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What’s Next In Washington? – May 2022 Edition – Government Contracts, Procurement & PPP


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Congress recently returned from its two-week recess with an
extensive to-do list. Between now and the August recess, the House
will be in session for a total of 32 legislative days, and the
Senate will be in for 54 legislative days. With such a short
timeline until the August recess and the start of campaigning for
many Members, Congress and the White House look to quickly
accomplish many of its priorities.

In the month of May, the conference committee will begin to
negotiate the differences between the America COMPETES Act and
USICA. Congress will continue its negotiations on additional COVID
and Ukrainian aid, while appropriators begin to lay the groundwork
on appropriations for the next fiscal year. Finally, Senator Joe
Manchin is leading the charge on a new reconciliation package and a
new climate change package.

See below for greater detail regarding what’s coming in this
month’s edition of What’s Next in Washington?
presented by the Foley & Lardner Federal Public Affairs
team.

  1. Manchin leads the charge on new reconciliation and climate
    change packages

    1. Senator Joe Manchin (D-WV) recently met with Majority Leader
      Chuck Schumer (D-NY) to discuss a new reconciliation package. The
      bill would reform the tax code and a portion of the revenue would
      be allocated to reduce the national deficit in an effort to combat
      inflation.

      1. Manchin has outlined that he would like to increase the
        corporate tax rate from 21% to 25%, raise the top capital gains
        rate from 23.8% to 28%, and close the “carried interest”
        loophole.

      2. Manchin, citing inflation, has indicated that he would like no
        social spending to be included within the reconciliation package,
        including that of paid-family leave and childcare.


    2. Manchin and Republican Lisa Murkowski (R-AK) have also led
      discussions in crafting a new bipartisan package that would take
      key provisions from President Biden’s Build Back Better’s
      climate agenda.

      1. Manchin has stated that the goal of the bill is to reform the
        federal oil and gas leasing process. Additionally, the bill would
        further investment in clean energy and aim to reduce American
        dependence on foreign energy.

      2. Other areas of focus could include that of domestic pipeline
        aid, efforts to bolster production of liquefied natural gas, and
        new tax credits for clean energy.

      3. Through a working group of Senate Democrats and Republicans,
        this new climate package would attempt to replicate the dynamic of
        the Bipartisan Infrastructure Law, which passed the House and
        Senate in 2021 with bipartisan support.  


  2. The conference committee is set for the America COMPETES
    Act/U.S. Innovation and Competition Act

    1. In early April, Congressional leadership announced over 100
      selections for the conference committee to resolve differences
      between the two bills. Stark contrasts remain between the two, most
      notably on issues related to trade, climate change, supply chain,
      research funding, and foreign relations towards China.

      1. To see the full list of conferees, please click here.


    2. Negotiations are set to begin in early May. Lawmakers and
      industry groups have urged Congress to quickly pass this
      legislation.  


  3. Agency budget hearings continue through May as appropriators
    begin discussions on the fiscal year 2023 budget

    1. Following the release of President Biden’s budget in March,
      various heads of federal agencies; including Health & Human
      Services Secretary Xavier Becerra, Environmental Protection Agency
      Administrator Michael Regan, and Secretary of Defense Lloyd Austin,
      have testified on Capitol Hill regarding their respective
      priorities for the next fiscal year. Topics have included pandemic
      relief, climate change regulation, and aid to Ukraine.

      1. Agency heads will continue to testify Congress throughout
        May.


    2. The “Four Corners,” the top appropriators for the
      House and Senate, have begun discussions regarding fiscal year 2023
      appropriations.

    3. House appropriators have made tentative plans to mark up their
      spending bills in mid to late June, potentially setting the stage
      for July floor votes.

      1. Subcommittee markups could take place between June
        13th – 22nd, full committee markups
        could take place between June 22nd
        30th.

      2. Senate Appropriations Chairman Patrick Leahy (D-VT) recently indicated that he hopes to have a deal on
        top-line figures “in the next couple of weeks”.


    4. This will be the last appropriations cycle for Senate
      Appropriations Chairman Leahy and Ranking Member Richard Shelby
      (R-AL), both are retiring at the end of the term. Leahy and Shelby
      have both indicated that they hope to finalize FY2023
      appropriations prior to their departure from Congress.  


  4. Congress continues negotiations on supplemental Ukrainian and
    COVID-19 aid

    1. Prior to the two-week recess in April, a $10 billion COVID-19
      relief package stalled out in the Senate.

      1. Senate Republicans insisted on a vote on Title 42, a Trump-era
        regulation that allowed both the Trump and Biden Administration to
        turn away immigrants at the border due to the public health
        crisis.

      2. The Biden Administration has looked to lift Title 42 on May
        23rd. Following litigation halting the rollback,
        Department of Homeland Security Secretary Alejandro Mayorkas
        unveiled a new plan to reform Title 42 and manage a potential
        migrant surge in May.


    2. Democrats are expected to attach additional Ukrainian aid to a
      supplemental COVID-19 relief package. President Biden has requested
      an additional $33 billion in supplemental funds for Ukraine. The
      Pentagon recently reported that they have nearly exhausted the
      funds that were allocated in March.

      1. Republican lawmakers, including Sen. Mitt Romney (R-UT), have
        stated that they do not want to combine Ukraine and COVID aid, and
        have indicated that they would vote against such a bill.

      2. A major sticking point of the package is that of global
        vaccination funding, the funding has been opposed by Republicans.
        Senate Majority Leader Chuck Schumer has been a major proponent for
        the funding.  


  5. Possible action could occur on several pieces of health
    legislation and regulatory policy in May

    1. User Fee Reauthorization:

      1. User Fee programs for human prescription drugs and biologics,
        medical devices, and generic drugs and biosimilars that were last
        reauthorized under the FDA Reauthorization Act of 2017 are set to
        expire this year on October 1st, 2022 (each has a
        five-year authorization period).

      2. The Senate HELP Committee and the House Energy and Commerce
        Committee held several hearings last month and will continue to
        discuss reauthorization legislation for the Prescription Drug User
        Fee Act (PDUFA), Generic Drug User Fee Amendments (GDUFA),
        Biosimilar User Fee Act (BsUFA), and Medical Device User Fee
        Amendments (MDUFA).

      3. As this is a must-pass piece of legislation, Members have
        already begun discussing possible additional priority regulatory
        policies as riders.


    2. Pandemic and ARPA-H:

      1. Recently, the Senate Health, Education, Labor, and Pensions
        (HELP) Committee voted 20-2 to report the PREVENT Pandemics Act (S.3799) favorably out of committee. The
        legislation includes authorizing language to establish the Advanced
        Research Project Authority for Health (ARPA-H). The legislation
        also works to modernize various aspects of public health, including
        data collection, strengthening the domestic supply chain, and
        providing more accountability for the Centers for Disease Control
        and Prevention (CDC).

        1. You can read more about it here.

        2. The bill will soon be considered, with the intention of passing
          it before the end of the year.


      2. Other major biomedical innovation and pandemic preparedness
        bills in consideration currently include CURES 2.0 (H.R. 6000) and the ARPA-H Act (H.R. 5585) in the House.

        1. Discrepancies remain over where to house ARPA-H, either within
          the National Institute for Health (NIH), or as its own separate
          entity.

        2. At a hearing in late April, Rep. Anna Eshoo (D-CA), chair of
          the House Energy and Commerce Health Subcommittee, said she
          continues to disagree with HHS Secretary Xavier Becerra that ARPA-H
          should be housed within the NIH and report to Becerra. Several
          bipartisan lawmakers on relevant committees agree with Rep.
          Eshoo.


    3. Insulin Cap:

      1. The House recently passed H.R. 6833, a bill that would cap
        monthly insulin costs at $35 for people with insurance. The bill
        passed by a vote of 232-193 in March.

      2. In mid-April, Sens. Jeanne Shaheen (D-NH) and Susan Collins
        (R-ME), along with Reps. Dianna DeGette (D-CO) and Tom Reed (R-NY)
        – the bicameral co-chairs of the Senate and House Diabetes
        Caucuses – unveiled draft legislation aimed at lowering
        insulin costs. The authors have been seeking input on the language
        of the bill and are expected to introduce it soon.


    4. Health Equity:

      1. Late last month, the Biden Administration released a plan to
        ban menthol cigarettes and flavored cigars. HHS Secretary Xavier
        Becerra believes the proposed rules will be a crucial step towards
        advancing health equity and reducing disparities in tobacco use.

        1. The FDA has been delayed in the proposed rules because of
          pushback from Members of Congress and industry. Meanwhile,
          anti-smoking groups sued the agency for taking too long to ban
          menthol.


    5. Mental Health:

      1. Over the course of the last several months, relevant committees
        on both sides of Congress have held hearings to learn more about
        various mental health crises affecting Americans of all ages.

      2. Most recently, the Senate HELP Committee held a hearing focused
        on how the federal government can better support efforts to address
        mental health and substance use disorders. Committee leaders are
        working in a bipartisan fashion to develop more federal support for
        mental health services, including supporting suicide screening and
        prevention, reducing overdose deaths, getting more access for
        substance use disorder treatment, and addressing various barriers
        that make it hard for people to get access to care.

        1. Committee Chairwoman Patty Murray (D-WA) said in her opening
          testimony at a hearing in March that she expects a draft package to be introduced by
          early this summer.


      3. Additionally, the House Energy and Commerce Committee and the
        HELP Committee are currently working to reauthorize several
        Substance Abuse and Mental Health Services Administration programs
        (SAMHSA) that will expire this fall.

      4. The Senate Finance Committee held their third hearing on mental
        health late last month, which focused on the lack of parity of
        treatment and insurance coverage for mental health issues versus
        physical health care. Chairman Ron Wyden (D-OR) noted at a Senate Finance hearing in late
        March that the committee is working on a bipartisan basis to fix
        the parity law by breaking down the financial barriers of care,
        including “ghost networks,” coverage limits, coverage
        loopholes, and stonewalling on payment claims.

You can read the Committee’s recently released report on
this subject here.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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