2/24 Torchbearer Weekly Policy Update
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 USPS delays spark concern- 1 big thing:  Medicaid's hatchet man
- Tariff impact on Indiana
- Where unemployment is rising and falling
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- Important Dates
 USPS delays spark concern
 Medicaid's hatchet man📬 USPS delays spark concern
Rep. Jefferson Shreve, along with Indiana's congressional delegation, has called on the U.S. Postal Service to address delays at its Indianapolis hub.
Why it matters:Â USPS delays are impacting residents and businesses in Central Indiana, with reports of late deliveries of medications and important documents.
- The bipartisan call to action underscores the significance of timely mail services for critical needs.
Former USPS employee's insight:Â A former employee described chaos within the new facility, highlighting operational challenges.
- Lawmakers demand a detailed explanation of the causes and steps to resolve these issues.
Details: The letter sent to USPS Postmaster Louis Dejoy was signed by all members of Indiana’s delegation, showcasing a bipartisan effort.
- The delays have affected the delivery of crucial items like medications and financial documents, raising public concern.
- The call for action illustrates the importance of USPS in ensuring reliable mail service across Indiana.
What’s next: The delegation awaits a response from USPS detailing how they plan to address these delays.
- A focus on improving operational efficiency at the Indianapolis hub is expected to be a priority. (Fox 59)
1 big thing: 🪓 Medicaid's hatchet man
Rep. Brett Guthrie's (R-Ky.) crusade to revamp Medicaid stretches back to his days as a state legislator. He's about to get his best chance.
Why it matters: The new Energy and Commerce chair has been given the lion's share — $880 billion — of at least $1.5 trillion in spending cuts for Speaker Mike Johnson's budget reconciliation package.
Zoom in: Guthrie's quickest path to $880 billion is to revisit an idea blocked by the late Sen. John McCain in 2017 — a "per capita cap" on federal funding for state Medicaid programs.
- Per capita caps would likely result in less money for states, forcing them to make up the difference by raising taxes or cutting spending elsewhere.
- "I dealt with it. That's why I care about this. ... It just overwhelmed state budgets," Guthrie told us of his experience in the Kentucky Statehouse.
But cutting Medicaid has real political risks: Johnson himself stated this week that "Medicaid has never been on the chopping block."
- President Trump recently said he didn't want people's Medicaid benefits "affected" and instead wanted to target "abuse or waste" in the program.
- And House GOP moderates are warning they could have issues with voting for deep Medicaid cuts.
The bottom line:Â "I've always said that we need to reform Medicaid, even if it wasn't part of reconciliation, because the program is unsustainable," Guthrie told us.
- "It depends on what we can get 218 votes for." (Axios)
Tariff impact on Indiana
The recent tariffs imposed by the Trump administration have sparked significant economic discussions, particularly affecting Indiana's manufacturing sector.
Why it matters:Â Indiana is highly vulnerable to tariff-induced disruptions due to its manufacturing-heavy economy.
- Tariffs on imports from Mexico, Canada, and China could lead to higher prices and supply chain challenges.
- Indiana's top export partners are directly affected by these tariffs.
Expert insights:Â Economists warn of increased costs and complexities for businesses.
- Michael Hicks from Ball State highlights Indiana's high risk due to its reliance on imported manufacturing inputs.
- David Hummels from Purdue suggests potential benefits for firms competing with imports, but stresses the overall uncertainty.
Industry response:Â Companies are strategizing to mitigate tariff impacts.
- Cummins plans to pass cost increases to customers, while Kimball Electronics considers shifting production.
- The Indiana Manufacturers Association expresses concern over the auto sector's exposure.
The bottom line:Â While some see opportunities in Trump's tariff policies, the broader outlook suggests increased economic uncertainty and potential disruption in Indiana.
Additional details:
- Subaru of Indiana Automotive in Lafayette, employing 6,500 workers, is among the manufacturers monitoring the situation closely.
- The National Association of Manufacturers notes that manufacturing accounts for 18% of Indiana's workforce and 26% of its GDP.
- Industries like pharmaceuticals, automotive, and steel are particularly sensitive to these trade changes, with the potential for ripple effects across the economy. (Indianapolis Business Journal)
Where unemployment is rising and falling
Over two-thirds of U.S. metros ended 2024 with higher unemployment compared to a year prior, per recent Labor Department data.
Why it matters: The big national unemployment picture is one thing. The hiring climate in specific cities is sometimes another.
Driving the news: The unemployment rate was higher in December 2024 compared to December 2023 in 266 of 389 metro areas, according to the latest U.S. Bureau of Labor Statistics data.
- Put another way, nearly 70% of metros ended 2024 with higher unemployment compared to how they began the year.
- Unemployment dropped in 95 metros and held steady in 28 others.
Zoom in:Â Dalton, Georgia (+3.5 percentage points); Asheville, North Carolina (+2.6); and Muskegon, Michigan (+2.1), had the biggest increases in metro-level unemployment.
- Kahului, Hawai'i (-2.2); Waterbury, Connecticut (-1.7); and Bridgeport, Connecticut (-1.4), had the biggest decreases.
Caveat:Â These figures are not seasonally adjusted.
The intrigue:Â Many of the worst-performing metros are in Michigan, perhaps due at least in part to a nearly 2% decrease in statewide manufacturing jobs in December 2024 compared to a year prior.
The big picture: The latest national-level jobs data showed "solid hiring" in January, as Axios' Courtenay Brown reports: The economy added 143,000 jobs, while the unemployment rate dropped to 4%.
What's next:Â Metro-level unemployment data for January is due out early next month. (Axios)
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Important Dates:
February 24th - 28th - Crossover Break (no session)
Thursday, April 10th - House and Senate Committee Report Deadline
Monday, April 14th - House and Senate Second Reading Deadline
Tuesday, April 15th - House and Senate Third Reading Deadline
April 16th - April 24th - Conference Committees
Thursday, April 24th - Anticipated Sine Die
Tuesday, April 29th - Sine Die