Republican Majority Sets Sights on Swift Policy Overhaul
On Wednesday, Republicans clinched the 218 seats needed for House control, with Democrats holding 208 seats and nine races still uncalled. The GOP majority in the House is expected to be narrow. With Republican control of both chambers of Congress and the White House, the stage is set for the majority to use budget reconciliation to advance their agenda in early 2025. This process was key to passing major legislation like the Affordable Care Act under President Obama, the Tax Cuts and Jobs Act under President Trump, and the Inflation Reduction Act under President Biden. Reconciliation allows for a simple majority vote in the Senate, bypassing the usual 60-vote threshold required to end debate.
However, reconciliation is constrained by the Byrd Rule, established in 1990 by the late Sen. Robert Byrd (D-W.Va.), which limits measures without a direct budget impact. A thorough “Byrd Bath” review ensures compliance with these rules.
A primary target for budget reconciliation may be the Inflation Reduction Act. The GOP has yet to decide on a full repeal or a more strategic approach, given that IRA-funded projects have created jobs in many rural, conservative districts. One provision of interest is the wood and pellet stove credit, offering a $2,000 tax credit for biomass stove purchases, a benefit for many ABMA members that may now be at risk.
ABMA Territories Poised for Greater Influence with New Leadership Appointments
Senate and House leadership elections took place this week. Sen. John Thune (R-S.D.) won the majority leader race over Sens. John Cornyn (R-Texas) and Rick Scott (R-Fla.). In the House, Speaker Mike Johnson (R-La.) and Majority Leader Steve Scalise (R-La.) were re-elected by the Republican Conference.
On the cabinet front, several key appointments were announced, including the Secretary of Agriculture, a vital role for the LBM sector. One possible pick is Rep. Glenn “GT” Thompson (R-Pa.), a strong ally with deep ties to the LBM industry and a district that includes numerous sawmills and forestry operations.
CTA Delay Gains Traction as Lawmakers and Cabinet Members Voice Opposition
This week, nearly 50 House members signed a letter to Treasury Secretary Janet Yellen and Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki requesting an implementation delay of this obscure, but onerous law. Although the statute and its reporting requirements took effect this year, the letter notes that FinCEN has received only 10 percent of required submissions. This low compliance rate is due to lack of awareness among small business owners and additional time is needed for regulators and other stakeholders to continue their outreach to affected small businesses.
As we have noted in previous reports, this statute is odd in that it only applies to entities with less than $5 million in annual revenue and fewer than 20 employees. In other words, it targets small and medium sized companies that are least equipped to comply. In addition to Congressional pressure, we are hearing that several Cabinet appointments and the Vice President himself are adamantly opposed to the CTA. ABMA will keep you apprised of developments.
