Inside the Beltway Update

The Second Trump Administration hurled to a start this week with President Trump signing nearly 40 Day One executive actions on topics ranging from energy to immigration to federal hiring policies. Most notably, President Trump signed an Executive Order (EO) Monday evening on “Unleashing American Energy,” which among other things, revokes 13 Biden-era energy policies, directs federal agency heads to expedite and streamline permitting processes, and promotes liquified natural gas (LNG) export projects and domestic mining and processing. The EO also targets electric vehicles (EVs) and the Green New Deal, pausing funding under the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) for EV-related programs. Additionally, President Trump ordered EPA to "consider issuing emergency fuel waivers to allow the year-round sales of E15 gasoline to meet any projected temporary shortfalls in the supply of gasoline across the nation." The federal spending bill back in December would have allowed year-round E15 without the waivers, but that language was stripped out of the bill before lawmakers voted.

While the long-term impacts on clean energy and EV programs remain unclear, this move signals a clear federal pivot toward traditional energy sectors. Additional EOs issued this week include requiring federal employees to return to in-office work, withdrawing from the Paris Climate Agreement, eliminating federal DEI offices, and ordering the declassification of files related to the assassinations of John F. Kennedy, Robert F. Kennedy, and Martin Luther King Jr.

In addition, this week, over one hundred organizations – including the Energy Marketers of America – signed a letter in support of making permanent the Section 199A deduction for small- and family-owned businesses. President Trump again met with congressional leaders this week including Speaker of the House Mike Johnson and Senate Majority Leader Thune as Republicans continue to debate how and when to advance their legislative agenda on tax, energy, immigration, and federal spending. This is just the start of President Trump’s desire to meet face-to-face with every House Republican by the end of next month. House and Senate Republicans have made little progress on deciding whether to pursue one or two reconciliation bills in 2025 and continue to wrestle over the projected cost of extending their signature 2017 tax cuts, as well as President Trump’s campaign promises on eliminating tax on tips and Social Security benefits.

Meanwhile, Members of Congress and other stakeholders continue to make the case for inclusion of their tax priorities in the final legislation. The House Freedom Caucus (HFC) is reportedly less aligned with President Trump than before, proposing alternative reconciliation strategies that challenge Speaker Johnson’s single-bill approach. Leadership aims to finalize reconciliation instructions quickly, navigating tough votes and demonstrating progress on tax reform, spending cuts, and growth initiatives, while tensions persist over internal GOP dynamics and coordination with the White House. Meanwhile, and more time sensitive, appropriators are negotiating FY25 top-line funding levels amid pressure to avoid a shutdown before federal funding expires is approximately six weeks. On President Trump’s promised trade maneuvers, tariff implementation targeting China, Mexico, and Canada is anticipated by April.

With a packed agenda and tight deadlines, the administration and congressional Republicans are navigating significant challenges to align their legislative and policy goals in the early days of Trump’s second term.

Cigarette Menthol Ban and Flavored Cigar Proposed FDA Rules Withdrawn

With a new White House Administration, the FDA has withdrawn two proposed rules that would ban the sale of menthol cigarettes and flavored cigars. As a result, these proposals are no longer under consideration.

SCOTUS Issues Decision on CTA Beneficial Ownership Information Enforcement

There has been recent news and court action you may have read about this week on the Corporate Transparency Act. But, as of January 24, 2025, companies are still not currently required to file reports with Treasury’s Financial Crimes Enforcement Network (FinCEN). The U.S. Supreme Court yesterday (1/23/25) issued a stay of the “universal” or “nationwide” preliminary injunction that was stopping enforcement of the CTA (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). But, FinCEN published a further note on its website today (https://fincen.gov/boi) that it recognizes and accepts a separate nationwide stoppage issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury).

Therefore, companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action yesterday. The Fifth Circuit Court of Appeals still is considering the constitutionality of the CTA. This remains a very uncertain process, and we will continue to keep you posted as developments unfold. Again, to reiterate, despite recent news, FinCEN is communicating that the federal reporting requirement is still paused pending further court action.

Keep in mind that the Supreme Court’s stay focuses solely on the propriety of the universal preliminary injunction and in no way addresses the constitutionality of the CTA. Click here for Wall Street Journal story.

Please note that EMA partnered with Wolters Kluwer earlier this year to prepare marketers to file through BizFilings’ BOI reporting tool which reduces filing times and errors through a streamlined, secure and automated workflow. BizFilings offers EMA member companies a 12 percent discount off BOI report filings. The discount can be accessed via a dedicated EMA-member landing page below.

EMA Congratulates President Trump and Vice President Vance on Inauguration Day

On Wednesday, the Energy Marketers of America congratulated President Donald Trump and Vice President JD Vance on becoming the 47th President and 50th Vice President of the United States. We commend their continued dedication to promoting energy independence, job creation, and economic growth across the nation.

President Trump has shown unwavering leadership on energy issues, advocating policies that prioritize American energy producers and secure the role of liquid fuels in our nation’s energy portfolio. His administration’s efforts to streamline regulations and ensure fair treatment for liquid fuels have been instrumental in supporting the energy sector and the millions of workers it employs.

On behalf of our members and the men and women in the liquid fuels industry, we look forward to partnering with the Trump administration to further strengthen energy infrastructure, advance innovation, and ensure a stable and reliable future for liquid fuels.

EMA remains committed to serving as a voice for energy marketers and advocating for policies that support the vitality of the liquid fuels industry. As the administration embarks on its second term, EMA looks forward to collaborating on initiatives that bolster energy independence and secure a prosperous energy future.

EMA Urges Congress to Make 199A Tax Deduction Permanent

This week, EMA joined 230 other business groups in support of legislation to make permanent the 20-percent pass through business tax deduction (Section 199A). The letter was sent to Senator Steve Daines (R-MT) and Rep. Lloyd Smucker (R-Pa.), the lead sponsors of the Senate and House Main Street Tax Certainty Act of 2025, legislation to make permanent the 20-percent deduction for small- and family-owned businesses. This legislation would provide certainty to the millions of S corporations, partnerships and sole proprietorships that rely on the Section 199A deduction to remain competitive.

Despite its importance, the Section 199A deduction is scheduled to sunset at the end of 2025, even as the businesses it supports continue to struggle with rising prices, labor shortages, and supply chain disruptions. A recent Ernst & Young study found the loss of Section 199A would put 2.6 million jobs at risk. Making the Section 199A deduction permanent will help Main Street compete with large public corporations, lead to higher economic growth and more employment, and help prevent a significant tax hike on the businesses that drive our economy. Numerous studies by economists Barro and Furman, the American Action Forum, DeBacker and Kasher, Ernst & Young and others found Section 199A permanence would result in improved parity for Main Street businesses and higher levels of economic growth.

The more quickly Congress acts to make Section 199A permanent, the sooner petroleum marketers can shift their focus to economic growth and job creation. EMA looks forward to working with Congress to see the legislation enacted this year.

Weekend Reads

Trump US energy emergency order should withstand court challenges | Reuters

Business, energy groups praise Trump's Day 1 actions I Fox News

Trudeau says Canada will respond to US tariffs as Ontario’s premier says Trump ‘declared war’

With Executive Orders, President Trump Reshapes Federal Environmental and Energy Policy | National Law Review

Oil markets may help Trump on prices... | AXOIS

Trump's end to "EV mandate" could weaken automakers against China | AXOIS