Quarterly Outlook, April 2022 - BGR Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Quarterly Outlook, April 2022 BGR Group
Click on the subjects
below to view:
Overview
Overview
The Russian invasion of Ukraine has overtaken virtually every
Bipartisan
Take issue in Washington - from foreign policy to federal spending
to the economy. In the past month, President Biden has devoted
International
significant amounts of time and resources to rallying support for
the Ukrainians and imposing severe sanctions on Russians and
the Russian government.
Commerce
The conflict has resulted in an increase in defense
spending and another potential increase in the coming KEY DATES
year. This comes after nearly two years of large-scale
Financial domestic spending to deal with the pandemic. APRIL 18
Services • Face mask mandate on public
The situation in Ukraine has exacerbated the
economic challenges of inflation and supply chain transportation expires
disruptions that resulted from the pandemic. Look for
Health executive actions focused on easing financial burdens JUNE 30
like increased fuel prices. • Child Nutrition Waivers expire
Meanwhile, in the states, the Biden administration • 1 percent reduction in the
Appropriations & has begun to implement its signature achievement, the Medicare Sequester expires
Budget Infrastructure Investments and Jobs Act. The admin-
istration will also be touting the confirmation of Judge AUGUST 31
Ketanji Brown Jackson to a seat on the Supreme Court. • Student loan deferral and 0
State Her historic confirmation, as the first Black woman to percent interest rate expire
Advocacy sit on the court, is expected soon. Many state legisla-
tures are wrapping up active legislative sessions cover- SEPTEMBER 30
ing a wide range of topics.
Public • Government funding expires
Relations Even as the Ukraine conflict continues to dominate • National Flood Insurance
headlines, Congress is poised to act on the continu- Program Authorization expires
ing response to COVID-19, a global competitiveness
measure, and spending bills for the coming fiscal year. • Temporary Assistance for
The next three to four months promise to be busy with Needy Families (TANF) and
both legislation and regulatory actions. the Child Care Entitlement to
States expire
The President and Congressional leaders will
need to balance a wide range of issues while • Food and Drug Administration
trying to increase their political standing with User Fee Programs expire
voters ahead of the midterm elections later this • The Agriculture Improvements
year. Act of 2018, known as the
Farm Bill, expires
• FAA Reauthorization Act of
2018 expires
• The PEPFAR Extension Act of
2018 expires
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 2Click on the subjects
below to view:
Overview
2022 Congressional Calendar
Bipartisan January February March
Take
S M T W T F S S M T W T F S S M T W T F S
1 1 2 3 4 5 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12 6 7 8 9 10 11 12
International 9 10 11 12 13 14 15 13 14 15 16 17 18 19 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 27 28 29 30 31
30 31
Commerce
April May June
S M T W T F S S M T W T F S S M T W T F S
1 2 1 2 3 4 5 6 7 1 2 3 4
Financial 9 10 11 12 13
3 4 5 6 7 8 9 8 14 5 6 7 8 9 10 11
Services 10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18
17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25
24 25 26 27 28 29 30 29 30 31 26 27 28 29 30
Health
July August September
S M T W T F S S M T W T F S S M T W T F S
Appropriations &
1 2 1 2 3 4 5 6 1 2 3
Budget
3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10
10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17
17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
State 25 26 27 28 29 27 28 29 30
24 30 28 29 30 31 25 26
Advocacy 31
October November December
Public
S M T W T F S S M T W T F S S M T W T F S
Relations
1 1 2 3 4 5 1 2 3
2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10
9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17
16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24
23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31
30 31
Current as of December 14, 2021
IMPORTANT PHONE NUMBERS
KEY
White House Switchboard (202) 456-1414
House in Session Only
U.S. Capitol Switchboard (202) 224-3121
Senate in Session Only Senate Republican Cloakroom (202) 224-6191
House & Senate in Session Senate Democratic Cloakroom (202) 224-4691 The Homer Building
601 13th Street, NW
Federal Holiday House Republican Cloakroom (202) 225-7350 Washington, DC 20005
House Democratic Cloakroom (202) 225-7330 202.333.4936
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 3Click on the subjects
below to view:
Political Snapshot
Overview
Public Opinion Update (as of April 4, 2022):
Direction of Country Polling Average
Bipartisan
Take
27.6%
Right Direction
65%
Wrong Track
Source: RealClear Politics
International
President Biden’s Average Approval Rating
Commerce
40.8% approve
54%
disapprove
Source: RealClear Politics
Financial
Services 2022 Generic Congressional Vote
Health 45.9%
favor Republicans
42.3%
favor Democrats
Source: RealClear Politics
Appropriations &
Budget
President’s Party Usually Loses Seats in Midterms
Gallup presidential approval the week before the midterm Democrat Republican
State
Advocacy JOHNSON
1966
NIXON
1970
FORD
1974
CARTER
1978
REAGAN
1982 1986
BUSH
1990 1994
CLINTON
1998
G.W. BUSH
2002 2006
OBAMA
2010 2014
TRUMP
2018
66%
63% 63%
58% 58%
Public 54%
Relations Approval
49%
50%
44% 46% 45% 44%
42% 41%
38%
President’s party gain/loss of seats
+5 +8
HOUSE
-5 -8
-12 -15 -13
-26
-30
-40
-47 -48 -52
-63
+2 +2 +2
+1
SENATE
-1
-3
-4
-5 -6 -6
-8 -8
-9
SOURCE: National Journal
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 4Click on the subjects
below to view:
Economic Snapshot
Overview
Jobs Added: 431,000 added in March
Bipartisan Source: Bureau of Labor Statistics
Take
Unemployment Rate: 3.6% in March
Source: Bureau of Labor Statistics
International
Labor Force Participation Rate: 62.4% in March
Source: Bureau of Labor Statistics
Commerce
Real GDP: Projected to be 1.7% quarter over quarter for Q1 2022; Increased
6.9% Q4 2021
Financial Source: Bureau of Economic Analysis
Services
Consumer Inflation Expectation: 7.9% in February
Source: Bureau of Labor Statistics
Health
Fed Interest Rate Increase: As of March 2022, the Fed increased the rates 25
Appropriations & basis points, up to 0.50%. The Fed is expected to raise rates again during the May FOMC
Budget meeting.
Source: Federal Reserve
State Average Cost of Gas: $4.24 for regular; $4.91 for premium
Advocacy Source: gasprices.AAA.com
Public
Relations
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 5Click on the subjects
below to view:
Overview
Bipartisan
Take
Bipartisan Take
International
RUSSIAN INVASION OF UKRAINE CREATING POLICY AND
POLITICAL CHALLENGES FOR WASHINGTON
One month into the real military threats from
Commerce
Ukraine-Russia conflict, Russia, China and Iran.
Washington policymakers A rethink of bureaucratic
are focused on two impor- structures, with a new
Financial tant tasks: helping Ukraine emphasis on flexibility and
Services and punishing Russia. Aid for efficiency, is needed. This
Ukraine includes both mili- new Cold War II is just
tary assistance and humani- getting started and many
tarian aid. The needs of changes are coming.
Health Lester Munson Fred Turner
Ukraine’s immediate neigh-
BGR PRINCIPAL BGR SR.V.P. One can reasonably
bors, who have taken in the
expect further actions
vast majority of the nearly 4 million Ukrainian
from Congress before the end of this year and in
Appropriations & refugees, will become an acute challenge in the
the coming years. Most immediately, Congress
Budget immediate future. The multilateral economic
can suspend “Most Favored Nation” trade status
sanctions regime on Putin and Russia will
for U.S. imports from Russia. President Biden
continue to expand, and loopholes that have
has already announced support for such legis-
State given Putin room to operate will be closed. The
lation as the Administration cannot do this by
Advocacy West has made clear it is pursuing a sanctions-
executive action. Moreover, several Members
first strategy. Unfortunately, the conflict does not
of Congress have discussed legislation to expel
show any signs of letting up. It will dominate for
Russia from the World Trade Organization. The
Public at least the next six months to a year.
repeal of MFN for Russia has already passed the
Relations
In the long run, the impact of the Russian House but has been slowed down in the Senate.
invasion will lead to profound changes in U.S. It’s likely to move sometime this quarter, however.
national security policies and resources. While
On top of the already full agenda for House
the President requested over $800 billion for
and Senate leadership this year, the war in
national security for 2023, Congress will likely go
Ukraine could require Congress to cancel some
even farther and increase that number. A conse-
of its scheduled work periods outside of Washing-
quent increase in resources for the State Depart-
ton and/or extend the legislative year beyond the
ment, the Intelligence Community and foreign
November elections. In the meantime, Congress
assistance programs won’t be far behind.
will work to confirm a new justice to the Supreme
However, these potential budget increases Court, pass comprehensive legislation to counter
won’t come without strings attached. Look for China’s industrial rise and the threats posed to
House and Senate committees to do a deep dive the U.S. economy, fully fund the government for
on priorities and transparency in the coming Fiscal Year 2023, and pass legislation laying out
months and beyond. New dollars will come with priorities for national defense. It is a full plate
demands for accountability and results. which presents both potential and pitfalls for both
parties and the administration.
The old methods of dealing with the post-
9/11 world will need to be updated for the new
Contact Us reality: the United States and its allies face very
Quarterly Report, APRIL 2022 BGRDC.com 6Click on the subjects
below to view:
Overview
Bipartisan
Take
International and Trade
International
THE U.S. IMPOSES ECONOMIC COSTS ON RUSSIA
In response to the Russian invasion of Ukraine, the United
Commerce States has sought to act in lockstep with the European Union,
the United Kingdom, and as many other partners it can rally to
Financial impose unprecedented economic costs on Russia and isolate the
Services country from the international community through sanctions,
visa restrictions, and export controls. Additionally, the U.S.,
Health in coordination with EU allies, created a task force within the
Department of Justice to prevent Russian elites from evading
Appropriations &
sanctions, and to target assets associated with corruption owned
Budget by Russian elites.
The U.S. has imposed export controls on ment. This includes restrictions on semiconduc-
State Russia, including Russia-wide denial of exports tors, telecommunications, encryption security,
Advocacy of sensitive technology, primarily targeting lasers, sensors, navigation, avionics, maritime
the Russian defense, aviation, and maritime technologies, and technologies used for oil and
sectors. In addition to sweeping restrictions on gas development – which cuts off an estimate of
Public the Russian defense sector, the U.S. government over 50% of Russian high tech imports. The U.S.
Relations imposed Russia-wide restrictions on sensitive has also banned Russian energy imports, and
U.S. technologies produced in foreign countries prohibited new investments in Russian energy
using U.S.-origin software, technology, or equip- production.
Continued on next page
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 7Click on the subjects
below to view:
Overview
“The U.S. remains open to imposing additional
export controls and sanctions as the conflict
Bipartisan progresses and is currently not communicating
Take
what would precipitate a reduction in sanctions
– likely to provide Ukraine greater leverage as it
International
negotiates with Russia.”
Walker Roberts
BGR PRINCIPAL, CO-HEAD OF INTERNATIONAL AND TRADE PRACTICE
Commerce
Furthermore, the U.S. is working to strip imposed by the United States and its allies, as
Russia of its most favored nation / permanent the unprecedented scale of the response will
Financial
normal trade relations (PNTR) status, which have numerous spillover effects, and could be
Services
would mean the U.S. is no longer obligated to exacerbated by secondary sanctions on the
grant Russia trade advantages, like reduced Russian financial sector.
tariffs, on imported goods. This move could
The U.S. remains open to imposing addi-
Health precipitate removing Russia from the World
tional export controls and sanctions as the
Trade Organization, as all members of the
conflict progresses and is currently not commu-
WTO are obligated to grant most favored nation
nicating what would precipitate a reduction in
Appropriations & status to other members. While the U.S. has not
sanctions – likely to provide Ukraine greater
Budget significantly targeted the commodities trade, it
leverage as it negotiates with Russia. There is
is likely to be impacted by significant sanctions
still significant room for further U.S. action,
targeting some Russian banks. However, the
including greater export controls, further sanc-
State imminent revoking of PNTR with Russia could
tions on the Russian financial sector, secondary
Advocacy subject key commodities to heightened tariffs,
sanctions in certain sectors, or sanctions on key
despite lack of sanctions activity.
commodities. The administration has existing
Thus far, sanctions have hit the Russian authorities to impose these restrictions, and to
Public economy hard, and many Russian families and add additional Russian elites to the sanctions
Relations businesses are leaving the country to preserve list as well, so we are unlikely to see significant
their savings and freedoms. The pinch of these Congressional legislative action – instead their
sanctions will only increase, as wind-down peri- action will be more rhetorical and focused on
ods are finished and their full effect is imposed. pressuring the Biden administration to take the
Many companies have already made their own steps available to it. The Biden administration
decision to pull out of the Russian market, but will continue to seek collaboration with Europe,
companies will need to stay vigilant to remain rather than acting unilaterally, though it will
compliant with sanctions and restrictions also work to not be undercut by Congress.
INTERNATIONAL AND TRADE PRACTICE CO-HEADS
Walker Roberts
Maya Seiden
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 8Click on the subjects
below to view:
Overview
Bipartisan
Commerce
Take
International
COMPETITIVENESS BILL COMING TOGETHER
With the U.S. response to Russia’s invasion of Ukraine taking
Commerce
center stage in Washington, progress temporarily slowed on other
bipartisan priorities. Congress has finally moved U.S. competitiveness
Financial legislation a few steps closer to conference this week. Interestingly,
Services
several lawmakers felt that the situation in Ukraine is creating
stronger momentum to finalize the package.
Health
The immediate impacts of recent interna-
tional sanctions on Russia have many in Wash-
ington even more concerned about the future
“While the Senate
Appropriations &
Budget
implications of America’s reliance on semi- and House versions
conductors and other critical technology from
China. may appear to be
State The Senate moved last week to amend the as far apart as
Advocacy House-passed America Creating Opportuni- ever on some key
ties for Manufacturing, Pre-Eminence in Tech-
nology, and Economic Strength (COMPETES) policy issues, there
Public Act by replacing its language with the text of are some recent
Relations the United States Innovation and Competition
Act (USICA), which passed the Senate with indications that a common overall
bipartisan support last summer. Congress is vision is starting to coalesce.”
next expected to convene a formal conference
committee to reconcile differences between the Robin Colwell
two bills. BGR SENIOR VICE PRESIDENT,
Continued on next page COMMERCE PRACTICE
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 9Click on the subjects
below to view:
Overview While the Senate and House versions may to include cybersecurity measures shared by
appear to be as far apart as ever on some key both bills, as well as others contained only in
policy issues, there are some recent indica- USICA or COMPETES. Additionally, a bipar-
tions that a common overall vision is starting tisan group of House members has recently
Bipartisan to coalesce. For example, a top priority in both introduced a version of the Facilitating Amer-
Take USICA and COMPETES is expanding research ican-Built Semiconductors (FABS) Act, which
programs at the Department of Energy and resembles language that was considered in the
National Science Foundation. COMPETES Senate last June. This measure would create a 25
International builds off existing programs, while USICA percent investment tax credit for the semicon-
creates new programs for certain targeted ductor sector.
emerging technologies. A few weeks ago, the
While there are plenty of issues still to be
Senate Energy and Natural Resources Commit-
worked out, the trend on USICA/COMPETES
Commerce tee introduced a bipartisan bill, the Depart-
is very positive and points to a potential major
ment of Energy Science for the Future Act of
bipartisan accomplishment to come in this elec-
2022, that closely tracks COMPETES Act DOE
tion year.
provisions. There have also been bicameral calls
Financial
Services
COMMERCE PRACTICE CO-HEADS
Health Justin Rzepka
Jonathan Mantz
Appropriations &
Budget
State
Advocacy
Public
Relations
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 10Click on the subjects
below to view:
Overview
Bipartisan
Financial Services
Take
International HOW AND WHEN WILL TAX EXTENDERS MOVE?
President Biden recently signed the FY 2022 omnibus
Commerce
appropriations bill, which funded several major policy priorities
for the administration, including the bipartisan Infrastructure
Financial Investment and Jobs Act (IIJA). One notable omission, however,
Services
was a tax extenders package. As a result, roughly 40 different tax
provisions were left to expire in 2021.
Health
Some of these provisions were new tax title was left out of the omnibus. The omission
programs implemented under the various of tax extenders from the omnibus package begs
COVID-19 relief packages, such as the Child the question of when the expired revenue provi-
Appropriations & Tax Credit and the Employee Retention Tax sions may finally leave the station.
Budget Credit, while others included credits passed
Our team sees several major vehicles that
under the Tax Cuts and Jobs Act (TCJA), includ-
could carry an extenders package sometime this
ing section 163 (j), which limits the ability of
State year: the China competitiveness bill, a revised
certain businesses to deduct interest expenses,
Advocacy Build Back Better reconciliation bill, a short-
and the changes to research and development
term continuing resolution, a year-end omnibus
amortization.
appropriations bill, and the National Defense
Public Typically, tax extenders are attached at Authorization Act (NDAA). Each of these
Relations the end of a Congressional session to a larger larger packages has its own real and potential
moving vehicle, such as an omnibus spend- challenges, which could further complicate the
ing bill. Due to the uncertainty of the FY 2022 inclusion of a tax extenders section.
spending package, among other reasons, the tax Continued on next page
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 11Click on the subjects
below to view:
Overview
“The omission of tax extenders from the omnibus
Bipartisan
Take
package begs the question of when the expired
revenue provisions may finally leave the station.”
Joel Bailey
International BGR VICE PRESIDENT
Commerce
The China competitiveness bill will be worked midterms in a lame duck session. One of these is
out in a conference committee over the next the NDAA, which historically does not include
Financial several months and is a major priority for Senate controversial, non-defense riders. Due to the
Services Majority Leader Chuck Schumer (D-NY). If potential concern that the tax extenders might
Democrats can find consensus around a revised delay passage of the NDAA, this is the least likely
reconciliation bill, with a possible focus on vehicle. The most likely option is some form
climate, prescription drugs and deficit reduc- of a budget. Given that House Ways & Means
Health
ing revenue raisers, it may be challenging to add Committee Chairman Richard Neal (D-MA) has
dozens of tax extenders that will cost rather than publicly stated he will work to pass an extenders
raise money. Senator Joe Manchin (D-WV) has package, and suggested working with Committee
Appropriations & stated repeatedly his concerns over Build Back Ranking Member Kevin Brady (R-TX) to pass an
Budget Better provisions that would increase the federal updated SECURE package, we could very well
budget deficit and the national debt. see this being coupled with an extenders package
and a larger end of year spending bill.
State While the China competitiveness bill will
Advocacy likely be considered before the midterm elec- The lack of clarity is not atypical even in an
tions, and a reconciliation bill cannot be election year. However, the extenders process is
considered after September 30, there are a few always one to watch closely.
vehicles that are likely to be addressed after the
Public
Relations
FINANCIAL SERVICES PRACTICE CO-HEADS
Sean Duffy
Andy Lewin
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 12Click on the subjects
below to view:
Overview
Bipartisan
Take
Health and Life Sciences
International
COVID-19 AND PANDEMIC PREPAREDNESS
As we enter a third year of a world with COVID-19, dealing with
Commerce the pandemic at hand and incorporating lessons learned into our
national response capacities are priorities for both Congress and
Financial the Biden administration. However, turning that support into
Services laws and funding has proven to be an uphill battle so far in 2022.
On March 15, the Senate Health, Education,
Health Labor, and Pensions Committee approved the
bipartisan Prepare for and Respond to Existing
Viruses, Emerging New Threats, and Pandem-
Appropriations & ics Act (PREVENT Pandemics Act) (S. 3799)
Budget by a vote of 20-2. Committee leadership touts
the legislation as strengthening public health
infrastructure and medical product supply
State chains,, improving the management of the Stra-
Advocacy tegic National Stockpile, improving infectious
disease and threat monitoring, and reducing
disparities for at-risk communities. While the
Public final vote was overwhelmingly positive, the bill
Relations took nearly a year to develop and does not have
a companion House bill or process.
This markup happened concurrently with
warnings from the Biden administration that
several efforts to combat the current COVID
emergency have run out of money, including
funding for the purchase and administration
of vaccines, antibody treatments, oral thera-
peutics, and diagnostic tests. The White House
originally requested $22 billion in supplemental
funds. Congressional leadership had planned to
include around $15 billion in COVID funding
in the Omnibus spending bill. However, it was
delayed after several House Democrats opposed
taking unused state support dollars from the
American Rescue Plan to offset the new funding
Continued on next page
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 13Click on the subjects
below to view:
Overview
“While the nation remains focused on getting
Bipartisan
Take
‘back to normal' – we expect continued
congressional battles over what to do now to keep
Americans protected from COVID and how we
International
will address pandemic responses in the future.”
Remy Brim, Ph.D.
BGR PRINCIPAL AND PRACTICE CO-HEAD
Commerce
Financial needs. A smaller package, without funding for end the PHE will have a very real impact on
Services international vaccinations, stalled in the Senate Medicaid enrollment, federal Medicaid fund-
this week. House and Senate Republicans have ing, and additional payments for hospitals for
expressed a reluctance to provide additional inpatient COVID patients. Keep in mind the
funding without knowing where the previous declarations that keep COVID products with
Health funding went and requested a full accounting Emergency Use Authorizations (EUAs) on the
from the Administration. Administration offi- market and protect providers who administer
cials note this information has been provided these treatments and vaccines are separate from
Appropriations & but it has not been made public. Negotiations the PHE.
Budget are still ongoing, and could result in a smaller or
While the nation remains focused on getting
more targeted package in the face of a potential
“back to normal” – we expect continued
summer wave.
congressional battles over what to do now to
State
HHS is expected to renew the Public Health keep Americans protected from COVID and
Advocacy
Emergency (PHE) when it expires on April 15. how we will address pandemic responses in the
However, it is unclear whether it will be renewed future.
again in July. The Administration’s decision to HEALTH AND LIFE SCIENCES
Public
Relations
PRACTICE CO-HEADS
Brent Del Monte
Remy Brim, Ph.D.
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 14Click on the subjects
below to view:
Overview
Bipartisan
Take
Appropriations & Budget
International BUDGET AND APPROPRIATIONS PROCESS LAUNCHES LATE
President Biden sent his budget request to Congress on March 28,
Commerce laying out his funding ambitions for Fiscal Year 2023 (FY 2023)
that officially begins on October 1, 2022. The President’s $5.8
Financial trillion budget request includes a billionaire’s tax and increased
Services
defense spending aimed at supporting Ukraine as it continues its
fight against Russian aggression. The submission by the White
Health House typically kicks off the appropriations process for the coming
fiscal year. The administration and Congress are already behind.
Appropriations & The FY 2022 budget process concluded five
Budget and a half months late when the President
signed a $1.5 trillion omnibus bill in mid-
“Given the
March. It took until early February for appro- condensed legislative
State priators to formally agree on a topline sum and
Advocacy how the money would be split between defense
calendar, Democrats
and nondefense spending. Congressional lead- may choose to focus
ers and top appropriators have already started
Public discussing their plans for moving quickly to
on spending bills
Relations pass the 12 annual spending bills – known as instead of a broader
the 302(b) allocations – for FY 2023. Sen. Susan
Collins (R-ME), who is expected to become the budget package.”
GOP’s top Senate appropriator next year, said Bill Viney
she has already talked to House Majority Leader BGR PRINCIPAL, APPROPRIATIONS PRACTICE
Steny Hoyer (D-MD) about trying to return to
regular order for moving the funding measures.
It’s an open question as to whether or not the Back Better legislation as envisioned late last
House and Senate will advance a budget reso- year, one reconciliation vehicle is still available
lution for the coming fiscal year. They will at for use. That vehicle expires at the end of the
least need to “deem” a top-line spending number current fiscal year, September 30, 2022. Given
in order to write appropriations bills. When the condensed legislative calendar, Democrats
approved by both chambers, a budget resolution may choose to focus on spending bills instead
also sets in motion a reconciliation process that of a broader budget package.
can be used to move spending-related legislation One reason why? In 2021, the appropriations
on a majority vote in the Senate. Because Senate process saw a significant change – the restoration
Democrats have been unable to move the Build Continued on next page
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 15Click on the subjects
below to view:
Overview of earmarks, now known as Community Project Timeline for FY 2023 Appropriations Process
Funding requests. After an 11-year hiatus, the (subject to change):
$1.5 trillion FY 2022 omnibus spending pack-
age included more than 2,700 member-directed March
Bipartisan projects. For FY 2022, individual members of
Take • The President submits the FY 2023
Congress solicited requests for funding from budget.
constituents, which were then submitted to the
House and Senate Appropriations Committees
April – May
International for review and inclusion in the final funding
bill. In the House, the Committee on Appropria- • Appropriators begin agency budget
tions is accepting submissions from members hearings.
between April 4 - 30. Information regarding • The House Appropriations
Commerce how the member request process will work is Committee deadline for requests is
included in Committee guidance available here. April 30. Individual member offices
All transparency and accountability require- have their own deadlines in April.
ments the Committee announced last year for
Financial • Members of Congress prioritize
Community Project Funding requests remain in
Services initiatives and make formal requests
place, including limiting spending on Commu-
nity Project Funding to no more than 1 percent to the appropriations committee.
of discretionary spending. One of the biggest • House and Senate create their
Health changes is that members can now request up to budget resolutions and set the 302b
15 projects instead of the 10 previously allowed. allocations, which set the spending
The Senate Appropriations Committee has not levels for the 12 appropriations
yet issued guidance for FY 2023 earmarks, subcommittees.
Appropriations &
referred to as Congressionally Directed Spend-
Budget
ing in the Senate. Last year, Senate requests were June
due between mid-June and early July. This year,
• Appropriations committees begin
it appears that most Senate requests will be due
State the markup process.
earlier, and in most cases, before Memorial Day.
Advocacy
Member-directed spending projects may be July
the only thing that can get the budget and appro- • Appropriations bills are brought to
Public priations process back on schedule ahead of a
the floor of both houses.
Relations contentious midterm election season.
October
• October 1 is the beginning of the
next fiscal year. Recently, Congress
rarely meets this deadline. Many
are predicting this year’s process
will carry over into a lame duck
session.
APPROPRIATIONS PRACTICE HEAD
Bill Viney
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 16Click on the subjects
below to view:
Overview
Bipartisan
Take
State Advocacy
International STATES TACKLE WIDE RANGE OF TOPICS IN
LEGISLATIVE SESSIONS
Commerce It has been a busy year for state and local governments. Ongoing
coronavirus pandemic response aside, the majority of states have
been working through state legislative sessions, many of which
Financial
Services are nearing adjournment. These sessions have been dominated by
budget negotiations, redistricting, and a host of complex issues
Health
including, most recently, sanctions against Russia. The coming
changes in state legislative leadership are also grabbing attention,
with nearly a third of the top legislative posts in the country’s 99
Appropriations &
Budget state legislative chambers turning over.
All states enacting a new budget for FY 2023
State have now released a budget proposal. These “Many state
Advocacy budgets show states are finding themselves
in the unexpected position of having record legislatures are
budget surpluses. This is driven in part from
historic federal stimulus dollars as well as better
addressing social
Public
Relations than expected tax revenues. In fact, more than and cultural
half the states now expect to exceed revenue
projections this fiscal year, projections that
issues…as a result,
were already far higher than in previous years, corporations are
according to a survey from the National Confer-
ence of State Legislatures. A list of proposed and/ facing increasing pressure from
or enacted state budgets can be found here. It is employees to weigh in against
worth noting that most state and local govern-
ments are set to receive the second tranche of legislative actions that are outside
American Rescue Plan Act (ARPA) - Coronavi- traditional business priorities.”
rus State and Local Fiscal Recovery Funds early
this summer. Loren Monroe
PRACTICE HEAD AND PRINCIPAL
Several states have passed – or are considering
– record budgets, allocating extra dollars across
a range of areas including broadband, workforce opment. This has created new opportunities
training, cybersecurity, healthcare (including for private sector engagement. States are also
addressing staff shortages and healthcare access surging resources to support behavioral and
and delivery), education, and economic devel- Continued on next page
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 17Click on the subjects
below to view:
Overview
mental health programs - see Maine and Ohio, active litigation, including New York (see What
for example - accelerated by concerns emerging Redistricting Looks Like in Every State). The
from the coronavirus pandemic. outcomes could impact the national political
Bipartisan
picture.
Take State lawmakers in at least a dozen states
have made, or are currently considering, both Finally, many state legislatures are address-
temporary and permanent tax cut measures. ing social and cultural issues including restrict-
International Iowa, for example, enacted a 3.9 percent flat tax. ing abortion, barring transgender athletes from
Mississippi had its largest-ever tax cut passed competing in school sports, and banning teach-
by lawmakers to reduce the state income tax ing of critical race theory. As a result, major
over four years, beginning in 2023. In Georgia, corporations are facing increasing pressure from
Governor Brian Kemp (R-GA) recently signed employees to weigh in against legislative actions
Commerce
into law a $1.6 billion state income tax refund that are outside traditional business priorities.
measure. Governor Phil Murphy (D-NJ) and As legislators act, business leaders are navigating
Governor Kathy Hochul (D-NY) have proposed how to effectively express positions on specific
Financial property tax relief plans. legislation while simultaneously advancing their
Services commercial interests.
Looking outside of budget negotiations, state
officials continue to work to finalize the redis- For the remainder of 2022, state and local
tricting process. Forty states have completed governments will continue to be quite active as
Health redrawing their congressional maps (not count- they deploy ARPA dollars, prepare to spend new
ing the six states with only one congressional federal Infrastructure Investment and Jobs Act
district). Only Florida, Ohio and New Hamp- (IIJA) funds as well as address hot button issues
Appropriations & shire continue to work through the process. important to base voters as we move into the
Budget Several redistricting proposals remain under 2022 primary and general elections.
State
Advocacy STATE AND LOCAL ADVOCACY PRACTICE HEAD
Loren Monroe
Public MANAGING DIRECTOR OF STATE & LOCAL ADVOCACY
Relations William Crozer
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 18Click on the subjects
below to view:
Overview
Bipartisan
Public Relations
Take
International POST PANDEMIC COMMUNICATION MUST BROADEN,
NOT NARROW
Commerce The pandemic has been part of
our lives for so long that most “Tolerance has given
people have begun to treat it as way to rejection.
Financial
Services routine. It isn’t. Obstacles are
viewed as dead
Health
COVID-19 will be seen as a historic divide ends. Competitors
between a world that still had a semblance of
cohesion and a new, fragmented society that are mortal
finds any excuse to fight. enemies. Improved
Appropriations & Lack of human contact is a major cause. Too
Budget many have lost the skill of getting along because
communications can
we didn’t have to – except online, which isn’t the be an antidote. But to succeed it
same thing.
State must embrace the change and
Tolerance has given way to rejection. Obsta-
Advocacy
cles are viewed as dead ends. Competitors are
offer credible alternatives.”
mortal enemies. Scarcity of commodities and Jeff Birnbaum
Public the growing chasm between the haves and have- PRACTICE HEAD
Relations nots have made this even worse.
Continued on next page
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 19Click on the subjects
below to view:
Overview
The result is near-constant conflict between additional tools to do so, including OTT (Over
people, organizations, and governments. Crime the Top) advertising on streaming services.
Bipartisan and mental illness are rising. The U.S. is expand-
Such extreme targeting produces results. It
Take ing economic warfare on two fronts – with China
effectively sells products and ideas. But it also
and now Russia. Even the typically genteel
exacerbates alienation and misunderstanding.
Oscars aren’t safe.
Our parallel universes grow farther apart when
International Improved communications can be an anti- we cater to these ever-narrower interests.
dote. But to succeed it must embrace the change
Such targeting also limits the number of
and offer credible alternatives.
people to whom marketers can sell their goods
For example, adherents of the political left and concepts.
Commerce and right rarely get information from the same
The way out is to propound messages that
places. They don’t even accept the same facts.
attract multiple audiences.
Outreach to each side must be tailored to this
Financial schism. Earth-shaking events can do this, like Russia’s
Services invasion of Ukraine. So can certain policies, such
Pinpointing audiences isn’t new. But it has
as expanding job-training programs.
become even more important in this radically
polarized age. The key to post-pandemic communications,
therefore, is to use divergent channels not just to
Health Communicators need to segment their audi-
please narrow audiences but to assemble broader
ences more finely and react to feedback faster to
ones.
get their points across. Technology has provided
Appropriations &
Budget
PUBLIC RELATIONS PRACTICE HEAD
State Jeffrey H. Birnbaum
Advocacy
Public
Relations
Contact Us Quarterly Report, APRIL 2022 BGRDC.com 20CONTACT US 601 13TH ST. NW WASHINGTON, DC 20005 WWW.BGRDC.COM Jo Maney, Public Relations Principal Usman Rahim, Financial Services Policy Analyst Katie McHenry, Executive Assistant LaVidaCo Communications, Report Design
You can also read
