Case Says Federal FY 2023 Omnibus Spending Bill Includes Provisions To Assist Hawai’i Small Business And Tourism And Strengthen Worker Retirement SavingsThe measure incorporates Case’s national travel and tourism initiatives and funds federal small business programs
Washington, DC,
December 27, 2022
(Washington, DC) – Congressman Ed Case (HI-01), a member of the U.S. House Committee on Appropriations responsible for all federal discretionary spending, today announced that the $1.7 trillion Fiscal Year (FY) 2023 Omnibus Appropriations measure, recently passed by Congress and soon to be signed into law by President Biden, includes several initiatives to strengthen Hawaii’s dominant tourism and small business economies as well as assist Hawai’i workers with their retirements. “This measure will strengthen our top-generating tourism sector, promote small business development and assist in economic diversification as our state’s economy continues to recover from the lingering effects of COVID-19,” said Case. The omnibus bill includes the Visit America Act, a top initiative of the national travel and tourism industry which Case, a member of the Congressional Travel and Tourism Caucus, and like-minded colleagues introduced and advanced. It would mandate a coordinated national effort to stabilize and recover one of the country’s primary industries, and create a first-ever Assistant Secretary of Travel and Tourism within the U.S. Department of Commerce. The federal spending measure also includes retirement provisions that will provide millions of workers and retirees with significant improvements to the nation’s private retirement system. “The aptly named ‘SECURE 2.0 Act’ provision expands automatic enrollment into retirement plans, raises the age for required minimum disbursements from retirement plans to 75 from 73 and increases the amount that individuals aged 50 and older can put into their retirement account,” said Case. Tourism “The COVID-19 pandemic devastated our travel and tourism industry and all of its components including accommodations, transportation, food services and attractions,” said Case, formerly a travel and tourism executive with industry leader Outrigger Enterprises headquartered in Waikīkī. “Travel and tourism are huge contributors to the U.S. economy, especially to major visitor destinations like Hawai‘i. Inclusion of the Visit America Act in the FY 2023 omnibus spending measure will ensure a coordinated, high-level federal response to this challenge that delivers critical assistance to affected businesses and their employees as well as state and local economies dependent on tourism and also fully engages the federal government in pursuing long-term success and growth.” The Visit America Act would:
Worker Retirement The federal spending measure also includes significant changes in federal law to provide millions of workers and retirees with significant improvements to the nation’s private retirement system. “Americans deserve dignified retirements after decades of hard work. To help them, for the first time, millions more workers would access resources for retirement and can see retirement contributions year after year, even if they have no tax liability. These are reforms that will make a meaningful difference for workers throughout out states,” said Case. Case added that the provision allows employers to contribute matching payments to retirement accounts to match an employee’s student loan payments, and it will give part-time workers better access to retirement benefits by allowing more individuals to join their companies’ 401(k) plan. Additionally, the bill includes incentives for small businesses to set up retirement savings plans for their workers, encourages individuals to set aside long-term savings and makes it easier for annuities to be an income option for retirees. Small Businesses According to the Small Business Administration (SBA), there are more than 137,000 small businesses in Hawai’i, making up more than 99 percent of all businesses in the islands,” said Case. “We have seen what the pandemic has done to these companies, and what they are having to deal with now as they struggle with the rising costs of inflation. “That is why I worked in this measure and elsewhere to ensure that small businesses remain the backbone of our economy including financial, technical and emergency assistance, boosting trade opportunities, and ensuring that women-owned and Native Hawaiian-owned businesses get the help they need.” To assist small businesses nationwide, the bill provides $1.2 billion for the SBA, which delivers various federal programs to assist small businesses, an increase of $188 million above the FY 2022 funding level. This includes $320 million, a $30 million increase, for Entrepreneurial Development Programs that provide small businesses with quality training, counseling and access to resources. The measure includes several of Case’s requests for funding for federal programs and services important for businesses in the State of Hawai‘i including:
The bill also provided $324 million for Community Development Financial Institutions (CDFIs), an increase of $29 million above the FY 2022 enacted levels. CDFIs are specialized community-based financial institutions that promote economic development by providing financial products and services to people and communities underserved by traditional financial institutions, particularly in low-income and minority communities. They were especially valuable in delivering COVID-19 emergency assistance funds to communities without ready access to other means. Another provision highlights Congress’ concern about equal opportunities and expects the SBA to work closely with Congress to provide equal opportunities for Native Hawaiian organizations. To that end, the bill also includes $70 million for the Minority Business Development Agency with $5 million specifically set aside for Native American Business Development Program that awards grants to Tribes and American Indian, Alaska Native and Native Hawaiian populations to address barriers to economic development. Finally, the bill continues the military contracting preference for Native American tribes and Native Hawaiian Organizations. Case’s Appropriations Committee is responsible for allocating some $1.7 trillion in funding to federal government agencies, departments and organizations on an annual basis. A detailed summary of the FY 2023 omnibus is available here. ###
|
