EIW Today - May 22nd, 2025

Prism Group's Daily Summary

HOUSE GOP MOVES RECONCILIATION BILL… House Republicans narrowly passed a sweeping multitrillion-dollar tax package after an all-night session, with Speaker Mike Johnson uniting the GOP behind President Trump’s top legislative priority. The bill extends $4.5 trillion in Trump-era tax cuts and adds new breaks, while slashing green energy incentives and tightening work requirements for Medicaid and food stamp recipients. The bill now heads to the Senate for consideration.

SBA HALTS EXPANSION OF LOAN PROGRAM… The Small Business Administration announced it will stop approving new lenders for its Community Advantage loan program and require existing lenders to increase capital reserves, citing rising default rates. Originally launched to support underserved and mission-driven borrowers, the program saw rapid expansion under the Biden administration but now faces scrutiny over financial risk and lender performance. Critics and supporters alike say the move could further restrict access to capital for women-, minority-, and veteran-owned small businesses.

SENATE MOVES “NO TAX ON TIPS” BILL… On Tuesday the Senate - in a rare unanimous, bipartisan vote - approved the No Tax on Tips Act, which would create a federal deduction of up to $25,000 for certain tipped workers. Though largely a “messaging bill,” it nonetheless illustrates broad support for the provision, which the House reconciliation bill would sunset after just four years. 

SENATORS WEIGHING CREDIT CARD AMENDMENT TO CRYPTO BILL… Senators Roger Marshall (R-KS) and Dick Durbin (D-IL) may seek to include the Credit Card Competition Act (CCCA) as an amendment to the GENUIS Act, which regulates stablecoins (a type of cryptocurrency pegged to a fiat currency). One of the benefits of stablecoins is reduced transaction fees relative to credit card transaction fees, and the CCCA would prohibit card issuers from restricting the number of networks available to merchants for processing credit card fees. 

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: 

More than 30 states currently offer tax incentives for data centers, and some are bolstering incentive programs to attract more of those projects. Lawmakers in Kansas, Kentucky, Minnesota, Mississippi, North Dakota, Oklahoma and West Virginia all introduced bills this year to create or expand data center incentive programs. Demand for data center capacity is projected to rise about 20% annually through 2030.

The Illinois Senate has approved legislation barring community colleges from using AI programs instead of human instructors to teach classes. The bill would allow faculty to use AI to “augment course instruction.”

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...  

Check back next time for possible updates.  

The Senate...   

Committee on Appropriations will hold a hearing TODAY, 5/22 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 TODAY, 5/22 at 10:00 AM entitled, “Securing America: Key Authorities Under the Defense Production Act.”

BILLS OF INTEREST 

Rep. Joe Neguse introduced HR 3557 to amend the Small Business Act to waive the accrual of interest and payments for certain disaster loans for a year. 

AT THE AGENCIES  

The U.S. Department of Labor 

Check back next time for possible updates.  

The U.S. Department of the Treasury 

Check back next time 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 next time for possible updates.  

The U.S. Small Business Administration 

The SBA has launched an "Onshoring Portal" to help small business find domestic suppliers.

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