Policy and Legal

The Securities and Exchange Commission should rescind certain reporting requirements for cybersecurity incidents in its 2023 final cybersecurity rule, the NAM told the agency.

What’s going on: The NAM supports a rulemaking petition recently submitted by five financial industry groups that asks the SEC to “rescind the Form 8-K (Item 1.05) incident reporting requirements for cybersecurity incidents, as well as the corresponding Form 6-K requirements for foreign private issuers.”

The SEC should also do the following, according to the NAM:

• Rescind the four-day reporting requirement: The NAM asks the agency to stop mandating that public companies report on cybersecurity incidents within four business days. Instead of this rigid deadline, the NAM supports a return to a voluntary principles-based disclosure regime, whereby companies have more flexibility to disclose significant cybersecurity attacks to provide timely and useful information for shareholders.
• Allow more flexibility for companies to delay disclosures that could jeopardize national security or law enforcement investigations. The NAM asks the SEC to broaden a narrow exception that requires companies to obtain permission from the U.S. attorney general within four business days to delay public disclosure, an impractical requirement for most manufacturers.

Why the SEC should do it: The current four-business day reporting mandate provides manufacturers “with insufficient flexibility to delay or forgo disclosure to investigate and respond to an incident, work with law enforcement or avoid tipping off attackers,” NAM Managing Vice President of Policy Charles Crain explained.

• The mandatory disclosure deadline has “increase[d] costs and complexity for businesses” and has the potential to “mislead investors and ultimately create significant risks for shareholders and the broader economy that would eclipse the potential benefits of reporting.”
• The SEC’s incident reporting mandate also harms shareholders by diverting company resources from efforts to address the impact of a cybersecurity attack.
• Finally, requiring that companies issue public reports while a cybersecurity incident is ongoing could provide information helpful to the perpetrators or other bad actors.

The last word: “The NAM strongly supports a more flexible approach to cybersecurity reporting, and manufacturers respectfully encourage the SEC to amend its 2023 cybersecurity rule to more appropriately reflect the important concerns of public companies, shareholders, law enforcement and national security agencies,” Crain said.

A critical law that safeguards Americans from cybersecurity threats is due to expire on Sept. 30—and Congress must reauthorize it before that happens, the NAM told Congress this week.

What’s going on: “The Cybersecurity Information Sharing Act of 2015 (CISA 2015) has been instrumental over the past decade in protecting Americans from cybersecurity threats by supporting companies’ efforts to share cybersecurity information with one another and with the federal government,” NAM Managing Vice President of Policy Charles Crain told the House Committee on Homeland Security and the Senate Committee on Homeland Security and Governmental Affairs on Monday.

• Through their relationships with customers, vendors, suppliers and governments, manufacturers are entrusted with vast amounts of sensitive data and intellectual property. With its information-sharing requirements, CISA 2015 has been instrumental in helping them keep that information safe.
• Prior to the law’s enactment, many businesses were reluctant to share cyberthreat information due to liability and public disclosure concerns.

How it works: “By enabling the rapid dissemination of security intelligence, information sharing diminishes the ability of malicious actors to gain economies of scale as they seek to replicate attacks against multiple targets,” the NAM continued.

• “It also allows government agencies and private sector Information Sharing and Analysis Centers to develop a comprehensive and authoritative view of patterns and trends across industries and geographies, and thus to promote effective systemic responses.”
• It also helps create trust between cybersecurity personnel across various organizations.

What Congress should do: “With less than four months before the expiration of CISA 2015, manufacturers call on Congress to make its reauthorization a priority,” the NAM urged.

The Senate Finance Committee yesterday released draft text of the tax sections of the reconciliation bill, preserving most of the pro-growth tax provisions that manufacturers—and the NAM—have long advocated.

What’s in it: The bill reflects the NAM’s key tax priorities, including:

• A permanent pass-through deduction and retention of pro-growth individual and corporate tax rates;
• Permanence for pro-growth tax policies like immediate R&D expensing, full expensing for capital equipment purchases and a pro-growth interest deductibility standard;
• An expanded and permanent estate tax exemption;
• Pro-manufacturing reforms to the international tax system that protect America’s competitiveness on the world stage; and
• A first-of-its-kind incentive allowing immediate expensing of the cost of new factories and modernizations.

What’s not in it: Critical energy and manufacturing incentives are still on the line. The Senate bill makes changes to these provisions from the House bill—and the NAM is already working to ensure policymakers understand the implications these changes could have for manufacturers in America and American energy dominance.

The NAM’s advocacy: The NAM has long urged Congress to make permanent the pro-growth policies of the Tax Cuts and Jobs Act. Its multiyear campaign has put manufacturers front and center to show why preserving tax reform is essential for driving investment and creating jobs.

• Most recently, the NAM released a report, “Keeping Our Promises: Manufacturers on Eight Years of Tax Reform,” featuring manufacturers’ own accounts of how the TCJA helped them invest in their facilities, their workers and their communities.
• The NAM has stayed in constant contact with lawmakers, urging Senate leaders to preserve the crucial manufacturing priorities from the House bill while also adopting targeted improvements to ensure the final package is maximally beneficial for manufacturers’ investment and job creation.

The NAM says: “Chairman Crapo and the Senate Finance Committee are delivering the kind of tax policy manufacturers have been calling for—policy that drives growth, unlocks investment and grows jobs,” said NAM President and CEO Jay Timmons. “… By preserving the full suite of pro-growth policies from the TCJA, this bill marks a major step forward for manufacturing in America.”

• “Manufacturers also want to ensure that the tax code continues to support inbound investment into the United States as well as preserve incentives that drive investments in the manufacturing and energy production needed to power America’s economic growth. If the Senate acts now, manufacturers can continue to grow—buying equipment, hiring workers, increasing pay and expanding operations with greater certainty and confidence.”
• “The Finance Committee recognizes what’s at stake: nearly 6 million jobs and more than a trillion dollars in economic output depend on getting this right.”

Thanks in large part to rising power demand for data centers, policymakers have become increasingly supportive of nuclear energy—resulting in more than 200 nuclear-related bills filed in state capitols so far in 2025 (E&E News).

What’s going on: One of the few methods of electricity generation to have bipartisan backing, nuclear “has quietly gained traction in statehouses from Phoenix to Austin to Indianapolis” with dozens of state bills already either signed into law or now awaiting signature by governors.

Why it’s happening: “Unlike in the past, when nuclear power was pitched as a carbon-free back[stop] for aging coal plants, the selling point today is focused squarely on rising power demand, especially for power-thirsty data centers.”

• Nuclear power emits no greenhouse gases and can be generated year-round and in all weather.
• But efforts to make it more widely used in the U.S. have stalled in recent years, owing mainly to project delays and higher-than-anticipated costs.

What’s new now: “Desperate to bring economic investment and jobs to their states and districts, state legislators of both parties are courting ‘hyperscale’ data centers operated by technology titans” such as Amazon. “And lawmakers are keenly aware that power availability is at the top of the list of requirements.”

Case study: In Indiana, legislators have prioritized measures to hasten nuclear development.

• Lawmakers have passed bills to attract small modular reactors, the next generation in nuclear power generation “considered by many leaders in the state as a fitting replacement for an aging coal fleet. And Republican Gov. Mike Braun and other state officials see potential for making Indiana a manufacturing hub for the next-generation reactors.”
• Large projects in the state—including an $11 billion Amazon endeavor in New Carlisle—require large amounts of power.
• One state utility, AEP’s Indiana Michigan Power, is seeking $50 million in federal grants with the Tennessee Valley Authority for an early site permit to build a 300-megawatt SMR at the site of a coal-fired power plant that’s set to retire in 2028.

Other states go nuclear: “Arizona, Arkansas, North Dakota, Utah and Virginia have all enacted measures into law to encourage nuclear power.”

• The hardest-hitting bills authorize funding or financial incentives, such as Texas’ measure for a $350 million nuclear fund.

Our take: “Nuclear power is a critical component of the all-of-the-above energy strategy that we need to meet the demands of the manufacturing industry in the 21st century and to make America truly energy dominant,” said NAM Director of Energy and Resources Policy Michael Davin.

Many major business groups, including the NAM, are calling on Congress to preserve funding and resources for ENERGY STAR, a federal program that promotes energy efficiency in consumer products (E&E News, subscription).

The request: “Clear legislative authorization backs ENERGY STAR as a voluntary public–private partnership run by the federal government,” more than 30 business groups told legislators.

• “We respectfully request that ENERGY STAR not be supplanted by nongovernmental efforts that could significantly alter and overly complicate the program.”

The background: Environmental Protection Agency Administrator Lee Zeldin has announced plans to restructure the agency, including by eliminating the Office of Atmospheric Protection, which manages the ENERGY STAR program.

• The ENERGY STAR program sets efficiency standards for a range of products and materials, including air conditioners and heat pumps, allowing them to display the program’s logo if they meet the criteria.

Why it matters: “Electricity saved by ENERGY STAR helps free up space on the grid needed so the U.S. can lead the world to power and grow artificial intelligence, support the burgeoning crypto asset industry and bring more manufacturing plants back to our shores,” the associations said.

The NAM’s take: “The ENERGY STAR program is a prime example of how federal agencies should be partnering with the industry to promote energy-efficient products that save money for consumers,” said NAM Director of Energy and Resources Policy Mike Davin.

• “Instead of imposing top-down regulations, ENERGY STAR brings together the public and private sectors on a voluntary basis to create a win–win–win outcome for consumers, the environment and the economy.”

As manufacturers call on policymakers to preserve tax reform by passing the tax bill, they’re reflecting on everything the 2017 Tax Cuts and Jobs Act made possible for the industry.

Back in 2017 and 2018, the NAM told manufacturers’ stories of hiring more workers and increasing wages, making new investments and buying new equipment, expanding facilities and strengthening R&D, in an influential series of articles called “Keeping Our Promises.” Today, the NAM released a report showing where those companies are now because of the TCJA—and how much they have grown and succeeded in the eight years since the landmark legislation.

Their stories: The report features many small manufacturers that found tax reform to be transformative, including Westminster Tool, Click Bond, Ketchie, Gentex, Winton Machine, Jamison Door Company and more.

• To take one example, Westminster Tool, a small Connecticut company that designs and creates plastic injection molds for the medical, aerospace and consumer products industries, was able to hire more than a dozen workers, growing its workforce by nearly 30%.
• Click Bond, a small manufacturer of aerospace and defense assembly solutions, was able to review its pay scales and increase both hourly and supervisory workers’ wages, which has helped it compete better in the labor market and keep pace with inflation.

The NAM says: “The evidence is clear: manufacturing had its best job creation in more than two decades, the strongest wage growth in 15 years and significant investment in capital equipment after the passage of the TCJA in 2017,” said NAM Executive Vice President Erin Streeter.

• “But several of these tax provisions have expired already—and the rest are scheduled to sunset at the end of this year—putting at risk 6 million American jobs, more than $500 billion in wages and benefits and more than $1 trillion in GDP.”

The bottom line: “Tax reform worked,” Streeter emphasized.

• “Congress faces a straightforward choice to make the TCJA’s manufacturing-empowering provisions permanent, or risk undermining the foundation of our economic competitiveness.”

NAM in the news: POLITICO Pro’s Morning Tax newsletter (subscription) covered the report this morning.

• Later, the White House’s rapid response account on X (formerly Twitter) promoted the report and the NAM’s tax policy priorities multiple times.

The Environmental Protection Agency’s announcement Wednesday that it plans to repeal the previous administration’s power plant regulations “is a critical and welcome step toward rebalanced regulations and American energy dominance,” NAM President and CEO Jay Timmons said yesterday.

What’s going on: EPA Administrator Lee Zeldin said at a Wednesday press conference that Biden-era limits on greenhouse gas emissions from gas- and coal-fired power plants “suffocate our economy in order to protect the environment” (CBS News).

• The rules the EPA is proposing to roll back mandated that existing coal-fired plants and new natural gas–fired plants reduce or capture 90% of their emissions by 2032, among other requirements.
• Finalized by the previous administration in 2024, the regulations also contained an unrealistic timeline for power plants to adopt new technologies, especially given the need for permitting reform, the NAM said in April 2024.

Why it’s important: The 2024 power plant rules are a threat to affordable baseload energy—which manufacturers require to do their jobs—and put grid security at risk, Timmons said.

• “Repealing this unbalanced rule will enhance manufacturers’ access to America’s abundant energy resources and ensure that the industry has the power it needs to drive the American economy.”

NAM in the news: The Washington Examiner cited the NAM’s response to the EPA decision, quoting Timmons’ statement.

The U.S. needs a strong, reliable and diverse health care supply chain, the NAM told the House Energy and Commerce Subcommittee on Health Wednesday ahead of a hearing.

What’s going on: National emergencies and natural disasters have proven the necessity of a diverse and resilient health care supply chain to ensure Americans have a stable supply of lifesaving medicines.

Why it’s important: “Global, resilient supply chains were essential during the pandemic and in the aftermath of Hurricane Helene to help fill gaps and minimize supply shortages or temporary disruptions,” NAM Managing Vice President of Policy Charles Crain said.

• Manufacturers are committed to onshoring pharmaceuticals manufacturing, he continued, adding that most medications taken by those in the U.S. are made in the country.
• However, some pharmaceutical ingredients cannot be sourced domestically, or cannot be obtained in sufficient quantities here, making “[i]mported inputs … vital to U.S. pharmaceutical production,” Crain continued.

Subcommittee’s take: Chairman Buddy Carter (R-GA) stressed the importance of the One Big Beautiful Bill Act, “which incentivizes domestic medical supply production,” as well as the elimination of “ burdensome regulatory barriers” in his opening statement.

• He also emphasized the need to “streamline processes that impede our competitiveness on the global stage and establish the proper incentives to ensure we are creating the environment to allow innovation to flourish.”

What’s next: The NAM encourages swift passage of the OBBBA by the Senate to support biopharmaceutical manufacturers.

• The NAM also recommends the House Energy and Commerce Committee mark up the Medical Supply Chain Resiliency Act, a bill that would “authorize the president to enter into trade agreements with allies and partners to remove barriers and duties with respect to medical goods, which would contribute to national security, public health and supply chain resiliency,” NAM Managing Vice President of Policy Charles Crain said.

The U.S. produced a record amount of energy in 2024, according to the U.S. Energy Information Administration.

What’s going on: “U.S. total energy production was more than 103 quadrillion British thermal units in 2024, a 1% increase from the previous record set in 2023. Several energy sources—natural gas, crude oil, natural gas plant liquids, biofuels, solar and wind—each set domestic production records last year.”

The details: Natural gas has been the primary source of American domestic energy production—accounting for approximately 28% of total energy production last year—every year since 2011.

• Crude “was a record 13.2 million barrels per day in 2024, 2% more than the previous record set in 2023.”
• Natural gas plant liquids, which are fuels extracted from the processing of natural gas such as ethane and propane, totaled a record 4 trillion cubic feet in 2024, up 7% from 2023 and accounting for approximately 9% of total U.S. energy production that year.

Other sources: Solar, wind and biofuels also set records in 2024.

• Solar and wind production increased by 25% and 8%, respectively, as new generating capacity was added.
• Biofuels—which comprise biodiesel, renewable diesel and ethanol, as well as other biofuels like sustainable aviation fuel—accounted for “a record 1.4 million barrels per day, up 6% from previous records set in 2023.”
• Output from geothermal declined slightly from 2023.

The NAM says: “This data is clear evidence of the strength and success of an all-of-the-above energy strategy,” said NAM Director of Energy and Resources Policy Michael Davin.

• “Given the growth of artificial intelligence and data centers, we will continue to need record levels of energy generation. By continuing down this path, we could reach our goal of U.S. energy dominance on the world stage.”

Mexico’s first judicial elections occurred on Sunday, and the results, while not yet completely final, raise questions about the integrity of the country’s judges going forward (AP News).

State of play: With more than 98% of the vote tallied as of Tuesday night, President Claudia Sheinbaum’s party is poised to control the Supreme Court, with a majority of judges holding ideological or political ties to the ruling party.

• Experts, allied nations and companies that do business in Mexico—including manufacturers—have voiced concerns that judicial elections will turn the judiciary into a political arm of the president’s party.

The background: Before leaving office, Sheinbaum’s mentor and predecessor President Andrés Manuel López Obrador forced through a controversial reform mandating elections for judges.

• The NAM has issued multiple warnings since these reforms were first proposed last year, telling Mexican officials in person that companies investing in Mexico need assurance that their portfolios will be protected under the new judicial regime.
• “We’re concerned that some of the reforms as proposed could harm Mexico’s standing as an attractive place to do business,” NAM Vice President of International Policy Andrea Durkin said on the “Imagen Empresarial” (“Corporate Image”) podcast in September. “Manufacturers pay attention to how banks are factoring these potential changes to the constitution into Mexico’s risk profile.”

More to come: “Votes were still being counted for the majority of the 2,600 federal, state and local judge positions up for grabs in Sunday’s elections.”

The NAM says: “A lack of confidence in Mexico’s judicial system could imperil future U.S. investments, particularly at a time of great uncertainty in trade relations between our countries,” said Durkin today.