The R&D Credit, Tax Return Backlog, and Russian Energy Imports

Tax Policy:

March 4: IRS to hire 10,000 in attempt to cut tax returns backlog

The Internal Revenue Service intends on hiring 10,000 employees in an effort to address a backlog of nearly 24 million tax returns, the majority of which are from the 2020 tax season, The Washington Post reported, citing four people familiar with the plan. One person familiar with the plan told the Post said that 80 types of positions, ranging from tax attorneys to entry-level clerical workers, will have their recruiting sped up. The people familiar told the newspaper that the agency is looking for technology professionals who can help update the infrastructure at the IRS, among other roles that the agency seeks to recruit for.

The Post's reporting follows another report that the newspaper published last month, which found that the IRS had a backlog of close to 24 million tax returns.

In a letter to members of Congress in February, IRS Commissioner Chuck Rettig explained that the agency had been battling a number of challenges, including a lack of funding to train and maintain staff and a lack of investment to improve their technology.

"The IRS pursued significant actions during the 2021 filing season to address the return and correspondence inventory. But, because the IRS lacked the resources it needed to reduce inventory to a healthy level, we are entering the filing season with a significant inventory of unprocessed returns and correspondence," Rettig wrote to lawmakers. The development comes over a month before the tax-filing deadline for the 2021 tax season.

March 3: Limits On 'Orphan Drug' Tax Credit Face Pushback In Senate

A House-passed proposal would make the orphan drug tax credit unavailable to cover the cost of further clinical testing after a drug or biological product has received FDA marketing approval for its first use. House Democrats have advocated limiting the tax credit for the development of orphan drugs - prescription medicines used for rare diseases or conditions - as a way to finance green energy tax breaks and family incentives in the House-passed Build Back Better Act, H.R. 5376.

The plan would stop the credit under Internal Revenue Code Section 45C from being used to cover the cost of further testing after the U.S. Food and Drug Administration approves an orphan drug for any disease or condition. Supporters of the plan have argued the proposed limits are needed to encourage drug companies to develop new orphan drugs rather than using the incentive to find new uses for FDA-approved ones.

Supporters of the proposal said it would address concerns raised by the U.S. Government Accountability Office in a 2018 study, which found 38.5% of the FDA's orphan drug marketing approvals between 2008 and 2017 were for drugs previously approved for other rare or nonrare diseases.

The GAO study said some stakeholders were critical of drugmakers for obtaining multiple orphan designations for a drug "When the drug may otherwise be profitable from treating multiple patient groups." The FDA has approved more than 600 orphan drugs to treat rare diseases since the credit was enacted as a temporary incentive in the 1983 Orphan Drug Act. In the Senate, the Finance Committee included limits on the orphan drug credit similar to those developed in the House in a draft tax package for inclusion in the Senate version of the BBB Act.

March 2: Firms hope Congress will delay R&D tax and accounting changes

On Wednesday, a group of officials from RSM US LLP sent a letter to leaders in Congress explaining their concerns, co-signed by a list of leaders from other companies and accounting firms like Mauldin & Jenkins, PBMares, Sax, and HMA CPA. KPMG has also been warning recently about the impact on life sciences companies in particular.

"Until it becomes clearer that Congress will repeal or delay the TCJA changes to R&D deductions, companies should begin to assess and model the potential impact of these changes from both a cash tax and ETR perspective. Unfortunately, if recent history tells us anything, many tax bills come out at the very end of the calendar year as a 'holiday surprise.' Further, companies may want to consider the possibility of an increase in the corporate tax rate, which would have a more costly impact on delayed R&D deductions than anticipated." The issue goes beyond the life sciences industry.

"It's got very broad application. The fact of the matter is because software development is now included in what would otherwise be termed R&D for purposes of mandatory capitalization, this provision really does extend to basically all industries that you can think of." The life sciences industry, including biopharmaceuticals companies, are especially focused on the issue, however.

"R&D is one of the single largest expense items on a life science company's income statement," said Kachinsky.

"Build Back Better included a provision to defer the effective date of R&D mandatory capitalization that was instituted as a result of the TCJA." With the Build Back Better Act currently in limbo, the TCJA requirements are now set to take effect, prompting angst in the life sciences and other industries.

"Build Back Better did not pass by December 1, and therefore, the mandatory capitalization provision did come into effect," said Kachinsky.

"Recognizing the well-grounded basis tax policy and intent underlying the treatment accorded these costs under prior law, Congress should make research costs deductible again as soon as possible. As you are no doubt aware through formal commentary and other previous efforts to address this issue, full expensing of research and experimental cost enjoys broad bipartisan support. Those of us now confronting the implications of the current law certainly share this view and strongly support the inclusion of section 174 legislation in any upcoming legislative vehicle to which it can be attached. While there is a cost to reinstating full deductibility, the cost of not doing so would surely be greater."

March 2: Major corporations make a last-ditch push for the R&D tax break

Some of the largest U.S. companies are pressing congressional leaders to restore a more generous tax break for research and development in the delayed spending package for fiscal 2022. Lawmakers welcomed the push, and some expressed support for addressing the issue as soon as possible, particularly given a mid-April tax deadline that could cost companies $8 billion.

The omnibus appropriations package would be the quickest avenue with Congress facing a March 11 government funding deadline. Citing Joint Committee on Taxation data, the companies said their estimated taxes for the first quarter would be $8 billion higher if Congress doesn't act in time, reducing cash flow and putting jobs and investment at risk.

Through Sept. 30, the total tax bill would rise to $29 billion. Companies could deduct what they spent on research and development immediately from their taxable income. As of this year, they must gradually write off the expenses over five years, a change that was part of Republicans' 2017 tax overhaul.

Build Back Better Act/Spending Bill: 

March 4: Democrats frustrated with latest Manchin pitch on Build Back Better

Senate Democrats are feeling exasperated with Sen. Joe Machin's latest proposal on a scaled-down version of 's Build Back Better agenda that would leave out big social spending initiatives like expanded child care, universal pre-kindergarten, national paid family leave, and long-term home health care.

“If he wants to focus on an economic package, then he needs to remember child care is an economic issue,” said Sen. Elizabeth Warren (D-Mass.) when asked about Manchin’s pared-down proposal.  “We have many, many, many parents at home today because they cannot get child care. We have people who can’t work in the child care industry because they don’t make a living wage,” she added. “If we want to have an economy that’s firing on all cylinders, we want people to be able to go back to work.”

"Let me point out, that affects inflation. When you don't have enough workers, then prices go up," she argued in response to Manchin's concern about rising prices, which he has cited as a major reason not to pass Biden's Build Back Better agenda.

He shrugged off Biden's efforts Tuesday to revive the key elements of his Build Back Better agenda, such as spending hundreds of billions of dollars to reduce child care costs and establish universal pre-kindergarten.

Some Democrats say they are growing tired of the back-and-forth with Manchin, which has dragged on for months, leaving them deeply frustrated over their inability to strike a deal.

Sen. Bernie Sanders, who has clashed most directly with Manchin and even says he's open to supporting a primary challenger against his colleague, was in no mood to talk about Manchin's latest idea for a dramatically scaled-down budget reconciliation package. "I don't care what he wants," Sanders told reporters when asked about Manchin's latest pitch.

Sen. Kirsten Gillibrand on Thursday said she will try to convince Manchin that funding for expanded child care, pre-kindergarten, and a national paid family leave program shouldn't be left out of whatever budget reconciliation package Democrats might put together later this year.

Economic News/Policy: 

March 6: Economy Week Ahead: Trade, ECB, Inflation

U.S. inflation data highlights this week's docket of regularly scheduled economic releases.

Official reports won't yet fully capture the growing economic fallout from Russia's invasion of Ukraine, which has pushed up prices for energy and other commodities and threatened a broader supply shock.

The U.S. trade deficit hit a record last year, underscoring both strong domestic demand and dependence on overseas suppliers.

Economists are forecasting another record monthly trade gap in January as American consumers kept spending, businesses worked to replenish inventories and inflation pushed prices to new heights.

March 5: White House hopes for light at the end of its tunnel

The White House is hopeful for a rebound after a strong week, with bipartisan support for backing Ukraine, a strong jobs report, COVID-19 restrictions eased and the confirmation process for its Supreme Court nominee underway. Forty-seven percent of Americans surveyed after that speech said they approve of the job Biden is doing as president in the latest NPR-PBS NewsHour-Marist National Poll, up from only 39 percent in the same poll last month.

"The American people saw this week that President Biden is delivering on his promises. He announced a historic Supreme Court nominee, proved that he has rebuilt relationships with international partners and allies, and presided over strong job growth," said Sen. Chris Coons (D-Del), a close Biden ally. "On Tuesday night, we heard a clear and forceful argument from President Biden about where we are as a country and his vision to address the challenges we face at home and abroad, and I believe it's a vision that working Americans support," he added.

White House chief of staff on Wednesday predicted approval ratings will rise if inflation improves and if COVID-19 cases continue to decrease. Biden stirred up unity among U.S. lawmakers and allies while discussing the situation in Ukraine, saying at the State of the Union that the Russian President tried to "Divide us at home" but had failed. The White House is also optimistic about a potential no-drama confirmation process for Biden's Supreme Court nominee, Judge Ketanji Brown Jackson, who was on Capitol Hill meeting senators this week.

March 4: Economy adds solid 678K jobs in February, unemployment dips to 3.8 percent

The U.S. added 678,000 jobs and the unemployment rate dropped to 3.8 percent in February, according to data released Friday by the Labor Department. Economists expected the U.S. to add roughly 400,000 jobs last month, far less than the actual haul in the February jobs report, and push the jobless rate to 3.9 percent.

The Bureau of Labor Statistics said the U.S. saw "Widespread" job growth in February led by a surge in service sector hiring - a promising sign for industries still recovering from the onset of the pandemic.

Leisure and hospitality employment rose by 179,000 jobs in February, led by a gain of 124,000 jobs in restaurants and bars. While the labor force participation rate stayed flat, the February jobs report showed other signals of labor shortages easing and more Americans returning to the workforce.

"With the Omicron wave receding rapidly, the labor market has unlocked faster jobs growth. Additionally, employer demand for workers exceeds labor supply significantly, which is likely to keep jobs growth healthy even if demand slows amid disruptions from the war in Ukraine and rising interest rates in coming months," said Daniel Zhao, senior economist at Glassdoor. "Ultimately today's jobs report helps build confidence in the resilience of the recovery and its ability to continue driving jobs growth despite unanticipated headwinds."

Ukraine Crisis/Russia’s Economic Impact: 

March 8: Higher Vehicle, Energy Imports Push January U.S. Trade Deficit to New Record

The U.S. trade deficit hit a fresh record in January ahead of the Russia-Ukraine crisis, as imports of vehicles and energy supplies increased while exports fell. The rise in imports reflected strength in U.S. consumer demand, said Stephen Stanley, chief economist at Amherst Pierpont.

He added that the Russia-Ukraine crisis and strengthening U.S. dollar could push import totals higher in the months ahead. The Biden administration is planning to ban Russian oil imports into the U.S. Sanctions on the Russian economy come at a time in which inflation and gas prices are already at multi-year highs, and further trade disruptions are likely to push prices higher still.

The widening of the deficit in January reflected a pickup in demand for foreign-made imports as businesses restocked shelves, but demand for U.S. exports weakened. Imports increased 1.2% in January, led by shipments of foreign-made vehicles, industrial supplies including crude oil and natural gas, food, and capital goods like telecommunications equipment.

The coronavirus pandemic initially closed factories and businesses around the world and disrupted supply chains, but international trade roared back last year, repeatedly pushing the U.S. trade deficit to record levels. The U.S. imported about $29.7 billion in goods from Russia in 2021, ranking it 19th among U.S. import partners-just behind Brazil and ahead of Singapore, according to Census Bureau data.

March 8: Oil prices rise with Biden poised to halt imports from Russia

Stocks were unsteady on Tuesday and oil prices continued to climb as Western lawmakers considered ways to further isolate Russia from the global economy. In addition to energy, Russia is a big producer of staples like wheat, aluminum and palladium, which is used in cars and phones - and prices of those commodities have been soaring.

On Tuesday, the London Metal Exchange suspended trading in its nickel market after the three-month price briefly soared above $100,000 per metric ton, more than double the previous day's price. The exchange said it was considering a "Multiday closure" of the nickel market, "Given the geopolitical situation which underlies recent price moves." Nickel is used to making steel and electric car batteries, and Russia is an important source.

Monday's closing price of $48,078 was itself 66 percent higher than Friday. On Tuesday, nickel last traded at $80,000 but the London Metal Exchange canceled all trades from the morning before the trading suspension. The S&P 500 fell slightly in early trading, a day after it dropped 3 percent, its steepest decline since October 2002.The Stoxx Europe 600 rose 0.3 percent, halting three consecutive days of losses.

March 7: Stocks extend their rout as the Ukraine war and its economic fallout intensify

"We are now in very active discussions with our European partners about banning the import of Russian oil to our countries while, of course, at the same time, maintaining a steady global supply of oil," Mr. Blinken said on Sunday on "Meet the Press" on NBC. A precipitous drop in oil and natural gas supplies from Russia would create major problems for both industrial users and consumers.

Cutting off Russian oil would force many refineries that normally process it to find other sources. Although oil is a relatively flexible commodity, there are many grades of crude, and a refiner cannot always substitute one for another. Washington's sanctions on Venezuelan crude led refiners in the United States to buy more Russian oil as a substitute, raising import levels.

On Saturday, Shell, Europe's largest oil company, said it had bought Russian crude oil because supplies from "Alternative sources would not have arrived in time to avoid disruptions to market supply."

Investors had already been nervous about inflation, which has been the highest in decades in the United States and Europe after the pandemic shut factories and left supply chains snarled. Natural gas is less flexible than oil, and Europe is much more dependent on it as a fuel.

March 7: Democrats make 'global offer' on government funding, Ukraine, COVID-19 aid

The Senate Majority Leader on Monday said that Democrats had made a "Global offer" as Congress tries to wrap up government funding negotiations by a Friday night deadline. "Democrats have made a reasonable global offer to Republicans and it is my hope that we will reach an agreement very soon so that we can meet the March 11 government funding deadline," Schumer wrote in a "Dear Colleague" letter.

In addition to government funding, the massive bill is expected to include billions in new military and humanitarian assistance to address Russia's invasion of Ukraine. House Speaker, in a letter to her caucus over the weekend, said that the administration had requested $10 billion to aid Ukraine and that "Congress intends to enact this emergency funding this week as part of our omnibus government funding legislation."

"We have been working on a bipartisan, bicameral basis through the weekend to finish work on an omnibus package that includes robust assistance to the people and government of Ukraine and additional funds to ensure our country is prepared if and when the next COVID variant strikes," Schumer wrote in the letter.

A group of conservatives is demanding a vote on defunding Biden's vaccine mandates in exchange for speeding up any government funding legislation.

"We are writing to let you know that we will once again not consent to a time agreement that eases the passage of a CR or Omnibus that funds these mandates," the group, led by Sen. Mike Lee, wrote.

March 7: Congress moves to bar Russian energy imports and end favorable trade relations

A bipartisan group of lawmakers said on Monday that they would move forward with legislation that would ban imports of Russian energy into the United States and suspend normal trade relations with Russia and Belarus in response to the invasion of Ukraine. The legislation is aimed at inflicting further financial pain on Russia and Belarus, which has been aiding the conflict, by cutting off Russia's oil exports into the United States and giving President Biden the ability to increase tariffs on products from both countries. The legislation would also require the Office of the United States Trade Representative to seek Russia's suspension from the World Trade Organization and try to halt Belarus's attempt to join the global trade body.

"As Russia continues its unprovoked attack on the Ukrainian people, we have agreed on a legislative path forward to ban the import of energy products from Russia and to suspend normal trade relations with both Russia and Belarus," the lawmakers said in a statement. House Democrats said on Feb. 25 that they were introducing a bill to revoke permanent normal trading relations with Russia, a move that would cause the average tariff the United States applies to Russian goods to rise to about 33 percent from 3 percent.

U.S. trade with Russia is limited: Russia ranked 20th in terms of global suppliers of goods to the United States in 2019, sending mainly fuels, platinum and other metals, iron, fertilizer, and chemicals. Congress has the authority to revoke preferential trading relations, but it's unclear whether the United States and Europe would be able to force Russia out of the W.T.O. The 164-member trade body is designed to function on consensus and typically requires approval from all its members.

March 7: Switzerland joined in sanctions, but Russia’s oil, metals, and grains still trade there

Switzerland is one of the world's major hubs for trading commodities, and the government estimates 80 percent of Russia's raw material and resources, such as oil, metals, and grains, are traded in Switzerland, making the Alpine nation central to the sale of Russian exports. Although the country closely adopted the European Union's sanctions on banking and trade, commodities trading has been allowed to continue.

Oliver Classen, a spokesman for Public Eye, nonprofit campaigning for greater oversight of the commodities market, said that trading occurred in Switzerland with "Mild to no regulation," making it hard to know who the people were behind the companies involved in the trades and deals.

While Russia's commodities trading is permitted to continue, Swiss bankers and lenders have essentially already curtailed it. Global banks are bracing for the effects of sanctions intended to restrict Russia's access to foreign capital and limit its ability to process payments in dollars, euros, and other currencies crucial for trade.

"Some banks are not willing to finance trade with Russia at the moment," said Florence Schurch, secretary-general of the Swiss Trade and Shipping Association. Ms. Schurch said banks' restrictions had made it difficult for trading companies to open new trades involving commodities from Russia.

March 7: Banning Russian oil would hit US prices hard

The U.S. could survive cutting off Russian oil and gas imports over Moscow's invasion of Ukraine, but it would almost certainly strike a massive financial toll. Oil prices are already skyrocketing, and the Brent crude oil international benchmark hit a 13-year high of $139 per barrel on fears of a ban after the Secretary of State said the U.S. was engaging in an "Active discussion" about the possibility.

Russia is one of the world's largest oil producers, with a 12 percent global market share, according to a Friday analysis from JPMorgan. Prior to the invasion of Ukraine, Russia was exporting about 6.5 million barrels daily, of which 4.3 million barrels per day were going to Europe and the U.S. The U.S. was importing about 600,000 to 800,000 barrels from Russia daily - or about 8 percent of the country's supply of crude oil and petroleum products.

Another option to take the pressure off a ban on Russian oil would be to increase U.S. shale production, although that growth would be limited by the necessary labor and infrastructure demands, according to the JPMorgan analysis.

"Saudi Arabia is famously known for having the cheapest, sweetest crude oil - it takes the least amount of additional refining, very cheap to process, and it's very cheap to get out of the ground," Gernot Wagner, a climate economist and visiting professor at Columbia Business School, told The Hill. Bazilian described as "Deeply flawed" the notion that cutting off Russian oil could lead to "Energy independence."

March 6: Biden Caught Between Inflation And Calls To Ban Russian Oil

President Biden is caught between conflicting demands that he tame rising consumer prices while banning Russian oil imports to punish Moscow for invading Ukraine, a sanction that would threaten even more inflation and raise pressure on allies with more dependence on oil imports.

The U.S. said on Sunday it is in active discussions with allies about a ban.

Those talks come as the Biden administration has faced criticism for months over inflation levels that have reached 40-year highs, driven by surging demand, supply chain constraints, and labor shortages.

Rising energy costs are also among the biggest contributors to higher consumer prices, with oil, gas, and other commodity prices soaring to the highest levels in years.

March 5: Russia's Ukraine Invasion Could Be A Global Economic 'Game Changer' 

Russia's invasion of Ukraine and the financial reckoning imposed on Moscow in response are proof that the triumphant globalization campaign that began more than 30 years ago has reached a dead end. The International Monetary Fund warned Saturday that the war and rapidly accumulating sanctions on Russia would "Have a severe impact on the global economy."

Together, Russia and Ukraine account for 3 percent of global output, according to JPMorgan Chase. "There's a chance - which increases with every human rights outrage that Putin commits - that Russia is shut out of the global economy for a long time. You are removing this big chunk of the global economy and going back to the situation we had in the Cold War when the Soviet bloc was pretty much closed off," said Maury Obstfeld, an economics professor at the University of California at Berkeley.

After the Soviet Union ceased to exist in December 1991, Russia embarked on a helter-skelter series of economic reforms, including the establishment of the country's first stock market, and welcoming foreign investors.

Remittances from migrant workers from Central Asia who work in Russia make up about 30 percent of the economy in both the Kyrgyz Republic and Tajikistan and are almost certain to plummet as Russia plunges into a deep recession and the ruble sinks.

Total U.S. two-way trade with Russia and Ukraine last year amounted to $40 billion, and Wall Street banks have less than $15 billion at stake in loans to Russian borrowers.

March 5: The IMF must ensure that Russia cannot access its financial lifeline

In contrast to the IMF's and the World Bank's general practice of conditioning assistance on policy, fiduciary and economic management parameters to ensure that funds are spent as intended, there are essentially no restrictions on how IMF members can use SDRs. We recently warned that the immediate negative consequences of the latest SDR allocation outweighed its hypothetical benefits and that the World Bank's International Development Association was a better vehicle for channeling aid to the world's poorest countries.

The Trump administration opposed an SDR allocation because it must be distributed to all IMF members in proportion to their IMF shareholding, rather than targeted based on need. Increasing pressure on the Russian economy requires vigilance against all potential Russian financial resources, including SDRs. Using SDRs requires finding an IMF member counter-party with which to trade.

The United States should still work to ensure a formal agreement with the IMF that all member countries will refuse to exchange Russia's or Belarus's SDRs for hard currency or engage in any other financial transaction related to their SDRs. As the conflict moves into a protracted phase, there will be sanctions fatigue on both sides.

As a preventative measure, it is critical to establish a default rule at the IMF that Russia and Belarus will not be able to use their SDRs without ending their aggression. On-background statements regarding the Treasury Department's intent to prevent Russia from using its SDRs are helpful, but the United States should leverage international outrage over Russia's behavior to formally establish such a prohibition at the IMF. Additionally, the IMF should commit to immediate transparency regarding Russian or Belarusian SDR exchanges, even if an IMF member such as China refuses to abide by a prohibition on transfers.

As a result of the bipartisan consensus on the need to respond to Russia's aggression through economic pressure, Congress, led by Rep. French Hill and Sen. Bill Hagerty, is rightfully demanding an accounting from the Treasury Secretary of how the Biden administration plans to work with the IMF to ensure that Russia is unable to benefit from its SDRs. Congressional progressives should abandon their misguided push for the IMF to allocate an additional $2.1 trillion in SDRs. Most importantly, Congress should review the Special Drawing Rights Act and consider whether to require congressional approval for all SDR allocations given these latest developments.

Government Funding: 

March 6: Ukraine crisis adds pressure to spending talks

Pressure is ratcheting up on congressional negotiators to finalize talks for a sprawling government funding package by a looming shutdown deadline next week, as lawmakers on both sides of the aisle advocate for emergency aid for Ukraine in response to Russia's ongoing invasion. Democratic leaders have announced plans to attach supplemental funding for humanitarian and military assistance for Ukraine to a larger spending omnibus package to fund the government through the rest of the fiscal year, calling it the quickest vehicle to greenlight the billions in spending.

The push, lawmakers say, tacks even more pressure on Congress to wrap up work on government funding legislation in time for a March 11 deadline, after the cutoff date was previously pushed back several times to buy negotiators more time for spending talks. Members say the ongoing crisis in Ukraine also adds greater urgency to update spending levels for agencies like the Department of Defense and State Department to boost national security and bolster resources to meet future needs.

"The money for Ukraine is not just in the supplemental. It's also in the underlying DHS and DoD and Department of State budgets. So, to put those agencies on a continuing resolution in the middle of this crisis would be malpractice," Murphy told The Hill.

Others have also pushed back on the strategy to attach Ukraine to the omnibus, particularly given the challenges lawmakers have faced in finding common ground in spending talks since last year. Democrats have insisted the omnibus is the fastest vehicle to pass the Ukraine aid, while also doubling down on calls for additional COVID-19 funding as a necessary investment in the nation's ongoing pandemic response.

March 4: Senate conservatives threaten to hold up government funding over vaccine mandate

A group of 10 Senate conservatives led by the Republican Steering Committee Chairman is threatening to hold up a government-funding measure and possibly trigger a federal shutdown unless they can vote on an amendment to defund 's COVID-19 vaccine mandates. Lee and nine other Senate Republicans circulated a "Dear Colleague" letter Friday afternoon threatening to object to procedural requests to speed up the passage of a funding bill before the March 11 deadline unless leaders allow them to vote on an amendment to defund the Biden administration's vaccine mandates for medical workers, military personnel, federal employees and federal contractors.

"At the very least, we will require a roll call vote on an amendment that defunds the enforcement of these vaccine mandates for the spending period covered by the government funding measure." The senators noted that while the Biden administration recently rescinded an Occupational Safety and Health Administration COVID-19 vaccine mandate for large employers following an adverse decision by the Supreme Court, the mandates for medical workers, military personnel, and federal employees and contractors remain in place.

"These COVID-19 vaccine mandates amount to serious abuse of both federal power and executive authority. They also further strain the economic and social pressures our society currently faces, while completely ignoring existing evidence-based data on natural immunity from previous COVID19 infection," the senators wrote.

Also on Friday afternoon, a group of nearly 40 House Republicans sent a letter to Senate Minority Leader and House Minority Leader announcing they will oppose "Any federal government funding measure that funds the enforcement of COVID-19 vaccine mandates." "So far, Congress has not leveraged the full"power of the purse" to end the COVID-19 vaccine mandates that continue to harm tens of thousands of Americans - most notably our medical workers, military personnel, and federal workers such as Border Patrol," they wrote.

For Fun: 

March 7: Researchers Discover How the Human Brain Separates, Stores, and Retrieves Memories

This finding improves our understanding of how the human brain forms memories and could have implications in memory disorders such as Alzheimer's. "This work is transformative in how the researchers studied the way the human brain thinks," said Jim Gnadt, Ph.D., program director at the National Institute of Neurological Disorders and Stroke and the NIH BRAIN Initiative.

This study, led by Ueli Rutishauser, Ph.D., professor of neurosurgery, neurology, and biomedical sciences at Cedars-Sinai Medical Center in Los Angeles, started with a deceptively simple question: how does our brain form and organize memories? We live our awake lives as one continuous experience, but it is believed based on human behavior studies, that we store these life events as individual, distinct moments.

What marks the beginning and end of a memory? This theory is referred to as "Event segmentation," and we know relatively little about how the process works in the human brain. They looked at how the patients' brain activity was affected when shown film clips containing different types of "Cognitive boundaries"-transitions thought to trigger changes in how a memory is stored and that mark the beginning and end of memory "Files" in the brain.

One analogy to how memories might be stored and accessed in the brain is how photos are stored on your phone or computer. These findings provide a look into how the human brain creates, stores, and accesses memories.