MCAA Government Affairs Update for March 10, 2025: The Latest Developments Impacting Our Industry

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.