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Friday, July 4, 2025

Policy Week in Review – July 3, 2025 - Littler Mendelson P.C.

The Policy Week in Review, prepared by Littler’s Workplace Policy Institute (WPI), sets forth WPI’s updates on federal, state, and local matters.

“Big Beautiful” Reconciliation Bill Pending Final Passage in the House

Earlier this week, the U.S. Senate passed the reconciliation bill by a narrow vote of 51-50, with Vice President JD Vance casting the tie-breaking vote. The bill was then sent back to the House for further consideration where no changes were made. All Senate Democrats, along with Republican Senators Thom Tillis (R-NC), Rand Paul (R-KY), and Susan Collins (R-ME), voted against the bill. Among the key provisions, the bill extends the 2017 tax cuts; provides new border security and defense spending; limits federal funding for Medicaid and food assistance; rolls back clean energy tax credits; and includes a temporary deduction, through 2028, on tip income up to $25,000 received by an individual in an occupation that customarily and regularly receives tips, as well as overtime pay up to $12,500 per individual. Of note, the Senate removed the Artificial Intelligence (AI) provision from the bill that would have barred states from regulating AI if they accept federal broadband infrastructure funding.

As of this writing, the House is getting ready to vote on the bill. If it passes, reports reveal that the White House is planning a signing ceremony tomorrow, Independence Day, at 9 a.m., where President Trump will sign the bill into law.

U.S. Economy Added 147,000 Jobs...



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