ASA Advocacy on Capitol Hill: Key Legislative Priorities and Challenges as the 118th Congress Winds Down

Last week, ASA Advocacy was on Capitol Hill as the 118th Congress continues to close out its business for the year. Since Congress had adjourned early for the election, much of the must-pass legislation in the House and Senate was left for a ‘lame duck’ legislature to complete in November and December. There is much to be done with the current continuing resolution funding the government set to expire on December 20th. Lawmakers will need to come to an agreement on an omnibus measure or another continuing resolution into next year and a new Congress. As of this writing, a CR seems the most likely route and would fund the government into Spring 2025.
 

Along with the federal budget, Congress also needs to pass the National Defense Authorization Act (NDAA), the Farm Bill, and several other priorities before the end of the year. With just over seven legislative days left, Congress will have to make quick work of these pressing issues for outgoing President Biden to sign.
 

Against the backdrop of the likes of Elon Musk, Vivek Ramaswamy, and various Cabinet designees making the rounds on Capitol Hill, ASA VP of Advocacy Steve Rossi met with several House members and staff on a multitude of tax issues, including LIFO. Less than ten members of the House Ways and Means Committee were in office when the Trump Tax Cuts (TCJA) were passed in 2017. Therefore, it was a great opportunity to proactively meet with members and their staff to discuss how certain tax provisions affect our industry.
 

When Republicans take over the White House, Senate, and House of Representatives in January, it is widely expected that they will move quickly on tax issues to be included in budget reconciliation. However, incoming Senate Majority Leader John Thune (R-SD) has proposed a path where Congress would take up border security and defense first, then shift to budget and tax later in the year. As Republicans take power, they will have a temporary reduction in numbers, as House members and Senator Marco Rubio (R-FL) will be resigning their seats to take their new roles in the Trump Administration.
 

While Senate appointments are quick and performed by a governor’s pen stroke, House vacancies are filled through special elections and take some time to play out, with each state having its own laws regarding their operation. For example, Rep. Elise Stefanik (R-NY) will resign her seat to become the Ambassador to the United Nations. Gov. Kathy Hochul (D-NY) has ten days to announce a special election after a vacancy is declared, and the election must be held within 90 days. In Florida, Gov. Ron DeSantis (R) has already set April 1st for the special elections to replace Rep. Michael Waltz (R) and former GOP Rep. Matt Gaetz. This means that Republicans may not be up to full voting strength in the House until mid-April. With a 220-215 Republican majority, this will be critical.
 

With the 119th Congress being sworn in on January 3rd, it will provide new opportunities and a much different path than that of the last four years. Slim margins in the House may lead to some disagreements over policy, but Republicans will likely take a page out of the Democratic playbook from the first two years of the Biden Administration and pass most of their policy priorities as quickly as possible.