NWC’s Federal Policy Spotlight (week of May 17)

NWC’s Federal Policy Spotlight gives a high-level overview of issues coming down the pike including the FY 2022 budget, relevant infrastructure and NFIP hearings and more…

LATEST IN THE NATION’S CAPITAL

Both the U.S. House of Representatives and the U.S. Senate are in session this week. Today, the House has suspension votes on the floor schedule. Bills filed under the suspension calendar are considered non-controversial in nature. Additionally, the House is scheduled to vote on a bipartisan 9/11-type commission to study the Jan. 6 Capitol Hill riot later in the week. The Senate continues to work on the Endless Frontier Act (S. 1260) which aims to strengthen the U.S. leadership in critical and emerging technologies to compete with other nations.

Biden to release full FY2022 budget in late May. On May 13, the White House’s Office of Management and Budget (OMB) announced that the president’s FY2022 budget proposal will be released on May 27. In early April, the administration released a $4.52 trillion “skinny” budget, which only included the president’s top-in numbers for federal agencies. The full budget will include more details about recommendations on how the money should be spent in the various agencies.

ASA (civil works) hearing tentatively scheduled for new week. A rumor is circulating that Michael Connor’s first nomination hearing as the Assistant Secretary of the Army (Civil Works) may happen next week in a Senate Committee. However as of press time the hearing has not been noticed. Conner was nominated by President Biden to serve as ASA (Civil Works). When we get confirmation of this hearing, we will let you know.

Horse trading on infrastructure package begins. After a White House summit last week between the Democrats and Republicans, serious discussions on the potential infrastructure package (or packages) has begun. According to U.S. Department of Transportation Secretary Pete Buttigieg, the purpose of the meeting was to assess common ground to do a bipartisan deal. Both sides are still far apart on the price tag and how to pay for the package. President Biden has offered a $4 trillion plus package and last month the Republicans proposed a $568 billion infrastructure package. Biden proposed increasing corporate tax rates from 21 percent to 28 percent which is a non-starter for Republicans.

Both the House and Senate have hearings this week to dig into how to pay for the infrastructure package. These hearings may offer insights into current negotiations on the infrastructure package:

  • May 18 at 10am ET: The U.S. Senate’s Finance Committee is holding a hearing on “ Funding and Financing Options to Bolster American Infrastructure” on Tuesday, May 18 at 10am ET. Witnesses include representatives from  the Congressional Budget Office, American Association of State Highway and Transportation Officials, National Association of Counties and The Rural Broadband Association.
  • May 19 at 10am ET: The House of Representatives Ways and Means Committee will hold a hearing on “Leveraging the Tax Code for Infrastructure Investment” on Wednesday, May 19 at 10am ET.
  • May 20 at 10am ET: The Senate’s Banking, Housing, and Urban Affairs Committee will hold a hearing on “21st Century Communities: Expanding Opportunity Through Infrastructure Investments” on Thursday, May 20 at 10am ET. Witnesses include Marcia L. Fudge, Secretary of the U.S. Department of Housing and Urban Development and Pete Buttigieg, Secretary of the U.S. Department of Transportation.

Senate committee holds hearing on NFIP reform: On Tuesday, May 18 at 10am ET, the U.S. Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing on Reauthorization of the National Flood Insurance Program (Part 1).  Scheduled witnesses include the Association of State Flood Plain Managers, Pew, New York City Office of Federal Affairs, Taxpayers for Common Sense and International Center for Law & Economics. While NFIP is currently operating under a short-term extension until September 30, 2021, Risk Rating 2.0 is also expected to be discussed. Risk Rating 2.0 is being rolled out nationally starting this year. On October 1, the new pricing rates will kick in for people who buy new flood insurance policies.

According to FEMA, under Risk Rating 2.0, 23% of current policyholders will see insurance premium decreases, 66% of policyholders insurance will go up between $0-$10 a month, 7% of policyholders will see an average of $10-20 per month more and 4% of current policyholders will see an average of $20 or more per month.

FEDERAL AGENCY CORNER

USACE reviews WRDA 2020 implementation comments. USACE is currently combing through the WRDA 2020 implementation comment letters they have received (the public comment period closed on May 7). According to an inside source, 77 letters were submitted through the Federal Register, 80-90 were sent via email and over 700 form letters were sent on a specific study (the form letters will be counted as one letter). USACE is unsure when these letters will be publicly posted, nor do they have a timeline yet for which provisions will be implemented first. Much will be dependent on when Michael Connor is confirmed as ASA (CW) since USACE would also want his feedback on WRDA 2020 implementation priorities.

FEMA seeking public comment on agency’s approach to climate change. The Federal Emergency Management Agency (FEMA) is currently seeking  input from the public on FEMA programs, regulations, and/or policies for the agency to consider revising or revoking after several recent Executive Orders. Comments are due June 21, 2021.

NWC HAPPENINGS

Reminder to register for NWC’s first-ever virtual Regional Spotlight on June 1-2. Even if you are not from California, we encourage you to check out the programming for the Regional Spotlight. We have a number of quality speakers, along with interesting topics scheduled! And, better yet, registration is FREE!

A huge thanks goes out to Sacramento Area Flood Control Agency for making this meeting happen! Additionally, remember to also thank Larsen Wurzel & Associates, Inc. and Trinity River Authority of Texas for their sponsorship!

For more information about the Regional Spotlight and to register, click here. To sponsor, click here.