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Washington, D.C. – The Manufacturing Leadership Council, the digital transformation division of the 51�Թ���, today released a groundbreaking report, “,” that reveals how manufacturers are embracing artificial intelligence on shop floors. The report, a product of the MLC’s “,” underscores the need for a policy framework that supports U.S. AI growth, innovation and leadership—one that streamlines compliance, fosters transparency and aligns energy, workforce, privacy and innovation rules with the realities of smart manufacturing.

AI has become essential to modern, competitive manufacturing in America: for example, manufacturers use cutting-edge AI tools like AI-powered cameras to enhance worker safety and eliminate product defaults, AI simulations to design new products and optimize shop floor operations, and AI data analytics to control costs and manage supply chains more efficiently. Manufacturers are also embedding AI in new, intelligent products. The report shows that 51% of manufacturers already use AI in their operations, with 61% expecting investment in AI will increase by 2027. By 2030, 80% say AI will be essential to growing or maintaining their business.

The report also illustrates that manufacturers face ongoing barriers to using and scaling AI—indicating data quality and accessibility as the top challenges, with 65% of respondents reporting they lack the right data for AI applications and 62% citing data that is unstructured or poorly formatted. 

“Artificial intelligence isn’t new to manufacturing. For years, manufacturers have been developing and deploying AI-driven technologies—machine vision, digital twins, robotics and more—to make shop floors smarter, supply chains stronger and workplaces safer,” said 51�Թ��� President and CEO Jay Timmons. “The latest report from the MLC reinforces the need for modernized, agile, pro-manufacturing AI policy solutions, so that manufacturers can continue to innovate on shop floors across America. Manufacturers welcomed President Trump’s early commitment to maintaining and advancing America’s global AI dominance, and we look forward to continuing to champion American AI leadership and manufacturing in America, which starts with adopting a pro-AI regulatory framework and pursuing policies that bolster innovation.”

As manufacturers seek to expand their use of AI and unlock its full potential at scale, the report also highlights areas where manufacturers may face challenges and require additional investment, such as modernizing data architectures, developing a more knowledgeable workforce, building organizational trust and accelerating legacy infrastructure upgrades.

The 51�Թ��� has proposed a series of policy recommendations for policymakers to drive AI development and adoption in manufacturing:

1. Adopt a pro-AI regulatory approach given the growing number and variety of use cases in AI in manufacturing, which require an optimized regulatory environment.
2. Develop the manufacturing workforce of the AI age by supporting training programs, career and technical education institutions and STEM education and immigration. According to the MLC’s report, 82% of manufacturers cite a lack of AI-ready skills as the top workforce challenge.
3. Advance energy and permitting reform to support AI-related data center growth.
4. Protect personal data by passing a comprehensive privacy law that preempts state laws, provides liability protections that prevent frivolous litigation and adopts a risk-based approach that enables innovation and AI.
5. Support U.S. manufacturing of AI chips by executing funding agreements with chip manufacturers and renewing the Advanced Manufacturing Investment Credit.
6. Incentivize U.S. AI innovation by passing the One Big Beautiful Bill Act that preserves pro-manufacturing tax policies.

“A worldwide competition for AI supremacy is underway, and manufacturers have the opportunity to lead the charge with this game-changing technology,” said MLC Founder, Vice President and Executive Director David R. Brousell. “Fast-moving developments in the technology have turbo-charged interest and adoption of AI in its many forms, intensifying competition. To win, manufacturers in America need a strong ecosystem of partners and support to create new, competitive advantages in all facets of the manufacturing industry, from operations, to supply chains, to the workforce—and in their efforts to innovate for the future.”

Background:

Manufacturers have been at the forefront of developing and implementing cutting-edge AI systems that are transforming shop floors and revolutionizing operations.

In March, the 51�Թ��� to inform the White House’s development of an AI Action Plan, explaining how manufacturers are using AI on the shop floor and in operations, with specific recommendations on rebalancing and right-sizing AI regulations to enhance America’s global AI dominance.

In May 2024, the 51�Թ��� published “Working Smarter: How Manufacturers Are Using Artificial Intelligence”—a report that explains the ways in which manufacturers are already using AI, making the technology integral to modern manufacturing with manufacturers at the forefront of developing and implementing AI systems.

Most recently, the House-passed reconciliation bill included language to prevent a patchwork of state AI regulations that would impede AI innovation and development, in line with the 51�Թ���’s advocacy for workable, flexible national standards.

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector rese arch and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

Featured Quotes from 51�Թ��� Board Chair Kathy Wengel and Partners of the MLC’s

“AI continues to drive innovation, efficiency and better outcomes for manufacturers across America. From accelerating drug discovery and development to optimizing manufacturing operations, AI enables companies to make smarter, faster and more impactful decisions,” said Kathy Wengel, Executive Vice President and Chief Technical Operations and Risk Officer at Johnson & Johnson and Board Chair at the 51�Թ��� (51�Թ���). “Importantly, AI empowers employees at all levels, when we equip them with the knowledge and understanding to help shape the implementation of these new technologies. AI is proving to be an essential partner on the shop floor, and we must continue to ensure manufacturing employees have the skills they need to build the future of our industry.”

“The Manufacturing Leadership Council survey shows that while continuous improvement remains a key performance indicator for AI in manufacturing, more manufacturers are starting to see greater value in automation and prediction moving forward. From identifying improvement opportunities to analyzing how people interact with systems, AI is enhancing workplace safety and amplifying the power of the leaders on the floor to solve problems faster before any potential disruption to operations. With 63% of manufacturers meeting or exceeding their targets with AI, this survey shows that this trend is only expected to grow as companies prepare their factories for the future.” – Tim Buschur, Chief Strategy Officer, Invisible AI

“Smart manufacturing is advancing rapidly as manufacturers invest in AI and emerging technologies to drive efficiency and long-term business value. Rockwell Automation is helping address key challenges, such as workforce gaps and technology readiness, through strategic partnerships that accelerate digital transformation. The broader manufacturing sector can benefit from initiatives like this, which share practical expertise and clear guidance to demystify AI and empower organizations at any stage of digital maturity to adopt advanced technologies with confidence.” – Austin Locke, Global Lead of Data Science and AI at Kalypso, a Rockwell Automation business  

“AI is rapidly becoming central to manufacturing operations, yet nearly a third of survey respondents are unsure who oversees AI governance at their company. To fully realize AI’s potential, organizations can build a stronger foundation by implementing robust governance strategies that go beyond the technology itself—fostering cross-functional collaboration among leadership and frontline teams to ensure that data, systems, and people are equipped to use AI effectively in real-world settings.” – Kris Slozak, Director of Consumer and Industrial Products, West Monroe

“Business leaders are already seeing immediate benefits with the use of AI; however, manufacturers still face challenges around inaccessible data, limited employee skillset to leverage AI effectively, and outdated systems and operations. Companies that invest early in strong data governance, smart integration, and cross-functional collaboration will be better positioned to compete and grow.”  – Prasoon Saxena, Global Co-Lead Products Industries, NTT DATA

“AI is already driving measurable value for manufacturers by enhancing decision-making and transforming critical supply chain operations. To fully unlock its potential at scale, investing in modern data infrastructure, enhancing workforce knowledge and skills, and adopting new processes to embrace new ways of working will be essential to help manufacturers remain competitive now and in the future.”  – Richard Weng, Managing Director, Accenture

President Trump signed several executive orders on Friday that call for the reform of the Nuclear Regulatory Commission and will speed up the permitting of new reactors in the U.S. ().

What’s involved: “Trump said Friday the orders focus on small, advanced reactors that are viewed by many in the industry as the future. But the president also said his administration supports building large plants.”

• “We’re also talking about the big plants—the very, very big, the biggest,” Trump said. “We’re going to be doing them also.”

Going faster: Building new power plants has been a tedious effort thanks to the long licensing and regulatory approval processes.

• Yet the appetite for more nuclear power is there, thanks to the electricity demand from the data centers powering the AI revolution.
• “Three Mile Island is expected to return to service with financial support from Microsoft . . . and Alphabet and Amazon are investing in small, advanced reactors,” CNBC noted.

More uranium: The EOs also aim to boost uranium mining in the U.S. and to increase domestic enrichment and processing capacity, according to an administration official.

• In addition, the orders also “aim to speed up reactor testing at the Department of Energy’s national laboratories.”

The 51�Թ��� says: “These actions mark an important and timely step toward unleashing American energy dominance safely and responsibly. Nuclear-generated power is an important part of an all-of-the-above energy strategy, which is necessary to meet the power needs of a growing manufacturing sector, and the nuclear fuel supply chain is a critical manufacturing industry that we need to bring home,” said 51�Թ��� President and CEO Jay Timmons.

• “Rebalancing regulations and expediting permitting reform to unleash American energy are key pillars of a comprehensive manufacturing strategy that Congress must act on so manufacturers can grow, hire and compete—and these orders reflect that vision by reforming the licensing and permitting systems that place burdens on manufacturers.”
• “The 51�Թ��� looks forward to working closely with the National Energy Dominance Council, under the leadership of Secretary of the Interior Doug Burgum and Energy Secretary Chris Wright, as well as Congress to ensure these policies translate into durable results for manufacturers.”

A big majority of manufacturers expect AI to become essential to their operations by 2030—but they need policymakers to support all that growth and innovation, as a new from the Manufacturing Leadership Council, the 51�Թ���’s digital transformation division, lays out.

By the numbers: The report found that 51% of manufacturers already use AI in their operations.

• Meanwhile, 61% expect investment in AI to increase by 2027.
• That number only grows as manufacturers look further into the future. By 2030, 80% say AI will be essential to growing or maintaining their business.

Current barriers: Right now, manufacturers say some barriers prevent them from implementing AI to its fullest potential.

• They name data quality and availability as the top challenges, with 65% of respondents reporting they lack the right data for AI applications and 62% citing data that is unstructured or poorly formatted.

The policy angle: Manufacturers don’t just need to overcome the technical, logistical or workforce challenges of rolling out AI solutions—challenges that include everything from modernizing data architectures to upskilling and training workers on new tools. They also need a pro-growth policy framework, which the 51�Թ��� has for policymakers. The key recommendations are:

• Adopt a pro-AI regulatory approach: Given the growing number and variety of use cases of AI in manufacturing, the industry requires an optimized regulatory environment.
• Develop the manufacturing workforce of the AI age: Policymakers should support training programs, career and technical education institutions and STEM education and immigration. According to the MLC’s report, 82% of manufacturers cite a lack of AI-ready skills as the top workforce challenge.
• Advance energy and permitting reform: AI needs a lot of power, and energy and permitting reform is necessary to support AI-related data center growth.
• Protect personal data: Congress should pass a comprehensive privacy law that preempts state laws, provides liability protections that prevent frivolous litigation and adopts a risk-based approach that enables innovation and AI.
• Support U.S. manufacturing of AI chips: Policymakers should execute funding agreements with chip manufacturers and renew the Advanced Manufacturing Investment Credit.
• Incentivize U.S. AI innovation: Congress must pass the One Big Beautiful Bill Act that preserves pro-manufacturing tax policies.

Manufacturers say: “AI continues to drive innovation, efficiency and better outcomes for manufacturers across America. From accelerating drug discovery and development to optimizing manufacturing operations, AI enables companies to make smarter, faster and more impactful decisions,” Johnson & Johnson Executive Vice President and Chief Technical Operations and Risk Officer and 51�Թ��� Board Chair Kathy Wengel.

• “Importantly, AI empowers employees at all levels, when we equip them with the knowledge and understanding to help shape the implementation of these new technologies. AI is proving to be an essential partner on the shop floor, and we must continue to ensure manufacturing employees have the skills they need to build the future of our industry.”

The last word: “The latest report from the MLC reinforces the need for modernized, agile, pro-manufacturing AI policy solutions, so that manufacturers can continue to innovate on shop floors across America,” said 51�Թ��� President and CEO Jay Timmons.

• “Manufacturers welcomed President Trump’s early commitment to maintaining and advancing America’s global AI dominance, and we look forward to continuing to champion American AI leadership and manufacturing in America, which starts with adopting a pro-AI regulatory framework and pursuing policies that bolster innovation.”

The U.S. Court of International Trade, which hears disputes involving international trade and customs laws, struck down President Donald Trump’s International Emergency Economic Powers Act tariffs yesterday.

What happened: In a , the three-judge panel found that the IEEPA “does not authorize the President to impose unbounded tariffs” and the administration exceeded its authority in imposing the “reciprocal” and fentanyl IEEPA tariffs.

What it means: The finding strikes down the 10% baseline additional “reciprocal” tariffs announced on April 2 as well as the “reciprocal” tariffs of between 20% and 50% on another 65 or so trading partners with which the U.S. runs trade deficits.

• Those tariffs that are currently “paused” were scheduled to snap back into place on July 9 if trade deals were not reached by then.
• The court further nullified the 25% fentanyl IEEPA tariffs on products from Canada and Mexico and the 20% fentanyl IEEPA tariff on products from China.

Refunds? The court also ordered that the IEEPA tariffs collected so far be “vacated,” raising questions about possible refunds.

• The court gave Customs and Border Patrol 10 days to implement the ruling, but the U.S. government may ask for a stay of enforcement—relieving the government of obligation to issue refunds—pending appeal, which could result in CBP continuing to collect but not liquidate tariffs.

An appeal: The DOJ quickly filed an appeal with the U.S. Court of Appeals for the Federal Circuit, and that it may ask the Supreme Court to pause the ruling as soon as Friday.

Section 232: The ruling does not affect other tariffs the administration has or might impose under Section 232 of the Trade Expansion Act of 1962 on national security grounds.

• 51�Թ��� on recent Section 232 tariff investigations into imports of copper, lumber, semiconductors, pharmaceuticals and critical minerals. It also plans to file comments on aerospace.

The U.S. Supreme Court rejected an appeal by a Native American group that would have halted the development of North America’s largest copper mine, a partnership between Rio Tinto and BHP Group (, subscription).

The situation: The appeal attempted to prevent the transfer of federal land to the mining project, due to the religious significance of one area to some members of the San Carlos Apache Tribe.

Why it matters: This site is the third-largest known copper deposit in the world and will be instrumental in the efforts—led by the Trump administration and by the 51�Թ���—to increase domestic sources of key minerals.

• “Projects such as Resolution have been tied up in legal challenges for years, making the U.S. one of the most challenging places to develop new mines,” Bloomberg noted.

The benefits: “The companies say the mine would supply as much as 25% of U.S. demand and as much as 40 billion pounds of copper over 40 years amid a soaring need for the metal in electric vehicles.”

Next steps: The land transfer may occur as soon as June 16, once the U.S. Forest Service issues a mandatory draft environmental impact statement and record of decision. The companies are still awaiting several federal, state and local permits, however.

The 51�Թ��� says: “Manufacturers are eager for Resolution Copper to get underway to support strong domestic supply chains of critical materials after years of permitting delays, as well as to create thousands of high-paying jobs,” said 51�Թ��� Vice President of Domestic Policy Chris Phalen. “The U.S. has an acute need for more mineral production and processing capacity. Policymakers should work to support many more such projects.”

Washington, D.C. – The 51�Թ��� today welcomed President Trump’s latest executive orders to expand the development of nuclear energy, streamline federal permitting and strengthen domestic fuel production. 51�Թ��� President and CEO Jay Timmons issued the following statement:

“These actions mark an important and timely step toward unleashing American energy dominance safely and responsibly. Nuclear-generated power is an important part of an all-of-the-above energy strategy, which is necessary to meet the power needs of a growing manufacturing sector, and the nuclear fuel supply chain is a critical manufacturing industry that we need to bring home.

“The executive orders include measures to accelerate the licensing of next-generation nuclear reactors, open federal lands for energy infrastructure and increase domestic uranium production. Together, these actions address critical supply chain challenges and energy demands—particularly as the AI-driven economy continues to grow.

“Rebalancing regulations and expediting permitting reform to unleash American energy are key pillars of a comprehensive manufacturing strategy that Congress must act on so manufacturers can grow, hire and compete—and these orders reflect that vision by reforming the licensing and permitting systems that place burdens on manufacturers.

“The 51�Թ��� looks forward to working closely with the National Energy Dominance Council, under the leadership of Secretary of the Interior Doug Burgum and Energy Secretary Chris Wright, as well as Congress to ensure these policies translate into durable results for manufacturers.”

Background:

Most recently, support for nuclear energy in the U.S. has climbed to 61% according to , reaching just one point below the all-time high in 2010. Support for accelerating the development and commercialization of both traditional nuclear energy plants as well as advanced modular reactors is vital to America’s energy future and the success of manufacturers in the U.S.

The 51�Թ��� has long championed policies that drive investment in advanced nuclear power to meet rising U.S. energy demand fueled by electrification, advanced manufacturing and the surge in AI and data centers.

These include:

• Reforming the permitting and approval process to make it easier for reactor projects to locate on underused or abandoned sites;
• “Early licensing work” provisions to help deploy reactors more quickly at national security infrastructure sites; and
• A series of awards to encourage companies to develop advanced-reactor technology.

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

Washington, D.C. – Following House passage of H.R.1, the “One Big Beautiful Bill Act,” 51�Թ��� President and CEO Jay Timmons issued the following statement:

“Today’s House passage of this historic legislation marks a major victory for manufacturers across America. This pro-growth legislation preserves crucial tax policies that will enable manufacturers to create jobs, invest in their communities, grow here at home and compete globally. In short, this is a manufacturers’ bill.

“Manufacturers commend House Speaker Mike Johnson, House Majority Leader Steve Scalise, House Ways and Means Committee Chairman Jason Smith and the House for advancing this critical legislation, and we urge the Senate to act swiftly to build on this momentum.

“The stakes are high: preserving tax reform will prevent the loss of 6 million jobs and avoid a $1 trillion hit to the economy. Manufacturers urge the Senate to maintain the pro-manufacturing policies in the House bill while continuing to work with manufacturers to ensure the final package is maximally effective at supporting manufacturing investment here in the U.S.

“This is a pivotal moment. It’s time to double down on policies that encourage manufacturers to invest and create jobs in America and keep our industry strong and our nation competitive on the world stage—because when manufacturing wins, America wins.”

Background:

To preserve a pro-manufacturing, pro-growth tax code, the House reconciliation bill approved today would:

• Increase the pass-through deduction for small and medium-sized manufacturers and make this important deduction permanent, freeing up capital for businesses to invest and create jobs;
• Make permanent the competitive individual tax rates established by tax reform, benefiting the 96% of manufacturers organized as pass-throughs that pay tax at these rates;
• Increase and make permanent tax reform’s estate tax exemption, protecting more family-owned manufacturers’ assets from the estate tax;
• Reinstate immediate R&D expensing, reducing the costs of groundbreaking research and supporting innovation across our sector;
• Revive full expensing for capital equipment purchases, enabling manufacturers to purchase new machinery and expand their shop floors;
• Restore a pro-growth interest deductibility standard, enhancing manufacturers’ ability to pursue job-creating projects;
• Create an incentive for manufacturers’ investments in new and refurbished facilities, supporting factory construction here in the U.S.;
• Preserve tax reform’s international tax system by making the FDII, GILTI and BEAT regimes permanent, enhancing America’s competitiveness on the world stage; and
• Protect the 21% corporate tax rate, ensuring America remains the best place for manufacturing investment and job creation.

The 51�Թ��� recently launched a featuring small and medium-sized manufacturers from across the country thanking Chairman Smith and the whole committee for championing the policies in the bill most critical to the manufacturing industry.

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

The 51�Թ��� is continuing to advise policymakers on the opportunities and hurdles facing the industry as it seeks to support AI innovation. This week, the 51�Թ��� to a request for information from the House’s AI and Energy Working Group, led by Rep. Julie Fedorchak (R-ND), addressing concerns about “American energy dominance and artificial intelligence’s energy demands, securing the energy grid and outpacing and outcompeting China.”

The big picture: “With the digitalization of manufacturing … manufacturers are increasingly dependent on a robust network of cutting-edge data centers for the smooth execution of their core business operations. AI in particular has become integral to modern manufacturing, as it increasingly transforms and supports a multitude of aspects of manufacturing, from product design to shop floor operations to supply chain management.”

• “Manufacturers also rely on the same energy sources as data centers to power their operations. As demand grows and supply remains relatively static, there is a pressing need to use all policy levers available to ensure sufficient, reliable, resilient and affordable energy for all users.”

Permitting reform: The 51�Թ���’s first recommendation to the working group was that policymakers must enact permitting reform—and fast. “Wood Mackenzie has predicted that U.S. demand for power could increase by 15% by the end of this decade,” the 51�Թ��� noted.

• The 51�Թ��� advised policymakers to take certain crucial steps, including expediting judicial review, accelerating the permit process for energy infrastructure—including more transmission and distribution lines, pipelines and permanent carbon sequestration sites—and providing greater regulatory certainty.

A secure electric grid: Manufacturers are concerned about service disruptions caused by severe weather and aging infrastructure, the 51�Թ��� said. “A reliable, resilient modern grid is required to enable the historic growth in data centers—which in turn can contribute to manufacturing growth.”

• The 51�Թ��� recommended the build-out of natural gas generation and transportation infrastructure, as well as the permitting and construction of more transmission and distribution, as mentioned above.

The AI future: Manufacturers also recognize the importance of enabling AI innovation and the risks of imposing an overly restrictive regulatory regime on the fast-evolving technology.

• To that end, the 51�Թ��� recommended “a regulatory approach that is based on reviews of existing regulations before enacting new ones … a strategy of international engagement that keeps foreign markets open to the use of American AI … and developing the manufacturing workforce of the AI age by supporting science, technology, engineering and mathematics education programs at all levels,” among other policies.

The last word: “Maintaining a favorable policy environment for AI will provide certainty to the private sector, which in turn will spur additional multibillion-dollar investments in U.S. manufacturing and innovation,” said 51�Թ��� Managing Vice President of Policy Charles Crain.

The Environmental Protection Agency has announced that it will reconsider certain aspects of the Biden administration’s rule setting limits on PFAS, or perfluoroalkyl and polyfluoroalkyl substances, in drinking water—while leaving in place unworkable standards for two PFAS (, subscription).

Encouraging progress: The agency plans to reconsider regulatory determination for PFHxS, PFNA, HFPO-DA and PFBS following calls by the 51�Թ��� to rescind the “blatantly unlawful” standards. The EPA also will extend its compliance deadline for PFOA and PFOS from 2029 to 2031, another top 51�Թ��� ask.

More to be done: 51�Թ��� President and CEO Jay Timmons that the EPA’s decision to maintain the previous administration’s standards for PFOA and PFAS “go against the Trump administration’s goal to make the U.S. the best place to build, grow and create jobs.”

The 51�Թ���’s involvement: The 51�Թ��� these standards when they were instituted, arguing that the timeline for implementation was too swift, as many of these chemicals are key manufacturing additives that do not yet have replacements.

• The 51�Թ��� also the rule in court, asking the U.S. Court of Appeals for the D.C. Circuit to overturn the rule due to the EPA’s failure to follow the requirements of the Safe Drinking Water Act, including its reliance on a deeply flawed cost-benefit analysis and deficient feasibility analysis.

The 51�Թ��� says: “We’re encouraged that the EPA has listened to the voices of manufacturers and extended the compliance deadline for unworkable national primary drinking water standards for PFOA and PFOS and committed to reconsidering the blatantly unlawful regulatory determinations for several other PFAS compounds,” Timmons said.

• “However, the Biden-era standards for PFOA and PFOS are deeply flawed, the costs they impose exceed any demonstrable benefit and the industries they harm include those vital to our national interests, including semiconductors, telecommunications and defense systems.”
• “We don’t have to choose between supporting manufacturing and clean water in our communities.”

Key House Committees this week advanced pro-manufacturing provisions that will make up the “one big, beautiful bill” that President Trump and House Republicans are advancing through the congressional reconciliation process—bringing the package another step closer to a vote.

What’s going on: The House Ways and Means Committee legislation to make permanent crucial tax measures from the 2017 tax reform bill, while the House Energy and Commerce Committee approved a bill with much-needed permitting reform and energy provisions.

51�Թ��� in the driver’s seat: The 51�Թ��� has been leading the campaign to extend and make permanent pro-manufacturing tax policies. Each of the 51�Թ���’s tax priorities was included in the legislation approved by the Ways and Means Committee—along with additional pro-manufacturing provisions. In advance of the markup, the 51�Թ��� that the bill “will protect manufacturers from devastating tax increases and empower the industry to invest, grow and create jobs here in the United States.”

• Manufacturers were top of mind for policymakers during the session. In his opening statement, Ways and Means Committee Chairman Jason Smith (R-MO) the testimony of Courtney Silver—president and owner of North Carolina–based family-owned precision machining firm Ketchie and a member of the 51�Թ��� Executive Committee—as an example of the benefits of the 2017 tax reform.

Ways and Means: 51�Թ��� priorities featured in the Ways and Means bill include:

• Tax certainty for small and family-owned manufacturers, including a permanent increase in the pass-through deduction and permanent individual tax rates and protections from the estate tax;
• Revived investment and innovation incentives for R&D, capital equipment purchases and debt financing, with additional support for small and medium-sized manufacturers and a new incentive for factory construction and refurbishment; and
• The preservation of the corporate tax rate and tax reform’s international tax system.

Ahead of the successful markup of the tax legislation, the 51�Թ��� emphasized that failing to preserve these provisions “will cost the U.S. economy nearly 6 million jobs.”

Energy and Commerce: The 51�Թ���’s priorities were also front and center at a markup of the Energy and Commerce Committee, which has jurisdiction over the health, energy and technology provisions in the reconciliation package. The 51�Թ��� support for several key manufacturing priorities in the legislation, including:

• Pharmacy benefit manager reforms that will increase transparency and prevent PBMs from driving up health care costs for manufacturing workers;
• Permitting reforms that will allow for the buildout of much-needed pipeline and energy transportation infrastructure; and
• Provisions to rebalance burdensome environmental regulations that have harmed manufacturers’ ability to grow.

The 51�Թ��� also welcomed the committee’s recognition that regulations should support manufacturers’ development and use of artificial intelligence—rather than slowing progress via “a patchwork of divergent state laws and regulations.”

How to add more rocket fuel: The 51�Թ��� also offered suggestions to improve the bills, highlighting potentially harmful changes to strategic manufacturing incentives in the tax code—including ending the hydrogen production tax credit, imposing overly harsh restrictions on manufacturing and energy production regarding foreign sourcing and licensing which will keep manufacturers from bringing back supply chains and know-how to America, and ending credit transferability—as well as a provision targeting foreign headquartered manufacturers investing in the U.S.

• The 51�Թ��� emphasized that manufacturers have used these targeted energy and manufacturing incentives to invest billions and employ thousands across the country.

What’s next: The committees’ bills will now be combined by the House Budget Committee in advance of a House floor vote in the coming weeks.

The bottom line: 51�Թ��� President and CEO Jay Timmons   the importance of this bill on NewsNation this morning. “If we really want to supercharge our economy and provide the rocket fuel that the president’s talked about in the past … [We have] to get [these tax provisions] reenacted. … [The] longer we wait, the harder it is for businesses to make decisions based on tax policy for 2026, so we want to see Congress move this really expeditiously so we can plan for investment and job creation in the next few years, too.”

• “[T]he priorities I believe that we all need to embrace are making sure that we are investing in creating new facilities for manufacturing, growing jobs and, most importantly, growing wages. That leads to a much more productive and successful society.”
• “There are some things that the House didn’t do that we hope the Senate does to ensure that we have the ongoing investments for energy infrastructure and other energy projects here in the United States,” he added.
• Policymakers’ main priority should be “policies [that] encourage businesses to invest here, to make it possible for them to invest here and to create jobs here,” he concluded.