Washington Report - May 17, 2023

Congress/Debt Limit/Tax
WMMA participated in several events with Republican and Democrat Members of Congress over the last month. In discussing issues with these policymakers, it was clear that both sides are laser focused on the debt ceiling issue. Treasury Secretary Janet Yellen announced at the end of April that the U.S. could default on its debts as early as June 1 if Congress does not act to raise or suspend the nation’s borrowing authority. Inaction on this issue would plunge markets into turmoil and wreak untold economic chaos—a point that Members of Congress we met with clearly understand, but a path forward to a Congressional solution is not yet apparent. The House has passed legislation raising the debt ceiling by $1.5 trillion, but the measure also includes spending reductions and policy provisions that will not secure enough votes for passage in the upper chamber. President Biden convened House and Senate leaders for a meeting on May 9 to discuss the issue and try to find some common ground, but that meeting did not yield any progress. 

On a positive note, Senators expressed optimism that Congress would come together on a tax package—likely in the fourth quarter this year—that would include extensions of 100 percent bonus depreciation, full expensing of research and development costs in the year in which they are incurred and enhanced interest deductibility. Known D.C. tax advocacy circles as the “tax trifecta,” most of the business community is lobbying this issue aggressively, as is WMMA. We will keep you apprised of our progress. 

Workforce
In late April, the Ranking Member of the House Education and Workforce Committee (Bobby Scott D-VA) and Rep. Brian Fitzpatrick (R-PA) introduced the National Apprenticeship Act of 2023. This bipartisan bill invests more than $3.85 billion over 5 years to increase access to registered apprenticeships, youth apprenticeships and pre-apprenticeships. The proposal is estimated to create nearly 1 million new apprenticeship opportunities on top of the current expected growth of the apprenticeship system.

Similar legislation passed the House last year by a vote of 247-173 but did not move through the Senate. Provisions were also included in a larger package of China-related competition provisions in the America COMPETES act which also did not become law. 

A fact sheet with additional information on this measure may be found here.

Supply Chain
On Wednesday, May 10th the House Transportation & Infrastructure Committee held a hearing titled “Freight Forward: Overcoming Supply Chain Challenges to Deliver for America.” The panelists ranged from the Teamsters Union to owner-operator truck drivers to the association representing truck stop operators. We are picking up reports that this hearing begins the sequence of rolling out a comprehensive supply chain legislative package expected later in May or early June. This package is expected to include provisions of the LICENSE Act-which was introduced recently—that streamlines and makes more efficient the process of obtaining a commercial drivers license (CDL). We are also hearing that the measure will fold in aspects of the SHIP IT Act, including tax credits for new and existing truck drivers and funding for creating more parking options for big rigs. The question on the table is whether the package will address truck weight reform. Language in the SHIP IT Act authorizes a pilot program for states to opt into that would allow trucks with six axles and weighing 91,000 pounds to travel over the interstate highway system. The current weight limit on interstate highways is 80,000 pounds for five axle trucks, which has created an unsafe situation where heavier rigs must travel on smaller, secondary state roads instead of the interstate highway system which is better engineered to handle larger vehicles. The issue has pitted sectors that rely heavily on trucks for raw material and/or shipping finished product against the Class 1 railroads who vehemently oppose truck weight reform legislation in any form. House Transportation & Infrastructure Committee Chairman Sam Graves (R-MO) has been careful in his approach to this issue and has been noncommittal on whether his supply chain package will include any truck weight language.