Welcome to NTRA’s What’s Racing Through Washington newsletter, your one-stop source for all things Thoroughbred racing in Washington, D.C. As we transition into the autumn season, Congress is gearing up for crucial end-of-year legislation that could significantly influence our industry. We hope you’ll find the newsletter informative, and we eagerly anticipate further discussions with you on matters affecting the Thoroughbred industry.
The House Approves Budget, Mitigating the Risk of a Government Shutdown
On Tuesday, November 14, the House of Representatives successfully passed a temporary government funding bill, significantly mitigating the risk of a shutdown. Despite facing internal opposition from some Republicans, newly elected Speaker Mike Johnson (R-LA), secured a 336-95 majority for the legislation, which lacked government spending cuts and alterations to border policies. The bill is now on its way to the Senate, where Democrats are expected to support it, even though it does not include provisions for Ukraine and Israel aid. Senate leaders, including Majority Leader Chuck Schumer and Republican leader Mitch McConnell, express confidence in the swift passage of the legislation, aiming to meet the impending Friday deadline for federal funding. While the initial White House reaction to the bill was critical, President Joe Biden refrained from issuing a veto threat, indicating a softened stance. Schumer acknowledged discussions with the White House, emphasizing the shared goal of avoiding a government shutdown. The Johnson bill proposes funding various government departments until either Jan. 19 or Feb. 2, introducing the possibility of another shutdown deadline. This strategic extension aims to prompt the Senate to expedite negotiations on the first set of bills. The political gamble taken by Speaker Johnson, who was elected recently, involved relying on Democratic support, a move reminiscent of the ousting of former Speaker Kevin McCarthy in October. McCarthy faced backlash from fiscal hawks within the party for allowing a vote on a temporary spending bill with Democratic backing. Despite opposition from the conservative House Freedom Caucus, which disapproves of the bill’s lack of immediate cuts, members seem willing to give Johnson some leeway. Johnson contends that he inherited fiscal challenges and argues for more time to implement spending cuts, currently avoiding any imminent threat to his leadership position.
Farm Bill DELAYED Until 2024
As the year-end deadline approached for crucial farm and food aid programs, lawmakers grappled with challenges in renewing the Farm Bill. Both Republican and Democrat leaders proposed a plan to prolong the existing 2018 Farm Bill through a stopgap funding measure, successfully passing it on Tuesday, November 14. The extension, negotiated by the House and Senate Agriculture Committees, stretches the Farm Bill’s validity until September 30, 2024. Nevertheless, this extension encountered resistance due to apprehensions about additional expenditures, sparking opposition from conservative factions. G.T. Thompson, the House Agriculture Chair, cautioned against excessive amendments to the extension, fearing a backlash from ultraconservatives. Despite efforts to downplay its significance, some staunch GOP members criticized the extension, seeking to utilize the Farm Bill reauthorization as a platform for advocating spending cuts, especially directed at the Supplemental Nutrition Assistance Program (SNAP). These hardliners expressed dissatisfaction, insisting that SNAP reforms should be integral to any extension. This opposition has led to divergent opinions among Republicans, with some members voting against the plan due to its lack of SNAP reforms. While the Farm Bill’s progress has been delayed, NTRA remains committed to collaborating with Members of Congress to advocate for the inclusion of crucial equine provisions, such as the 3-year depreciation schedule for yearlings, originally introduced in the 2008 Farm Bill.
DHS to Supplement H-2B Cap with Nearly 65,000 Additional Visas for FY 2024
On November 3, the Department of Homeland Security and the Department of Labor announced they will increase the number of H-2B visas for temporary nonagricultural workers for Fiscal Year 2024 by 64,716, in addition to the 66,000 already mandated by Congress. This expansion aims to assist industries like the equine industry that rely on seasonal or temporary workers. The announcement enables businesses to plan ahead and find necessary temporary workers, while emphasizing the protection of both American and foreign workers. The H-2B program involves stringent labor market testing by employers, ensuring a lack of qualified US workers and that employing H-2B workers won’t negatively impact US workers’ wages or conditions. The H-2B visa period is limited to three years, after which individuals must leave the US for three months before seeking readmission.
Read more about the announcement HERE.
A Tax Package Before the End of the Year Would Be a True Christmas Miracle
The tax world, including NTRA, is currently advocating for the swift approval of a bipartisan tax package. This package aims to reinstate 100% bonus depreciation, a crucial tool fostering investment in the equine industry. Negotiations are underway behind closed doors for a tax agreement that might meld business tax incentives with an enhanced child tax credit. NTRA, alongside various business groups, is actively engaging in lobbying efforts to persuade lawmakers to renew these tax provisions. Despite these provisions being omitted from the government funding deal, there is a chance that Congress will address them before the year concludes to clear the deck ahead of the 2024 election. This is crucial in preventing bonus depreciation from decreasing to 60% in 2024. To underscore the significance of these provisions, NTRA has collaborated with numerous businesses in submitting a letter to Congressional Leadership. The letter urges an extension of these pro-growth tax provisions.