Washington DC Update – Dec 17 2021

White House Trucking Action Plan Announced

On December 16, 2021, the White House announced a new “Trucking Action Plan” to help add drivers to the U.S. trucking workforce.  According to the White House, the plan will “cut red tape, make it easier for people to get commercial licenses, expand trucking apprenticeships, and launch outreach efforts to recruit new drivers, including by reaching out to veterans…”  The White House took this action in the face of continuing supply chain bottlenecks that are plaguing the economy.

New Rules for Logistic Providers and Whole Distributors of Rx Drugs Under Review

The White House Office of Management and Budget (OMB) is reviewing new FDA rules that will establish federal standards for licensing prescription drug wholesale distributors and third-party logistics providers.  The new rules are required under Drug Supply Chain Security Act (DSCSA) and were supposed to be issued in 2015.  For wholesale distributors, the regulations are supposed to describe how to store and handle prescription drugs, establish and maintain distribution records, furnish a bond or create other security measures.

“Hard Infrastructure” Bill Signed Into Law

The House of Representatives approved the $1.2 trillion bipartisan infrastructure BILL on November 5th.  Thirteen House Republicans joined all but six House Democrats in voting for the measure.  The legislation had already passed the Senate in August, after being negotiated by a bipartisan group of Senators.  President Joe Biden signed the bill into law on November 15th.

About half of the new law’s spending – roughly $550 billion — provides for upgrading roads, bridges, rail, ports, high-speed internet, other hard infrastructure.  The rest of the law funds various programs geared toward energy efficiency, electric vehicles, climate change, and other provisions not typically regarded as “hard” infrastructure.  In August, the Congressional Budget Office (CBO) ESTIMATED that the bill would add $256 billion to the federal deficit over ten years.  The bill’s authors had argued it was fully offset.  Some of the bill’s new spending would be offset through a variety of revenue raising measures, including an extension of highway taxes.  Prior to signing the bill, President Biden released an EXECUTIVE ORDER on implementation, including the creation of a new implementation task force.

“Build Back Better” Still Pending in Congress

At this writing, Democratic leadership in the Senate was still hoping to vote on the President’s “Build Back Better” (BBB) proposal before the Christmas recess, through the prospects of that are looking slim.  The House of Representatives approved its version of the bill last month.  The mammoth bill is projected by the Congressional Budget Office (CBO) to cost $1.7 Trillion over ten years and includes spending on health care, education, childcare, climate change and energy incentives.  The bill also includes approximately $1.4 trillion in individual and corporate tax increases and other revenue raisers, according to CBO.  Senate Republicans oppose the measure and say it will actually increase the federal budget deficit by $3 Trillion over ten years, based on a revised cost estimate that they requested from CBO.

The BBB bill contains many provisions that do not have broad bipartisan support.  Historically, sweeping legislation such as this is approved only when one party has a strong majority in the Congress, or when broad bipartisan support can be achieved.  It seems curious, therefore, that President Biden and Democrats are pressing ahead with such a far-reaching bill with only very narrow majorities in Congress.  While it remains possible that the bill could be approved and become law, the chances of approval seem very much up in the air at this juncture.

OSHA Vaccine Mandates Halted By Courts

Under a recently published regulation, the Biden administration’s Occupational Safety and Health Administration (OSHA) would require employers with 100 or more employees to ensure their workforce was vaccinated against COVID-19, or, in lieu of that, undergo regular testing and wear face masks at work. Under the regulation, the new requirement would go into effect on January 4th. A federal court has halted the requirement for private businesses, though other courts have allowed a separate requirement to stand for healthcare workers in about half of the states. (The U.S. 5th Circuit Court of Appeals blocked the mandate for healthcare workers only in the 24 states that have challenged it in court.) Meanwhile, Republican Senators forced a vote on a measure to end the mandate, which was approved 52-48. But that measure has little chance of passage in the Democratic controlled House of Representatives. The mandate has been strongly opposed by business groups, with many in the trucking industry arguing it would exacerbate driver shortages and further disrupt the supply chain.