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Abortion, Gun Safety as Reconciliation Negotiations Continue

June 27, 2022

Three decades-long elemental shifts in policy shook Washington and the nation last week:

The gun legislation, called the Bipartisan Safer Communities Act (S. 2938), was signed into law on Saturday after the Senate passed the legislation in a 55-33 vote and the House passed it in a 234-193 vote. The legislation:

  1. Provides $750 million to states to keep guns out of the hands of individuals who a court determines to be a significant danger to themselves or others;

  2. Adds convicted domestic violence abusers in dating relationships to the National Instant Criminal Background Check System (NICS);

  3. Cracks down on criminals who illegally evade licensing requirements and clarifies which sellers need to register and conduct background checks;

  4. Requires investigation of juvenile and mental health records for gun buyers under 21;

  5. Creates new federal straw (illegal) purchasing offenses;

  6. Expands community behavioral health centers and mental health and supportive services in schools; and

  7. Improves school-wide learning conditions and school safety.

In the Senate, 15 Republicans crossed the aisle to vote with Democrats: Cornyn (TX), Blunt (MO), Burr (NC), Capito (WV), Cassidy (LA), Collins (ME), Ernst (IA), Graham (SC), McConnell (KY), Murkowski (AK), Portman (OH), Romney (UT), Tillis (NC), and Young (IN).

In the House, 14 Republicans crossed the aisle to vote with Democrats: Cheney (WY), Kinzinger (IL), Jacobs (NY), Rice (SC), Chabot (OH), Turner (OH), Gonzalez (OH), Joyce (OH), Gonzales (TX), Katko (NY), Salazar (FL), Upton (MI), Meijer (MI), and Fitzpatrick (PA).

The bill enacts the most significant changes in federal gun laws in nearly 30 years, which Punchbowl News describes as a, “triumph for gun control advocates, whose demands for new restrictions on guns and gun sales previously failed to spur action in Congress despite decades of mass shootings.” Not included in the legislation are mandatory waiting period for gun sales, license requirement to purchase an assault weapon, prohibition on the purchase of a semiautomatic weapon by anyone under 21, universal background checks, or a ban on the sale of large-capacity magazines.

Manchin and Schumer in Active Talks on Budget Reconciliation
Meanwhile, Senator Joe Manchin (D-WV) and Majority Leader Chuck Schumer (D-NY) continue active discussion of a climate, tax reform and prescription drugs bill through budget reconciliation. Sen. Ron Wyden (D-OR), who chairs the tax-focused Finance Committee, told Politico:

“I’m spending a significant amount of time every day on it. I can’t get into all the negotiations. I believe we’re going to get there. Sen. Schumer makes these calls, but I think it’s just really key to get this done before the August break.”

Contact 

Justin Ailes
Managing Director, Government Relations
202.448.0853
jailes@crefc.org
Senator Joe Manchin (D-WV) and Majority Leader Chuck Schumer (D-NY) continue active discussion of a climate, tax reform and prescription drugs bill through budget reconciliation.

In another positive sign for the reconciliation bill, Politico reports that “Manchin and Schumer are going line by line over what a possible deal would look like, building a potential agreement from the ground up rather than rehashing disagreements from last year.”

Yet, Manchin said, “A reconciliation deal between him and Senate Majority Leader Chuck Schumer isn’t particularly close.”

ACA Premium Fix New Hurdle in Reconciliation, and SALT
Another major hurdle tied up in the reconciliation discussions and that could be a major headache for Democrats just weeks before the midterm election are expiring tax credits for health coverage under the Affordable Care Act. If Congress does not act before the end of the year, 13 million Americans will see their health care premiums under the ACA “skyrocket” as much as 50% in January 2023, Punchbowl News reported last week.

Although Democrats expect to be able to insert language in a budget reconciliation package to avert a premium increase for ACA enrollees, Punchbowl News said that after speaking to “a number of people in House and Senate leadership and in the White House and none of them seemed to have any idea where Manchin stood on this issue.”

A Schumer spokesperson said the New York Democrat “strongly supports extending the ACA subsidies but Sen. Manchin asked that this topic not be discussed before other core issues are settled.”

A second potential roadblock to a reconciliation bill could be House Democrats in high-tax states, who insist that such a bill must address the current $10,000 limit on Federal income tax deductions for state and local taxes paid (SALT), which is set to expire at the end of 2025.

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2022 CRE Finance Council. All rights reserved.

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