MCAA Government Affairs Update for June 30, 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, June 30, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information, which was prepared on Friday, June 27, 2025:

MCAA Issues and Interests 

Budget Reconciliation   

Fight Over Inflation Reduction Tax Credits Likely to Continue Until the End of the Amendment Process on the Senate Reconciliation Bill

As key provisions in the Senate reconciliation bill providing offsets to the cost of the bill been stricken by the Parliamentarian’s “Byrd Rule” review, the House Freedom Caucus has ratcheted up its demand that the Senate recede to the House-passed language on clean energy tax credits to provide additional savings. Last Thursday night in his meeting with the President on the reconciliation bill, House Speaker Johnson echoed this demand and continues pressing it in negotiations with Senate GOP Leader Thune. The debate over energy tax credits that we are focused on will probably not be finally resolved before the Senate begins voting because Leader Thune does not want to risk alienating support in his causes to pass the vote to proceed to the bill. He is playing his card tight and likely awaiting indications of the President’s views on the Senate’s more generous tax credits for nuclear, geothermal and other types clean energy, versus the House-passed language ending all the Biden-era clean energy credits quickly. This debate will have to come to a head during Senate vote-a-rama on amendments to its reconciliation bill, which usually takes an entire day or longer because this is the last chance for the Senate to maximize the prospect that any bill it passes will get enough support from republicans in the closely divided house to allow it to be passed without amendment. everyone anticipates that the vote-a-rama will end with a “wrap around” amendment that will seek to resolve outstanding issues between House and Senate Republicans, including the fate of clean energy tax credits.  Lobbying on the content of this “wrap around” amendment will be non-stop throughout consideration of the Senate bill.

Intense Negotiations on the Pass-Through Deduction

Heading into the weekend, MCAA was engaged in intense negotiations between the House and Senate over the level of the Section 199 pass-through deduction. As you know, the House set it at 23% and the Senate set it at the 20% level enacted in 2017. There is intense jockeying over a final number, likely to end up between 20% and 23%.

Tentative Deal on SALT Deduction Cap

While not an MCAA priority for the reconciliation bill, MCAA members residing in high-tax states, like New York, New Jersey, and California, may be interested to know that Friday Treasury Secretary Bessent brokered a tentative compromise between House and Senate Republicans on the cap for deducting individual state and local taxes (SALT) from federal taxes. The tentative deal would increase the deduction limit to $40,000 for five years for taxpayers making up to $500,000 (adjusted annually for inflation). The $40,000 deduction limit would snap back to $10,000 after five years. In addition, Senate Republicans would drop a recent proposal to limit individual SALT deductions for the owners of pass-through businesses. If the deal cannot get the requisite signoffs before the Senate begins consideration of its bill, this is yet another issue that may get resolved in a final “wrap around” amendment at the end of the Senate vote-a-rama.  

Senate Parliamentarian Rules Several Provisions of Reconciliation Bill Violate the Byrd Rule

As discussed above, last week the Senate Parliamentarian struck several provisions out of the Republican reconciliation bill because they violated the Byrd Rule. In the Senate Energy and Natural Resources Committee’s bill text, the parliamentarian struck: Subsection 102(b)(4) and Subsection 102(b)(5) deeming offshore oil and gas projects as automatically compliant with the National Environmental Policy Act (NEPA); Section 102(b)(6) requiring offshore oil and gas leases to be issued to successful bidders within 90 days after the lease sale; Section 305 and 306 requiring the Secretary of the Interior to hold yearly geothermal lease sales and changing how geothermal royalties are calculated; and Section 401 allowing natural gas exporters to pay a fee to have their project deemed “in the public interest.”  

Relatedly, the Senate Environment and Public Works (EPW) Committee released updated text for the Committee’s portion of reconciliation after the Parliamentarian ruled certain provisions out of order. The new EPW text would still rescind funding for Inflation Reduction Act climate programs, but would stop short of deauthorizing them. The updated text also retains the repeal of the Greenhouse Gas Reduction Fund and pauses the IRA’s methane tax for 10 years. The Committee posted the updated bill text, section-by-section analysis, and a one-pager.

In the Senate Health, Education, Labor, and Pensions Committee’s bill text, the parliamentarian struck Section 83002 expanding Pell Grants to include short-term workforce training programs.

Finally, we wanted to be sure you are aware that the current draft of the Senate Finance Committee’s reconciliation bill text would increase the CHIPS and Science Act’s Advanced Manufacturing Investment Credit (CHIPS ITC) from 25% to 30%. The increase is intended to give chipmakers further incentive to break ground on new facilities before a December 31, 2026 deadline to begin construction. MCAA has teamed with advocates from the CHIP industry to urge that this language be retained along with the improvements we won to the clean energy tax credits for nuclear power that are deemed critical to the technology industry’s build-out of data centers.

Davis-Bacon Prevailing Wage and PLAs

Senate HELP Advances Department of Labor (DOL) Nominees, Including MCAA-Endorsed OSHA Nominee and Solicitor Nominee Who Misrepresented His Writings on Davis-Bacon

Last Thursday, the Senate Health, Education, Labor, and Pensions (HELP) Committee advanced the following Labor Department nominees in an en bloc 12-11 vote: (1) MCAA-endorsed David Keeling to serve as Assistant Secretary for the Occupational Safety and Health Administration, which oversees federal workplace health and safety laws; (2) Andrew Rogers to serve as Administrator of the Wage and Hour Division, which enforces Davis-Bacon federal prevailing wage, overtime, and child labor laws; (3) Jonathan Berry, who authored the labor chapter of Project 2025, to serve as Solicitor of Labor, as Solicitor (chief legal counsel) for DOL; and (4) Jeremiah Workman to serve as Assistant Secretary of Labor for Veterans’ Employment and Training. The Committee also advanced, in a strong bipartisan 14-9 vote, the nomination of Daniel Aronowitz to serve as Assistant Secretary of Labor for the Employee Benefits Security Administration, which enforces ERISA requirements on retirement and health benefit plans. 

Mr. Berry’s nomination advanced out of committee despite an exchange with Sen. Murkowski (R-AK) at his June 18^th confirmation hearing during which he misrepresented his views on Davis-Bacon. Sen. Murkowski asked Mr. Berry for his views on Davis-Bacon and project labor agreements (PLAs), saying they were both important to the labor community in Alaska. Berry claimed to be “agnostic” on Davis-Bacon and said he took no position on it when he wrote the labor chapter for Project 2025. This was not true. The labor chapter of Project 2025 (available here) states on page 636 of the PDF (page 604 using numbers at bottom of the pages in the report) that, “The Davis-Bacon Act redistributes wealth from hardworking Americans to those that benefit from government-funded construction projects. Repealing the Davis–Bacon Act would increase worker freedom and end a longstanding effective tax on American families.” Further down, the labor chapter authored by Mr. Berry makes two recommendations: “(1) End PLA requirements. Agencies should end all mandatory Project Labor Agreement requirements and base federal procurement decisions on the contractors that can deliver the best product at the lowest cost; and (2) Repeal Davis-Bacon. Congress should enact the Davis-Bacon Repeal Act and allow markets to determine market wages.” The exchange between Sen. Murkowski and Mr. Berry is available on the HELP Committee hearing video (available here) starting at the 1:27:34 mark.

The staff of HELP Committee members was aware of the startling discrepancy between what Berry told the Committee about his views on Davis-Bacon and what was in Project 2025, but it did not result in Senator Murkowski or any other Republican reconsidering their support for Mr. Berry’s nomination when the Committee marked it up last Thursday.

House Republicans Introduce Bill to Rescind MCAA-Supported Davis-Bacon Modernization Rule

Last Wednesday, Rep. Lloyd Smucker (R-PA) introduced legislation (H.R. 4148) to rescind the MCAA-supported Department of Labor final rule “Updating the Davis-Bacon and Related Acts” that took effect on October 23, 2023. In his press release, Smucker claimed, “this regulation puts taxpayers on the hook for artificially inflated federal construction costs” and is “a giveaway to Democrat political allies at the expense of the American taxpayers.” The bill is cosponsored by 15 House Republicans: Reps. Virginia Foxx (NC), Beth Van Duyne (TX), G.T. Thompson (PA), Richard Hudson (NC), John Moolenaar (MI), Mary Miller (IL), Tracey Mann (KS), Keith Self (TX), Julia Letlow (LA), John Rose (TN), Roger Williams (TX), Randy Weber (TX), Pete Sessions (TX), Erin Houchin (IN), and Jim Baird (IN). The bill is also endorsed by Associated Builders and Contractors, Americans for Prosperity, the National Precast Concrete Association, and the National Society of Professional Surveyors. 

The MCAA policy team has long worked to oppose legislation to rescind this rule, including working with our union and employer partners to defeat a similar proposal from Rep. Smucker last Congress. The MCAA advocacy team has already been in touch with allies in the House to rally opposition to this bill and will be sending a letter of opposition to Congress after the Fourth of July, when all members and staff are back on Capitol Hill.

Trump Small Business Administration (SBA) Office of Advocacy Urges Repeal of MCAA-Supported Davis-Bacon Modernization Rule, Biden PLA Order and Related Rules and FTC Noncompete Rule

In the course of our lobbying against the Smucker bill, the MCAA advocacy team learned that the SBA Office of Advocacy recently submitted comments to the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) in response to their recent Requests for Information inviting input on laws and regulations that raise barriers to, or otherwise harm, competition in the American economy. Rep. Smucker is using these comments to support his bill because the MCAA-supported Davis-Bacon Modernization Rule is one of the regulations the SBA Office of Advocacy identified as a significant barrier to competition that should be rescinded. Specifically, the SBA says this rule should be rescinded because it, “results in a significant number of additional small businesses” being covered by Davis-Bacon and adopts a prevailing wage methodology that “sets artificially high wages.” The SBA goes on to recommend affirmative changes to the Davis-Bacon regulations, including a concept long opposed by MCAA to supplant the Davis-Bacon wage survey process and instead rely on “U.S. Bureau of Labor Statistics data” on wages that markedly reduce the weight of union wage scales across every construction craft in every market in America.

The SBA comment letter also recommended that the Administration repeal the Biden-era executive order on PLAs, despite acknowledging the recently revised Trump White House Office of Management and Budget guidance stating that the Administration supports PLAs.

MCAA is not only working to counter these assertions in the SBA comments on Capitol Hill, but also working to educate regulators and press the White House to disavow these recommendations.

One challenge we have fighting the SBA comment letter is that it also included a couple of points we agree with. Specifically, the SBA comment letter urged rescission of the FTC’s final rule banning most non-compete agreements that MCAA believes is too broad. It also calls for OSHA to abandon its pending Biden-era rulemaking on heat injury and illness that MCAA has viewed as an overly broad, excessively prescriptive, and impractical one-size-fits-all regulation.

Registered Apprenticeship

White House Reviewing Proposed Rule on EEO in Registered Apprenticeship Programs

As we continue to engage the Trump Administration on registered apprenticeship, we uncovered that the White House is currently reviewing a proposed rule from the Labor Department’s Employment and Training Administration entitled, “Apprenticeship Programs, Reducing Equal Employment Opportunity Regulatory Burden.” While the text of the proposed rule is not available, the apparent purpose of this rule is to conform 29 CFR Part 30 regulations on “Equal Employment Opportunity in Apprenticeship” with President Trump’s Executive Orders on diversity, equity, and inclusion that the Trump Administration is in the process of effectuating across government programs. The progress on this proposed rule also comes after DOL ETA rescinded its January 2025 Training and Employment Notice No. 21-24 that directed state workforce agencies, state apprenticeship agencies, and other stakeholders to “cease all activities related to [DEI] or ‘diversity, equity, inclusion, and accessibility’” under federal awards. White House review is typically the final step before an item is published in the Federal Register. After learning more about where this proposal is going, we think it may provide an opportunity to rationalize some of the more onerous EEO obligations placed on registered apprenticeship program sponsors. We will, of course, have to see the details of the proposal once it is published and confer with the GAC on a path forward.

Democrats Unite Against Plans to Transfer Voc-Ed Grant Programs to Labor Department

As the policy team engaged with Congress on apprenticeship issues, we learned that key Democrats are unified against the Administration’s plans to move vocational education grant programs from the U.S. Department of Education to the Department of Labor, as part of a larger effort to consolidate federal job training programs at Labor. We received an advance copy of a June 19^th letter from House Education and the Workforce Committee Ranking Member Bobby Scott (D-VA), House Appropriations Subcommittee on Labor, Health and Human Services Ranking Member Rosa DeLauro (D-CT), Senate Appropriations Committee Vice Chair Patty Murray (D-WA), and Senate Appropriations Subcommittee on Labor, Health and Human Services Ranking Member Tammy Baldwin (D-WI) to Education Secretary Linda McMahon opposing the “illegal efforts to attempt to transfer responsibility over career and technical education programs to the Department of Labor (DOL).” In addition to claiming it is illegal, the lawmakers said the attempt to transfer administration of vocational grant funding programs to DOL while maintaining some policy functions at the Education Department “would mean states, institutions of higher education, and school districts would have to work with two federal agencies in the administration of these programs, leading to delays in agency decision-making and grant administration.” While MCAA has taken no position on the transfer of these grants, we are increasingly concerned the issue may get injected into bills MCAA is working to advance on reauthorizing the National Apprenticeship Act and the Workforce Opportunity Investment Act.

Decarbonization

DOE Secretary Expresses Preference for Natural Gas and Nuclear Over Solar and Wind Energy 

On June 18^th, the MCAA policy team sat through Energy Secretary Chris Wright’s appearance before the Senate Energy and Natural Resources Committee, where he made some points we urged his office and Committee members to press with an eye towards buttressing our efforts to get Congressional Republicans to support the language we got in the GOP reconciliation bill favoring tax credits for nuclear power over other forms of clean energy. Our efforts paid off. During the hearing, Wright questioned the wisdom of solar and wind energy subsidies, saying the Trump Administration is, “ending the reckless subsidizing of unreliable, unaffordable, and less secure energy sources.” He echoed arguments MCAA has been making that it is incorrect to compare the cost of constantly running baseload power, such as natural gas and nuclear plants, to the intermittent forms of energy like wind and solar. MCAA was able to immediately socialize these comments on Capitol Hill as the debate over the nuclear credits we are prioritizing in reconciliation continues.

DOE Starts New Pilot Program Testing Advanced Nuclear Reactor Designs 

On June 18^th, the Energy Department (DOE) announced the start of a new pilot program to expedite the testing of advanced nuclear reactor designs, issuing a Request for Application (RFA) from U.S. reactor companies interested in constructing and operating their test reactors outside of the national laboratories using the DOE authorization process. DOE states that it will consider advanced reactors that have a reasonable chance to operate by the July 4, 2026 deadline. Per the release, applicants will be responsible for all costs associated with designing, manufacturing, constructing, operating, and decommissioning each test reactor. Initial applications are due by July 21, 2025, with subsequent applications allowed on a rolling basis. DOE sponsored an Industry Day event in-person and virtually on June 25, 2025. Additional information from the June 25, 2025 meeting is available through the RFA webpage.

EPA Publishes Proposed Rule to Repeal All Biden-Era GHG Emission Standards for Fossil Fuel Power Plants

The Environmental Protection Agency (EPA) published a proposed rule that would repeal all greenhouse gas emission (GHG) standards for fossil fuel-fired power plants pursuant to President Trump’s January 20, 2025 Executive Order 14154 on “Unleashing American Energy.” The EPA is taking this action based on a determination that the GHG emission standards for power plants “impose an undue burden on the identification, development, or use of domestic energy resources.” The agency also asserts in its proposal that prior regulations regarding requirements for GHG emissions standards are not “grounded in clearly applicable law.” 

Environmental Groups Raising Concerns as Banks Backtrack on Climate Pledges

As we continue to press forward on turning back some of the more onerous Biden-era environmental rules impacting our industry, we learned of a new report released from environmental advocates entitled, “Banking on Climate Chaos” bemoaning the fact that in 2024 banks around the world significantly increased their financing for oil, gas, and coal projects by 23% over 2023 levels, with commitments of $869 billion. The report draws on data from the world’s 65 largest banks by asset size and their financing activities to around 2,730 companies that are active across the fossil-fuel sector. The financing includes bond and share issuances, project and corporate loans, and revolving credit facilities. U.S. lenders continue to dominate as the largest financiers of fossil fuels, with JPMorgan Chase lenders providing $53.5 billion in funding last year, followed by Bank of America with $46.0 billion, and Citigroup rounding out the top three with $44.7 billion. We view this report as solid evidence that the tide is turning against radical decarbonization.

Tariffs 

Good News on China, Bad News on Canada

Last Friday, Treasury Secretary Scott Bessent said that the U.S. and China have signed a trade agreement that will make it easier for American firms to obtain magnets and rare earth elements from China that are critical to manufacturing and microchip production. Bessent added that the new pact cleared the way for additional trade talks between the U.S. and China to continue and called the pact a “de-escalation” in trade tensions between the two countries. During the announcement, Bessent said the Trump Administration’s tariff negotiations with more than a dozen trading partners could stretch into September, saying he hoped the Administration “could have trade wrapped up by Labor Day.” These positive developments on China trade were offset by President Trump’s announcement last Friday that he was “terminating” all trade discussions with Canada, effective immediately, because of its Digital Services Tax set to take effect over the weekend. It imposes a 3% tax on certain Canadian profits that companies from any nation make from online advertising, social media, online marketplaces and the sale and licensing of user data. First payments are due Monday, but because the bill applies retroactively, U.S. companies such as Amazon, Google and Meta could be faced with a bill up to $2 billion. President Trump said that he would announce new tariffs on Canada within the next seven days if Canada implemented the Digital Services Tax.

U.S. Supreme Court Declines to Fast Track Challenge to Trump Tariffs

As MCAA continues monitoring tariff developments that were discussed at the May policy conference, on June 20th, the U.S. Supreme Court refused to fast track consideration of pending challenges President Trump’s April “Liberation Day” tariffs imposed in April. The plaintiffs wanted to forgo further deliberations in the lower federal courts and get a definitive Supreme Court ruling on President Trump’s tariff powers under the International Emergency Economic Powers Act. However, the Supreme Court sided with the Trump Administration and refused the plaintiffs’ request for expedited consideration, signaling it would wait for litigation challenging Trump’s tariffs to work its way through the federal appellate courts. 

Other Interesting Things Since Our Last Report

June 27, 2025

• The National Labor Relations Board (NLRB) announced that Acting General Counsel William B. Cowen issued GC Memorandum 25-07 to all field offices. The memorandum, which is entitled “Surreptitious Recordings of Collective-Bargaining Sessions as a Per Se Violation of the NLRA,” provides that a party which secretly records collective bargaining session(s) commits a per se violation of the National Labor Relations Act. Acting General Counsel Cowen emphasized, “[t]he use of surreptitious recordings during the collective-bargaining process is inconsistent with the openness and mutual trust necessary for the process to function as contemplated by the Act.” The memo also notes that because advances in technology have made the ability to record conversations universally available, this capability warrants a clear statement that, in the collective-bargaining context, surreptitious recording is not lawful.

• The Interior Department’s Bureau of Ocean Energy Management (BOEM) published a Proposed Notice of Sale (PNOS) for an oil and gas lease sale in the Gulf of America that offers approximately 15,000 unleased blocks located three to 231 miles offshore across the Gulf’s Western, Central, and Eastern Planning Areas. The leases awarded through this sale will be for oil and gas exploration and development only. A map of the proposed lease sale area is available here.

June 26, 2025

• The Commerce Department’s Bureau of Economic Analysis released a downward adjustment of U.S. gross domestic product (GDP) for the first quarter of 2025, saying the U.S. economy shrank 0.5% instead of the previously reported 0.2%. The revised estimate said first-quarter growth was weighed down by a surge of imports as U.S. companies and households rushed to buy foreign goods before tariffs took effect. The downward adjustment to GDP came as the Labor Department reported that weekly jobless claims fell, but continuing claims for unemployment increased to 1.97 million, the highest level since November 2021, signaling more people are staying out of work for longer.

• The Labor Department’s Occupational Safety and Health Administration is renewing its National Emphasis Program on Amputations in Manufacturing Industries focused on preventing amputations in manufacturing workplaces. Under the renewed program, OSHA will conduct inspections of manufacturing facilities to ensure compliance with safety practices while operating, servicing, or maintaining machines. This includes controlling dangerous energy sources and making sure machines are properly guarded to prevent amputations. The program looks at companies using machinery that poses a risk of amputation.  

June 25, 2025

• The Senate Environment and Public Works Committee held a confirmation hearing on the nomination of David Wright to be a member of the Nuclear Regulatory Commission (NRC). The hearing comes after President Trump terminated NRC Commissioner Christopher Hanson, who is a Democrat, on June 13^th. Hanson claims he was removed from the position “without cause” and “contrary to existing law and longstanding precedent regarding removal of independent agency appointees.” Hanson was tapped to be the chair of the NRC by former President Biden in 2021 after originally being nominated to the commission by Trump in 2020.

• The House Transportation and Infrastructure Committee voted 34-30 along party lines to approve H.R. 3898, the Promoting Efficient Review for Modern Infrastructure Today (PERMIT) Act, legislation to improve the permitting process for Clean Water Act projects. Rep. Mike Collins (R-GA), the bill’s sponsor, said the legislation would protect projects from “frivolous lawsuits” and provide project sponsors with regulatory certainty, while Ranking Member Rick Larsen (D-WA) criticized the bill as putting “polluters over people by weakening Clean Water Act protections for the nation’s rivers, streams, lakes, and wetlands.”

• The Interior Department’s Bureau of Ocean Energy Management (BOEM) and Bureau of Safety and Environmental Enforcement (BSEE) announced they are updating their policies to speed up the search and development of critical minerals offshore the United States across all stages of development, from early exploration to post-lease operations and production. For early-stage exploration, BOEM will apply existing streamlined environmental reviews and extend the duration of prospecting permits from three to five years, giving companies more time to complete their work without unnecessary interruptions. BOEM will also start preparing environmental assessments during the lease sale phase, reserving more detailed environmental impact statements for later planning stages. Once a lease is issued, BOEM and BSEE will consider offshore critical mineral projects for expedited permitting under the Department’s emergency procedures and other applicable laws. Approvals for mapping, testing, and site development will be fast-tracked and, when requested by the lessee, BOEM will also consolidate exploration, testing, and mining plans into a single review, reducing duplication and speeding up decision-making.

• The Energy Department’s Office of Electricity announced three storage technologies projects that will receive up to $5 million each (for a total of $15 million) to demonstrate the ability of energy storage to support critical facilities and infrastructure during a power outage or other emergency. The projects are: (1) the Resilient Energy System based on high-voltage PhosphatE Cell Technology (RESPECT) Project at New York’s Binghamton University that will develop and demonstrate a Bio-Mineralized Lithium Mixed-Metal Phosphate grid-scale battery energy storage system to improve energy resilience at a critical services facility (e.g., fire, water treatment, etc.) in Endicott, NY; (2) the Iron and Sodium Long Duration Battery for Multi-day Resilience and Renewable Shifting in High Wildfire Risk Zone Project that will develop and demonstrate an iron and sodium long-duration energy storage system to improve energy resilience at the Alliance Redwoods site in Occidental, CA; and (3) the Demonstration of Low-Cost, Organic Quinone Flow Battery Project that will develop and demonstrate Quino Energy’s organic quinone flow battery to improve energy resilience at Los Angeles County’s High Desert Regional Health Center (HDRHC) in Lancaster, CA.

June 24, 2025

• The House of Representatives voted 217-206 to pass the fiscal year 2026 Military Construction-Veterans Affairs Appropriations Act, which provides $152.1 billion in net discretionary spending, a 3% increase over the current fiscal year. The bill includes $18 billion for military construction activities (also a 3% increase over FY 2025), including $2 billion for family and military personnel housing (a 2% increase), $110 million in additional funding for construction improvements at Department of Defense (DOD) Laboratories, and $75 million each in additional funding for improvements to barracks and child development centers.

• Two term Rep. Robert Garcia (D-CA) was elected to succeed the late Rep. Gerry Connolly (D-VA) (a longtime ally of MCAA) as Ranking Member on the House Oversight Committee, defeating more senior Rep. Stephen Lynch (D-MA) by a vote of 150-63. The 47-year-old Garcia’s decisive victory is a major coup for the youth wing of the House Democratic Caucus as it tries to secure more leadership roles from the more senior, establishment old guard. The victory was considered a forgone conclusion after Garcia unexpectedly won the recommendation of the House Democratic steering committee on the first ballot last night.

• Centers for Medicare and Medicaid Services (CMS) Administrator Mehmet Oz warned that pharmacy benefit managers (PBMs) should “end the complicated system of drug rebates before the government steps in to change it,” signaling that the Trump CMS may revive attempts to eliminate payments drugmakers send to PBMs after prescriptions are filled. Oz suggested that regulators and lawmakers could revamp the system “fairly expeditiously, because there’s a motivated group of people who want to do that.”

June 20, 2025

• A new poll found that support among Americans for tax credits for electric vehicles and solar panels has weakened, as well as their enthusiasm for offshore wind farm expansion. About half of U.S. adults support expanding solar panel farms (down from about two-thirds support in 2022), 37% of U.S. adults favor providing tax credits for the purchase of electric vehicles, compared to 30% that oppose it, and 44% of U.S. adults say that offshore wind farms should be expanded (down from 59% in 2022).

June 19, 2025

• The Federal Energy Regulatory Commission (FERC) announced several actions to remove regulatory obstacles and speed the construction of natural gas infrastructure in the United States. First, FERC issued an order granting a two-year temporary waiver to temporarily raise the cost limits under which natural gas companies are allowed to undertake pipeline modifications or construction without the need for further case-by-case certificate authorization by the Commission, and a Notice of Inquiry seeking comment on permanently adjusting the blanket certificate cost limitations. Additionally, FERC issued an order granting a one-year waiver of the Commission’s FERC’s Order No. 871, a rule that prevents issuance of authorizations to proceed with construction activities for natural gas facilities while certain requests for rehearing are pending before the Commission, and a Notice of Proposed Rulemaking published in the Federal Register on June 24^th.  

June 18, 2025

• The Interior Department released a U.S. Geological Survey report entitled, “An Estimate of Undiscovered, Technically Recoverable Oil and Gas Resources Underlying Federal Lands of the Onshore United States, 2025.” The report estimates that there are technically recoverable resources of 29.4 billion barrels of oil and 391.6 trillion cubic feet of gas under federally managed lands. The estimates focused on conventional oil and gas accumulations and did not include all unconventional resources such as shale oil, tight oil and tight gas (i.e., oil and gas trapped in impermeable rock), and coal-bed gas. The public lands included in the report are those administered by the Departments of Agriculture, Defense, Energy, and Interior, as well as the Tennessee Valley Authority.

• The Social Security Board of Trustees released its annual report revealing that the Social Security Trust Fund is expected to be insolvent by 2034—one year earlier than projected last year. The Trustees noted that the actuarial deficit increased significantly in part due to implementation of the Social Security Fairness Act repealing the Government Pension Offset and Windfall Elimination Provision. On Medicare, the Trustees reported that the Hospital Trust Fund will be able to pay 100% of total scheduled benefits until 2033—three years earlier than reported last year. After 2033, the program will only be able to pay 89% of total scheduled benefits.

• The Commerce Department’s Census Bureau reported housing starts fell almost 10% last month to an annualized pace of 1.3 million—well below the rate that economists expected. Builders broke ground on home construction in May at the slowest pace in five years. The issuance of building permits also hit a five-year low in June and sentiment among homebuilders dropped to the lowest level since June 2022. In certain parts of the county, there is too much inventory compared to demand. The National Association of Home Builders warned that homebuyers, “are increasingly on the sidelines due to elevated mortgage rates and tariff and economic uncertainty.”

• The latest Business Roundtable’s CEO Economic Outlook Index fell by 15 points to 69—well below the index’s historical average of 83. The decline is a result of tepid expectations for the months ahead, most notably on the hiring front. The employment subindex plummeted by almost 19 points, with more than 40% of CEOs expecting to shrink their workforces in the next six months — up from the roughly 30% who said the same last quarter. 

June 17, 2025

• At least nine companies have pending requests for the National Labor Relations Board (NLRB) to reconsider the validity of NLRB regional directors’ (RDs) decisions in union election cases while the NLRB lacks a quorum. Although several federal appeals courts have previously affirmed the NLRB’s conclusion that RDs can wield delegated power when the NLRB lacks a quorum, the companies are arguing that these prior rulings were based on courts deferring to the NLRB’s reasonable interpretation of an ambiguous provision of the National Labor Relations Act. The companies say that such deference is no longer warranted since the Supreme Court reversed the Chevron doctrine last year in its landmark Loper Bright Enterprises decision.

June 16, 2025

• The Environmental Protection Agency (EPA) published proposed rule regarding Renewable Fuel Standard (RFS) program volume requirements for 2026 and 2027. The proposal consists of three key aspects: (1) sets strong growth targets for key renewable fuels; (2) reduces the value of renewable fuels and feedstocks from foreign countries; and (3) removes electricity as a qualifying renewable fuel under the RFS program.

• Speaking at the Securities Industry and Financial Markets Association (SIFMA) Anti-Money Laundering and Financial Crimes Conference, Justice Department Criminal Division chief Matthew Galeotti said the Division is, “turning a new page on white-collar and corporate enforcement.” Recognizing that “most corporations and financial institutions want to play by the rules and provide value for their shareholders and their customers,” Galeotti said that the era of “[e]xcessive enforcement and unfocused corporate investigations…ends today.” He announced the Criminal Division’s new “white-collar enforcement plan” that will focus efforts on the most egregious white-collar crime, such as fraud and exploitation of the financial system, and encourage companies to self-report violations of law. 

• Sens. Bill Cassidy (R-LA), Tim Scott (R-SC), Roger Marshall (R-KS), and Thom Tillis (R-NC) introduced the Strengthening Benefits Plans Act of 2025, legislation that would allow for overfunded 401(h) retiree pension accounts (i.e., employer-sponsored fund for post-retirement medical benefits) to be transferred to help pay for active healthcare programs. The full bill text is available here.

Around the Country 

Northeast 

• On June 26^th, Constellation Energy Corp. said it could restart its Three Mile Island site in Pennsylvania as early as 2027, one year earlier than previously projected. Once operational, it will deliver electricity to Microsoft, which needs carbon-free energy for its artificial intelligence systems.

• On June 26^th, it was revealed that Rep. Elise Stefanik (R-NY) is preparing to officially launch her campaign for New York governor. Her confidantes say it’s no longer a matter of if, but when, Stefanik will launch her gubernatorial campaign.

• On June 25^th, former Massachusetts GOP Sen. Scott Brown announced another run to replace retiring Sen. Jeanne Shaheen (D) in New Hampshire. Shaheen defeated Brown for the seat in 2014.

• On June 23^rd, New York Gov. Kathy Hochul (D-NY) directed the New York Power Authority to find a site in upstate New York to build a new nuclear power plant that will add at least 1 gigawatt of new nuclear-power generation—enough to power about a million homes. If approved, the nuclear power plant would be the first to start construction in New York in a generation. The Power Authority will determine the reactor’s design and decide if it will pursue the project alone or in partnership with private entities.

• On June 19^th, the International Union of Operating Engineers Local 825 endorsed GOP New Jersey gubernatorial candidate Jack Ciattarelli in his race against Democratic Rep. Mikie Sherrill (D-NJ). The 8,000-member union says it endorsed Ciattarelli because “of his willingness to create jobs by supporting projects involving natural gas” compared to the Democratic nominee, Mikie Sherrill, for “banking on solar” as a solution to the state’s energy needs. Local 825’s Business Manager commented that, “The notion that we can do this without natural gas is insane…We can’t get there just on solar. That’s impossible.”

West

• On June 24^th, in conjunction with a new report on California’s water resources, Gov. Gavin Newsom (D-CA) said that the state’s “water system is unprepared for California’s hotter and drier climate.” Newsom went on to explain that that “means we also need to build new water infrastructure like the Delta Conveyance Project in Sacramento. He added, “We literally cannot afford to wait to complete this vital project, and Californians are sick and tired of the self-imposed roadblocks standing in the way of our state’s continued progress.”

• On June 18^th, Texas Instruments announced that it will invest more than $60 billion across three manufacturing sites in Lehi, Utah, as well as Sherman and Richardson in Texas. The investment will go toward seven semiconductor fabs, expanding the company’s domestic manufacturing capacity to supply growing demand for semiconductors used in vehicles, smartphones, data centers, satellites and other electronic devices.

Northwest 

• On June 26^th, it was revealed that a proposed data center project in Great Falls, MT will entail a two-million-square-foot campus, but the facility will require approximately 600 megawatts of electricity. A number of options are being considered for on-site power generation—such as natural gas or coal-fired—all of which would require the construction of new infrastructure. 

• On June 24^th, the U.S. Department of Agriculture (USDA) rescinded the 2001 Roadless Rule. The USDA said the rescission will allow the Department to lift restrictions against logging, road construction, and reconstruction on nearly 59 million acres of the National Forest System. USDA added that this rescission will also foster greater economic development and help support job growth, particularly in Montana, Utah, and Alaska.

Midwest

• On June 27^th, MCAA learned that Nebraska GOP Congressman Don Bacon (NE) will not seek reelection in the state’s 2^nd Congressional District that is always hotly contested.

• On June 25^th, former Ohio Supreme Court Justice Bill O’Neill announced a run as a Democrat for Ohio’s 14^th Congressional District against incumbent Rep. David Joyce (R-OH).

• On June 20^th, the Energy Department (DOE) announced that it has released an additional $100,451,904 of the up to $1.52 billion loan guarantee to Holtec to restart Michigan’s Palisades Nuclear Plant. The release of this funding brings the total DOE guaranteed loan funds provided to Holtec to $251,878,038 since the September 2024 announcement of the loan. This project will mark the United States’ first restart of a commercial nuclear reactor that has ceased operations.

• On June 18^th, former Biden Ambassador to Ukraine Bridget Brink announced she’s running as a Democrat for Congress in Michigan’s 7^th Congressional District against Rep. Tom Barrett (R-MI). 

• On June 17^th, Democrat Christina Bohannan announced the launch of her third campaign to unseat GOP Rep. Mariannette Miller-Meeks after losing to Miller-Meeks by just 799 votes in 2024.  

Southeast

• On June 25^th, Gov. Glenn Youngkin (R-VA) set the special general election to replace the late Rep. Gerry Connolly (D-VA) (a longtime ally of MCAA) in Virginia’s 11^thCongressional District for September 9^th and the ten Democrats and seven Republicans competing for the seat will have until July 11^th to qualify for the ballot.

• On June 23^rd, President Trump’s political operation launched a super PAC called “Kentucky MAGA” to unseat Rep. Thomas Massie (R-KY) following his opposition to the reconciliation bill and President Trump’s strikes on Iran.

• On June 18^th, Louisiana state Sen. Blake Miguez (R) launched a Republican primary bid against incumbent Sen. Bill Cassidy (R-LA). Other Republicans challenging Cassidy include Louisiana State Treasurer John Fleming, Randall Arrington, Chris Holder, Xan John, and Samuel Wyatt. 

• On June 18^th, Democrat Josh Weil, who raised millions of dollars for an unsuccessful special election earlier this year in Florida’s 6^th Congressional District, announced a U.S. Senate run against incumbent Sen. Ashley Moody (R-FL).

• On June 16^th, the U.S. Supreme Court agreed to hear a bid by Chevron, Exxon Mobil, and other oil and gas companies to have lawsuits brought by two Louisiana localities accusing them of harming the state’s coast over a period of decades moved out of state court and into federal court. The justices took up an appeal by the companies of a lower court’s ruling rejecting their claims that the lawsuits belong in federal court because the parishes of Plaquemines and Cameron were suing over oil production activities undertaken to fulfill U.S. government refinery contracts during World War II. 

Southwest

• On June 27^th, a new poll from a super PAC aligned with Texas Attorney General Ken Paxton (R) found that Paxton leads incumbent Sen. John Cornyn (R-TX) 57% to 38% in a head-to-head matchup of Texas Republican primary voters.

• In a 6-3 decision on June 18^th, the U.S. Supreme Court overturned a lower court’s decision that had invalidated a license awarded by the Nuclear Regulatory Commission (NRC) to operate a privately-owned, temporary off-site nuclear waste storage facility in Andrews, Texas near the New Mexico border. The NRC also permitted a temporary waste facility about 40 miles away in southeast New Mexico. The legal challenge was brought by the state of Texas and oil industry interests against NRC’s licensing of the nuclear waste storage facilities.

• On June 16^th, the U.S. Forest Service posted the final environmental impact statement (EIS) and draft record of decision for the proposed Resolution Copper Mining Project, a proposed underground mine on the Tonto Forest near Superior, Arizona. The project aims to extract one of the largest undeveloped copper deposits in the U.S. The project is projected to create nearly 1,500 jobs, generate $149 million in annual payroll, provide between $80 and $120 million a year in estimated state and local tax revenue for rural economies, and contribute $200 million a year to the federal government. 

Alaska and Hawaii 

• On June 23^rd, the Senate parliamentarian ruled that a provision in the Senate Energy and Natural Resources Committee’s portion of the Republican reconciliation bill that required the Secretary of the Interior to permit construction of Ambler Road, a proposed 211-mile industrial access road in Alaska intended to facilitate mining in the Ambler Mining District, violated the Senate’s Byrd Rule and therefore could not be included in the bill.