Legislative Update: Trump Revokes EPA Endangerment Finding, Reshaping Federal Climate Authority

Trump Revokes EPA Endangerment Finding, Reshaping Federal Climate Authority

President Donald Trump has rescinded the Environmental Protection Agency’s (EPA) 2009 “endangerment finding,” the scientific determination that greenhouse gases pose a threat to public health and welfare. That finding has served as the foundational legal authority for federal greenhouse gas regulation across sectors. The Administration characterized the move as the largest deregulatory action in U.S. history, arguing that it will reduce compliance burdens, lower energy and transportation costs, and improve the competitiveness of domestic manufacturing. The White House estimates the change will reduce per-vehicle manufacturing costs by approximately $2,400 and generate more than $1 trillion in economic savings.

For industry, the most immediate implications center on vehicle emissions standards and related fuel economy requirements, which have been premised on the 2009 determination. Administration officials and former transportation policymakers argue that prior greenhouse gas regulations increased production costs and incentivized the offshoring of energy-intensive manufacturing to countries with less stringent environmental standards. They contend that regulatory relief will ease cost pressures on automakers and energy producers, potentially encouraging expanded domestic investment. However, some analysts caution that a shift toward less fuel-efficient vehicles could complicate export competitiveness in markets where emissions standards remain stringent.

The revocation is expected to face prompt legal challenges from states and environmental organizations, introducing potential regulatory and litigation uncertainty. The 2009 finding has also been used to preempt stricter state-level carbon regulations and to limit certain climate-related nuisance lawsuits; its reversal may reopen questions about federal preemption and state authority. Legal observers anticipate renewed litigation in both federal and state courts to clarify the scope of regulatory authority and liability exposure in the absence of the endangerment finding.

Vinyl Institute Part of Industry-led Effort to Advance the Recycled Materials Attribution Act in the House 

Representative Nick Langworthy (R-NY) introduced bipartisan legislation to establish uniform federal standards for recycling and recycled-content marketing claims.  The Recycled Materials Attribution Act (RMAA, H.R. H.R.7502) would direct the Federal Trade Commission (FTC) to update its Green Guides to align with statutory definitions established under the bill, with the stated goal of harmonizing terminology and labeling requirements nationwide.

The Recycling Leadership Council, formed earlier this year and led by the Consumer Brands Association, has emerged as a principal advocate of the legislation. The Vinyl Institute, along with a broad coalition of stakeholders, are participants in the Council.  Supporters argue that a consistent national framework would provide regulatory certainty for manufacturers, encourage investment in emerging recycling technologies, and protect consumers from misleading environmental claims. The legislation represents the latest federal effort to address longstanding inconsistencies between state and federal standards on recycling definitions and marketing practices.

Rep. Langworthy emphasized that regulatory modernization is essential to ensure federal policy keeps pace with technological advancements in material recovery and reuse.   Representatives Dan Crenshaw (R-TX), Randy Weber (R-TX), August Pfluger (R-TX), Henry Cuellar (D-TX), Vicente Gonzalez (D-TX), Marc Veasey (D-TX), Don Davis (D-NC), Gabe Evans (R-CO), and Jonathan Jackson (D-IL) are all original cosponsors of the bill.

Thompson Unveils 2026 Farm Bill Ahead of Markup

House Agriculture Chairman Glenn “GT” Thompson (R-PA) released the long-awaited text of the five-year 2026 Farm Bill, formally titled the Farm, Food, and National Security Act of 2026 (H.R. 7567).  The Committee has scheduled a markup on February 23 after missing several previously targeted markup dates. Thompson said he has floor time guarantees from leadership.

At this time, the bill doesn’t include the Leveraging Efficiency Awareness for Pumping Systems (LEAPS) Act (H.R.3979), which is supported by the Vinyl Institute. The LEAPS Act is a bipartisan bill introduced by Reps. Mike Lawler (R-NY) and Josh Riley (D-NY), that will improve agricultural efficiency and support American-made plastic manufacturing jobs. It allows farmers to switch to more efficient pumps and irrigation systems, saving American farmers $1.8 billion in energy costs a year. The legislators are expected to offer the legislation as an amendment.

Industry Presses Trump Administration on Tariff Certainty and to Preserve USMCA

In remarks prepared for delivery in Cleveland on February 19, National Association of Manufacturers (NAM) President and CEO Jay Timmons will call on the Trump administration to reduce trade volatility and clear the path for expanded domestic manufacturing investment. Framing the sector as “fueled and ready” but stalled by uncertainty, Timmons is expected to emphasize rising input costs, shifting tariff policies, and escalating health care expenses as barriers to growth. While the administration has relied heavily on tariffs to support U.S. industry and incentivize reshoring, factory employment has edged down slightly to approximately 12.59 million jobs. Timmons’ central message is that stable trade conditions and predictable policy are prerequisites for unlocking a broader manufacturing expansion.

A key element of NAM’s proposal is the creation of a Manufacturing Investment Accelerator Program, described as a “speed pass” for industrial inputs not produced domestically. Under this framework, manufacturers would either receive a license to import critical materials tariff-free or obtain a rebate on paid tariffs, which could be reinvested in domestic facilities. Timmons argues that even at full capacity, U.S. factories could supply only about 84 percent of required critical inputs, leaving a structural shortfall of roughly 16 percent. That gap includes critical minerals, specialty chemicals, and advanced industrial equipment that are not currently produced in the U.S. and would require significant time and capital to develop domestically. NAM contends that targeted tariff relief would allow companies to scale production more rapidly while maintaining competitiveness.

Timmons is also expected to advocate for renewed trade negotiations to expand export markets and secure supply chains for critical materials. He will urge the administration to preserve and strengthen the U.S.-Mexico-Canada Agreement (USMCA), which is scheduled for review this summer. Emphasizing its origins as a signature achievement of President Trump’s first term, Timmons will call for maintaining and improving the agreement rather than reopening the door to broader trade instability.

Chamber Backs Congressional Effort to Revoke IEEPA-based Trade Duties 

The House approved H.J. Res. 72 by a 219–211 vote to terminate the national emergency underpinning President Trump’s tariffs on Canada imposed under the International Emergency Economic Powers Act (IEEPA), with six Republicans joining nearly all Democrats in support. The resolution, led by House Foreign Affairs Committee Ranking Member Gregory Meeks (D-NY), represents the first in a planned series targeting the administration’s country-specific and “reciprocal” tariffs, though it faces the prospect of a presidential veto and steep supermajority thresholds in both chambers. While Senate consideration and potential veto dynamics create uncertainty over immediate policy change, the episode signals renewed institutional debate over the separation of powers in trade policy and the political salience of tariffs ahead of the midterm elections

In parallel, the U.S. Chamber of Commerce publicly endorsed the House effort and urged lawmakers to pass resolutions terminating the emergencies supporting tariffs on Canada, Mexico, Brazil, and other trading partners. In a February 11 letter, Chamber Executive Vice President Neil Bradley argued that broad-based tariffs are raising costs for families and businesses and called on Congress to reassert its constitutional authority over trade and taxation. The Chamber further encouraged the enactment of legislation requiring an up-or-down congressional vote on new tariffs and those imposed in the past year, emphasizing the need for stakeholder consultation and an economic impact assessment.

Congress Recesses Amid DHS Funding Lapse and Stalled Negotiations

The House and Senate are out the week of February 16 and are scheduled to return the following week, February 23.  Congress departed Washington without reaching an agreement on full-year funding for the Department of Homeland Security (DHS), triggering a partial shutdown of the agency as appropriations expired. The Senate failed to invoke cloture on the House-passed DHS appropriations bill (H.R. 7147) by a 52–47 vote, with all Democrats except Sen. John Fetterman (D-PA) opposed, and Majority Leader John Thune (R-SD) switching his vote to preserve procedural options.

Sen. Katie Britt (R-AL), chair of the Senate Homeland Security Appropriations Subcommittee, sought unanimous consent for a two-week continuing resolution, but Sen. Christopher Murphy (D-CT) objected, citing the late release of legislative text from the White House. Democratic leadership is maintaining that no further stopgap funding would be supported absent substantive progress on immigration enforcement reforms. Negotiations are expected to continue during recess, with members placed on 48-hour notice should a breakthrough occur.

Senate EPW to Release Draft TSCA Bill Ahead of March Hearing, Plans Hearing on WRDA

The Senate Environment and Public Works (EPW) Committee is preparing to release draft legislative text to reform the Toxic Substances Control Act (TSCA) ahead of a planned hearing in early March. The anticipated hearing marks renewed movement after several months of limited public activity on TSCA, despite the looming expiration of the statute’s industry user fee authority at the end of fiscal year 2026. Chairman Shelley Moore Capito (R-WV) has previously expressed interest in pursuing bipartisan reforms and reauthorizing the fee program, though efforts were delayed as the committee prioritized permitting reform legislation, which has since stalled amid partisan disagreements. On the House side, Energy and Commerce Committee Republicans are soliciting stakeholder feedback on draft TSCA legislation released in January, though the timeline for introduction or markup remains unclear.

The Committee also announced that it will be holding a hearing to “Examine the Water Resources Development Act of 2026 and U.S. Army Corps of Engineers Projects, Programs, and Priorities” on February 25.  Assistant Secretary of the Army for Civil Works and the Chief of Engineers and Commanding General of the U.S. Army Corps of Engineers are scheduled as witnesses.

House Approves Bipartisan Housing Package with Community Banking Reforms

The House passed sweeping housing legislation (H.R. 6644) by a 390–9 vote under suspension of the rules, reflecting broad bipartisan support for measures to increase housing supply and address affordability concerns. Sponsored by House Financial Services Committee Chairman French Hill (R-AR), the bill includes dozens of provisions intended to reduce barriers to housing development and lower costs. In late January, Hill added a new title focused on community banking, emphasizing the role that smaller, locally focused financial institutions play in housing construction and development finance.

The House action positions the chamber with its own comprehensive housing proposal, following the Senate Banking Committee’s unanimous approval last year of similar legislation (S. 2651). Senate Majority Leader John Thune (R-SD) has indicated the Senate may take up its version in the coming weeks, with House leaders signaling an interest in negotiating a bicameral package capable of advancing to President Donald Trump for signature.

Administration Pushes Back on NY Fed Report Saying Americans Bear Most Tariff Costs

A Federal Reserve Bank of New York report found that American consumers and businesses bear the overwhelming majority of tariffs imposed under the administration’s trade policies. The study estimates that roughly 90 percent of tariff costs are passed through domestically, contradicting claims that foreign exporters absorb most of the burden. The average tariff rate rose sharply last year, peaking during periods when duties on Chinese goods exceeded 100 percent. Federal Reserve officials indicated that tariffs contributed to inflation overshooting the 2 percent target, complicating monetary policy decisions. The findings align with those of researchers at Harvard Business School, Yale University’s Budget Lab, the Kiel Institute for the World Economy, and the Congressional Budget Office (CBO), which estimates that higher tariffs increase import costs and consumer prices.

White House economic adviser Kevin Hassett criticized the report, calling the analysis deeply flawed and suggesting staff involved should face disciplinary action. Hassett argued that broader economic indicators, including easing inflation, earlier-year declines in import prices, and rising real wages, demonstrate that consumers have benefited rather than suffered from the tariff policy. He contended that improved purchasing power would be inconsistent with the paper’s conclusions.

EPA Closes Office of Research and Development Amid Agency Restructuring

The EPA has formally disbanded its long-standing Office of Research and Development (ORD), notifying Congress of the closure and preparing to reassign remaining staff as part of a broader restructuring. While EPA maintains that no reductions in force or office closures will result immediately and describes the move as a strategic effort to integrate scientific expertise more directly into program offices, observers indicate that between 150 and 400 employees remain in transition, with uncertainty surrounding the scope of planned reassignments. The new Office of Applied Science and Environmental Solutions (OASES), housed within the Office of the Administrator, is expected to replace certain ORD functions but appears positioned to focus primarily on shorter-term technical support rather than long-term, anticipatory research.