So what might change under a Biden administration?
The top priority will be a COVID-relief stimulus bill, which might even happen before Inauguration Day. The idea has bipartisan support; however, Democrats and Republicans have so far not been able to agree on a dollar amount. That could change now that Election Day has passed.
“After the dust settles, I am cautiously optimistic that the Senate can work with the House of Representatives to get something done,” says Reagan Anderson, a senior vice president on Capital Group’s government relations team. “In my estimation, there is bipartisan support for roughly $1 trillion in spending, which is half the size of the previous relief bill, but it’s probably a compromise that Republican and Democratic leaders can live with.”
Other Biden administration priorities may include a modest infrastructure spending bill, immigration reform and drug pricing reform — all of which have some level of Republican support. The environment and climate change probably will move front-and-center, as well, including policies to encourage green investing and more disclosure related to environmental, social and governance (ESG) matters.
On the other hand, as long as Congress remains split, specific tax policy proposals are not likely to see the light of day, including corporate and individual income tax increases, a capital gains tax hike and a financial transactions tax.
“We also expect no change to the Senate filibuster or to the number of justices on the Supreme Court, both of which became hot-button issues during the campaign,” Anderson adds.