EIW Today - May 20th, 2025

Prism Group's Daily Summary

PRESIDENT TRUMP TO ADDRESS DIVIDED HOUSE REPUBLICANS…President Donald Trump is set to meet with the House Republican Conference today to push for unity on the "One Big, Beautiful Bill." Speaker Mike Johnson needs the President's influence to coalesce support, as significant disagreements persist among GOP factions. The House Freedom Caucus seeks drastic cuts to social safety nets and the Inflation Reduction Act, while moderate Republicans are wary of the potential negative impacts on constituents and job creation. Key unresolved issues include the SALT deduction cap, changes to Medicaid's FMAP formula, and the phasing out of Inflation Reduction Act tax credits. President Trump's goal today will be getting Republicans to move past policy debates and vote on the package.

TECH HUB REVAMP… At the direction of the Secretary of Commerce, Howard Lutnick, the Commerce Department has announced a restructuring of the Tech Hubs program, prioritizing national security, project quality, benefit to the taxpayer, and a fair process. This restructure will result in a new notice of funding opportunity (NOFO) this summer with the goal of announcing recipients in early 2026. 

CRYPTO BILL PASSES THE SENATE… Last night, the Senate voted to advance the GENIUS Act, a bill that would regulate stablecoins, to be considered for final passage. Many argue that stablecoins, a type of cryptocurrency pegged to a fiat currency like the US Dollar, are the future of payments due to lower transaction and processing fees relative to payments with credit cards. Senate Majority Leader John Thune has committed to an open amendment process, meaning amendments such as the Credit Card Competition Act could be put forward. 

MARKETS HOLD STEADY DESPITE U.S. CREDIT DOWNGRADE… U.S. financial markets showed resilience following Moody's downgrade of the U.S. credit rating from Aaa to Aa1 due to concerns over rising national debt. Marking its sixth consecutive gain, the S&P 500 edged up 0.1%, while the Dow Jones increased by 0.3% and the Nasdaq remained nearly flat. Despite initial volatility, including a brief rise in the 30-year Treasury yield above 5%, investor confidence remained steady, bolstered by strong economic indicators and corporate earnings. Analysts noted that the downgrade was largely anticipated and had a limited long-term market impact.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

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

WHAT WE'RE WATCHING: 

The Oklahoma Senate approved legislation requiring digital asset kiosk operators, better known as crypto ATMs, to obtain licenses from the state Banking Department. The bill also requires disclosures of terms and conditions for use of the ATMs. It allows consumers who are victims of fraud to file a civil suit against the operator.

The Connecticut Senate has approved legislation requiring companies to disclose to consumers when AI systems are being used to make consequential decisions. The bill makes it a crime to disseminate unauthorized AI-generated images, but it does not include earlier provisions that restricted algorithmic discrimination. 

LAWMAKERS... IN OR OUT? 

The House... convenes today at 10:00 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 Oversight and Government Reform will hold a hearing TODAY, 5/20 at 10:00 AM entitled, “Mandates, Meddling, and Mismanagement: The IRA’s Threat to Energy and Medicine.”

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

Committee on Financial Services will hold a hearing TODAY, 5/20 at 10:00 AM entitled, “Day One: Markup of Various Measures.” 

Committee on Appropriations will hold a hearing TODAY, 5/20 at 10:00 AM entitled, “Budget Hearing - Department of the Interior.” 

Committee on Appropriations will hold a hearing TODAY, 5/20 at 10:00 AM entitled, “The Fiscal Year 2026 Environmental Protection Agency Budget.” 

Committee on Education and Workforce will hold a hearing TODAY, 5/20 at 10:15 AM entitled, “Empowering the Modern Worker.”

Committee on Small Business will hold a hearing TODAY, 5/20 at 3:00 PM entitled, “Small Business Showcase.”

Committee on Financial Services will hold a hearing Tomorrow, 5/21 at 10:00 AM entitled, “Day Two: Markup of Various Measures.” 

Committee on Appropriations will hold a hearing Tomorrow, 5/21 at 10:00 AM entitled, “Budget Hearing - U.S. Department of Education.” 

The Senate...      

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

Committee on Appropriations will hold a hearing Tomorrow, 5/21 at 2:30 PM entitled, “Hearings to examine proposed budget estimates for fiscal year 2026 for the Small Business Administration.”

Committee on Banking, Housing, and Urban Affairs will hold a hearing Thursday, 5/22 at 10:00 AM entitled, “Securing America: Key Authorities Under the Defense Production Act.”

BILLS OF INTEREST 

Rep. Burgess Ownes introduced HR 3499 to amend the Fair Labor Standards Act of 1938 to exempt certain employees engaged in outdoor recreational outfitting or guiding services from minimum wage and maximum hours requirements. 

Rep. Kimberlyn King-Hinds introduced HR 3496 to amend the Small Business Act for microloan eligibility for the Commonwealth of the Northern Mariana Islands. 

AT THE AGENCIES  

The U.S. Department of Labor 

Check back tomorrow for possible updates.  

The U.S. Department of the Treasury 

Check back tomorrow for possible updates.  

The U.S. Department of Commerce 

Secretary Lutnick released a statement announcing a revamp of the Tech Hubs program. 

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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