Since the current lame duck session (a period during the legislative session but after the November mid-term elections) began, the U.S. Congress has worked overtime debating and passing legislation addressing Don’t Ask Don’t Tell, the Strategic Arms Reduction Treaty (START), a continuing resolution to fund the government until March 2011, and legislation that extends the Bush era tax cuts for two years, which were set to expire on January 1. That measure included guaranteeing unemployed workers in hard-hit states up to 99 weeks of jobless benefits through the end of next year and creating major new incentives for business and consumer spending in 2011, including a two-percentage-point reduction in the Social Security payroll tax that would let workers keep as much as $2,136.

Issues of concern to NASBP members that were not considered during the lame duck session were the enhancements adopted in the American Recovery and Reinvestment Act (ARRA) that increased the contract size guaranteed by the SBA from $2 to $5 million and the provision that allows the U.S. Small Business Administration (SBA) Administrator discretion to determine the liabilities of its Bond Program when claims are made in order to prevent the SBA from unraveling bond guarantees. Those enhancements did expire on September 30. Throughout the course of the year, and during the lame duck session of Congress, NASBP supported efforts by Senator Ben Cardin (D-MD) to make those reforms permanent. Unfortunately, Congress failed to take action on multiple amendments offered by Senator Cardin, tax extender packages, and a standalone bill co-sponsored by Senators Landrieu (D-LA) and Snowe (R-ME). NASBP and SFAA will continue to advocate for reforms to the SBA Surety Bond Guarantee Program in 2011.

Moving forward to 2011 and a brand new Congress, the NASBP Federal Legislative Agenda includes pursuing opportunities to: amend Titles 41 (prohibiting automatic threshold increases to the Federal Miller Act) and Title 31 (ensuring that assets pledged on federal construction projects are easy to convert to liquid assets to protect small business and taxpayers); prohibit the practice of improper contract bundling by including the term “new construction” in the definition of contract bundling; and repeal the 3% Tax Withholding Rule. No one is certain what issues the newly elected members of the House will pursue; however, the House will mostly likely pursue an agenda that emphasizes job creation for small businesses and tax cuts to spur economic expansion.

For a more in-depth look at NASBP’s legislative involvement in 2010 and insights into the 112th Congress, be sure to access the complimentary recording of “The Year in Review and the Year Ahead: A Government Relations Town Hall Meeting” Virtual Seminar that took place on Dec. 16.

If you plan to be in Washington, D.C. for business or pleasure and would like to visit with your Congressional delegation, please contact Larry LeClair, NASBP Director of Government Relations. He would be happy to accompany you on those visits and to provide helpful background materials. He can be reached at lleclair@nasbp.org or 202-464-1217.