House Republicans have released a list of more than $5 trillion in spending offsets that could potentially be included in an upcoming reconciliation bill. The list of spending cuts released by the House Budget Committee equals roughly $5.7 trillion in savings over 10 years and includes repealing several Biden climate policies, rescinding unspent COVID funds, and making numerous changes to health care programs including Medicaid, the Affordable Care Act, and restoring association health plans (AHPs).
The expansion of use of AHPs was established by the Trump administration in 2018 with a final rule modifying the definition of “employer” under the Employee Retirement Income Security Act (ERISA) regarding entities—such as associations—that could sponsor group health coverage. Previously, the definition of association had been a difficult standard to meet in that it includes a strict commonality of interest test requiring the association to have a primary existence based on common economic and representational interests among the participating employers beyond the offering of employee benefits. The regulations expanded the definition of association by loosening the commonality of interest standard.
While the courts vacated key provisions of the AHP rule in 2019, the Biden administration only formally rescinded the rule in April 2024, reinstating the pre-2018 definition of “employer” under ERISA. According to the list of cuts released by the House Budget Committee, restoring AHPs, a provision that passed the House in 2023, would save $579 million over 10 years.
Bill to Make Pass-Through Deduction Permanent Introduced
Bipartisan, bicameral legislation to permanently extend the Section 199A deduction has been introduced in Congress. Section 199A, which was adopted as part of the 2017 Tax Cuts and Jobs Act, allows for a deduction for pass-throughs equal to 20% of a firm’s qualified business income (QBI).
In the House, Representative Lloyd Smucker (R-PA), a member of the House Ways and Means Committee, introduced the Main Street Tax Certainty Act along with 152 cosponsors. Senator Steve Daines (R-MT), Majority Leader John Thune (R-SD), and 33 Republican Senators introduced the companion measure in the Senate. One Voice has endorsed this legislation to permanently extend this important tax provision.
In a recent survey 48 percent of One Voice members organized as pass-throughs stated that they claim the Section 199A deduction, which is set to expire at the end of 2025.
Resolution to Overturn EPA TCE Rule Introduced
House Republicans have introduced a Congressional Review Act (CRA) resolution that would overturn the Environmental Protection Agency (EPA) final rule regulating trichloroethylene (TCE) under the Toxic Substances Control Act (TSCA). Representatives Diana Harshbarger (R-TN) and Mariannette Miller-Meeks (R-IA) introduced the CRA resolution on January 22, 2025.
The final regulation titled “Trichloroethylene (TCE); Regulation Under the Toxic Substances Control Act (TSCA),” published on December 17, 2024, effectively bans TCE by prohibiting its manufacture, import, processing, and distribution for all uses, including as a solvent in industrial cleaning and degreasing.
The rule would phase out most uses of TCE within one year, with a few critical uses granted longer compliance timeframes and subject to workplace controls. These critical uses include Federal agencies making rocket booster nozzles, battery separator manufacturing, and the “critical” degreasing of military vehicles. The rule would mandate a workplace chemical protection program (WCPP) that includes inhalation exposure monitoring and limits, dermal protection, recordkeeping, and downstream notification requirements for limited continued use. The CRA resolution provides formal “congressional disapproval” of the rule. This formal disapproval under the CRA would repeal the regulation as well as prohibit the agency from issuing any rules that are “substantially the same” as the overturned regulation.
USTR Launches Trade Reviews
The United States Trade Representative (USTR) has initiated two significant reviews aimed at addressing unfair trade practices and assessing China’s adherence to commitments made in the phase-one trade agreement established back in 2020. These reviews are in line with an “America First Trade Policy” directive set forth by President Trump on his very first day in office.
The phase-one trade agreement, officially known as the Economic and Trade Agreement Between the United States and the People’s Republic of China, took effect on February 14, 2020. This deal outlined an expectation for China to increase its purchases of select U.S. goods and services by $200 billion over a two-year span, starting from January 1, 2020, to December 31, 2021.
As part of the review process, the USTR will examine whether China is fulfilling the commitments outlined in this agreement. Additionally, the inquiry into unfair trade practices will focus on “those practices which may be unfair to the United States, including those practices that may be unreasonable or discriminatory and that may burden or restrict United States commerce.” According to the guidelines provided in the President’s memo, a comprehensive report on these reviews is set to be delivered to the President by April 1, 2025.