The 118th Congress will be Divided and Vigorous on Oversight

The 2022 midterm elections are less than a week away. Consensus agrees that Republicans are heavily favored to win the five seats needed to take control of the House of Representatives and a good chance of winning the Senate as well. Regardless of the final outcome, we can predict that the 118th Congress will remain a very divided government, with narrow margins making it difficult for either party to govern effectively.

Republican control of one or both chambers will incentivize the caucus to block President Biden’s spending requests for his agenda and other Democratic priorities.   Whether Republicans win or lose the Senate, it will be held by razor-thin margins that will make it difficult to push through Republican priorities.  President Biden will rely on his veto power to stop any Republican successes that attempt to dismantle his agenda.  Republican leadership will work largely on “messaging” legislation that resonates with their base.  The GOP will try to get off to a strong start in the new Congress with a major messaging bill, such as something addressing fossil fuels and gas and oil prices.

Republicans have made it clear that they plan to spend the next two years engaging in extensive oversight and investigations touching on almost every committee’s jurisdiction.  Republicans will turn this focus on the Biden administration, causing the administration to spend a great deal of their attention on Republican demands and possible impeachments aimed at cabinet-level officials. The Environmental Protection Agency (EPA) will likely be under great scrutiny, especially regarding its rules on greenhouse gases and the Toxic Substances Control Act (TSCA).

 

The GOP’s oversight and investigations agenda will also encompass many private-sector matters involving individual businesses.  They plan rigorous oversight of “big tech” companies, recipients of federal “greentech” and pandemic aid, companies with supply chains involving business with China, and those participating in green investing and “woke” corporate policies.

 

Major bipartisan legislation will be rare in the 118th Congress, but there are some opportunities for bipartisan cooperation, such as the Farm Bill, which must be reauthorized next year. Lawmakers on both sides of the aisle have grave concerns about China’s increasing aggression in the Pacific region, its threats to national security, and its unfair trade practices to the detriment of American workers and businesses. There will likely be bipartisan efforts to increase domestic manufacturing, secure resilient supply chains, and protect critical infrastructures such as telecommunications, data, and cybersecurity. This window of opportunity for collaboration is short, lasting only the first year of the legislative session before the 2024 presidential election wipes out these potential opportunities.

When Congress returns after the midterm elections, Democrats will race to finish must-pass legislation, including the FY2023 appropriations and the 2023 National Defense Authorization Act (NDAA). Democrats could negotiate an increase in the debt limit during the lame-duck, but it is unclear if there is enough time to address other unfinished business, such as tax extenders and the Water Resources Development Act (WRDA). This year’s WRDA deals exclusively with Army Corps of Engineers programs and projects after last year’s infrastructure bill reauthorized and funded water infrastructure programs at EPA.

 

VI calls on the White House to Intervene to Prevent Nationwide Rail Shutdown

The Vinyl Institute and over 200 trade associations sent a letter to President Biden on Oct. 27 urging the administration to continue working with rail unions and companies to ensure that all parties ratify the tentative agreement the White House helped broker. The signatories emphasized the significant impact a nationwide rail shutdown would have on the U.S. economy. The group pointed out that the agreement was rejected by one union and shared their concerns that other unions would follow, triggering new strike threats. Those fears are not unfounded. Just this week, the Brotherhood of Railroad Signalmen voted down the proposed contract with the freight railroad industry.

While the negotiated agreement would include a 24 percent wage increase over five years, it does not include the paid sick pay leave the unions have been demanding. They also require cost-of-living adjustments for workers in expensive states such as California. The two dissenting unions represent about 25 percent of the workers covered by the contract. The unions could strike as early as Nov. 19, when the extended “cooling-off” period expires. If the administration does not intervene, Congress has historically stepped in and written an agreement. VI and other industry stakeholders have urged the White House to move the process in a positive direction to avoid this, and any instability or disruption of rail service.

 

EPA Releases Final Lead Strategy Supporting 100% Lead Pipe Reductions

The EPA has released its final “Strategy to Reduce Lead Exposures and Disparities in U.S. Communities.”  The first agency-wide lead strategy seeks to reduce lead exposure and related health risks in communities. It advances the administration’s Lead Pipe and Paint Action Plan, which calls for replacing 100 percent of the nation’s lead pipes and service lines (LSLs) over the next ten years while reaffirming a commitment to environmental justice by prioritizing communities with disparities. The estimated 6 to 10 million LSLs across the country are the primary source of lead contamination to drinking water in households where they remain. The multi-faceted strategy is supported by investments from the Bipartisan Infrastructure Law, including $15 billion in dedicated funds for LSL replacement through the DWSRF.  There is no state match requirement for these funds, and 49 percent of the money will be provided to communities as grants or loans with repayment forgiveness. States may also use the additional $11.7 billion in general DWSRF funds appropriated through the BIL to identify, plan, design, and replace LSLs.  EPA strongly encourages states to fund the private portion of service line replacements at no additional cost to the homeowner. The plan also provides funding for lead testing and remediation activities for schools. The agency is currently working to submit a proposal to improve its Lead and Copper Rule (LCR) by the end of the year.

Senators Richard Blumenthal (D-CT), Dick Durbin (D-IL), Tammy Duckworth (D-IL), and 12 of their colleagues sent a letter last week to EPA Administrator Michael Regan, commending the agency for the steps it has taken to develop and implement the Biden Administration’s Lead Pipe and Paint Action Plan and pledging their full support for aggressive action to reduce lead in drinking water. The Senators emphasized that EPA must strengthen and enforce the LCR by the end of 2023 to meet this goal. The Senators also support President Biden’s request for $45 billion in federal funding to reach the 100 percent replacement goal.