On June 21, the House of Representatives passed H.R.2868, the Association Health Plans Act (AHPA). The partisan vote was 220 to 209.

The U.S. Supreme Court (SCOTUS) has taken a case, Moore v U.S., that challenges the constitutionality of taxing unrealized income (i.e., gains in the value of assets that have not been sold or otherwise taken by their owners) in the context of the one-time transition repatriation tax imposed on corporate earnings accumulated overseas. This could have profound implications for cash value life insurance. Generally, life insurance inside buildup is considered unrealized income. SCOTUS will not hear arguments on the case, or reach a decision on it, until its October term—so quite possibly there will not be a decision until the summer of 2024.

On June 21, The Senate Health, Education, Labor, and Pensions (HELP) Committee passed the PRO Act, a bill containing a slew of union-friendly provisions, including new worker classification rules that would make more workers employees rather than independent contractors.

On June 30, a Texas magistrate judge recommended that the U.S. District Court for the Northern District of Texas vacate those portions of the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) 2020 fiduciary rule sub-regulatory guidance which allows a financial advisor’s fiduciary status to turn on advice given in the context of a rollover to an individual retirement account.

A coalition of more than 150 retirement savings plan sponsors and their allies in the retirement savings community is asking both Congress and the Treasury Department for a delay in the 2024 effective date of the SECURE 2.0 rule that requires individuals earning more than $145,000/year to make their retirement plan catch-up contributions on a Roth basis.

On June 21, the Senate Health, Education, Labor, and Pensions (HELP) Committee approved and sent to the Senate floor partisan legislation to require most employers to provide up to seven paid sick days each year.

The process of funding the government—including the Department of Labor (DOL), the Department of Health and Human Services (HHS), the Treasury, and other agencies dealing with issues important to insurance and financial advisors—will be fraught this summer. Despite enactment last month of the Fiscal Responsibility Act (FRA), which set discretionary spending targets, the debate over spending levels continues to rage. And there’s no consensus in sight.

On June 1, by bipartisan votes, Congress finalized approval of a bill (H.R.3746) embodying the Biden-McCarthy debt limit/spending cuts agreement. The agreement staves off the default on U.S. debt that Treasury stated would have come on June 5 unless Congress acted.

Some Republican lawmakers, unhappy with the Fiscal Responsibility Act (FRA), are fighting back against Congressional leadership. The problem is most acute in the House, but legislation-stopping action is also on Senate (and House-Senate relations) radar scopes.

On June 14, the House was set to pass H.R.277, the REINS Act. The REINS Act (Regulations from the Executive in Need of Scrutiny) would subject every major regulation (those with an economic impact of $100 million or more) to Congressional approval before it could take effect. Nonmajor rules (those with economic impact under $100 million) would be permitted to take effect unless Congress votes to disapprove them.

On June 7, the House Ways & Means Committee unanimously approved legislation, H.R.3801, that would streamline the Affordable Care Act (ACA) required reporting. The Employer Reporting Improvement Act, sponsored by Reps. Adrian Smith (R-NE) and Mike Thompson (D-CA), cleared the committee on a 37 to 0 vote. It is now ready for House floor action.

On June 13, House Ways & Means Republicans approved the American Families and Jobs Act, consisting of three bills described as an “economic growth” package. The three bills were approved on party-line votes, with Republicans supporting and Democrats opposed. The three bills were announced on June 9 by the committee’s chairman, Rep. Jason Smith (R-MO).

On June 5, the House of Representatives approved H.R.2593, the Senior Security Act. The bill, which passed by a voice vote, tasks the Securities and Exchange Commission (SEC) with creation of a Senior Investor Task Force. The Task Force’s mission is to protect senior investors from fraud.

On June 6, the House Education & the Workforce Committee approved H.R.2868, the Association Health Plans Act (AHPA). The committee also favorably reported another health-related bill, H.R. 2813, the Self Insurance Protection Act (SIPA).

The “four corners” of Congress’ tax-writing committees (House and Senate Chairs and Ranking Members) have written to the Treasury Department to say they intend to pass new legislation to address needed clarifications and corrections to SECURE 2.0.

The chair and ranking member of the ERISA-focused Senate Health, Education, Labor and Pensions (HELP) Committee wrote to the Department of Labor (DOL) urging the agency to prioritize guidance on provisions relating to pension-linked emergency savings and promotion of employee ownership. The letter was written by HELP Chairman Sen. Bernie Sanders (I-VT) and Ranking Member Sen. Bill Cassidy (R-LA). It was sent to DOL’s Acting Secretary, Julie Su, on May 30.

On May 16, the Internal Revenue Service (IRS) announced the health savings accounts (HSA) contribution limits, as adjusted for inflation, for 2024. Also included in the announcement were inflation adjustments to minimum permissible deductibles under a high deductible health plan (HDHP), and maximum out-of-pocket costs allowable under an HDHP. The 2024 limits are:

President Biden’s nominee, Julie Su, to head the Department of Labor (DOL) is struggling. House Republicans hit her hard at an Education & the Workforce hearing on June 7, in hopes of persuading their Senate colleagues to deny her confirmation.

On April 26, the House of Representatives passed a partisan bill (H.R.2811) that would raise the debt limit “in exchange” for deep spending cuts. The bill is the GOP’s opening offer—in response to the FY 2024 Biden budget proposal—for use in what Republicans hope will be negotiations to approve spending cuts in return for their support for raising the debt limit.

The nation’s debt limit—the amount above which Treasury is precluded by statute from borrowing—could kick in as soon as June 1, according to Treasury Department projections. If it does, the U.S. could default on some of its obligations, putting at risk the full faith and credit of the United States. Economists say this would be catastrophic, resulting in substantial interest rate increases, massive jobs losses, and huge investment losses. Preventing this is at the top of the Congressional agenda this month.