May 2019 Volume 1

WASHINGTON UPDATE

Looking Forward: 2019 Washington Update The 116th Congress commenced chaotically on January 3, 2019, with democrats taking control of the United States House of Representatives for the first time since 2010, republicans retaining the Senate, and a partial shutdown of the U.S. government in full swing. A third of President Trump’s cabinet is vacant or filled with acting secretaries, a trade war with China continues, and the Democratic presidential primary seasonwill soon begin. All this will ensure that this new Congress will be quite active andwill merit constant monitoring! The Senate FindingCommonGround Legislative policies where many believe both the Senate and House can find common ground and get bills to the president’s desk include a comprehensive infrastructure package and data privacy regulation legislation. On infrastructure, there is bipartisan agreement that our nation’s roads, bridges and waterways need substantial upgrades. The key will be figuring out how to pay for it. On privacy, recent data breaches, and revelations about how one’s personal data is handled by social media companies and other consumer-oriented platforms and businesses have drawn bipartisan ire, and plenty members of Congress havemade commitments to find a path forward on a national law that gives Americansmore control over their personal data. Though thiswill not bean easy lift, Congress is compelled to act as California has enacted a privacy law that goes into effect on January 1, 2020. ShouldCongress fail toact before this, other states may then feel obligated to pass their own privacy laws, which will make it far harder to pass a federal standard in the future as states will push back against the federal government for trying to preempt them. Global Trade

The Senate will spend much of its time confirming executive and judicial appointments. Majority Leader Mitch McConnel has been very clear that he considers part of his legacy to be reshaping the courts and he has worked hand in glove with the White House on getting judicial vacancies filled. So far, the Trump Administration and the Republican Senate have confirmed nearly 100 circuit and appellate court judges with dozens of vacancies still awaiting action. In addition, there are 330 vacancies in the executive branch for senior roles that require Senate confirmation including six cabinet secretaries and directors. Each confirmation takes time, and to get them over the finish line could come at the expense of legislating in the first quarter of the year. TheHouse Look to the House of Representatives to take up legislation on ethics reform, expanded background checks for gun purchases, voting rights expansion, and an immigration bill to enact the Development, Relief and Education for Alien Minors (DREAM) Act. And with Democrats now in control of the House, it is a smart bet that we will see nearly all the committees aggressively exercise their oversight authority to be a check on the administration. We’ll see hearings on Russian election tampering, the president’s taxes, regulation rollback, the administration’s anti-climate change policies, ethics infractions by various cabinet members, and a host of other issues. What remains to be seen is where the House decides togoon impeachment. ManyWashington prognosticators believe there is little appetite on the part of the Democratic leadership to tackle this politically charged issue, but it is also believed that its fate rests on the results of theMueller investigation.

It remains to be seen at this point where global trade policy is headed. The United States Mexico Canada Agreement (NAFTA 2.0) will likely face a ratification vote in the spring; the 90-day trade “truce” with China ends in March, and thus far there have been no changes to tariff policy on billions of dollars’ worth of products coming into theU.S. from foreignmarkets, including steel, lumber and aluminum. Though the previous congressional leadership was reticent to act on trade, it is not completely out of the question to see this new Congress challenge the president legislatively should enough data show that the trade policies of the Trump Administration are having an adverse effect on our economic output. But make no mistake, should this occur, it will be a battle, for the president is dug in and truly believes that he is winning the trade war and sees no reason to currently change course. All to say, for those who have felt like they were on a roller coaster over the last two years watching Washington operate, prepare for even longer drops, deeper turns and whiplash action. Amidst the craziness, policies with consequencewill be enacted andwewill doour level best toensurewe are there at the vanguardof influence letting our elected representatives know what is best for our employees, our companies and our customers.

FIA MAGAZINE | MAY 2019 7