EIW Today - April 28th, 2025

Prism Group's Daily Summary

RECONCILIATION PROCESS KICKS OFF IN EARNEST… Lawmakers are back after recess, with House Republicans beginning markups on a major reconciliation package that will include deep cuts to federal programs and a slate of tax cuts. GOP leaders are racing to meet President Trump's Memorial Day deadline for passage, though that timeline is looking increasingly unrealistic. Meanwhile, the Treasury Department is set to announce the "X date" for the debt limit this week, adding pressure as both parties prepare for a bruising legislative fight.

SMALL BUSINESSES LEAD TARIFF PUSHBACK… As steep tariffs take a toll on small companies, small business owners are stepping up to sue the Trump administration, arguing the tariffs are unlawful and harmful to their survival. While major trade groups like the U.S. Chamber of Commerce have criticized the tariffs, they have avoided litigation, leaving small businesses to spearhead the legal resistance. Entrepreneurs say the mounting costs leave them with no choice but to fight back, even as they fear political retribution.

CFPB SEEKS TO REOPEN SMALL BUSINESS LENDING RULE UNDER SECTION 1071...

Following strong legal challenges, the Consumer Financial Protection Bureau (CFPB) announced it will revise its small business lending data collection rule under Section 1071 of the Dodd-Frank Act. Originally finalized in 2023, the rule requires financial institutions to collect detailed data on small business loan applications to bolster fair lending enforcement and improve transparency in underserved communities. However, critics—including many lenders—argued the rule imposed excessive reporting burdens that could shrink small businesses' access to credit by making compliance too costly or difficult for lenders to bear.

For small businesses, this regulatory uncertainty creates significant concern. While the rule’s original intention was to shine a light on credit access disparities, its potential chilling effect on lenders could mean fewer financing options for small enterprises that already struggle to secure funding. As the CFPB moves forward with revising the rule, small business advocates will be watching closely to ensure that fair lending goals are balanced with maintaining broad, affordable access to capital.

CRYPTO INNOVATION STIFLED: SEC CHAIR CALLS FOR CHANGE... In a recent roundtable discussion, SEC Chair Paul Atkins declared that innovation in the crypto industry has been stifled for years due to regulatory uncertainty. He emphasized that the SEC has the authority to regulate digital assets effectively without waiting for new congressional action. Atkins expressed a commitment to engaging with market participants to establish a more rational framework for the crypto market. His remarks signal a potential shift towards a more supportive regulatory environment for cryptocurrencies.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

Thirty-four states are in regular session.

WHAT WE'RE WATCHING: 

Washington lawmakers approved legislation providing up to six weeks of unemployment for striking workers. New York and New Jersey have identical programs for striking workers; the Oregon House is expected to hold hearings on another similar bill this week, though it would require workers to wait two weeks before qualifying for benefits.

California regulators have proposed new rules to allow for the testing of self-driving trucks over 10,000 lbs. The regulations will boost data-reporting requirements for manufacturers. Self-driving heavy duty trucks are already in testing in Texas, Arizona and Arkansas."

The South Carolina Senate has amended energy legislation to require data centers to pay the full cost of the new power plants and transmission lines they need. The move follows two major announcements: a $2.8 billion data center in Spartanburg County that will generate its own electricity, and a decision by state-owned utility Santee Cooper to adopt rates preventing data centers from shifting energy costs onto other customers.

LAWMAKERS... IN OR OUT? 

The House... convenes today at 12:00 PM. The full schedule may be found here.

The Senate... convenes today at 3:00 PM. The full schedule may be found here.

HAPPENING ON THE HILL  

The House...

Committee on Energy and Commerce will hold a hearing Tuesday, 4/29 at 10:00 AM entitled, “Markup.”

Committee on Financial Services will hold a hearing Tuesday, 4/29 at 10:00 AM entitled, “Regulatory Overreach: The Price Tag on American Prosperity.”

Committee on Appropriations will hold a hearing Tuesday, 4/29 at 10:30 AM entitled, “AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION - MEMBER DAY.”

Committee on Financial Services will hold a hearing Tuesday, 4/29 at 2:00 PM entitled, “Exposing the Proxy Advisory Cartel: How ISS & Glass Lewis Influence Markets.”

Committee on Small Business will hold a hearing Wednesday, 4/30 at 9:45 AM entitled, “Full Committee Markup.”

Committee on Financial Services will hold a hearing Wednesday, 4/30 at 10:00 AM entitled, “Markup of Various Measures.”

Committee on Energy and Commerce will hold a hearing Wednesday, 4/30 at 10:00 AM entitled, “"Global Networks at Risk: Securing the Future of Telecommunications Infrastructure.”

Committee on Energy and Commerce will hold a hearing Wednesday, 4/30 at 10:15 AM entitled, “Assuring Abundant, Reliable American Energy to Power Innovation.”

The Senate...     

Committee on Health, Education, Labor and Pensions will hold an executive session Wednesday, 4/30 at 10:00 AM entitled “S. 588 and S. 163.”

Committee on Finance will hold an executive session Wednesday, 4/29 at 10:00 AM entitled “Open Executive Session Hearing to Consider Favorably Reporting the Nominations of William Kimmitt, of Virginia, to be Under Secretary of Commerce for International Trade, and Kenneth Kies, of Virginia, to be an Assistant Secretary of the Treasury.”

Committee on Finance will hold a hearing Wednesday, 4/30 at 10:00 AM entitled “Hearing to Consider the Nomination of Rodney Scott, of Oklahoma, to be Commissioner of U.S. Customs and Border Protection, Department of Homeland Security, vice Chris Magnus.”

Committee on Judiciary will hold a hearing Wednesday, 4/30 at 10:15 AM entitled, “Nominations.”

Committee on Appropriations will hold a hearing Wednesday, 4/30 at 10:30 AM entitled, “Biomedical Research: Keeping America’s Edge in Innovation.”

Committee on Banking, Housing and Urban Affairs will hold a hearing Thursday, 5/1 at 10:00 AM entitled, “Examining Insurance Markets and the Role of Mitigation Policies.”

Committee on Judiciary will hold a hearing Thursday, 5/1 at 10:15 AM entitled, “Executive Business Meeting.”

BILLS OF INTEREST 

The House Committee on Small Business will hold a markup of legislation to amend the following seven measures. The markup will be held at 9:45 AM ET on Wednesday, April 30, 2025, in room 2360 of the Rayburn House Office Building. The items that will be marked up include:

• H.R. 1163 – Prove It Act of 2025

• H.R. 2027 – Returning SBA to Main Street Act

• H.R. 2987 – Capping Excessive Awarding of SBLC Entrants (CEASE) Act

• H.R. 2931 – Save SBA from Sanctuary Cities Act

• H.R. 2968 – Business over Ballots Act

• H.R. 2965 – Small Business Regulatory Reduction Act of 2025

• H.R. 2966 – American Entrepreneurs First Act

  
  

S. 1272 The Trade Review Act of 2025 

The bill restores Congress’ authority and responsibility over tariffs as outlined in Article I, Section 8 of the Constitution by placing the following limits on the president’s power to impose tariffs: 

• To enact a new tariff, the president must notify Congress of the imposition of (or increase in) the tariff within 48 hours. 

• The Congressional notification must include an explanation of the president’s reasoning for imposing or raising the tariff, and 

• Provide analysis of potential impact on American businesses and consumers. 

• Within 60 days, Congress must pass a joint resolution of approval on the new tariff, otherwise all new tariffs on imports expire after that deadline. 

• Under the bill, Congress has the ability to end tariffs at any time by passing a resolution of disapproval. 

AT THE AGENCIES  

The U.S. Department of Labor

U.S. Secretary of Labor Lori Chavez-DeRemer and Deputy Secretary of Labor Keith Sonderling applauded President Trump’s latest Executive Order “Advancing Artificial Intelligence Education for American Youth.

The U.S. Department of the Treasury

Secretary Bessent Partners with ABA Foundation to Promote "Teach Children to Save Day.

The U.S. Department of Commerce

Check back tomorrow for possible updates.

The U.S. Trade Representative

Check back tomorrow for possible updates.

The U.S. Small Business Administration

The U.S. Small Business Administration (SBA) announced a major surge in manufacturing loans during the first 90 days of the Trump Administration. Compared to the same period during the Biden Administration, the number of SBA 7(a) loan approvals for small manufacturers has increased by 74%.

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