Policy and Legal

The politicization of the proxy process has harmed manufacturers and must be addressed, the NAM told the House Committee on Financial Services on Tuesday.

What’s going on: “When manufacturers offer their shares to the public, it allows everyday Americans to participate in the industry’s success, largely through passive investments like mutual funds, pension plans and 401(k) accounts,” the NAM told lawmakers before a Wednesday hearing.

• But in recent years, shareholder activists, with the support of proxy advisors, have increasingly hijacked the proxy ballot process to advance political and social agendas that have little to do with a company’s business.
• These activist proposals force publicly traded manufacturers to take positions on contentious political issues and drive up costs for companies and other investors. Each shareholder proposal “can impose direct costs in excess of $150,000,” the NAM noted.

More problems: Proxy advisory firms, which provide institutional investors with research and voting recommendations, are not subject to any meaningful oversight by the Securities and Exchange Commission.

• What’s more, two firms—Institutional Shareholder Services and Glass Lewis—control 97% of the U.S. proxy advice market and frequently have “significant conflicts of interest” when issuing their voting recommendations, the NAM said.
• Further, these firms’ proxy research reports often include errors and misleading statements.

The background: Following years of NAM advocacy, the SEC finalized a rule in July 2020 to rein in proxy firms and require them to notify their clients if companies had responses to their research reports.

• But the following year, after a change in presidential administrations, the SEC refused to enforce that rule and then gutted most of the reforms in the 2020 rule.
• This past July, the U.S. Court of Appeals for the D.C. Circuit ruled in a lawsuit brought by ISS that the SEC lacks the authority to regulate proxy advice.

What now? “Following the D.C. Circuit’s decision, it has become even more imperative for Congress to act to pass legislation that reaffirms the SEC’s authority to regulate proxy advice under the Exchange Act,” the NAM said.

• The NAM urged lawmakers to support SEC rulemaking that prohibits proxy firms from offering consulting services tainted by conflicts of interest and provide all American public companies covered by their research “with a reasonable opportunity” to review their draft reports.
• The NAM also encouraged lawmakers to support rulemaking to modernize Rule 14a-8 by increasing the outdated $2,000 ownership requirement, updating the resubmission thresholds to exclude proposals rejected by investors and allowing companies to exclude activist proposals that raise environmental, social and political topics that are not material.

The final say: The NAM thanked Chairman French Hill (R-AR) for holding the hearing on shareholder proposals and proxy firms. “We agree that the proxy process has been increasingly co-opted by activist investors who are pushing narrow political, social or personal agendas that harm manufacturers and Main Street investors,” the NAM posted on X on Wednesday.  ​​​​​

The NAM and six allied manufacturing groups have urged Congress to modernize the 1975 Energy Policy and Conservation Act.

What’s going on: “After years of dramatic improvements in appliance efficiency, additional, meaningful, cost-justified energy savings are unlikely under EPCA’s current structure without forcing manufacturers and consumers to make tradeoffs in the form of features, performance and product availability,” the business associations said.

• EPCA created, among other things, the Energy Conservation Program for Consumer Products, which sets minimum efficiency standards for common household appliances and equipment.
• The NAM was joined in this advocacy effort by the Association of Home Appliance Manufacturers, the Air-Conditioning, Heating and Refrigeration Institute, the Air Movement and Control Association International, the American Lighting Association, the North American Association of Food Equipment Manufacturers and the National Electrical Manufacturers Association.

Why it’s important: Yesterday, the House Energy and Commerce Committee held a hearing to discuss stricter EPCA efficiency standards enacted during the Biden administration.

• The joint release issued by the NAM and other manufacturing groups called on the committee to help ensure that businesses and consumers can choose the appliances and equipment they want and that investments made by manufacturers are not undermined.

Next steps: Yesterday’s hearing is expected to act as a precursor to legislative action that the committee will consider in the coming weeks.

The NAM says: “Manufacturers, including producers and users of energy, are committed to reducing our energy intensity and producing more energy-efficient consumer products to keep America leading in innovation, help reduce energy demand, save money and lower costs,” the NAM told the Department of Energy earlier this year. “Manufacturers strongly support sensible efficiency and waste-reduction measures across all sectors of the economy.”

• “The NAM supports joint government–industry initiatives that enhance private-sector investment in public building efficiency improvement projects, policies that strengthen and harmonize standards for existing commercial, industrial and residential buildings and policies that recognize the incredible efficiency improvements manufacturers have made to products already.”

Yesterday, the Department of Health and Human Services released a second installment of the Make America Healthy Again Commission’s strategy report, focusing on nutrition and vaccines, among other topics (NBC).

Industry response: The NAM and manufacturers cautioned that HHS’s approach undermines the administration’s regulatory agenda.

• “Manufacturers share the administration’s goals of safeguarding Americans’ health and safety,” said NAM President and CEO Jay Timmons. “However, in light of this administration’s exceptional track record to drive a rebalanced regulatory agenda to strengthen manufacturing and benefit consumers, the commission’s strategy report is a shocking misstep.”

The risks: “Manufacturers are concerned that policies based on faulty information and misguided science could result in overly burdensome and ineffective regulatory proposals for manufacturers without making consumers safer,” Timmons continued.

• “If implemented, the strategy would harm manufacturers across the country and the consumers who benefit from an efficient, healthy and cost-effective supply chain.”
• “It also would add to the compliance burden that the administration has made so many great strides to unwind. Manufacturers in the U.S. shoulder nearly $350 million every year in compliance costs—capital that manufacturers would much rather invest in their facilities, their employees and their products—and this administration has been a key partner in alleviating that burden.”

Safety safeguarded: “Manufacturers throughout the chemical, pharmaceutical, and food and beverage supply chains prioritize Americans’ health and safety,” Timmons emphasized.

• “They comply with strict regulatory guidelines and lead with innovation to deliver safe and reliable products, ensure resilient and secure supply chains, safeguard health, preserve consumer choice and enhance accessibility and affordability.”

The bottom line: “Manufacturers are committed to working with the administration to ensure our industry can continue to deliver safe, innovative and affordable products to American families. But the strategy of the MAHA report will take America in the wrong direction.”

NAM in action: The NAM this week launched a new national ad showcasing the vital role that manufacturers throughout the food and beverage supply chain play in strengthening families, building communities and driving the nation forward—and, of course, providing safe and nutritious food.

The U.S. must streamline nuclear power licensing if it’s going to meet surging power demand, the American data center sector told the Nuclear Regulatory Commission recently (POLITICO Pro’s ENERGYWIRE, subscription).

What’s going on: “In a letter sent Aug. 28 to NRC Chair David Wright and shared exclusively with POLITICO, the Data Center Coalition (DCC)—which represents major data infrastructure operators—urged the agency to update its regulations to ensure quicker deployment of advanced nuclear reactors, including small modular reactors and microreactors.”

• The NRC should collaborate with the Energy Department and other federal agencies to amend regulatory requirements that will speed up reactor deployment, the DCC added, while recommending that the administration adopt simpler environmental assessments, leverage artificial intelligence in site evaluations and speed up licensing for standardized reactors.

The backdrop: In May, President Trump signed four nuclear energy-related executive orders.

• These gave the NRC deadlines for approving reactors, called for the NRC’s reorganization and gave the Energy and Defense departments greater say in commercial reactor licensing.
• The DCC’s letter arrives as the NRC implements provisions of the NAM-supported, bipartisan ADVANCE Act, which required streamlined nuclear licensing.

Why it’s important: There’s a pressing need for “diversified power sources” given the increasing global appetite for artificial intelligence and the accompanying fast growth of data centers.

• U.S. power demand is expected to rise 8% by 2029 following “years of stagnant growth.”
• Politically, there’s a push toward carbon-free baseload power, which makes nuclear an attractive option.

Yes, but … For the nuclear industry to take advantage of this opportunity, “the NRC must shift gears,” according to the DCC.

• This should include amending the NRC’s Part 53 draft rule—which “would create a new category of licensing for the kind of smaller reactors the power industry has been trying to get off the ground for decades”—to instead extend “risk-informed flexibility” into current licensing paths.

NAM in action: The NAM has been one of the foremost advocates of expanding the U.S. nuclear industry, advising policymakers that it should become a central source of energy in the AI age.

• “Nuclear energy is a safe, emissions-free component of America’s energy dominance strategy. It’s also essential for meeting additional energy needs that have arisen with the growth in data centers and the use of AI,” NAM Vice President of Domestic Policy Chris Phalen said recently.

The Trump administration announced that it will take a crucial step for simplifying the permitting process and unleashing new construction—including of data centers supporting the AI boom (Daily Caller).

• The NAM has led the manufacturing industry’s efforts to streamline permitting, working closely with the administration on dozens of key policy moves.

What’s going on: “The Environmental Protection Agency (EPA) announced its intent to revise the definition of ‘begin actual construction’ for New Source Review (NSR) preconstruction permitting so that companies can build or update non-emitting sections of power plants and industrial facilities before obtaining a Clean Air Act (CAA) construction permit.”

• “The shift would allow companies to get much-needed power on the grid sooner while still safeguarding the environment, several industry insiders told the Daily Caller News Foundation.”
• NAM President and CEO Jay Timmons told the DCNF, “[c]hampioning the needs of manufacturers, the EPA’s new guidance on New Source Review brings speed and certainty to a vital preconstruction permitting process.”

What they’re saying: “For years, Clean Air Act permitting has been an obstacle to innovation and growth,” EPA Administrator Lee Zeldin said Tuesday.

• “We are continuing to fix this broken system. Today’s guidance is another step to allow the build-out of essential power generation, data centers and manufacturing projects that will bring about America’s Golden Age.”

NAM advocacy:  In December , manufacturers laid out recommendations to the presidential transition team to speed up the nation’s permitting process, including reforms to NSR.

• In April, manufacturers reiterated the need to abandon the previous administration’s NSR proposal and instead adopt a practical, commonsense approach.

The NAM’s response: “ Today, the EPA is delivering by making the permitting process more prompt, clear and responsible—keeping air quality safe while cutting excessive red tape,” said NAM President and CEO Jay Timmons in a statement issued today.

• “By doing so, the EPA will fast-track construction of essential power generation, data centers and manufacturing facilities, and that means more jobs, investments and opportunities for manufacturers in the U.S. and the communities we serve.”
• “Delivering on what manufacturers have asked for, this guidance will drive infrastructure development by streamlining permitting reform for all energy sources so we can unleash American energy dominance.”
• In a win for manufacturers, Timmons continued, “[we] thank President Trump and EPA Administrator Lee Zeldin for their leadership to advance commonsense reforms that strengthen manufacturing in America, enhance our competitiveness and allow us to lead the world in innovation.”

On Friday night, President Trump issued an executive order that amends the list of products exempted from International Emergency Economic Powers Act reciprocal tariffs. In effect, this EO significantly changes the procedures for updates to IEEPA reciprocal tariffs and Section 232 tariffs. These changes went into effect on Monday.

Changes to April 2 EO: This EO amends Annex II of the April 2 IEEPA reciprocal tariff EO. It contained a list of Harmonized Tariff Schedule codes that are exempt from IEEPA reciprocal tariffs but contained many items likely to become subject to Section 232 tariffs as they were part of the scope of pending investigations.

• Exemptions added: Forty HTS codes have been added to Annex II, exempting them from the IEEPA reciprocal tariffs. They include certain critical minerals such as nickel, tin and thorium ores, chemicals, permanent magnets and LEDs.
• Exemptions taken away: Eight HTS codes have been removed from Annex II, making them newly subject to the IEEPA reciprocal tariffs. They include certain aluminum hydroxide, crystals, resins, PET and silicones.

Zero-for-zero: The NAM has long advocated for the administration to negotiate new market access for U.S. industrial exports on a reciprocal basis.

• Friday’s EO establishes a new “Potential Tariff Adjustments for Aligned Partners” Annex.
• The PTAAP Annex lists products for which the president “may be willing to provide a zero percent reciprocal tariff” to countries that have concluded final “Framework Agreements” with the United States.

Potential reductions: While the EO does not implement tariff reductions, it does provide guidelines for eligibility.

• Products eligible for tariff reductions include those that cannot be grown, mined or naturally produced in the United States or grown, mined or naturally produced in sufficient quantities in the United States to satisfy domestic demand.
• Also eligible are certain agricultural products, aircraft and aircraft parts and non-patented articles for use in pharmaceutical applications.

Getting to zero: The president stipulates that “except in rare circumstances” trading partners won’t get a zero tariff or a 232 tariff preference “before the conclusion of a final trade and security agreement (‘final agreement’) with the U.S.”

• However, the EO goes on to refer to the EU Framework Agreement as sufficient to modify U.S. tariffs.
• The EO states that “the imports that might receive a reciprocal tariff rate of zero percent may be different for each final agreement between a foreign trading partner and the United States.”
• Importantly, the zero-duty treatment can apply to both IEEPA reciprocal tariffs and to Section 232 national security tariffs.​​​​​​​

Washington, D.C. — Following the release of the Make America Healthy Again (MAHA) Commission’s strategy report, National Association of Manufacturers President and CEO Jay Timmons issued the following statement:

“Manufacturers share the administration’s goals of safeguarding Americans’ health and safety. However, in light of this administration’s exceptional track record to drive a rebalanced regulatory agenda to strengthen manufacturing and benefit consumers, the Commission’s strategy report is a shocking misstep.

“Manufacturers are concerned that policies based on faulty information and misguided science could result in overly burdensome and ineffective regulatory proposals for manufacturers without making consumers safer. If implemented, the strategy would harm manufacturers across the country and the consumers who benefit from an efficient, healthy and cost-effective supply chain. It also would add to the compliance burden that the administration has made so many great strides to unwind. Manufacturers in the U.S. shoulder nearly $350 million every year in compliance costs—capital that manufacturers would much rather invest in their facilities, their employees, their products, and this administration has been a key partner in alleviating that burden.

“Manufacturers throughout the chemical, pharmaceutical, and food and beverage supply chains prioritize Americans’ health and safety. They comply with strict regulatory guidelines and lead with innovation to deliver safe and reliable products, ensure resilient and secure supply chains, safeguard health, preserve consumer choice, and enhance accessibility and affordability.

“Manufacturers are committed to working with the administration to ensure our industry can continue to deliver safe, innovative and affordable products to American families. But the strategy of the MAHA report will take America in the wrong direction.”

Background:

The National Association of Manufacturers this week launched a new national ad showcasing the vital role that manufacturers throughout the food and beverage supply chain play in strengthening families, building communities, and driving the nation forward. The ad highlights the people and innovation behind America’s food supply chain—from farms and shop floors to grocery stores, kitchen tables, restaurants and beyond—reminding policymakers and the public of the industry’s essential contribution to safe, healthy, nutritious and affordable food for every American family.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Following the Environmental Protection Agency’s release of new guidance on New Source Review preconstruction permitting requirements, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Today, the EPA is delivering by making the permitting process more prompt, clear and responsible—keeping air quality safe while cutting excessive red tape. By doing so, the EPA will fast-track construction of essential power generation, data centers and manufacturing facilities, and that means more jobs, investments and opportunities for manufacturers in the U.S. and the communities we serve.

“Championing the needs of manufacturers, the EPA’s new guidance on New Source Review brings speed and certainty to a vital preconstruction permitting process, among the earliest steps taken by manufacturers in planning new projects. Delivering on what manufacturers have asked for, this guidance will drive infrastructure development by streamlining permitting reform for all energy sources so we can unleash American energy dominance.

“Permitting reform is a key pillar of the NAM’s comprehensive manufacturing strategy. We thank President Trump and EPA Administrator Lee Zeldin for their leadership to advance commonsense reforms that strengthen manufacturing in America, enhance our competitiveness and allow us to lead the world in innovation.”

Background

In December, manufacturers made a series of recommendations to the presidential transition team to speed up the nation’s permitting process, including reforms to NSR. In April, manufacturers reiterated the need to abandon the previous administration’s NSR proposal and to take a commonsense approach to the NSR preconstruction permitting process.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

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Washington, D.C. — The National Association of Manufacturers today announced the addition of Jake Kuhns as a vice president of domestic policy at the association. Kuhns, a public policy professional with more than two decades of experience in federal government relations—including shaping policy for Cargill’s food business—will lead the NAM’s work on food and beverage policy, tax, corporate finance, health care, artificial intelligence and technology and immigration.

“Jake brings a wealth of relevant knowledge and experience from his more than 20 years working at the intersection of policy, politics and business, including his work on food and beverage issues that are vital to manufacturers nationwide,” said NAM President and CEO Jay Timmons. “This is a pivotal time for manufacturers as our industry navigates a shifting policy landscape. The landmark tax bill signed into law on July 4 will stimulate investment across manufacturing, but these investments will require a comprehensive manufacturing strategy that builds on our tax win in order to achieve the law’s full pro-growth potential.”

For more than 13 years, Kuhns served as director of federal government relations for Cargill, one of the world’s largest manufacturers of food, beverage and agricultural products. In that role, he led advocacy efforts on food and beverage issues, antitrust and competition, labor and immigration, transportation and tax. He regularly advised Cargill’s senior leadership on the policy and political landscape, managed the company’s political action committee and represented the corporation before Congress, the administration and key federal agencies. His previous experience includes serving as a senior legislative aide to Rep. Tim Holden (D-PA), as well as both association and campaign work.

Timmons added, “Jake is a veteran of our sector and understands the needs of manufacturers. Under his leadership, the NAM will continue to work with Congress and the administration to protect and implement H.R. 1, seize the opportunities presented by artificial intelligence, address the rising costs of health care, support capital formation and good corporate governance, modernize and rebalance federal regulations and ensure that innovators across manufacturing—including biopharmaceutical manufacturers and companies throughout the food and beverage supply chain—can continue to innovate, grow and thrive here in America.

“As manufacturers look to build on recent policy wins and usher in generational change for the sector, we are excited to add Jake to our best-in-class policy team.”

With the recent passage of H.R. 1, Kuhns’ immediate attention will turn to the implementation of the tax package and advancing a comprehensive domestic manufacturing agenda that drives growth, competitiveness and innovation.

Kuhns joins the NAM’s powerhouse external affairs team under the leadership of Executive Vice President Erin Streeter, who oversees the association’s advocacy, policy, government relations and communications efforts. He will report to Managing Vice President Charles Crain, head of the NAM’s policy shop propelling the manufacturing agenda forward, and will work alongside Vice President of International Policy Andrea Durkin, Vice President of Domestic Policy Chris Phalen and Chief Economist Victoria Bloom.

Kuhns is the latest in a wave of 2025 hires across the NAM’s external affairs division, including Senior Director of Tax Policy Connor Rabb, Senior Director of Corporate Finance Policy Ted Allen, Director of Government Relations Sydney Fincher, Director of Health Care Policy Jess Wysocky, Director of Chemicals, Materials and Sustainability Policy Reagan Giesenschlag, Director of International Policy Kevin Doyle, Vice President of Communications and Public Affairs Alexa Lopez, and Director of Strategic Communications Christine Ravold. In addition to adding new talent to the NAM’s team, veteran NAM staff members Jennifer Littlepage and Joseph Murphy have been elevated to vice president of human resources and director of strategic communications, respectively.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

​​​​​​The Trump administration has announced new funding for critical minerals projects in the U.S., seeking to award nearly $1 billion to key projects (Politico).

• In announcing the new funding, Energy Secretary Chris Wright “cited a March executive order that tapped a range of agencies for efforts to boost minerals production in announcing the award plans.”

How it works: The funding comes in part from the Bipartisan Infrastructure Act, one of manufacturers’ and the NAM’s many policy victories over the past five years.

• “The largest pot of funding, up to $500 million, comes from the Battery Materials Processing and Battery Manufacturing and Recycling grant program, which was established by the bipartisan infrastructure law,” according to Politico.
• “DOE said Wednesday its Office of Fossil Energy and Carbon Management also plans to award up to $250 million under the Energy Act of 2020 and the infrastructure law for industrial facilities to pilot initiatives to produce critical minerals as byproducts from their existing processes.”

Rare earths: Also notable is the $135 million in funding that the Office of Manufacturing and Energy Supply Chains will award to rare earths demonstration projects.

Concerted efforts: The NAM has urged President Trump to support critical minerals projects since his election, and the administration has been swift to act.

• As NAM President and CEO Jay Timmons said in response to the March EO, “For too long, red tape and burdensome regulations have stood in the way of the basic building blocks that power manufacturing in the United States, especially mining and processing the minerals manufacturers rely on to create jobs and dominate on the world stage.”
• “The administration is addressing those barriers, making it easier for manufacturers to access the resources we need to build the future in America.”