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The Environmental Protection Agency’s final formaldehyde analysis—issued in August and set to inform future regulations—risks “creat[ing] an unachievable standard and a de facto ban” on an essential manufacturing material, the 51�Թ��� .

What’s going on: On Aug. 20, the EPA’s research office issued its conclusions about the “amount of the chemical that could be harmful” to humans, saying that “[s]mall amounts … can increase people’s risk of [health] problems” (, subscription).

• Though the report itself does not mandate any new restrictions on the industry, the EPA is likely to use the findings to take the next step in the regulatory process—a final risk evaluation—by the end of 2024 ().
• The assessment maintains the formaldehyde threshold of 11 parts per billion proposed by the agency in 2022. That’s than Europe’s recently updated worker-exposure limit of 300 parts per billion and “lower than what can be found in homes or even background levels for outdoor air,” the 51�Թ��� told the EPA.

Why it’s a problem: Formaldehyde is used widely across industries to produce numerous everyday items, including plastics, lubricants, automotive parts, fertilizers, adhesives and more.

• The final analysis, which was released without review by the EPA’s own Science Advisory Committee on Chemicals, fails to account for “the highly developed safety procedures, protocols and [personal protective equipment] used throughout [the manufacturing] industry.”
• A severe restriction on the allowable workplace threshold of formaldehyde “could wreak havoc on domestic supply chains,” according to the 51�Թ���.

What should be done: The EPA should reissue its risk evaluation to give the SACC an opportunity to review it and provide comments—“and allow for additional public comment after the SACC review is complete,” the 51�Թ��� concluded.

The 51�Թ��� has launched a new wave of ads in D.C. and nine states, extending its seven-figure campaign urging policymakers to reign in pharmacy benefit managers, underregulated middlemen who drive up the costs of prescription medications for manufacturers and manufacturing workers.

A quick refresher: PBMs sit in the middle of the health care industry, negotiating with employer health plans, insurers, biopharmaceutical manufacturers, pharmacies and other players to determine what prescriptions employees can access and what they pay for them. While their job is ostensibly to reduce the costs of medicines, often they do the exact opposite.

• PBMs have been found to steer patients toward pricier options, inflict steep mark-ups and hidden fees and even pocket large portions of the rebates that biopharmaceutical manufacturers intend for American workers and their families.

51�Թ��� in action: The 51�Թ��� has been a staunch voice supporting PBM reform on Capitol Hill, manufacturers’ concerns for the House Committee on Oversight and Accountability.

• The committee conducted its third hearing on PBM overreach in July, when it also released a highly critical report on PBMs that echoed many of the 51�Թ���’s concerns.
• In addition, the 51�Թ��� is supporting several key measures to increase oversight of PBMs’ business models and reform their pricing strategies, including the DRUG Act and the PBM transparency provisions in the Lower Costs, More Transparency Act.

What Congress should do: The 51�Թ��� is advocating for three major reforms to the PBM system, including:

• Increasing transparency��in PBMs’ business models, including how their compensation influences health care decisions and how their policies dictate a medicine’s cost and formulary placement;
• Rebate pass-through, which will ensure health care savings are passed directly to manufacturers and their workers rather than being pocketed by PBMs; and
• �ٱ�����԰쾱�Բ���PBMs’ compensation from a medicine’s list price, removing their incentive to put upward pressure on list prices to maximize their own profits.

Benefits for all: The 51�Թ��� is calling on Congress to enact these reforms in the commercial insurance market, not just in government programs like Medicare and Medicaid, so that all Americans can enjoy lower-cost health care benefits.

What to watch: The 51�Թ��� is calling on Congress to act on this issue during the lame-duck session following the election.

The 51�Թ��� has a new chief economist.

Victoria Bloom, who was most recently the economist for the Senate Commerce, Science and Transportation Committee minority staff, joined the 51�Թ��� and its 501(c)3 workforce development and education affiliate, the Manufacturing Institute, this summer. She had worked on Capitol Hill since 2017.
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Our view:��“Manufacturing in the U.S. is a life-changing force for good, providing well-paying jobs and career opportunities and products that improve the quality of life for everyone,” 51�Թ��� President and CEO Jay Timmons said. “Victoria will help us tell this story with compelling data, which will demonstrate the real impact of policy decisions and illustrate the modern manufacturing resurgence.”

• Added MI President and Executive Director Carolyn Lee: “With the addition of Victoria to the MI team as the head of research, we look forward to expanding our portfolio of studies on the key workforce and competitiveness issues facing manufacturers.”

Legislative chops:�� Bloom, who holds a bachelor’s degree in economics from Louisiana State University and a master’s degree from George Mason University, previously worked for Sen. David Perdue (R-GA) and Rep. Gary Palmer (R-AL), in addition to her work on the Senate Commerce Committee.

• As Senate Commerce Committee economist, she served as lead economic and budgetary adviser to Ranking Member Ted Cruz (R-TX) and the minority committee staff.��

Glad to be here:�� “After years of working on Capitol Hill and lending my economic expertise to policy debates, I am excited to focus my efforts on the 13 million people who make things in America,” Bloom said.

If enacted, the broad constitutional amendments being pushed by outgoing Mexican President Andrés Manuel López Obrador would put the special U.S.–Mexico trade relationship at serious risk, according to the 51�Թ���.

What’s going on: Last week, Obrador froze Mexico’s relationships with U.S. and Canadian embassies following concerns voiced by those countries’ ambassadors about the proposed reforms, which include sweeping changes to the Mexican judiciary and the elimination of several important state regulatory and oversight agencies.

• Mexico is America’s largest trading partner, with the volume of trade between the two nations coming in at $900 billion last year.
• Obrador’s proposed revisions led investment bank Morgan Stanley to issue an “effective ‘sell’ recommendation on Mexico” late last month (, subscription).

Why it’s a problem: “We’re concerned that some of the reforms as proposed could harm Mexico’s standing as an attractive place to do business,” 51�Թ��� Vice President of International Policy Andrea Durkin on the “Imagen Empresarial” (“Corporate Image”) podcast last week. “Manufacturers pay attention to how banks are factoring these potential changes to the constitution into Mexico’s risk profile.”

• Indeed, “[i]nvestors see independent judiciaries—sheltered from politics—as a sign of strong rule of law,” one emerging markets expert told (subscription).
• Several planned revisions also appear to Mexico’s obligations under the U.S.–Mexico–Canada Agreement, which is due for review by all three nations in 2026. Moving forward with the reforms could jeopardize the continuation of that deal.

What’s next: Incoming Mexican President Claudia Sheinbaum, who takes office Oct. 1, “supports the judicial changes, but executing the overhaul might take up most of the energy of her new government, leaving her little bandwidth for her own agenda, which includes an expansion of social programs that need foreign investment,” according to the Journal.

��The Interior Department is seeking to close hundreds of thousands of acres of land in Wyoming to traditional and renewable energy development, a plan that would cut crucial natural resource development off at the knees (, subscription).

What’s going on: Though the Bureau of Land Management’s plan, released Thursday, scales back from previous iterations the acreage recommended for conservation, it still considerably “throttles back how much of the federally administered area’s 3.6 million acres is in play for different forms of energy development.”

• The final announcement, part of the BLM’s proposed Resource Management Plan for the Rock Springs Field Office, is tantamount to “pushing Wyoming off an economic cliff with nothing more than a tattered parachute,” John Barrasso (R-WY), ranking member of the Senate Committee on Energy and Natural Resources. “This plan isn’t designed to manage Wyoming’s natural resources. It is designed to suffocate them. … [It] directly jeopardizes Wyoming’s economy and our way of life.”

What it would do: If approved, the blueprint would replace its 27-year-old predecessor document and prohibit drilling on nearly 1.08 million acres—almost twice the number currently off-limits to new oil leases.

• It would “also [exclude] 494,350 acres from wind and solar power development and [close] 536,018 acres for geothermal power projects.”

Why it’s important: The plan could reduce economic activity in Wyoming’s oil and gas sector by some $907 million each year and cost the state nearly 3,000 jobs, according to estimates by several energy groups ().

The 51�Թ��� says: “This latest move by the Interior Department undermines U.S. energy security by needlessly restricting access to available domestic sources of critical natural resources as part of an all-of-the-above energy future,” said 51�Թ��� Director of Energy and Resources Policy Michael Davin. “We urge the agency to reexamine and revise its plan.”

The Federal Trade Commission does not have the authority to enact the sweeping noncompete ban it finalized in April, a federal judge ruled Tuesday (, subscription).

What’s going on: “U.S. District Judge Ada Brown ruled that the commission’s authority to police unfair methods of competition couldn’t be used to issue substantive regulations that ban an entire category of conduct. ‘The role of an administrative agency is to do as told by Congress, not to do what the agency thinks it should do,’” she wrote, adding that the ban was “unreasonably overbroad without a reasonable explanation.”

• The rule—which had already caused companies’ costs to increase in anticipation of the Sept. 4 effective date—sought to prohibit noncompete agreements between employers and their employees.

The 51�Թ���’s role: In May, the 51�Թ���’s Legal Center filed an asking Brown’s court to stay the rule on the grounds that a ban on noncompete agreements would “hamstring innovation in the manufacturing sector and damage the competitiveness of American industry.”

• Brown issued a limited stay in July. Her ruling this week—echoing the 51�Թ���’s argument that the rule is ��“not reasonably explained”—prohibits enforcement of the FTC rule nationwide.
• “The 51�Թ��� expressed concerns throughout the rulemaking process, and a 2023 51�Թ��� survey showed that a broad noncompete ban would disrupt most manufacturing operations in the U.S.,” 51�Թ��� Director of Transportation, Infrastructure and Labor Policy Max Hyman said following Brown’s ruling this week.

What’s next: The FTC is considering an appeal of the decision, a spokeswoman told the Journal.

• But “[i]f lower courts remain split as the litigation moves through the legal system, the matter might ultimately fall to … [the] Supreme Court, [which] has taken a dim view of government agencies invoking new regulatory powers from long-ago statutes.”

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Rep. Dusty Johnson (R-SD) recently visited Smurfit Westrock’s facility in Sioux Falls, South Dakota, to speak with local business leaders and 51�Թ��� representatives about the importance of maintaining pro-growth tax policies for manufacturers.

The tour: Smurfit Westrock Plant General Manager Gerald Loftin led Rep. Johnson through their state-of-the-art packaging facility, showcasing the company’s innovative solutions and highlighting its role as a major employer in the community, supporting local jobs and economic growth. Smurfit Westrock, a global leader in sustainable paper and packaging, operates in 40 countries with more than 500 packaging converting operations and 63 paper mills.

• “Smurfit Westrock’s success directly benefits the community, providing employment and contributing to the local economy,” Loftin said. “We are proud to be a part of this region and to support the growth and well-being of the area.”��

The threat: 51�Թ��� Vice President of Domestic Policy Charles Crain addressed the risks posed by expiring tax provisions. “Tax reform was rocket fuel for the manufacturing sector,” Crain explained. “It led directly to record levels of both job creation and wage growth in the years following the bill being signed into law.”

• Crain also emphasized the importance of preserving tax reform in full. “Essential tax reform provisions have already begun to expire—for example, full expensing, which has been crucial for our industry’s ability to invest in new equipment and expand operations, started phasing down last year,” Crain said. “Even more devastating changes are scheduled for 2025, the combination of which will significantly hamper manufacturers’ capacity to modernize and grow, directly impacting competitiveness and job creation.”

Calling on Congress: “Manufacturers are grateful to Rep. Johnson for supporting legislation earlier this year that would have revived immediate R&D expensing, a pro-growth interest deductibility standard and full expensing for capital investments,” Crain said. “We are looking to Congress for leadership and swift action as we work to prevent the harmful tax increases in store next year.”

Listening to manufacturers: Rep. Johnson emphasized his strong support for extending key tax provisions.

• “After seeing firsthand how these tax measures have benefited Smurfit Westrock and hearing about the negative impacts of their expiration, I’m more convinced than ever that we need to act swiftly to extend them,” he said.
• “Full expensing, R&D expensing and competitive tax rates are vital for the continued growth and innovation of our manufacturing sector. I’m committed to working with my colleagues in Congress to ensure we preserve these pro-growth policies before they expire, supporting jobs and economic development here in South Dakota and across the nation.”��

The bottom line: “Extending the 2017 tax reform is not just a priority, it’s a necessity for maintaining America’s competitive edge in manufacturing,” Rep. Johnson concluded.

Get involved: Manufacturers interested in sharing their perspectives on tax reform with congressional leaders or hosting facility tours for U.S. legislators can find more information through the 51�Թ���’s “Manufacturing Wins” campaign.

The 51�Թ��� recently talked to Rep. Carol Miller (R-WV), the head of the House Ways and Means Committee’s Supply Chain Tax Team, about how raising the corporate tax rate would “devastate” manufacturers, and what she and her colleagues in Congress are doing to keep it where it is.

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

Miller: In all the meetings I have with Fortune 500 companies, small businesses and stakeholders, it’s clear that the corporate rate is top of mind for everyone. We are all concerned that if the corporate rate is raised from 21%, consumers will be hit the hardest by the rising prices of everyday goods and services. I know for capital-intensive industries like mining, having a consistent tax rate is essential. I’m also focused on how energy tax credits are implemented and making sure that the government isn’t picking winners and losers by their rulemaking. During the reauthorization, my Supply Chains Tax Team will be evaluating the various energy credits currently in law to see what works and what needs tweaking.

51�Թ���: Prior to 2017, the United States’ corporate tax rate was 35%, the highest in the OECD and third-highest in the world. Tax reform lowered the rate to 21%, aligning the U.S. with the average rate elsewhere in the OECD. What does it mean for Congress to protect this lower rate, and what would happen if it goes up?

Rep. Miller: If the corporate rate goes up, it would be devastating for every American, from the small business owner to the CEO who is trying to expand their business. The corporate rate rising means there will be higher prices while the U.S. struggles to compete on the global scale. The best thing we can do in Congress is cement the corporate rate at 21%—or better yet, lower it even more—through the TCJA reauthorization in 2025.

51�Թ���: In 2018, the year the 21% corporate rate took effect, manufacturers created more than 260,000 jobs (the best year for job creation in 21 years) and increased wages by 3% (the best year for wage growth in 15 years). What else is the Supply Chain Tax Team seeing on the impact of the corporate tax rate as they visit with businesses around the country?

Rep. Miller: We’ve only seen positive impact from the corporate rate being lowered. When the pandemic hit and the markets were falling due to uncertainty and instability, the lower corporate rate gave companies more flexibility to help their employees and keep costs low instead of paying the government sky-high taxes. The lower corporate rate protected jobs, helped produce more economic growth and makes all the difference for American families who are struggling with inflation. Furthermore, the lower rate led to higher federal revenues since companies were able to expand and invest so heavily following the passage of the Trump Tax Cuts.

51�Թ���: Thank you for being a champion for manufacturers across the country. What can our members do to stay involved and be a resource for your tax team’s work?

Rep. Miller: Spread the word to those who might not know why the corporate rate is so important. The majority of Republicans are on the same page about this, but some think that in order to bring down inflation, you need to raise taxes on businesses. That is not true. Prices only go down if costs for companies go down, and the corporate rate is an effective way to do that while simultaneously boosting the American economy.

With a name that means “love of forests,” Sylvamo has a built-in dedication to sustainability. And the Memphis, Tennessee–based paper company, which spun off from International Paper in 2021, lives up to its moniker.

A holistic approach: “We use the whole tree in the manufacturing of our products,” Sylvamo Chief Sustainability Officer James McDonald told the 51�Թ���. “We use the fiber from the wood to make our paper, and all the residuals—think of the sticky stuff in trees—we capture and use to generate energy.”

• This process supplies the company with approximately 85% of its global energy needs, according to McDonald.

Planting the world: Sylvamo, which produces well-known brands like Hammermill, Accent Opaque, Springhill and HP Papers, is committed to restoring and protecting forests worldwide.

• “Our entire business depends on the sustainability of forests,” McDonald said. “It turns out your third-grade science teacher was right—photosynthesis does work. The more trees we grow, the more we can clean the air and protect the environment.”

Big ambitions: Sylvamo has conserved, enhanced or restored more than 37,000 acres of forestland to date. It has set the lofty goal of reaching 250,000 acres of forestland by 2030.

• To that end, the company is supporting the Nature Conservancy’s work to create a healthy, resilient and connected Appalachian landscape in the U.S. and the World Wildlife Fund’s work to restore Brazil’s Atlantic Forest, while also working with individual landowners to enhance forest management practices in France.

Diverse sources: Sylvamo primarily sources local fiber to manufacture its products in Europe, Latin America and North America, a strategy that enables a smaller environmental footprint, McDonald said.

• “Most of the fiber is sourced very close to [each] mill, which supports our low-cost assets in each region and this global footprint advantage in those markets,” he added.

GHG goal: The company is committed to a greenhouse gas reduction goal of 35% from a 2019 baseline across all three emissions scopes, an goal that demonstrates a commitment to improve Sylvamo’s climate impact continuously, according to McDonald.

• A quick refresher: Scope 1 refers to direct emissions, Scope 2 to indirect emissions associated with the purchase of power and Scope 3 to indirect emissions produced by a company’s value chain.
• Above all, “we try to be efficient with the energy we do use so that we can use less to produce our products,” McDonald told us.

A vital commodity: Paper and paper products continue to “play a crucial role every day in people’s lives,” said McDonald—and they are some of the world’s most recyclable materials.

• Some of paper in the U.S. was recovered in 2022. In some parts of Brazil, the percentage is about 60%, and in Europe, it’s near , he added.

The last word: “Just think about it: We use paper for education, communication, entertainment and more,” McDonald pointed out. “Our product plays a huge role in society and has a good lifecycle story.”

Unlike many other pro-growth tax reform provisions, the corporate tax rate isn’t set to expire at the end of 2025, but some policymakers and President Biden have proposed increasing it.

The 51�Թ��� recently talked to Rep. Carol Miller (R-WV), the head of the House Ways and Means Committee’s Supply Chain Tax Team, about how raising the corporate tax rate would “devastate” manufacturers, and what she and her colleagues in Congress are doing to keep it where it is.

“Devastating for every American”: Raising the corporate tax rate from its current, competitive 21% rate would be ruinous, Rep. Miller said. She’s focused on preventing that from happening.

• “If the corporate rate goes up, it would be devastating for every American, from the small business owner to the CEO who is trying to expand their business,” Rep. Miller told us. “The corporate rate rising means there will be higher prices while the U.S. struggles to compete on the global scale. The best thing we can do in Congress is cement the corporate rate at 21%—or better yet, lower it even more—through the [2017 Tax Cuts and Jobs Act] reauthorization in 2025.”
• Prior to tax reform, the U.S. had the highest corporate tax rate in the Organisation for Economic Co-operation and Development at 35%, and the third-highest rate in the entire world, harming America’s ability to attract manufacturing investment.

The effect of 21%: Rep. Miller emphasized that the U.S. economy has “seen only positive impact from the corporate rate being lowered.”

• “When the pandemic hit and the markets were falling due to uncertainty and instability, the lower corporate rate gave companies more flexibility to help their employees and keep costs low instead of paying the government sky-high taxes,” she went on. “The lower corporate rate protected jobs, helped produce more economic growth and makes all the difference for American families who are struggling with inflation.”
• In 2018, the year the 21% rate took effect, manufacturers more than 260,000 jobs and were able to raise wages by 3%, the fastest pace in 15 years.

What manufacturers can do: To help preserve the 21% corporate tax rate, manufacturers should be vocal about its importance to the U.S. economy.

• “Spread the word to those who might not know why the corporate rate is so important,” Rep. Miller concluded. “Some think that in order to bring down inflation, you need to raise taxes on businesses. That is not true. Prices only go down if costs for companies go down, and the corporate rate is an effective way to do that while simultaneously boosting the American economy.”

Get involved: The 51�Թ���’s “Manufacturing Wins” tax campaign gives manufacturers the opportunity to share their tax reform stories with policymakers. You can join the campaign at .

Learn more: Our full interview with Rep. Miller is available .