Congress just broke for its annual August recess and will return next month to finish a few key initiatives before the end of the year. It has been a very active work period leading up to the recess, so we wanted to share a recap of some of the major issues Congress wrapped up this summer, as well as a forecast of what can be expected for the remainder of the year.
Sincerely,
The Bridge Team
CHIPS and Science Act: At the end of July, Congress passed the CHIPS and Science Act, a bill that would subsidize domestic semiconductor manufacturing and invest billions in science and technology innovation. The bill, passed with bipartisan support in the House and Senate, aims to strengthen the United States’ competitiveness with China in a key industry for economic and national security. A summary of the legislation can be found HERE.
Reconciliation: After more than a year of intra-party negotiations, the Senate passed a signature climate, tax, and health care legislative package early in August, in a 51-50 vote along party lines. While the legislation is much smaller than Democrats originally envisioned, it provides more than $300 billion for climate change and clean energy initiatives, imposes a 15% minimum tax on corporations, and aims to lower prescription drug prices. The legislation gives President Biden and Senate Majority Leader Chuck Schumer (D-NY) a long-sought victory on many of their top policy priorities heading into the midterm elections.
NATO Expansion: In response to Russia’s war in Ukraine, the Senate voted overwhelmingly to allow Finland and Sweden to join NATO. All 30 NATO members are expected to complete the ratification process before the end of the year, representing a historic rebuke of Russian leader Vladimir Putin and his invasion of Ukraine.
Fiscal Year 2023 Appropriations: The House has passed six spending bills for Fiscal Year 2023, while the remaining six, including the two biggest bills – Defense and Labor-HHS-Education – will not come to the floor until September at the earliest. The Senate Democrats released their 12 spending bills at the end of July but do not have any markups currently planned. When Congress returns from August recess, they will need to immediately consider a continuing resolution to keep the government funded beyond September 30. While the exact duration of a continuing resolution is uncertain, it will probably give legislators until the end of the calendar year or until the conclusion of the 117th Congress in January 2023.
National Defense Authorization Act (NDAA): The NDAA is considered one of the few “must-pass” pieces of legislation each year because it authorizes spending for the Department of Defense, as well as many other essential foreign policy provisions. The House passed its defense policy bill, adding $37 billion more than the Biden administration requested for military spending. The Senate Armed Services Committee has filed its own version of the NDAA, which would increase spending by even more, but it has not yet been considered by the full Senate. A final, bicameral agreement is expected near the end of the year.
Midterm Elections: The upcoming midterm elections in November will determine control of Congress for the next two years, with every seat in the House and a third of the seats in the Senate up for election. Midterm elections are almost always a referendum on the incumbent president, and both parties have historically suffered midterm losses in the House two years after taking control of the White House. With razor-slim majorities in the House and the Senate and low job approval ratings of President Biden, the Democrats are expected to lose their majority in the House. The Democrat’s Senate majority, on the other hand, will be determined by a handful of races in Georgia, Arizona, Nevada, Wisconsin, and Pennsylvania.