Thursday, February 4, 2021

Senate Referee to Play Major Role on Biden Relief Plan


Senate Parliamentarian, Elizabeth MacDonough, will soon play a Crucial Role in Determining whether President Biden’s Proposal to Increase the Minimum Wage and other Components of his $1.9 Trillion Relief Package make it through Congress.

As Legislative Referee, MacDonough is tasked with deciding if Provisions like Raising the Federal Minimum Wage to $15 an hour by 2025 are allowed to Pass the Senate with a Simple-Majority Vote under a Special Process known as Budget Reconciliation.

The Parliamentarian will pass Judgement on what elements of Biden’s Plan comply with the Byrd Rule, which lays out Detailed Requirements for Protecting Legislation from Filibusters through the Reconciliation Process.

It is Not considered an Enviable job once Budget Reconciliation gets underway. “I can tell you this for a fact, going back all the way to Bob Dove and Alan Frumin, they hate this process. They are put in a terrible position,” said Bill Hoagland, a former Republican Staff Director of the Senate Budget Committee, referring to previous Senate Parliamentarians.

Some of the Spending in the Democrats’ COVID-19 Relief Package may come under Attack from Republicans if it does not Comply with the Byrd Rule.

One Key Requirement is that any Provision passed under Reconciliation must produce Changes in Outlays and Revenue that are Not merely Incidental to its Non-Budgetary Effect.

Another Key Requirement is that Spending Protected by Reconciliation must Fall outside the Annual Appropriations process. So if part of the Package can be classified as Discretionary Spending or if it is seen as Funding Programs, Funded that will need Future Appropriations to Administer, that Component could be Jettisoned by MacDonough, who has served as Parliamentarian since 2012.

Then-Senate Majority Leader Harry Reid (D-NV) appointed MacDonough, making her the First Woman to hold the position.

One Challenge facing MacDonough is the need to gather Data from the Congressional Budget Office and the Joint Committee on Taxation in a short period of time. Democrats want to Pass the Relief Bill by Mid-March at the latest, making it difficult to Score all of the Bill’s Provisions in just a few weeks.

In the meantime, Lawmakers are arguing over whether a Minimum Wage Increase can avoid a Filibuster. Sen. Mike Crapo (R-ID), the Top-Ranking Republican on the Finance Committee, said he doesn’t think a Wage Increase should be allowed to pass with Fewer than the 60 Votes required for Regular Legislation. “To my knowledge, that has never been done,” he said.

Senate Majority Whip, Dick Durbin (D-IL), and other Democrats say it Qualifies for Reconciliation.

When asked whether a Minimum Wage Increase would be Eligible for the Reconciliation Package, Senate Banking Committee Chairman, Sherrod Brown (D-OH) said, “I hope so and I think so.”

Bill Dauster, a Longtime Senate Democratic Aide who will start next week as Chief Counsel for the Senate Budget Committee, says Raising the Minimum Wage has a Direct effect on the Budget because you Pay People More and they use Federal Benefits.

Sen. Brian Schatz (D-HI) made the case Wednesday that Raising Wages across the Country would Reduce Expenditures on the Earned Income Tax Credit and other Federal Programs. “It’s hard to argue that raising the minimum wage doesn’t have an impact on government revenues. It would certainly reduce the amount you have to spend on food stamps and temporary assistance to needy families,” he said. “Anything that raises people out of poverty changes the number of people that you have to subsidize, so I think we have a very strong case to be made,” he added. Schatz, however, acknowledged it would be up to MacDonough.

Democrats also need to convince Sen. Joe Manchin (D-WV), who said this week he Doesn’t support a Hike to $15, though he left the door open to a Smaller Increase. Without all 50 Democrats on board, a Wage Increase is unlikely to make it through the Senate.

Republicans aren’t taking any chances, though. GOP Senators say Biden’s Proposal to Raise the Minimum Wage doesn’t Warrant Reconciliation Protections because it wouldn’t have a Significant Impact on the Federal Budget following his Executive Order initiating a Process to ensure All Federal Workers and Contractors make at least $15 an Hour by 2025.

Some Republicans are worried that Democrats are so intent on Passing Biden’s Plan in its entirety that they could Vote to Overrule any adverse Judgement from the Parliamentarian. Such a scenario would require all 50 Democrats and Vice President Harris Voting to set aside the Parliamentarian’s Ruling. “Democrats are going to nuke the Byrd Rule,” one GOP Senator said after Senate Majority Leader Charles Schumer (D-NY) announced Tuesday he would move a Large COVID-19 Relief Package through Budget Reconciliation.

Manchin and Sen. Kyrsten Sinema (D-AZ) have told Senate Minority Leader Mitch McConnell (R-KY) they would Not Vote to Gut the Senate Legislative Filibuster Rule.










NYC Wins When Everyone Can Vote! Michael H. Drucker


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