6-29-23
## Read Gov. Relations Consultant AJ Donelson's update below.
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When Congress returns from the July 4 recess, it will face a crowded agenda of spending bills, the annual defense authorization act, a major farm bill, and a House Republican effort to enact a major tax bill.
The recent bipartisan debt limit agreement imposed a new pressure on Congress to enact new spending measures on time, or at least by January 1. Under the agreement, if Congress is unable to pass annual spending bills by January 1, an automatic 1 percent across-the-board funding cut goes into effect. There is concern on both sides of the aisle over what that would do to both domestic and defense spending. Ideally, spending bills should be passed by September 30, the end of the fiscal year. It is more likely, though, that Congress will cobble together a short-term extension, holding spending at current levels, and punting tough decisions until the end of the year.
Congress has approved an annual defense authorization bill for 63 years in a row. Both sides want to get a deal done again this year but expect fights over amendments to the $885 billion plus defense package. Controversial amendments and major floor fights related to abortion, gender policies, racial inclusion, and even electric vehicles are likely to slow down the process. Congress will eventually get around to passing a bill but expect it to take up a lot of time that Congress could be spending on other issues.
The 2018 Farm Bill is scheduled to expire this year. Enacting another farm bill is a priority for Congress, especially those Members of Congress from farm states. Nonetheless, there are disagreements over major aspects of both the farm commodity support programs and nutrition assistance programs. The House Agriculture Committee isn’t expected to approve its bill until September. This doesn’t leave a lot of time to pass a bill before the end of the fiscal year. Expect to see a short-term extension in the fall, delaying consideration of a longer-term bill until 2024.
House Republicans are trying to put together a major tax bill, although there is little to no chance the Senate will go along with a tax package crammed with controversial House GOP inspired provisions. Nonetheless, expect the House to spend a lot of time over the summer debating headline grabbing tax proposals.
As reported elsewhere in this Member Update, the nomination of Julie Su to be Secretary of Labor is bogged down in the Senate. Regardless of how this fight turns out, don’t expect other labor proposals to emerge from Congress this year, especially in light of other priorities described above. Instead, expect any movement on labor issues to come from Department of Labor regulatory action and not Congress.