USCIS restricts green card processing, Congress votes to limit corporate home buying, and more…
IN THE NEWS:
The U.S. Citizenship and Immigration Services announced a new immigration policy that requires many immigrants seeking green cards to leave the United States and apply for permanent residency through U.S. consulates abroad. The policy restricts the longstanding “adjustment of status” process, which has allowed eligible immigrants already living in the United States to obtain green cards without departing the country. U.S. Citizenship and Immigration Services stated that adjustment of status is an “extraordinary” form of discretionary relief. The Trump Administration argued that the policy would discourage immigrants from using temporary visas as a pathway to permanent residency. Critics of the policy warned that it could separate families, disrupt industries dependent on foreign workers, and leave some applicants stranded abroad because of existing travel bans and visa processing delays.
The Centers for Disease Control and Prevention (CDC) issued a final rule expanding its authority to suspend the entry of individuals from designated countries during outbreaks of certain diseases that can spread from human contact, including lawful permanent residents who were previously exempt from suspension orders. The rule, issued in response to the ongoing Ebola outbreak in West Africa, would allow the Secretary of Health and Human Services, acting through the CDC, to restrict the entry of individuals from designated countries when officials determine that international travel poses a serious public health risk. The CDC explained that the rule responds to concerns that individuals infected with Ebola could enter the United States before showing symptoms because the virus may not cause symptoms for up to 21 days. The CDC also argued that limiting entry could reduce pressure on public health systems responsible for screening and monitoring travelers for Ebola exposure.
New York enacted statewide regulations requiring 3D printers sold in the state to include safeguards against printing firearms. The legislation criminalizes the unauthorized sale or distribution of 3D printing blueprints for firearms. These laws make New York the first state to regulate 3D printer sales to prevent a phenomenon known as the “plastic pipeline,” which enables the assembly of unlicensed firearms. The budget legislation containing these measures expands victim services and improvements to investigatory infrastructure. The bill also bans intentional interference with people seeking to enter a place of worship and devotes additional funding to combating subway crimes.
The Illinois legislature passed an artificial intelligence (AI) bill aimed at increasing transparency and consumer protections around AI technologies. The Artificial Intelligence Safety Measures Act requires large AI developers to disclose information about catastrophic safety risks and implement oversight measures for powerful AI models. Unlike similar legislation in California and New York, the bill would mandate an annual independent third-party audit of the models. Supporters of the bill argued that stronger state regulation was necessary because of the lack of a federal technology standard and the unchecked risks of AI technologies to public safety and mental health. The bill was included in part of a broader package of AI proposals in Illinois addressing chatbot safety and the use of AI in schools and employment. Governor JB Pritzker stated he plans to sign the bill to hold big tech companies accountable.
Bipartisan majorities in both chambers of Congress voted in favor of legislation that would limit large institutional investors from purchasing additional single-family homes, reflecting a growing concern about Wall Street’s role in the housing market. Supporters of the proposal argued that the measure could expand some opportunities for individual homebuyers in markets with high concentrations of investor-owned properties and reduce aggressive rent increases associated with some corporate landlords. Housing experts cautioned, however, that the legislation is unlikely to make substantial improvements in affordability nationwide because institutional investors own only a small share of single-family homes overall. The House and Senate approved different versions of the proposal, so lawmakers must agree on a final bill before sending it to President Donald J. Trump.
The Federal Energy Regulatory Commission proposed a rule that would allow the construction of more interstate natural gas pipelines. The proposed rule would increase the permissible size of interstate natural gas pipelines authorized by blanket certificates, meaning fewer natural gas projects would need case-by-case approval. The proposed amendments would double the maximum development timeline for projects receiving blanket certificates to two years, allowing developers to obtain blanket certificates for natural gas projects that would not provide services for up to two years after the permitting process concludes. The rule would ease regulatory burdens on natural gas project developers in part by raising the cost limit for automatic authorization from $14.5 million to $30 million. Providing more opportunities for automatic authorization would allow pipeline developers to avoid the extensive oversight the Natural Gas Act prescribes. According to the American Public Gas Association, reduced oversight could, however, shift costs to captive rate payers.
The Securities and Exchange Commission (SEC) proposed expanding filing accommodations for startups and emerging companies. The proposed amendments would allow more companies to avoid filing regulations that large accelerated filers face. The SEC proposed changes that would ease the regulatory burdens on non-accelerated filers with the fewest assets. If the SEC adopts these amendments, filing statuses would consolidate from five overlapping categories into two: accelerated filers and non-accelerated filers. The changes would create more opportunities for public companies to avoid stringent reporting requirements.
The U.S. Department of Justice launched a criminal investigation into writer E. Jean Carroll, who previously sued President Trump for sexual assault and defamation. The investigation centers on whether Carroll committed perjury in a 2022 deposition where she stated she had not received outside financial support for her lawsuits against President Trump. Prosecutors are examining later claims that billionaire Reid Hoffman helped cover some of Carroll’s legal expenses through a nonprofit organization. Critics argue that the probe is part of a broader effort by the Trump Administration to target political opponents. Acting Attorney General Todd Blanche recused himself from the matter because he previously represented President Trump in Carroll’s civil litigation.
WHAT WE’RE READING:
A report by the U.S. Government Accountability Office (GAO) examined the development of electric aircraft and the challenges of integrating electric aviation into the national aviation system. GAO explained that manufacturers are developing fully electric and hybrid electric aircraft for uses including air taxis, cargo transportation, and pilot training. GAO also found that the Federal Aviation Administration currently evaluates electric aircraft designs on a case by case basis while considering long-term regulatory changes that could standardize certification requirements. GAO noted that airports face challenges preparing infrastructure for electric aircraft, including high costs, uncertain future demand, and limited access to reliable electricity.
In a recent Center for American Progress (CAP) report, Trevor Higgins, the senior vice president for CAP’s Energy and Environment Department, Shannon Baker-Branstetter, the senior director for CAP’s Climate and Energy Team, and Michael Negron, a senior fellow in CAP’s Economic Policy Team, examined the causes of rising electricity prices and proposed a federal strategy to lower energy costs for American households. Higgins, Baker-Branstetter, and Negron argued that electricity prices are increasing because of aging grid infrastructure, climate-related disasters, and rapidly growing electricity demand from artificial intelligence data centers. They contended that recent federal policies blocking clean energy development and repealing investment incentives would further increase electricity costs by slowing the construction of new power generation and grid infrastructure. Higgins, Baker-Branstetter, and Negron proposed an electricity affordability plan centered around three components: a federal rate relief fund to assist states with electricity pricing, a nationwide policy requiring AI data centers to pay electricity costs based on the amount of electricity used by the data center, and expanded grid infrastructure investment.
In a recent National Bureau of Economic Research working paper, Koichiro Ito of the University of Chicago, James M. Sallee of the University of California, Berkeley, and Andrew Smith of the University of Wisconsin–Madison evaluated how environmental policies can affect markets beyond the jurisdictions they regulate. Ito, Sallee, and Smith assessed how changes in Japanese fuel economy standards led to increased fuel economy in the United States. They identified that these changes resulted from global firms’ compliance efforts across jurisdictions. They found that these “spillover effects” arise when manufacturers find it more efficient to standardize production than to create product lines tailored to distinct regulatory regimes. Ito, Sallee, and Smith labeled this dynamic “attribute propagation,” and they argued that researchers should include analyses of these secondary effects when assessing the global impact of regulatory policies.
EDITOR’S CHOICE:
In an essay in The Regulatory Review, Kenneth W. Costello, a regulatory economist and independent consultant, argued that technological innovation will determine the long-term success of electrification, not government subsidies or mandates. “Electrification” is the process of shifting energy use from fossil fuels and natural gas to electricity. Costello contended that electrification advocates often overlook the economic drawbacks of rapidly accelerating electrification, including high upfront household costs, infrastructure demands for electric vehicles, and inefficiencies created by government subsidies. Costello concluded that policymakers should rely more heavily on market forces and individual consumer decisions when shaping electrification policy.
