Backend Category: Advocacy

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, May 19, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

EPA Announces Plans to Curtail Biden-Era Regulations for PFAS in Drinking Water Systems

On May 14^th, the Environmental Protection Agency (EPA) announced plans to curtail Biden-era National Primary Drinking Water Regulations for perfluoroalkyl and polyfluoroalkyl substances (PFAS) in drinking water systems. These PFAS chemicals are often called “forever chemicals” because they take a very long time to degrade and pose risks to human health as they leak into water and soil. In April 2024, the Biden EPA set Maximum Contaminant Levels (MCLs) for five individual PFAS chemicals—PFOA, PFOS, PFNA, PFHxS, and HFPO-DA—and mixtures of these chemicals and required all public water systems to complete monitoring for these chemicals and start public reporting on the amount of each of these PFAS chemicals in their drinking water by 2027.

Under the new Trump EPA proposal, EPA is rescinding and reconsidering its prior determination to regulate the PFAS chemicals PENA, PFHxS, HFP-DA, and mixtures thereof regulated under the Biden-era rule. EPA is also delaying from 2027 until 2031 the requirement the Biden EPA imposed on drinking water systems to address the two PFAS chemicals—PFOA and PFOS. The EPA is taking this action despite a recent analysis of EPA data showing that PFAS chemicals have recently been detected in hundreds of water systems serving over 84 million Americans.

Relatedly, on April 28^th, the Environmental Protection Agency (EPA) announced that it will establish limits on the amount of per- and polyfluoroalkyl substances (PFAS) that can be discharged into the water. The limitations will apply to companies that make these substances, as well as metal finishers. In 2021, the Biden Administration similarly announced plans to propose limits on the release of PFAS but never proposed any standards. The EPA detailed actions the agency plans to take to address PFAS chemicals, including: (1) implementing a PFAS testing strategy under Section 4 of the Toxic Substances Control Act; (2) providing annual updates to the PFAS Destruction and Disposal Guidance; (3) using Safe Drinking Water Act authority to investigate and address immediate endangerment; and (4) addressing the most significant compliance challenges and requests from Congress and drinking water systems related to national primary drinking water regulations for certain PFAS.

President Trump Releases FY2025 Budget 

On May 2^nd, President Trump released his fiscal year (FY) 2026 budget request calling for a 13% increase in defense and border security spending and a 22.6% reduction in nondefense spending. For U.S. Department of Labor (DOL), the budget proposes a 26% cut in funding for a total reduction of $3.63 billion from current funding levels. The FY 2026 DOL Budget includes a cut of $1.6 billion as part of a “Make America Skilled Again (MASA) Grant Consolidation” proposal that would require states and localities to allocate more funding for workforce development programs. It would require states to spend at least 10% of their federal workforce training funds on apprenticeships. Other highlights of the FY 26 Budget of interest to MCAA include:

• Cutting $408 million from the Energy Department’s Office of Nuclear Energy. 
• Eliminating from the Energy Department’s budget $15.24 billion in Bipartisan Infrastructure Law funding for renewable energy, carbon capture, and “other costly technologies burdensome to ratepayers and consumers.” 
• Adding $596 million to the Transportation Department’s budget for Shipbuilding and Port Infrastructure, including additional monies for the Small Shipyards Program to “jumpstart America’s domestic shipbuilding supply chain.” 
• Adding $9 million to the EPA’s Drinking Water Programs “to properly equip EPA with funds to respond to drinking water disasters.” 
• Removing $2.46 billion from the EPA’s Clean and Drinking Water State Revolving Loan Funds based on the Administration’s view that “states should be responsible for funding their own water infrastructure projects.”

Presidential budgets are a declaration of priorities and a starting point for the congressional appropriations process. Appropriations bills can be filibustered in the Senate, so some degree of bipartisan consensus is required. MCAA will be actively engaged throughout the budget and appropriations process to protect our members’ interests.

Trump Nominates Brittany Panuccio to the EEOC 

On May 7^th, President Trump nominated Brittany Panuccio, who is currently serving as an Assistant U.S. Attorney in Florida, to fill a vacancy on the Equal Employment Opportunity Commission (EEOC) that was created by Trump’s firing of two Democratic EEOC commissioners earlier this year. Panuccio is a former special counselor at the Department of Education and was also an associate at the law firm Jones Day. Earlier in her career, she clerked for the U.S. Court of Appeals for the District of Columbia Circuit and U.S. Court of Appeals for the Fifth Circuit. If confirmed by the Senate, Panuccio would give the EEOC a quorum to hold votes and take other actions under a Republican majority at the Commission. Her term would expire in July 2029.

President Trump Signs EO that Could Restrict Federal Funding to State and Local “Sanctuary” Jurisdictions Reducing Funds for Public Works

On April 28^th, President Trump signed an Executive Order entitled, “Protecting American Communities from Criminal Aliens,” seeking to “protect” citizens “from dangerous illegal aliens” by withholding federal funds from jurisdiction the Administration classifies as “sanctuary cities” because they do not cooperate with federal immigration authorities. The Executive Order directs the Departments of Justice (DOJ) and Homeland Security (DHS) to publish a list of jurisdictions obstructing federal immigration enforcement and notify each of these jurisdictions that it is non-compliant. If a jurisdiction fails to come into compliance, DOJ and DHS are directed to pursue “all necessary legal remedies and enforcement measures”—including terminating federal funding these jurisdictions receive.

Nuclear Regulatory Commission Losing its Independence as Administration Enforces its Vision of a Unitary Executive

As we continued our outreach to the Trump Administration on the MCAA’s nuclear priorities, we learned that the Trump Administration will require that going forward the Nuclear Regulatory Commission (NRC) must send new rules regarding reactor safety to the White House, where they will be reviewed and possibly edited in a “radical departure” for the NRC, which historically has been among the most independent agencies in the government. Additionally, President Trump is reportedly planning to sign various Executive Orders related to the NRC and the nuclear industry, including orders reducing the size of the NRC’s staff and shortening the time to review reactor designs, along with orders calling for the construction of small modular nuclear reactors at military bases and for the development of advanced nuclear fuels.

Congress

Labor Secretary DeRemer Testifies on DOL’s FY26 Budget Request 

Last Thursday, the MCAA policy team monitored Labor Secretary Lori Chavez-DeRemer’s appearance before the House Appropriations Subcommittee on Labor and Health and Human Services regarding her department’s fiscal year 2026 budget request. During the hearing, Chavez-DeRemer sought to highlight her commitment to visiting workers in all 50 states and serving as a voice for workers. Chavez-DeRemer also noted President Trump’s “mandate from workers,” including union workers, to overhaul U.S. job training programs to eliminate fraud, waste, and abuse and highlighted recent visits to UBC and IBEW training centers. Throughout the hearing, Chavez-DeRemer refused to answer questions that MCAA and its allies had encouraged members to ask about DOL’s regulations on independent contractor status and prevailing wage due to pending litigation on these issues. She also relied on the existence of pending litigation to refuse to respond to questions about several other issues ranging from overtime rules to DOL’s staffing levels. DeRemer also avoided providing any details about planned changes to federal workforce training and registered apprenticeship to implement President Trump’s Executive Order 14278—Preparing Americans for High-Paying Skilled Trade Jobs of the Future, which calls for the creation of 1 million new apprentices and directs an overhaul and streamlining of federal job training programs.

House Appropriations Committee Ranking Member Rosa DeLauro (D-CT) took Chavez-DeRemer to task during the hearing for celebrating with Elon Musk the cancellation of Women in Apprenticeship and Nontraditional Occupations (WANTO) grants from the Labor Department’s Women’s Bureau that train women for occupations in the trades. DeLauro’s attack made Chavez-DeRemer uncomfortable and compelled the Secretary to defend her commitment to women in the workforce, saying, “I am a woman and I am in the workforce.” Rep. Steny Hoyer (D-MD) also appeared particularly frustrated by Chavez-DeRemer’s refusal to discuss how many Labor Department employees accepted early buyouts and other staffing issues at the department. Hoyer noted that he had a call with Chavez-DeRemer a week ahead of the hearing and told her he would be asking questions regarding staffing and said she gave him no indication that pending litigation would preclude her answering questions.  

Lawmakers Introduce Legislation to Revitalize U.S. Shipbuilding 

On April 30^th, Sens. Mark Kelly (D-AZ) and Todd Young (R-IN), along with Reps. Trent Kelly (R-MS) and John Garamendi (D-CA) reintroduced the “Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act,” to revitalize the U.S. shipbuilding and commercial maritime industries. The legislation would, among other things: (1) establish a national goal of expanding domestically built, U.S. flagged and American crewed international fleet by 250 ships in 10 years; (2) expand the U.S. shipyard industrial base for both military and commercial vessels by enacting a 25% investment tax credit for shipyard investments, transforming the Title XI Federal Ship Financing Program into a revolving fund, and establishing a Shipbuilding Financial Incentives program to support innovative approaches to domestic ship building and ship repair; and (3) accelerate U.S. leadership in next-generation ship design, manufacturing processes, and ship energy systems by establishing the U.S. Center for Maritime Innovation, and supporting regional hubs for maritime innovation.

House Transportation and Armed Services Committees Advance Their Portions of Reconciliation

On April 30^th, the House Transportation and Infrastructure Committee advanced its portion of the reconciliation bill by a vote of 36-30. The legislation provides $12.5 billion to upgrade the air traffic control system and provides $21.2 billion for new Coast Guard facilities, ships, and programs. The bill also includes $10 billion in savings and additional revenues through measures such as new annual fees state transportation departments will be required to collect on vehicles to fund the Highway Trust Fund, including: (1) a $250/year fee for electric vehicles; and (2) a $100/year fee for hybrid vehicles. Savings are also generated by recissions of unspent monies provided under the Inflation Reduction Act, including: (1) funds for the General Services Administration to reduce carbon emissions from federal buildings; (2) funds for procurement of low-embodied carbon construction materials for federal construction projects; and (3) funds to develop emerging and sustainable technologies and sustainability and environmental programs for buildings. Finally, the bill rescinds unobligated funds for low-carbon transportation grants and claws back funding for low-emission aviation technology and transportation equity grants.

On April 29^th, the House Armed Services Committee advanced its portion of the reconciliation bill by a vote of 35-21. The legislation increases defense spending by $150 billion and includes $33.7 billion to improve infrastructure and expand capacity at private shipyards. Also on April 29^th, the House Education and Workforce Committee advanced its portion of the reconciliation bill by a vote of 21-14. The legislation expands Pell Grants for short-term training programs and enacts changes to student loan repayment plans, including limits on how much some individuals can borrow for their education.

MCAA Issues and Interests 

Project Labor Agreements

SBA Office of Advocacy Recommends Limiting Use of PLAs on FTA and FHWA Projects

As we continued to discuss the importance of maintaining the MCAA-supported, Biden-era executive order creating a presumption for using project labor agreements on large-scale federal construction projects with the Trump Administration, on May 5^th we were surprised and dismayed to see the Small Business Administration’s Office of Advocacy submit comments on the Department of Transportation’s (DOT) April 3, 2025 request for information (RFI) on “Reducing Regulation and Controlling Regulatory Costs” urging DOT to limit the use of PLAs on certain types of DOT-funded projects. The comment letter is based on feedback the Office of Advocacy received at its April 14^th small business roundtable soliciting thoughts on DOT’s RFI. Specifically, recommendation 33 on page 24 of the comment letter states, “FTA and FHWA should limit the use of PLAs and allow them on a federal-aid project when the state or local transportation agency has meaningfully collaborated with leading industry groups and labor on its terms.” We visited with the Office of Advocacy and challenged some of the assumptions underlying their comments on PLAs with data establishing the value and cost-effectiveness of PLAs, including the recent research MCAA highlighted from the University of Illinois Urbana-Champagne and the groundbreaking research on PLA’s MCAA sponsored through Independent Project Analysis in 2022. We will now be monitoring the Office of Advocacy more closely on these issues and hope they will refrain from uncritically espousing assertions from opponents of PLAs that are not supported by sound research and data.  

Davis-Bacon Prevailing Wage

Labor Secretary Chavez DeRemer Refuses to Discuss Biden-Era MCAA-Supported Prevailing Wage Regulations Currently Under Litigation

On Thursday, at a House Appropriations Labor-HHS Subcommittee hearing on the Department of Labor’s FY 2026 budget request, U.S. Labor Secretary Chavez-DeRemer cited pending litigation as her reason for refusing to answer questions MCAA lobbied committee members to ask about the future of the MCAA-supported prevailing wage regulations issued during the Biden Administration that improved and expanded the application of Davis-Bacon federal prevailing wage. Her refusal to discuss the DOL’s plans for the rulemaking and the pending litigation were alarming because the stay the court granted DOL in this litigation expires on Monday, May 18^th.  This means that the Department must file an update with the court regarding its view of the issues in the litigation and plans for the underlying rulemaking and the Secretary likely already had a good idea of the position the Department will be taking in any such court filing. We will be watching next week to see what DOL says, but the Secretary’s lack of candor did not inspire confidence. 

WHD Seeks Input to Help Establish Davis-Bacon Prevailing Wage Rates in Southeast Texas

On April 29^th, the Labor Department’s Wage and Hour Division (WHD) announced it is seeking input from employers, stakeholders, and others in southeast Texas on prevailing wage and fringe benefit rates for workers on federally funded and assisted projects to help establish Davis-Bacon prevailing wage rates in the southeast Texas building and heavy construction sectors. The WHD is distributing an online survey here that asks for information on wages paid for relevant construction projects from May 5, 2024 to August 5, 2025. The areas covered include Austin, Brazoria, Brazos, Burleson, Chambers, Colorado, Fayette, Fort Bend, Galveston, Grimes, Hardin, Harris, Houston, Jasper, Jefferson, Lee, Leon, Liberty, Madison, Matagorda, Milam, Montgomery, Newton, Orange, Polk, Robertson, San Jacinto, Trinity, Tyler, Waller, Washington, and Wharton counties. The survey is due by August 29, 2025.

Registered Apprenticeship

As the MCAA policy team continues to discuss apprenticeship and worker training with the Trump Administration and members of Congress, including efforts to reauthorize the National Apprenticeship Act and Workforce Innovation and Opportunity Act, there were some notable developments on this issue set since our last government affairs update.

Senate HELP to Hold Markup on May 22^nd on Nominees to Lead DOL’s Employment and Training Administration and Career, Technical, and Adult Education at the Education Dept. 

MCAA had been working closely with several congressional offices on questions to ask President Trump’s nominee to lead the U.S. Department of Labor’s Employment and Training Administration (ETA) that oversees federal workforce training and registered apprenticeship programs.  All of this work and cooperation now seems of little value because last Thursday, the Senate Health, Education, Labor, and Pensions (HELP) Committee revealed it is forgoing a hearing and proceeding directly to a markup this Thursday, May 22, 2025 on the nomination of Henry Mack III to lead the ETA. If confirmed, Mack will play a key role in implementing President Trump’s Executive Order 14278—Preparing Americans for High-Paying Skilled Trade Jobs of the Future discussed below. Forgoing a hearing and moving directly to a markup of this nominee precludes Senators from questioning him on his plans and visions for the job. Mack’s nomination is being packaged with five other nominees into a single markup that also includes Kevin O’Farrell, the nominee to serve as Assistant Secretary for Career, Technical, and Adult Education at the Department of Education. O’Farrell will be responsible for working with Mack to rejuvenate career technical education in the nation’s schools. The other nominees being considered at this markup are: (1) Wayne Palmer to serve as Assistant Secretary of Labor for Mine Safety and Health; (2) Nicholas Kent to serve as Undersecretary of Education at the Department of Education; (3) Marco Rajkovich Jr. to serve as Commissioner of the Federal Mine Safety and Health Review Commission; (4) Julie Hocker to serve as Assistant Secretary of Labor for the Office of Disability Employment Policy; and (5) Kirsten Baesler to serve as Assistant Secretary for Elementary and Secondary Education at the Department of Education. It remains to be seen if Democrats will protest Senate Republicans’ decision to move Mack and these other nominees to a markup without a hearing.

DOL Issues Training and Employment Notice Related to WIOA Waivers

On May 5^th, the Labor Department issued Training and Employment Notice (TEN) 25-24 on “Leveraging Workforce Innovation and Opportunity Act (WIOA) Waivers to Increase Labor Force Participation and Worker Productivity” that details four previously granted waivers DOL authorized from WIOA requirements on federal workforce training funds that the Department believes will help grantees improve labor force participation rates and productivity. These waiver options include:

1. A waiver allowing Local Workforce Development Boards to reimburse an employer up to 90% (instead of the normal 50%) of the wage rate of an on-the-job training (OJT) participant for the extraordinary costs of providing training and additional supervision. DOL notes that since March 2025 nine states have used this waiver.
2. A waiver allowing Local Workforce Development Boards to use up to 50% (instead of the normal 10%) of their Adult and Dislocated Worker allocations for transitional jobs. Since March 2025, only one state has used this waiver.
3. A waiver allowing Local Workforce Development Boards to reserve up to 50% (instead of the normal 20%) of their Adult and Dislocated Worker allocations for Incumbent Worker Training. Since March 2025, three states have used this waiver.
4. A waiver allowing Local Workforce Development Boards to spend up to 50% (instead of the normal 75%) of WIOA Youth Funds on in-school youth (ISY), thereby providing additional work experience opportunities for ISY, including pre-apprenticeship and Registered Apprenticeship programs. Since March 2025, 28 states have taken advantage of this waiver.

President Trump Signs EO on Apprenticeship and Worker Training 

MCAA’s interest in the President’s nominee for ETA increased markedly on April 23^rd when President Trump signed Executive Order (EO) 14278 on “Preparing Americans for High-Paying Skilled Trade Jobs of the Future” that was a focus of the “fireside chat” with Deputy Secretary Keith Sonderling at the CEA National Issues Conference on May 6^th. For those who were not at that event, the EO focuses on apprenticeships and preparing workers for jobs in “the skilled trades and other occupations that do not require a college degree.” The fact sheet accompanying the EO frames the order as a rejection of the “college for all” workforce development model pursued by previous administrations. The EO highlights America’s “shortage of 447,000 construction workers and 94,000 durable goods workers.” To address this, it directs the Secretaries of Labor, Commerce, and Education to submit a report to the President in 90 days addressing several topics, including how to integrate systems and align resources across federal agencies to address critical workforce needs and in-demand skills of emerging industries and companies and strategies to identify alternative credentials and assessments to the four-year college degree that can be mapped to the specific needs of employers. The EO also requires these same Cabinet Secretaries to submit a report to the President within 120 days detailing a plan to recruit 1 million new active apprentices. In our discussion with the Deputy Secretary, he said that this is a real goal, adding that the Department will lean heavily on its ETA nominee to figure out how to realize it.  He also reassured the audience that the order would not lead to a revival of the IRAP proposal MCAA and its allies fought to be excluded from during the first Trump term and later got rescinded by the Biden Administration. The Deputy Secretary welcomed MCAA’s input on any proposals arising from the implementation of the executive order.

Independent Contractors and Misclassification of Workers 

WHD Orders Staff Not to Enforce MCAA-Supported Biden-Era Independent Contractor Rule Making It Harder to Classify Construction and Service/Maintenance Workers as Independent Contractors

As the MCAA policy team warned following the Labor Department’s request last month to pause litigation against the MCAA-supported, Biden-era independent contractor rule as it reconsidered the rulemaking, on May 1^st, the Labor Department’s Wage and Hour Division (WHD) issued a Field Assistance Bulletin (FAB) ordering staff not to enforce this MCAA-supported Biden-era final rule. Instead, WHD told its investigators to rely on principles from a 2008 Fact Sheet and a reinstated WHD Opinion Letter FLSA2019-6 from President Trump’s first term that was signed by then-acting Wage and Hour Administrator Keith Sonderling—who is now the Deputy Secretary of Labor. This opinion letter defaults most workers providing services through virtual marketplace platforms (e.g., Fiverr, Handy, Porch, Thumbtack, and TaskRabbit) into being treated as independent contractors instead of employees. We have subsequently been informed that the Labor Department is working to reinstate the understanding of independent contractor status under the Fair Labor Standards Act as interpreted during President Trump’s first term.  

Chair of Senate Health, Education, Labor and Pensions (HELP) Committee Proposes Framework to Provide Benefits to Independent Contractors

The Labor Department’s freeze on enforcement of the independent contractor rule followed the April 23^rd release of a detailed proposal (available here) from Senate HELP Committee Chair Cassidy (R-LA) Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bill Cassidy (R-LA) for Congress to overhaul employment classification laws to make it easier to classify more workers and non-employee gig workers/independent contractors. Chair Cassidy wants Congress take up legislation: (1) instituting a single employment status test under federal law replacing the disparate tests under federal tax and wage laws; (2) creating a safe harbor for companies providing benefits to independent contractors that insulates them from lawsuits claiming the workers are employee because they are getting benefits; (3) clarifying existing federal law to allow independent contractors to join association health plans (AHPs) and expand independent coverage of health reimbursement arrangements (ICHRAs) for independent contractors; and (4) providing independent contractors access to participate in a defined contribution retirement plan.  

Since the release of this plan, MCAA has been discussing it with legislators. We are making known the anticompetitive impact such legislation would have on the ability of MCAA members and other high-road, law-abiding contractors who treat their workers as employees and provide not only training, health insurance, and retirement benefits, but also pay unemployment, workers compensation, and other costs of having employees that are not borne by companies using independent contractors. While Chair Cassidy seems unmoved by our concerns, we do feel some members in both parties understand the larger issues if our society reverts to one in which everyone is an independent contractor. MCAA will continue to educate members on these concerns. We expect Chair Cassidy to press his vision for changes to federal wage and hour law when his committee considers the nomination of the President’s pick to lead the U.S. Department of Labor’s Wage & Hour Division, which is expected in the coming weeks.  

Pension Reform

HELP Advances Dhillon Nomination to be Next PBGC Director

The MCAA policy team had worked with congressional offices since Congress returned from its Easter recess to ensure members would ask detailed questions about the plans of the President’s PBGC nominee, Janet Dhillon, regarding changes to the Special Financial Assistance (SFA) Program for underfunded plans and a pending rulemaking on withdrawal. Some of these questions were used in individual meetings Senators had with the nominee. But Senators never got to ask her questions at a public hearing because last Thursday the Senate HELP Committee decided to forgo a hearing on her nomination and moved directly to a markup at which Dhillon was not even required to appear. During the brief 30-minute executive session on Dhillon’s nomination, Republicans who were opposed to the creation of the SFA program and refer to it as a “union bailout” made clear their hopes that Dhillon will undertake major reforms to the regulations implementing the $90 billion Biden-era program that aids the most underfunded multiemployer programs. Democrats, led by Committee Ranking Member Bernie Sanders (I-VT) and Sen. Tammy Baldwin (D-WI), criticized Dhillon for her prior work on bankruptcies at U.S. Airways, Dollar Tree, and other companies that resulted in pension plans being taken over by the PBGC’s insurance program. They also pointedly stated that in meetings with Senators, Dhillon had refused to say whether she will comply with the Special Financial Assistance law “or whether she will attempt to undermine it.” Her nomination now goes to the full Senate, where it is expected she will be confirmed in the coming weeks. MCAA will work with the National Coordinating Committee on Multiemployer Plans to educate the incoming PBGC Director about our interest in the pending PBGC withdrawal liability rule and the integrity of the SFA Program. 

Bipartisan Senate Bill Introduced to Lower the Age for Participating in ERISA Plans to 18

Last Monday, Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bill Cassidy (R-LA) and Sen. Tim Kaine (D-VA) reintroduced the Helping Younger Americans Save for Retirement Act, which would lower the age for participating in ERISA plans by allowing individuals to enroll as young as 18 if they do not plan to attend college and immediately enter the workforce. The bill would also eliminate mandatory audits and other provisions of ERISA that impose extra costs on costly plans covering workers under 21. Chairman Cassidy’s staff said the bill is intended to facilitate the transition of young people who do not go to college into jobs in the trades and other occupations that do not require a college degree—consistent with the President’s effort to move federal job training programs away from the “college for all” approach.

Decarbonization

As the policy team continues advocating MCAA’s decarbonization priorities with the Trump Administration and on Capitol Hill, there were several significant developments over the last three weeks that we wanted to make you aware of:

DOE Publishes Proposals to Rescind Several Biden-Era Decarbonization Regulations 

The Department of Energy (DOE) issued several proposed and final rules aimed at facilitating President Trump’s deregulatory efforts and rolling back President Biden’s decarbonization agenda. These rules address energy efficiency and testing standards for an array of industrial products and consumer appliances. In particular, DOE issued a proposed rule that not only withdraws the prior finding that compressors are covered equipment under the Energy Policy and Conservation Act (ECPA) (which triggers requirements to develop energy conservation and testing standards) but also articulated the policy for the Trump Energy Department’s determinations of whether products are covered under the ECPA. Under this policy, the Energy Department plans to classify industrial equipment as covered equipment under ECPA only if establishing energy conservation and testing standards will significantly increase the energy resources of the nation, without compromising the performance of industrial products. This is sure to result in far fewer findings that equipment and appliances are covered by ECPA’s energy conservation and testing standards.

DOE also published revisions to energy conservation standards for consumer furnace fans and commercial warm air furnaces and an array of consumer appliances. 

Energy Secretary Testifies on Fiscal Year 2026 Energy Department Budget Request 

On May 7^th, MCAA attended Energy Secretary Wright’s testimony before the House Appropriations Subcommittee on Energy and Water on his Department’s FY 2026 budget. Secretary Wright defended the Administration’s budget cuts in the face of stiff resistance that MCAA had encouraged from Republicans focused on cuts to DOE nuclear programs. The majority—more than $15 billion—of the requested cuts would fall on clean energy programs enacted in the Inflation Reduction Act, but the Trump Administration has also proposed decreases for other nuclear activities. The GOP pushback was led by Subcommittee Chair Rep. Chuck Fleischmann (R-TN) who made clear his concern about “the proposed reduction to the nuclear budget.” Secretary Wright responded that the reduction in nuclear funding “in no way indicates…a reduction in desire for nuclear energy,” adding that the production of nuclear energy is especially important for U.S. dominance in AI and other energy-intensive technologies. Notably, Secretary Wright also said he was committed to working with lawmakers to support nuclear and other energy sources, including geothermal, hydropower, and high-assay low-enriched uranium. 

EPA Plans to End Energy Star Program that Certifies the Energy Efficiency of Home Appliances

On May 6^th, the Environmental Protection Agency (EPA) unexpectedly announced plans to end the Energy Star program certifying the energy efficiency of home appliances as part of its broader reorganization. The cancellation came despite a letter last month from three dozen trade groups and appliance companies, including the U.S. Chamber of Commerce, Bosch, Carrier, and the Air-Conditioning, Heating, and Refrigeration Institute urging the EPA not to end Energy Star because it was a good “non-regulatory” collaboration between the private sector and the federal government.

EPA Reorganization Expected to Speed Permitting and Cut Costs

Additionally, on May 5^th, the EPA announced a reorganization creating an Office of State Air Partnerships within the Office of Air and Radiation focused on working with state, local and Tribal air permitting agencies to improve processing of State Implementation Plans and resolving air permitting concerns. With the Office of Water, EPA is elevating issues of cybersecurity, emergency response, and water reuse and conservation. The agency is also shifting its scientific expertise and research efforts to program officers to focus on statutory obligations and mission essential functions and is creating an Office of Applied Science and Environmental Solutions (OASES) in the Office of the Administrator. As part of this reorganization, EPA’s Office of Chemical Safety and Pollution Prevention will add 130 scientific, bioinformatic, and information technology experts to review new chemicals and pesticides. The EPA says that this reorganization will save taxpayers more than $300 million annually by the end of fiscal year 2026.

Other Interesting Things Since Our Last Report 

May 15, 2025

• Energy Secretary Wright issued a Secretarial Memorandum entitled, “Ensuring Responsibility for Financial Assistance,” directing audits of 179 grants recipients that received $15 billion in funding the Biden Energy Department awarded for large-scale commercial projects. Wright says “[o]ver the past 110 days, the Energy Department has been hard at work reviewing the billions of dollars that were rushed out the door, particularly in the final days of the Biden Administration, and what we have found is concerning.” The audits will entail reviewing materials, including information companies submitted in award applications, and asking companies for additional information. If it is determined that projects do not meet program requirements, DOE may modify or terminate the project based on its evaluation. DOE is clear that “if a recipient of financial assistance fails to respond to information requests within the provided timeframe, does not respond to follow-up questions in a timely manner, or offers incomplete responses that do not reasonably facilitate DOE’s review, DOE may treat as the recipient’s refusal to cooperate as grounds for termination of the award or the withholding of funding.”

• The Trump Administration issued a notice of non-enforcement regarding the 2024 final regulations implementing the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). This follows the Administration’s Tuesday request to the U.S. District Court for Washington, D.C. to pause an insurance industry lawsuit over these Biden-era final rules requiring health plans and insurers covering more than 175 million Americans to abide by prescriptive standards for access and payment structures for mental health care services on par with other medical services. The Trump Administration requested the pause because it is “reconsidering” the rule. The National Coordinating Committee on Multiemployer Plans has expressed several concerns about the impact of this complex final rule on multiemployer health plans, including: (1) the subjectivity of its general standards and its “meaningful benefits” requirement; (2) the short time for implementation; (3) the network composition standards and data collection and evaluation standards; (4) the named fiduciary certification; and (5) the unrealistically low estimate of the costs associated with plans complying with the final rule.

• The Senate confirmed Sean Donahue to be the Environmental Protection Agency’s General Counsel by a vote of 51-46. Donahue will play a key role in EPA’s unwinding of at least a dozen Biden-era emissions rules, reconsideration of EPA’s 2007 endangerment finding, and numerous other high-profile issues pending at EPA.

May 14, 2025

• The Senate confirmed James Danly to be the Deputy Secretary of Energy by a vote of 52-44. Senator Angus King (I-ME) joined Republicans in voting in favor of Danly’s confirmation. The Senate also confirmed Katharine MacGregor to be Deputy Secretary of the Interior by a vote of 54-40 and Eric Ueland to be Deputy Director for Management at the White House Office of Management and Budget by a vote of 52-45.

• A bipartisan group of over 80 lawmakers led by Rep. Chuck Edwards (R-NC) and Sen. Thom Tillis (R-NC) sent a letter to the Trump Administration calling to unfreeze funding for the Federal Emergency Management Agency’s Building Resilient Infrastructure and Communities (BRIC) program. The letter states that the “BRIC program was established by Congress in the 2018 Disaster Recovery Reform Act and signed into law by President Trump with bipartisan support,” and adds that in the years since, “this program has catalyzed community investments in resilient infrastructure, saving federal funds by investing in community preparedness before a disaster strikes.”

• Senate Health, Education, Labor, and Pensions Committee Chair Bill Cassidy (R-LA) introduced two pieces of legislation intended to strengthen Employee Stock Ownership Plans (ESOPs). The Employee Ownership Representation Act would add two new ESOP board members to the U.S. Secretary of Labor’s ERISA Advisory Council to advocate for the interests of employee-owned companies. The Employee Ownership Fairness Act authorizes ESOPs to increase benefits by allowing ESOPs to contribute to 401(k) plans without exceeding their ESOP or 401(k) contribution limits so that employees will save more money for retirement and can invest more in their employer’s stock.

• The Centers for Disease Control and Prevention reported that drug overdose deaths dropped sharply as an estimated 80,000 people died from overdoses in 2024. That’s down 27% from the 110,000 overdose deaths in 2023. 

May 13, 2025

• The Interior Department’s Bureau of Land Management (BLM) issued an Instruction Memorandum entitled “Oil and Gas Leasing – Land Use Planning and Lease Parcel Reviews” that is supposed to expedite oil and gas leasing on public lands. Under the updated policy, BLM will complete parcel review and offer parcels for oil and gas lease sale within six months from the start of scoping until the lease sale. To meet this goal, the BLM will no longer defer parcels prior to completing National Environmental Policy Act (NEPA) environmental reviews, allowing oil and gas lease parcel reviews to be conducted and documented simultaneously with the NEPA review process.

May 12, 2025

• The White House posted a fact sheet on the U.S. trade agreement with China under which each nation will lower tariffs by 115% on goods above the de minimis threshold by May 14, 2025 while retaining the additional 10% tariff. The deal lasts 90 days, allowing time for U.S. and Chinese negotiators to reach a more substantive agreement.

• President Trump signed an executive order (EO) on “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients” that aims to cut prescription drug costs by aligning the prices of some medicines in the U.S. to prices paid by comparably developed countries, a policy known as the “most-favored-nation (MFN) price.” The EO directs the Secretary of Health and Human Services (HHS) to facilitate direct-to-consumer purchasing programs for pharmaceutical manufacturers that sell their products to American patients at the MFN price. The EO also states that within 30 days of the May 12, 2025 issuance date of the EO, the HHS Secretary must coordinate with other agency officials to communicate MFN targets to pharmaceutical manufacturers to bring prices for American patients in line with comparably developed nations. To the extent that “significant progress” towards MFN pricing is not delivered, then the HHS Secretary shall issue a rulemaking to impose MFN pricing and the Attorney General and Federal Trade Commission Chair shall take enforcement action against any pharmaceutical company that is deemed to be engaging in anti-competitive practices. Additionally, the EO directs the Secretary of Commerce and the U.S. Trade Representative to take action to ensure foreign countries are not engaged in any act, policy, or practice that may be unreasonable or discriminatory of that may impair U.S. national security, including by “forcing American patients to pay for a disproportionate amount of global pharmaceutical research and development” and by “suppressing the price of pharmaceutical products below fair market value in foreign countries.”

May 9^th, 2025

• President Trump signed a “deregulatory” executive order on “Fighting Overcriminalization in Federal Regulations,” that is intended to reduce the frequency of criminal enforcement of regulatory offenses by requiring agencies to list out all enforceable criminal regulatory offenses and applicable intent standards for liability. The order instructs agencies to adopt heightened intent standards for pursuing criminal charges for regulatory offenses. Notably, this EO does not apply to immigration, law enforcement, or national security functions. 

• A group of cities and counties, including San Francisco, New York, and Boston, won a temporary restraining order that prohibits the Department of Housing and Urban Development and the Federal Transit Administration from withholding hundreds of millions of dollars in federal grants for transit projects and low-income housing programs pursuant to President Trump’s executive orders on diversity, equity, and inclusion.

May 8, 2025

• Roll Call published its early list of the most vulnerable House members in 2026, including Reps. Adam Gray (D-CA-13), Jared Golden (D-ME-2), Mariannette Miller-Meeks (R-IA-1), Mike Lawler (R-NY-17), and Don Bacon (R-NE-2). Relatedly, on May 6^th Roll Call published its list of the Senate’s most vulnerable incumbents in the 2026 midterms, including: (1) Sen. Jon Ossoff (D-GA); (2) Sen. Thom Tillis (R-NC); (3) Sen. Susan Collins (R-ME); (4) Sen. Bill Cassidy (R-LA); and (5) Sen. John Cornyn (R-TX).

• The Energy Department (DOE) announced that going forward for new awards it will limit funding for “indirect costs” of its state and local government financial assistance awards to 10% for state and local governments, 15% for non-profit organizations, and 15% for for-profit companies. These new limits apply to DOE awards such as research grants for educational institutions, grants to state and local governments to reduce the cost of energy, and awards to private companies to facilitate the development and deployment of new energy technologies. Indirect costs include the costs for facilities and administration, such as the costs for administrative salaries and benefits (e.g., insurance, paid time off, accounting, payroll), building depreciation, rent, equipment, capital improvements, and other operations and maintenance expenses. DOE states that this new policy will save the federal government $935 million annually.

May 7, 2025

• The Department of Homeland Security (DHS) began enforcing REAL ID Act requirements. According to DHS, beginning on May 7, 2025, “every state and territory resident will need to present a REAL ID-compliant license/ID, or another acceptable form of identification, for accessing federal facilities, entering nuclear power plants, and boarding commercial aircraft. The card, itself, must be REAL ID compliant unless the resident is using an alternative acceptable document, such as a passport or passport card, or state-issued Enhanced Driver’s License.” A list of frequently asked questions regarding REAL ID implementation is available here. During a House Appropriations Subcommittee on Homeland Security hearing on May 6^th, DHS Secretary Noem said travelers without REAL ID compliant cards will still be able to board their flights after the law has taken effect, but will face time-consuming additional steps before boarding. Data shows that nearly 47% of Americans lack a valid passport as of fiscal year 2024.

• The U.S. Treasury Department’s Inspector General for Tax Administration issued a report assessing that the Trump Administration’s cuts to IRS staffing resulted in the loss of 3,623 revenue agents focused on tax audits accounting for 31% of IRS tax auditors. This comes as the President’s recently released budget calls for a nearly $2.5 billion IRS budget cut for the state purpose of ending the “weaponization of IRS enforcement.”

May 6, 2025

• The Transportation Department announced release of $3.2 billion in grants for 180 infrastructure projects through unobligated grants funds committed by the Biden Administration, including: (1) $277 million for 33 projects through the Federal Aviation Administration’s Airport Terminal Program; (2) $70 million for two projects through the Maritime Administration’s Port Infrastructure Development Program; and (3) $9.9 million for one project through the Office of the Assistant Secretary for Transportation Policy’s National Infrastructure Project Assistance Program.

May 5, 2025

• The Pipeline and Hazardous Materials Safety Administration (PHMSA) published an Advanced Notice of Proposed Rulemaking (ANPRM) seeking input about updates to regulatory standards for liquefied natural gas (LNG) facilities focused on fast-tracking new LNG infrastructure projects, expanding domestic export capacity, and growing the small-scale LNG market. Comments are due by July 7, 2025 and should be submitted through the federal eRulemaking portal using Docket ID PHMSA-2019-0091.

• The Federal Trade Commission (FTC) issued a joint letter with the Trump Justice Department (DOJ) directing the heads of agencies across the federal government to create a list of anti-competitive regulations that reduce competition, entrepreneurship, and innovation pursuant to President Trump’s executive order on “Reducing Anticompetitive Regulatory Barriers.” After the FTC and DOJ receive the lists of anticompetitive regulations from agencies, they will provide the Office of Management and Budget a consolidated list of regulations that should be rescinded or modified, along with their recommended modifications.

• The Office of Management and Budget (OMB) issued Memorandum M-25-27 on “Guidance Implementing Section 6 of Executive Order 14154, ‘Unleashing American Energy” directing federal agencies to review their statutory, regulatory, and other policy requirements governing regulatory and permitting decisions, and to limit their analysis and consideration of greenhouse gas emissions only to reviews that are “required in their governing statutes.” Notably, the new OMB guidance states that “the circumstances where agencies will need to engage in monetized greenhouse gas emissions analysis will be few to none.”

• Blackstone President and COO Jon Gray told CBNC that the company is expecting to see “a ton” of increase in data center demand to support artificial intelligence, which could lead to a recovery in the commercial real estate markets.

May 2, 2025

• The Federal Permitting Improvement Steering Council (Permitting Council) announced the second installment of critical mineral production projects to be identified as “transparency projects” on the Federal Permitting Dashboard pursuant to President Trump’s Executive Order on “Immediate Measures to Increase American Mineral Production.” Inclusion on the Permitting Dashboard as a “transparency project” is intended to speed the environmental reviews and authorizations for these mineral production projects. The following projects are part of this second round: (1) the NorthMet Project in Hoyt Lakes, MN; (2) the La Jara Mesa Program in Grants, NM; (3) the Greens Creek Surface Exploration in Admiralty Island, AK; (4) the Stillwater Mine in Nye, MT; (5) the Polaris Exploration Project in Hawthorne, NV; (6) the Becky’s Mine Modification in Bridger, MT; (6) the 3PL Railroad Valley Exploration Project in Tonopah, NV; (7) the Grassy Mountain Mine Project in Harper, OR; (8) the Amelia A&B Project in Jesup, GA; and (9) the Roca Honda Project in San Mateo, NM.

May 1, 2025

• The Trump Justice Department (DOJ) filed lawsuits against Hawaii, Michigan, Vermont, and New York, claiming their climate actions conflict with federal authority and President Trump’s “energy dominance agenda.” Specifically, DOJ filed lawsuits against Hawaii and Michigan over their plans to pursue legal action against fossil fuel companies for harm caused by climate change. DOJ sued New York and Vermont challenging their climate superfund laws that would force fossil fuel companies to pay into state funds based on historic greenhouse gas emissions. The DOJ says the state efforts are unconstitutional, violate the federal foreign affairs power, are preempted by the Clean Air Act, and generally undermine the federal government while “increasing energy costs and disrupting the national energy market.”

April 30, 2025

• The Interior Department’s Bureau of Ocean Energy Management (BOEM) published a Request for Information (RFI) in connection with the agency’s development of the 11^th National Outer Continental Shelf Oil and Gas Leasing Program (National OCS Program). To inform the development of the 11^th National OCS Program, BOEM seeks information and comments on 27 OCS Planning Areas, including areas that are restricted from leasing by Presidential withdrawal or Congressional moratorium. Specifically, BOEM is seeking information including: (1) OCS planning area(s) where industry representatives would be interested in acquiring oil and gas leases, regardless of whether the area is currently available; (2) the number and timing of lease sales that would be appropriate for each planning area; and (3) the expected lead time to production in areas that currently do not have infrastructure or production. Comments are due by June 16, 2025 and can be submitted through the federal eRulemaking portal using Docket ID BOEM-2025-0015.

April 29, 2025

• Proxy Advisory Firm Glass Lewis is thinking about ending its practice of making recommendations on shareholder proxy ballot measures ranging from carbon emissions and takeover battles to complaints about gender balance and political donations in response to growing corporate and conservative backlash. Glass Lewis is looking to limit its services to helping investors develop their own custom voting policies, handling the paperwork and regulatory reporting, and providing data and research. Conservatives have targeted Glass Lewis for criticism over its recommendations supporting shareholder proxy ballot measures urging McDonald’s to audit its racial diversity, directing Starbucks to produce an independent report on its labor practices, and requiring meatpacker Tyson to disclose and defend its political contributions. Meanwhile, a new Morningstar report confirmed that during Q1 2025 investors continued to pull money from ESG, sustainability, and “green” funds in response to “intensifying” backlash fueled by President Trump’s “anti-climate agenda” and the Trump Administration’s policies targeting diversity, equity and inclusion initiatives and the sharp reversal of Biden climate policies.

• Sens. Todd Young (R-IN) and Maria Cantwell (D-WA) reintroduced legislation to expand and increase the flexibility of the low-income housing credit, which would aid the construction of up to 1.6 million affordable homes over the next 10 years by increasing the total tax credits allocated to states and easing some public financing requirements to make it easier for housing developments to qualify. Sen. Young is planning to push for key provisions of the measure to be included in the forthcoming reconciliation package.  

April 28, 2025

• The Trump Environmental Protection Agency (EPA) announced that it will issue a waiver allowing E-15 gasoline containing a higher percentage of ethanol to be used year-round. This action is pursuant to President Trump’s January 20, 2025 Executive Order, “Declaring a National Energy Emergency.” Historically, E-15 is restricted in the summertime due to concerns about smog. The waiver follows similar waivers the Biden Administration issued allowing E-15 during the summer months in 2022, 2023, and 2024 after gas prices spiked due to the war in Ukraine and sanctions placed on Russia.

April 25, 2025

• Labor Secretary Lori Chavez-DeRemer urged governors to comply with President Trump’s directives ensuring tax dollars are not spent on encouraging or rewarding illegal immigration. In a letter to governors, Chavez-DeRemer said that all states failing to fulfill existing legal obligations will lose federal funding through the Title III UI administrative grant, emphasizing that “unemployment benefits are not a handout for those in the country illegally.” Chavez-DeRemer also said that she instructed the Employment and Training Administration to send a letter to all State Unemployment Insurance Administrators urging them to immediately start using the Department of Homeland Security’s Systematic Alien Verification for Entitlements (SAVE) immigration database for every initial and continuing unemployment claim filed by an individual who indicates that they are not a U.S. citizen.

Around the Country 

Northeast 

• On May 13^th, the Environmental Protection Agency (EPA) reached an agreement with local developers Blaylock Holdings, LLC, and Greenfield Environmental Trust Group for remediation and beneficial reuse of the Granite State Leathers Site in Nashua, NH that will include excavation of hazardous tannery waste, landfill material and asbestos containing material, disposal of waste in a newly constructed waste containment cell, and general property restoration. Under the agreement, the cleanup costs are being shared with the developers through partial reimbursement to the developer. Upon completion, Blaylock plans to redevelop the area into 546 residential units. The total estimated cost of the cleanup will be $31 million, of which EPA will contribute up to $9.5 million.

• On May 8^th, the FBI and the U.S. Attorney’s Office in Albany, NY opened a criminal investigation into New York Attorney General Letitia James over allegations of mortgage fraud. Federal Housing Finance Agency Director William Pulte sent a letter to Attorney General Pam Bondi saying that James “falsified records” to secure a home loan on a property in Virginia as her “principal residence” in 2023, when she was serving as New York Attorney General. Pulte’s letter went on to note that in 1983, James and her father signed a mortgage stating they were “husband and wife in order to secure a home mortgage. Then, on May 4, 2000, Ms. James was listed again as ‘husband and wife’ in documents. While this was a long time ago, it raises serious concerns about the validity of Ms. James’ representations on mortgage applications.”

• On May 6^th, New York City and its Metropolitan Transportation Authority (MTA) asked a federal judge to block the Trump Administration from cancelling Manhattan’s congestion pricing program. Specifically, lawyers are seeking an order to block Transportation Secretary Sean Duffy’s effort to kill the program and his threat to withhold approval for advance construction projects within Manhattan, National Environmental Policy Act approvals for projects within Manhattan, and potentially billions of dollars in funding through the Federal Highway Administration.

• On May 4^th, Rep. Elise Stefanik (R-NY) said she is “strongly considering” a run for New York governor in 2026.

• On May 1^st, former Maine Gov. Paul LePage (R) filed paperwork to run against Rep. Jared Golden (D) in Maine’s 2^nd Congressional District.

• On April 29^th, the Washington Commanders announced a deal to leave the team’s current stadium in Landover, MD and move to a new $3.7 billion stadium complex that will be built in Washington, DC on the grounds of Robert F. Kennedy Memorial Stadium. The new stadium, expected to open in 2030, will be part of a larger redevelopment project that will include housing, restaurants, parkland and retail.

West

• On May 12^th, the Interior Department announced that it has expedited permitting review of Anfield’s Velvet-Wood Mine in San Juan County, UT to produce uranium and vanadium. Interior notes that Anfield also plans to restart the Shootaring Canyon Uranium Mill in Utah to convert uranium into uranium concentrate.

• On May 1^st, the Environmental Protection Agency (EPA) approved a request from the Wyoming Department of Environmental Quality (WDEQ) to allow the expansion of uranium mining in Sweetwater County, WY. The EPA approval allows WDEQ to issue a permit for a Class III injection well to inject fluids to dissolve and extract uranium.

Northwest 

• On April 28^th, the U.S. Coast Guard announced an extension of the timeline to finalize the Programmatic Environmental Impact Statement (PEIS) for expansion and modernization of the Base Seattle Project in Washington State from April 30, 2025 to October 31, 2025. The Base Seattle Project includes: (1) demolishing existing, deficient buildings 1, 2, 2 Annex, 10, and 12, and consolidating the functions of these buildings into a new three-story, approximately 36,000-square-foot Mission Support Building, and a new five-story, approximately 75,000-square-foot Base Administration Building; (2) rehabilitating or rebuilding Building 7 and a small area of Terminal 46 to meet current needs, as well as building codes and seismic standards, and other potential seismic stabilization throughout the Base; (3) upgrading the main gate of the Base and the security fencing and functions, including expanding fencing to incorporate any newly acquired property; (4) modernizing and realigning communications, electrical, natural gas, sanitary sewer, potable water, and storm sewer utilities; and (5) realigning parking, roadways, walkways, and landscaping.

Midwest 

• On May 9^th, the Ohio Republican Party officially endorsed Vivek Ramaswamy as its candidate for governor. The announcement is a major boost for Ramaswamy’s bid to potentially clinch the Republican nomination and succeed termed-out Gov. Mike DeWine (R).

• On May 7^th, Rep. Raja Krishnamoorthi (D-IL) announced a bid for retiring Senator Dick Durbin’s (D) Illinois Senate seat. This followed Rep. Robin Kelly’s (D-IL) May 6th launch of a bid for retiring Sen. Durbin’s seat.  

• On May 5^th, Rep. Jan Schakowsky (D-IL), Chief Deputy Whip and Ranking Member on the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade announced she will not seek re-election in 2026.

• On April 29^th, Rep. Angie Craig (D-MN) announced a Democratic primary bid for retiring Sen. Tina Smith’s (D-MN) U.S. Senate seat.

• On April 28^th, Michigan State Rep. Donavan McKinney launched a Democratic primary campaign in Michigan’s 13^th Congressional District aiming to unseat second-term Rep. Shri Thanedar (D-MI).

Southeast

• On May 12^th, the Federal Energy Regulatory Commission (FERC) announced it has prepared a final supplemental environmental impact statement (EIS) to address a November 27, 2024 Commission Order related to Venture Global CP2 LNG, LLC and Venture Global CP Express, LLC’s plans to construct, install, operate, and maintain certain liquefied natural gas (LNG) facilities in Cameron Parish, LA and certain pipeline facilities in Cameron and Calcasieu Parishes, LA and Jasper and Newton Counties, TX. The final EIS concludes that the impacts from the projects on air quality are not significant. The final EIS is available here.

• On May 12^th, Georgia Insurance Commissioner John King (R) announced a bid for U.S. Senate against incumbent Sen. Jon Ossoff (D-GA). This followed Rep. Buddy Carter (R-GA) jumping in on May 8^th as the first Republican to announce a bid against Ossoff. Carter jumped into the race only after Georgia Republican Gov. Brian Kemp announced on May 5^th that he will not run against Ossoff in the 2026 midterms, dealing a blow to Republicans who view the two-term governor as the best prospect to defeat Ossoff. 

• On May 6^th, Fairfax County, VA Supervisor James Walkinshaw (D) launched a bid for retiring Rep. Gerry Connolly’s (D-VA) seat in Virginia’s 11^th Congressional District. Shortly after his announcement, Connolly said he was endorsing Walkinshaw’s bid. The developments follow Connolly’s April 28^th announcement he would be stepping down from his leadership position on the House Oversight Committee “soon” and would not run for re-election, citing the return of esophageal cancer.

Southwest

• On May 12^th, a new poll from GOP super PAC the Senate Leadership Fund found that Sen. John Cornyn (R-TX) is trailing primary challenger Texas Attorney General Ken Paxton 56% to 40%. If Rep. Wesley Hunt (R-TX) joins the field, then Paxton leads Cornyn 44% to 34% with Hunt receiving 19% support.

• On May 2^nd, the Nuclear Regulatory Commission (NRC) announced receipt of a Request for Approval of a Construction Permit for a Four-Unit Small Modular Reactor Facility in Calhoun County, TX from Long Mott Energy, LLC—a wholly owned subsidiary of the Dow Chemical Company. It is the first NRC application seeking approval to build reactors based on X-energy’s Xe-100 high-temperature gas-cooled small modular reactor (SMR) design. If approved, the Long Mott Generating Station would be the first grid-scale advanced nuclear facility at an industrial site in North America. The four new SMRs would replace existing energy and steam assets at Dow’s Seadrift chemical plant in Calhoun County, TX. Dow says construction could begin later this decade and hopes to have the Long Mott Generating Station begin operating in the early 2030s. On May 15^th, the NRC said it accepted the construction permit application, in a speedy response to the applicant highlighting recent changes to NRC processes resulting from the MCAA-supported ADVANCE Act.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, April 7, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

President Trump Imposes 10% Universal Tariff and Higher Rates for Nations Based on their Trade Imbalances with the U.S.

Last week ended with the stock market collapsing as MCAA (and everyone else in Washington) was busy comprehending the President’s across-the-board 10% tariffs on almost all imported goods and country-specific reciprocal tariffs for almost every nation on earth. Notably, Canada and Mexico are not covered by the new 10% global tariff or the new reciprocal tariffs but continue to face the tariff regime President Trump previously imposed on our North American neighbors. The President also exempted certain products from his new global and reciprocal tariffs, including: (1) energy and other minerals that are not available in the United States; (2) steel and aluminum articles (which are already tariffed by previous Presidential actions); (3) automobiles and auto parts already subject the recent Section 232 tariffs; (4) copper; (5) pharmaceuticals; (6) semiconductors; (7) lumber articles; (8) all articles that may become subject to future Section 232 tariffs; and (9) bullion.

Additionally, last Wednesday, April 2^nd, President Trump’s previously-announced 25% secondary tariff on any nation that buys oil and gas from Venezuela took effect. The President justified this action as a response to Venezuela sending “tens of thousands of high level, and other criminals, many of whom are murderers and people of a very violent nature” to the U.S.—clearly referring to members of the Tren de Aragua gang that the Administration has designated as a foreign terrorist organization. 

Moreover, President Trump’s previously announced 25% auto tariffs took effect as scheduled last Thursday, April 3, 2025 and duties on automotive part imports will begin on May 3^rd. Even the beer we’ll be drinking as we watch the Final Four this weekend was hit with new tariffs last week along with the aluminum beer cans in which it comes. The Trump Administration also ended the de minimis exemption from tariffs on goods from China and Hong Kong valued at less than $800.

As noted above, shortly after the President’s press conference last Wednesday announcing the tariffs, the Senate voted 51-48 to pass a resolution against President Trump’s 25% tariffs on Canadian imports based on an emergency related to the amount of fentanyl crossing the Canadian border. Four Republicans—Sens. Mitch McConnell (KY), Rand Paul (KY), Susan Collins (ME), and Lisa Murkowski (AK)—joined with Democrats in support of the resolution. The resolution faces an uphill battle in the Republican-controlled House after GOP leadership included provisions in the rule to consider the continuing resolution funding the government language stripping the Senate passed revolution of privileged status and leaving it to the discretion of GOP House leaders whether to bring it up this Congress. Following the vote, Sen. Tim Kaine (D-VA) said it was “likely” that Democrats would take aim at the President’s new, more sweeping tariffs announced last week but that a vote will not occur until after the Senate’s two-week Easter recess. Separately, Sens. Chuck Grassley (R-IA) and Maria Cantwell (D-WA) introduced legislation requiring the President to notify Congress within 48 hours of the imposition of any tariffs and for Congress to explicitly approve any new tariffs within 60 days. The bill would also allow Congress to end any tariff at any time.

Over the last two weeks, the Administration pushed back on criticism of its tariff policies with a March 26^th fact sheet on “The Staggering Cost of the Illicit Opioid Epidemic in the United States,” justifying President Trump’s tariff plans by asserting that in 2023 fentanyl and other illicit opioids “which typically originate in China and are trafficked through Mexico” cost Americans an estimated $2.7 trillion and “dwarfs even pessimistic estimates of the effects of tariffs, like that of Goldman Sachs, who estimated losses of 0.4 percent of GDP.” More recently, after last Wednesday’s tariffs, the White House issued a fact sheet and a document with statements supporting the latest tariffs that includes a quote from NECA President David Long.

Possible USTR Action that May Impede Supply Chains

In addition to tariffs, the MCAA policy team has been busy with another threat to supply chains. We monitored hearings held by the Office of the U.S. Trade Representative (USTR) on March 24^th and 26^th to hear feedback on its proposal to establish new fees on vessels that enter U.S. ports. As proposed, the fees would apply to an estimated 98% of the global commercial shipping fleet because the fees apply to both existing Chinese-built vessels or future vessels in the order books of carriers, and any carrier with at least one order on the books for a vessel made in China. The fees are intended to counter China’s rise as a maritime power and to bolster U.S. shipping. It is estimated the new fees would double the cost of shipping goods to the U.S. 

During the hearings, about 300 companies, trade groups, and individuals submitted comments or spoke in opposition to USTR’s proposal. Opponents of the proposal pointed to a study from the economic analysis firm Trade Partnership Worldwide concluding that USTR’s proposed remedies would have a net negative impact on the U.S. economy, could send exports of oil down as much as 18.6%, and exports of coal down as much as 24.5%. The International Longshore and Warehouse Union, which represents 22,000 dockworkers on the West Coast, said it supports the rebuilding of the domestic shipbuilding industry while addressing Chinese dominance over the maritime sector but urged USTR to ensure U.S.-bound cargo is not diverted because of these efforts. 

DOE Identifies 16 Sites Across the Country for Data Center and AI Infrastructure Development

On a more positive note, last Thursday, the U.S. Energy Department (DOE) announced plans to co-locate data centers and install new energy infrastructure for artificial intelligence (AI) on 16 DOE-owned lands. In a related request for information (RFI), DOE seeks public feedback to “assess industry interest in developing, operating, and maintaining AI infrastructure on select DOE-owned or managed lands, along with information on potential development approaches, technology solutions, operational models, and economic considerations associated with establishing AI infrastructure on DOE sites. In addition, this RFI seeks input from grid operators that serve DOE sites on opportunities and challenges associated with existing energy infrastructure and potential co-location of data centers with new energy generation. The 16 proposed sites are: (1) the Idaho National Laboratory; (2) the Paducah Gaseous Diffusion Plant; (3) the Portsmouth Gaseous Diffusion Plant; (4) the Argonne National Laboratory; (5) the Brookhaven National Laboratory; (6) the Fermi National Accelerator Laboratory; (7) the National Energy Technology Laboratory; (8) the National Renewable Energy Laboratory; (9) the Oak Ridge National Laboratory; (10) the Pacific Northwest National Laboratory; (11) the Princeton Plasma Physics Laboratory; (12) the Los Alamos National Laboratory; (13) the Sandia National Laboratories; (14) the Savannah River Site; (15) the Pantex Plant; and (16) the Kansas City National Security Campus. DOE’s goal is to commence operations at selected sites by the end of 2027. Comments on the RFI can be submitted by email to aiinfrastructure@hq.doe.gov and are due 30 days after the RFI publishes in the Federal Register this week. MCAA is getting more information about this effort because it could result in work for our contractors.

Notable Trump Nominations 

Last Tuesday, President Trump nominated Equal Employment Opportunity Commission (EEOC) acting General Counsel Andrew Rogers as head of the Labor Department’s Wage and Hour Division. Trump also nominated attorney Jonathan Berry as Labor Department Solicitor. Rogers previously worked at the Wage and Hour Division during the first Trump Administration and later moved to the EEOC, where he was former chief counsel to Republican commissioner and now acting EEOC Chair Andrea Lucas. Berry is a former chief counsel to Trump and was principal deputy assistant secretary for policy at the Labor Department during the president’s first term, a role that put him in charge of crafting and approving agency regulations. On March 31^st, President Trump nominated Morgan Lewis Attorney Crystal Carey to be the National Labor Relations Board’s (NLRB) General Counsel. Carey has worked at Morgan, Lewis, and Bockius LLP for the last eight years and counseled clients in a variety of industries, including transportation, healthcare, manufacturing, retail, hotel and hospitality, and others. Before that, Carey worked at the NLRB for over eight years, both as an attorney under the general counsel, and then as a senior counsel for the NLRB during the Obama and first Trump Administrations. On March 25^th, President Trump nominated acting Equal Employment Opportunity Commission (EEOC) Chair Andrea Lucas to another five-year term. Lucas was previously confirmed as an EEOC Commissioner in October 2020 during Trump’s first term. So far in President Trump’s second term, Lucas has played a leading role in implementing the President’s executive order on diversity, equity, and inclusion at the EEOC.

U.S. Appeals Court Rules President Trump May Remove Independent Agency Heads

On March 28^th, the U.S. Court of Appeals for the District of Columbia upheld President Trump’s authority to fire National Labor Relations Board (NLRB) Member Gwynne Wilcox without cause in a 2-1 decision. The Court also ruled that Trump has the authority to remove Board Member Cathy Harris from the Merit Systems Protection Board (MSPB). The decision seems to contradict Supreme Court precedent affirming congressional restrictions on the President’s authority to fire NLRB Commissioners and other heads of independent agencies. Judge Justin Walker, who was appointed by President Trump during his first term, explained the court’s decision in terms reflecting the Administration’s unitary executive argument, stating that “[t]he people elected the president to enforce the nation’s laws, and a stay serves that purpose by allowing the people’s chosen officer to control the executive branch.” The D.C. Circuit ruling amounts to a significant expansion of the President’s power over independent agencies. We expect the case to ultimately be decided by the U.S. Supreme Court.

Congress

Closer Than Expected Florida Special Elections Lead President Trump to Withdraw Stefanik Nomination as U.N. Ambassador

In special elections in Florida last Tuesday, Republican Jimmy Patronis defeated Democrat Gay Valimont in Florida’s 1^st Congressional District and Republican Randy Fine defeated Democrat Josh Weil in Florida’s 6^th Congressional District. Despite the Republican wins, the final results marked an overperformance for Democrats, given that Trump won each seat by more than 30 points in November and Fine and Patronis saw a 14- and 15-point victory, respectively. The warning signs about a potential Democratic overperformance came weeks before the votes when the Democratic candidates significantly outraised their Republican opponents and polling showed a tight race in Florida’s 6^th District. Republicans grew so worried about the races that on March 27^th, President Trump pulled Rep. Elise Stefanik’s (R-NY) nomination to be U.N. Ambassador over concerns that a Democrat could similarly overperform and win a potential special election for her seat and further narrow Republicans’ already slim majority. With the election of Patronis and Fine, Republicans currently hold a 220-213 majority in the House. However, the majority is expected to shrink further once special elections in Democratic-heavy seats in Arizona’s 7^th Congressional District (September 23^rd) and Texas’ 18^th Congressional District (TBD) are held later this year.

House Ed & Workforce Chair Letter to DOL Secretary Chavez-DeRemer 

The MCAA policy team has had some mixed result in its engagement with House Education and Workforce Committee Chair Tim Walberg (R-MI) that are reflected in the letter he sent to Labor Secretary Lori Chavez-DeRemer. We are pleased the letter reflects the discussions we had with committee staff about the Chairman requesting withdrawal of the MCAA-opposed Occupational Safety and Health Administration’s proposed rule on “Heat Injury and Illness in Outdoor and Indoor Work Settings” and the DOL EBSA’s final rule, “Requirements Related to the Mental Health Parity and Addiction Equity Act,” that MCAA has been working with NCCMP to have rescinded or materially revised. We are dismayed that the letter requests rescission of MCAA-supported Wage and Hour Division final rules on “Updating the Davis-Bacon and Related Act Regulations” and “Employee or Independent Contractor Classification under the Fair Labor Standards Act.” During the Easter Recess, we will be following up with the Committee on these issues.

MCAA Issues and Interests 

Project Labor Agreements and Davis-Bacon Prevailing Wage

DOJ Launches Anticompetitive Regulations Task Force

As the MCAA policy team continues its outreach to the Trump Administration to lobby in favor of maintaining MCAA-supported, Biden-era rules on PLAs and Davis-Bacon, we learned of a new DOJ task force that may pose a threat to these critical MCAA regulatory wins. On March 27^th, the Department of Justice established the “Anticompetitive Regulations Task Force” to implement President Trump’s executive orders on “unnecessary regulatory burdens” and direct a review of all federal regulations to identify those that “impose undue burdens on small businesses and impede private enterprise and entrepreneurship.” We expect opponents of Davis-Bacon and PLAs are already working to use this forum to go after PLAs and Davis-Bacon and those opposed to the MCAA’s efforts on misclassification are using this forum to advocate for repeal of MCAA-supported Biden-era regulations on Davis-Bacon, PLAs and Independent Contractor Status. The Task Force is led by DOJ’s Antitrust Division—an agency with which MCAA does not usually deal. The Antitrust Division has attorneys, economists, and other staff who will prioritize regulations for removal. We are coordinating with our union and employer allies on a strategy to deal with this task force. 

MCAA Engaging Energy Department Evaluation of “Construction Labor Agreements” DOE’s 17 National Nuclear Labs

Relatedly, the MCAA policy team is engaged on the Department of Energy’s evaluation of PLA language from the facilities maintenance and construction agreements the agency has with its 17 National Nuclear Laboratories. Two weeks ago we learned that DOE planned to remove language on PLAs and raised it with the Trump Administration. After some back and forth we were assured that DOE is now just “initiating a process to assess” the benefits and risks of “removing construction labor agreement provisions from National Laboratory contracts.” DOE formalized this assessment on March 27^thas part of an effort “to ease burdensome permitting rules and regulations” for construction projects at the National Labs. At this point, our early outreach halted any immediate action to rescind PLA provisions in this contract and forced DOE to take a more deliberative approach to evaluating the benefits/risks of the PLA provisions. But it’s clear where DOE wanted to go before we intervened with the Trump Administration. We’re currently coordinating with our allies to present a united front and attempt to convince the Trump Administration of the value of PLAs and get the Administration to press the Energy Secretary to reconsider eliminating PLAs on these contracts. We have already shared with DOE the joint MCAA/UA study from Independent Project Analysis entitled Quantifying the Value of Union Labor in Construction Projects and will see if they really want to conduct meaningful analysis.  

Registered Apprenticeship

President Trump Signs Executive Order Rescinding Biden EO on Apprenticeship

On March 14^th, the Trump Administration signed an Executive Order entitled Additional Rescission of Harmful Executive Orders and Actions that rescinded 18 Biden executive actions. Among them is President Biden’s Executive Order 14119 of March 6, 2024 Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums. This EO directed federal agencies to encourage pre-apprenticeship and registered apprenticeship programs through terms of grants, contracts, and financial assistance awards. Issuance of the EO came as a surprise to the policy team and our union and employer partners as we were led to believe throughout the Trump transition and early days of the Administration that apprenticeship was going to be left out of the initial rush of executive orders to begin Trump’s second term. Notably, after we reached out to high level contacts at the Trump DOL, we were informed that they were also caught off-guard and did not get advance notice before this EO issued. This is yet another example of the frenetic approach to governing that has characterized the first months of the Trump Administration and shows how much policy is being crafted in silos at the White House, without the input of relevant cabinet departments. 

DOL Rescinds Biden-Era Directive that Allowed Grantees to Provide Job Training Services to Non-Citizens 

As the MCAA policy team continues outreach to the Trump Labor Department (DOL) on registered apprenticeship issues like opposing the resurrection of concepts included in the Biden-era proposed rule on National Apprenticeship System Enhancements and the potential resurrection of Industry-Recognized Apprenticeship Programs from Trump’s first term, we learned that DOL on March 27^th issued “Training and Employment Guidance Letter (TEGL) No. 10-23, Change 1” rescinding the Biden-era DOL’s February 2024 TEGL No. 10-23 directing DOL grant recipients providing workforce training and readiness to reduce to the greatest degree possible “unnecessary administrative barriers to serving customers seeking employment and training services.” The Biden-era TEGL allowed DOL grant recipients to train undocumented immigrants. To this end, the now rescinded Biden-era TEGL removed several items from job training applications, including: (1) Social Security Numbers; (2) work authorizations; and (3) Selective Service registrations. The rescinded Biden-era TEGL also directed grantees to aid public workforce system participants in obtaining drivers licenses and other documents that facilitate employment regardless of their status.

Independent Contractors and Misclassification of Workers 

Ed & Workforce Subcommittee on Workforce Protections Subcommittee

On March 25^th, the House Education and the Workforce Subcommittee on Workforce Protections held a hearing entitled, “The Future of Wage Laws: Assessing the FLSA’s Effectiveness, Challenges, and Opportunities.” Leading up to the hearing, the MCAA policy team worked with Democrats on the Subcommittee to press our concerns on misclassification but only Subcommittee Ranking Member Ilhan Omar (D-MN) really engaged during the hearing. She focused on the importance of more staff at the Wage and Hour Division to police misclassification and criticized the Trump Administration’s efforts to cut Wage and Hour staff at the Labor Department. Omar also emphasized the need to strengthen the Fair Labor Standards Act to tackle wage theft. However, in a sign of where Republicans plan to go on independent contractor issues, Subcommittee Chair Ryan Mackenzie (R-PA) assailed the Biden-era MCAA-supported independent contractor rule, calling it “an unworkable, ABC-style worker classification test…that limits the ability of independent contractors to earn a living.” Mackenzie’s comments reinforced the importance of the policy team’s ongoing outreach to members on both sides of the aisle in Congress to educate them on the prevalence of misclassification in the construction industry and the ways in which misclassification harms honest employers, workers, and taxpayers.

Decarbonization

Working with Sen. Cruz’s Office to Pass CRA on Gas-Fired Water Heaters 

Last week, the MCAA continued its ongoing work with Sen. Ted Cruz (R-TX) to pass a Congressional Review Act (CRA) resolution rescinding the Biden-era Energy Department’s rule mandating increased energy efficiency standards for natural gas-fired tankless water heaters. As noted in our March 7^th report, the MCAA successfully lobbied the House to pass this legislation on February 27^th by a vote of 221-198. A vote in the Senate was delayed this week after Sen. Cory Booker (D-NJ) occupied the Senate floor for a 25+ hour speech opposing the Trump agenda, which caused a number of floor priorities to be pushed back by at least a day. In our discussions with Sen. Cruz’s staff, we were informed that leadership assured them that a vote on the CRA would come before the two-week Easter recess and MCAA is continuing to rally support for it.

Relatedly, the Senate last Thursday voted 53-42 to pass a CRA resolution (H.J. Res 24) to nullify the Biden-era rule establishing energy efficiency standards for walk-in coolers and walk-in freezers. The House already passed this CRA on March 27^th in a 203-182 vote and the bill is on its way to President Trump for his signature. Also on March 27^th, the House voted 214-193 to pass a separate CRA to undo energy efficiency standards for commercial refrigerators, freezers, and refrigerator-freezers. That resolution is pending in the Senate. 

Energy Department Postpones Effective Dates for Three Home Appliance Rules

Following outreach from the MCAA, the Trump Energy Department on March 24^th announced several actions pursuant to President Trump’s Executive Order on “Unleashing Prosperity through Deregulation.” First, the Department has indefinitely postponed the effective dates for three home appliance rules: (1) Test Procedures for Central Air Conditioners and Heat Pumps; (2) Efficiency Standards for Walk-In Coolers and Freezers; and (3) Efficiency Standards for Gas Instantaneous Water Heaters. Additionally, DOE announced the cancellation of conservation standards on dehumidifiers, electric motors, ceiling fans, and external power supplies.

SEC Votes to End Defense of Rules Requiring Disclosure of Climate-Related Risks and GHG Emissions

In another positive development on the decarbonization front, on March 27th, the Securities and Exchange Commission (SEC) voted to end its defense of regulations requiring the disclosure of climate-related risks and greenhouse gas emissions by SEC registrants in registration statements and annual reports that were set to go into effect in 2026. Specifically, the rules required companies to disclose their greenhouse-gas emissions, including direct emissions such as burning fuel for a company’s operations. This move was something the MCAA policy team had encouraged during the Trump transition following the November elections given the negative impact these regulations would have on companies in the oil and gas industry. We were assured at that time that the SEC would take this action once the Trump Administration got its team in place and we are pleased to see them follow through here. 

USDA Releases Billions in Previously Obligated Clean Energy Funding

On March 26^th, the Agriculture Department (USDA) announced that it will release nearly $3.4 billion in previously obligated funding under the Empowering Rural America (New ERA) program funding rural energy cooperatives; the Powering Affordable Clean Energy (PACE) program funding solar, hydropower, geothermal, or biomass projects; and the Rural Energy for All Program (REAP) to help agricultural businesses purchase and install clean energy systems or make energy efficiency improvements. These investments include $3.2 billion for the New ERA Program, $134 million for the PACE Program, and $28 million for REAP. According to USDA, however, rural electric providers and small business recipients will have “to refocus their projects on expanding American energy production while eliminating Biden-era DEIA and climate mandates embedded in previous proposals.” They will also have to “shift away from the Green New Deal and the so-called Inflation Reduction Act and toward practical energy investments that prioritize the needs of rural communities” consistent with President Trump’s January 20, 2025 Executive Order entitled, “Unleashing American Energy.” The USDA Rural Development office is individually contacting awardees about these changes.

DOE Reissues $900 Million Solicitation for Deployment of Small Modular Reactors to Support Electricity Demand Growth

Another piece of good news is that on March 24^th, the Trump Energy Department announced the reissuance of a $900 million solicitation for deployment of small modular reactors to support electricity demand growth. DOE is offering funding to de-risk the deployment of Generation III+ light-water small modular reactors (Gen III+ SMR) through two tiers: (1) the ”First Mover Team Support” will provide up to $800 million to support up to two first mover teams of utility, reactor vendor, constructor, and end-users/off-takers committed to deploying a first plant while facilitating a multi-reactor, Gen III+ SMR orderbook; and (2) the “Fast Follower Deployment Support” will provide $100 million to address key gaps that have hindered the domestic nuclear industry in areas such as design, licensing, supply chain, and site preparation. Applications are due on April 23, 2025 by 5pm ET. As MCAA continues to meet with the new Administration and members of Congress we continue to sense deep, bipartisan support for nuclear energy.

Federal Contracting 

MCAA Joins Joint Letter to House T&I on WIFIA Subcontractor Bill

As part of the MCAA’s efforts to enact the “Water Infrastructure Subcontractor and Taxpayer Protection Act” (H.R. 1285), we coordinated last week with the broader Water Infrastructure Finance and Innovation Act (WIFIA) coalition to draft a letter to the Chair and Ranking Member of the House Transportation and Infrastructure Committee to request a markup of this bill. This bill requires prime contractors on federally financed water infrastructure projects to hold surety bonds, ensuring local sponsors and subcontractors are compensated if a contractor defaults before project completion. The letter is expected to go up to the Hill this week and we will keep you updated as the bill makes its way through the legislative process.

President Signs EO Establishing Office to Administer CHIPS Monies Amid Commerce Secretary’s Freeze on Previously Announced CHIPS Act Awards

On March 31^st, President Trump signed an executive order establishing an office within the Commerce Department called the United States Investment Accelerator to facilitate and speed up investments of more than $1 billion in the U.S. and administer federal funds from the CHIPS and Science Act. This new office is intended to encourage companies to make large investments in the U.S., with an eye toward reducing regulations, speeding up permitting, increasing access to national resources, and facilitating collaboration across national laboratories and state governments. The Investment Accelerator will also be responsible for administering the CHIPS Program Office, where President Trump expects it to negotiate “much better CHIPS Act deals than the previous Administration.” 

The Accelerator comes as Commerce Secretary Howard Lutnick continues to withhold funds from CHIPS Act awards to push companies to substantially expand their U.S. projects, like Taiwan Semiconductor Manufacturing Co. recently did when it announced it will invest another $100 billion in U.S. plants on top of a previous $65 billion pledge. Lutnick’s goal is to generate tens of billions of dollars in additional semiconductor investment commitments without increasing the size of federal grants. The MCAA policy team has been advocating for Commerce to release the funds for CHIPS Act projects on which MCAA members have been engaged and provide certainty to businesses developing these facilities. 

Other Interesting Things Since Our Last Report 

April 3, 2025

• The Employee Benefits Security Administration (EBSA) released several documents in connection with the operation of ERISA’s Section 101(f) annual funding notice requirements for multiemployer and single employer pension plans following enactment of section 343 of SECURE 2.0 modifying these notice requirements. Section 101(f) of ERISA generally requires the administrators of defined benefit plans (both multiemployer and single-employer) to furnish an annual funding notice to participants, beneficiaries, the Pension Benefit Guaranty Corporation, and certain other persons. EBSA also issued model funding notices for both multiemployer plans and single-employer plans that may be used to satisfy the mandatory disclosure requirements of ERISA section 101(f) as amended by section 343 of SECURE 2.0. Additionally, EBSA has released Field Bulletin 2025-02 providing a Q&A format regarding the methodology for measuring the value of assets, liabilities, and funding level. 

• Federal contractor organizations are warning that President Trump’s executive order requiring agencies to build a centralized payment system for all contracts and grants may lead to higher costs for agencies due to interest charges on late payments to government contractors under the Prompt Payment Act. The interest rate under the law for the first six months of 2025 is 4.625%.  

April 2, 2025

• The Trump Energy Department (DOE) announced the rescission of a Biden-era April 2023 policy statement requiring authorized liquefied natural gas exporters to meet stringent criteria before DOE approved extensions of export authorizations, including that the associated export project be under construction, and the authorization holder needed to demonstrate that extenuating circumstances outside its control prevented the commencement of exports within seven years.

April 1, 2025

• House Oversight Committee Chair James Comer (R-KY) and House Energy and Commerce Chair Brett Guthrie (R-KY) announced a review of the Government Accountability Office’s (GAO) decision contradicting the Trump Environmental Protection Agency’s determination that Biden-era waivers from the Clean Air Act granted to California for its “electric vehicle mandate” should be considered as rules for purposes of the Congressional Review Act. On March 6^th, the GAO published its “observations” that the preemption waivers for California were “not a rule for purposes of the CRA because it was an order under the Administrative Procedure Act.”

March 31, 2025 

• U.S. District Court Judge Edward Chen blocked the Trump Administration from curtailing Temporary Protected Status (TPS) for 600,000 Venezuelan immigrants living in the U.S. Chen said that DHS Secretary Kristi Noem’s decision to curtail TPS protections was an unprecedented, legally flawed move that appeared to be rooted in racial discrimination by both Noem and President Donald Trump. 

• Brookfield Asset Management is putting the final touches on a deal to acquire Colonial Pipeline, the largest U.S. fuel transportation system, for more than $9 billion including debt. Colonial’s pipeline system stretches over 5,500 miles from Houston, Texas to New York’s harbor. It moves more than 100 million gallons of fuel daily, including gasoline, jet fuel, diesel and heating oil. 

March 30, 2025

• President Trump made clear he is serious about possibly of seeking a third term during an NBC interview. Trump said, “There are methods which you could do it. A lot people want me to do it. But I mean, I basically tell them we have a long way to go, you know, it’s very early in the administration.”

March 27, 2025

• The Trump Environmental Protection Agency (EPA) launched a portal to allow companies to request exemptions from Clean Air Act (CAA) rules setting limits on pollution from industries including coal plants, iron and steel manufacturing, chemical manufacturing, copper smelting, and sterilizers. The exemptions would be based on the President’s power under the CAA to exempt companies from complying with regulations if he determines that the rules are based on technology that is not yet feasible. 

• The Congressional Budget Office released its long-term budget and economic outlook report (from 2025 to 2055) that projected publicly-held debt to reach 156% of gross domestic product in 2055. That’s down from the agency’s March 2024 long-term budget projection, which said publicly held debt would be equal to a record 166% of American economic activity by 2054. The report projected that tax revenue will come in slightly higher than expected and the U.S. economy will see a slightly lower growth rate due to lower-than-anticipated growth in private investment and consumer spending, as well as slower labor force growth in the final decade of the 30-year outlook.  

• The Wall Street Journal reported that health insurers got paid at least $4.3 billion in duplicative payments by state and federal governments to cover low-income Medicaid recipients over three years who were enrolled—and paid for—in other states. The patients were signed up for Medicaid in two states at once, in many cases following a move from one state to the other. Most were getting all their healthcare services through one insurer in one state, even though Medicaid was paying insurers in both states to cover them.

• Roll Call published a rundown of the Democratic House candidates who lost in 2024 and are or may be seeking a rematch next year as Democrats look for “candidates who ‘rose above the brand [and] overperformed’ compared with Vice President Kamala Harris in her race against Donald Trump.” Featured Democratic candidates include Pennsylvania’s Janelle Stelson, Wisconsin’s Rebecca Cooke, and Arizona’s Marlene Galán-Woods.

• EMILY’s List, a PAC that works to elect Democratic female candidates supportive of abortion rights, released a list of 46 House Republicans the PAC is targeting in the 2026 midterm elections.

March 25, 2025

• President Trump signed an executive order (EO) on “Preserving and Protecting the Integrity of American Elections” that imposes “voter citizenship verification and bans foreign nationals from interfering in U.S. elections.” Specifically, the EO requires: (1) the Election Assistance Commission to require documentary, government-issued proof of U.S. citizenship on voter registration forms; (2) giving states access to Department of Homeland Security, Social Security, and State Department databases to verify eligibility and citizenship of individuals registered to vote; and (3) conditioning federal election-related funds on states complying with “integrity measures set forth by Federal law,” including that states use the national mail voter registration form that will now require proof of citizenship. The EO further directs that DOJ “take appropriate action against states that count ballots received after Election Day in Federal elections,” with federal election funding conditioned on compliance. On March 31^st, the Democratic National Committee, the Democratic Governors Association, and Senate and House Democratic leaders filed a lawsuit against the EO in the U.S. District Court for the District of Columbia asking the court to block the order and declare it illegal. 

• The American Society of Civil Engineers issued its once-every-four-years report card on the upkeep of America’s infrastructure, giving the country a “C” grade, up slightly from previous reports, largely due to infrastructure investments made during the Biden Administration. The report, which examines everything from roads and dams to drinking water and railroads, also warned that federal funding must be sustained or increased to avoid further deterioration and escalating costs.

Around the Country 

Northeast 

• On April 3^rd, Rep. Chris Pappas (D-NH) announced a Democratic primary run for retiring Sen. Jeanne Shaheen’s (D-NH) U.S. Senate seat. 

• On April 2^nd, the owners of the former Homer City Generating Plant, which was once Pennsylvania’s biggest-coal fired power plant, said they will turn the site into a $10 billion natural gas-powered data center campus designed to capitalize on the fast-growing energy demands of Big Tech companies to power artificial intelligence and cloud computing applications. The project will use infrastructure left on site from the old coal plant and seven gas-fired turbines built by GE Vernova Inc., with first deliveries from GE Vernova expected to begin next year.

• On March 31^st, the Environmental Protection Agency (EPA) announced a public hearing on May 7, 2025 regarding an updated draft of the general permit for all small and regulated “Municipal Separate Storm Sewer Systems” (MS4s) located in Massachusetts. The new draft permit includes new requirements to begin implementing plans developed under a 2016 permit to install controls to treat stormwater runoff on permittee-owned property, begin upgrading catch basins to better control solids in stormwater runoff, develop street design standards that feature nature-based solutions, develop an integrated system to track MS4 assets and maintenance, and expand public engagement. The hearing on the updated draft permit will be held virtually on May 7, 2025 at 7pm ET and those who wish to participate must register here in advance of the meeting.

• On March 25^th, a new poll found that Sen. Susan Collins (R-ME), who is up for re-election in 2026, has a negative approval rating with just 24% of Mainers saying they approved of her and 61% saying they disapproved. The poll’s crosstabs also show she is being pinched on both sides—she’s upside down with Kamala Harris voters at 17/71 and with Donald Trump voters at 30/52.

West

• On April 2^nd, the Federal Trade Commission (FTC) announced it is seeking public comment on a petition to reopen and modify a 2022 final consent order involving Verdun Oil Company II LLC’s (Verdun) acquisition of EP Energy LLC (EP), which settled charges that the acquisition would harm competition for the sale of Uinta Basin waxy crude oil to Salt Lake City, Utah refiners. The FTC notes that according to the petition filed by Verdun and EP, there have been significant changes since the FTC order was entered that now justify removing the requirement that Verdun, XCL Resources Holdings, LLC, and their parent entities, EnCap Energy Capital Fund XI, L.P. and EnCap Investments L.P. obtain prior approval from the Commission before engaging in certain acquisition transactions across several counties in Utah.

• On April 1^st, Immigration and Customs Enforcement (ICE) announced the March 27^th arrest of the general manager of San Diego Powder & Protective Coatings in El Cajon, CA and three employees on harboring charges stemming from a search warrant served on the company. The manager was charged with conspiracy to harbor aliens for employing undocumented workers and allowing them to live in the company’s warehouse, while the employees were charged with using false documents to work in the U.S.

• On March 16^th, Interior Secretary Burgum and Housing and Urban Development Secretary Turner wrote in the Wall Street Journal about a newly formed task force to be led by these two secretaries to identify federal land that would be suitable for building affordable housing. The task force is an initial step towards fulfilling President Trump’s pledge to unlock vast swaths of federal land to address America’s housing shortage by transferring or leasing the land to local governments. It seems the effort would focus on western states—such as Nevada, Utah, California, and Arizona—where the Bureau of Land Management controls large amounts of land. On March 17^th, the Wall Street Journal published a more detailed article on what the Trump Administration is envisioning, including how the Administration would, on a “case-by-case” basis, transfer or lease suitable land to public-housing authorities, nonprofits, and local governments or sell it to private developers.  

Northwest 

• On March 31^st, the Trump Energy Department (DOE) announced that the Idaho National Laboratory has debuted a new molten salt test loop that will support the development of advanced reactors using molten salts. Molten salt reactors use molten salt as a coolant, and in some instances as a liquid fuel, offering enhanced safety features and the ability to operate at high temperatures to generate reliable and secure electricity, as well as process heat which can be used by industry. The new molten salt flow loop will inform the development of molten salt reactors, such as the Molten Chloride Reactor Experiment, one of several advanced reactor designs being supported by DOE’s Advanced Reactor Demonstration Program.

Midwest 

• On April 3^rd, Dan Osborn, the independent U.S. Senate candidate who nearly toppled Sen. Deb Fischer (R-NE) last year, announced he is preparing to challenge Sen. Pete Ricketts (R-NE) in 2026.

• On April 2^nd, State Sen. Mallory McMorrow announced a run in the Democratic primary for retiring Sen. Gary Peters’ (D-MI) U.S. Senate seat. 

• On March 24^th, progressive influencer Kat Abughazaleh announced a primary challenge to Rep. Jan Schakowsky (D-IL) in Illinois’ 9^th Congressional District which includes the northern suburbs of Chicago.  

• On March 17^th, the Department of Energy (DOE) announced the release of a second loan disbursement of $56,787,300 to Holtec for the Palisades Nuclear Plant in Michigan. This is part of a $1.52 billion loan guarantee to Holtec for the Palisades project, which will provide 800MW of affordable, reliable baseload power in Michigan. The loan is a first of its kind effort by the DOE to restart an American nuclear power plant. The restart of the Palisades Nuclear Plant is projected to create or retain up to 600 quality jobs in Michigan.

Southeast

• On March 27^th, the Trump Interior Department announced the disbursement of $353.6 million in energy revenues from offshore oil and gas production to the state and local governments of Alabama, Louisiana, Mississippi, and Texas to support infrastructure projects and coastal restoration and protection projects. The revenue-sharing model for Gulf states to receive a portion of the funds generated from leasing in the Outer Continental Shelf of the Gulf was established by federal regulations in 2017. A full list of the disbursements is available here.

• On March 26^th, the U.S. Coast Guard awarded a $951 million contract to Bollinger Shipyards in Mississippi for the design and construction of the Polar Security Cutter (PSC) program. The PSC program aims to construct four or five heavy icebreakers by 2030—the first new, American-made heavy icebreakers in nearly 50 years.

• On March 24^th, President Trump lauded an announcement from South Korean automaker Hyundai that it will invest $20 billion in the United States, including a new steel plant in Louisiana. Trump praised the commitment as evidence of the positive impact of his tariff policies.

• On March 21^st, the Maritime Administration issued a license authorizing Delfin LNG, LLC, to own, operate, construct, and eventually decommission a deepwater port off the coast of Louisiana to export liquefied natural gas (LNG) from the U.S. The Delfin LNG, LLC deepwater port facility will transport LNG to the global market from U.S. federal waters, approximately 37.4 to 40.8 nautical miles off the coast of Cameron Parish, Louisiana. This deepwater port project will be the first offshore LNG export project in the U.S. and is being issued in accordance with President Trump’s EO “Unleashing American Energy,” signed on January 20, 2025.

• On March 19^th, the Department of Energy (DOE) announced that Secretary of Energy Chris Wright approved a liquefied natural gas (LNG) export authorization for the proposed Venture Global CP2 LNG export project in Cameron Parish, Louisiana. Once constructed, CP2, owned by Venture Global, will be able to export up to 3.96 billion cubic feet per day (Bcf/d) of LNG. The issuance of the export authorization marks the fifth LNG-related approval from DOE since President Trump took office, following an export approval to Commonwealth LNG on February 14, an order on rehearing removing barriers for the use of LNG as bunkering fuel announced on February 28, an approval providing the Golden Pass LNG terminal more time to commence exports issued March 5, and approval granting the Delfin LNG project additional time to commence exports issued on March 10.

Southwest

• On April 3^rd, House Minority Leader Hakeem Jeffries (D-NY) said House Democrats would likely pursue a lawsuit over Texas Gov. Greg Abbott’s (R-TX) delay in calling a special election to fill the late Rep. Sylvester Turner’s (D-TX) seat in Texas’s 18^th Congressional District.

• On March 31^st, Pima County, Arizona Supervisor Adelita Grijalva, the daughter of the late Rep. Raul Grijalva (D-AZ), announced her candidacy for her father’s former seat in Arizona’s 7^th Congressional District. Grijalva framed herself as a “progressive champion” who will stand up to President Trump and fight for working families. 

• On March 31^st, it was revealed that Dow wants to use next-generation nuclear reactors for clean power and steam at a manufacturing complex in Seadrift, Texas instead of natural gas. Dow subsidiary Long Mott Energy applied to the Nuclear Regulatory Commission for a construction permit. It said the project with X-energy, an advanced nuclear reactor and fuel company, would nearly eliminate the emissions associated with power and steam generation at the plant, avoiding roughly 500,000 metric tons of planet-warming greenhouse gas emissions annually. 

Alaska and Hawaii

• On March 26^th, U.S. District Court Judge Sharon Gleason in Alaska ruled that the Biden Administration lacked the authority to cancel oil and gas leases that had been issued for development within the Arctic National Wildlife Refuge in Alaska. In her ruling, Gleason said the Biden Administration needed a court order to cancel the leases.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, March 10, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

Trump Delivers Joint Address to Congress

Last Tuesday, President Trump delivered a joint address to Congress announcing the establishment of a new White House office on shipbuilding to increase U.S. production of commercial and military vessels. In following up on this announcement, MCAA learned that White House staff have already prepared a draft executive order creating this new office and directing 18 separate actions to bolster U.S. shipbuilding. These range from raising revenue for U.S. industry from fees on Chinese-built ships and cranes entering the U.S. to raising wages for nuclear-shipyard workers and instructing Elon Musk’s Department of Government Efficiency to review government procurement processes for ships, including the Navy’s procurement process. President Trump also announced that he is planning to establish a “gigantic” natural gas pipeline in Alaska, saying that “Japan, South Korea, and other nations” want to be a partner in the pipeline. Under “Davis-Bacon Prevailing Wage,” we also discuss the President’s call for repeal of the CHIPS and Science Act during his speech and the MCAA policy team’s related outreach on the law to members of Congress. 

Trump Postpones Some Tariffs on Canada and Mexico Until April 2, 2025 

On March 6^th, President Trump said that he would allow both Mexico and Canada to avoid the 25% tariffs that he put into effect last Tuesday on exports covered by the U.S.-Mexico-Canada Agreement for one month—until April 2, 2025. April 2^nd is also the date that President Trump’s global reciprocal tariffs are supposed to take effect. Last Tuesday, President Trump also raised tariffs on China an additional 10% to a new total of 20%. Treasury Secretary Scott Bessent defended Trump’s tariffs, saying that “access to cheap goods is not the essence of the American Dream.” Instead, Bessent argued that the “American Dream is rooted in the concept that any citizen can achieve prosperity, upward mobility, and economic security.” The broad, temporary exemptions for Canada and Mexico come after some congressional Republicans questioned the wisdom of President Trump’s tariffs, including Sen. Ron Johnson (R-WI), who said that he doubts that new tariffs are an effective way to address concerns about fentanyl entering the U.S. from Canada and Mexico. Sen. Jerry Moran (R-KS) also said he was “uneasy” about the tariffs. House and Senate Republican leadership appeared split on the new tariffs as Senate Majority Leader John Thune (R-SD) said he hoped the tariffs are temporary, but Speaker Mike Johnson (R-LA) said the president is giving countries “a dose of their own medicine.” Congressional Democrats responded to the imposition of Trump’s tariffs by introducing resolutions last Thursday to terminate Trump’s use of authorities under the International Emergency Economic Powers Act (IEEPA) to impose tariffs on Canada and Mexico. The IEEPA allows Congress to introduce a privileged resolution to terminate the President’s use of authorities under the law, which must be brought to the House for a floor vote within 15 days. This vote will be an interesting test of Trump’s ability to enforce discipline with a growing number of GOP members of Congress anxious about the ongoing tariff whiplash. 

Relatedly, on March 1^st, President Trump signed an executive order requiring the Secretary of Commerce to initiate an investigation to determine the effects imports of timber, lumber, and their derivative products have on U.S. national security, along with a separate executive order to stimulate domestic lumber production. These executive orders followed a Trump directive to the Commerce Department on February 25^th to initiate a Section 232 investigation of copper under the Trade Expansion Act to determine the need for new tariffs on copper imports to rebuild copper production critical to the power grid, electric vehicles, military hardware, and many consumer goods. 

Judge Rules Trump Illegally Removed NLRB Member Gwynne Wilcox and Orders Her Reinstated

On March 6^th, U.S. District Judge Beryl Howell in Washington, D.C. ruled that President Trump’s firing of Biden-appointed National Labor Relations Board (NLRB) member Gwynne Wilcox was unlawful and ordered that she be allowed to continue her unexpired term. Howell said that the President’s firing of Wilcox violated federal law that allows for NLRB board members to be removed “only for neglect of duty or malfeasance in office.” Howell also noted in her ruling that “the President seems intent on pushing the bounds of his office and exercising his power in a manner violative of clear statutory law to test how much the courts will accept the notion of a presidency that is supreme.” This is one of many cases currently in litigation that may provide the Administration an opportunity to seek reconsideration of Supreme Court precedents allowing Congress to limit the President’s ability to terminate leaders at independent federal agencies like the NLRB. 

Federal Judges Halt Several Trump Orders Related to Federal Funding Freeze, DEI Initiatives, and Immigration

Over the last two weeks, President Trump’s litany of executive actions faced legal complications. Multiple federal judges indefinitely blocked Trump’s freeze on federal grants and loans. And last week by a 5-4 vote, the Supreme Court declined a Trump Administration request for an emergency stay of an order requiring the Administration to unfreeze USAID funds for the narrow purpose of paying contractors for work already performed pursuant to programs authorized by Congress. On February 24^th, a federal judge blocked the Trump Administration from conducting immigration raids at Quaker, Baptist, and Sikh places of worship based on First Amendment concerns. On February 25^th, a separate federal judge blocked the Administration’s suspension of U.S. refugee programs, reasoning that President Trump’s actions amount to an “effective nullification of congressional will” in setting up the nation’s refugee admissions program. And on February 21^st U.S. District Judge Adam Abelson in Baltimore blocked President Trump’s bid to halt federal funding for programs that incorporate “diversity, equity, and inclusion” (DEI) initiatives, because the judge found the policy likely violates the First Amendment by penalizing private organizations based on their viewpoints and being impermissibly vague by prohibiting an undefined range of conduct referred to as “illegal DEI.” This ruling led the Department of Labor’s Employment and Training Administration on February 27^th to issue a cancellation of its recent Training and Employment Notice (TEN) No. 21-24, which directed all recipients of federal financial assistance awards to cease all activities related to “diversity, equity, and inclusion” (DEI) or “diversity, equity, inclusion, and accessibility” under their federal awards in accordance with executive orders issued by President Trump.

Congress

Senate to Hold Confirmation Vote Next Week on Lori Chavez-DeRemer’s MCAA-Supported Nomination to Be Labor Secretary 

The Senate last Thursday voted 66-30 to close debate on former Rep. Lori Chavez-DeRemer’s MCAA-supported nomination to be the next Labor Secretary. Chavez-DeRemer picked up the support of 15 Democrats, while Sen. Rand Paul (R-KY) was the only Republican to oppose ending debate on her nomination. The strong, bipartisan vote paves the way for her to be confirmed as Labor Secretary when the Senate reconvenes this week. Also last Thursday, the Senate HELP Committee voted 12-11 along party lines to advance the nomination of Keith Sonderling to be Deputy Labor Secretary. Senate Majority Leader John Thune (R-SD) has not yet announced when the full Senate will consider Sonderling’s nomination. Additionally, over the past two weeks, the Senate also confirmed additional Trump nominees of interest to MCAA, including: (1) U.S. Trade Representative Jamieson Greer; (2) Education Secretary Linda McMahon; and (3) Deputy Attorney General Todd Blanche.

House T&I Committee Announces Subcommittee Vice Chairs

On February 26^th, House Transportation & Infrastructure (T&I) Committee Chair Sam Graves (R-MO) announced the subcommittee vice chairs for the 119th Congress: (1) Rep. Nick Begich (R-AK) will serve as vice chair of the Subcommittee on Railroads, Pipelines and Hazardous Materials; (2) Rep. Dave Taylor (R-OH) will serve as vice chair of the Subcommittee on Water Resources and Environment; (3) Rep. Rob Bresnahan (R-PA) will serve as vice chair of the Subcommittee on Highways and Transit; (4) Rep. Bob Onder (R-MO) will serve as vice chair of the Subcommittee on Economic Development, Public Buildings, and Emergency Management; (5) Rep. Tony Wied (R-WI) will serve as vice chair of the Subcommittee on Aviation; and (6) Rep. Addison McDowell (R-NC) will serve as vice chair of the Subcommittee on Coast Guard and Maritime Transportation.

MCAA Issues and Interests 

Project Labor Agreements

Working to Defend MCAA-Supported PLA Rule

MCAA continues to urge the Trump Administration to defend the MCAA-supported project labor agreement (PLA) executive order issued by President Biden and its related procurement rules in the U.S. Court of Claims following a lawsuit engineered by the Associated General Contractors (AGC) to undermine this rulemaking creating a presumption that federal contracting officers should use PLAs on federal construction projects expected to cost $35 million or more. Accordingly, we were pleased that the Trump Justice Department (DOJ) on February 24^th filed a motion in the Court of Claims in MVL USA Inc. v. U.S. urging the court not to take the “unprecedented step” of rescinding President Biden’s 2022 executive order (EO) on PLAs and the regulations implementing it. DOJ argued that the Court of Claims doesn’t have the authority to rescind the regulations or the EO under its bid protest jurisdiction. DOJ further argued that challenges to the validity of a regulation governing federal procurement generally must take place in federal district court under the Administrative Procedure Act, and that the pending contractors’ bid protests should be dismissed for mootness because agencies have already cancelled four of the contract solicitations at issue and amended the others to remove the challenged PLA requirements. We are awaiting a decision from the court, but so far, the Administration has kept its pledge to defend the PLA executive order.

Davis-Bacon Prevailing Wage

Trump Calls for Congress to Repeal the CHIPS Act

Given the inclusion of Davis-Bacon prevailing wage requirements the MCAA fought to secure in the CHIPS and Science Act, the policy team has been discussing with lawmakers President Trump’s remarks to a joint session of Congress last Tuesday calling the CHIPS and Science Act “horrible” and urging Congress to repeal the law and use any unspent funds to reduce the deficit. Citing Taiwan Semiconductor Manufacturing Company’s announcement last Monday of plans to spend $100 billion to build chip plants in the U.S., Trump argued the financial incentives in the CHIPS Act are unnecessary because companies are committing to build microchip plants in the U.S. to avoid his tariffs. MCAA quickly rallied against President Trump’s call to repeal the CHIPS Act. We were pleased that a critical mass of Republican senators made clear that they view the money allocated to bolster chip production in the U.S. as a critical national security priority and have no interest in an outright repeal of the law. It also came to light that most of the CHIPS Act money has already been spent. While there may be an appetite to make adjustments to the program and how it is administered, we are not currently concerned that we will have a fight over a full repeal of the law. 

Highlighting Importance of Davis-Bacon as Trump Administration Attempts to Downsize Federal Office Space

As the MCAA policy team continues to advocate against the rescission of the MCAA-supported final rule modernizing Davis-Bacon prevailing wage, we are also busy engaging on the Trump Administration’s plans to shrink the federal government’s real estate footprint. Reducing the federal government’s real estate footprint by selling federal buildings and terminating federal leases covered by Davis-Bacon would diminish the volume of federal prevailing wage work in many markets. 

These concerns spiked last Tuesday when the Trump General Services Administration (GSA) designated 443 “non-core” federal properties for “disposition” across 47 states, Washington, D.C., and Puerto Rico that represent almost 80 million rentable square feet—12 times the size of the Pentagon. The GSA estimates that selling these properties could save more than $430 million in operating costs. Last Wednesday, however, the GSA removed the list of federal properties it was potentially looking to sell and a page featuring the previous “non-core” property list now says the list will be “coming soon. The GSA did not say why it removed the list from its website. Tuesday’s announcement followed the Department of Government Efficiency’s (DOGE) elimination of nearly 750 federal leases with additional terminations expected. DOGE is focused on exercising early terminations on more of the approximately 3,000 federal leases that are currently in their “soft term” phase—meaning they can be terminated without penalty or buyout. These developments followed a directive from the Trump Office of Personnel Management and Office of Management and Budget on February 26^th for federal agencies “to undertake preparations to initiate large-scale reductions in force (RIFs)” and to develop Phase 1 “Agency Reorganization plans” by no later than March 13, 2025. These agency RIF and reorganization plans must result in a “reduced federal real property footprint” for each agency and a “reduced agency topline” for each agency.

The Trump Administration is developing these plans at a time when commercial real estate in many markets is still reeling from high interest rates and the COVID-19 pandemic. In fact, a new analysis on February 25^th found that the Trump Administration’s plans to terminate federal leases and sell government buildings threatens to weaken the recovery of the U.S. office market, particularly in Washington, D.C., and other cities with a significant federal government presence, including the Los Angeles; New York; Atlanta; Hagerstown, MD; and Martinsburg, WV areas. The Administration’s plans to shrink the federal real estate footprint were also mentioned at the National Coordinating Committee for Multiemployer Plans (NCCMP) panel we participated in last week as a notable concern for construction industry multiemployer pension plans because of the reduction in union work hours it could cause.

Registered Apprenticeship

House Education and the Workforce Subcommittee Holds Hearing on WIOA 

Last week, the MCAA policy team engaged lawmakers ahead of a House Education and Workforce Subcommittee on Higher Education and Workforce Development hearing entitled, “Strengthening WIOA & Improving Outcomes for America’s Workforce.” Leading up to the hearing, we were reemphasizing points we have consistently pressed on the importance of reauthorizing the Workforce Innovation and Opportunity Act (WIOA), especially given the collapse of a bipartisan deal to include the MCAA-supported A Stronger Workforce for America Act to reauthorize WIOA in an omnibus spending package at the end of last Congress. We were pleased that our outreach bore fruit, as both Subcommittee Chair Burgess Owens (R-UT) and Subcommittee Ranking Member Alma Adams (D-NC) expressed support for the Stronger Workforce for America Act and said they hoped to get the legislation “back on track this Congress.” We are continuing to have conversations with lawmakers on the importance of reauthorizing WIOA to maintain momentum from this hearing.

Pension Reform

DC Conference on the Impending Retirement Crisis

This Wednesday, BlackRock and the Bipartisan Policy Center are hosting a summit in Washington, D.C. to discuss ways to avoid “an impending crisis” when it comes to retirement. The summit aims to develop legislative plans to improve retirement planning for Americans. From the early outreach we have done, it is expected to primarily focus on improving the defined contribution system and getting more people into retirement savings programs. The MCAA team is in touch with the Bipartisan Policy Center and will monitor these discussions for any issues related to multiemployer plans. The event sponsors seemed cool to making any multiemployer reforms a focus of their summit.

House Ed and Workforce Renews Investigation into SFA Overpayments

As we continue to educate new and returning lawmakers on the MCAA’s pension reform priorities, we wanted to be sure you were aware that on February 20^th, House Education and Workforce Committee Chair Tim Walberg (R-MI) and Health, Employment, Labor, and Pensions Subcommittee Chair Rick Allen (R-GA) sent a letter to Attorney General Pam Bondi seeking an update from the Department of Justice (DOJ) about its recovery of taxpayer funds erroneously paid to deceased beneficiaries under the Special Financial Assistance program signed into law by President Biden to save the most endangered defined benefit multiemployer plans. Chair Walberg has launched an investigation and is “seeking information about the steps DOJ is taking to ensure that taxpayer money is recovered after the Biden-Harris Administration made improper payments to multiemployer pension plans.” The letter notes that last Congress, the Committee under Chair Virginia Foxx (R-NC) sent similar requests to former Attorney General Merrick Garland in August and December 2024 but never received a response.

Decarbonization

There were several decarbonization developments of note over the last two weeks on which the MCAA has been engaged:

MCAA Successfully Advocates for CRA Resolution to Eliminate EPA Methane Fee Final Rule

The MCAA policy team lobbied several congressional offices in support of a Congressional Review Act resolution (H.J. Res. 35) to disapprove of a Biden-era Environmental Protection Agency final rule that established a new fee on methane emissions from oil and gas producers. At the request of the resolution’s sponsors, on February 25^th, the MCAA wrote to Speaker Mike Johnson (R-LA) and Democratic Leader Hakeem Jeffries (D-NY) and urged both party leaders to support quick passage of the resolution. The following day, the House passed the resolution by a vote of 220-206. Building on this momentum, MCAA pressed to have it passed in the Senate on February 27^th by a vote of 52-47. The resolution now heads to the President, who is expected to sign it into law.

House Passes MCAA-Supported CRA on Gas-Fired Tankless Water Heaters

On February 27^th, the House voted 221-198 to pass MCAA-advocated H.J. Res. 20, a Congressional Review Act resolution nullifying the Biden Energy Department’s rule mandating increased energy efficiency standards for natural gas-fired tankless water heaters. The MCAA was deeply involved in lobbying lawmakers to pass this CRA, doing considerable education on the flaws in the economic analysis justifying this radical decarbonization measure. With House passage secured, the MCAA policy team is continuing our work with the lead sponsor of the Senate version of this resolution, Sen. Ted Cruz (R-TX), to advance this bill in the Senate and send it to President Trump’s desk.

Congress Passes CRA to Nullify Rule Limiting Offshore Drilling in Outer Continental Shelf

On February 25^th, the Senate voted 54-44 to approve another MCAA-supported Congressional Review Act (CRA) resolution (S. J. Res. 11) that vacates an August 2024 Bureau of Ocean Energy Management rule that limited offshore drilling near archeological sites in the Outer Continental Shelf. Three Democrats—Sens. Catherine Cortez Masto (NV), Jacky Rosen (NV), and John Hickenlooper (CO)—joined with all Senate Republicans in support of the CRA resolution. The House last Thursday followed the Senate and voted 221-202 to pass the resolution, with nine Democrats joining all but one Republican (Rep. Brian Fitzpatrick [PA]) in support of the resolution. It now heads to President Trump for his signature. 

House Passes CRA to Nullify DOE Reporting Rule for Manufacturers of Consumer Products and Consumer Equipment

On March 5^th, the House voted 222-203 to pass H.J. Res. 42, a Congressional Review Act resolution nullifying the Energy Department’s (DOE) October 2024 rule relating to “Energy Conservation Program for Appliance Standards: Certification Requirements, Labeling Requirements, and Enforcement Provisions for Certain Consumer Products and Commercial Equipment.” The final rule revised DOE’s certification, labeling, and enforcement regulations for certain covered consumer, commercial and industrial products and equipment to align with amendments made to the energy conservation standards for such products and equipment by separate DOE regulations since 2022. The resolution now heads to the Senate for consideration. 

EPA Asks White House to Reverse Obama-Era Endangerment Finding Underpinning Regulation of Greenhouse Gases under the Clean Air Act 

On February 26^th, Environmental Protection Agency (EPA) Administrator Lee Zeldin took unexpectedly bold action by asking the White House to approve reversal of the Obama-era EPA endangerment finding in 2009 that gave the EPA authority to regulate greenhouse gases under the Clean Air Act based on the threat they pose to public health and welfare. Reversing the 2009 endangerment finding would eliminate the legal justification for EPA regulation of six greenhouse gases—hydrofluorocarbons, methane, perfluorocarbons, nitrous oxide, sulfur hexafluoride, and carbon dioxide—under the Clean Air Act and relieve EPA of having to regulate climate pollution from power plants, oil and gas infrastructure, and vehicles. It would also impede efforts by future presidential administrations to issue regulations under the Clean Air Act targeting greenhouse gases.

Energy Department Touts Benefits of Nuclear Power as Holtec International Plans 10GW Fleet of Small Modular Reactors in Michigan

On February 26^th, during a tour of Sandia National Nuclear Laboratories, Trump Energy Secretary Chris Wright said that it is the policy of the Trump Administration for the U.S. be out in front when it comes to artificial intelligence (AI), and that this requires having reliable and affordable sources of electricity to meet the growing demands of the technology sector. Wright’s comments come as many states are looking to nuclear energy to power the growing number of planned data centers necessary to support tech companies’ AI plans. Relatedly, on February 25^th, Holtec International, the owner of the Palisades nuclear plant in Michigan, signed a strategic agreement with Hyundai Engineering and Construction to build a 10-gigawatt fleet of small modular reactors in North America, starting with two units at the Palisades site. Holtec is aiming to bring the original Palisades reactor back online in October subject to approval by the Nuclear Regulatory Commission. It would be the first restart of a closed nuclear plant in U.S. history.

Federal Contracting 

Trump Signs EO Implementing DOGE Cost Efficiency Initiative 

On February 26^th, President Trump signed an executive order, “Implementing the President’s ‘Department of Government Efficiency’ Cost Efficiency Initiative,” directing federal agencies to build a centralized system to seamlessly record every payment issued by the agency for covered contracts and grants, along with a brief justification submitted by the federal employee who approved each payment, and to generally make the payment justifications publicly available. The order further directs agencies to review all existing covered contracts and grants and determine whether to terminate or modify them “to reduce overall federal spending or reallocate spending to promote efficiency and advance the policies” of the Administration. For purposes of the EO, “covered contracts and grants” are defined as discretionary spending through contracts, grants, loans, and related instruments, but excludes: (1) direct assistance to individuals; (2) expenditures related to immigration enforcement, law enforcement, the military, public safety, and the intelligence community; and (3) other critical, acute, or emergency spending, as determined by the relevant agency head. Finally, the EO directs the General Services Administration to submit a plan within 60 days for the disposition of government-owned real property which has been deemed no longer necessary.

DOL Orders OFCCP to Reduce Workforce by 90%

According to a memo issued on February 27^th, the Department of Labor is preparing to cut the workforce of the Office of Federal Contract Compliance Programs (OFCCP) by 90%. According to the memo, OFCCP will shrink from 55 offices to four, and reduce its 479 employees to 50. The reduction comes after President Trump signed an executive order on January 21, 2025, that revoked former President Lyndon Johnson’s 1965 Executive Order 11246 that established most of OFCCP’s responsibilities to police federal contractors for anti-discrimination violations and affirmative action compliance. Under the plan outlined in the memo, OFCCP would “focus its mission” on enforcement of Section 503 of the Rehabilitation Act prohibiting discrimination against people with disabilities by federal contractors and subcontractors and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). OFCCP would maintain a “limited field presence” for Section 503 and VEVRAA reviews. 

Other Interesting Things Since Our Last Report 

March 6, 2025

• The Democratic Congressional Campaign Committee announced the 26 most vulnerable members of the House Democratic caucus for its 2026 “Frontline Program”. The list includes: (1) Rep. Janelle Bynum (D-OR); (2) Rep. Marie Gluesenkamp Perez (D-WA); (3) Rep. Josh Harder (D-CA); (4) Rep. Adam Gray (D-CA); (5) Rep. George Whitesides (D-CA); (6) Rep. Derek Tran (D-CA); (7) Rep. Dave Min (D-CA); (8) Rep. Jahana Hayes (D-CT); (9) Rep. Frank Mrvan (D-IN); (10) Rep. Jared Golden (R-ME); (11) Rep. Kristen McDonald Rivet (D-MI); (12) Rep. Don Davis (D-NC); (13) Rep. Nellie Pou (D-NJ); (14) Rep. Gabe Vasquez (D-NM); (15) Rep. Dina Titus (D-NV); (16) Rep. Susie Lee (D-NV); (17) Rep. Steven Horsford (D-NV); (18) Rep. Tom Suozzi (D-NY); (19) Rep. Laura Gillen (D-NY); (20) Rep. Josh Riley (D-NY); (21) Rep. John Mannion (D-NY); (22) Rep. Marcy Kaptur (D-OH); (23) Rep. Emilia Sykes (D-OH); (24) Rep. Henry Cuellar (D-TX); (25) Rep. Vicente Gonzalez (D-TX); and (26) Rep. Eugene Vindman (D-VA).  

• Senate Democrats are laying the groundwork to seek unanimous consent to pass a major bipartisan, bicameral health care policy package that was removed from last December’s omnibus funding package. The health care package would include substantial reforms to the business practices of pharmacy benefit managers. MCAA is engaging the sponsors to ensure it does not include PBM-related proposals we helped kill last year that threatened ERISA preemption. A draft of the package also includes an extension of COVID-era telehealth and hospital-at-home rules and new measures to fight the opioid crisis and prevent cuts in pay for doctors treating Medicare patients.

• The Center for Medicare and Medicaid Services (CMS) sent to the White House Office of Information and Regulatory Affairs (OIRA) for review its final rule on “Contract Year 2026 Policy and Technical Changes to the Medicare Advantage, Medicare Prescription Drug Benefit, and Medicare Cost Plan Programs, and PACE (CMS-4208).”  The Biden CMS published the proposed rule on December 10, 2024. It would require Part D sponsors, such as pharmacy benefit managers (PBMs), to notify network pharmacies which plans will be in-network in a given plan year by October 1 of the year prior to that plan year. The proposed rule also required PBMs and other Part D sponsors to provide a list of these plans to network pharmacies upon request after October 1 of the year prior to that plan year. Additionally, regarding Part D, CMS proposed to: (1) implement section 11401 of the Inflation Reduction Act of 2022 (IRA) requiring that, effective for plan years beginning on or after January 1, 2023, the Medicare Part D deductible shall not apply to, and there is no cost-sharing for, an adult vaccine recommended by the Advisory Committee on Immunization Practices; and (2) implement section 11406 of the IRA requiring that, effective for plan years beginning on or after January 1, 2023, the Medicare Part D deductible shall not apply to covered insulin products, and the Part D cost-sharing amount for a one-month supply of each covered insulin product must not exceed the statutorily defined “applicable copayment amount” for all enrollees. Moreover, CMS proposed codifying the existing CMS guidance regarding section 11202 of the IRA establishing the Medicare Prescription Payment Plan and requiring each prescription drug plan (PDP) sponsor offering a prescription drug plan and each Medicare Advantage (MA) organization offering a Medicare Advantage prescription drug (MA-PD) plan to provide any enrollee in such plan, including an enrollee who is subsidy eligible, the option to elect to pay cost-sharing under the plan in monthly amounts that are capped. CMS also added “the availability of low-income supports including the Part D Low-Income Subsidy” to the list of requirements that agents and brokers must discuss with their customers regarding Part D enrollment options. OIRA typically has up to 90 days to review agency rulemakings.

• Siemens announced plans to invest $285 million in manufacturing in the United States, including two new manufacturing facilities for electrical products in Fort Worth, Texas and Pomona, California. The company said it expects this investment to create more than 900 skilled manufacturing jobs, with the equipment produced in those factories supporting the U.S. commercial, industrial and construction sectors.

March 5, 2025 

• Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Bernie Sanders (I-VT) and House Education and Workforce Committee Ranking Member Bobby Scott (D-VA) reintroduced the Protecting the Right to Organize (PRO) Act. The legislation: (1) creates financial penalties for employers who commit unfair labor practices; (2) bars companies from holding “captive audience” meetings; (3) makes it easier for newly formed unions to secure their first contracts; (4) strengthens a worker’s right to strike and boycott; and (5) overrides state “Right-to-Work” laws.

March 4, 2025

• House Speaker Mike Johnson (R-LA) encouraged Republican lawmakers to skip town halls that have been filled with protestors decrying the Trump Administration’s slashing of the federal government, echoing the president’s claims that the demonstrations are fueled by professional protestors. National Republican Congressional Campaign Chair Richard Hudson (R-NC) also told Republicans to stop holding town halls in person.

• The Centers for Disease Control (CDC) reported that the measles outbreak that started in West Texas has now spread to Alaska, California, Georgia, Kentucky, New Jersey, New Mexico, New York, and Rhode Island. Two cases of measles have been reported in New York City and three cases have been reported in New Jersey. Thirteen new measles cases have also been reported in Texas as the Centers for Disease Control and Prevention sends a team of epidemiologists and doctors to help the state deal with the outbreak.

March 3, 2025 

• There is a new interactive website called the Workplace Rights Hub that provides answers to questions about the maze of varying state laws regarding medical leave rights for workers to take care of themselves and loved ones, and to navigate pregnancy, childbirth, and related workplace issues. The creator of the tool is “A Better Balance,” which describes itself as “a leading national nonprofit legal advocacy organization dedicated to work-family justice.” 

March 2, 2025 

• The Treasury Department announced that it will not enforce against U.S. citizens, domestic reporting companies, or their beneficial owners any penalties or fines associated with the Corporate Transparency Act’s beneficial ownership information reporting rule under the existing regulatory framework and deadlines. The Treasury Department also announced that it will be issuing a proposed rule to narrow the scope of the Corporate Transparency Act’s beneficial ownership reporting to foreign reporting companies only. 

February 28, 2025

• Apollo Global Management, Inc. said it is in talks to lead a roughly $35 billion financing package for Facebook parent company Meta Platforms Inc. to help develop data centers in the U.S. The alternative asset manager has discussed providing a major part of the financing and KKR & Co. is also a part of the investor group. The funding conversations were characterized as being in the early stages and there is no guarantee a deal will be completed. 

• The Energy Department (DOE) announced that it has issued an order allowing the use of liquified natural gas (LNG) as marine fuel, reducing regulations on LNG to power boats. The order modifies a December 2024 order issued by the Biden Administration that gave DOE authority to regulate LNG bunkering (i.e., storing LNG on ships and transferring the fuel at sea). Specifically, the order issued to JAX LNG withdraws DOE’s “exercise of its jurisdiction under the Natural Gas Act for ship-to-ship transfers of LNG for marine fuel use at a U.S. port, in U.S. waters, or in international waters.” The DOE order leaves unchanged its authorization to JAX LNG to export LNG through shipping containers.

• The Environmental Protection Agency (EPA) announced that it intends to act expeditiously to delay implementation for South Dakota and Ohio of year-round sales of E15 fuel until Spring 2026, noting that this will be the last year an extension can be provided to any of the eight applicable midwestern states (Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin). This announcement follows the February 26, 2025 deadline for states to submit written requests to delay year-round sales of E15 fuels. The EPA added that Kansas, which was not among the eight states addressed in the EPA’s final rule extending year-round E15 sales, submitted a similar request, but did not say whether it was also granting Kansas an extension. The EPA also explained that, in the absence of congressional action, the agency is still considering issuing emergency fuel waivers to allow the year-round sale of E15. 

February 27, 2025 

• Pharmaceutical giant Eli Lilly announced a $27 billion investment to build four drug manufacturing “mega-sites” across the U.S. which would create around 10,000 construction jobs.

• A spike in demand for electricity from tech companies competing in the artificial intelligence race is upending forecasts for natural gas-fired power in the U.S., as utilities reconsider it as a major new power source. Relatedly, GE Vernova Inc., NRG Energy Inc. and Kiewit Corp. agreed to develop up to 5.4 gigawatts of gas-fired power plants to power data centers experiencing an increase in demand due to AI. The plants would start up between 2029 and 2032 and could be located in Texas or the eastern U.S. NRG also entered into preliminary agreements with data center developers Menlo Equities and PowLan for 400 megawatts with the potential to scale up to more than 6 gigawatts.

February 26, 2025

• Trump Federal Trade Commission (FTC) Chair Andrew Ferguson said the FTC is creating a new task force to investigate corporate behavior that harms workers in ways that violate antitrust and consumer protection laws. Ferguson promised that the FTC will launch the “labor markets task force” with mandates for the agency’s bureaus to work together in scrutinizing the issue, and he listed noncompete agreements, as well as no-hire and no-poach contracts, as areas of focus.

February 25, 2025 

• The U.S. Justice Department indicated in a filing that it will withdraw from defending the Equal Employment Opportunity Commission’s (EEOC) final rule prescribing the accommodations employers must provide to pregnant workers under the Pregnant Workers Fairness Act (PWFA). Enacted in December 2022, the PWFA requires covered entities—including public and private employers with 15 or more employees, unions, employment agencies, and the federal government—to provide reasonable accommodations to a worker’s known limitation related to pregnancy, childbirth, or related medical conditions, unless the accommodation will cause the employer undue hardship. The move away from defending the rule comports with recent statements made by President Trump’s new EEOC Acting Chair, Andrea Lucas, making clear her intention for the EEOC to “reconsider portions of the final rule” that she believes broaden “the scope of the statute in ways that cannot be reconciled with the text [of the law].” This includes provisions in the final rule defining abortion as a related medical condition to pregnancy that employers must reasonably accommodate.

• President Trump signed an executive order to reinforce existing rules to make health care prices more transparent for patients by directing the Treasury Department, Labor Department, and Health and Human Services Department to enforce regulations requiring hospitals and health insurers to publicly disclose their prices or face a fine of up to $5,500 per day. A similar order mandating more price disclosure issued during Trump’s first term has had limited success, with a 2022 survey finding that only about 14% of hospitals were fully adhering to rules to publicly post their prices. 

February 24, 2025

• Senate Judiciary Committee Chair Chuck Grassley (R-IA) sent UnitedHealth Group Chief Executive Andrew Witty a letter demanding details on the company’s Medicare billing practices, saying “the apparent fraud, waste, and abuse at issue is simply unacceptable and harms not only Medicare beneficiaries, but also the American taxpayer.” Chair Grassley demanded that UnitedHealth turn over training manuals and guidance documents around certain practices that he believes are leading to extra payments. These include in-home visits by nurses working for the company as well as reviews of medical charts. He also requested details of UnitedHealth’s compliance program, audit results, lists of software used and other documents.

• A new report from RentCafe found that the pipeline for new apartments in old office spaces is growing and the top ten U.S. metro areas with the most office-to-apartment conversions in progress are: (1) New York City; (2) Washington, D.C.; (3) Los Angeles; (4) Chicago; (5) Dallas; (6) Atlanta; (7) Minneapolis; (8) Charlotte, NC; (9) Cincinnati; and (10) Kansas City, MO. The report also found that developers completed less than 7% of office-to-apartment units underway in 2024, pushing most into 2025.

February 21, 2025

• The Office of the United States Trade Representative (USTR) requested comments in connection with proposed actions aimed at eliminating China’s acts, policies, and practices targeting the maritime, logistics, and shipbuilding sectors for dominance. Among other things, USTR is proposing new fees and restrictions on maritime shipments of goods by ship operators that use Chinese-built ships. It is also looking to mandate increased use of U.S. built vessels to transport goods internationally. The fees are viewed as directly targeting Chinese-government-controlled carrier Cosco Shipping and, if implemented, could add significant operating costs for ocean shipping companies that would in turn drive up freight rates for U.S. retailers, manufacturers and farmers. Comments are due by March 24, 2025 and should be submitted through the USTR comment portal using Docket ID USTR-2025-0002. In addition to requesting public comments, USTR will hold a public hearing on March 24, 2025, at the International Trade Commission. Those interested in participating in the hearing must submit a request by March 10, 2025 through the USTR comment portal using Docket ID USTR-2025-0002. Additional information and documents regarding the investigation can be found here.

Around the Country 

Northeast 

• On March 2^nd, former New York Gov. Andrew Cuomo (D) launched a bid to be the next mayor of New York City. The announcement comes as Reps. Jamie Raskin (D-MD) and Jasmine Crockett (D-TX), two senior members of the House Oversight Committee, wrote a letter to Attorney General Pam Bondi requesting information regarding the department’s decision to forgo its case against current New York City Mayor Eric Adams (D). On February 26^th, Adams asked a federal judge to dismiss the criminal case against him in a way that wouldn’t allow federal prosecutors to reindict him at a later date. The request puts Adams at odds with the Justice Department’s effort to abandon the case now while still reserving the option to revive the charges in the future.

• On February 28^th, the Trump Interior Department announced that the National Park Service has signed a new ten-year lease and right of way with Williams Transco to use hangars in the Floyd Bennett Field unit of Gateway National Recreation Area, located in New York City, for energy infrastructure. Under the prior lease, Williams invested $22 million to restore Hangars 1 and 2 to convert the interiors into a natural gas metering and regulating station used to provide energy to New York City.

• On February 26^th, a judge dismissed the racketeering indictments against New Jersey Democratic power broker George Norcross, the brother of Rep. Donald Norcross (D-NJ), and his five co-defendants, potentially ending a case that rocked New Jersey politics. The judge said the charges “must be dismissed because its factual allegations do not constitute extortion or criminal coercion as a matter of law.” New Jersey Attorney General Matthew Platkin vowed to appeal the dismissal of the charges.

West

• On March 4^th, CIM Group and Novva Data Center secured a $2 billion construction loan from JPMorgan Chase and Starwood Property Trust for a 100-acre data center campus in West Jordan, Utah, outside Salt Lake City that will be able to provide 175 megawatts of continuous service based on a deal with the local electric utility. That is roughly enough power for 175,000 average-size U.S. homes. The project seeks to address water use concerns by deploying a new cooling system technology that minimizes water evaporation. 

• On February 21^st, California Gov. Gavin Newsom (D-CA) requested that Congress appropriate nearly $40 billion to rebuild from the wildfires that devastated the Los Angeles region last month and destroyed 16,251 structures. About $16.8 billion of the requested funds would provide public assistance for community and private property recovery, such as hazardous household materials and debris removal, road and bridge repairs, public utility works and school district needs. Around $10 billion would also be used to address damage to housing and infrastructure. And Gov. Newsom made clear more federal support will be needed, explaining, “we expect to identify additional funding needs to help these communities recover.” Over the weekend, President Trump’s Special Envoy Richard Grenell made clear that Republicans will attach conditions to any California wildfire aid. Grenell indicated these conditions may include pressing for the state to reform or eliminate the California Coastal Commission and demanding changes to state water and forestry management. As the debate on conditions for California aid continued this week, on Wednesday, the Trump Environmental Protection Agency (EPA) announced that it had completed its work to assess, remove, and safely dispose of household hazardous materials from areas burned by the southern California wildfires. This 29-day effort was the largest wildfire hazardous materials cleanup in the history of the EPA and involved 1,700 EPA staff identifying and then clearing hazardous materials from southern California properties. That same day at President Trump’s first cabinet meeting, EPA Administrator Lee Zeldin floated plans to cut the EPA’s workforce by up to 65% to facilitate the work of Elon Musk’s Department of Government Efficiency. The White House later walked back Zeldin’s remarks, saying the EPA intends to cut 65% of its spending, not 65% of its staff.

Northwest 

• On March 5^th, Sens. Ron Wyden (D-OR) and Jeff Merkley (D-OR) joined Reps. Suzanne Bonamici (D-OR), Val Hoyle (D-OR), Andrea Salinas (D-OR), Janelle Bynum (D-OR), and Maxine Dexter (D-OR) in a statement asking the Trump Administration why it proposed to dispose of federal properties in Baker City, Eugene, Medford, Portland, and Troutdale, Oregon. Sen. Wyden said that he was “nowhere near convinced this fire sale of federal assets…is in the best interest of U.S. taxpayers” while Sen. Merkley said the Administration “doesn’t grasp that federal buildings in our communities provide a central place for folks to access government agencies and the everyday essential services they provide, like keeping our electric grid functioning and providing help with the IRS and Social Security.”

Midwest 

• On February 26^th, Minnesota Gov. Tim Walz (D) said that he will not run for the Minnesota U.S. Senate seat being vacated by retiring Sen. Tina Smith (D).

• On February 25^th, former Republican presidential candidate Vivek Ramaswamy formally announced that he is running to be the next governor of Ohio. The entrance by Ramaswamy comes after Ohio Attorney General Dave Yost (R) announced his candidacy last month to succeed term-limited Republican Gov. Mike DeWine. On February 27^th, entrepreneur Heather Hill also announced a bid for the Ohio Republican gubernatorial nomination. 

Southeast

• On February 27^th, Florida trial lawyer and Democratic mega-fundraiser John Morgan announced he’s launching his own political party, after repeatedly teasing that he might run for governor in the state. He said the party will be for those “stuck in the middle.”

• On February 25^th, Rep. Byron Donalds (R-FL) announced his candidacy for Florida governor. Prior to President Trump’s endorsement on February 22^nd of Donalds in the Florida Republican gubernatorial primary, current Florida Gov. Ron DeSantis (R-FL) was reportedly making calls to donors and consultants asking them to hold off on supporting Donalds as DeSantis’s wife Casey mulled a possible gubernatorial bid.

• On February 25^th, a new poll showed former Rep. Abigail Spanberger (D-VA) holds an early double-digit lead over Virginia Lt. Gov. Winsome Earle-Sears (R) ahead of Virginia’s off-year gubernatorial race in November.

Southwest

• On March 5^th, the Trump Energy Department approved the liquefied natural gas (LNG) export permit extension for Golden Pass LNG Terminal LLC (Golden Pass) granting the company additional time to begin LNG exports from the Golden Pass LNG Terminal currently under construction in Sabine Pass, Texas. Golden Pass, owned by QatarEnergy and ExxonMobil, could begin exporting LNG as soon as “later this year.” Once operational, the terminal will be able to export up to 2.57 billion cubic feet per day of LNG.

• As the Supreme Court heard oral arguments on March 5^th in a case that will determine whether private companies can temporarily store spent nuclear fuel at facilities in Texas and New Mexico, increased interest in nuclear power driven by artificial intelligence data centers has renewed the debate about what to do with the radioactive waste left behind. Currently, more than 90,000 metric tons of spent nuclear fuel is being stored at sites in 39 states—with Illinois holding the most. The facilities include 73 commercial nuclear power plants and more than three dozen university and government facilities.

• On March 4^th, Rep. Sylvester Turner (D-TX), who was sworn-in to Texas’ 18^th Congressional District in January to replace the late Rep. Sheila Jackson Lee (D-TX), passed away at the age of 70. 

• On February 24th, it was revealed that Texas is looking to become a leader in nuclear power and to deploy the next generation of atomic energy, aggressively courting the growing nuclear sector and settle it in state. That includes facilitating Dow Chemical’s plans to place small reactors made by X-energy at its Seadrift complex on the Gulf Coast, Natura’s plans to power oilfield infrastructure in the Permian Basin, and Texas A&M’s deal with four companies to build small, 250 megawatt commercial-scale reactors at a new “proving grounds” near its campus in College Station.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, February 24, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

Trump Signs EO Seeking to Bring Independent Agencies like the NLRB Under White House Control

Last Tuesday, President Trump signed an Executive Order (EO) entitled “Ensuring Accountability for All Agencies” seeking to bring the National Labor Relations Board (NLRB) and other independent federal agencies under direct White House control. The EO requires these independent federal agencies and commissions to: (1) submit draft regulations for White House review; (2) consult with the White House on priorities and strategic plans, and have their performance standards set by the White House; (3) acknowledge that the President and the Attorney General will interpret all laws for the executive branch; and (4) accept that the Office of Management and Budget “will adjust so-called independent agencies’ apportionments to ensure tax dollars are spent wisely.” The EO applies to independent regulatory agencies covered by 44 U.S.C. 3502(5), which include: the NLRB, the Federal Energy Regulatory Commission, the Federal Trade Commission, the Nuclear Regulatory Commission, the Occupational Safety and Health Review Commission, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, and the Securities and Exchange Commission.

The EO comes after Acting Solicitor General Sarah Harris announced on February 12^th that the Justice Department will stop defending laws and legal precedents preventing the president from firing members of the NLRB and other independent agencies without cause. In the letter, Harris explained that the seminal 1935 Supreme Court decision in Humphrey’s Executor v. United States prevents the president from “adequately supervising principal officers in the executive branch who execute the laws on the president’s behalf” and it has “already been severely eroded by recent Supreme Court decisions.”

The U.S. Supreme Court could soon rule on President Trump’s firing of Special Counsel Hampton Dellinger, in what would be the first major test of the President’s power to remove officials at independent agencies with congressionally mandated removal protections. In its petition to the Supreme Court, the White House cited the Court’s decision holding the president immune from most federal prosecutions and argued that any restrictions on his removal of federal officials were unconstitutional. A decision in this case could also impact the ongoing litigation over President Trump’s firing of NLRB member Gwynne Wilcox on January 28^th. 

DOJ Chief of Staff Says Removal Restrictions for ALJs Are Unconstitutional

Last Thursday, Justice Department (DOJ) Chief of Staff Chad Mizelle issued a statement saying that DOJ determined that multiple layers of removal restrictions shielding administrative law judges (ALJs) are unconstitutional. Mizelle added that “unelected and constitutionally unaccountable ALJs have exercised immense power for far too long” and that in accordance with Supreme Court precedent, DOJ “is restoring constitutional accountability so that Executive Branch officials answer to the President and to the people.”

Trump Signs EO Directing Federal Agencies to Assess Rules to Ensure They Are Authorized by Federal Statute

Last Wednesday, President Trump signed an Executive Order (EO) entitled “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Regulatory Initiative” to end the “Federal overreach in regulation and enforcement and restore the constitutional separation of powers” and implement a policy to “focus the executive branch’s limited enforcement resources on regulations squarely authorized by constitutional Federal statutes.” Specifically, the EO directs all agency heads to identify within 60 days “classes of regulations” based on “unlawful delegations of legislative power” or that impose undue burdens on small business or impede entrepreneurship and work to develop a Unified Regulatory Agenda to rescind or modify such regulations. The EO further directs agencies to generally de-prioritize enforcement of regulations that are based on “anything other than the best reading of a statute” and terminate on a case-by-case basis ongoing enforcement proceedings. Specifically exempt from the EO are any actions related to national security, homeland security, or immigration-related functions of the U.S.

U.S. Army Corps Identifies More Than 600 Energy and Other Projects that Could Be Fast Tracked Under Trump Energy Emergency Executive Order

Last Wednesday, the U.S. Army Corps of Engineers identified over 600 energy and other infrastructure projects that could be fast-tracked under President Trump’s Executive Order “Declaring a National Energy Emergency.” Among the 600 projects slated by the Army Corps for fast tracking were Enbridge’s Line 5 oil pipeline under Lake Michigan, several natural gas power plants, and liquified natural gas export terminals proposed by Cheniere and Venture Global. This comes as the Michigan Court of Appeals on Wednesday ruled the Michigan Public Service Commission properly issued permits for Enbridge’s Line 5 pipeline under the Straits of Mackinac, rejecting legal challenges brought by a coalition of environmental groups opposing the project.

Senate Confirms Several Additional Trump Cabinet Nominees

Over the last two weeks, the Senate has confirmed several Trump nominees, including: (1) Robert F. Kennedy, Jr. as Secretary of Health and Human Services; (2) Brooke Rollins to be Agriculture Secretary; (3) former Rep. Tulsi Gabbard (D-HI) as Director of National Intelligence; (4) Howard Lutnick as Commerce Secretary; (5) former Sen. Kelly Loeffler (R-GA) as Administrator of the Small Business Administration; and (6) Kash Patel as FBI Director.

Trump Submits Nominees for Positions at Various Federal Departments and Agencies

On February 12th, President Trump submitted several nominees for various federal departments and agencies of interest to MCAA. At the Labor Department, President Trump nominated: (1) former Florida State Education Chancellor Henry Mack III to lead the Employment and Training Administration, which oversees apprenticeship and workforce training; (2) former UPS safety chief David Keeling to lead the Occupational Safety and Health Administration; and (3) former president of ULLICO Casualty Daniel Aronowitz to lead the Employee Benefits Security Administration, which oversees retirement, training, and health funds. At the U.S. Education Department, Florida’s Chancellor of Career, Technical, and Adult Education, Kevin O’Farrell, was nominated to be Assistant Secretary for Career, Technical, and Adult Education.

At the Energy Department, Franklin Mountain Energy CEO Audrey Robertson was nominated to be Assistant Secretary of Energy for Energy Efficiency and Renewable Energy. At the Interior Department, Western Energy Alliance President Kathleen Sgamma—a longtime advocate of increased oil and gas production on federal lands—was nominated to be Director of the Bureau of Land Management. At the Environmental Protection Agency (EPA), President Trump nominated Jessica Cramer to be Assistant Administrator for the Office of Water. Cramer was deeply involved in the water provisions of the Infrastructure Investment and Jobs Act (IIJA) as water counsel to current Senate Environment and Public Works Committee Chair Shelley Moore Capito (R-WV). Aaron Szabo, who worked in the first Trump Administration, was nominated to be Assistant EPA Administrator for the Office of Air and Radiation. Sean Donahue, another veteran of the first Trump Administration, is the nominee to be the EPA’s General Counsel. At the Transportation Department, Apple executive Jonathan Morrison was nominated to lead the National Highway Traffic Safety Administration. And President Trump also submitted former Rep. Pete Hoekstra’s (R-MI) nomination to be U.S. Ambassador to Canada.

Appeals Court Denies Trump Administration Bid to Reverse District Court Ruling Blocking Federal Funding Freeze

On February 11^th, a three-judge panel of the First Circuit Court of Appeals unanimously rejected the Trump Administration’s appeal of a Rhode Island Federal District Court’s ruling blocking the White House from implementing a federal funding freeze. Following the First Circuit ruling, the U.S. District judge in Rhode Island reaffirmed his order halting the Trump Administration’s funding freeze. Separately on February 11^th, U.S. District Judge Jeannette Vargas in the Southern District of New York modified her order preventing Elon Musk’s Department of Government Efficiency (DOGE) from accessing the Treasury Department’s payment systems, clarifying that it does not extend to Treasury Secretary Scott Bessent and other senior Treasury Department officials in positions that require Senate confirmation. Following these developments, on February 12^th, White House press secretary Karoline Leavitt said that court rulings against the Trump Administration are coming from “judicial activists” on the bench whose decisions amount to a “constitutional crisis.”

Trump Lays Out Plans to Impose Reciprocal Tariffs on Foreign Nations As He Imposes 25% Tariffs on All Steel and Aluminum Imports

On February 13^th, President Trump signed a memorandum laying out his plans to impose “reciprocal tariffs” on foreign nations. The memo calls on the Commerce Department and U.S. Trade Representative to assess within 180 days on a country-by-country basis whether “remedies” that ensure reciprocal trade relations are necessary. The Office of Management and Budget Director will also submit a report within that timeframe on the fiscal impact of instituting the reciprocal tariffs. 

The reciprocal tariffs memorandum follows President Trump’s signing of a proclamation on February 10^th imposing a 25% tariff on all steel and aluminum imports effective March 12^th. This proclamation removes exemptions previously granted to Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom and includes “applying strict ‘melted and poured’ standards, expanding tariffs to include key downstream products, terminating all general approved exclusions, and cracking down on tariff misclassification and duty evasion schemes.” Trump is also reportedly considering placing a 25% tariff on international lumber and wood products, though no announcement has yet been made. 

Congress

Senate HELP Committee Holds Confirmation Hearing on Lori Chavez-DeRemer’s MCAA-Supported Nomination to be the Next Labor Secretary 

Last Wednesday, following its confirmation hearing on former Rep. Lori Chavez-DeRemer’s (R-OR) MCAA-supported nomination to lead the Labor Department, the Senate Health, Education, Labor, and Pensions (HELP) Committee announced it would vote on whether to advance her nomination to the full Senate on Thursday, February 27, 2025 at 9:30am. The MCAA policy team has been working to allay concerns regarding Chavez-DeRemer’s nomination among Senate Republicans and during the hearing, Republicans appeared generally supportive of her nomination while expressing concern over her past co-sponsorship of the Protecting the Right to Organize (PRO) Act in the House. She mollified skeptical Republicans by making clear that she no longer supports key provisions of the PRO Act and stated that as Secretary of Labor her job would be to advance President Trump’s vision for labor policy. Democrats on the committee used her confirmation hearing to protest President Trump’s firing of NLRB Board member Gwynne Wilcox and the ongoing actions of Elon Musk’s Department of Government Efficiency (DOGE) at federal agencies.

House Passes Bill to Allow Congress to Pass Single CRA Resolution to Overturn Multiple Regulations

On February 12^th, the House passed H.R. 77, the “Midnight Rules Relief Act,” by a mostly party-line vote of 212-208. The bill amends the Congressional Review Act (CRA) to allow Congress to pass a single joint resolution disapproving of multiple final regulations during the final year of a presidential term. Currently, a joint resolution of disapproval under the CRA may cover only a single rule. 

Senate HELP Committee Announces Subcommittee Leadership and Assignments for the 119^th Congress

On February 12^th, the Senate Health, Education, Labor, and Pensions (HELP) Committee announced the Subcommittee leadership and assignments for the 119^th Congress: (1) Sen. Markwayne Mullin (R-OK) and Sen. John Hickenlooper (D-CO) will serve as Chair and Ranking Member, respectively, of the Subcommittee on Employment and Workplace Safety; (2) Sen. Roger Marshall (R-KS) and Sen. Ed Markey (D-MA) will serve as Chair and Ranking Member, respectively, of the Subcommittee on Primary Health and Retirement Security; and (3) Sen. Tommy Tuberville (R-AL) and Sen. Lisa Blunt Rochester (D-DE) will serve as Chair and Ranking Member, respectively, of the Subcommittee on Education and the American Family.

Senate Energy and Natural Resources Committee Releases Subcommittee Roster

On February 11^th, the Senate Energy and Natural Resources Committee released its subcommittee roster, which includes: (1) Sen. Dave McCormick (R-PA) as Chair and Sen. Ruben Gallego (D-NM) as Ranking Member of the Subcommittee on Energy; (2) Sen. John Barrasso (R-WY) as Chair and Sen. Catherine Cortez Masto (D-NV) as Ranking Member of the Subcommittee on Public Lands, Forests, and Mining; and (3) Sen. John Hoeven (R-ND) as Chair and Sen. Ron Wyden (D-OR) as Ranking Member of the Subcommittee on Water and Power.

MCAA Issues and Interests 

Project Labor Agreements

DOD and VA Direct Contracting Officers to Remove Language Favoring PLAs

Over the past two weeks, the Trump Department of Veterans Affairs’ (VA) Office of Acquisition and Logistics issued a class deviation waiving the application of regulations implementing President Biden’s project labor agreements (PLA) Executive Order. The waiver applies to current and future VA solicitations for large-scale construction contracts that are expected to cost $35 million or more. This action follows an order issued by the Department of Defense Undersecretary of Acquisition on February 7^th that directed all Pentagon contracting officers to remove language creating a presumption favoring the use of PLAs for the same type of large-scale construction projects in all Defense Department solicitations, including those for Army Corps of Engineers projects.

These actions follow a January 2025 Federal Court of Claims decision (discussed in our February 10^th Government Affairs Report) affirming several bid protests of solicitations containing this clause pursuant to federal acquisition rules implementing President Biden’s February 4, 2022, Executive Order 14063 on Project Labor Agreements. The Trump Administration has not yet rescinded this MCAA-supported Executive Order or the regulations implementing it. The MCAA and its allies are urging the Trump Administration not to rescind the Executive Order, but litigation on its application led by the Associated General Contractors of America (AGC) is ongoing. Both AGC and Associated Builders and Contractors (ABC) are vigorously advocating for the rescission of the Executive Order and its implementing regulations and it remains to be determined whether the Trump Administration will rescind the Biden Executive Order or be forced to do so by court order.

Trump Administration Reevaluating Terms in CHIPS Act Funding Awards

The MCAA policy team continues to engage with the Trump Administration on several federal grant programs under the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS and Science Act, especially considering the ongoing litigation around the federal funding freeze. As part of this engagement, we learned that the Trump Administration has informed CHIPS Act funding recipients that it is reevaluating provisions the Biden Administration included in CHIPS Act awards, including provisions the MCAA advocated for regarding allowing the use of project labor agreements to satisfy onerous workforce planning requirements. The full extent of the possible changes and how they would affect finalized agreements, however, is not yet clear. These developments follow reports that the Trump Commerce Department has been scouring CHIPS Act awards for terms related to Diversity, Equity, and Inclusion (DEI), climate change, and other concepts deemed inconsistent with recent Executive Orders issued by President Trump.

Davis-Bacon Prevailing Wage

Federal Judge Pauses One of Two Lawsuits Over MCAA-Supported Davis-Bacon Modernization Final Rule

Last Wednesday, at the request of the Trump Labor Department, U.S. District Judge James Wesley Hendrix of the Northern District of Texas paused litigation over the MCAA-supported Biden-era final rule entitled, “Updating the Davis-Bacon and Related Acts Regulations.” The Trump Administration requested time for new Department of Labor leadership “to review this litigation, including the claims that the plaintiffs have asserted in challenging the Rule” to determine if it will continue to defend the final regulations that substantially expanded Davis-Bacon prevailing wage coverage. Notably this is only one of two lawsuits challenging the final rule and it is narrowly focused on provisions in the final rule applying it to drivers who deliver materials. It is not a broad challenge to the entire final rule or provisions of importance to MCAA. The Trump Administration said it will provide an update on its plans in 90 days. The case is Associated General Contractors of America et al v. DOL.

Independent Contractors and Misclassification of Workers 

DHS Asks Treasury to Deputize IRS Special Agents to Assist with Deportations and Investigations of Employers Suspected of Violating Tax and Labor Laws 

As the MCAA policy team continues our work educating the new Administration and members of Congress on the MCAA’s priority issue of preventing misclassification of workers as independent contractors, on February 7^th Homeland Security (DHS) Secretary Kristi Noem asked Treasury Secretary Scott Bessent to designate Internal Revenue Service (IRS) Special Agents to be deputized to assist with deportations and Homeland Security investigations into human trafficking smuggling, and illegal hiring practices. Specifically, Secretary Noem wants the IRS Special Agents to partner with “Immigration and Customs Enforcement (ICE) to conduct employer investigations to include conducting financial audits of businesses suspected of employing illegal immigrants and building criminal investigations for prosecution against employers violating tax and labor laws.” Noem also wants the IRS agents to help “ICE leverage forfeiture laws to seize properties, vehicles, and funds tied to immigration-related offense such as harboring illegal aliens or operating illegal businesses.”

Decarbonization

House to Vote on CRA Nullifying Biden-Era Rule on Conservation Standards for Gas-Fired Instantaneous Water Heaters as DOE Freezes Other Biden-Era Energy Efficiency Rules

Following MCAA’s advocacy, the House announced last Friday that it intends to bring the MCAA-endorsed Congressional Review Act (CRA) resolution (H. J. Res. 20) to nullify the Biden Energy Department’s (DOE) rule on consumer gas-fired instantaneous water heaters to a vote this week. The bill will first go to the House Rules Committee before being brought up for a vote by the full House this Wednesday or Thursday. 

The announcement follows the Department of Energy’s (DOE) action February 14^th freezing several energy efficiency rules enacted during the Biden Administration that the MCAA has been opposing. The freeze applies to a range of appliances, including: (1) gas instantaneous water heaters; (2) central air conditioners; (3) air compressors; (4) walk-in coolers and freezers; (5) commercial refrigeration equipment; and (6) clothes washers and dryers. Additionally, DOE revealed that it would create a new energy efficiency category for natural gas tankless water heaters, which will be exempt from existing Biden-era rules. 

On February 20^th, the Energy Department (DOE) began formally implementing this freeze with publication in the Federal Register of: (1) the delay of the effective date of its December 26, 2024 final rule adopting amended energy conservation standards for consumer gas-fired instantaneous water heaters; and (2) the delay of the effective date of its December 23, 2024 final rule adopting amended energy conservation standards for walk-in coolers and walk-in freezers. Both of these rules have been delayed until March 21, 2025 pursuant to President Trump’s January 20, 2025 memorandum, “Regulatory Freeze Pending Review,” directing the heads of federal agencies to postpone for sixty days the effective date for any regulations that have been published in the Federal Register but had not yet taken effect to review “any questions of fact, law, and policy that the rules may raise.” DOE is also seeking comments on any further delay of the effective dates as well as comments on the legal, factual, or policy issues raised by the rules. Comments on both notices are due by March 13, 2025 and should be submitted by email to ApplianceStandardsQuestions@ee.doe.gov. 

NRC Announces Public Meeting to Discuss the MCAA-Supported ADVANCE Act

Last Friday, the Nuclear Regulatory Commission (NRC) announced it will hold a public meeting on March 4, 2025 to receive a briefing on unspecified ADVANCE Act activities. The MCAA-supported ADVANCE Act requires the NRC to develop a process that enables timely licensing of nuclear production facilities or utilization facilities, and to establish an initiative to enhance preparedness and coordination in the qualification and licensing of advanced nuclear fuel. Additionally, the ADVANCE Act provides incentives for developing and deploying new nuclear technologies (e.g., reduced licensing fees and prize awards for deploying new nuclear technologies). A meeting agenda will be made available in advance on the NRC website. The meeting will be held on March 4, 2025 from 9am to 12pm ET and will be available to the public as follows: (1) in-person in the NRC Commissioners’ Hearing Room, 11555 Rockville Pike, Rockville, Maryland; and (2) virtually on the NRC website. There is no stated requirement to RSVP to attend the meeting.

Federal Contracting 

Bipartisan Water Infrastructure Subcontractor and Taxpayer Protection Act Reintroduced in the Senate

On February 13th, the MCAA worked with its allies in the Water Infrastructure Finance and Innovation Act (WIFIA) Coalition to secure reintroduction of the bipartisan “Water Infrastructure Subcontractor and Taxpayer Protection Act.” This bill requires prime contractors on federally financed water infrastructure projects to hold surety bonds, ensuring local sponsors and subcontractors are compensated if a contractor defaults before project completion. It is led by Sens. Mark Kelly (D-AZ) and Kevin Cramer (R-ND) in the Senate and Reps. Chris Pappas (D-NH) and Mike Bost (R-IL) in the House. Currently, WIFIA projects, often funded through public-private partnerships, are exempt from requiring contractors to hold surety bonds, even though such bonds are standard for other public infrastructure projects. Research shows that projects without these bonds are ten times more likely to default, leading to costly delays and increased risks. By advocating for the reintroduction of this bill, the MCAA aims to close this loophole, offer better protection for subcontractors, and reduce the financial burden of defaults.

TX, LA, and MS Ask Fifth Circuit to Review Decision Upholding Biden $15/Hour Minimum Wage for Federal Contractors

On February 17^th, Texas, Louisiana, and Mississippi asked the U.S. Fifth Circuit Court of Appeals for an en banc review of a recent three-judge panel decision upholding the Biden Administration’s $15/hour minimum wage for federal contractors. The states argue the decision violates court precedent and deepens a circuit split between the Ninth Circuit, which invalidated the rule, and the Tenth Circuit, which upheld it. The states also argue the en banc appeal is “extraordinarily important” because it impacts hundreds of thousands of businesses and “$20 billion in spending.”

Other Interesting Things Since Our Last Report 

February 20, 2025

• The Trump White House and Treasury Department agreed to prohibit the Department of Government Efficiency (DOGE) from accessing personal taxpayer data, heading off a brewing privacy crisis at the Treasury Department and IRS. As part of the agreement, DOGE will have read-only access to anonymized tax data, the same access granted to academic researchers and IT professionals who work on IRS systems. The developments come after the Social Security Administration’s Acting Commissioner, Michelle King, resigned on February 17^th over DOGE requests to access Social Security recipient information.

• The Pentagon confirmed that Defense Secretary Pete Hegseth issued a memorandum directing the Armed Forces to reduce projected U.S. military spending by 8% over the next five years. His memorandum listed 17 areas that “may not be included by the services and components in their 8% decrease,” including, nuclear weapons modernization, the Virginia-class submarine, and “executable surface ship programs.” 

• The mass firings of federal employees picked up steam and began impacting the U.S. Department of Labor, as well as nearly every agency within the Transportation Department, including critical safety agencies such as the Pipeline and Hazardous Materials Safety Administration, the National Highway Transportation Safety Administration, and the Federal Aviation Administration. While the pace of terminations is picking up, the haphazard nature of the job cuts is becoming apparent as the Trump Administration is frantically working to hire back over 300 employees fired on February 13^th from the National Nuclear Security Administration (NNSA) after bipartisan fury from Congress over the national security implications of the terminations. The fired employees included NNSA staff with the highest level security clearances who work at facilities where nuclear weapons are built, who oversee contractors who build nuclear weapons, and who are responsible for inspecting those weapons.

February 19, 2025

• The Financial Crimes Enforcement Network (FinCEN) announced that implementation of the Corporate Transparency Act’s beneficial ownership reporting requirements has resumed following U.S. District Judge Jeremy Kernodle’s ruling on February 18^th lifting an injunction against the law. The ruling will allow the law to be enforced while the Department of Justice appeals Kernodle’s earlier ruling declaring the law unconstitutional. Per FinCEN, for most companies the beneficial ownership filing deadline has been extended for 30 days to March 21, 2025. Reporting companies can report their beneficial ownership information directly to FinCEN using FinCEN’s E-Filing system available here. More information on the beneficial ownership reporting requirements is available here.

• Sen. Mark Kelly (D-AZ) is pitching the White House on the latest version of the SHIPS Act that he and his Republican cosponsors are preparing for reintroduction in the next couple months to revitalize the U.S. maritime industry. Last Congress, the House companion was co-sponsored by Rep. Michael Waltz (R-FL), who now serves as Trump’s national security adviser. Sen. Kelly believes the bill aligns with President Trump’s views on industrial capacity and competitiveness with China. Kelly has already spoken to Waltz about the bill and thinks the House GOP will be interested, too.

• The Trump Agriculture Department scrambled to rescind termination notices the Administration sent to several employees working on avian flu response planning after Robert Redfield, the head of the Centers for Disease Control (CDC) during Trump’s first term, warned that the COVID pandemic “was a minor epidemic compared to the epidemic that’s coming — which is a bird flu pandemic.” Redfield cautioned that “this is not a time to cut our ability to have a rapid public health response agency.”

February 18, 2025

• President Trump signed an Executive Order on in vitro fertilization (IVF) directing that “[w]ithin 90 days of the date of this order, the Assistant to the President for Domestic Policy shall submit to the President a list of policy recommendations on protecting IVF access and aggressively reducing out-of-pocket and health plan costs for IVF treatment.” The executive order could again raise disagreements within the Republican Party on reproductive health. Notably, while campaigning for his second term President Trump promised to have the government or insurance companies cover the cost of IVF for “all Americans that need it.”

• New Democratic National Committee (DNC) Chair Ken Martin pledged that union workers and labor leaders will be “core to my decision-making” as “Trump wages his war on working families.”

February 16, 2025

• The Council for Environmental Quality (CEQ) submitted for review to the White House Office of Information and Regulatory Affairs (OIRA) an interim final rule entitled “Removal of National Environmental Policy Act (NEPA) Implementing Regulations,” to implement President Trump’s January 20, 2025 Executive Order (EO) 14154 on “Unleashing American Energy.” This EO directs CEQ to pursue rescission of all rules issued under NEPA and to replace them with nonbinding guidance by February 19, 2025 intended to make permitting faster. This EO follows a separate EO issued on February 14^th establishing the National Energy Dominance Council, led by the Departments of Interior and Energy to advise the President on: (1) using presidential authority to produce more energy; (2) improving processes for permitting, production, generation, distribution, regulation, transportation, and export of all forms of American energy and critical minerals; and (3) facilitating cooperation among the federal government and domestic private sector energy partners. Among other things, the Council is to advise the President within 100 days on incentives to attract and retain private sector energy-production investments and on practices that can be ended because they raise the cost of energy.

February 14, 2025

• National Labor Relations Board (NLRB) Acting General Counsel William B. Cowen issued a memo to all field offices to rescind certain memoranda issued by the previous NLRB General Counsel Abruzzo. The rescinded memoranda include: (1) GC 24-01 concerning the Board’s Decision in Cemex Construction Materials Pacific, LLC; (2) GC 23-08 and GC 25-01 on non-compete agreements; (3) GC 23-02 on electronic monitoring; (4) GC 21-06 and GC 21-07 addressing remedies to be sought; and (5) GC 23-05 on severance agreements. Additionally, Acting General Counsel Cowen has rescinded GC Memo 21-01 on Mail Ballot Elections on the grounds that “COVID-19 is no longer a Federal Public Health Emergency.”

February 13, 2025

• Trump Environmental Protection Agency (EPA) Administrator Lee Zeldin said he will try to recoup $20 billion the Biden Administration gave to eight organizations under the Biden-era Greenhouse Gas Reduction (“Green Bank”) program created by the Inflation Reduction Act. The recoupment effort raises legal and practical questions, including how the money could be taken back, given that the eight entities have already further distributed much of it to grantees undertaking climate change projects. 

• National Labor Relations Board acting General Counsel William Cowen announced the selection of Stephanie Cahn to be acting Deputy General Counsel. Cahn joined the NLRB in 1997 and has spent her entire career in NLRB Region 21 (Downtown Los Angeles). She started as a Field Attorney before being promoted to Supervisory Field Attorney in 2013. In 2024 she was promoted again to Regional Attorney. 

February 12, 2025

• The Trump Securities and Exchange Commission issued Staff Bulletin 14M revising rules on excluding shareholder proposals from issuers’ proxy statements to make it harder for activist investors to demand shareholder votes on proposals that touch on charged social issues, including climate change and decarbonization. The move reverses Biden-era policy and comes as activist groups on the left and right increasingly pursue shareholder activism to fight culture-war battles on climate change and decarbonization. Biden-appointed SEC Commissioner Caroline Crenshaw issued a statement opposing the new staff bulletin.

February 11, 2025

• President Trump signed an Executive Order entitled, “Implementing the President’s ‘Department of Government Efficiency (DOGE)’ Workforce Optimization Initiative.” The Executive Order directs agencies to work with DOGE to implement a federal “workforce optimization plan” that involves cutting federal agency staff and limiting hiring, with the goal of “significantly” reducing the size of the federal government. Under the plan, new hires are to be limited to only “essential positions” that are required by law. The Executive Order also directs each federal agency to “undertake plans for large-scale reductions in force.” This comes as the Trump Office of Personnel Management formally submitted draft regulations that would make it easier for agencies to fire career government officials who push back against presidential orders. The move is the latest step toward rekindling a plan initiated at the end of the first Trump Administration to eliminate civil service protection for federal employees who play a role in policy development or advocacy.

• Tony Fabrizio, President Trump’s campaign pollster, met with congressional Republicans to share a new AARP survey that found a tax credit proposed last Congress for family caregivers—The Credit for Caring Act—is the most popular proposal in the current tax debate among registered voters nationally. The proposal is also the most popular in 28 of the most competitive House districts in the 2026 midterms. The proposal has strong support across party lines with 87% of Democrats, 84% of Republicans, and 82% of Independents in favor. Last Congress, The Credit for Caring Act (H.R. 7165) introduced by Reps. Linda Sanchez (D-CA) and Mike Carey (R-OH) called for providing a nonrefundable tax credit of up to $5,000 to cover 30% of qualified long-term care expenses that exceed $2,000 in a taxable year. Eligible caregivers under the proposal would have required income greater than $7,500 and care expenses for a spouse or dependent relative with long-term care needs. The Senate companion last Congress (S. 3702) was introduced by Sens. Shelly Moore Capito (R-WV) and Michael Bennet (D-CO).

• As demand surges for electricity to power data centers Energy Secertary Wright said the Trump Administration must stop the closure of coal-fired power plants because they will be “essential” to America’s power system for decades. The Southern Company is one of several electric utilities backtracking on plans to shutter coal-fired power plants in the coming years to meet the increasing demand created by the boom in artificial intelligence data centers. The company is also seeking to upgrade existing nuclear plants, expand renewable energy, and improve the overall power grid. Relatedly, Google’s global head of energy market development said the U.S. must face the “very stark reality that we don’t have enough capacity on the system to power our data centers in the short term and then potentially in the long term” as the American tech sector races against China to achieve dominance in artificial intelligence.

• Acting Securities and Exchange Commission (SEC) Chair Mark Uyeda confirmed that the SEC will not defend the March 2024 Biden-era SEC final climate disclosure rule requiring publicly held companies to disclose climate-related risks and in some cases the details of their emissions. Uyeda explained that “the rule is deeply flawed and could inflict significant harm on the capital markets and our economy.”

February 10, 2025 

• Senate Minority Leader Chuck Schumer (D-NY) sent a memorandum to the Senate Democratic Caucus outlining a four-part plan to push back on the Trump Administration through: (1) Oversight; (2) Litigation; (3) Legislation; and (4) Communications and Mobilization. The plan includes the launch of a new Whistleblower Portal for federal employees to report corruption, abuses of power, and threats to public safety. This comes as House Minority Leader Hakeem Jeffries (D-NY) announced he is launching a new “Rapid Response Task Force and Litigation Working Group” led by Assistant Minority Leader Joe Neguse (D-CO) and co-chaired by Reps. Rosa DeLauro (D-CT), Gerry Connolly (D-VA), and Jamie Raskin (D-MD), the Ranking Members of the Appropriations, Oversight, and Judiciary Committees, respectively. Meanwhile, Sen. Andy Kim (D-NJ) alluded to a potential government shutdown as a Democratic reaction to President Trump and Elon Musk’s recent actions shaking up Washington, D.C.

• National Republican Senatorial Committee Chairman Sen. Tim Scott (R-SC) said his team believes that control of the U.S. Senate in the 2026 midterm elections will come down to six battleground states—Georgia, Michigan, New Hampshire, Maine, North Carolina, and Ohio. Scott also said that the 2026 races will likely break spending records and that defending seats in North Carolina, Maine, and Ohio will require a massive effort.

• U.S. Customs and Immigration Services announced that, beginning on February 19^th, the “Introducing E-Verify+” webinar will be added to its monthly webinar schedule. E-Verify+ is intended to streamline employment eligibility verification by combining the Form I-9 and E-Verify into one digital process. The full schedule of webinars is available here. The next webinar will be held on March 25, 2025 from 2pm to 3pm ET, with registration available here.

Around the Country 

Northeast 

• In a blow to New York Gov. Kathy Hochul (D), on February 19^th, the Trump Transportation Department’s (DOT) Federal Highway Administration (FHWA) withdrew approval for New York’s Congestion Pricing Plan for vehicles entering Manhattan below 60^th Street. In announcing the withdrawal, President Trump posted on his Truth Social account, “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!” Transportation Secretary Sean Duffy called New York’s congestion pricing plan “a slap in the face to working class Americans and small business owners.” Secertary Duffy also said that “[c]ommuters using the highway system to enter New York City have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes.” The FHWA gave two reasons for withdrawing its approval: (1) the scope of the Congestion Pricing Plan is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in Manhattan; and (2) the toll rate was set primarily to raise revenue for transit projects rather than to reduce congestion. The FHWA states that it will work with the project sponsors on “an orderly termination of the tolls.” 

• On February 13^th, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a notice of proposed safety order requiring Sunoco Pipeline, LP to take certain measures with respect to the Sunoco Twin Oaks Discharge pipeline system in Bucks County, Pennsylvania to ensure pipeline safety. This notice, if adopted, would resolve PHMSA’s investigation, which was initiated in response to a release on the Twin Oaks Pipeline that Sunoco discovered on January 31, 2025.

• On February 13^th, Pennsylvania Gov. Josh Shapiro (D) sued Trump Administration agencies, saying they are illegally and unconstitutionally withholding billions in federal aid from the state that had already been approved by Congress—including funding under the Inflation Reduction Act and Bipartisan Infrastructure Law. Shapiro filed the lawsuit despite the fact that federal courts have repeatedly rejected the Trump Administration’s sweeping pause on federal funding, and Shapiro’s lawyers suggest that the Trump Administration is continuing to ignore court orders to restore access to the suspended money. 

West

• On February 20^th, the Trump Transportation Department’s Federal Railroad Administration (FRA) initiated a review of the California High-Speed Rail Authority (CHSRA) to “determine whether roughly $4 billion in taxpayer money should remain committed to the proposed project to build high-speed rail in the California Central Valley between Merced and Bakersfield.” The review will assess CHSRA’s compliance with FRA-administered grant agreements to determine whether CHSRA has fully met its obligations under the award terms. The letter warns CHSRA that the review “may result in remedial action up to and including withholding of reimbursement and termination of cooperative agreements” and “that any work completed from the date of this notice forward is at the risk of CHSRA.” In a press release announcing the review, Trump Transportation Secretary Sean Duffy said: “For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project.”

• On February 18^th, the Trump Environmental Protection Agency (EPA) announced a $110 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Weber Basin Water Conservancy District in northern Utah to provide drinking water to five counties by expanding two drinking water treatment plants, replacing water storage tanks, and constructing transmission lines, an aquifer storage recovery well, and water reuse facilities.

• On February 13^th, the U.S. Coast Guard published a notice of the receipt of a revised application from the City of Sacramento, CAto construct the new “C” Street highway drawbridge across the Sacramento River. Following the closure of the comment period on a May 9, 2024, Public Notice regarding the proposed new bridge, the city requested that the horizontal clearance of the proposed bridge be reduced by four feet from 282 feet to 278 feet due to the addition of pier protection. Comments on the proposed changes are due by February 28, 2025.

• On February 18^th, Democrat Christina Gagnier announced a bid for California’s 40^thCongressional District currently held by Rep. Young Kim (R-CA).

Northwest 

• On February 21^st, West Coast states and members of Congress expressed concern that that mass federal employee firings at Bureau of Reclamation dams and at the Bonneville Power Administration (BPA) could disrupt hydropower generation in the Pacific Northwest. The BPA is a federal agency that markets and distributes electricity across six states that is generated at 31 hydropower dams operated by the U.S. Army Corps of Engineers and the Interior Department’s Bureau of Reclamation. 

Midwest

• On February 13^th, Sen. Tina Smith (D-MN) announced she would not seek reelection in 2026 because she wants to spend more time with her four grandchildren. Smith is the second Democratic incumbent to announce retirement, following Sen. Gary Peters’ (D-MI) announcement earlier this year. Former Democratic vice presidential candidate and current Minnesota Gov. Tim Walz (D) and Reps. Angie Craig (D-MN) and Ilhan Omar (D-MN) are all reportedly considering a run for Smith’s seat. Minnesota Lt. Gov. Peggy Flanagan (D) launched her campaign for Smith’s seat on February 20^th. 

• On February 12^th, the Minnesota Chapter of the Associated Builders and Contractors (ABC) and commercial construction company J&M Consulting filed a lawsuit challenging the legality of a Minnesota law set to take effect March 1^st imposing fines of $10,000 for each construction worker misclassified as an independent contractor along with potential jail time. The complaint alleges the law is unconstitutionally vague and preempted by the National Labor Relations Act.

Southeast

• On February 20^th, former Senate Republican Leader Sen. Mitch McConnell (R-KY) announced that he will not seek re-election in 2026. Former Kentucky Attorney General Daniel Cameron (R), who also previously served as a McConnell staffer, announced he will seek McConnell’s seat next year. But it looks like there will be a contested primary because Rep. Andy Barr (R-KY) is also interested in McConnell’s Senate seat and is using Gov. Andy Beshear’s (D-KY) 2023 victory over Cameron to frame Cameron as a proven loser. This comes as Barr is being attacked the Club for Growth in ads saying he was raised with a “silver spoon” and “hasn’t earned” a shot at a Senate seat.

• On February 18^th, the Trump Environmental Protection Agency (EPA) announced a $147 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to Florida Keys Aqueduct Authority to complete several projects in Miami-Dade and Monroe Counties. The loan will support critical upgrades to the transmission mains, storage tanks, and a water treatment facility to improve the system’s ability to withstand hurricanes and other extreme weather events, protect against damage caused by saltwater intrusion, and improve drinking water quality through proactive regulatory compliance.

• On February 18^th, the Trump Environmental Protection Agency (EPA) announced that it has signed a final rule approving West Virginia’s Class VI Primacy Application to regulate the injection of carbon dioxide (CO₂) into deep rock formations. West Virginia Governor Patrick Morrissey said this delegation allowing West Virginia to approve Class VI wells for carbon dioxide (CO₂) capture and storage into deep rock formations will “open the door for new investment and job creation in our energy, manufacturing, and petrochemical sectors.” 

• On February 14^th, the Trump Energy Department indicated it will issue an order conditionally approving a license for Commonwealth LNG to ship millions of tons of liquefied natural gas (LNG) a year to European and Asian countries that do not have free-trade agreements with the U.S. from a planned facility near Cameron, Louisiana. The Trump Energy Department is expected to clear a backlog of a roughly a dozen major LNG projects that have been pending approval from the department since the Biden Administration paused approval of new LNG export terminals.

• On February 13^th, Dominion Energy Inc., the biggest utility in Virginia, noted in its earnings call that data center power capacity under contract with the company increased from 21.4 gigawatts in July 2024 to 40.2 gigawatts by December 2024. Northern Virginia has the biggest concentration of data center facilities in the world, earning it the nickname Data Center Alley.

Southwest

• On February 14^th, the Trump Transportation Department announced that its Maritime Administration (MARAD) issued a Record of Decision to Sentinel Midstream, LLC to construct and operate a deepwater port for the export of domestically produced crude oil located approximately 26.6 nautical miles off the coast of Brazoria County, Texas. The company will establish a shoreside support facility at an operational commercial site within Freeport Harbor and will utilize dock space at the Port Freeport Public Docks located in Freeport, TX.

• On February 12^th, Karrin Taylor Robson, an attorney and business executive with ties to the state’s GOP establishment, launched a second run for governor of Arizona after losing in the Republican primary in 2022 to Kari Lake. This time, Robson has President Trump’s endorsement in her bid.

• On February 11^th, former Biden Interior Secretary Deb Haaland (D) launched a bid to be the next governor of New Mexico.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, February 10, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

Senate Confirms Several Trump Cabinet Nominees

Over the last two weeks, the Senate has confirmed several Trump Cabinet nominees, including: (1) former South Dakota Gov. Kristi Noem as Homeland Security Secretary; (2) Liberty Energy CEO Chris Wright as Energy Secretary; (3) former North Dakota Gov. Doug Burgum (R) as Interior Secretary; (4) former Rep. Sean Duffy (R-WI) as Transportation Secretary; (5) hedge fund manager Scott Bessent as Treasury Secretary; (6) former Rep. Lee Zeldin (R-NY) to lead the Environmental Protection Agency; (7) Pete Hegseth as Defense Secretary; (8) former Florida Attorney General Pam Bondi as U.S. Attorney General; (9) former NFL player and Texas state representative Eric Scott Turner as Housing and Urban Development Secretary; (10) Russel Vought as Director of the Office of Management and Budget; and (11) former Rep. Doug Collins (R-GA) as Veterans Affairs Secretary. To date, the Senate has confirmed 13 Cabinet-level nominees, more than double the number at this point under the previous two administrations. 

Last week, Senate Majority Leader John Thune (R-ND) also filed cloture on: (1) Robert F. Kennedy’s nomination to be Health and Human Services Secretary; (2) Howard Lutnick’s nomination to be Commerce Secretary; (3) former Sen. Kelly Loeffler’s (R-GA) nomination to lead the Small Business Administration; (4) Brooke Rollins’ nomination to be Agriculture Secretary; and (5) former Rep. Tulsi Gabbard’s (D-HI) nomination to be Director of National Intelligence. 

Senate HELP Schedules Labor Secretary Confirmation Hearing for This Wednesday

The policy team ramped up its advocacy for former Rep. Lori Chavez-DeRemer’s MCAA-supported nomination to be the next Labor Secretary after the Senate Health, Education, Labor, and Pensions Committee noticed her confirmation this Wednesday, February 12, 2025 at 10am. Her confirmation hearing comes after Sen. Rand Paul (R-KY), a senior Republican on the HELP Committee, said on January 27^th that he will oppose her MCAA-supported nomination because of her “pro-union views”—particularly her support of the Protecting the Right to Organize (PRO) Act. Paul also predicted that Chavez-DeRemer would “lose 15 Republicans” in the Senate but would win some Democrats because “she’s very pro-labor.” We are focused on Senate HELP Chair Cassidy and think that he is coming around to supporting DeRemer despite expressing concerns about her nomination.

Trump Fires Biden’s Democratic Appointees at NLRB and EEOC 

On January 27th, President Trump fired National Labor Relations Board (NLRB) acting Chair Gwynne Wilcox and General Counsel Jennifer Abruzzo. Wilcox filed a lawsuit challenging her firing last Wednesday, while Abruzzo issued a statement warning that if the NLRB fails to meet its mandate, workers might take matters into their own hands to ensure dignity in the workplace. On February 1st, Trump also fired acting General Counsel Jessica Rutter and appointed William B. Cowen as acting NLRB General Counsel. Wilcox’s dismissal left the NLRB without a quorum. 

On January 28^th, President Trump fired Democratic Equal Employment Opportunity Commission (EEOC) Commissioners Jocelyn Samuels and Charlotte Burrows, ending the Democratic majority at the EEOC. Trump also fired EEOC General Counsel Karla Gilbride and replaced her on February 4^th with Andrew Rogers as acting EEOC General Counsel. Following the firings, the EEOC posted a new webpage entitled, “The State of the EEOC and Frequently Asked Questions (FAQs)” that confirmed the EEOC’s loss of a quorum but assured that the agency would continue enforcing federal anti-discrimination laws and processing discrimination charges.  

Energy Secretary Wright Issues Order to “Unleash American Energy”

Last Thursday, Energy Secretary Chris Wright signed his first Secretarial Order directing the Department of Energy (DOE) to “take immediate action to unleash American Energy” by expanding energy production, reducing energy costs, and leading in innovation and technology breakthroughs by accelerating the work of the Department’s National Laboratories, among other things. The Secretarial Order announces the following nine actions: (1) “Advance Energy Addition, Not Subtraction” by eliminating net-zero emissions policies; (2) “Unleash American Energy Innovation” by reviewing the Department’s Research & Development (R&D) portfolio to focus the Department’s R&D towards technologies that prioritize “affordable, reliable, and secure energy technologies, including fossil fuels, advanced nuclear, geothermal, and hydropower” and “true technological breakthroughs – such as nuclear fusion, high-performance computing, quantum computing, and AI”; (3) “Return to Regular Order on LNG [Liquefied Natural Gas] Exports”; (4) “Promote Affordability and Consumer Choice in Home Appliances” by initiating a review of the DOE Appliance Standards Program; (5) “Refill the Strategic Petroleum Reserve (SPR)”; (6) “Modernize America’s nuclear stockpile”; (7) “Unleash Commercial Nuclear Power in the United States”; (8) “Strengthen Grid Reliability and Security”; and (9) “Streamline Permitting and Identify Undue Burdens on American Energy” by expediting the approval and construction of “reliable energy infrastructure.”

Interior Secretary Burgum Begins Implementation of Trump EO Declaring Energy Emergency

Last Tuesday, Interior Secretary Doug Burgum began implementing President Trump’s Executive Order declaring an Energy Emergency by issuing six Secretarial Orders. Under Secretary’s Order 3417, the Interior Department (DOI) will immediately identify all authorities available to: (1) facilitate the identification, permitting, leasing, development, production, transportation, refining, distribution, exporting, and generation of domestic energy resources and critical minerals; and (2) expedite the completion of all authorized and appropriated infrastructure, energy, environmental, and natural resources projects. Under Secretary’s Order 3418, the Secretary directs a review of all appropriations from the Inflation Reduction Act and Bipartisan Infrastructure Law to ensure consistency with President Trump’s energy dominance policies, directs a review of all domestic mining and processing of non-fuel minerals, and updates the U.S. Geological Survey’s list of critical minerals and accelerates the ongoing geological mapping of the country. Secretary’s Order 3419 initiates a DOI-wide review of all programs and regulations that contribute to increased costs of living, focusing on ways to “eliminate harmful, coercive climate policies and lower the cost of energy.” Secretary’s Order 3420 directs immediate compliance with President Trump’s order opening the Outer Continental Shelf to oil and gas leasing. Secretary’s Order 3421 directs DOI to support the Trump Administration’s deregulation agenda as outlined in President Trump’s January 20, 2025 Executive Order “Unleashing Prosperity Through Deregulation” by eliminating at least ten existing regulations for every new one introduced. Finally, Secretary’s Order 3422 reinstates the May 31, 2017 Secretary’s Order No. 3352, “National Petroleum Reserve – Alaska,” to prioritize the development of natural resources in Alaska on both federal and state lands. Secretary’s Order 3422 further directs an immediate review of all punitive restrictions that have targeted resource development in Alaska and requires the Interior Department to develop plans of action to carry out President Trump’s energy agenda in the state.

EPA Administrator Zeldin Outlines Trump Administration Climate Priorities 

Last Tuesday, Environmental Protection Agency (EPA) Administrator Lee Zeldin announced the agency’s “Powering the Great American Comeback Initiative” outlining the EPA priorities of the Trump Administration. The initiative features the following five pillars to guide the EPA’s work over the Trump Administration’s first 100 days and after: (1) “Clean Air, Land, and Water for Every American”; (2) “Restore American Energy Dominance” to cut energy costs and “stop relying on energy sources from adversaries, while lowering costs for hardworking middle-income families, farmers, and small business owners”; (3) “Permitting Reform, Cooperative Federalism, and Cross-Agency Partnership” to streamline the “years-long, uncertain, and costly permitting processes”; (4) “Make the United States the Artificial Intelligence Capital of the World” by working to “ensure data centers and related facilities can be powered and operated in a clean manner with American-made energy”; and (5) “Protecting and Bringing Back American Auto Jobs,” through which the Trump EPA will “bring back American auto jobs and invest in domestic manufacturing to revitalize a quintessential American industry.” Additionally, the Trump EPA announced that pursuant to President Trump’s January 20, 2025 Executive Order, “Restoring Names That Honor American Greatness,” the EPA’s “Gulf of Mexico Division” has been renamed “the Gulf of America Division.” The Gulf of America program is one of the EPA’s Great Water Body programs.

DOT Memo Orders Funding to Be Prioritized for Communities with High Marriage and Birth Rates and Those Cooperating with Immigration Officials

Last Tuesday, Transportation Secretary Sean Duffy issued a memorandum to Department of Transportation (DOT) staff ordering that “effective immediately” priority in DOT programs, grants, and financial assistance be given “to communities with marriage and birth rates higher than the national average.” This includes “all DOT grants, loans, contracts, and DOT-supported or assisted state contracts,” including the Federal Transit Administration’s Capital Investment Program. Secretary Duffy also directed DOT agencies to prioritize projects that “utilize user-pay models,” and “direct funding to local opportunity zones.” Secretary Duffy also intends to condition DOT funding on “local compliance or cooperation with federal immigration enforcement and with other goals and objectives specified by the President.” To effectuate this order, DOT agencies are directed to “[r]eview their existing grant agreements, loan agreements, and contracts, and, to the extent permitted by law, unilaterally amend the general terms and conditions as necessary to ensure…consistency with this Order.” They are also directed to revise language in all DOT awards, grants, loan agreements, and financial assistance going forward to be consistent with this order.

Trump Signs EO Mandating Agencies Repeal 10 Existing Regulations for Every New Regulation Issued

On January 31^st, President Trump signed an Executive Order on deregulation requiring each federal agency to identify ten existing rules, regulations, or guidance to be repealed for every rule, regulation, or guidance it promulgates. According to a White House fact sheet, the order directs the White House Office of Management and Budget (OMB) to ensure standardized measurement and estimation of regulatory costs for each new rule, and that for fiscal year 2025, “the total incremental cost of all new regulations, including repealed regulations, be significantly less than zero.”

White House Causes Widespread Confusion with Memo Halting Federal Funds

On January 29^th, the White House rescinded an Office of Management and Budget (OMB) memo issued on January 27^th freezing federal grants and loans until the Trump Administration could conduct a review of over 2,600 federal programs for their compliance with President Trump’s policies and priorities. The rescission followed a federal judge’s decision on January 28^th to block the freeze. On February 3rd, the same federal judge extended this injunction, expressing concern that the freeze may persist at some agencies. A separate federal judge in Rhode Island also blocked the memo on January 31st, arguing that the underlying policy remained in force despite its rescission, pointing to a tweet by White House Press Secretary Karoline Leavitt confirming the freeze remained in effect.

On February 3rd, the Justice Department filed a court order stating the Trump Administration interpreted the Rhode Island judge’s ruling as not blocking Trump’s Executive Orders. Despite this filing, as of the end of last week, funding for several key EPA programs remained on hold. To date, the EPA has not issued information on which programs funded by the Inflation Reduction Act and Bipartisan Infrastructure Law have been unfrozen, sparking confusion among award recipients and on Capitol Hill. Nonprofit groups and state agencies insist that they still lacked access to the Environmental Protection Agency’s (EPA) climate and infrastructure grant awards.Reports that the funding remains blocked come as U.S. District Court Judge John McConnell in Rhode Island said last Thursday that he stands ready to enforce an order he issued blocking the Trump Administration from freezing federal grants, loans, and other financial assistance, saying states had a “rightful concern” that they were still unable to access money.

MCAA Issues and Interests 

Decarbonization

MCAA is focused on using the new Administration and the new Congress to revisit some of the aggressive and ill-conceived decarbonization rulemakings of the Biden Administration. 

MCAA Advocates to Rescind Biden HFC Phasedown Rule 

One of the decarbonization rules we are targeting is the Biden-era EPA’s October 11, 2024 final rule on “Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons (HFCs) and Substitutes Under the American Innovation and Manufacturing Act of 2020 (AIM Act).” We are pleased that on January 28^th, Rep. Neal Dunn (R-FL) introduced the MCAA-supported H. J. Res. 30, a Congressional Review Act resolution disapproving of this rule. Sen. Roger Marshall (R-KS) followed shortly after with introduction of a Senate companion resolution on February 5^th (S. J. Res. 14). As part of our advocacy, the MCAA has already transmitted letters of support to the House and Senate for these resolutions. The letters reflect the arguments MCAA has been making since this final rule issued, including stressing the fact that the final rule imposes standards that are not just costly, but in some regards impractical and unachievable. We are making the point that the regulation is overly ambitious because it assumes alternatives to HFCs that are either unaffordable or unavailable.

MCAA Lobbies in Favor of CRA to Nullify DOE Rule on Conservation Standards for Consumer Gas-Fired Instantaneous Water Heaters

MCAA is also continuing its lobbying effort in support of bicameral Congressional Review Act (CRA) resolutions (S.J. Res. 4 and H.J. Res. 20) to nullify the Department of Energy’s final rule on Energy Conservation Standards for Consumer Gas-Fired Instantaneous Water Heaters. As part of this advocacy, the MCAA publicized its letters of support for these CRA resolutions led by Sen. Ted Cruz (R-TX) and Rep. Gary Palmer (R-AL). The letters reflect MCAA’s advocacy that the rule has the “potential to drastically increase prices” and “eliminate non-condensing tankless water heaters from the market” and explains that if the rule is allowed to take effect on March 11, 2025, “consumers would be forced to choose between buying more expensive models or non-instantaneous storage tank water heaters, which are typically less efficient.” 

MCAA is also making these arguments to Senate Majority Leader John Thune (R-SD) and Senate Minority Leader Chuck Schumer (D-NY) to get them to prioritize precious Senate floor time for a vote on this resolution as the Senate juggles many priorities ranging from President Trump’s nominees to budget reconciliation and plans to fund the government after March 14^th. 

DOE Extends Comment Deadline on 2024 LNG Export Study

On February 5^th, the Department of Energy (DOE) announced that it is extending—from February 18, 2025 to March 20, 2025—the comment deadline for its December 20, 2024 Federal Register notice in connection with a multi-volume study of the potential effects of U.S. liquified natural gas exports on: (1) the domestic economy; (2) U.S. households and consumers; (3) communities that live near locations where natural gas is produced or exported; (4) domestic and international energy security, including effects on U.S. trading partners; and (5) the environment and climate. The full study can be accessed on DOE’s website. Comments are now due by March 20, 2025 and should be submitted on DOE’s website.

DOT Secretary Duffy Directs NHTSA to Propose the Recission or Replacement of Fuel Economy Standards

On January 29^th, shortly after being confirmed, Transportation Secretary Sean Duffy signed a memorandum directing the National Highway Traffic Safety Administration (NHTSA) to “propose the rescission or replacement of any fuel economy standards” necessary to bring the rules in line with Trump’s priority of promoting oil and biofuel. Secretary Duffy explained the order was necessary because “the existing CAFE standards promulgated by NHTSA are contrary to Administration policy.”

DOE Delays Effective Date for Final Rule Regarding Test Procedures for Central Air Conditioners and Heat Pumps 

The Department of Energy (DOE) announced that it has delayed—from February 6, 2025 to March 21, 2025—the effective date for its January 25, 2025 final rule to amend the federal test procedure for central air conditioners and heat pumps to incorporate by reference the latest versions of the applicable industry standards. DOE is also seeking comments on any further delay of the effective date, including the impacts of such delay, as well as comments on the legal, factual, or policy issues raised by the rule. DOE states that it is delaying this final rule pursuant to President Trump’s January 20, 2025 memorandum, “Regulatory Freeze Pending Review” that directed the heads of federal agencies to postpone for sixty days the effective date for any rules that have been published in the Federal Register but had not yet taken effect to review “any questions of fact, law, and policy that the rules may raise.” The final rule is now effective beginning March 21, 2025. Comments on a further delay and any issues raised by the rule are due by March 7, 2025 and should be submitted by email to ApplianceStandardsQuestions@ee.doe.gov.

FHWA Announces Suspension of $5 Billion Biden Electric Vehicle Charging Network Initiative 

In a letter sent to state transportation directors, the Federal Highway Administration (FHWA) on February 7^th said that the Department of Transportation (DOT) is rescinding all guidance related to the National Electric Vehicle Infrastructure (NEVI) program and updating the guidance to align with current U.S. DOT policy and priorities. The $5 billion NEVI program was funded by already allocated and approved Bipartisan Infrastructure Law funds, with a goal of filling holes in EV charging infrastructure around the country. More than $3 billion has already been disbursed to states under the program. In the letter, the FHWA said new guidance will be published for public comment in the spring but that “no new obligations may occur” under the existing program.

Federal Contracting 

DOL Halts Action on Federal Contractor Discrimination Cases After Trump EO Rescinding Affirmative Action for Federal Contractors 

On January 24^th, acting Labor Secretary Vince Micone signed Secretary’s Order No. 03-2025 stating that since the issuance of President Trump’s Executive Order (EO) rescinding EO 11246, “Equal Employment Opportunity” (September 24, 1965) “DOL no longer has any authority under the rescinded Executive Order” and all DOL employees are to “immediately cease and desist all investigative and enforcement activity under the rescinded Executive Order 11246, Equal Employment Opportunity (September 24, 1965).” This includes “all pending cases, conciliation agreements, investigations, complaints, and any other enforcement-related or investigative activity.” Moreover, DOL staff was directed to “[n]otify all regulated parties with impacted open reviews or investigations by January 31, 2025, that the EO 11246 component of the review or investigation has been closed and the Section 503 and Vietnam Era Veterans’ Readjustment Assistance Act components of the review or investigation are being held in abeyance pending further guidance.”

Fifth Circuit Upholds Biden’s $15/Hour Minimum Wage for Federal Contractors 

Last Tuesday, the Louisiana-based U.S. Fifth Circuit Court of Appeals upheld the Biden Administration’s $15/hour minimum wage for federal contractors, finding that the order was a permissible exercise of former President Biden’s authority under the Federal Property and Administrative Services Act. This decision follows a Ninth Circuit decision that Biden lacked authority to impose this minimum wage requirement on contractors and vacating the Labor Department rule implementing the contractor wage order. A third challenge to the $15/hour minimum wage order was rejected by the Tenth Circuit last year and the U.S. Supreme Court declined to review that ruling a week before President Trump took office. The Fifth Circuit case is Texas v. Trump. 

Registered Apprenticeship

President Trump Signs Proclamation Declaring February “Career and Technical Education Month” and Senate Passes Related Resolution 

Last Wednesday, President Trump signed a proclamation that declares February 2025 “Career and Technical Education Month.” The proclamation pledges over the next four years to “invest in the next generation and expand access to high-quality career and technical education for all Americans” by offering alternatives to higher education and training “college-aged kids in relevant skills for the 21^st century economy.” The Senate followed Trump’s signing of the proclamation by unanimously passing last Thursday S. Res. 66, A resolution supporting the goals and ideals of Career and Technical Education Month. The resolution “recognizes the importance of career and technical education in preparing a well-educated and skilled workforce in the United States” and “encourages educators, school counselors, guidance and career development professionals, administrators, and parents to promote career and technical education as a respected educational pathway for students.” 

Independent Contractors and Misclassification of Workers 

Fifth Circuit Grants Trump DOJ Request to Delay Oral Arguments in Lawsuit Challenging MCAA-Supported Independent Contractor Rule 

On January 24^th, the U.S. Fifth Circuit Court of Appeals granted a request filed by the Trump Justice Department to delay oral arguments scheduled for February 5, 2025 in a lawsuit challenging the Biden Labor Department’s (DOL) MCAA-supported independent contractor final rule making it harder for employers to treat their workers as independent contractors. The Justice Department said the delay was necessary to provide the new Trump DOL “with sufficient time to familiarize” itself “with these issues and determine how they wish to proceed.” The move to delay the independent contractor hearing is the first in what may be many withdrawals from litigation involving Biden-era regulations at the Labor Department and other agencies. Other Biden-era Labor Department final rules issued within the last two years that remain in litigation include regulations on prevailing wage and overtime standards.

Project Labor Agreements

As early as today, we may learn more about the Trump Administration’s plans for Project Labor Agreements as the Trump Justice Department must file a status report in the Federal Court of Claims litigation that led to seven federal construction contracts with PLA’s being declared in violation of the Competition in Contracting Act.  We previously reported on how this decision could be used by ABC [Associated Builders and Contractors] and its members in future bid protests to challenge the requirements of President Biden’s PLA Executive Order, and how it set off furious lobbying against rescission of the Biden PLA Order. The Justice Department could announce actions specific to the seven contracts, remedial steps specific to Department of Defense contracts generally (since all seven challenged contracts were from the Pentagon), or it could indicate that it will repeal the Biden PLA Executive Order to extinguish the legal challenge. MCAA and its allies have been urging the Administration to stop short of rescinding the Executive Order and we will soon see how effective this advocacy has been.  We also understand that there are additional bid protest cases in process on which decisions may soon be rendered, adding additional complexities to this advocacy on PLAs.

Other Interesting Things Since Our Last Report 

February 7, 2025

• In their earnings calls this week several of the biggest spenders on the data centers powering artificial intelligence (AI) systems all said they would increase their investments in 2025 after record outlays last year. Microsoft, Google, and Meta projected combined capital expenditures of at least $215 billion for their current fiscal years, an annual increase of more than 45%. Additionally, Amazon indicated that its total capex [capital expenditures] across its businesses is on course to grow to more than $100 billion and said most of the increase will be for AI. These statements are especially notable given recent investor anxiety over the impact of China’s DeepSeek and whether U.S. companies will garner returns on AI justifying these unprecedented expenditures.

February 6, 2025 

• The Energy Department announced the following senior staff appointments, among others: (1) Steven Winberg as Acting Secretary, Office of the Under Secretary for Infrastructure; (2) Cathleen Tripodi as Executive Director, Office of Clean Energy Demonstrations; (3) Joseph Alexander as Chief of Staff, Grid Deployment Office; (4) John Sneed as Director, Loan Programs Office; (5) Alexander Fitzsimmons as Chief of Staff, Office of the Secretary; and (6) Eric Mahroum as Director, State And Community Energy Programs.

• Sen. Josh Hawley (R-MO) met with United Automobile Workers President Shawn Fain to discuss working together on pro-labor priorities, including Hawley’s recently-released framework for a GOP pro-labor policy agenda. Meanwhile, the Wall Street Journal Editorial Board criticized Hawley for adopting “left wing economics” akin to positions of Sen. Bernie Sanders (I-VT). The news comes a day after the Coalition for a Democratic Workplace and 42 employer organizations sent a letter to the entire Senate urging Senators to reject Sen. Hawley’s pro-worker framework. The letter complained that the framework includes concepts from Sen. Bernie Sanders’s (I-VT) Protecting the Right to Organize (PRO) Act and Senator Ed Markey’s (D-MA) Warehouse Worker Protection Act. It goes on to warn that concepts in Senator Hawley’s framework “have been rejected by Congress, the National Labor Relations Board, and the courts and face strong opposition from the regulated community for their potential devastating consequences” and will “harm the economy.” The letter came a day after Senators Moreno (R-OH), Peters (D-MI), and Booker (D-NJ) endorsed a provision in Hawley’s framework to stop employers from stalling contract negotiations.

• The Trump Justice Department filed a lawsuit against the city of Chicago, Cook County, and the state of Illinois over sanctuary laws that prohibit local law enforcement from aiding Immigration and Customs Enforcement in arresting undocumented immigrants. The Justice Department argues that the local laws are “designed to and in fact interfere with and discriminate against the federal government’s enforcement of federal immigration law in violation of the Supremacy Clause of the United States Constitution.”

• Federal Election Commission (FEC) Commissioner and Chair Ellen Weintraub said that President Trump has moved to fire her in letter posted on X (formerly Twitter) and indicated that she would not leave her post without a legal fight. According to Weintraub’s post on X, the letter states that she is “hereby removed as a Member of the Federal Election Commission, effective immediately.” In response, Weintraub stated that there is a “legal way to replace FEC commissioners-this isn’t it.”

February 5, 2025

• House Oversight and Government Reform Committee Chair James Comer (R-KY) announced that the mayors of Boston, Chicago, Denver, and New York City will attend a committee hearing on March 5, 2025 to discuss their cities’ sanctuary policies, which allow a jurisdiction to limit its cooperation with federal immigration enforcement officials.
  
• The AFL-CIO, the American Federation of Government Employees, and the Economic Policy Institute filed a lawsuit to block the Department of Government Efficiency (DOGE) from gaining entry to the Labor Department’s computer systems. The lawsuit, filed in the U.S. District Court for the District of Columbia argues that DOGE’s plans to attempt to access the DOL’s sensitive information systems are being carried out without legal authority and in violation of the Privacy Act and the Administrative Procedure Act.

• The Commerce Department reported that in 2024 the U.S. trade deficit in goods hit a record $1.2 trillion, as imports of goods and services grew 6.6% to a record $4.1 trillion. U.S. exports of goods and services to the world also hit a record, reaching $3.2 trillion in 2024. The import surge was driven by historic sales of U.S. services, like business and financial advising, as well as foreign spending on travel in the United States. Meanwhile, Statistics Canada reported that its trade surplus with the U.S. expanded in December and that its global trade surplus was $708 million Canadian.

• The Transportation Department’s (DOT) Office of the Inspector General (OIG) announced the release of its audit of DOT’s assessed need to hire more than 1,400 employees in its Surface Transportation Operating Administrations and Office of the Secretary of Transportation (OST) to support Bipartisan Infrastructure Law (BIL)-related surface transportation workforce needs between fiscal years 2022 and 2026. The OIG found that DOT can improve workforce planning procedures and metrics for estimating needs and capacity to deliver BIL programs and made two recommendations: (1) the development and implementation of guidance for DOT Operating Administrations and OST that addresses methods for estimating workforce needs and standards for documenting these planning procedures; and (2) the revision of departmental BIL hiring reports to include the current number of onboard BIL employees in addition to reports on BIL hiring selections.

February 4, 2025

• Regional managers with the General Services Administration received a message from the agency’s Washington, D.C. headquarters last week to begin terminating leases on all of the roughly 7,500 federal offices nationwide. The order seems to contradict President Trump’s own return-to-office mandate for federal employees but may reflect the Trump Administration’s belief that it won’t need as many offices due to its efforts to fire employees or encourage them to resign.

• A recent study from Heartland Forward found that the influx of federal funding for semiconductor manufacturing has helped remake several cities’ economies and workforce development programs, especially those cities designated as tech and innovation hubs in the CHIPS and Science Act or that invest in research into emerging technologies like generative artificial intelligence. 

February 3, 2025 

• President Trump agreed to a 30-day pause (until March 4, 2025) on his 25% tariff threats against Mexico and Canada after Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau took steps to address his concerns about border security and drug trafficking. The 10% tariffs that Trump ordered on China, however, went into effect on February 4^th. Following the imposition of the 10% tariffs on Chinese goods, China imposed targeted tariffs on U.S. imports and put several companies, including Google, on notice for possible sanctions. China said it would implement a 15% tariff on coal and liquefied natural gas products, as well as a 10% tariff on crude oil, agricultural machinery, and large-engine cars imported from the U.S.

• House Minority Leader Hakeem Jeffries (D-NY) sent a “Dear Colleague” letter detailing portions of House Democrats’ ten-part plan to counter President Trump’s moves to “upend the federal bureaucracy.” Notably, the plan includes preventing “any effort to steal taxpayer money from the American people, end Medicaid as we know it, or defund programs important to everyday Americans,” and includes a promise to introduce legislation to “prevent unlawful access to the Department of Treasury Bureau of the Fiscal Service payment system that contains highly confidential and personal information related to Social Security and Medicare recipients, taxpayers, households, nonprofits, businesses and federal contractors.” The plan also states that House Budget Committee Democrats will “battle Republicans at the anticipated legislative hearing where the GOP will unveil a scheme to cut taxes for their billionaire donors and wealthy corporations while sticking working-class Americans with the bill.”

• As the 2026 election cycle begins, Roll Call reported that the senators facing the most competitive re-election fights ended 2024 with modest war chests, including Sens. Susan Collins (R-ME) with $2.6 million, Thom Tillis (R-NC) with $2.2 million, Jon Ossoff (D-GA) with $5 million, and Jeanne Shaheen (D-NH) with $1.5 million. 

January 31, 2025

• The Trump Transportation Department announced the following slate of presidential appointees to lead the department, including: (1) Charles (Pete) Meachum as Chief of Staff; (2) Ryan McCormack as Deputy Chief of Staff; (3) Loren Smith as Deputy Assistant Secretary for Transportation Policy; (4) Gregory Cote as Principal Deputy General Counsel; and, of particular interest to MCAA, (5) Benjamin Kochman as acting Administrator of the Pipeline and Hazardous Materials Safety Administration.

January 30, 2025 

• The Food and Drug Administration (FDA) approved a new, non-opioid, non-addictive class of pain relief medication called Journavx (suzetrigine) that was developed by Vertex Pharmaceuticals. The new drug reduced pain by targeting a pain-signaling pathway involving sodium channels in the peripheral nervous system, before pain signals reach the brain. It is the result of FDA efforts to develop non-opioid pain relievers through an expedited drug development and review process.

January 29, 2025

• President Trump signed the Laken Riley Act into law mandating the detention of aliens in the U.S. illegally when they are arrested (not convicted) of theft and other crimes. The same day, the Department of Homeland Security (DHS) published a “Finding of Mass Influx of Aliens” that invokes a 1996 provision for the expansion of the 287(g) program that deputizes state and local law enforcement to aid with immigration enforcement operations. Under current regulations, DHS is authorized to request immigration enforcement assistance from a state or local government “under certain specified circumstances,” including a determination that “an actual or imminent mass influx of aliens [are] arriving off the coast or near a land border of the United States.” The issuance of the finding “serves as a call to action to jurisdictions that have expressed a desire to implement President Donald Trump’s mass deportation agenda” and will likely lead to DHS revising existing 287(g) agreements to expand state and local law enforcement’s immigration enforcement authorities.

• The Trump Administration said that it will aim for “greater transparency” in Medicare drug price negotiations, indicating plans to move forward with the second round of the program initiated by the Biden Administration. Relatedly, the Centers for Medicare and Medicaid Services (CMS) issued a press release stating that as the second cycle of the Program begins, CMS “intends to provide opportunities for stakeholders to provide specific ideas to improve the Negotiation Program, consistent with the goals of achieving greater value for beneficiaries and taxpayers and continuing to foster innovation.” 

• Senate Appropriations Committee Chair Susan Collins (R-ME) and Ranking Member Patty Murray (D-WA) announced the leadership and roster for the 12 Senate appropriations subcommittees for the 119^th Congress. These subcommittee chairs will play an important role in the ongoing negotiations over funding the government past March 14^th, when the current funding resolution passed at the end of last year expires.

• Roll Call took a look at incumbent senators who may announce retirements this cycle, including Sens. Mitch McConnell (R-KY), John Cornyn (R-TX), Jack Reed (D-RI), and Dick Durbin (D-IL).  

January 28, 2025

• The Labor Department’s Bureau of Labor Statistics (BLS) released its annual report on union membership in the United States. The report revealed that the percentage of American workers in unions dropped to a record low of 9.9% in 2024, while the total number of workers in a union declined by about 10,000 members. The decline comes as the U.S. workforce added 2.2 million jobs in 2024, with non-union positions growing at a faster pace than union jobs. The BLS data also showed that non-union workers had median weekly earnings that were 15% less than earnings for union workers ($1,138 versus $1,337). Among occupations with the highest rates of union membership in 2024, construction ranks third at 15.4% behind were education, training, and library occupations (32.3%) and protective service occupations (29.6%). The most unionized states were Hawaii and New York with union membership rates of 26.5% and 20.6%, respectively. The least unionized states were North Carolina (2.4%), South Dakota (2.7%), and South Carolina (2.8%).

• Drugmakers raised the list prices of more than 800 prescription drugs for blood pressure, cancer and other conditions by a median 4% at the start of this year—a half percent less than last year’s median price increase. The modestly reduced increase is being attributed to drugmakers’ desire to avoid criticism from President Trump while they lobby his Administration to support their priorities, such as addressing rebates given to pharmacy benefit managers and altering a federal program providing discounts to certain hospitals.

January 25, 2025

• Speaker Mike Johnson (R-LA) invited President Trump to address a joint session of Congress on Tuesday March 4^th. The speech is not technically considered a State of the Union, but presidents since Ronald Reagan have delivered similar addresses shortly after their inaugurations that have been handled with similar pomp and circumstance.

January 24, 2025

• President Trump fired inspectors general for several federal agencies, including for the Departments of Labor, Transportation, Energy, Interior, Agriculture, and Housing and Urban Development, as well as the Environmental Protection Agency and Small Business Administration. The termination of these agency watchdogs triggered bipartisan concern. Senate Judiciary Committee Chair Chuck Grassley (R-IA) and Ranking Member Dick Durbin (D-IL) sent a letter to the Trump Administration requesting more information on Trump’s decision to fire the inspectors general, noting that the White House failed to submit the statutorily-required 30-day notice necessary when an inspector general is terminated. Sen. Adam Schiff (D-CA) accused the President of breaking the law. And more than 20 House Democrats signed a letter to President Trump condemning his “late night purge” of inspectors general who are supposed to ensure that both political appointees and career civil servants at federal agencies comply with applicable laws and regulations in carrying out their duties. 

• The Associated Builders and Contractors (ABC) released new data showing that the construction industry needs to attract 439,000 new workers in 2025 to meet demand, otherwise costs will rise and put some projects out of reach. The data also said that in 2026, the construction industry will need to bring in 499,000 new workers as spending picks. ABC warns that immigrants are crucial to solving this labor challenge and advocates “a merit-based, market-based visa system,” and says it wants “to work with the Trump administration and Congress to create a visa system that allows people who want to contribute to society and work legally in the construction industry to do so.”

Around the Country 

Northeast 

• On February 4^th, nearly a year after the deadly collapse of Baltimore’s Francis Scott Key Bridge, Maryland officials unveiled their designs for its replacement, which will be taller and better protected against ship strikes. The project is advancing after Congress authorized full federal funding of the reconstruction in the spending bill enacted in December. Construction could be completed in 2028 and is expected to cost upwards of $1.7 billion. Officials said the project would advance in two phases, with the first focusing on the design work and other necessary steps before construction begins.

• On January 30^th, reports emerged indicating that President Trump is considering withdrawing federal support for New York City’s congestion pricing program—a move that would halt it. Democratic Gov. Kathy Hochul (NY) and Trump spoke recently spoke about the toll program, though no final decision was made. 

Northwest 

• On February 6^th, Gov. Bob Ferguson (D-WA) signed an executive order establishing a working group of state officials and industry stakeholders to evaluate the impact of data centers on energy use, state tax revenue, and job creation. The order follows an investigation last year into the clean-energy and economic impacts of the state’s data center industry, which found that “data centers have grown into a major consumer of electricity in some of Washington’s greenest counties, threatening the region’s ability to meet power demand while phasing out fossil fuels.”  

West

• On February 6^th, Saikat Chakrabarti, a former aide to Rep. Alexandria Ocasio-Cortez (D-NY), announced he would challenge Rep. Nancy Pelosi (D-CA) in the Democratic primary for California’s 11^th Congressional District, citing a deep disdain for his party’s establishment, which he said had created an environment of defeat, stagnation, and antipathy to change.

• On February 5^th, California Attorney General Rob Bonta (D) announced he will not run for governor of California, ending months of speculation about him eyeing the crowded 2026 contest. 

• On January 28^th, the Trump Environmental Protection Agency (EPA) announced that in response to the California wildfires, it will begin removing hazardous materials from affected properties, including lithium-ion batteries and everyday products such as paints, cleaning supplies, and automotive oils; garden products such as herbicides and pesticides, batteries, including both standard and rechargeable types; and propane tanks and other pressurized gas containers. Once the EPA has cleared these items, it will begin removing debris.

• On January 24^th, as he toured fire damage around Los Angeles, President Trump discussed the federal role in rebuilding, saying, “There can be no Golden Age without the Golden State.” Trump also emphasized the importance of readying the city for World Cup matches in 2026 and the Olympic Games in 2028. Trump’s tone in Los Angeles noticeably diverged from the language in an Executive Order (EO) issued on January 24th directing federal agencies to override California’s water policies as needed—slamming the state’s handling of the Los Angeles region’s wildfires and its water management policies. The EO also prioritizes water projects in California.

Midwest 

• On February 5^th, Ohio Treasurer Robert Sprague (R) endorsed Vivek Ramaswamy’s still-unannounced bid for governor of Ohio, after speculation that Sprague could mount his own campaign to replace term-limited incumbent Gov. Mike DeWine (R). In an accompanying video, Sprague praised Ramaswamy’s “outsider mentality” and his vision to “create a renaissance in the state of Ohio.”

• On January 28^th, Sen. Gary Peters (D-MI) announced he will not seek a third term in the U.S. Senate in 2026, creating a highly contested battleground seat in the midterm elections. Former Biden Transportation Secretary Pete Buttigieg is reportedly “taking a serious look” at running for the Michigan Senate seat following Peters’ retirement announcement.

• On January 27^th, the Trump Environmental Protection Agency (EPA) announced an agreement with Springfield, Illinois requiring the city to expand and correct its groundwater monitoring program, address potential releases of heavy metals associated with coal ash material, and analyze the structural stability of the surface impoundments before closing them to ensure the City Water, Light and Power coal-fired power plant fully complies with the agency’s coal combustion residual program.

Southeast

• On January 28^th, Trump-endorsed candidates in Florida won their Republican primaries. In the race for Florida’s 1^st Congressional District, Jimmy Patronis fended off a challenge from former state Rep. Joel Rudman and will face Democrat Gay Valimont in the April 1 special election. In the race for Florida’s 6^th Congressional District, Randy Fine fended off challenges from two other Republicans and will face Democrat Josh Weil on April 1^st.

• On January 28^th, Gainesville, Georgia Mayor Sam Couvillon (R) announced he will challenge Rep. Andrew Clyde (R-GA) in the Republican primary for Georgia’s 9^th Congressional District. 

Southwest

• On February 6^th, the Cook Political Report rated eight Republican-held seats and ten Democratic-held seats as toss-ups ahead of the 2026 midterms. Among the eight Republican seats are two Arizona seats: (1) Rep. David Schweikert (AZ-1) and (2) Rep. Juan Ciscomani (AZ-6). Among the ten Democratic seats are: (1) Rep. Gabe Vasquez (NM-2) and (2) Rep. Vicente Gonzalez (TX-34).

• On February 6^th, the Trump Administration was reportedly in negotiations with Phoenix-based private shipping-container company Willscot to lease the company’s mobile structures to temporarily house undocumented detainees. Willscot’s containers are commonly used as construction-site storage and office space.

On February 6, 2025, Daniel Bunn, President & CEO of the Tax Foundation, provided an in-depth analysis of expected federal policy changes during the second Trump administration during an MCAA webinar. A recording of the session, which was moderated by Jim Gaffney and Chuck Daniel, is now available. Don’t miss this opportunity to gain valuable insights from a leading expert in the field.

Daniel Bunn is President and CEO of the Tax Foundation. Daniel has been with the organization since 2018 and, prior to becoming President, successfully built its Center for Global Tax Policy, expanding the Tax Foundation’s reach and impact around the world. Prior to joining the Tax Foundation, Daniel worked in the United States Senate at the Joint Economic Committee as part of Senator Mike Lee’s (R-UT) Social Capital Project and on the policy staff for both Senator Lee and Senator Tim Scott (R-SC). In his time in the Senate, Daniel developed legislative initiatives on tax, trade, regulatory, and budget policy. He has a master’s degree in Economic Policy from Central European University in Budapest, Hungary, and a bachelor’s degree in Business Administration from North Greenville University in South Carolina. Daniel lives in Halethorpe, Maryland, with his wife and their three children.

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, January 27, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

MCAA continued tracking new Trump nominees and appointees to job critical to MCAA members. 

Trump Announces Key Nominees, Chairs, and Acting Chairs of Several Agencies

On January 16th, 2025, President Trump nominated former Rep. Brandon Williams (R-NY), who lost re-election to New York’s 22nd Congressional District last November, as Undersecretary for Nuclear Security and National Nuclear Security Administrator. MCAA knows Williams from his time in Congress. On January 15th, President Trump announced Keith Sonderling as his nominee for Deputy Secretary of the Department of Labor. MCAA knows Sonderling well from Trump’s first term when he served as Commissioner on the Equal Employment Opportunity Commission and as Acting Wage and Hour Administrator at the Labor Department. These nominations followed Trump’s January 12th announcements of James P. Danly to be Deputy Energy Secretary (Danly served as General Counsel, Commissioner, and Chair of FERC during Trump’s first term); David Fotouhi as Deputy Environmental Protection Agency (EPA) Administrator (Fotouhi served as EPA’s Acting General Counsel during Trump’s first term); and Katharine MacGregor as Deputy Interior Secretary (MacGregor served as Deputy Assistant Secretary for Lands and Minerals Management at the Interior Department during Trump’s first term).

Last Monday, the Trump Labor Department (DOL) posted a new leadership organizational chart designating Vince Micone as the acting head of DOL, pending the confirmation of former Rep. Lori Chavez-DeRemer (R-OR) to be Secretary of Labor. MCAA is actively supporting her nomination. Acting Secretary Micone is a career civil servant who formerly served as Deputy Assistant Secretary for Operations in DOL’s Office of Administration and Management. Keith Sonderling, Trump’s pick for Deputy Labor Secretary, will serve as Senior Advisor to the Secretary while awaiting confirmation. Also on January 20th, President Trump designated Chairs and Acting Chairs of several other federal agencies of interest to MCAA, including: (1) Marvin Kaplan as Chair of the National Labor Relations Board; (2) Mark Christie as Chair of the Federal Energy Regulatory Commission; (3) David Wright as Chair of the Nuclear Regulatory Commission; (4) Andrea Lucas as Acting Chair of the Equal Employment Opportunity Commission; and (5) Andrew Ferguson as Chair of the Federal Trade Commission.

Trump Signs Energy-Related Executive Order

Among the many executive actions President Trump took last week was an Executive Order (EO) related to energy and critical minerals. The EO: (1) declares a national emergency related to energy, allowing Trump to use the Defense Production Act to bolster energy deployment; (2) accelerates permitting and regulations to expand domestic energy production; (3) expedites the permitting and development of domestic critical minerals to reduce dependence on China; and (4) facilitates the utilization of Alaska’s oil, gas, minerals, timber, and other resources. This follows the Trump Energy Department’s (DOE) announcement that it is ending the liquefied natural gas (LNG) pause instituted during the Biden Administration. DOE will now resume consideration of pending applications to export American LNG to countries without a free trade agreement with the United States.

Congress

Speaker Johnson Taps Rep. Foxx to Lead House Rules Committee in 119^th Congress

On January 14th, House Speaker Mike Johnson (R-LA) appointed Rep. Virginia Foxx (R-NC) as chair of the influential House Rules Committee. Foxx is one of the most stridently anti-union members of the House. She previously served as chair of the House Education and Workforce Committee in the last Congress but was term-limited as chair in the 119th Congress. Speaker Johnson also announced two changes to the committee’s Republican roster: Rep. Morgan Griffith (R-VA), a member of the conservative House Freedom Caucus, will replace Rep. Thomas Massie (R-KY) on the committee, and first-term Rep. Brian Jack (R-GA) will take the spot previously held by Rep. Guy Reschenthaler (R-PA). Conservative Freedom Caucus members Reps. Chip Roy (R-TX) and Ralph Norman (R-SC) will remain on the panel.

House Education & Workforce Approves Oversight Plan 

On January 15^th, the House Education and Workforce Committee approved its oversight plan for the next two years. The Committee’s oversight priorities include: (1) Wage and Hour oversight involving “workers, employers, and other stakeholders to consider how best to modernize federal wage and hour laws”; (2) Retirement Security and Pensions oversight focused on engaging with “workers, employers, retirees, and other stakeholders to consider how best to strengthen laws governing retirement security,” reviewing the “PBGC’s recovery efforts of amounts improperly paid under the Biden-Harris administration’s Special Financial Assistance program to multiemployer plans on the basis of deceased participants” and reviewing the Employee Benefits Secretary Administration’s enforcement activity and rulemakings implementing…ERISA; (3) Healthcare oversight dedicated to “ensuring employers have the flexibility and tools to offer workers and their families affordable, employer-sponsored health care coverage that fits their individual needs,” overseeing the “implementation of laws governing mental health and substance abuse treatment” and maintaining “the protection of ERISA preemption of state insurance law”; (4) Workplace Safety and Health oversight targeting “OSHA’s efforts” on “Biden-Harris administration regulatory efforts that burden job creators while doing little to improve workplace safety”; (5) National Labor Relations Board (NLRB) oversight dedicated to ensuring the NLRB is interpreting and implementing the National Labor Relations Act in a manner that supports workers and employers”; (6) Equal Employment Opportunity oversight scrutinizing the Equal Employment Opportunity Commission (EEOC) and the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) “to ensure proper implementation and enforcement of employment nondiscrimination laws with a specific focus on the EEOC’s implementation of the 2024 final rule on the Pregnant Workers Fairness Act and of the 2024 enforcement guidance on harassment in the workplace”; and (7) Union Accountability and Transparency Oversight focused on the Labor Department’s “implementation of the Labor Management Reporting and Disclosure Act and conducting oversight on unions, as needed, to ensure they are respecting the democratic rights of their members and properly managing their members’ dues, education funds, and pension programs.”

House Education and Workforce Committee Announces Subcommittee Chairs and Ranking Members

Also on January 15^th, House Education and Workforce Committee Chair Tim Walberg (R-MI) announced the following Subcommittee Chairs for the 119^th Congress: (1) Rep. Rick Allen (R-GA) as chair of the Health, Education, Labor, and Pensions Subcommittee; (2) Rep. Ryan Mackenzie (R-PA) as chair of the Workforce Protections Subcommittee; (3) Rep. Burgess Owens (R-UT) as chair of the Higher Education and Workforce Development Subcommittee; and (4) Rep. Kevin Kiley (R-CA) as chair of the Subcommittee on Early Childhood, Elementary, and Secondary Education. Separately, House Education and Workforce Committee Democratic Ranking Member Bobby Scott (D-VA) announced the following Subcommittee Ranking Members for the 119^thCongress: (1) Rep. Mark DeSaulnier (D-CA) will serve as Ranking Member of the Health, Education, Labor, and Pensions Subcommittee; (2) Rep. Ilhan Omar (D-MN) will serve as Ranking Member of the Workforce Protections Subcommittee; (3) Rep. Suzanne Bonamici (D-OR) will serve as Ranking Member of the Early Childhood, Elementary and Secondary Education Subcommittee; and (4) Rep. Alma Adams (D-NC) will serve as Ranking Member of the Higher Education and Workforce Development. 

House Transportation and Infrastructure Announces Subcommittee Chairs and Ranking Members 

Last Tuesday, House Transportation and Infrastructure Committee Chair Sam Graves (R-MO) announced the new Subcommittee Chairs, Ranking Members, and Subcommittee members for the 119^th Congress. The new Republican Subcommittee Chairs are: (1) Rep. Scott Perry (R-PA) as Chair of the Subcommittee on Economic Development, Public Buildings, and Emergency Management; (2) Rep. Daniel Webster (R-FL) as Chair of the Subcommittee on Railroads, Pipelines, and Hazardous Materials; (3) Rep. Mike Collins as Chair of the Subcommittee on Water Resources and the Environment; (4) Rep. David Rouzer (R-NC) as Chair of the Subcommittee on Highways and Transit; (5) Rep. Troy Nehls (R-TX) as Chair of the Subcommittee on Aviation; and (6) Rep. Mike Ezell (R-MS) as Chair of the Subcommittee on Coast Guard and Maritime Transportation. The new Democratic Subcommittee Ranking Members are: (1) Rep. Greg Stanton (D-AZ) as Ranking Member of the Subcommittee on Economic Development, Public Buildings, and Emergency Management; (2) Rep. Dina Titus (D-NV) as Ranking Member of the Subcommittee on Railroads, Pipelines, and Hazardous Materials; (3) Rep. Frederica Wilson (D-FL) as Ranking Member of the Subcommittee on Water Resources and the Environment; (4) Delegate Eleanor Holmes Norton (D-DC) as Ranking Member of the Subcommittee on Highways and Transit; (5) Rep. Steve Cohen (D-TN) as Ranking Member of the Subcommittee on Aviation; and (6) Rep. Salud Carbajal (D-CA) as Ranking Member of the Subcommittee on Coast Guard and Maritime Transportation.

Biden Administration

ERISA Industry Committee Files Lawsuit Against Mental Health Parity Final Rule

On January 17th, the ERISA Industry Committee (ERIC) filed a lawsuit against the U.S. Departments of Labor, Treasury, and Health and Human Services, seeking to invalidate the Biden Administration’s September 2024 final rule implementing the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). This rule poses many practical administrative concerns for MCAA plans based on assessment we have received from the National Coordinating Committee on Multiemployer Plans (NCCMP) and we have been raising our concerns about this rule with the new Administration. The lawsuit alleges that the final rule is unlawful because it exceeds the departments’ authority under the MHPAEA and the Consolidated Appropriations Act of 2021, violates the due process clause of the Fifth Amendment, is “arbitrary and capricious,” and violates the Administrative Procedure Act. The lawsuit also claims that the January 1, 2025, effective date for many of the final rule’s provisions is arbitrary and capricious because it did not provide enough time for ERISA-governed plans to comply with the new and “vaguely worded” regulations. The lawsuit was filed the same day the Biden Labor Department, Health and Human Services Department, and Treasury Department issued their 2024 Report to Congress on enforcement and implementation of the MHPAEA, along with an associated fact sheet. The report is notable because it includes as an appendix the entirety of a settlement agreement entered into by a Boilermakers National Plan to settle claims by the federal government that it failed to meet its Mental Health Parity Obligations.   

MCAA Issues and Interests 

Safety and Health 

MCAA Joins with CISC to Submit Comments on OSHA Heat Injury and Illness Proposed Rule 

On January 14th, the MCAA and other members of the Construction Industry Safety Coalition (CISC) submitted joint comments to the Occupational Safety and Health Administration (OSHA) on its proposed rule regarding Heat Injury and Illness in Outdoor and Indoor Work Settings. In the letter, the MCAA and other CISC members urged OSHA to develop a construction-specific heat standard rather than applying the one-size-fits-all approach outlined in the proposed rule. We also detailed the job tasks, work activities, and environmental conditions that construction employees face, which justify the need for a specialized standard, similar to what OSHA has implemented for other health and safety issues. The letter also identified major problems in the proposed rule, including: (1) the unworkable heat triggers that require revision; (2) the problematic prescriptive requirements tied to those triggers; (3) the need for flexible acclimatization procedures that allow employers to create training and protocols tailored to unique climatic conditions in different regions; and (4) the importance of straightforward training requirements that emphasize “water, rest, and shade.”

OSHA Terminates Rulemaking Extending COVID-19 ETS to Construction Workers at Healthcare Facilities

On January 15th, OSHA terminated its June 21, 2021 interim final rule (IFR) implementing an emergency temporary standard (ETS) to protect healthcare and “healthcare support” workers from occupational exposure to COVID-19 in settings where COVID-19 cases were reasonably expected (e.g.,hospitals). The MCAA had been educating OSHA, the Small Business Administration (SBA), and other federal agencies about concerns we had with the IFR. The MCAA also participated in several SBA Advisory Committee meetings to discuss these concerns and their impact on our members—particularly regarding the IFR’s inclusion of healthcare facility maintenance staff (including HVAC contractors) in its definition of “healthcare support” workers. 

Project Labor Agreements (PLAs)

U.S. Federal Court of Claims Invalidates Bids Based on PLAs Pursuant to Biden PLA Executive Order and Related FAR Council Rules

On January 19th, the U.S. Federal Court of Claims invalidated project labor agreements (PLAs) on several federal construction contract bids, ruling that PLAs are set-aside programs requiring authorization by an act of Congress. The Associated General Contractors (AGC) praised the decision and announced plans to continue “conversations with the incoming Trump Administration about the need to officially revoke President Biden’s illegal project labor agreement Executive Order and FAR Council Rules” in light of the ruling. On January 20th, the Associated Builders and Contractors (ABC) issued a press release expressing their enthusiasm for the ruling and urged its members to “continue to file protests against individual federal agency PLA mandates on a case-by-case basis and expect similar outcomes.” ABC argued that “[t]his is the best solution to defeat the Biden rule on federal contracts until a court issues an injunction against the rule or the Trump Administration rescinds it via executive action.” The group also reported that its members secured 54% of the $205.56 billion in federal construction contracts worth $35 million or more during fiscal years 2009–2023.

MCAA Urges President Trump to Maintain MCAA-Supported Executive Order on PLAs

On January 13th, the MCAA joined other members of the Construction Employers of America (CEA) in a letter to President Trump urging him to reject the Associated Builders and Contractors’ (ABC) request to rescind President Biden’s MCAA-supported executive order (EO) creating a presumption that project labor agreements (PLAs) will be used for large-scale federal construction projects valued at $35 million or more. 

In the letter, the CEA emphasized that “nothing in [President Biden’s EO] or the Federal Acquisition Regulatory Council rules implementing it prevents any contractor from submitting a bid on a large-scale federal construction project.” The letter also highlights data confirming “the productivity advantages union craftworkers have over their open shop peers,” including “lower staffing levels.”

Following our advocacy push on PLAs last Monday, MCAA was relieved to see that President Trump’s Executive Order (EO) titled “Initial Rescissions of Harmful Executive Orders and Actions,” rescinding dozens of Biden-era EOs left President Biden’s EO on PLAs intact. But given the Court of Claims decision and similar bid protests MCAA expects on federal construction contracts with a PLA, this is an ongoing fight and the outcome remains uncertain.

Registered Apprenticeship

DOL White Paper Confirms Value of Jointly Trusteed Apprenticeship Programs

Last Monday, shortly before the end of President Biden’s term, the Biden Labor Department released a white paper it sponsored affirming the benefit of jointly trusteed (union) registered apprenticeship programs. Among the findings are: (1) the construction industry trained more apprentices than any other industry from 2019 through 2022 and joint labor-management (union) programs trained 70 percent of all construction apprentices; (2) joint-labor management construction programs had a 56% completion rate compared to 46% in employer-only construction programs; (3) joint labor-management programs graduated 87% of women, 80% of military veterans, and 75% of Black apprentices in construction; (4) in construction, workers from joint labor-management programs earned exit wages of $38 per hour, while those from employer-only programs earned $25 per hour; (5) exit wages from joint construction programs were between $36 and $39 per hour for White, Black, Hispanic, male, female, and veteran construction workers; (6) the states with the highest apprenticeship exit wages for union journey workers were Massachusetts ($45 per hour), Illinois ($44 per hour), and Hawaii ($40 per hour); and (7) prevailing wage laws statistically increased construction apprenticeship wages by $3 per hour. 

Pension Reform

Most of the activity of the last two weeks on pensions occurred on the regulatory front.

DOL EBSA Updates Enforcement Policy on Missing Participants 

On January 14^th, the Biden Department of Labor’s Employee Benefits Security Administration (EBSA) announced its updated enforcement policy on missing participants to provide retirement plan fiduciaries with an option to help manage small benefit amounts owed to individuals who cannot be located. Under the policy, EBSA will not act under the fiduciary provisions of ERISA against fiduciaries who transfer entire benefit payments owed to missing participants of $1,000 or less to state unclaimed property funds, if certain conditions are met. To qualify for relief under this policy, fiduciaries must meet the conditions set forth in the policy, including: (1) meeting conditions designed to protect the interest of the missing individuals; (2) adopting best practices for locating missing participants and beneficiaries; and (3) selecting state unclaimed property funds that meet the minimum standards outlined in the policy.

DOL EBSA Announces Updates to Voluntary Fiduciary Correction Program 

Also on January 14^th, the Biden Department of Labor’s Employee Benefits Security Administration (EBSA) announced updates to its Voluntary Fiduciary Correction Program (VFCP), providing employers and other plan officials with more efficient ways to voluntarily correct compliance issues in retirement, health and other employee benefit plans. The most significant change is a self-correction tool that employers and other plan officials can use to remedy delays in sending participant contributions, such as employee payroll deductions, and participant loan repayments to retirement plans. Employers and other plan officials can also fix mistakes related to participant loans from retirement plans, as provided by the SECURE 2.0 Act. In addition, EBSA’s 2025 update to the VFCP: (1) expands the scope of transactions eligible for correction; (2) clarifies transactions that are already eligible for correction; (3) simplifies administrative and procedural requirements; and (4) amends the VFCP class exemption so plan officials can avoid the imposition of excise taxes.

Federal Contracting 

Trump Rescinds 1965 Executive Order Imposing Affirmative Action for Federal Contractors

Last Tuesday, President Trump signed an Executive Order (EO) entitled Ending Illegal Discrimination and Restoring Merit-Based Opportunity that rescinds President Lyndon Johnson’s 1965 EO 11246—which authorized the affirmative action obligations federal contractors have complied with for almost 60 years. The White House released a fact sheet on the EO available here. Under Trump’s EO “[f]or 90 days from the date of this order, federal contractors may continue to comply with the regulatory scheme in effect on January 20, 2025.” The EO bars the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) from holding federal contractors and subcontractors responsible for taking “affirmative action” based on race, color, sex, sexual preference, religion, or national origin. Going forward, federal contractors will be required to certify that they “do not operate any programs promoting Diversity, Equity, and Inclusion (DEI) that violate any applicable federal anti-discrimination laws” and “to agree that [their] compliance in all respects with all applicable federal anti-discrimination laws is material to” whether they are in compliance with the Federal False Claims Act. 

President Trump’s EO further directs “all executive departments and agencies to terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements…and to combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.” To this end, the U.S. Attorney General must, within 120 days of the order, “submit a report to the Assistant to the President for Domestic Policy containing recommendations for enforcing federal civil rights laws and taking other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.” The report is to detail “sectors of concern” as far as improper DEI practices within each federal agency’s jurisdiction, examples of the most “egregious and discriminatory DEI practitioners” in each such sector and provide “a plan of specific steps or measures to deter DEI programs or principles (whether specifically denominated ‘DEI’ or otherwise)” that constitute illegal discrimination or preferences in the private sector. Each federal agency shall identify up to “nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more, state and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars,” and well as litigation and sub regulatory guidance that would promote the EO’s purpose of ending affirmative action and DEI. The EO “does not apply to lawful federal or private-sector employment and contracting preferences for veterans of the U.S. armed forces.”

Following up on this executive order, last Wednesday, the Trump Labor Department’s Employment and Training Administration (ETA) issued Training and Employment Notice (TEN) 21-24 directing state workforce agencies, state apprenticeship agencies, and other stakeholders on changes the ETA is making to federal financial assistance awards to prohibit diversity, equity, and inclusion (DEI) activities prohibited by President Trump’s order. Per the TEN, “all recipients of federal financial assistance awards are directed to cease all activities related to “diversity, equity, and inclusion” (DEI) or ‘diversity, equity, inclusion, and accessibility’ (DEIA) under their federal awards, consistent with the requirements of the EOs.” The TEN goes on to state that ETA “like all federal agencies, will provide further guidance on specific programs and activities within those programs.”

Decarbonization

Since the November elections, MCAA and its allies urged the Biden Administration to obligate as much money as possible for clean energy projects authorized under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. We were pleased to see such efforts throughout the final days of the Biden Administration.

IRS Announces $6B in Tax Credits under Section 48C Qualifying Energy Project Tax Credit 

On January 11^th, the Biden Treasury Department and Internal Revenue Service (IRS) announced $6 billion in tax credits for the second round of the Inflation Reduction Act’sSection 48C Qualifying Energy Project Tax Credit for projects in 30 states. The 48C program is a competitive funding program and companies have the opportunity to apply for infrastructure project funding in the form of an investment tax credit for projects that: (1) expand U.S. clean energy manufacturing and recycling capacity ($3.8 billion in available tax credits); (2) expand U.S. critical minerals processing and refining capacity ($1.5 billion in available tax credits); and (3) drive process efficiency and reduce greenhouse gas emissions at U.S. industrial facilities ($700 million in available tax credits). 

DOE Opens Funding Opportunity for Regional Partnerships for Geothermal Data Projects 

On January 13^th, the Biden Energy Department (DOE) announced that it has opened an initial funding opportunity for six awards totaling $19 million for Regional Partnerships for Geothermal Data to support partnerships to identify regional data gaps and prioritize, plan, and execute geothermal data collection and dissemination activities. The aim of the funding opportunity is to incentivize and stimulate follow-up geothermal exploration and development activities. The funding opportunity is available here. 

FHWA Releases $635 Million for Natural Gas and EV Refueling Infrastructure

The Biden Transportation Department’s Federal Highway Administration (FHWA) announced $635 million in grants through the Bipartisan Infrastructure Law for 49 projects to construct more than 11,500 EV charging ports and hydrogen and natural gas fueling infrastructure across 27 States, four Tribes, and the District of Columbia. Of the total, $368 million will be allocated for 42 “community projects” that expand EV charging infrastructure within communities across the country and $268 million will go towards seven “corridor fast-charging projects” that build out the national charging and alternative-fueling network along designated Alternative Fuel Corridors. A full list of grant recipients under this announcement is available here.

Energy Department Releases $960 Million for Energy Grid Modernization

The Biden Energy Department announced updates on finalized projects awarded from its Grid Deployment Office for the month of January. The announcement includes: (1) a $360 million contract with Southern Spirit Transmission to construct a new 320-mile, 525 kV High-Voltage Direct-Current (HVDC) line to create substantial new transmission capacity between the Electric Reliability Council of Texas (ERCOT) grid and electric grids in the Southeastern United States; and (2) $600 million in funding for the California Harnessing Advanced Reliable Grid Enhancing Technologies for Transmission (CHARGE 2T) project to reconductor more than 100 miles of transmission lines with advanced conductor technologies and deploy dynamic line ratings (DLR) to quickly and significantly increase the state’s system capacity to integrate more renewable energy onto the grid, and supports process improvements and investments in the workforce.

DOE Announces Funding to Develop CO₂ Capture, Removal, and Conversion Test Centers

On January 14^th, the Biden Energy Department (DOE) announced $101 million in funding, subject to appropriations, for five projects to support the development of carbon dioxide capture, removal, and conversion test centers. The recipients receiving funding under this announcement include: (1) Holcim US, which plans to establish a domestic Cement Carbon Management Innovation Center at its Hagerstown Cement Facility in Maryland; and (2) Southern Company Services, Inc. of Birmingham, Alabama, which intends to maintain and operate the National Carbon Capture Center, a comprehensive test facility capable of evaluating carbon dioxide capture, removal, and conversion technologies under electric generating plant operating conditions. The recipients also include three universities in Illinois, North Dakota, and Wyoming, which plan to design and enhance carbon capture, removal and conversion test centers for power plants, natural gas and industrial facilities, and cement industry operations.

Interior Department Makes $1.5 Billion Available to Clean Up Orphaned Oil and Gas Wells

On January 15^th, The Biden Interior Department released final guidance on how states can apply for $1.5 billion (up to $40 million each) in Regulatory Improvement Grant funding available under the Bipartisan Infrastructure Law to clean up polluting and unsafe orphaned oil and gas wells across the country. States are eligible for two types of Regulatory Improvement Grants: (1) Plugging Standard Grants, which are intended to incentivize states to implement standards and procedures designed to ensure that wells located in the state are plugged in an effective manner that protects groundwater and other natural resources, public health and safety, and the environment; and (2) Program Improvement Grants, which are intended to incentivize states to implement other improvements to state programs designed to reduce future orphaned well burdens, such as financial assurance reform, alternative funding mechanisms for orphaned well programs, and reforms to programs relating to well transfer or temporary abandonment. Under the guidance, states are eligible to receive a Plugging Standards Regulatory Improvement Grant of $20 million, and a Program Improvement Regulatory Improvement Grant of $20 million, for a total of $40 million per state.

Energy Department Releases $23 Billion to Retool Energy Infrastructure 

On January 16^th, the Biden Energy Department’s Loan Office announced $22.92 billion in conditional financing to several energy utilities—including DTE Energy Company in Michigan, Consumers Energy Company in Michigan, and PacificCorp, a utility that serves six western states—for projects that retool or replace energy infrastructure that has stopped operating or that enables reductions in emissions blamed for global warming.

Interior Department Provides $223 Million for Water Infrastructure Projects

On January 14^th, the Biden Interior Department (DOI) announced $223 million from President Biden’s Investing in America Agenda for 18 projects in Arizona, California, Hawaii, Idaho, New Mexico, Oklahoma, Texas, and Washington State for water recycling and desalination projects aimed at addressing the impacts of drought. Projects under this announcement include water infrastructure projects such as water storage, conservation and conveyance, nature-based solutions, dam safety, water purification and reuse, and desalination. The full list of projects is available here.

Energy Department Released $38 Million to Support Hydrogen Hub Development

On January 17^th, the Biden Energy Department (DOE) announced $38.8 million to support planning, design, and community and labor engagement activities for two Hydrogen Hubs, including: (1) $18.8 million to the Mid-Atlantic Hydrogen Hub (Pennsylvania, Delaware, and New Jersey) for the development of hydrogen production facilities used in industrial applications (e.g., power generation and replacement fuel for process heaters) and heavy-duty transportation, including for refueling stations for trash trucks, street sweepers, cargo handling equipment, and fuel cell electric buses; and (2) $20 million for the Heartland Hydrogen Hub (Colorado, Minnesota, Montana, North Dakota, South Dakota, and Wisconsin) to leverage new and existing energy resources and infrastructure to produce commercial-scale quantities of clean hydrogen for low-carbon nitrogen fertilizer.

Other Interesting Things Since Our Last Report 

January 23, 2025

• During his virtual appearance before the World Economic Forum in Davos, in responding to a question about LNG markets, President Trump said he will expedite the construction of power plants for artificial intelligence (AI) through an emergency declaration. He added that, “we’re going to build electric generating facilities. I’m going to get the approval under emergency declaration. I can get the approvals done myself without having to go through years of waiting.” Trump added that the generating facilities can use whatever fuel they want, making clear that his administration would not hold the AI industry to any climate targets. He even suggested the facilities use coal for emergency backup power. During the speech, President Trump also promised countries and businesses lower taxes if they bring manufacturing to the U.S. and threatened to impose tariffs if they don’t. World Trade Organization Director-General Ngozi Okonjo-Iweala said that any tit-for-tat trade wars prompted by Trump’s tariff threats would have catastrophic consequences for global growth and urged states to refrain from retaliation. President Trump also foreshadowed a fight with the Federal Reserve over its independence, saying he will “demand that interest rates drop immediately.” 

• The U.S. Supreme Court issued an emergency stay temporarily halting a lower court injunction blocking implementation of the Corporate Transparency Act (CTA) and its beneficial ownership reporting requirements that compel millions of business entities to disclose personal information about the individuals who directly and indirectly own or control them. The case will now go back to the U.S. Fifth Circuit Court of Appeals for a trial on the merits of the legality of the CTA. While that case is pending, the Supreme Court will allow FinCEN to collect beneficial ownership disclosure information that it was supposed to begin getting on January 1, 2025 but for the injunction. Following the Supreme Court’s decision, FinCEN posted a notice on its website stating that “reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” 

January 22, 2025

• Discussions on tax provisions—including the State and Local Tax (SALT) deduction limit—picked up steam as Rep. Mike Lawler (R-NY) met with President Trump on revising the SALT deduction and other tax provisions that GOP moderates want addressed as a condition of allowing a reconciliation tax package to move forward. Republican House members from New York, New Jersey, California, and other “blue states” have been clear they want more than a $10,000 increase. They are also discussing refinements to the SALT deduction, such as the eligibility of second properties, a marriage penalty, and some income restrictions to prevent “billionaires” from using any increased deduction.

January 21, 2025

• At the organizational meeting of the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, Committee, Chair Bill Cassidy (R-LA), and Senate HELP Committee Ranking Member Bernie Sanders (I-VT) expressed a bipartisan commitment to prioritize legislation on the cost of prescription drugs and pharmacy benefit manager (PBM) reform in the 119^thCongress. Cassidy noted that while the PBM Reform Act and legislation to bring lower-cost generic drugs to market more quickly did not pass last Congress, committee leadership will again focus on advancing these bills. 

January 20, 2025 

• President Trump signed an Executive Order (EO) entitled, “Initial Rescissions of Harmful Executive Orders and Actions” that rescinds dozens of Biden-era EOs, including: (1) EO 13999, “Protecting Worker Health and Safety (January 21, 2021); (2) EO 14052, “Implementation of the Infrastructure Investment and Jobs Act (IIJA)” (November 15, 2021); (3) EO 14055, “No displacement of Qualified Workers Under Service Contracts” (November 18, 2021); (4) EO 14082, “Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022 (IRA)” (September 12, 2021); and (5) Executive Order (EO) 14087 “Lowering Prescription Drug Costs for Americans” (October 14, 2022) that authorized the Medicare High Value Drug List Model that allows Medicare Part D prescription drug plan sponsors to offer “approximately 150 high-value generic drugs with a maximum copayment of $2 for a month’s supply,” thus lowering prescription drug costs for many Medicare beneficiaries. On January 21^st, the Trump Office of Management and Budget issued guidance partially walking back President Trump’s halt to implementation of the IRA and IIJA clarifying that the freeze on funding from these laws “only applies” to the subset of IRA and IIJA funds related to climate change mitigation and incentives for electric vehicle charging and not other projects funded through the laws. The “clarification” came after bipartisan complaints from Congress that Trump’s actions on Monday would kill lots of infrastructure jobs.

• President Trump said that he expects to put 25% tariffs on Canada and Mexico starting on February 1^st but declined to flesh out his plans for tariffs on Chinese imports. In response, Canadian Prime Minister Justin Trudeau warned that if Trump imposed tariffs on Canadian goods, Canada would impose retaliatory tariffs.

January 17, 2025

• MCAA members monitoring issues around noncompete agreements should know that the Biden Federal Trade Commission (FTC) finalized a consent order requiring building services contractor Guardian Service Industries, Inc. (Guardian) to stop enforcing a no-hire agreement prohibited building owners and competing building service contractors from hiring Guardian’s maintenance technicians, custodians, and concierges. The final consent order requires Guardian to cease and desist from, directly or indirectly, enforcing a no-hire agreement or communicating to any prospective or current customer that a Guardian employee is subject to a no-hire agreement. It is unclear whether the FTC will continue its aggressive enforcement against non-compete agreements under newly appointed Trump FTC Chair Andrew Ferguson.

January 16, 2025

• The Biden Internal Revenue Service (IRS) issued guidance (Rev. Rul. 2025-4) to D.C. and states that have mandatory paid family and medical leave programs, and for employees working in and employers operating in those states, on the income and employment tax treatment of contributions and benefits paid under these programs. The revenue ruling explains multiple tax treatment scenarios under these programs and the related reporting requirements, and also provides transition relief to D.C., states, and employers from certain withholding, payment, and information reporting requirements for state paid medical leave benefits paid during calendar year 2025. It is unclear if the Trump IRS will rescind or revise this guidance.

January 15, 2025

• The Biden Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) released a proposed rule establishing new standards for carbon dioxide gas pipelines. The proposal addresses: (1) design, installation, operation, maintenance, and reporting requirements for carbon dioxide gas pipelines; (2) requirements for pipeline operators when converting existing pipelines to transport carbon dioxide; (3) requirements for all carbon dioxide pipeline operators to provide training to emergency responders and ensure carbon dioxide detection and other equipment is available for local first responders to use and efficiently respond during an emergency; (4) implementation of more robust requirements for communicating with the public during an emergency; and (5) a requirement of more detailed vapor dispersion analyses to better protect the public and the environment in the case of a pipeline failure. An advanced copy of the proposed rule is available here and it will be open for comment for 60 days following publication in the Federal Register.

• In a unanimous 9-0 decision, the U.S. Supreme Court ruled in EMD Sales v. Carrera that the preponderance-of-the-evidence standard applies when an employer seeks to establish under the Fair Labor Standards Act (FLSA) that an employee is exempt from the minimum wage and overtime requirements of the FLSA. The decision reverses a Fourth Circuit Court of Appeals ruling that the FLSA requires employers to use a more onerous clear and convincing evidence standard to prevail on claims that an employee is exempt from FLSA minimum wage and overtime requirements.

January 14, 2025 

• The Biden Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a safety advisory notice to request that consumers, retailers, shippers, and DOT-regulated entities ensure their cylinders containing hazardous gases are in compliance with the hazardous materials regulations. PHMSA is issuing this notice after finding several instances of empty cylinders being sold by major retailers to consumers, shippers, and heating, ventilation, and air conditioning (HVAC) personnel and service technicians that were not manufactured to a DOT specification or UN standard and lack certification markings. The safety advisory notice is available here.

• The Biden Department of Homeland Security (DHS) announced the addition of 37 entities based in China to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List that requires U.S. Customs to bar their products from entry into the U.S. Tuesday’s announcement is the largest single expansion of the list to date. Eleven of the designated Chinese entities are in the energy sector, including companies engaged in: (1) the manufacturing of solar energy (e.g., silicon rods, wafers, and solar cell modules) and “green energy” technologies (e.g., energy power stations, batteries, and modules); (2) the development of coal, wind, photovoltaic, and oil and gas resources; and (3) critical minerals production and/or refining.

• The Biden Energy Department (DOE) announced that it has released the 179D Portal, a tool to estimate potential federal tax deductions for installing eligible energy-efficient technologies in commercial buildings. The Inflation Reduction Act revised the 179D deduction to enable two different pathways for compliance: (1) the traditional pathway based on modeled savings beyond a reference building code; and (2) an alternative pathway for buildings to reduce their energy use based on utility data from previous levels. The 179D Portal provides tools for both the traditional compliance pathway and for the alternative compliance pathway for qualifying upgrades beginning in tax year 2023.

• The deadline for REAL ID enforcement (which has been delayed multiple times) is set to begin on May 7^th. Once May 7^th arrives, people will need a REAL ID-compliant ID to board a domestic flight and if they are going into certain federal facilities or entering a nuclear power plant. Under a Transportation Security Administration (TSA) proposed rule released in September 2024, federal agencies may have leeway to phase in enforcement. This is being justified by the slow adoption of REAL IDs as only 56% of driver’s license and state IDs were compliant as of January 2024. TSA appears determined not to allow another deadline delay out of concern it would reduce the “urgency to obtain a REAL ID” which means Americans could be rushing to their DMVs to obtain Real ID compliant identification ahead of May.

January 13, 2025

• The Biden Administration concluded that China uses unfair policies and practices to dominate the global maritime, logistics, and shipbuilding sectors. Investigators with the Office of the U.S. Trade Representative determined that China targeted the shipbuilding and maritime industry for dominance, using financial support, barriers against foreign firms, forced technology transfers and intellectual property theft and procurement policies to give its shipbuilding and maritime industry an advantage.

• The Biden Centers for Medicare & Medicaid Services (CMS) announced that it has released the Calendar Year (CY) 2026 Advance Notice for the Medicare Advantage (MA) and the Medicare Part D Prescription Drug Programs that would update payment policies for these programs. CMS published a fact sheet on the Advanced Notice andis concurrently releasing the Draft CY 2026 Part D Redesign Program Instructions that continue to implement the redesign of the Medicare Part D program. The Inflation Reduction Act redesigned Medicare Part D to reduce prescription drug costs, including the first-ever cap on annual out-of-pocket prescription drug costs for all people with Medicare prescription drug coverage that went into effect on January 1, 2025.

Around the Country

Northeast 

• On January 16^th, Rep. Nick LaLota (R-NY) led a bloc of five House Republicans in announcing plans to vote together and oppose any broader Trump tax package unless it contains significant changes to the current State and Local Tax (SALT) cap provisions beyond just an increase of the cap from $10,000 to $20,000. The other members of the bloc are Reps. Andrew Garbarino (R-NY), Mike Lawler (R-NY), and Tom Kean Jr. (R-NJ), and Young Kim (R-CA) Given the small GOP majority, this bloc could sink any party-line tax bill seeking to enact the Trump tax cuts. 

West

• On January 17^th, the Biden Energy Department (DOE) announced that it closed a $15 billion loan guarantee to Pacific Gas & Electric Company (PG&E), a combined natural gas and electric utility serving northern and central California, for the company’s Project Polaris to support a portfolio of projects to expand hydropower generation and battery storage, upgrade transmission capacity through reconductoring (i.e., replacing cables or wires on an electric circuit) and grid enhancing technologies, and enable virtual power plants throughout PG&E’s service area. The Biden DOE noted that PG&E will partner with the International Brotherhood of Electrical Workers (IBEW) Local 1245 to train and employ members of underserved groups interested in operational roles through its existing Power Pathway.

• On January 13^th, the Biden General Services Administration announced a $183 million Energy Savings Performance Contract with Ameresco for energy retrofits, building electrification, and purchase of American-made low-embodied carbon materials at the Denver, CO Federal Center. The contract includes a centralized geothermal heat pump system and a solar photovoltaic system to supply year-round heating, cooling and electrical power for the 623-acre complex and allow for self-generated solar photovoltaic to electrify approximately half of the campus.

Northwest 

• On January 15^th, the Biden Transportation Department’s Federal Transit Administration (FTA) announced $79.7 million in Bipartisan Infrastructure Law funding through the Capital Investment Grants (CIG) program to King County Metro to support a 17-mile bus rapid transit line between the cities of Renton, Auburn, and Kent, Washington State, including for 41 new stations with shelters and lighting and two miles of exclusive bus-only lanes.

Midwest

• On January 17^th, Ohio Gov. Mike DeWine (R) appointed Lt. Gov. Jon Husted (R) to the Ohio U.S. Senate seat being vacated by Vice President J.D. Vance (R-OH). 

• On January 16^th, defense contractor Andriel Industries announced that it will spend $1 billion to build its 5 million square foot Arsenal-1 defense manufacturing facility near Rickenbacker International Airport in Columbus, Ohio. The company plans for the production of its autonomous vehicles, drones, and missiles to go online by July 2026. The project is expected to bring more than 4,000 direct jobs to Ohio and is the largest single job-creation project in Ohio history.

Southeast

• On January 22^nd, Rep. Nancy Mace (R-SC) said that she is “seriously considering” a gubernatorial run in South Carolina in 2026 and will make a final decision in the coming weeks. 

• On January 16^th, Florida Gov. Ron DeSantis (R) picked the state’s Republican attorney general, Ashley Moody, to replace Secretary of State Marco Rubio (R-FL) in the Senate.

• On January 16^th, a new poll found Georgia Gov. Brian Kemp (R) leading incumbent Democratic Sen. Jon Ossoff (D) in a hypothetical U.S. Senate race 46%-40% with 14% undecided.

• On January 15^th, Florida Sen. Rick Scott (R) was elected chair of the Senate GOP Steering Committee, which serves as a Senate version of the House Freedom Caucus. The committee hosts weekly lunches and includes many of the most conservative Republicans in the Senate, though there is no formal roster.

• On January 14^th, the Biden General Services Administration (GSA) announced the award of a $210 million Energy Savings Performance Contract to CEG Solutions, LLC to implement energy and water upgrades at the following GSA facilities in the National Capital Region: (1) the Markey National Courts Building; (2) the Dolley Madison House; (3) the Cosmos Club Tayloe House; (4) the National Building Museum; (5) the Sidney Yates Federal Building; (6) the Lyndon B. Johnson Federal Building; (7) the Mary E. Switzer Federal Building; and (8) the U.S. Tax Court Building. The upgrades include deep energy retrofits through energy conservation measures, building electrification and the use of American-made low-embodied carbon materials. Other energy conservation measures to be implemented include upgrades to building envelopes, chillers, lighting and controls, building automation systems, domestic water systems, and replacement of transformers.

• On January 13^th, Sen. Jim Justice (R-WV) was officially sworn in, replacing Sen. Joe Manchin (I-WV) in the U.S. Senate.

Southwest

• On January 22^nd, Rep. Andy Biggs (R-AZ) filed a statement of interest to run for governor of Arizona in 2026, setting up a potential primary battle with fellow Republican and Trump-backed candidate Karrin Taylor Robson who lost in the 2022 primary to Kari Lake. 

• On January 21^st, the Trump Administration announced that Oracle, OpenAI, and SoftBank have committed $500 billion as part of a private investment to build out artificial intelligence (AI) infrastructure in the U.S. The joint venture, called Stargate, will see each company initially commit $100 billion and will kick off with the construction of a data center in Texas.

On February 6, 2025, at 2:00 p.m. EST, Daniel Bunn, President & CEO of the Tax Foundation, will provide an in-depth analysis of expected federal policy changes during the second Trump administration. The session will be moderated by Jim Gaffney and Chuck Daniel.

Daniel Bunn is President and CEO of the Tax Foundation. Daniel has been with the organization since 2018 and, prior to becoming President, successfully built its Center for Global Tax Policy, expanding the Tax Foundation’s reach and impact around the world. Prior to joining the Tax Foundation, Daniel worked in the United States Senate at the Joint Economic Committee as part of Senator Mike Lee’s (R-UT) Social Capital Project and on the policy staff for both Senator Lee and Senator Tim Scott (R-SC). In his time in the Senate, Daniel developed legislative initiatives on tax, trade, regulatory, and budget policy. He has a master’s degree in Economic Policy from Central European University in Budapest, Hungary, and a bachelor’s degree in Business Administration from North Greenville University in South Carolina. Daniel lives in Halethorpe, Maryland, with his wife and their three children.

Don’t miss this opportunity to gain valuable insights from a leading expert in the field.