Letter from Washington

When President Reagan delivers his State of the Union address before Congress on January 27, it will be the first Administration attempt of any magnitude to turn the Iran tide. Mr. Reagan will seek to direct public attention away from the debacle and toward domestic initiatives, allotting relatively few words to foreign policy (and Iran). The President will propose a major education initiative—income-contingent loans—to relieve the post-graduation student-loan burden by means of a repayment schedule based on income. Because of its anticipated widespread impact, Reagan analysts see this plan as an ideal vehicle for regaining policy-making momentum. The President will also almost certainly advance initiatives in the fields of welfare reform, health care, and industrial competitiveness. While many Reagan-ites are relieved to see the President taking the bull by the horns, others fear that his weakened position is forcing him to be overly concessionist on the laissez-faire domestic policy that has been his hallmark.

With November 4, 1986, fast fading, February 8, 1988, the likely date of the Iowa caucuses, is rapidly becoming the new focus of political consciousness here. Iowa’s role as the first hurdle in the nomination steeplechase has made it the place to be seen for all would-be nominees. Representative Richard Gephardt (D., Mo.) has already spent upward of forty days with his northern neighbors, enough for Democrats there to label him the “Seventh Iowa Congressman.” Senators Joe Biden (D., Del.) and Bob Dole (R., Kan.) and Representative Jack Kemp (R., N.Y.) have also been stopping off in Iowa on a regular basis. Vice President George Bush donated big bucks to the 1986 statewide campaigns, as did Biden and then-Governor Bruce Babbitt of Arizona. Babbitt went one step further and donated members of his Arizona staff to the Iowa Democratic Party (IDP).

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When President Reagan delivers his State of the Union address before Congress on January 27, it will be the first Administration attempt of any magnitude to turn the Iran tide. Mr. Reagan will seek to direct public attention away from the debacle and toward domestic initiatives, allotting relatively few words to foreign policy (and Iran). The President will propose a major education initiative—income-contingent loans—to relieve the post-graduation student-loan burden by means of a repayment schedule based on income. Because of its anticipated widespread impact, Reagan analysts see this plan as an ideal vehicle for regaining policy-making momentum. The President will also almost certainly advance initiatives in the fields of welfare reform, health care, and industrial competitiveness. While many Reagan-ites are relieved to see the President taking the bull by the horns, others fear that his weakened position is forcing him to be overly concessionist on the laissez-faire domestic policy that has been his hallmark.

With November 4, 1986, fast fading, February 8, 1988, the likely date of the Iowa caucuses, is rapidly becoming the new focus of political consciousness here. Iowa’s role as the first hurdle in the nomination steeplechase has made it the place to be seen for all would-be nominees. Representative Richard Gephardt (D., Mo.) has already spent upward of forty days with his northern neighbors, enough for Democrats there to label him the “Seventh Iowa Congressman.” Senators Joe Biden (D., Del.) and Bob Dole (R., Kan.) and Representative Jack Kemp (R., N.Y.) have also been stopping off in Iowa on a regular basis. Vice President George Bush donated big bucks to the 1986 statewide campaigns, as did Biden and then-Governor Bruce Babbitt of Arizona. Babbitt went one step further and donated members of his Arizona staff to the Iowa Democratic Party (IDP).