EIW Today - May 5th, 2025

Prism Group's Daily Summary

BICAMERAL BILL PROPOSES PERMANENT REAUTHORIZATION AND EXPANSION OF SBIR/STTR PROGRAMS... Ranking Members of the House and Senate Small Business Committees introduced bicameral SBIR/STTR reauthorization legislation on May 1. The SBIR/STTR Reauthorization Act of 2025 would make the programs permanent and increase budget allocations to 7% for SBIR and 1% for STTR (current allocations are 3.2% and .45%, respectively). The legislation would also establish measures to broaden participation and continue foreign due diligence programs to safeguard against potential threat of funded IP by foreign entities. Senate Small Business Committee Ranking Member Ed Markey (D-MA) wrote an op-ed today, outlining why Congress must make the programs permanent. Senate Small Business Chair Joni Ernst (R-IA) did not make the program permanent in legislation she introduced in March. 

WHITE HOUSE SHUTS DOWN SMALL BIZ TARIFF CARVEOUT… At a press briefing last week, Deputy Chief of Staff Stephen Miller dismissed calls for immediate tariff relief for small businesses, instead emphasizing tax cuts for companies that relocate operations to the U.S. Miller argued that the administration's proposed tax plan — including 100% expensing for domestic investment — would ultimately benefit small businesses more than lifting tariffs.

COMMERCE SECRETARY LUTNICK DOUBLES DOWN ON DE MINIMIS REPEAL... At a cabinet meeting last week, Commerce Secretary Howard Lutnick praised President Trump’s decision to do away with the duty-free de minimis treatment for specified imports, touting what he described as a benefit for small businesses: “And then, of course, you got rid of de minimis, and what happened is these foreign countries were sending in little packages for free, knocking out our mom-and-pop businesses across America. You put an end to it, and you’re going to rebuild the mom-and-pop and the small businesses of America.”

WSJ SPOTLIGHTS TARIFFS’ IMPACT ON SMALL BUSINESSES… Flexport CEO Ryan Petersen is sounding the alarm that steep tariffs on Chinese imports could spell disaster for thousands of small U.S. businesses, many of which rely on affordable overseas manufacturing to stay afloat. In a recent Wall Street Journal piece, Petersen warns that small firms—unlike large corporations—lack the resources to shift supply chains and are already suffering under skyrocketing costs and shrinking shipping capacity. He’s using his platform to advocate for urgent policy change, calling tariffs an “extinction-level event” for many small enterprises.

SBA ANNOUNCES NEW GRANT FUNDING TO SUPPORT MADE IN AMERICA MANUFACTURING... The U.S. Small Business Administration (SBA) has announced a new funding opportunity under its Made in America Manufacturing Initiative aimed at revitalizing the U.S. industrial base and supporting small manufacturers. Through the Manufacturing in America Grant Initiative, the SBA will award up to $1.1 million to three eligible organizations to deliver targeted training and technical assistance to small businesses in critical sectors such as timber, energy, aluminum, and steel. This effort, tied to the SBA’s Empower to Grow (E2G) Program, will help small manufacturers enhance operations, expand hiring, and increase their competitiveness in government contracting.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS: 

Thirty-one states are in regular session. Maine is in special session.

WHAT WE'RE WATCHING: 

Maryland lawmakers have wrapped up the 2025 legislative session by enacting a series of major bills aimed at accelerating the state’s transition to clean energy, strengthening solar energy regulations, and establishing a new long-term strategic energy plan. In addition to these climate initiatives, the General Assembly approved significant updates to the state’s education reform blueprint, focusing on increased school funding, enhanced accountability measures, and expanded support for students and teachers. The legislative package is being hailed as a bold step forward for Maryland’s future.

State Republican lawmakers and some Maine business groups continue to press for changes to the state's paid family medical leave law before it kicks in next year. The law will allow eligible workers to take up to 12 weeks of paid time off to care for themselves or a sick family member or to bond with a newborn, an adopted child or a foster child. The program is paid for with a wage tax of either 0.5% or 1%, depending on the size of the business, that is jointly paid by employers and workers.

LAWMAKERS... IN OR OUT?

The House... convenes today at 12:00 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 Small Business will hold a hearing Tuesday, 5/6 at 10:00 AM entitled, “Full Committee Hearing: Member Day.”

Committee on Financial Services will hold a hearing Tuesday, 5/6 at 10:00 AM entitled, “American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century.”

Committee on Financial Services will hold a hearing Wednesday, 5/7 at 10:00 AM entitled, “The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System.”

Committee on Appropriations will hold a hearing Wednesday, 5/7 at 10:00 AM entitled, “BUDGET HEARING - U.S. DEPARTMENT OF ENERGY.”

Committee on Appropriations will hold a hearing Wednesday, 5/7 at 10:00 AM entitled, “BUDGET HEARING - U.S. DEPARTMENT OF AGRICULTURE.”

Committee on Appropriations will hold a hearing Wednesday, 5/7 at 2:00 PM entitled, “OVERSIGHT HEARING – THE FEDERAL EMERGENCY MANAGEMENT AGENCY.”

Committee on Appropriations will hold a hearing Thursday, 5/8 at 10:00 AM entitled, “OVERSIGHT HEARING – THE CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY.”

Committee on Appropriations will be holding multiple budget hearings this week.

The Senate...     

Committee on Appropriations will hold a hearing Tuesday, 5/6 at 10:30 AM entitled, “A Review of the President's Fiscal Year 2026 Budget Request for the Department of Agriculture.”

Committee on Finance will hold a hearing Tuesday, 5/6 at 10:00 AM entitled, “Hearing to Consider the Nominations of James O'Neill, of California, to be Deputy Secretary of Health and Human Services, vice Andrea Joan Palm, resigned and Gary Andres, of Virginia, to be an Assistant Secretary of Health and Human Services, vice Melanie Anne Egorin, resigned.”

Committee on Health, Education, Labor & Pensions will hold a hearing Thursday, 5/8 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 Appropriations will hold a hearing Thursday, 5/8 at 10:00 AM entitled, “A Review of the President's Fiscal Year 2026 Budget Request for the Department of Homeland Security.”

Committee on Small Business and Entrepreneurship will hold a hearing Friday, 5/9 at 10:00 AM entitled, “Field Hearing: Small Businesses Powering the Clean Energy Economy.”

 BILLS OF INTEREST

The House Committee on Financial Services will hold a hearing on the following item of legislation. The hearing will be held at 10:00 AM ET on Wednesday, May 7, 2025, in room 2128 of the Rayburn House Office Building. The legislation is titled:

• H.R. __, The Small Business Relief Act of 2025

  • To amend title 31, United States Code, to require the Financial Crimes Enforcement Network (‘‘FinCEN’’) to establish procedures to protect beneficial ownership information disclosed by FinCEN, to facilitate compliance with beneficial ownership reporting requirements

    
    

AT THE AGENCIES

The U.S. Department of Labor

U.S. Secretary of Labor Lori Chavez-DeRemer issued the following statement regarding the April 2025 Employment Situation Report.

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

The United States and United Kingdom jointly convened the 9th U.S.-UK Small- and Medium-Sized (SME) Dialogue in Charlotte, North Carolina.

The U.S. Small Business Administration

Administrator of the U.S. Small Business Administration (SBA) applauded Senator Joni Ernst (R-IA) and Congressman Roger Williams (R-TX) for introducing new legislation that will double the individual loan limit for 7(a) and 504 small business manufacturing loans from $5 million to $10 million.

Want this email forwarded to you? Curious for more information?

Subscribe to EIW Today to receive the morning newsletter directly in your own inbox!