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Pence to Head Transition

Today, President Elect Trump named his Vice President- Elect Mike Pence as the new head of the transition team with strong input from Senator Jeff Sessions (R-AL). Previously, the transition team was headed by long-time Trump supporter, Governor Chris Christie (R-NJ). The transition team is responsible for filling over 4000 positions within the new Administration, including those at the Cabinet-level.

Trump Agenda?

President-elect Donald Trump (PEOTUS) met with President Barack Obama this morning in the Oval Office at the White House (in what may be the most interesting meeting there in a long while). Trump and Vice President-elect Mike Pence also met with House Speaker Paul Ryan after the White House meeting, and Pence met with Vice President Joe Biden, too. Other intel, Pence has already called at discussed the transition with the presumptive Democratic Senate Leader, Chuck Schumer (D-NY), and has reached out to House Democratic Leader Nancy Pelosi (D-CA).

What can we expect in the First 100 days of a Trump Administration? While many details are still unclear, there are some areas where we can expect both the White House and Congress to act. Congress next year will need to take on must-do items such as funding the government and raising the nation’s debt limit. Also to be expected are some sort of tax reform (likely cuts), Obamacare repeal and replacement, and immigration reform.

The slimmer House Republican majority will skew more conservative. We should expect elements of Ryan’s “Better Way” agenda that encompasses tax and health care overhauls, as well as national security and economic measures. could easily rise to the top of the agenda.

The tight margin in the Senate — where Republicans are in control but still are far from the 60 votes needed to overcome a filibuster — means that the party’s leaders are most likely to use the budget reconciliation process to move their agenda. That procedure would only require a simple majority to cut off debate and proceed to a final vote.

Ryan has already said that he would seek to use reconciliation to pass tax cuts,  which incidentally is deploying the same procedural tool that Democrats used in 2010 to pass the health care law.

On the campaign trail, Trump championed infrastructure spending and paid family leave during his campaign, which could attract Democratic support. Trump’s economic plan — a combination of tax cuts, new spending on immigration enforcement and tariffs on foreign goods — would explode the deficit, even if Congress were to scale back somewhat the $4.4 trillion tax cut that Trump rolled out Sept. 15 at the Economic Club of New York.

 

Lame Duck Priorities

Congress is scheduled to return next week for a Lame Duck session of Congress and many items still remain on the 2016 agenda before Trump takes office, including wrapping up the 11 remaining FY 2017 spending bills and a 21st Century Cures bill that both Majority Leader McConnell and Speaker Ryan said was a priority for passage in the Lame Duck session.  While President-elect Trump won’t be signing any bills in the lame duck, he will influence decisions on how to wrap up the 114th Congress.

While it is too soon to tell whether or not Congress will try to address its remaining legislative business in a Lame Duck session of Congress, or wait until President-elect Trump is sworn in on January 20 and Republicans control both the House and the Senate, a few things are fairly certain, dealing with the FY 2017 and the 21st Century Cures bill will be the Lame Duck priories.

FY 2017, Finishing the Fiscal Year

The current Continuing Resolution keeping the federal government open expires on December 9.  Prior to the elections, Republican leaders expressed support for passing a series of “minibuses” that would group appropriations bills together, while Democrats were leaning toward an omnibus bill that would include all of the remaining FY 2017 bills.  House Appropriations Committee Chair Rogers (R-KY) has said no decisions have been made yet on the process, but as of today, the House Appropriations Committee has put conference negotiations on hold pending further analysis.

However, Majority Leader Mitch McConnell said this week that funding the government remains a top priority heading into the lame duck and that lawmakers will wrap up spending bills this year rather than punt to the next Congress via another stopgap spending bill. McConnell said he plans to talk to House Speaker Paul Ryan and President Obama about how the FY 2017 bills could be enacted, but gave little in the way of specifics on how this would be accomplished.

That plan, though, was criticized by conservative House Freedom Caucus prior to the election as the Caucus continues to pushing for a continuing resolution to extend government funding into the next calendar year so that congressional Republicans can negotiate a spending package with Trump rather than Obama.

Must Pass? Should Pass? Legislation

Additionally, outstanding legislative priorities include the 21st Century Cures medical innovation package and mental health reform.  The Cures package is a particular priority of House Energy and Commerce Committee Chair Upton (R-MI), who is term limited as Chair. Upton has been vocal on having a package on the House floor next week when the House returned to session.  However, it’s unclear if the measure will be considered. Prior to the election, Democrats voiced wanting the mandatory funding for the National Institutes of Health in the bill, but also expressed desires to insert prescription drug controls and concerns about offsets. In addition, bringing a large mandatory spending bill to the floor may not help Ryan keep his speakership with his contentious caucus.

Several other issues remain before Congress, including the FY2017 National Defense Authorization Act (NDAA), which has seen some hiccups this year, but must pass annually. Also in limbo is the Water Resources and Development Act (WRDA), which passed the House and Senate respectively and is currently being conferenced.

Trade

The 12-nation Trans-Pacific Partnership agreement, which was a priority for The Obama Administration in the Lame Duck, will not be considered, according to House Ways and Means Chairman Kevin Brady (R-TX).  It will remain ”on hold” until President-elect Donald Trump decides whether to take action on the agreement in the next Congress.

SCOTUS

Supreme Court Justice Nominee Merrick Garland will not receive a confirmation hearing or a vote.  With the Senate remaining in Republican control, it will wait for President Trump to submit a new nominee for the Supreme Court after he is sworn in on January 20, 2017.

At this juncture, there are two likely scenarios for Congress to deal with these issues, and the outlook will be clearer in the coming days.

Clear the Decks

Under this scenario, President-elect Trump would indicate to Congress that he would like them to complete as much business as possible in the remaining days of the 114th Congress.  This would free up both President Trump, and the 115th Congress to focus on his priorities during the first 100 days of his Administration, as well as big-picture items such as a Supreme Court nomination and the debt-ceiling (which could be reached as early as March 2017).  This path would require some degree of cooperation from both the Obama Administration and the conservative element of the Republican conference.

Punting

The second scenario would be for Congress to push off all but must-do issues until after President-Elect Trump is sworn in.  Because Republicans would control both chambers of Congress and the White House, they would, in theory, have the ability to include more of their priorities in these bills before passage.  The risk in this scenario is that it bogs down the new Administration during their first days in office, at which time they will want to unveil new policy ideas, and when they have the most political capital to see those ideas to fruition.

 

Obamacare & the 115th

Today, Senate Republican Leader Mitch McConnell (R-KY) announced the Republican leadership’s intention to repeal the Affordable Care Act, also known as Obamacare, quickly into the 115th Congress. While there is no confirmation on a legislative vehicle, the most likely means for Congress to pass something will be the Budget Reconciliation process. This process is also the vehicle that has been suggested to move any tax reform policies.

The slim majority of Republicans in the Senate, which will likely be 51-53 seats, would not be able to overcome the 60 vote cloture requirement. The Budget Reconciliation process would avoid a cloture vote, since the Budget Reconciliation requires a simple majority to pass.

Created by the Congressional Budget Act of 1974, Budget Reconciliation allows for expedited consideration of certain tax, spending, and debt limit legislation.  In the Senate, reconciliation bills are not subject to filibuster and the scope of amendments is limited, giving this process real advantages for enacting controversial budget and tax measures.  This paper addresses some frequently asked questions about reconciliation.

The 45th President of the United States Donald Trump

Almost every DC pollster and expert thought that Clinton would win. They were all wrong. They were also wrong about the Senate. In the 115th Congress, Republicans will control the White House, the Senate, and the House.

Last night, Donald Trump was elected the 45th President of the United States. While a few states remain too close to call, Trump won 279 electoral votes to Clinton’s 228. While Trump won the electoral math, it does appear as if Clinton will slightly overtake him in the popular vote.

Clinton conceded to Trump around 2:30 am EST.

A look at where Trump won helps explain why Trump won. Swing states expected to go for Clinton or to change Senate leadership — Pennsylvania, Ohio, Indiana, Wisconsin, Missouri, North Carolina — all went for Trump. He carried three battle ground states — Florida, North Carolina, Ohio — and then cracked Clinton’s blue wall with wins in Pennsylvania and Wisconsin. Few if any pundits predicted a Trump win in Pennsylvania or a lead in Michigan, each having been won by every Democratic Presidential candidate since President Reagan last notched a victory for Republicans in those states in 1988.

Clinton consistently underperformed President Obama’s strength with his winning coalition of college educated women, minorities, and young voters. While Clinton bested Trump by 13 points among women, this margin was no better than Obama’s margin in 2008 or 2012 among this same group. Trump, on the other hand, logged support from 70 percent of white men without a college education, besting Mitt Romney’s showing by 10 points. White male voters, both with and without a college education supported Trump, and in the case of blue collar workers, overwhelmingly supported Trump.

While President Obama received about 33 percent support from white men without a college degree, Clinton received just over 20 percent support in this demographic group. The Clinton voter of the 2008 primaries became Trump voters in 2016 — and their concentration in tipping point states carried a significant impact in the result.

Congressional Results

In addition, the Senate Democrats only gained one seat, in Illinois, leaving the Senate in Republican control as Republicans are guaranteed 51 seats. Two Senate seats are still outstanding — New Hampshire has yet to be called and Louisiana will have a runoff in December. Regardless of who wins or if the sitting Republican Senators keep their seats, it will not change the majority.

The House remained in Republican control, but with a narrower, more conservative agenda. The very conservative House Freedom Caucus, and now a greater percentage of the House Republican Caucus, threatened to withhold support for Speaker Paul Ryan to remain Speaker in the 115th Congress.

Even so, elements of Ryan’s “Better Way” policy platform that encompasses tax and health care overhauls, as well as national security and economic measures, could easily rise to the top of the agenda with or without Ryan at the helm.

Washington’s Newest Member of Congress

Pramila Jayapal won Washington’s 7th Congressional District (CD) seat, which was filled for the last thirty years by Jim McDermott, who will retire this year. Jayapal will be the first Indian-American woman to be elected to the U.S. Congress. She moved to the United States in 1982 at the age of 16 to attend college, and worked as a civil rights advocate and Washington state senator prior to running for Congress.

She won with the support from 136,547 Seattle voters compared to opponent, fellow Democrat Brady Pinero Walkinshaw’s 102,341 votes.

Elsewhere in Washington, all incumbents will return to the nation’s capital for the 115th Congress. Here are the results by Congressional District:

  • US Senate: Patty Murray (D) with 60.79% of votes
  • CD 1 – Suzan Delbene (D) with 57.19% of votes
  • CD 2 – Rick Larsen (D) with 65.15% of votes
  • CD 3 – Jaime Herrera Beutler (R) with 58.83% of votes
  • CD 4 – Dan Newhouse (R) with 57.84% of votes
  • CD 5 – Cathy McMorris Rodgers (R) with 58.32% of votes
  • CD 6 – Derek Kilmer (D) with 62.25% of votes
  • CD 7 – Pramila Jayapal (D) with 57.16% of votes

Lame Duck Agenda and Beyond

In the near term, Congress needs to pass some sort of appropriations measure to either complete FY 2017 or continue FY 2016 funding. The path forward prior to the election was murky, but now is even more unclear.

In the 115th, Congress will need to take on must-do items such as funding the government, whether that means finishing FY 2017 and/or approaching FY 2018,  and raising the nation’s debt limit. The slimmer House Republican majority will skew more conservative, and already some hardliners in the Freedom Caucus have threatened to pull their support for Speaker Ryan.

The Trump campaign was not policy heavy, and many questions on what a Trump Presidency will look and do remain murky at best. On the trail, Trump was vocal on repealing Obamacare, and now with the House and Senate majorities, that repeal seems very possible. Other campaign promises, such as a border wall, immigration restrictions, tax breaks, and opposition to trade deals are all expected to be considered moving forward. One item, which has been prominent for Republicans across the board, has been looking for a massive infrastructure bill. If history is a guide, such a bill, like one seen in ARRA, would be wide and sweeping.

As we get further in to the Trump transition, Federal Relations will continue to update as more information becomes available.