One of my favorite song lyrics to quote when asked about the status of major legislation in Congress is from the song “Roadhouse Blues” by The Doors: “The future’s uncertain and the end is always near.” I can think of no better description of the current situation in Congress. They are trying to simultaneously fund the government, increase the national debt limit, pass a trillion-dollar infrastructure package and a $3.5 trillion reconciliation bill touching nearly every aspect of Americans’ lives. At the moment, how they accomplish all of this is uncertain, but I know, whatever the result, the end is near.
Every year, Congress must pass appropriations bills to fund every facet of the federal government’s operations by September 30th. And with very few exceptions, they usually pass a continuing resolution to give themselves more time. Such is the case this year; but in addition to that, the national debt ceiling must be raised or the federal government will default on some of its debt obligations. The United States is the only developed nation with such a mechanism and it has been a feature of the federal budget process since 1917. In 1979, Congress adopted a rule known as the “Gephardt Rule” that automatically raised the debt ceiling when Congress adopted a budget. This rule was repealed in 1995 and unfortunately it has become more and more political ever since. Now, Congress looks to be heading for a continuing resolution expiring in December and a debt ceiling suspension until December of 2022, thus postponing another increase until after the mid-term elections.
The $3.5 trillion reconciliation package and $1.2 trillion infrastructure package are separate measures, but due to posturing and ultimatums, they are inextricably linked. Progressives in the House Democratic Caucus have vowed to vote against the reconciliation and infrastructure packages if their demands are not met for a number of legislative priorities and sequencing of passage of the two measures. Some have threatened to take down the infrastructure package, a major priority for most members of Congress, unless or until the reconciliation package has passed both the House and Senate. This brinksmanship has put House Speaker Nancy Pelosi (D-Calif.) in a tough spot considering Democrats can only lose four votes in the House or any legislation will fail—provided all Republicans vote against a measure, which they have indicated is the case on reconciliation. In short, it’s a legislative demolition derby. We know every car except one will be knocked out, but we don’t know which ones until we have a winner.
That’s the context of the legislative situation, but the content of reconciliation looks to be ironed out and there are provisions within it that could affect the club community—beyond the tax provisions affecting those with incomes above $400,000 a year. The package contains a provision that would require employers with more than five employees to automatically enroll their workers in a 401(k) or IRA with a six percent withholding the first year and ratcheting up thereafter. Employers would be penalized $10 per day for each employee not automatically enrolled. Employees do have the option to not participate in the program. In addition, the bill increases penalties for violations under the National Labor Relations Act for anti-union practices, such as retaliation for union organizing and captive audience meetings. Penalties would also be increased under the Fair Labor Standards Act for overtime violations and under the Occupational Safety and Health Act.
The regulatory landscape continues to shift as well with efforts by the Biden Administration to repeal several Trump-era rules of interest to the club community. For example, the Department of Labor is set to repeal the joint-employer standard and the Navigable Waters Protection Rule. Both rules were supported by the National Club Association when they were written and adopted under the Trump Administration. In addition, under direction from the White House, the Occupational Safety and Health Administration is about to embark on the process of developing a rule to address worker exposure to heat, both outdoors and indoors.
The National Club Association is working with legislators and regulators to ensure the voice of the private club community is heard here in Washington and we encourage all our members to reach out to their representatives and senators to let them know how the policies they consider affect their day-to-day operations. As ever, if you would like additional information, please feel free to contact me at [email protected].
Joe Trauger is NCA’s VP of Government Relations.