BLURRED LINES: The Senate Health Committee led by Senator Lamar Alexander (R-TN) is pushing through with two bipartisan meetings for the week Congress returns. At the first they will hear testimony from state insurance commissioners and, at the second, from a group of both Republican and Democratic governors. Governors John Kasich (R-OH) and John Hickenlooper (D-CO) say their bipartisan proposal could be unveiled as early as next week, but this is the first real interest we’ve seen from Congress to reach across the aisle on health care. The hope is to stabilize insurance markets and mitigate the risk of Obamacare imploding – should the president pull federal payments – until a more permanent reform can be put in place.
READY FOR REAGAN: Newt Gingrich has been appearing in Congressional circles as he tries to influence leaders to focus on small business tax cuts. However, his emphasis on tax cuts instead of tax reform is getting in the way of House Ways and Means Chair Kevin Brady (R-TX). Starting with the highlight reel from last week’s tax talks with Brady at Reagan’s ranch, the Republicans have launched an advertising campaign to promote a tax overhaul. While accomplishing this in 2017 – especially with no signs of a FY18 budget – seems daunting, we may be underestimating how much Republicans want tax reform. Aside from the political motivation, this is one of their core principles and something most have been waiting to do since, well, Reagan.
DIALED IN ON DEBT: It wasn’t until right before recess that we saw the Administration, as well as Congressional Republican leaders, get on the same page about how to handle the debt ceiling. But Congress will only have a few working days to address it before the government runs out of money, risking default. Senate Majority Leader Mitch McConnell, however, said there is a zero percent chance of that happening. This means the Senate has a plan to raise the debt limit, likely attaching it to a CR for government spending or a popular bill that even Democrats won't vote against.
MORE MITCH: While we thought his debt ceiling comment would be the headliner – McConnell’s lack of faith in President Trump is garnering some real buzz. The two have been feuding since the Senate’s health care fail and are now publicly critiquing each other and even using Senator Jeff Flake’s campaign as a battlefield. We have never underestimated the influence of the McConnell’s leadership, but recent polls show voters may still chose Trump over conventional Republicans.
ENTERING THE FLOOD ZONE: At the one year anniversary of Louisiana’s historic flooding, one week before the 12 year anniversary of Hurricane Katrina, and one week after New Orleans was submerged again from failed infrastructure, FEMA Administrator Brock Long met with Governor John Bel Edwards (D-LA). The two mostly talked about emergency preparedness but didn’t forget about the failures of New Orleans’ pumps and drainage systems. For Louisianans and others along the gulf coast the threat of natural disasters is all too familiar, but infrastructure and government play a critical role in protecting their communities. This month President Trump was briefed by FEMA and shortly after unrolled a regulation that had required infrastructure in flood zones be subject to environmental scrutiny. That was a first step to the necessary attention infrastructure in these states need.
BA, NOC KNOCK LMT OUT OF FIRST ROUND OF ICBM REPLACEMENT DEVELOPMENT: Our Senior Defense Analyst Emo Gardner wrote in a surprise, LMT was left out in the cold as USAF awarded BA and NOC tech maturation contracts for the $85B ICBM replacement program. Read the full piece here.
WHITE HOUSE SHAKE-UP AND AT&T/TIME WARNER PROSPECTS (T, TWX): Our Senior Telecom Analyst Paul Glenchur writes It appears a White House staff shake-up will force out deal critic Steve Bannon, reinforcing the perception of likely T/TWX approval. Read his full piece here.
CMS TAKES MAJOR DEREGULATORY STEP | ENDS MANDATORY CARDIAC BUNDLES, CJR VOLUNTARY IN CERTAIN CITIES: Our Senior Health Policy Analyst Emily Evans wrote CMS rescinds Cardiac EPMs & CR Incentives; make CJR voluntary in some MSAs; no word on implications to TKA and IPO. Read the full piece here.
