NASBP Focal Point – July 28, 2022

As Focal Point goes to press, Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) have agreed to a ten-year $433 billion spending bill to be passed through reconciliation (only simple vote majority needed to pass), which will be fully paid for by tax increases, prescription drug pricing reforms, stricter IRS enforcement and closing the carried interest loophole. The bill includes the following: $370 billion dedicated to energy and climate, $300 billion in deficit reduction, and three years of subsidies for Affordable Care Act premiums and prescription drugs. The Schumer/Manchin agreement makes changes to current tax law that would raise $739 billion over the next decade. This would be enough to both offset the cost of the bill, while locking in more than $300 billion in revenue to cut the deficit, a priority for Senator Manchin. The full Senate Democratic caucus is set to meet today to approve the spending package.

Yesterday, the House Small Business Committee conducted a full committee hearing on “Leveraging the Infrastructure Investment and Jobs Act: The Role of the SBA’s Bond Guarantee Program.” Among those who testified included Peter Gibbs, on behalf of NASBP, Ralph Pulver of Travelers Bond & Specialty Insurance and Alan Gravel Owner of Willow Construction, a small business whose bond producer, long-time friend and NASBP Past President, Howard Cowan, suggested that Willow Construction was a good fit for the SBA BGP. After the hearing, Chairwoman Nydia Velazquez (D-NY-7th) issued the following press release, stating in part, “As projects related to the bipartisan infrastructure bill continue to develop, demand for Surety Bond Guarantees may increase. Given that, this Committee must look for ways to improve the program to better serve more small businesses,” said Chairwoman Velázquez. For more information on yesterday’s hearing click here.

Earlier this month, the House passed its version of the annual defense spending bill, the Fiscal Year 2023 National Defense Authorization Act, by a vote of 329-101. Meanwhile, the Senate Armed Services Committee filed text of its $846 billion NDAA. No date has been set for floor consideration, but it will likely occur sometime after the August recess. Differences between the two versions must be reconciled before the legislation can reach the president. As NASBP announced in a press release, the House bill included an amendment in En Bloc 5, was H.R. 8273, the “Small Business Payment for Performance Act of 2022,” which was introduced on July 1 by U.S. House of Representatives Pete Stauber (R-MN) and Scott Peters (D-CA). We will continue to keep you informed on this issue moving forward.