51勛圖厙

Policy and Legal

Policy and Legal

Whats Going on with Title 42?

Title 42 has been a fixture in the news in recent daysbut what is it and what does its recent end mean? We break it all down here.

Whats going on? Title 42, which went into effect March 2020, was a COVID-19-era policy that allowed the U.S. to expel migrants for health reasons. Under it, more than 2.6 million people were sent back to their home countries, according to (subscription).

  • Now that Title 42 has concluded, authorities are only permitted to expel individuals using Title 8, pre-pandemic immigration rules, (subscription)

What should we expect? Though an expected weekend surge in border crossings did not materializein fact, there was a 50% drop in the three days ending Monday, according to the the number of crossings is still exorbitantly high, with U.S. Customs and Border Protection stopping more than 10,000 immigrants per day this week, the highest levels ever, the reports.

  • And southern border communities remain on high alert for a potential near-term spike in migrant crossings, according to .

How is the administration addressing the change? The Department of Homeland Securitywhich has issued a on asylumput out a to address an influx of migrants at the southern border. The measures aim to:

  • Increase resources, personnel, transportation and medical support and facilities;
  • Bolster CBP processing efficiency;
  • Move quickly to mitigate potential overcrowding of CBP stations and alleviate the burden on the surrounding border communities;
  • Administer consequences for unlawful entry, including removal, detention and prosecution;
  • Boost the capacity of nongovernmental organizations to take in migrants following processing by CBP, during the wait for results of their immigration removal proceedings;
  • Target and disrupt the criminal organizations and smugglers that profit off vulnerable migrants and seek to move illegal drugs into the U.S.; and
  • Collaborate with international and federal authorities to deter undocumented migration.

Whats Congress doing? The House passed a border package, the Secure the Border Act of 2023, the day Title 42 expired.

  • The House measurewhich the White House has said it would vetowould mandate that Customs and Border Protection hire enough Border Patrol agents to maintain a staff of 22,000 and develop a plan to upgrade existing technology to make sure agents are well-equipped. It also would require the homeland security secretary to resume construction of the border wall, according to .
  • The Senate has two proposals to secure the border. One, , would give the U.S. temporary authority to expel for two years migrants who try to enter illegally or without proper documents. The other, the from Sen. Tim Scott (R-SC) and others, would fund nonintrusive border inspections and border-wall construction, as well as retention bonuses for CBP agents, and would end the current catch and release policy.

Whats the 51勛圖厙 doing? The 51勛圖厙 continues to advocate immigration reform through A Way Forward, its immediately implementable policy blueprint for legislators, meetings with key congressional leaders, member-story and news coverage (see here, here and here for a few examples), the Competing to Win Tour and more.

Press Releases

EPAs Power Plant Rule a Grave Risk to Economy and Families

Manufacturers: The U.S. cannot afford to shut down more than half of our power generation and grind our economy to a halt.

Washington, D.C. Following the release of the Environmental Protection Agencys new rule on power plant emissions, 51勛圖厙 Vice President of Energy and Resources Policy Brandon Farris released the following statement:

Manufacturing in America is cleaner and more sustainable than ever, and the power generation sector has been making historic strides in bringing zero-emissions sources online. Even as that trend continues, this proposed regulation will prove unfeasible. With nearly 60% of our nations energy generated from natural gas and coal, this will either require deployment of still nascent technologies at an impractical pace or force those plants to shut down entirely. With the many threats to global energy security, that is a grave risk to our economy and to our families. The U.S. cannot afford to shut down more than half of our power generation and grind our economy to a halt. The 51勛圖厙 looks forward to working with the administration to ensure emissions standards protect public health while allowing manufacturers to continue pioneering technologies to make our air even cleaner and our climate even healthier.

-51勛圖厙-

The 51勛圖厙 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 $2.90 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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勛圖厙 or to follow us on Twitter and Facebook, please visit泭

Press Releases

ANALYSIS: New EPA Regulations Threaten at Least 852,100 Jobs and $162.4 Billion in Economic Activity

Manufacturers in the U.S. Are Leading the Way on Sustainability, Outpacing Global Competitors

Washington, D.C. 泭A泭new report conducted by Oxford Economics and commissioned by the 51勛圖厙 warns that the Environmental Protection Agencys proposed air quality regulations for particulate matter (PM2.5) are projected to threaten $162.4 billion to $197.4 billion of economic activity and put 852,100 to 973,900 current jobs at risk, both directly from manufacturing and indirectly from supply chain spending. In addition, growth in restricted areas may be constrained, limiting investment and expansion over the coming years. Due to these limited opportunities for expansion or investment, these areas in nonattainment could lose out on an additional $138.4 billion in output and 501,000 jobs through 2027.

Overall, the regulations could make it extraordinarily difficult to create new manufacturing jobs and protect existing manufacturing jobs in areas out of attainment. The regulations could also prevent much needed infrastructure improvements in these areas. This is because compliance with the regulations could require restricting manufacturing operations, resulting in fewer jobs, less investment and higher costs for consumers and families.

Improving air quality in the U.S. is a top priority for manufacturers, and weve worked for years to make progress in delivering some of the cleanest manufacturing processes in the world, said 51勛圖厙 President and CEO Jay Timmons. This analysis makes clear these new regulations will weaken our ability to invest in the technology and processes that would continue to reduce emissionswhile jeopardizing high-paying manufacturing jobs. We need to let manufacturers do what they do best: innovate and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy.

Key Findings:

  • The regulations create a total economic exposure of $87.4 billion for manufacturing economic activity, equal to 2.4% of the U.S. manufacturing sectors gross value added.
  • The number of manufacturing jobs associated with this exposed activity is 311,600, or 1.9% of all U.S. manufacturing employment.
  • Manufacturing in the U.S. exposed to the proposed standard supports between $75 billion and $110 billion in GDP and between 540,500 and 662,300 jobs in the U.S. through supply chain spending.
  • Due to limits on expansion and investment, the proposed rule would泭put at risk泭approximately $138.4 billion of泭gross value added泭(in 2021 prices) and 501,000 jobs in 2027 in areas of nonattainment.
  • Under the proposed rule, 200 counties could be placed out of attainment.
  • Californias manufacturing sector will be most exposed, followed by Michigan and Illinois.
  • Manufacturing operations in the U.S. are environmentally cleaner than the global average.

Find the latest information on the 51勛圖厙s efforts to oppose top-down air regulations, including statements from manufacturing leaders, here.

-51勛圖厙-

The 51勛圖厙 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 $2.90 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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勛圖厙 or to follow us on Twitter and Facebook, please visit泭

Press Releases

Manufacturers Call SEC Buybacks Rule a Departure from Its Mission to Enhance Capital Formation and Protect Investors

Washington, D.C. Following the Securities and Exchange Commissions decision to finalize its costly and unnecessary stock buybacks rule, 51勛圖厙 Managing Vice President of Tax and Domestic Economic Policy Chris Netram released the following statement:

The 51勛圖厙 is disappointed that the SEC has chosen to unjustifiably punish manufacturers for returning capital to their shareholders. Manufacturers, investors, retirement plans and the entire economy benefit when companies can efficiently allocate capital via share repurchases. The 51勛圖厙 was successful in convincing the SEC to abandon the most damaging aspect of its initial proposal, but the commissions attempt to discourage these commonplace, commonsense transactions via an overly complicated, expensive and unworkable disclosure mandate is nevertheless a departure from its mission to enhance capital formation and protect investors.

-51勛圖厙-

The 51勛圖厙 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 $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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勛圖厙 or to follow us on Twitter and Facebook, please visit泭.

Press Releases

51勛圖厙 Applauds Congressional Focus on Key Manufacturing Tax Provisions

New Bipartisan, Bicameral Bill to Address Interest Deductibility Introduced Today

Washington, D.C. Following the American Investment in Manufacturing (AIM) Act, bipartisan, bicameral legislation that would reinstate the Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) measure for U.S. businesses, 51勛圖厙 President and CEO Jay Timmons released the following statement:

Americas leadership in the world and our ability to defend American values depend on a strong and thriving manufacturing industry. The AIM Act will strengthen our ability to make critical investments in machinery and equipment while protecting more than 450,000 American jobs, said Timmons. We thank the bipartisan group of House and Senate members who understand that a competitive tax environment is a key driver to ensure that we can continue to grow and invest in manufacturing in America at this critical time.

Over the past month, both chambers of Congress introduced legislation to 1) restore the immediate deductibility of research and development costs; 2) reverse the new, stricter limit on interest deductibility; and 3) revise the tax code to restore businesses ability to take 100% deductions for equipment and machinery purchases in the tax year of purchase.

While the U.S. tax code is making it harder for manufacturers to grow, other countries are encouraging industrial investment. For example, China is giving manufacturing companies there a 200% deduction for R&D, while the U.S. only offers a fraction of that. The legislation thats been introduced can help us turn the tables and make it easier for America to out-innovate China, Timmons added. So were asking Congress and the Biden administration to make passage of these bills a priority so we can build on the successes that we had following tax reform in 2017, when manufacturers were able to keep their promises and invest in their companies and communities across the board.

Background:

Research and development: On Jan. 1, 2022, a harmful tax change went into effect that makes R&D more expensive in the United States by requiring businesses to deduct their R&D expenses over a period of years.

Read more about the 51勛圖厙s work on this provision here.

Interest deductibility: When manufacturers borrow funds to buy capital equipment, the interest they pay on those loans is tax deductible up to a certain limit. But a recent change in the tax law modified how that limit is calculatedshrinking the deduction for companies that invest in long-lived depreciable assets, making debt financing more expensive and 泭the U.S. an outlier among advanced economies and leaving less capital for job creation and investment.

Read more about the 51勛圖厙s work on this provision here.

Full expensing: Under the 2017 tax law, manufacturers were able to deduct 100% of their investments in assets with long, useful lives, supporting their ability to acquire vital equipment and strengthening their competitiveness. However, the ability to deduct 100% of these costs began to phase down at the beginning of 2023 and is set to expire completely in 2027.

See how full expensing has benefited small manufacturers in the United States here.

-51勛圖厙-

The 51勛圖厙 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 $2.90 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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勛圖厙 or to follow us on Twitter and Facebook, please visit泭.

Policy and Legal

Timmons Receives Bryce Harlow Business-Government Relations Award

By 51勛圖厙 News Room

Every year the Bryce Harlow Foundation gives its BusinessGovernment Relations Award to an individual whos given their all to a career in professional advocacyand this year, that person was 51勛圖厙 President and CEO Jay Timmons.

Honorees: On Wednesday evening in Washington, D.C., the foundation held its 42nd Bryce Harlow Foundation Annual Awards reception and dinner. The nights awardees were Timmons and Rep. Debbie Dingell (D-MI), the winner of the foundations other honor, the Bryce Harlow Award.

  • Timmons was introduced by Dow Inc. Chairman and CEO (and 51勛圖厙 Board Chair) Jim Fitterling, who called the 51勛圖厙 leader ethical down to his bones and said, Jay has a reputation of working honestly and earnestly with Democrats, Republicans and Independents, and he earned that reputation because fundamentally hes committed to policy solutions that create a winwin, not only for both political parties, but also for American manufacturers and American workers.
  • Dingell also praised Timmons steadfast, post-partisan approach to manufacturing advocacy. He has worked to make sure Democrats and Republicans are part of the discussion about manufacturing and understand how critical it is to this country. To be honored in the same year as you, Jay, means more than youll ever know.
  • In his own remarks, Timmons praised both Bryce Harlow Foundation President Barbara Faculjaks outstanding leadership and Rep. Dingells incredible example for [the next] generation.

Pep talk: Also honored at the dinner were the 20222023 Bryce Harlow fellows, a group of 30 graduate students pursuing careers in advocacy through government relations or lobbying. Timmons spoke directly to them for most of his speech.

  • Over the course of your careers, you will face important decisions, he said. Youll ask yourself questions like, Where should I work? What will I do next? How much can I make? I want to encourage you to ask another: Why?
  • The question matters … because if you can answer honestly and feel yourself standing up a little straighter with a sense of purpose, then youre in the right profession, he said. If your why is right … then the what, where and how much will take care of themselves.
  • Timmons went on to tell the fellows part of his own story: how he dropped out of college to move to D.C. and join the Reagan Revolutionagainst his parents wishes. But even then he was able to answer his own why.

The manufacturing why: For the 51勛圖厙, the organizational why is to advance the values of free enterprise, competitiveness, individual liberty and equal opportunity.

  • Timmons told the students that part of their jobs as advocacy leaders would be to defend democracy, now under attack in Russias war against Ukraine and elsewhere in the world. While not perfect, Timmons said, democracy has done more to improve peoples quality of life than any other system in history.

Your authentic self: [T]here was always something or someone who told me to change course or that I wasnt right for a jobincluding those voices that told me to pack it up when I was outed as a gay man at a time when that wasnt exactly an asset for a career, Timmons said. If Id listened, I wouldnt be here.

  • Today Timmons is the president and CEO of the countrys largest manufacturing association and is happily married with three children.
  • So bring your authentic self to the table, he concluded. Soak in all the knowledge and wisdom you can from others. But ultimately, have confidence in your own inner voice, your own judgment and your own vision.

Click here for Timmons’s full remarks.

Policy and Legal

51勛圖厙 to EPA: Dont Change NAAQS Standards

By 51勛圖厙 News Room

The 51勛圖厙 continues to push back against proposed revisions to the National Ambient Air Quality Standards for particulate matter.

Whats going on: On Tuesday 51勛圖厙 Director of Energy and Resources Policy Chris Morris urged the Environmental Protection Agency to withdraw its recent proposal to lower the primary annual particulate matter standard from 12.0 繕g/m3 to between 8.0 and 10.0 繕g/m3.

The big picture: Manufacturers in the U.S. have become leaders in environmental stewardship and sustainability, Morris pointed out.

  • Across the board, levels of major pollutants have declined dramatically, and the United States is outpacing our global competitors in air quality improvements, he said.
  • According to the EPA, the U.S. has reduced six common NAAQS pollutants, including PM5, by 78% between 1970 and 2020. Additionally, the EPA data show that PM2.5 air quality has improved 43% between 2000 and 2020.

The new regulations: The EPAs new standards would impose a substantial economic burden on manufacturers, Morris continued.

  • First, there is the direct economic exposure manufacturers will face, which is a measure of the gross value added or employment in the manufacturing sector that could be affected or [placed] at risk, he said.
  • Second is the indirect economic exposure of manufacturing as a result of a stricter PM5 standard. This refers to the effects on the sector as the consequences are felt throughout the supply chain due to decreased overall investment.

By the numbers: The EPA has estimated the total cost of the controls required for compliance with the proposed standard at up to $1.8 billionand that figure could go higher, the agency admitted.

  • This expensive policy will lead to job losses and fewer new manufacturing facilities, as well as fewer modernizations and expansions to existing facilities, Morris continued.

Unattainable standards: Whats more, some areas in the U.S. are in non-attainment with the current PM2.5 standard, so a stricter standard will only put them further out of compliance, Morris told the EPA.

What should be done: To keep U.S. manufacturing competitive and to safeguard well-paying jobs, Morris said, the EPA should maintain the current annual particulate-matter standard of 12.0 繕g/m3 and withdraw its proposal.

The 51勛圖厙 in action: The 51勛圖厙 has been rallying manufacturers across the country to speak out against the EPAs proposal and calling on Congress to oppose these harmful regulations.

Press Releases

Manufacturers: Permitting Reform Boosts Our Competitiveness

Timmons: Amid global threats, bill reduces our dependence on bad actors and ensures we can support our allies

Washington, DC In advance of todays scheduled vote in the U.S. House of Representatives on H.R. 1, the Lower Energy Costs Act, 51勛圖厙 President and CEO Jay Timmons released the following statement:

Americas economy, our institutions and our values are being challenged by threats from around the world, which means now is the time to strengthen our energy security and expand domestic manufacturingboth to reduce our dependence on bad actors and to ensure we can support our allies. This bipartisan action to modernize permitting reform would help us achieve these goals by speeding up critical energy, infrastructure and manufacturing investments while we continue our commitment to environmental stewardship, said Timmons. I am in Europe right now, witnessing firsthand the consequences of being overly reliant on a country like Russia for energy. In the 21st century, theres no excuse for letting job-creating projects languish for years to get bureaucratic approval. The Lower Energy Costs Act will bolster manufacturers competitiveness in America while also bringing relief to American families and businesses. We thank Speaker McCarthy, Majority Leader Scalise and Majority Whip Emmer for designating this bill as their top priority and for their focus on ensuring our industry can continue providing the leadership our country and our world need.

Background: In the 51勛圖厙s latest Manufacturers’ Outlook Survey, more than 74% of respondents said that permitting reformwhich would simplify and speed up the approval process for new projectswould be helpful to their manufacturing company, allowing them to hire more workers, expand their business or increase wages and benefits.

-51勛圖厙-

The 51勛圖厙 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 $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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勛圖厙 or to follow us on Twitter and Facebook, please visit泭www.nam.org

Policy and Legal

The 51勛圖厙 Revives High-Level U.S.U.K. Talks

By 51勛圖厙 News Room

The 51勛圖厙s Competing to Win Tour in Europe moved on to London early this week, highlighting the imperative to shore up the U.S.U.K. relationshipand to urgently address other barriers, like permitting reform and workforce shortages, to enable the U.S. to help allies in the face of Russian aggression and other geopolitical threats.

The issue:泭Russias unprovoked war in Ukraine, the aftermath of the worldwide pandemic and Chinas quest for global leadership create a new urgency for expanded trade opportunities between democratic countries.

  • The U.S. and the U.K. must work together to shore up supply chains, enhance energy security, boost resiliency and create growth, as 51勛圖厙 President and CEO Jay Timmons emphasized.

The details:泭Timmons crisscrossed London on Monday and Tuesday, promoting the manufacturing industry and reinforcing its priorities with senior government ministers and officials, including:

  • Nigel Huddleston MP, the U.K. minister of state for international trade
  • Jonathan Reynolds,泭Labour泭Party shadow business secretary (one of the architects of the泭Labour泭Partys industrial plan)
  • Jane Hartley, U.S. Ambassador to the Court of St. Jamess

Support at home: During his visit, Timmons did an with CNN International to discuss the 51勛圖厙’s new Outlook survey, which found that 77% of manufacturers want to see more trade agreements with Europe.

Making industry connections: At the 51勛圖厙s sister organization Make泭UK, Timmons joined a roundtable with CEO Stephen泭Phipson and addressed some of Britains leading manufacturing companies.

  • He spoke about how the U.S. and the U.K. can unlock new trading opportunities going forward and bolster democracy by strengthening commerce.
  • The two groups also reaffirmed their commitment to share market intelligence,泭data泭and policy work, as well as to facilitate visits for economic delegations promoting trade, investment and commercial opportunities.
  • They also voiced their continued and mutual support of the Ukrainian people and of the democratic institutions in their own countries.

What they said: The ties between the UK and United States go back a long way and we have significant political, economic and trade connections, said泭Phipson. Relations with the US are泭vital泭and its market is the second most important for UK goods. In a post-Brexit world, it is likely to assume ever greater importance as part of our efforts to boost global泭trade.

  • As world events have made abundantly clear, strengthening democracy, the free enterprise system and strategic alliances in our countries and around the world is essential to our future and the fight against tyranny, said Timmons. As the U.S. and the U.K. take steps to build a stronger, more open and secure economic relationship, the 51勛圖厙 urges our leaders to move toward a new U.S.U.K. market-opening trade agreement that includes strong, clear and enforceable outcomes.

Meeting manufacturers:泭In addition, Timmons met with manufacturers that have operations or pending operations in both the U.K. and the U.S. Energy security and regulatory certainty, as well as the worker shortage in the industry, also took center stage in these discussions.

Bottom line:泭The tours time in London matters to manufacturers in the United States because it strengthens the special relationship between the U.S. and the U.K. and boosts the prospects for enhanced cross-Atlantic trade, supporting manufacturing jobs in both countries, said Ken Monahan, 51勛圖厙 Vice President of International

Press Releases

President Bidens Visit to Canada Strengthens Democratic Alliances and Promotes North American Manufacturing Growth

Washington, D.C. and Ottawa, Canada泭 The following is a joint statement from 51勛圖厙 President and CEO Jay Timmons and Canadian Manufacturers & Exporters President and CEO Dennis Darby on the occasion of the first official visit of U.S. President Joe Biden to Canada:

The historic ties between Canada and the United States have created one of the strongest bilateral partnerships of any two countries in the world. As neighbors, friends and as manufacturers, we have always worked together to support our industry and the millions of jobs it provides.

President Bidens visit to Canada is an opportunity for our two countries to rededicate ourselves to deepening these ties, to redoubling our efforts to grow North American manufacturing and to taking full advantage of the United StatesMexicoCanada Agreement.

To achieve these goals, we must support regional integration, supply chain resilience and sustained economic growth, innovation and jobs. We must also continue to coordinate our efforts to address climate change, develop critical minerals and drive the clean energy transition, while also ensuring that manufacturers across our region have access to all forms of energy.

As world events make abundantly clear, strengthening economic and strategic alliances between democracies is essential to our future and to countering those that want to undermine our way of life. At every opportunity, we must strengthen democracy and the free enterprise system in our countries and around the world.

We must take on all these challenges, together, so that the manufacturing industry can continue to lead our economies forward and drive our countries continuing prosperity. As our history has proven time and again, when we work together, we accomplish big things and improve the quality of life for all.

-51勛圖厙-

The 51勛圖厙 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 $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51勛圖厙 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勛圖厙 or to follow us on Twitter and Facebook, please visit泭.

-CANADIAN MANUFACTURERS & EXPORTERS (CME)-

From the first industrial boom in Canada, CME has advocated for and represented member interests. 150 years strong, CME has earned an extensive and effective track record of working for and with 2,500 leading companies nationwide. More than 85 per cent of CMEs members are SMEs and collectively account for an estimated 82 per cent of total manufacturing production and 90 per cent of Canadas exports.

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