September 15, 2022

The House and Senate were both in session this week – the first time the two chambers have been in at the same time since late July. On September 14, the House overwhelmingly approved legislation – the Expediting Disaster Recovery Act (H.R. 5774) – that would provide FEMA with expanded flexibility to address unmet needs following a disaster. Subject to appropriations, funding would be authorized for home repair and rebuilding assistance, families who cannot access sufficient assistance from other sources, and certain post-disaster economic and business activities.

Earlier in the week, House lawmakers approved a separate disaster-related measure – the Wildfire Recovery Act (H.R. 1066) – that would increase flexibility within the Fire Management Assistance Grant (FMAG) program, which is intended to help communities recover from wildfire damage. Specifically, H.R. 1066 would allow for an increase above the current 75 percent federal cost share when a wildfire reaches a qualifying threshold. It should be noted that the text of the Wildfire Recovery Act was included as part of a comprehensive wildfire and drought package (H.R. 5118) that the House approved on July 29th.

In other developments, a tentative agreement was reached this week to avert a national railroad strike that was set to begin on Friday. The deal between the nation’s freight carriers and 13 of its unions – negotiated with the help of the Biden administration – reportedly addresses demands made by union leaders. The agreement now heads to rank-and-file union members for a ratification vote. While the vote is tallied, workers have agreed not to strike.

Outlook for the Congressional Pre-Election Work Period

The House is scheduled to be in session for the next two weeks and will adjourn following floor votes on September 30th. Ahead of the midterm elections, lawmakers will use the entire month of October and the early part of November to campaign. The Senate has set aside an additional two weeks of floor time in October, but there are rumors that the upper chamber may give that time back. During this short pre-election work period, there may be action on the following legislative issues:

Federal Spending for Fiscal Year 2023 – Congress has yet to approve any of the 12 annual spending bills for the fiscal year that begins on October 1. With only 15 days remaining before current funding expires, the House and Senate must come to an agreement on a Continuing Resolution (CR). Congressional leaders are currently in discussions on a CR that would run through December 16th. With the chair and ranking member of the Senate Appropriations Committee retiring at the end of the year, there will be a strong push to get an omnibus spending package done during the post-election lame-duck session.

Permitting Reform – As part of an agreement with Senator Joe Manchin (D-WV) on the Inflation Reduction Act, Majority Leader Chuck Schumer (D-NY) agreed to hold a vote on a bill reforming the federal permitting process. While there is no legislative text on the proposal, Senator Manchin has released an outline of provisions he would like to see addressed. While there is talk of attaching the Manchin proposal to the CR, there is also significant opposition to such a move from progressive members of Congress. In fact, more than 70 House Democrats have signed on to a letter opposing the inclusion of the permitting language in the CR.

National Flood Insurance Program – The current authorization of the National Flood Insurance Program (NFIP), which provides insurance coverage to property owners for damages and losses due to catastrophic flooding, is set to expire on September 30th. It’s widely expected that a short-term extension of the program will be included as part of a forthcoming CR.

Supplemental Funding Request – The White House has requested $47 billion in emergency funding for Ukraine, COVID-19 preparedness, Monkeypox, and natural disaster recovery. While Republicans generally support additional funding to bolster FEMA’s disaster relief fund and aid to Ukraine, they continue to insist that Democrats repurpose unspent funding from the American Rescue Plan Act (ARPA) to cover additional costs associated with COVID-19 and Monkeypox.

Cannabis Banking – Prior to the August recess, Senate Majority Leader Schumer unveiled a comprehensive cannabis proposal – the Cannabis Administration and Opportunity Act (CAOA) – that would legalize and regulate the drug at the federal level. While the bill does not have the necessary support to advance in the Senate, some incremental reforms proposed in the measure are likely to be incorporated into a separate cannabis banking proposal – the SAFE Banking Act (H.R. 1996; S. 910) – that would help state-legal cannabis and ancillary businesses gain improved access to financial services.

Biden Administration Officially Overturns Trump Administration Public Charge Rule

Last week, the Biden administration published a final rule on public charge overturning the Trump administration’s proposal to further restrict the ability of legal immigrants to change their status based on their participation in federal programs. While federal courts indefinitely delayed the rule to expand the number of programs immigration officials would have had to consider for public charge purposes, the Biden administration had to go through the regulatory process to nullify it. The Trump rule would have penalized green card applicants for using non-cash public assistance programs, including the Supplemental Nutrition Assistance Program, Medicaid or housing benefits.