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By MSGI Policy Analyst Andrew Lautz Two hearings on Capitol Hill this week focused on what one expert called “extinction-level events” for small businesses: cyberattacks. Congress is looking to get aggressive in helping small employers and entrepreneurs both respond to and defend against online breaches. Senators and Representatives introduced no less than 4 small business cybersecurity bills in the last 7 days alone. The House Small Business Committee’s hearing covered online issues at large, but witnesses and Members ended up spending a large part of their time looking for ways to help mitigate the devastating impact of cyberattacks. Why so much time on just this one aspect of digital entrepreneurship? Consider these takeaways from the hearing: Entrepreneurs generally don’t have dedicated information technology (IT) or cybersecurity staff The cost and time burden of becoming cyber-secure is often too high for smaller businesses The Senate, for its part, devoted its entire hearing to cybersecurity. Witnesses from the Small Business Administration (SBA) and the National Institute of Standards and Technology (NIST)discussed ways they’re looking to prepare entrepreneurs and small contractors for 21st-century online threats. Private-sector witnesses challenged Congress to ensure their cybersecurity efforts don’t also impose new burdens on small business owners and staff. More important than the hearings is what Congress does next. The top-ranking Members of both the House and Senate Small Business Committees are supporting bills that could help. Senate Chair Marco Rubio (R-FL), Senator Jeanne Shaheen (D-NH), House Chair Nydia Velazquez (D-NY), and House Ranking Member Steve Chabot (R-OH) have proposed bills that would increase small business access to cyber training through SBA’s Small Business Development Centers House Chair Velazquez and Ranking Member Chabot also support legislation that would enhance the ability of small businesses to communicate with the Federal government about cybersecurity and cyberattacks These bills are worth watching, especially given the importance assigned to cybersecurity at this week’s hearings. As one witness put it, they may make the difference between survival and extinction for small businesses.

By MSGI Policy Analyst Andrew Lautz There were no less than three hearings on Capitol Hill last week concerning the great white whale of this era, for Congress and the White House: an infrastructure bill. These were not the first hearings of the 116th Congress on infrastructure either. Numerous Committees have spent hours discussing how to invest the trillions of dollars needed to update the nation’s roads, highways, bridges, and tunnels. This week’s hearings were held by Committees with different focus areas, underscoring just how many aspects of the American economy would be impacted by an infrastructure package: The House Small Business Committee held a hearing on how to include small businesses and contractors in an infrastructure bill The Senate Environment and Public Works Committee considered how to balance the need for fast permitting of Federal projects with the need to protect the environment It was the House Ways and Means Committee, though, that pondered the central question hanging over these and all other infrastructure hearings: how to pay for it? There is still quite a gap between Republican and Democratic Congressional leaders over just how to pay for an infrastructure bill that could cost over $1 trillion, without putting more debt on the nation’s credit card. Republicans, who control the Senate and White House, are wary of proposals to increase the Federal gas tax. House Transportation Committee Ranking Member Sam Graves (R-MO) is proposing a new kind of tax, on Vehicle Miles Travelled (VMT). Graves has yet to get his party on board, though, and there are privacy concerns about how to actually track and collect a VMT tax. Some prominent Democrats, like House Transportation Committee Chair Peter DeFazio (D-OR), are behind a gas tax hike, but he doesn’t have consensus in his party either. Ways and Means Committee Chair Richard Neal (D-MA) has not committed to any one idea to raise money for an infrastructure bill, but where he falls on the issue could end up being a major signal to other House Democrats. It seems that President Trump, the Republican-led Senate, and the Democratic-led House all agree that infrastructure spending is a necessity, not an option, for the 116th Congress. Until a consensus develops on how to pay for infrastructure, though, there will be more questions about what emerges from this Congress than answers.

By Andrew Lautz, WIPP Government Relations There are 10 million women business owners in the U.S. generating over $1.4 trillion in annual sales. Women Impacting Public Policy (WIPP) brought some of those women business owners together with Members of Congress last week to discuss the challenges women entrepreneurs face in 2019. The event, hosted by WIPP in conjunction with the Congressional Small Business Caucus, attracted attendees from on and off Capitol Hill for a lively morning discussion about capital access, workforce development, and Federal contracting for women business owners, called the “heartbeat” of the American economy by one attendee. One common theme among leaders who spoke was the institutional obstacles, past and present, standing between women business owners and their full potential. Congresswoman Chellie Pingree of Maine, Co-Chair of the Small Business Caucus, discussed the difficulties she had obtaining a business loan from her local banks. “What does your husband think about this?” was a common question Pingree was asked when she started her business 30 years ago. Even today, only a miniscule amount of venture capital dollars go to women, according to National Women’s Business Council (NWBC) Chair Liz Sara. Penn Parking President Lisa Renshaw shared her inspiring story—taking over her first property at age 21, sleeping in a parking garage for 3.5 years, and growing her business to over 200 employees and 45 locations. It’s a fine example of the resilience of the innovators and entrepreneurs in attendance, even in the face of tremendous adversity. Renshaw hasn’t forgotten about her humble beginnings, though—she talked at length about training her workforce for the jobs that will dominate the 21st century American economy. WIPP President and CEO Candace Waterman shared why Federal contracting parity is so important for women entrepreneurs. The Federal government sets a goal of having 5% of all contract dollars per year go to women-owned small businesses (WOSBs), but has only succeeded once. As the government shifts towards larger and larger contract vehicles, agencies must keep their eye on the 5% goal, Waterman said. The women entrepreneurs most of whom were WIPP members, took part in the roundtable with Small Business Caucus Co-Chairs Pingree (D-ME) and Scott Tipton (R-CO), along with Congressman Steve Chabot (R-OH). The top takeaway? Congress and the Federal government have more work to do to ensure women entrepreneurs can access much-needed capital, develop a skilled workforce, and achieve parity in Federal contracting. The good news? WIPP, Penn Parking, NWBC, and Members of Congress are on the case.

By Ann Sullivan A letter from the Chair and Ranking Member of the House Small Business Committee recently came to my attention urging the Federal Acquisition Regulation (FAR) Council to adopt changes made by law in 2013. And I thought Congress was slow. Who is this Council? According to the law, the FAR Council membership consists of: the Administrator for Federal Procurement Policy and — (A) the Secretary of Defense, (B) the Administrator of National Aeronautics and Space; and (C) the Administrator of General Services. Now, admittedly these are busy people. Maybe they just don’t have time. However, upon further investigation, these very busy people have representatives for various sections of the FAR. They are called FAR Teams. For example, in 2007, the Federal Acquisition Regulatory Council established a Federal Acquisition Regulation (FAR) Small Business Team. The purpose of this Team is to focus on small business issues and to coordinate with the Small Business Administration (SBA) on concurrent SBA and FAR rulemaking. So, even with a team devoted to small business, there is still a backlog on adoption of small business changes dating back as long as six years. As background, the government implemented the FAR in 1984, looking to create a single, governmentwide procurement regulation. Any amendments proposed and announced by the Department of Defense (DOD), the General Services Administration (GSA), and the National Air and Space Administration (NASA) need the concurrence of the FAR Council established at the same time. The FAR is massive and has 53 sections. Just in case you were wondering, the small business portion is contained in FAR Part 19. The process of changing a law or putting in place a new one is lengthy. The FAR Council uses the same process as any other agency to amend the FAR, which includes: the publication of a proposed rule in the Federal Register; the opportunity for interested persons to submit comments on the proposed rule; publication of a final rule that includes a “concise general statement” of the “basis and purpose” of the rule; and a 30-day waiting period after the final rule is published in the Federal Register before the rule can take effect. Other agencies get involved in this process as well, such as a review from the Office of Management and Budget (OMB) or the Office of Information and Regulatory Affairs (OIRA), for example. Then, finally, it goes to the FAR Council for adoption. In my experience, a speedy regulatory process is six to nine months. Years can slip away as everyone involved in the process concludes their work. A look at the FAR Council website reveals 12 pages of open cases, some of which involve the small business changes the House Committee letter is seeking. The good news is that the force of law does not necessarily have to depend on this years-long process. Sometimes the FAR “conforms” to regulations issued by the agency, such as changes to the Small Business Act. Contracting officers do not always have to wait on FAR Council actions before implementing a change in the law because agency rules generally have the force of law; however, they do not realize this. For example, this certainly happened with respect to WIPP’s push to implement sole source for the WOSB procurement program. A contracting officer told women contractors that the FAR had to be amended before they would consider issuing sole sources. Agencies can also be compelled to take action in certain circumstances if they have “unreasonably delayed.” That was certainly the case with the WOSB procurement program (unless passage of a law in 2000 and implementation 11 years later does not seem unreasonably delayed). So, why is the FAR Council so slow? Because the process to amend the FAR goes through an extra level of interagency review. Even though Congress passed a law and agencies produced a rule to implement the law, the FAR amendment process basically goes through the review process all over again. I don’t know about you, but it seems like this process could be streamlined. Of course, I am looking at this through private sector eyes, not the eyes of a federal agency. Given this Administration’s focus on streamlining federal processes, it seems to me that this might be a good place to start.

By Ann Sullivan Partial Government Shutdown Enters Fifth Week. Today marks the 33rd day of the partial federal government shutdown. Congressional leaders and the President have yet to resolve the shutdown, but proposals have started to surface suggesting a deal could be in the works. In a Saturday address the President offered three years of deportation relief for “dreamers” under the Deferred Action for Childhood Arrivals program, changes to the asylum rules for immigrants with Temporary Protected Status and reopening the government under a continuing resolution. This is in return for Trump’s requested $5.7 billion for a U.S.-Mexico border wall. Senate Majority Leader Mitch McConnell (R-KY) plans to move ahead with a Senate vote this week on the President’s latest offer, with nearly all Republicans indicating they will back the plan. This is the first vote the Senate will take on such a measure and this shutdown has far surpassed the prior record for the longest government shutdown in history (21 days in 1995-1996). WIPP has been advocating on Capitol Hill for an end to this shutdown, and sent an open letter to the House Small Business Subcommittee and the Senate Small Business & Entrepreneurship Subcommittee calling on legislative solutions. What Can You Do? One of our themes this year is learning how to leverage your local voice. This is our first opportunity. Please call and write your Representatives and Senators to let them know that this shutdown is affecting you, your family, and your local economy. Our eco-system is made of tough women leaders, and we will continue to make the hard decisions and the necessary choices so our businesses can remain sustainable and relevant. House Passes Multiple Small Business Bills– Last year, Congress ran out of time to pass some of the changes they wanted to small business programs and policies. Instead of letting these priorities fade, the House started off the new Congress by passing seven small business bills that support from both sides of the aisle. The bills now head to the Senate, and descriptions can be found below: Expanding Contracting Opportunities for Small Businesses Act (H.R. 190): The purpose of this bill is to try and start to bring parity to SBA’s small business set aside programs. The bill would allow contracting officers to award sole-source contracts of greater value by eliminating the inclusion of option years in the award price. It increases the sole-source award amount for manufacturing to $7 million and allows the $4 million/$7 million sole source amounts to be awarded each year instead of for the total the life of the contract. For example, instead of a total sole source amount of $4 million, a five-year contract could be up to $20 million. WIPP advocated for this bill. Best-in-Class Reporting (H.R. 226): As the government continues to increase its buying through larger vehicles, there has been a concern that small businesses will be shut out of the marketplace. This bill would start to address these concerns by shining a light on small business participation on existing “best-in-class” vehicles. The bill would require the Small Business Administration (SBA) to report on “best-in-class” contract awards to small businesses. WIPP advocated for this bill. Subcontracting Plans (H.R. 227): Again, as the government is buying through larger vehicles, subcontracting opportunities continue to be crucial for small businesses. This bill creates incentives for prime contractors to reach their subcontracting goals by receiving additional credit. The bill also instructs agencies to collect and report data on meeting the goals and objectives in subcontracting plans, as well as creates a dispute process for non-payment from primes to subcontractors. WIPP advocated for this bill. Small Business Office of Advocacy (H.R. 128): The SBA Office of Advocacy is the voice for small businesses within the federal government. This bill would instruct the SBA’s Office of Advocacy to represent small businesses in international trade and regulation initiatives. It is critical for the small business voice to be explicitly represented in both trade and regulation. Encouraging Small Business Innovators Act (H.R. 206): The Small Business Innovation Research (SBIR) / Small Business Technology Transfer (STTR) programs allow small businesses to receive federal funding for innovative research. This bill would incentivize participation in the Mentor-Protégé program by providing an increase to the past performance rating of any small business that has participated in the SBIR/STTR programs and then serves as a mentor to another small business that is looking to participate in the SBIR/STTR programs. Investing in Main Street Act (H.R. 116): The SBA’s Small Business Investment Company (SBIC) program provides an alternative source of financing for small businesses lacking access to adequate capital from traditional sources. This bill increases the amount of capital that a bank or federal savings association may invest in one or more Small Business Investment Companies (SBICs) from 5% to 15%. Stimulating Innovation through Procurement Act (H.R. 246): The SBIR/STTR programs provide small businesses with the resources they need to develop cutting edge solutions. This bill would instruct procurement officials at federal agencies, Office of Small and Disadvantaged Business Utilization (OSDBU) Directors, and Procurement Center Representatives (PCRs) to assist small businesses in the SBIR/STTR programs with researching federal contract opportunities. It would also instruct those officials to provide technical assistance on contract bids to small businesses in SBIR/STTR programs. SBA Issues Proposed Rule Impacting Small Business Government Contracting. The Small Business Administration (SBA) issued a proposed rule that makes several changes to small business government contracting. Changes are proposed to areas such as: subcontracting plan requirements, the non-manufacturer rule, size recertifications, limitations on subcontracting rule, size determinations, and more. Comments are due February 4, 2019. If you want to learn more about the rule, please contact WIPP. IRS Issues Final Tax Deduction Rules for Pass Through Entities. The IRS has issued final guidance on the new 20 percent deduction for pass-through entities. WIPP advocated for inclusion of pass-through entities in the tax law overhaul in 2017. The regulations clarify how businesses can comply with the new tax law, which allows a percentage of income to be considered business income instead of personal income. The IRS estimates the rules will affect about 10 million taxpayers. Read the guidance here and see the highlights below. The rule: Allow owners of partnerships, S corporations and limited liability companies to take up to a 20% deduction off their business income. Gives taxpayers clarity ahead of tax filing deadlines: March 15 for pass-through entities and April 15 for owners of those businesses Allows all taxpayers who earn less than $157,500, or $315,000 for a married couple, to deduct 20 percent of the income they receive via pass-through businesses from their overall taxable income. If taxpayers earn above those amounts and aren’t service professionals -- such as lawyers or accountants; they must meet certain tests to take the full deduction -- the size of their deduction depends on how much they pay in employee wages or how much they’ve invested in capital like real estate. Clarifies that for service professionals, the break fully phases out if they earn more than $207,500 (single), or $415,000 (married). Is limited for employers who pay low wages or hire few workers. The rules make it easier for related pass-through businesses to maximize their deduction by allowing companies to combine at the entity level or at the owner level. For example, two related businesses -- one with a lot of employees but little profit, and another with a lot of profit but few wages -- could aggregate their payroll and income to get a bigger tax break. Retains a provision meant to simplify record-keeping if companies only have a small amount of income from ineligible activities, such as health or law. If less than 10 percent of the income is from ineligible sources, the company can still get the full deduction on all its profits. Important to note is that the final rule allows taxpayers to choose whether to use prior law or the new regulations when preparing their returns. Final rules usually supersede earlier rules; however, the Treasury Department made an exception because many taxpayers have already begun working on the filing season due in April. House Democrats Release Infrastructure Priorities. A $500 billion infrastructure package and changes to aviation financing are among this year’s plans for new House Transportation and Infrastructure Chairman Peter DeFazio (D-OR). Last year, President Trump issued his plan in February, which failed to gain traction. DeFazio’s counterpart, Ranking Member Sam Graves (R-MO), has indicated he will push to switch the Highway Trust Fund’s revenue source to a vehicle miles traveled tax from the current motor fuels taxes ahead of the highway reauthorization that Congress must pass by next October. Democrats plan to release a full package by the end of May 2019. Funding for the proposals could include either increasing the fuel tax by 1.5 cents per year or creating a ‘vehicle miles traveled’ tax that ensures electric vehicles contribute to the road fund. The plan is similar to H.R. 1664 from the 115th Congress. To read the priorities, click here.

By Ann Sullivan, WIPP's Chief Advocate As 2018 comes to a close (how did that happen already?), I am grateful for the progress WIPP experienced this year as we strive to empower women entrepreneurs through our national advocacy. Our new, extremely capable President, Candace Waterman, brings strength and new energy to the organization. In addition, WIPP has been blessed with two very dedicated board chairs – Lisa Firestone and Angela Dingle. A new partnership with WBENC brings an expanded network to WIPP through its regional presence, enabling WIPP to bring its advocacy message to a much larger audience. WIPP leaders continue to lead by example. Putting aside their passion for politics, they work together to achieve legislative/regulatory results no matter which party they support. WIPP supports women who run, believing that more women in Congress will lead to better and different legislative priorities. We can’t wait to meet the 100+ women who won seats in the 2018 elections. One of WIPP’s best assets is its ability to collaborate. Collaboration is pretty rare in Washington, D.C., because everyone worries about getting credit. But WIPP sees it differently. A results driven advocacy strategy requires many voices and the odds are long to get legislation enacted. This congressional session, almost 10,000 bills were introduced. According to a congressional expert, only about 200 (and the number is declining) pass each year. WIPP collaborated with the Montgomery County Chamber of Commerce to tackle the issue of small federal contractors who are about to bump into the “no man’s land” of midsize contractors. This effort resulted in movement of legislation to allow a 5-year lookback for purposes of determining size. The legislation is very close to getting over the finish line in these final days of the 115th Congress. Similarly, WIPP collaborated with the HUBZone Council and the Montgomery County Chamber to tackle the federal acquisition strategy known as category management. The danger small business organizations need to guard against is being shut out of large, multiple award contracts. Our job as advocates is to ensure that women owned businesses can compete for federal contracts. We accomplish that by collaborating with the greater small business community to ensure our voices are heard. The Small Business Saturday Coalition, which WIPP heads, showcases our reach. WIPP spearheads passage of a resolution by the House and the Senate officially declaring the Saturday after Thanksgiving as a day when small businesses should be celebrated and patronized. Sponsored by Small Business Committee Chair Risch and Ranking Member Cardin, over half of the Senate signed onto the resolution. A full 260 Members of Congress engaged in some way by shopping, using social media or other forms of communication to indicate their support. By engaging our partners in echoing our message, “Shop Small” is on the tip of everyone’s tongue. Advocacy is not limited to Capitol Hill, it also pertains to federal agencies. WIPP’s ChallengeHER program engages federal agencies and partners with the Small Business Administration. The Small Business Administration (SBA) is involved in almost every program we touch. Whether it is lending, procurement or counseling services for women businesses, the SBA sits squarely in the middle. Headed by a terrific Administrator, Linda McMahon is always on WIPP’s radar as the chief advocate for small businesses in this Administration. Another capable woman, Emily Murphy, who heads the General Services Administration (GSA), keeps women businesses front and center at her agency which procures just about everything the government buys. As we look back on this year, we pause to marvel at what was accomplished. At the same time, we know that while WIPP’s advocacy is strong, but it can always be stronger. By engagement of its leaders and increased membership, the voice of women businesses continues to grow. My wish for next year is pretty simple – make WIPP bigger and better than it was this year. Happy Holidays from our advocacy team.

By Ann Sullivan When you read this, the election results will likely still be coming in and you will know whether or not the House and Senate have changed control or stayed with the Republican majority. Although the news media will have interpreted the results according to the agendas they believe voters are familiar with, it may not necessarily speak to what the changes mean to women owned businesses or federal contractors. To understand what it means to your business depends on your industry and your priorities. If you in the health care sector, for example, your interest will most likely go beyond what the average business cares about – increased rates. If your business involves national security, you most likely will have a different perspective on immigration, that goes beyond border security. Our business is policy, so we see election results through the lens of how these changes affect the WIPP/business agenda. In order to achieve results, we work with those in power who can advance our policy priorities. That means if the control of the House and Senate flips to Democrats, we form new relationships which extend to new Chairs of Committees and a whole new leadership team. It also means that the business agenda will likely change or at least the focus depending on the interests of Committee chairs and leadership. Even if the Republicans keep control of the House and Senate, leadership will change with the departure of Speaker Paul Ryan and Committee Chairs will still move around. For example, the Senate Small Business Committee is expected to have a new chair, and the House has a policy that with each new Congress, party leaders negotiate the size and Chairs of the Committees. The ratio of majority/minority members on each Committee is also determined by party leadership. Obviously, if the Democrats take control of the House/Senate, the changes are far greater. I would be remiss if I didn’t point out that all of these changes apply to staff members, since they are employed by each Member of Congress, not the institution. Staff sizes shrink if the ruling party becomes the minority party, while majority staffs increase. With respect to issues, there ares difference of opinion not only between Republicans and Democrats, but also within each party. Issues such making tax cuts permanent, trade, deregulation, infrastructure, workplace and defense spending and health care depend not only on the party in control, but also the states/districts the leadership represents. A speaker from Wisconsin is going to have different priorities than a speaker from California, for example. What doesn’t change for us is working in a bipartisan manner. We need friends in both parties to move our agenda. Although the majority in Congress sets the agenda, the minority is usually in a position to stop it, so bipartisanship is a practical reality for our team. As election results start rolling in, take a look at the issues agendas of those who won and those who lost. It will give you a better sense of what to expect in January when the new Congress is sworn in. Or, you can hit the easy button and tune into our team’s next monthly policy briefing where we will analyze the effects of the election on our legislative priorities. Understanding election results is business intelligence critical to the success of your business.

By Ann Sullivan, WIPP Chief Advocate We all know from the polls and cable talk shows that America has very different political views. The term “a country deeply divided” was heard everywhere last week as analysts and Twitter shared their views on the Supreme Court nomination hearing. The Senate Judiciary Committee reinforced this view by a display of unusual partisanship, showcasing the deep divide between the views of Republicans and Democrats with respect to a Supreme Court appointment. So, in these partisan times, is there room for an organization like WIPP that strives to be as nonpartisan (or bipartisan) as possible when making policy recommendations? I often have joked that if we offend both sides, we must be doing our job. But seriously, are we outdated—have we lost touch with what our stakeholders and members expect? Is a bipartisan approach to public policy a loser? Should we be pivoting to either one side or the other to increase our effectiveness? I was having dinner with a friend who was at an event with her Senator, a Republican. Someone asked him the same question—how could a Senator tout his effectiveness when everyone knows that no one in Washington works together? The Senator answered the question by saying that despite what gets reported on the news, Senators work with those in the other party to get things done. He went on to cite many examples of legislation he has worked on with a Democrat to pass into law. As an advocate for women entrepreneurs, it is certainly harder to get legislative changes passed by Congress than it was a few decades ago. Before widely available technology, Congress depended on advocates to be the eyes and ears of their constituents. Now they hear directly from their constituents within minutes of a breaking news story. Technology has also transformed the ability for any Congressperson to get their message out to their constituents. Today, these channels are far more expansive than decades ago, when the only media outlets were the four major networks. Now, messages can be communicated broadly through the use of multiple social media outlets and news channels. The Congress is also much more rule and procedure driven than it used to be. Senators used to craft amendments on the way to the floor of an important debate. Now, legislative language has to go to legislative council to draft—a process which is much more laborious. This is due in part to the loss of a collegial trust, which is the underpinning of an effective Congress. But even in a contentious hearing, like the recent one on Supreme Court Nominee Brett Kavanaugh, there were two Senators among all the others that came together to propose a bipartisan solution. That may not have been a popular decision for either side, but it is a glimpse of how this place really works most of the time. Despite all the partisan rhetoric that plays to the cameras and creates soundbites galore, work has to continue. House and Senate members generally work across the aisle to get agreement on legislation to secure passage. Although legislation can be passed on a strict party line vote by the majority, it is not advisable. The other party, which has no stake in the success of the legislation, is left to the worst outcome—tagging all their messaging and efforts against it to use as a rallying cry. WIPP’s membership has women with strong political views and we reflect the divide on issues the rest of the country is experiencing. But we have learned that we can discuss contentious issues without getting personal. We have also learned that we can propose policy changes on which both sides can agree. Business issues, which is our focus, are generally less contentious than social issues—I’ll admit to that. But economic issues have not escaped partisanship. Our goal at WIPP is to come up with solutions that make a difference for women entrepreneurs. For example, our advocacy on tax legislation did not tackle the broad question of whether tax reform was needed. Instead we focused on getting the Congress to recognize that most businesses are organized differently than large “C” Corps and thus should get different tax treatment. It was an issue that all of us could agree upon and was a significant policy change for the entire small business community. I could give you many more examples of WIPP policy positions that made an impact and did not tap into the partisan sentiment surrounding the issue. WIPP works with all Members of Congress, regardless of their party. We work with political appointees in agencies when Administrations change. We are solution driven and we know it takes both sides to make a positive impact for women entrepreneurs. It is my hope that we resist the temptation that afflicts many organizations in Washington, D.C.—to be bipartisan in name only. Women business owners are in a unique position to be the leaders in their communities and in the halls of Capitol Hill. By refusing to limit our efforts to those who agree with us or say what we want to hear, we are opening up the door to creative policy solutions. Let’s work together — there is plenty of room for those who want to find common ground.

By Ann Sullivan Something happens to Washington in September. The lazy hazy days of summer disappear, and the most beautiful weather arrives. The stifling heat gives way to cool days and turning leaves. And the pace really picks up. The traffic becomes impossible and days are packed with meetings and events as Washington kicks back into high gear. Given that the end of the government’s fiscal year ends on September 30, federal contractors are on high alert as the government tries to spend the remainder of its fiscal year money. Speaking of government funding, the Congress will be back in full swing, trying to pass its FY19 spending bills before October 1. To date, no appropriations bill for FY19 has been signed by the President, although the House has passed six spending bills and the Senate has passed nine. Now the job of reconciling the differences begins. Republicans would love to show voters in November that a perk of having the party control both the House and Senate is the ability to get the fiscal year funded in a timely manner. Another big push in September is the Supreme Court nomination of Brett Kavanaugh. Nominated by President Trump, the Senate must approve the nomination by a majority vote. Given the two-seat majority in the Senate, Republicans cannot afford to lose any of their party’s votes to confirm Mr. Kavanaugh. This year, the legislative schedule will be shortened by the upcoming elections in November. It is customary for the Congress to recess for most of October in order to spend their time in their home states/districts campaigning. Then traditionally, the Congress calls a “lame duck” session in November/December to complete any unfinished business. This election season is shaping up to be an exciting one, with women running in unprecedented numbers. Arizona will have its first female Senator—both primary winners were women. To date, 26 women are still in the running for the U.S. Senate, 251 for House seats and 18 for Governor. While many women did not win their primaries, this election upended the notion that party bosses have to bless candidates who run for Congressional seats and incumbents are unbeatable. Women in 2018 challenged both of those political adages. This September starts with remembering the life of Senator John McCain who will lie in state in the Capitol Rotunda—one of only 13 Senators to have received this honor. His life and patriotism will be remembered by all walks of life – no matter the political party. The Senator so wisely said, “Nothing in life is more liberating than to fight for a cause larger than yourself, something that encompasses you but is not defined by your existence alone.”

By Ann Sullivan In the final scene of the Wizard of Oz, the dog Toto pulls back the curtain and Dorothy discovers the man behind the curtain is not the great and powerful Wizard, he’s just a little old man with a megaphone. Sometimes, actions in Washington use the megaphone but there is relatively little “behind the curtain.” That’s how the new rule on Association Health Plans (AHPs), issued by the Department of Labor, feels. It was with great fanfare that the Administration issued new rules for AHPs. WIPP has supported AHPs since its inception as a necessary tool to allow small businesses to band together to create larger health insurance pools, thus creating more competition and better prices in the small business marketplace. Insurance rules adopted during the Affordable Care Act (aka Obamacare) largely prohibited AHPs from a viable option. Because every insurance plan had to cover 10 “essential health benefits” under the ACA, these plans became mute. When the Department of Labor announced loosening the regulations to allow AHPs, we applauded. WIPP submitted comments urging better pooling mechanisms, a wider range of health plan options and protections for those with pre-existing conditions. We also urged the Department to include a different “commonality of interest” definition, allowing small businesses to band together beyond a trade, industry, or profession. This would have allowed small business organizations to offer AHP membership to its members, including WIPP. On June 21, the man behind the curtain showed up. The Department of Labor issued its new AHP rules. By deciding to keep the definition of who can join an AHP to a trade, industry, or profession, business organizations like WIPP, cannot offer an AHP. For example, an accountant in Nevada could join an AHP housed in a national association of accountants, but an organization of women business owners, does not qualify as a trade, industry, or profession, according to the new rules. The AHP can have out-of-state members but must comply with the rules of the state in which it is housed, restricting its ability to be a true “across state lines” option. Important to note is that AHPs are not required to offer the 10 essential benefits, which means education for employers and employees who join AHPs is needed. News reports suggested that small business associations who have supported AHPs in their policy platforms are not going to take advantage of the new rules. That’s because they can’t—their commonality is business owners, not limited to a specific trade, industry or profession. Giving small business owners more health insurance options continues to be part of our policy platform. As premiums continue to rise, small business exchanges set up by the ACA should not be the only option. The Department of Labor could have done so much more than use their megaphone.

By Ann Sullivan Some days I feel talked to death. The 24-hour news cycle, Twitter, Congressional hearings, roundtables, forums – you name it – everyone’s talking. But to quote an Elvis Presley song, “a little less conversation, a little more action, please.” Congressional inaction didn’t start yesterday. The budget process has been broken for some time. In fact, Congress passed all 12 appropriations bills by the October 1st deadline (the beginning of the fiscal year) just four times in the last 40 years. However, from 2011 to 2016, not a single appropriations bill passed by itself. For the last 7 out of 10 years, Congress has failed to pass a budget. Finally, the last time the Congress passed all 12 of its appropriations bills was 1994. The same goes for legislation. Historically, this session of Congress is on pace to pass the least amount of legislation in the last 50 years. Congress has passed 194 pieces of legislation signed into law during the first 18 months of the 115th session of Congress. Of those 194, 23 bills were symbolic or ceremonial. Roughly 1.7% of bills introduced this session of Congress have become law, compared to 4.5% of bills in the 105th session (under President Clinton), and 3.3% of bills in the 110th session (under President George W. Bush.) No one knows better than Congressional Members that the system is broken – especially its fundamental budget responsibility. A little-known effort is commencing on Capitol Hill – the Joint Select Committee on Budget and Appropriations Process Reform. This Committee, comprised of House and Senate Members of both parties, is tasked with recommendations to reset the way Congress budgets and appropriates the taxpayers’ money. Recently, the Committee asked Members of Congress to share recommendations and Speaker Paul Ryan testified that the Congress should do a biennial budget. Others suggested getting rid of the Budget Committee, indexing spending to a percentage of the gross national product and eliminating the debt ceiling vote by making it automatic. What struck me most listening to the hearing was the bipartisan interest in fixing the budget process. Two former Senate Leaders, Tom Daschle (D) and Trent Lott (R), currently lead the Commission on Political Reform as part of their work at the Bipartisan Policy Center. They have shared three recommendations to address the gridlock: Move to a two-year budget cycle, allowing more time for Members to understand programs under their jurisdiction in-depth; Get rid of the Senate filibuster but make the majority 60 votes, not 51 votes; Have a minimum number of amendments that can be offered to legislation, thus encouraging Members to get involved in legislating. Being an eternal optimist, I believe the Congress can fix the process. One small ray of hope is the Senate Appropriations Committee, which is moving its bills at a much faster clip than we have seen in many years. I anticipate the Joint Select Committee on Budget Reform will produce serious recommendations. Changing the rules will lead to action. Members of Congress will get back to legislating and time will be spent considering serious issues that need resolution. Getting back to an action-oriented Congress would be the first step toward more action and less talk.

By Ann Sullivan At a recent meeting with women business owners—midsize and small–they pointed out shortages in the workforce that presented a present and future issue. The concerns ranged from finding truck drivers and master electricians to highly skilled technical personnel. Business owners aren’t the only ones talking about the shortages in the workforce, Congress and the Administration are concentrating on strategies to fill what is known as the “skills gap.” The Obama Administration workforce development priorities focused on promoting community colleges and their two-year, associates degree tracks as a valid alternative to four-year degree programs, as well as encouraging partnerships between community colleges and employers. The Trump Administration is focusing its efforts on apprenticeship. Last year, President Trump signed an Executive Order (EO), “Expanding Apprenticeships in America,” which would provide industry associations, unions, and other stakeholders the flexibility to develop industry-recognized apprenticeships, loosening the Department of Labor regulations on apprenticeship programs. The Administration’s Executive Order also doubled the amount of money for apprenticeship grants, from $90 million to almost $200 million a year. Additionally, the order establishes a new Task Force on Apprenticeship Expansion, chaired by the Secretary of Labor and co-chaired by the Secretaries of Education and Commerce. It would also include representatives from industry, labor, and educational institutions. Congress is also taking a hard look at the skills gap. In a recent House Small Business Committee hearing, “Workforce Development: Closing the Skills Gap,” the committee discussed career and technical education (CTE), as well as apprenticeships as a strategies to addressing the lack of qualified, skilled workers needed by business and industry. Other Committees on both sides of Congress are also trying to figure out how to chip away at this issue. WIPP members come to the workforce development issue from two angles: one as an employer and one as a woman who likely experienced additional challenges in the workplace. We are sensitive to making sure women are an important part of the workforce and treated fairly. The article “10 facts about American women in the workforce,” highlights particular issues that women struggle with such as the wage gap, labor participation rates and paid maternity leave. In fact, the President’s daughter, Ivanka Trump, has also brought forth the struggle with childcare as a priority issue for this Administration— with good reason. Most young children in the U.S. have parents who work outside the home or are business owners. According to the Brookings Institute, in 56% of married families with children under six, both parents work. For single mothers the employment rate is 6%. Childcare is a necessity for these families, and unfortunately often unaffordable in the United States. Working families are spending on average between 29% to 52% of their take-home pay on childcare costs, yet the U.S. Department of Health and Human Services concludes that affordable childcare should not exceed 7% of family income. Workforce development is a new issue to WIPP’s policy team and we welcome your thoughts and experiences. Our goal is to ensure that the voice of women business owners is part of the discussion in both Congress and the Administration. Businesses of all sizes share a common goal of building America’s workforce to adapt to the economy of tomorrow. Women as business owners should be taking the lead in this effort by taking steps from strengthening women’s participation in STEAM, to being visible in the highest positions in business and industry. There is so much work to do and our voice is critical to the solution.