House and Senate Action
The House and Senate both gaveled into session on Monday, kicking off the final two weeks of the 118th Congress. The lower chamber will consider a slate of noncontroversial bills on the suspension calendar. Notably, this includes several pieces of legislation that address disaster response, including NSDC-endorsed legislation (H.R. 7671) that would enable grant recipients to spread available management funds across all open disasters rather than limiting expenditures to a single disaster. It also would help streamline the overall fund disbursement and disaster close-out process from the local level upward. H.R. 7671 was approved by voice vote on Monday afternoon and is now pending before the Senate. The lower chamber also approved the FEMA Loan Interest Payment Relief Act (H.R. 2672), which would ensure that interest incurred on loans for FEMA-eligible projects is, in fact, a reimbursable expense. The full House agenda can be accessed here.
Across Capitol Hill, the Senate returned to action on Monday as well, and Democratic leaders will continue to focus on confirming President Biden’s judicial nominations. The Senate daily schedule is available here.
Congress Poised to Clear Water Resources Development Act
Last week, House and Senate leaders announced a final agreement on a new two-year reauthorization of the Water Resources Development Act (WRDA). The measure, which Congress typically renews on a biennial basis, authorizes flood control, port, navigation, ecosystem restoration, and other critical water infrastructure projects under the purview of the U.S. Army Corps of Engineers (Corps).
The final WRDA bill (S. 4367) is slated to be voted on by the full House later today, with Senate passage expected later this week. A section-by-section analysis of the final agreement can be found here.
Upon enactment, this year’s WRDA package will authorize 162 new feasibility studies for various flood risk management, ecosystem restoration, and water supply projects across the nation. S. 4367 also authorizes nearly 200 environmental infrastructure projects in 31 states and provides the Corps with authority to construct 21 projects that have completed technical review and are recommended by the Chief of Engineers.
Notably, the final WRDA bill includes several provisions that are unrelated to the Corps and its mission, including a long-awaited reauthorization of the U.S. Department of Commerce’s Economic Development Administration (EDA). The bill includes provisions aimed at improving and reforming to EDA’s core programs, including those addressing disaster preparedness and mitigation, workforce development, broadband expansion, small business support, and rural community development.
Congress Sends Disaster Tax Relief Measure to President’s Desk
On December 4, the Senate gave final approval to legislation – the Federal Disaster Tax Relief Act (H.R. 5863) – that will deliver significant tax relief to natural disaster victims. The legislation introduces a special above-the-line deduction for personal casualty losses, allowing victims to claim these losses even if they do not itemize deductions. It also eliminates the requirement that losses must exceed 10 percent of an individual’s income to qualify for the deduction. This assistance will be available retroactively to victims of disasters declared after 2019. Additionally, the bill includes provisions specifically benefiting wildfire victims in California, exempting them from federal income tax on disaster relief and PG&E settlement payments. This exemption applies retroactively to those affected by qualified wildfire disasters dating back to 2014. The measure now heads to the president’s desk for his signature.
Senate Passes Bill to Reauthorize National Earthquake Hazards Reduction Program
Last week, the Senate unanimously approved bipartisan legislation (S. 3606), sponsored by Senators Alex Padilla (D-CA) and Lisa Murkowski (R-AK), that would reauthorize the National Earthquake Hazards Reduction Program (NEHRP) through FY 2028. The bill would authorize approximately $175 million annually across the four federal agencies responsible for long-term earthquake risk reduction. The funding would support research, development and implementation activities related to earthquake safety and risk reduction. Additionally, the legislation would direct state and local entities to inventory high-risk buildings and structures. It also seeks to improve mitigation for earthquake-connected hazards.
Lawmakers Reach Bipartisan Compromise on the National Defense Authorization Act
This Saturday, after weeks of negotiations, House and Senate Armed Services Committee leaders unveiled compromise legislation (H.R. 5009) to reauthorize the annual National Defense Authorization Act (NDAA). Despite a bipartisan push for a higher top-line spending level, the final bill remains within the $895 billion defense funding cap imposed by 2023 Fiscal Responsibility Act (FRA). While most controversial issues were left on the cutting room floor, the measure does include language that prohibits some medical treatments for transgender children on the military’s TRICARE health program. Consequently, several Democratic members have threatened to derail the bill when it arrives on the floor for an expected vote next week.
Incoming Senate Majority Leader Outlines 2025 Priorities
Incoming Senate Majority Leader John Thune (R-SD) recently offered a glimpse of his party’s legislative priorities for the new year. Senator Thune’s ambitious early agenda centers on two major bills that he hopes to advance using the filibuster-proof reconciliation process. The first measure, which Thune aims to send to the White House within the first 30 days of President-elect Trump’s term, focuses on border security, energy policy, and national defense. The second bill, expected later in the year, would extend the Trump-era tax cuts. While House Speaker Johnson has voiced support for Thune’s plan, the proposal is already facing criticism within Republican ranks. It should be noted that Senator Thune’s early focus on border and immigration reform has prompted Senate Democrats to urge the Biden administration to take preemptive action before Trump takes office. For example, Senator Padilla, along with a number of his colleagues, recently called on the White House to expand and extend Temporary Protected Status (TPS) for migrants and accelerate the processing of Deferred Action for Childhood Arrivals (DACA) renewals to safeguard vulnerable populations.
Relevant Hearings and Markups
Senate Judiciary Committee: On Thursday, the committee will consider two measures, including a bill (S. 1306) to reauthorize the Community Oriented Policing Services grant program through FY2029. More details can be found here.
House Oversight and Accountability Committee: On Tuesday, the committee will host an oversight hearing to examine the U.S. Postal Service’s (USPS) finances, performance, and ongoing efforts to modernize operations. In addition, lawmakers are expected to receive an update from Postmaster General Louis DeJoy on the Postal Service’s plan to improve savings, efficiency, and service. More information can be found here.
House Budget Committee: On Wednesday, the committee will hold a hearing entitled “Sounding the Alarm: Pathways and Possible Solutions to the U.S. Fiscal Crisis.” More details can be found here.
Senate Commerce Committee: On Wednesday, the Subcommittee on Communications, Media, and Broadband will hold a hearing to explore how cybercriminals are infiltrating U.S. telecom systems and how providers and consumer can mitigate cybersecurity risks. More details can be found here.
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