Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”

Chamber members:

Perfect timing for a roundup before the weekend as today is a busy news day on the state and federal levels with veto session coming to a close and new pushes on the hill.

*Government Affairs Roundup brought to you by Silver Cross Hospital*

Congressional Maps, the Third Try
Some last-minute drama could have created a campaign frenzy before lawmakers decided to release a third revision of the Illinois congressional map last night, giving Rep. Marie Newman a little more of her current territory in a new 6th District that pits her against fellow Democratic Rep. Sean Casten. The congressional map was discussed in a public hearing today at 9 a.m. before going to a full vote later in the day.

Rep. Lisa Hernandez, chair of the House Redistricting Committee, praised “the passion and dedication” of her committee, adding, in a statement: “I am confident these proposed congressional boundaries will maintain our status as a leader in the nation for minority representation.”

There was tension in the hours before the map was released. Members of the Legislative Black Caucus had pushed to increase the number of Black residents in three predominantly African American districts. Given the decline of the Black population, however, such a change would have drastically changed the boundaries of other districts.

House Speaker Emanuel “Chris” Welch made it clear to his caucus yesterday that he didn’t want to bring a map to the floor unless it could get 72 “yes” votes. Without that, the map would have to be held until January, when it would only need 60 votes to pass — potentially putting political campaigns in a tizzy because they wouldn’t know the boundaries of congressional districts they plan to run in.

By 9:30 p.m. last night, the map was made public, putting into motion the last actions before the General Assembly votes on it. The latest version of the map isn’t that much different than the one we saw Saturday, with the second Latino district.

The new 6th District shows Newman with a little more of her current territory, about 41 percent, compared to 23 percent of Casten’s, according to Frank Calabrese, who has testified on the maps and studied the 6th District. Newman’s portion mainly covers southwest Cook County, and Casten’s portion is in south DuPage County. The latest boundaries also pit Republican Reps. Adam Kinzinger and Darin LaHood against each other in a primary, and Reps. Mary Miller and Mike Bost facing each other, too.

Democrats quietly defended the map last night, while saying it’s preposterous that a party controlling all levers of the process would sacrifice one of their own by putting two Dems in a primary. They say it shows how fair the map is — and they hope the courts agree.

STILL UP IN THE AIR: Lawmakers still must tackle redistricting for judicial subcircuit districts. That may not be done until January.

Other Veto Session News
HB 3666 Energy Package Trailer Bill passed the Senate by a vote of 43-16-0. This bill provides that the Illinois Power Agency must require that any grant or rebate applicant comply with the requirements of the Prevailing Wage Act (rather than may not award rebates or grants to an organization or company that does not pay the prevailing wage) for any installation of a charging station for which it seeks a rebate or grant. Amends the Illinois Enterprise Zone Act. Provides that records made by each contractor and subcontractor who is engaged in and executing a High Impact Business Construction jobs project must include information concerning worker’s race and ethnicity and gender. Amends the Public Utilities Act. Removes a provision that exempts specified wind energy and solar energy suppliers from submitting an annual report on all procurement goals and actual spending for female-owned, minority-owned, veteran-owned, and small business enterprises in the previous calendar year. Amends the Energy Assistance Act. Resolves a conflict in Public Acts 102-16 and 102-176 regarding the starting date for the assessment of a monthly Energy Assistance Charge.

SB 217 Utility Sunset Extension of prohibition on taxing electric generating facilities by home rule communities passed the House Revenue Committee by a vote of 12-0-0. This bill provides that a home rule preemption concerning taxes or fees related to electricity is repealed on January 1, 2023 (currently, January 1, 2022). Amends the Property Tax Code. Provides that property that is owned or leased (currently, owned) by a non-profit trust fund and used exclusively for the purposes of educating and training individuals for occupational, trade, and technical careers and is certified by the United States Department of Labor as registered with the Office of Apprenticeship is exempt from taxation under the Code. Provides that, after filing a petition to obtain a tax deed, the owner of a certificate of purchase must file with the clerk of the circuit court (currently, the county clerk) the names and addresses of persons who are entitled to service of notice. Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that “redevelopment project costs” include costs payable to businesses located within the redevelopment area that have experienced business interruption or other adverse conditions directly or indirectly attributable to the COVID-19 public health emergency. Amends the Corporate Fiduciary Act to create the Special Purpose Trust Company Authority and Organization Article. Provides that a corporation that has been or shall be incorporated under the general corporation laws of the State for the special purpose of providing fiduciary custodial services or providing other like or related services as specified by rule may be appointed to act as a fiduciary with respect to such services and shall be designated a special purpose trust company. Provides that the Department of Financial and Professional Regulation shall adopt rules for the administration of the Article, and that specified Articles of the Corporate Fiduciary Act shall apply to a special purpose trust company as if the special purpose trust company were a trust company. Amends the Illinois Banking Act. In provisions concerning conversion and merger with trust companies, provides that a special purpose trust company may merge with a State bank or convert to a State bank as if the special purpose trust company were a trust company. Provides that the Department shall have the authority to adopt rules, opinions, or interpretive letters regarding the provision of custodial services for digital assets by banks, savings banks, credit unions, and corporate fiduciaries authorized under the Certificate of Authority and Organization Article or Special Purpose Trust Company Authority and Organization Article of the Corporate Fiduciary Act.

Amendments to Watch:
HB 1769 (SFA 01) Electric Vehicle Incentives was filed. This bill establishes the “reimagining Electric Vehicles in Illinois Act.” Provides incentives to Electric Vehicle manufacturers, their suppliers, and electric vehicle power supply manufacturers. This bill was pulled from committee before consideration and will likely see further amendments.

Biden hails ‘historic’ deal, urges support
President Biden on Thursday defended his social spending framework while attempting to sell the public on a pared-back economic agenda, even as a number of congressional Democrats appear uncertain about support for his plan.

Biden, in a speech from the East Room after meeting with House Democrats, hailed what was included in the newly unveiled $1.75 trillion social spending and climate plan, calling the slimmed-down framework a compromise that reflected the realities of democracy.

“No one got everything they wanted, including me, but that’s what compromise is, that’s consensus, and that’s what I ran on. I’ve long said compromise and consensus are the only way to get big things done in a democracy, important things done for the country,” Biden said during remarks at the White House.

“I know it’s hard. I know how deeply people feel about the things that they fight for. But this framework includes historic investments in our nation and in our people,” he added.

Shortly after his remarks, former President Obama released a statement calling the framework “a giant leap forward,” acknowledging it “doesn’t contain everything that the President proposed and that some had hoped” but “represents the best chance we’ve had in years to build on the progress we made during my administration and address some of the most urgent challenges of our time.”

Biden framed passage of the new plan as a matter of critical importance to ensure the United States does not fall behind other developed nations on education, infrastructure or economic productivity. But he stopped short of laying out a timeline or calling on Congress to pass the reconciliation bill or a bipartisan infrastructure bill immediately.

He argued investments in health care, childcare and family care would be a boon to working Americans worried about caring for their parents and children. And he hailed investments in electric vehicle credits and clean energy as potentially transformative in the fight against climate change.

“These are not about left versus right or moderate versus progressive or anything else that pits Americans against one another. This is about competitiveness versus complacency,” he said. “It’s about leading the world or letting the world pass us by.”

He argued that the framework will create millions of jobs and grow the economy, and that it’s fully paid for and will over time reduce the deficit, citing economists.

“For much too long, working people of this nation and the middle class in this country have been dealt out of the American deal. It’s time to deal them back in,” he said. “I ran for president saying it was time to reduce the burden on the middle class … that’s why I wrote these bills in the first place and took them to the people.”

The president said he will have more to say on the framework following his meetings in Europe over the next week. He is expected to leave Thursday afternoon after the remarks for his trip to Europe to attend the Group of 20 summit and an international climate conference.

Build Back Better Framework – Revised
The Build Back Better Act will create millions of good-paying jobs, enable more Americans to join and remain in the labor force, spur long-term growth, reduce price pressures and set the United States on course to meet its clean energy ambitions.

Investments in Children, Families and Caregiving that Grow the Economy’s Capacity
• Universal Preschool for all 3- and 4-year Olds: Expand access to free high-quality preschool
for more than 6 million children. This is a long-term program, with funding for six years.
• Affordable High Quality Child Care: Limit childcare costs for families to no more than 7% of
income, for families earning up to 250% of state median income. It enables states to expand
access to about 20 million children. Parents must be working, seeking work, in training or taking
care of a serious health issue. This is a long-term program, with funding for six years.
• Affordable, High-Quality Care for Hundreds of Thousands of Older Americans and People
with Disabilities in Their Homes and Communities: Strengthening an existing program
through Medicaid and ending the existing backlog and improving working conditions for home
care workers
• Expanded Child Tax Credit: Extend for one year the current expanded Child Tax Credit for
more than 35 million American households, with monthly payments for households earning up to
$150,000 per year. Make refundability of the Child Tax Credit permanent.

Investments in Clean Energy and Combatting Climate Change
• Clean Energy Tax Credits ($320 billion): Ten-year expanded tax credits for utility-scale and
residential clean energy, transmission and storage, clean passenger and commercial vehicles, and
clean energy manufacturing.
• Resilience Investments ($105 billion): Investments and incentives to address extreme weather
(wildfires, droughts, and hurricanes, including in forestry, wetlands, and agriculture), legacy
pollution in communities, and a Civilian Climate Corps.
• Investments and Incentives for Clean Energy Technology, Manufacturing, and Supply
Chains ($110 billion): Targeted incentives to spur new domestic supply chains and
technologies, like solar, batteries, and advanced materials, while boosting the competitiveness of
existing industries, like steel, cement, and aluminum.
• Clean Energy procurement ($20 billion): Provide incentives for government to be purchaser of
next gen technologies, including long-duration storage, small modular reactors, and clean
construction materials.

Affordable Care for Millions of Hardworking Americans
• Affordable Care Act Premium Tax Credits: Extend the expanded Affordable Care Act
premium tax credits through 2025. Experts predict that more than 3 million people who would
otherwise be uninsured will gain health insurance. Also make Affordable Care Act premium tax
credits available through 2025 to 4 million uninsured people in uncovered states.
• Allow Medicare to cover the cost of hearing. Establish a hearing benefit in Medicare, a crucial
benefit to our seniors for a reasonable cost.

Bringing Down Costs, Reducing Inflationary Pressures, and Strengthening the Middle Class
• Housing: $150 billion investment in housing affordability and reducing price pressures,
including in rural areas. Funds go towards building more than 1 million new affordable rentals
and single-family homes, rental and down payment assistance, and public housing.
• Education Beyond High School and Workforce Development: Reduce costs and expand
access to education beyond high school by raising the maximum Pell grant, providing support to
Historically Black Colleges & Universities (“HBCUs”), Hispanic Serving Institutions (HSIs),
Minority Serving Institutions (“MSIs”), and Tribal Colleges and Universities (“TCUs”), and
investing in workforce development, including community college workforce programs, sector based training, and apprenticeships.
• Earned Income Tax Credit for 17 Million Low-Wage Workers: Extend for one year the
current expanded Earned Income Tax Credit for childless workers.
• Equity and Other Investments: Other targeted investments including maternal health,
community violence initiatives, Native communities, disadvantaged farmers, nutrition, pandemic
preparedness, supply chain resilience, and other areas.

Improve Our Immigration System Consistent with the Senate’s Reconciliation Rules.

Policy                                                                                      $ billion
Child Care and Preschool                                                      400
Home Care                                                                              150
Child Tax & Earned Income Tax Credits                               200
Clean Energy and Climate Investments                                 555
ACA Credits, Including in Uncovered States                        130
Medicare Hearing                                                                   35
Housing                                                                                  150
Higher Ed and Workforce                                                      40
Equity & Other Investments                                                   90
Total                                                                                        1750
Immigration                                                                            100

Offsets: Ask Largest Corporations and Highest Income Americans to Pay Fair Share and Reduce
Cost of Prescription Drugs

The plan is more than fully paid for by asking the wealthiest Americans and most profitable corporations to pay their fair share. It does not raise taxes on small business and anyone making less than $400,000 per year. It will also generate economic growth that will increase tax revenue and contribute to deficit reduction.

Stop Profitable Corporations from Paying Zero in Tax and Stop Rewarding Corporations That
Buyback Stock Rather than Invest in the Company
• 15% Corporate Minimum Tax on Large Corporations
• 1% Surcharge on Corporate Stock Buybacks

Stop Rewarding Corporations for Shipping Jobs and Profits Overseas
• Global Minimum Tax: Consistent with OECD and with appropriate effective date for 15%,
• Penalty Rate for Foreign Corporations Based in Non-Compliant Countries (i.e. Base Erosion and
Anti-Abuse Tax)

Ask Highest Income Americans to Pay Their Fair Share
• New Surtax on Multi-Millionaires and Billionaires
• Close Medicare Self-Employment Tax Loophole by Strengthening the Net Investment Income

Tax for Those Making Over $400,000
• Continue Limitation on Excess Business Losses
Tax Compliance
• Invest in IRS Enforcement.

Repeal of Trump Administration Rebate Rule, Which Would Have Increased Seniors’ Drug

Offsets – Estimates, Subject to Confirmation                                                $ billion
15% Corporate Minimum Tax on Large Corporations                                  325
Stock Buybacks Tax                                                                                       125
Corporate International Reform to Stop Rewarding Companies
That Ship Jobs and Profits Overseas                                                              350
AGI Surcharge on the Top 0.02%                                                                  230
Close Medicare Tax Loophole for Wealthy                                                   250
Limit Business Losses for the Wealthy                                                          170
IRS Investments to Close the Tax Gap                                                          400
Prescription Drugs: Repeal Rebate Rule                                                        145
Up to a Total of:                                                                                             1995

What’s in and what’s out of the Biden framework

Expansion of health care coverage

The bill would reduce premiums for over 9 million Americans by an average of $600 per person annually, a senior administration official said.

It expands coverage to the poor by offering four years of subsidized private health insurance on the Affordable Care Act (ACA) exchanges for people with lower incomes living in states that did not expand Medicaid under the health care law.

It does so by providing free premiums for 4 million people in the “coverage gap,” meaning they don’t earn enough to qualify for ACA subsidies but, since they live in a no expansion state, also make too much to qualify for Medicaid.

The proposal would also expand Medicare coverage to include hearing benefits for seniors.

$150 billion for affordable housing

The framework includes $150 billion in investments for affordable housing.

Earned income tax credit, child tax credit extended for one year

Democrats and the White House had hoped to make the child tax credit permanent, but instead the framework includes an extension through 2022. The program provides $300 per month per child under 6 and $250 per month per child ages 6 to 17.

The earned income tax credit targets roughly 17 million low-wage workers, providing up to $1,100 in aid.

HBCU and Pell Grant funding

The framework increases the maximum Pell Grant by $550 for more than 5 million students enrolled in public and private colleges and expands access for certain undocumented immigrants known as “Dreamers.”

It also includes new funding for infrastructure and financial aid to low-income students in historically Black colleges and universities as well as tribal colleges and universities and minority-serving institutions.

$100 billion for immigration

The framework includes $100 billion to reduce immigration backlogs, to expand legal representation and improve the asylum and border processing system. But it would not overhaul the system or provide a path to citizenship for undocumented communities after a series of negative rulings by the Senate parliamentarian.

Democrats still need to get the parliamentarian to sign off on immigration language, with Sen. Dick Durbin (D-Ill.), the Judiciary Committee chairman, telling reporters Thursday that they were getting information from the Congressional Budget Office and hoped to pitch it to the Senate referee this week.

Clean energy tax credits

The framework provides $320 billion for clean energy tax credits to apply to transmission, storage, manufacturing, residential homes, passenger vehicles and commercial vehicles.

The framework overall includes $500 billion in climate provisions. That involves $105 billion for environmental resilience to address the impacts of extreme weather events and provide for a Civilian Climate Corps and $130 billion for renewable energy development and procurement for the federal government to be the primary buyer of next-generation renewable technologies.

Taxes on corporations, IRS enforcement

The framework says that the spending and tax cuts in the package will be fully financed, largely through tax increases focused on high-income households and corporations.

It would include a 15 percent minimum tax for corporations, a 1 percent surcharge on stock buybacks, and international tax changes that are in line with an agreement reached by more than 100 countries earlier this month. It would also include a surtax on the incomes of multimillionaires and billionaires and investments in IRS enforcement.

In total, the administration estimates that its proposed offsets could raise as much as about $2 trillion over 10 years. This includes both tax increases and the repeal of a rule related to prescription drugs.

Free preschool for 3- and 4-year-olds and childcare

The framework includes $400 billion to provide free preschool for all 3- and 4-year-olds, which the White House says includes 6 million children, as well as funds for affordable childcare.

The funding provided is enough for six years. It would limit childcare costs for families to no more than 7 percent of their income for families earning up to 250 percent of state median income. To get the funding, parents must be working, seeking work, in training or have a serious health issue.


Drug pricing

The framework does not allow Medicare to negotiate lower prescription drug prices, leaving out a major Democratic priority.

A senior administration official told reporters there were not enough votes among Democrats to pass the policy.

Sen. Kyrsten Sinema (D-Ariz.) reached a deal with the White House on a prescription drug plan, but it is currently not in the framework amid progressive skepticism, a source confirmed to The Hill.

Medicare for dental and vision

In a blow to progressives, the framework doesn’t expand Medicare to cover dental or vision.

Biden acknowledged last week that using the spending bill to expand Medicare to cover hearing, vision and dental was a “reach” given pushback from Sen. Joe Manchin (D-W.Va.) and Sinema.

But Democrats were working until Wednesday to try to figure out a way to get a voucher for dental into the bill, which was meant to be a temporary fix until the party could get the long-term benefit off the ground. A House bill had proposed phasing in the dental benefit in 2028.

Billionaire tax

Democrats dropped a “billionaire tax” pitched by Senate Finance Committee Chairman Ron Wyden (D-Ore.) and Sen. Elizabeth Warren (D-Mass.) that would have targeted unrealized capital gains.

The idea was floated this week by the two progressive Democrats as the party scrambled to figure out a way to pay for the deal and lock in a framework before Biden’s trip. The proposal would have taxed people with $1 billion in assets or $100 million in income for three consecutive years.

But it faced pushback from Manchin and other Democratic senators, including Sen. Mark Warner (D-Va.), were noncommittal as they waited to see the details.

Paid family leave

Paid family leave, which was intended to provide funding for parental and medical leave, was not included in the framework in a blow to progressives.

The president had pushed for 12 weeks of paid family leave but said last week his goal had been trimmed to four weeks. It was fully stripped from the package as a concession made to Manchin, though advocates are expected to continue lobbying him.

Clean Electricity Performance Program

The Clean Electricity Performance Program, which would provide financial incentives for electric utilities to transition away from fossil fuels, was also not included in the framework.

It was seen as the best way to reduce U.S. emissions but was opposed by Manchin.

Democratic climate hawks in the Senate, like Wyden, have recently said there are alternate means to achieve the program’s aims even if it is dropped from the package.

Manchin, Sinema sidestep saying if they support Biden framework
Biden spending framework leaves out Medicare negotiating drug prices
Free community college

A progressive plan to include free community college was dropped out of the framework amid Democratic divisions.

Democrats had hoped to provide two years of free community college with Biden saying in a CNN town hall last week that he faced opposition from Manchin and “one other person.”

Pelosi vows to bring infrastructure to vote on Thursday
Speaker Nancy Pelosi (D-Calif.) told Democrats she will bring a Senate-passed bipartisan infrastructure bill to the floor later Thursday, rolling the dice with progressives who are vowing to vote down the roads-and-bridges package unless a bigger social spending package moves with it.

Pelosi “said she’s going to hold the vote open until we get a majority,” House Budget Committee Chairman John Yarmuth (D-Ky.), a member of Pelosi’s leadership team, told The Hill after Democrats’ meeting with President Biden in the Capitol.

Liberals defy Pelosi, say they’ll block infrastructure bill
Liberals on Thursday vowed to block a popular infrastructure bill — a central piece of President Biden’s domestic agenda — just hours after the president urged their support and Speaker Nancy Pelosi (D-Calif.) announced plans to bring the bipartisan proposal to the House floor for a vote the same day.

The move by dozens of members in the Congressional Progressive Caucus was hardly a departure of tactics: Rep. Pramila Jayapal (D-Wash.), who chairs the group, has said for months that liberals would oppose the infrastructure bill until there was a concrete agreement with Democratic centrists on a larger social spending package.

Still, their decision to hold that line constitutes a remarkable escalation of the high-stakes power struggle between Pelosi and the progressive members of her own caucus, who said they simply can’t back the infrastructure bill without greater assurances that a larger social spending bill will contain their priorities.

Federal relief programs for small businesses are slowly coming to an end, and with only a few months left in the year, we’ve put together a list of resources that may have already expired or are about to expire.

What’s still available:

SBA’s Economic Injury Disaster Loans
The Economic Injury Disaster Loan (EIDL) program is still accepting new applications for COVID-19 Economic Injury Disaster Loans. EIDLs are low interest loans of up to $2 million that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses. If you have previously applied and not heard a decision, do not reapply.
Read more

SBA’s 7(a) Loan Program
The 7(a) loan program is the SBA’s primary initiative for providing financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary depending on the type of loan you may choose to pursue to fit your small business needs. While the SBA was forgiving up to six months of principal and interest for new 7(a) loans, that program expired at the end of September.
Read more

Targeted EIDL Advance Grant Programs
As the SBA agency works to provide further economic relief for the smallest and hardest hit businesses across the United States, the Targeted EIDL Advance program and the Supplemental Targeted Advance continue to provide additional relief to eligible business owners located in underserved communities and who have been hard-hit by the COVID-19 pandemic.
Read more

Paycheck Protection Program Loan Forgiveness
The SBA launched a Payment Protection Program (PPP) Direct Forgiveness Portal to help streamline the forgiveness process for loans of $150,000 or under, and allow small business owners to apply directly through the SBA. Learn about the Direct Forgiveness Portal here.
Additionally, the SBA implemented the Revenue Reduction Score to help streamline the review of revenue reduction documentation.

Employee Retention Credit
The federal government created the Employee Retention Credit (ERC) in response to the detrimental effects of the COVID-19 pandemic on small businesses. The ERC offers tax credits to encourage more businesses to retain employees during the pandemic, as a temporary measure.
Read more

Stay well,

Mike Paone
Vice President – Government Affairs
Joliet Region Chamber of Commerce & Industry
815.727.5371 main
815.727.5373 direct