This September, all eyes in DC will be on the Hill as the Democratic leadership in the House and Senate attempt to negotiate passage of the President’s $3.5 trillion economic agenda. The size of the bill and the number of moving pieces will make this no simple feat.
Here are the major things to know about the dynamics that will be unfolding in the coming weeks:
Reconciliation – The Democratic leadership will be attempting to pass this bill under a process known as budget reconciliation. The chief benefit of using the reconciliation process is that reconciliation bills are subject to special rules in the Senate and cannot be filibustered. Therefore, bills brought to the floor under the reconciliation process can pass the Senate with a simple majority. The limits of budget reconciliation are that provisions can only be included in a reconciliation bill if they directly impact federal spending, revenues or the debt limit and provisions cannot increase the deficit outside of the budget window (typically ten years). As you may recall, in 2017, the Republicans used the reconciliation process to pass the Tax Cuts and Jobs Act. The limits of reconciliation are why a number of the provisions in the 2017 legislation, including the 199A deduction for pass through entities and the increased federal estate tax exemption, are set to sunset ten years after their passage.
The first step in the reconciliation process is the passage of a budget that includes what are known as reconciliation instructions (or reconciliation directives). These instructions direct specific committees to develop legislation that meets certain budgetary parameters. While the reconciliation instructions do not specifically spell out how any particular committee is expected to meet these targets, they are structured with an understanding as to the end goal of the bill. Both the House and Senate adopted the budget resolution with reconciliation instructions in August. Now the rubber will be hitting the road as the committees develop the legislative language. The budget resolution instructed the committees to have the drafts of their sections ready by September 15. However, it is very unlikely that this will be accomplished and there are no strict consequences if it is not. Rather the optimistic goal for the Democratic leadership is to have a package ready by the end of the month (though even that is looking more and more unlikely).
With everything involved, the prospects of the Democrats’ efforts to negotiate and pass an omnibus package varies from day to day – with the only clarity being that it resides somewhere between being a lost cause and a sure thing. The negotiations surrounding the budget plus the debt ceiling are expected to be the singular focus of Congress this month and most likely will carry over into the months to come.
On September 9, 2021, the White House unveiled its latest COVID-19 Action Plan, which it has titled “Path Out of the Pandemic.” While many of the developments were expected, there were a number of surprises in the Action Plan which will have important implications for many businesses big and small.
As was anticipated, in rolling out the Action Plan, the President signed a pair of Executive Orders requiring that all federal employees and contractors (with the exception of those who qualify for an accommodation) must be vaccinated against COVID-19. At the end of July 2021, the Administration announced that federal employees or contractors would be required to be vaccinated or submit to regular testing in lieu of vaccination. The latest Executive Order eliminates the testing option. Each individual agency will be responsible for rolling out the requirement for its employees and contractors.
In a more unexpected turn, the Administration also announced that Department of Labor’s Occupational Safety and Health Administration (OSHA) will be issuing an Emergency Temporary Standard (ETS) requiring that private employers with 100 or more employees “ensure their workforce is fully vaccinated or require any workers who remain unvaccinated to produce a negative test result on at least a weekly basis before coming to work.” The White House estimates that this new directive will cover more than 80 million private sector workers. In conjunction with the ETS, OSHA will also be developing rules to require that employers with more than 100 employees provide their employees with paid time off to receive or recover from a COVID vaccine. Of course for businesses that have 100 or more employees this is a major development, though the precise details of the requirement are still to be determined. Also unknown is the timeline for OSHA to issue the ETS. The last COVID-related ETS that OSHA was tasked with took nearly five months to complete. However, that was at the beginning of the Administration and in the midst of the vaccine rollout so we would anticipate this ETS to be issued much more quickly. Businesses that will be covered by the new requirements should start taking initial steps to prepare themselves and their workforces so that they are in a position to move quickly once the ETS is released.
The President also announced that the Centers for Medicare & Medicaid Services (CMS) will also be implementing rules to require vaccines for employees that work in health care settings that receive Medicare or Medicaid reimbursements. Accordingly, any business in the health fields that receive Medicare or Medicaid reimbursements should be on the lookout and prepared to implement the new CMS rules.
Finally, on the vaccination front, the President urged entertainment venues (such as sports arenas and concert venues) to require attendees to provide proof of vaccination or a negative test as a condition of entering the venue.
In addition to those provisions targeted at increasing national vaccinations rates, the Action Plan also includes a handful of economic recovery provisions. Most notably, the Administration announced that the Small Business Administration (“SBA”) will be making changes to the COVID Economic Injury Disaster Loan (EIDL) program to increase the amount that businesses can borrow, ease repayment terms and make it easier for the hardest hit businesses to take advantage of the program. The Action Plan also reiterated the process that the SBA has been implementing to streamline forgiveness applications for those businesses with PPP loans under $150,000.
The Action plan also includes policies on vaccine boosters, COVID testing, care for those with COVID 19 and school safety.
As a bottom line, the Action Plan will have a direct impact on businesses that do business with the federal government, that receive Medicare or Medicaid reimbursements or that have 100 or more employees. For businesses that fall below or outside these thresholds, these new developments may still influence the public pressures and expectations that the businesses are facing when it comes to handling the issue of vaccines amongst employees.
For the first time, TIA has organized a golf outing at TopGolf Las Vegas to benefit TIA’s government affairs efforts. Join us for a fun-filled afternoon of golf, laughter, and networking for a worthy cause before the GTE show at Top Golf.
There is no pressure – whether you are an avid golfer or have never swung a club, TopGolf is the spot for you. There are many things to do in Las Vegas, there are plenty of places to go to – but if you are looking for a truly unique experience, look no further than TopGolf.
The cost is $150 Per Golfer and registration includes 2 hours of golf and refreshments in a private bay. The fun-filled day will include reserved bays, two-hours of golf, and refreshments.
The event will take place on October 31st, 2021 from 2-4 pm at 4627 Koval Ln, Las Vegas, NV 89109. TopGolf is located behind the MGM Grand and is a short walk from the strip. There is also plenty of parking available at the complex.
We hope you can spend the afternoon with us networking with industry professionals while enjoying some golf and appetizers for a good cause to support the association.
We also have sponsorship opportunities available for this event. For more information and to RSVP contact me at rlittlefield2@tireindustry.org
CLICK HERE for a registration form.
CLICK HERE for a sponsorship form.