To: Tim Brink / Jim Gaffney / Catie Scott s1

TO: TIM BRINK / JIM GAFFNEY / CATIE SCOTT FR: MICHAEL OSCAR DT: 5/17/18 RE: CONGRESSIONAL UPDATE This Week in Congress: On Monday night, Senate Majority Leader McConnell announced that the senate will not proceed on their proposed healthcare legislation. The chamber will now focus on dismantling the 2010 health care law. Meanwhile, the House debated President Trump’s plan to privatize air-traffic control. Currently, the Senate and Democrats in both chambers remain opposed to the proposal, a plan sponsored by Transportation Committee Chairman Bill Shuster would reauthorize the Federal Aviation Administration for six years while transferring the country’s air-navigation system to a private corporation overseen by a board of governors. Also, the bill seeks to integrate drones into U.S. airspace, ban e-cigarettes on flights, and includes consumer protections, in response to public outrage after a man was violently dragged from a flight this year. Also, the House voted on a series of energy bills aimed at spurring the construction of cross-border energy infrastructure with Mexico and Canada, simplifying the review of natural-gas pipelines, and slowing the implementation of federal ozone regulations.

HEALTHCARE (Senate Version 3): On Monday night, Senate Majority Leader McConnell announced that the senate will not proceed on their proposed healthcare legislation. Instead, he pledged the chamber will now focus on dismantling the 2010 health care law. McConnell’s decision came after GOP Sens. Lee (UT) and Moran (KS) said they did not support the latest Senate healthcare draft and would not vote for a motion to proceed. Sens. Lee and Moran joined Paul (KY) and Collins (ME) in opposition to the procedural motion, leaving McConnell without the votes needed to move forward on the Senate bill. McConnell said the Senate will now try to take up the House-passed healthcare bill (HR 1628) and amend it with legislation the Senate supported in 2015 to repeal the 2010 health care law. The amendment would add "a two-year delay to provide for a stable transition period to a patient-centered health care system that gives Americans access to quality, affordable care.” However, at least 50 of the 52 GOP senators would need to vote on the motion to proceed to the House bill and McConnell did not say when that vote would occur.

OMNIBUS PACKAGE: On Monday night, House Republicans were polling members asking if they would back a 12-bill omnibus spending package. Republicans also indicated a final decision on whether to move ahead on the omnibus bill will come by the end of this week. Some members expressed concerns about moving such a package because of floor amendments that could dramatically alter the overall package. House Freedom Caucus Chairman Meadows said that the group was undecided on how it would vote for the spending package for a “number of reasons.”

HOUSE BUDGET RESOLUTION: On Monday, the House Budget Committee released its FY18 budget and the budget assumes 2.6 percent economic growth. Those assumptions include the repeal of the Affordable Care Act, welfare and regulatory reform and a host of other conservative priorities. That assumption would generate $1.5T over 10 years.

TRADE (NAFTA): On Monday, the United States Trade Representative (USTR) released the administration’s goals for renegotiating the North American Free Trade Agreement (NAFTA) ahead of talks beginning mid-August between the U.S., Canada, and Mexico. U.S. law required that the administration release

1 the objective thirty days before negotiation talks begin. This is in accordance with trade promotion authority, which allows the White House to submit a completed trade agreement to Congress for a straight up or down vote with no amendments.

WORKER MISCLASSIFICATION: On Monday, July 17th, the Construction Employers of America (CEA) offered the following statement on worker misclassification as it relates to tax reform to the Senate Finance Committee: “Employee misclassification in the construction industry has created an uneven playing field that rewards bad actors while robbing employees of benefits and local jurisdictions of tax revenue. Misclassification occurs when an employer improperly classifies an employee as an independent contractor to gain a competitive advantage at the expense of responsible, lawful companies and depriving employees of benefits they deserve. Companies that deliberately misclassify employees benefit from a competitive advantage over companies that comply with employment laws and regulations. Misclassification allows companies to avoid paying appropriate Social Security and Medicare taxes, federal and state unemployment insurance taxes, and workers compensation premiums. With these ill-gotten savings, companies can scam the system and steal business from their competitors by undercutting project bids. Construction Employers of America, representing seven specialty construction trade associations and 1.5 million employees, urges the Committee to include worker misclassification enforcement as a revenue generator in tax reform legislation. This will bring bad actors to heel and ensure the proper payment of federal taxes.”

WOTUS: This is “Made in America” week at the White House as President Trump tries to focus attention on American products. On Monday, the president will view an exhibition of such products from all 50 states. On Wednesday, he will issue a proclamation on the topic. On Friday, President Trump will hold a credentialing ceremony with newly arrived ambassadors. Also, He will meet with two of the five surviving members of the crew of the battleship Arizona, which was hit at Pearl Harbor.

NORTH AMERICAN SHALE GAS EXPLORATION: Marcellus Shale Gas Production to Increase: On Thursday, July 13, 2017, the International Energy Agency (IEA) projected that the Marcellus Shale gas production will increase 45 percent in the next six years as drillers produce more gas with fewer, more efficient rigs. The IEA’s new report stated “the global natural gas market is undergoing a major transformation driven by new U.S. shale gas suppliers” and that “more than half the expected U.S. production will be used for liquefied natural gas for export. Demand from China will drive much of the global growth.” Per IEA, by 2022, the U.S. “will be on course to challenge Australia and Qatar for global leadership among LNG exporters.”