THE FINAL COUNTDOWN: The House Rules Committee will begin work on the Senate’s budget today, so that a full floor vote in the House can take place Thursday. The House reluctantly agreed to vote on the Senate’s budget with minor tweaks - avoiding a conference committee and thus weeks of work - and angst. House Budget Chair Diane Black worked tirelessly to write, “the most conservative budget in over 20 years,” with the House bill requiring about $200 Billion in mandatory spending cuts. But, the Senate bill does not go that far and even adds $1.5 Trillion to the deficit. House Republicans - including the conservative caucuses - agreed to vote on it despite their concerns for the sake of tax reform. The vote is expected Thursday and then the hard work on tax reform really gets started...
401-OK?: President Trump tweeted that no changes will be made to 401(k)s, despite the Big Six tax framework specifying simplifications in retirement programs. Capping pre-tax retirement contributions at about 14% of current law would change one’s incentive to save, however it could help balance revenue lost from tax cuts. Trump said that this rumor is not happening - 401(k)s are crucial to working families. His input is already giving tax writers on the Hill headaches with more than enough already on their plates: working on crafting language within the framework, with the most middle-class benefits, and that can be passed by the end of 2017. Congress isn't even finished with the budget and provisions are already being rolled back by the Administration, which is sure to ruffle some Congressional feathers.
RELIEF RESISTANCE: The Jones Act received heightened coverage during Hurricane Maria for preventing relief ships headed for Puerto Rico from docking on the Island. While Trump temporarily lifted the Act, some Senators want it gone forever. Senators Jeff Flake (R-AZ) and Mike Lee (R-UT) are not voting for the House-passed relief package that was expected to easily clear Senate early this week, unless it includes language to permanently exempt Puerto Rico from the Jones Act. The Jones Act is a complicated battle filled with political interests over policy - the shipping industry in the U.S. is highly dependent on it preventing competition, as well as dictating workers' compensation laws. However, it can double the price to transport goods and reduce efficiencies just as it does for parts of the oil and gas industry or Puerto Rico. The relief package will move forward and is expected to pass even without their votes this week.
REGULATION REIN IN: Republicans have been trying to chip away at Dodd-Frank since taking control of Washington. The 2010 financial reform legislation increased government control over industries, raising the cost of compliance and regulatory burdens for many financial companies. While the House Financial Services Committee already passed the Choice Act, they are now moving on to provisions that affect the insurance industry. The Committee will be hearing from private sector stakeholders at a hearing today on the effectiveness of the Federal Insurance Office to set international trade standards, and the Financial Stability Oversight Council to identify and mitigate risk to the financial services industry. This is just the beginning of House Republicans drafting legislation to reduce insurance regulations put in place under President Obama.
ADVANCING ARBITRATION: The CFPB’s arbitration rule was designed by the Obama Administration and advanced during the Trump Administration - much to the chagrin of the Administration and Congressional Republicans. The House used the Congressional Review Act (CRA) to block the rule and has been waiting for the Senate to pick it up for months. With Majority Leader Mitch McConnell rumored to have enough votes - the wait is now over - and debate is expected to begin in that chamber today. Treasury Secretary Steve Mnuchin added his voice to concerns over CFPB overreach with a study released Monday calling the rule inadequate and written in favor of class-action attorneys.
ANNOUNCING OUR NEW LEGAL CATALYSTS VERTICAL WITH PAUL GLENCHUR: We are pleased to announce the launch of our new Legal Catalysts vertical, highlighting key cases and legal developments with significant potential impact across multiple sectors. Paul Glenchur, our longtime telecom and media analyst, but also a former federal appellate court law clerk, attorney, and member of the Supreme Court Bar, will lead this research offering. Check it out here.
EPA REVERSES COURSE ON RFS & RINS POLICY AFTER IOWA HOSTAGE TAKING: Our Senior Energy Analyst Joe McMonigle writes that Iowa Senators blocked an EPA nominee and Trump caved on biofuels policy, but an EPA letter providing assurances also raises litigation risk. Read the full piece here.
SENATE BUDGET RESOLUTION DOES NOT RESOLVE DEFENSE BUDGET: Our Senior Defense Analyst Emo Gardner writes that the Senate Budget Resolution does not remove defense spending caps. Read the full piece here.
CYNICS BEWARE | SENATE STEPS ON THE GAS FOR TAX REFORM: Our Senior Health Policy Analyst Emily Evans writes that last night’s vote avoids two key potential speed bumps - conference and House Budget; expect health care to feature in upcoming debate. Read the full piece here.
