EIW Today - June 16th, 2025

Prism Group's Daily Summary

TAX SECTION ON TRACK FOR MONDAY UNVEILING, ALBEIT WITH SOME GAPS… Senate Finance Republicans are expected to unveil their long-awaited tax language today, but major provisions — including the cap on state and local tax (SALT) deductions, President Trump’s proposed tax breaks on tips and overtime, and key business incentives — will likely be left as placeholders amid ongoing negotiations. Senate Majority Leader John Thune signaled a compromise on SALT is in the works, though there’s little appetite to fully match the House’s $40,000 cap. Meanwhile, Republicans aim to preserve permanent business tax incentives, revise clean energy credit phaseouts, and navigate politically sensitive Medicaid cuts. With the Senate facing a short week due to the Juneteenth holiday, time is tight to clear procedural hurdles and send the “One Big Beautiful Bill” to Trump’s desk by July 4.

EU PREPARED TO OFFER FLAT 10% TARIFF… The European Union is proposing a flat 10% tariff on all exports to the U.S. to avoid higher duties on vehicles, pharmaceuticals, and electronics. EU negotiators are also willing to lower tariffs on U.S.-made cars, ease regulations to help U.S. auto manufacturers enter the European market, and ban Russian natural gas imports to boost demand for U.S. energy. U.S. officials have not yet reviewed the proposals.

STEEL DEAL, NATIONAL SEAL OF APPROVAL… The Trump administration has approved Nippon Steel’s $15 billion purchase of U.S. Steel, but only under a national security agreement granting the U.S. a “golden share” with veto power over key decisions like plant closures or foreign board influence. The deal includes at least $11 billion in domestic investment by 2028, with officials projecting it could reach $28 billion through new infrastructure projects. Nippon Steel has committed to keeping U.S. Steel’s headquarters in Pittsburgh, preserving American board control, and protecting jobs. However, the United Steelworkers union remains skeptical, citing a lack of clarity and accusing President Trump of reversing his pledge to block the foreign acquisition.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

Sixteen legislatures are in regular session. Maine is in special session.

WHAT WE'RE WATCHING: 

California lawmakers on Friday approved a $325 billion state budget that relies more on borrowing than spending cuts to close a $12 billion budget deficit. Lawmakers and Gov. Gavin Newsom (D) must reach agreement on a budget deal by July 1.

Oregon lawmakers have approved legislation limiting annual rent increases on manufactured home parks and for floating homes at marinas. The bill would limit yearly rent increases to 6%, and to 7% plus inflation or 10%, whichever is less, at smaller parks and marinas.

LAWMAKERS... IN OR OUT? 

The House... convenes tomorrow at 11:00 AM. The full schedule may be found here. 

The Senate... convenes today at 4:00 PM. The full schedule may be found here. 

HAPPENING ON THE HILL  

The House...  

Check back tomorrow for possible updates. 

The Senate...    

Committee on the Judiciary will hold a hearing Tomorrow, 6/17 at 10:15 AM entitled “Scammers Exposed: Protecting Older Americans from Transnational Crime Networks.”

President’s Fiscal Year 2026 Budget for the Department of Treasury and Tax Reform.”

Committee on Appropriations will hold a hearing Tomorrow, 6/17 at 10:30 AM entitled “A Review of the President’s Fiscal Year 2026 Budget Request for Military Construction and Family Housing.”

Committee on Appropriations, Subcommittee will hold a CLOSED hearing Tomorrow, 6/17 at 10:30 AM entitled “A Review of the President’s Fiscal Year 2026 Budget Request for the Intelligence Community.”

Committee on Energy and Natural Resources will hold a hearing Wednesday, 6/18 at 10:00 AM entitled “Full Committee Hearing to Examine the President's Budget Request for the U.S. Department of Energy for Fiscal Year 2026.”

Committee on Health, Education, Labor, and Pensions will hold a hearing Wednesday, 6/18 at 10:00 AM entitled “Nominations of Jonathan Berry to be Solicitor, Department of Labor, Andrew Rogers to be Administrator of the Wage and Hour Division, Department of Labor, Anthony D’Esposito to be Inspector General, Department of Labor and Andrea Lucas to be a Member, Equal Employment Opportunity Commission.”

Committee on Appropriations, Subcommittee will hold a hearing Wednesday, 6/18 at 10:00 AM entitled, “A Review of the President’s Fiscal Year 2026 Budget Request for the Army.”

Committee on the Judiciary will hold a hearing Wednesday, 6/18 at 10:15 AM entitled, "Executive Business Meeting.” 

Committee on the Judiciary will hold a hearing Wednesday, 6/18 at 10:15 AM immediately following the Executive Business Meeting entitled, “Unfit to Serve: How the Biden Cover-Up Endangered America and Undermined the Constitution Type:Full Committee Hearing.”

Committee on Foreign Relations will hold a hearing Wednesday, 6/18 at 10:30 AM entitled “Business Meeting.”

Committee on Foreign Relations will hold a hearing Wednesday, 6/18 immediately following the Business Meeting entitled, “NATO Summit 2025: An Assessment of Transatlantic Security Cooperation.” 

BILLS OF INTEREST 

Rep. Emanuel Cleaver (D-MO-5) introduced HR 4011 to award grants to eligible entities to support paramedicine programs in primarily rural areas. 

Rep. Gabe Vasquez (D-NM-2) introduced HR 4003 to direct the Secretary of Commerce to develop a national strategy to spur economic development in border communities.

Rep. Bobby Scott (D-VA-3) introduced HR 3997 to protect children from unsafe child labor and oppressive workplaces. 

Rep. Jimmy Panetta introduced HR 3990 to expand Medicaid to allow it to provide improved assistance to families affected by disaster or emergency.

AT THE AGENCIES  

The U.S. Department of Labor 

Secretary Lori Chavez-DeRemer announced that over $4.4 billion in unspent and unusable COVID-era funding has been returned to the U.S. Department of Treasury’s General Fund. This marks the completion of a reconciliation process that began in March, when $1.4 billion was returned to taxpayers. 

The U.S. Department of the Treasury 

Secretary Scott Bessent spoke before the Senate Finance Committee highlighting the initiatives of the Treasury to follow President Trump’s economic agenda on tax and trade. He praised the Treasury for cutting costs at the IRS and improving efficiency, and emphasizes the Big Beautiful Bill’s theorized effect on tax. 

The U.S. Department of Commerce 

The Department of Commerce announced that Micron Technology, Inc., plans to invest $200 billion to strengthen American memory chip production. Micron Technology, Inc. is the leading American semiconductor memory company, and this investment will go toward semiconductor manufacturing and R&D. 

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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