What Can You Expect From Washington Policymakers In 2022?

With not one, but two winter storms hitting Washington, D.C. and the U.S. House of Representatives still in recess, the nation’s capital was quiet last week. The U.S. Senate reconvened for the second session of the 117th, but cast just two votes (both were regarding a U.S. Department of State nomination).

The first week might be precedent for the next 51. Lawmakers are looking forward to this November’s midterm congressional elections, so it is possible it will be a relatively light policymaking year. The U.S. House, for example, plans to meet only 21 weeks n 2022.

Here are some of the priorities that will take up most of Congress’ time this year:

• Fiscal Year (FY) 2022 and 2023 Spending Bills. Each year, federal lawmakers must approve 12 appropriations bills to provide funding for federal departments and discretionary programs (defense, economic development, education, etc.). Before leaving for the December holidays, lawmakers approved a continuing resolution, or short-term spending bill, for FY 2022 that will keep the U.S. government funded and open until February 18, 2022. If lawmakers cannot agree to a full-year spending deal by then, they will have to pass another short-term bill or a large portion of government operations will shut down. After lawmakers wrap up work on FY 2022 spending, they will turn almost immediately to the FY 2023 budget, which starts October 1, 2022.
• Build Back Better Act. As readers will recall, the U.S. House already has approved its own version of President Biden’s human infrastructure bill, the Build Back Better Act (BBBA). The U.S. Senate has been negotiating its own version since then, and those discussions now appear stalled. Sen. Joe Manchin (D-W.Va.), who announced before the holiday said he would not support the legislation, has not changed his mind and also has confirmed that negotiations have not picked up again. The Senate Finance Committee, which oversees tax policy-writing for the chamber, is trying to rewrite the revenue provisions of the bill. MSCI and the broader business community have opposed the BBBA tax increases that have been discussed so far.
• United States Innovation and Competition Act (USICA). The Senate approved the USICA in June, but the House has not voted yet. This bill aims to improve U.S. competitiveness with China through strategic engagement and federal investments in research and development, manufacturing, and supply chain resiliency. House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Charles Schumer (D-N.Y.) have said the two chambers are working together on a path forward.

The White House and executive branch have some big priorities on the horizon as well, starting with implementation of the Infrastructure Investment and Jobs Act (IIJA) that Congress approved and President Joe Biden signed into law last fall. President Biden has established an Infrastructure Implementation Task Force to be chaired by former New Orleans Mayor Mitch Landrieu. The task force will oversee implementation of the legislation.

Tiber Creek Group, a Washington-based government relations group, has compiled a tracker to help interested parties monitor funding announcements and implementation updates for the IIJA. View the tracker here.

The Biden administration also will likely focus on trade with China.

As Connecting the Dots reported last year, the Office of the U.S. Trade Representative outlined the administration’s approach to trade with China. That strategy promised to raise concerns with China’s non-market policies and practices and to consult and coordinate with allies and partners “who share our strong interest in ensuring that the terms of competition are fair.” Read more about the administration’s pledge here and here.