GOP Elects Leadership; President-Elect Trump Names Cabinet
Washington Update
Senate Leadership
On Wednesday, November 13, Senator John Thune (SD) emerged as the winner of the GOP leadership race and is poised to become the next Senate majority leader. As Congress gets back to work, Thune has cautioned that the procedural limits of the reconciliation process will likely restrict its use more than some House Republicans anticipate, urging them to manage their expectations.
House Budget Chair Jodey Arrington (TX) aims to use both of next year’s reconciliation opportunities to target mandatory spending, including health care, welfare, and federal employee benefits. While cuts to Medicare and Social Security are off the table, Arrington sees reconciliation as a critical tool for addressing other large spending areas.
As for the FY25 funding deal, House Appropriations Chair Tom Cole (OK) said it’s too soon to predict whether Congress will meet the December 20 deadline. He emphasized the goal of reaching a deal as quickly as possible but indicated a willingness to follow the president’s and leadership’s guidance on timing.
Trump Cabinet
President-elect Donald Trump continues to fill top positions in his cabinet, and while he has yet to name his choice for Secretary of the U.S. Department of Labor (DOL), the appointment will likely be less controversial than other picks he has made. Even if Trump nominated a pro-business figure, which could alienate working-class voters and unions he made efforts to appeal to throughout the campaign, Senate Republicans — already facing more controversial nominees for other cabinet posts — would likely provide a steady path to confirmation.
Among potential candidates being discussed are current mayor of Pinehurst, North Carolina, Patrick Pizzella, who served at DOL as deputy labor secretary and acting labor secretary during Trump’s first term; former Equal Employment Opportunity Commissioner Keigh Sonderling, who would be Trump’s least controversial choice due to his work advising employers how to avoid discrimination through artificial intelligence during his time at the agency; Andrew Puzder, who was Trump’s pick for Labor Secretary during his first term but his nomination was derailed by spousal abuse allegations; and Congressman Brandon Williams (NY), who recently lost his re-election bid to Democratic state Senator John Mannian and currently serves on the House Education and the Workforce Committee.
DOL Overtime Rule
On Friday, November 15, U.S. District Judge Sean Jordan blocked the Biden Administration’s overtime rule, which would have expanded access to overtime pay to millions more salaried workers across the country. In his ruling, Judge Jordan determined that the Department of Labor’s (DOL’s) regulation was based on workers’ salary levels, rather than the "executive, administrative, and professional" exemptions outlined in the Fair Labor Standards Act (FLSA). The rule would have required employers to pay overtime to salaried workers who make less than $58,656 — an increase from the current level of $43,888. Now, the previous threshold of $35,568 — which was set in 2019 under the first Trump administration — could go back into effect. The DOL is now reviewing the decision with the Department of Justice to determine next steps.
Senate HELP Committee
Senator Rand Paul (KY) has chosen to chair the Senate Homeland Security Committee over the Health, Education, Labor, and Pensions (HELP) Committee, allowing Senator Bill Cassidy (LA) to lead the HELP panel, where he currently serves as ranking member. Cassidy expressed his eagerness to lead the committee, emphasizing his commitment to advancing a "Pro-America agenda" and delivering solutions for the nation. Paul, who had the seniority to choose between the two committees, selected Homeland Security to focus on investigating the origins of the Covid-19 pandemic.
While Cassidy has a strong health policy background, he has also led GOP opposition to Biden’s labor regulations, including blocking the NLRB’s joint-employer rule in April. Cassidy has indicated a willingness to work with Democrats on workforce legislation, such as the Workforce Innovation and Opportunity Act. This shift may benefit organized labor, as Cassidy is less likely to push anti-union policies compared to Paul, who supports the National Right to Work Act, which would undermine unionization provisions in federal labor laws. At times, Cassidy has been critical of Committee Chair Bernie Sanders’ (VT) approach as chair. It’s unclear whether Sanders will remain a ranking member of HELP in the next Congress.
Meanwhile, on Thursday, November 14, Cassidy and Senator Susan Collins (ME) sent a letter to the Bureau of Labor Statistics (BLS) regarding revisions to employment data under the Biden administration. BLS adjusted August job numbers, revealing a shortfall of nearly 800,000 jobs compared to earlier reports, angering lawmakers.
Click here to access the letter.
FAFSA Deadline Act
On Friday, November 15, with overwhelming bipartisan support, the House of Representatives passed the FAFSA Deadline Act (HR 8932) on a vote of 381 to 1. Education and Workforce Committee Chairwoman Virginia Foxx (NC) and Committee Ranking Member Bobby Scott (VA) both praised the House for passage of the legislation. The bill, sponsored by Congresswoman Erin Houchin (IN), requires the FAFSA to be released and fully operational by October 1 each year, providing clarity for students, families, and schools. Currently, the Education Department has the flexibility to delay the FAFSA release until January 1, which tends to lead to confusion and disruption. By setting a hard deadline, the bill aims to prevent future delays and ensure timely access to financial aid. Earlier this year, Foxx and Senate Health, Education, Labor, and Pensions (HELP) Ranking Member Bill Cassidy (LA) criticized the Biden administration for blocking a GAO investigation into its failure to implement the new FAFSA program.
Initial Jobless Claims
In the week ending November 9, the advance figure for seasonally adjusted initial claims was 217,000, a decrease of 4,000 from the previous week's unrevised level of 221,000. The 4-week moving average was 221,000, a decrease of 6,250 from the previous week's unrevised average of 227,250. The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending November 2, unchanged from the previous week's unrevised rate.
Click here to access the report.
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