Washington Report (April 2025)

Tariffs

On April 2, President Trump announced a slate of new tariffs to be imposed on countries throughout the world that sell into the U.S. market. The initial announcement imposed a 10 percent tariff on all countries beginning April 5. In addition, individualized “reciprocal” tariffs on countries with which the United States has the largest trade deficits would be imposed April 9.  In a welcome development on the day reciprocal tariffs would take effect, the President announced a pause and reduction of the reciprocal tariffs his administration has levied against more than 75 countries. However, he doubled down against China, raising tariffs to 145 percent, which are now in effect. China immediately announced retaliatory tariffs of 125 percent on U.S. imports.

The pause will last 90 days and the tariff rate during that period for targeted countries is 10 percent.

Wood and Wood Energy Grants

Rep. Marie Gluesenkamp Perez (D-WA) reintroduced the Community Wood Facilities Assistance Act in April. The legislation (H.R. 2517), among other things, would double the authorization for the Community Wood grant program from $25 to $50 million annually. This program funds  grants for biomass heating and power projects across the country as well as funding for innovative wood product manufacturing facilities. Rep. Gluesenkamp Perez is joined by Rep. Chellie Pingree (D-ME) and Rep. Dan Newhouse (R-WA) as cosponsors. This measure serves as a marker bill for potential inclusion in a Farm Bill reauthorization measure which will hopefully come together later this year. The press release with more details on the legislation can be found here. 

Jobs in the Woods Act

Senators Angus King (I-ME) and Jim Risch (R-ID) have introduced the bipartisan Jobs in the Woods Act (S.1336), which seeks to address workforce challenges in the forestry and forest products manufacturing sector. This legislation directs the U.S. Department of Agriculture (USDA) to create a competitive grant program to stand up career pathway training programs in forestry operations, lumber and sawmilling It is modeled after a successful program developed by the University of Wisconsin-Stevens Point. Eligible entities encompass nonprofit organizations, state governments, Indian tribes, local government units, and higher education institutions. The USDA is directed to prioritize applicants that focus on tackling workforce aging and youth migration issues, collaborating with secondary schools to engage students, and demonstrating effective workforce placement and hiring strategies in the forest products sector. Senators King and Risch are joined by original cosponsors, including Senators Mike Crapo, Susan Collins, Amy Klobuchar, Jeff Merkley, Jeanne Shaheen, and Tina Smith. Notably, provisions of the Jobs in the Woods Act were incorporated into the House version of the Farm Bill last Congress. A press release on the bill may be found here. 

The co-chairs of the bipartisan House Career and Technical Education (CTE) Caucus, Reps. Glenn “GT” Thompson (R-PA) and Suzanne Bonamici (D-OR), are circulating a “Dear Colleague” letter addressed to the House Labor, Health and Human Services and Education Appropriations Subcommittee. The letter requests increased funding for Perkins state grants in the FY 2026 Labor, Health and Human Services, and Education appropriations bill. The letter notes that “The Perkins Act is the primary source of federal funding for state and local CTE programs. In every Congressional district, CTE programs play a vital role in providing learners and workers pathways that lead to high-wage, high-skill, and in-demand career fields, including sectors of our economy that are currently experiencing critical workforce shortages such as the information technology, healthcare, and the skilled trades fields.”

The FY 2026 Congressional appropriations process is in its nascent stages, but WIA will be working with our Congressional champions on securing needed funding for CTE.

Transportation

Rep. Mike Collins (R-GA) will soon reintroduce his FRESH Act or Freight Restriction Elimination for Safer Hauling Act of 2025. The bill is a close cousin to the Safe Routes Act and would simply allow trucks hauling “perishable commodities” to access the interstate highway system at weights in excess of 80,000 pounds. Many states allow heavier rigs to travel on their state roads, but these rigs are forbidden from accessing the interstate due to the 80,000-pound maximum gross vehicle weight limit. The term eligible commodity list in the bill includes raw logs and forest products, pulp wood, chips and biomass. The Safe Routes Act (H.R. 2166), sponsored by Rep. Tony Wied (R-WI), takes the same approach but applies only to logging trucks.

Both Collins and Wied are members of the House Transportation and Infrastructure Committee which will be writing the next highway bill that is up for reauthorization next year.

Tax/Budget Reconciliation

Just before leaving Washington for a two-week Easter recess last Thursday, the House approved a compromise budget resolution which begins the process (budget reconciliation) to restore and extend key business tax incentives critical to WIA members. Budget reconciliation is a parliamentary procedure that allows enactment of legislation with a simple majority vote in the Senate instead of the customary 60 vote threshold. A comprehensive budget reconciliation bill will be the vehicle for the Republican majority to revive and extend key business tax benefits that have been phasing out or have outright expired. These benefits include 100 percent bonus depreciation which allows manufacturers to write off the full costs of investments in machinery and equipment in the same year those costs are incurred. This benefit was reduced by 20 percent in 2023, 2024 and again in 2025. It is slated to fully phase out in 2027 unless extended. Also to be included is the Research and Development tax credit which expired in 2022 and restoring more favorable interest deductibility for companies (EBIT to EBITDA). Finally, the bill will extend the Section 199A tax benefit for S-Corporations and other pass-through structures which is scheduled to expire at the end of this year.  WIA has been meeting with key lawmakers in both the House and Senate for over a year advocating for restoring and extending these critical benefits.