EIW Today - July 1st, 2025

Prism Group's Daily Summary

GOP BURNS MIDNIGHT OIL AS SENATE NEARS HIGH-STAKES VOTE ON TRUMP MEGABILL…  Senate Republicans pulled an all-nighter Monday as they scrambled to lock down support for the 940-page “One Big Beautiful Bill Act,” a cornerstone of former President Trump’s second-term legislative agenda. The sweeping package includes an extension of TCJA tax cuts, a partial debt limit increase, cuts to Medicaid and SNAP, and major structural reforms across federal agencies. Senate Majority Leader John Thune (R-SD) has led hours of backroom negotiations, with particular focus on winning over Sen. Lisa Murkowski (R-AK), whose vote is likely to decide the bill’s fate. With Sens. Rand Paul (R-KY), Susan Collins (R-ME), and Thom Tillis (R-NC) opposed, Murkowski’s support—and a potential tie-breaking vote from Vice President JD Vance—could determine whether the bill advances or collapses. A vote could happen as early as Tuesday morning.

CANADA DROPS “TECH TAX”... President Trump is claiming victory as Canadian Prime Minister Mark Carney capitulated to meet his trade demands over the weekend. Carney ceded the “Digital Services Tax,” in turn saving American tech companies, including Google, Meta, and Amazon, billions. Canadian businesses are also celebrating the elimination of the tax, as the Canadian Chamber of Commerce claims it “would have fallen on Canadian consumers, businesses, and investors in the form of higher costs and hurt our economy at a critical time.” Axing the bill also likely saves Canadian businesses from Section 899, a “revenge tax” included in the “One Big, Beautiful Bill Act” that would have raised billions in taxes for Canadian companies invested in the United States. 

SENATE VOTES TO REMOVE AI REGULATION BAN TIED TO FEDERAL FUNDING… Early Tuesday morning, the Senate voted 99-1 to strike a proposal that would have barred states from regulating AI for up to a decade. The measure, which was set to be included in President Trump’s large tax and spending bill, tied broadband and AI infrastructure funding to states’ willingness to refrain from passing AI laws. Following bipartisan backlash from governors, safety advocates, and lawmakers, the provision was removed through an overnight amendment led by Senator Marsha Blackburn (R-TN) and Senator Maria Cantwell (D-WA).

SENATE BLOCKS EFFORT TO BOOST RURAL HEALTH FUNDING… The chamber voted 78-22 against Senator Susan Collins' proposed amendment which doubles the funding for rural hospitals from $25 billion to $50 billion. The Senator stresses, “rural providers, especially our rural hospitals and nursing homes, are under great financial strain right now, with many having recently closed and others being at risk of closing.” Despite the decline in rural healthcare, most Republicans and Democrats opposed the amendment, criticizing it as an insufficient fix which failed to address the deeper Medicaid cuts in the bill.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

Eight legislatures are in regular session.

WHAT WE'RE WATCHING: 

California lawmakers on Monday approved major changes to the California Environmental Quality Act, exempting nine types of construction from environmental review, including child care centers, advanced manufacturing and health clinics, among others. The bill narrows legal challenges under CEQA. Gov. Gavin Newsom (D) signed the bill Monday night.

Louisiana Gov. Jeff Landry (R) has signed legislation limiting the amount in damages someone can win after an automobile accident. The bill allows an insurance company to be reimbursed for medical claims paid on behalf of a plaintiff, but the injured person would not be eligible for additional compensation.

LAWMAKERS... IN OR OUT? 

The House... convenes tomorrow at 9:00 AM. The full schedule may be found here. 

The Senate... convenes today at 9:00 AM. The full schedule may be found here. 

HAPPENING ON THE HILL  

The House...  

Check back tomorrow for possible updates. 

The Senate...    

Check back tomorrow for possible updates.

BILLS OF INTEREST 

Rep. Keith Self introduced HR 4263 to enhance the competitiveness of the nuclear sector of the United States in foreign countries. 

Rep. Dave Min introduced HR 4256 to reauthorize the Digital Coast Act. 

Rep. Janice Schakowsky introduced HR 4262 to reauthorize programs related to health professions education. 

AT THE AGENCIES  

The U.S. Department of Labor 

The Department of Labor is awarding $84 million in grants to 50 states and territories to expand Registered Apprenticeship programs. The funding is intended for both traditional and emerging industries, such as technology, AI, advanced manufacturing, supply chain, transportation, building trades, and construction. 

The U.S. Department of the Treasury 

In accordance with President Trump’s executive order titled "Providing for the Revocation of Syria Sanctions,” the Office of Foreign Assets Control (OFAC) has lifted U.S. sanctions on Syria, thereby encouraging the country’s economic growth and the strengthening of its relationships with neighboring nations. 

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 

Administrator Loeffler wrote an op-ed in Fox News in support of President Trump’s “Big, Beautiful Bill.” She specifically noted her support for the 199A Pass-Through Deduction, eliminating tax on tips and overtime, encouraging domestic manufacturing, expanding the workforce, and getting rid of red tape. 

Want this email forwarded to you? Curious for more information? 

Subscribe to EIW Today to receive the morning newsletter directly in your own inbox!