Washington Weekly - March 8

This Week:

The House and Senate are in session.

Federal:

Administration:  The big news this week (in what will be a very busy week in Washington) will be the release of President Biden’s FY2024 budget on Thursday.  In addition, both Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellin will be testifying on inflation and the President’s Budget, respectively.  After the release of the budget proposal, President Biden will be heading to Philadelphia to help sell it.  An early release of the President’s plan to extend the solvency of Medicare from 2028-2053 would raise the Medicare tax rate from 3.8% to 5% for those making over $400,000 a year.  It would also close any loopholes that exist with current Medicare taxes.  The budget is also supposed to reduce the deficit by $2 trillion over the next ten years. 

House: With the President’s Budget due at the end of the week, House Republicans have already targeted some of the $130 billion in (non-defense) discretionary funding cuts to roll back spending to FY2022 levels.  While these cuts, which include rolling back some spending in climate change initiatives and welfare reform, it will be difficult to get President Biden to agree, but may put some Democrats in the Senate like Sens. Joe Manchin (D-WV), Jon Tester (D-MT), and Sherrod Brown (D-OH), in a corner on spending. Any deal on the budget will undoubtedly be linked to an agreement on the debt limit.

Senate: Federal Reserve Chairman Jerome Powell testified in front of the Senate Banking Committee on Tuesday.  Along with his statement that, “the latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.” He also added, “Congress really needs to raise the debt ceiling—that’s the only way out,” Powell told lawmakers during semi-annual testimony before the Senate Banking Committee Tuesday. “If we fail to do so, I think that the consequences are hard to estimate, but they could be extraordinarily adverse and could do long-standing harm.”  Senate HELP Committee Chair Bernie Sanders (I-VT) announced that Starbucks CEO Howard Schultz will testify on Wednesday, March 29^th (the same day ASA members will be on The Hill) in relation to labor organizing and collective bargaining at the chain’s stores. 

ASA Advocacy Action:

State Water Standards in Schools: As part of the ongoing campaign to ensure proper standards at the state level, ASA joined its coalition partners in encouraging state legislators to include third party certification, as well as industry and EPA standards, in the following bill addressing lead levels in schools and daycares: New Jersey 3683.

Politics                                                                              

Redistricting: While the 2022 Election has been over for months, two states (OH & NC) operated under interim House maps and candidates in those states will have to run in new districts in 2024.  House Democrats need only five seats to win the majority and Republicans will have to defend 18 seats that Joe Biden won in 2022.  Republicans could increase their advantage in both states and there are still 15 states with active Congressional redistricting litigation.  This story will be one to follow. 

President Biden Job Approval (RCP Average): 44% Approve – 51% Disapprove. The House currently has a composition of 222 Republicans to 213 Democrats. The Senate is comprised of 51 Democrats and 49 Republicans.