Sunsetting Tax Cuts Suggests a Shift to Business Protection Mode

By David Stewart on December 12, 2024 Posted in 119th Congress, Tax

Originally published by Bloomberg Tax

Businesses should prepare to defend against trillions of dollars in adverse tax changes in 2025 as Congress considers how to pay for extensions in the Tax Cuts and Jobs Act—despite pledges from Republicans to protect their signature 2017 law.

Congressional leaders are preparing to consider major tax legislation under expedited reconciliation procedures in the first 100 days of the 119th Congress, a process that will restrict amendments and allow passage by a simple majority vote.

Because of this, businesses should begin identifying their policy priorities, developing legislative strategies, and refining narratives to prepare for this critical moment for US tax policy.

Transforming Defense: How Private Market Experience Among Key Defense Nominees Under Trump Could Revolutionize Pentagon Innovation

By Pablo Carrillo, Jack Deschauer, Edward Newberry and Daniel Rudder on December 9, 2024 Posted in Defense & Homeland Security

The incoming Trump Administration’s announced defense leadership nominees, with deep private market expertise, signal a potential shift in the Department of Defense’s (DOD’s) ability to harness innovation from venture-and private equity-backed companies developing dual-use technologies. Historically, leadership interest in leveraging commercial innovation in this context has primarily resided at the Office of the Secretary of Defense (OSD) level, often without the direct experience necessary to effectively bridge military needs and private sector capabilities.

Elections Edge: A 2024 Elections Weekly Snapshot

By Capital Thinking on October 8, 2024 Posted in Election 2024

With just weeks until Election Day, stay updated on the latest presidential race developments, as well as the House and Senate races, with our weekly Elections Edge 2024 election newsletter.

In one month, on November 5, Americans will head to the polls, concluding the race to send Vice President Kamala Harris or former President Donald Trump to the White House. With the presidential and vice presidential debates complete, the Harris and Trump campaigns are focused on shoring up support among their respective bases and locking down key undecided voters. Meanwhile, the battle for the 119th Congress is entering its final stretch. While the 2024 Senate map heavily favors Republicans, both Democrats and Republicans are sounding the alarm that final Senate control remains a toss-up. House Republican and Democratic leaders are canvassing the country to bolster frontline candidates and deliver their closing messages to voters.

Elections Edge delivers a weekly snapshot of key campaign developments, updated forecasts for the White House, Senate and House races, as well as the key races that will likely tip the balance of power in 2025.

Chevron Has Fallen: Supreme Court Seismically Shifts Regulatory Power From Agencies to Courts

On June 28, 2024, in a 6-3 decision in Loper Bright Enterprises v. Raimondo, the Supreme Court overturned the Chevron doctrine, a decades-old precedent that largely pressed federal courts to defer to federal agency interpretations of ambiguous statutes under their jurisdiction. The full implications of this decision merit ongoing attention and preparation for a changed environment.

Webinar: The REPO Act – Political and Legal Impacts for International Businesses

By Capital Thinking on April 30, 2024 Posted in 118th Congress, US Regulation

Congress recently passed the Rebuilding Prosperity and Opportunity for Ukrainians (“REPO”) Act, bipartisan legislation authorizing the Administration to seize billions of dollars in Russian sovereign assets to fund Ukraine reconstruction and aid.
The legislation raises issues that could have political and legal consequences – for companies and individuals.

Join members of the firm’s Policy and Government Investigations teams on May 7 for a webinar covering:

What does the REPO Act say?

How did Congress reach bipartisan consensus to pass it?
Will the REPO Act survive US court challenges?
How will the Biden Administration use this new authority?
How will Europe treat Russia’s frozen assets?
Will Russia retaliate, and in what form?
How can US, European and International businesses protect themselves against retaliation?

Additional details and registration: The Repo Act: Political and Legal Impacts for International Businesses | Events | Insights & Events | Squire Patton Boggs

Panelists

Ambassador Paul Jones

Tom Firestone

Keith Bradley

Ludmilla L. Kasulke

New CFIUS Rules to Enhance Enforcement and Investigation Activities

By Peter C. Alfano III and George Grammas on April 12, 2024 Posted in Data Privacy & Cybersecurity, Defense & Homeland Security, Financial Services, Foreign Investment Reviews, International Trade Policy, US Executive Branch, US National Security/Supply Chains, US Regulation

On April 11, 2024, the Committee on Foreign Investment in the United States (CFIUS), a multi-agency committee administered by the U.S. Treasury Department, released a proposed rule (“Proposed Rule”) to amend the CFIUS regulations.^[1] The Proposed Rule seeks “to enhance the Committee’s identification and resolution of national security risks” by expanding the scope of information that CFIUS can seek from parties and its ability to compel production of such information. As summarized below, the proposed authorities will bolster CFIUS’s ability to monitor and investigate non-notified transactions as well as potential violations of mitigation obligations, including by increasing financial penalty exposure to parties and streamlining CFIUS’s ability to issue subpoenas. Comments to the Proposed Rule will be due within 30 days of publication in the Federal Register, which is expected in the coming days.

Biden Budget Proposal Advances AI Priorities

By David Stewart, Ludmilla Kasulke and Dominic Braithwaite on March 14, 2024 Posted in 118th Congress, Artificial Intelligence, Budget and Appropriations, Data Privacy & Cybersecurity, Technology and Communications, US Executive Branch, US National Security/Supply Chains

On March 11, 2024, US President Joe Biden released his Fiscal Year (FY) 2025 budget request, which included proposals on U.S. Artificial Intelligence (AI) development and efforts to implement the Biden Administration’s Executive Order (EO) on AI. The budget identifies the National Science Foundation (NSF) as central to U.S. leadership in AI, requesting $10.2 billion in funding for the agency. $2 billion of that total would be dedicated to research and development (R&D) in accordance with CHIPS Act priorities, including AI, and $30 million would support the National AI Research Resource pilot program. The budget also requests $65 million for the Commerce Department “to safeguard, regulate, and promote AI, including protecting the American public against its societal risks.” This funding would include directing the National Institute of Standards and Technology (NIST) to establish the U.S. AI Safety Institute. The institute would be responsible for operationalizing “NIST’s AI Risk Management Framework by creating guidelines, tools, benchmarks, and best practices for evaluating and mitigating dangerous capabilities and conducting evaluations including red-teaming to identify and mitigate AI risk.” Further, the Department of Energy (DOE) Office of Science, which is responsible for implementing aspects of both the CHIPS Act and the AI EO, would receive $8.6 billion under the President’s proposed budget.

US ITC Launches Global Rice Trade Investigation

By Genevieve Hubbard, Ludmilla Kasulke, D. Michael Kaye and David Stewart on March 4, 2024 Posted in International Trade Policy, US National Security/Supply Chains

On March 1, 2024, the US International Trade Commission (ITC) officially announced the initiation of a new factfinding investigation into the global rice market. The investigation, titled “Rice: Global Competitiveness and Impacts on Trade and the U.S. Industry” (Investigation No. 332-603), was requested by US House of Representatives Committee on Ways and Means Chair Jason Smith (Republican-Missouri).

Navigating the Regulatory Maze: Hemp Industry Calls for Additional Federal Action

By Austin M. Harrison and Michael Cox on February 27, 2024 Posted in 118th Congress, Cannabis, Economic Development, State & Local Governments, State Attorneys General, US Regulation

The hemp industry wants additional regulation. Yes, you read that correctly, and stakeholders are coalescing to push for action from the federal government. The passage of the 2018 Farm Bill provided momentum for the retail cannabidiol (“CBD”) industry, and the lack of complete regulatory clarity from the federal government has led many in the industry to navigate a patchwork of state-specific laws.

The hemp industry is making its voice heard. On January 24, 2024, over 30 hemp organizations signed a letter urging the House Committee on Energy and Commerce to hold a hearing “concerning FDA regulation, or lack thereof, of the rapidly growing hemp market.” The industry is steadfast in calling for new regulations and policies.

Beware the Ides of March: Four Questions and Answers to Guide Your Organization’s Preparation for the Upcoming Appropriations Process

By David LesStrang on February 26, 2024 Posted in 118th Congress, Budget and Appropriations

Federal appropriations provide annual discretionary funding for our government to carry out its mission and, in turn, spur various organizations towards efficiencies and achievements. Whether you serve an entity interested in the government’s work in disease research or a nonprofit hospital requesting community project funding for infrastructure needs, it is important for those seeking funding provided through Congress’ annual appropriations cycle to understand the process and current legislative landscape.

This year more than most, the process is complex – with timelines that abut and potentially overlap. Fiscal Year (FY) 2024 began on October 1, 2023; in the absence of completed spending bills, government programs are currently being funded via a series of short-term stop-gap funding bills. Lawmakers are still negotiating FY 2024 funding levels, which will expire on September 30. FY 2025 begins on October 1, and the process for determining appropriations for the upcoming fiscal year will begin shortly.

Forced Labor Legal Developments in Europe: EU Council and Parliament Negotiate Final Text for Proposed Regulation

By Ludmilla Kasulke, D. Michael Kaye, Thomas Delille, Christina Economides and Amjad Wakil on February 16, 2024 Posted in Defense & Homeland Security, Europe, International Trade Policy, Labor & Employment

While many have focused in recent months on the US enforcement of the forced labor import ban (19 U.S.C. 1307) and the Uyghur Forced Labor Prevention Act (UFLPA) (Public Law No. 117-78), the EU is working on its own set of regulations prohibiting products made with forced labor from entering the EU market. A proposal for a regulation of general scope, presented in September 2022, is now reaching the last legislative phase. However, with limited time left before the EU elections, there is some risk of negotiations delaying until after fall 2024.

US ITC to Investigate Global Rice Trade

By D. Michael Kaye, David Stewart, Ludmilla Kasulke and Genevieve Hubbard on February 12, 2024 Posted in 118th Congress, International Trade Policy

In a February 5, 2024 letter to the US International Trade Commission (ITC), US House of Representatives Ways & Means Committee Chair Jason Smith (Republican-Missouri) requested that the ITC conduct a Section 332 investigation into the global rice market. The ITC will institute the investigation in the coming weeks, and it could be the first step toward future trade actions impacting trade in rice and related products.

The governments of principal rice producing and consuming nations, US rice producers, processors and exporters, corporations that are significant consumers of domestically produced or imported rice, and foreign rice producer organizations and governments would all be well advised to carefully monitor this investigation and engage in the process so they can help inform the ITC’s final report.

The End of “Chevron” or Its Rebirth?

By Keith Bradley, Peter Gould, Rebekah Singh and Austin M. Harrison on January 29, 2024 Posted in Energy, Environment and Natural Resources, Global Infrastructure, Labor & Employment, SPB Global Public Policy Thought Leadership, Transportation, US Regulation

Fishermen in the small town of Cape May, New Jersey, are at the epicenter of a legal challenge that could reshape the landscape of federal agency authority. The fishermen are challenging the entrenched “Chevron” doctrine, which for years has afforded deference to government agencies with respect to reasonable interpretation of ambiguous statutes. The US Supreme Court’s decision could change how industry engages Congress and fundamentally alter how businesses navigate an array of regulations spanning environmental, labor and other domains.

Read our analysis here.

President Biden Prepares Executive Order to Prohibit Foreign Adversaries’ Access to US Data

By Dominic Braithwaite, David Stewart and Ludmilla Kasulke on January 26, 2024 Posted in Data Privacy & Cybersecurity, US Executive Branch, US National Security/Supply Chains

According to reports originally from Bloomberg News, President Joe Biden is preparing to issue an executive order (EO) aimed at prohibiting US adversaries from accessing US personal data. While the draft is subject to change, the draft EO reportedly targets “highly sensitive” data, including genetic and location information, and would bar foreign adversaries from obtaining this data through legal means such as intermediaries, data brokers, third-party vendors, employment agreements, or investment agreements. Further, the EO would reportedly require that entities owned, controlled, or operated by countries of concern turn over data to the US government when requested. Significantly, the draft EO would restrict US entities and individuals from conducting data transactions that would provide adversarial countries with government-related or sensitive personal data, in addition to data that could jeopardize US national security.

Charting the Course: Congress Progresses Towards Meaningful Action on AI

By Genevieve Hubbard and Kristin Bryan on January 17, 2024 Posted in 118th Congress, Data Privacy & Cybersecurity, Technology and Communications, US Regulation

This year, Congress is steadily progressing towards enacting meaningful legislation on artificial intelligence (AI) for the first time. At the end of 2023, Senate Majority Leader Chuck Schumer (D-NY) and his “Gang of Four” (Senators Todd Young (R-IN), Martin Heinrich (D-NM), and Mike Rounds (R-SD)) concluded their AI Insight Forums, a series of sessions where lawmakers discussed AI technology with industry leaders. Leader Schumer announced that senators are now beginning to work on AI legislation. He has reportedly empowered various Senate committee chairs to introduce legislation on topics within their jurisdiction related to AI and to begin the process of shaping those bills through their respective committees. For instance, it was reported by FedScoop that Senate Committee on Commerce, Science, and Transportation Chair Maria Cantwell (D-WA) is preparing to introduce a series of bills addressing AI issues, including deepfakes, jobs and training, algorithmic bias, digital privacy, national security, and innovation and competitiveness in the coming weeks and months. The initial focus of legislation may revolve around the clearest dangers posed by AI, including deepfakes and national security. Additionally, there is a growing interest in Congress regarding AI’s impact on elections, considering 2024 is an election year.