PSW Weekly Round-Up - 10/20

Legislative Update

House. Speaker Mike Johnson has said he won’t bring the House back into session until the government shutdown ends, so the House is in recess again this week. The last vote held in the House was on Sept. 19, when lawmakers voted 217-212 to approve a continuing resolution to fund the government through Nov. 21.

Senate. On Monday evening, the Senate will vote for the 11^th time on the House-passed continuing resolution, which has failed to garner 60 votes on the ten previous votes. It’s expected to fail again. Also this week, the Senate will vote on legislation that would pay federal employees, including active-duty military members, whose work is continuing during the shutdown. The measure, which would not pay employees who have been furloughed, is not likely to clear the 60-vote hurdle. Senators could also vote again on consideration of the Defense appropriations bill, which failed to advance last week on a vote of 50-44.

Shutdown. With no resolution in sight to end the impasse over government funding, observers have speculated that key dates could spur lawmakers to agree on legislation to re-open the government:

• Oct. 28 – 13,000 air traffic controllers won’t be paid. On Sunday, the Federal Aviation Administration said that air traffic control staffing issues were delaying travel at airports in Dallas, Chicago, Atlanta and Newark.
• November – SNAP (food stamp) benefits will be curtailed. According to the Agriculture Department, if the shutdown continues, “there will be insufficient funds to pay full November SNAP benefits for approximately 42 million individuals.”
• Nov. 1 – Open enrollment period begins for Affordable Care Act insurance. Insurance companies are expected to send out notices of higher premiums due to the scheduled Dec. 31 expiration of expanded premium subsidies.
• Nov. 4 – Gubernatorial elections in Virginia and New Jersey
• Weeks of Nov. 10 and 24 – Scheduled recesses for Veterans’ Day (Nov. 11) and Thanksgiving (Nov. 27), respectively
• Dec. 19 – Congress scheduled to leave for the year

Committee Action of Note

Tuesday, October 21

• Senate Agriculture, Nutrition, and Forestry Committee Markup to consider various measures, including:

• • H.R.4550, to reauthorize the United States Grain Standards Act
  • S.1462, Fix Our Forests Act

• Senate Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies Hearing: "A Review of FY 2026 Funding Priorities of the Office of the United States Trade Representative"
• Senate Banking, Housing, and Urban Affairs Subcommittee on Housing, Transportation, and Community Development Hearing: "Innovation in U.S. Housing: Solutions and Policies for America’s Future"
• Senate Commerce, Science, and Transportation Committee Markup to consider various measures, including:
  • S.2563, to direct the Secretary of Commerce, in coordination with the heads of other relevant Federal departments and agencies, to conduct an interagency review of and report to Congress on ways to increase the global competitiveness of the United States in attracting foreign direct investment
  • S.2975, the “Pipeline Safety Act of 2025”
  • S.2503, to require all aircraft to be equipped with Automatic Dependent Surveillance-Broadcast In, to improve aviation safety
  • And the nominations of:
    • Joyce Meyer to be Under Secretary for Economic Affairs in the Department of Commerce
    • Harry Kumar to be an Assistant Secretary in the Department of Commerce
    • Seval Oz to be an Assistant Secretary of Transportation

Wednesday, October 22

• Senate Foreign Relations Committee Markup to consider various measures, including:
  • S.2550, to provide for international cooperation to secure critical mineral supply chains
• Senate Health, Education, Labor and Pensions Committee Hearing: "Labor Law Reform Part 2: New Solutions for Finding a Pro-Worker Way Forward"

Thursday, October 23

• Senate Health, Education, Labor and Pensions Committee Hearing: "The 340B Program: Examining Its Growth and Impact on Patients"

Tariff Update

Tariffs on Chinese Goods. On Oct.10, President Trump said he would impose 100% tariffs “over and above” current tariffs on imports from China, effective Nov. 1. The President’s statement was in response to China’s Oct. 9 announcement that it would be implementing expanded restrictions on the export of rare earth minerals, which are essential to U.S. defense and consumer technologies, including the production of computer chips. Under China’s new rules, five additional rare earth elements will be added to the seven already on the export control list, effective Nov. 8. In addition, foreign companies will need the Chinese government’s approval to export products that contain even a tiny amount of rare earths and must declare their intended use, effective Dec. 1.

Two days after the President’s threat of 100% tariffs, he posted on social media that “all will be fine” between the U.S. and China, which appeared to suggest that the higher tariffs would not be levied. Then on Oct. 16, the President said 100% tariffs were “not sustainable” but “that’s what the number is” and “it could stand.”

The Trump administration has already imposed 20% tariffs on China, citing a national emergency over fentanyl trafficking and migration; 15% tariffs to address the U.S. bilateral goods trade deficit; Section 301 tariffs that were initiated during the first Trump administration that hit most Chinese goods; and a variety of sector-specific duties under Section 232 of the Trade Expansion Act of 1962.

Port Fees. On Oct. 14, the U.S. began imposing a $50 per net ton fee on cargo ships docking in the United States if they are operated by or were built in China. The fees are scheduled to increase $30 per year over the next three years. Non-Chinese operators of Chinese-built vessels will be charged the higher amount of either $18 per net ton or $120 per container. The fees were announced in April under Section 301 of U.S. trade law. China responded on Oct. 14 by imposing a port fee of $56 per net ton, increasing to $157 by 2028, on U.S. ships, unless they were built in China.

Recent Executive Action of Note

On Oct. 17, President Trump issued a proclamation imposing new tariffs while also providing partial relief. Section 232 tariffs will be imposed, effective Nov. 1, on imports of heavy- and medium-duty trucks and truck parts (25%) and buses (10%). Trucks that meet U.S.-Mexico-Canada Agreement treatment will face tariffs based on their non-U.S. content, while truck part tariffs will include an exemption for USMCA-eligible imports. To incentivize domestic truck production, a 3.75% offset is available to a portion of the tariffs for trucks and truck parts assembled in the U.S. from 2025 through 2030.

The 3.75% credit is currently available to automakers to apply against a 25% tariff on auto parts, but was scheduled to decrease to 2.5% in 2027 and then be eliminated the following year. Under Friday’s proclamation, the 3.75% credit is extended until 2030.

In addition to the Oct. 17 proclamation on tariffs, the President last week also issued an Executive Order continuing a broad hiring freeze across the federal civilian workforce.

• Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States - Oct. 17, 2025
• Ensuring Continued Accountability in Federal Hiring - Oct. 15, 2025

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