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Policy Week in Review – July 3, 2025
At a Glance
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 in June
According to the U.S. Bureau of Labor Statistics’ jobs report released today, employers added 147,000 jobs in June. Most job gains occurred in state government and health care. The federal government continued to lose jobs. Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; leisure and hospitality; and other services. The unemployment rate fell to 4.1% from 4.2%
U.S. DOL Proposes Deregulatory Actions
On July 1, the U.S. Department of Labor (DOL) announced that it is planning 63 deregulatory actions “aimed at reversing the costly and burdensome rules imposed under the previous administration.” Further detail about these regulatory items can be found here. This action follows President Trump’s executive order titled, “Unleashing Prosperity through Deregulation,” which instructs federal agencies to eliminate ten existing regulations for every new rule released.
U.S. House Committee on Workforce Protections to Hold E-Verify Hearing
The House Subcommittee on Workforce Protections Chair Ryan Mackenzie (R-PA) will hold a hearing titled, “E-Verify: Ensuring Lawful Employment in American” on Tuesday, July 8 at 10:15 a.m. The hearing will be live-streamed on the Committee’s YouTube page.