The document summarizes the results of the 2014 midterm elections and analyzes their implications. Republicans gained control of the Senate and increased their House majority. This divided government outcome may yield both partisan clashes and unexpected bipartisan cooperation. Key fiscal and policy issues, such as the federal budget and cybersecurity, will be top priorities in the lame duck session and next Congress. Committee leadership and the broader tech agenda may be impacted by the change in Senate control.
3. What
This
Means
§ A
return
to
deal-‐making?
TechAmerica.org
This
year’s
midterm
results
have
shades
of
1994,
2006
and
2010
rolled
into
one.
The
aQermath
of
each
divided
government
outcome
is
beRer
known
for
parJsan
skirmishes
yet
sJll
yielded
surprising
bouts
of
producJvity,
starJng
in
the
lame
duck
session
though
the
following
PresidenJal
elecJon
two
years
later.
§ Fiscal
fights
back
in
spotlight.
Fiscal
issues
will
reclaim
center
stage,
starJng
with
the
lame
duck
session.
We
expect
Congress
to
temporarily
extend
the
ConJnuing
ResoluJon
(CR)
perhaps
with
a
full-‐year
updated
spending
bill
or
two
aRached;
renew
a
package
of
expired
tax
provisions
with
perhaps
a
few
items
made
permanent;
and
pass
a
defense
authorizaJon
bill,
possibly
with
cybersecurity-‐related
provisions
tacked
on.
§ Deadlines
drive
the
calendar.
In
2015,
the
calendar
will
once
again
be
driven
by
fiscal
deadlines.
The
Congressional
budget
process
may
be
restored
to
prevent
further
“legislaJve
cliff”
scenarios
from
occurring,
but
Republicans
have
to
carefully
weigh
2014
campaign
promises
vs
an
unfriendly
2016
electoral
map
in
deciding
how
far
they
can
push
their
favored
policies.
5. House
§ Republicans
gained
15
seats
and
lost
3
–
for
a
net
gain
of
12
seats.
§ Democrats
gained
3
seats
and
lost
15
–
for
a
net
loss
of
12
seats.
§ 12
Incumbents
lost
in
the
House
–
2
Republicans
and
10
Democrats.
TechAmerica.org
6. House
CommiOees
CommiOee
Chair
Ranking
Member
Agriculture
Appropria*ons
Armed
Services
Budget
Educa*on
&
the
Workforce
Energy
&
Commerce
Financial
Services
Foreign
Affairs
Homeland
Security
Judiciary
Natural
Resources
Oversight
&
Gov’t
Reform
Rules
Transporta*on
&
Infrastructure
Ways
&
Means
Intelligence
Michael
Conaway
(R-‐TX)
Harold
Rogers
(R-‐KY)
Mac
Thornberry
(R-‐TX)
Tom
Price
(R-‐GA)
John
Kline
(R-‐MN)
OR
Virginia
Foxx
(R-‐NC)*
Fred
Upton
(R-‐MI)
Jeb
Hensarling
(R-‐TX)
Ed
Royce
(R-‐CA)
Michael
McCaul
(R-‐TX)
Robert
GoodlaRe
(R-‐VA)
Rob
Bishop
(R-‐UT)
Jason
Chaffetz
(R-‐UT)
Pete
Sessions
(R-‐TX)
Bill
Shuster
(R-‐PA)
Paul
Ryan
(R-‐WI)
Devin
Nunes
(R-‐CA)
Collin
Peterson
(D-‐MN)
Nita
Lowey
(D-‐NY)
Adam
Smith
(D-‐WA)
Chris
Van
Hollen
(D-‐MD)
Bobby
ScoR
(D-‐VA)
Anna
Eshoo
(D-‐CA)
OR
Frank
Pallone
(D-‐NJ)**
Maxine
Waters
(D-‐CA)
Eliot
Engel
(D-‐NY)
Bennie
Thompson
(D-‐MS)
John
Conyers
(D-‐MI)
Eni
Faleomavega
(D-‐American
Samoa)
Elijah
Cummings
(D-‐MD)
Louise
Slaughter
(D-‐NY)
OR
Jim
McGovern
(D-‐MA)***
Peter
DeFazio
(D-‐OR)
Sander
Levin
(D-‐MI)
Dutch
Ruppersberger
(D-‐MD)
*Kline
is
term-‐limited
but
may
get
a
waiver
**Eshoo
and
Pallone
are
both
vying
for
the
slot
***Slaughter’s
race
was
too
close
to
call
as
of
last
night
8. Senate
CommiOees
CommiOee
Chair
Ranking
Member
Agriculture
Appropria*ons
Armed
Services
Budget
Banking
Commerce
Environment
&
Public
Works
Energy
Finance
Foreign
Rela*ons
Health,
Educa*on,
Labor
&
Pensions
Homeland
Security
&
Gov’t
Affairs
Intelligence
Judiciary
Pat
Roberts
(R-‐KS)
Thad
Cochran
(R-‐MS)
John
McCain
(R-‐AZ)
Jeff
Sessions
(R-‐AL)
Richard
Shelby
(R-‐AL)
John
Thune
(R-‐SD)
James
Inhofe
(R-‐OK)
Lisa
Murkowski
(R-‐AK)
Orrin
Hatch
(R-‐UT)
Bob
Corker
(R-‐TN)
Lamar
Alexander
(R-‐TN)
Ron
Johnson
(R-‐WI)
Richard
Burr
(R-‐NC)
Charles
Grassley
(R-‐IA)
Debbie
Stabenow
(D-‐MI)
Barbara
Mikulski
(D-‐MD)
Jack
Reed
(D-‐RI)
Bernie
Sanders
(I-‐VT)
Sherrod
Brown
(D-‐OH)
Bill
Nelson
(D-‐FL)
Barbara
Boxer
(D-‐CA)
Mary
Landrieu
(D-‐LA)**
Ron
Wyden
(D-‐OR)
Robert
Menendez
(D-‐NJ)
PaRy
Murray
(D-‐WA)
Tom
Carper
(D-‐DE)
Dianne
Feinstein
(D-‐CA)
Patrick
Leahy
(D-‐VT)
*GOP
rules
dictate
a
chair
or
ranking
member
must
step
aside
aQer
a
six-‐year
term
**
If
Landrieu
loses
re-‐elecJon,
Senator
Maria
Cantwell
(D-‐WA)
would
take
her
place
9. Elec*on
Impact
to
the
Tech
Agenda
§ Senate
Commerce
CommiOee
SubcommiOee
Chair
Mark
Pryor
(D-‐AR)
TechAmerica.org
§ Key
in
helping
to
advance
cyber
security
and
data
breach
legislaJon.
§ Strongly
commiRed
to
tech
and
telecom
issues.
§ Moderate
ally
to
Republicans
on
a
number
of
issues.
§ Energy
and
Commerce
SubcommiOee
Chair
Lee
Terry
(R-‐NE)
§ Was
working
to
advance
data
breach
and
noJficaJon
legislaJon.
§ Was
working
to
advance
patent
demand
leRer
reform.
§ New
CommiOee
Leadership
§ Senate
Commerce
CommiRee:
Chairman
Thune
/
Ranking
Member
Nelson
§ Senate
Judiciary
CommiRee:
Chairman
Grassley
§ Senate
Homeland
CommiRee:
Chairman
Ron
Johnson
§ Senate
Finance
CommiRee:
Chairman
Hatch
§ Commerce
subcommiRee
on
CommunicaJons:
?
§ Energy
and
Commerce
SubcommiRee
on
Manufacturing:
?
10. Lame
Duck
§ Appropria*ons:
The
current
CR
expires
on
December
11
and
House
and
Senate
appropriaJons
staff
have
been
working
to
reconcile
what
differences
on
spending
bills.
Given
that
there
is
sJll
no
bicameral
member-‐level
agreement
on
subcommiRee
spending
allocaJons,
it
is
likely
that
another
temporary
CR
running
through
early
2015
(February
or
March)
will
become
necessary.
A
full-‐year
bill
in
early
2015
seem
likely.
§ Internet
Tax
Freedom
Act/Marketplace
Fairness
Act.
A
clean
extension
of
the
ITFA
beyond
the
current
December
11
expiraJon
is
most
likely;
backers
will
be
seeking
a
longer
extension,
but
any
lengthy
extension
will
draw
efforts
to
tack
on
the
Marketplace
Fairness
Act
(MFA).
§ Defense
Authoriza*on/AUMF/Cybersecurity.
Defense
authorizaJon
likely
gets
done
in
the
lame
duck,
parJcularly
given
the
pending
reJrement
of
Senate
Armed
Services
Chairman
Carl
Levin
(D-‐MI).
The
DoD
authorizaJon
bill
has
passed
every
year
for
the
last
53
years,
and
there’s
almost
zero
chance
the
streak
is
broken
now.
§ Tax
Extenders:
Both
parJes
have
expressed
an
interest
in
moving
tax
extenders,
although
the
House
Republicans
and
Senate
Democrats
remain
at
odds
on
how
to
proceed.
Senate
is
most
likely
to
win,
especially
given
their
two
year
approach
and
Sen.
McConnell’s
desire
to
complete
the
bill
prior
to
the
114th
Congress.
§ Big
Ticket
Items:
With
a
new
majority
in
the
Senate,
“big
Jcket
items”
are
likely
to
be
punted
unJl
the
114th
Congress.
TechAmerica.org
11. 114th
Congress:
Historical
Perspec*ve
§ Congressional
History:
Next
year
there
may
be
similar
factors
in
play
to
2007,
the
first
year
Democrats
reclaimed
control
of
Congress
to
contend
with
the
lame
duck
Bush
AdministraJon.
§ Iraq
War
Supplemental
§ College
Cost
ReducJon
and
Access
Act
of
2007
§ FY08
AppropriaJons
Standoff
§ Energy
Independence
and
Security
Act
of
2007
§ Free
Trade
Agreements
§ President
v
Senate:
The
President’s
desire
for
addiJonal
legacy
accomplishments
combined
with
the
Republicans’
ability
to
put
legislaJon
on
his
desk
(via
budget
reconciliaJon
procedures
if
and
when
the
60-‐vote
threshold
is
unaRainable)
will
create
pressure
on
the
White
House
to
negoJate.
§ The
aQermath
of
each
divided
government
outcome
is
beRer
known
for
parJsan
skirmishes
yet
sJll
yielded
surprising
bouts
of
producJvity
(1994,
2006,
and
2010),
starJng
in
the
lame
duck
session
though
the
following
PresidenJal
elecJon
two
years
later.
§ Looming
Elec*on:
10
Senate
Democrats
up
for
elecJon
in
2016,
while
24
Republicans
face
elecJon.
Republicans
have
to
carefully
weigh
2014
campaign
promises
vs
an
unfriendly
2016
electoral
map
in
deciding
how
far
they
can
push
their
favored
policies.
TechAmerica.org
13. Patent
Reform
Mar$n
Quigley,
TechAmerica
§ Patent
reform
is
one
of
the
more
likely
opportuniJes
for
a
new
GOP-‐
controlled
Senate
to
demonstrate
that
it
can
solve
big,
complicated
policy
challenges.
§ House
Judiciary
Chairman
Bob
GoodlaRe
(R-‐VA),
Senate
Judiciary
Chairman
Chuck
Grassley
(R-‐IA),
Senator
Jon
Cornyn
(R-‐TX)
and
Senate
Democrat
Chuck
Schumer
(D-‐NY)
would
like
to
send
a
patent
reform
bill
to
the
Senate.
§ The
House
and
Senate
will
likely
have
a
more
unified
front
and
have
a
leadership
structure
in
the
Senate
that
will
be
more
moJvated
to
put
legislaJon
on
the
floor.
§ President
Obama
has
already
endorsed
the
House-‐passed
legislaJon
and
could
use
patent
reform
as
a
legacy
accomplishment.
TechAmerica.org
14. Immigra*on
Reform
Randi
Parker,
TechAmerica
§ There
conJnues
to
be
Republican
chaRer
about
sending
an
immigraJon
bill
to
the
President
before
the
2016
elecJon.
§ Any
movement
to
issue
execuJve
orders
(which
is
likely)
would
significantly
reduce
the
likelihood
of
Republicans
working
on
a
broad,
bi-‐parJsan
bill
in
the
114th
Congress.
§ Republicans
will
likely
find
opportuniJes
to
demonstrate
that
they
can
make
some
targeted
progress
on
issues
,including
legal
immigraJon/green
cards
and
temporary
work
visas.
§ Sending
the
President
a
bill
that
he
is
forced
to
veto
for
lack
of
amnesty
provisions
may
work
to
both
sides’
benefit:
Republicans
show
progress
on
moving
an
immigraJon
bill
and
the
President
protects
his
base
looking
for
broader
reforms.
TechAmerica.org
15. Telecommunica*ons
Ma8hew
Starr,
TechAmerica
§ House
Republicans
in
the
E&C
CommiRee
(Congressmen
Walden
&
Upton)
began
soliciJng
input
from
industry
on
Telecom
Act
reform
in
early
2014.
§ With
Republicans
now
controlling
both
houses,
they
are
expected
to
move
forward
with
hopes
of
introducing
legislaJon
at
some
point
during
this
session.
§ Senator
Thune
(Chairman
of
Senate
Commerce
CommiRee)
has
expressed
interest
in
pursuing
this.
§ Congresswoman
Anna
Eshoo
(potenJal
House
E&C
Ranking
Member)
is
a
telecom
expert.
TechAmerica.org
16. Interna*onal
Trade
Burak
Guvensoylar,
TechAmerica
§ Legisla*ve
Priori*es
in
Congress
– Trade
PromoJon
Authority
– Customs
ReauthorizaJon
– Trade
Secrets
ProtecJons
– Miscellaneous
Tariffs
Bill
– Export-‐Control
Reform
– Ex-‐Im
Bank
ReauthorizaJon
(Expires
June
2015)
§ Free
Trade
Agreements
– Trans-‐Pacific
Partnership
(TPP)
– Trade
in
Services
Agreement
(TISA)
– TransatlanJc
Trade
&
Investment
Partnership
(TTIP)
– InformaJon
Technology
Agreement
(ITA)
– Trade
FacilitaJon
Agreement
(TFA)
§ Protec*onist
Policies
§ Interna*onal
Policy
Mee*ng
with
USTR
on
November
20th
at
10:00
AM
TechAmerica.org
17. Tax
Reform
Lamar
Whitman,
TechAmerica
§ Lame
Duck
– Tax
Extenders
–
55,
mostly
business
(E.g.,
R&D
tax
credit,
IRC
sec.
179,
bonus
depreciaJon)
– Internet
Tax
Freedom
Act
(Expires
Dec.
11th)
– Marketplace
Fairness
Act
§ 114th
Congress
–
Senate
Finance
§ Sens.
Hatch
and
Wyden
trade
places
– House
Ways
and
Means
§ Chairman
Camp
departs
§ Reps.
Ryan
and
Brady
in
running
(Rep.
Ryan
favored)
– Tax
Reform:
Both
President
and
McConnell
support,
but
with
different
emphases
§ President
Goal:
$$
for
infrastructure
§ McConnell
Goal:
Reduce
corporate
rate
to
25%
to
promote
compeJJveness
TechAmerica.org
18. Cybersecurity
Michael
Spierto,
TechAmerica
§ Prospects
of
moving
Cybersecurity
legislaJon
during
the
lame
duck
is
unlikely
to
be
affected
by
the
elecJon
§ New
leadership
on
key
cyber
commiRees
– New
chair/ranking
member
of
HPSCI
– New
chair
of
Senate
Intelligence
– New
chair
of
HSGAC
§ Smaller
measures
such
as
the
DHS-‐centric
NaJonal
Cybersecurity
and
CriJcal
Infrastructure
ProtecJon
Act,
as
well
as
workforce
iniJaJves
could
be
part
of
a
final
NDAA
package
TechAmerica.org
19. Privacy
Joseph
Rubin,
TechAmerica
ProacJve
privacy
agenda
-‐
challenging
data
collecJon
and
use
by
the
government
§ NSA
Reform
(possible
Lame
Duck
consideraJon)
§ ECPA
Reform
-‐
disappoinJng
last
Congress,
but
opJmisJc
this
congress
§ Data
breach
noJficaJon
and
data
security:
Has
been
stymied
by
inclusion
of
extraneous
privacy
issues
(data
broker
and
markeJng
restricJons);
a
more
narrowly
targeted
bill
is
likely
Defensive
privacy
issues
§ Commercial
data
collecJon
and
usage
policies
are
less
likely
to
be
a
priority
for
Congress.
§ Senate
Commerce
CommiRee
oversight
has
looked
extensively
at
data
usage
(data
broker
study;
on-‐line
markeJng),
but
it
is
less
likely
that
incoming
Chairman
Thune
will
share
those
prioriJes.
TechAmerica.org
21. Public
Sector
Update
§ General
Overview,
Chris
Dorobek
§ Federal
Civil,
David
Logsdon
TechAmerica.org
22. Public
Sector
Outlook
for
2015
Chris
Dorobek
The
Good
§ An
end
to
budget
brinkmanship?
§ McConnell:
No
budget
shutdown,
debt
ceiling
showdown
§ The
larger
quesJon:
Will
the
GOP
put
provisions
in
spending
bills
that
the
White
House
could
veto?
§ Normalcy
in
the
budget
process
would
be
huge
—
enabling
CIO
&
contractor
planning
§ Will
the
GOP
govern?
§ GOP
priority:
Government
reform?
§ DOD
could
see
some
budget
flexibility
—
maybe
even
more
IT
money
TechAmerica.org
23. Public
Sector
Outlook
for
2015
The
Bad
§ More
oversight
of
the
agencies
—
that
impacts
vendors
as
well
(Remember
HealthCare.gov
hearings?)
§ Unlikely
feds
will
see
any
pay
raises
–
Impacts
your
business
environment
§ GOP
priority:
Government
reform?
– Comment
already
made
that
TSA
will
conJnue
as
“whipping
boy”
§ Civilian
agencies
are
unlikely
to
see
any
IT
budget
increases
TechAmerica.org
24. Public
Sector
Outlook
for
2015
Groundhog
Day
§ Fundamentals
remain
largely
the
same
§ Despite
the
dropping
deficit,
government
remains
in
the
age
of
‘do
more
with
less’
–
No
big
spikes
in
IT
spending
w/o
a
game
changer
§ The
debate
is
likely
to
be
defined
by
deficits,
fiscal
concerns
§ For
government
acquisiJons,
lowest
price
is
likely
to
conJnue
to
be
a
driver,
despite
frustraJons
that
it
isn’t
the
best
opJon
for
government
TechAmerica.org
25. Public
Sector
Outlook
for
2015
Opportuni*es
§ Tired
of
doing
the
same
thing
over
and
over
again
and
expecJng
different
results?
§ InnovaJon
has
been
a
big
driver
in
agencies
—
that
is
likely
to
conJnue
§ Budget
pressures
have
been
a
big
driver
—
that
is
unlikely
to
change
§ ARempts
to
improve
the
government
IT
acquisiJon
process
§ GSA’s
18F
conJnues
to
garner
much
focus
§ The
new
federal
CIO
—
who
will
it
be?
TechAmerica.org
26. Public
Sector
Outlook
for
2015
Lame
Duck
– The
current
conJnuing
resoluJon
funds
government
through
Dec.
11
—
what
will
lawmakers
do?
– The
Federal
IT
AcquisiJon
Reform
Act
(FITARA)
—
there
is
renewed
effort
to
aRach
this
to
the
Defense
AuthorizaJon
Bill.
– IT/Procurement
provisions
in
the
Defense
AuthorizaJon
Act
TechAmerica.org
27. Federal
Civil
David
Logsdon,
TechAmerica
§ Ebola
Funding
– Obama
AdministraJon
has
asked
Congress
for
more
than
$6
billion
in
emergency
funding.
– 4.6
billion
immediately,
1.54
billion
as
a
conJngency
fund.
§ $2.43
B
for
HHS,
$1.98b
for
USAID
– Some
of
the
funding
will
go
towards
either
beefing
up
exisJng
IT
related
projects
or
funding
new
projects
(several
RFIs
were
posted
this
week).
§ Commercial
Space
– AQer
the
Antares
and
Space
Ship
Two
mishaps,
expect
oversight
hearings
from
the
CommiRees
of
JurisdicJon.
§ Technology
Convergence/Internet
of
Things
– Expect
a
few
hearings
in
2015
focused
on
a
combinaJon
of
technology
convergence
and
IOT.
TechAmerica.org