Take a Look at Recent Federal Updates

The first half of February have seen some significant developments out of the federal government. Here is a summary of key developments from the executive branch. 

White House:

US-Indian Trade Interim Trade Agreement:

The United States of America (United States) and India announced that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement). Key terms of the Interim Agreement between the United States and India will include:

• The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended, on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery, and, subject to the successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements), as amended, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
  
• The United States will also remove tariffs on certain aircraft and aircraft parts of India imposed to eliminate threats to national security found in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), as amended; and Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States). Similarly, consistent with U.S. national security requirements, India will receive a preferential tariff rate quota for automotive parts subject to the tariff imposed to eliminate threats to national security found in Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended. Contingent on the findings of the U.S. Section 232 investigation of pharmaceuticals and pharmaceutical ingredients, India will receive negotiated outcomes with respect to generic pharmaceuticals and ingredients.
  
• The United States and India will address non-tariff barriers that affect bilateral trade. India agrees to address long-standing barriers to the trade in U.S. medical devices; eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on, U.S. Information and Communication Technology (ICT) goods; and determine, with a view towards a positive outcome, within six months of entry into force of the Agreement whether U.S.-developed or international standards, including testing requirements, are acceptable for the purposes of U.S. exports entering the Indian market in identified sectors.
  

Department of Labor:

USDOL Issues AI Literacy Framework Guide

The framework, which outlines five foundational content areas and seven delivery principles for AI literacy, is intended to guide program design and the deployment of AI literacy efforts while allowing flexibility and adaptation across industries, roles, educational sectors, and other workforce contexts.

The release of the framework follows the department’s recent guidance promoting the use of Workforce Innovation and Opportunity Act funding and the governor’s reserve monies to help participants develop AI skills. The framework reflects input from employers, training providers, state and local agencies, and other workforce and education stakeholders, and will continue to evolve based on stakeholder input, advances in AI capabilities, and labor market changes. It supports the department’s role in implementing the AI Action Plan and America’s Talent Strategy.

The TEGL urges states and local workforce development boards to leverage WIOA Title I funding streams—specifically those for youth, adult, and dislocated workers—to expand access to AI literacy and skill development. In the context of youth programs, the guidance notes that AI education can be integrated into multiple required program elements under WIOA Section 129(c)(2), including activities that support preparation for postsecondary education, labor market information services, and occupational skills training. For adult and dislocated worker programs, TEGL 03-25 outlines how short-term pre-vocational services and individualized career services may include components that support digital literacy and AI skill-building. The advisory recognizes the evolving nature of quality AI training programs and encourages local boards to consider innovative partnerships and contractual arrangements with institutions of higher education or other eligible training providers where such programs are not yet listed on the Eligible Training Provider List. Additionally, the TEGL notes that states may use up to 15% of their WIOA Title I allocations under the Governor’s Reserve to carry out demonstration projects and statewide workforce activities, including AI skills development initiatives.

TEGL 03-25 conveys DOL’s policy priority that workforce development systems proactively address the skills demands created by AI adoption. It emphasizes foundational AI literacy competencies, including understanding AI concepts, effectively prompting AI tools, evaluating AI outputs, and engaging in responsible and secure use of AI technologies. The advisory also encourages the incorporation of adult and youth work experience opportunities in occupations that involve AI or use AI tools, thereby enhancing experiential learning aligned with industry expectations. The ETA further points to federal resources, such as the DOL Competency Model Clearinghouse, and external initiatives, such as the White House Task Force on AI Education, to support contextualized learning and bolster capacity to deliver AI literacy instruction.

Department of Energy:

Energy Department Launches Genesis Mission Consortium to Accelerate AI-Driven Scientific Discovery:

Department of Energy (DOE) today announced the launch of the Genesis Mission Consortium, advancing the Department’s Genesis Mission to harness the power of artificial intelligence (AI) to accelerate scientific discovery, strengthen national security, and ensure America leads in energy and emerging technologies.

The consortium will help identify high-value partnerships among its members and external stakeholders, strengthening collaborative responses to funding opportunities. It will amplify DOE’s outreach by promoting solicitations, executing agreements, and tracking project successes. Functioning as a collaborative hub, the consortium will serve as a single, coordinated access point for members and their resources.

To advance technical priorities, the consortium will facilitate member-driven working groups focused on AI model development and validation, data integration and standards, high-performance computing and cloud infrastructure, and robotics and automation. These working groups will provide an efficient mechanism for engaging industry and academic organizations in co-creation efforts.

The Genesis Mission Consortium will also host regular events, including annual member meetings, workshops, and technology showcases, providing members with high-impact networking and collaboration opportunities.

The consortium will be administered by TechWerx, a DOE partnership intermediary operated by RTI International. For more information on the Genesis Mission Consortium and how to get involved, visit www.genesismissionconsortium.org.

Treasury Department:

THE IRS issued proposed regulations on the clean fuel production credit under the One, Big, Beautiful Bill:

The proposed regulations issued by the Department of the Treasury and the Internal Revenue Service on February 4, 2026, implement Section 45Z of the Internal Revenue Code, establishing the Clean Fuel Production Credit as enacted under the Inflation Reduction Act and subsequently amended. The rulemaking sets forth the operative framework governing eligibility, emissions calculation methodology, registration requirements, anti-stacking limitations, and substantiation standards applicable to domestic producers of transportation fuels with lifecycle greenhouse gas emissions not exceeding the statutory threshold of 50 kilograms of CO2 equivalent per mmBTU.

From a construction and building trades perspective, particularly within the unionized sheet metal and HVAC sector represented by SMACNA contractors, the most consequential component of Section 45Z is the statutory linkage between the enhanced credit value and compliance with prevailing wage and registered apprenticeship requirements. The statute provides a materially reduced base credit for facilities that fail to satisfy these labor standards, while affording a fivefold increase in credit value where construction, alteration, or repair of the facility meets the prevailing wage and apprenticeship mandates. As such, labor compliance is not ancillary but determinative of the financial feasibility of qualifying projects.

The proposed rule further requires producers to be properly registered under Internal Revenue Code Section 4101 prior to claiming the credit and to maintain contemporaneous documentation substantiating production volumes, lifecycle emissions determinations using the prescribed federal model, and proof of qualifying sales to unrelated parties. The exclusion of indirect land-use change emissions from post-2025 lifecycle calculations materially affects agricultural and biofuel pathways and may influence capital allocation decisions for facility design and feedstock sourcing.

The regulation also codifies anti-stacking provisions that prohibit simultaneous claims under Sections 45V, 45Q, or certain investment credits for the same production facility. This limitation is significant for project structuring and financing, as developers must elect the most advantageous federal incentive regime. For union mechanical and sheet metal contractors, the compliance architecture underscores the need to integrate Davis-Bacon-aligned wage determinations and bona fide registered apprenticeship utilization at the outset of project development to secure enhanced credit eligibility for owners.

Environmental Protection Agency:

EPA Administrator Zeldin Announces 2009 Greenhouse Gas Endangerment Finding Study:

The Environmental Protection Agency has finalized a rule rescinding the 2009 greenhouse gas endangerment finding, which had determined that greenhouse gas emissions endanger public health and welfare under the Clean Air Act. That finding served as the legal predicate for federal regulation of greenhouse gas emissions from motor vehicles and other major sources. The agency, under Administrator Lee Zeldin and pursuant to direction from Donald Trump, characterizes the repeal as a correction of prior statutory interpretation and an effort to limit regulatory overreach. The action also eliminates associated federal vehicle greenhouse gas standards and related compliance mechanisms adopted in reliance on the endangerment determination.

The repeal implicates the Supreme Court’s holding in Massachusetts v. EPA, which recognized greenhouse gases as air pollutants subject to regulation upon a valid endangerment finding. By withdrawing that predicate determination, the agency effectively removes the central legal basis for most federal climate regulations promulgated since 2009. The rule is expected to face immediate judicial challenges on administrative law grounds, including arguments that the agency’s reversal is arbitrary and capricious or inconsistent with statutory obligations.