November 12, 2021

WSW Business Operations report – OSHA ETS update, repeal of Employee Retention Tax Credit

November 12 2021 WSW Business Operations report — WSW’s latest Business Operations report includes an update on the legal challenges facing the OSHA ETS, as well as passage of the bipartisan infrastructure bill – which eliminates the Employee Retention Tax Credit (ERTC) for Q4 2021.

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November 5, 2021

OSHA Emergency Temporary Standard

As many of you know, yesterday, OSHA finally issued its long-awaited COVID-19 vaccination and testing Emergency Temporary Standard (ETS) for private businesses with 100 or more employees. WSW has put together the attached overview, which covers the main provisions of the ETS, as well as provides some additional context on the expected legal challenges and other factors that could impact how things move forward.

[su_button url=”https://www.deepwaterpoint.com/wp-content/uploads/2021/11/COVID-19-OSHA-Emergency-Temporary-Standard-11-5-2021.pdf” target=”blank” style=”flat” background=”#ff9900″ color=”#000000″ size=”8″]DOWNLOAD REPORT[/su_button]

Build Back Better Agenda and 117th Congress developments from October 23-29, 2021, relevant to:
BUSINESS OPERATIONS

This report includes the latest updates on the pending OSHA COVID-19 vaccine Emergency Temporary Standard, as well as the tax provisions in the most recent version of the Build Back Better Act.

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October 22, 2021

Reconciliation Negotiations Are Ongoing

This week in Washington has been dominated by a perennial question: when will a deal be struck on the reconciliation bill? With the surface transportation authorization expiring on October 31, time is of the essence. The political back-and-forth has dominated the news, but your WSW will continue to cut through the noise on your behalf.

Here’s What You Might Have Missed

The Ongoing Reconciliation Conversations. Topline: House Majority Leader Steny Hoyer (D-MD) announced today that he intends for the House to consider the partisan reconciliation bill and bipartisan infrastructure bill next week. President Biden, House Speaker Nancy Pelosi, and Senate Majority Leader Chuck Schumer met today to discuss. Last night, at a CNN Townhall, President Biden made a few notable statements regarding reconciliation:

• He would not support a work requirement for the child tax credit
• A paid parental leave provision has been narrowed from 12 weeks to 4 weeks
• Dental, vision, and hearing coverage in Medicare will likely be dropped, and is instead advocating for an $800 voucher for dental coverage
• Corporate tax hikes likely will not be included
• The Clean Electricity Performance Program is still on the table

We will address the President’s townhall in greater detail below. But, as it relates to reconciliation, it looks like the final topline number will be between $1.7 and $2 trillion. Sen. Manchin has gone on record that he said a final topline number could be decided today, with additional details to be hammered out by next week – however, several senators seem to believe that they will need to work through the weekend.

As a reminder, House progressives have insisted that they will not allow a vote on the bipartisan infrastructure bill until a reconciliation bill is ready to be voted on.

President Biden Participates in CNN Townhall. Last night, President Biden participated in a townhall in Baltimore hosted by CNN. Other than the social spending bill changes that we highlighted above, President Biden underscored a few other policy prerogatives:

• Filibuster reform for voting reform and the debt limit
• Sending the National Guard to alleviate pressure on the nation’s truckers amid shortages impacting the supply chain
• Supporting the firing (or at suspension) of first responders and law enforcement officers who do not receive the COVID-19 vaccine

You can read the President’s full remarks here.

Changes to U.S. Vaccine Protocol. Yesterday, the FDA authorized booster doses of the COVID-19 vaccines by Moderna and Johnson & Johnson. The FDA also authorized boosters that differ from the vaccine originally given, and is preparing to approve vaccinations to be given to young children. You can read WSW’s full vaccine report here.

Senate Releases Remaining Nine Appropriations Bills; Continuing Resolution Lapses December 3. On Monday, the Senate Appropriations Committee released the remaining nine appropriations bills. You can find them all here. Observers have noted that the bills are fairly partisan, so it remains to be seen how the House and Senate will reconcile their differences so the government doesn’t shutdown. Ultimately, it is likely that yet another continuing resolution will be passed, bringing the deadline to right before Christmas.

What You Should Be Watching

Upcoming Gubernatorial Races Tighten Up. In both Virginia and New Jersey, the races for governor are tightening. In Virginia, polls are showing Republican Glenn Youngkin and Democrat Terry McAuliffe neck-and-neck, with some polls putting Youngkin ahead. As population has boomed in Northern Virginia, many observers expected this race to be “Likely Democrat,” and they have had to adjust their priors accordingly. In New Jersey, Republican Jack Ciattarelli is now behind incumbent Democratic Gov. Phil Murphy by single digits. As the President’s approval ratings tumble, these races have the ability to serve as a bellwether for 2022.

Redistricting Outlook. As of October 20, four states have finalized their newly drawn districts: Oregon, Maine, Nebraska, and Indiana (this does not include single-member delegate states). FiveThirtyEight approximates that this has led to Democrats netting two seats so far. However, this will likely change as states like Florida and Texas redraw their maps. You can find FiveThirtyEight’s tracker here.

October 15, 2021

President Biden Signs Temporary Increase in the Debt Limit

Now that Congress and the Administration have agreed to both a temporary increase in the debt limit and a continued extension of the current federal budget through early December, Washington settled into what will now be weeks if not months of high stakes negotiations to strike a final deal on the budget reconciliation and infrastructure packages.

The Debt Ceiling is Temporarily Raised. On Tuesday, the House passed a $480 billion increase in the country’s borrowing limit. On Thursday, President Biden signed the bill raising the debt limit until about early December. The debt ceiling was expected to be reached this coming Monday. However, early December will now be an especially pressure-filled time in Washington, with the continuing resolution slated to lapse on December 3.

Reconciliation Negotiations Remain in Limbo. Yesterday, news leaked that the White House is “nearing the end of its patience on reconciliation talks… the president is ready to get this done.” While it has been tirelessly reported that Sens. Kyrsten Sinema (D-AZ) and Joe Manchin (D-WV) hold the keys to the reconciliation package, a savvy article published by NPR reported that Sinema and Manchin’s priorities are wildly different. One key difference is that Manchin supports allowing Medicare to negotiate directly with drug companies, while Sinema does not. While the prevailing total of the package will likely be in the ballpark of $1.5 trillion, it is unclear as to what the final bill will look like.

The Infrastructure Package. The one-month extension of the surface transportation bill lapses on October 31. Since President Biden and House Democrats have made it very clear that the bipartisan infrastructure package won’t pass unless it is paired with a reconciliation bill at the same time, it remains unclear as to what next steps are on dealing with surface transportation reauthorization.

Backup at the Ports of Los Angeles and Long Beach. There has been substantial gridlock at Los Angeles ports amid supply chain issues. The situation has become so dire that on Wednesday, President Biden announced expanded hours at both ports. This backup potentially has major implications. This is both major news and something to keep an eye on moving forward, especially as the economy has been plagued by increasing inflation.

October 1, 2021

Defense update, COVID requirements for federal contractors

Two reports prepared by Winning Strategies Washington

First is an overview of the state of play on FY2022 appropriations and National Defense Authorization Act (NDAA).

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Second is an overview of the new COVID-related requirements for federal contractors. Note that this is separate from the expected OSHA Emergency Temporary Standard (ETS) that will require businesses with more than 100 employees to require their employees to be fully vaccinated.

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September 30, 2021

Congress Passes a Continuing Resolution, President to Sign

Government will remain open through December 3; debt ceiling question unanswered
Over the last week or so, Congress has been scrambling to pass legislation to keep the federal government funded past the September 30 end of the fiscal year. Today, Congress passed a continuing resolution (CR) that extends government funding through December 3. The President is expected to sign the bill and avert a government shutdown. The CR includes some additional items – most notably, it includes $28.6 billion for natural disaster assistance to hard-hit states and $6.3 billion for relocation efforts for Afghan refugees. However, the does not address the looming deadline to raise the debt ceiling to avoid default (currently pegged at October 18 or so).

September 24, 2021

Major Legislative Deadlines Imminent

Government Funding, Infrastructure, Reconciliation Dominate the News

This week in Washington, moderate and progressive Democrats have drawn their battle lines over the reconciliation/infrastructure dual-tracking, and the conflict currently seems intractable. Simultaneously, conflict over raising the debt ceiling threatens to sideline a continuing resolution to keep the government open. Ultimately, things in Washington are constantly evolving.

What You Might Have Missed

The Ongoing “Dual Track” Battle. The big news of the week is the battle between progressive and moderate Democrats on both sides of the Capitol over the “Build Back Better Act” reconciliation bill and the bipartisan infrastructure legislation. Both wings of the party are in a standoff, with moderates refusing to vote for the reconciliation bill without a simultaneous vote on the infrastructure bill. Progressives similarly won’t vote for a bipartisan bill until the reconciliation bill is ready and voted upon. Both sides fear that the other will defect from their camp’s preferred policy.

In the Senate, the main point of contention is the price tag of the reconciliation bill, with moderate Democrats seeking a $1.5 – $2 trillion package. Progressives are outraged, arguing that the $3.5 trillion figure already was a compromise amount. President Biden, Speaker Pelosi, and Majority Leader Schumer are doing all they can to project a sense of calm, with Speaker Pelosi saying in a press interview that “I’ve always been very calm about this because it’s like, it happens all the same way, all this bluster, but at the end of the day we will be unified for the American people.” In the meantime, Republicans are expected to uniformly vote “no” on reconciliation, and about half a dozen to two dozen House Republicans are expected to vote “yes” on the infrastructure bill. While House Republican leadership is advising its Members to oppose the latter, Senate Republicans have been pushing their House colleagues to vote in favor.

Overall, however, there seems to be a sense of urgency from Democrats across the spectrum, especially as the midterms rapidly approach. With the fate of the House and Senate hanging in the balance, congressional Democrats are hoping to cinch this marquee accomplishment before then.

House Votes to Approve NDAA, Continuing Resolution. Several key votes happened in the House this week. First, the House passed the FY22 NDAA with a wide bipartisan majority. This legislation included $24 billion over the President’s budget request. The Senate now must pass its version and both houses must reconcile their differences before the bill hits the President’s desk.

The House also passed, along party lines, a continuing resolution (CR) this week to the tune of $35 billion, which includes funding for communities struck by recent natural disasters and aid for Afghan refugees. The main holdup was the suspension of the debt limit; Republicans believe that Democrats should just include it in the reconciliation package. While the Senate will consider the House-passed version of the CR, it’ll likely fail. It is then probable that the House will pass a new CR without the debt limit piece, which the Senate will pass. The fiscal year ends next week, so something will have to break in the short-term.

Police Reform Talks End. This week, Sen. Cory Booker (D-NJ) informed Sen. Tim Scott (R-SC) that police reform talks were over. Having languished for months, this should not come as a surprise to observers; however, following one of the most public displays of mass demonstration in years, it is a blow to bipartisanship in the Senate.

What You Should Be Watching

The Virginia Gubernatorial Race. This week, a Washington Post poll found the Virginia gubernatorial race in a dead heat. While the race obviously has focused on state issues, this election is usually a fairly good bellwether as to where Americans are, politically, nearly a year after the incumbent President took office.

Vaccine Booster Shots: Who Qualifies? Today, CDC Director Rochelle Walensky endorsed the CDC Advisory Committee on Immunization Practices’ (ACIP) recommendation for a booster shot for people older than 65 or have an underlying health condition. Walensky went further than ACIP’s recommendation, extending it to workers in high-risk industries. You can read the press release here.

September 3, 2021

What to Expect as Congress Returns from Recess

When Congress reconvenes, they will have a lot of work to do. Elected officials will need to tackle the upcoming end of the fiscal year, the debt ceiling, and the expiration of various COVID-19 relief benefits. At the same time, Senate and House committees must provide recommendations on spending priorities under the proposed $3.5 trillion Democrats-only reconciliation bill. Some moderate Democrats have raised concerns over the price tag; as a reminder, passing the reconciliation bill will require all Democrats in the Senate and nearly all in the House to vote in favor. These circumstances give individual members significant leverage. Finally, House Democrats will consider the Senate-passed infrastructure bill on September 27.

In this week’s News & Notes, we wanted to provide a ticker list of key dates to keep in mind:

• September 6, 2021: Extra $300/week federal pandemic unemployment benefit expires. Several states have already discontinued distributing these benefits.
• September 15, 2021: House and Senate committees to report their portions of Democrats’ reconciliation package.
• September 27, 2021: Deadline for House consideration of the Senate-passed bipartisan infrastructure package.
• September 30, 2021:
  • FY21 funding and other major programs expire, including:
    • Surface transportation authorization (FAST Act)
    • National Flood Insurance Program
    • Transportation Security Administration
    • Temporary Assistance for Needy Families
  • Employer tax credits for providing emergency sick and family leave, the 15% benefit increase for SNAP, COBRA premium subsidies, and Veterans Affairs Department cost-sharing waiver expire.
• December 31, 2021:
  • Several tax extenders, including for energy and mortgage insurance premiums, expire.
  • Expansions of EITC, child tax credit, child and dependent care tax credit, and employee retention credit expire.
  • Medicare sequestration suspension expires.
• January 31, 2022: Student loan repayment and interest accrual suspension expires.

August 25, 2021

House Passes Partisan Budget Resolution, Delays Infrastructure Vote Until September

House to vote on bipartisan infrastructure deal in late September

On Monday, August 23, Speaker Pelosi called the House back to Washington for an abbreviated session to advance three key elements of President Biden’s domestic agenda: 1) the Bipartisan Infrastructure package or “BIF”; 2) the $3.5 trillion “human infrastructure” reconciliation instructions; and 3) a key update to the Voting Rights Act, named in honor of the late Rep. John Lewis.

Earlier this month, a group of nine House moderates began to push back on the Speaker’s efforts to combine the BIF and the $3.5 trillion reconciliation effort into one vote. Moderates wanted to be given the opportunity to vote separately on the BIF and the reconciliation bill. With a slim majority in the House, Speaker Pelosi could only afford defections from three members of her caucus.

Additionally, BIF cosponsor Sen. Krysten Sinema (D-AZ) restated her opposition to the size of the reconciliation package. Sen. Joe Manchin (D-WV) made similar remarks during the same news cycle. Late Monday night, House action was postponed as a speedy compromise with the House moderates proved elusive.

Speaker Pelosi ultimately demonstrated her considerable political abilities by forging a workable compromise with the House moderates by early Tuesday afternoon, effectively decoupling the measures. The compromise set up a final vote on the BIF on September 28, but allowed the reconciliation process to begin in both Chambers without House Members having to take a direct vote on the $3.5 trillion package. Instead, Members voted on a procedural matter, with all Democrats voting yes and all Republicans voting no.

Committee Chairs have been given till mid-September to pull together their proposals for the reconciliation effort, and we will be watching those developments closely.

Democratic progressives have carried the day, but it is important to note that the reconciliation effort is far from over. The $3.5 trillion called for has very few details attached, and the thorny issues of how to pay for this package are still unresolved. Some combination of tax increases on both corporations and individuals will have to be considered, as most revenue options were exhausted in constructing the BIF. Although the US business community remains almost unanimously in favor of the bipartisan infrastructure effort, this will not be the case for the reconciliation effort.

Further complicating the situation for the Democrats are the ongoing images of chaos coming from Afghanistan. Biden has been on his heels dealing with his first major international crisis, as US forces attempt to airlift stranded civilians and refugees.

On the domestic front, vaccine hesitancy has allowed the COVID Delta variant to take hold in certain quarters, calling into question when the pandemic will finally recede, even as the FDA grants full approval to the Pfizer vaccine.

Given this backdrop, Democrats are not going to abandon a hard-fought legislative victory in the form of the bipartisan infrastructure deal. With history as a guide, many progressives believe that their fragile majorities in both the House and Senate are in jeopardy – as the party in control of the White House often suffers heavy losses in the first mid-term election. Progressives want to take bold action on key priorities and repair fissures in the social safety net that were exposed during the ongoing pandemic. Moderates appear concerned that the size and scope of this $3.5 trillion in new spending, coupled with tax increases, will create a backlash and ensure electoral defeat in their battleground states and districts. The 2022 midterm elections are just fourteen months away.

When Congress returns in late September, and the final details of the reconciliation bill come into clearer focus, expect continued tensions within the Democratic party. Time will tell which side of the Democratic political spectrum has the best read on the whims of the electorate.