MCAA Government Affairs Update for February 24, 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, 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.