Prism Group's Daily Summary
IRS NOMINEE PUTS ERC BACK IN THE SPOTLIGHT... Billy Long, President-elect Donald Trump's pick to head the IRS, is facing questions about his qualifications to lead the tax agency from Sen. Elizabeth Warren (D-MA). In a letter, the Senator raises concerns about Long’s prior work on behalf of a so-called Employee Retention Credit “promoter,” a term that describes firms who received fees based on a percentage of their clients’ ERC credits, a practice that the IRS has decried repeatedly. Expect to see more scrutiny both of Long and the program in general.
AI IS MOVING INSIDE THE OPERATIONS, AND BEHIND THE CEO DESK, AT AMERICA’S SMALL BUSINESSES... It’s no secret that large corporations are using generative artificial intelligence to get ahead — but many small businesses are finding ways to use this technology to their advantage, too. There’s still a large chunk (43%) of small businesses that have never even considered using gen AI in their operations, according to the 2024 State of Small Business survey of 1,300 respondents from small business software company Gusto. But nearly a third are experimenting with it while a quarter have already seen the upside, the survey found.
CYBERSECURITY COMPLIANCE SUPPORT FOR SMALL BUSINESSES... Congress is proposed a tax credit to assist small defense contractors with compliance costs related to the new Cybersecurity Maturity Model Certification (CMMC), aimed at ensuring cybersecurity for sensitive data within the defense sector. Advocates stress that the upfront costs of compliance could deter smaller, innovative companies from bidding on defense contracts, potentially impacting national security. The proposed tax credit and support measures reflect a growing recognition of the need to maintain small business participation in the defense industrial base.
THE STATE OF THE STATES
SESSIONS BY THE NUMBERS:
Thirty-five states are in regular session.
WHAT WE'RE WATCHING:
Governor Gavin Newsom (D) unveiled a proposed $322 billion state budget for California, buoyed by a $363 million surplus and $17 billion in unexpected revenue. The plan includes limited new spending, such as creating a state agency to address homelessness and housing policies, while maintaining a $7.1 billion draw from reserves. However, with $135 billion in economic losses from Los Angeles-area wildfires and potential shifts in federal disaster aid under the incoming Trump administration, challenges loom.
The North Carolina General Assembly opened its biennium with the reelection of Sen. Phil Berger (R) as Senate president pro tempore and the election of Rep. Destin Hall (R) as House Speaker. Leaders listed their priorities this session, including creating economic competitiveness through tax relief and job growth, and expanding educational opportunities with a focus on school choice.
LAWMAKERS... IN OR OUT?
The House... convenes today at 10:00 AM. The full schedule may be found here.
The Senate... convenes today at 12:00 PM. The full schedule may be found here.
HAPPENING ON THE HILL
The House...
Committee on Ways and Means will hold a hearing TODAY, 1/14 at 10:00 AM entitled "Hearing on The Need to Make Permanent the Trump Tax Cuts for Working Families.”
The Senate...
Committee on Banking, Housing and Urban Affairs will hold a hearing Thursday, 1/16 at 10:00 AM entitled " Nomination Hearing."
Committee on Finance will hold a hearing Thursday, 1/16 at 10:30 AM entitled “Hearing to Consider the Anticipated Nomination of Scott Bessent, of South Carolina, to be Secretary of the Treasury."
Committee on Judiciary will hold a hearing Wednesday, 1/15 at 9:30 AM entitled “The Nomination of the Honorable Pamela Jo Bondi to be Attorney General of the United States."
BILLS OF INTEREST
Rep. Claudia Tenney (R-NY) introduced a bill to amend the Fair Labor Standards Act of 1938 to provide for the preemption of certain State overtime laws for agricultural employees.
Sen. Joni Ernst introduced a bill to require the head of each Executive agency to relocate 30 percent of the employees assigned to the headquarters of the Executive agency to duty stations outside the Washington metropolitan area, and for other purposes.
AT THE AGENCIES
The U.S. Department of Labor
The U.S. Department of Labor announced the availability of at least $25 million in grants to support training and employment services for incarcerated individuals before and after their release from state, county or local correctional facilities.
The U.S. Department of the Treasury
Check back tomorrow for possible updates.
The U.S. Department of Commerce
U.S. Secretary of Commerce Gina Raimondo announced the Department’s Economic Development Administration (EDA) is awarding $25 million in Good Jobs Challenge program funding to eight grantees to support high-quality, locally-led workforce training programs that create a pathway for workers to be placed into good-paying jobs.
The U.S. Trade Representative
Check back tomorrow for possible updates.
The U.S. Small Business Administration
Check back tomorrow for possible updates.
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