The House and Senate will be in session for the week ahead. When the Senate returns on Monday afternoon, debate will continue on the nomination of Samantha Elliott to be United States District Judge for the District of New Hampshire. At 5:30, there will be a cloture vote on the nomination of another judge – Lucy Haeran Koh – to be a United States Circuit Judge for the Ninth Circuit. Afterward, the Senate is slated to return to action on the National Defense Authorization Act (NDAA) and will look to take up legislation to extend the debt limit through 2022. At a later point during the week, the Senate is expected to vote on the nomination of Samantha Elliott as well as Jennifer Sung, also to be a United States Circuit Judge for the Ninth Circuit. Consideration of the Build Back Better Act or any other cleared piece of legislation also could occur during the week.

When the House returns on Monday, they will only meet in pro-forma session. On Tuesday, the House could take up legislation to extend the debt limit once it is received by the Senate. This could occur on Wednesday if it is not received in a timely manner. The House is also set to consider the Combating International Islamophobia Act (H.R. 5665) on either Tuesday or Wednesday.

Debt Limit Crisis Avoided – On Thursday, the Senate voted on a procedural measure designed to avoid a crisis over increasing the debt ceiling. In an agreement reached by Senate Majority Leader Chuck Schumer (D-NY) and Senate Republican Leader Mitch McConnell (R-KY), the legislation would allow for a vote on a “one time” increase to the debt ceiling using only a simple majority. This would avoid a protracted legislative effort to pass a bill using reconciliation, or, having to find the necessary votes to overcome a potential cloture vote. The vote on the measure was a bipartisan 59 to 35, and included Senator Susan Collins (R-ME) and thirteen other Republicans. Though there was bipartisan support for this measure, the bill to actually increase the debt limit will likely only pass along party lines. That legislation is expected to be considered in the Senate either Tuesday or Wednesday of this week. Treasury Secretary Janet Yellen has previously stated that the debt ceiling needs to be increased by December 15.

CBO Issues “True Cost” Report of Build Back Better Bill – On Friday, the Congressional Budget Office (CBO) issued a report that showed an extrapolated deficit increase of $3 trillion over ten years relative to the Biden Administration’s Build Back Better legislation (H.R. 5376) if provisions of that bill had no expiration date. The CBO stated that the amount they specified “includes three components: effects usually counted in CBO’s cost estimates…the effects of increased resources for tax enforcement, and effects on interest on the public debt.” The CBO indicated that under usual practice, “estimates to be used for budget enforcement purposes include the first component but not the second and third.” The report was requested last month by Senate Budget Committee Ranking Republican Lindsey Graham (R-SC) and House Budget Committee Ranking Republican Jason Smith (R-MO) who have long-contended that H.R. 5376 is “the most expensive bill in American history” and questioned assertions that the bill would “cost ‘zero’ despite analyses showing it will spend $4.5 trillion and add $3 trillion to the deficit.” According to the CBO report, under H.R. 5376 as passed by the House, expansion of the child tax credit would expire at the end of 2022 and would cost $185 billion by the end of that year. Extended out, CBO’s ten-year cost estimate of the provision would increase to almost $1.6 trillion. In another example, expansion of coverage for childcare and preschool would expire after 2027 at a cost of $381 billion, while making it permanent would increase the cost to $752 billion over ten years. Republicans were quick to tout the CBO analysis, with Senator Mitch McConnell (R-KY) stating that the cost of the Build Back Better Act “would actually cost a staggering $4.9 trillion in the first decade alone.” Senator McConnell added “either this plan would explode our debt or Democrats intend to raise taxes by trillions and trillions more than they’re admitting, beyond the massive tax hikes in the bill.” White House spokeswoman Jen Psaki downplayed the numbers as a “fake CBO score,” saying “this is about proposing the extension of programs that has not been agreed to without the commitment of the President,” adding that “he would never support extending these programs if they weren’t paid for, period.” She further emphasized, “that has been his commitment…that is his commitment.”

House Dems Release Report Calling For Corporate Diversity, Pay Equity Legislation - On Monday, House Financial Services Committee Chairwoman Maxine Waters (D-CA) and Representative Joyce Beatty (D-OH), Chair of the Subcommittee on Diversity and Inclusion, released a majority staff report entitled, "Diversity and Inclusion: Holding American's Largest investment Firms Accountable." Earlier this year, the Committee requested data from large investment firms specifically on their diversity and inclusion data and practices. The report's findings are based up on that data, which shows that racial and ethnic groups are underrepresented in executive and senior level roles, as well as on corporate boards. The report also found shortcomings in procurement practices.

The report put forth several federal policy recommendations aimed at increasing diversity and equity among these investment firms, and among publicly traded companies more broadly. Specifically, the report called on Congress to pass the "Improving Corporate Diversity Governance Through Diversity Act" (H.R. 1277), which would require publicly traded companies to disclose the gender, race, ethnicity and veteran status of their board directors, nominees, and senior executive officers to the U.S. Securities and Exchange Commission (SEC) annually.  The New England Council endorsed this bill earlier this year. The report also recommended legislation that would require the SEC to mandate companies to conduct audits of compensation and pay variations based on employee race and gender identity every two years and disclose the results to the agency, as well as a bill to mandate that public companies disclose whether they had direct or indirect ties to slavery or profited from the practice as part of an independent audit on their diversity and inclusion policies. Read the full report here.

Executive Order Issued Aiming to Cut Government Carbon Emissions by 65 percent by 2030 – In an executive order issued on Wednesday, President Joe Biden set the federal government on the path to reduce its carbon emissions by 65 percent by 2030, and to zero them out entirely by 2050. Under the new approach, federal operations would run entirely on carbon-free electricity by 2030. By 2035, the government would stop buying gas-powered vehicles, switching to zero-emission heavy-duty trucks and cars. A decade after that, most of the buildings owned or leased by the government would no longer contribute to the carbon pollution that’s warming the planet. The order also instructs the government to launch a “buy clean” initiative, prioritizing products produced and transported with low greenhouse gas emissions.

FEMA Includes Climate Resilience as Key Agency Goal – On Tuesday, the Federal Emergency Management Agency (FEMA) announced that in its strategic plan for the coming years is to included climate resilience as one of its three main goals, restoring climate change as a central consideration after the Trump administration skirted the issue without a single mention in its last such plan. The new version for 2022-26 calls for the agency to study climate change and then weigh the phenomenon in its work to make communities resistant to its impacts. View the full publication here.

USITC Recommends Extension of Solar Tariffs – On Wednesday, the United States International Trade Commission (USITC) urged President Biden to extend tariffs by four years on imported solar components. The USITC is an independent, bipartisan entity that analyzes trade issues such as tariffs and competitiveness agency as well as advises the legislative and executive branches on matters of trade. The tariffs were first imposed in 2018 and sought to spur domestic manufacturing, however, proponents argue that a significant gap still remains. President Biden is expected to make a final decision before the four-year tariff is scheduled to expire in February and is under no obligation to follow the ITC’s recommendation.

For more information on the Council's Energy & Environment Committee, please contact Sean Malone.

HFSC Holds Crypto Hearing – Last Wednesday, the House Financial Services Committee held a hearing that focused on cryptocurrency and heard testimony from six Cryptocurrency CEOs who lead blockchain-based firms. The hearing was seen as a huge success and covered a wide range of topics including: environmental sustainability; customer protection; regulatory oversight; crypto competition from other countries; risks/benefits of stablecoins; threats to the dollar's status as global reserve currency; ransomware; security; transaction trackability; criminal use of cryptocurrencies, and more. While Congressional activity on crypto is unclear, future hearings are expected. 

GAO Releases Report on Minority Asset Managers – Last Thursday, the Government Accountability Office released a report called Key Practices Can Provide More Opportunities for Minority- and Women-Owned Asset Managers. The GAO report identified four key practices institutional investors, such as retirement plans, can use to increase opportunities for minority- and women-owned (MWO) asset managers. These practices are consistent with federal interests in increasing opportunities for MWO businesses. Implementing the key practices allows institutional investors to widen candidate pools in their asset manager searches and help ensure they find the most qualified firms meeting their needs. The practices also could eliminate some of the barriers MWO firms face and increase opportunities for these firms.

For more information on the Council's Financial Services Committee, please contact Griffin Doherty.

Hospitals and Doctors File Suit on Administration’s Surprise Medical Billing Ban – After years of negotiations, last December Congress passed legislation to ban surprise medical bills. The law, which is meant to prevent patients from getting a surprise bill from a doctor who doesn’t take their insurance when they visit a hospital that does accept it, is set to go into effect in three weeks. However, this week the American Medical Association and the American Hospital Association, along with others, filed suit to block part of the law. The plaintiffs argue that regulators in the Biden administration have misread the law’s language, to the determine of medical providers.

Senate Passes Expedited Debt Limit Process & Medicare Cuts Delay – On Thursday, by a vote of 59-35, the Senate sent President Biden a bill exempting Senate rules so that a debt ceiling increase can move forward. Additionally, attached to the debt ceiling language were provisions delaying Medicare cuts that would otherwise be triggered on January 1, including across-the-board reductions to provider reimbursements as well as separate cuts to physician and laboratory services payments. Congress failed to delay the cuts as part of a short-term funding bill passed last week, resulting in a flurry of condemnation from hospital and physician groups that argued the government wasn't protecting their funding even as the pandemic approaches its third year. If not delayed, hospitals in traditional Medicare claim they could lose an estimated $4.7 billion from the Medicare sequester and another $9.4 billion from the pay-go cuts in 2022 alone.

For more information on the Council's Heatlhcare Committee, please contact Sean Malone.

Vaccine Mandate Injunction - On Tuesday, a federal judge issued an injunction stopping President Biden’s federal contractor vaccine mandate regulations. A case filed against the Biden administration and led by Georgia had asked for an injunction stating that “the President exceeded the authorization given to him by Congress.” The injunction will block the executive order from being enforced within colleges and universities. Institutions are still able to have their own regulations, but they will not be supported by federal enforcement and regulation. Since the injunction Higher Ed Dive reports that some universities have begun roll backs of their original mandates, while others have continued with their regulations.

Congressional Federal Funding Agreement and Higher Education Funding - On Thursday, Congress reached a temporary agreement to fund the federal government through a continuing resolution and avoid a government shutdown. Congress now has until February the 18th to reach an agreement on the 12 appropriation bills that fund the government. These next two months, under the continuing resolution, will lock in the Trump Administration’s budget for higher education funding. In early July, the House Appropriations Committee approved a draft higher education spending budget. It will provide $27.2 billion for federal student aid programs, $3.34 billion for higher education serving minority populations, and $1.13 billion to increase the Pell Grant Award. The delay in reaching an agreement will give certain programs and institutions less time to use their budget, while other programs will remain unaffected. Read more at Inside Higher Ed.

Research on the Effect Federal Relief Funding has on Colleges - On Wednesday, New America, a left leaning think tank, released research on the federal relief funding for higher education. The funding helped schools remain open and students enrolled in classes during the pandemic. The research focused on how confident administrators feel about the financial climate throughout the health crisis as future funding remains unclear. With research indicating drops in registration over the past two years and the uncertainty of schools having the same financial support, there is a fear that without the federal relief funding schools will struggle to maintain admission rates. The research by New America states that the biggest concern will be community colleges as they have had the biggest drops in retention. Higher Ed Dive reports that hope among college leaders is for members of Congress to support the Build Back Better Act in order to maintain funding in higher education. 

For more information on the Council's Higher Education Committee, please contact Taylor Pichette.

Senate Confirms FCC Nominee – On Tuesday, the Senate voted 68 to 31 to confirm Federal Communications Commission (FCC) chair Jessica Rosenworcel to another term. Rosenworcel has served as acting chair since the start of President Biden’s term. The confirmation came weeks before Rosenworcel’s term was set to expire, which would have given Republicans a majority on the commission, CNBC reports. With Rosenworcel getting reconfirmation, the commission remains deadlocked. President Biden has nominated Gigi Sohn to the last seat on the five-person panel, but the nomination has faced opposition from Republican lawmakers, the Washington Post reports.

Hearing on Online Targeting of Teens - On Wednesday, the Senate Commerce subcommittee on consumer protection held a hearing on Instagram and its impact on teenagers, The Wall Street Journal reports. Instagram chief Adam Mosseri testified at the hearing, which was intended to address what Instagram knows about its impacts on young users, its commitments to reform, and potential legislative solutions. The effect of Instagram use on the mental health of adolescents has been the focus of recent reporting and has become an important issue for lawmakers. Reports have also used leaked internal research suggesting the platform worsened body image issues for teen girl users. Mosseri called for the creation of an industry body to create standards. That proposal drew negative reactions from lawmakers that stressed the need for independent oversight. The day before the hearing, Instagram announced it is rolling out a new set of safety features aimed at its youngest users and their parents, including tools to help users manage how much time they spend on the app, place limits on both unwanted interactions with adults and exposure to sensitive content, and offer optional parental oversight of children's accounts, NPR reports.

Senators Introduce Social Media Data Sharing Legislation – On Thursday, Senator Chris Coons (D-DE) announced a bipartisan bill that would require social media companies share their data with researchers. If companies failed to comply, the proposal would leave open the possibility of stripping tech companies of immunity they have under a controversial provision. Senator Coons (D-DE) was joined by Senators Amy Klobuchar (D-MN) and Rob Portman (R-OH) to introduce the Platform Accountability and Transparency Act, would allow independent researchers to submit proposals to the National Science Foundation. If the requests are approved, social media companies would be required to provide the necessary data subject to certain privacy protections.

For more information on the Council's Technology Committee, please contact Emily Heisig or Taylor Pichette.

Raimondo Discusses Trade and Tech with EU Counterpart – On Tuesday, Secretary of Commerce Gina Raimondo met with European Union Executive Vice President Margrethe Vestager to discuss the outcomes of the recent U.S. – E.U. Trade and Technology Council (TTC) meeting. The first TTC meeting, hosted by Secretary of State Antony Blinken, Secretary Raimondo and U.S. Trade Representative (USTR) Katherine Tai, took place in Pittsburgh, Pennsylvania in September. During this initial meeting, U.S. officials and their European counterparts laid out plans to more closely coordinate responses to emerging technologies and trade threats, such as the unfair trade practices of China. At Tuesday’s meeting, Secretary Raimondo and Vice President Vestager focused on next steps for the TTC working groups. These steps would include measures to “deepen their cooperation with a view to developing concrete and commercially meaningful outcomes that strengthen transatlantic tech collaboration.” Additionally, the two officials explored further opportunities for the U.S. and the E.U. to enhance the security of networks in their respective markets. Such measures would include existing market players while also developing new mechanisms like open radio access networks (ORAN). Semiconductors were also a key discussion theme, with both leaders underscoring the importance of expanding collaboration and advancing mutually supportive research and development of the sector.

U.K. and U.S. Officials Meet to Discuss Steel and Aluminum; Trade Relationship – On Tuesday and Wednesday, the United Kingdom’s Secretary of State for International Trade, Anne-Marie Trevelyan, met with U.S. Trade Representative (USTR) Katherine Tai and House Ways and Means Committee Chairman Richie Neal (D-MA) to discuss the trade relationship between the two nations. With Ambassador Tai, Secretary Trevelyan discussed the development of worker-centric trade policies, World Trade Organization (WTO) reform, negotiations surrounding fisheries subsidies, intellectual property issues, and the global pandemic. Both trade officials additionally exchanged views on the steel and aluminum sectors. Ambassador Tai emphasized our nation’s commitment to address non-market excess capacity of steel and aluminum and ensure the sectors’ long-term viability while also addressing the negative impacts on climate change that steel and aluminum production cause. Ultimately, Ambassador Tai and Secretary Trevelyan “agreed to stay in close communication on these, and other important issues, including global supply chains and addressing climate change, in the days ahead.” During Wednesday’s meeting, Chairman Neal emphasized his support of the Good Friday Agreement which keeps borders open between Northern Ireland and the Republic of Ireland and, therefore, is a key component to not only preserving peace but also trade between the two countries. Similar to her dialogue with Ambassador Tai, the two officials discussed “the need to pursue policies that empower workers and combat the climate crisis, and the opportunity for [the] nations to work together to address issues related to unfair trade practices of non-market economies like China, WTO reform, and global supply chain challenges.”

Commerce Department Releases October Trade Data – On Tuesday, the U.S. Commerce Department's Bureau of Economic Analysis (BEA) and the U.S. Census Bureau released monthly trade data showing that America’s goods and services trade deficit came in at $67.1 billion in October representing a decrease of $14.3 billion from September’s revised figure of $81.4 billion. For October, the level of exports of goods and services totaled $223.6 billion while imports totaled $290.7 billion. The level of exports was up $16.8 billion compared to September’s figures, and the level of imports was up $2.5 billion in the month-to-month comparison. The three-month average trade deficit (August through October) for goods and services decreased $1.1 billion to $73.9 billion. The U.S. showed a $3.6 billion goods deficit with Japan in October while the goods deficit with Canada was $3.3 billion. With Germany, the goods deficit was $5.7 billion; with Taiwan, the goods deficit was $4.3 billion; with France, the goods deficit was $1.4 billion; with India, the goods deficit was $3.1 billion; and with South Korea, the goods deficit was $2.7 billion. The goods deficit with the European Union came in at $16.6 billion in October: down $2.1 billion from September. With China, the goods deficit decreased $3.2 billion to $28.3 billion for the month and the goods deficit with Mexico rose $800 million and registered at $9.7 billion. In the plus column, the U.S. showed a goods surplus with South and Central America of $4.5 billion for the month. With Hong Kong, our surplus was $2.6 billion, $500 million with Singapore, $1.3 billion with Brazil, and $1 billion with the United Kingdom.

For the third quarter, the U.S. showed a $15.7 billion goods and services trade deficit with Japan while the deficit with Canada was $7.5 billion. With Germany, the quarterly goods and services deficit was $18.4 billion; with Taiwan, the deficit was $10.8 billion; with France, the deficit was $6.2 billion; with India, the deficit was $10.9 billion; and with Mexico, the deficit was $25.6 billion. The goods and services deficit with the European Union came in at $43.8 billion for the third quarter: up $7.3 billion from the previous quarter. With China, the deficit decreased $1.9 billion to $80.2 billion for the quarter and the goods and services deficit with South Korea rose $3 billion and registered at $7.6 billion. In the plus column, the U.S. showed a third quarter goods and services surplus with South and Central America of $21.4 billion. With Hong Kong, our surplus was $7 billion, $6.6 billion with Singapore, $7.2 billion with Brazil, and $3.3 billion with the United Kingdom.

For more information on the Council's Trade Working Group, please contact Peter Phipps.

New England Cities Among Top Ten in Traffic Congestion – On Tuesday, the transportation analytics company INRIX released data showing that when it comes to traffic congestion, several New England cities were among the nation’s worst. In their study, INRIX ranked the top areas for congestion and mobility trends as we emerge from the Covid-19 pandemic and found that drivers in the Boston area lost 78 hours in 2021 due to traffic congestion, ranking fourth behind Chicago, New York, and Philadelphia. Among the most congested traffic corridors in the U.S. are two in Connecticut along I-95 North. The corridor in Bridgeport between Unquowa Road and NY-8 ranked fourth congested, while the corridor in Stamford between Riverside Avenue and Hillspoint Road ranked sixth congested.

Airline Executive Responds to Congress – On Tuesday, Airlines for America (A4A) President and CEO Nicholas Calio responded to the top two members of the House Transportation and Infrastructure Committee leaders who, a week earlier, had requested information about how “airlines managed funds provided to them under the Payroll Support Program” or PSP. In his seven-page response to Committee Chairman Peter DeFazio (D-OR) and the Committee’s Ranking Member, Sam Graves (R-MO), Mr. Calio pointed out that the airline industry saw a “96 percent” drop in service at the height of the pandemic and that “more than half of the U.S. passenger fleet was put in storage.” He further stated that the overall recovery will be longer than what followed the attacks of 9/11, and that for the airlines ability to manage through the pandemic, “PSP was an overwhelming success…that kept employees on the job with a paycheck, healthcare and retirement contributions.” Mr. Calio added that had there been no PSP, “U.S. airlines would have been forced to implement massive layoffs, dramatically reduce service and cancel fleet orders.” Mr. Calio went on to say that “despite some media reports, the operational disruptions which made headlines recently resulted from a variety of differing issues, none of which included non-compliance with PSP requirements,” citing weather, TSA lapses, labor supply shortages, employee absenteeism, and fuel shortages among the reasons.

DOT Seeks Public’s Help Determining Direction of Department – On Monday, the U.S. Department of Transportation (DoT) issued a release asking for the assistance of the American people in helping to decide how the DoT should function in the years ahead. In their request for comments (RFC), the DoT wants input on how best to “shape the Department’s goals and priorities as we work to transform the nation’s transportation system making it safer, more accessible, more reliable, and multi-modal.” In the process, the DoT hopes to “increase economic strength, improve climate and equity outcomes, and build global competitiveness for the American people.” The DoT looks to the recently enacted bipartisan infrastructure law as an opportunity to update its “strategic framework” that will allow stakeholders of all stripes to have a say as to how the Administration should proceed. Those wishing to comment have until December 17^th to weigh-in with their suggestions.

House Subcommittee Discusses Intercity Rail; Impact on Northeast– On Thursday, the House Transportation and Infrastructure Committee’s Subcommittee on Railroads, Pipelines, and Hazardous Materials held a hearing to discuss ways in which the recently enacted bipartisan infrastructure legislation could expand opportunities for intercity passenger rail. In both of their opening statements, Committee Chairman Peter DeFazio (D-OR) and Subcommittee Chair Donald Payne Jr. (D-NJ) stressed their long-standing support for Amtrak and the benefits they expect to see from the bipartisan Infrastructure Investment and Jobs Act (IIJA) for the nation in general, but for the Northeast Corridor specifically. One of the hearing’s witnesses, Kevin Corbett, spoke as both President and CEO of New Jersey Transit and as the Co-Chair of the Northeast Corridor Commission. Mr. Corbett touted the possibilities of expanding rail throughout the northeast according to their “innovative new plan – CONNECT NEC 2035” (C35) that will “transform and modernize the busiest and most vital stretch of infrastructure in our nation.” He added, “and now, through the bipartisan Infrastructure bill, we will do just that.” He stated that “when fully implemented, the C35 program calls for new express service patterns to speed up select commuter rail trips in Massachusetts, Rhode Island, Connecticut” and several other states along the northeast corridor.

For more information on the Council's Transportation & Infrastructure Committee, please contact Peter Phipps.