By: National Special Districts Coalition
Both the House and Senate are in session this week. The House began its week Monday afternoon with a slate of non-controversial bills on the suspension calendar, which require two-thirds majority for passage. Later in the week, the Chamber is expected to consider a bipartisan, bicameral tax package, H.R. 7024, which the House Ways and Means Committee overwhelmingly approved on January 19th.
The measure – known as the Tax Relief for American Families and Workers Act – proposes to expand the Child Tax Credit (CTC) in exchange for a handful of business tax benefits. On the housing front, H.R. 7024 would increase the state housing credits under the Low-Income Housing Tax Credit (LIHTC). Pursuant to the legislation, the LIHTC ceiling would increase by 12.5 percent (up from 9 percent) through Fiscal Year 2025, allowing states to allocate more credits for affordable housing projects. Finally, the measure includes a provision that would exempt all wildfire relief payments (since 2020) from federal income taxes. This includes a tax exemption for emotional distress, lost wages, legal fees, and additional living expenses.
The Senate returns on Tuesday afternoon, and all eyes will be on a potential border security and immigration package that could be released in the coming days. It should be noted that these talks are linked to efforts to advance the Biden Administration’s foreign aid package for Ukraine, Israel, Taiwan, and others.
FY2024 Spending Talks Inch Forward
Late last week, House and Senate appropriators reached a deal on spending totals for all 12 funding bills, clearing another key hurdle in the FY24 appropriations process. While Senate Majority Leader Chuck Schumer, D-N.Y., and House Speaker Mike Johnson, R-La., announced a budget framework earlier this month, there was still a question about how much funding would be available for individual spending measures. With topline figures in place, lawmakers can now begin to hash out the finer policy and funding points of each individual bill. Appropriators will need to move quickly as the first set of spending bills is set to expire on March 1.
Relevant Hearings and Markups
House Transportation and Infrastructure – On Wednesday morning, the full committee will meet to consider four bills, including NSDC-supported legislation – the Reducing Regulatory Burdens Act (H.R. 5089) – that would allow mosquito and vector control agencies to apply pesticides approved for safe use under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) without seeking a National Pollution Discharge Elimination System, or Section 402, permit prior to application into a navigable waterway. The bill would require these pesticides to be applied in compliance with FIFRA rules. NSDC sent a letter to Transportation and Infrastructure Committee Chairman Sam Graves, R-Mo., and Ranking Member Rick Larsen, D-Ariz., a letter on Monday, January 29, urging support and passage of the bill.
More details on the T&I markup can be accessed here.
House Energy and Commerce – On Wednesday afternoon, the Subcommittee on Environment, Manufacturing, and Critical Materials will hold a hearing entitled, “Ensuring the Cybersecurity of America’s Drinking Water Systems.” Additional information on the hearing can be found here.