The U.S. is once again staring down the threat of a national rail shutdown that would block the flow of goods in the middle of the holiday season. We’ll also look at Republican divides over Ukraine aid and how long you need to work to pay your rent.
But first, check out the annual turkey pardon.
Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. For The Hill, we’re Sylvan Lane, Aris Folley and Karl Evers-Hillstrom. Someone forward you this newsletter? Subscribe here.
Rail union rejects deal, readies for December strike
Members of a key rail union voted to reject a tentative contract agreement negotiated by the Biden administration, raising the risk of a strike that would shut down the nation’s railroads.
Train and engine workers at the Sheet Metal, Air, Rail and Transportation Workers’s transportation division (SMART-TD) narrowly voted down the deal, the union announced Monday.
- The vote sets the stage for a walkout in early December, in the middle of the holiday shopping season that demands increased shipping volume.
- Railroads transport around one-third of U.S. freight, including large amounts of food, packaged goods, fuel and car parts that can’t be shipped by other means.
- Workers are demanding better pay, more reliable schedules, stronger safety standards and the ability to take time off if they are sick or have a doctor’s appointment.
Congress will likely step in: Labor leaders expect lawmakers to use their authority to block a strike and enforce the terms of the deal the Biden administration negotiated in September. But they will probably wait until the last minute to give the parties a chance to reach a deal. That would prompt railroads to scale back their services one week before the strike date, leading to shipping delays and a shutdown of commuter rail.
Karl has the story here.
BUDGET BATTLE?
Divided GOP tiptoes on Biden request for more Ukraine aid
Republicans are tiptoeing around a recent request from the Biden administration for billions in Ukraine aid, as the party faces internal divisions on the path forward for assistance.
The White House last week asked Congress for more than $37 billion in additional assistance for Ukraine amid Russia’s ongoing invasion. While some Republicans say they’re supportive of the amount, many more have been cautious to take a position just yet.
- Lawmakers are considering attaching Ukraine funding to must-pass government funding legislation during the lame-duck session.
- Republicans are divided over whether to delay larger decisions around new funding into next year to allow the next Congress more say on how the government should be funded for fiscal year 2023, which began in October.
- There is adamant support from both parties to pass aid for Ukraine during the lame-duck period, particularly as uncertainty swells around whether a GOP House could impede funding next year.
Aris Folley has more here.
WORKING OVERTIME
Here’s how many hours Americans need to work to make rent
American workers earning average wages need to put in more hours than before the pandemic to afford rent as monthly rental costs have far outstripped earnings.
A new report from Zillow revealed that workers nationwide making an average hourly wage must work close to 63 hours before earning enough to cover typical monthly rents that average $2,040.
- This is about six hours more than was needed prior to the pandemic.
- Over the past five years, rents have increased by about 37 percent while wages have grown by 23 percent over the same period.
Adam Barnes has more here.
PUMP THE BRAKES
Saudi Arabia denies report it is discussing oil production increase
Saudi officials on Monday denied reports the kingdom is backtracking on planned cuts to oil production after The Wall Street Journal reported Riyadh is mulling an increase.
“It is well known, and no secret, that OPEC+ does not discuss any decisions ahead of its meetings,” Energy Minister Prince Abdulaziz bin Salman said Monday through state news agency SPA. “The current cut of 2 million barrels per day by OPEC+ continues until the end of 2023 and if there is a need to take further measures by reducing production to balance supply and demand, we always remain ready to intervene.”
The Hill’s Zack Budryk tells us what it could mean for oil prices.
Good to Know
The collapsed cryptocurrency exchange FTX owes more than $3 billion to its
50 biggest creditors, according to new court filings.
The vast sum includes more than $1 billion that FTX owes to its top 10 creditors. The company said it is still reviewing information and may have to update the list.
Other items we’re keeping an eye on:
- The Office of Congressional Ethics found there is “substantial reason to believe” Rep. Carolyn Maloney (D-N.Y.) improperly solicited an invitation to the Metropolitan Museum of Art’s Costume Institute Benefit, commonly known as the Met Gala, potentially in violation of House rules and federal law on solicitation of gifts.
- NFL games attended by fans during the 2020-21 season were linked with increased COVID-19 case rates in the counties where they were held, and in those surrounding the stadiums.
That’s it for today. Thanks for reading and check out The Hill’s Finance page for the latest news and coverage. We’ll see you tomorrow.