NAED’s Government Relations department is keeping our members updated about current happenings in D.C.
Trade and Tariffs – 23 States Appeal Tariff Standing Ruling
Twenty-three Democratic-led states and governors have appealed a U.S. Court of International Trade decision that found they lacked standing to challenge President Trump’s 10 percent global tariffs imposed under Section 122 of the Trade Act of 1974. The appeal was filed with the U.S. Court of Appeals for the Federal Circuit, though the filing did not detail the states’ legal arguments.
The dispute originates from a May trade court ruling that determined the Section 122 tariffs were unlawful. However, the court limited relief to the plaintiffs who demonstrated direct harm, two private companies, and the state of Washington. As a result, the injunction did not extend to the roughly 330,000 importers that have paid or continue to pay the tariffs, leaving the duties in effect for most affected parties despite the court’s finding that the policy itself violated the law.
Less than a week after the ruling, the Federal Circuit stayed the injunction while it considers the Trump administration’s appeal, allowing the tariffs to remain in force even for the successful plaintiffs.
The states’ appeal adds to a broader legal debate over whether trade courts can grant nationwide relief in tariff cases or must limit remedies to the specific parties that bring suit. Trade attorneys and legal experts view the issue as one of the most consequential procedural questions arising from the recent wave of tariff litigation.
Trump imposed the 10 percent tariff under Section 122 after the Supreme Court invalidated the IEEPA global tariffs. Section 122 permits temporary tariffs of up to 15 percent to address international payments imbalances but limits them to 150 days unless Congress approves an extension. Trump’s current tariff is scheduled to expire in late July.
Meanwhile, the administration has launched several Section 301 investigations that could form the basis for a more permanent tariff framework.
Senators Seek to Provide Certainty for Certain Energy Projects
A bipartisan Senate proposal aims to limit the ability of future presidents and federal agencies to halt or delay energy projects after they have received permits, a move intended to advance broader permitting reform negotiations in Congress.
Introduced by Sens. Tom Cotton (R-AK) and Catherine Cortez Masto (D-NV), the FREEDOM Act would prohibit agencies from revoking permits, issuing stop-work orders, or otherwise blocking approved energy projects except in narrow, extraordinary circumstances. The bill applies across energy technologies, including fossil fuels, renewables, transmission, and mining projects.
The legislation responds to concerns from both parties that administrations can use permitting authority to target politically disfavored energy sources. Democrats have pointed to Trump administration actions affecting wind and solar projects, while Republicans argue future Democratic administrations could similarly impede fossil fuel development.
The bill would also establish firm deadlines for federal permitting decisions, allow developers to seek expedited judicial review, and limit agencies’ ability to withdraw project approvals during litigation. If agencies miss permitting deadlines, courts could authorize outside contractors to complete environmental reviews using a new federal permitting fund.
Supporters argue the measure would reduce regulatory uncertainty, accelerate energy infrastructure development, and lower costs. The proposal is expected to inform ongoing bipartisan negotiations over comprehensive federal permitting reform.
Faster Labor Contracts Act Advances Through Rare House Procedure
The U.S. House passed the Faster Labor Contracts Act after a bipartisan group of lawmakers used a rarely successful procedural tool, known as a discharge petition, to force the bill to receive a vote despite not being brought forward by House leadership.
The bill, introduced by Rep. Donald Norcross (D-N.J.), is intended to help newly-formed unions secure their first labor contract more quickly. Under the proposal, employers and unions would have to negotiate within specific timeframes after workers vote to unionize. If the two sides cannot reach an agreement, a neutral arbitrator could step in and impose a contract that would remain in effect for two years.
Support for the legislation highlights a growing group of Republicans who have been willing to back some labor union priorities, reflecting broader shifts in the party’s approach to worker-related issues. The bill’s passage also underscores the increasing use of discharge petitions in the House. While historically uncommon, several discharge petitions have successfully forced votes on legislation during Speaker Mike Johnson’s tenure.
Electricity Supply – Nuclear Streamlining Efforts Take Shape in the House
On June 9, the House Energy and Commerce Subcommittee on Energy held a hearing on several bipartisan bills intended to speed up the licensing and deployment of new nuclear reactors.
The proposals build on the 2024 ADVANCE Act, which was designed to modernize the Nuclear Regulatory Commission’s (NRC) licensing process and support the development of advanced nuclear technologies.
One bill would remove the requirement that the NRC hold a formal hearing for every reactor license application when there is no opposition. Supporters argue this would reduce unnecessary paperwork and allow the agency to focus more directly on safety reviews.
Another proposal would streamline licensing for spent-fuel recycling facilities. Supporters say this could help provide fuel for advanced reactors while addressing the growing amount of used nuclear fuel in the United States.
The hearing also included debate over transparency and oversight. One proposal would require the Department of Energy to quickly disclose changes to nuclear safety rules or reactor safety studies. Other measures would allow certain uranium enrichment projects to begin construction earlier in the licensing process, reform NRC advisory committees, and give the NRC more flexibility to recruit and retain senior staff.
Faster nuclear deployment can help advanced nuclear projects move from planning to construction more quickly, and distributors could see new opportunities tied to power generation, transmission upgrades, data center demand, industrial electrification, and grid reliability investments.
Electricity Supply – Geothermal Bill Advances in U.S. House
The House has passed a bipartisan package of geothermal energy bills designed to make it easier and faster to develop geothermal power projects in the United States.
The legislation would streamline federal permitting, establish faster timelines for reviewing geothermal leases and drilling permits, create a dedicated geothermal permitting office within the Department of the Interior, and expand opportunities for geothermal development on federal lands. Several provisions also seek to improve environmental review processes while maintaining oversight and community input.
The package passed the House with broad bipartisan support, reflecting growing agreement that expanding domestic energy production is necessary to meet rising power demand and strengthen energy security. However, the Senate has not yet determined whether it will take up the package as a standalone measure or incorporate it into a broader permitting reform effort.
President Signs AI Executive Order
President Trump signed an executive order on June 2 establishing a voluntary federal framework to address cybersecurity risks posed by advanced artificial intelligence systems. The order was a scaled-back version of a proposal the White House had planned to issue in May, reflecting ongoing tension between officials seeking stronger safeguards and technology companies concerned about regulatory burdens.
The final order asks developers of the most advanced AI models to voluntarily submit their systems for government review 30 days before public release, down from a previously proposed 90-day review period. The goal is to give federal agencies time to assess potential threats to financial systems, critical infrastructure, and national security networks.
The order also directs the Treasury Department to establish a cybersecurity clearinghouse with AI companies and critical infrastructure operators to identify and address vulnerabilities discovered by advanced AI models. In addition, it creates a classified benchmarking process overseen by the National Security Agency to evaluate national security risks associated with frontier AI systems.
The administration emphasized that the policy does not create a mandatory licensing or approval process for AI development. The order also directs federal agencies to strengthen network defenses, makes certain AI cybersecurity tools available to critical infrastructure operators, and instructs the Justice Department to pursue criminal cases involving AI-enabled cyberattacks.
As AI-driven technologies are adopted across the economy, cybersecurity requirements throughout the electrical supply chain are likely to expand. The order signals growing federal attention to AI-related cyber risks, which could lead to new security expectations for distributors supporting energy infrastructure, industrial automation, smart buildings, data centers, and grid modernization projects.
Representative McGuire Highlights NAED Member on House Floor
Representative John McGuire recognized Patriot Industries after it was named Virginia Small Business Manufacturer of the Year. The award recognizes businesses that demonstrate sustained growth, strong financial performance, workforce investment, and meaningful community impact.
To view the recognition, click here – https://www.c-span.org/clip/us-house-of-representatives/user-clip-rep-mcguire-patriot-industries/5201416
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