THE LONG GAME: New CR proposal to fund government into March; Tax deal couples child credit with business-friendly measures.
Needing more time to pass the remaining FY 24 appropriations bills, top negotiators, led by Speaker Mike Johnson (R-LA) and Senate Majority Leader Chuck Schumer (D-NY), have now agreed to pass a short-term spending bill that would fund the government into early March. It would maintain current spending levels, without any policy changes. However, this leaves Congress with just a matter of days to pass a new continuing resolution (CR), before the first January 19 deadline arrives. Failure to meet the deadline would result in a partial government shutdown. Once again, far-right members are blasting the agreement—just as they did at the initial agreement reached by Johnson and Schumer last weekend. “This is what surrender looks like,” said the House Freedom Caucus. In a signal that Democrats appear poised to provide the bulk of support for the package, House Minority Leader Hakeem Jeffries (D-NY) issued his support for the bill.
A bipartisan deal appears to be in the works to expand the child tax credit while providing tax breaks to businesses. The agreement, valued at about $70 billion, is being negotiated by the Democratic-led Senate Finance Committee and the GOP-led House Ways and Means Committee. Democrats point out that a version of the credit, passed in 2021, drastically reduced child poverty rates. Under the terms of the deal being discussed, refundable child tax credits would be increased and the $1,600 cap on refundable credits would be incrementally lifted. Families would also be enabled to use previous years' incomes if that would help them access larger benefits. Businesses would benefit from, among other things, the full expensing of domestic research and development and an extension of bonus depreciation.
Washington Watch is published weekly when Congress is in session. Published monthly during extended recess or adjournment.
Spotlight Puerto Rico
U.S. DOT awards EV grants of $51.4 million
The U.S. Department of Transportation announced on Thursday new grants to enable the Island to install electric vehicle charging ports along major corridors. The $51.4 million in awards, made possible by the Bipartisan Infrastructure Law, will lead to the construction of ten such EV stations. The ports will be part of a project to create a charging network across Puerto Rico. The funds will be managed by the Puerto Rico Highways and Transportation Authority. Meanwhile, the marketplace for EVs faces a challenge: the Puerto Rico Treasury Department confirmed last week that, due to a loophole in the language of the Inflation Reduction Act, Island residents are ineligible to receive the federal tax credit of up to $7,500 for the purchase of a new electric vehicle.
Big boost in number of candidates running as independents
Forty-three candidates have filed to run as independents in the 2024 general elections, representing a four-fold increase over the number who ran in 2020. Four years ago, ten such candidates ran for office in Puerto Rico. The only successful independent candidate from that cycle, Senator Jose Vargas Vidot, intends to run as an independent once again this year. Three candidates for governor will attempt to win office without the backing of a political party. Each of the announced candidates will require certification from the State Elections Commission to appear on the ballot.
Coffee production still down since Hurricane Maria
Six years after Hurricane Maria, a key sector of the Island’s economy is still struggling to regain its footing: coffee production. During 2023, about 28,500 coffee quintals were harvested, a drop of 56.77% compared to production in fiscal year 2017. (A quintal is the equivalent of 100 kilograms.) The findings were released by Puerto Rico Agriculture Secretary, Ramón González Beiró. Officials said that 79% of coffee trees were lost in the hurricane, and the problem has been exacerbated by labor challenges since then. Employers have hired workers from Colombia, Costa Rica, the Dominican Republic, Guatemala, and Honduras to make up for the shortage. Gonzalez has also established a program to subsidize coffee growers with two million coffee trees annually for planting. Despite the challenges, coffee prices are expected to remain stable this year.
View From The White House
Former Secretary of State John Kerry is expected to leave his post as the president’s top climate envoy and will join Biden’s re-election campaign.
The Biden administration on Friday announced that, for the first time, it plans to impose fees on oil and gas companies for emitting methane, a greenhouse gas responsible for more than a quarter of the planet’s warming.
Following the drowning of a woman and two children in the Rio Grande on Friday, the Biden administration issued a cease-and-desist order to Texas telling the state to stop blocking the U.S. Border Patrol’s access to portions of the border area.
3121 SOUTH STREET NW, SUITE 100
WASHINGTON, D.C. 20007
TEL. (202) 337-1016
Comments