Washington Weekly - September 29

This Week:

The House and Senate are in session. 

Federal:

Fast & Furious:  With the federal government quickly approaching a September 30^th deadline before a shutdown, things this week have been changing almost on an hourly basis.  Where it stands (at this writing) – Speaker Kevin McCarthy (R-CA) is trying to get a Continuing Resolution (CR) on the floor this week for a vote.  This is a heavy lift for the Speaker, not only because he has a slim majority to pass any legislation, but also because he has a faction of his caucus that is openly revolting against his agenda – going so far as to vote with Democrats against a defense spending bill last week. Speaker McCarthy has his work cut out for him as some members of his caucus are unavailable to vote or returning later in the week due to personal issues.  Add in increased attacks from Democrats and a competing CR from the Senate, and it results in a political minefield to traverse as a shutdown looms at Midnight on Saturday.

The Senate: As both parties in the Senate become increasingly uncomfortable with a government shutdown on the horizon, the Senate is expected to bring its own CR to the floor this week.  This version would look much different than what is proposed in the House, being called a ‘clean’ bill, it would simply be a short-term funding measure (about 45 days), likely without any money for Ukraine or disaster relief.  The latter issues are sources of contention in the House and any CR would have to pass both chambers before being sent to the President to sign. It remains unseen whether the Speaker would even bring it to the floor for a vote in the House.

What Happens Next: Should Congress fail to pass a CR for the President’s signature, the government would shutdown at Midnight on October 1.  About 15% of the government would truly shut down.  Most employees would still be required to show up to work and would receive back pay once the shutdown is over.  Programs with ongoing appropriation authority would not be affected. One area of concern has been that the military would not receive pay during this time and may be a catalyst to find a solution. 

ASA Federal Action:                                                                                       

Water Heater NOPR: On Tuesday, ASA filed comments with the Department of Energy, pertaining to its Notice of Proposed Rulemaking on Consumer Water Heaters.  This will be an ongoing process with a potential implementation date of January 1, 2029. 

DOL Overtime Rulemaking: This week, ASA joined 100 other business organizations in asking the Department of Labor for additional time in responding to its NOPR for employee overtime.  The Bloomberg article covering the action follows below:

Business Groups Press DOL for More Comment Time on Overtime Plan

By Rebecca Rainey | September 25, 2023 1:00PM ET
 

• Groups seek 60 day extension, 120 days total to weigh in
• Timing could be dire for DOL overtime rulemaking process

More than 100 business groups want more time to provide input on the US Department of Labor’s proposal to update overtime pay regulations, citing the “massive impact” of the rulemaking.

In a letter sent Monday to Wage and Hour Division head Jessica Looman, business organizations including the Partnership to Protect Workplace Opportunity, the American Hotel & Lodging Association, the National Restaurant Association, and the National Retail Federation, among others, requested an additional 60 days to comment on the proposal.

“Additional time is needed in the comment period to allow the regulated community to analyze the rulemaking, fully assess the potential impact the changes will have on the economy, business operations, and workers, and develop comprehensive comments,” the letter said.

The proposal, released at the end of August, is estimated to make 3 million workers newly eligible for overtime pay when they work more than 40 hours a week. Business groups have already warned of potential legal challenges to the future rule, based on litigation over previous attempts to raise the overtime threshold.

The Biden administration rulemaking would ensure workers making less than about $55,000 annually are automatically owed overtime pay. It would also include automatic updates to raise the salary threshold every three years.

The proposed rule was released with a 60-day comment period, so if the extension is granted, the public would have 120 days total to provide feedback on the regulation.

But pushing the public comment deadline another two months could be risky for the DOL, potentially butting up against the next election cycle.

If Democrats were to lose the White House in 2024, any policy issued by the outgoing administration could be delayed or canceled all together through another rulemaking or via the Congressional Review Act.

Politics:

SCOTUS: This week, the Supreme Court ruled that Alabama would have to redraw its current Congressional map ahead of the 2024 election cycle. The most recent map, drawn in 2021, currently has 7 Republican seats and 1 Democratic seat.  The Supreme Court took issue with how the seats were drawn as they do not sufficiently represent Black voters who make up 27% of the electorate in Alabama, leading to a possible second Black majority district being included in a future map.

The Menendez Saga:  After a jury was unable to reach a verdict in his first federal corruption trial in 2015, Sen. Bob Menendez was indicted on corruption charges by federal prosecutors again last week.  The government alleges that he used his position as the Chair of the Senate Foreign Relations Committee to aid the Egyptian government.  As a result, several fellow Democrats have called for his resignation, including New Jersey Gov. Phil Murphy, Sen. Corey Booker (who testified as a character witness in his last corruption trial), and former Speaker of the House Nancy Pelosi.  Rep. Andy Kim (D-NJ) was among the first to call for Sen. Menendez to resign.  He took it a step further this week and announced that he would challenge Menendez for the seat in 2024. 

President Biden Job Approval (RCP Average): 41% Approve – 55% Disapprove.

Generic Congressional Ballot (RCP Average): Republicans 1.4%. The House currently has a composition of 221 Republicans to 212 Democrats (2 Vacancies). The Senate is comprised of 51 Democrats and 49 Republicans. Special Elections: Democratic: (RI-1 - General: 11/7/2023).  Republican: UT-2 - General: 11/21/2023. Rep. Chris Stewart (UT-2) resigned on September 15, 2023.