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ACA Repeal

Health care, taxes, and a regulatory reform will dominate the Hill during Trump’s first 100 days in office, and the partisan maneuvering begins today. Both President Barack Obama and Vice President-elect Mike Pence headed to Capitol Hill to discuss the health care law this morning.

Obama’s goal is to rally Democrats.

Vice President-elect Pence met with the Republican conference, which is still sorting through which elements of the ACA to preserve and how long the transition period to a replacement plan should last. Conservatives, like the House Freedom Caucus, want as little as a six-month transition period. Other Members are mulling as long as a four-year-delay, which would keep elements of Obamacare in place past the 2020 elections. During the meeting, Pence announced the incoming Administration’s two track approach of using Congress as well as Executive Order. 

There’s already questions about the timeline for repealing the Affordable Care Act because of the taxes used to fund the law, like the investment tax hike on the wealthy, the medical device tax and the Cadillac tax on expensive employer-provided health plans. Discussions remain on-going about how to best unravel the roughly $1 trillion worth of tax increases in the health care law. House and Senate Republicans will not know what the new baseline is for tax reform until those decisions are made.

The Senate voted to move ahead in debating a FY 2017 budget resolution that would include reconciliation instructions repealing the ACA. The budget instructs House and Senate committees to come up with a repeal bill by January 27th. The motion to proceed to the resolution required only a simple majority vote and the tally was 51-48 as voting continued. Senator Rand Paul (R-KY) voted no. The Senate is expected to consider the resolution the remainder of the week, and the House is expected to pass it prior to the Inauguration on January 20th. It should be noted that the President does not need to sign the resolution, and it does not become law. Rather binding on Congress. 

Cabinet Confirmation Hearings Kick Off Week of Jan. 9

Although the new Trump Administration will not formally come into office until January 20, confirmation hearings for many of the Cabinet nominees will kick off the week of January 9.

For example, Education Secretary nominee Betsy DeVos will go before the Senate Health, Education, Labor, and Pensions (HELP) Committee on at 10 AM EST on Wednesday, January 11. The hearing will be webcast and will be available here.

Rep. Tom Price (R-GA), who has been tapped to head the Department of Health and Human Services for the new Administration, is scheduled to appear before the HELP Committee on January 18. He will also testify before the Senate Finance Committee.

Not all of the confirmation hearings for Cabinet secretary nominations have been scheduled yet. In addition, no nominees have yet been named to head many of the federal agencies of great interest to UW, such as the National Institutes of Health, NOAA, and NASA.

Federal Relations will continue to monitor and update as nomination process moves forward.

Welcome to the 115th Congress

Happy New Year and Happy Swearing In Day! Congress is back today to usher in the 115th Congress and the inauguration is in 17 days.

First things first. 

Both the full House and new members of the Senate were sworn in today initiating the 115th Congress. With the Republican party in charge of both chambers and President-elect Donald Trump in the White House, an ambitious agenda is in the works, which includes repealing Obamacare and rolling back regulations. 

Those effort starts this week as the Senate is expected to start working on passing a budget that contains instructions for gutting Obamacare this week, with the House following up as soon as next week. That resolution includes instructions to repeal large parts of Obamacare through reconciliation. The measure would instruct relevant committees to write legislation that could undo provisions of the law. Republicans are framing this measure as an Obamacare transition solution, but nothing will actually happens to the ACA yet.

The process in the Senate will take several days of debate and there will be a “vote-a-rama,” a process that often takes several hours over the course of a day and night. The budget resolution and the reconciliation measure repealing the health care law avoids the normal Senate requirement of 60 votes to consider legislation. Any subsequent bills addressing replacement provisions for the health care coverage law will require new budget resolution maneuvering or the cooperation from some Senate Democrats. The legislative process for enacting health care coverage replacement legislation could take several years.

Republican leaders are setting up reserve funds in an otherwise bare-bones FY 2017 budget resolution as a way to allow savings from repealing the health care law to be applied to replacement legislation.

The House will vote shortly after on the budget resolution and that vote could happen by the time Trump is inaugurated. It is worth noting that the budget resolution is not law, but binding and instructing on the House and Senate Committees. 

Rollback Regulations

Trump is expected to roll back nearly every major labor regulation enacted under President Barack Obama. Executive orders will be the easiest to reverse or cancel; that simply takes executive action. On the list could be an order that required prospective federal contractors to disclose previous labor law violations when bidding on large contracts. 

The Department of Labor’s appeal of a federal injunction against the rule will almost certainly be dropped once Trump takes charge of the Justice Department. Another regulation to watch is the fiduciary rule, which requires broker dealers to consider only the client’s best interest when providing retirement advice. Trump may face difficulty squelching the rule before it takes effect in April, but his Labor Department can broaden exemptions and thereby weaken its effect substantially.

Also up for review are visas for guest worker programs. Bipartisan support exists already to scrutinize these programs because of highly publicized instances in recent years of mistreatment of guest workers, displacement of native-born workers, or both. Indeed, Democrats may push harder than Republicans to clean this Augean stable, given the reliance of Trump’s own various businesses on guest-worker visas. The Washington Post counts, 500 since 2013.

Trump’s first big decision on immigration will be what to do about the Deferred Action for Childhood Arrivals program, which grants deportation relief to more than 752,000 people brought to the US at a young age. Trump promised during the campaign to end the program, which was created by an Obama executive order. But in December, Trump said “we’re going to work something out that’s going to make people happy and proud.”

Looking Forward

As the Trump Administration takes office later this month, lawmakers are also gearing up for new fights. Efforts to undo many of the Obama Administration’s education policies, such as its teacher preparation regulations or rules aimed at cracking down on for-profit colleges, will likely prove contentious. Lawmakers will also likely clash over efforts to repeal the Obama Administration’s regulations under the Every Student Succeeds Act or scale back the power of the Office for Civil Rights.

Additionally, Senator Lamar Alexander (R-TN) and Representative Virginia Foxx (R-NC), the chairs of the congressional education committees, both plan to turn their attention to overhauling the Higher Education Act, which was last comprehensively reauthorized in 2008.

Decisions over the details for the Trump proposed infrastructure bill, including how to finance it, will probably come after Elaine Chao makes her way through the confirmation process. Trump’s pick for Transportation secretary is unlikely to face much resistance in the Senate.

Multiple Senate Committees will begin public vetting and hearings of dozens of Trump Administration political appointees, from Secretaries, deputies and administrators, all needing Senate confirmation. Hearings have already begun to be scheduled for next week. 

But what will happen next? Stay Tuned. The Office of Federal Relations will continue to update.

What We’re Reading This Week, December 19 -23

Here’s a selection of articles the Federal Relations team is enjoying this week.

New Options – Unhappy with the leading options for Secretary of State, Trump asked former SECDEF Robert Gates what he thought. Gates suggested Exxon CEO Rex Tillerson. Read more in The Washington Post.

Office of “Buy American”  President-elect Donald Trump will create a new office within the White House to oversee trade and industrial policy, a move that will put an emphasis on “Buy America” policies and promote domestic manufacturing. Read more in Politico.

HB2 Failed – North Carolina failed to repeal HB 2, known as the “Bathroom Bill”. The law has caused massive impacts to the state as national organizations with drew support by moving massive sporting events or deciding not to relocate in the state. It was a major reason the Governor was not reelected. The North Carolina Legislature, in a closed session, was supposed to repeal the law this week…and failed to do so. Read more in The Atlantic. 

NSEERS No More – The Department of Homeland Security will take apart the vestiges of a controversial and unused since 2011 program that was used to register and track visitors from Muslim-majority countries. The National Security Entry-Exit Registration System (NSEERS) had two parts, and applied only to people from 25 countries named by DHS. Twenty-four of them were Muslim-majority countries. The program required registration by men ages 16 and up living in the U.S. to report regularly to immigration officials. The other half was an entry and exit tracking system, which limited the airports, seaports, and land borders that registrants could use to travel, and required them to register before leaving and after arriving. Read more in The Atlantic. 

Two for One – President-elect Trump has promised a 2 for 1 repeal on regulations, meaning for everyone regulation or order issued two will be repealed. Read more in The Hill.

Push and Pull – State support of climate and environment policy has surged as the incoming Trump Administration signals an about-face from eight years of policies designed to reduce climate-altering emissions and address the effects of a warming planet. Read more in The New York Times. 

Good for Business – Donald Trump’s November victory has been a boom for liberal news outlets, which are getting big business from voters shocked by the billionaire’s surprise win over Hillary Clinton. Read more in The Hill. 

Drilled Out – President Obama announced a ban on the outer continental shelf in the Arctic and the Atlantic, which likely can’t be undone. Read more in Vox.

Tax Reform – President-elect Trump and congressional Republicans next year hope to undertake the first overhaul of the tax code in more than 30 years. The Hill has a series of questions on how that will happen. 

First War on Christmas – In the 1920s and 1930s, committed Nazi propagandists worked to “Nazify” Christmas. Redefining familiar traditions and designing new symbols and rituals, they hoped to channel the main tenets of National Socialism through the popular holiday. Read more in Smithsonian.

Art & Science – High-tech techniques are being used to restore the Ghent Altarpiece. Read more in the New York Times. 

Electoral College Votes Today

The 538 members of the electoral college will gather at state capitols across the country this afternoon to cast their ballots for President. The usually symbolic ceremonies, full of pomp and circumstance, have drawn intense attention this year.  There has been much effort made to dissuade the electors from voting for Trump.  

To be effective, 37 of 306 Republican electors would need to vote for someone, anyone else. Only one Republican has announced that he will be faithless and more have suggested it, but not nearly in the numbers needed to not elect Trump.

Regardless, if Trump does not get 270 electoral votes today, the decision then goes to the House of Representatives to choose the president. The House will choose Trump.