U.S. House Remains Rudderless as Jordan Pauses Bid for Speakership
October 19, 2023
Two weeks after Congressman Kevin McCarthy (R-CA) was ousted from House leadership, the lower chamber has yet to elect a new speaker. In the absence of a leader, all legislative action in the House has ground to a halt.
Last week, Majority Leader Steve Scalise (R-LA) dropped his bid for the gavel, once it was clear he did not have the necessary support. With Scalise out, the House Republican caucus nominated Representative Jim Jordan (R-OH) for the post. Jordan, who was endorsed by former President Donald Trump, has also struggled to unite his party. After two failed votes on the House floor, the Ohio congressman announced earlier today that he will pause his bid for the position. Instead, he is expected to back a plan that would give Representative Patrick McHenry (R-NC) – who is currently serving as the temporary speaker – additional powers until early January.
The proposed resolution would broadly grant McHenry the same powers as an elected speaker, but it would only leave him in the role until January 3, 2024. The resolution also specifies that he would not be in the line of presidential succession. While the push to further empower McHenry’s authority has gained some traction among centrists, a number of conservative Republicans have expressed their opposition to such a plan. If an overwhelming majority of GOP lawmakers do not get behind the plan, Republicans may have to rely on Democratic votes. As of this writing, the House Democratic caucus was meeting to discuss whether to support the proposal.
In the wake of the deadly Hamas attacks on October 7, the push for a new speaker has taken on increased importance for some lawmakers. For his part, President Biden is expected to formally request a supplemental war-time funding package from Congress that totals $100 billion. According to reports, the administration will seek $60 billion for Ukraine, with the remaining $40 billion reserved for military aid to Israel and Taiwan, along with resources to fortify the U.S.-Mexico border.
House Panel Holds Hearing on the Status of the Highway Trust Fund
On October 18, the House Transportation and Infrastructure Committee’s Highways and Transit Subcommittee held a hearing entitled “Running on Empty: The Highway Trust Fund.” The panel heard testimony from several witnesses, including Mr. Kris Strickler, the Director of the Oregon Department of Transportation, who was testifying on behalf of the American Association of State Highway and Transportation Officials (AASHTO). A link to the hearing page, including witness testimony, can be found here.
By way of background, the Highway Trust Fund (HTF) finances most federal spending for state highways, local roads, public transit, and highway safety programs. The majority of HTF revenues (84 percent) are from federal taxes on gasoline and diesel fuel, with 14 percent coming from heavy-duty truck-related taxes.
Since 2001, spending from the HTF has exceeded the revenues deposited into the Fund. Beginning in 2008, the Trust Fund has relied on a total of $275 billion in transfers – mainly from the General Fund of the U.S. Treasury – in order to remain solvent. Looking ahead, the HTF is projected to run out of revenue in 2026, when the five-year Infrastructure Investment and Jobs Act (IIJA) is slated to expire.
During his opening statement, the chairman of the subcommittee, Congressman Rick Crawford (R-AK), indicated that there are a number of multifaceted problems that have and continue to contribute to the poor financial health of the HTF. Chairman Crawford noted that, among other things, the purchasing power of fuel taxes – which have remained unchanged since 1993 – has eroded by 55 percent over the last 30 years. At the same time, funding authorized from the HTF for state and local transportation programs has more than tripled. Additionally, Crawford highlighted the fact that more fuel-efficient vehicles and the use of alternative fuel sources have further eroded Trust Fund receipts.
To help address the impending insolvency of the HTF, hearing witnesses offered several potential solutions. For his part, Director Strickler stated that there are a number of technically feasible tax and user-fee options that Congress could consider to provide additional HTF receipts. According to Strickler, three broad categories of revenue-enhancing options for the HTF exist, namely: raising the rate of taxation or fee rates of existing federal revenue streams into the HTF (i.e., motor fuel taxes on gasoline and diesel, user fees on heavy vehicles, and sales tax on trucks, trailers, and truck tires); identifying and creating new federal revenue sources for the HTF, and; redirecting current revenues and potentially increasing the rates from other federal sources into the HTF (i.e., customs duties, income taxes, and other revenues from the General Fund).
It should be noted that all of the witnesses who appeared at the hearing discussed the viability of retaining a user-pay paradigm while transitioning away from motor fuel taxes. The most prevalent idea in this regard is the imposition of a vehicle-miles-traveled (VMT) tax and/or a tax or fee on electric vehicles (EVs). A number of states, including California, have VMT pilot programs in place, with several others enacting permanent, albeit optional and somewhat limited, VMT programs.
Looking ahead, Congress is expected to pair any potential proposals addressing the solvency of the HTF with legislation renewing highway and transit programs as authorized under the IIJA.
IRS Extends Filing Deadline for Most Californians
On October 16, the Internal Revenue Service (IRS) announced that it would further extend the federal filing deadline for residents in all but three California counties (Lassen, Modoc, Shasta). The new deadline for these residents is November 16th. In the wake of last winter’s natural disasters, the normal spring due dates had previously been postponed to October 16th. Additional information on this announcement is available here.