Congressional Races End with New Representatives in City
The Republican majority in Congress passed a $4 trillion tax reform bill in 2025 that extended many 2017 corporate provisions and added new incentives for businesses. The package included benefits for technology firms, private‑equity groups, oil and gas producers, and defense contractors, as well as a light‑touch regulatory framework for stablecoins. Several sectors also saw provisions that limited or eliminated tax breaks, affecting hospitals, insurers, green‑energy companies, banking institutions, casinos, airlines, and importers.
Nvidia successfully opposed congressional proposals that would have required the company to sell more chips to China first, and the Trump administration later relaxed export controls to allow the firm to continue supplying advanced electronics to the overseas market. Private‑equity firms secured the preservation of a preferential carried‑interest tax rate and gained an expanded interest‑expensing deduction. Oil and gas companies received a tax credit that lets them deduct certain drilling expenses from alternative‑minimum‑tax calculations, while the defense sector won $150 billion in new spending and an $8 billion increase in a recent policy bill.
In contrast, rural hospitals face a $50 billion bailout that does not compensate for Medicaid reductions, and health‑insurance carriers may lose millions of policyholders when enhanced Obamacare credits expire. Renewable‑energy firms lost key incentives for solar and wind projects, and the $7,500 electric‑vehicle tax credit was eliminated. A new stablecoin law threatens the payment‑processing dominance of U.S. banks, even as congressional allies blocked legislation that would have increased competition for credit‑card fees.
Casino operators contend with a revised tax rule that limits deductible losses for gamblers, and airlines report substantial revenue loss from the longest U.S. government shutdown. Importers of consumer goods continue to bear the burden of Trump‑era tariffs, with no significant legislative relief forthcoming.
Senator John Thune, a Republican leadership figure, led a campaign to repeal the estate tax, which failed, thereby preserving complex loopholes used by wealthy clients. The Trump administration issued an executive order to preempt state regulations on artificial‑intelligence products, a measure subject to upcoming legal challenges. The Senate confirmed Health and Human Services Secretary Robert Kennedy Jr., a position that introduces a new stakeholder in drug‑price discussions.