Yep, we are using the title of the great Charles Dickens’ novel to describe the Senate and House this week. Their visions for a budget are vastly different and they need to come together to make “one big, beautiful bill.” Will they choose “the age of wisdom” or “the age of foolishness?” It’s all in the eyes of the beholder, isn’t it? With that, let’s get into it. Welcome to the Week Ahead!
The Administration
SOTU? Nope…it’s actually called a joint address to Congress. President Trump will address a joint session of Congress on March 4, marking his first major speech since beginning his second term. (While often referred to as a State of the Union (SOTU), a president never delivers an official SOTU address in the first year of a new term.) President Trump is expected to outline his administration’s policy priorities, including recent plans to impose new tariffs on imports from China, Mexico, and Canada, as well as his approach to foreign relations, particularly concerning Ukraine.
We are wondering about what scooby-snacks the President will hand out this year. Recall previous made-for-television addresses where he would announce special awards to gallery attendees….
Democrat response… who’s the party’s next rising star? Senator Elissa Slotkin of Michigan, who previously served in the House and flipped a red district in 2018 before narrowly winning her Senate seat in a state that Trump also carried, will deliver the party’s response. She will highlight alternative policy perspectives with a focus on kitchen-table issues and protecting Medicaid and Medicare. The speech is often a launching pad for a rising star to spotlight party priorities and establish a national presence.
Overturning 50 years of precedent, HHS posted a policy that exempts from public comment matters related to “agency management or to public property, loans, grants, benefits, or contracts,” calling the process inefficient to the operation of the Department. Notice and public comment will continue for all matters required by statute.
Connect the dots with a DOGE executive order for a 30-day sprint to review and reduce Federal contracts, grants, and loans related to immigration, law enforcement, the military, public safety, and the intelligence community.
DOGE is coming for you, HHS. Think CMMI contracts, HRSA grants and loans, NIH.
The Senate
Order up, it’s health care nominations in the Senate. We will hear from Jayanta Bhattacharya, nominee to head the National Institutes of Health on March 5, and Dr. Marty Makary to lead the Food and Drug Administration on March 6.
What should we expect? For NIH, hot topics will include the slashing of indirect costs for researchers, job eliminations in the federal government, and what the research agenda will be for the administration. For FDA, well yes, vaccine safety and efficacy, but don’t forget about the drug and device approval process, supply chain and US manufacturing of drugs, and the controversial lab-developed test rule.
And don’t forget (how could we) that the government funding runs out March 14, and the health care extenders at the end of March. While Republicans and Democrats were working to complete their FY 2025 bills, it’s looking increasingly likely another continuing resolution is in the offing. This time, the extension would run through September 30 with another extension. Riding along would be the health care extenders through September 30 and December 31.
Senate hearings this week
- March 5: Senate HELP confirmation hearing of Jayanta Bhattacharya for NIH
- March 6: Senate HELP confirmation hearing of Jayanta Bhattacharya for NIH
- (and don’t forget March 6-7 is MedPAC)
The House
The hard work of hammering out a budget bill begins. While the Speaker delivered “one big, beautiful bill,” he signaled his support for the Senate Republican leadership’s approach to taxes. Can Speaker Johnson get his fiscal hardliners on board? Senate and House Republican leaders will be meeting this week (and beyond) to determine how best to craft a budget resolution that achieves the President’s domestic agenda AND pass both chambers.
Don’t forget, they must pass the same budget, then the committees have to figure out which policies to fit the budget, then both chambers have to pass that whole budget reconciliation package. The Speaker has stated his goal of delivering a final reconciliation package to the President in May.
One person to keep an eye on is Rep. Elise Stefanik (R-NY) as Senate Republicans have yet to confirm her for the U.S. Ambassador to the United Nations. Her vote has been an important one for Speaker Johnson as Republicans have 2 vacancies in Florida that will not be filled until early April. But with the world scene heating up, how much longer the White House is willing to wait for her nomination is unclear.
In an effort of bipartisanship, the House will take up the Chronic Disease Flexible Coverage Act . Sponsored by Reps. Vern Buchanan (R-FL) and Jimmy Panetta (D-CA), the bill would codify an IRS policy stating that employers who offer high-deductible health plan coverage for their employees the option of including pre-deductible coverage for chronic illnesses.
There You Have It
Did you know that A Tale of Two Cities is considered historical fiction? We in DC feel sometimes we are both working on history and fiction at the same time! What’s your favorite genre? Let us know! Make it a great week!