The House and Senate will reconvene Monday at 2 p.m. and 3 p.m., respectively. 

What to Watch

Both chambers return to Washington after an eventful week away from Capitol Hill. 

On the international front, the Russian invasion of Ukraine is expected to consume a significant amount of attention and potentially floor time. Lawmakers from both parties have vocally an interest in providing additional assistance to Ukraine through arms sales or additional sanctions on Russia. 

President Biden will discuss the situation during his second State of the Union address, which he will deliver to a joint session of Congress on Tuesday. On the domestic front, President Biden is expected to shift tone on the COVID-19 pandemic, moving towards not treating it as a crisis. He is also expected to urge congressional movement on his Build Back Better agenda and the American competitiveness packages that have passed both chambers. Senior White House Adviser Cedric Richmond previewed President Biden’s speech late last week, saying he thinks the president will “lay out his vision for the next year, but also talk about the challenges that we met during the first year.” Richmond also suggested President Biden will discuss how the administration is addressing inflation and “those things that are affecting families right now.” 

Negotiations over the competitiveness package have stalled, however. Although the House followed the Senate by passing its version, the America COMPETES Act, in mid-February, no movement has occurred since then. The two chambers must now conference the two bills, but the decision of how to do that—whether through a formal or informal process—remains undecided. 

Congressional attention will be divided further now that President Biden has tapped Ketanji Brown Jackson to serve on the U.S. Supreme Court. While the Senate Judiciary Committee will be responsible for most of the heavy lifting early on, the full Senate will soon have to turn its attention to the nomination process, consuming valuable floor time.  

All this could run into a literal roadblock. Inspired by the “Freedom Convoy” protests in Ottawa, Canada, a group of truckers is expected to launch a similar protest this week in Washington to coincide with the State of the Union demanding an end to the COVID-19 pandemic state of emergency and lockdown measures. In the words of one organizer, the convoy could be like “a giant boa constrictor … that basically squeezes you, chokes you and it swallows you.” 

On the Floor

Neither the House nor the Senate are scheduled to vote on any tax or financial services legislation. 

In Committee

House Financial Services Committee

On Wednesday, the full committee will hold a hearing entitled “Monetary Policy and the State of the Economy,” during which the following witnesses will testify: 

• Jerome Powell (chair, Board of Governors of the Federal Reserve System)

Powell is likely to face questions about how the Federal Reserve can use its authorities to combat rising inflation, including interest rate hikes, which are expected to soon be increased. Other topics that have arisen before could again be discussed, such as the Federal Reserve’s plans associated with a central bank digital currency and how it is supporting diversity and inclusion. A potentially new issue Powell might address is the global effects of the Russian invasion of Ukraine, including the economic impact of sanctions on global supply chains. 

Senate Banking Committee

On Thursday, the full committee will hold a hearing entitled “The Semiannual Monetary Policy Report to Congress,” during which the following witnesses will testify: 

• Jerome Powell (chair, Board of Governors of the Federal Reserve System) 

Testifying one day after appearing before the House Financial Services Committee, Powell is expected to face similar questions from senators. However, because President Biden will have delivered the State of the Union address in between the two meetings, the president’s comments could affect the discussion. 

House Ways and Means Committee

On Wednesday, the full committee will hold a hearing entitled “Substance Use, Suicide Risk and the American Health System,” during which the following witnesses will testify: 

• Jonathan Metzl (professor of sociology and psychiatry and director of the Department of Medicine, Health, and Society, at Vanderbilt University)
• Edwin Chapman (private practice physician specializing in addiction medicine)
• Regina LaBelle (director of the Addiction and Public Policy Initiative at the O’Neill Institute)
• Marielle Reataza (executive director of the National Asian Pacific American Families Against Substance Abuse)
• Jessica Hulsey (founder & CEO at the Addiction Policy Forum)

So-called “deaths of despair,” which generally encompass deaths by suicide and overdose, are rising in the U.S. among teens, young adults and seniors despite declining for the overall population. The committee could explore potential causes for the increase among these groups, such as increased isolation during COVID-19 lockdown measures. 

Senate Finance Committee

On Tuesday, the full committee will hold a confirmation hearing to consider the following nominees: 

• Robert Michael Gordon (to be an assistant secretary of Health and Human Services)
• January Contreras (to be assistant secretary for Family Support, Department of Health and Human Services) 
• Rebecca Jones Gaston (to be commissioner on Children, Youth and Families, Department of Health and Human Services) 

In case you missed it…

• Sen. Elizabeth Warren (D-MA), a Senate Finance Committee member, and Rep. Pramila Jayapal (D-WA) sent a letter in February to Treasury Inspector General for Tax Administration (TIGTA) Russell George asking TIGTA to investigate the “revolving door” between the top U.S. accounting firms and the Treasury Department. 

• Reps. Tom Malinowski (D-NJ) and Katie Porter (D-CA) recently introduced legislation to provide a more generous state and local tax deduction. The Supporting Americans with Lower Taxes (SALT) Act would remove the $10,000 cap for taxpayers earning below $400,000 and raise the limit to $60,000 for those making above that threshold. For each $100,000 increase in annual earnings, the cap would fall by $10,000. 

• The Government Accountability Office (GAO) published a report on Thursday entitled “Employer-Provided Child Care Credit: Estimated Claims and Factors Limiting Wider Use.” GAO found that the employer-provided credit can save employers more in taxes than using a deduction alone and that employees can exclude some child care benefits from their taxable wages. 

Upcoming Activity

Below is a complete list of all tax and financial services events in Congress, the administration and private sector for the upcoming week. 

Congress

Tuesday, March 1

House Oversight and Reform Committee 
From Recession to Recovery: Examining the Impact of the American Rescue Plan’s State and Local Fiscal Recovery Funds 

House Small Business Committee 
Competition and the Small Business Landscape: Fair Competition and a Level Playing Field 

House Education and Labor Committee 
Improving Retirement Security and Access to Mental Health Benefits 

Wednesday, March 2

Senate Environment and Public Works Committee 
Implementation of the Infrastructure Investment and Jobs Act by the Transportation Department 

House Education and Labor Committee 
Investing in Economic Mobility: The Important Role of Hispanic Serving Institutions and Other Minority Serving Institutions 

Private Sector 

Tuesday, March 1

Heritage Foundation
2022 Index of Economic Freedom 

Wednesday, March 2

Brookings Institution
The Powell Fed: Looking Back and Looking Ahead 

Thursday, March 3

Washington Post Live
Path Forward on Cryptocurrency