November 2019 Volume 1

WASHINGTON UPDATE

with Democrats controlling the House and Republicans the Senate (Republicans controlled both the House and Senate in 1998). And we are in the opening throes of a presidential campaign. We’re not saying that the potential exists to pass nearly 150 bills over the next few months, but we want to be optimistic that certain things can now get done despite, and in light of, impeachment. Our optimism also exists out of need, for there is a lot to do. So let’s divide these into two categories—the must do’s and the potentials— and explore the possible. The Must Do’s The Budget. Current funding authority for the operations of the United States government runs out on Nov. 21. Without a passed budget, the government shuts down, just as it did (partially) for 35 days earlier this year. Given that folks see the budget as an overall reflection of our nation’s values, the budget is always controversial; and this round is no exception. The biggest sticking point continues to be funding for a border wall. The White House needs the money to build the wall, and Democrats in Congress do not want to provide those funds. This was the cause of the previous failure to pass a budget and subsequent shutdown. We believe the Democratic-controlled House will drive this train and pass a comprehensive budget before the Nov. 21 deadline (but without wall funding) and dare the Senate to vote it down. (Alternatively, the Senate passes it, thus daring the president to veto). Given that impeachment begins in the House, Democratic House leadership cannot afford to be blamed for shutting down the government. The National Defense Authorization Act (NDAA). For those unfamiliar with the arcane and convoluted budget process, funding for government departments and agencies are first authorized, and then money is appropriated to actually fund them. Think of an authorization as the blueprint for how Congress believes money should be spent on a given agency and the appropriations as the actual transfer of money from the congressional bank to that agency. So, when we discuss the budget and the potential shutdown, we are talking specifically about appropriations. And when it comes to the defense budget, Congress traditionally first must deal with writing and passing that authorization, that blueprint, each year. This bill is called the National Defense Authorization Act. As of this writing, both chambers of Congress have passed their own versions of the NDAA and are working together to iron out differences and create one product they can agree on. The sticking points that have made a deal elusive thus far include funding for a border wall, supply-chain management as it relates to foreign entities who potentially pose a national security threat to the United States, and how to handle the remediation of military installations contaminated with, and the use of items containing, perfluoroalkyl and polyfluoroalkyl chemicals. It is our take that impeachment will not affect this process. The pay scale for our soldiers is determined by this legislation, and it will get done.

Intelligence Authorization. Much like the NDAA, the nation’s intelligence budget must be authorized on an annual basis. It is largely an uncontroversial, yet consequential, bill. Current authorization for the intelligence agencies runs out on Dec. 31. We fully expect this bill to be passed and signed into law. Export-Import Bank. We have written in this space before of the importance of the Export-Import Bank, which is a federally-backed institution to help foreign entities cut deals with U.S. companies to buy high-priced items like airplanes, agricultural equipment and the like. The forging industry is at the vanguard of helping these U.S. companies produce the materials needed to make this heavy equipment. For decades, the Export-Import Bank operated without controversy. It has only been in the past five years that certain members of Congress have given to calling the bank’s mission “corporate welfare” and have thrown wrenches in its ability to operate. However, we’ve seen some thawing in this posture and believeprogress is beingmade tokeep it operatingproperly. Its current authorization runs out on Nov. 21. We see a reauthorization—and thus, the bank remaining open for business—getting done by then. The Possibles United States Mexico Canada Agreement (USMCA, aka Nafta 2.0). FIA has been very clear on the need to get USMCA done, as the benefits (and consequences) to the forging industry cannot be overstated. FIA has done a fantastic job educating and advocating for this in the halls of Congress. But trade is tricky, political and controversial. Regular readers will remember in the magazine’s last issue that we were skeptical of USMCA’s passage anytime before the 2020 presidential election. However, impeachment now has the potential to change that calculus. First, for background purposes, House Democrats have been working constructively for months with United States Trade Representative Robert Lighthizer to negotiate certain provisions related to enforcement, labor standards, environmental regulations and length of time on data exclusivity for biologic drugs. Feedback from the Democrats working with Ambassador Lighthizer has been positive. As of this writing, no deal has been made, but all parties acknowledge progress. And Democrats have made it clear that impeachment should not be an impediment to this progress. In fact, on Oct. 2, Speaker Pelosi said in a news conference that USMCA and impeachment “have nothing to do with each other.”

FIA MAGAZINE | NOVEMBER 2019 19