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Both chambers are in recess until lawmakers return on April 17.
The most important legislative items for Congress to address are the debt limit, the farm bill reauthorization, and the Federal Aviation Administration (FAA) reauthorization.
Debt limit discussions could serve as the first major legislative item to receive consideration on Capitol Hill. Regarding the farm bill and FAA reauthorizations, both issues have received significant Congressional attention. Committees of jurisdiction have held multiple hearings on the reauthorizations with significant implications for local governments. Currently, lawmakers are drafting bills for both reauthorizations, and many expect the text from the committees in the upcoming months. Major provisions of the reauthorizations will expire on September 30, 2023.
In the background of the reauthorization, the Senate has yet to approve a leader of the administration after President Biden’s first choice Phil Washington, CEO of the Denver International Airport, withdrew his name for consideration after strong opposition from Republicans and non-commitments from several Democrats. The White House expects to nominate someone within the next few weeks, starting a nomination process that will take months. That person will be responsible for overseeing any legislation passed regarding an FAA reauthorization.
Congress voted to end the COVID-19 National Emergency on March 29. The effective date for the termination of the National Emergency is today. The vote carries implications for funding for many local governments through the State and Local Fiscal Recovery Funds (SLFRF). Today, the Department of Treasury released FAQ #4.11, outlining how the end of the national emergency affects SLFRF funds. Here are updates provided by Treasury:
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Premium Pay: Generally speaking, recipients will be able to continue to make investments using SLFRF funds except for projects in the premium pay category. With the end of the COVID-19 National Emergency, essential workers are no longer eligible to receive premium pay following the April 10 effective date.
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Public Health and Negative Economic Impacts: Recipients may continue to support and expand the workforce, including by helping impacted workers enter in-demand careers, such as in health care and childcare. Recipients may also use SLFRF funds to build public sector capacity, including hiring public sector workers and providing retention incentives.
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Revenue Loss: The calculation of the revenue loss formula will not change by the end of the National Emergency. How recipients claim up to $10 million in loss is not affected.
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Water/Sewer/Broadband: This category is not impacted by the end of the National Emergency.
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