit also has a direct pay option. The New Electricity Transmission Tax Credit would be effective for property placed in service after December 31, 2021, and before January 1, 2032.

The current discussions on potential infrastructure legislation have focused thus far on the definition of infrastructure, its cost, and how it would be financed. But the tax issues related to community development, clean energy, and fossil fuels will soon take center stage. Both the Senate Finance Committee and the House Ways and Means Committee have started assembling the proposed legislation.

I would be pleased to visit with anyone who has questions; I can be reached via email by clicking on my name above.

Hearing Report

By Ramona Lessen, Total Spectrum Executive Director

House Small Business Agricultural and Rural Development Subcommittee hearing on the economic recovery efforts in rural America

Tuesday, July 13, 2021; 1:00 p.m.

To view a livestream of the hearing please .

Congressman Jared Golden (D-ME-2^nd)

Congressman Roger Williams (R-TX-25^th)

Witnesses:

Mr. Nathan Ohle
Chief Executive Officer
Rural Community Assistance Partnership
Washington, DC

Ms. Jessica Campos
Women’s Business Center Director
Center for Rural Affairs
Lyons, NE

Mr. Brett Challenger
Senior Vice President of the Regional Agribusiness Banking Group
CoBank
Greenwood Village, CO

Mr. Alan M. Crawford
Owner and President
Rangaire Manufacturing Company
Cleburne, TX

BLS data shows Covid still affecting service and other sectors

What you need to know about Drugged Driving

Companies scramble to enter the cropland carbon marker

A record number of women are serving in state legislatures

Vaccine tracker:  67.8% of U.S. adults have received first dose

Delta variant causing more than half of new U.S. coronavirus cases

Congressional Calendar

All times EDT

Monday, July 12, 2021

• 10 a.m. House Judiciary Courts-IP-Internet Subcommittee virtual  on diversifying the federal judiciary.
• 11 a.m. House Appropriations Labor-HHS-Education Subcommittee  of the Labor-HHS-Education spending legislation for fiscal 2022.
• Noon. House Agriculture Oversight Subcommittee virtual  on SNAP benefits.
• 1 p.m. House Administration Committee virtual  on the Elections Clause of the Constitution. 
• 1 p.m. House Appropriations Energy-Water Development Subcommittee  of the Energy-Water Development budget proposal for fiscal 2022.
• 3 p.m. House Appropriations Commerce-Justice-Science Subcommittee  of the Commerce-Justice-Science budget bill for fiscal 2022.
• 5 p.m. House Appropriations Transportation-Housing-Urban Development Subcommittee  of the Transportation-Housing-Urban Development budget proposal for fiscal 2022.
• 6 p.m. Senate Foreign Relations Committee closed  鈥� S. J. Res. 10: Repeal of the 1991 and 2002 Authorizations for Use of Military Force as well as Discussion of Recent US Military Strikes in Iraq and Syria.

Tuesday, July 13, 2021

• 9:30 a.m. Senate Armed Services Committee  to examine five pending nominations for the Department of Defense.
• 10 a.m. House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security  鈥� Facial Recognition Technology: Examining Its Use by Law Enforcement.
• 10 a.m. House Veterans Affairs Disability Assistance and Memorial Affairs Subcommittee virtual  to discuss efforts to modernize the VA appeals program.
• 10 a.m. Senate Banking Committee  on the nominations of Arun Venkataraman to be assistant secretary of Commerce and director general of the Foreign Commercial Service and Damon Smith to be HUD general counsel.
• 10 a.m. Senate Foreign Relations Committee  to examine four pending nominations for the Department of State.
• 10 a.m. Senate HELP Committee  to examine three pending nominations for the Department of Education.
• 10 a.m. House Appropriations Committee  of the proposed Defense and Homeland Security spending bills for fiscal 2022.
• 11 a.m. House Energy and Commerce Committee virtual  for a member day.
• 11:30 a.m. Senate Small Business and Entrepreneurship  to consider the nomination of Dilawar Syed to be deputy administrator of the Small Business Administration.
• 1 p.m. House Natural Resources National Parks, Forests and Public Lands Subcommittee virtual  to examine five bills, including H.R. 3132 (117), which would reauthorize the Lake Tahoe Restoration Act.
• 1 p.m. House Small Business Agricultural and Rural Development Subcommittee virtual  on economic recovery efforts in rural America.
• 2 p.m. House Judiciary Subcommittee on Immigration and Citizenship 鈥� Oh Canada! How Outdated US Immigration Policies Push Top Talen to Other Countries.
• 2 p.m. House Veterans Affairs Oversight Subcommittee virtual  on modernizing the VA police force and boosting accountability.
• 2 p.m. Senate Appropriations Committee  to examine Biden鈥檚 proposed fiscal 2022 budget for the USPS Office of Inspector General and USPS service issues. 138 Dirksen.
• 2:30 p.m. Senate Judiciary Antitrust and Competition Subcommittee  on anti-competitive behavior among prescription drug companies. 226 Dirksen.
• 3 p.m. House Armed Services Airland Subcommittee virtual  to discuss provisions in the fiscal 2022 defense spending proposal for the Fixed-Wing Tactical and Training Aircraft Program.

Wednesday, July 14

• 9:15 a.m. Senate Homeland Security Committee  to consider 15 bills, including S. 1917 (117), which would establish a K-12 education cybersecurity initiative.
• 9:45 a.m. Senate Environment and Public Works Committee to consider the nominations of Jane Nishida to serve as assistant administrator for international and tribal affairs of the Environmental Protection Agency, Jeffrey Prieto to be general counsel of the EPA and Alejandra Castillo to be assistant secretary for economic development of the Department of Commerce. The meeting will immediately be followed by a hearing to examine the nomination of Michael Connor to be an assistant secretary of the army for civil works at the Defense Department.
• 10 a.m. Senate Energy and Natural Resources Committee  to consider energy infrastructure legislation by Chair Sen. Joe Manchin (D-W.Va.).
• 10 a.m. Senate Appropriations Labor-HHS-Education Subcommittee  to examine Biden鈥檚 proposed fiscal 2022 budget for the Department of Labor. Sec. of Labor Marty Walsh testifies.
• 10 a.m. Senate Judiciary Committee  to examine pending nominations.
• 10:30 a.m. Senate Foreign Relations Committee  to examine Biden鈥檚 fiscal 2022 budget request for USAID. USAID Administrator Samantha Power testifies.
• 11 a.m. House Transportation and Infrastructure Water Subcommittee on Biden鈥檚 fiscal 2022 budget request.
• 11:30 a.m. House Energy and Commerce Subcommittees on Energy and the Environment and Climate Change  鈥� 鈥淜eeping US Safe and Secure: Oversight of the Nuclear Regulatory Commission.鈥�
• Noon. House Financial Services Committee virtual  on monetary policy and the state of the economy. Federal Reserve Chair Jerome Powell testifies.
• Noon. House Agriculture Committee  to consider HR 4374, the Broadband Internet Connections for Rural American Act.
• 2 p.m. House Foreign Affairs Committee virtual  on the Biden administration鈥檚 foreign assistance priorities and the fiscal 2022 USAID budget request.
• 2 p.m. House Veterans Affairs Health Subcommittee virtual  on nine bills, including H.R. 913, the Build a Better VA Act.
• 2:30 p.m. Joint Economic Committee virtual  to examine corporate power in the U.S.
• 2:30 p.m. Senate Judiciary Constitution Subcommittee  on restoring the Voting Rights Act after the Supreme Court鈥檚 Brnovich and Shelby County decisions.
• 2:30 p.m. Senate Indian Affairs Committee  to consider the nomination of Bryan Todd Newland to be assistant secretary of Indian affairs for the Interior Department. The meeting will be immediately followed by a legislative hearing to consider three bills, including H.R. 1688 (117), which would amend the Indian Child Protection and Family Violence Prevention Act.
• 3:30 p.m. Senate Veterans鈥� Affairs Committee  on modernizing the VA鈥檚 electronic health records.
• 4 p.m. House Armed Services Subcommittee on Readiness  鈥� FY22 Budget Request for Military Construction, Energy, and Environmental Programs. 

Thursday, July 15

• 9 a.m. Senate Judiciary Committee  to consider the nominations of Eunice Lee to be United States Circuit Judge for the 2nd Circuit, Veronica Rossman to be United States Circuit Judge for the 10th Circuit, and David Estudillo, Lauren King and Tana Lin to each be a United States District Judge for the Western District of Washington.
• 9:30 a.m. Senate Aging Committee  on savings opportunities for elderly Americans.
• 9:30 a.m. Senate Agriculture Committee  on the nomination of Jennifer Lester Moffitt to be undersecretary of Agriculture for marketing and regulatory programs.
• 9:30 a.m. Senate Banking Committee  on the semiannual monetary policy report to Congress.
• 10 a.m. Senate Commerce Committee  on supply chain resiliency.
• 10 a.m. Senate HELP Committee  to examine the nominations of David Weil to be administrator of the Wage and Hour Division at the Department of Labor and Gwynne Wilcox and David Prouty to both join the National Labor Relations Board.
• 10:15 a.m. Senate Homeland Security Committee hybrid  to examine the nominations of Robert L. Santos to be director of the census and Ed Gonzalez to be an assistant secretary of Homeland Security.
• Noon. House Homeland Security Committee virtual  on reform efforts within DHS.
• House Financial Services Subcommittee on Oversight and Investment 鈥� CDBG Disaster Recovery: States, Cities and Denials of Funding.
• 1 p.m. House Natural Resources Subcommittee on Oversight and Investigations  鈥� Oversight: Are Toxic Chemicals From Tires and Playground Surfaces Killing Endangered Salmon?
• 2:30 p.m. House Climate Crisis Select Committee virtual  on environmental justice.

Friday, July 16

• 9 a.m. House Appropriations Committee  of the Energy-Water Development and Transportation-Housing-Urban Development budget proposals for fiscal 2022.
• 10 a.m. House Homeland Security Subcommittee on Emergency Preparedness, Response, and Recovery  鈥� DHS Management.
• 12 noon. House Financial Services Committee Task Force on Artificial Intelligence : Verifying Identity While Preserving Privacy in the Digital Age.
• 1 p.m. House Judiciary Constitution, Civil Rights and Civil Liberties Subcommittee virtual  on the Supreme Court鈥檚 Brnovich v. DNC decision and potential legislative responses.

The post This Week in Washington appeared first on 探花精选.

More Info: Michael DiMaria | Partner and SW Regional Director | 602-717-3891 | mdimaria@totalspectrumsga.com

Thanks for your interest in Washington, D.C., and thanks for reading This Week in Washington.

This is a recess week in Washington 鈥� at least for the Senate 鈥� so I took the time to reflect rather than report in Heard on the Hill about President Joe Biden and Senator Tim Scott. The President gave his State of the Union message last week and Senator Scott gave the Republican response; two very different speeches by two very different individuals. Congressman wrote an article on the President鈥檚 estate tax proposal and the impact it will have on family businesses, ranches, and farms.

Total Spectrum Senior Partner has been working in and with the financial services sector for over 30 years. He has written an update on pending activity in the Senate and House Financial Services Committees. provides briefs on two House hearings held this week, one on lowering the cost of prescription drugs and another on climate and energy research at the Department of Energy.

We will be back May 19^th with another This Week in Washington and the next installment of Total Spectrum Spotlight. Be well.

, Managing Partner

Heard on the Hill

By Steve Gordon, Total Spectrum Managing Partner

President Biden gave his State of the Union Address last Wednesday, which was one day short of the first 100 days of his presidency.  Senator Tim Scott from South Carolina gave the Republican response.

The Senate is out of session this week, so it is a good time 鈥� some would say high time 鈥� that we put the wide-angle lens on the apparent transformation of Joe Biden from a moderate in the Senate to a progressive President. I would also like to give a little background on Senator Tim Scott, and then we will close with 鈥榦dds and ends.鈥�

Last Year鈥檚 Democratic Primary

Almost all the initial energy in the 2020 Democratic primaries was on the progressive side.  The three leading progressive candidates 鈥� Senator Bernie Sanders, Senator Elizabeth Warren, and Mayor Pete Buttigieg 鈥� each tried to build a national campaign and each failed. Mayor Michael Bloomberg entered the race late as a self-funder and wanted to build a campaign around his brand of a common-sense progressive. But Mayor Bloomberg鈥檚 first debate performance was unnerving, and his second debate was not much better. Senator Amy Klobuchar from Minnesota appealed to Midwesterners with her blend of common sense and a progressive philosophy. She thought she could win in Iowa and that would be a springboard into other primaries, but her votes came from rural and suburban Iowa, while liberals and progressives from Iowa鈥檚 cities and colleges divided their votes among other candidates.

The progressive base did not support Joe Biden in the early primaries. He was considered too moderate, too establishment, and some people thought he was yesterday鈥檚 news. The base wanted someone who would carry their progressive ideals. But more than anything, they hated and disdained President Trump and they were looking for a candidate who could win in November.

Joe Biden鈥檚 campaign limped into South Carolina. But Congressman James Clyburn anointed Vice President Biden at the beginning of the South Carolina primary, and a win in South Carolina led to other wins. Democrats of all stripes 鈥� even progressives 鈥� came around to Joe Biden because he looked like he was the one who could defeat President Trump.

Senator Joe Biden becomes President Joe Biden

Democrats who worked with Joe Biden in the Senate have told me that he fit moderate Delaware like a glove. He had a love for Amtrak, a great feel for foreign affairs, and he was a strong supporter of organized labor.  Senator Biden was considered a moderate, and I am told that his colleagues from both sides of the aisle liked and respected him.

This view of a moderate Senator Joe Biden does not square with the progressive President Joe Biden, who wants to meet the moment with a transformational agenda.

The view of many in Washington is that President Biden knows he cannot lose the base of his party and win reelection. I am told that he watched President Jimmy Carter govern to the right of the Democratic base and President George H. W. Bush govern to the left of the Republican base, and will not make that same mistake.  

It is also quite possible that President Biden feels freed from his role of legislating at or near the center of the Senate so that his views would fit a moderate state like Delaware.

One last observation: the Biden campaign clearly understood that many suburbanites and independents wanted a change in style. President Trump wanted to be a part of the daily story, and most often was. President Biden talks tame, speaks in a very hushed voice, talks about bipartisanship, and works best behind the scenes. Each of those attributes plays well with these voters.

Polls show that President Biden has a relatively significant favorability rating compared with other recent presidents at the benchmark of 100 days. But much more significant is that he has very low negative ratings.

I am a great believer in the pendulum theory in politics. The pendulum theory is best described by saying that there would never have been a President Reagan without a President Carter. There would not have been a President Clinton without a President George H. W. Bush, not a President George W. Bush without a President Clinton, not a President Obama without a President George W. Bush, not a President Trump without a President Obama鈥� and there would not have been a President Joe Biden without a President Trump.

Senator Tim Scott 鈥� a rising star

and I are both friends and fans of Senator Tim Scott. Erik served with Congressman Scott in the House of Representatives. Former Congressman Cory Gardner of Colorado introduced me to then-Congressman Tim Scott in 2011. Later, the two served together in the Senate, and Senator Scott鈥檚 chief of staff is also from Colorado, so I have had an opportunity to see and watch Tim Scott over the past 10 years.

Senator Scott serves on the Senate Committees on Finance; Banking, Housing, and Urban Affairs; Health, Education, Labor and Pensions; Small Business & Entrepreneurship; and Special Aging.  He  played a leading role in negotiating the 2017 Tax Cuts and Jobs Act in the Finance Committee, and he was the author of the Opportunity Zones program in that Act.

The Senator speaks about how his family came from 鈥渃otton to Congress鈥� in one generation, and that education and the free enterprise system are the keys to a better future. He is very smart, witty, and exceptionally comfortable in his own skin.

The political hospital and graveyard are both dotted with outstanding people who delivered the official response to the State of the Union message and failed to measure up to the hype. Tim Scott had 20 pounds of pressure on him, but he knocked the ball out of the park. Senator Scott has an unlimited future.

Odds and Ends

Infrastructure. Senator Shelley Moore Capito 鈥� by in our most recent Total Spectrum Spotlight 鈥� prepared the Senate Republican to the President鈥檚 infrastructure proposal. It is reasonable to assume that there is some potential for compromise between the President鈥檚 proposal and Senator Capito鈥檚 proposal. But it is very hard to see any Republican voting to pay for President Biden鈥檚 proposal by gutting the 2017 Tax Cuts and Jobs Act.

Earmarks. The Senate Republican caucus resoundingly defeated a proposal to allow their members to participate in the earmark changes approved by Senate Democrats and both the House Republican and Democratic caucuses. However, the Senate Republican caucus vote on earmarks was nonbinding.

Financial Services Update

By John McKechnie, Total Spectrum Senior Partner

Work Continues to Implement Biden Financial Services Agenda

House and senate Democratic leaders have Intensified their push to enact President Joe Biden鈥檚 economic strategy. While the headlines around the issue emphasize massive infrastructure and social program spending, there are financial services aspects worth examining on Capitol Hill and in the regulatory arena.

Aside from Biden鈥檚 ambitious plans and fiscal 2022 appropriations bills, Congress will also look to tackle a slate of financial measures.

• Consumer Credit Reports: House Democrats have pushed for legislation to give consumers more control over their credit reports, which can determine whether they qualify for mortgages, student loans, and other types of credit. The legislation follows concerns about inaccurate credit reports and a 2017 data breach at Equifax which affected about 150 million consumers. But Democratic leaders have yet to reintroduce legislation on credit reports, to the surprise of many industry observers and consumer advocates.  There is a strong possibility that at least one bill will emerge this summer. 
• Corporate Diversity Disclosures: The Improving Corporate Governance Through Diversity Act (H.R. 1277 and S. 374) would require publicly traded companies to disclose the race, ethnicity, gender, and veteran status of their board members and executives. It would also direct the Securities and Exchange Commission to create an advisory panel to issue recommendations for increasing board diversity. Neither bill has received a vote in their respective chambers, although senior Democratic staff expect them to move this fall. 
• Pandemic Risk Insurance: Retailers, media producers, and other businesses hit hard by COVID-19 shutdowns called on lawmakers to establish a loss-sharing program that offers insurance coverage, with a federal backstop for business losses caused by future pandemics. Subsequently, Rep. Carolyn Maloney (D-NY) introduced the Pandemic Risk Insurance Act, modeled in part after the Terrorism Risk Insurance Program. Under that proposal, once insurers incur more than $250 million in aggregate losses from a covered public health emergency, the federal government would cover 95% of insured losses. 

Expansion of federal housing programs:  The Biden infrastructure package included almost $200 billion in federal funds directed at low-income homeowners and renters who are struggling with housing payments due to COVID-19. These programs will flow through the Department of Housing and Urban Development and the Federal Housing Administration. In late April, Senator Elizabeth Warren (D-MA) introduced a separate measure that expands requirements for financial institutions to serve low-income communities and adds federal grants for affordable housing. Look for the Senate Banking Committee to advance this Warren bill later in the summer. 

Additionally, both Congress and the Federal Reserve are increasing oversight of digital currencies, including bitcoin. House and Senate financial committees are holding hearings on stock market volatility tied to cryptocurrencies, and Fed Chairman Jerome Powell stated that the central bank is involved in a large-scale research and development project on the digital dollar.  He noted that questions of whether adopting such a currency would provide a public benefit have yet to be resolved. 鈥淚t鈥檚 a very large, complex project鈥� this is really the beginning of the age of digital currency,鈥� commented Powell. 

Finally, a new, more aggressive regulator is about to take the reins at the Consumer Financial Protection Bureau (CFPB).  Rohit Chopra, a member of the Federal Trade Commission and acolyte of Senator Elizabeth Warren, is awaiting expected Senate confirmation. He told the Senate Banking Committee during his nomination hearing that he promises 鈥渁 proactive approach to the bad actors in the financial services sector.鈥� Look for Chopra to be seated at CFPB by the fall, and to actively work to reverse the deregulatory steps taken by now departed Trump-appointed Director Kathy Kraninger.

Opinion:  President Biden鈥檚 Estate Tax Plans Would Hit Middle Income Families and Impact Many Family Businesses, Ranches, and Farms

By Congressman Erik Paulsen, Total Spectrum Strategic Consultant

President Biden and his administration will soon release the details of their plan for individual tax increases. He promised during the 2020 presidential campaign to lower the estate tax exemption, currently $11.7 million to $3.5 million and raise the estate tax rate from 40 percent to 45 percent, but in a major surprise it appears that he will keep the current exemption and estate tax rate in place.

However, the Biden administration wants to require estates to pay taxes on unrealized capital gains on assets that are now exempt from that tax when the owner of those assets dies.  President Biden has pledged that his tax increases would only fall on the wealthy, but his proposed estate tax changes would significantly impact middle class families and family run businesses, ranches, and farms.

The current law indicates that when the owner of assets such as a personal residence or stock passes away, his or her property receives a 鈥榮tepped-up鈥� basis for estate tax purposes reflecting the fair market value of the property. President Biden calls this a loophole even though it has been a basic principle of tax policy and part of the tax code since 1994.  Repealing the 鈥榮tepped up鈥� basis provisions and taxing capital gains at death will be a real hardship for families who are not wealthy by any definition.

Here is one example. Mr. and Mrs. Brown never had annual earnings over $400,000, the threshold that President Biden differentiates between middle class and wealthy families. They worked hard and purchased their dream home in Phoenix 50 years ago for $200,000.  When they passed away, their house had increased in value to $1.5 million.  Their will gave their home to their only child which she intended to use as her personal residence. Under President Biden鈥檚 proposal, the Browns鈥� estate would be subject to a capital gains tax of as high as 39.6 percent based on the current value of their house, resulting in a tax bill of approximately $514,000.  The Brown鈥檚 estate would have to liquidate whatever assets the Browns may have held at death 鈥� including the house 鈥� unless Mr. and Mrs. Brown鈥檚 daughter can come up with the taxes out of her own pocket.

Here is a little different example. Mr. and Mrs. Smith bought 4,000 acres of land in Arizona鈥檚 Santa Cruz County 50 years ago for $1 million and became successful cattle ranchers.  When the Smiths passed away, the total value of the ranch based on the land and the Smiths鈥� reputation, including the quality of the cattle they raised, was $15 million.  Under President Biden鈥檚 estate tax proposals, their estate would be required to pay a 45 percent tax on the value of the estate over $3.5 million or approximately $5,175,000.   The estate would have little choice but to sell the ranch just to pay the tax 鈥� and send pink slips to their employees.  It would be very unlikely that the Smiths would be able to leave much of their successful ranch to their children.

President Biden has proposed one approach to handling the estate tax. Other Democrats are proposing their own estate tax changes.

Senators Chris Van Hollen (D-MD), Cory Booker (D-NJ), Bernie Sanders (Independent-VT), Elizabeth Warren (D-MA), and Sheldon Whitehouse (D-RI) recently introduced the Sensible Taxation and Equity Promotion (STEP) Act which expands on the President鈥檚 plans.  

The STEP Act includes exemptions to focus proposed estate tax proposals more on unrealized capital gains over $1 million and adds an additional exclusion of up to $500,000 for personal residences. On top of the $1 million capital gains exemption, this proposal includes an exclusion of up to $500,000 for personal residences 鈥� which is carried over from the current law. Assets held in retirement accounts would continue to be exempt from the capital gains tax. Gifts and bequests to charities would also be exempt.

The STEP Act would somewhat reduce but not eliminate the financial burdens the Browns鈥� estate would face from taxing unrealized capital gains after death dealing with their private residence. The Smiths鈥� problems with their ranch would not be helped by the STEP Act. Their estate would be allowed to pay the tax over a 15-year period 鈥� interest only for the first five years and then 10 equal payments for the remaining 10 years. But selling the property would require payment of the tax in full, and there would be a lien attached to any property which would likely prevent the Smiths鈥� estate from refinancing the property without paying off the tax owed the IRS. 

It is hard to predict the changes Congress will make to either President Biden鈥檚 estate tax plan or the STEP Act, but there is no doubt that the Administration will strongly push changes to the estate tax laws. Republicans are not expected to vote for any changes to the individual tax code, especially those changes that hit the middle class and individuals who run family businesses, ranches, and farms. Senate Democrats will be forced to try to pass these tax changes under reconciliation, which means that they will need the support of all 50 Senate Democrats.

Erik Paulsen is a strategic consultant with Total Spectrum. He represented Minnesota in the U.S. House of Representatives from 2009-2019 and was chairman of the Joint Economic Committee.

This originally appeared in The Well News on May 3, 2021. The views expressed in this article are the writer鈥檚 own.

Hearing Report

By Ramona Lessen, Executive Director, Total Spectrum

House Energy and Commerce Subcommittee on Health hearing on 鈥淣egotiating a Better Deal:  Legislation to Lower the Cost of Prescription Drugs鈥�

Tuesday, May 4, 2021 – 11:30am

To view a livestream of the hearing please .

Opening Statements:

Congressman Frank Pallone Jr, (D-NJ), Committee Chairman

Congresswoman Anna G. Eshoo (D-CA), Subcommittee Chairwoman

Congressman John Joyce, MD (R-PA), Subcommittee Member

Witnesses:

Therese Ball

Patient

Michael A. Carrier

Distinguished Professor of Law

Rutgers Law School

Rachel Sachs

Associate Professor of Law

Washington University in St. Louis, School of Law

Gaurav Gupta, M.D., M.S.E.

Founder

Ascendant BioCapital

Khrystal K. Davis, J.D.

Rare Disease Caregiver & Patient Advocate

Texas Rare Alliance Founding President

House Science, Space and Technology Subcommittee on Energy hearing on Climate and Energy Science Research at the Department of Energy

Tuesday, May 4, 2021; 11:00 a.m.

To view a livestream of the hearing please .

Opening Statements:

Congressman Jamaal Bowman (D-NY), Subcommittee Chairman

Congresswoman Eddie Bernice Johnson (D-TX), Committee Chairwoman

Congressman Randy Weber (R-TX), Subcommittee Ranking Member

Minority Statement

Witnesses:

Dr. Kristin Persson

Director, Molecular Foundry

Lawrence Berkeley National Laboratory

Dr. Fikile Brushett

Associate Professor of Chemical Engineering

Massachusetts Institute of Technology

Dr. Esther Takeuchi,

Chair, Interdisciplinary Science Department

Brookhaven National Laboratory

Dr. Xubin Zeng,

Professor, Hydrology and Atmospheric Sciences

The University of Arizona

Dr. Narasimha Rao

Associate Professor of Energy Systems

Yale School of the Environment

2020 reapportionment: Power shifts slightly to South
and West

The Apportionment Process Explained

The Redistricting Process Explained

What you need to know about New Applications of Artificial Intelligence Software in Health Care

What you need to know about REAL ID

Vaccine tracker: 56.7% of the U.S. has received
first dose

Congressional Calendar

All times in EDT

Monday, May 3

• 11:00am House Oversight and Reform Committee – Improving Government Accountability/Transparency.
• 11:00 am House Armed Services Subcommittee on Readiness – Amphibious Assault Vehicle Mishap Investigation.
• 12 noon House Appropriations Committee – Member鈥檚 Day .
• 12 noon House Education and Labor Subcommittee on Workforce Protections – Racist Exclusions from the Fair Labor Standards Act.

Tuesday, May 4

• 10:00 am House Appropriations on Commerce, Justice, Science and Related Agencies (117^th Congress) hearing – Justice Department budget.
• 11:00 am House Armed Services Subcommittee on Intelligence and Special Operations – Countering Weapons of Mass Destruction for FY 2022.
• 11:00 am House Science, Space and Technology Subcommittee on Energy – Climate/Energy Science Research.
• 11:00 am House Oversight and Reform Subcommittee on Economic and Consumer Policy – Organ Transplantation System Reform.
• 11:30 am House Energy and Commerce Subcommittee on Health – Lowering Prescription Drug Costs.
• 12 noon House Appropriations Subcommittee on Defense – National Guard and Reserves.
• 12 noon House Financial Services Subcommittee on Housing, Community Development Insurance – Housing Resilience/Climate Change.
• 1:00 pm House Foreign Affairs Committee – Unfolding Crisis in Burma.
• 2:00 pm House Homeland Security Subcommittee on Transportation and Maritime Security – Transportation Security Administration Workforce.
• 2:00 pm House Veterans Affairs Committee – Pending Legislation.
• 3:00 pm House Natural Resources Subcommittee on Water, Oceans and Wildlife   – Coral Reef Conservation.

Wednesday, May 5

• 10:00 am House Appropriations Subcommittees 鈥� The Departments of Labor, Health and Human Services, Education and Related Agencies (117^th Congress) – Education Budget.
• 10:00 am House Judiciary Committee hearing – US Copyright Office Oversight.
• 10:00 am House Veterans鈥� Affairs Committee – Pending Legislation.
• 10:00 am House Appropriations Subcommittee on Homeland Security – TSA Budget/Operations Pandemic Implications.
• 10:00 am House Oversight and Reform Subcommittee on civil Rights and Civil Liberties (117^th Congress) – Midship Pipeline/Landowners.
• 11:00 am House Foreign Affairs Subcommittee on Europe, Energy, the Environment and Cyber – Reaffirming the Good Friday Agreement.
• 11:00 am House Natural Resources Committee – Pending Legislation.
• 11:00 am House Ways and Means Committee – Budget Views and Estimates/Retirement Security.
• 11:30 am House Energy and Commerce Subcommittee on Energy – Electric Vehicle Legislation.
• 12 noon House Appropriations Subcommittee on Defense – Army Budget.
• 12 noon House Education and Labor Subcommittee on Health, Employment, Labor and Pensions – Lower Drug Costs/Affordable Health Care Access.
• 2:30 pm House Appropriations Subcommittee on Military Construction, Veterans Affairs and Related Agencies – Military/VA Related Agencies Outlook.
• 2:30 pm House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection and Innovation – Cybersecurity Crisis Policy Solutions.
• 3:00 pm House Armed Services and House Foreign Affairs Subcommittees on Strategic Forces and International Development, International Organizations and Global Corporate Social Impact Joint – International Rules-based order in Space.

Thursday, May 6

• 10:00 am House Appropriations Subcommittee on Homeland Security – US Secret Service Operational Priorities.
• 10:00 am House Veterans鈥� Affairs Subcommittee on Oversight and Investigations – VA Workforce Diversity-Equity-Inclusion Initiatives.
• 11:00 am House Science, Space, and Technology Subcommittee on Research and Technology – National Science Foundation Research (Part II).
• 11:00 am House Transportation and Infrastructure Subcommittee on Railroads, Pipelines and Hazardous Materials – High-Speed Rail/Emerging Rail Technologies.
• 11:00 am House Oversight and Reform Committee – America鈥檚 Black Maternal Health Crisis.
• 11:00 am House Natural Resources Committee – Member鈥檚 Day .
• 11:30 am House Energy and Commerce Subcommittee on Communications and Technology – Broadband Access/Affordability Disparities.
• 12 noon House Financial Services Committee – GameStop Short Selling/Market Volatility (Part III).
• 12:30 pm House Foreign Affairs Committee – Atrocities Against Uyghurs/Minorities in Xinjiang.
• 1:00 pm House Appropriations Subcommittee on Energy and Water Development – Energy Budget.
• 1:00 pm House Small Business Subcommittee on Innovation, Entrepreneurship and Workforce Development – Growing Jobs through Infrastructure Investment.
• 2:00 pm House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration and related agencies – USDA rural Development.
• 2:00 pm House Appropriations Subcommittee on Commerce, Justice, Science and related agencies – Commerce Budget.
• 2:00 pm House Administration Subcommittee on Elections – Voting Rights – Voter List Purges.
• 2:00 pm House Homeland Security Subcommittee on Oversight, Management and Accountability – Addressing Migration Rush Factors.
• 2:30pm House Education Labor Subcommittee on Early Childhood, Elementary and Secondary Education hearing – COVID-19 Impact on Students with Disabilities.
• 3:00 pm House Armed Services Subcommittee on Readiness – Ship/Submarine Maintenance.

Friday, May 7

• 12 noon House Appropriations Subcommittee on Defense – Air Force/Space Force Budget.
• 12 noon House Financial Services Committee – Human-Centered AI Addressing Social Justice.

This e-newsletter is produced by Total Spectrum/Steve Gordon and Associates and the Arizona Chamber of Commerce and Industry. The views expressed herein may include subjective commentary and analysis that are the views of the editors and authors alone. Information in this e-newsletter is obtained from sources believed to be reliable, but that cannot be guaranteed as independently investigated or verified. Information in this e-newsletter is not an endorsement, advertisement, recommendation, or any type of advice; political, legal, financial or otherwise. For questions about the content of this e-newsletter, please contact the Arizona Chamber of Commerce and Industry.

The post This Week In Washington appeared first on 探花精选.

More Info: Michael DiMaria | Partner and SW Regional Director | 602-717-3891 | mdimaria@totalspectrumsga.com

Thanks for your interest in Washington, and thanks for reading This Week in Washington.

There is nothing generating more interest and more intensity in Congress right now than President Biden鈥檚 $2.3 trillion infrastructure proposal and the equally massive corporate tax increase that Democrats want to pay for their plan. I asked to summarize some of the corporate tax changes Democrats are talking about as part of this infrastructure proposal 鈥� and then to tease us with some of the changes to the individual tax code that are being discussed for their next legislative agenda.

brings us up to date on defense issues, and highlights two Senate hearings:  one before the Senate Finance Committee to consider the nominations of Andrea Joan Palm to be Deputy Secretary of Health and Human Services and Chiquita Brooks LaSure to be Administrator of the Centers for Medicare and Medicaid, and a second of the Senate Appropriations Committee focused on the American Jobs Plan, infrastructure, climate change, and America鈥檚 future.

Congressman Kevin Brady, former Chairman of the House Ways and Means Committee and now the committee鈥檚 Ranking Member, recently announced his retirement from Congress at the end of 2022. served with Congressman Brady and they were housemates in Washington. Erik wrote a wonderful short article about his friend, colleague, and mentor Congressman Brady 鈥� which I am sure you will enjoy.

I also want to introduce you to , our newest Total Spectrum partner. Blake has spent more than a decade creating and administrating health care policy both for a Georgia Congressman and two Georgia Governors 鈥� and he was supremely successful as a healthcare advocate and consultant during his first stint with us. Blake will be Total Spectrum Georgia鈥檚 Chief Health Policy Advisor,  but he will have a national reach and we will feature articles from him in future issues of This Week.

focuses on Senator Shelley Moore Capito, Republican of West Virginia. Senator Capito serves on four Committees 鈥� Appropriations; Commerce, Science, and Transportation; Environment and Public Works where she is the Ranking Member; and Rules and Administration. She is point person on assembling the Republican response to the administration鈥檚 infrastructure proposal and is recognized for her legislative reach and effectiveness. served with Shelley Moore Capito in the House of Representatives and they have a wonderful discussion as former colleagues and friends.

We will be back in two weeks with the next issue of This Week in Washington.  Stay well, and thanks again.

Stay well.

, Managing Partner

Washington Whispers

By Patrick Robertson, Total Spectrum Strategic Consultant

鈥淥ur new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.鈥�

This quote from Benjamin Franklin, a year before his death, in a letter to French scientist Jean-Baptiste Le Roy was meant as a commentary on the permanence of the U.S. Constitution, but it has evolved into commentary on the permanence of both death and taxes.

Talking about death is not my bailiwick, so I will focus today on taxes, but there is an intersection later in this article on the estate tax. The one thing that has changed dramatically since 1789 is how much we legislate through the tax code 鈥� both to encourage or discourage certain behaviors, not to mention how we raise revenue.

Tax has become one of the leading topics of conversation in Washington in recent weeks as President Biden released his , intended to help pay for his massive infrastructure proposal. But in Washington spending is always easy but paying for it is the hard part. The bottom line is that the current federal revenue stream will not support $2 to $4 trillion in new infrastructure spending over the next 10 years, so the federal government will either need to cut spending elsewhere or raise more revenue through the tax code. 

discussed the administration鈥檚 goals for the infrastructure bill and gave an overview of their plan to pay for this program in the of This Week in Washington.

Looking more closely at the Made in America Tax Plan, it is no surprise that the administration chose to increase taxes on corporations rather than cut other government spending.  The Biden plan raises a number of taxes on corporations, both directly and through a major shift in the international tax regime. In summary it would:

• Raise the corporate tax rate to 28%, up from the current 21%;
• Raise the tax on Global Intangible Low Tax Income (GILTI) to 21%. eliminate the exemption of a 10% return on an investment abroad and calculate GILTI on a country-by-country basis;
• Impose a 15% tax on book income, levied on profits instead of taxable income (only for companies with revenues over $100 million);
• Create a tax credit for bringing jobs back to the U.S. and deny deductions for moving jobs overseas;
• Increase corporate tax enforcement;
• Eliminate some deductions and credits for the fossil fuel industry; and
• Repeal the Foreign-Derived Intangible Income (FDII) deduction.

Some of these proposals overturn the Trump tax law and others are changes long sought by those who think corporations should pay more on their earnings overseas. The most important thing to note is that this is the high-water mark for most of these proposals.

A cadre of Senate Democrats has already come forward to say they do not want the corporate rate to go 28%, so my advice is to assume the highest new corporate rate will be 25%. Senate Democrats will either need to stick together and pass the plan through budget reconciliation 鈥� the same way they passed The American Rescue Plan earlier this year 鈥� or pass a bipartisan bill with the support of at least 10 Senate Republicans.

Almost every Senate Republican has already said that they will not support major tax increases. So, in short, the administration faces the decision to pursue a smaller, more narrow, bipartisan infrastructure bill or go big and use budget reconciliation to pass both the spending and tax pieces of the plan.

There will be discussion on a variety of technical issues, and tax professionals in Congress and the Biden administration will really hold sway over their inclusion in this bill. If your business is impacted by a technical issue, it will be important for you to engage 鈥� and candidly, sooner rather than later.

A report on the proposed increases in corporate taxes was formally released several weeks ago by the Department of the Treasury. During the campaign, the Biden team also spoke about an increase in individual rates for wealthy individuals, and we can expect those proposed changes will be released in the future to pay for the second part of the administration鈥檚 major legislative agenda. Several liberal Democratic Senators have recently introduced a handful of bills that reflect parts of the Biden campaign鈥檚 positions on increasing taxes on individuals.

Senator Elizabeth Warren (D-MA) , imposing a 2% tax on individual net worth above $50 million and an additional 1% surtax on net worth above $1 billion.

A few Democratic Senators have produced bills that would make changes in the estate tax, such as:

• Cut the estate tax exemption from its current $11.7 million to $3.5 million and reduce the gift tax allowance to $1 million ().
• Create a progressive tax regime for estates:  45% for estates $3.5 million- $10 million, 50% for estates between $10 million and $1 billion, and 65% for estates over $1 billion ().
• Tax unrealized capital gains at death with a $1 million exemption for smaller estates, allow up to 15 years to pay the tax, and provide for a deduction against the estate tax for any taxes paid and a $500,000 exemption for personal residences (). This step-up in basis would ensure assets do not forgo taxes when they are transferred in an estate. There is an exemption in this plan for assets held in a retirement account.

In addition, many Senate Democrats have proposed moving the top personal income tax rate back to 39.6%, the level before the Trump tax bill lowered that rate to 37%, as well as normalizing capital gains and ordinary income rates.  The Biden campaign said these changes would only affect 鈥渢he rich.鈥� Presently, the income tax change is proposed to be on income over $400,000 and the capital gains rate changes would be for those making more than $1 million a year.

These proposed changes to individual and estate taxes 鈥� like the proposed corporate tax changes 鈥� are likely the high-water mark. It is highly probable that if Democrats pursue these tax changes they will be softened by the politics of the House and Senate.

There is also a significant faction of Democrats who are looking to reverse the elimination of the $10,000 cap on the deductibility of state and local taxes (SALT). The fate of that provision is uncertain. 

As you can see, there is a great deal in play on the tax front, and I did not even mention direct pay for renewable credits, increased incentives for electric vehicles, improvements to the community development tax credits, and so many other items in the tax code that are currently being discussed.

Many potential tax increases are on the table, as well as new and enhanced incentives. The one thing for sure is that tax planners and tax professionals are going to be very busy.

Total Spectrum Spotlight: United States Senator Shelley Moore Capito

and Senator Shelley Moore Capito (R-WV) discuss her views on the scope of infrastructure, including broadband deployment. She explains the role Republicans may play in shaping the infrastructure proposals to fund these investments, and the possible return of earmarks. Senator Capito also provides insight into the ever-contentious Senate filibuster rule.

Blake Fulenwider: Total Spectrum鈥檚 New Partner and Chief Health Policy Advisor

By , Total Spectrum Managing Partner

I am very pleased to announce that has returned to Total Spectrum and will be a Partner and Total Spectrum Georgia鈥檚 Chief Health Policy Advisor.  

Blake gained extensive experience as a consultant and healthcare advocate during his first stint at Total Spectrum. He also has served in senior leadership positions for a Georgia congressman and two Georgia governors, and has more than a decade of experience creating and administrating federal and state government healthcare policy.

He spent the last three years as Chief Health Policy Officer for the Georgia Department of Community Health (DCH). Blake was responsible for oversight and administration of the Division of Medical Assistance Plans 鈥� Medicaid, the Children鈥檚 Health Insurance Program (CHIP), the State Benefit Plan, the Office of Health Analytics and Reporting, and the Office of Continuous Program Improvement. These programs comprise over 98% of the DCH鈥檚 budget and provide healthcare for one in four Georgians.

As Chief Health Policy Officer, Blake was directed by Georgia Governor Brian Kemp to develop and implement innovative waivers to address accessibility, affordability, and the quality of healthcare. Blake worked with the Governor鈥檚 office to draft, submit, negotiate, and ultimately gain approval from the federal government for two novel waivers to the Patients First Act. These groundbreaking waivers are currently being implemented and serve as a model for the nation.

Blake was Deputy Commissioner of the Georgia Department of Community Health in the Administration of former Governor Nathan Deal.  In this capacity, Blake successfully completed the first comprehensive reorganization of the agency鈥檚 Medicaid division in over 20 years.

He first earned his policy chops as then-Congressman Deal鈥檚 health policy advisor. There he led the Congressman鈥檚 agenda for the management of the Patient Protection and Affordable Care Act (PPACA), food safety modernization, the establishment of a biosimilar drug approval pathway, CHIP reauthorization and Congressional response to the 2009 H1N1 influenza pandemic.

Blake Fulenwider is a well-known and respected voice for healthcare policy among federal and state executive branch officials, members of Congress and the Georgia General Assembly, stakeholders and advocates across the nation. While he will be based in our Georgia office, his reach will be national.

A few words about former House Ways and Means Chairman Kevin Brady

By Congressman Erik Paulsen, Total Spectrum Strategic Consultant

Last week Kevin Brady, one of the smartest legislators and most gracious gentlemen in Congress, announced his retirement. As the top Republican on the House Ways and Means Committee – widely considered the most powerful committee in Congress due to its broad jurisdiction over tax writing, health care, trade, and Social Security issues – Congressman Brady鈥檚 most significant achievement was shepherding the 2017 Tax Cuts and Jobs Act, the biggest tax reform in a generation.

Congressman Brady is well-known for his policy chops and institutional knowledge of complex issues like the tax code. He played a major role securing many of our new trade agreements, including the new U.S.-Mexico-Canada (USMCA) renegotiation of NAFTA and helped author important health care reforms like last year鈥檚 ban on surprise medical bills. As a former head of a local chamber of commerce, he has both the ability and experience to effectively communicate these complex issues.

I was pleasedto serve on the Ways and Means Committee, but I was honored to serve with Kevin Brady. He ensured our hearings were thoughtful and engaging so Members could gain insight to craft legislation and shape policy, rather than creating CSPAN moments of drama for which politicians are so well known in the advent of social media.

He is a fierce advocate for his principles, yet is always diplomatic and respectful of opposing points of view. It was not a surprise that Congressman Richard Neal, the current Chairman of the Ways and Means Committee, called Kevin Brady鈥檚 retirement 鈥渁 loss for both the Ways and Means Committee and Congress.鈥�

Congressman Brady is also a fantastic mentor. He once served as the chairman of the Joint Economic Committee and he gave me important counsel when I became chairman of that committee.

I was also Kevin鈥檚 housemate in Washington for 10 years while I was in Congress and saw his unquestionable character firsthand.  His keen insight and experience were invaluable to me in navigating and advancing my own legislative priorities, but more important was the time we spent together in conversations about our children, spouses, and home communities. Our families were able to get to know each other as well, and those relationships will continue for years to come.

In classic Brady form, he announced his retirement to his home community of friends at the Woodland Economic Outlook Conference and the local chamber of commerce he used to lead, instead of releasing a press release out of Washington, D.C.  America needs more genuine people and real leaders like Kevin Brady.

Defense Update

By Al Jackson, Total Spectrum Strategic Consultant

Earlier this month the Biden administration released a 鈥渟kinny budget鈥� for Fiscal Year 2022 with topline figures for each department.  It included $715 billion for the Department of Defense, a 1.7% increase from FY2021.  This number is shy of the FY2022 planned budget from the Trump administration, which would have been $722 billion.  The entire proposed topline number is $753 billion, of which $38 billion is dedicated to other defense-related accounts such as the Energy Department nuclear weapons modernization accounts.  

That number, which when combined with inflation results in a cut in defense spending in FY2022, which has drawn criticism from Republicans who desire a spending increase in the range of 3-5%.  On the contrary, some Democrats from the more progressive liberal wing of the party want to spend less on defense and more on domestic programs.  Administration officials have signaled that the budget would be released May 3, but that target has slipped due to competing priorities such as an additional COVID relief bill, two infrastructure spending bills, and a debt ceiling debate that will need to be resolved by August 1, 2021.  Considering these, the budget from the administration will likely not be released until late May or early June.  This delay will invariably raise the probability of a long-term continuing resolution which, in the past, has had a detrimental impact on the Defense Department.  A delay on the release of a new administration鈥檚 budget is customary, however, a May/June release date is out of the ordinary.

In a return to budgetary order after 20 years of paying for wars in Iraq, Afghanistan, and Syria outside of the defense budget, the Biden administration is moving the Overseas Contingency Operations funding back into the base budget for FY2022.  The move comes as part of the White House鈥檚 FY2022 budget request as the administration looks to wind down the presence of thousands of U.S. troops on the ground in Central Command鈥檚 area of responsibility, per the recent announcement related to the U.S. presence in Afghanistan. 

One of the big winners in the budget proposal is the State Department, which sees a $6.8 billion increase in the budget, an increase of 12% over FY2021.  The topline number is $63.5 billion, a request in keeping with the Biden administration鈥檚 focus on buttressing diplomacy, moving away from an 鈥淎merica first鈥� agenda from the previous administration.

The House Committee on Appropriations is targeting the end of June to markup its version of the defense funding bill.  Floor votes are expected by mid-July, as there is a commitment from House leadership to get every appropriations bill off the floor before the August recess.  House Democrats have signaled the defense spending bill will mirror the federal budget, focusing on job creation, education and research, clean energy and climate resiliency as well as workforce development.  This approach will hopefully appease progressive Democrats who would otherwise seek defense cuts.

Of the 61 Senate confirmed roles at the Department of Defense, only six nominations have been named and only the Pentagon鈥檚 top two civilians have been confirmed.  Biden鈥檚 nominees for those jobs are expected to be considered by the Senate Committee on Armed Services, however, the process will face competition from other legislative priorities as it relates to floor time 鈥� COVID relief, infrastructure, etc. 

As it relates to China, the defense industry has experienced a spike in Chinese company influence into the U.S. defense manufacturing base.  According to decision science firm Govini, the presence of Chinese investment in the U.S. defense supply chain increased by 420% between 2010 and 2019.  In an attempt to reverse that trend, former Pentagon acquisition chief Ellen Lord established the Trusted Capital program in January to encourage vetted U.S. investors to team with small tech firms focused on areas such as artificial intelligence, biotech, and other emerging technologies.  This effort continues under the Biden administration, and has approved more than $311 million in potential partnerships between U.S. venture capital firms and small tech firms since January in an attempt to keep Chinese money and influence out. 

Additionally, last month a new bipartisan House Committee on Armed Services task force was formed which will likely introduce language into the upcoming National Defense Authorization Act that will attempt to shore up support for domestic supply chains, thereby lessening the influence of Chinese companies in the U.S. defense manufacturing base.  This task force is led by Rep. Elissa Slotkin (D-MI) and Rep. Mike Gallagher (R-WI). 

Hearing Report

By Ramona Lessen, Executive Director, Total Spectrum

Senate Finance Committee Hearing to Consider the Nominations of Andrea Joan Palm to be Deputy Secretary of Health and Human Services and Chiquita Brooks-LaSure to be Administrator of the Centers for Medicare and Medicaid Services

Thursday, April 15, 2021; 9:30 AM

To view a livestream of the hearing please .

Opening Statements:

Senator Ron Wyden (D-OR), Chairman

Senator Mike Crapo (R-ID), Ranking Member

Witnesses:

Andrea Palm

Of Wisconsin, To Be Deputy Secretary

United States Department of Health and Human Services

Washington, D.C.

Chiquita Brooks-LaSure

Of Virginia, To Be Administrator Centers For Medicare And Medicaid Services

United States Department of Health and Human Services

Washington, D.C.

Senate Appropriations Committee Hearing

鈥淭he American Jobs Plan:  Infrastructure, Climate Change, and Investing in Our Nation鈥檚 Future鈥�

Tuesday, April 20, 2021; 10:30 a.m.

To view a livestream of the hearing please .

Opening Statements:

Senator Patrick Leahy (D-VT), Chairman

Senator Richard Shelby (R-AL), Vice Chairman

Witnesses:

The Honorable Pete Buttigieg

Secretary

Department of Transportation

The Honorable Michael Regan

Administrator

Environmental Protection Agency

The Honorable Gina Raimondo

Secretary

Department of Commerce

The Honorable Marcia Fudge

Secretary

Department of Housing and Urban Development

Vaccine Tracker:听 51.5% of the U.S. has received first dose

Biden lays out first budget request

What you need to know about Climate Tort Litigation

What you need to know about Covid-19 Liability Protections

$50K student loan relief would erase most
federal borrowers鈥� debt

Rolling out legalization of recreational marijuana

Congressional Calendar – Week of April 19

All times in EDT

Tuesday, April 20

• 9:30 a.m. Senate Appropriations Subcommittee on the Defense Health Program.
• 9:30 a.m. House Rules Committee virtual on three bills, including H.R. 1333, the NO BAN Act, which would limit presidential authority to impose travel bans.
• 9:30 a.m. Senate Armed Services Committee to examine U.S. Strategic Command and U.S. Space Command in review of the fiscal 2022 defense authorization request and Future Years Defense Program.
• 10 a.m. House Agriculture Committee virtual on the internet connectivity needs of rural America.
• 10 a.m. Senate Banking Committee virtual on investing in rural communities.
• 10 a.m. Senate Commerce Committee hybrid on strengthening the Federal Trade Commission鈥檚 authority to protect consumers.
• 10 a.m. Senate Finance Committee on combating racial, ethnic, and gender disparities in the tax code.
• 10 a.m. Senate HELP Committee to examine workforce training and modernization.
• 10 a.m. Senate Judiciary Committee to examine voting rights.
• 10 a.m. House Small Business Committee hybrid on the Small Business Association’s pandemic response program.
• 10 a.m. House Financial Services Committee hybrid of several bills, as well as the fiscal year 2022 budget views and estimates of the committee.
• 10 a.m. House Judiciary Committee on five bills, including H.R. 1843, the House鈥檚 version of the Covid-19 hate crimes bill.
• 10:15 a.m. House Education and Labor Committee virtual on improving accountability and preventing fraud in the for-profit college system.
• 10:15 a.m. House Education and Labor Committee virtual to approve new subcommittee assignments.
• 10:30 a.m. Senate Appropriations Committee on the American Jobs Plan, infrastructure and climate change. Transportation Secretary Pete Buttigieg, Environmental Protection Agency Administrator Michael Regan, Commerce Secretary Gina Raimondo and Housing and Urban Development Secretary Marcia Fudge testify.
• Noon. House Select Climate Crisis Committee virtual on creating new jobs and economic growth through climate action.

Wednesday, April 21

• 10 a.m. Senate Foreign Relations Committee to consider three bills, including S. 1169, the Strategic Competition Act of 2021, which would set out a diplomatic strategy towards China.
• 10 a.m. Senate Judiciary Subcommittee on Intellectual Property 鈥� Improving Access and Inclusivity in the Patent System:听 Unleashing America鈥檚 Economic Engine.
• 10 a.m. Senate Commerce Committee hybrid on the nomination of Bill Nelson to be NASA Administrator and Lina Kahn to be a commissioner on the Federal Trade Commission.
• 2 p.m. Senate Appropriations Subcommittee 鈥� FY 2022 Budget Requests.
• 2 p.m. House Homeland Security Committee virtual on oversight of the Department of Homeland Security鈥檚 inspector general.
• 2 p.m. House Foreign Affairs Committee hybrid of 12 bills, including H.R. 1155, the Uyghur Forced Labor Prevention Act, which would aim to stop forced labor imports from China.听
• TBA. Senate HELP Committee on the nominations of Julie Su for deputy secretary of Labor, Cynthia Marten for deputy secretary of Education and James Kvaal for undersecretary of Education.
• 2:30 p.m. Senate Small Business Committee on the nomination of Dilawar Syed to be deputy administrator of the Small Business Administration.
• 2:30 p.m. Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights 鈥� Antitrust Applied:听 Examining Competition in App Stores.
• 2:30 p.m. Senate Commerce, Science and Transportation Subcommittee on Aviation Safety, Operations and Innovation 鈥� Prepare for Takeoff:听 America鈥檚 Safe Return to Air Travel.

Thursday, April 22

• 9:30 a.m. Senate Armed Services Committee to examine U.S. Central Command and U.S. Africa Command in review of the fiscal year 2022 Defense Authorization Request and Future Years Defense Program.
• 9:30 a.m. Senate Agriculture Committee on the nomination of Jewel Bronaugh to be deputy secretary of Agriculture.
• 10 a.m. Senate Finance Committee on U.S.-China relations.
• 10 a.m. Senate Judiciary Subcommittee on Criminal Justice and Counterterrorism 鈥� Behavioral Health and Policing:  Interactions and Solutions.
• 10 a.m. Senate Energy and Natural Resources Committee on carbon dioxide utilization technologies.
• 10 a.m. Senate HELP Committee on protecting U.S. biomedical research and preventing undue foreign influence.
• 10 a.m. Senate Banking Committee virtual on the clean energy economy. 
• 10:15 a.m. House Education and Labor Committee virtual members鈥� day .
• 10:15 a.m. Senate Homeland Security and Governmental Affairs Committee hybrid on the nominations of Kiran Ahuja to be director of the Office of Personnel Management and Anton Hajjar, Amber McReynolds and Ronald Stroman to be governors of the United States Postal Service.

This e-newsletter is produced by Total Spectrum/Steve Gordon and Associates and the Arizona Chamber of Commerce and Industry. The views expressed herein may include subjective commentary and analysis that are the views of the editors and authors alone. Information in this e-newsletter is obtained from sources believed to be reliable, but that cannot be guaranteed as independently investigated or verified. Information in this e-newsletter is not an endorsement, advertisement, recommendation, or any type of advice; political, legal, financial or otherwise. For questions about the content of this e-newsletter, please contact the Arizona Chamber of Commerce and Industry.

The post This Week In Washington appeared first on 探花精选.

More Info: Michael DiMaria | Partner and SW Regional Director | 602-717-3891 | mdimaria@totalspectrumsga.com

Thanks for your interest in Washington, D.C., and thanks for reading This Week in Washington.

The cherry blossoms are out and tourists are beginning to return to Washington. Congress is on recess, so we thought that we would take a deep look at the Administration鈥檚 infrastructure proposal, the American Jobs Plan.

is one of the newest members of the Total Spectrum team.  He currently divides his time between Mesa, Arizona and Minneapolis.  In his article, Steve top-lines many of the provisions of the infrastructure proposal.  Heard on the Hill looks at the plan from the Administration鈥檚 perspective and that of Senate Republicans and suggests some things to watch as this bill works its way through Congress.

We are happy to include a guest column by , Executive Director of the Arizona Rock Products Association.  Steve discusses the outlook for state and local transportation in Arizona.

Congressman is a former member of the House Ways and Means Committee and was Chairman of the Joint Economic Committee. He had prepared for this week鈥檚 edition an article about the tax provisions that are part of President Biden鈥檚 infrastructure bill, but Wednesday morning the Treasury Department released a detailed proposal on the tax proposal, which is called the Made in America Plan. Congressman Paulsen will review this plan and we will include his report in a special future edition of This Week in Washington.

An upcoming interview for Total Spectrum Spotlight will be with Senator Shelley Moore Capito (R-WV). Senator Capito is the ranking member of the Senate Environment and Public Works Committee, and serves on the Committees on Appropriations, Commerce Science and Transportation, and Rules and Administration.  Look for more from her in our next edition.

Stay well.

, Managing Partner

Heard on the Hill

By Steve Gordon, Total Spectrum Managing Partner

Congress is on a state and district work period, but conversation has not quieted about the Administration鈥檚 infrastructure bill called the American Jobs Plan.

Everyone agrees that it is not an infrastructure bill as most of us would define it. It is a massive — $2.3 trillion 鈥� piece of legislation.  It expands the use of infrastructure far beyond roads, bridges, and broadband to include support for schools, federal buildings, power stations for electric vehicles, home care workers, and job training.

The plan has four parts:

• How we move: investments in roads, bridges, rail 鈥� both passenger and freight 鈥� and other parts of the transportation infrastructure.
• How we live: investments in broadband, water, power, housing, and buildings.
• How we care for one another: investments in home and community-based care for older Americans and those with disabilities.
• How we make things: investments in manufacturing, research and development, the development of a high-quality work force, and supply chains.

The bill pays for these investments by proposing to increase corporate income tax rates, increase rates for individuals (or couples鈥攊t鈥檚 not yet clear) with income over $400,000 per year, and changing small business rates and provisions for pass-throughs like LLCs.

Democrats maintain that even with the outstanding jobs report for March, more than 9.5 million Americans remain out of work, one in three families are struggling, and millions of small businesses are just hanging on. The Biden Administration in its talking points memo for their infrastructure bill maintained that 鈥渢his is a once in a generation chance to create a new economy by increasing public investment to where it was in the 1960s.鈥�  They want to create 鈥済ood paying jobs by ensuring a free and fair chance to organize and join a union.鈥�

Republicans counter that the Administration threw the proverbial kitchen sink in their bill. There appears to be broad Republican support for a true infrastructure bill, but it would probably be in the $600-$800 billion range.  Republicans point out that the economy was really humming and we were at full employment prior to the pandemic 鈥� progress that was the result of the tax changes in the 2017 Tax Cuts and Jobs Act. They say that raising the taxes on American big business will make us less competitive in a global economy, and that the worst way to fund this bill is to tax small business, which is the engine of our economy.

President Clinton famously said that the 鈥渆ra of big government is over.鈥�  President Biden鈥檚 Administration says that these investments must be made to keep America competitive in the global economy, and that these public investments will ensure that all sectors of our population will not be left behind.

Republicans counter that the marketplace is the best way to create growth and opportunity, and that taxpayers cannot afford to keep spending as if there is no tomorrow. They point out that the federal government spent $4.4 trillion in all of 2019, and that President Biden proposes to match that in six months.

Republicans add that this is more a tax bill than it is an infrastructure bill. They point out that at least $900 billion of the $2.3 trillion American Jobs Plan pays for things that are a long way from infrastructure, and add that the proposed program delivers benefits for eight years yet requires higher taxes for 15 years.

Some Democrats agree. Senator Joe Manchin (D-WV) says he will not let this bill get to the Senate floor in its current state.  Former Senator Heidi Heitkamp (D-ND) said 鈥渋t is an Oprah Winfrey style of legislating. You get a road, and you get a hospital.鈥�

Two things to watch:

Paying for infrastructure. This is like the old Irish saying that 鈥渆verybody wants to go to heaven, but nobody wants to die.鈥� Everybody wants new roads, more broadband, new airport terminals and a million other things, but no one is prepared to pay for them.听 A perfect example: 听we have not raised the gas tax since the 1970s and it has not even been indexed to inflation. We really do have to pay for the things we want and need, the question is who gets taxed and what is the impact.

Senator John Barrasso (R-WY) was Chairman of the Senate Environment and Public Works Committee in the last Congress. His committee passed in 2019 a one-year extension of the highway bill, which Senator Barrasso hoped would give Congress more time to work out a long term bipartisan solution. His bill unfortunately never got a vote on the floor of the Senate because Republicans could not agree on how to fund it.

Reconciliation Really Rules. 听Young Republican Senators often chaffed about the need to keep the filibuster when Republicans were in control, but Leader McConnell reminded them that someday they would be in the minority and would look at the issue differently. Progressive Democrats are now pushing to get rid of the filibuster, but Senators Kyrsten Sinema, Joe Manchin, Jon Tester (D-MT), and Dianne Feinstein (D-CA) are mostly opposed.

Majority Leader Chuck Schumer has made the case that Democrats can use reconciliation 鈥� which requires only a simple majority 鈥� twice more this year, and it appears that the Senate Parliamentarian agrees in principle. The details need to be worked out, but it looks like Democrats will have the opportunity to pass both the American Jobs Plan and one more piece of major legislation this year through the Senate using reconciliation, as long as the items in the bill pertain to budget matters.

President Biden’s American Jobs Plan: Infrastructure and More

By Steve Veverka, Total Spectrum Strategic Partner

Last Thursday morning, the Biden Administration released details of its , the first wave of the Administration鈥檚 two-part American Rescue Plan.

The American Jobs Plan proposes to spend more than $2 trillion. The focus is on physical infrastructure 鈥� roads, bridges, water and sewer projects, and broadband 鈥� and also on providers and employees of home and community-based care. While there is less certainty on what leadership in the House and Senate will prioritize as they move forward or how much they will try to spend, the signal from the White House is a massive focus on transportation and housing.

The proposal by the numbers:

• $621 billion to repair roads and bridges, modernize public transit, invest in passenger and freight rail service, create jobs in the electric vehicle market, and improve ports, waterways, and airports;
• $50 billion to safeguard critical infrastructure in vulnerable communities that are susceptible to or have been impacted by natural disasters;
• $111 billion to replace lead pipes and to upgrade and modernize drinking water, wastewater, and stormwater systems while supporting water infrastructure in rural areas;
• $100 billion to build broadband infrastructure that reaches 100% coverage;
• $100 billion to upgrade and modernize the electric grid while creating jobs in the industry, plugging orphan oil and gas wells and create a 鈥淐ivilian Climate Corps鈥�;
• $213 billion for affordable housing;
• $137 billion to modernize public schools, invest in community colleges, and upgrade and build child care facilities in areas that need it most;
• $10 billion to upgrade VA hospitals and federal buildings;
• $400 billion to expand access to long-term home and community-based care services under Medicaid for the elderly and disabled, and increasing pay of in-home care workers;
• $180 billion to research and development in new technologies and climate science and to eliminate gender and racial inequities in STEM (science, technology, engineering, and math);
• $300 billion to strengthen manufacturing supply chains, protect Americans from future pandemics, build regional innovation hubs, increase access to capital for domestic manufacturers, and partner with rural and tribal communities on economic development initiatives;
• $100 billion to invest in workforce development, including job training, apprenticeships, and career services;
• $10 billion to create union jobs and beef up labor union efforts to protect workers; and
• Ten-year extension/phase down of tax credits for solar development.

The Administration wants to raise $2 trillion to pay for this plan, largely via changes to the corporate tax code. Their plan would increase the corporate tax rate from 21% to 28%, crack down on corporate inversions to tax havens, end tax breaks for the fossil fuel industry, and increase IRS enforcement of corporations.

Shortly after the plan was released, Speaker Pelosi told her caucus that her goal is to get an infrastructure bill through the House by July 4. House Republicans have already been messaging their opposition to the plan, and in some cases, tying it to the Green New Deal. Some House Democrats hope to make some changes in the committee process and have talked about addressing the $10,000 taxpayer limit on state and local taxes (SALT) that the Trump Administration implemented in its 2017 tax bill.

There is some hope that Republicans and Democrats could find a bipartisan way to pass portions of the bill on which they can agree. However, the more likely outcome is that Senate Majority Leader Chuck Schumer will use reconciliation again to avoid the filibuster. President Biden鈥檚 approval rating is at 52%, so he is probably going to forgo passing on compromising with Republicans and instead continue to focus on pleasing Democrat, Independent, and maybe even a few Republican voters.

Responsibly Fund Arizona State and Local Transportation

Guest column by , Executive Director of the Arizona Rock Products Association

As the state of Arizona makes big decisions regarding transportation, planners, decision makers, and leaders look toward the rapidly growing population and private sector investments to make appropriate adjustments.  Currently, the state population is over 7.5 million people and climbing daily with an influx of people from the west coast coming to Arizona, not to mention the high-tech industry that is expanding its footprint here.  The recent announcements of a Taiwanese microchip processing company selecting a prime location with room for expansion in the West Valley and the $20 billion dollar expansion of Intel鈥檚 Chandler facility have us expecting impacts to our supply chains, logistics, and freight.  All these critical components are of paramount importance to the state鈥檚 economy.  A tremendous amount of planning and foresight has contributed to getting us to this point in Arizona鈥檚 story, but leave us all questioning where we go from here.

Arizona must continue to rev its economic engines, and the speed of our state鈥檚 success is predicated on our functional multi-modal transportation system, continued planning, and adoption of technologies that will allow us to move people and goods in an efficient and cost-effective way.  We must acknowledge that, at a statewide level, the system is inadequately funded with only the minimum needed for operations and maintenance.  We must be honest with ourselves about how long this minimal contribution can sustain our growing state. 

There is no debate, and we all agree we must maintain what we have.  The gas tax 鈥� the sole purpose of which is to maintain roadways 鈥� is considered a user fee that has not been raised or adjusted in more than 30 years.  As technologies have changed, including the efficiency of the traditional automobile, you and I are contributing even less to the state鈥檚 transportation funds than in years past.  Couple this challenge with alternative fuel vehicles that contribute nothing into the system and yet continue to use the road and we have a challenge that must be addressed.  Would you be able to live on your same salary from 30 years ago?  Neither can our transportation system. 

The argument could be made that federal relief packages will provide the state with an influx of cash.  While valuable to build new roads and bridges, it鈥檚 important to remember that federal money is one-time money and has the potential to add to our funding challenges as those new roads and bridges will need to be included in the operations and maintenance funding on an annual basis.  The source of those O&M dollars is still largely made up of the antiquated and perpetually scarce gas tax. 

Key commerce corridors are critical and in desperate need of development and upgrades including the incorporation of new technologies such as broadband and other infrastructure for our rural communities. The success of rural Arizona will have a major impact on the more urban Maricopa, Pinal, and Pima counties.

Our cities and counties play a critical role in infrastructure development and it is important to keep the decision making local regarding what projects and modalities are appropriate for specific regions.  Maricopa County has been the fastest growing county in the country for the last three years.  We cannot keep this pace without building new key commerce routes and upgrading existing ones.  Building the system is one thing; maintaining the system is a whole different commitment.  Decision makers in local communities working together know what is best for their region, but we cannot lose sight of the fact that those decisions impact the larger Arizona economy.  We can鈥檛 afford to get it wrong.

Our economic growth and development will depend on proper future planning and funding.  Maricopa County Proposition 400, the sales tax levy approved by the voters for transportation, will expire in 2025. Maricopa County is not unique.  Other counties and even cities will have to make important decisions on how to address funding for their municipality, county, or region.  Over the next two to four years, citizens will be asked through the ballot box if they want to increase capacity, maintain status quo, or ignore future needs. 

It is foresight that got us to this point, and we must continue to look ahead.听 Without future planning we will suffer at every level 鈥� state, county and local.听 Our growing population, our businesses and our industry can鈥檛 afford that 鈥� and neither can our citizens.听 Pay now through a responsible tax and a measured approach or pay later with inordinate costs, lack of opportunity, and a state in decline.听 Our goal is to maintain and continue to improve our state鈥檚 business and family-friendly environment.听 Arizona needs and deserves a long-term sustainable funding source that will meet the needs now and into the future.

Steve Trussell is the Executive Director of the , the oldest mining related trade organization in Arizona. For over 63 years, ARPA has been providing representation for 50 member companies involved with the production of construction aggregates, asphaltic concrete, ready mix concrete, asphalt, lime products, and portland cement used in nearly every private and public construction project in Arizona.听 Arizona鈥檚 aggregate mining industry employs approximately 7,745 people directly and 17,929 indirectly for a total of 25,674 jobs and has an estimated direct and indirect impact on the Arizona economy of $4.9 billion.听 Our producer members, combined with more than 61 associate members, provide related transportation, contracting, mining supplies and consulting services.

Vaccine tracker: 32.6 percent of the U.S. has received first dose

Breaking down Biden鈥檚 $2.3 trillion infrastructure plan

March unemployment falls, still above prepandemic levels

What you need to know about Consolidation in the Beef Industry

This e-newsletter is produced by Total Spectrum/Steve Gordon and Associates and the Arizona Chamber of Commerce and Industry. The views expressed herein may include subjective commentary and analysis that are the views of the editors and authors alone. Information in this e-newsletter is obtained from sources believed to be reliable, but that cannot be guaranteed as independently investigated or verified. Information in this e-newsletter is not an endorsement, advertisement, recommendation, or any type of advice; political, legal, financial or otherwise. For questions about the content of this e-newsletter, please contact the Arizona Chamber of Commerce and Industry.

The post This Week in Washington appeared first on 探花精选.

More Info: Michael DiMaria | Partner and SW Regional Director | 602-717-3891 | mdimaria@totalspectrumsga.com

Thanks for your interest in Washington, D.C., and thanks for reading This Week in Washington.

talks about the next items on the Senate鈥檚 legislative agenda and the future of the filibuster in 鈥淲ashington Whispers.鈥� Congressman writes about the new challenges being confronted by America鈥檚 small businesses. provides a defense update, and shares details from a March 17^th hearing of the Senate Finance Committee entitled, 鈥淐ovid-19 in the Nation鈥檚 Nursing Homes 鈥� a National Tragedy.鈥�

罢辞诲补测鈥檚 features an interview with Senator Roy Blunt (R-MO), who has served as a key member of both House and Senate Republican Leadership. He sits on three key committees and is the former chairman of the Senate Appropriations Subcommittee on Labor, Health, Human Services, and Education.

Senator Blunt announced that he will not seek reelection to the Senate in 2022, so we asked him to share some of his reflections, views on current issues, and his vision going forward. In this discussion with and , you will see why Senator Blunt is getting the recognition and praise he richly deserves as a 鈥渓egislator鈥檚 legislator.鈥�

We will be back in two weeks for the next issue of This Week.

Stay well.

, Managing Partner

Washington Whispers

By Patrick Robertson, Total Spectrum Strategic Consultant

Congress asks, 鈥淲hat鈥檚 next?鈥�

Democrats worked at a breakneck, partisan pace to enact the $1.9 trillion American Rescue Plan and confirm President Biden鈥檚 cabinet. Now they face an uncertain legislative landscape for the balance of the 117^th Congress.

The White House has already begun its pivot to the Build Back Better plan that will cover traditional infrastructure, green energy transitions, tax policy, and other priorities. President Biden, while still working overtime to sell his American Rescue Plan, is looking to cement his first term as the largest federal intervention in his lifetime.

It is important to insert one very pleasing and optimistic note.  The United States since our last This Week in Washington has vaccinated more than 100 million people and we are steaming toward 200 million. There is hope everywhere that we are turning the corner on this pandemic, but many questions abound on school re-openings, travel, large gatherings, and so many other aspects of normal life.  Congress appears to be setting many of these issues aside, allowing the provisions of the American Rescue Plan to take effect and leaving its implementation to the Biden Administration.

Meanwhile, the Biden team has begun its push for $3 trillion in new infrastructure spending. Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell remain steadfast in their support of not only the American Rescue Plan but also further infrastructure spending. But some people on Capitol Hill 鈥� on both sides of the aisle 鈥� are wondering aloud how much is too much to borrow and whether too much federal money in the system will overheat the economy.

Debate on this and other issues continues as the legislative landscape for this Congress starts to take shape. The House of Representatives left Washington at the end of last week for an extended district and committee work period. Before they left town, the House Democratic Majority passed many of its priorities, including gun measures, a voting rights bill, immigration reform, and a reauthorization of the Violence Against Women Act.

None of these measures, as written, can pass the Senate with 60 votes.

Senate Democrats are now at a crossroads. The left wing of the Democratic party is upset that the Democratic-controlled Congress did not figure out a way to include a $15 per hour minimum wage in the American Rescue Plan, which passed the Senate with just 50 votes. These liberal Democrats are agitating to get rid of the filibuster so that they can pass future legislation 鈥� for example, the voting rights bill – with a simple majority.

Senate Republican Leader Mitch McConnell has spent the last few days delivering some very public dire warnings to Democrats about how the Republican caucus will bring the Senate to a screeching halt if the filibuster is busted.  Moderate Democrats like Senator Kyrsten Sinema (D-AZ) and Senator Joe Manchin (D-WV) have said they do not support filibuster elimination. The left wing of the Democratic party has countered by calling the filibuster a relic of the Jim Crow south, a significantly ratcheted-up description of this Senate tradition.

The result of this debate is far from determined. The Democratic left is pushing hard and wants to start with voting rights legislation to test the waters while the center is holding. Both sides face difficult tactical decisions about how much to obstruct and how hard to push. The outcome of this debate will have tsunami-like effects on the rest of this Congress and for many years to come.

There are a number of questions about the filibuster that have to be answered. Just a few of the many:

• If the filibuster remains intact, will the Senate minority in this Congress and in the future have an incentive to work closer with the majority?
• If the filibuster is eliminated, will other minority rights be eroded in the Senate?
• Will the Senate eliminate the filibuster or just reform it?
• Would eliminating the filibuster really turn the Senate into the hyper-partisan, majority-rules House or do six-year Senate terms have a moderating effect?

One hundred duly elected Senators need to answer these and so many more questions as they navigate what we all hope is the end of the pandemic and an uncertain future with a deeply divided electorate.

Spotlight: Interview with Senator Roy Blunt

Please enjoy this special edition of Spotlight featuring an in-depth conversation with United States Senator Roy Blunt of Missouri. We explore the Senator鈥檚 career accomplishments, COVID relief legislation, and broadband deployment.

Small Business Facing New Challenges

By Congressman Erik Paulsen, Total Spectrum Strategic Consultant

There are more than 30 million small businesses in the United States, accounting for over 60 percent of the net new jobs in the country. But nearly 164,000 small businesses have closed since the beginning of the pandemic, and about 98,000 of these say they have shut their doors for good. 

Thankfully, many small businesses have shown amazing resilience. They weathered the pandemic because of skill, ingenuity, and help from Congressional legislation that was targeted at keeping small businesses operating.

The Paycheck Protection Program provides loans to small businesses so that they can keep their employees on the payroll and hire additional people. These loans can be forgiven if 60 percent of the loan is attributable to payroll costs.  In addition, the Employee Retention Tax Credit can be used by borrowers who use the Paycheck Protection Program.  Together, these programs have provided a significant source of financial relief for many small businesses coping with the financial impact of the pandemic. 

The legislation that created and then expanded both programs passed overwhelmingly in 2020 with bipartisan support. President Biden recently unveiled a new set of initiatives aimed at enhancing the Paycheck Protection Program, such as a two-week period where only small businesses with fewer than 20 employees can apply and modified rules for sole proprietors, independent contractors, and self-employed individuals.  These steps were also widely applauded.

America鈥檚 small business community certainly has suffered over the past year, but optimism is starting to return. The National Federation of Independent Business鈥檚 (NFIB) rose to 95.8 in February, a slight rise from January but still below the 47-year average of 98. The NFIB鈥檚 recent monthly showed that there is a slight increase in those small business owners who expect to hire more employees over the next three months.

There is little question that talk about a minimum wage boost to $15 per hour dampened the optimism of many small business owners.  The recent $1.9 trillion American Rescue Plan did not include a minimum wage increase, but Congress indirectly saddled many businesses with a new challenge when it increased unemployment benefits.

Employers who want to hire more people at a starting rate are often competing with the combination of state and federal unemployment benefits. Some small businesses simply will not be able to hire employees at that level even if they need more employees to meet growing demand. As a result, it will likely take longer than usual for the unemployment rate across the nation to drop.

Another factor weighing against increased optimism among small business owners is the talk in Washington, D.C. about tax increases. The centerpiece of the pro-small business tax changes in the 2017 Tax Cuts and Jobs Act is the Small Business Deduction. It was designed to reduce the difference between the top corporate tax rate of 21 percent and the top individual tax rate of 37 percent, at which small businesses otherwise would be taxed. This is important because more than 90 percent of small businesses are organized as pass-throughs. Qualifying pass-through businesses can claim up to a 20 percent tax deduction on their share of the business鈥檚 income up to $164,900 in tax year 2021, or $329,800 for those filing jointly. That provision reduces the tax rate for a small business owner or partner from 37 percent to around 29.6 percent. According to the , 81 percent of business owners believe the Small Business Deduction is important to the health of their businesses.

President Biden and some in Congress want to repeal the Tax Cuts and Jobs Act, including the 20 percent small tax deduction, while increasing taxes on higher income individuals 鈥� many of the owners of small businesses 鈥� to just below 40 percent. This would drive up taxes on small businesses and would strongly discourage companies from organizing as a pass-through entity. 

President Biden recently said that 鈥淸s]mall businesses are the engines of our economic progress. They are the glue and the heart and soul of our communities, but they are getting crushed.鈥�  He is correct 鈥� but getting rid of the small business tax deduction and adding new tax burdens will not create more optimism among many small business owners, which may slow down the hiring of new employees and discourage other investments in their companies.

Defense Update

By Al Jackson, Total Spectrum Strategic Consultant

The Biden administration is expected to release its Fiscal Year 2022 defense budget to the public in May.  Many defense spending experts are suggesting procurement and research spending could be reduced, as the Fiscal Year 2022 defense budget is expected not to increase over Fiscal Year 2021.  It鈥檚 expected the overall defense budget to fall to within $704-$708 billion, which is in line with the $705 billion received by the department last year.  Because of inflation, this projected budget will be considered a spending reduction. 

Republicans on Capitol Hill are advocating a 3-5% growth in the defense budget.  The liberal progressive wing of the Democrat party is calling for cuts in the range of at least 10% in favor of more COVID-19 relief and increased funding for domestic programs.  It鈥檚 estimated only $227 billion will be allocated for procurement and research, development, testing and evaluation (RDT&E) funds.  This is a significant cut from Fiscal Year 2021, as the National Defense Authorization Act authorized $247 billion, and the appropriators funded procurement and RDT&E to the tune of $243 billion.  As a result of procurement programs growing in size, RDT&E funds may end up even lower.  It鈥檚 expected Department of Defense plans growth in major weapons systems such as Columbia-class submarines, B-21 Bombers, the Ground-Based Strategic Deterrent, Army modernization programs, and increases in F-35 buys. 

It is traditional for a new administration to delay the release of its budget by several months while it reviews the spending priorities of the previous administration.  Deputy Secretary of Defense Kathleen Hicks, in a recently 鈥渓eaked鈥� memo, outlined areas of increased focus, specifically on shipbuilding, nuclear modernization Central Command funding, force posture and building capacity in the Pacific due to escalating tension with China.  Expect a shift from the ground wars in the Middle East to China and Russia. 

Her document lays out 鈥渃lear priorities鈥� within the defense budget, stating that they 鈥渨ill assess the appropriate structure, capabilities, and sizing of the force, and, working with the Congress, shift our emphasis from unneeded legacy platforms and weapons systems to free up resources for investments in the cutting-edge technologies and capabilities that will determine our military and national security advantage in the future.  We will streamline the processes for developing, testing, acquiring, deploying, and securing these technologies.鈥�

Hicks writes further in the memo that 鈥渄ue to the limited amount of time available before the Department must submit its Fiscal Year 22 President鈥檚 Budget request, the process to re-evaluate existing decisions will focus on a very small number of issues with direct impact on Fiscal Year 2022 and of critical importance to the President and the Secretary.鈥�

The Office of the Director of Cost Assessment and Program Evaluation (CAPE) was directed to review a handful of critical acquisition efforts:

• Shipbuilding: current Fiscal Year 2022 shipbuilding additions 
• Nuclear Enterprise/Nuclear Command, Control, and Communications (NC3): lower-yield weapons and select NC3 topics 
• Long Range Fires: current Fiscal Year 2022 long range fires additions
• Aircraft: F-35, Air Force tanker aircraft, and MQ-9 
• Climate: initial options for investment and set groundwork for additional investments during the Fiscal Year 2023 to Fiscal Year 2027 review cycle 
• Build Back Better: extant Fiscal Year 2022 investments and Fiscal Year 2023 opportunities 

The Trump Administration regularly removed any mention of climate change from government documents. The inclusion of a renewed effort to plan for global warming is unique to the Biden administration.

Both Defense Secretary Lloyd Austin and Deputy Secretary of Defense Hicks pledged during their confirmation hearings to reassess former Defense Secretary Mark Esper鈥檚 shipbuilding plans.  Those plans called for a $27 billion shipbuilding budget in Fiscal Year 2022, a significant increase from the $19 billion requested in Fiscal Year 2021, and to build 82 new ships by 2026, a significant increase from the Navy鈥檚 plan to build 44 new ships during that time.

Likewise, both officials signaled support for nuclear modernization, but stopped short of pledging to uphold all aspects of the current program.  Kathleen Hicks will likely run the process on most nuclear and missile defense programs, given that Lloyd Austin has recused himself from taking part in any decisions involving Raytheon, a company whose board he served on.

This will give Ms. Hicks the responsibility of deciding on the replacement program for the aging stock of intercontinental ballistic missiles known as the Ground Based Strategic Deterrent and the Long-Range Standoff Weapon, a nuclear cruise missile.

The priority given to long-range fires reflects growing concern over China鈥檚 long-range precision weapons programs, which give Beijing the ability to threaten the presence of both U.S. and allied forces in the Pacific.  The Pentagon has dedicated the past several years to a number of longer-range weapons that can be launched from significant stand-off distances, work that the memo suggests could accelerate. 

Early in April, the Army will host a live-fire experiment using artificial intelligence to share data between Marine F-35s, Air Force A-10s, HIMARS rocket launchers, and commercial satellites.

Vaccine tracker:听 25.3 percent of the U.S. has received first dose

What you need to know about K-12 School Reopenings

What you need to know about Covid-19 and Air Travel Restrictions

What you need to know about Tech Antitrust Suits

2021 tax filing season extended during the Covid-19 pandemic

U.S. solar regains momentum

Hearing Report

By Ramona Lessen, Executive Director, Total Spectrum

Senate Finance Committee virtual hearing on COVID-19 in the Nation鈥檚 Nursing Homes 鈥� A National Tragedy

Wednesday, March 17, 2021; 10:00 a.m.

To view a livestream of the hearing please .

Senator Ron Wyden (D-OR), Chairman

Senator Mike Crapo (R-ID), Ranking Member

Witnesses:

Adelina Ramos

Certified Nursing Assistant

SEIU District 1199 New England

Greenville, RI

Denise Bottcher

State Director

AARP Louisiana

Baton Rouge, LA

Quiteka Moten, MPH, CDP

State Long-Term Care Ombudsman

State of Tennessee

Nashville, TN

R. Tamara Konetzka, Ph.D.

Louis Block Professor Of Public Health Sciences, Department Of Public Health Sciences

The University of Chicago

Chicago, IL

John Dicken

Director, Health Care

United States Government Accountability Office

Washington, DC

David Gifford, MD, MPH

Chief Medical Officer

American Health Care Association

Washington, DC

Congressional Calendar

All times EDT

Monday, March 22

• 11 a.m. House Energy and Commerce Committee virtual on H.R. 1848, the Leading Infrastructure for Tomorrow’s America Act.
• 11 a.m. House Oversight Committee hybrid on H.R. 51, the Washington D.C. Admission Act, which would make D.C. a state.
• Noon. House Education and Labor Civil Rights and Human Services Subcommittee virtual on preventing domestic violence and promoting healthy communities.
• 6 p.m.  Senate Foreign Relations Committee Closed :  Understanding the Policy and legal Rationale of US Airstrikes in Syria.

Tuesday, March 23

• 9:30 a.m. Senate Armed Services Committee on the nomination of Admiral John C. Aquilino for commander of the U.S. Indo-Pacific Command.
• 10 a.m. Senate Foreign Relations Committee hybrid on the nomination of Samantha Power to be administrator of the U.S. Agency for International Development.
• 10 a.m. Senate Judiciary Committee to examine steps to reduce gun violence.
• 10 a.m.  House Foreign Affairs Subcommittee on International Development, International Organizations and Global Corporate Social Impact on the US Standing in international organizations.
• 10:30 a.m. House Budget Committee virtual members鈥� day on the fiscal 2022 budget.
• 11 a.m. House Rules Committee virtual on reforming the war powers resolution.
• Noon. House Financial Services Committee virtual on the Treasury Department and Federal Reserve鈥檚 pandemic response. Treasury Secretary Janet Yellen and Federal Reserve chair Jerome Powell testify.
• 1 p.m. House Foreign Affairs Committee virtual on reclaiming congressional war powers.
• 2:30 p.m. Senate Homeland Security and Governmental Affairs Committee hybrid on the 2020 census and the current activities of the Census Bureau.
• 2:30 p.m.  Senate Foreign Relations Subcommittee on Europe and Regional Security Cooperation :  Bolstering Democracy in Georgia.

Wednesday, March 24

• 9:30 a.m. Senate Foreign Relations Committee of 17 measures, including S. 413, a bill that would establish a group to 鈥渕aintain a public database of instances of China’s government punishing a U.S. company for the company’s exercise of free speech.鈥�
• 9:30 a.m. Senate Environment and Public Works Committee of pending legislation and nominations.
• 10 a.m. Senate Commerce Committee on the nomination of Polly Trottenberg to be deputy secretary of Transportation and on rebuilding America鈥檚 transportation infrastructure.
• 10 a.m. House Veterans Affairs Subcommittee on Disability Assistance and Memorial Affairs on VA Compensation and Pension Exams during COVID-19 Pandemic:  A Path Forward.
• 10 a.m. Senate HELP Committee on the nomination of Cynthia Marten for deputy secretary of Education.
• 10 a.m. Senate Rules Committee on S. 1, the For the People Act.
• 10 a.m. Senate Banking Committee virtual on the quarterly CARES Act report to Congress.
• 10 a.m. House Natural Resources Subcommittee on Water and Power virtual on Western Water Management and Policy.
• 10 a.m. House Oversight Committee hybrid on the long-term economic impacts of gender inequality.
• Noon. House Armed Services Committee hybrid on extremism in the armed forces.
• 2 p.m. House Veterans Affairs Oversight Committee virtual on the VA鈥檚 medical supply chain during the pandemic.
• 2:30 p.m. Senate Small Business Committee on oversight of the Small Business Administration’s Covid-19 relief programs.
• 2:30 p.m. Senate Indian Affairs Committee on water infrastructure needs in Native American communities.
• 2:30 p.m. Senate Armed Services Subcommittee on Personnel 鈥� Sexual Assault in the Military.
• 3 p.m. Senate Veterans Affairs Committee to examine veterans鈥� mental health during the pandemic.

Thursday, March 25

• 9:30 a.m. Senate Finance Committee virtual to examine how U.S. international tax policy impacts U.S. workers, jobs and investment.
• 9:30 a.m. Senate Armed Services Committee to examine U.S. Special Operations Command and Cyber Command in review of the defense authorization request for fiscal year 2022.
• 10 a.m. Senate Judiciary Committee to consider Monaco and Gupta鈥檚 nominations and mark up two bills 鈥� S. 632 and S. 169.
• 10 a.m. Senate Energy and Natural Resources Committee on developments in the nuclear energy sector.
• 10 a.m. Senate HELP Committee on the U.S.鈥� Covid-19 response and improving health equity.
• 10 a.m. Senate Banking Committee virtual to examine the American Rescue Plan.
• 10:15 a.m. Senate Homeland Security Committee hybrid on the nomination of Deanne Criswell to be Federal Emergency Management Agency administrator.
• 11 a.m. Senate Budget Committee to examine the tax code, focusing on how much wealthiest individuals and largest corporations pay in taxes.
• 11 a.m. House Transportation and Infrastructure Committee hybrid on the Biden administration鈥檚 transportation infrastructure priorities. Transportation Secretary Pete Buttigieg testifies.
• Noon. House Agriculture Committee virtual on the state of Black farmers in the U.S.
• Noon.  Senate Armed Services Committee , US Special Operations Command and US Cyber Command 鈥� review of the Defense Authorization Request for VY 2022 and the Future Years Defense Program.
• 1 p.m. House Foreign Affairs Committee virtual of nine bills, including H.R. 256, a bill that would repeal the authorization for use of military force against Iraq.
• 2 p.m. House Veterans鈥� Affairs Committee virtual on the VA鈥檚 first 100 days under Biden. Veterans Affairs Secretary Denis McDonough testifies.

Friday, March 26

• 3 p.m. House Foreign Affairs Committee virtual member day

This e-newsletter is produced by Total Spectrum/Steve Gordon and Associates and the Arizona Chamber of Commerce and Industry. The views expressed herein may include subjective commentary and analysis that are the views of the editors and authors alone. Information in this e-newsletter is obtained from sources believed to be reliable, but that cannot be guaranteed as independently investigated or verified. Information in this e-newsletter is not an endorsement, advertisement, recommendation, or any type of advice; political, legal, financial or otherwise. For questions about the content of this e-newsletter, please contact the Arizona Chamber of Commerce and Industry.

The post This Week In Washington appeared first on 探花精选.

More Info: Michael DiMaria | Partner and SW Regional Director | 602-717-3891 | mdimaria@totalspectrumsga.com

Thanks for your interest in Washington, and thanks for reading This Week in Washington.

This is the fourth anniversary of This Week, so 鈥淗eard on The Hill鈥� is devoted to some of the new features you will see this year and thanking all those who have made this milestone possible.  covers early action in the Senate in 鈥淲ashington Whispers,鈥漚nd provides an update on defense.

Be sure to watch for a discussion on rural broadband opportunities with resident telecom experts and .

We will be back in two weeks for another issue of This Week. Stay well.

, Managing Partner

Total Spectrum Spotlight

Episode 5 – Rural Broadband

In this episode Total Spectrum Partners and discuss rural broadband opportunities.

Heard on the Hill

By Steve Gordon, Total Spectrum Managing Partner

A milestone 鈥� and a big thank you.

We started This Week in Washington exactly four years ago with the goal of providing accurate and insightful coverage of the policies and the politics of Washington, D.C. tailored to the wants and needs of Arizona.   Our goal after four years remains the same, but I know we always need to adapt and grow.

This Week started adapting last year. Our most important structural change was creating Total Spectrum Spotlight, in which we highlight newsmakers and news shapers and discuss important topics in short but meaningful interviews.  We also expanded our team with Congressman , a former member of the House Ways and Means Committee and a former Chairman of the Joint Economic Committee; and , who was the Assistant Chief of Staff to former Senator Jay Rockefeller and has outstanding relationships with Senate and House Democrats.

Erik co-wrote 鈥淗eard on the Hill鈥� with me last year. He will continue contributing to my column, and he will also debut his own column next month. Patrick started writing 鈥淲ashington Whispers鈥� last year, and the response was outstanding.  Watch for much more from Patrick in 2021.

We have a great team of experts who focus on specific legislative areas. is a wealth of experience in the banking-financial services sector. , a former Chief of Staff to Reps. Rick Lazio and Randy Tate, brings his expertise in telecommunications, energy/environment, and agriculture. is our appropriations expert, having served as Deputy Assistant for Legislative Affairs for Vice President Cheney; and as Chief of Staff to both Congresswoman Kay Granger, then ranking member of the Appropriations Committee, and to former Congressman Henry Bonilla, then a member of the House Appropriations Committee and a subcommittee chairman. was Chief of Staff for Congressman and later Governor Nathan Deal, and has vast experience in healthcare, food and drug safety, and environmental policy. , our Southwest Regional Director and , our Colorado Director, have been working in telecommunications and internet issues for years at the state and federal levels. specializes in national security, foreign affairs, homeland security, and aviation.

will continue writing 鈥淗eard on the Hill鈥� while also developing several concepts that will expand our coverage. will continue to serve as the editor of This Week, and provides content while also reading and proofing every word we publish. 

Thanks to our great partners at the Arizona Chamber, particularly Glenn Hamer and Erica Wrublik. Most importantly, thanks to you for your interest in Washington and for reading This Week in Washington.

Washington Whispers

By Patrick Robertson, Total Spectrum Strategic Consultant

The last few weeks in Washington have seen insurrection, special elections, an inauguration, a power sharing agreement, and an impeachment. And now both political parties need to decide how to move forward and get back to governing.

This week Senate Republican Leader Mitch McConnell and Senate Democratic Leader Chuck Schumer hammered out a power-sharing agreement paving the way for Senator Schumer鈥檚 ascension to the job of Majority Leader, setting the agenda in the Senate. Leader Schumer鈥檚 first orders of business are (1) confirming President Biden鈥檚 nominees, (2) managing the impeachment trial of former President Trump, (3) passing some form of COVID relief, and then (4) moving on to a Democratic growth agenda.

The nominee confirmations have begun moving and should continue, although there will almost certainly be one or two who get hung up in a partisan battle 鈥� likely either California Attorney General Xavier Becerra, nominated to be Secretary of Health and Human Services, or Office of Management and Budget nominee Neera Tanden. Since a number of cabinet nominees have been confirmed, attention will soon turn to impeachment, but first let鈥檚 examine the Senate makeup.

After Democrats swept the two special elections in Georgia earlier this month, the Senate is split evenly with 50 Republicans and 50 Democrats, two of whom identify as independents who caucus and most often vote with Democrats. The Vice President, in this case Democrat Kamala Harris, breaks ties in the Senate, giving Democrats the tiebreaking vote.  Senators McConnell and Schumer have looked to the 2001 precedent in organizing the Senate. Under the power-sharing agreement, committees had equal number of members, although the Democrats will chair and set the agenda. Nominees and legislation will be able to be reported out of the committees on a tie vote as well, a rule that is not usually in force.

This power-sharing agreement, while giving Democrats control, does not guarantee that Democratic priorities will pass. While they have the narrowest of majorities, the Democratic Caucus has a wide range of political views from Senators Bernie Sanders and Elizabeth Warren to Senators Joe Manchin and Kyrsten Sinema. With the Senate filibuster rules still intact, at least for now, Democrats may try to use an arcane procedure called budget reconciliation, requiring only 50 votes in the Senate, to try and pass some of their priorities, although there are significant limitations to that procedure.

Budget reconciliation is a complex process that allows the Senate to bypass the 60-vote threshold of the filibuster to pass legislation that has a direct impact on federal spending. It has traditionally been used once per fiscal year and has significant limitations based on the rules mandating that policies spend or save money. It has only been used when a party has narrow control of the Senate, control of the House, and control of the White House.

In short, grand partisan policies could very well give way to big, bipartisan bills, but Democrats will likely try to move some priorities on a partisan basis. Budget reconciliation has been used in recent years to pass the Affordable Care Act, to attempt to repeal it, and to pass the Tax Cuts and Jobs Act, which officially lost its title to something called The Byrd Rule.  We will cover the process in more depth in a future installment, but Democrats could introduce their budget to set up this process in the next few days.

Before the Senate begins legislating it has two weeks to organize and work on nominations before the impeachment trial begins. Senator Rand Paul (R-KY) forced a vote on the constitutionality of impeaching a former president and the Senate agreed to move forward with five Republicans joining the 50 Democrats. After some legal briefs, the impeachment trial will begin in two weeks with most observers concluding that the Senate does not have anywhere near the 67 votes needed to convict former President Trump.

Once that is resolved the Senate will turn back to legislating with President Biden having already sent a $1.9 trillion coronavirus relief plan to Congress. Conventional wisdom is that there can be a smaller bipartisan compromise bill that will get 60 votes or Democrats can use budget reconciliation to get the whole thing through, burning one of their limited opportunities to use that special process. President Biden鈥檚 unity message may soon run into political reality when he must decide which path to take.

Once the new Congress and Administration navigate these very rocky shoals, they will be facing many even more complicated questions. They will have to decide how to pass the bipartisan priority of infrastructure spending, close out the pandemic, fund the government, deal with the debt limit expiration on July 31, reform the immigration system, work on health care, and many more issues.

The work of these first few weeks will bleed into the first 100 days and before we know it, we will be staring at the midterm elections in 2022鈥� after another round of Congressional redistricting. We will be here all the way through 鈥� watching, reporting, and interpreting.

Defense Update

By Al Jackson, Strategic Consultant to Total Spectrum

By a vote of 93-2, former U.S. Central Command leader Lloyd Austin was confirmed Friday as the next head of the Department of Defense, an historic vote that makes him the nation鈥檚 first Black person to hold that post.  Lloyd Austin, a four-star Army general, served more than 40 years.  Before the vote, both the House and Senate approved waiver language allowing Austin, who retired in 2016, to serve in the post despite a law mandating a seven-year gap between military service and the top civilian post at the Pentagon.  Similar accommodations were also made for former Marine Corps General James Mattis in the Trump administration.  After leaving the Army, General Austin served on the Board of Directors for Raytheon Technologies.  Austin confirmed during his confirmation hearing that he would recuse himself from decisions involving Raytheon for at least four years.  

Two issues high on the agenda of General Austin include the military鈥檚 continued problem with sexual misconduct and the perception that the armed services need to be continually mindful of diversity.  General Austin indicated during his confirmation hearing, 鈥溾�he military cannot accomplish its missions if we also have to battle enemies within the ranks.鈥�  Austin issued a memorandum directing Pentagon senior leaders, combatant commanders, and defense agency and DoD field activity directors to enhance efforts to deal with the issue of sexual misconduct. 

President Joe Biden has ordered a 90-day commission to 鈥減ursue solutions to sexual assault in the military.鈥�  Austin, in response to the introduction of the commission, said 鈥渢hat while the department will aggressively support that effort鈥� I do not want to wait 90 days to take action.鈥�  General Austin ordered senior leaders to report to him by Feb. 5, 2021 鈥渁 summary of the sexual assault harassment and accountability measures taken in the past year that show promise, as well as a frank, data-driven assessment of those which do not.鈥�  The Undersecretary of Defense for Personnel and Readiness will consolidate the findings and make the report to the Secretary of Defense.

Joe Biden, prior to being elected president, did not foresee major reductions in the U.S. defense budget as the military refocuses its attention to potential threats from world powers such as China and Russia.  The challenge of meeting this objective will come from the progressive wing of the Democratic Party, which is calling for drastic reductions in defense spending, thereby weakening the strides made by the previous administration to strengthen the military.  The progressive wing of the Democratic Party is focused primarily on combating climate change through the Green New Deal and more spending on domestic giveaway programs.  Combine this notion with pandemic-related economic pressures and it may ultimately add up to budget cuts at the Pentagon.

As highlighted in his confirmation hearing and among other Members of Congress, General Austin is not only seen as a capable leader but also an important advocate for diversity among the armed forces.  One issue of concern is the belief in the Biden administration that political extremists including white nationalists and supremacists exist within the military.  General Austin addressed this issue during his confirmation hearing.  During his hearing, twelve of the more than 25,000 National Guard troops stationed in Washington, D.C. for the inauguration were sent home because they were suspected of possible links to right-wing/pro-second amendment militias.

In his written remarks submitted as part of his nomination hearing, General Austin said, 鈥淲e also owe our people a working environment free of discrimination, hate and harassment.  If confirmed, I will fight hard to stamp out sexual assault, to rid our ranks of racists and extremists, and to create a climate where everyone fit and willing has the opportunity to serve this country with dignity.  The job of the Department of Defense is to keep America safe from our enemies. But we can鈥檛 do that if some of those enemies lie within our own ranks.鈥�

President Joe Biden issued an executive order reversing the policy of the Trump administration banning transgender individuals from joining the military.  General Austin, during his confirmation hearing, spoke in favor of reversing the policy as well.

President Biden also signed an executive order reversing President Trump鈥檚 order to restrict diversity training, formally known as 鈥渃ritical race theory,鈥� in the federal government.  The initial order from President Trump mandated that all federal agencies cease from conducting any training that included 鈥渄ivisive鈥� topics and submit all diversity training programs to the Office of Personnel Management for review and approval.  Federal contractors would also have been prohibited from using such training programs for their employees.  The training focuses on white privilege and race theory that has the potential of defining individuals based on their race as opposed to the content of their character.  It accepts the narrative that America is inherently racist, which continues to be a divisive topic. 

There remains more than 20,000 members of the National Guard in Washington, D.C. at the time of this report, but that number is expected to reduce to 5,000 troops, then likely remain steady through mid-March.  The Senate trial of the impeachment of President Trump, set to begin February 8, is the reason for the continued presence.  This will be the first impeachment trial of a former U.S. president.

Actions Biden took during his first day in office

Biden’s executive actions to tackle Covid-19

Marijuana developments during Trump’s presidency

Hearing Report

By Ramona Lessen, Executive Director, Total Spectrum

Senate Commerce, Science and Transportation Committee Hearing on the presidential nomination of Gina Raimondo to be Secretary of the Department of Commerce

Tuesday, January 26, 2021; 10:00 a.m.

To view a livestream of the hearing please .

Witness:

The Honorable Gina Raimondo

Governor of Rhode Island

Opening Statements

of opening remarks by Chairman Roger Wicker (R-MS) and Ranking Member Maria Cantwell (D-WA).

Congressional Calendar

Monday, January 25

• 6:00 p.m.  The Senate Foreign Relations Committee holds a on the nomination of Antony Blinken to be Secretary of State.

Tuesday, January 26

• 10 a.m. The Senate Foreign Relations Committee holds a of pending business.
• 10 a.m. The Senate Commerce, Science and Transportation Committee holds a on the nomination of Rhode Island Gov. Gina Raimondo to be Commerce Secretary.
• 11 a.m. The Senate Homeland Security and Governmental Affairs Committee holds a to vote on the nomination of Alejandro Mayorkas to be Homeland Security Secretary.

Wednesday, January 27

• 9:30 a.m. The Senate Energy and Natural Resources Committee holds a on the nomination of former Michigan Gov. Jennifer Granholm to be the Energy Secretary.
• 10 a.m. The Senate Commerce, Science, and Transportation Committee will hold an
• 10 a.m The Senate Foreign Relations Committee holds a on the nomination Linda Thomas-Greenfield to be the Representative to the United Nations.
• 3 p.m. The Senate Veterans’ Affairs Committee holds a on the nomination of Denis McDonough to be Veterans Affairs Secretary.
• 3 p.m.  The Senate Veterans鈥� Affairs Committee holds a re: Committee rules for the 117^th Congress and a resolution authorizing expenditures by the Committee for the 117^th Congress.

Thursday, January 28

• 10 a.m. The Senate Banking, Housing and Urban Affairs Committee holds a on the nominations of Rep. Marcia Fudge (D-Ohio) to be Housing and Urban Development Secretary and Cecilia Rouse to be Chair of the Council of Economic Advisers.

This e-newsletter is produced by Total Spectrum/Steve Gordon and Associates and the Arizona Chamber of Commerce and Industry. The views expressed herein may include subjective commentary and analysis that are the views of the editors and authors alone. Information in this e-newsletter is obtained from sources believed to be reliable, but that cannot be guaranteed as independently investigated or verified. Information in this e-newsletter is not an endorsement, advertisement, recommendation, or any type of advice; political, legal, financial or otherwise. For questions about the content of this e-newsletter, please contact the Arizona Chamber of Commerce and Industry.

The post This Week In Washington appeared first on 探花精选.

More Info: Michael DiMaria | Partner and SW Regional Director | 602-717-3891 | mdimaria@totalspectrumsga.com

Thanks for your interest in Washington, and welcome back to the special inauguration issue of This Week in Washington.

I attended my first inaugural in 1985 and subsequently in 1989, 2001, and 2005. Inaugurals are celebrations for the winners. But for all of us, inaugurals celebrate the continued victory of American democracy.

2020 was quite a year and the first 21 days of January have been more of the same, so this inaugural was different. Washington, D.C. 鈥� from the Capitol to the Lincoln Memorial 鈥� was the most secure place in America. The pandemic meant that everything had to be changed. The official swearing-in ceremony was not open to the public. The parade was virtual, and the galas were cancelled.

There were changes Wednesday in the Senate too. Late Wednesday afternoon, Jon Ossoff and Raphael Warnock were sworn in as Georgia鈥檚 new U.S. Senators, which created a 50-50 tie. Senator Chuck Schumer (D-NY) is now the Majority Leader because Vice President Harris, who serves as President of the Senate, can break a tie vote.  Senator Mitch McConnell is now the Minority Leader.

That is a great deal of change, and change changes everything. We will start looking at the Biden Administration鈥檚 legislative directions and new committee assignments in both the House and the Senate in upcoming editions of This Week.  罢辞诲补测鈥檚 covers Inaugural Week 2021鈥� the environment, the swearing in ceremony, and Day One of the Biden Administration.

Stay well.

, Managing Partner

Heard on the Hill

By Steve Gordon, Total Spectrum Managing Partner

Inaugural Week 2021 鈥� an Inaugural Like No Other. President Joe Biden was sworn in Wednesday as our 46^th 鈥� and oldest 鈥� President. Vice President Kamala Harris became the 49^th Vice President, the first female Vice President, the first Vice President of color, and the first Vice President of Indian descent. This was the 59^th inaugural ceremony. It was held during a pandemic that has killed more than 400,000 Americans and under the tightest security precautions in Washington since 9/11.

Monday, January 18

I first came to Washington, D.C. in August 1978 with then candidate 鈥� soon to be U.S. Senator 鈥� Rudy Boschwitz. My clearest recollection of that trip 41 years later was seeing the Capitol bathed in bright light. I remember thinking that if looking at the Capitol at night did not make your pulse race, your heart had stopped.

I have seen Washington, D.C. change from a sleepy southern town to a major and important city. I remember great moments of past inaugurals, and I also remember 9/11 and the anthrax scare. But nothing prepared me for what I saw when I drove to my office earlier this week.

Security for the inaugural was under the jurisdiction of the Department of Homeland Security and the Secret Service directed the effort.  Security was always going to be tight for the inaugural, but the insufficient preparation for the January 6th assault on the Capitol meant that nothing would be left to chance. Twenty-five thousand (yes, 25,000) National Guard troops (most holding rifles), D.C. metropolitan police and Capitol Hill police, and 3,000 active-duty military personnel came together in a joint effort to button down Washington, D.C. from Capitol Hill to the Lincoln Memorial and throughout most of downtown.

A series of enclosures were constructed with 9-foot fences topped with  razor wire. Streets were blocked with cement barricades, military equipment, and reservists who were armed. Checkpoints run by the Secret Service equipped with metal detectors were set up at key locations.

Vehicle traffic was down to a trickle. Pedestrians were few, and consisted mostly of press and a few individuals walking their dogs. Security 鈥� the military, D.C. and Capitol Hill police鈥� had secured the area and were taking no chances.

Someone called it East Berlin on the Potomac 鈥� a militarized city 鈥� and it is sad that so much security was necessary. But we are where we are, and it is what it is.

Tuesday, January 19

The bridges from Virginia and Maryland to Washington were closed today. The Senate announced that Jon Ossoff and Raphael Warnock would be sworn in as U.S. Senators on Wednesday afternoon by Vice President Harris.

Wednesday January 20

The Ceremony

Senator Roy Blunt (R-MO), Chairman of the Joint Congressional Committee on Inaugural Ceremonies, set the tone. He said the theme for this inaugural was 鈥渢o renew a commitment to our determined democracy forging a more perfect union.鈥� 听This is the 59^th inauguration, and Senator Blunt said it was both miraculous and common place that these events have happened every four years since 1789 鈥� even in times of war and depression 鈥� and now in a pandemic. Senator Blunt called government both fragile and resilient. 鈥淭his a moment of unification.听 Tomorrow we will continue our great national debate,鈥� Senator Blunt said.听

President Biden continued the theme of restoring unity in his inaugural address. 听He laid out the challenges he sees America facing, the continued, forecasting that 鈥渢o restore the soul and secure the future of America, we will need more than words. We will need unity.鈥� He spoke of wringing out some of the emotion and the rage in politics. 鈥淧olitics need not be a raging fire burning everything in its place. Every dispute does not have to cause total war.鈥� Then he said that he wanted to be the President of all Americans. 鈥淭o those of you who supported me, I am humbled. To those who did not support me, let me say this 鈥� hear me out as we move forward. Take a measure of me and my heart.鈥�

The Senate

Jon Ossoff and Raphael Warnock were sworn in as the newest U.S. Senators from Georgia, officially flipping the Senate and made Senator Chuck Schumer the new Majority Leader. Senator McConnell will continue as the Republican Leader.

Executive Orders and Early Legislation Agendas

Ron Klain, the President鈥檚 long-time colleague and now his chief of staff, outlined the Administration鈥檚 agenda for the first few days in a staff dated January 16^th.  As Mr. Klain promised, they hit the floor running on Day 1 rolling out a series of executive orders. The Biden Administration provided a on these executive orders grouped by the crisis or agenda.  One order that received significant attention cancelled the permit for the Keystone XL pipeline from Canada, which is of interest because the President鈥檚 first foreign call is slated for Friday with Canada鈥檚 Prime Minister Justin Trudeau.

The Administration wants 鈥� and needs 鈥� to get as many cabinet secretaries confirmed as soon as possible.  They will be sending Congress a $1.9 trillion COVID relief and the Speaker will soon send the Senate the Article of Impeachment of former President Trump.

Legislative Environment

President Biden campaigned on the theme of being a calm, steady, experienced, and determined leader who will do bold and big things. He has identified and laid out initial plans to address four crises 鈥� the pandemic, the economy, racial equality, and climate change.  Additionally, the President wants to make government work better and wants to unify the country.

Joe Biden spent 36 years in the Senate before becoming Vice President. He knows that handling COVID is job one, and that how he handles COVID will determine the success of other aspects of his legislative agenda.

Speaker Pelosi has a razor thin majority and a determined group of progressives. House Republicans will be waiting for 鈥� and working toward 鈥� an off-year victory in November 2022 that would make Kevin McCarthy the next Republican Speaker.

Majority Leader Schumer and Minority Leader McConnell are working on an agreement that would organize the 50-50 Senate. Senator McConnell proposed that the agreement include protections for the filibuster, but it is hard to see Senator Schumer and the Democratic caucus accepting those terms.

One thing is certain:听 there are a few moderates and a few very conservative members in Senator McConnell鈥檚 caucus, and there are a few conservatives and a few very progressive members in Senator Schumer鈥檚 caucus. 听A 50-50 Senate with factions in each caucus means that most legislation will move very slowly and that every man is a king, and every lady is a queen.

Biden Administration Priorities – An Off-the-Record Interview

By Congressman Erik Paulsen, Total Spectrum Strategic Consultant

I was on a call this past Tuesday with an individual who is now a senior staff member in the Biden White House. The call was to be off-the-record, so I took notes but cannot identify the senior staff member.

The top goal for the new Administration is to make sure America makes progress and represents the changing nature of our people. Another goal is to rebuild government and restore public service by recruiting high quality people.

Four Priorities:

• First: tackling COVID 鈥� getting it under control, combatting the virus and creating an aggressive plan for the distribution of the vaccines.  They will soon rollout proposals for safely reopening schools and childcare facilities.  There will be funding for states and localities that need to address how the vaccinations get into arms  while ensuring equality of opportunity.  There will be an emphasis on racial equity, and they will incorporate black churches and senior housing projects as sites for distribution.   
• Second:  an economic rescue package that will focus on direct aid to families and individuals. This package will include additional stimulus and infrastructure funding, with a focus on renewable energy and workforce issues.  They will roll these plans out in the next few weeks. 
• Third:  addressing racial inequity that has been highlighted by COVID.  The focus will be on health care, housing, employment – all longstanding issues, but brought to greater focus by the pandemic.
• Fourth:  the climate crisis and working toward environmental justice as part of a broader climate agenda. 

The Administration鈥檚 immediate focus will be to get key cabinet nominees confirmed as well as signing new executive orders. For example, there will be executive orders regarding the use of masks on federal property, getting the U.S. back in the World Health Organization, and reentering the Paris Climate Agreement.

The Administration will send to Congress on day one a new immigration bill which will include 鈥渟mart and effective鈥� border security and a pathway to citizenship over eight years.

The conversation returned to the need to get the vaccines out to all Americans who want them. They indicated that it has been hard to get information from the former Administration on vaccine distribution.  But once the new administration can 鈥渓ook under the hood,鈥� they will get to work on the vaccine supply.  They will continue to keep the 65 years or older guidelines for receiving the vaccine.  Vials usually have enough vaccine to get six injections, rather than the five assumed by the previous administration. Maximizing supply and using all the vaccine in a vial will be their goal. They will be working with the states to set up community vaccination clinics in partnership with the states, similar to a FEMA model, mobilizing and maximizing resources, and utilizing mobile units for rural areas.

On the issue of housing, they want to provide additional assistance to protect renters impacted by the pandemic.  The Biden Administration will look to the Department of Housing and Urban Development to provide more funding for housing for low- and moderate-income Americans.  They plan to also provide more financial support for first-time home buyers, especially those who have been impacted by what some refer to as redlining. In addition, they would like to use transportation dollars for a more holistic approach to housing by connecting transit to housing. 

What you need to know about Covid-19 Vaccine Distribution

What you need to know about The Jobless Benefits Cliff

What you need to know about The Next Steps on Tax Reform

2021 tax-filing season for taxpayers during the Covid-19 pandemic

Congressional Calendar

Tuesday, January 19

• 10:00 a.m.  Senate Homeland Security and Governmental Affairs Committee nomination 鈥� Hon. Alejandro Mayorkas to be Secretary of Homeland Security.
• 10:00 a.m.  Senate Finance Committee nomination 鈥� Hon. Janet Yellen to be Secretary of Treasury.
• 10:00 a.m. Senate Select Intelligence Committee nomination 鈥� Avril D. Haines to be Director of National Intelligence.
• 3:00 p.m. Senate Armed Services Committee nomination 鈥� Lloyd J. Austin, III to be Secretary of Defense.

Thursday, January 21

• 10:00 a.m.  Senate Commerce, Science and Transportation Committee nomination 鈥� Peter Buttigieg to be Secretary of Transportation.

This e-newsletter is produced by Total Spectrum/Steve Gordon and Associates and the Arizona Chamber of Commerce and Industry. The views expressed herein may include subjective commentary and analysis that are the views of the editors and authors alone. Information in this e-newsletter is obtained from sources believed to be reliable, but that cannot be guaranteed as independently investigated or verified. Information in this e-newsletter is not an endorsement, advertisement, recommendation, or any type of advice; political, legal, financial or otherwise. For questions about the content of this e-newsletter, please contact the Arizona Chamber of Commerce and Industry.

The post This Week In Washington appeared first on 探花精选.