Votes in a number of races are still being counted, but it's already clear that the next Congress will present both challenges and opportunities for our profession. Given the slim majorities in each chamber, governing effectively on a consistent basis will likely be difficult for both parties. Moreover, the new Congress will see a record influx of new members.
The Financial Services Institute will be leveraging our extensive experience in educating incoming lawmakers on the issues that matter to our members and their clients – including investor protection and ensuring access to affordable, professional financial advice – to build a productive dialogue with these freshman representatives. We will also work to expand on the constructive relationships we have developed with members of both parties to continue advancing our mission of advocacy.
Based on the shifting political landscape, here is a brief overview of the key issues we will be monitoring and engaging on in the coming months, including both specific legislation and changes in vital committees.
(More: Here's how a Democratic House will affect financial advisers)
Appropriations funding
Finalizing appropriations bills to fund the government will be among the outgoing Congress' highest remaining priorities this year. With new leadership coming for the House, however, it is unclear whether lawmakers will be able to pass the remaining spending bills in 2018. Potential outcomes if these bills are not passed could include a short-term funding resolution or even a government shutdown.
(More: Great change or gridlock? Under a bipartisan Congress, advisers will see change)
House Financial Services and Senate Banking Committees
The new Democratic majority in the House positions one of President Donald J. Trump's fiercest critics, Rep. Maxine Waters, of California, to chair the Financial Services Committee and will likely trigger greater oversight of the Trump administration. In particular, efforts to roll back Dodd-Frank and curb the Consumer Financial Protection Bureau are likely to come under increased scrutiny.
Representatives on deck to chair key subcommittees next year are Reps. William Lacy Clay and Emanuel Cleaver, both of Missouri; Gwen Moore, of Wisconsin; Al Green, of Texas; and Ed Perlmutter, of Colorado, although it is possible that Rep. Waters and the new House leadership could shuffle various oversight duties among existing committees or create new ones.
The Financial Services Committee also includes several lawmakers who have adopted pro-business positions, including Reps. Jim Himes, of Connecticut, and Josh Gottheimer, of New Jersey. In addition, we expect the committee to include many fresh faces of newly elected representatives, including some from swing districts that are likely to be highly competitive in 2020.
It is unclear who will serve as the ranking Republican on the committee, with current chairman Jeb Hensarling, of Texas, retiring. Several contenders are vying for the position. Rep. Patrick McHenry, of North Carolina, is considered the front-runner.
In the Senate, current Banking Committee chairman Mike Crapo, of Idaho, may move to serve as chairman for another committee. In that scenario, Sen. Pat Toomey, of Pennsylvania, would become the next Banking Committee chairman. Sen. Sherrod Brown, of Ohio, is expected to continue in his current role as ranking member.
House Ways and Means and Senate Finance Committees
The election results will significantly affect the tax committees in both houses of Congress, with substantial potential implications for Financial Services Institute members and other advisers across the country. One of the key advocates for moving forward with retirement reform legislation in the next Congress, Rep. Richard Neal, of Massachusetts, is expected to serve as chairman of the House Ways and Means Committee. Current chairman Kevin Brady, of Texas, will likely serve as ranking member.
With current chairman Orrin Hatch, of Utah, retiring at the end of this Congress, the Senate Finance Committee leadership will also see changes. Either Sen. Chuck Grassley, of Iowa, or Mr. Crapo are expected to head up the Finance Committee, while Sen. Ron Wyden, of Oregon, will likely continue as ranking member.
FSI has strong relationships with many members of these key committees. Just as important, though, is that we believe our long and successful track record of providing helpful guidance to new members of Congress in both parties in order to develop productive relationships from Day One of their terms will serve us and our members well as we welcome a significant number of first-time lawmakers to Washington. We also stand ready to work with the large numbers of new state legislators that will be commencing their terms in January.
For our members and other independent advisers and firms across the country, we are committed to ensuring that the positive, productive direction of FSI's advocacy mission will continue through this period of political change.
We appreciate the continued support of our members, and we look forward to continuing to advance the interests of the independent financial services industry in Washington and across the country in the years ahead.
(More: Regulatory outlook for 2019 is shaping up to be more positive)
Dale Brown is president and CEO of the Financial Services Institute.
