Organization: MSCA

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

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

Trump Administration

Trump Delivers Joint Address to Congress

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

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

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

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

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

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

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

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

Congress

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

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

House T&I Committee Announces Subcommittee Vice Chairs

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

MCAA Issues and Interests 

Project Labor Agreements

Working to Defend MCAA-Supported PLA Rule

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

Davis-Bacon Prevailing Wage

Trump Calls for Congress to Repeal the CHIPS Act

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

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

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

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

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

Registered Apprenticeship

House Education and the Workforce Subcommittee Holds Hearing on WIOA 

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

Pension Reform

DC Conference on the Impending Retirement Crisis

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

House Ed and Workforce Renews Investigation into SFA Overpayments

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

Decarbonization

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

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

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

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

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

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

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

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

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

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

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

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

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

Federal Contracting 

Trump Signs EO Implementing DOGE Cost Efficiency Initiative 

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

DOL Orders OFCCP to Reduce Workforce by 90%

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

Other Interesting Things Since Our Last Report 

March 6, 2025

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

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

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

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

March 5, 2025 

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

March 4, 2025

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

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

March 3, 2025 

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

March 2, 2025 

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

February 28, 2025

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

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

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

February 27, 2025 

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

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

February 26, 2025

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

February 25, 2025 

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

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

February 24, 2025

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

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

February 21, 2025

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

Around the Country 

Northeast 

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

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

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

West

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

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

Northwest 

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

Midwest 

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

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

Southeast

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

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

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

Southwest

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

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

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

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

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

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

Trump Administration

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

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

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

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

DOJ Chief of Staff Says Removal Restrictions for ALJs Are Unconstitutional

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

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

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

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

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

Senate Confirms Several Additional Trump Cabinet Nominees

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

Trump Submits Nominees for Positions at Various Federal Departments and Agencies

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

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

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

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

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

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

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

Congress

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

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

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

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

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

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

Senate Energy and Natural Resources Committee Releases Subcommittee Roster

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

MCAA Issues and Interests 

Project Labor Agreements

DOD and VA Direct Contracting Officers to Remove Language Favoring PLAs

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

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

Trump Administration Reevaluating Terms in CHIPS Act Funding Awards

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

Davis-Bacon Prevailing Wage

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

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

Independent Contractors and Misclassification of Workers 

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

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

Decarbonization

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

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

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

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

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

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

Federal Contracting 

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

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

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

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

Other Interesting Things Since Our Last Report 

February 20, 2025

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

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

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

February 19, 2025

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

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

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

February 18, 2025

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

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

February 16, 2025

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

February 14, 2025

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

February 13, 2025

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

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

February 12, 2025

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

February 11, 2025

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

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

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

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

February 10, 2025 

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

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

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

Around the Country 

Northeast 

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

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

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

West

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

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

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

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

Northwest 

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

Midwest

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

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

Southeast

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

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

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

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

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

Southwest

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

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

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