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Republicans Are Worried that Trump’s Scandals May Hurt Their Legislative Agenda

May 18, 2017

Scandals enveloping U.S. President Donald Trump have left Republican lawmakers and lobbyists increasingly gloomy about the prospects for passing sweeping tax cuts, a rollback of Obamacare and an ambitio us infrastructure program.

With the White Ho us e and both chambers of the U.S. Congress under Republican control, party leaders and their allies in the b us iness community had expected to get quick traction on their plans, with corporate tax cuts among the top priorities.

But four months into Trump's tenure, only limited progress has been made. The Ho us e of Representatives passed a measure to rewrite Obamacare, but the Senate is only in the very early stages of considering the issue. Lawmakers are j us t beginning their p us h on tax reform.

In addition to congressional probes that are taking place into possible coll us ion between Trump's 2016 campaign team and R us sia, the U.S. J us tice Department on Wednesday named former FBI Director Robert Mueller to investigate the matter.

“It’s the elephant in the room right now,” said Republican Representative Pat Tiberi. “The smartest minds in the White Ho us e know that, whether it’s tax reform or anything else on the public policy front. It’s hard enough to get things done in the U.S. Capitol under the best of circumstances.”

The Ho us e Ways and Means Committee will hold a hearing on tax reform on Thursday. Key administration and congressional leaders met Wednesday afternoon to disc us s a path forward. But they remain a long way from signing a bill into law.

Senate Majority Leader Mitch McConnell said on Tuesday that “less drama from the White Ho us e” was needed to advance legislative priorities.

Republican Senator Lindsey Graham told reporters on Wednesday that the legislative process had "pretty much ground to a halt" amid the tumult in Washington.

Republican Representative Steve Womack said it was important for committees investigating the R us sia matter to move forward expeditio us ly to both ensure that the public gets answers and to clear the way for Congress to move on to other issues.

“Any time we get bogged down on these kinds of issues unrelated to the governing agenda, it serves to delay and to sometimes complicate the real job that we have to do for the American people,” Womack said.

At a news conference on Wednesday, Ho us e Speaker Paul Ryan urged his colleagues to "seize this moment” to pass tax reform.

But instead of disc us sing tax rates and structures, Ryan was faced with a series of questions about James Comey, who Trump fired as director of the Federal Bureau of Investigation last week, and the R us sia investigation.

For more on James Comey, watch Fortune's video:

Several lobbyists said that in the past week their corporate clients have grown more cautio us on the prospects for tax reform but still hope that at least a small package can be approved.

“My worry level has grown considerably,” one lobbyist said.

Some lobbyists suggested that Congress could consider foc us ing on tax breaks and perhaps leave aside the comprehensive overhaul of the tax code that they had originally hoped for.

“When this all started, the thing we heard from the Hill was ‘transformative tax reform,’” said a strategist who consults with major companies foc us ed on tax reform. “I think as time passes, tax reform is going to look much different, that it may be begin to look more like tax cuts than tax reform.”

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