Situational Awareness
While House Republicans are at Trump Doral for their annual retreat this week, the Senate returns to Capitol Hill to resume consideration of President Trump’s cabinet nominations, including Scott Bessent to be Treasury Secretary. Lawmakers are also expected to invoke cloture to begin consideration of Sean Duffy’s nomination to be Transportation Secretary. At the committee level, members of the Senate Judiciary Committee will vote to advance Pam Bondi’s nomination to be Attorney General, while nomination hearings commence for HHS Secretary-nominee Robert F. Kennedy, Jr., Commerce Secretary-nominee Howard Lutnick and Small Business Administration Administrator-nominee Kelly Loeffler.
Between confirmation votes and responding to President’s flurry of Executive Orders, Senate Democrats are trying to shape their opposition strategy to the Republican trifecta. For instance, Senate Appropriations Ranking Member Patty Murray (D-Wash.) has been the loudest voice amongst her colleagues in criticizing the Trump administration’s pause in the disbursement of federal grant dollars. A new fact sheet issued by Sen. Murray and her committee staff attempts to offer clarity that the president can’t unilaterally withhold or block investments that have been enacted into law—through what’s known as “impoundment.” Political observers this to be a central policy debate on the Hill in coming weeks as appropriators kick off bipartisan negotiations on top-line FY 2025 spending levels.
Trump Appoints Marvin E. Kaplan as NLRB Chairman
Last week, President Trump appointed National Labor Relations Board (NLRB) Member Marvin E. Kaplan as Chair. He replaces former Chair Lauren McFerran, whose term on the NLRB expired last December. Chairman Kaplan has served as a member of the NLRB since August 10, 2017, and his current term is set to expire in August 2025. The NLRB majority is still controlled by the two Democratic members, Gwynne Wilcox and David Prouty. Kaplan would lead the NLRB’s Republican majority if the President’s pending nominees for the two open seats are confirmed by the Senate.
Trump Repeats Pledge on No Tax on Tips
During a rally in Las Vegas this weekend, President Trump told supporters that he remained committed to a promise made to hospitality industry workers while on the campaign trail that his second administration would remove the tax on tips. The comments could be interpreted as a signal to House and Senate Republicans that the proposal remains a top priority for the White House as lawmakers begin to consider what will be included in their tax extenders package. The president is scheduled to meet with House Republicans this week during their annual policy retreat, during which they are expected to discuss their strategy on a single reconciliation package that will incorporate expiring provisions of the Tax Cuts and Jobs Act of 2017 and a variety of border security measures.
Lawmakers in the House and Senate remain divided on the approach to advance the President’s tax and immigration legislative priorities. During a meeting at the White House, both Senate Majority Leader John Thune and Speaker of the House Mike Johnson presented their cases for either “one big, beautiful bill” (Johnson’s preference) or two separate packages (advocated for by Thune). The president has continued to signal his support behind Johnson’s strategy. However, this is a race of who can accomplish what first; if the Senate can pass its own reconciliation package before the House, Johnson could face pressure to put the measure on the House floor for a vote.
ICYMI
NCA files comments on OSHA’s Heat Injury Illness Protection Plan – NCA requested that OSHA refrain from finalizing the overburdensome regulation that would set unworkable heat standards on businesses in comments filed on January 14.
Supreme Court sets lower standard of proof for overtime exemptions – On January 16, the Supreme Court ruled that employers need only show “a preponderance of the evidence” that an employee is exempt from federal overtime rules in order to exempt them from the Fair Labor Standards Act requirements. The alternative burden placed by some circuit courts—clear and convincing evidence—would have been significantly harder for employer to achieve.