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Eric Schmitt talks riots, latest Top Lobbyists unveiled, Freedom Caucus on rescissions, and more!
The pros and cons of federal AI preemption, RSC members talk Congressional Baseball, and more!
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June 12, 2025
Let’s dive in.
INTERVIEW: "This isn't 2020": Sen. Eric Schmitt on riots, lawfare, and baseball
Heard on the Hill
INTERVIEW: Future of Life Institute’s Jason Van Beek outlines the risks of federal AI preemption pushed by Congress
THE LIST: The next round of the Washington Reporter’s Most Influential Lobbyist List is here!
EXCLUSIVE: Reps. Moore, Feenstra, and Goldman talk Congressional Baseball Game on RSC’s “Right to the Point” podcast
EXCLUSIVE: Inside the Kennedy Center's $10 million Les Mis debut
SCOOP: Democrats' votes, antics undermine bipartisan vigil to honor murdered Israeli diplomats
SCOOP: House Freedom Caucus lays out support for rescissions package eliminating $9.4 billion in federal funds to NPR, PBS, and more
SCOOP: Cassidy’s Medicare changes opposed by the White House, some conservatives
K-STREET, 10,000 FEET: How courts could undermine Biden's Inflation Reduction Act
OPINIONATED: Gov. Susana Martinez on a 10 year freeze on state-level red tape regulation, Paul Kong with the commercial litigation finance industry’s response to Sen. Thom Tillis’s legislation, and George David Banks on the mirage of the GOP’s “Green Wall”
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INTERVIEW: "This isn't 2020": Sen. Eric Schmitt on riots, lawfare, and baseball
by Matthew Foldi and the Washington Reporter
THE LOWDOWN:
Sen. Eric Schmitt (R., Mo.) caught up with the Washington Reporter about the anti-U.S. Immigration and Customs Enforcement (ICE) protests rocking Los Angeles, the lawfare against President Donald Trump, and the Republicans’ demolition of the Democrats at the annual Congressional Baseball Game.
Schmitt said that, while Kim Gardner was the St. Louis prosecutor in 2020, his office “didn’t have original jurisdiction to file charges” and that his office “had to ask to come in to do Kim Gardner’s job because she wouldn't let us come in.”
Schmitt blasted the Democrats’ claims that speech is violent, pointing out that the COVID pandemic “was a revealing exercise in that the masks were off, figuratively.”
As for the Congressional Baseball Game for charity — where Republicans destroyed the Democrats for the fifth year in a row — Schmitt, a star player whose walkout song was Kid Rock’s “American Bad Ass,” kept it humble when asked by the Reporter’s Matthew Foldi about comparing him to NFL legend Tom Brady.
Missouri’s former top cop has taken up residence in the Senate, and his expertise dealing with the violent 2020 George Floyd riots is front and center amid the chaos in the City of Fallen Angels.
Sen. Eric Schmitt (R., Mo.) spoke with the Washington Reporter about the anti-U.S. Immigration and Customs Enforcement (ICE) protests rocking Los Angeles, the lawfare against President Donald Trump, and the lessons he’s learned from the annual Congressional Baseball Game.
Schmitt said that, while Kim Gardner was the St. Louis prosecutor in 2020, his office “didn’t have original jurisdiction to file charges” and that his office “had to ask to come in to do Kim Gardner’s job because she wouldn't let us come in.”
“We certainly thought the public pressure was important for us to actually enforce the law,” Schmitt said. “What we found, though, was that at a local level — which is why the Soros network is so destructive — there's only one person who can make a charging decision, and it's the prosecutor.”
“And God knows the world needs social workers, but you can have somebody who isn't interested in prosecuting violent crime as the chief prosecutor, and you saw this play out in Philadelphia and LA and San Francisco and St Louis, and it's really destructive,” he continued. “And I think part of the reason why is because there’s an almost Marxist view of demoralization.”
“People sit back and they see things on fire and they don't understand why somebody's not doing something,” Schmitt said. “I think that's why it's really important that President Trump’s doing what he's doing right now, which is to send a very important signal that we're just not going to tolerate this. The National Guard is there to help.”
On the subject of political violence on the left and the nongovernment organizations (NGOs) — like the Party for Socialism and Liberation — fueling it are receiving, Schmitt said his subcommittee is already putting in work to get to the bottom of the issue.
Heard on the Hill
GREEN DRAGON: The Energy Foundation China (EFC) has operated as a de facto foreign influence arm of the Chinese Communist Party, according to a bombshell report from State Armor. The report alleges that EFC pushed radical climate policies that undermine American energy independence and benefit Chinese state interests.
SCRUBBED: Medicare Advantage Majority is running ads in Sen. Bill Cassidy’s (R., La.) home state pushing back against his No UPCODE Act. The group’s spokesman, Darren Grubb, argued that the legislation is a “betrayal of trust and a backtrack on the promises made to voters that resoundingly sent President Trump back to the White House and Republicans to leadership in Congress.”
RAISING THE ALARM: The American Biodefense Action Coalition (ABAC), a coalition of Americans concerned about the threat of biological warfare, launched an ad campaign in over a dozen House districts with the goal of educating Americans about H.R. 2707 — the Protecting American Families & Servicemembers From Anthrax Act. That bill, which is awaiting action from the House Armed Services Committee and Committee on Energy and Commerce, is a piece of “lifesaving Anthrax preparedness legislation,” ABAC said.
HISTORY 101: Rep. Tom Emmer (R., Minn.) grilled his home state governor, Tim Walz (D., Minn.) over the latter’s absurd and false comparison of ICE agents to the Nazi gestapo.
CUTTING TAXES, TAKING MEETINGS: Americans for Prosperity (AFP) is touting that it held 135 Capitol Hill meetings this week to push for making the Trump tax cuts permanent. “We’re still digging out from the wreckage of Bidenomics—a faltering economy weighed down by higher taxes and reckless spending,” AFP’s Chief Government Affairs Officer, Brent Gardner, said. “That’s why permanent tax cuts are the ultimate drivers of sustained growth. For Senators looking to improve the House bill, this is where they should focus.”
CHECKED AND WRECKED: During a House Homeland Security hearing, Rep. Dan Goldman (D., N.Y.) downplayed left-wing involvement in the uptick in anti-Semitic terrorism in America; Goldman’s claim was complicated by the Democrats’ witness, the American Jewish Committee’s Julie Fishman Rayman, admitted this violence today is coming from “the far-left” under questioning from Rep. August Pfluger (R., Texas).
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Seniors are counting on Congress to do the same.
Protect seniors. Protect Medicare Advantage.
INTERVIEW: Future of Life Institute’s Jason Van Beek outlines the risks of federal AI preemption pushed by Congress
by the Washington Reporter
THE LOWDOWN:
Congress is pushing a ten-year federal preemption on artificial intelligence (AI) technology, facing bipartisan pushback from states, organizations, and some federal lawmakers.
Jason Van Beek, FLI’s chief government affairs officer, outlined the risks of the federal preemption in an interview with the Washington Reporter, saying that the past couple of years have seen an effort by state legislatures to regulate AI at the state level “to regulate AI in some aspects.”
Van Beek noted that one of the “many risks that people are seeing with this development of AI and super intelligence” is that of job replacement, and not just like one of the kinds of jobs, but whole categories.”
Forty state attorneys general sent a bipartisan letter calling on Congress to remove the proposal and several Republican lawmakers on Capitol Hill have been outspoken against the proposal, forming strange bedfellows with unlikely allies.
In technology, Moore’s Law outlines the pace in which the power of the microchip doubles: approximately every two years. This law holds true with the quick advancements of technology we have seen over the past several decades.
Now, artificial intelligence (AI) has entered the chat, and is growing much, much faster. The conversation around AI recently reached a fever pitch in the political world, as well, with Congress eyeing a ten year federal preemption on the technology.
The move by Congress, which would prohibit states from enforcing AI-related laws for ten years, has ruffled bipartisan feathers in state governments. Forty state attorneys general sent a bipartisan letter calling on Congress to remove the proposal and several Republican lawmakers on Capitol Hill have been outspoken against the proposal, forming strange bedfellows.
On top of the political response to the proposal, groups like the Future of Life Institute (FLI) have published their own action plans with recommendations for the federal government. FLI has also taken their fight to the airwaves with a new six-figure ad campaign against the federal AI preemption.
Jason Van Beek, FLI’s chief government affairs officer, outlined the risks of the federal preemption in an interview with the Washington Reporter.
Van Beek told the Reporter that the past couple of years have seen an effort by state legislatures to regulate AI at the state level “to regulate AI in some aspects.”
“Some narrow aspects, some broader aspects, and this has been something that the AI companies have decided it’s probably not in their best interest, to put it mildly, and have decided to lobby Congress to preempt those efforts,” Van Beek said.
THE LIST: The next round of the Washington Reporter’s Most Influential Lobbyist List is here!
by the Washington Reporter
The next round of the Washington Reporter’s Most Influential Lobbyist List is here! These individuals embody the grit and determination that comes in the public policy sphere and are the real movers, shakers, and doers of D.C.
If you have a nominee, please send your submission to [email protected].
Check out the list below:
D.C.’s Most Influential Lobbyists: Part II
1. Jim Carroll
Professional Services Counsel
Jim Carroll, appointed CEO of the Professional Services Council on May 19, 2025, is a titan in government contracting. Blending Trump administration experience with a decade as Ford Motor Co.’s Washington counsel, Carroll masterfully aligns public and private sectors. His 20-year public service career shapes his leadership of PSC’s 400+ member companies, fostering innovation in federal partnerships.Quote from The Hill: “Jim’s knack for uniting industry and government is unmatched. He knows how to cut to the chase and the complicated FAR regulations to explain what agencies are really looking for.”
2. Drew Hudson
TechNet
Drew Hudson, TechNet’s Vice President and General Counsel, is a legal force in Washington’s tech arena. With over a decade of federal legal, policy, and communications experience, Hudson leads TechNet’s charge on a myriad of policy issues, providing sharp regulatory counsel on tax, trade, venture capital and startups, and other topics. He also runs TechNet's Innovation Legal Center.Quote from The Hill: “Drew’s a knife-fighter who masters politics and comms. He’s deeply connected, and knows how to navigate tough situations where Republicans are skeptical of the tech industry.”
3. John Martin
Capitol Counsel
John Martin, head of Capitol Counsel’s healthcare practice, is a linchpin in Washington’s policy arena. A former FDA Principal Associate Commissioner for Legislation under Trump, and legislative director for Sen. Tom Cotton (R., Ark.), Martin’s expertise shapes health care policy wins for clients like Amgen and NCPA. His work on FDA policy issues including user fees and Medicaid reform showcases his influence. With a bipartisan approach and unmatched policy chops, Martin drives results, cementing his status as a trusted leader in navigating complex legislative landscapes.Quote from the Hill: “John’s strategic mind earns him deep respect among Republicans on the Hill. He’s trusted and is even a mentor to junior staff.”
4. Katie Payne
PCMA
Katie Payne, Senior Vice President of Public Affairs at PCMA, is the quarterback of the pharmacy benefit managers’ (PBMs) media strategy, steering a complex industry through turbulent policy waters. With over two decades in healthcare communications, including a stint at Alexion Pharmaceuticals, Payne crafts PCMA’s narrative to highlight PBMs’ role in lowering drug costs for 275 million Americans. Despite tackling the tough issue of PBM scrutiny, she keeps winning with sharp advocacy and reputation management.Quote from the Hill: “Katie’s a relentless strategist who shapes the debate. The fact that PBMs have made it this far without anti-PBM legislation passing is a miracle. And a big part of that is Katie”
5. Tyler Grassmeyer
Microsoft
Tyler Grassmeyer, Microsoft’s Director of Congressional Affairs since November 2024, is a strategic force in tech policy. A University of Nebraska journalism graduate, Grassmeyer’s career includes serving as Chief of Staff in the U.S. House and top advisor to Sen. Ben Sasse (R., Neb.), forging deep Senate relationships. His tenure at Observatory Group sharpened his policy expertise before joining Microsoft to steer AI and regulatory advocacy. Grassmeyer’s deft approach has helped Microsoft sidestep the regulatory pitfalls ensnaring other Big Tech firms.Quote from the Hill: “Tyler navigates politics and comms with unmatched precision. Microsoft has kept a bipartisan relationship and avoided the targeting that Meta & Google get. Tyler plays a big role in making that happen.”
EXCLUSIVE: Reps. Moore, Feenstra, and Goldman talk Congressional Baseball Game on RSC’s “Right to the Point” podcast
by the Washington Reporter and Matthew Foldi
THE LOWDOWN:
The Republican Study Committee’s (RSC) “Right to the Point” podcast is releasing its thirteenth episode, and the Washington Reporter got the exclusive first look.
The newest episode features RSC vice chair Blake Moore (R., Utah), Rep. Randy Feenstra (R., Iowa), and Craig Goldman (R., Texas), giving their takes ahead of the annual Congressional Baseball Game for charity.
The Iowa Republican said that the importance of the game is not the game itself, but the “camaraderie that you have with each other.”
Goldman said that he asked Rep. Roger Williams (R., Texas) — the GOP coach and a former minor league ball player and coach of TCU’s baseball team — if he could try out for the team and got a great response.
The Republican Study Committee’s (RSC) “Right to the Point” podcast released its thirteenth episode, and the Washington Reporter got the exclusive first look.
The newest episode features RSC vice chair Blake Moore (R., Utah), Rep. Randy Feenstra (R., Iowa), and Craig Goldman (R., Texas), giving their takes ahead of the annual Congressional Baseball Game for charity.
In the introductions, Moore lamented his busted-up shoulder sidelining him for the game, joking that he is “an idiot and chose soccer over baseball,” quickly quipping after that soccer chose him, not the other way around. Feenstra talked about his history in the Iowa state legislature and working for a “large candy company,” while Goldman — a freshman — talked about his start in the National Republican Senatorial Committee (NRSC) mailroom.
Diving into the pregame show, the RSC hosts noted the history of the event dating back to 1909 and the fact that the win-loss split between the parties is “very split,” Moore said. Feenstra delved into the recent history of the game, as well as the friendship he developed with Goldman — affectionately called “Goldie” by Feenstra — while practicing.
“I just want to say I think it was our first year you were here, I think you are the one that hit it inside the park home run,” Feenstra said. “I mean, that was just so much fun. But you play on a professional field, where the Washington Nationals play, but this isn't just a one night thing.”
“Here we started practicing March 1, and we played, or we practiced every day that we're here in Congress, and most of us wake up at quarter to five every morning, get on a little short bus or get in a car, and we're at the field at 5:45,” Feenstra said.
The Iowa Republican said that the importance of the game is not the game itself, but the “camaraderie that you have with each other.”
EXCLUSIVE: Inside the Kennedy Center's $10 million Les Mis debut
by Matthew Foldi
The top brass of the Trump administration descended on the Kennedy Center once again for a showing of Les Misérables that pulled in $10 million for the legendary center in just a single night.
A seating chart, obtained exclusively by the Washington Reporter, showed just how significant the White House support was. President Donald Trump, First Lady Melania Trump, Vice President JD Vance, Second Lady Usha Vance, Ambassador Richard Grenell, Secretary Robert F. Kennedy Jr., Secretary Scott Bessent, and other top figures in the Trump orbit were in VIP seating for the evening.
Prior to the show, celebrities and Trump administration figures flocked to the center’s red carpet. Among those spotted were Attorney General Pam Bondi, Corey Lewandowski, Tony Sayegh, and others.
SCOOP: Democrats' votes, antics undermine bipartisan vigil to honor murdered Israeli diplomats
by Matthew Foldi
THE LOWDOWN:
Republicans and Democrats in Congress hosted a bipartisan vigil in honor of Yaron Lischinsky and Sarah Milgrim, the two Israeli embassy staffers allegedly murdered by a deranged anti-Semitic gunman outside the Jewish Museum of Washington, D.C.
The vigil, hosted by Speaker Mike Johnson (R., La.) and Rep. Hakeem Jeffries (D., N.Y.), was a moving ceremony that featured remarks from Jewish leaders as well as from staffers who worked with the murdered diplomats.
However, the actions and words of Democrats in D.C. immediately undermined their stated commitments to combatting violent anti-Semitism.
One hundred and thirteen House Democrats voted against a bipartisan resolution from Rep. Gabe Evans (R., Colo.), that condemned a separate terrorist attack in which an illegal immigrant allowed into America under President Joe Biden allegedly attempted to set Jews on fire in Boulder, Colorado, by throwing Molotov cocktails at them.
Republicans and Democrats in Congress hosted a bipartisan vigil in honor of Yaron Lischinsky and Sarah Milgrim, the two Israeli embassy staffers allegedly murdered by a deranged anti-Semitic gunman outside the Jewish Museum of Washington, D.C.
The vigil, hosted by Speaker Mike Johnson (R., La.) and Rep. Hakeem Jeffries (D., N.Y.), was a moving ceremony that featured remarks from Jewish leaders as well as from staffers who worked with the murdered diplomats.
However, the actions and words of Democrats in D.C. immediately undermined their stated commitments to combatting violent anti-Semitism.
One hundred and thirteen House Democrats voted against a bipartisan resolution from Rep. Gabe Evans (R., Colo.), that condemned a separate terrorist attack in which an illegal immigrant allowed into America under President Joe Biden allegedly attempted to set Jews on fire in Boulder, Colorado, by throwing Molotov cocktails at them.
Jeffries lashed out at the legislation, calling it “not a serious effort,” and personally attacked Evans as a “joke” for introducing it.
SCOOP: House Freedom Caucus lays out support for rescissions package eliminating $9.4 billion in federal funds to NPR, PBS, and more
by Matthew Foldi
THE LOWDOWN:
The House Freedom Caucus (HFC) is firmly behind the White House’s rescissions request to Congress, which would finally fully eliminate federal funding to liberal news organizations like National Public Radio (NPR) and the Public Broadcasting Service (PBS), multiple members told the Washington Reporter.
The rescissions package is a priority for the Trump administration, and Speaker Mike Johnson (R., La.) is confident that it will get passed. If passed, the bill will claw back almost $10 billion in funds from NPR, PBS, and some foreign aid programs.
The Freedom Caucus’s chairman, Rep. Andy Harris (R., Md.), told the Reporter that today’s vote is a “critical step” to restoring fiscal sanity in America.
Conservatives who have waited decades for this moment told the Reporter that the news is beyond welcome. “PBS and NPR have been DNC talking-point factories since they passed the Public Broadcasting Act of 1967,” Tim Graham, the Executive Editor of NewsBusters, told the Reporter. Graham has been monitoring NPR and PBS for almost four decades.
The House Freedom Caucus (HFC) is firmly behind the White House’s rescissions request to Congress, which would finally fully eliminate federal funding to liberal news organizations like National Public Radio (NPR) and the Public Broadcasting Service (PBS), multiple members told the Washington Reporter.
The rescissions package is a priority for the Trump administration, and Speaker Mike Johnson (R., La.) is confident that it will get passed. If passed, the bill will claw back almost $10 billion in funds from NPR, PBS, and some foreign aid programs.
The Freedom Caucus’s chairman, Rep. Andy Harris (R., Md.), told the Reporter that today’s vote is a “critical step” to restoring fiscal sanity in America.
“The House Freedom Caucus has led the charge in cutting wasteful spending and restoring fiscal sanity in Washington,” Harris said. “The rescissions package is a critical step in reining in out-of-control government waste and putting taxpayers first. Every dollar we save today is a step toward securing America’s economic future.”
More broadly, the HFC under Harris is currently running a social media campaign that makes the caucus’s priorities clear. It’s called “Defend the Taxpayer. Pass the Rescissions.”
“This first rescissions package is a crucial litmus test for Republicans,” Rep. Mark Harris (R., N.C.) told the Reporter. “We all campaigned on eliminating waste, fraud, and abuse from the federal government, so we cannot let this chance slip through our fingers. Then, we must work with the White House to identify billions more in savings to protect American taxpayers and restore fiscal responsibility.”
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Medicare Advantage delivers better health outcomes than Fee-For-Service Medicare at a lower cost to seniors.
The Biden administration cut Medicare Advantage two years in a row.
Now President Trump is working to protect and strengthen it.
Seniors are counting on Congress to do the same.
Protect seniors. Protect Medicare Advantage.
SCOOP: Cassidy’s Medicare changes opposed by the White House, some conservatives
by Matthew Foldi
The Big, Beautiful Bill is in the midst of a restructuring, and Sen. Bill Cassidy (R., La.) is working to get Medicare Advantage cuts in the bill, despite reported objections from both the White House and from much of the MAGA universe.
“People who play around with Medicare lose elections,” President Donald Trump told Sen. Josh Hawley (R., Mo.). Multiple sources in the health care world told the Washington Reporter that cuts to Medicare Advantage could be politically devastating for Trump and Republicans in the 2026 midterms.
Health care advocates caution that Cassidy’s No UPCODE provision could prove devastating to senior, and noted that Cassidy’s decision to partner with Sen. Jeff Merkley (D., Ore.) is curious given the need for Republicans to support the Big, Beautiful Bill.
Merkley, however, sounded unlikely to want the provision packaged into reconciliation.
Likewise, Sen. Josh Hawley (R., Mo.) said that he too is “pretty skeptical of doing anything on Medicare in reconciliation.”
Senate Republicans have seen polling that shows that 63 percent of voters believe a cut to Medicare Advantage is a cut to Medicare generally. Cassidy’s proposal has found support, though, from many of his Senate GOP colleagues.
Several leading conservatives sounded the alarm about possible cuts.
“President Trump has been very clear,” Jack Posobiec, the senior editor at Human Events, noted. “He’s not okay with cutting Medicare Advantage.”
K-STREET, 10,000 FEET:
How courts could undermine Biden's Inflation Reduction Act
by Matthew Foldi
THE LOWDOWN:
Oral arguments just started in Dayton Area Chamber of Commerce v. Robert F. Kennedy Jr. case in the Sixth Circuit. If the plaintiffs are successful, they could successfully challenge what they decry as “drug price controls” in President Joe Biden’s signature Inflation Reduction Act (IRA).
Jeff Stier, an attorney and senior fellow for Consumer Choice, explained the stakes of the case, saying the “federal government is trying to torture the standard set by the Supreme Court as to whether the chamber satisfies the second prong of the standing test for an association, which requires the case be germane to its broader mission.”
Conservatives in both Ohio and in the Trump universe are sounding the alarm about these IRA provisions. “Negotiations have nothing to do with the program spelled out in the IRA,” Ken Blackwell, a former Mayor of Cincinnati, said.
Nationally, conservatives like OH Skinner, another former state Solicitor General who also serves as the executive director of the Alliance for Consumers, noted that “the Biden administration went against [a] foundational rule of life when they tried to wipe countless household products off store shelves.”
President Joe Biden’s signature legislative accomplishment is in serious jeopardy thanks to a little-known case making its way through the Appeals Court system.
Oral arguments just started in Dayton Area Chamber of Commerce v. Robert F. Kennedy Jr. case in the Sixth Circuit. If the plaintiffs are successful, they could successfully challenge what they decry as “drug price controls” in Biden’s Inflation Reduction Act (IRA).
The case centers around a challenge to price control measures within the IRA, which proponents view as a way to authorize Medicare to negotiate some prescription drug prices. However, opponents argue these are unconstitutional price controls.
Jeff Stier, an attorney and senior fellow for Consumer Choice, explained the stakes of the case, saying the “federal government is trying to torture the standard set by the Supreme Court as to whether the chamber satisfies the second prong of the standing test for an association, which requires the case be germane to its broader mission.”
“If opposing unconstitutional price controls, which are already directly harming a wide range of the chamber’s members isn’t germane to its mission, nothing ever will be,” Stier said.
At issue, according to Ben Flowers, a former Solicitor General of Ohio, is a standing issue, “not the merits.” But, Flowers said, “the merits issues deserve more attention than they’ve received.”
The IRA, Flowers said, “imposes price controls. It does so by allowing the HHS Secretary to select drugs whose manufacturers can be forced to engage in a negotiation program.”
OPINIONATED
Op-Ed: Gov. Susana Martinez: To win the AI race, put a 10 year freeze on state-level red tape
by Gov. Susana Martinez
America is in a defining race for global leadership in artificial intelligence (AI). The outcome will impact everything from national security and economic prosperity to the values embedded in tomorrow’s technologies. As China pours unprecedented resources into dominating the AI frontier, the United States faces a pivotal decision: will we clear the runway for innovation through a national innovation strategy, or will we let a blizzard of state-level regulations ground our AI ambitions?
That’s why a 10-year federal moratorium on state-specific AI mandates that do not threaten the public's protection under the law isn’t just smart policy, but a national imperative.
Over the past three years, state legislatures have unleashed an avalanche of AI-related legislation. In 2023, around 200 AI bills were introduced across U.S. states. By 2024, that number had more than tripled to 635, with 99 signed into law. This year, we’re already past 1,000 proposed bills and counting. Many of these laws are well-intentioned, but their combined effect is a series of conflicting and heavy-handed mandates that risk stifling AI development in its infancy.
One example: California's SB 1047, which would have imposed sweeping liability penalties on AI developers of advanced models. Governor Gavin Newsom rightly vetoed the bill, expressing concerns that it could hinder innovation by imposing overly broad regulations even on low-risk AI applications. What’s worse, many state bills are patterned after the EU’s AI Act, which has been criticized as “a blueprint for hindering AI development.”
Op-Ed: Paul Kong: The commercial litigation finance industry responds to Sen. Tillis’s punitive tax bill
by Paul Kong
Last week, the Wall Street Journal editorial board launched a baseless and sloppy attack against litigation finance on behalf of Big Business, Big Insurance, Big Tech, and Big Pharma.
The editorial — entitled Ending a Tax Break for Lawsuits — promoted Sen. Thom Tillis (R., N.C.) and Rep. Kevin Hern’s (R., Okla.) Tackling Predatory Litigation Funding Act, which would impose a punitive tax on investors, including institutional investors and pension funds, and increase the cost of capital for small businesses, all to protect woke companies from accountability.
The bill is predicated on the assertion that commercial litigation finance benefits from an “anti-growth loophole” favoring “foreign investors.” But there’s a glaring problem with this argument: no such tax loophole exists.
Uncorrelated from the broader financial markets, litigation finance appeals to institutional investors seeking diversification. And a substantial portion of these investors have domestic tax-exempt status. Indeed, commercial litigation funders count numerous pensions among their largest backers. Plans for law enforcement, defense, public employees, and religious institutions have collectively invested heavily in the sector. While Sen. Tillis and Rep. Hern’s bill would penalize all litigation finance investors, it would disproportionately impact the retirement savings of hardworking Americans by imposing a punitive and retroactive tax that effectively eliminates their tax-exempt status. A nonexistent loophole should not justify a penalty.
Op-Ed: George David Banks: The mirage of the GOP’s “Green Wall” and its predictable disappearance
by George David Banks
House Republican moves to gut clean energy tax credits in the “One Big Beautiful Bill Act” stunned many renewable and low-carbon technology advocates. In the months leading up to the vote, hundreds of companies, trade groups, and advocacy organizations mounted an aggressive lobbying campaign calling on Republicans to defend the energy provisions of the Inflation Reduction Act (IRA). They organized events, staged fly-ins, flooded offices with constituent calls and letters, and ran targeted ads with a primary goal — to build a Republican “Green Wall” composed of a bloc of lawmakers to block any effort to curtail the credits.
K Street celebrated what they saw as the “Green Wall” completion, marked by two Dear Colleague letters calling to back the provisions — one headed by Rep. Andrew Garbarino (R., N.Y.) and twenty other House Members and the other led by Sen. Lisa Murkowski (R., Alaska) and three of her colleagues. Letters, however, rarely predict what will happen on the floor. In the D.C. swamp, people tend to see what they want to see and say what their patrons wish to hear.
The letters created a mirage. None of Garbarino’s squad opposed the bill. They unsurprisingly prioritized other issues: extending the Tax Cuts and Jobs Act, raising the SALT cap, securing Medicaid funding, or advancing border or defense spending. With the IRA’s energy tax credits projected to cost between $663 billion and $1.2 trillion by 2035, they became a prime target for deficit hawks. And with the IRA branded by critics as the “Green New Scam,” defending it was increasingly politically toxic. In high-stakes negotiations with razor-thin margins, lawmakers typically get one real ask — clean energy subsidies weren’t it.
IRA advocates also unwittingly had a messaging problem. They tried a rebrand using “America First” marketing. The campaign’s most strained effort was to fold IRA tax credits into President Donald Trump’s “energy dominance” agenda and revive the “all-of-the-above” strategy — an outdated GOP slogan originally used to counter President Barack Obama’s anti-fossil fuel policies. But for the Trump team and much of the Republican conference, energy dominance doesn’t include subsidies they view as creating Chinese jobs, nor do they support taxpayer funding for technologies viewed as unreliable or overly dependent on foreign supply chains.
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