2022 Policy & Politics Outlook
Natixis’ government relations expert details what to expect in 2022, including the ever-important mid-term elections.
- The evenly split Senate will continue their attempt to pass the Build Back Better Act, with Democrat Joe Manchin of West Virginia the possibly dissenting vote. Compelling social and climate programs are at risk in this historic bill, as is the Democrats’ reputation as a party capable of governing.
- In 2021, Congress passed two continuing resolutions to keep the government open until early 2022. They will need to settle their differences and pass a budget in February. The Democrats’ success or failure could impact their mid-term election results.
- On an encouraging front, we could see bipartisanship in 2022 on retirement legislation with several live bills aimed at modernizing and enhancing retirement legislation. Once Build Back Better and budget reconciliation are off the to-do list, we may see both parties collaborating to get a victory before the midterm elections.
- Another positive note is expected rulemaking from the SEC around Environmental, Social and Governance (ESG) disclosures on how investment managers use these factors in decision making. Along with other initiatives, this rulemaking should make it less ominous for fiduciaries to use ESG factors in their retirement plan line-ups.
- The always consequential midterm elections will be referendums on multiple fronts -- President Biden and his party’s performance over the past two years, and Donald Trump’s power and influence over the Republican party.