From now until December 20, Congress has a full plate of issues to deal with before the Republican trifecta takes hold of political Washington in January. All the items on the agenda are fraught with varying levels of political risk.
The 2018 farm bill extension expired on Monday, September 30. Here is what the Farm Bureau is saying about impacts on farmers.
Up against another government shutdown deadline, Congress approved another funding extension to March. Both sides gave some in the negotiations to satisfy majorities in Congress. However, House Speaker Johnson is slowly losing key Republican support which 1) then requires more Democratic support on future funding votes and 2) raises questions on his ability to lead House Republicans.
On the tax front, House Ways and Means Committee today begins consideration of a $80 billion bipartisan tax bill. The bill under consideration would restore companies’ ability to deduct the entire cost of certain equipment or capital expenditures and makes it easier to deduct interest expenses. Amendments on repeal of the death tax are expected in be introduced.
Taking time out of Washington following a historic vote to expel one of their own, Congress returns this week maybe still hungover on turkey and pie but facing a full plate of unfinished business in a growingly complex legislative agenda. The spotlight on international events gives way for both sides to bring domestic issues to the negotiating table.
Plenty of people in Washington and senators have been googling Mike Johnson since he ascended to the speaker’s office this week. Bank lobbyists have been doing the same. The 51-year-old Republican from Louisiana is a mystery to the financial world’s most influential advocates. More than one lobbyist we asked described Johnson as a “black box.” “General sentiment in our world is that he is a totally unknown figure,” one official working for a top bank trade group said. That being said, Johnson’s no stranger to their campaign contributions. Whether it is banking, health, foreign affairs or any other issue before Congress, many believe fresh leadership in the House can unify the majority actively deal with the Senate and Administration on critical issues before the Congress.
Commodity groups face some critical farm bill decisions in coming weeks that hinge on factors out of their control, including an updated forecast of farm program costs and uncertainty about the ongoing debt ceiling standoff between the White House and House Republicans.
The annual end of the year battle is taking place as Congress must pass legislation to fund the government before leaving town for the year. This is done in the spirit of Christmas and attempts by leadership in making – or not making because not everyone has been nice - the final bill a Christmas tree full of gifts, and additional spending. Certain Republicans, preparing for their recently won, albeit narrow majority, are making waves about what not to spend money on with threats of holding the final bill hostage and potentially shutting down the government. Trust me, no Member of Congress wants to be in Washington for the holidays!
The annual rush for Congress to finish their must do business and head home for the holidays is underway. This year is somewhat different as majority changes in the House has resulted in leadership changes of the parties and committees. Whether the new House Republican leader – TBD – will be able to centralize power or succumb to demands to decentralize leadership control will determine how cohesive an agenda is put forward next year. Divided government often brings out the best - and the worst - on both sides of the aisle.
The typical end of year must pass bill is agreement on next year’s government funding. A cap is generally agreed to with other high priority issues –Defense, Covid and Ukraine funding topping this year’s list – negotiated to avoid the shutdown of government programs.
……….some say the fat lady sings but in this case I am going to say It’s Not Over Till All the Votes Are Counted. Some of my quick original observations and others picked up from sources.