Legislative Update: Trump Lays Out Aggressive Agenda in Address to Congress

Trump Lays Out Aggressive Agenda in Address to Congress

President Donald Trump on March 4 delivered a forceful joint address to Congress, touting his administration’s early victories while taking direct aim at political opponents. Trump used the speech–lasting a record-breaking 100 minutes–to energize his base and remind Americans why his leadership has been so disruptive to Washington’s establishment. The speech reinforced Trump’s “America First” vision and set the stage for a vigorous pursuit of his policy agenda in the months ahead.

Trump reiterated that tariffs create a more favorable competitive environment for US-based companies. The administration plans to announce reciprocal tariffs on April 2, targeting countries that impose tariffs on US exports. Among the key policy takeaways, Trump reaffirmed that reciprocal tariffs on foreign imports will take effect on April 2, acknowledging there may be a “little disturbance” in the economy but assuring Americans that the long-term benefits of economic sovereignty would outweigh any short-term disruptions.

He also vowed the U.S. would “reclaim the Panama Canal” and once again floated his long-held ambition of acquiring Greenland. Trump emphasized his administration’s immigration policies and urged Congressional leaders to pass border security funding to expand deportation operations and border enforcement.

The President promoted his new “Gold Card” initiative, which will grant permanent residency to individuals who invest at least $5mn in the US. He also plans to create a new Office of Shipbuilding, which aims to revitalize the US shipbuilding industry, reflecting the administration’s broader push for industrial expansion

Trump also called for Congress to scrap the CHIPS Act and redirect those funds toward paying down the national debt and advocated for a balanced budget.

Trump also reiterated the importance of passing Trump’s tax-cut priorities, which include extending his 2017 tax cuts and eliminating taxes on tips, overtime pay and Social Security benefits, according to Reuters.  Trump plans to reduce corporate tax rates from 21% to 15% for companies producing domestically, while granting additional tax benefits such as a tax deduction on interest payments for US-made cars. Under his plans, oil and gas companies can expense 100% of their capital spending, further boosting domestic production. He also mentioned the announcement of the National Energy Emergency to accelerate domestic energy production.

Trump also continued his commitment to restructuring bureaucratic inefficiencies and cutting wasteful spending. He praised the work of the Department of Government Efficiency (DOGE).

Congress Prepares for Fiscal 2025, But Full-Year Bills Face Uncertain Path

Senior congressional appropriators are nearing an agreement on topline spending numbers for FY2025, though Republican leaders are simultaneously preparing a full-year continuing resolution (CR) to be voted on next week. House Appropriations ranking member Rosa DeLauro (D-CT) indicated that a deal on overall spending levels was imminent following discussions among the “four corners” of the House and Senate spending committees. However, while efforts to finalize subcommittee allocations for the twelve appropriations bills are underway, lawmakers acknowledge that there is little chance of completing the full-year bills before the March 14 deadline when current stopgap funding expires.

House Appropriations Chairman Tom Cole (R-OK) remains committed to advancing the CR and the full-year spending bills. He views the CR as a necessary measure to prevent a government shutdown while giving appropriators time to finalize the FY2025 package. The goal is to have these bills ready by the time President Donald Trump submits his FY2026 budget in April. However, significant hurdles remain, including resistance from Democratic leaders who insist on legislative language affirming congressional authority over federal spending—an issue Republicans reject as restricting the president’s powers.

Senate Appropriations Chair Susan Collins (R-ME) continues to advocate for full-year bills despite acknowledging her party leadership’s preference for a CR. At the same time, House conservatives, including members of the Republican Study Committee, met with Collins to discuss funding options. Rep. Robert Aderholt (R-AL) noted that while some still hope for full appropriations bills, the prevailing expectation is that the CR will extend funding through September, likely without earmarks. House Freedom Caucus members also met with Trump, who endorsed the CR to cap federal spending and enable his administration to direct resources with greater discretion.

Democrats continue to oppose the bill arguing that there will be no incentive to complete the appropriations process without a pressing deadline. Meanwhile, Republicans seek to pressure vulnerable Democrats in Trump-leaning districts to support the measure. Despite these efforts, any House-passed CR would still require bipartisan support in the Senate, where Republicans lack the 60 votes necessary for passage. As negotiations continue, the likelihood of a partisan spending fight remains high.

GOP Pushes to Extend 2017 Tax Cuts While Reining in Government Spending

House Republicans are working diligently to extend the 2017 tax cuts while ensuring fiscal responsibility through targeted spending reductions. House Ways and Means Chairman Jason Smith (R-MO) reaffirmed that the $4.5 trillion cap on tax provisions in the GOP’s reconciliation bill is sufficient to extend the tax cuts for eight to nine years while incorporating key pro-growth policies championed by President Donald Trump. However, Senate Republicans are pushing for a permanent extension, setting the stage for a debate over how best to deliver tax relief to hardworking Americans while keeping the budget in check. Sen. Steve Daines (R-MT) clarified that anything short of permanence is unacceptable, arguing that businesses and families need long-term certainty to drive economic growth.

Despite earlier concerns that the spending cap was too low, Smith expressed confidence that the package would still include critical tax breaks, such as exempting tipped and overtime wages from taxation, providing incentives for American-made products, and offering relief for seniors. While President Trump has advocated for eliminating taxes on Social Security payments, Senate rules prevent that from being addressed in reconciliation. Instead, Republicans are working on alternative tax code adjustments that will put more money back into the pockets of older Americans. Smith also reaffirmed that the GOP’s pro-growth tax policies would retroactively affect Trump’s return to office, ensuring that businesses can take full advantage of provisions like immediate expensing for equipment purchases.

A key strategy under discussion is adopting a “current policy” baseline, assuming that expiring tax cuts are naturally extended, thus allowing Republicans to make them permanent without requiring costly offsets. Senate Finance Chairman Michael Crapo (R-ID) supports this approach, but Smith emphasized that the House will not accept any budget resolution that does not include the $2 trillion in spending cuts Republicans have committed to achieving.  Smith also rejected the Senate’s “weaker” budget resolution, prioritizing defense and border security spending but leaving tax relief for later in the year. GOP leadership is pushing to finalize the reconciliation bill before Memorial Day to avoid any negotiations with Democrats over the debt ceiling, as Treasury’s extraordinary measures could run out as early as May.

Trump Takes Bold Action on Trade, Strengthening America’s Economic Leverage

President Donald Trump is following through on his commitment to put American workers and businesses first, implementing decisive tariff hikes on imports from China, Canada, and Mexico.  Trump remains steadfast in correcting long-standing trade imbalances and holding other nations accountable. As of March 4, all goods from Mexico and most from Canada are now subject to 25 percent tariffs, while Canadian energy exports face a 10 percent duty. The administration has made it clear that these tariffs are designed to pressure Canada and Mexico to do more to stop the flow of fentanyl into the U.S.

But on March 5, the White House announced that the administration granted a one-month exemption from the President’s newly imposed 25 percent tariffs on vehicle imports from Canada and Mexico, temporarily relieving US-based automakers from immediate economic disadvantages.  White House Press Secretary Karoline Leavitt announced the decision, stating that the administration made the move at the request of Ford, General Motors, and Stellantis, who sought time to adjust to the new trade policies under the U.S.-Mexico-Canada Agreement (USMCA). Broader reciprocal tariffs that were announced will still take effect on April 2.

The White House remains open to considering additional exemptions, but no further announcements were made. Meanwhile, Trump held discussions with Canadian Prime Minister Justin Trudeau regarding the new tariffs, particularly their connection to efforts to stem the flow of fentanyl, rejecting Trudeau’s assurances that the situation had improved.

Canada and Mexico have attempted to push back with their own retaliatory tariffs.  Prime Minister Trudeau announced new tariffs on $150 billion worth of U.S. goods, Trump responded swiftly, vowing to increase tariffs on Canada by the same amount. This is part of his broader strategy to implement “reciprocal tariffs,” ensuring that any barriers imposed on American businesses are met with equal force. Ottawa has also formally filed suit against President Trump’s 25 percent tariff on Canadian goods and 10 percent tariff on Canadian energy at the World Trade Organization, arguing the measures violate WTO rules and seeking to fast-track initial steps since the products subject to the duties include perishable goods. Meanwhile, Mexico’s President Claudia Sheinbaum is also expected to announce countermeasures.

China was also hit with a significant tariff increase, as Trump doubled the existing 10 percent duty on Chinese imports to 20 percent. Predictably, Beijing responded with retaliatory measures, targeting U.S. agricultural products and adding American companies to its export control list. However, Trump remains unfazed, signaling that tariffs on China could increase higher depending on how Beijing handles its currency manipulation and economic tactics.

To further solidify America’s trade advantage, Trump has directed the Commerce Department and the U.S. Trade Representative to comprehensively review the tariff and non-tariff barriers American companies face abroad. This analysis will guide future trade actions to ensure a level playing field.

America First Trade Policy May Reshape Supply Chains and Global Markets

The U.S. Trade Representative’s (USTR) released its 2025 trade policy agenda, mostly reflecting President Trump’s “America First Trade Policy.”  A central priority is addressing the U.S. goods trade deficit and reshoring production, which could lead to new trade restrictions or tariffs. The administration has signaled a commitment to reviewing existing trade agreements and targeting non-reciprocal practices, which could disrupt supply chains that rely on imported raw materials or intermediate goods essential to manufacturing.

The agenda explicitly highlights concerns about China’s trade practices, identifying Beijing as the largest contributor to the U.S. trade deficit. The administration is also considering changes to China’s Permanent Normal Trade Relations (PNTR) status, which raises the possibility of additional trade restrictions.

The administration is set to reassess the U.S.-Mexico-Canada Agreement (USMCA) in preparation for its 2026 review. This could lead to renegotiations affecting rules of origin, labor provisions, and environmental standards, all of which could influence the North American automotive market. Stricter rules favoring domestic production could benefit U.S. manufacturers but also pose compliance challenges for companies with integrated supply chains across North America. Moreover, the administration’s broader push for “bilateral or sector-specific plurilateral agreements” signals potential shifts in trade policy that could affect access to international markets.

The administration’s emphasis on reshoring and trade enforcement could reshape global supply chains. While some domestic producers may benefit from reduced foreign competition, increased trade barriers could also lead to higher costs for raw materials, reduced export opportunities, and regulatory uncertainty.

Congress Overturns Methane Emissions Charge, Boosting Oil and Gas Industry

On February 27, the Senate passed a Congressional Review Act (CRA) resolution to overturn the EPA’s rule implementing the Inflation Reduction Act’s (IRA) methane fee, setting the stage for President Donald Trump’s expected approval. The resolution, approved in a 52-47 party-line vote, follows the House approval the day before and represents the latest Republican effort to roll back the methane emissions charge, which they have vowed to eliminate permanently through upcoming budget reconciliation legislation.

The now-targeted EPA rule was designed to enforce the IRA’s “waste emissions charge” on methane emissions from oil and gas facilities, initially set at $900 per metric ton in 2024, increasing to $1,200 in 2025 and $1,500 in 2026. The measure aimed to curb excessive methane leaks, but Republicans argue that the methane fee amounted to a natural gas “tax” that would raise costs for consumers who rely on natural gas for heating and cooking.

Trump Administration Strongly Defends EPA Budget Cuts

The Senate Environment and Public Works (EPW) Committee held a hearing on the nominations of David Fotouhi to be Deputy Administrator of the Environmental Protection Agency (EPA) and Aaron Szabo to be Assistant Administrator for the Office of Air and Radiation of the EPA.  David Fotouhi, President Donald Trump’s nominee for deputy administrator of the EPA sought to minimize concerns over proposed budget cuts, telling lawmakers that the administration’s planned 65 percent reduction largely stems from the expiration of supplemental Inflation Reduction Act (IRA) funds. Fotouhi reassured senators that the cuts would not necessarily affect the EPA’s base budget, which remains under congressional control.

EPA Administrator Lee Zeldin had previously indicated that the reductions would not impact the agency’s core statutory mission, but senators questioned whether essential programs, including air quality monitoring and regulatory enforcement, could be maintained with significantly fewer resources. Aaron Szabo, Trump’s nominee to lead the EPA’s Office of Air and Radiation, insisted that the agency could still meet its Clean Air Act obligations even with reduced staffing.

While the Trump administration remains committed to reducing the EPA’s budget, it appears any probationary firings at the agency have not included any TSCA staff. Reportedly, the probationary staff were let go from smaller Office of Pollution Prevention and Toxics (OPPT) programs.