EIW Today - July 23rd, 2025

Prism Group's Daily Summary

PRESIDENT TRUMP STRIKES TRADE DEAL WITH JAPAN… The Trump administration has announced a sweeping trade deal with Japan – the most impressive one yet reached by the current administration. According to a post on Truth Social, Japan, the United States’ fifth largest trade partner, has agreed to invest $550 billion despite accepting a 15% tariff on Japanese exports. Given the financial distress automotive manufacturers have reported as a result of recent tariffs, a sticking point in the matter remains on whether the administration is still set to raise automotive tariffs to 25% on August 1. 

PRESIDENT TRUMP TURNS DOWN HEAT ON POWELL FOR NOW… President Trump said Tuesday he plans to let Federal Reserve Chair Jerome Powell finish his term, despite ongoing criticism over Powell’s reluctance to cut interest rates. Trump, who recently floated the idea of firing Powell, now says “he’s going to be out pretty soon anyway.” Treasury Secretary Scott Bessent also criticized the Fed this week, calling for a review of its expanding role and costly renovation project. Powell has defended the Fed’s actions and remains committed to serving out his term through May 2026.

PENDING BIPARTISAN BILL OFFERS TAX BREAKS FOR EMPLOYEE STOCK EQUITY…  Rep. Tom Suozzi (D-NY) unveiled the SHARE Plan Act (Share Holder Allocation for Rewards to Employees), which mandates a 3% corporate tax cut in exchange for companies distributing at least 5% of their stock to the lowest-paid 80% of their workforce. This bill employs a bipartisan approach by incentivising businesses with tax breaks to advance Democratic goals of minimizing socio-economic disparities. Reaching across the aisle, Rep. Mike Kelly (R-PA), the top Republican on the Ways and Means Tax Subcommittee, is co-spearheading the effort to move this bill to codification. 

SENATE ADVANCES MILITARY CONSTRUCTION, VA SPENDING BILL… The US Senate voted Tuesday evening to advance the typically bipartisan military construction and VA spending bill by a vote of 90 to 8. The legislation is the first appropriations bill for FY2026 to advance in the Senate, and includes $340M to support rural health care, $3.5B for the VA to assist caregivers, and $3.5B to provide services and housing to homeless veterans. It is important to note the legislation has only advanced forward, and is yet to be formally passed by the Senate, with an uphill battle for Republicans looming given the broad ideological spectrum of Democratic Senators who voted against the measure to push the bill forward.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

Eight legislatures are in regular session. Texas is in special session.

WHAT WE'RE WATCHING: 

New York Sen. Andrew Gounardes (D) has introduced legislation to require social media companies to allow users to turn off algorithms that control the content they see. A second Gounardes bill would require social media platforms to display a warning label.

Indiana was recently honored with the 2025 Frank Newman Award for State Innovation, a national award recognizing Indiana’s historic investments and advancements in literacy, as well as the development of an innovative, longitudinal data system known as the Indiana Graduates Prepared to Succeed (GPS) dashboard. The Frank Newman Award for State Innovation is presented by Education Commission of the States (ECS), a national nonprofit that connects state policymakers and supports education policymaking nationwide.

LAWMAKERS... IN OR OUT? 

The House... convenes today at 10:00 AM. The full schedule may be found here. 

The Senate... convenes today at 10:00 AM. The full schedule may be found here. 

HAPPENING ON THE HILL  

The House...  

Committee on Small Business, Oversight, Investigations, and Regulations Subcommittee will hold a hearing TODAY, July 23rd at 10:00 AM entitled, “American Resilience: Examining SBA Disaster Assistance Programs.”

Committee on Foreign Affairs will hold a hearing TODAY, July 23rd at 10:00 AM entitled, “FY26 State Department Posture: Bureau of Political Affairs.”

Committee on Ways and Means will hold a hearing Friday, July 25th at 10:00 AM entitled, “The One, Big, Beautiful Bill Delivering for American Workers – Las Vegas, Nevada.”

The Senate...    

Committee on Foreign Affairs will hold a hearing TODAY, July 23rd at 10:00 AM entitled, “Business Meeting.”

Committee on Foreign Affairs will hold a hearing TODAY, July 23rd IMMEDIATELY FOLLOWING THE BUSINESS MEETING entitled, “Dismantling Transitional Criminal Organizations in the Americas.” 

Committee on Natural Resources will hold a hearing TODAY, July 23rd at 10:00 AM entitled, “Full Committee Hearing to Identify Challenges to Meeting Increased Electricity Demand.”

Committee on Health, Education, and Labor Pensions, Subcommittee on Education and the American Family will hold a hearing TODAY, July 23rd at 2:00 PM entitled, “K-12 Subcommittee Hearing on Choice and Literacy: Empowering Families for Better Educational Results.”

Committee on Judiciary, Subcommittee on the Constitution will hold a hearing TODAY, July 23rd, 2025 entitled, “Ending Illegal DEI Discrimination & Preferences: Enforcing Our Civil Rights Laws.” 

Committee on Foreign Affairs will hold a hearing TODAY, July 23rd at 2:30 PM entitled, “US Diplomatic Strategies for a Dynamic Middle East.” 

Committee on Small Business and Entrepreneurship will hold a hearing TODAY, July 23rd at 2:30 PM entitled, “Innovation in the Crosshairs: Countering China’s Industrial Espionage.” 

Committee on Appropriations will hold a hearing Tomorrow, July 24th at 10:00 AM entitled, “Full Committee Markup of Interior, Environment and Transportation, Housing and Urban Development Appropriations Acts.” 

Committee on Health, Education, and Labor Pensions will hold a hearing Tomorrow, July 24th at 10:00 AM entitled, “Empowering Workers by Expanding Employee Ownership.”

Committee on Judiciary will hold a hearing Tomorrow, July 24th at 10:15 AM entitled, “Executive Business Meeting.” 

BILLS OF INTEREST

Sen. Rock Scott (R-FL) introduced S.2384 to monitor US investments in entities controlled by foreign adversaries. 

Sen. Peter Welch (D-VT) introduced S.2383 to exempt goods imported by small businesses from the duties imposed by President Trump’s national emergency declaration. 

Sen. Peter Welch (D-VT) introduced S.2372 to ensure the accessibility of drugs furnished through the drug discount program under the Public Health Service Act. 

AT THE AGENCIES  

The U.S. Department of Labor 

Check back tomorrow for possible updates. 

The U.S. Department of the Treasury 

Check back tomorrow for possible updates.

The U.S. Department of Commerce 

Check back tomorrow for possible updates.

The U.S. Trade Representative 

Yesterday, U.S. Trade Representative Jamieson Greer issued a statement following the Trump administration’s announcement of a Joint Statement between the United States and Indonesia for a Framework for an Agreement on Reciprocal Trade.  

The U.S. Small Business Administration 

The Small Business Administration is continuing to offer relief to Arkansas, Indiana, Idaho, and Missouri small businesses and private nonprofits affected by severe weather. 

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