EIW Today - June 26th, 2025

Prism Group's Daily Summary

PARLIAMENTARIAN BLOCKS KEY GOP MEDICAID CUTS IN TAX PACKAGE NEGOTIATIONS…Republicans suffered a major setback after the Senate parliamentarian ruled that several Medicaid-related provisions in their “megabill” cannot pass under budget reconciliation rules, and adds to the growing list of nonconforming policies. These provisions, including a high-profile plan to curb state Medicaid provider taxes and exclude undocumented residents, were central to generating savings to offset the cost of tax cuts and other policy priorities. The ruling not only complicates GOP leaders’ efforts to finalize the “One Big, Beautiful Bill” but also reignites internal party tensions over how far to go on Medicaid reforms. Long story short, the self-imposed July 4 deadline to sign the final bill into law is looking increasingly unlikely.  

REPUBLICAN SENATORS PUSH TO STRIP AI PROVISION FROM RECONCILIATION PACKAGE… Republican resistance is mounting against a provision in the GOP Reconciliation Bill that would stop states from regulating artificial intelligence. Led by Senator Marsha Blackburn (R-TN), several GOP Senators, including Josh Hawley (MO) and Rand Paul (KY), are urging Senate leaders to strip the language, citing concerns over states' rights and infringements on local laws, such as Tennessee’s ELVIS Act. While Senator Ted Cruz (R-TX) defends the measures as necessary for national consistency, bipartisan momentum is growing to remove it. Amid the debate, outside voices have started to weigh in. DuckDuckGo’s CEO, Gabriel Weinberg, opposes the federal regulation, calling it “dangerous,” while Big Tech allies and venture capital groups are lobbying to keep the provision in place. 

PRESIDENT TRUMP CLAIMS HE HAS POWELL’S SUCCESSORS LINED UP… President Trump said on Wednesday he has already narrowed down his list of potential replacements for Fed Chair Jerome Powell to “three of four people.” While President Trump has previously said he has “no intention” of firing Powell prior to his term ending in May 2026, the President has recently speculated on social media that he may be thinking otherwise as the two continue to tussle over the Fed’s handling of interest rates. With the Fed operating under the assumption that the President's tariffs will likely trigger price increases, and thus holding rates steady, the pressure from our commander-in-chief on the Fed Chair will conceivably continue to mount. 

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

Twelve legislatures are in regular session.

WHAT WE'RE WATCHING: 

The Michigan House is considering legislation to require developers of large AI models to implement safety and security protocols to prevent “critical risk” that causes the deaths of more than 100 people or damages amounting to more than $100 million. The bill would apply to AI systems that cost more than $100 million to develop. 

Oregon House Speaker Julie Fahey (D) has introduced a proposed transportation budget to raise $11.7 billion by 2035 through increased gas taxes and DMV fees. The bill, a pared-down version of one that sputtered earlier this session, would also enact a per-mile charge on EV users. 

LAWMAKERS... IN OR OUT? 

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

The Senate... convenes today at 3:30 PM. The full schedule may be found here. 

HAPPENING ON THE HILL  

The House...  

Committee on Finance will hold a hearing TODAY, 6/26 at 10:00 AM entitled, “From Watchdog to Attack Dog: Examining the CFPB’s Chopra-era Assault on Disfavored Industries.”

Committee on Foreign Affairs, South and Central Asia Subcommittee will hold a hearing TODAY, 6/26 at 10:00 AM entitled, “Assessing the Terror Threat Landscape in South and Central Asia and Examining Opportunities for Cooperation.”

Committee on Natural Resources, Federal Lands Subcommittee will hold a hearing TODAY, 6/26 at 10:00 AM entitled, “Oversight Hearing.”

Committee on Energy and Commerce, Commerce, Manufacturing, and Trade Subcommittee will hold a hearing TODAY, 6/26 at 10:00 AM entitled, “CMT Hearing: Looking Under the Hood: The State of NHTSA and Motor Vehicle Safety.”

Committee on Energy and Commerce, Environment Subcommittee will hold a hearing TODAY, 6/26 at 10:00 AM entitled, “Environment Hearing: A Decade Later: A Review of Congressional Action, Environmental Protection Agency Rules, and Beneficial Use Opportunities for Coal Ash.”

The Senate...    

Committee on Health, Education, Labor, and Pensions will hold a hearing TODAY, 6/26 at 9:30 AM entitled, “Nominations.”

Committee on the Judiciary will hold a hearing TODAY, 6/26 at 10:15 AM entitled, “Executive Business Meeting.”

Committee on Banking, Housing, and Urban Affairs, Defense Subcommittee will hold a hearing TODAY, 6/26 at 10:30 AM entitled, “A Review of the President’s Fiscal Year 2026 Budget Request for the Air Force and Space Force.”

BILLS OF INTEREST 

Rep. Russell Fry (R-SC-7) introduced HR 4128 to expand advanced manufacturing production credits to include distribution transformers. 

Rep. Jared Moskowitz (D-FL-23) introduced HR 4142 to protect the US government from foreign adversary AI.

Sen. Josh Hawley (R-MO) introduced S.2169 to require the development of a comprehensive rural hospital cybersecurity workforce development strategy. 

Rep. Mike Levin (D-CA-49) introduced HR 4136 to establish an Office of Public Engagement and Participation within the Nuclear Regulatory Commission. 

Rep. Diana Harshbarger (R-TN-1) introduced HR 4132 to provide for digital communication of prescribing information for drugs, including biological products. 

AT THE AGENCIES  

The U.S. Department of Labor 

The Department of Labor released its Unemployment Insurance Weekly Claims Report. 

The U.S. Department of the Treasury 

The U.S. Treasury, under the FEND Off Fentanyl Act, has identified three Mexico-based financial institutions – CIBanco, Intercam Banco, and Vector Casa de Bolsa– as primary money laundering concerns for aiding fentanyl-trafficking cartels. These institutions facilitated millions in illicit transactions, including payments for precursor chemicals from China. As a result, U.S. financial institutions are now prohibited from conducting transactions with them, starting 21 days after the orders are published. 

The U.S. Department of Commerce 

Paul Dabbar has been confirmed as the Deputy Secretary of the U.S. Department of Commerce in a 56-40 vote. He will serve as the Department’s Chief Operating Officer, and is also a member of the President’s Management Council. Previously, Mr. Dabbar was President and CEO of Bohr Quantum Technology. 

The U.S. Trade Representative 

Check back tomorrow for possible updates. 

The U.S. Small Business Administration 

The Small Business Administration announced relief for Oregon, Connecticut, and Maryland small businesses and private nonprofits affected by extreme weather. It also has amended its disaster declaration for Arkansas and Missouri. 

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

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