There is so much coverage around how difficult it will be to get legislation (outside of budget reconciliation) across the finish line in the 119th Congress, that it would appear nothing could move through the House or Senate for the next two years. Without question, it will be a tough legislative environment that will require somewhat of an awkward dance among the House, Senate, and White House and a sophisticated strategy from external stakeholders. That being said, everyone in Congress and the White House needs victories and compromise will happen – although, at times, it may not seem like it.  A mix of legislation moving with bipartisan support and legislation will be stalled because negotiations break down.  But there will be legislation that can and does get sent to the President’s desk for signature. Here are four examples of consequential legislation that could pass now if brought to the House and Senate floor. 

(1) Reform of the De Minimis Threshold:  The United States allows direct-to-consumer imports to enter the country without duties if the products are valued at less than $800. This is well above our trading partners (i.e., Canada is $100, Mexico is $50, EU is $150, etc.) – no countries' import duties are anywhere near as high as that of the $800 threshold in the U.S.  According to Customs and Border Protection (CBP), there are 4 million de minimis shipments per day into the U.S., accounting for 92% of all cargo entering the country. Not surprisingly, many companies overseas, especially in China, are taking advantage of this high threshold. The products being imported without any duties undermine U.S. manufacturers and retailers (whose imported products sold in stores are subject to duties). There is a strong bipartisan interest in reforming this through more transparency and enforcement (with some also hoping to lower the threshold). Many bills from the last Congress focused on this issue and the Administration is likely to support reform as well.    

(2) Pharmacy Benefit Manager Reform:  Pharmacy Benefit Managers (PBMs) are effectively the center of the relationship between pharmacies, pharmaceutical companies, and insurance companies. PMBs have increasingly faced scrutiny due to an overall lack of transparency, the impact on the pricing of prescription drugs, and the impact on pharmacies, which have been closing at significant rates according to reports. Despite a strong effort by PBMs to counter concerns, the reform movement has gained significant momentum (with many committees playing a part in the effort).  A portion of a reform package was included in the CR at the end of the last Congress before all additional provisions were removed.  This will re-emerge again and get strong support in the House and Senate – both of which have expressed a strong interest in moving legislation (and states are doing the same).  

(3) Retroactive Extension of the Generalized System of Preferences: The Generalized System of Preferences (GSP) is a program that would allow products manufactured by developing countries (outlined in statute) to be imported into the United States duty-free – providing a strong incentive for companies to manufacture in countries that are both developing and allied with the United States. When that program surprisingly expired in 2020 (without Congress reauthorizing it), the companies that moved to those covered countries were suddenly paying tariffs on imports into the United States (and still are). According to the Coalition of GSP, Congress not reauthorizing the program cost U.S. companies $2.6 billion in tariffs through April of 2023. GSP, however, is one of the most effective policies to incentivize U.S. companies to diversify their manufacturing footprint beyond China – it is effectively the carrot that should be paired with the stick (existing 301 tariffs) to provide meaningful benefits to U.S. companies.  There is a growing business voice strongly urging Congress for a retroactive extension of GSP, which would restart the program and allow companies to recapture the tariff revenue they were forced to pay when the program expired. Congress is increasingly interested in this issue, As long as legislation would not add a bunch of new requirements on covered countries, there would be strong bipartisan support for its extension.       

(4) Wildfire Package According to the National Interagency Fire Center, nearly 8 million acres of forest were burned last year through September.  This included over 38,000 wildfires.  For years, the House and Senate have been working on legislation ranging from forest management to workforce across federal agencies tasked with responding to wildfires (and everything in between).  It is an area where climate advocates, the outdoor recreation industry, forestry, rural communities, and the government are largely aligned. Hundreds of bills have been introduced and many have moved through various stages of the legislative process, but because of other priorities or timing (or both), the efforts have been paired down and some have been stalled altogether. As recent wildfires have proven, more resources and stronger policies are needed. Policymakers – including those not located in the West – understand this reality and would support a meaningful wildfire package.