What’s Happening in Washington: Week of May 9^th, 2023

Headlines to Know:

June 1 Debt Ceiling Lingers Over Congress

President Biden is set to host a high-stakes meeting with House Speaker Kevin McCarthy and other congressional leaders today, kicking off what could be weeks of discussions aimed at averting the first-ever default by the federal government as soon as next month. House Republicans have demanded deep spending cuts in exchange for raising the debt ceiling and criticized Mr. Biden for not starting talks earlier. But Mr. Biden and Democrats in Congress maintain that the federal borrowing limit should be raised without preconditions and have called the GOP stance irresponsible. Neither side has presented a path forward that could win enough support to pass both chambers of Congress.

Biden Administration Issues New Travel Guidelines, Compensation Rules

The Biden administration plans new regulations that would require airlines to compensate passengers when flight times change drastically due to causes within the carriers’ control. The rule-making would require airlines to provide compensation in addition to refunds, similar to passenger-protection measures required in the European Union, when flights are canceled or passengers endure significant delays due to airline-caused disruption. It would also require airlines to cover expenses such as overnight hotel accommodations and transportation during such significant flight disruptions—services many carriers already provide.

Federal Reserve Adjusts Rates, Warns of Credit Chilling Effect

The Federal Reserve has warned that the recent banking turmoil could fuel a broad credit crunch that risks slowing the US economy, while lenders told the central bank they plan to tighten lending standards due to worries about loan losses and deposit flight. The US central bank said in its twice-yearly financial stability report that despite “decisive actions” by regulators and officials to tackle the recent regional bank crises, worries about the “economic outlook, credit quality, and funding liquidity” could lead “banks and other financial institutions to further contract the supply of credit to the economy”.

State Lawmakers Agree on Free College Tuition Deal

Tuition at Minnesota’s public colleges would be free to residents whose families earn less than $80,000 annually, starting in the 2024-2025 academic year, under an agreement reached by legislative negotiators. The “North Star Promise” free tuition program would cost about $117 million in the fiscal year that begins July 1, including startup costs. After that, it would cost about $49.5 million annually, according to the agreement.

Hearings:

• 5/9/23: House Veterans’ Affairs: Electronic Health Record Modernization Deep Dive: Pharmacy
• 5/9/23: House Rules Meeting: H.R. 2 – Secure the Border Act of 2023; H.R. 1163 – Protecting Taxpayers and Victims of Unemployment Fraud Act of 2023
• 5/9/23: Senate Armed Services: Hearings to examine Department of Defense missile defense activities in review of the Defense Authorization Request for Fiscal Year 2024 and the Future Years Defense Program.
• 5/10/23: House Agriculture: The Future of Digital Assets: Measuring the Regulatory Gaps in the Digital Asset Markets
• 5/10/23: Senate Foreign Relations Committee: Hearings to examine conflict in Sudan, focusing on options for an effective policy response.
• 5/10/23: House Science, Space, and Technology: An Overview of the Budget Proposal for the National Institute of Standards and Technology for Fiscal Year 2024
• 5/10/23: House Transportation and Infrastructure: Freight Forward: Overcoming Supply Chain Challenges to Deliver for America
• 5/10/23: House Small Business: “Taking on More Risk: Examining the SBA’S Change to the 7(a) Lending Program Part I”
• 5/10/23: House Foreign Affairs: Modernizing U.S. Arms Exports and a Stronger AUKUS
• 5/10/23: House Energy & Commerce: Fiscal Year 2024 Environmental Protection Agency Budget Request
• 5/10/23: House Judiciary Markup: H.R. 2494, the Protect Our Law enforcement with Immigration Control and Enforcement (POLICE) Act of 2023
• 5/10/23: Senate Energy and Natural Resources: Hearings to examine the President’s proposed budget request for fiscal year 2024 for the National Park Service.
• 5/10/23: Senate Agriculture: Hearings to examine the nomination of Xochitl Torres Small, of New Mexico, to be Deputy Secretary of Agriculture.
• 5/10/23: Senate Commerce, Science, and Transportation: Business meeting to consider S.229, to require SelectUSA to coordinate with State-level economic development organizations to increase foreign direct investment
• 5/10/23: House Education and the Workforce: Markup of H.J.Res.45 – Providing for congressional disapproval under chapter 8 of title 5, United States Code,
• 5/10/23: House Energy & Commerce: Closing the Digital Divide: Overseeing Federal Funds for Broadband Deployment
• 5/10/23: Senate Appropriations: To receive a closed briefing on the President’s proposed budget request for fiscal year 2024, focusing on U.S. competitiveness, and the U.S.-China relationship.
• 5/10/23: Senate Budget: Hearings to examine leadership perspectives and experience on the national costs of climate change.
• 5/10/23: Senate Health, Labor, and Pensions: Hearings to examine the need to make insulin affordable for all Americans.
• 5/10/23: House Science, Space, and Technology: Return on Unprecedented Investment: An Analysis of the Department of Energy’s Implementation of the IIJA, the IRA, and the CHIPS and Science Act
• 5/10/23: House Rules Meeting: Examining China’s Coercive Economic Tactics
• 5/10/23: House Homeland Security: “Evaluating High-Risk Security Vulnerabilities at our Nation’s Ports”
• 5/10/23: House Financial Services: Federal Responses to Recent Bank Failures
• 5/10/23: House Ways and Means: Examining Policies that Inhibit Innovation and Patient Access
• 5/11/23: House Armed Services Markup: H.R. 2670 – National Defense Authorization Act for Fiscal Year 2024
• 5/11/23: Senate Appropriations: Hearings to examine proposed budget estimates and justification for fiscal year 2024 for the Department of Defense.
• 5/11/23: Senate Banking: Business meeting to consider pending calendar business; to be immediately followed by a hearing to examine cannabis banking challenges of small businesses and workers.
• 5/11/23: House Science, Space, and Technology: An Overview of the National Oceanic and Atmospheric Administration Budget Proposal for Fiscal Year 2024
• 5/11/23: House Transportation and Infrastructure: Assessing the Shortage of United States Mariners and Recruitment and Retention Challenges in the United States Coast Guard
• 5/11/23: House Armed Services Markup: H.R. 2670 – National Defense Authorization Act for Fiscal Year 2024
• 5/11/23: House Agriculture: “Stakeholder Perspectives on Agricultural Trade”
• 5/11/23: House Oversight and Accountability: “Strengthening the Fleet: Challenges and Solutions in Naval Surface Ship Construction”
• 5/11/23: Senate HELP: Business meeting to consider S.1067, to amend the Federal Food, Drug, and Cosmetic Act with respect to citizen petitions, S.1114, to amend the Federal Food, Drug, and Cosmetic Act
• 5/11/23: Senate Finance: Hearings to examine cross-border prescriptions, focusing on pharmaceutical manufacturers and U.S. international tax policy.
• 5/11/23: Senate Appropriations: Hearings to examine proposed budget estimates and justification for fiscal year 2024 for the Department of Education.
• 5/11/23: Senate Energy and Natural Resources: Hearings to examine opportunities for Congress to reform the permitting process for energy and mineral projects.
• 5/11/23: House Education & Workforce: “Examining America’s Workforce Challenges: Looking for Ways to Improve Skills Development”
• 5/11/23: House Energy & Commerce: Examining the Root Causes of Drug Shortages: Challenges in Pharmaceutical Drug Supply Chains
• 5/12/23: House Armed Services: H.R. 2670 – National Defense Authorization Act for Fiscal Year 2024