Washington Update – Key Actions and Developments

THIS IS A DEVELOPING STORY has become the lead for most news out of Washington, DC, since President Trump’s inauguration as the nation’s 47th President. The Trump Administration has operated at warp speed since taking office, fundamentally changing all areas of government through legislation, regulation, and executive action. Things are changing on an hourly basis. Here are some insights into the latest actions coming out of Washington:
 

Tariffs: As reported over the last few days, tariffs have been implemented at 25% on steel and aluminum imports, as well as 25% tariffs on Canadian and Mexican imports and a 10% tariff on Chinese imports, with the latter two related to national security concerns over illegal drugs and immigration. Cross-border trade with USMCA partners has had an immediate effect on multiple industries, largely contributing to the spike in the trade deficit, as many had stockpiled products to get ahead of import tariffs. While the Administration has not yet indicated that waivers will be granted, a 30-day reprieve has been given to the auto industry after President Trump spoke with the CEOs of the Big Three automakers this week. Whether it will be granted to other industries with exposure to Canadian and Mexican manufacturing operations remains to be seen. These tariffs are part of a larger negotiation on border security, illicit drugs, and the start of the renegotiation of the USMCA.
 

On Thursday morning, ASA sent out a survey to our membership to see how the recent tariff implementations have affected your operations. If you have not yet done so, please check your email and respond as soon as possible to make your voice heard.
 

Government Funding: The current Continuing Resolution (CR) agreed to in December funds the government through next Friday, March 14. At this point, negotiations have been ongoing, but no deal has been struck as of this writing, and a shutdown could be a real possibility. There is a proposal to fund the government through the rest of the fiscal year, ending on September 30. For some Republicans, this is unacceptable as it continues Biden Administration funding priorities and spending levels. Democrats, especially in the House, do not want to help Republicans make up any vote deficits at this point. For those of you who watched President Trump’s address on Tuesday night, it was a window into how both parties are getting along right now in Congress. This week, Sen. Susan Collins (R-ME) met with Congressional Republicans to find common ground and a way forward to avoid a shutdown. Stay tuned.
 

Budget/Tax: Congress has a long road ahead when it comes to how taxes and the budget will be revised. Budget reconciliation is a long process, even though Republicans hold the majority in both chambers. Last week, the House passed its budget resolution to fulfill President Trump’s view that there should be “one big, beautiful bill.” Senate Republicans have indicated that they would prefer splitting this up into two bills to have a better chance of passage in their chamber. There’s a lot here—the extension of the 2017 Trump Tax Cuts, additional tax cuts on items the President has asked for like tips, overtime, and Social Security. At the same time, Congressional Republicans have an eye on deficit reduction, which makes this a complicated process. This will make the summer session very busy, as Republicans should be back to full strength in the House, and legislation will start to be brought to the floor. Again, stay tuned.
 

CTA (Victory!): After a long struggle against the Corporate Transparency Act (CTA) since it was passed into law in 2021, ASA and its coalition partners have achieved victory on this issue. This week, the Treasury Department announced that it will not enforce penalties or fines on companies that have not registered with FinCen. The Act requires entities (with less than $5 million in sales and fewer than 20 full-time employees) to register any business owners or managers who have significant control over decision-making to register their personal information with the Treasury Department. Failure to comply or update the information would have resulted in potential jail time and fines. FinCen is expected to rewrite the guidelines to narrowly focus on criminal entities for which the law was intended.
 

Fuel Choice: ASA recently signed a letter to Energy Secretary Chris Wright and EPA Administrator Lee Zeldin requesting that they review Biden-era laws and regulations regarding electrification. It includes a review of The State-based Home Electrification Rebate Program, State-Based Contractor Training Grants in support of residential electrification, heat pump subsidies provided under the Greenhouse Gas Reduction Fund, heat pump manufacturing subsidies authorized through the invocation of the Defense Production Act, The Clean Energy for Federal Buildings rule (which mandates full electrification of all federal buildings by 2030), and utilization of funds under the Building Energy Codes Program to support adoption and implementation of building codes that support mandated electrification. This request aims to ensure consumer choice, and ASA will keep members updated on developments as they occur.