The House and Senate will meet Monday at 2 p.m. and 3 p.m., respectively.
What to Watch
The House and Senate are in session this week before a two-week state work period, and both chambers have big-ticket items to approve before leaving town.
In the Senate, lawmakers are continuing negotiations over a $10 billion COVID-19 relief package. Sen. Mitt Romney (R-UT), the lead negotiator for Republicans, said he and Democrats have reached an “agreement in principle” on legislation that would be fully offset by, in part, repurposing other COVID-19 relief funds, including those originally designated for shuttered concert venues and theaters.
Senate Majority Leader Chuck Schumer (D-NY) also wants to approve Kentanji Brown Jackson to the U.S. Supreme Court. With support from Sens. Joe Manchin (D-WV) and Susan Collins (R-ME), she is likely to be confirmed.
Both chambers are also expected to soon announce conferees for negotiations to resolve differences between the House and Senate competitiveness packages—the America COMPETES Act and the U.S. Innovation and Competition Act, respectively.
On the Floor
The House will vote on the Restaurant Revitalization Fund Replenishment Act, which would provide an additional $60 billion for the Restaurant Revitalization Fund (RRF). The RRF was established to support restaurants and others in the food and beverage industry in response to COVID-19.
In Committee
House Financial Services Committee
On Tuesday, the Oversight and Investigations Subcommittee will hold a hearing entitled “ An Enduring Legacy: The Role of Financial Institutions in the Horrors of Slavery and the Need for Atonement,” during which the following witnesses will testify:
- Dr. Daina Ramey Berry,(Oliver H. Radkey Regents professor and chair of the department of history, University of Texas at Austin)
- Dr. William A. Darity (Samuel DuBois Cook professor of Public Policy, African and African American studies, economics, and business, Duke University)
- Dr. Sven Beckert (Laird Bell professor of history, Harvard University)
- Nikitra Bailey (senior vice president of public policy, National Fair Housing Alliance)
- Dr. Sarah Federman (assistant professor at the School of Public and International Affairs, University of Baltimore)
In addition to exploring the historical relationship between financial institutions and slavery in the U.S., lawmakers could also explore the use of financial services and financial technology to propagate human trafficking in the modern age.
On Wednesday, the committee will hold a hearing entitled “ The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System,” during which the following witnesses will testify:
- Janet Yellen (secretary, Department of the Treasury)
Multiple topics will likely be discussed during this hearing, including how the U.S. is helping other countries respond financially to the COVID-19 pandemic, what financial tools the U.S. is employing to combat Russian aggression in Ukraine and the outlook for global supply chains and inflationary pressure. Although somewhat outside the scope of this hearing, Secretary Yellen could also face questions about the international tax provisions in President Biden's fiscal year (FY) 2023 budget proposal. She could also be asked to provide an update on the most recent developments with respect to the Inclusive Framework being negotiated through the Organization for Economic Co-operation and Development.
Senate Banking Committee
The committee will hold a hearing on Tuesday entitled “ Keeping Markets Fair: Considering Insider Trading Legislation,” during which the following witnesses will testify:
- Robert Jackson (Pierrepont Family professor of law, New York University School of Law)
- Todd Henderson (Michael Marks professor of law, University of Chicago Law School)
- David Burton (senior fellow in economic policy, Roe Institute for Economic Policy Studies, The Heritage Foundation)
Press reports have alleged the almost 60 members of Congress have been found to violate the Stop Trading on Congressional Knowledge (STOCK) Act, which requires transparency from members about the investments made by them, their spouses and their children. Lawmakers could discuss proposed legislation that would make it more difficult for such violations to occur in the future. For instance, the TRUST in Congress Act (H.R.336), which has strong bipartisan support in the House, would require members of Congress, their spouse and dependents to place investments into a blind trust until they leave Congress.
House Ways and Means Committee
On Wednesday, the committee will hold a hearing entitled “ Overcoming Racism to Advance Economic Opportunity.” No witnesses have been named.
The committee is likely to explore issues within its jurisdiction, such as taxation, that could be leveraged to overcome any potential lingering effects of historical racism. For instance, lawmakers could discuss the president's proposal to tax the unrealized capital gains of wealthy individuals, arguing that minority groups are historically less likely to generate wealth from investments.
Senate Finance Committee
The committee will hold a hearing on Tuesday entitled “ The President's Fiscal Year 2023 Health and Human Services Budget,” during which the following witnesses will testify:
- Xavier Becerra (secretary, Department of Health and Human Services)
On March 28, President Biden unveiled his FY 2023 budget request. Secretary Becerra will testify on the funding proposed for the Department of Health and Human Services (HHS), which include funds for future pandemics, additional vaccines and health equity, among other things. For Brownstein's summary and analysis of the HHS budget proposal, click here.
On Thursday, the committee will hold a hearing entitled “ The IRS, the President's Fiscal Year 2023 Budget and the 2022 Filing Season,” during which the following witnesses will testify:
- Charles Rettig (commissioner, Internal Revenue Service (IRS))
President Biden's FY 2023 budget request contains $14.1 billion for the IRS, a $1.5 billion or a nearly 12% increase over its FY 2022 enacted level. It specifically requests additional resources to improve taxpayer experience, expand customer service outreach to underserved communities, accelerate the development of new digital tools to enable better communication between taxpayers and the IRS and facilitate more effective oversight of high-income and corporate tax returns. Commissioner Rettig is expected to answer questions about how the IRS would use this funding. He is also expected to provide an update on the ongoing tax filing season.
On Wednesday, the committee will hold a confirmation hearing to consider the following nominees:
- Ventris Gibson (director of the Mint, Department of the Treasury)
- Paul Rosen (assistant secretary for investment security, Department of the Treasury)
On Wednesday, the Housing, Transportation and Community Development Subcommittee will hold a hearing entitled “ Advancing Public Transportation in Small Cities and Rural Places under the Bipartisan Infrastructure Law,” during which the following witnesses will testify:
- Ryan Daniel (chief executive officer, St. Cloud Metro Bus)
- Scott Bogren (executive director, Community Transportation Association of America)
- Baruch Feigenbaum (senior managing director, Transportation Policy, Reason Foundation)
The Infrastructure Investment and Jobs Act (IIJA, P.L.117-58) was enacted in November 2021. It contains funding to help small cities and villages provide clean water, restore ports, improve road projects and expand broadband access. Lawmakers are expected to ask how implementation of the IIJA is being realized only months after it was enacted.
TAX AND FINANCE REWIND
In case you missed it…
- President Biden sent his FY 2023 budget request to Congress last week, initiating the next appropriations season only weeks after the previous one concluded. The budget proposed $5.8 trillion in total spending, roughly $200 billion below President Biden's FY 2022 request. While unveiling the budget request, President Biden said it reveals the administration's three spending priorities: (1) fiscal responsibility, (2) safety and security and (3) investments necessary for building a better America. The Brownstein Tax Policy Team has summarized and analyzed the budget request and the cost of key programs, which can be found here.
- The House passed retirement security legislation aimed at making it easier for Americans to save. The Securing a Strong Retirement Act (H.R.2954), also known as “SECURE 2.0,” would promote retirement security by, among other things, providing for the automatic enrollment of employees in certain plans and increasing the age at which participants are required to begin receiving mandatory distributions. The Joint Committee on Taxation released an estimate of the bill this week that revealed it would add $93 million to government coffers. The package now heads to the Senate, where lawmakers are working on their own retirement package. Senate Health, Education, Labor and Pensions (HELP) Committee Chair Patty Murray (D-WA) is, for example, already working with Senate HELP Committee Ranking Member Richard Burr (R-NC), who also sits on the Senate Finance Committee, on a package she aims to move “later this spring.”
UPCOMING ACTIVITY
Below is a complete list of all tax and financial services events in Congress, the administration and private sector for the upcoming week.
Congress
Tuesday, April 5
Senate Budget Committee
Corporate Profits are Soaring as Prices Rise: Are Corporate Greed and Profiteering Fueling Inflation?
Thursday, April 7
House Administration Committee
Examining Stock Trading Reforms for Congress
Administration
Wednesday, April 6
Consumer Financial Protection Bureau
Consumer Advisory Board Meeting
Thursday, April 7
Treasury Department
Financial Research Advisory Committee Meeting
Consumer Financial Protection Bureau
Credit Union Advisory Council Meeting
Private Sector
Tuesday, April 5
Peterson Institute for International Economics
Fiscal Policy Under Low Interest Rates
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