President Biden ends COVID-19 National Emergency after Congress Acts

The U.S. national emergency to respond to the COVID-19 pandemic ended Monday as President Joe Biden signed a bipartisan congressional resolution to bring it to a close after three years — weeks before it was set to expire alongside a separate public health emergency.

The national emergency allowed the government to take sweeping steps to respond to the virus and support the country’s economic, health and welfare systems. Some of the emergency measures have already been successfully wound-down, while others are still being phased out. The public health emergency — it underpins tough immigration restrictions at the U.S.-Mexico border — is set to expire on May 11.

The White House issued a one-line statement Monday saying Biden had signed the measure behind closed doors, after having publicly opposed the resolution though not to the point of issuing a veto. More than 197 Democrats in the House voted against it when the GOP-controlled chamber passed it in February. Last month, as the measure passed the Senate by a 68-23 vote, Biden let lawmakers know he would sign it.

The administration said once it became clear that Congress was moving to speed up the end of the national emergency it worked to expedite agency preparations for a return to normal procedures. Among the changes: The Department of Housing and Urban Development’s COVID-19 mortgage forbearance program is set to end at the end of May, and the Department of Veterans Affairs is now returning to a requirement for in-home visits to determine eligibility for caregiver assistance.

U.S. Postal Service Files Notice with PRC for New Mailing Services Pricing

Yesterday, the United States Postal Service filed notice with the Postal Regulatory Commission (PRC) of mailing services price changes to take effect July 9, 2023. The new rates include a three-cent increase in the price of a First-Class Mail Forever stamp
from 63 cents to 66 cents.

The price for 1-ounce metered mail will increase to 63 cents, and the price to send a domestic postcard will increase to 51 cents. A 1-ounce letter mailed to another country would increase to $1.50. There will be no change to the single-piece letter and flat additional-ounce price, which
remains at 24 cents. The Postal Service is also seeking price adjustments for Special Services products including Certified Mail, Post Office Box rental fees, money order fees and the cost to purchase insurance when mailing an item.

The PRC will review the changes before they are scheduled to take effect. The complete Postal Service price filing, with prices for all products, can be found on the PRC website under the Daily Listings section at prc.gov/dockets/daily. The Mailing Services filing is Docket Number R2023-2. The price tables are also available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.

 

New 274 Area Code Coming to Northeast Wisconsin in May 2023

The Public Service Commission of Wisconsin (PSC or Commission) today announced the creation of a new, additional area code to overlay the area in which the 920 area code is now in service. This area includes communities such as Appleton, Beaver Dam, Berlin, Fond du Lac, Fort Atkinson, Green Bay, Manitowoc, Oshkosh, Ripon, Sheboygan, Sturgeon Bay, and Watertown.

The 920 area code is expected to run out of assignable prefixes (the three numbers in a phone number following the area code) by the first quarter of 2024. The new 274 area code will be used to provide telephone numbers to new customers. All current customers will retain their existing telephone numbers and will continue to dial and receive calls without change.

The new 274 area code will be in service beginning May 5, 2023. NANPA will assign 274 area codes once all of the 920 area codes have been assigned, which could happen as soon as the end of the year.

An area code overlay adds a second area code to the geographic region served by the existing area code. Therefore, multiple area codes co-exist within the same geographic region. Customers will continue to dial the three-digit area code for all calls to and from telephone numbers with the 920 and 274 area codes. The price of a call will not change due to the overlay.

Customers can still dial just three digits to reach 911, as well as 211, 311, 411, 511, 611, 711, 811, and 988 – the new Suicide & Crisis Lifeline.

IRS Unveils Spending Plan for $80 Billion Funding Boost

The Internal Revenue Service on Thursday unveiled its long-awaited spending plan for a controversial $80 billion cash infusion, pledging to hire thousands of new workers to audit wealthy Americans and big corporations.

The roadmap provides new details about how the tax-collecting agency will use the money over the next decade, including plans to modernize technology, improve customer service, deliver real-time alerts, provide “world-class” customer service and crack down on the so-called tax gap by enhancing enforcement of the wealthy.

The Treasury Department previously said the funding boost would allow the IRS to hire about 87,000 workers over the next 10 years, doubling the agency’s staff. However, the operating plan did not provide an estimate for the agency’s hiring plans beyond the next few years.

The IRS – which had about 78,700 employees as of 2021 – said that it plans to hire nearly 30,000 new employees by the end of fiscal year 2025, including 8,782 hires in enforcement and 13,883 in taxpayer services. The new enforcement employees will be “exclusively” focused on high-earning households, larger partnerships and companies, according to IRS Commission Danny Werfel.

The influx of money for the IRS over the next decade was included in the Democrats’ health care and climate change spending bill – dubbed the Inflation Reduction Act – that President Biden signed into law in August 2022. The funding is aimed at improving tax compliance among big corporations and wealthy Americans and shrinking the estimated $600 billion tax gap.

 

The Biggest Part of the U.S. Economy Slowed in March, ISM Finds

A bellwether of business conditions at U.S. companies fell to a three-month low of 51.2% in March and signaled slackening growth as strains mount on the economy.

The Institute for Supply Management’s services index fell from 55.1% in February.

Numbers above 50% indicate companies are expanding, but the latest survey suggests growth has taken a turn for the worse.

“The likelihood of a mild slowdown in the second half of 2023 or 2024 is still pretty high,” an executive at a professional company told ISM. “Layoffs will continue.”

The closely followed ISM reports are the first major indicators of each month to offer clues on how well the economy is performing. While the large service sector of the economy is still growing, manufacturers have fallen into a slump of sorts.

Democrats’ Choice Wins Key Wisconsin Supreme Court Race

A Democratic-backed Milwaukee judge won the high stakes Wisconsin Supreme Court race Tuesday, ensuring liberals will take over majority control of the court for the first time in 15 years.  Milwaukee County Circuit Judge Janet Protasiewicz defeated former Justice Dan Kelly.

The new court controlled 4-3 by liberals is expected to decide a pending lawsuit challenging the state’s 1849 law banning abortion enacted a year after statehood. In addition to abortion, Protasiewicz’s win is likely to impact the future of Republican-drawn legislative maps, voting rights and years of other GOP policies. It will also ensure that liberals will have the majority leading up to the 2024 presidential election and immediately after.

Protasiewicz will serve a 10-year term starting in August replacing retiring conservative Justice Pat Roggensack.

 

Wisconsin’s Spring Election: A Voter’s Guide to Candidates, Issues

Wisconsinites are heading to the polls to weigh in on an open state Supreme Court seat, three statewide referendums and a host of local candidates. Here’s what voters need to know before they cast their ballots.

Wisconsin Supreme Court

Although the race is officially nonpartisan, Milwaukee County Judge Janet Protasiewicz, a liberal, could shift the court’s ideological balance if she beats conservative former state Justice Daniel Kelly for a 10-year term.

Statewide Referendums

Questions 1 and 2 on statewide ballots would amend Wisconsin’s Constitution to expand criteria judges are directed to use when setting cash bail and other conditions that someone has to comply with to be released from jail before trial. A third non-binding question asks Wisconsinites their opinion on whether able-bodied adults should be required to look for work in order to receive taxpayer-funded welfare benefits.

A Crucial Election for the State Senate

In southeast Wisconsin, Republican Representative Dan Knodl and Democrat Jodi Habush Sinykin are competing for a District 8 state Senate seat that was vacated by a retirement.  The special election in an increasingly competitive district will determine whether Republicans secure a two-thirds majority in one chamber of the state Legislature.

U.S. Consumer Spending Slows in February

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.2% in February. Adjusting for inflation, consumer spending dipped 0.1%.

Consumers increased spending on housing and utilities as well as on healthcare, but cut back on spending at restaurants, bars and hotel accommodation. Overall, services spending rose 0.2% after advancing 1.2% in January.

Outlays on long-lasting manufactured goods dropped 1.4% as a plunge in purchases of motor vehicles offset gains elsewhere. Spending on nondurable goods increased 0.9%, reflecting higher gasoline prices. There were also increases in spending on pharmaceutical products as well as food and beverages.

 

Fed’s Key Inflation Rate Cooled In February

The Federal Reserve’s key inflation rate showed price pressures were tamer than expected in February, as consumer spending softened.

The overall personal consumption expenditures, or PCE, price index rose 0.3% on the month and 5% from a year ago, easing from a downwardly revised 5.3% in January.

Personal spending rose 0.2% in February after January’s upwardly revised 2% jump. Adjusted for price increases, goods spending and services spending both dipped 0.1%.

The Fed typically emphasizes the core PCE inflation rate. Yet with goods-price pressures abating, as demand and supply chains normalize,  and housing costs expected to follow later this year, Fed chair Jerome Powell has honed in on core nonhousing services prices as the key to the inflation outlook. That’s because prices of services from haircuts to health care to hospitality are closely linked to wages, generally the biggest cost input.

In February, core PCE services prices ex-housing rose 0.3% on the month, down from 0.5% in January and the smallest increase since July. That left the annual inflation rate for core nonhousing services at 4.6%.

Health care prices rose a tame 0.2% and education 0.1%, while air transportation costs fell 0.7% on the month. Still, wage pressures are putting upward pressure on personal care services (up 0.8%), food services (0.5%) and recreation services (0.9%).

U.S. and Japan Announce Partnership on Critical Mineral Supply Chains

The U.S. and Japan announced an agreement to strengthen and diversify the supply chains for critical minerals like those used in semiconductors and other cutting-edge technologies.

Under the agreement, which took effect immediately after it was signed on Tuesday, the U.S. and Japan agreed to partner in strengthening supply chains of critical minerals including cobalt, graphite, lithium, manganese and nickel. The two countries committed to taking domestic actions to address non-market policies of other countries that distort trade in critical minerals and not impose export duties between the U.S. and Japan on critical minerals.

The agreement comes as China plays a central role in global supply chains for critical minerals, boasting the majority of refining capacity for cobalt, lithium and nickel. It is also increasingly exercising control over raw commodities in areas rich in critical minerals. For example, the Nigerian government recently made a deal with a Chinese firm to develop the country’s first lithium processing plant.

The agreement established best practices for reviewing investments made within the two countries’ critical mineral sectors by foreign entities. It also included measures to promote resource-efficient approaches to reduce the demand for, and environmental impact of, virgin material extraction of critical minerals.

The U.S. and Japan will also improve information-sharing and enforcement actions related to labor rights violations in the extraction and processing of critical minerals.