White House Unveils Fiscal Year 2023 Budget Proposal

On March 28, President Biden unveiled his fiscal year 2023 budget request to Congress, which covers broad spending categories and includes projections for major entitlement programs, such as Social Security, Medicare and Medicaid. All told, the administration is proposing $5.8 trillion in mandatory and discretionary spending for the upcoming fiscal year. On the discretionary side of the ledger, the budget request calls for nearly $1.6 trillion in federal spending, a 5.7 percent increase over FY 2022 enacted funding. This includes $769 billion for domestic programs and $813 billion for defense-related programs.

In addition, the request shows a $1 trillion reduction in deficit spending over the coming decade, generated in part by a new proposal – dubbed the “Billionaire Minimum Income Tax” – that would impose a minimum 20 percent tax rate on the income and unrealized capital gains of households worth more than $100 million. If enacted, the tax would generate an estimated $360 billion in new revenue over the next decade. In the coming weeks, appropriators in Congress will begin holding hearings with Cabinet officials to delve further into the budget request.

House Approves Comprehensive Cannabis Reform Legislation

On Friday, the House will consider a comprehensive cannabis reform bill (H.R. 3617). The legislation, entitled the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, would decriminalize cannabis at the federal level and create a pathway for resentencing individuals with prior cannabis-related convictions.

In addition to removing cannabis from the Controlled Substances Act (CSA), the bill would authorize a new federal excise tax on cannabis sales, the proceeds of which would be designated for various programs in communities that have been most impacted by drugs. The tax would start at five percent of the sales price for the first two years and grow to eight percent by Year Five. A percentage of the funding generated by the tax would be reserved for small business loans and grants to help socially and economically disadvantaged individuals participate in the cannabis industry. Grant funding would be available to local governments that take certain steps to minimize barriers to entry for those who qualify, such as waiving application fees. It should be noted that the House approved an earlier iteration of the legislation in the previous Congress.

While the measure is expected to pass the lower chamber with some bipartisan support, there are no immediate plans to consider the legislation in the Senate. For his part, Senate Majority Leader Chuck Schumer (D-NY) has indicated that he will formally introduce his own cannabis reform proposal in the coming weeks. However, there does not appear to be enough support for either proposal to clear the upper chamber.

Finally, a group of Republican lawmakers – led by Congresswoman Nancy Mace (R-SC) – have also proposed a competing bill (H.R. 5977). The measure, entitled the States Reform Act, would remove cannabis from the CSA and regulate it in a similar manner to alcohol. H.R. 5977 would defer to states regarding cannabis prohibition and commercial regulation. In other words, no state or local government would be required to change its current cannabis policies. The legislation also incorporates some of the social equity provisions that have been included in the MORE Act. In addition, the measure would impose a three percent federal excise tax on cannabis products, the revenue of which would support local law enforcement grant programs, small businesses, and mental health initiatives for veterans.

Senate Panel Set to Advance Biden Supreme Court Nominee

Last week, the Senate Judiciary Committee held a series of hearings to consider the nomination of Judge Ketanji Brown Jackson to succeed Justice Stephen Breyer on the Supreme Court. Jackson, who President Biden nominated for the post on February 25, currently sits on the U.S. Court of Appeals for the D.C. Circuit. She has also served as a district court judge, worked as a public defender, and spent time on the U.S. Sentencing Commission.

For their part, Judiciary Committee Democrats highlighted Jackson’s background and credentials during the four-day committee session. GOP lawmakers, on the other hand, criticized Jackson for her rulings in previous cases and inquired about her legal philosophy on controversial issues that could come before the Supreme Court. Jackson also faced a number of contentious questions about her past rulings, with several Republicans accusing her of being too lenient as a judge in sentencing defendants.

Despite GOP opposition to her nomination, Jackson’s confirmation will continue to move forward. Judiciary Committee Chairman Dick Durbin (D-IL) scheduled a vote on Jackson’s nomination earlier this week, though Republicans exercised their right to delay it by one week. The panel is now slated to vote on April 4. Democratic leaders are also hopeful that the full chamber will confirm Jackson by April 9, ahead of a two-week Easter break. It should be noted that Democrats have the votes in the evenly divided Senate to confirm Jackson without Republican support. However, Senator Susan Collins (R-ME) plans to back Jackson, ensuring at least some bipartisan support.

Once confirmed, Judge Ketanji Brown Jackson would become the first Black woman to serve on the nation’s highest Court. She also would be the first justice to have been a public defender and the second to have served on the U.S. Sentencing Commission.

Senate Committee Advances Community Disaster Resilience Zones Act

On March 30, the Senate Homeland Security and Governmental Affairs Committee advanced legislation – the Community Disaster Resilience Zones (CDRZ) Act of 2022 (H.R. 3875) – that would codify FEMA’s National Risk Index (NRI). Under the bill, FEMA would be required to use data from the NRI to identify and designate zones (CDRZs) that are the most vulnerable to natural disasters.

CDRZs would be the 50 census tracts (nationwide) that are assigned the highest individual hazard risk ratings (with stipulations to achieve “geographic balance”). The legislation also includes a requirement that not less than one percent of each state’s most vulnerable census tracts receive the designation. With regard to federal assistance, S. 3875 would authorize an increased federal share for federal resilience or mitigation project grants (financial, technical or other assistance) for CDRZ-designated communities. The measure is now pending before the full Senate. In addition, a House companion bill will likely be introduced in the near future.