EIW Today - May 6th, 2025

Prism Group
May 6
5 min read

Prism Group's Daily Summary

VOTES DELAYED AS MEDICAID AND SALT DISPUTES PERSIST… Two House committees delayed markups on their portions of a broad reconciliation bill, the result of ongoing disagreements within the Republican caucus. The Energy and Commerce Committee postponed its vote to the week of May 12 amid a standoff over proposed Medicaid cuts—centrists oppose the reductions while hard-liners insist on deep savings to meet a mandated $880 billion target. Meanwhile, the Ways and Means Committee has yet to schedule its markup as Republicans remain divided over changes to the SALT deduction, among other tax policies. These delays threaten Speaker Johnson’s timeline for advancing the broader reconciliation package.

FY2026 APPROPRIATIONS PROCESS UNDERWAY… Congress begins FY26 appropriations discussions this week as House and Senate subcommittees hold hearings with top Cabinet officials on President Trump’s newly released budget outline. The “skinny budget” proposes a steep 22.6% cut to non-defense discretionary spending, with major reductions to agencies like State, Agriculture, and Education, while boosting funding for Defense, Homeland Security, and Veterans Affairs. Full budget details are expected in the coming weeks.

SBA LOAN LIMIT MAY DOUBLE TO $10 MILLION, BUT NOT FOR EVERY SMALL BUSINESS... Manufacturers could soon qualify for bigger SBA loans under a new bipartisan bill, but most small businesses won’t benefit—at least not yet. The Made in America Manufacturing Finance Act, introduced by Reps. Roger Williams (R-TX), Sen. Joni Ernst (R-IA), and Sen. Chris Coons (D-DE), would raise the cap on 7(a) and 504 loans from $5 million to $10 million—but only for manufacturing firms. SBA Administrator Kelly Loeffler has endorsed the move, calling it key to revitalizing U.S. manufacturing. While lenders welcome the higher limit, many hope it paves the way for a broader increase to reflect inflation and meet demand across industries. Critics argue the change is too narrow, and with stricter SBA lending standards on the horizon, a wider cap hike may not be coming soon.

DEMOCRATIC OPPOSITION THREATENS GENIUS ACT, STALLING 2025 CRYPTO AGENDA... Bipartisan momentum behind the GENIUS Act—a Senate bill to establish federal stablecoin regulations—is faltering after nine Senate Democrats pledged to block cloture without further safeguards on AML, national security, and issuer oversight. Despite updated provisions, the impasse puts the broader crypto legislative agenda for 2025 at risk.

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:

Oregon Democrats have introduced a plan to fast-track housing near transit. A new legislative proposal would override local zoning rules to allow multifamily development near major transit corridors. The plan comes as the state grapples with a severe housing shortage. Proponents argue the measure is a necessary step toward affordability and sustainability, while opponents warn it may bypass local input and environmental safeguards.

Georgia Governor Brian Kemp announced he will not challenge Democratic Senator Jon Ossoff in the 2026 election. Kemp's decision opens the field for other Republican contenders, including Reps. Buddy Carter, Mike Collins, Rich McCormick, Insurance Commissioner John King, and Secretary of State Brad Raffensperger. Rep. Marjorie Taylor Greene is also considering a Senate or gubernatorial run, which could influence the party's direction. Kemp's choice may indicate aspirations for a future presidential bid, affecting national GOP strategies.

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 Small Business will hold a hearing TODAY, 5/6 at 10:00 AM entitled, “Full Committee Hearing: Member Day.”

Committee on Financial Services will hold a hearing TODAY, 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 TODAY, 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 TODAY, 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