With some of the public policy themes and challenges from 2021 carrying over into the new year – Senate passage of the Build Back Better Act, Budget resolution, and disruptive relations between and within parties – Government Relations expert Susan Olson details the dynamics in a clear play-by-play.

2022 Policy & Politics Outlook

Natixis’ government relations expert details what to expect in 2022, including the ever-important mid-term elections.

Highlights include:

  • 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.
This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. The views and opinions expressed may change based on market and other conditions. Natixis Investment Managers does not provide tax or legal advice. Please consult with a tax or legal professional prior to making any investment decisions. Natixis Distribution, LLC is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.