Governmental Affairs Election Overview: A Look Ahead to the 111 th Congress

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1 ALBANY AMSTERDAM ATLANTA AUSTIN BOSTON CHICAGO DALLAS DELAWARE DENVER FORT LAUDERDALE HOUSTON LAS VEGAS LOS ANGELES MIAMI NEW JERSEY NEW YORK ORANGE COUNTY ORLANDO PALM BEACH COUNTY PHILADELPHIA PHOENIX SACRAMENTO SHANGHAI SILICON VALLEY TALLAHASSEE TAMPA TOKYO TYSONS CORNER WASHINGTON, D.C. WHITE PLAINS ZURICH Strategic Alliances with Independent Law Firms BERLIN BRUSSELS LONDON MILAN ROME TOKYO 2008 Election Overview: A Look Ahead to the 111 th Congress Post-Election Report The 2008 elections dramatically changed the balance of power in Washington, D.C. For the first time in 16 years, the Democratic Party will control both Congress and the White House. Following their takeover of the House of Representatives and the Senate in 2006, the Democrats increased their majorities in both chambers. The latest election results show House Democrats picking up 19 seats, giving them a majority, with five races still undecided. The Democrats picked up six seats in the Senate, increasing their majority from a narrow margin to 57-40, with three Senate races in Georgia, Alaska, and Minnesota still undecided. We anticipate that these three seats are likely to remain in Republican hands, meaning the Democrats will not attain the 60 vote count to control Senate floor debate and prevent Republican filibusters. However, as a result of the large Democratic gains in Congress and Senator Obama s election as President, the Democrats will control the policy agenda in the first session of the 111 th Congress. What s Next? Congress will return briefly to Washington the week of November 17 th to hold party organizational meetings in preparation for the new Congress that begins in January. Each party will hold their leadership elections during this organizational period. The House and Senate Democratic leadership will likely remain the same with the exception of Democratic Caucus Chair, Rahm Emanuel, who will be White House Chief of Staff. There will be a shake-up in Republican House leadership. Congressman Roy Blunt of Missouri has announced that he will not seek another term as the Minority Whip and it is likely that Congressman Eric Cantor of Virginia will succeed him. The parties will also begin to work on committee assignments, but we do not anticipate finalization of this process until early January. It is possible that a lame duck session will be convened to pass an economic stimulus package. The main component of this stimulus package will likely be a plan to allocate large sums of money to states for transportation infrastructure improvements. In legislation recently passed in the House, money was allocated to states, which in turn were expected to dispense the money to local governments for ready-to-go projects. The bill required that the funds be spent on projects that could be underway in no more than 120 days. House and Senate members have also discussed including an extension of unemployment benefits, food stamps and low-income energy assistance for individuals. Business interests continue to push for inclusion of programs to help small businesses and the auto industry, and to address mortgage-related matters. President Bush has opposed efforts to pass another economic stimulus package saying that Congress should wait to see the full effect of the first stimulus and the financial bailout. GREENBERG TRAURIG, LLP ATTORNEYS AT LAW - 1

2 When the 111 th Congress convenes in January 2009, the Democratic-controlled Congress and the Obama administration will change priorities and pursue a fundamentally different agenda from that of the last eight years. This will result in major policy changes on a wide array of issues, including banking and securities, environmental regulation, the expiration of corporate and personal tax breaks, trade, energy, immigration, health care, transportation and national defense. A high priority issue will be the Employee Free Choice Act, commonly know as card-check legislation that would enable workers to unionize without a secret ballot if a majority of workers sign authorization cards. What Does This Mean For Greenberg Traurig Clients? Health care reform, financial services reform, government procurement reform, corporate and individual tax increases, climate change, labor relations/card check, and food and other safety legislation are just a small sample of the measures that the next Congress is expected to advance. The Democratic Congress will seek to pass a $100 billion to $300 billion stimulus package, re-write a multibillion-dollar transportation-funding bill and possibly provide additional financial assistance to the auto industry and other struggling sectors. Competition for these funds will be extremely high. Corporations and small businesses will need the very best governmental affairs teams to help them secure the benefits of this spending, which may be the key to surviving in this challenging economic environment. The following is a brief overview of possible legislative issues the 111 th Congress. Issue Area Possible Initiatives in the 111th Congress Business Card-check legislation - the Employee Free Choice Act Increase employer penalties for violations of worker safety and benefit laws Financial services regulatory overhaul Boost funding for OSHA, increase the number of inspectors Extend the research and development tax credit Increase the minimum wage Repeal tax breaks that encourage companies to move jobs overseas Education Make permanent the tax deductibility of college tuition Cut interest rates on student loans Increase the number of Pell grants Environment Mandate curbs of industrial carbon dioxide emissions Establish a cap-and-trade program Examine methods to combat climate change Defense & Homeland Security Increase screening of cargo containers entering ports and land borders Increase funding for training and equipping of first responders Examine DOD contracting practices Increase veterans benefits Augment capabilities of Special Forces GREENBERG TRAURIG, LLP ATTORNEYS AT LAW - 2

3 Issue Area Possible Initiatives in the 111th Congress Energy Repeal tax incentives for oil and gas producers Expand subsidies and incentives for renewable energy Mandate renewable portfolio standards for utilities Reconsider imposing use it or lose it for federal oil and gas leases Revisit expired offshore drilling moratorium Immigration Address the million undocumented workers in the U.S. Establish a new guest worker program Increase the green card allotments for families and employers Revamp worksite enforcement mechanisms Reform employer verification of employment eligibility Mandate electronic and possibly biometric systems Transportation Reauthorize SAFETEA-LU Examine fees that provide funding for the FAA and airport operations Increase funding for mass transit Trade Consider new and pending free trade agreements with Columbia, Panama and South Korea Debate new trade preference programs Examine the imbalance of trade with China Extend the President s trade promotion authority Reexamine NAFTA Tax Focus tax policy on middle class issues Address the Alternative Minimum Tax Increase child and education-related tax incentive programs Examine windfall profit taxes on oil companies Address expiration of corporate and personal tax breaks Address expiration of individual income, capital gains and dividends tax breaks Obama Transition Team Update With the election of Barack Obama and Joe Biden, the transition process will be formally organized as the Obama-Biden Transition Project, a 501(c)(4) organization to ensure a smooth transition from one administration to the next. The work of this entity will be overseen by three co-chairs: John Podesta, Valerie Jarrett, and Pete Rouse. An advisory board comprised of individuals with significant private and public sector experience with assist the co-chairs: Carol Browner, William Daley, Christopher Edley, Michael Froman, Julius Genachowski, Donald Gips, Governor Janet Napolitano, Federico Peña, Susan Rice, Sonal Shah, Mark Gitenstein, and Ted Kaufman. Gitenstein and Kaufman will serve as co-chairs of Vice President-elect Biden's transition team. GREENBERG TRAURIG, LLP ATTORNEYS AT LAW - 3

4 Supervising the day-to-day activities of the transition will be: Transition Senior Staff Chris Lu - Executive Director Dan Pfeiffer - Communications Director Stephanie Cutter - Chief Spokesperson Cassandra Butts - General Counsel Jim Messina - Personnel Director Patrick Gaspard - Associate Personnel Director Christine Varney - Personnel Counsel Melody Barnes - Co-Director of Agency Review Lisa Brown - Co-Director of Agency Review Phil Schiliro - Director of Congressional Relations Michael Strautmanis - Director of Public Liaison and Intergovernmental Katy Kale - Director of Operations Brad Kiley - Director of Operations The phone number for the transition headquarters is The official website for the transition is As events unfold, the Governmental Practice will continue to provide updates on important issues affecting Greenberg Traurig clients. GREENBERG TRAURIG, LLP ATTORNEYS AT LAW - 4

5 This GT Alert was prepared by Diane J. Blagman, Alan Slomowitz, Michael E. Williams and Joshua R. Sanderlin. Questions about this information or any other governmental affairs issues can be directed to: Diane J. Blagman* Alan Slomowitz Michael E. Williams* Joshua R. Sanderlin* Or any member of the Greenberg Traurig Governmental Practice Albany Amsterdam Atlanta Austin Boston Chicago Dallas Delaware Denver Fort Lauderdale Houston Las Vegas Los Angeles Miami New Jersey New York Orange County Orlando Palm Beach County North Palm Beach County South Philadelphia Phoenix Sacramento Shanghai Silicon Valley Tallahassee Tampa Tysons Corner Washington, D.C Zurich * Lobbyist - not admitted to the practice of law. This Greenberg Traurig Update is issued for informational purposes only and is not intended to be construed or used as general legal advice. The content is known to be accurate/current as of the date of distribution; subsequent changes to legislation, regulations, policies, etc., mentioned herein are not reflected. Please contact the author(s) or your Greenberg Traurig contact if you have questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer s legal qualifications and experience. Greenberg Traurig is a trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A Greenberg Traurig, LLP. All rights reserved. GREENBERG TRAURIG, LLP ATTORNEYS AT LAW - 5