Congress wrapped up its business for the summer last week. The House of Representatives and the Senate are now in recess until Sept. 9. Last week, the House passed bipartisan legislation to address interest rates on federal student loans. There was no “stretch IRA” provision in the final student loan bill.
Budget and Debt Limit
When Congress returns, they will address the need to fund the federal government before the end of the fiscal year on Sept. 30 in order to prevent a government shutdown. The Republican-controlled House and the Democrat-controlled Senate are currently far apart on the top line budget number. Nonetheless, it is likely, but not guaranteed, that a short-term funding measure will clear both legislative bodies before the deadline. Should a short-term funding bill be passed, this will push back the budget battle a few weeks to when the debt limit will be reached.
There is considerable uncertainty about how Congress will address both the debt limit and the funding of the federal government, but decisions will have to be made on these fundamental issues in the mid-October to mid-November timeframe.
Tax Reform
Rep. Dave Camp (R-MI) and Sen. Max Baucus (D-MT) are continuing their push to reform the tax code. Last week, they traveled to the Philadelphia area to meet with small business owners to hear their concerns about the complexities in the Code. While Camp flirts with the possibility of running for an open Senate seat in Michigan, Baucus and Sen. Orrin Hatch (R-UT) appear to be charging ahead with the legislative process in the Senate. Now that the Senate Finance Committee has finished collecting letters on tax reform from their Senate colleagues, the next step for Baucus and Hatch is likely a discussion draft of possible tax reform legislation.
Should the Senate Finance Committee actually mark up tax reform legislation in the fall, there is a possibility that consideration of the legislation would be fast-tracked in a must-pass debt limit/budget bill. The committee’s tax extender legislation was included in the fiscal cliff bill last year, and another crisis could be another opportunity for the committee’s work to move forward. The ASPPA GAC team remains closely engaged on this issue, and will continue to monitor legislative developments in the Senate.
Andrew Remo is ASPPA’s Congressional Affairs Manager.
