Congress Scrambles to Avoid Shutdown as Funding Deadline Nears
Members of Congress returned to Washington this week after a lengthy recess. As we have noted, the priority is to pass a federal government funding resolution that will keep government operational past September 30. House Speaker Mike Johnson (R-LA) had intended on passing a Continuing Resolution (CR) this week, but due to opposition from both Democrats and Republicans around aspects of the package, the measure was pulled from consideration.
Senate Majority at Stake as Montana Race Leans Republican
On the politics front, the Cook Political Report changed its rating for the Senate race in Montana from “toss up” to “lean Republican.” Senator Jon Tester (D-MT) is the incumbent and has held the seat since 2006. This rating change is a significant development as it suggests that Republicans are likely to take back control of the upper chamber. Currently Democrats have a one seat majority (51D-49 R). However, with the retirement of Senator Joe Manchin (D-WV), the Mountain state open seat is certain to flip to Republican as Gov. Jim Justice leads his Democrat challenger by over 30 points in the polls. This leaves the upper chamber essentially tied going into the election.
However, Senator Tester is very likable and has proven to be the rare Democrat that wins elections in a red state. Recall in the last cycle, pundits were writing Senator Susan Collins’s (R-ME) political obituary a month out from election day when she was trailing her challenger by a significant margin. But as it stands a little less than two months from election day, Republicans are favored to take control of the Senate, with Democrats currently trending toward taking the House. The Presidential election is a jump ball.
Tax Credit for Workforce Training Moves Forward in Congress
On Wednesday, the House Ways & Means Committee marked up and passed a package of bills including one measure that seeks to promote workforce development. The legislation, H.R. 9461 sponsored by Rep. Lloyd Smucker (R-PA), authorizes an income tax credit for individuals that contribute to workforce development and apprenticeship training programs. Eligible organizations receiving contributions must provide services defined in the Workforce Innovation and Opportunity Act (WIOA) – including occupational skills training, on-the-job training, skills upgrading and retraining, entrepreneurial training, and adult education and literacy activities. The credit would max out at the lesser of either $150,000 or 25 percent of a taxpayer’s liability. The bill was reported from committee on a 22-15 vote.
This legislation builds on action taken by the committee in July, when the Ways and Means Committee marked up legislation that expanded 529 accounts to help parents save for their child’s education and strengthen workforce opportunities for students wishing to learn a skill or trade.
Port Strike Threatens Supply Chain as Deadline for Agreement Looms
Businesses up and down the supply chain are following developments closely on the looming strike by workers at all maritime container ports along the East and Gulf Coasts. By way of background, the current Master Contract between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) is set to expire September 30. Unfortunately, negotiations on a new contract are at a stalemate due to proposed wage increases for union employees and the adoption of automated technologies at ports. The parties are talking, but little progress on a final deal has been made.
