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From Your IIABA National Director
From Your IIABA National Director How the Big "I" is Responding to the Election
As you can imagine, our Federal Government Relations team at Big "I" have had a busy couple of months. With party control apparently transitioning in the White House, we must make sure our strategy is in line with the changes that a Biden administration may make as priorities. Let's take a look at this update from Wyatt Stewart, Big “I" assistant vice president of federal government affairs.
Election Results Will Shape Agenda
What impact will the election result have on the big issues facing independent agents? In the short term, negotiations on a COVID-19 relief package will continue. And with control of the Senate still undecided but leaning towards Republicans, this relief will be smaller than Democrats had hoped for under the “blue wave" scenario.
The two parties will have to begin a serious negotiation to find some sort of compromise and it is too early to tell whether a deal could be struck in the lame duck session of Congress – where some lawmakers return for this session who will not be in the next Congress – or if it will have to wait until 2021, if at all.
In the U.S. House of Representatives, Democrats will maintain control, but saw their majority cut in half and will now have to govern with approximately ten seats separating the two parties.
Control of the U.S. Senate will be decided by two runoffs in Georgia on January 5, 2021. Currently Republicans lead 50-48. If Republicans win one or both of these runoffs, they will maintain control of the Senate, whereas if Democrats win both runoffs, Democrats will hold both chambers of Congress and the White House. Looking at this from a non-partisan point of view, maintaining divided control of Congress is in the best interest of independent agents and small business.
Although a COVID-19 relief deal remains possible, gridlock is a distinct possibility when it comes to some of the candidates' biggest campaign issues. A Republican-controlled Senate would keep a President Biden and Senate Democrats from getting rid of the legislative filibuster, which means that Biden and Democrats would find it nearly impossible to enact some of the policies that would be most harmful to small businesses, such as independent insurance agencies.
The employer-sponsored health care system looks to be safe for now with Senate Republicans able to block any type of Medicare-for-All or public option type plan. With a divided government, more modest changes to health care policy, such as ending surprise billing, remains a distinct possibility.
Additionally, a Republican-led Senate would be able to largely protect the Trump tax cuts from any Democratic repeal efforts, even if Biden were to take the Presidency. With repeal potentially off the table and the 20% small business tax deduction scheduled to expire in 2025, future elections will play a crucial role in eventually deciding its fate. Again, all of this may depend on those two crucial Senate seats in Georgia to be decided on January 5, 2021.
Given these factors, the Big “I” and its government affairs team have decided to raise money for Republican Senators David Perdue and Kelly Loeffler in Georgia, as they fight to retain their seats and maintain divided control of Congress. A joint fundraising committee (money split equally between the campaigns) exists to support their candidacies, and we are encouraging our agent leaders to support it. All contributions are valuable and appreciated. To contribute, visit https://bit.ly/2Ki85Rz OR Mail a check (personal, LLC or Partnership) payable to:
Senate Georgia Battleground Fund c/o Nathan Riedel 20 F Street, NW #610 Washington, DC 20001
In other Federal contests, InsurPac National disbursed $1.95 million in 254 races this election cycle and had a 93% victory rate in the races that have been called. Thank you again to all those that contributed, volunteered and voted. u
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