2015 will be a big year in DC for Kentucky, with our senior Senator, Mitch McConnell, becoming Majority Leader of the Senate, and junior Senator Rand Paul in the Presidential spotlight. In addition Kentucky Congressman Hal Rogers will continue as Chair of the House Appropriations Committee as it develops the budgets for each department of the US Government.
The New Year, and the new Congress, will face a series of deadlines, some caused by legislative mandates; and others that the last Congress created by kicking the proverbial can down the road.
January 1: Actually, there are two where Congress, in the closing days of 2014 allowed laws to lapse in in fact creates a January 1 deadline. First, they failed to extend the federal program creating a backstop for Terrorism Insurance, the Terrorism Risk Insurance Act (TRIA), that expired on December 31, 214. The other is a bill extending 50 plus tax provisions that are referred to in DC as “Extenders” as they have lapsed and been extended for over a decade. The provisions had indeed expired at the end of 2013 and needed to be approved retroactively in order to allow taxpayers to take advantage of the provisions on the returns they will file in 2015. Many in Congress had hoped to extend the provisions for two years, so that they could be used during 2015 for taxes paid in 2016; but this proved too controversial and so the short-term fix was agreed to. The net result is that the extenders bill was approved on December 15 and the 50 plus tax provisions expired two weeks later on December 31.
February 27: In the final days of 2014 Congress passed a massive bill, referred to as the CROmnibus, as it combined an Omnibus spending bill for nearly the whole federal government, and a Continuing Resolution (CR) for the Department of Homeland Security (DHS). The CR for DHS expires on February 27. As part of the compromise that led to passage of the FY 2015 spending bill, the Republican leadership
promised their membership that they would try to defund the President’s Executive Order on immigration through riders to the budget for the Department of Homeland Security. (DHS). The vote on the DHS budget is likely to be the first confrontation between the White House and the Republican Congress.
March 15: Perhaps the most dangerous early deadline is March 15 when the current moratorium on the debt ceiling expires. As foolish as it sounds to those not deep into the political process, the increase of the debt ceiling, while obviously 100% necessary, is one of the most difficult votes a member of the House or Senate needs to take. The reason for the difficulty is that it is nearly impossible to explain, and it is a near certainty that a vote to increase the debt ceiling will be used in the next campaign against the member voting to increase the ceiling. We saw this here in Kentucky when Senator McConnell’s Tea Party primary opponent ran commercials attacking the Senator’s leadership role in preventing the US government from paying late or defaulting on its debt. This will be a real test of the ability of the President to work with the Republican Congressional leadership.
April 15: While not set in stone, and often allowed to lapse, April 15 is the date the House is suppose to act on a Budget Resolution. During the past few years of divided government in the Congress, the House has passed the so-called Ryan Budget, and the Senate has not passed any budget. However, with Republicans now in control of both chambers, there is a general anticipation that there will be a Budget Resolution in 2015. Also, a Budget Resolution is a prerequisite for a Reconciliation Bill that is the special vehicle that allows for changes in the law that impact revenues and spending under special rules that prohibit a Senate filibuster. Clinton era tax increases, and Bush tax cuts were accomplished through a Reconciliation Bill. Republicans hope to challenge the White House with a Reconciliation Bill that could include everything from a repeal of Obamacare taxes to tax reform for businesses.
May 31: The Highway Trust Fund (HTF) that provides funding for most of the nation’s infrastructure spending for highways and mass transit runs out of money on May 31. As the summer construction period gets underway failure to act could cause the temporary loss of hundreds of thousands of jobs. Congress needs to find a funding mechanism for the Trust Fund as more efficient cars and less miles driven has reduced the income from the gasoline tax.
June 30: Authorization for the Export Import Bank, which provides government subsidized export financing, expires on June 30. Many conservative critics want to see this example of “crony capitalism” closed down. However, the Republicans are divided on the issue, the President and most Democrats support the Bank, and the outcome is far from certain.
October 1: Congress must again fund each department of the government for the new fiscal year that begins October 1. Added to the difficulty of the task for FY 2016 is the re-imposition of the sequester cuts. Some Republicans want to add money to defense, and fund the increase with further cuts to domestic spending programs. However, President Obama is unlikely to accept this proposal, and the threat of a government shutdown could again be part of the political dialogue this fall.
Tom Block is a public policy consultant who had a 21-year career with JP Morgan Chase where he served as head of government relations in New York City and created a Washington research product. He also created the bank’s EU Government Relations program and developed a new position as U.S. Government Policy Strategist focusing on how U.S. government policy impacts capital markets. He has an extensive 
government and banking background, has worked on political campaigns and as a speech writer. He is a family trustee of Bernheim Aboretum in Louisville and holds a bachelor’s degree in political science from American University. He and his wife make their home in Kentucky. He is a regular contributor to KyForward. Contact him at tomblockct@aol.com.