EIW Today - June 3rd, 2025

Prism Group's Daily Summary

HOUSE TURNS FOCUS TO SMALL BIZ LEGISLATION… The House will vote this evening on several suspension bills, the majority of which were approved by the Small Business Committee. The measures are largely focused on enhancing oversight and transparency in SBA programs, a broader goal of Administrator Loeffler and the Trump administration as a whole. Later in the week the chamber will vote on three additional small business-focused bills: H.R. 2931 (relocates SBA offices from “sanctuary jurisdictions”), H.R. 2987 (caps the number of SBLC licenses), and H.R. 2966 (codifies language from a previous executive order language regarding SBA loan eligibility). 

U.S. SMALL BUSINESS JOB GROWTH REMAINS LARGELY UNCHANGED IN MAY… In May, small business employment across the U.S. remained steady, signaling resilience in the face of broader economic uncertainty, according to Paychex’s latest Small Business Employment Watch. Despite little change in job growth, wage gains for small business workers continued to decelerate, reaching a four-year low of 2.77%—a trend that could relieve some inflationary pressure for employers but also signal tighter margins for employees. Notably, the Midwest maintained its position as the strongest region for job growth, while the West continued to trail behind. Industries like construction and leisure and hospitality experienced the slowest momentum, highlighting the uneven recovery across sectors. For small business owners, this data reflects a cautiously stable labor market with moderating wage inflation—both critical metrics as they plan for the second half of 2025.

CREDIT CARD COMPETITION ACT BATTLE HEATS UP… As Senate Majority Leader John Thune (R-SD) has kept the amendment process open for the GENIUS Act, which would regulate stablecoins, allowing Senators Marshall (R-KS) and Durbin (D-IL) to call an amendment vote on the Credit Card Competition Act (CCCA). The CCCA would require credit card issuers to utilize at least one other credit card processing network other than Visa or Mastercard. Proponents say that the CCCA will reduce credit card swipe fees, especially as stablecoins become mainstream and offer lower transaction costs. Opponents say that the CCCA will cause consumers to lose their credit card rewards or a drop in credit limits.

PRESIDENT TRUMP & PRESIDENT XI SET FOR A TRADE TALK TANGO… Treasury Secretary Scott Bessent expressed confidence that the U.S. and China will resolve their trade disagreements during an anticipated conversation between President Trump and President Xi Jinping. The two ​​are expected to hold a phone call this week to address escalating trade tensions between the U.S. and China. While no exact date has been confirmed, White House officials anticipate the conversation will occur before Sunday, June 8, 2025.This follows President Trump's accusation that China violated a recent trade agreement, which had temporarily eased tariffs between the two nations. Bessent emphasized the importance of direct communication to address these issues. Despite the tensions, he remains optimistic about reaching a resolution through upcoming discussions.

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: 

California lawmakers are advancing legislation to overhaul the California Environmental Quality Act, or CEQA. One measure would exempt urban housing developments from the landmark law, and another would loosen rules for most other developments. Gov. Gavin Newsom (D) endorsed the rollbacks by adding them to his proposed budget.

The Texas legislature has given final approval to a measure increasing the amount of tax credits available to film and television productions to $300 million. That’s up from the state’s current allocation of $200 million every two years.

LAWMAKERS... IN OR OUT? 

The House... convenes today at 12:00 PM. 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 will hold a hearing Tomorrow, 6/04 at 10:00 AM entitled, “Budgeting for Growth: Testimony from SBA Administrator Kelly Loeffler.”

Committee on Financial Services will hold a hearing Tomorrow, 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 Tomorrow, 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 Tomorrow, 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 TODAY, 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 TODAY, 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 TODAY, 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 TODAY, 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 Tomorrow, 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 Tomorrow, 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. Roger Williams introduced HR 3672 to expand the research report exception to include reports about any issuer that undertakes a proposed offering of public securities. 

AT THE AGENCIES  

The U.S. Department of Labor 

The U.S. Department of Labor announced the launch of its opinion letter program. This expands the department’s longstanding commitment to providing meaningful compliance assistance that helps workers, employers and other stakeholders understand how federal labor laws apply in specific workplace situations.   

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  

Check back tomorrow for possible updates. 

The U.S. Small Business Administration 

Check back tomorrow for possible updates. 

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