EIW Today - May 12th, 2025

Prism Group's Daily Summary

U.S. AND CHINA SLASH TARIFFS FOR 90 DAYS, EASING TRADE TENSIONS… The United States and China have agreed to sharply reduce tariffs on each other’s goods for 90 days following high-level talks in Geneva, signaling a temporary de-escalation in their protracted trade war. U.S. tariffs on Chinese imports will drop from 145% to 30%, while China will cut its tariffs on U.S. goods from 125% to 10% and suspend certain retaliatory measures. While both sides tout the agreement as progress, analysts warn it is a short-term pause rather than a resolution to the deeper structural disputes driving economic decoupling.

A BIG WEEK FOR REPUBLICANS’ RECONCILIATION BILL… House Republican leaders are hoping to firm up key elements of their broad tax and spending cut bill this week, with three high-stakes committee markups scheduled over the next few days. On Tuesday the tax-writing Ways & Means Committee will consider some $4 trillion in spending cuts; the panel released a “pre-mark” draft on Friday and says the remaining legislative text will be unveiled later today. The Energy & Commerce and Agriculture committees will also convene this week to discuss reforms to Medicaid and the SNAP program with the goal of finding over $1 trillion in cost savings. 

DEBT LIMIT PROJECTED TO HIT IN AUGUST… Late last week, Treasury Secretary Bessent sent a letter to Congressional leaders notifying them that the nation will not have enough money to pay its bills by August, during Congress’ Summer recess. The letter urges lawmakers to increase or suspend the debt ceiling by July, putting more pressure on the GOP to pass its reconciliation bill.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

Twenty-nine states are in regular session. Maine is in special session.

WHAT WE'RE WATCHING: 

The Colorado legislature is likely to reconvene for a special session to amend AI legislation passed last year that requires companies to tell consumers when AI systems are being used. Senate Majority Leader Robert Rodriguez (D) presented his amended plan late in this year’s session, without enough time to get it done.

Vermont lawmakers are nearing final passage of omnibus housing legislation. The bill would increase financing for housing projects in smaller towns and raise thresholds for legal challenges to new housing projects. The state budget allocates $15 million for two pandemic-era development programs that have since run out of money.

LAWMAKERS... IN OR OUT? 

The House... convenes today at 2:00 PM. 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 Energy and Commerce will hold a hearing Wednesday, 5/13 at 2:00 PM entitled, “Full Committee Markup of Budget Reconciliation Text.” 

Committee on Small Business will hold a hearing Wednesday, 5/14 at 10:00 AM entitled, “Oversight Hearing – The Cybersecurity and Infrastructure Security Agency.” 

Committee on Financial Services will hold a hearing Wednesday, 5/14 at 10:00 AM entitled, “Expanding Choice and Increasing Supply: Housing Innovation in America.” 

Committee on Financial Services will hold a hearing Wednesday, 5/14 at 10:00 AM entitled, “Enhancing Competition: Shaping the Future of Bank Mergers and De Novo Formation.”

Committee on Financial Services will hold a hearing Wednesday, 5/14 at 10:00 AM entitled, “Examining Treasury Market Fragilities and Preventative Solutions.” 

Committee on Appropriations will hold a hearing Wednesday, 5/14 at 9:30 AM entitled “Budget Hearing – U.S. Department of Health and Human Services.” 

Committee on Appropriations will hold a hearing Wednesday, 5/14 at 10:00 AM entitled “Budget Hearing – U.S. Department of Transportation.” 

Committee on Small Business will hold a hearing Wednesday, 5/14 at 10:00 AM entitled “Investing in America: How Private Equity Empowers Main Street.” 

Committee on Small Business will hold a hearing Thursday, 5/15 at 10:00 AM entitled “A Small Part in A Big Company: Examining the Power of Franchising in the American Economy.” 

Committee on Appropriations will hold a hearing Wednesday, 5/15 at 10:00 AM entitled “Budget Hearing – U.S. Department of Labor” 

The Senate...      

Committee on Judiciary will hold a hearing Tuesday, 5/13 at 10:15 AM entitled, “PBM Power Play: Examining Competition Issues in the Prescription Drug Supply Chain.” 

Committee on Appropriations will hold a hearing Wednesday, 5/14 at 10:30 AM entitled, “A Review of the President's Fiscal Year 2026 Budget Request for the Environmental Protection Agency.” 

Committee on Judiciary will hold a hearing Wednesday, 5/14 at 2:30 PM entitled, “Foreign Threats to American Innovation and Economic Leadership.” 

Committee on Appropriations will hold a hearing Wednesday, 5/14 at 3:00 PM entitled, “A Review of the Fiscal Year 2026 Budget Requests for the Senate Sergeant at Arms and United States Capitol Police.” 

Committee on Finance will hold a hearing Wednesday, 5/14 at 10:00 AM entitled, “Nominations of James O’Neill to serve as Deputy Secretary of Health and Human Services, and Janette Nesheiwat to serve as Medical Director in the Regular Corps of the Public Health Service and Surgeon General of the Public Health Service.” 

Committee on Health, Education, Labor & Pensions will hold a hearing Wednesday, 5/14 at 1:30 PM entitled, “Fiscal Year 2026 Department of Health and Human Services Budget.” 

Committee on Small Business & Entrepreneurship will hold a hearing Wednesday, 5/14 at 2:30 PM entitled, “Financing America's Manufacturing and Industrial Boom.”  

Committee on Appropriations will hold a hearing Thursday, 5/15 at 10:00 AM entitled, “A Review of the President’s Fiscal Year 2026 Budget Request for the Department of Transportation.” 

Committee on Judiciary will hold a hearing Thursday, 5/15 at 10:15 AM entitled, “Executive Business Meeting.” 

BILLS OF INTEREST 

Rep. Daniel Goldman introduced HR 3320 to increase Federal Medicaid funding for States that provide intensive community-based services for adults with serious mental illness. 

Rep. Carlos Gimenez introduced HR 3319 to amend the McKinney-Vento Homeless Assistance Act with respect to the definition of homeless individuals.  

Rep. Troy Downing introduced HR 3318 to require the reorganization of certain offices within the Securities and Exchange Commission. 

AT THE AGENCIES  

The U.S. Department of Labor 

The U.S. Department of Labor has filed suit against the U.S. Postal Service for wrongful termination of an employee who fell while delivering mail and reported the work-related injury. 

The U.S. Department of the Treasury 

The U.S. Department of the Treasury announced its intent to launch a Fast Track Pilot Program for Foreign Investors. 

The U.S. Department of Commerce 

The Department of Commerce together with USTR announced a Historic Trade Deal with the United Kingdom to Open Markets, Raise Revenue and Strengthen Security. 

The U.S. Trade Representative  

United States Seeks Mexico’s Review of Alleged Denial of Workers’ Rights at Amphenol Optimize México, S.A. de C.V. 

The U.S. Small Business Administration 

Check back tomorrow for more updates.  

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