Here Are 5 Things We’re Watching in D.C. this Summer
The summer before an election is typically a doldrum for activity coming out of the nation’s capital, but this year may be different. As NABL heads into the summer season, here are a few things we will be tracking:
FY 2023 Appropriations
Prior to the start of the new Fiscal Year on October 1, 2022, Congress must do one of three things: 1) fully appropriate the government by September 30, (historically unlikely); 2) allow the government to fully or partially shutdown, (an unpalatable option a month before an election); or 3) pass a continuing resolution and punt the issue for the post-election season (the most likely option). A year-end spending deal could include tax extenders to reauthorize expiring and expired tax provisions. Adding to the mix—Congress must also extend a waiver of PAYGO rules for previous deficit spending, resulting from passage of the American Rescue Plan Act (ARPA), to prevent additional sequestration of subsidies for certain subsidy and tax credit bonds, including outstanding Build America Bonds (BABs). This issuer advocacy letter, urging Congress to include such a waiver in any FY 2023 spending deal, outlines the issue.
It has been a busy year for Environment, Social, and Governance (or “ESG”) matters across all markets—from the Municipal Securities Rulemaking Board’s request for comment on ESG Practices in the Municipal Market to new proposed disclosure rules from the SEC for corporate issuers. NABL continues tracking the rapidly evolving world and focus on ESG, including the release of the MRSB’s highly anticipated ESG response report due later this summer.
IRS Priority Agenda
The NABL Tax Law Committee submitted our recommendations for the Internal Revenue Service’s (IRS) 2022-2023 priority guidance agenda earlier this month, and we will flag the first release of the IRS proposed agenda when it is released later this summer. The Service also announced fourth quarter last year that electronic filing for Form 8038-CP would come in late 2022. The proposed move comes after COVID-19 related shutdowns resulted in backlogs of paper form submissions. NABL will provide updates for members on the status of this and other relevant moves to electronic filing of IRS forms.
Possible Legislative Movements
Congress continues to make progress on several legislative priorities leading into the campaign season. Work includes a competition bill in conference committee, momentum for a retirement savings bill informally known as SECURE 2.0, and antitrust legislation to place a check on some of the largest tech firms. While none of these packages are shoo-ins, they are among the most likely bills to pass into law before the election. And then there is the unending discussion around Build Back Better.
Negotiations continue at the highest levels. While chances of a large domestic policy agenda bill passing before the election continue to slim, we cannot rule out that possibility. It is also worth noting, that Democrats may continue to push for a limited package targeted at climate change mitigation and federal deficit reduction even after the election in November.
The Incoming 118th Congress
The Governmental Affairs Committee (GAC) began a strategic planning process to prepare NABL for the 118th Congress. Specifically, the Committee hopes to determine how our organization will welcome new members of Congress, educate congressional staffers on our priorities, and build our brand and cohort of municipal bond champions on the Hill.
Want to Learn More? Look for the recording of our Q2 Advocacy Call held 6/29
If you enjoy reading The Wrap, view the Q2 Federal Advocacy Update when you receive the recording hitting your inbox soon. The NABL Governmental Affairs Committee (GAC) and yours truly, Brian Egan, with GAC Chair, Keirston Woods recapped some of the latest legislative and regulatory happenings in D.C. We also answered some very interesting advocacy questions that you might find helpful.
As you saw in NABL News, we have begun planning for The Workshop this October. I hope to see you there, in the meantime, feel free to reach out to me for all things #MuniLand.
Director of Governmental Affairs