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Daily Report for Executives (BNA), DER Issue No.

218, Special Report

Daily Report for Executives Special Report


DER Issue No. 218, Special Report (2016) - November 10, 2016

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ELECTION 2016
ELECTION 2016
OVERVIEW
CONGRESS
Meet the freshmen: Fun facts, diversity, military veterans More
HOUSE
Party elections, funding in House GOP's sights upon return More
SENATE
GOP Senate victory sets stage for Trump high court, agenda More
WHITE HOUSE
Trump starts new political era as Republicans claim mandate More
HOUSE COMMITTEES
ADMINISTRATION
House Administration panel to have new chairman More
AGRICULTURE
Conaway positioned to stay at top spot on House Agriculture More
APPROPRIATIONS
Term limits, retirements rework House Approps lineup More
ARMED SERVICES
Lots of turnover at HASC, but leadership stays stable More
BUDGET
Price, Yarmuth seen atop House Budget panel in new Congress More
EDUCATION AND WORKFORCE
Rep. Foxx may cut rules if named Labor panel chairwoman More
ENERGY AND COMMERCE
Race for chair of House Energy and Commerce up in the air More
FINANCIAL SERVICES
Dodd-Frank likely target of emboldened House Financial Services panel More
FOREIGN AFFAIRS
House Foreign Affairs chair re-elected More
HOMELAND SECURITY
House Homeland Security to continue cybersecurity focus More
JUDICIARY

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report

Goodlatte poised for one more term as Judiciary chair More


NATURAL RESOURCES
Big issues, few changes set for House Resources panel More
OVERSIGHT AND GOVERNMENT REFORM
House Oversight panel expected to weigh rulemaking, drug pricing More
RULES
Willing to head Rules again, if Ryan names him: Sessions More
SCIENCE
Science Committee subpoena effort poised for repeat: Advocates More
SMALL BUSINESS
House Small Business Committee leadership likely unchanged More
TRANSPORTATION AND INFRASTRUCTURE
Changes in House Transportation, Infrastructure priorities unlikely More
VETERANS' AFFAIRS
House Veterans Affairs: New leadership, same priorities More
WAYS AND MEANS
Tax revamp optimism reigns among Ways and Means Republicans More
SENATE COMMITTEES
AGRICULTURE
Roberts likely to keep Senate Agriculture gavel More
APPROPRIATIONS
Cochran seeks to keep Senate Approps gavel; top Democrat slot in flux More
ARMED SERVICES
McCain's effort on acquisition overhaul may set SASC's tone More
BANKING
Senate Banking panel likely to target financial regulations More
BUDGET
Enzi hopes to stay on at top of Senate Budget Committee More
COMMERCE
Senate Commerce to focus on telecom, transportation More
ENERGY
No change expected to Senate Energy committee leadership More
ENVIRONMENT, PUBLIC WORKS
Fierce opponent of climate action to chair Environment panel More

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
FINANCE
Hatch retains Finance chair, expected to push tax overhaul More
FOREIGN RELATIONS
Senate Foreign Relations chair could depend on Corker More
HEALTH, EDUCATION, LABOR AND PENSIONS
Repeal of ACA provisions, overtime rules likely to take spotlight in HELP More
HOMELAND SECURITY
Senate Homeland GOP leadership to maintain panel policy More
JUDICIARY
Judiciary primed to address courts Vacancy crisis More
RULES
Senate Rules committee chairman Blunt re-elected More
SMALL BUSINESS
Senate Small Business committee leadership in flux More
VETERANS' AFFAIRS
Senate Veterans Affairs: Benefits, worker discipline top agenda More
JOINT COMMITTEES
JOINT ECONOMIC
Joint Economic Committee to flip leadership to House, still Republican led More
JOINT TAXATION
Brady to become Joint Tax Committee chairman in January More
Election 2016 Overview
Congress: Meet the Freshmen: Fun Facts, Diversity, Military Veterans
By Greg Giroux
Nov. 9 The 115th Congress is going to look a little more like America.
Long dominated by middle-aged white men, Congress will have new House
members in January with last names like Krishnamoorthi, Jayapal, and
Espaillat. And the Senate will welcome its first Hispanic woman, Catherine
Cortez Masto of Nevada.
The new membership also includes a Cheney, a Panetta and a Crist all familiar names to anyone only
tangentially following Washington politics.
California Democrat Salud Carbajal, a Santa Barbara County supervisor, was born in Mexico, which
President-elect Donald Trump has assailed.
New York Democrat Adriano Espaillat will become the first member of Congress who was born in the
Dominican Republic, which he left as a boy. Democrats Raja Krishnamoorthi of suburban Chicago and
Pramila Jayapal of Seattle were born in India.
Here's a look at more of the interesting people in the freshman class of the 115th Congress. Full profiles
of the representatives-elect and senators-elect are below.
Florida Freshmen:The Sunshine State is providing 10 new House members, or more than one-third of its

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
delegation. The five Democrats include Val Demings, the first black woman to run Orlando's police
department, and Stephanie Murphy, a former Defense Department foreign-policy analyst who unseated
12-term Republican Rep. John Mica in an adjacent district. Murphy was born in Vietnam and fled the
nation with her family as an infant.
Women: Democratic Rep. Tammy Duckworth's defeat of Illinois Republican Sen. Mark Kirk will help bring
to 21 the number of female senators in the 115th Congress, a new record. Cortez Masto is replacing
Harry Reid.
In a close race between Republican Senator Kelly Ayotte and Democratic Governor Maggie Hassan,
Ayotte conceded Nov. 9. The outcome won't affect the overall number of women in the Senate, though
Hassan's victory skews the partisan ratio of female senators even more in the Democrats favor.

In California, state Attorney General Kamala Harris will succeed retiring Democrat Barbara Boxer,
marking the 10th straight election the state has elected a Democratic woman in a Senate election. Harris
also will become California's first black and Asian senator; her parents are immigrants from India and
Jamaica.
In Delaware, Democrat Lisa Blunt Rochester, a former state labor secretary, became the first woman and
first black person to represent the state in Congress. Only Vermont and Mississippi have never sent a
woman to Congress.
Military Service: Duckworth, who was severely wounded as an Army helicopter pilot, moves to the
Senate after two terms in the House. Virginia Republican Scott Taylor, a former Navy SEAL who served
in Iraq, will represent a Virginia Beach-centered district with one of the nation's biggest concentrations of
military personnel and veterans.
Florida Republican Brian Mast, who won a Democratic-held seat, lost both of his legs in combat in
Afghanistan. Jim Banks, who won a northeastern Indiana district, was sworn in to his state Senate seat in
2014 by Skype from Afghanistan, where he was on active duty with the Navy.
Cambridge Connection: Krishnamoorthi, Democrat Josh Gottheimer of New Jersey and both Maryland
newcomersDemocrats Anthony Brown and Jamie Raskinare Harvard Law graduates.
Freedom Caucus Fortification: Banks was backed by the political arm of the House Freedom Caucus, a
bloc of strongly conservative Republicans. Andy Biggs, Arizona's state Senate president, also had the
group's backing in his successful bid to succeed Freedom Caucus member Matt Salmon, who didn't seek
re-election.
The group's ranks probably will include Ted Budd, a North Carolina gun-shop owner and political novice
elected to an open seat, and Louisiana state Rep.Mike Johnson, who's favored to defeat a Democrat in a
Dec. 10 runoff. Johnson would succeed Republican John Fleming, a Freedom Caucus member who lost

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
a Senate bid.
Introduction of New Members
Here is Bloomberg Government's introduction to the senators-elect and representatives-elect of the
115th Congress, according to unofficial returns where winners have been declared so far. The list is in
alphabetical order by state, concluding with the resident commissioner of Puerto Rico, who doesn't vote
on passage of bills.
Louisiana will need runoff elections to choose its next senator and to fill the 3rd and 4th Congressional
District seats.
Winners haven't yet been declared in New Hampshire's Senate race, in Nebraska's 2nd Congressional
District, or in six contests in California, including the 49th District, where incumbent Darrell Issa was
leading narrowly.
Senate
Kamala Harris, D-Calif.;
Tammy Duckworth, D-Ill.;
Todd Young, R-Ind.;
Chris Van Hollen, D-Md.; and
Catherine Cortez Masto, D-Nev.

House
Andy Biggs, R-Ariz.;
Tom O'Halleran, D-Ariz.;
Salud Carbajal, D-Calif.;

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Lou Correa, D-Calif.;


Ro Khanna, D-Calif.;
Jimmy Panetta, D-Calif.;
Lisa Blunt Rochester, D-Del.;
Charlie Crist, D-Fla.;
Val Demings, D-Fla.;
Neal Dunn, R-Fla.;
Matt Gaetz, R-Fla.;
Al Lawson, D-Fla.;
Brian Mast, R-Fla.;
Stephanie Murphy, D-Fla.;
Francis Rooney, R-Fla.;
John Rutherford, R-Fla.;
Darren Soto, D-Fla.;
Drew Ferguson, R-Ga.;
Colleen Hanabusa, D-Hawaii;
Raja Krishnamoorthi, D-Ill.;
Brad Schneider, D-Ill.;
Jim Banks, R-Ind.;
Trey Hollingsworth, R-Ind.;
Roger Marshall, R-Kan.;
James Comer, R-Ky.;
Anthony Brown, D-Md.;
Jamie Raskin, D-Md.;
Jack Bergman, R-Mich.;
Paul Mitchell III, R-Mich.;
Jason Lewis, R-Minn.;
Ruben Kihuen, D-Nev.;
Jacky Rosen, D-Nev.;
Carol Shea-Porter, D-N.H.;
Josh Gottheimer, D-N.J.;
Adriano Espaillat, D-N.Y.;
John Faso, R-N.Y.;
Tom Suozzi, D-N.Y.;

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Claudia Tenney, R-N.Y.;
Ted Budd, R-N.C.;
Dwight Evans, D-Pa.;
Brian Fitzpatrick,R-Pa.;
Lloyd Smucker, R-Pa.;
David Kustoff, R-Tenn.;
Jodey Arrington, R-Texas;
Vicente Gonzalez, D-Texas;
Tom Garrett, R-Va.;
Donald McEachin, D-Va.;
Scott Taylor, R-Va.
Pramila Jayapal, D-Wash.;
Mike Gallagher, R-Wis.;
Liz Cheney, R-Wyo.; and
Jenniffer Aydin Gonzalez Colon, R-P.R.
To contact the reporter on this story: Greg Giroux in Washington at ggiroux@bloomberg.net
To contact the editor responsible for this story: Katherine Rizzo at krizzo5@bloomberg.net
2016 Bloomberg L.P. All rights reserved. Used with permission

House Overview: Party Elections, Funding in House GOP's Sights Upon Return
BNA Snapshot
Ryan says he feels very good about relationship with President-Elect Trump
Pelosi says infrastructure could be area of bipartisan agreement

By Jonathan Nicholson
Nov. 9 When House lawmakers return to Washington in the Nov. 14
week, their work will be focused on getting themselves and their agenda
organized for the 115th Congress beginning in January.
Party leadership and rules elections are slated to take up most of House
Republicans time in the first week back, though with the resounding victory
by Donald Trump in the presidential vote Nov. 8, they are now expected to
be far less contentious than had been thought.
After a week break for Thanksgiving, House lawmakers will be back in Washington for a scheduled fourweek stretch starting Nov. 29 and running through Dec. 16. Notably, while the House schedule compiled
by Majority Leader Kevin McCarthy (R-Calif.) has the House in through Dec. 16, the bill that currently
provides funding for federal agencies runs only through Dec. 9.
House Speaker Paul Ryan (R-Wis.) told reporters in Janesville, Wis., he intended to seek to lead the
party for the upcoming 115th Congress. Prior to the election, Ryan had appeared under fire from both
hardline conservatives and libertarians in his conference as well as Trump, who had called him weak and
ineffective.
I feel very good where we are. Donald and I have had fantastic conversations just in the last 18 hours.
[Vice President-Elect] Mike Pence and I had a great conversation about the transition meeting, he said.

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RSC Wants Rules Bar


Democrats and the White House had hoped to wrap up this year's appropriations process in one large
omnibus funding bill in December, but the prospect of President Trump as a negotiating partner in 2017
makes that unlikely. Instead, Republicans will probably aim for a continuing resolution to last sometime
into 2017.
Rep. Bill Flores (R-Texas), chairman of the House Republican Study Committee, laid out his group's
conditions for supporting a CR in a statement Nov. 9.
The House should take the first step and pass a very short-term continuing resolution (CR) that funds
the federal government until the Trump administration has put its team in place, Flores said. This CR
should contain only one major policy ridera measure preventing the Obama administration from
sticking the American people with any more job-killing rules and regulations before it leaves town.
Prior to the vote, Ryan had talked about appropriations, a bill to speed up medical cures research and a
criminal justice overhaul as the likely focal points of the lame-duck session.
For House Democratic leaders, the day after the election led to congratulatory statements to Trump and
pledges to work together.
Robust Infrastructure Bill.

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House Democratic Leader Nancy Pelosi (Calif.) said fixing the nation's roads and bridges could be an
area of agreement with Trump.
As President-Elect Trump indicated last night, investing in infrastructure is an important priority of his.
We can work together to quickly pass a robust infrastructure jobs bill, she said. Our first responsibility is
to protect and defend the American people; we must do so in a manner that is strong and smart, and that
honors the sacrifices of our men and women in uniform.
House Minority Whip Steny Hoyer (Md.), the second-ranking Democrat in the chamber, said: There were
stark differences in this campaign, and they will not disappear overnight. However, it will be important for
both sideseach representing 50% of the electorateto work together constructively to serve all of the
American people. I believe Democrats stand ready to meet that responsibility.
To contact the reporter on this story: Jonathan Nicholson in Washington at jnicholson@bna.com
With assistance from Madi Alexander
To contact the editor responsible for this story: Paul Hendrie at phendrie@bna.com

Senate Overview: GOP's Senate Victory Sets Stage for Trump High Court, Agenda
By Steven T. Dennis, Laura Litvan and Billy House
Nov. 9 Republicans shocked Democrats by keeping control of the
Senate, setting the stage for President-elect Donald Trump to enact a
broad conservative agenda and ensure a Republican Supreme Court for a
generation. That's provided he can work with a GOP establishment he
spent most of the campaign attacking.
Election night amounted to an almost complete disaster for Senate
Democrats in a year when the map greatly favored them10 of 11 battlegrounds were on Republican
turfand only weeks ago they were hoping that an anti-Trump wave would carry them to the majority.
Republicans clinched at least 51 Senate seats, with races in New Hampshire and Louisiana still to be
decided. They also kept control of the House.
One-party rule creates the potential to reshape the Supreme Court and use Senate procedures to muscle
through changes in tax policy and Obamacare.
First, Trump and his fellow Republicans would have to find a way to work together.
Drain the Swamp.
He repeatedly promised to drain the swamp of the Washington establishment and has called House
Speaker Paul Ryan (R-Wis.) a weak and ineffective leader. Ryan and Senate Majority Leader Mitch
McConnell (R-Ky.) almost always avoided speaking Trump's name in public, and while they nominally
supported him, they never campaigned alongside him.
Republicans who will control the Senate are sharply divided over matters that include immigration, trade
and climate change.
Indeed, some Republicans weren't even willing to vote for Trump, and few have embraced some of his
signature proposals, such as building a wall on the border with Mexico and enacting 35 percent tariffs on
Mexican imports from U.S. companies. Republican Sen. Lindsey Graham of South Carolina said on
Twitter that he voted for an independent candidate for president. Republicans Jeff Flake of Arizona and
Ben Sasse of Nebraska also spoke out strongly against Trump.
We now have a country to run, Graham said in a statement posted on Twitter. President-elect Trump
and the new Congress will face many challenges. We have wars to win, threats to be dealt with and a
stagnant economy which must be revived. To the extent that I can help President-elect Trump, I will do
so.
Maine Sen. Angus King, an independent who caucuses with the Democrats, in a Nov. 9 statement called
on all sides to look to one another with compassion and understanding, to view each other as neighbors
rather than adversaries. He added, It will be difficult, but it is achievable.
The party also faces significant challenges in the Senate because it still lacks the 60 votes needed to
force through most legislation over Democratic objections. Republicans could change the rules to keep

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Democrats from blocking Trump's Supreme Court nominees, including one to replace the late Justice
Antonin Scalia.
One big winner on the night was McConnell, whose gamble to block Merrick Garland's nomination to the
high court paid off. The Trump win put an end to Democrats dreams of a liberal court; progressive
interest groups were relishing the prospect that the court would have a majority of Democratic appointees
for the first time since 1969.
The three oldest Supreme Court justices all support Roe v. Wade, the landmark abortion rights ruling that
Trump has predicted would be overturned by his court picks.
October Surprises
Republican Senate candidates were victorious amid an uncertain electoral landscape that was
complicated by high disapproval ratings for both Trump and Democratic nominee Hillary Clinton.
Surprise developments in the campaign's closing weeks weakened both White House aspirants,
including a tape of Trump bragging about groping women and FBI Director James Comey's shock
announcement 11 days before the election that his agency was looking at more Clinton e-mails.
The list of Republican incumbents who survived tough Democratic challenges was long, and started with
Marco Rubio of Florida, whose decision to run for the Senate after an all-hands-on-deck recruitment
effort by GOP leaders dramatically boosted their prospects for keeping hold of the chamber.
John McCain of Arizona, Richard Burr of North Carolina, Roy Blunt of Missouri, Pat Toomey of
Pennsylvania and Ron Johnson of Wisconsin also won re-election, and Rep. Todd Young defeated the
Democrats star recruit in Indiana, former Senator Evan Bayh.
In an otherwise disastrous evening for Democrats, the party gained a seat in Illinois, as Representative
Tammy Duckworth ousted incumbent Mark Kirk. They also managed to salvage Harry Reid's Senate
seat in Nevada, with Catherine Cortez Masto defeating Rep. Joe Heck, making her the first Latina to ever
win a Senate seat.
Republicans took over the Senate two years ago after losing control to Democrats in 2006. The GOP
could add to its majority in 2018, when 25 of the 33 seats up for election are held by Democrats and two
independents who caucus with them.
GOP House
On the House side, Republicans easily cleared the 218 seats needed to control the chamber, losing only
a handful of races.
Republican incumbents in Florida were ousted, including former House Transportation and Infrastructure
Chairman John Mica and David Jolly, who was defeated by party-switching former Gov. Charlie Crist.
The Democrat who defeated Mica in Florida, Stephanie Murphy, came to the U.S. as a Vietnamese
refugee.
Also falling in the Republican ranks was Rep. Scott Garrett of New Jersey,a senior member of the
Financial Services Committee who chairs the subcommittee on capital markets and governmentsponsored enterprises.
Ryan will likely win credit from many Republicans for helping them to run campaigns that kept some
strategic distance from Trump, even as many probably benefited from Trump-fueled turnout. Even so,
Ryanthe party's 2012 vice presidential nominee who became speaker a year ago after conservatives
pushed Speaker John Boehner out of officecould still see his own leadership under question for his
less-than-full-throated support of Trump.
The speaker did energetically campaign and raise money for hisHouse colleagues, even as some
Republicans publicly complained of the potential harm they saw for GOP candidates from Ryan's tepid
backing of the presidential nominee. In the final days of the campaign, he started backing Trump more
explicitly.
But it's unclear how well Trump and Ryan will get along, or whether they can agree on an agenda, given
their high-profile splits on immigration and trade.
Ryan congratulated Trump early Nov. 9 on his incredible win.
It marks a repudiation of the status quo of failed liberal progressive policies. We are eager to work hand-

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in-hand with the new administration to advance an agenda to improve the lives of the American people,
Ryan said in a statement. This has been a great night for our party, and now we must turn our focus to
bringing the country together.
Possibility of Reconciliation
Even though Senate Republicans will have a slim governing margin next year, their control of the
chamber and the House could let them make big changes to the tax code and health-care policy. That's
because of a powerful procedure called budget reconciliation that can allow the Senate to pass bills
containing revenue- or entitlement-related changes with just 51 votes.
Republicans used the method to pass President George W. Bush's tax cuts in 2001 and 2003, and it
helped Senate Democrats push through the Affordable Care Act in 2010. Trump and virtually all
Republicans in Congress agree that they want to repeal Obamacare as soon as possible. This year, they
put a partial repeal on President Barack Obama's desk.
He vetoed it.
This time, they'll have a president who says he will sign it.
To contact the reporters on this story: Steven T. Dennis in Washington at sdennis17@bloomberg.net;
Laura Litvan in Washington at llitvan@bloomberg.net; Billy House in Washington at bhouse5@bloomberg
.net
To contact the editor responsible for this story: Kevin Whitelaw at kwhitelaw@bloomberg.net
2016 Bloomberg L.P. All rights reserved. Used with permission

White House: Trump Starts New Political Era as Republicans Claim Mandate
By Ben Brody and Mark Niquette
Nov. 9 In the hours after Donald Trump's election as the 45th president
of the United States, Republicans in Congress claimed a mandatefor their
agenda to revamp financial rules and replace Obamacare, and Hillary
Clinton urged her supporters to give him a chance to govern.
House Speaker Paul Ryan (R-Wis.) credited Trump with helping
Republicans keep control of both chambers of Congress and said his
victory will let the party be bold in using its clout to enact legislation and confirm appointments that could
touch every facet of American life.
Donald Trump will lead a unified Republican government, Ryan said Nov. 9. We will work hand-in-hand
on a positive agenda to tackle this country's biggest challenges.
Turbulence in financial markets calmed, after a knee-jerk sell-off in stocks and rally in haven assets, as
investors reassessed the effects of Trump's surprise victory. The S&P 500 Indexrose amid rallies in
health-care and bank shares. Futures had plunged as much as 5 percent overnight. Mexico's peso sank
to a record low on prospects that integration with the U.S. will unravel, while Russian shares jumped on
speculation Trump will mend ties with Moscow.

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Call for Unity


Trump, a real-estate developer and reality-TV star who has never held public office, laid out in broad
strokes proposals to build a wall along the U.S. southern border, bolster military spending while cutting
taxes, rewrite U.S. trade relationships and peel back regulations on U.S. businesses. He made no
mention of that agenda in his victory speech early Wednesday morning in New York, but said the nation's
deep divisions must be healed.
I pledge to every citizen of our land that I will be president for all Americans, he said.
In her first public remarks since Trump claimed the presidency, Clinton pledged to work with him and
urged her supporters to stand behind the new president while continuing to defend the values they
believe in.
We owe him an open mind and the chance to lead, Clinton told a crowd of cheering campaign staff
members and supporters Nov. 9 in New York. Our constitutional democracy enshrines the peaceful
transfer of power, and we don't just respect that. We cherish it.

Obama's Pledge

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President Barack Obama said on Wednesday that while it's no secret he and Trump have some pretty
significant differences, he will work to ensure a successful transition between our presidencies.
We are now all rooting for his success in uniting and leading the country, Obama said. The peaceful
transition of power is one of the hallmarks of our democracy. And over the next few months, we are going
to show that to the world.
In his remarks Nov. 9, Ryan noted that the Republican-controlled Congress couldn't enact legislation to
repeal and replace Obamacare in the face of a sure veto by Obama. That roadblock will be removed
once Trump takes office Jan. 20.
With unified Republican government, we can fix this, Ryan said of Obamacare as well as environmental
and other regulations. The opportunity is now here. And the opportunity is to go big, to go bold, and to
get things done for the people of this country.
Popular Vote
Despite his electoral win and overwhelming victories in many rural or predominantly white areas, Clinton
may ultimately have won the popular vote, which was still being counted. That would mark the fifth time
in U.S. history, and the second time since 2000, that someone has become president without a majority
of the popular vote.
As of 3 p.m. Eastern, Clinton was ahead with 59,670,969 votes to 59,460,467 for Trump, according to the
Associated Press.

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Although many Democrats ultimately stayed home on Tuesday, party elders had worked to capitalize on
Trump's penchant for offending African-Americans, Latinos, and women as a way to get Clinton over the
finish linedespite strongly negative perceptions of her among the electorate and her association with
Obama in a year when voters wanted change rather than continuity.
Republicans also maintained their control of the Senate as they scored wins in a handful of tight races
among the 34 being contested. That will give Trump the upper hand in making nominations for the U.S.
Supreme Court in the coming years. In the House, all 435 seats were on the ballot across the country
and Republicans held their majority, though with a slimmer margin.
In addition, several Democrats in the Senate face uphill races in 2018 with just eight Republicans up for
re-election, and losses in statehouses during the Obama years means the party has largely depleted its
bench of younger politicians.
First Day
Trump has promised to use his executive authority on his first day in office to withdraw from
consideration the Trans-Pacific Partnership, Obama's 12-nation Pacific Rim trade deal that was never
ratified by Congress, and to notify partners in the North American Free Trade Agreement of his intent to
renegotiate that trade deal.
He also has pledged to push through a massive tax cut for middle-income Americans and businesses,
repeal Obamacare, and break ground on his promised wall at the U.S.-Mexico border, which may face
scrutiny for its cost.
On other matters, though, Trump has been vague, often to the frustration of top policy minds in both
parties. He has refused to clarify among differing statements on how he'd confront the Islamic State
terrorist group and vacillated on whether he wants to deport all or many of the approximately 12 million
undocumented people in the U.S. He's also suggested he has no interest in combating climate change
and mused about breaking away from NATO if other member states don't pay more for their defense.
Trump had promised to appoint a special prosecutor to investigate Clinton for her use of private e-mail,
but Rep. Sean Duffy of Wisconsin said y on CNN's New Day that he believes Trump will focus on other
issues important to voters, such as the economy.
I think the sentence and the conviction came last night in the vote, Duffy said.

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Assembling a Cabinet
One of Trump's most immediate tasks is putting together a Cabinet and a team of advisers with a broad
portfolio of experience in foreign and domestic affairs despite frosty relationships with many in the
Republican establishment who shunned his candidacy.
His team is about a week away from arriving at real names for the first members of the Trump
administration, according to three aides involved in the transition who asked not to be identified
discussing internal deliberations.
From the beginning, Mr. Trump has made very clear that he doesn't want to jinx himself by having a
transition and spending an awful lot of money that way, campaign manager Kellyanne Conway said.
But we have been feverishly working on different people for high positions in a Trump administration, a
Trump-Pence administration.
Rep. Chris Collins of New York, whose February 24 endorsement of Trump made him the first House
Republican on the billionaire's side, said on MSNBC that Trump faces an enormous task.
His national finance chairman, Steven Mnuchin, who's chairman and chief executive officer of Dune
Capital Management, has been mentioned as a possible secretary of the Treasury, with former New York
City Mayor Rudy Giuliani and Rep. Trey Gowdy of South Carolina, who headed the Benghazi committee,
mentioned for attorney general.
Collins insisted that Trump will be looking at both Republicans and Democrats as potential top-level
appointees, in part because his winning coalition drew from voters in both parties. He's not looking for
labels, Collins said. He's looking for the best he can find.
Pointing Fingers
Top Democrats, facing a sweeping loss, were slow to speak out on Wednesday as they adjusted to the
reality that a split in the Republican Party that they'd counted on, combined with strong support from
women and minorities, failed to win the presidency for Clinton.
At least one progressive group blamed the party establishment for giving Trump an opening on Clinton's
left with an economic message that exploited frustration with trade deals, slow wage growth, and the
influence of Wall Street. They suggested in essence that Democrats would have been better off
nominating Clinton's primary challenger, Senator Bernie Sanders of Vermont.
Progressives warned repeatedly that Republicans could outflank Democrats on trade, jobs, Wall Street,
and corporate greed, Progressive Change Campaign Committee Co-Founder Stephanie Taylor said in a
statement. Democrats will lose in the futureover and overif they don't go through a serious
ideological shift and follow Elizabeth Warren's lead fighting against the rigged economy in a truly
authentic and real way.
With assistance from Madi Alexander, Mike Dorning, Steven T. Dennis, Billy House, Laura Litvan, AnnaLouise Jackson and Jennifer Jacobs
To contact the reporters on this story: Ben Brody in New York at btenerellabr@bloomberg.net; Mark
Niquette in New York at mniquette@bloomberg.net
To contact the editors responsible for this story: Craig Gordon at cgordon39@bloomberg.net Joe
Sobczyk, Larry Liebert

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2016 Bloomberg L.P. All rights reserved. Used with permission


House Committees
House Administration: House Administration Panel to Have New Chairman
BNA Snapshot
House Administration Committee will have new chairman
Chairman Candice Miller (R-Mich.) retiring from Congress at year's end to run for local office

By Kenneth P. Doyle
Nov. 9 The House Administration Committee will have a new chairman
in the 115th Congress but most other current members are expected to
return to the panel following the Nov. 8 elections.
Committee Chairman Candice Miller (R-Mich.) is retiring from Congress at
the end of the year to run for local office in Michigan.
With Republicans holding majority control of the House, the next chairman is expected to come from the
ranks of current GOP panel members. Next in line in committee seniority behind Miller is Rep. Gregg
Harper (R-Miss.).
On the Democratic side, ranking member Rep. Robert Brady (D-Pa.) was re-elected to a 10th House
term and was expected to return to the panel.
The House Administration Committee currently is divided among six Republicans and three Democrats.
The panel's leaders are hand-picked and closely controlled by the House Democratic and Republican
leadership, which sets the agenda for campaign finance and internal House policy matters under the
committee's jurisdiction.
It appeared highly unlikely House Republican leaders were ready to make major changes in campaign
finance rules and other matters under the committee's jurisdiction.
To contact the reporter on this story: Kenneth P. Doyle in Washington at kdoyle@bna.com
To contact the editor responsible for this story: Paul Hendrie at pHendrie@bna.com

House Agriculture: Conaway Positioned to Stay at Top Spot on House Agriculture


By Casey Wooten
Nov. 9 House Agriculture Committee Chairman Mike Conaway (RTexas) breezed to victory in his re-election bid, laying the groundwork for
another two years of his chairmanship on the panel.
Conaway received about 90 percent of the vote in Texas's 11th district,
which covers a large swath of the mid-western portion of the state and is
one of the most solidly Republican districts in the nation.
The now-seven-term congressman is likely to retain his top spot on the committee, which is set to begin
negotiations and hearings on the 2018 farm bill in the coming months. It will be Conaway's first farm bill
as chairman of the committee since taking the helm in 2015.
His Democratic counterpart, ranking member Collin Peterson (Minn.) also won re-election and is
positioned to retain his spot as well.
Full Work Schedule.
With Conaway remaining at the helm, the broad direction of the committee will largely remain
unchanged. Lawmakers will likely begin ramping up talks over the 2018 farm bill soon. And the first order
of business will be hearings examining how the 2014 bill has performed, Tyson Redpath, a lobbyist for
the Arlington, Va.-based Russell Group, which handles agriculture issues, told Bloomberg BNA.
That is likely to include programs under Title I, the section of the 2014 farm bill devoted to providing

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commodity price and income aid to farmers.
Obviously close examination of Title I and the commodity programs, and because of the construction of
some of those programs and their interoperability of crop insurance, I think some of that has to be
evaluated, he said.
Redpath said that with wheat, corn and soybean prices declining for the past few years, the farm aid
system is under a stress test and lawmakers will see how well those programs have performed under
pressure. That could inform how they craft the next farm bill, he said.
Peterson has pushed to move up the schedule on the 2018 farm bill to aid farmers hit by declining crop
prices. Conaway hasn't given any specific support for pushing through a farm bill on an advanced
schedule, but told an Amarillo, Texas news outlet in August that he remains committed to the farm bill
and to overhauling programs he believes fail to deliver aid to struggling farmers.
Subcommittee Stability.
Rep. Rodney Davis (R-Ill.), chairman of the Biotechnology, Horticulture and Research subcommittee won
re-election and is likely to retain his position. Rep. Suzan DelBene (D-Wash.), the subcommittee's
ranking member, won re-election as well.
Rep. Rick Crawford (R-Ark.) is set to retain his position as chairman of the General Farm Commodities
and Risk Management subcommittee after voters re-elected him. Chairmanship of that panelwhich has
oversight of the Commodity Futures Trading Commissionwas held by Conaway before he assumed
leadership of the full panel. Rep. Tim Walz (D-Minn.), the subcommittee's ranking member, won his seat
and is positioned to resume his spot on the panel.
Rep. David Rouzer (R-N.C.), chairman of the Livestock and Foreign Agriculture Subcommittee, is poised
to keep his position after being re-elected. Rouzer took his spot on the Agriculture Committee after Rep.
Mike McIntyre (D) retired from representing North Carolina's 7th District.
Several retirements on the committee could open up the way for Rep.-elect Roger Marshall (R-Kan.),
who defeated Rep. Tim Huelskamp in Kansas's 1st district Republican primary, to take a seat on the
committee. Huelskamp lost the support of many farmers after he opposed the 2014 farm bill. ThenHouse Speaker John Boehner (R-Ohio) ousted Huelskamp from the Agriculture Committee in retaliation,
marking the first time in nearly a century that a Kansan didn't sit on the panel.
Both Huelskamp and Marshall ran their primary campaigns on a pledge to regain a seat on the panel for
Kansas's 1st district, known as the Big First.
Rep. Randy Neugebauer (R-Texas), one of the most senior Republicans on the panel, is retiring, along
with Reps. Chris Gibson (R-N.Y.), Dan Benishek (R-Mich.) and Gwen Graham (D-Fla.).
Moving to fill Neugebauer's seat is Rep.-elect Jodey Arrington (R), who won Texas's reliably Republican
19th congressional district. Arrington has said he intends to work with Conaway and the Agriculture
Committee as a whole to include cotton farmers in any aid packages in the upcoming farm bill. It's
unclear whether he will gain a seat on the panel, however.
Committee member Brad Ashford (D-Neb.) lost his House seat to his Republican challenger, Don Bacon.
Also, committee member Ann Kirkpatrick (D-Ariz.) is not returning to Congress next year. She lost her bid
to oust John McCain (R) from his Arizona Senate seat.
To contact the reporter on this story: Casey Wooten in Washington at cwooten@bna.com
To contact the editor responsible for this story: Paul Hendrie at pHendrie@bna.com

House Appropriations: Term Limits, Retirements Rework House Approps Lineup


BNA Snapshot
Term limits, retirements force changes at committee
New roster of leaders seen in next Congress

By Nancy Ognanovich
Nov. 9 Republican term limit rules and retirements on both sides of the

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aisle will reshape the lineup of leaders at the House Appropriations
Committee in the 115th Congress.
The changes start at the top, where Chairman Hal Rogers (R-Ky.) is
expected to hand over his gavel to Rep. Rodney Frelinghuysen (R-N.J.)
next year. Rogers, who has served the maximum six years at the helm of
the committee, is not expected to win a waiver to stay longer in the chair than allowed by Republicans
term limit rules.
That switch, in turn, is likely to set in motion a revamping of the lineup of subcommittee cardinals,
beginning with the Defense Subcommittee Frelinghuysen currently leads. A similar makeover is expected
to be seen in the roster of Democratic subcommittee leaders.
The changes mean new leaders will have a large say over how more than $1 trillion in federal
discretionary monies are distributed annually. Among other things, they will be in position to help the
administration of President-elect Donald Trump determine how to tackle the automatic budget cuts
known as sequestration when they take up the fiscal year 2018 spending bills next spring.
They're going to have to do new bills while at the same time budget reform issues are going to be taken
up at the Budget Committee, said Jim Dyer, a principal at Podesta Group who previously served as staff
director of the committee. You've got the threat of budget sequestration back on the table and the debt
limit is coming back in February. So that's a lot to deal with.
New Roster of GOP Cardinals
Rogers helped the committee avoid those across-the-board cuts and shepherded complete sets of
spending bills reflecting bipartisan budget deals during his tenure as chairman. But Rogers's willingness
to strike deals with congressional Democrats and President Barack Obama generated criticism from
House Freedom Caucus members, who opposed the budget agreements and now are among those
likely to fight any bid Rogers might make for a waiver to stay in the chair.
Instead, Frelinghuysen, who at Defense has overseen the division of more than $500 billion in annual
Pentagon spending, is seen as moving into the committee chairmanship. Rogers is said to have also
expressed interest in the chairmanship of Defense, but observers said they think it's more likely that Rep.
Kay Granger (R-Texas), next in line behind Frelinghuysen, will be tapped to lead the panel.
Dyer said such a change then will ripple through the panel, beginning at the State Foreign Operations
Subcommittee now led by Granger. Her departure for Defense would leave an opening for Rep. Mario
Diaz-Balart (R-Fla.)an outspoken critic of Obama's Cuba policyto possibly move into the slot. That,
in turn, would require new leadership at the Transportation, Housing, and Urban Development
Subcommittee that Diaz-Balart currently leads. Should Rogers seek a different panel to chair, THUD is
seen as critical for directing resources to states like Kentucky, particularly as federal highway and transit
programs will need to be reauthorized next year.
Retirements in Republican ranks also are forcing changes in the roster of cardinals. The departure of
Rep. Ander Crenshaw (R-Fla.) at the helm of the Financial Services Subcommittee will create an opening
for a new chair at the panel that oversees the budgets of the Securities and Exchange Commission and
other regulatory agencies.
Agriculture Subcommittee Chairman Robert Aderholt (R-Ala.) earlier was said interested in also trying to
ascend to the full committee chairmanship. But while he now doesn't appear ready to challenge
Freilinghuysen for the post, it still is possible Aderholt might seek the chairmanship of Financial Services
or another panel. However, the Financial Services bill remains among the most problematic of the 12
annual spending bills and the job may go to one of the younger members such as Rep. Tom Graves (RGa.), current chairman of the Legislative Branch Subcommittee. Other lawmakers including Kevin Yoder
(R-Kan.) and Steve Womack (R-Ark.) also are said to be in line to get their first subcommittee
chairmanships.
Senior members at other panels also could switch chairmanships. But many are expected to remain in
their current assignments. Among them are Rep. Tom Cole (R-Okla.) at Labor, Health, and Human
Services; John Culberson (R-Texas) at Commerce-Justice-State; Rep. Mike Simpson (R-Idaho) at
Energy and Water; Rep. John Carter (R-Texas) at Homeland Security; Ken Calvert (R-Calif.) at InteriorEnvironment; and Rep. Charlie Dent (R-Pa.) at Military Construction and Veterans Affairs.
Overall, committee Republicans fared well in their re-elections. Rep. David Jolly (R-Fla.), who wasn't
chairman of a subcommittee, was the only member on the panel to lose his race.

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Democrats Lineup Also Changing
Most committee Democrats won their re-election races or ran unopposed, including ranking member
Rep. Nita Lowey (D-N.Y.). But Rep. Mike Honda (D-Calif.) lost his race. Meanwhile, some changes in the
panel's roster of subcommittee ranking members are expected due to a number of planned retirements.
The changes begin at Agriculture, where ranking member Rep. Sam Farr (D-Calif.) is retiring at year's
end. Rep. Rosa DeLauro (D-Conn.), next in line, is expected to keep her ranking spot on Labor-HHS.
Behind her is Rep. Sanford Bishop (D-Ga.), who currently is ranking member on Milcon-VA. Aides said
Bishop might give up the Milcon slot to be ranking on Agriculture. If he doesn't, the far more junior
committee member Rep. Chellie Pingree (D-Maine) is seen as having a shot at the ranking job.
The C-J-S Subcommittee also will have a new ranking member after Rep. Chaka Fattah (D-Pa.) resigned
his House seat. Rep. Mike Honda (D-Calif.) was named acting ranking member after Fattah's departure
but his election loss means another member will have to be tapped for the job.
A move by Bishop to be ranking on Agriculture would leave open the Milcon-VA ranking job. Farr, next in
line, is retiring, and Rep. David Price (D-N.C.) isn't seen as interested in the post. As a result, Rep.
Barbara Lee (D-Calif.) might have a chance to serve in her first ranking spot on the committee.
Lee also would be in line to be ranking on State-Foreign Ops, if Lowey gave up her ranking spot on that
subcommittee. However, Lowey hasn't indicated an interest in giving up the subcommittee post.
Many other Democrats are expected to keep their current ranking member jobs, including Rep. Pete
Visclosky (D-Ind.) at Defense; Rep. Marcy Kaptur (D-Ohio) at Energy and Water; Rep. Jose Serrano (DN.Y.) at Financial Services; Rep. Lucille Roybal-Allard (D-Calif.) at Homeland Security; Rep. Betty
McCollum (D-Minn.) at Interior-Environment; Rep. Debbie Wasserman Schultz (D-Fla.); and Price at
THUD.
Committee chairmen and ranking members are selected by Republican and Democratic steering
committees and then approved by party caucuses. The steering committees will meet in December.
By Nancy Ognanovich
To contact the reporter on this story: Nancy Ognanovich in Washington at nognanov@bna.com
To contact the editor responsible for this story: Paul Hendrie at pHendrie@bna.com

House Armed Services: Lots of Turnover at HASC, but Leadership Stays Stable
By Andrew Clevenger
Nov. 9 The House Armed Services Committee (HASC) will feature a lot
of new faces, but not in key leadership positions.
HASC Chairman Mac Thornberry (R-Texas) and ranking member Adam
Smith (D-Wash.) will continue in their respective roles in the 115th
Congress.
This provides the panel with some stability and enables it to continue with the acquisition reform agenda
it began in the fiscal 2017 National Defense Authorization Act, said Alan Chvotkin, executive vice
president and counsel of the Professional Services Council.
However, chairmanship of two key subcommittee will be up for grabs, as Rep. J. Randy Forbes (R-Va.)
lost his primary, and Rep. Joe Heck (R-Nev.) lost his race for the Senate. That opens up the top spots in
the Seapower and Projection Forces and Military Personnel subcommittees, respectively.
Rep. Loretta Sanchez (D-Calif.) who served as ranking member of the Tactical Air and Land Forces
Subcommittee, lost her bid to for the Senate, creating another leadership opening.
Areas of Concern
Once those leadership positions are filled, Thornberry is likely to return to his agenda of acquisition
reform, said Robert Burton, a partner in Crowell & Moring's government contracts practice and a former
acting administrator of the Office of Federal Procurement Policy.
Program management is an area of concern, as is the Defense Contract Audit Agency's incurred-cost
audits and whether the agency has gotten its backlog under control, he said.

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The Pentagon's approach to commercial purchasing will be another issue that garners attention from the
HASC and Senate Armed Services Committee, Burton said.
I do think that the Armed Services committees are very concerned about [the Defense Department's]
inability to really execute commercial purchases well, he said. They have such a hard time writing
requirements that are not uniquely oriented to DOD.
Lots of Moving Parts.'
Although the election resulted in not much turnover in HASC leadership roles, the 61-member panel will
feature at least 11 new faces. FourHeck, Sanchez, and Reps. Tammy Duckworth (D-Ill.) and John
Fleming (R-La.)ran for higher office. Reps. Christopher Gibson (R-N.Y.), Gwen Graham (D-Fla.), John
Kline (R-Minn.), Jeff Miller (R-Fla.) and Richard Nugent (R-Fla.) did not run for re-election.
In addition to Forbes primary loss, Rep. Brad Ashford (D-Neb.) lost his race, creating another opening on
the committee.
There are lots of moving parts on the Republican side, Chvotkin said. Most of the members here don't
have positions here on other committees. There will be some jockeying as people move up the ladder.
To contact the reporter on this story: Andrew Clevenger in Washington at aclevenger@bna.com
To contact the editor responsible for this story: Jerome Ashton at jashton@bna.com

House Budget: Price, Yarmuth Seen Atop House Budget Panel in New Congress
BNA Snapshot
Would be Price's second term at Budget Committee helm
Trump victory could help advance budget process overhaul as well

By Jonathan Nicholson
Nov. 9 Rep. Tom Price (R-Ga.) is expected again to helm the House
Budget Committee in the 115th Congress, while Rep. John Yarmuth (DKy.) is seen as likely to become the ranking Democrat on the panel.
Price has led the panel since 2015, following Rep. Paul Ryan (R-Wis.) who
went on to become chairman of the House Ways and Means Committee
and then House Speaker.
Remaining chairman would put Price in the middle of various policy debates in the next Congress as
Republicans are seen as likely to use budget reconciliation to attempt to roll back various policies put in
place by President Barack Obama and congressional Democrats in recent years.
In addition, Price has been working to draft a complete overhaul of the 1974 Congressional Budget and
Impoundment Act, the law that basically set up the modern federal budget process. Donald Trump's
victory on Election Day could provide momentum for that project in 2017.
Yarmuth would replace Rep. Chris Van Hollen (D-Md.), who won election to the Senate to replace the
retiring Sen. Barbara Mikulski (D-Md.). While Yarmuth would have to be approved by Democratic Leader
Nancy Pelosi (D-Calif.) and the Democratic caucus as well, he has been openly lobbying his colleagues
for the spot since the summer.
To contact the reporter on this story: Jonathan Nicholson in Washington at jnicholson@bna.com
To contact the editor responsible for this story: Paul Hendrie at phendrie@bna.com

House Education and Workforce: Rep. Foxx May Cut Rules if Named Labor Panel Chairwoman
BNA Snapshot
Rep. Virginia Foxx (R-N.C.) is widely expected to take over as Education and the Workforce
chairwoman next year
She says she'll look to scrap various Obama administration initiatives, update existing labor law

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By Chris Opfer
Nov. 9 Rep. Virginia Foxx (R-N.C.) wants to reverse a variety of Obama
administration labor actions and push legislation to limit the executive
branch's regulatory authority if she's named chairwoman of the Education
and the Workforce Committee in the next Congress.
We need to not just roll back the regulations from the Obama
administration, but write legislation that makes it abundantly clear what
Congress wants, Foxx told Bloomberg BNA Nov. 9. We don't want any presidentRepublican or
Democratto legislate, and that's what many of these rules do.
Foxx is considered the front-runner for the committee's leadership post when Rep. John Kline (R-Minn.)
retires at the end of the year. She said the Labor Department's overtime and fiduciary rules are likely to
be top targets under her watch, along with a National Labor Relations Board decision expanding joint
employer liability and a recent regulation to streamline the union representation election process.
Across the aisle, ranking member Bobby Scott (D-Va.) is expected to stay in that role now that Hillary
Clinton's Democratic running mate, Tim Kaine (D-Va.), will be returning to the Senate. Scott and the
panel's other Democrats will once again be fighting an uphill battle against the Republican majority.
Little Room for Bipartisanship
Foxx has been a harsh critic of the Labor Department, NLRB and Education Department under the
Obama administration for moves she says hamper business activity and public school operations. She's
already making no bones about wanting to undo much of the Obama administration's labor agenda.
We have so much to do in so little time, Foxx said. Our number one priority is block and repealing
Obama administration rules and regulations.
That work is likely to start with new legislation to scrap many of the initiatives. Foxx said she'd also like to
see the committee take up measures to update existing laws, such as the National Labor Relations Act.
There hasn't been a whole lot of common ground for the committee on labor issues, but Foxx and Scott
may consider taking a bipartisan approach to student loans and other education matters. They may also
be asked to consider new job training and apprenticeship programs if President-elect Donald Trump is
able to get Congress to back his ambitious intentions for infrastructure spending.
Foxx said she hasn't yet talked to Trump about the committee's agenda, but believes that he'll be on
board with her approach.
I expect President-elect Trump to work very well with the Congress, Foxx told Bloomberg BNA. I think
he understands our respective roles.
To contact the reporter on this story: Chris Opfer in Washington at copfer@bna.com
To contact the editors responsible for this story: Peggy Aulino at maulino@bna.com; Terence Hyland at t
hyland@bna.com

House Energy: Race for Chair of House Energy and Commerce Up in the Air
BNA Snapshot
Three Republicans are vying to lead House Energy and Commerce Committee
President-elect Donald Trump and an emboldened conservative wing in the House make the race's
outcome unclear

By Rachel Leven and Alex Ruoff


Nov. 9 Just when you thought elections were over, there's another key
contest to watcha three-way race to run the House Energy and
Commerce Committee starting in 2017.
The race has a front-runnerRep. John Shimkus (R-Ill.); a competitive
challengerRep. Greg Walden (R-Ore.); and a longshot candidateRep.

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Joe Barton (R-Texas). Of course, this race was expected to play out under
the status quo of a Rep. Paul Ryan (R-Wis.) speakership, but with President-elect Donald Trump and an
emboldened conservative wing in the House, Ryan's future is unclear, as is this race.
Who becomes chairman matters because it translates to different agendas for the committee. And where
seniority plays a large role in determining who will lead a given committee, it is the chairman's
prerogative to choose subcommittee chairs, a committee spokesman told Bloomberg BNA in an e-mail.
The race for chairman will move into the spotlight following the party's successful holding of the lower
chamber. Congressman Frank Pallone (D-N.J.) will aim to continue on the committee as ranking
member, a Pallone spokesman told Bloomberg BNA.
The seat is opening because Chairman Fred Upton (R-Mich.) hit his six-year term limit and won't request
a waiver, the committee spokesman, Sean Bonyun, told Bloomberg BNA in an e-mail. That left three of
the next four senior Republicans on the committee vying for the chairmanship.
The Players
Barton is the most senior of the candidates. He served as chairman of the committee for one session in
the early 2000's and also has served as ranking member. The House needs someone to step in and act
right away, he said, adding that his previous experience guiding bills such as major energy legislation
and National Institutes of Health reauthorization through Congress makes him right for the job.
Among his potential priorities are rescinding the Affordable Care Act and clarifying the limitations of
administrative authority under the Clean Air Act, Barton said. Barton would work with House leadership
and Trump on their priorities and would consider rescinding the Clean Power Plan legislatively, if needed,
he said.
The American people are rightly going to require real change, real fast, Barton said, calling the
Republican sweep a rare opportunity. I'm the only one that's actually done it.
Shimkus, the second most senior contender, is widely believed to be the front-runner. Shimkus has said
he wants to reauthorize the Federal Communications Commission, if chosen as chairman. He also has
mentioned that the departure of Senate Minority Leader Harry Reid (D-Nev.) provides an opportunity to
get the Yucca Mountain nuclear storage site opened as the single U.S. site for nuclear waste.
Meanwhile, Greg Walden (R-Ore.) wants the leadership job and has kept his name in the running, at
least in part because of his time as the chair of the Nation Republican Congressional Committee, a
political committee supporting House members. Walden has contributed $500,000 to the Republican
congressional committee total, while Shimkus donated about $276,000 total, according to Federal
Election Committee filings.
The Presidential Race and the Chair
The race has been ongoing; however, President-elect Donald Trump (R) may throw a wrench into the
mix. As the election results came in Nov. 8, Trump friend and Fox News host Sean Hannity made a bold
statement: if Trump's in, House Speaker Ryan is out. House Republicans will nominate the next speaker
on Nov. 15.
Chris Vieson, a partner at PSW Inc. and former director of floor operations for former House Majority
Leader Eric Cantor (R-Va.), told Bloomberg BNA that while chairmen that are already in place would
likely stay in place, this chairmanship which is up in the air could be vulnerable if Trump played that card.
I think the growing sense is that whoever Ryan wants will become the next chairman, Vieson said of the
race. It would be the same for whoever is speaker.
It doesn't mean that Trump absolutely will seek Ryan's immediate ouster as speaker, Vieson said, adding
that it would be very tone deaf of him and his staff to start his presidency that way.
Talking Subcommittees
Some subcommittees for the committee could see leadership changes, as well. The chairman will
ultimately pick the subcommittee chairs.
Among the subcommittees up for a new chair is the Health Subcommittee, which will have a new
chairman because Rep. Joe Pitts (R-Pa.) is retiring. Rep. Brett Guthrie (R-Ky.) is the vice chairman of the
subcommittee and likely replacement.

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
Additionally, the Environment and the Economy Subcommittee may need a new chair, should its current
chairman Shimkus move to lead the full committee.
There is still time for some movement on legislation in the committee during the lame duck, as well,
under current committee leadership. The committee has broad jurisdiction over drinking water,
hazardous waste, mining waste, injection wells, plant security and toxic chemicals.
Room for Action During Lame Duck
For example, Upton has been seeking a deal to enact his landmark legislation, the 21st Century Cures
Act (H.R. 6) during the lame-duck session. He has support from House leadership but faces opposition
from Democrats who want to include new provisions aimed to curb rising drug prices.
The House passed the bill in the summer of 2015, but the legislation has been held up in the Senate over
disagreements on its multibillion-dollar price tag. Further complicating the matter, more than a dozen
groupsincluding the Center for American Progress, the AFL-CIO, and Public Citizensent a letter Oct.
26 to Democratic leaders in the House and Senate asking them to delay passing Cures until 2017.
A spokesman for the Democrats on the Energy and Commerce Committee told Bloomberg BNA that any
final Cures bill must include some policies that facilitate access to affordable drugs. However, what
provisions Democrats will demand is unclear.
Committee members have said they're likely to holding hearings on the ongoing implementation of the
Medicare doctor payment system created under the Medicare Access and CHIP Reauthorization Act
(MACRA), a 2015 law, and ways to expand Medicare reimbursement for telehealth services.
To contact the reporter on this story: Rachel Leven in Washington, D.C. at rleven@bna.com; Alex Ruoff
in Washington at aruoff@bna.com
To contact the editor responsible for this story: Larry Pearl at lpearl@bna.com

House Financial Services: Dodd-Frank Likely Target of Emboldened House Financial Panel
BNA Snapshot
Republican sweep poses risk to Dodd-Frank
Trump victory puts political pressure on CFPB

By Jeff Bater
Nov. 9 The surprising Republican sweep of Congress and the White
House clears a path for House Financial Services Committee Chairman
Jeb Hensarling (R-Texas) to mount a serious challenge to the Dodd-Frank
law.
The question is, how far will any deregulatory agenda go?
Hensarling easily won back his seat Nov. 8, as did the ranking committee member, Rep. Maxine Waters
(D-Calif.). Many of the other lawmakers on the 60-member panel were returned to office as well.
Depending on reassignments to the committee, its composition in the 115th Congress could largely
mirror its makeup in the last session. But with the election over, the fight over Dodd-Frank ceases being
a mere rhetorical exercise.
Attack on Dodd-Frank
One of the key questions is how far Republicans will go to gut Dodd-Frank, Ian Katz, an analyst at
Capital Alpha Partners, wrote in a note. Wall Street banks have already spent millions, and years
overhauling themselves and shedding divisions to comply with regulations including the Volcker rule.
Financial lobby groups have suggested that banks wouldn't even want Dodd-Frank repealed. However,
the Republicans will surely try to eliminate some aspects of it.
A vocal member of the committee, Rep. Scott Garrett (R-N.J.), won't return to participate in whatever role
the panel has in reshaping Dodd-Frank. Garrett, defeated in his reelection bid, had chaired the
Subcommittee on Capital Markets and Government Sponsored Enterprises.

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Garrett introduced legislation in 2013 to do away with Fannie Mae and Freddie Mac and rely on private
capital to replace their role in the secondary mortgage market. He also pushed for more transparency by
the Financial Stability Oversight Council, which was established by Dodd-Frank.
Katz expects a move to either eliminate or severely restrict the authority of FSOC. In addition, he said the
GOP will most likely propose raising the $50 billion threshold that makes banks systemically important
and subjects them to Federal Reserve oversight.
It's not clear yet whether they will be able to accomplish that without 60 votes in the Senate, Katz wrote.
Another GOP panel member defeated in the polls was Rep. Frank Guinta (R-N.H.). He pushed legislation
last year that called for repealing a 2013 bulletin by the Consumer Financial Protection Bureau on
indirect auto lending. Guinta had said his bill would require more economic study of the CFPB's rush to
regulate an important economic sector.
The creation of the CFPB was a pivotal part of the overhaul of financial regulation shepherded by
President Barack Obama as a response to the 2008 financial crisis. Dodd-Frank passed Congress on a
sharply partisan vote, and Republican discontent with the law lingered far beyond the 2010 vote.
Richard Hunt, president of the Consumer Bankers Association, told Bloomberg BNA he hopes Congress
can work together to improve the CFPB structure by making it a five-person, bipartisan commissionnot
an agency led by a single person.
We're not calling for repeal of Dodd Frank, he said. We're not calling for the elimination of the CFPB
and, in fact, it's ironic that we in the banking industry are calling for the CFPB to continue in existence,
obviously, but in a more balanced, structured format.
Trump and Hensarling
With Obama in the Oval Office, though, any legislative challenge to the Dodd-Frank was an ideological
exercise because a veto was assured. Donald Trump's victory over Hillary Clinton gives Hensarling a
crucial ally in his fight to change financial regulation.
Hensarling introduced legislation this year meant to roll back Dodd-Frank. The committee voted 30-26 on
Sept. 13 for the Financial CHOICE Act, which calls for turning the CFPB into a five-person commission
and subject the bureau to congressional appropriations.
Furthermore, Hensarling's bill, H.R. 5983, calls for repealing Dodd-Frank's Title II orderly liquidation
authority. Under the legislation, banks that maintain a simple leverage ratio of at least 10 percent and
have a composite CAMELS rating of 1 or 2 may elect to be functionally exempt from the post Dodd-Frank
supervisory regime, the Basel III capital and liquidity standards, and a number of other regulatory
burdens that predate the law.
PHH Option
Aside from the Financial CHOICE Act, another tactical option for Hensarling and other Republicans
involves a key October ruling by a federal appeals court that took away power from the CFPB director.
The U.S. Court of Appeals for the District of Columbia Circuit, in PHH Corp. vs. CFPB, found the agency
to be unconstitutionally structured and decided the director can be removed by the president at will
instead of just for cause. Soon after the decision, Hensarling sent a letter to Richard Cordray, the
bureau's director, saying the ruling means the CFPB is subject to executive orders requiring federal
agencies to ensure the benefits of their proposed regulations outweigh the costs. Some legal experts
disagree with Hensarling's interpretation.
Federal Financial Analytics predicts Dodd-Frank is done for.
Although the law is the law and will only change over time, its systemic, structural assumptions are as
smashed as those behind post-crisis Federal Reserve policy, the consultant firm said. The largest U.S.
banks face the most acute political challenge, with populist forces on both sides of the aisle combining to
push for actions such as 10 percent leverage ratio with significant regulatory relief provided only for
community banks and smaller regional ones. The CFPB and FSOC will be dismantled first by
administrative action and then by law.
Isaac Boltansky, an analyst for Compass Point Research & Trading, is forecasting the CFPB will become
far less impactful.

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We believe that the Consumer Financial Protection Bureau will face persistent political pressure from
both a Trump White House and the 115th Congress, Boltansky wrote in a note. Our sense is that
president-elect Trump could choose to dismiss Director Cordray and fill the post with someone more
ideologically aligned with his world view.
To contact the reporter on this story: Jeff Bater in Washington at jbater@bna.com
To contact the editor responsible for this story: Michael Ferullo at MFerullo@bna.com

House Foreign Affairs: House Foreign Affairs Chair Re-Elected


BNA Snapshot
House Foreign Affairs chairman re-elected
Several current members retiring

By Rossella Brevetti
Nov. 9 Rep. Ed Royce (R-Calif.) cruised to victory in the Nov. 8 election
and is expected to maintain the chairman's gavel of the House Foreign
Affairs Committee when the new Congress is sworn in next year.
Royce has been an outspoken critic of President Barack Obama's policy of
engagement with Cuba. In a recent statement, Royce said existing U.S.
law mandates that the Cuba embargo remain until there is a government in
Cuba that releases political prisoners and allows for free and fair elections.
The White House has an obligation to uphold and defend the lawwhether it likes it or not, Royce has
said.
The chairman has also been a proponent of stronger economic sanctions, criticizing what he
characterized as the Obama administration's tepid implementation of existing sanctions programs.
Another strong critic of the Obama administration's Cuba policy, Cuban-American Ileana Ros-Lehtinen
(R-Fla.) won re-election. Ros-Lehtinen currently chairs the panel's Middle East and North Africa
Subcommittee. She is the most senior U.S. representative from Florida and represents Florida's 27th
congressional district.
Ranking member Eliot Engel (D-N.Y.) was also handily re-elected and is expected to keep his leadership
post pending committee assignments. Engel has been a chief sponsor of legislation (H.R. 4939) that
would strengthen U.S. engagement with Caribbean countries.
Rep. Matt Salmon of Arizona, current chairman of the Committee on Foreign Affairs, Subcommittee on
Asia and the Pacific, is retiring. Other Republican members of the panel who are retiring are Curt
Clawson of Florida and Reid Ribble of Wisconsin, according to a committee aide.
Democratic member Alan Grayson of Florida did not run for re-election. Committee assignments will not
be known for weeks, a Democratic aide told Bloomberg BNA in an e-mail.
Current Republican members of the committee include: Christopher Smith (N.J.), Dana Rohrabacher
(Calif.), Steve Chabot (Ohio), Joe Wilson (S.C.), Michael McCaul (Texas), Ted Poe (Texas), Tom Marino
(Pa.), Jeff Duncan (S.C.), Mo Brooks (Ala.), Paul Cook (Calif.), Randy Weber (Texas), Scott Perry (Pa.),
Ron DeSantis (Fla.), Mark Meadows (N.C.), Ted Yoho (Fla.), Scott DesJarlais (Tenn.), David Trott
(Mich.), Lee Zeldin (N.Y.) and Daniel Donovan (N.Y.). They all won re-election. At press time, Rep. Issa
appeared to be winning a tough challenge from Marine colonel Doug Applegate.
Democratic members of the panel include: Brad Sherman (Calif.), Gregory Meeks (N.Y.), Albio Sires
(N.J.), Gerald Connolly (Va.), Theodore Deutch (Fla.), Brian Higgins (N.Y.), Karen Bass (Calif.), William
Keating (Mass.), David Cicilline (R.I.), Alan Lowenthal (Calif.), Grace Meng (N.Y.), Lois Frankel (Fla.),
Tulsi Gabbard (Hawaii), Joaquin Castro (Texas), Robin Kelly (Ill.) and Brendan Boyle (Pa.). All the
members won re-election. However, at press time, Ami Bera (Calif.) was leading in a tight race.
The Foreign Affairs Committee has jurisdiction over legislation impacting the diplomatic community,
which includes the Department of State, the Agency for International Development and the enforcement
of the Arms Export Control Act.

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To contact the reporter on this story: Rossella Brevetti in Washington at rbrevetti@bna.com
To contact the editor responsible for this story: Jerome Ashton at jashton@bna.com

House Homeland Security: House Homeland Security to Continue Cybersecurity Focus


BNA Snapshot
House Homeland Security will focus on cybersecurity, encryption, DHS reauthorization in McCaul's final
term as chairman
Republican-controlled House and Senate may enable border security legislation

By Daniel R. Stoller
Nov. 9 The House Homeland Security Committee will continue to tackle
cybersecurity, encryption and national defense issues in the Republicancontrolled House elected Nov. 8, Committee Chairman Michael McCaul (RTexas) told Bloomberg BNA.
McCaul, who won his re-election bid in the Texas 10th congressional
district, will lead the committee in the 115th Congress. McCaul told
Bloomberg BNA that this would be his last term as chairman because House Republican committee rules
limit a chairman to three terms at the head of a committee.
Cybersecurity has never played such an important role in our homeland defense so it will be a priority of
the panel, McCaul said. U.S. information technology infrastructure must be protected from threats from
nation-states and rouge cyber actors and cybersecurity research and development can help protect
individual and government information, he said.
The committee plans to continue to monitor implementation of the Cybersecurity Information Sharing Act
(CISA) to make sure the Department of Homeland Security is working with its information-sharing
partners in industry and at the state and local level, McCaul said. CISA provides protections to
companies who share a cybersecurity threat indicator or defensive measure with the government.
Under CISA, private entities that promptly share their data with the government are granted immunity
from any public or private cause of action.
A spokesman for Rep. Thompson (D-Miss.), the committee's ranking member who is expected to hold
this position, told Bloomberg BNA that he also supports continued oversight of the DHS. Thompson will
focus mainly on conducting oversight to ensure that the authorities and resources are being utilized in
ways that enhance cybersecurity in the federal government and privacy sector, the spokesman said.
Andrew Howell, a cybersecurity partner at Monument Policy Group in Washington, told Bloomberg BNA,
that with the election over and no apparent issues having arisen with ballot box cybersecurity, the panel
will likely put any congressional initiatives in the area on the back burner.
Encryption Debate Continues
A highly-publicized battle between Apple Inc. and the Federal Bureau of Investigation over access to an
encrypted iPhone put law enforcement agencies' access to consumers' encrypted data under the
microscope. Law enforcement agencies access to encrypted data will remain a priority of the House
Homeland Security Committee through the 115th Congress and beyond, McCaul said.
McCaul said that the use of encryption by terrorists and criminals is an issue that is not going away.
Gaining access to encrypted information for legitimate law enforcement purposes remains a major
challenge facing the U.S. government and domestic and international intelligence communities, he
said.
McCaul, along with Sen. Mark Warner (D-Va.), introduced bipartisan legislation in 2016 that would create
an encryption commission. The commission, comprised of federal and private sector stakeholders, would
provide recommendations on the best path forward for the privacy and security of U.S. citizens, McCaul
said. It is unclear whether the sponsors will reintroduce the legislation in the 115th Congress.
Howell told Bloomberg BNA that encryption will be a big issue, as it seems the FBI will be launching a
new effort in this area, which will force Congress to react in some way.
Cyberattacks, Workforce Concerns

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An October disturbed denial of service (DDoS) that took advantage of unsecured internet of things
devices and took down Amazon.com and Netflix Inc., among other major websites, will cause the
committee to hold hearings and increase oversight into cybersecurity, Howell said.
McCaul echoed the need to look into cyberattacks on a national scale. The committee leaders plans on
releasing a national cybersecurity strategy to help guide Congressional and Administrative efforts to
combat against cyberattacks and data breaches.
Ranking member Thompson also supports continued oversight of the DHS's efforts to hire, train and
maintain its cyber workforce, his spokesman said.
Howell agreed that the committee may focus on cybersecurity workforce issues and how Congress can
implement policies to help produce a more capable and larger cybersecurity workforce.
Other Policy Initiatives
Howell said that the House Homeland Security Committee will look to reauthorize the DHS in whole or in
parts.
McCaul confirmed that the committee will continue a robust evaluation of DHS's structure and mission
and will be releasing an in-depth report with policy recommendations. Reauthorizing DHS for the first
time is critical so that it may better carry out its vital purpose of protecting the homeland from domestic
and foreign threats.
Border security is another top priority for the committee, McCaul said. The committee will draft
legislation to keep terrorists, criminals and illegal traffic out of the country, while facilitating legitimate
trade and travel, he said.
Howell agreed that the panel will focus on border security but was less optimistic that robust border
control would gain traction in the Senate.
Howell said that the homeland security panel may turn its focus on cargo security, Howell said. Much
like the recent examination on port security, there will be a discussion on what works, and what doesn't,
in terms of maritime cargo security, he said.
No House Homeland Shuffle
Due to the Republicans remaining in control of the House, the make up of the committee will largely
remain the same.
Reps. Will Hurd (R-Texas) and Martha McSally (R-Ariz.) both won their House races and are expected to
remain on the House Homeland Security Committee.
For the Democrats, Thompson is expected to continue to be the ranking members on the committee,
according to Bloomberg Government analysts.
Additionally, Rep. Loretta Sanchez (D-Calif.) vacated her House seat in a bid for the Senateshe lost to
Senator-elect and California Attorney General Kamala Harris (D). House Democrat leaders haven't
announced plans to fill Sanchez's slot.
To contact the reporter on this story: Daniel R. Stoller in Washington at dstoller@bna.com
To contact the editor responsible for this story: Donald G. Aplin at daplin@bna.com

House Judiciary: Goodlatte Poised for One More Term As Judiciary Chair
By Alexei Alexis
Nov. 9 Rep. Robert Goodlatte (R-Va.) is expected to focus his final term
as House Judiciary Committee chairman on unfinished priorities including
overhauling patent litigation, updating a decades-old e-mail privacy statute
and tweaking the federal merger review process.
Immigration could also be a committee focus, particularly given the
significant attention it received in the presidential race.
Tech Sector Watching

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The technology industry is among stakeholders that are hopeful about possible committee action on
immigration.
We clearly would like to see high-skilled immigration be included in anything that does move forward,
Craig Albright, vice president of legislative strategy at BSAThe Software Alliance, told Bloomberg BNA.
We'll be advocating for that and will be keeping an eye on it.
Industry would also like to see a renewed committee effort to update the 1986 Electronic
Communications Privacy Act (ECPA), which governs law enforcement access to e-mails, he said.
Given that Goodlatte only has one term left as chairman, he will probably want to tackle his top priorities
as quickly as possible in 2017, according to Chris Calabrese, vice president of policy at the Center for
Democracy & Technology, a Washington think tank.
As the term goes on and people start to focus on who will succeed Goodlatte as chairman, it will limit his
ability to wheel and deal, Calabrese said.
Goodlatte has chaired the committee for two Congresses and is eligible to lead the panel just one more
time under House Republican rules.
A Goodlatte spokeswoman declined to comment on the congressman's plans for the next Congress,
saying he is still focused on the current one.
Rep. John Conyers Jr. (D-Mich.) is expected to remain the committee's top Democrat. House Democrats
don't have term limits for their committee leaders.
Legislative Efforts
Despite a significant amount of committee work in the current Congress on legislation (H.R. 9) to combat
patent litigation abuse, Goodlatte was unable to get a bill to the floor.
It's a difficult topic, because there are so many industries that have an interest in it, said Christopher
Lewis, vice president of government affairs at Public Knowledge, a Washington public interest group.
The committee made slightly more progress on its ECPA overhaul effort. A committee bill (H.R. 699)
passed the House unanimously in April but stalled in the Senate.
I think there's a fair amount of momentum to address this again in the next Congress, Calabrese said.
Albright said there might be a broader look at ECPAboth domestic and international issues. The issue
is bubbling up more, he said. It's really hard to see how a purely domestic bill could move forward
without speaking to the international part.
The committee is expected to work on a related effort to reauthorize Section 702 of the Foreign
Intelligence Surveillance Act. The provision, which expires at the end of 2017, has been used to justify a
controversial internet-monitoring program at the National Security Agency.
In the area of antitrust, the committee could revisit legislation to harmonize conflicting merger review
approaches at the Federal Trade Commission and the Department of Justice. A committee bill (H.R.
2745) passed the House on a party-line vote, but has not been taken up in the Senate.
House Democrats criticized the legislation, saying that it would unnecessarily weaken the FTC by taking
away its ability to subject proposed mergers to administrative litigation. The bill also prompted concerns
from the White House.
Rep. Blake Farenthold (R-Texas), the bill's author, plans to reintroduce the measure in the next
Congress with no changes, a spokeswoman said.
Subcommittee Leaders
While top Judiciary committee leaders will remain the same, there could be some reshuffling at the
subcommittee level, particularly on the Republican side.
Rep. Trent Franks (R-Ariz.) will no longer be able to chair the Subcommittee on the Constitution and Civil
Justice because of term limits.
Whether Rep. Jim Sensenbrenner (R-Wis.) can return to the helm of the Subcommittee on Crime,
Terrorism, Homeland Security and Investigations is unclear. He has led the subcommittee for three

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terms, although the panel had a slightly different name the first time.
Based on our reading of the rules, Rep. Sensenbrenner has two more years to chair the subcommittee,
Bart Forsyth, the congressman's chief of staff, told Bloomberg BNA. Term limits don't apply where a
subcommittee's jurisdiction has changed.
It was not immediately clear whether Rep. Darrell Issa (R-Calif.), chairman of the Subcommittee on the
Courts, Intellectual Property and the Internet, will be returning to Congress next year, after a race that
was too close to call.
With assistance from Liz Crampton
To contact the reporter on this story: Alexei Alexis in Washington at aalexis@bna.com
To contact the editor responsible for this story: Tiffany Friesen Milone at tmilone@bna.com

House Natural Resources: Big Issues, Few Changes Set for House Resources Panel
BNA Snapshot
Leadership of House Natural Resources Committee not expected to change
Members will be part of lame-duck action on energy and water

By Alan Kovski
Nov. 9 The ranks of the House Natural Resources Committee will change next year after the current
members grapple with important issues in the pre-January lame-duck session of Congress.
But the committee changes in the 115th Congress are primarily because of retirements, not the results of
the Nov. 8 elections.
At the top, no change is expected. Chairman Rob Bishop (R-Utah) has not signaled any wish to move on,
nor has ranking member Raul Grijalva (D-Ariz.).
Bishop has pushed for federal regulatory restraint in the control of public land, a subject that comes up
again and again in the context of oil and gas development, mining, forest management, ranching, fishing,
water rights, rural community development and respect for states interests.
Grijalva has been the loyal opposition, agreeing with Bishop on virtually nothing.
Reps. Cynthia Lummis (R-Wyo.), Dan Benishek (R-Mich.) and Lois Capps (D-Calif.) will leave the
committee because they are retiring. Rep. John Fleming (R-La.) chose to rununsuccessfully, it turned
outfor the seat being vacated by Sen. David Vitter (R-La.) rather than running for re-election to the
House.
Lame-Duck Action to Watch
The committee's interests are intertwined in two House-Senate conferences that will attempt to work out
compromises on energy and water legislation during the lame-duck session.
The committee's majority members also may contribute support and advocacy for environmental riders in
an omnibus appropriations bill and the National Defense Authorization Act for Fiscal Year 2017 (H.R.
4909). The defense bill was passed by the House and awaits Senate action.
A continuing resolution has extended appropriations to Dec. 9. An alternative to action this year on an
omnibus spending bill would be another continuing resolution to delay an omnibus until Donald Trump is
sworn in as president, reducing the risk of a veto over environmental riders.
Democrats in the next Congress will continue to have enough Senate seats to block cloture motions, the
debate-ending motions that can allow the chamber to proceed to a final vote on a bill. Compromises on
the energy and water bill conferences, appropriations and the defense bill before the end of the year
might appeal to some lawmakers, especially Democrats, more than delaying legislation for a contest of
wills over cloture votes in the next Congress.
Conference Prospects Cloudy

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The Energy Policy Modernization Act of 2016 (S. 2012) was passed by the Senate as a deliberately
uncontroversial mix of energy provisions, notably for energy efficiency, electric grid security and an
expedited federal approval process for liquefied natural gas exports. It did not remain uncontroversial.
House Republicans, frustrated by Senate inaction on House-passed bills, responded by attaching 37 bills
to S. 2012not only energy bills but legislation on forest management and California water resources
that originated in the House Natural Resources Committee.
The fate of the energy conference may indicate how much merit was there to the approach of loading it
up with so many House bills, said Bill Imbergamo, executive director of Federal Forest Resource
Coalition.
His group's members would like to see an energy bill or appropriations bill with provisions to revamp
wildfire funding and expedite permitting for forest management actions such as timber harvests to thin
forests or create fire breaks.
Hopes for Energy Bill Deal
Imbergamo told Bloomberg BNA a successful energy conference bill was looking like a long shot but
ought to appeal to Sen. Maria Cantwell (D-Wash.) as an opportunity to reach a deal that she and so
many other people in both houses and parties might like on forests and wildfires.
Cantwell, ranking member of the Senate Energy and Natural Resources Committee, joined with Sen.
Lisa Murkowski (R-Alaska), chairman of the committee, in shaping the Senate bill. She and other
Democrats have their greatest misgivings about any provisions that might expedite projects while limiting
or blocking litigation.
Conferees might strip forest management and wildfire funding out of the energy legislation to make
compromise easier, but that could delay forest legislation to 2017, in turn delaying regulatory decisions to
fiscal year 2018. After several years of stalled action on wildfires and forests, another such delay would
be unconscionable, Imbergamo said, speaking Nov. 8, before Trump's election victory changed the
prospects for legislative action in 2017.
Imbergamo's view was that there is a general understanding among many members of Congress that
forest health is declining and that two basic issues need to be addressed as soon as possiblea revamp
of wildfire funding and expedited action on forest projects.
Water Legislation in the Mix
The conference on energy legislation includes the Western Water and American Food Security Act of
2015 (H.R. 2898), a bill originally introduced by Rep. David Valadao (R-Calif.) in the Natural Resources
Committee to address water supply strains in Valadao's drought-plagued home state.
H.R. 2898, or at least some elements of it, might be a better fit in the conference on the Water Resources
Development Act of 2016 (S. 2848 and H.R. 5303). The Senate expanded its WRDA bill from authorizing
U.S. Army Corps of Engineers projects into legislation that also addressed a host of Safe Drinking Water
Act, Clean Water Act and water supply issues.
Argument over water supply issues, notably drought response, could involve some horse trading
between California Republicans in the House and Sens. Dianne Feinstein (D-Calif.) and Barbara Boxer
(D-Calif.) during the lame-duck session. That would involve an overlap of the interests of the Natural
Resources Committee and the Transportation and Infrastructure Committee, where the House version of
WRDA originated.
Debra Calhoun, vice president of the Waterways Council Inc., a diverse association of parties advocating
for waterborne commerce, told Bloomberg BNA her group was hopeful about a successful WRDA
conference.
Calhoun said her group also wanted to see an omnibus appropriations bill make maximum authorized
use of revenues of the Inland Waterways Trust Fund and the Harbor Maintenance Trust Fund, the
dedicated revenues that help finance so much improvement and extensive rehabilitation of waterways
and ports.
To contact the reporter on this story: Alan Kovski in Washington at akovski@bna.com
To contact the editor responsible for this story: Larry Pearl at lpearl@bna.com

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House Oversight & Government Reform: House Oversight Panel Expected to Weigh Rulemaking, Drug Pricing
BNA Snapshot
House oversight panel expected to take on drug pricing and Obamacare exchanges
Reform of government rulemaking also foreseen

By Cheryl Bolen and James Swann


Nov. 9 The House Oversight and Government Reform Committee is likely to spend the coming
session investigating the high cost of prescription drugs as well as reviewing the government rulemaking
process.
The committee is expected to continue its exploration of the Affordable Care Act, including issues such
as premium increases and the failure of the ACA's CO-OP program. Other areas of interest will include
government efforts to decrease improper payments and federal cybersecurity efforts.
The Republicans lost six House seats in the national election, as of Nov. 9, but Chairman Jason Chaffetz
(R-Utah) is expected to maintain the current committee ratio.
The committee is the chief investigative and oversight panel for the House, and covers health care,
government operations, information technology, national security and transportation.
Government Reform Agenda
The committee also plans to overhaul government operations in the next Congress, a Republican
committee spokeswoman told Bloomberg BNA.
House Republicans have a long history of passing bills that would overhaul the way federal agencies
develop rules. Similarly, in the next Congress, the committee will consider whether more revisions of this
kind are necessary, the spokeswoman said.
Specifically, on Oct. 27, the committee released a staff report detailing findings from its two-year
investigation into the rulemaking process for the Waters of the United States rule involving the
Environmental Protection Agency.
The committee's review of the handling of the rule by the White House Office of Information and
Regulatory Affairs revealed weaknesses and inconsistencies in the rule review process, the
spokeswoman said.
Watching Federal Agencies
In addition to regulatory review, the oversight committee will continue to ensure agency inspectors
general have access to agency records to conduct more robust investigations, the spokeswoman said.
The committee also will work to improve transparency in agencies collection of funds and ensure
agencies comply with appropriate authorities, she said.
The committee will oversee implementation of the FOIA Improvement Act of 2016, and also monitor the
new administration as it sets Freedom of Information Act policies, the spokeswoman said.
Finally, the committee will continue to examine agency compliance with the Federal Records Act to
ensure retention of documents and accountability of agency recordkeeping, the spokeswoman said.
Democrats Priorities
A Democratic staffer with the committee told Bloomberg BNA that ranking member Elijah Cummings (DMd.) believes the groundwork has been laid for pursuing legislation next year to stop the escalation in
prescription drug prices.
This is a top health-care issue for most Americans, regardless of political party, and drug company
executives have demonstrated over and over again that they will put their own corporate profits over the
health of American families, the staffer said.
Cummings is expected to remain the panel's ranking Democrat.
The Democratic staffer also said Cummings will continue to work in a bipartisan fashion on constructive

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committee investigations, such as one involving pay levels at the Secret Service.
The staffer said Cummings expects to work through the lame-duck Congressional session to ensure
Secret Service agents are paid the overtime they deserve.
New Members
Several committee seats will need to be filled due to retirements, defeats or candidates running for higher
office. On the Republican side, Rep. Cynthia Lummis (R-Wyo.) is retiring, and Rep. John Mica (R-Fla.)
was defeated in the general election. Lummis open seat was won by Liz Cheney (R-Wyo.).
On the Democrats side, Rep. Tammy Duckworth (D-Ill.) was elected to the Senate, defeating Sen. Mark
Kirk (R-Ill.). Raja Krishnamoorthi (D-Ill.) won Duckworth's open seat in the House.
To contact the reporter on this story: Cheryl Bolen in Washington at cbolen@bna.com and James Swann
in Washington at jswann1@bna.com
To contact the editor responsible for this story: Brian Broderick at bbroderick@bna.com

House Rules: Willing to Head Rules Again, if Ryan Names Him: Sessions
BNA Snapshot
Previously appointed to post by then-Speaker Boehner
Choice would be up to House Speaker Ryan

By Jonathan Nicholson
Nov. 9 Rep. Pete Sessions (R-Texas) is willing again to head the powerful Rules Committee in the
115th Congress, if House Speaker Paul Ryan (R-Wis.) appoints him to the post.
Unlike other GOP committee posts, for which the chairman is recommended by the Steering Committee
and approved by the full Republican conference, the Rules chairman is directly nominated by the
speaker, though also subject to approval by the conference.
Sessions was put in his current position as Rules Committee chairman by the former House Speaker,
John Boehner (R-Ohio). In 2014, he had considered a run for a conference leadership post after the
surprise primary loss of then-Majority Leader Eric Cantor, but decided against it.
While it is ultimately up to the Speaker, Chairman Sessions looks forward to continuing to serve as
Rules Committee Chairman in the 115th Congress, a Sessions spokeswoman told Bloomberg BNA Nov.
8.
A spokeswoman for Ryan declined to comment on the Rules chairmanship issue Nov. 9.
On the Democratic side, Rep. Louise Slaughter (D-N.Y.) expects to be back as the ranking Democrat on
the panel, according to her spokesman.
To contact the reporter on this story: Jonathan Nicholson in Washington at jnicholson@bna.com
To contact the editor responsible for this story: Paul Hendrie at phendrie@bna.com

House Science: Science Committee Subpoena Effort Poised for Repeat: Advocates
BNA Snapshot
Climate change advocates say the House Science Committee is likely to repeat its oversight role in the
115th Congress, but the committee ranking member is skeptical
The committee declined to comment, and the next Congress doesn't convene for more than two months

By Brian Dabbs
Nov. 9 A newly established oversight role at the House Science Committee is likely to roll over into the
115th Congress, as Chairman Lamar Smith (R-Texas) remains at the helm for another term, industry and
environmental advocates told Bloomberg BNA.

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The committee is likely to keep Environmental Protection Agency and Interior Department rulemaking in
its cross hairs, environmental advocacy groups said. Another two years of subpoena-heavy
investigations into scientific analyses relating to climate change from both federal agencies and advocacy
groups is also a distinct possibility, they said.
Science Committee Republicans granted Smith unilateral subpoena power at the outset of the 114th
Congress after the full House Republican caucus paved the way for that rule change.
Congress traditionally uses limited subpoena power, often requiring committee majorities to seek
approval from the minority side or at least obtain committee consent through a vote. Smith has led the
committee with subpoena power exempt from bipartisan consultation.
Science Committee Republicans will stay largely intact, aside from the retirement of Randy Neugebauer
(R-Texas).
Industry Heartened
The committee this Congress aimed to ensure that EPA and other regulatory actions reflected the bestavailable science, American Chemistry Council spokesman Scott Jensen told Bloomberg BNA.
We hope the committee will continue to focus on promoting the use of credible science in government
policy-making, he said. This can be achieved by by preventing bad policies, practices or conclusions
from other regions, particularly from the [European Union] or from [the International Agency for Research
on Cancer], from infiltrating U.S. science programs and ensuring that U.S. research funding is dedicated
to projects and programs that will have a meaningful impact on public health.
A committee subpoena in July sought information from New York and Massachusetts attorneys general
and eight environmental groups over allegations that Exxon Mobil Corp. willfully obscured climate
science. Exxon didn't respond to a comment request, and the American Petroleum Institute, which
represents Exxon, declined comment.
The committee also subpoenaed the National Oceanic and Atmospheric Administration in 2015 over
climate communications, prompting the agency to brief the committee. A committee spokeswoman
declined to comment to Bloomberg BNA when asked whether Smith will continue to push that level of
oversight under an administration led by President-elect Donald Trump.
Climate Change Advocates Brace
The Union of Concerned Scientists (UCS), one of the groups subpoenaed by Smith, is concerned about
a repeat of the committee's oversight emphasis next Congress, Yogin Kothari, a UCS advocate based in
Washington, D.C., told Bloomberg BNA.
I anticipate him to focus on regulations and public health protection. That's not our hope, said Kothari.
We do hope that the committee focuses more on science and competitiveness. The Science Committee
doesn't need to carry water for industry.
The association of scientists released roughly 1,300 pages of already publicly available documents to the
committee in response to the subpoena, said Kothari, noting that the committee hasn't yet responded to
that release.
Kothari said Smith is likely to push forward in the 115th Congress with the Secret Science Reform Act, a
bill that would add requirements for EPA research disclosures linked to regulatory action, and America
Competes reauthorization, which supporters say aims to strengthen energy innovation.
Aaron Mintzes, an Earthworks advocate, said the committee is poised to investigate the EPA and the
Bureau of Land Management hydraulic fracturing policies and research. The committee is also likely to
attack the United Nations climate change deal reached in Paris last year, referring to an international
pact that Smith has repeatedly criticized.
Top Democrat Skeptical
Despite the concerns articulated by advocates for climate change action, Eddie Bernice Johnson (DTexas), the Science Committee Ranking Member, said a Trump presidency may lead Smith to shift
gears.
He's primarily been focused on investigating the Obama Administration over the past couple of years,
using his expanded subpoena and deposition powers. I would imagine that there will be much less

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interest on his part in carrying out a similar investigative agenda against a Trump Administration, she
told Bloomberg BNA. I thus am hopeful that the Chairman will return the Committee to a constructive
legislative agenda that advances our nation's research, development and innovation enterprise.
Committee Democrats will lose Reps. Alan Grayson (D-Fla.) and Donna Edwards (D-Md.), both of whom
ran unsuccessfully for Senate seats. That will leave vacant top Democratic posts on the Energy and
Space subcommittees.
To contact the reporter on this story: Brian Dabbs in Washington at bdabbs@bna.com
To contact the editor responsible for this story: Larry Pearl at lpearl@bna.com

House Small Business: House Small Business Committee Leadership Likely Unchanged
BNA Snapshot
Committee Chairman Chabot (R-Ohio), ranking member Velazquez (D-N.Y.) likely to return as
committee heads

By Brandon Ross
Nov. 9 The House Small Business Committee will likely remain under the leadership of Rep. Steve
Chabot (R-Ohio), who won re-election Nov. 8.
Chabot wants to remain the committee chairman, Joe Sangiorgio, press secretary for the committee, told
Bloomberg BNA by e-mail. The Republican won 59.6 percent of the vote, beating out his Democratic
challenger Michele Young's 40.4 percent.
Businesses that look to the committee for oversight and legislation likely can expect business as usual as
the small business committee's ranking member, Rep. Nydia Velazquez (D-N.Y.), plans to retain her role
as well, a committee Democratic spokesperson told Bloomberg BNA. She beat her Republican opponent,
Allan Romaguera, with 90.7 percent of the vote against his 9.3 percent.
Committee appointments are usually granted on a seniority basis, and lawmakers tend to stay on the
committees they are already on, as not to lose seniority on the panels.
The House Small Business Committee oversees the Small Business Administration and has jurisdiction
over regulatory requirements impacting small firms.
The committee's current focuses include simplifying taxes for small businesses, increasing trade, helping
small businesses get access to capital, helping small businesses secure contracts and overhauling
regulations so they aren't subject to regulations and fees meant for larger corporations.
To contact the reporter on this story: Brandon Ross in Washington at bross@bna.com
To contact the editor responsible for this story: Paul Hendrie at phendrie@bna.com

House Transportation and Infrastructure: Changes in House Transportation, Infrastructure Priorities Unlikely
BNA Snapshot
Chairman Shuster (R-Pa.), ranking member DeFazio (D-Ore.) expected to return to their spots
Several members are retiring; top Republican on water resources and environment subpanel is termlimited

By Stephanie Beasley and Amena Saiyid


Nov. 9 Several House Transportation and Infrastructure Committee members are retiring, and the top
Republican on the water resources and environment subpanel has reached his term limit. But with
current Chairman Bill Shuster (R-Pa.) and ranking member Peter DeFazio (D-Ore.) expected to return to
their spots in the 115th Congress, the turnover is unlikely to result in major changes.
The committee's priorities are likely to remain the same, Jack Schenendorf, former House Transportation
Committee chief of staff, told Bloomberg BNA.
Though Schenendorf, now of counsel at Covington & Burling LLP, said the House transportation

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committee was among several that could spend a fair amount of time in the 115th Congress weighing the
next administration's tax overhaul for infrastructure investment plans.
Shuster won his re-election race against challenger Art Halvorson, a Tea Party Republican that ran
against him during the primaries and later garnered enough write-in votes during the Democratic primary
to challenge Shuster in the general election.
Still there will be some significant changes in the committee's makeup. Rep. Bob Gibbs (R-Ohio), who is
at the end of his six-year term limit, will step down as chairman of the water resources and environment
subpanel. Rep. Grace Napolitano (D-Calif.), the current ranking member on the water resources
subcommittee, is expected to return.
Former committee chairman John Mica (R-Fla.) lost his re-election bid to newcomer Stephanie Murphy
(D). Mica served 12 terms in the House and was one of the committee's most vocal members, especially
on rail-related issues like Amtrak funding and the establishment of high-speed passenger rail corridors.
Also not returning is the full committee's former fourth-ranking Democrat Corrine Brown (Fla.) who was
unseated during her primary amid accusations that she funneled charitable donations into a personal
slush fund.
Several members will retire at the end of this Congress, including Republican Reps. Richard Hanna
(N.Y.), Candice Miller (Mich.) and Reid Ribble (Wis.). On the Democrat's side, House Ports Caucus cofounder Rep. Janice Hahn (Calif.) relinquished her seat in a bid to join the Los Angeles County Board of
Supervisors. Rep. Alan Lowenthal (D-Calif.) is angling to replace her and plans to focus on freight
funding issues.
Among those likely to remain on the House Transportation and Infrastructure Committee is railroad
subcommittee Chairman Jeff Denham (R-Calif.), who beat his challenger by just 10,000 votes. Rep.
Carlos Curbelo (R-Fla.), a member of the aviation and economic development subpanels, also squeaked
by to get a victory in a very close race against Democratic challenger and former Rep. Joe Garcia.
Curbelo was among those Republicans who refused to back Donald Trump's bid for the presidency.
Water Resources
Under the chairmanship of Shuster, and with Gibbs helming the water resources subpanel, the House
Transportation Committee passed a rewrite of the contentious Clean Water Rule (RIN:2040-AF30), which
they said would unduly broaden the government's authority over the nation's waters and wetlands. More
importantly, the two were responsible for writing legislation that would authorize the U.S. Corps of
Engineers and the Bureau of Reclamation to carry out water infrastructure projects worth millions of
dollars.
Who will succeed Gibbs is a question that few Hill insiders or lobbyists were willing to answer. The name
of Rep. John Duncan (R-Tenn.) was floated. He served as the water subcommittee chairman between
2001 and 2006. Duncan also served as the vice-chairman of the full transportation committee during the
114th Congress.
Rep. Frank LoBiondo (R-N.J.) is another possibility because of his interest in ballast water issues,
coastal restoration and other water infrastructure projects. However, LoBiondo currently serves as the
chairman of the aviation subcommittee and with Federal Aviation Administration spending up for
reauthorization at the end of September, he is expected to retain that position in the 115th Congress.
Reps. Jeff Denham (R-Calif.) and Sam Graves (R-Mo.) could be possible contenders, but both
lawmakers already chair subcommittees.
National groups representing the water and wastewater sectors expect the water resources
subcommittee to focus on issues where both Republicans and Democrats can find common ground.
The Water Environment Federation expects the subcommittee to take up reauthorization of the clean
water state revolving fund, a state program that disburses low-interest loans for wastewater, storm water
and green infrastructure projects.
We would like to see a robust increase in appropriations along with reauthorization, Claudio Ternieden,
government affairs director for the Water Environment Federation, told Bloomberg BNA. WEF is a notfor-profit group representing water sector engineers, managers and policy specialists.
Republican Control
With the GOP holding on to the House and Senate and taking the White House, it seems more than likely

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that Congress will attempt to gut the Clean Water Rule, or the Waters of the U.S. rule (WOTUS) that is
currently facing nearly a dozen challenges in federal appeals and district courts across the nation.
A Republican committee aide said that the transportation committee will be developing its agenda for the
next Congress, but noted that there has been clear, bipartisan opposition to the rule in Congress and at
the state and local level.
You can expect the next Congress to continue following the ongoing court case and to consider any
potential legislative options, the aide said.
Patricia Sinicropi, senior director for legislative affairs at the National Association of Clean Water
Agencies, told Bloomberg BNA that the new administration has indicated an interest in moving forward
with a significant infrastructure package.
So, I think we can expect that investment in clean water infrastructure will be on the agenda for T&I as
part of this broader infrastructure package. Mr. Shuster has also indicated that a priority for him is
maintaining a 2-year WRDA reauthorization cycle, so I would expect T&I activity on this front (which in
part depends on the outcome of WRDA 2016), Sinicropi said in an e-mail. Beyond this, we hope there
would also be a continued focus on integrated planning and regulatory flexibility related to the Clean
Water Act and municipal compliance issues.
FAA Reauthorization
Also with Shuster back in the chairman's seat, the committee will likely revisit a proposal to spin off air
traffic control from the FAA. Earlier this year, the House Transportation Committee approved Shuster's
proposal to transfer air traffic control oversight to a new nonprofit corporation that would be headed by
national airspace users, including airlines, as well as air traffic controllers. But the bill never reached the
floor and prominent Senate Democrats, including now retired California Sen. Barbara Boxer, vowed to
block the measure should it reach the Senate.
When the House did not take up a Senate-passed reauthorization bill that would leave the current air
traffic control structure intact, Congress passed a short-term stopgap measure to renew FAA spending
through September 30, 2017.
Shuster still believes that removing air traffic control from the FAA is a necessary reform for the future of
the system and will educate new committee members about the ATC spinoff proposal, among other
legislative issues, when the next Congress begins, committee spokesman Justin Harclerode told
Bloomberg BNA. He added the committee could move quickly on FAA reauthorization next year.
But Shuster might have to make a tough sell to get the committee to again approve the ATC spinoff idea.
Not only did Democratic members of the committee oppose the plan to snatch air traffic control away
from the FAA, it was not backed by all Republicans. For example, Rep. Sam Graves (R-Mo.), long
considered the front-runner to replace Shuster when his term ends, voted against the committee's FAA
reauthorization bill. Congressional appropriators and tax writers with jurisdiction over the FAA also have
objected to the proposal.
In addition to debate over air traffic control, expect the committee to discuss ways to move federal drone
policy forward, Schenendorf said. FAA regulations permitting the use of commercial drones weighing 55
pounds or less went into effect at the end of August but drone industry stakeholders remain concern that
the agency continues to restrict commercial drones to fly beyond the operator's line of sight, at night and
in populated areas. Those are all issues that could come up in the next round of FAA reauthorization
talks, Schenendorf said.
Among other potential committee priorities is oversight of the implementation of a five-year surface
transportation reauthorization known as the FAST Act (Pub. L. No. 114-94) enacted late last year as well
as possible consideration of any infrastructure proposals released by the next administration.
The committee's agenda for next Congress will begin to come into sharper focus after the election,
Harclerode said.
President-Elect Donald Trump (R) has laid out plans to pursue a $1 trillion infrastructure plan within the
first 100 days of his presidency that would give private investors tax breaks for lending money to states
and municipalities for projects.
To contact the reporters on this story: Stephanie Beasley in Washington at sbeasley@bna.com; Amena
Saiyid in Washington at asaiyid@bna.com

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To contact the editor responsible for this story: Paul Hendrie at phendrie@bna.com

House Veterans' Affairs: House Veterans Affairs: New Leadership, Same Priorities
By Michael Smallberg
Nov. 9 Employee discipline at the Veterans Affairs Department (VA) and veterans disability claims will
continue to top the agenda of the House Veterans Affairs Committee in the 115th Congress.
The panel is poised for new leadership following the retirement of Florida Republican Jeff Miller and the
primary loss of Florida Democrat Corrine Brown.
There are several candidates vying for the gavel, including Florida Republican Gus Bilirakis, Tennessee
Republican Phil Roe, and Colorado Republicans Mike Coffman and Doug Lamborn.
Meanwhile, President-elect Donald Trump has said he would push to fire VA staffers who harm veterans,
withhold bonuses from employees who waste funds and allow veterans to seek health care outside of the
department.
The next chairman will probably seek to build on Miller's legacy, which was praised by several groups.
Miller was a true watchdog for veterans, said Dan Caldwell, vice president of policy and
communications at Concerned Veterans for America, in an interview. Representatives from other
veterans groups echoed his views.
Under Miller's leadership, the committee investigated manipulated wait times at VA medical facilities,
employee misconduct and improper bonus payments. Before the election, the House passed H.R. 5620,
a Miller bill that would revamp the claims and appeals process for veterans disability benefits and would
make it easier for the VA to fire employees and protect whistle-blowers.
Some Democrats and veterans organizations backed the bill, while the American Federation of
Government Employees (AFGE) and other employee groups opposed the disciplinary provisions (see
BGOV Bill Summary). Miller's legislation would weaken core rights and is another example of
legislating by crisis, said Marilyn Park, a legislative representative from AFGE, in a Nov. 4 interview.
Chairman Candidates
Roe was an obstetrician-gynecologist for more than three decades before entering Congress. In an
interview, Roe said he understands the VA health-care system as well as anybody can, having trained in
it, having seen patients from it, and now having eight years on the committee. One of the top items on
his agenda is revamping the department's IT system to address problems with billing, scheduling and
benefits.
We're spending way too much money on bureaucracy and not on veterans, he said. Bilirakis sponsored
legislation (H.R. 271), to expand the use of alternative therapies and other treatment for veterans,
including those struggling with mental health and opioid abuse disorders. He also wants to ease the
transition from military to civilian life, ensure the integrity of VA data and help veterans obtain health care
from private providers, he said in Nov. 3 interview. I'm not for tearing down the VA, but competition is
good, too, he said.
Contending with next year's expiration of the Veterans Choice Program, which allows eligible veterans to
obtain treatment at non-VA facilities, will be a top priority for the committee, said Carlos Fuentes, a
deputy director at Veterans of Foreign Wars. Candidates for the gavel understand the value of the VA
health-care system, he said. I don't see any of them being proponents for privatization.
In a statement, Lamborn said he brings a unique understanding of the challenges facing both our
returning warfighters and veterans through his experience on the Veterans Affairs and Armed Services
committees.
Coffman is chairman of the Oversight and Investigations Subcommittee and has prioritized issues such
as construction costs and the treatment of veterans with post-traumatic stress disorder and traumatic
brain injuries.
Democratic Shuffle
California Democrat Mark Takano, who became acting ranking member of the committee after Brown
was indicted, said he wants to continue in the role permanently.

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Minnesota Democrat Tim Walz may seek to challenge him for the slot.
Takano said he'd target for-profit schools that recruit student veterans, while Walz would focus on mental
health issues.
To contact the reporter on this story: Michael Smallberg in Washington at msmallberg@bloomberg.net
To contact the editor responsible for this story: Loren Duggan at lduggan1@bloomberg.net
2016 Bloomberg L.P. All rights reserved. Used with permission

House Ways and Means: Tax Revamp Optimism Reigns Among Ways and Means Republicans
BNA Snapshot
GOP faces easier path to overhaul tax code in 2017
Will also seek to repeal Affordable Care Act provisions

By Laura Davison and Alex Ruoff


Nov. 9 House Ways and Means Committee Republicans are optimistic that 2017 might finally be the
year to pass legislation overhauling the tax system. Or, at least, the international side of the tax code.
With majorities in the House and Senate, tax-focused leadership in both chambers and a tax proposal
the committee pushed out last year, Republicans are hopefulif not fully confidentthat the time has
come to eliminate some of the complexity in the tax laws in favor of lowering rates for corporations and
individuals. The last big tax revamp was 30 years ago in 1986.
We have more and better ideas than we've had in a generation, Ways and Means Committee Chairman
Kevin Brady (R-Texas) said at an Oct. 28 event. This is more than achievable.
This won't be the first time lawmakers will start a fresh year with high hopes for big tax changes. In 2015
and 2016, House Speaker Paul D. Ryan (R-Wis.)formerly Ways and Means chairmanand Sen.
Charles E. Schumer (D-N.Y.) who is expected to become Senate minority leader, started and stopped
discussions about an international tax deal that would partner a lower repatriation tax rate for overseas
corporate earnings with spending on infrastructure.
The desire for business tax overhaul is high on the agenda for both House Republicans and the incoming
Trump administration, said Linda Carlisle, a member at Miller & Chevalier Chartered. As the likelihood for
a repatriation deal increases, the discussion will turn to whether the money will be used for infrastructure
or lower tax rates, she said.
The fact that Brady hired Barbara Angus to be chief tax counsel is monumental. She is brilliant, steeped
in international tax and has the ability to effectuate international tax reform. It shows Brady has a real
desire to do that, Carlisle told Bloomberg BNA.
Tax Proposal in Motion
Brady hired Angus in early 2016 after he took over the Ways and Means chairmanship. She was one of
the lead writers of the tax blueprint that House Republicans released in June, mapping out a plan to
reduce tax rates for businesses and individual taxpayers and eliminate a number of deductions, benefits
and other tax breaks. The outline is now being drafted as legislation, slated to be released this winter.
Though the blueprint was seen as a departure from previous tax proposals, some lobbyists are
concerned that the border adjustability provisionto tax imports and exempt exportsthat funds much of
the lower tax rates in the plan isn't likely to comply with World Trade Organization rules, which allow
border adjustment provisions for value-added tax systems, but not for income tax regimes.
President-elect Donald Trump's tax plan, which has been subject to some uncertainty, has moved to
more closely mirror the House Republicans plan over the course of the campaign.
We are committed to tax reform regardless of the administration, a House Republican aide said.
Health Plans

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With Trump in the White House, Republicans plan to waste little time repealing many of the central
provisions of the Affordable Care Act, Diane Black (R-Tenn.), told Bloomberg BNA. In particular,
lawmakers want to lift requirements for insurers to provide basic coverage for certain services and
discontinue the individual insurance exchanges, she said.
This one-size-fits-all approach has been the main reason why premiums have been going up, Black
said.
Republicans plan to keep parts of the law intact, such as allowing people younger than 26 to stay on their
parents health insurance plans and the ban on coverage denials due to pre-existing conditions, she said.
Pat Tiberi (R-Ohio) is expected to remain chairman of the health subcommittee. Lloyd Doggett (DTexas), who founded and co-chaired the House Prescription Drug Taskforce, is expected to take over as
ranking member on the health subcommittee, according to congressional staffers who asked not to be
named.
After passing the Medicare Access and CHIP Reauthorization Act (MACRA), which changed how doctors
are paid by Medicare, lawmakers are eager to focus their attention on how Medicare pays hospitals and
post-acute care facilities, a spokesperson for Tiberi told Bloomberg BNA. The emphasis for Republicans
will be on improving care for Medicare beneficiaries and bolstering the Medicare Advantage program.
New Members
Republicans could be looking to fill at least one and as many as three seats on the committee to replace
Charles Boustany Jr. (R-La.) and Todd Young (R-Ind.). Young, who left the House to run for the Senate,
won his race, while Boustany lost. Robert Dold (R-Ill.) also lost his bid for re-election. Peter Roskam (RIll.) is expected to be named chairman of the tax policy subcommittee, a position previously held by
Boustany. Roskam currently chairs the Oversight Subcommittee.
Jackie Walorski (R-Ind.) and Mike Bishop (R-Mich.) are hoping to fill the vacancies, according to aides
from their respective offices. Bishop would be the first Republican from Michigan to serve on the
committee since former committee Chairman Dave Camp left Congress in 2014 after releasing his tax
overhaul plan.
Carlos Curbelo (R-Fla.), Bradley Byrne (R-Ala.) and Andy Barr (R-Ky.) are also interested in the Ways
and Means spots, according to lobbyists and House staffers, who requested to speak on background
about sensitive personnel matters.
Republicans held 24 slots and Democrats had 15 seats on the committee in the 114th Congress.
Democrats will be looking to fill the seats held by retiring members Charles B. Rangel (D-N.Y.) and Jim
McDermott (D-Wash).
First in the queue is Brian Higgins (D-N.Y.), who will reclaim his seat on the committee in January after
his spot was eliminated when Republicans took back the House in 2010. His priorities will include the
New Markets Tax Credit program, the solar investment tax credit and tax simplification for middle-class
families, according to a spokeswoman from his office.
Suzan DelBene (D-Wash.), a former director of the Washington State Department of Revenue, and Terri
A. Sewell (D-Ala.) are also vying for the openings, according to Republican and Democratic House
staffers. Ranking member Sander M. Levin (Mich). is expected to stay on as the committee's top
Democrat..
Both in the House and Senate there are Democrat and Republican colleagues who know the rates are
too high and there are profits overseas that need to be flown back, Brady said. House Republicans will
bring out the most pro-growth, competitive plan we can. The Senate, by design, will moderate it and the
president will weigh in.
To contact the reporters on this story: Laura Davison in Washington at lDavison@bna.com and Alex
Ruoff in Washington at aruoff@bna.com
To contact the editor responsible for this story: Meg Shreve at mshreve@bna.com
Senate Committees
Senate Agriculture: Roberts Likely to Keep Senate Agriculture Gavel
By Casey Wooten

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Nov. 9 With Republicans retaining hold of the Senate, Pat Roberts (R-Kan.) is likely to stay on as
chairman of that chamber's Agriculture Committee in the 115th Congress, just in time for him to shepherd
the next farm bill through the upper chamber.
Neither Roberts nor the current ranking member, Debbie Stabenow (D-Mich.), was up for re-election this
cycle. Other committee members won out over their challengers and retained their seats in the Nov. 8
election.
Sen. Patrick Leahy (D-Vt.) cruised to re-election, meaning he will retain his spot as the most senior
member on the panel. Sens. John Boozman (R-Ark.), Charles Grassley (R-Iowa), Michael Bennet (DColo.), John Thune (R-S.D.) and John Hoeven (R-N.D.) won their re-election bids as well.
A spokesperson from Stabenow's office confirmed the now-four-term senator hopes to remain the top
Democrat on the committee.
The remaining senators on the panel were not up for re-election this cycle and no Agriculture Committee
senators have announced retirements following this session.
Farm Bill Startup
With Roberts positioned to stay on as chairman, he is set to lead the Senate in crafting the 2018 farm bill
as the agriculture economy continues to take a drubbing from several years of low commodity prices.
And if some farm groups have their way, those hearings and draft documents may come soon.
I think we are going to continue to see pressure for the committee to start talking about the farm bill
sooner rather than later, Barbara Patterson, government relations director for the National Farmers
Union, told Bloomberg BNA. The pressure on the farm economy is continuing to build and our members
are saying the farm bill should start early and that it should pass on time.
Roberts has been a stalwart champion of crop insurance, and has pledged to defend them against any
cuts in farm bill talks.
Stabenow has helped set the stage for at least one farm bill priority as well. In September, she released
details of legislation that would open up farm credit and aid programs to the operators of rooftop gardens,
indoor farming operations and other urban agriculture projects. The move is seen as one of the first
legislative proposals of the 2018 farm bill talks.
Subcommittee Standings
As for subcommittee positions, it's likely that most chairmen will stay on as the top Republican on their
respective panels.
Boozman is set to remain chairman of the Commodities, Risk Management and Trade Subcommittee,
while Hoeven will likely stay on as the top Republican on the Nutrition, Specialty Crops and Agricultural
Research Subcommittee.
Sen. David Perdue (R-Ga.) is in position to remain chairman of the Conservation, Forestry and Natural
Resources Subcommittee, while Sen. Joni Ernst (R-Iowa) could retain her top spot on the Rural
Development and Energy Subcommittee.
Sen. Ben Sasse (R-Neb.) may keep his position as chairman of the Livestock, Marketing and Agricultural
Security subcommittee.
Other Tasks
The Agriculture Committee will also need to approve President-elect Donald Trump's pick for Agriculture
secretary. He has a large roster to choose from if he opts to pick from the more-than 60-person panel
who advised the candidate on farm policy. The group is led by Charles Herbster, a Nebraska cattle
rancher and long-time Republican backer.
Patterson said that confirming a new agriculture commissioner is likely to be less contentious in the
Senate than other top department posts.
I think out of all the cabinet positions that Agriculture has the most bipartisan energy behind it, she said.
I think there will be less friction for Agriculture; people across the country understand the value of the
USDA and [Agriculture Secretary Tom] Vilsack has laid a very good precedent.

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The full Senate also has two Commodity Futures Trading Commission nominees pending. The
Agriculture Committee approved the nominations for Brian Quintenz and Christopher Brummer in
September and their nominations were placed on the Senate executive calendar, though the chamber
has yet to vote on them.
To contact the reporter on this story: Casey Wooten in Washington at cwooten@bna.com
To contact the editor responsible for this story: Paul Hendrie at pHendrie@bna.com

Senate Appropriations: Cochran Seeks to Keep Senate Approps Gavel; Top Democrat Slot in Flux
BNA Snapshot
Retirements, election losses to force changed lineup
Competition underway for top Democratic Senate Appropriations slot

By Nancy Ognanovich
Nov. 9 Republicans strong showing in the election will keep the GOP in charge of the Senate
Appropriations Committee and increase their say over how more than $1 trillion in federal discretionary
monies are spent.
Most committee Republicans will be returning for the 115th Congress after winning re-election, as are
Democrats on the panel. But change also is in the wind: While committee Chairman Thad Cochran (RMiss.) is eligible to serve two more years in that position, Democrats are preparing to choose a new
ranking member for the panel.
Sen. Richard Shelby (R-Ala.), who easily won re-election and is next in line behind Cochran, said he is
willing to wait his turn to lead the committee. But Sens. Patrick Leahy (D-Vt.), Patty Murray (D-Wash.)
and Dick Durbin (D-Ill.) are all said to be in the running as candidates to succeed Sen. Barbara Mikulski
(D-Md.) as the committee's ranking member.
Committee leaders will have a large say over how billions in federal funds are distributed and will have to
work with the incoming administration of President-elect Donald Trump to set spending priorities,
particularly as the threat of budget sequestration returns in 2017.
Kirk Is Lone Casualty
Besides Shelby, other committee Republicans who won their re-election bids were Sens. Lisa Murkowski
(Alaska), Roy Blunt (Mo.), Jerry Moran (Kan.), John Hoeven (N.D.), John Boozman (Ark.) and James
Lankford (Okla.). Sen. Mark Kirk (R-Ill.) was the only member to lose his election.
On the Democratic side, both Leahy and Murray were easily re-elected.
Members of both parties plan to return the week of Nov. 14 for organizational meetings, when committee
rosters will be discussed. Cochran already has served six years as ranking member and four years as
chairman of the committee but so far hasn't faced any challenger to remain as the panel's top
Republican. Under Republican rules he could serve as chairman for two more years.
Shelby, who under Republican term limit rules had to give up the gavel at the Banking, Housing, and
Urban Affairs Committee, said he plans to be more active on Appropriations but is prepared to wait his
turn to be chairman.
More is currently in flux on the Democratic side. Leahy is the most senior member but earlier passed on
the gavel, giving Mikulski the chance to chair the committee after the death of former Chairman Dan
Inouye (D-Hawaii). Leahy is said to the prefer the work of the Judiciary Committee, where he currently is
ranking member and involved in the debate over filling vacancies at the U.S. Supreme Court.
But it remains uncertain whether Leahy still will assert his own seniority at Appropriations. Congressional
sources said he may be interested in the job.
Sen. Dianne Feinstein (D-Calif.), also a senior committee member, is said to be more likely to remain at
the Intelligence Committee, where she serves as ranking member. That takes the matter down to Murray
and Durbin, the next most senior members.
Senate aides said they expect the issue to be settled soon as it is linked to a separate Democratic

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leadership race.
Outgoing Senate Minority Leader Harry Reid (D-Nev.) tapped Sen. Charles Schumer (D-N.Y.) to succeed
him as the party's leader, bypassing Durbin, who long served as Democratic whip. After that, Murray
signaled interest in the whip's job as well, setting up a leadership contest that will be settled by a vote
when lawmakers return for organizational meetings the week of Nov. 14.
Durbin's office has expressed confidence that he has the votes to return as minority whip, but current
practice hasn't allowed Democratic leaders to also serve simultaneously as chairmen or ranking
members of major committees. It remains to be seen whether changes are made to permit either Durbin
or Murray to serve in leadership and hold a top Democratic committee slot.
Besides being senior on Appropriations, Murray is the top Democrat on the Health, Education, Labor &
Pensions Committee and has said she would like to retain that job.
Whatever the outcome of the leadership race, both Durbin and Murray may retain their ranking slots on
the panel's largest subcommittees. Durbin is ranking on the Defense Subcommittee, which has
jurisdiction over more than $500 billion in annual Pentagon funds. Murray is ranking on the Labor, Health,
and Human Services panel, which is responsible for more than $200 billion in spending.
New Lineup of Cardinals
Beyond the top slots, some change is expected in the lineup of subcommittee chairmen and ranking
members.
Blunt's ability to win his raceone of the most closely watched in the countrymeans he can return to
the chairmanship of the Labor-HHS Subcommittee. Meanwhile, Cochran could continue as chairman of
Defense and Shelby, Commerce-Justice-Science. Hoeven can return to Homeland Security, Boozman to
Financial Services, Murkowski to Interior-Environment, Moran to Agriculture, Sen. Lamar Alexander (RTenn.) to Energy and Water, Sen. Lindsey Graham (R-S.C.) to State Foreign Operations, Sen. Susan
Collins (R-Maine) at Transportation, Housing, and Urban Development, and Sen. Shelley Moore Capito
(R-W.Va.) at Legislative Branch.
But Kirk's loss means the top Republican slot on the Military Construction and Veterans Affairs
Subcommittee will be open. A move by another cardinalsuch as Hoeven or Capitoto move into the
slot could generate other changes in the lineup.
On the Democratic side, some changes may be initiated if Feinstein seeks to succeed Mikulski as the
ranking member of the C-J-S Subcommittee. That would require her to give up her ranking slot at Energy
and Water. Sen. Jon Tester (D-Mont.) is seen as interested in taking that position. He is currently ranking
member on Milcon-VA.
To contact the reporter on this story: Nancy Ognanovich in Washington at nognanov@bna.com
To contact the editor responsible for this story: Paul Hendrie at pHendrie@bna.com

Senate Armed Services: McCain's Effort on Acquisition Overhaul May Set SASC's Tone
BNA Snapshot
If overhaul proposals don't make it into 2017 defense bill, might not be revived, expert says
Senate Armed Services Committee makeup likely to remain similar after election

By Andrew Clevenger
Nov. 9 Re-elected Senate Armed Services Committee (SASC) Chairman John McCain's efforts to
overhaul acquisition in the fiscal 2017 defense bill may set the tone for the panel's agenda, a former
procurement official said.
I would be surprised in next year's [National Defense Authorization Act (NDAA)] if we see again some of
the aggressive acquisition reform proposals, Robert Burton, a partner in Crowell & Moring's government
contracts practice and a former acting administrator of the Office of Federal Procurement Policy under
President George W. Bush, told Bloomberg BNA. They were surprising to the acquisition community.
If the overhauls don't make it into the 2017 NDAA, they may not be revived, Burton said.

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My guess is a lot of this will not see the light of day, he said.
McCain (R-Ariz.) staved off a stiff re-election challenge and will retain his gavel as Republicans kept
control of the Senate in the Nov. 8 election. Sen. Jack Reed (D-R.I.) is expected to remain the panel's
ranking member.
The leadership and membership of the committee will likely remain similar to its current makeup.
Committee members Richard Blumenthal (D-Conn.) and Mike Lee (R-Utah) cruised to easy victories
Nov. 8, but New Hampshire Republican Kelly Ayotte conceded her race Nov. 9. Her departure creates an
opening at the head of the Subcommittee on Readiness and Management Support.
Unlike 2014, no Armed Services Committee members retired, so the composition of the committee is
likely to remain largely unchanged.
Driving Force
McCain was a driving force behind many of the acquisition overhaul provisions in the Senate's version of
the bill. These include a provision that would eliminate the position of undersecretary of defense for
acquisition, technology and logistics, replacing it with two new undersecretariesone for research and
engineering and one for management and support.
The fate of these provisions is still unknown, as the final NDAA has not been publicly released and was
pushed into the lame-duck session for possible passage.
During his campaign, President-elect Donald Trump said he intends to bolster the Pentagon's budget,
which would drive much of the SASC's actions, said Alan Chvotkin, executive vice president and counsel
of the Professional Services Council, who previously served as SASC counsel.
While the Congress is certainly a key decision maker, large portions of the agenda are set by the actions
or inactions by the Pentagon and the White House, Chvotkin said.
To contact the reporter on this story: Andrew Clevenger in Washington at aclevenger@bna.com
To contact the editor responsible for this story: Jerome Ashton at jashton@bna.com

Senate Banking: Senate Banking Panel Likely to Target Financial Regulations


BNA Snapshot
Under Sen. Crapo (R-Idaho), Senate Banking Committee eyes deregulation
Bills from Sen. Shelby (R-Ala.) and Rep. Hensarling (R-Texas) indicate way forward
President-elect Donald Trump wants to get rid of Dodd-Frank Act

By Rob Tricchinelli
Nov. 9 The Senate Banking Committee is expected to have a more robust deregulatory agenda in
2017, after Republicans captured the White House and held their slim Senate majority.
This election could upend Dodd-Frank and the rest of the post-crisis financial regulatory structure,
Justin Schardin of the Bipartisan Policy Center told Bloomberg BNA.
Sen. Mike Crapo (R-Idaho), who heads the securities subcommittee, is in line to chair the full committee
as Republicans target the Dodd-Frank Act and other financial regulations.
Disappointing.
Policy analysts predict a more active committee compared to the tenure of departing chairman, Sen.
Richard Shelby (R-Ala.).
One thing's for sure, the banking committee will be much more active under new leadership, Emily
Liner, a financial policy adviser at centrist think tank Third Way, told Bloomberg BNA.
The committee hasn't held a markup on banking legislation since May 2015. It approved some of
President Barack Obama's nominees but others remained in limbo.

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I think that the Senate Banking Committee has been disappointing in the level of legislating that's been
done in this Congress, Isaac Boltansky, a policy analyst at Compass Point Research & Trading, told
Bloomberg BNA.
That will change with the same party in the White House also holding the Senate majority.
Chairman Crapo's Priorities
Republican caucus rules limit the terms of committee chairmen, and Shelby is running up against the
cap. Crapo, who was first elected to the Senate in 1998 after three terms in the House, is next in line for
the chairmanship.
Crapo's substantive policy positions, analysts say, are similar to Shelby's, but he is less likely to follow
Shelby's lead and run a quiet committee, especially with a Republican president.
President-elect Donald Trump has said he wants to get rid of the Dodd-Frank Act but hasn't offered
specific policy proposals on changing the law.
In Congress, both parties agree in principle on providing relief to community banks, but Republican
lawmakers have a more ambitious deregulatory agenda.
Sweeping bills from the previous session provide some sense of their likely approach. On the Senate
side, a Shelby bill provided community bank relief and raised the asset threshold under which banks
qualify as systemically important, but it also included changes to the Federal Reserve that were
unpalatable to Democrats.
In the House, Rep. Jeb Hensarling (R-Texas) offered a wide-ranging bill of his own that would alter the
Consumer Financial Protection Bureau, repeal the Volcker Rule, change capital requirements and reduce
regulations on startups.
Crapo's subcommittee held hearings this year on fixed-income markets and small-business capital
formation. Those issues could attract his attention again in 2017.
Nominees
The committee is also likely to be more friendly to Trump's executive branch nominees.
Trump has threatened a moratorium on new regulations, a priority that his executive branch nominees
could carry out once confirmed.
The moratorium wouldn't dismantle Dodd-Frank, but the people he nominates could do much of that job,
Schardin said.
Republicans still must surmount a 60-vote threshold to avoid filibustering, but the chance remains that
party leadership could further dismantle filibuster rules.
Democrats on the Senate Banking Committee will need to have a united front going into nomination
season, Liner said Nov. 9. And, given last night's result, Democrats are going to have to work twice as
hard to defend Dodd-Frank.
Roster Changes
There will be some seats to fill on the Republican side with departing moderates. Sen. David Vitter (La.)
is leaving the Senate, and Sen. Mark Kirk (Ill.) lost his reelection bid to Rep. Tammy Duckworth (D).
They're guys who work with Democrats whenever they have the opportunity, Liner said.
Sen. Pat Toomey (R-Pa.) held on to his seat in a close race, and other panel members, such as Sen.
Tim Scott (R-S.C.), won comfortably. Sen. Charles Schumer (D-N.Y.) could leave the panel if he
becomes leader of the Senate Democrats, as expected.
To contact the reporter on this story: Rob Tricchinelli in Washington at rtricchinelli@bna.com
To contact the editor responsible for this story: Phyllis Diamond at PDiamond@bna.com

Senate Budget: Enzi Hopes to Stay on at Top of Senate Budget Committee


BNA Snapshot

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Expressed desire before election season campaign break


Would put him at center of various budget issues

By Jonathan Nicholson
Nov. 9 With the Republicans maintaining control of the Senate, Sen. Mike Enzi (R-Wyo.) appears set
to return as the chairman of the Budget Committee in the 115th Congress.
This is the most important one for country, so, provided I got elected to it again, I would stay with it,
Enzi told Bloomberg BNA Sept. 28, prior to leaving Washington for the six-week election campaign
break.
I'm still hopeful that we can get something working across the aisle, with a budget that has votes from
both sides, not just one side forcing it down the other. That never works, Enzi said.
An Enzi spokesman said Nov. 9 he had nothing to add to the senator's remarks.
Enzi took over the committee in 2015 after a brief standoff with Sen. Jeff Sessions (R-Ala.), who had
previously served as ranking member. Sessions withdrew from seeking the chair but remained on the
committee.
Sessions has been a strong supporter of President-Elect Donald Trump, pressing for a tough stance on
illegal immigration, and could come under consideration to join the White House.
If he remains at the Budget panel helm, Enzi would potentially be at the center of various policy debates
within the Republican conference as he tries to accommodate proposals within a budget resolution his
committee would have to mark up.
On the other side of the aisle, Sen. Bernie Sanders (I-Vt.) appears set to return for a second term as
ranking member on the panel, barring much movement among more senior Democrats.
A spokesman for Sanders declined Nov. 9 to comment on Sanders's plans for the 115th Congress.
Sanders took over as the Budget Committee's ranking member in 2015 after Democrats with more
seniority passed on the position in favor of other committees. While he spent several months in 2016 on
the presidential campaign trail and away from the panel, Sanders's run against Democratic nominee
Hillary Clinton left him with a reputation for energizing young, liberal voters and an increased profile
within the conference.
To contact the reporter on this story: Jonathan Nicholson in Washington at jnicholson@bna.com
To contact the editor responsible for this story: Paul Hendrie at phendrie@bna.com

Senate Commerce: Senate Commerce to Focus on Telecom, Transportation


By Kyle Daly and Stephanie Beasley
Nov. 9 Sen. John Thune (R-S.D.) is expected to remain at the helm of the Senate Commerce, Science
and Transportation Committee in the next Congress, as the panel looks to see what legislation it wants to
move when the GOP controls both chambers of Congress and the White House.
Republicans on the panel envisioned a number of ostensibly bipartisan priorities for 2017 before the Nov.
8 election, according to Republican committee spokesman Frederick Hill. Items on that list included
pushing through several bills with bipartisan support that have stalled in the current Congress, such as a
Federal Communications Commission reauthorization measure (S. 2644) and a spectrum bill (S. 2555), if
lawmakers don't pass them during the lame duck session.
Committee observers told Bloomberg BNA Nov. 9 they expect the panel to produce an expansive
agenda targeting the FCC's statutory authority and its 2015 reclassification of broadband as a common
carrier service.
Commerce Committee Republicans also intend to reauthorize the Federal Aviation Administration;
launch discussions on self-driving vehicles; and work to craft legislation on cybersecurity, data breach
notification requirements and broadband infrastructure. President-elect Trump has said he will push for
infrastructure investments that include spending on telecommunications.

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Leadership Moves
Thune intends to continue serving as chairman of the committee, Hill said. A spokesman for Sen. Bill
Nelson (D-Fla.), the committee's ranking member, told Bloomberg BNA it's too early to say if he'll
continue on as the panel's top-ranking Democrat, but it's likely he will, as he is not in line for any other
leadership positions.
But panel subcommittees are due for a leadership shakeup, with Sen. Kelly Ayotte (R-N.H.), chairman of
the panel's aviation subcommittee, ousted from her seat by Maggie Hassan (D).
The next-most senior Republican on that subcommittee is Sen. Roger Wicker (R-Miss.), who already
chairs the Communications, Technology, Innovation and the Internet subcommittee. It's unclear whether
Wicker will seek the aviation gavel or stick with the communications subcommittee.
Transportation Issues
Federal Aviation Administration reauthorization will be back on the table for full committee That issue
could produce a fresh standoff between committee members and their House counterparts regarding air
traffic control.
Nelson staunchly opposed a proposal approved by the House Transportation and Infrastructure
Committee earlier this year that would have transferred oversight of air traffic control from the FAA to a
new non-profit corporation headed by airlines, air traffic controllers and other aviation stakeholders.
Thune has yet to strongly endorse the plan.
The Senate passed an 18-month FAA reauthorization in April that omitted the House-backed ATC spinoff plan. That bill was not taken up by the House. Instead both chambers approved a short-term
extension that renewed FAA spending through September 30, 2017.
In addition to air traffic control, some of the key topics that Senate Commerce could examine on this goround of FAA reauthorization talks include potentially lifting some of the FAA's restrictions on commercial
drone flights and enacting consumer protections, like reduced airline feesan area that has been of
strong interest to Democrats on the committee such as Sen. Richard Blumenthal (Conn.).
There is going to be pressure on Congress to address a developing patchwork of state laws on
autonomous vehicles ahead of the next surface transportation reauthorization, although lawmakers might
let things percolate and settle a little more in this area before taking legislative action, one lobbyist said.
To contact the reporter on this story: Kyle Daly in Washington at kdaly@bna.com; Stephanie Beasley in
Washington at sbeasley@bna.com
To contact the editor responsible for this story: Keith Perine at kperine@bna.com

Senate Energy: No Change Expected to Senate Energy Committee Leadership


BNA Snapshot
Sens. Murkowski (R-Alaska) and Cantwell (D-Wash.) to continue leading Senate energy committee
Energy bill set for passage during lame duck, clearing way for other Murkowski priorities to be
addressed

By Rachel Leven
Nov. 9 Sen. Lisa Murkowski (R-Alaska) is set to continue her leadership of the Senate Energy and
Natural Resources Committee, following Democrats failure to win the Senate in the election.
The major energy bill currently in conference remains a priority on all sides to get to the president's desk
in the lame duck, former and current Senate energy committee aides and observers told Bloomberg
BNA.
But under a Murkowski chairmanship, some issues from the bill could be revisited in another energy bill
in 2017.
Sen. Murkowski feels like this was certainly a good step forward, Kaleb Froehlich, former senior
counsel to Murkowski on the Senate energy committee and now vice president at Cassidy & Associates
in Washington, told Bloomberg BNA, referring to the energy bill (S. 2012). This shouldn't be a once-in-a-

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decade exercise.
As of midday Nov. 9, Republicans kept the Senate by a 51-47 margin and, less surprisingly, preserved
their majority in the House in the Nov. 8 election. A spokeswoman for Sen. Maria Cantwell (D-Wash.) told
Bloomberg BNA in an e-mail the senator hopes to retain her position as ranking member on the Senate
energy committee.
Energy Bill to Be Completed
The energy bill, which the Senate and House are currently working on in conference, is still a top priority
for the current chairman and ranking member to get to the president's desk this session, Froelich and a
Cantwell spokeswoman told Bloomberg BNA.
Chris Vieson, partner at Public Strategies Washington Inc. who served as director of floor operations for
former House Majority Leader Eric Cantor (R-Va.), told Bloomberg BNA there appears to be a good
chance of getting it done in the lame duck.
Given the incentive to finish the bill and what is largely status quo in Congress after the election, the bill
likely won't be significantly reopened or shifted, Froelich said. Vieson agreed.
Froelich said areas where Murkowski sees room for improvement or some major issues such as
permitting reform in the energy bill, could be revisited in 2017.
Other areas Murkowski sought to address, such as getting a 20-mile gravel road through Izembek
National Wildlife Refuge in southwestern Alaska built, could remain on her agenda depending on whether
an omnibus funding package is put together by the Dec. 8 deadline or if another continuing resolution is
sent to President Barack Obama's desk.
Murkowski may also look to focus on additional priorities more intensely in 2017. Western water issues,
oil development in the Arctic National Wildlife Refuge and a funding fix for firefighting are all also
possibilities for her agenda, Froelich said.
Presidential Dynamics?
Who is president matters, as well, Froelich said. However, it isn't clear how well Murkowski will work with
Donald Trump. Murkowski in October came out against the then-Republican presidential nominee
following the release of a video in which Trump made comments objectifying and degrading women.
However, nominees that must go through the Senate energy committee could face a tougher vetting by
Murkowski in 2017.
She will likely be securing firmer commitments from Interior Department and Energy Department officials
up for confirmation, after having major disagreements with Interior Secretary Sally Jewell's handling of
Western issues such as King Cove road issues, Froelich said.
She sort of didn't feel the reciprocation from this administration at times, Froelich said, adding the ideal
nominees will know Western issues and Alaska or be willing to learn.
To contact the reporter on this story: Rachel Leven in Washington at rleven@bna.com
To contact the editor responsible for this story: Larry Pearl at lpearl@bna.com

Senate Environment, Public Works: Fierce Opponent of Climate Action to Chair Environment Panel
BNA Snapshot
Wyoming Republican Barrasso to take gavel at Environment, Public Works Panel
Chairman to target U.S. climate and environmental rules, seek consensus on infrastructure

By Dean Scott and Stephanie Beasley


Nov. 9 Republicans who nearly ran the table election night and will hold the Senate will likely bring a
fierce opponent of President Barack Obama's climate agenda to head its Environment and Public Works
Committee: Wyoming Republican Sen. John Barrasso.
Barrasso would succeed current EPW Chairman Jim Inhofe (R-Okla.), who is term-limited under

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Republican Senate rules. Most expect the same level of opposition to climate change policies and what
Republicans argue was overzealous environmental regulations under Obama.
The crucial difference: Barrasso, unlike Inhofe, will hold the gavel with a Republican in the White House
and continued Republican control of the House, making it a near certainty that he and other opponents of
the Paris climate pact, Obama climate and environmental regulations, and international climate funding
will be on the offensive. The committee also is likely to spend much of early 2017 confirming Presidentelect Donald Trump's (R) nominee to administer the Environmental Protection Agency.
Barrasso also shares Inhofe's skepticism over the links between human activity and climate change. One
slight distinction: Inhofe represents an oil state, while Wyoming is a coal state, suggesting more of an
emphasis within EPW on the coal industry, which might be welcomed by coal state Republican Sen.
Shelley Moore Capito (W. Va.), who is the most senior committee Republican after the new chairman.
Barrasso is a solid yes as chairman, a Republican EPW committee aide told Bloomberg BNA Nov. 9,
adding that the ranking Democrat on the committee is a little less clear.
Asked to elaborate on the prospective chairman's agenda, Barasso's spokeswoman, Laura Mengelkamp,
said Nov. 9 the senator would have no comment at this time.
Minority Spot Opens for Carper
With Sen. Barbara Boxer (D-Calif.) retiring, the top Democratic spot would fall to the most senior
Democrat left, Sen. Tom Carper (D-Del.).
But Carper also could opt to stay on as ranking minority member at the Committee on Homeland Security
& Governmental Affairs, an arguably less divisive committee.
Carper is still not showing his cards, however. He insists he's focused on work in the lame-duck
sessionthe agenda includes keeping the government open after mid-Decemberwhen the House and
Senate resumes the 114 th Congress after the election.
I have not yet made a decision and think we have a lot of important work to accomplish in the 114th Con
gress before we start planning what we will do in the 115th, Carper said in a prepared statement.
A Path for Senator Whitehouse?
Democrats could also eye a more combative Democrat for the EPW minority post such as Sen. Sheldon
Whitehouse (D-R.I.), a leading Senate advocate of climate action who has taken on Exxon and other
fossil fuel companies for their alleged efforts to undercut climate science and low-ball climate risks to the
companies from investors and the public.
Whitehouse would have to leapfrog other Democrats with more senioritySens. Ben Cardin (D-Md.) and
Bernie Sanders (I-Vt.) but they also have options for ranking committee slots elsewhere. Whitehouse
might have more enthusiastic backing among many environmental groups that see him as more
passionate on the climate issue than the more measured Carper.
Continued Cooperation on Infrastructure?
Infrastructure investment was one area where Inhofe and Boxer, the departing ranking Democrat, agreed
and the peace on that front is unlikely to be disrupted by a change in committee leadership, Jack
Schenendorf, former House transportation committee chief of staff, told Bloomberg BNA.
I'd be quite surprised if things deteriorated in any substantial way, he told Bloomberg BNA.
Jeff Davis, a senior fellow at the Eno Center for Transportation, said Barrasso is unlikely to pursue a
dramatically different approach on transportation than Inhofe. Barrasso was a member of the conference
committee that negotiated a five-year surface transportation reauthorization law known as the FAST Act
and was especially supportive of a provision that created a new formula funding program for freight.
Carper is seen by those tracking infrastructure and transportation as continuing to show strong interest in
establishing new funding mechanisms for infrastructure, if he takes the top committee Democratic slot.
Last year, Carper voted against the $305 billion FAST Act because he said its non-transportation-relatedpay-fors were a grab bag of budget gimmicks.
Carper, a former governor of Delaware and former chairman of the National Governors Association,
previously floated a proposal to raise federal gas and diesel taxes to replenish the Highway Trust Fund
that supports federal highway and transit programs.

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The Delaware senator told Bloomberg BNA earlier this year that he would be tracking provisions in the
FAST Act that provide states with incentives to experiment with different user fee models like vehiclemiles-traveled.
Senate EPW won't have another major transportation reauthorization legislation like the FAST Act on its
plate again this Congress. But as with other congressional committees with oversight authority of the
Department of Transportation, the environment committee could be pulled into deliberations on any
major infrastructure proposal released by the next administration.
President-elect Trump has laid out plans to pursue within the first 100 days of his presidency a $1 trillion
infrastructure plan that would give tax breaks to private investors for lending money to states and
municipalities launching new projects.
To contact the reporters on this story: Dean Scott in Washington, D.C., at DScott@bna.com; Stephanie
Beasley in Washington, D.C., at sBeasley@bna.com
To contact the editor responsible for this story: Larry Pearl at lpearl@bna.com

Senate Finance: Hatch Retains Finance Chair, Expected to Push Tax Overhaul
BNA Snapshot
Hatch could release corporate integration draft
Committee will pursue oversight of the IRS

By Kaustuv Basu and Alex Ruoff


Nov. 9 Sen. Orrin G. Hatch (R-Utah), as chairman of the Senate Finance Committee, is expected to
push for a tax overhaul in the 115th Congress after the Republicans held on to their majority in the
Senate.
The Republican victory in the 2016 elections means Hatch will continue to pursue some kind of tax code
makeover that would lower the corporate tax rate, move to a more territorial tax system and provide
revenue for infrastructure through repatriation, lobbyists and staffers said. Hatch will likely pursue a
corporate integration proposal that he talked up throughout 2016, which would eliminate the double
layer of corporate taxation.
The Finance Committee will renew efforts to revamp the tax code, Hatch said in a statement after
election results were announced. Other possible areas of interest for the committee include the European
Commission's state aid investigations, the finalized debt-equity regulations under tax code Section 385
and oversight of the Internal Revenue Service.
A Republican administration and a House controlled by the same party open up the possibility that
lawmakers could use reconciliationa fast-track budget measureto pass tax overhaul legislation or
repeal the Affordable Care Act in the Senate, a former Republican tax counsel said. For Senate passage,
reconciliation measures need only a 51-vote majority instead of 60 votes.
President-elect Donald Trump's tax plans include cutting the corporate tax rate to 15 percent from 35
percent and repatriation of corporate profits held overseas at a one-time tax rate of 10 percent. Trump's
tax plans have been somewhat uncertain but some of the provisions mirror a House Republican tax
overhaul plan unveiled earlier this year.
Art of the Deal?
The idea of a deal to fund roads, bridges and other infrastructure financed by a tax on repatriated
corporate earnings has been bubbling for a while. Almost all the major players on the committee,
including Charles E. Schumer (D-N.Y.), who is expected to become Senate minority leader when
Congress reconvenes in January , have voiced support for the idea, possibly coupled with some kind of
piecemeal tax overhaul.
Lobbyists said they expected the idea to gain traction under a Republican administration.
What happens in the Finance Committee will depend a lot on what the troika of Hatch, Schumer and
Sen. Ron Wyden (D-Ore.), who is expected to remain ranking member, can agree on.

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All three are consummate dealmakers, lobbyists said.
Hatch is naturally bipartisan. Wyden has expressed a lot of interest in reform. Schumer will be want to
be part of any deal, said Dean Zerbe, a former Finance Committee tax counsel and national managing
director of Alliantgroup LP.
I think the general theme for the Republicans will be lowering the rate across the board. And probably
offsetting some of it with limitation on deductions and credits at the individual level while looking at small
business and passthroughs, Zerbe said.
Chances of bipartisan engagement in the Senate are much higher than the House, several lobbyists
said. That's because several Democratic senators are up for re-election in 2018, and they may be willing
to work with a Republican Senate.
But only time will tell whether Trump and congressional Republicans play nice and what part Senate
Democrats will play. Republicans might be able to pass tax legislation without reconciliation if they can
get the votes of Senate Democrats up in 2018 in red or swing states, one lobbyist said.
Significant hurdles stand in the way of a corporate tax overhaul, including the treatment of passthrough
businesses. And the activist left wing of the Democratic Party in the Senate led by Bernie Sanders (I-Vt.)
and Elizabeth Warren (D-Mass.) could try to pull Schumer away from any centrist compromises.
Corporate Integration.
Hatch promoted the idea of corporate integration through most of this year. His plan includes a deduction
for dividends that corporations pay and would treat these dividends the same as interest payments.
But a draft bill that his tax counsels have been working on wasn't released before the elections because
the drafters were waiting for final scores from the Joint Committee on Taxation.
Several lobbyists said they expect Hatch to ramp up efforts in this area soon. The corporate integration
idea could become a part of a bigger tax overhaul effort, they said.
The Finance Committee will also have to address tax extenders legislation next year if Congress doesn't
tackle the idea during the lame-duck session.
New Faces.
The Finance Committee currently has 14 Republicans and 12 Democrats. It remains to be seen if that
ratio changes in the next Congress.
Sens. Richard M. Burr (R-N.C.) and Patrick J. Toomey (R-Pa.), two committee members in toss-up
races, held on to their seats.
But a replacement member will have to be named for Sen. Dan Coats (R-Ind.), who is retiring.
Health Issues.
Committee members are expected almost immediately to take on proposals to expand access to home
dialysis therapy and broaden a Medicare Advantage model that tests new benefit designs, congressional
staff told Bloomberg BNA.
The Finance Committee Chronic Care Working Group, headed by Hatch and Wyden, has been working
for more than a year on ideas to improve care for Medicare beneficiaries with chronic conditions that will
save the federal government money.
The committee could introduce a bill as soon as Congress reconvenes soon for a lame-duck session.
The bill would extend the Independence at Home Model of Care that uses physicians and nurse
practitioners for home-based primary care and expand home dialysis by increasing the sites from which
beneficiaries can get an assessment of their condition by telehealth.
The chronic care proposal was widely praised by trade groups such as the American Medical Group
Association and the American Medical Association, and by political observers such as the Bipartisan
Policy Center.
There is wide support for the committee's proposal to unify the Medicare and Medicaid grievance and
appeals processes, the Bipartisan Policy Center's health team said in a statement. The center's health

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team includes Bill Hoagland, formerly vice president of public policy for CIGNA, and Katherine Hayes,
who was an associate professor of research at the George Washington University School of Public
Health.
The Finance Committee is also expected to consider taking up either mental health legislation passed by
the House earlier in 2016 (H.R. 2646) or a bill aimed at comprehensive mental health reform (S. 2680)
approved by the Senate Health, Education, Labor and Pensions Committee.
To contact the reporters on this story: Kaustuv Basu in Washington at kbasu@bna.com and Alex Ruoff in
Washington at aruoff@bna.com.
To contact the editor responsible for this story: Meg Shreve at mshreve@bna.com.

Senate Foreign Relations: Senate Foreign Relations Chair Could Depend on Corker
BNA Snapshot
Committee chair could depend on whether Sen. Corker (R-Tenn.) is tapped for secretary of state
Sen. Risch (R-Idaho), the second-ranking Republican on the committee, has expressed interest in the
chairmanship
Four Senate Foreign Relations Republicans re-elected

By Len Bracken
Nov. 9 Sen. Bob Corker (R-Tenn.) could remain chairman of the Senate Foreign Relations Committee,
but that all depends on whether he is tapped by the administration of president-elect Donald Trump to
serve lead the State Department.
Industry sources told Bloomberg BNA that it's too soon to say who might succeed Corker as chairman if
he were picked to head the State Department. But Sen. James Risch (Idaho), the second-ranking
Republican on the committee, has expressed interest in the chairmanship, a congressional aide told
Bloomberg BNA.
Corker is seen as a possible candidate to become secretary of state in the Trump administration, industry
sources told Bloomberg BNA.
Four Republicans on the committee were re-elected Nov. 8: Sens. Johnny Isakson (Ga.), Ron Johnson
(Wis.), Rand Paul (Ky.) and Marco Rubio (Fla.).
Sen. Ben Cardin (Md.) is likely to remain the senior Democrat on the panel. Sen. Barbara Boxer (DCalif.) retired, so Democrats will have to fill her slot. Reps. Tammy Duckworth (D-Ill.) and Chris Van
Hollen (D-Md.) will start the 115th Congress as freshman senators, and they were cited by an industry
source as possibilities to fill Boxer's slot.
Lindsay Newman, principal analyst at IHS Country Risk, said in a note that Trump's foreign policy would
be guided by emphasizing strength at home rather than engagements abroad. Corker, like most
Republicans, withheld his support for the administration's 12-nation trans-Pacific trade deal. He told
Bloomberg BNA in October that if the Trans-Pacific Partnership is scrapped, as called for by Trump, the
U.S. should negotiate several bilateral trade agreements with countries in the Asia-Pacific region.
To contact the reporter on this story: Len Bracken in Washington at lbracken@bna.com
To contact the editor responsible for this story: Jerome Ashton at jashton@bna.com

Senate Health, Education, Labor & Pensions: Repeal of ACA Provisions, Overtime Rules Likely to Take Spotlight in
HELP
BNA Snapshot
Republican Congress, White House emboldened to repeal key Affordable Care Act provisions
Panel Republicans likely to try to claw back against overtime rule, other Obama administration
regulations

By Jeannie Baumann and Chris Opfer

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Nov. 9 Sen. Lamar Alexander (R-Tenn.) is largely expected to continue as chairman of the Committee
on Health, Education, Labor and Pensions in the next Congress, but it's still unclear who will be sitting
next to him as the panel's top Democrat.
Sen. Patty Murray (D-Wash.), who easily won her re-election bid, is the current ranking member and is
considered a favorite to take the Democratic leadership spot on the Appropriations Committee. Although
Murray's ties to the HELP Committee issue portfolio could keep her on that panel, Sen. Bernie Sanders
(I-Vt.) has also signaled he's interested in taking over for Murray if she moves.
The committee is likely to consider rising premiums under the Affordable Care Act and a number of
biomedical initiatives with Alexander as chairman, while Sanders may use a bigger spotlight to try to
address rising drug prices. Panel Republicans are also expected to continue to try to peel back various
Obama administration labor initiatives, like the new overtime rule.
An Alexander-Sanders duo could make for an interesting dynamic.
I definitely think that tone would remind me a bit more of the House Oversight Committee with Reps.
Jason Chaffetz (R-Utah) and Elijah Cummings (D-Md.), and some of the tones coming out of their
committee, Bloomberg Intelligence senior analyst Brian Rye told Bloomberg BNA.
An aide to Alexander said in addition to enacting structural reforms to Obamacare to ensure that more
Americans can access private health insurance plans that fit their needs and their budgets, other
priorities include passing the user fee agreements for drugs, devices and generics; health privacy and
health IT; laboratory-developed tests; and supporting biomedical research.
Sen. Bob Casey (D-Pa.), who is considered more of a centrist than Sanders, may also make a play for
the ranking member spot. More shuffling could come on the Republican side if Alexander makes a longshot play for the GOP's top spot on the Appropriations Committee.
Minority Party Changes Expected
Ellie Dehoney, vice president of policy and advocacy for Resesarch!America, told Bloomberg BNA
Sanders may start the conversation on drug pricing or other issues from a more extreme place than
Murray or another leading Democrat. At the same time, she said, the Vermont senator and former
presidential candidate is willing to compromise and come up with bipartisan solutions. Casey would
probably start from a more centrist position than Sanders.
Aside from drug pricing, top health-related issues for HELP next year are likely to be mental health and
efforts to reform or repeal the Affordable Care Act.
Negotiations for user fee agreements for the drug, device and generic industries may drag out a bit more
than in 2012, when the user fee negotiations last took place, Rye said. While the actual agreements are
pretty much fine, delays would be due to everything else that gets tacked on to a must-pass bill.
Obama Labor Moves in Crosshairs
Alexander is expected to continue to try to claw back against a wide range of Obama administration labor
initiatives, while working to stem the tide of new regulations on employers.
The Labor Department's overtime rule and an executive order requiring contractors to disclose certain
employment law violations are likely to be at the top of the target list. Committee Republicans have also
sharply criticized the Equal Employment Opportunity Commission's pay data disclosure obligations and a
rule limiting incentives for workers who participate in employer wellness plans.
Although there's been little common ground between the two parties on labor issues, there's potential for
some bipartisan action on job training and apprenticeships. Those programs may be of particular interest
if Trump follows through on campaign promises of massive infrastructure spending projects.
Republicans sweeping election victories may also embolden panel members to push national right-towork legislation. GOP lawmakers have long supported state laws banning union security clauses in
collective bargaining agreements and allowing workers in a collective bargaining unit to decline to pay
union dues.
Republicans Emboldened to Hit Obamacare
Rye said with Republicans in control of both houses of Congress and the White House in 2017, they'll
feel emboldened to increase the intensity of effort to attack the Affordable Care Act. He noted Congress

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
passed a bill in February that would have repealed a number of key Obamacare provisions, including the
individual and employer mandate, Medicaid expansion and all the taxes imposed by the law. President
Barack Obama vetoed that bill (H.R 3762). Passing those provisions again would only require a simple
majority in the Senatewhich Republicans have. Rye said to look for movement on the Affordable Care
Act in the first half of 2017.
It's one thing to pass that bill when you know the president's going to veto it, Rye said. But when you
know the president might sign it, then I think there's maybe more time taken to make sure we have the
off-ramp for [insured] individuals affected by disruption in their plan.
While a lot of the ACA work will happen in the Senate Finance Committee, Research!America's Dehoney
said, No matter what, we're going to have to be thinking about creative solutions to stabilize the ACA.
Six Republicans and two Democrats on the HELP Committee were up for re-election. Rep. Tammy
Duckworth (D-Ill.) unseated Sen. Mark Kirk (R-Ill.), but all other members retained their seats. Sen.
Barbara Mikulski (D-Md.) won't return to the committee after retiring at the end of the year. Sen. Richard
Burr (R-N.C.) who won after a tough race, is next in seniority behind Alexander.
To contact the reporters on this story: Jeannie Baumann in Washington at jbaumann@bna.com; Chris
Opfer in Washington at copfer@bna.com
To contact the editor responsible for this story: Randy Kubetin at RKubetin@bna.com

Senate Homeland Security: Senate Homeland GOP Leadership to Maintain Panel Policy
BNA Snapshot
Senate homeland security committee will continue bipartisan focus on cybersecurity, encryption policy
Committee also expected to take up Department of Homeland Security reform, combatting terrorism

By Daniel R. Stoller
Nov. 9 The Republicans will maintain control of the Senate in the 115th Congress and that means
leadership on homeland security policy will remain largely unchanged.
After a much heated election, the Republicans will remain in control of the Senate and the U.S. Senate
Committee on Homeland Security & Governmental Affairs. Sen. Ron Johnson's (R-Wis.) come-frombehind reelection victory over Russ Feingold (D-Wisc.) will likely leave him as chairman of the committee,
according to Bloomberg Government analysts. Sen. Tom Carper (D-Del.) is expected to stay on as
ranking member, the analysts said.
The rest of the committee is likely to remain largely unchanged with Sen. John McCain (R-Ariz.) winning
his senate race. Sen. Kelly Ayotte (R-N.H.) is in a close race in her reelection bid against New
Hampshire Governor Maggie Hassan (D). Hassan has declared victory but hasn't officially been named
the winner at the time of this writing. It is unclear who would fill Ayotte's seat on the panel if she loses.
Bruce McConnell, global vice president and head of the EastWest Institute's Cooperation in Cyberspace
Initiative, told Bloomberg BNA that regardless of committee leadership and specific makeup,
cybersecurity policy is usually a non-partisan issue. An increased focus on cybersecurity policy will
become more bipartisan as the seriousness of the situation becomes more obvious, he said.
Encryption, Oversight Shape Policy
The battle between Apple Inc. and the Federal Bureau of Investigation over access to a terrorists'
encrypted iPhone will continue to shape the debate over law enforcement agencies access to
consumers' encrypted data.
Andrew Howell, a cybersecurity partner at Monument Policy Group in Washington, told Bloomberg BNA
that the committee is likely to continue to hold hearings on encryption, and it will continue to be an issue
throughout 2017.
McConnell, who also was a former deputy under secretary for cybersecurity at the Department of
Homeland Security, told Bloomberg BNA that the committee will need to balance competing interests on
encryption. The committee needs to work with Senate leadership and the White House to find a solution
that works both nationally and internationally.

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Continued oversight on President Barack Obama's cybersecurity policies will remain a focus of the
committee.
Howell said that the Senate homeland panel will turn its attention to oversight of the upcoming
Commission on Enhancing Cybersecurity report. The commission was established Feb. 9 as part of
Obama's Cybersecurity National Action Plan. It is made up of public and private sector stakeholders and
is led by former National Security Advisor Tom Donilon.
Other Policy Initiatives
Combating terrorism across the globe will remain a focus of the Senate homeland committee.
Howell said that the committee will work towards countering violent extremism through hearings and
legislation. The Senate will seek ways to combat both foreign and domestic terrorist threats.
Although Senate homeland security committee aides declined to comment on the 115th Congress, they
did point to actions undertaken in the 114th Congress as representative of future policy. For example,
over the last term the committee focused on Department of Veterans Affairs (VA) and Department of
Homeland Security (DHS) reform.
Howell said that the panel will also hold confirmation hearings for new DHS leaders, which may spark
a wide range of policy discussion that could bleed over into oversight and legislative efforts, he said.
Subcommittee to Watch
For the past two years, Sens. James Lankford (R-Okla.) and Heidi Heitkamp (D-N.D.) have actively
worked together to lead the Subcommittee on Regulatory Affairs and Federal Managementa working
relationship that is likely to continue.
Although the bipartisan pair of senators pushed several regulatory overhaul measures through the
committee over the past two years, none are expected to reach the Senate floor in the lame duck
session. It is unclear if the bipartisan pair would continue to push overhaul legislation in the 115th
session.
In an interview with Bloomberg BNA, Lankford blamed Democrats for blocking regulatory bills that would
diminish the power of the president and executive branch agencies.
However, some common areas of agreement exist between Republicans and Democrats, Lankford said.
But we've got to find 60 of us that can find common ground on a set of ideas, he said. Since neither
party gained a super-majority Nov. 8, that dynamic will remain in place.
And whatever bill can pass will not go far enough to solve the problem, Lankford said. So at the end of
the day, we've got to be able to set party aside and say, what's the right way to do regulations, where
people are actually engaged regardless of who's in the executive branch, he said.
With assistance from Cheryl Bolen in Washington
To contact the reporter on this story: Daniel R. Stoller in Washington at dstoller@bna.com
To contact the editor responsible for this story: Donald G. Aplin at daplin@bna.com

Senate Judiciary: Judiciary Primed to Address Courts Vacancy Crisis


BNA Snapshot
There are more than 100 current vacancies out of nearly 900 federal judgeships
Vacancies more likely to get filled with president, Senate majority from same party
On antitrust front, populous election results could focus committee on megamergers

By Kimberly Strawbridge Robinson and Alexei Alexis


Nov. 9 Cutting through the sea of obstruction to judicial appointees is more likely now that
Republicans have taken control of both the Senate and White House, Lena Zwarensteyn of the
progressive American Constitution Society told Bloomberg BNA.
The Senate Judiciary Committee, likely to continue to be led by Sen. Charles Grassley (R-Iowa), is

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
poised to deal with what Sen. Patrick Leahy (D-Vt.), the current ranking member, called a vacancy
crisis in an Oct. 27 press release.
The committee saw little shake up of its membership. Sen. David Vitter (R-La.), who didn't seek reelection, is the only committee member not returning to the senate of the six who were up for re-election.
Still, the Republican party's ability to hold on to the Senate put the brakes on a dramatic overhaul of an
already left-leaning federal judiciary, Carrie Severino of the conservative Judicial Crisis Network,
Washington, told Bloomberg BNA.
President-elect Donald Trump will now have an incredible opportunity to fill the judiciary with
constitutionalist judges in the mold of Justice Scalia, Severino said. She was referring to the late U.S.
Supreme Court Justice Antonin Scalia, who passed away unexpectedly in February, leaving an as-yetunfilled seat on the high court bench.
Going Nuclear
That's because the number of judicial vacancies nearly doubled during the 114th Congress, a Sept. 6
letter from American Bar Association President Linda A. Klein to Senate leaders said.
The most favorable scenario for a president looking to fill those vacancies is to have a Senate of the
same party, Edward Whelan, of the conservative Ethics and Public Policy Center, Washington, told
Bloomberg BNA.
The upside of same-party control of the Senate is all the greater now that the filibuster has been
abolished for lower-court confirmations, Whelan, who worked as a Senate Judiciary staffer from
1993-1995, said.
In 2013, Senate Democrats abolished the filibuster for all judicial nominees except those to the Supreme
Court. Under that nuclear option, Senate Republicans only need to scrape up 50 votesnot 60to
confirm most judicial nominees.
Its unclear if Senate Republicans will extend the nuclear option to the Supreme Court, should Democrats
try to block a nomination.
The current Supreme Court nominee, Merrick Garland, whom President Barrack Obama nominated in
March, has been blocked by Senate Republicans. His nomination is even less likely to go through now.
But Caroline Frederickson, also from the American Constitution Society, said that if Republicans
nominate someone with the same credentials and fair-minded approach to the law as Garland, such a
person would not need to fear a filibuster.
Antitrust Concerns
In light of concerns about a recent wave of megamergers, committee members are also expected to be
actively engaged in the confirmation process for the person selected to lead the Antitrust Division of the
Department of Justice.
One interesting thing the election has shown is that there's a large chunk of the voting population that's
in a very populist mood, with a lot of hostility toward large organizations, said Paul Bock, a partner at
Holland & Knight LLP, Washington. I think you're going to see both Democrats and Republicans
responding to that.
Top committee members on both sides of the aisle have urged DOJ to thoroughly review AT&T Inc.'s
planned $85.4 billion purchase of Time Warner Inc. A subcommittee hearing on the deal has been set for
Dec. 7. Trump has said that he would block the merger.
To contact the reporters on this story: Kimberly Strawbridge Robinson and Alexei Alexis in Washington at
krobinson@bna.com, aalexis@bna.com
To contact the editor responsible for this story: Jessie Kokrda Kamens at jkamens@bna.com

Senate Rules: Senate Rules Committee Chairman Blunt Re-Elected


BNA Snapshot
Senate Rules and Administration Committee Chairman Blunt re-elected

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
Committee ranking Democrat Schumer, also re-elected, expected to become Senate minority leader

By Kenneth P. Doyle
Nov. 9 Senate Rules and Administration Committee Chairman Roy Blunt (R-Mo.) was re-elected Nov.
8, overcoming a strong challenge from Democrat Jason Kander.
Blunt is expected to return to the Rules Committee, along with most of the panel's other veteran
members. Republicans held onto a narrow margin of control in the Senate.
The Rules Committee's ranking Democrat, Sen. Charles Schumer (N.Y.), also was re-elected Nov. 8.
Schumer is expected to become the Senate minority leader in the 115th Congress and to give up his
ranking seat on the Rules panel.
The Rules Committee has jurisdiction over election and campaign finance issues. It has had no
significant activity on these issues in the current Congress.
The committee's jurisdiction also includes a wide range of administrative matters, including organizing
the January inaugural ceremonies for President-elect Donald Trump.
To contact the reporter on this story: Kenneth P. Doyle in Washington at kdoyle@bna.com
To contact the editor responsible for this story: Paul Hendrie at pHendrie@bna.com

Senate Small Business: Senate Small Business Committee Leadership in Flux


BNA Snapshot
Senate Small Business and Entrepreneurship Committee is getting new leadership as Chairman Vitter
(R-La.) retires
Sen. Risch (R-Idaho) first in line, with Rubio (R-Fla.) second for chairmanship, Vitter spokeswoman
tells Bloomberg BNA

By Brandon Ross
Nov. 9 The leadership is in flux for the Senate Small Business and Entrepreneurship Committee, even
though the election is decided.
That's because the current chairman, David Vitter (R-La.), is retiring, leaving the top committee position
up for grabs.
First in line for the chairmanship is Sen. Jim Risch (R-Idaho.), a Vitter spokeswoman told Bloomberg
BNA through e-mail. The next member in line would be Sen. Marco Rubio (R-Fla.), she said.
Rubio beat out his Democratic challenger, Patrick Murphy, 52.1 percent to Murphy's 44.2 percent.
Rubio hasn't committed to serving out a full Senate term reportedly because he's considering a 2020
presidential bid, according to Ballotpedia, which monitors the elections around the country at all levels.
Risch isn't up for re-election until 2020.
The committee's current ranking member, Jeanne Shaheen (D-N.H.), is also not up for re-election until
2020.
Although a spokesperson for Shaheen could not be reached, it is likely that she would remain on the
committee as the ranking member if the Senate norm of staying on a committee where seniority has
already been built sticks.
While both the Republican and Democratic committee pages share many of the same focus areas for
policy and oversight, under a continued Republican leadership, small businesses can continue to expect
a focus on minimizing regulations on small firms. With Donald Trump as the president-elect, an effort to
cut taxes is probably just over the horizon.
To contact the reporter on this story: Brandon Ross in Washington at bross@bna.com
To contact the editor responsible for this story: Paul Hendrie at phendrie@bna.com

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
Senate Veterans' Affairs: Senate Veterans Affairs: Benefits, Worker Discipline Top Agenda
ByMichael Smallberg
Nov. 9 Georgia Republican Johnny Isakson and Connecticut Democrat Richard Blumenthal want to
keep the Senate Veterans Affairs Committee on a steady course, targeting issues such as health
benefits and accountability at the Veterans Affairs Department (VA). Both senators easily won their reelections on Tuesday.
President-elect Donald Trump highlighted many of the same issues during his campaign, saying he
would push to fire VA staffers who harm veterans, withhold bonuses from employees who waste funds
and allow veterans to seek health care outside of the department.
Omnibus Bill
In the 114th Congress, Isakson and Blumenthal championed a 394-page omnibus bill that would direct
the VA to assist more caregivers of veterans, monitor the abuse of opioid prescription drugs and increase
access to disability benefits.
The measure was supported by several veterans groups and lawmakers from both sides of the aisle,
though it hit a snag because of provisions on VA employee discipline and reducing spending on
education benefits.
The bill's sponsors wanted to hold workers to account following reports of veterans who died while
waiting for treatment at VA medical facilities and the Obama administration's announcement that it
wouldn't use an expedited process to remove senior officials set up by the 2014 Veterans Access,
Choice, and Accountability Act (Public Law 113-146).
I am not going to stand by and watch the VA continue to look the other way while another one of its own
gets away with egregious misconduct at the expense of veterans access to quality care and services,
Isakson said in a June 17 news release.
In a March 31 letter, two Florida RepublicansSen. Marco Rubio and Jeff Miller, the chairman of the
House Veterans Affairs Committeesaid the disciplinary language was too weak. Likewise, Concerned
Veterans for America (CVA) said the bill would shield VA employees accused of misconduct and provide
too much leeway for bonus payments.
The Senate's record on VA accountability is night and day compared to what the House has done, said
Dan Caldwell, CVA's vice president of policy and communications, in a Nov. 2 interview with Bloomberg
Government.
Iraq and Afghanistan Veterans of America (IAVA) opposed a proposal to pay for the bill by cutting more
than $3 billion in educational benefits for post-9/11 veterans. We've been banging the drum, IAVA
Legislative Director Tom Porter said in an interview. New Hampshire Republican Kelly Ayotte, said she
would block the provision. Election results show Ayotte barely trailing Democrat Maggie Hassan.
Lame-Duck Action?
The omnibus bill could still see floor action during the lame-duck session. There's certainly an appetite
to get something done, said Carlos Fuentes, a deputy director at Veterans of Foreign Wars, in an
interview. We have urged both committees to come to the table and agree on a vehicle that would pass,
he said.
If the omnibus package doesn't advance, the Senate could take up House-passed legislation, H.R. 5620,
that would make it easier for the VA to fire executives and rank-and-file employees. Porter said Isakson
could be amenable to the disciplinary provisions, although employee groups said the House's approach
would erode due-process rights.
Blumenthal's legislative agenda includes streamlining the disability claims and appeals process and
protecting student veterans who attend for-profit schools.
To contact the reporter on this story: Michael Smallberg in Washington at msmallberg@bloomberg.net
To contact the editor responsible for this story: Loren Duggan at lduggan1@bloomberg.net
2016 Bloomberg L.P. All rights reserved. Used with permission

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report
Joint Committees
Joint Economic: Joint Economic Committee to Flip Leadership to House, Still Republican Led
BNA Snapshot
House to take control of Joint Economic Committee, likely Rep. Tiberi (R-Ohio) as new chairman
Committee's top players likely to mostly stay same, but its second-in-command is up for grabs

By Brandon Ross
Nov. 9 The Joint Economic Committee's key players will probably remain mostly the same, but its
second-in-command is up for grabs.
The committee works on a rotating power cycle, which in this case means that the chairmanship is
switching to the House. Rep. Pat Tiberi (R-Ohio), fresh off his big win on election night, is next in line for
the chairmanship. Tiberi, the current committee vice chairman, won reelection with 67 percent of the
vote.
The Joint Economic Committee fills an interesting role as simply an advisory body on economic policies.
Their role is similar to that of the President's Council of Economic Advisers. The committee, with its
unique two-chamber membership, has no legislative jurisdiction and doesn't take up legislation, in
contrast to how most committees function.
While the third and fourth most powerful positions on the committee will likely be filled by existing
committee Democratic leaders, it's not as obvious which Senate Republican may seek the committee's
second-in-command, called the vice chairman. This is because the member that would fill this position,
Sen. Dan Coats (R-Ind.) is retiring. Coats Indiana chamber seat is succeeded by newly elected Todd
Young, but it would be unusual for a junior member to receive a leadership role on any committee.
Sen. Amy Klobuchar (D-Minn.) would likely be the new ranking committee member. She's currently the
senior Democratic committee member. Meanwhile, Rep. Carolyn Maloney (D-N.Y.) will go from the
current ranking member to the senior Democrat on the committee. Klobuchar is up for reelection in 2018.
Maloney easily won reelection Nov. 8 with 83 percent of the vote.
The committee rotates which chamber holds the chairmanship, vice chairmanship, ranking and senior
positions every new congressional cycle. In fact, the vice chair and ranking member can even end up
being the same person, depending on which party holds a chamber majority and which chamber's turn it
is to lead, Breann Gonzalez, a senior committee staffer told Bloomberg BNA.
To contact the reporter on this story: Brandon Ross in Washington at bross@bna.com
To contact the editor responsible for this story: Paul Hendrie at phendrie@bna.com

Joint Taxation: Brady to Become Joint Tax Committee Chairman in January


BNA Snapshot
Top spot switches between Ways and Means, Finance committee leaders every year
That would make it Kevin Brady's turn for JCT's lead formal role

By Aaron E. Lorenzo
Nov. 9 Rep. Kevin Brady (R-Texas) will chair the Joint Committee on Taxation at the start of the 115th
Congress in January.
The JCT position is filled on a rotating basis by the Senate Finance Committee chairman and the House
Ways and Means Committee chairman, changing annually.
During the first session of each Congress, which lasts one calendar year, the head of the House
committee leads the JCT and the Senate committee's chairman becomes vice chair; the roles are
reversed during the second year of a Congress. Brady, who remains Ways and Means chairman, will
therefore add the formal JCT chair role per the regular schedule, while Finance Committee Chairman
Orrin G. Hatch (R-Utah) becomes the JCT's vice chairman.
In 2016, Hatch chaired the JCT and Brady served as vice chair.

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Daily Report for Executives (BNA), DER Issue No. 218, Special Report

Legislative Scorekeeper
The JCT is largely considered a scorekeeper on revenue legislation, forecasting whether or not a bill
would raise or lose money. After the 2014 midterm elections, when the committee's leadership was
shuffled, giving it a GOP chairman and vice chairman, the JCT was also charged with forecasting the
economic impact of select revenue bills through so-called dynamic scoring.
Both the House Republican tax plan championed by Bradydubbed the blueprintand Hatch's proposal
to eliminate double taxes on corporate incomecalled corporate integrationare expected to receive
dynamic scores from the JCT.
Committee Changes
JCT Chief of Staff Thomas Barthold is expected to remain in his position. The committee's congressional
membership is split between five House and five Senate members, with those who get JCT slots based
on their seniority on the tax-writing panels.
One lawmaker currently serving on the JCTRep. Charles B. Rangel (D-N.Y.)is retiring this year and
will have to be replaced.
House members in line to remain on the committee include Sam Johnson (R-Texas), Devin Nunes (RCalif.) and Ways and Means ranking member Sander M. Levin (D-Mich.). Members from the other side of
the Capitol include Sens. Charles E. Grassley (R-Iowa), Michael D. Crapo (R-Idaho), Debbie Stabenow
(D-Mich.) and Finance Committee ranking member Ron Wyden (D-Ore.).
To contact the reporter on this story: Aaron E. Lorenzo in Washington at aaron@bna.com
To contact the editor responsible for this story: Meg Shreve at mshreve@bna.com

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