EIW Today - May 15th, 2025

Prism Group's Daily Summary

SENATE REPORT ALLEGES SMALL BIZ PROGRAMS SUSCEPTIBLE TO CHINESE INFLUENCE… A new report from Senator Joni Ernst highlights concerns about potential foreign influence, particularly from China, within the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The report – flagged by the publication National Review - notes that hundreds of grant applications flagged for foreign risk were still approved across various federal agencies, with varying denial rates. In response, Ernst is proposing the INNOVATE Act to strengthen due diligence, define “foreign risk,” and improve coordination with the intelligence community to safeguard U.S. research funding.

NEW SUIT SEEKS TARIFF RELIEF…This week, five American small businesses urged the U.S. Court of International Trade to block President Trump’s “Liberation Day” tariffs. The companies argue that Trump exceeded his legal authority by using a national emergency declaration to impose sweeping tariffs on imports from countries with trade surpluses over the U.S.

CRYPTO STABLECOIN BILL EXPECTED BY MEMORIAL DAY… Democrats have raised major concerns about legislation regulating stablecoins — a type of cryptocurrency pegged to a fiat currency and less volatile than traditional cryptocurrencies. As a result, a vote on the bill was paused. Now, lawmakers are on track to reintroduce the legislation with revisions that address those conflicts by Memorial Day.

PRICES DROP, BUT PRESSURE REMAINS... Despite a significant drop in overall inflation to a four-year low following recent tariff rollbacks, certain everyday essentials continue to see sharp price increases. Coffee prices have surged nearly 10% due to droughts in Brazil and Vietnam. Beef is up too—10% for ground beef and 7% for steaks—after earlier drought-driven cattle sell-offs in the U.S. Car repair costs have also jumped 7.6%, fueled by complex vehicle tech and a shortage of skilled mechanics.

Meanwhile, small businesses are still feeling the pinch. Although President Trump’s decision to reduce tariffs on Chinese goods—from 145% to 30%—offers temporary relief, many owners say the 90-day pause brings little long-term clarity. With supply chains still shaky and costs high, businesses remain wary of placing new orders and warn that deeper issues persist despite headline improvements.

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: 

New York’s state budget includes a provision distributing $2 billion in “inflation refund checks” to residents this fall. Joint filers who make up to $150,000 will receive a $400 check; those who make up to $300,000 will receive a $300 check. The budget also increases the child tax credit about three-fold, to $1,000 for a family with a child under three years old.

LAWMAKERS... IN OR OUT? 

The House... convenes today at 9:00 AM. 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 TODAY, 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 Financial Services will hold a hearing TODAY, 5/15 at 10:00 AM entitled “Examining Treasury Market Fragilities and Preventative Solutions.”

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

Committee on Appropriations will hold a hearing TODAY, 5/15 at 10:00 AM entitled “Oversight Hearing – The U.S. Federal Trade Commission” 

Committee on Energy and Commerce will hold a hearing Tuesday, 5/20 at 10:00 AM entitled “The Fiscal Year 2026 Environmental Protection Agency Budget” 

The Senate...      

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

Committee on Small Business will hold a hearing Wednesday, 5/21 at 10:00 AM entitled “Fueling America’s Manufacturing Comeback” 

BILLS OF INTEREST 

Rep. Pete Sessions introduced HR 3417 to establish uniform accessibility standards for websites and applications of employers, employment agencies, labor organizations, joint labor-management committees, public entities, public accommodations, testing entities, and commercial providers.

Rep. Raul Ruiz introduced HR 3413 to require the Secretary of Health and Human Services to issue regulations to ensure due process rights for physicians before any termination, restriction, or reduction of the professional activity of such physicians or staff privileges of such physicians

Rep. Blake Moore introduced HR 3407 to amend the Internal Revenue Code of 1986 to exempt money accounts for growth and advancement – 'MAGA Accounts' – from taxation.

Rep. Debbie Dingell introduced HR 3391 to require the Secretary of Health and Human Services to establish reference prices for prescription drugs for purposes of Federal health programs. 

AT THE AGENCIES  

The U.S. Department of Labor 

The U.S. Department of Labor released the weekly unemployment insurance claims report. 

The U.S. Department of the Treasury 

Check back next week for possible updates.  

The U.S. Department of Commerce 

Check back next week for possible updates. 

The U.S. Trade Representative  

The U.S. Trade Representative released a statement praising the U.S.-UK Trade Deal. 

The U.S. Small Business Administration 

Check back next week for possible updates. 

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