EIW Today - June 2nd, 2025

Prism Group's Daily Summary

SENATE TAKES UP “ONE BIG BEAUTIFUL BILL”… Senate Republicans are entering a pivotal stretch as they attempt to unify their caucus to pass a sweeping reconciliation bill, with Majority Leader John Thune working to secure 51 GOP votes. Internal GOP divisions are surfacing, with budget hawks like Sen. Ron Johnson demanding deeper spending cuts, while moderates such as Senators Susan Collins and Josh Hawley resist changes to Medicaid. Key players including Sen. Mike Crapo, who oversees tax and Medicaid policy, and Sen. Markwayne  Mullin, who liaises with House Republicans, are central to navigating the party's competing priorities.

THE IMPACT OF UNPREDICTABLE TARIFFS ON SMALL BUSINESSES… Small businesses that rely on importing goods from China are facing increasing pressure as new tariffs — as high as 135% — continue to loom. Despite a temporary 90-day reduction to 30%, legal back-and-forth and lack of Congressional engagement have left small firms in limbo. Many of these businesses, which create jobs and economic activity in every U.S. state, say the uncertainty is unsustainable and call for more tailored support. A recent court ruling briefly suspended the tariffs, but it was quickly overturned, leaving small importers caught between rising costs and unclear policy. As trade tensions rise, these companies need more than temporary relief — they need long-term solutions that reflect their outsized role in the American economy.

SENATE SHOWDOWN LOOMS OVER TRUMP TAX CUTS AND FILIBUSTER FIGHT... House-passed legislation advancing Trump’s agenda—especially the push to make his 2017 tax cuts permanent—is headed for a high-stakes clash in the Senate. Democrats argue the move violates the Byrd Rule by increasing deficits beyond the 10-year budget window and are urging the parliamentarian to block it. Republicans say Budget Chair Lindsey Graham can set the baseline to treat the cuts as current policy, making them budget-neutral. If GOP leaders bypass the parliamentarian again—like they did to repeal California’s EV mandate—Democrats warn it could pave the way for ending the legislative filibuster entirely.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

Twenty-one states are in regular session. Maine and Mississippi are in special session.

WHAT WE'RE WATCHING: 

The Texas House has approved a measure establishing regulations on the use of AI systems in government, banning government agencies from using AI for “social scoring.” The measure bans AI systems built with an intent to discriminate and preempts local AI ordinances.

Colorado Gov. Jared Polis (D) has vetoed a measure banning the use of computer algorithms to set rent prices. Polis said the bill would unintentionally ban the use of legitimate technologies by landlords; he said collusion to bolster rent prices are already illegal under state antitrust laws.

LAWMAKERS... IN OR OUT? 

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

The Senate... convenes today at 3:00 PM. The full schedule may be found here. 

HAPPENING ON THE HILL  

The House...  

Committee on Small Business will hold a hearing Wednesday, 6/04 at 10:00 AM entitled, “Budgeting for Growth: Testimony from SBA Administrator Kelly Loeffler.”

Committee on Financial Services will hold a hearing Wednesday, 6/04 at 10:00 AM entitled, “American Innovation and the Future of Digital Assets: From Blueprint to a Functional Framework.”

Committee on Energy and Commerce will hold a hearing Wednesday, 6/04 at 10:30 AM entitled, “AI in the Everyday: Current Applications and Future Frontiers in Communications and Technology.”

Committee on Appropriations will hold a hearing Wednesday, 6/04 at 2:00 PM entitled, “Budget Hearing – Office of Management and Budget.”

Committee on Financial Services will hold a hearing Thursday, 6/05 at 10:00 AM entitled, “Framework for the Future: Reviewing Data Privacy in Today’s Financial System.”

Committee on Small Business will hold a hearing Thursday, 6/05 at 10:00 AM entitled, “Investing in America: How Private Equity Empowers Main Street.”

Committee on Appropriations will hold a hearing Thursday, 6/05 at 11:00 AM entitled, “Budget Hearing – Fiscal Year 2026 Request for the Department of Commerce.”

The Senate...    

Committee on Finance will hold a hearing Tomorrow, 6/03 at 9:30 AM entitled, “Open Executive Session to Consider Favorably Reporting the Nomination of William Long, of Missouri, to be Commissioner of Internal Revenue for the remainder of the term expiring November 12, 2027.”

Committee on Appropriations will hold a hearing Tomorrow, 6/03 at 10:00 AM entitled, “A Review of the President’s Fiscal Year 2026 Budget Request for the Department of Education.”

Committee on Finance will hold a hearing Tomorrow, 6/03 at 10:30 AM entitled, “Hearing to Consider the nominations of Joseph Barloon, of Maryland, to be a Deputy United States Trade Representative (Geneva Office), with the rank of Ambassador, vice Maria Pagan, resigned; Janet Dhillon, of Virginia, to be Director of the Pension Benefit Guaranty Corporation for a term of five years, vice Gordon Hartogensis, term expired; and Brian Morrissey, Jr., of Virginia, to be General Counsel for the Department of the Treasury, vice Neil Harvey MacBride.”

Committee on Appropriations will hold a hearing Tomorrow, 6/03 at 2:30 PM entitled, “A Review of the President’s Fiscal Year 2026 Budget Request for the Securities and Exchange Commission.”

Committee on Appropriations will hold a hearing Wednesday, 6/04 at 10:00 AM entitled, “A Review of the President’s Fiscal Year 2026 Budget Request for the Department of Commerce.”

Committee on Health, Education, Labor, and Pensions will hold a hearing Wednesday, 6/04 at 10:00 AM entitled, “Reauthorization of the Over-the-Counter Monograph Drug User Fee Program.”

Committee on Health, Education, Labor, and Pensions will hold a hearing Thursday, 6/05 at 10:00 AM entitled, “Nominations of Penny Schwinn to be Deputy Secretary of Education, Department of Education, Kimberly Richey to be Assistant Secretary for Civil Rights, Department of Education, Daniel Aronowitz to be Assistant Secretary of Labor for the Employee Benefits Security Administration, Department of Labor and David Keeling to be Assistant Secretary of Labor for the Occupational Safety and Health Administration.”

Committee on Judiciary will hold a hearing Thursday, 6/05 at 10:15 AM entitled, “Executive Business Meeting.”

BILLS OF INTEREST 

Rep. Daniel Meuser introduced HR 3645 to amend the Securities Act of 1933 to raise the offering amount threshold for when issuers using the crowdfunding exemption are required to file financial statements reviewed by a public accountant who is independent of the issuer.

Rep. French Hill introduced HR 3633 to provide for a system of regulation of the offer and sale of digital commodities by the Securities and Exchange Commission and the Commodity Futures Trading Commission.

AT THE AGENCIES  

The U.S. Department of Labor 

Check back tomorrow for possible updates.  

The U.S. Department of the Treasury 

The U.S. Department of the Treasury released a request for information related to the Executive Order 14247 “Modernizing Payments To and From America’s Bank Account.” 

The U.S. Department of Commerce 

Check back tomorrow for possible updates. 

The U.S. Trade Representative  

The Office of the United States Trade Representative announced the extension of exclusions in the Section 301 Investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.

The U.S. Small Business Administration 

Check back tomorrow for possible updates. 

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