Situational Awareness
The House of Representatives and Senate return to Washington, D.C., for the second session of the 118th Congress. Lawmakers will immediately face two quickly approaching deadlines on federal funding for FY 2024.
Over the weekend, Senate Majority Leader Chuck Schumer (D-N.Y.) and Speaker of the House Mike Johnson (R-La.) reached an agreement on topline numbers for federal spending in FY24, lowering the risk threshold for a possible government shutdown on January 20. The bipartisan deal maintains the $1.59 trillion agreed upon last year in accordance with the Fiscal Responsibility Act. Additionally, the deal would include $16 billion in cuts derived from rescinded COVID-19 relief funds and speeding up $10 billion in scheduled cuts to the IRS. In a move aimed to make the agreement more attractive to conservative lawmakers, lead negotiators scrapped a side deal reached between President Biden and then-Speaker Kevin McCarthy to permit technical budget moves that would have avoided cuts in entitlement programs to meet the June 2023 cap. Full avoidance of a shutdown isn’t guaranteed if lawmakers on both sides of the aisle maintain demands for the inclusion or removal of certain conservative policy riders in the spending bills.
Negotiations on border security and asylum reform in the Senate risk further complicating appropriations talks as House GOP lawmakers double-down on demands that their signature immigration bill— H.R.2—be included in any spending package. The bill would be a non-starter in the Senate. While both sides would prefer to avoid a prolonged government shutdown, Biden administration officials and political observers alike have grown increasingly pessimistic on the chances this scenario can be averted if House Republicans maintain their position on immigration policies.
This week, the House is set to consider a joint disapproval resolution under the Congressional Review Act that would overturn the National Labor Relations Board’s updated standard to determine joint employer status under the National Labor Relations Act. The Senate will meet to consider a handful of executive and judicial nominations
OMB Completes Review of DOL Independent Contractor Rule
The White House Office of Management and Budget (OMB) completed its review of the Department of Labor’s (DOL’s) final rule on independent contractors—the last step before the rule is officially published and goes into effect. As submitted to OMB for official review, the DOL’s proposed rule would change how a worker is determined to be an employee or independent contractor under the Fair Labor Standards Act by reinstating the “totality-of-the-circumstances” analysis of the “economic realities” test. The test is used to determine whether a worker is economically dependent on an employer for work or in business for themselves. OMB determined that the final rule is “Section 3(f)(1) significant,” meaning the rule would have an annual effect on the economy of $200 million or more, or adversely affect “a sector of the economy, productivity, competition, jobs, etc.” OMB didn’t include a publication date for the final rule on its website. NCA will closely monitor and notify members when the rule is made official.
House Ed and Workforce Letter on Julie Su DOL Role
Before the end of the first session of the 118th Congress, Acting Secretary of Labor Julie Su’s nomination was returned to the White House. President Biden will now have to renominate her in 2024—which was signaled as the President’s intention back in December—or nominate a new candidate. Amidst criticism of DOL’s progressive labor agenda, House Committee on Education and Workforce Chair Virginia Foxx (R-Va.) and Subcommittee on Workforce Protections Chair Kevin Kiley (R-Calif.) sent a letter to President Joe Biden requesting that requesting that the White House submit a new nominee to serve as Secretary of Labor and designate a different Acting Secretary of Labor. The letter includes concerns by the two GOP members that Acting Secretary Su has failed to comply with requests for information regarding DOL’s rulemaking process on several high-profile issues, including changes made to overtime requirements and employee status determinations.
Before the end of the first session of the 118th Congress, Acting Secretary of Labor Julie Su’s nomination was returned to the White House. President Biden will now have to renominate her in 2024—which was signaled as the President’s intention back in December—or nominate a new candidate. Amidst criticism of DOL’s progressive labor agenda, House Committee on Education and Workforce Chair Virginia Foxx (R-Va.) and Subcommittee on Workforce Protections Chair Kevin Kiley (R-Calif.) sent a letter to President Joe Biden requesting that requesting that the White House submit a new nominee to serve as Secretary of Labor and designate a different Acting Secretary of Labor. The letter includes concerns by the two GOP members that Acting Secretary Su has failed to comply with requests for information regarding DOL’s rulemaking process on several high-profile issues, including changes made to overtime requirements and employee status determinations.
New Economics Education Session Added to National Club Conference
At the 2024 National Club Conference, April 28-30, Jim Butler, CEO of Club Benchmarking, will present The Economics of Private Clubs in the U.S.: the findings of a new economic impact study jointly commissioned by Club Benchmarking, the National Club Association and the Club Management Association of America. Perhaps the most comprehensive study ever conducted on private clubs, it will provide a clearer picture of how many private clubs exist, how many people they employ, the impact they have on local, state and national economies, and much more. Pre-sale rates expire soon and the Conference is expected to sell out. Reserve your seat at nationalclubconference.org.