11/6/2024
What’s Ahead in Washington
Former President Donald Trump will be returning to the White House. With Republicans gaining control of the White House, Senate, and potentially maintaining the majority in the House of Representatives, policy proposals that were announced on the campaign trail are anticipated to take up much of the oxygen in 2025.
New Leadership on the Hill
With the new shift in power, there are several key internal races to watch. Both the Senate and the House of Representatives are set to hold leadership elections on November 13th.
All eyes are on the Senate for who will succeed Mitch McConnell (R-KY), who is the longest serving Senate leader in history. The top contenders are Texas Senator John Cornyn, John Thune from South Dakota, and Rick Scott from Florida.
With Senator Ted Cruz’s reelection victory and the Republican’s regaining control of the Senate, Cruz is on the path to become the Chairman of the Senate Commerce, Science and Transportation Committee, which has jurisdiction over U.S. highways, aviation, shipping, and rail, as well as Artificial Intelligence, and technology policy.
Several key Committee Chair positions are up for grabs, including the House Financial Services Committee, which has jurisdiction over banks, securities and exchanges, and financial aid to industry to name a few. Also in need of a new Chair is the House Energy & Commerce Committee which has jurisdiction over U.S. energy policy, telecommunications, public and private health insurance such as Medicare and Medicaid, and the 340B drug discount program.
Who ends up at the helm of leadership and these committees will shape the agenda for policy in 2025.
Lame Duck Session
Congress will return to a gridlocked Washington next week with a big to-do list to address before the end of the year.
Government funding is set to expire on December 20, 2024 and Congress will have to pass a new appropriations bill or extend current funding to a future date to avoid a government shutdown.
The National Defense Authorization Act (NDAA) is another priority reauthorization bill that is authorized annually. The NDAA provides the defense industry and the military with updated authorizations to keep up with international affairs and address potential new threats to the U.S.
2025
Tax policy is anticipated to be top of mind for lawmakers, with some already naming 2025 the “Super Bowl of Tax.” One of President Trump’s signature bills during his administration was the Tax Cuts and Jobs Act of 2017, which is set to expire in 2025 without congressional action.
In addition to individual tax provisions, this tax reform law included major business tax provisions including research and development expensing, 100% bonus depreciation, and the deductibility of interest expenses from earnings before interest, taxes, depreciation, and amortization (known as “EBITDA”). It’s unclear whether the new administration will opt to make this Act permanent or seek to enact a new bill.
In addition to tax, President Trump has been vocal on trade and tariff reform, regulation, and security issues.
