51�Թ���

Manufacturers operate in a world of complex legal and regulatory challenges. In the wake of a national election, with a new administration and Congress on the horizon, those challenges are amplified, as in-house counsel must navigate a rapidly evolving compliance landscape.

The 51�Թ���’s third-annual Manufacturing Legal Summit, held Nov. 12–13 at the Willard InterContinental in Washington, D.C., helped in-house counsel at manufacturing companies map the road ahead. The event brought together nearly 150 such leaders from across the United States to share information and best practices.

The goal: “This is the only legal conference geared specifically for manufacturing lawyers,” said 51�Թ��� Deputy General Counsel for Litigation Erica Klenicki. “What we hear consistently is that the opportunity to connect with others in the industry who are dealing with the same challenges is invaluable. Especially on the brink of a new administration and regulatory environment, we were able to provide connection and content that attendees found particularly helpful.”

The program: The Legal Summit covered a range of topics, including the following:

• Antitrust: A team of experts from Freshfields, including former FTC Commissioner Christine Wilson, joined with Saint-Gobain North America Senior Vice President, General Counsel & Secretary La-Toya Hackney to offer a candid deep dive into enforcement trends from the Biden FTC and what to expect from the new administration.
• Supply chain and ESG: Experts from Foley & Lardner joined Pelican Products Corporate Import/Export Compliance Manager Susan Cass to discuss the growing requirements surrounding supply chain transparency and integrity and best compliance practices for multinational companies.
• PFAS: Industry leaders from Greenberg Traurig provided a comprehensive overview of per- and polyfluoroalkyl substances, including the changing definition of PFAS, the regulatory landscape and how environmental marketing impacts risk, corporate strategy and consumer trust.
• Junk science: This product liability session offered strategies for combating junk scientific theories used to wage high-stakes litigation. It was led by experts from Shook, Hardy & Bacon, as well as Kimberly-Clark Corporation Associate General Counsel Kelly Vickers and Johnson & Johnson Assistant General Counsel Aviva Wein.
• NLRB: Experts from Fisher Phillips recapped the Biden Board’s sweeping changes to labor law and offered predictions on which changes will remain when the new administration takes the helm.
• Election debrief: 51�Թ��� Managing Vice President of Government Relations Stef Webb offered attendees clarity and context on the 2024 general election, including the political outlook for manufacturers in a Republican-controlled Congress and White House.
• Regulatory law: Panelists from Kennametal, Saint-Gobain and U.S. Steel joined moderator Brendan Collins of Ballard Spahr to talk about recent landmark changes to administrative law and the impact of those decisions on their companies’ approaches to compliance and enforcement.
• AI: Counsel Eran Kahana from Maslon LLP led a thought-provoking discussion on the intersection of generative AI and legal ethics, including the due diligence obligations of in-house counsel as firms adopt this evolving technology.

The reaction: Participants spoke highly of the content and the opportunity for relationship building:

• “This was my first 51�Թ��� Legal Summit, and I could not be more pleased with the topics presented, as well as the networking opportunities,” said Erin Tannock, compliance counsel for Viega LLC. “The content was relevant and current. I even had a few ‘aha’ moments! This event is worth the time, and I will be attending for years to come.”

On Nov. 5th, President-elect Donald Trump secured enough electoral college votes to become the 47th President of the United States. Republicans also flipped four Senate seats, meaning they will have a 53-47 majority entering the 119th Congress, and maintained control of the House though a small number of congressional races remain outstanding. For the first time since 2016, Republicans will have unified control of both Congress and the White House once President-elect Trump is sworn in on Jan. 20, 2025.

For now, as we enter the “lame duck” session of the 118th Congress, there remains a substantial laundry list of items for members to address before adjourning this session. Both the House and Senate return this week for the first time since the October break.

119th Congress Leadership Elections

Upon having control of both chambers next Congress, House and Senate Republicans returned to Washington this week to elect their respective leadership teams and establish their rules packages for the 119th Congress.

House Republican Leadership

• Speaker of the House – Mike Johnson (R-LA)
• House Majority Leader – Steve Scalise (R-LA)
• House Majority Whip – Tom Emmer (R-MN)
• House Republican Conference Chair – Lisa McClain (R-MI)
  Rep. McClain is replacing Elise Stefanik (R-NY) who has been nominated as Ambassador to the United Nations by President-elect Trump.

Senate Republican Leadership

• Senate Majority Leader – John Thune (R-SD)
  Sen. Thune will be taking over as GOP Leader from Mitch McConnell (R-KY), who is stepping down after a record 18 years in the position.
• Senate Majority Whip – John Barrasso (R-WY)
• Conference Chair – Tom Cotton (R-AR)
• Policy Chair – Shelley Moore Capito (R-WV)

House Democratic Leadership

House Democrats have scheduled their leadership elections for Nov. 19th. It is unlikely there are major changes for the current leadership roster.

• House Minority Leader – Hakeem Jeffries (D-NY)
• House Minority Whip – Katherine Clark (D-MA)
• House Democratic Caucus Chairman – Pete Aguilar (D-CA)

Senate Democratic Leadership

Senate Democrats have not currently scheduled their leadership elections, but it is unlikely the top two positions change. There will be an opening for the third ranking position with Senator Debbie Stabenow (D-MI) retiring.

• Minority Leader – Chuck Schumer (D-NY)
• Minority Whip – Dick Durbin (D-IL)
• Chair of Policy and Communications Committee – To be determined
  Debbie Stabenow (D-MI) is retiring from Congress. Amy Klobuchar (D-MN) and Cory Booker (D-NJ) have signaled their interest in this position.

Lame Duck Legislative Outlook

Congress has roughly five legislative session weeks before the Christmas break and several policy items to address in that time. Upon returning to Washington, policymakers face two must-pass pieces of legislation: the FY 2025 National Defense Authorization Act and a government funding package to prevent a shutdown when current funding runs out at midnight on Dec. 20th. On either NDAA or the government funding package, lawmakers may seek to include some form of disaster relief for victims of the recent hurricanes and an extension of the current Farm Bill.

In the Senate, it is likely that Democratic Majority Leader Chuck Schumer will move to advance as many of President Joe Biden nominees, including judicial appointments, as possible in the remaining weeks before Republicans take control of the confirmation process next year. Finally, the current debt limit suspension expires on Jan. 2, 2025. Congress will have to address the limit, or Treasury will be forced to take “extraordinary measures” to avoid a default in early 2025.

With these remaining weeks, the 51�Թ��� continues to engage and encourage lawmakers to advance manufacturers’ priorities before Congress adjourns for the year.

When employers tell workers that unionizing would harm employee–manager relationships, they might be violating federal law, the National Labor Relations Board ruled last week (, subscription).
��
What’s going on: “Telling workers that a union would come between them and their bosses may violate the National Labor Relations Act because it’s an effective threat to end workers’ direct relationships with management, a majority comprising the board’s three Democrats said [last] Friday in a case involving Starbucks.”

• The groundbreaking decision overturns nearly four decades of precedent. In its 1985 Tri-Cast ruling, the NLRB allowed employers to tell employees that unionization would strain worker–manager relationships “so long as they didn’t explicitly or implicitly threaten employees” when doing so ().
• The NLRB said such cases will now be decided on a case-by-case basis.

Looking ahead: The ruling will only apply to future cases, however, “allowing past communications under the Tri-Cast standard to stand without retroactive penalties” (JD Supra).

Washington, D.C. – The 51�Թ��� has launched a seven-figure video and digital advertising campaign urging Congress to pass legislation this year to bring much-needed reform to pharmacy benefit managers, whose practices increase health care costs for manufacturers and manufacturing workers. The 51�Թ���’s found that 78% of small manufacturers with fewer than 50 employees cite rising health care costs as a primary business challenge—the top concern among small business respondents in the survey.

“Manufacturers are clamoring for Congress to rein in PBMs this year. The momentum is with lawmakers to enact comprehensive reform in both the government and commercial health insurance market that increases transparency and reduces prices for everyone,” said 51�Թ��� President and CEO Jay Timmons. “Manufacturing workers and retirees are spending more at the pharmacy counter, in large part because insurer-owned PBMs drive up their own profits by inflating prescription drug prices and pocketing discounts that biopharmaceutical manufacturers intended to be passed on to patients.”

Timmons continued, “Congress has an extraordinary opportunity in the lame duck to pass transformative legislation that increases transparency into PBMs’ business practices, delinks PBM compensation from drug prices and puts patients first.”

To view the 51�Թ���’s latest digital ad, click .

-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 $2.91 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��

With a new administration and Congress on the horizon, the 51�Թ��� is signaling confidence in its ability to secure wins for manufacturing in the United States, highlighting both recent achievements and policy priorities moving forward.

“The 51�Թ��� has always focused on what’s best for manufacturing in America, and our track record speaks to that,” said 51�Թ��� Executive Vice President Erin Streeter. “Our approach is consistent because we know what it takes to get results.”

What we’ve delivered:��With post-partisan engagement, the 51�Թ��� has achieved historic policy wins across both recent administrations, including:

• Tax reform: The 51�Թ���’s advocacy����the 2017 tax cuts, driving billions in savings that manufacturers have reinvested in jobs, innovation and facility upgrades.
• Regulatory certainty: The 51�Թ��� has played a pivotal role in streamlining regulations,��reducing compliance costs��under the Trump administration and working to�� during the Biden years.
• United States-Mexico-Canada Agreement: The 51�Թ��� was a����for USMCA, safeguarding U.S. jobs by ensuring fairer competition and greater access to key markets.
• Energy advances:����have supported growth in domestic energy production, creating a more stable energy market.
• Infrastructure and CHIPS Act: The 51�Թ��� was instrumental in securing the historic ��and the , both critical for modernizing the economy, bolstering national security and ensuring a reliable semiconductor supply.

“These wins demonstrate what we bring to the table,” Streeter said. “By staying focused on manufacturing’s priorities, we can partner effectively with the new administration and Congress to create and protect jobs and strengthen communities.”

Looking ahead:��The 51�Թ���’s focus on core issues remains critical for keeping the sector competitive and resilient, Streeter continued. These issues include:

• Securing tax reform: The 51�Թ���’s��“” campaign aims to lock in key 2017 tax provisions that manufacturers rely on for stability and growth. “Tax reform has been a game-changer,” said Streeter. “Protecting that progress means more jobs and manufacturing-led growth across the country.”
• Regulatory certainty: The 51�Թ��� is advocating for��balanced regulations��that support competitiveness. “Manufacturers thrive with clear, fair rules,” Streeter noted. “We’re making sure Washington understands the importance of regulatory stability—and the danger of excessive regulation.”
• Energy security: The 51�Թ��� is working to��secure reliable, affordable energy��while fostering innovation in sustainability. “Energy security and grid reliability are top of mind for every manufacturer,” Streeter added. “We’re ensuring manufacturers can continue to innovate, grow and drive America forward.”

Bottom line: ��The 51�Թ��� remains focused on advocating for policies that strengthen��U.S. manufacturing. “Our success is built on trust and influence,” Streeter said. “Our members know the 51�Թ��� is a constant force, with the relationships and expertise to deliver, regardless of political changes.”

In related news, President-elect Trump has named campaign manager Susie Wiles as White House chief of staff (, subscription), a choice 51�Թ��� President and CEO Jay Timmons����“a powerful move to bring bold, results-driven leadership to the White House from day one.”

The 51�Թ��� recently interviewed Sen. Maggie Hassan (D-NH) on the importance of reinstating immediate expensing for companies’ research-and-development expenditures. Here’s the full interview:

51�Թ���: Sen. Hassan, Congress is facing a “Tax Armageddon” next year, as crucial provisions from 2017’s Tax Cuts and Jobs Act are set to expire. As a member of the Senate Finance Committee, what is your focus moving into next year’s debate?

Sen. Hassan: Next year, we will need to work to pass a tax cut package to support both American families and businesses. The package should build on the one that was negotiated in the Senate earlier this year, including a restoration of the full R&D tax deduction to support innovative businesses. The R&D tax deduction is an area where I have been particularly engaged in negotiations, and it is vital for our national security and economic competitiveness. We need to ensure that our tax policy fosters innovation, promotes the creation of good-paying jobs and keeps the United States at the forefront of technological advancement. We also need to prioritize a bipartisan expansion of the Child Tax Credit to support hardworking families and a bipartisan expansion of the Low-Income Housing Tax Credit to address our country’s housing shortage. I will continue to push for these critical measures throughout negotiations.

51�Թ���: As you know, for nearly 70 years, manufacturers in the U.S. were able to fully deduct their R&D expenses in the year incurred. Beginning in 2022, however, manufacturers were forced to spread their deductions over several years, greatly harming our ability to grow and compete. What is Congress doing to restore immediate R&D expensing?

Sen. Hassan: I first introduced bipartisan legislation with Sen. Todd Young to restore the R&D deduction back in 2020, and we’ve been pushing for its passage since. The R&D tax deduction has wide bipartisan support—our measure supporting full R&D expensing passed 90–5 in the Senate in 2022. Recently, we had a bipartisan tax cut package that included the R&D tax deduction’s restoration, but unfortunately, it was blocked in the Senate, despite passing the House with an overwhelmingly bipartisan 357–70 vote. It’s disappointing and frustrating.

51�Թ���: During your time as senator, you have seen how impactful R&D is for manufacturers to be able to compete on a global level. As we get closer to next year, what are you hearing from stakeholders on the need for pro-growth tax policy so American businesses can engage and grow around the world?

Sen. Hassan: The message I’m getting is clear—we can’t afford to fall behind in the global R&D race; it’s about American competitiveness and national security. Countries like China are offering massive incentives, including a 200% super-deduction for R&D. That puts American businesses at a real disadvantage, and I’m already hearing from business leaders across New Hampshire about how the expiration of the tax deduction is impacting their ability to plan for and make the investments that drive our economy forward.

There’s a critical national security component here too. We need to be at the forefront of designing, implementing and controlling new technologies, including those used for our national defense.

51�Թ���: Thank you, Sen. Hassan. What else can 51�Թ��� members do to stay engaged and be a resource for you going into next year?

Sen. Hassan: Your advocacy is crucial. I encourage 51�Թ��� members to keep speaking up about the ways in which R&D and tax policy specifically impacts your businesses and communities, as well as the need for bipartisan compromise. Doing so is invaluable in shaping effective legislation and getting it across the finish line.

With a “Tax Armageddon” looming at the end of 2025, Sen. Maggie Hassan (D-NH) is gearing up to fight for manufacturers. Sen. Hassan, who introduced the bipartisan American Innovation and Jobs Act (S. 866) with Sen. Todd Young (R-IN) in 2020 and reintroduced it last year, understands the importance of restoring expired manufacturing-critical tax provisions.

What’s going on: One of Sen. Hassan’s top priorities for 2025 is reinstating immediate expensing for companies’ research and development costs.

• For nearly seven decades, manufacturers could fully deduct R&D spending in the year those expenses were incurred. But since immediate R&D expensing was allowed to expire in 2022, manufacturers have been required to amortize R&D expenses over a period of years instead.
• “The R&D tax deduction … is vital for our national security and economic competitiveness,” Sen. Hassan told us in a recent interview for the 51�Թ���’s “” campaign, adding that she has “been particularly engaged in negotiations” on the topic. “We need to ensure that our tax policy fosters innovation, promotes the creation of [well]-paying jobs and keeps the United States at the forefront of technological advancement.”

Why it’s important: “The message I’m getting [from manufacturers] is clear: We can’t afford to fall behind in the global R&D race,” Sen. Hassan continued. “It’s about American competitiveness and national security. Countries like China are offering massive incentives, including a 200% super-deduction for R&D. That puts American businesses at a real disadvantage.”

What she’ll be doing: Though a bipartisan tax cut package that included a restored R&D tax deduction passed in the House earlier this year, the legislation stalled in the Senate. That’s only made Sen. Hassan vow to redouble her efforts in 2025.

• “[L]ooking ahead, I’m committed to working across the aisle to get this done because it’s crucial for our manufacturers, our economy and our national security,” she said.

What you can do: Manufacturer input and engagement are vital as Congress considers tax legislation next year, Sen. Hassan emphasized.

• “I encourage [manufacturers] to keep speaking up about the ways in which R&D and tax policy specifically impacts your businesses and communities, as well as the need for bipartisan compromise. Doing so is invaluable in shaping effective legislation and getting it across the finish line.”

Read the full interview .
​�ċ�ċ�ċ�ċ

The 51�Թ��� recently interviewed Rep. Adrian Smith (R-NE) about the actions that he and congressional colleagues are taking to fight a looming “Tax Armageddon.” The full text is below.

51�Թ���: Rep. Smith, Congress is facing a “Tax Armageddon” next year, as crucial provisions from 2017’s Tax Cuts and Jobs Act are set to expire. As a member of the House Ways and Means Committee, what is your focus moving into next year’s debate?

Smith: The 2017 cuts unleashed economic growth, promoted American business investment and benefitted workers more meaningfully than any policy reforms in a generation. Leading the Ways and Means Rural America Tax Team and as a member of the Main Street Tax Team, I am working hard to gather input from stakeholders, job creators and drivers of our nation’s growth potential. Manufacturing is an overlooked component of rural economies, and Americans know tax policy must encourage investment in their communities.

51�Թ���: As you know, prior to 2022, businesses could deduct 30% of earnings before interest, tax, depreciation and amortization—a deduction standard known as EBITDA. A change in the tax code limits the deduction to only EBIT—excluding depreciation and amortization. This presents an added cost for businesses taking out loans to finance large capital investments in their facilities and equipment and disproportionately impacts the manufacturing sector.�� What are you doing to correct this policy?

Smith: American manufacturers are already suffering under inflation, a worker shortage and a sustained high-interest environment in the United States. Bipartisan legislation I have introduced, the AIM Act, would amend the U.S. tax code to increase the cap on deductible business interest to pre-2022 levels. By ensuring capital-intensive industries can deduct more of the cost of interest from their taxes, we can enhance opportunities to develop new products in America, create jobs by making those products here and then sell those products around the world.

51�Թ���: Congressman, you were on the Ways and Means Committee during passage of the TCJA in 2017, so you know how impactful the legislation was for manufacturers to be able to compete on a global level. As we get closer to next year, what are you hearing from stakeholders on the need for pro-growth tax policy so American businesses can engage and grow around the world?

Smith: Ensuring our tax code reflects the cost of doing business is essential for American manufacturing to compete in the global market. Prior to 2017, even President Obama realized our tax code was making American businesses less competitive. The fact there have been no major corporate inversions since passage of the TCJA is a remarkable testament to commonsense policy. Businesses we have heard from widely agree on the importance of keeping these policies in place and sustaining our strong growth.

51�Թ���: Thank you, Rep. Smith. What else can 51�Թ��� members do to stay engaged and be a resource for you going into next year?

Rep. Smith: Contacting my office with your feedback and how you have been impacted by the TCJA is always welcome. Continue to share stories about why growth-centered tax policies are key to your success and how you would change course should they expire. Together, we can maximize productivity and growth through a tax code that is a net benefit to all.

Rep. Adrian Smith (R-NE) is fighting a looming “Tax Armageddon”—the expiration of crucial pro-manufacturing tax measures scheduled for the end of 2025.��As part of its “” campaign, the 51�Թ��� recently chatted with Rep. Smith—chair of the House Ways and Means Committee’s Rural America Tax Team and a member of the committee’s Main Street Tax Team—about how he and his colleagues are working to avert the potential disaster.

Interest deductibility: One of Rep. Smith’s priorities is restoring a pro-growth standard for . In 2022, a new limitation took effect, setting a stricter cap on how much interest manufacturers can deduct, and thereby increasing the cost of debt financing job-creating investments.

• “Bipartisan legislation I have introduced—the American Investment in Manufacturing Act—would amend the U.S. tax code to increase the cap on deductible business interest to pre-2022 levels,” Rep. Smith told the 51�Թ���.
• “By ensuring capital-intensive industries can deduct more of the cost of interest from their taxes, we can enhance opportunities to develop new products in America, create jobs by making those products here and then sell those products around the world.”

Preserving tax reform: By restoring tax reform’s lapsed provisions—including interest deductibility—and preserving policies scheduled to expire next year, Congress can build on the success of the Tax Cuts and Jobs Act, which “unleashed economic growth, promoted American business investment and benefitted workers,” Rep. Smith said.

• “Businesses we have heard from widely agree on the importance of keeping these policies in place and sustaining our strong growth.”

Read the full Q&A with Rep. Smith .

The 51�Թ��� recently talked to Rep. Joe Morelle (D-NY) about what he and his congressional colleagues are doing to help manufacturers debt finance important projects. Below is the full text of the interview.

51�Թ���: Rep. Morelle, Congress is facing a “Tax Armageddon” next year, as crucial pro-growth tax policies are set to expire at the end of 2025, and as you know, many have gone into effect already. What is your focus moving into next year’s debate?

Morelle: With provisions of the Tax Cuts and Jobs Act of 2017 set to expire, it is imperative that Congress acts to safeguard tax policies that support and strengthen American manufacturing. My focus remains on measures that enhance our economic resilience and competitiveness for families and small businesses alike. This commitment drives my introduction of the American Investment in Manufacturing Act, which aims to restore the deductible business interest cap to pre-2022 levels, encouraging vital domestic investment while mitigating the pressures of rising interest.

51�Թ���: As you know, prior to 2022, businesses could deduct 30% of earnings before interest, tax, depreciation and amortization—a deduction standard known as EBITDA. A change in the tax code limits the deduction to only EBIT—excluding depreciation and amortization. This presents an added cost for businesses to take out loans to finance large capital investments in their facilities and equipment and disproportionately impacts the manufacturing sector.�� What are you doing to correct this policy?

Morelle: This year, I had the privilege of voting to advance the Tax Relief for American Families and Workers Act in the House of Representatives. This bipartisan legislation represents significant progress by expanding the Low-Income Housing Tax Credit, enhancing the Child Tax Credit and incorporating the AIM Act—my own legislative initiative to reinstate the EBITDA deduction standard. Reestablishing this deduction is essential to addressing the current tax code’s disproportionate burden on our manufacturing sector, which relies on loans for substantial investments in critical infrastructure and equipment. I remain committed to reintroducing the AIM Act in the upcoming Congress and to restoring the EBITDA deduction to ensure the continued strength of American manufacturing.

51�Թ���: Correcting this policy would promote further domestic investment while helping address concerns about rising interest rates. As we get closer to next year, what are you hearing from stakeholders on the need for pro-growth tax policy so American businesses can engage and grow around the world?

Morelle: In today’s increasingly competitive global economy, American manufacturing is indispensable to expanding our workforce, enhancing competition and securing long-term economic growth. Unfortunately, the United States stands alone among OECD countries in applying an EBIT-based limitation, placing our industries at a competitive disadvantage. A return to the full EBITDA deduction would significantly enhance U.S. competitiveness and bolster economic prosperity. I am particularly proud that my district of Rochester, New York, was recently designated a Regional Innovation and Technology Hub by the Biden administration—a recognition that strengthens our community’s role in leading the manufacturing sector. As we approach the expiration of the TCJA, I am committed to championing pro-growth tax policies that uplift working families and drive innovation at both local and national levels.

51�Թ���: Thank you, Rep. Morelle. Is there anything else you’d like to share with readers?

Morelle: As we prepare for the new Congress, I am committed to standing with American manufacturers and collaborating with 51�Թ��� members to advance pro-growth solutions that drive our economy and support our shared vision.