President Trump addressed a joint session of Congress last night (Tuesday, February 24) for the State of the Union Address, on the heels of the February 20 Supreme Court ruling that the International Emergency Economic Powers Act (IEEPA) does not provide authority to impose tariffs. There was a focus on economic issues, which are figuring prominently in this year's midterm elections, but without many new details on actions the Administration is taking or proposals to be considered in Congress.

On tax issues, President Trump celebrated provisions of last year's reconciliation bill, noting that Democrats were opposed. "But we held strong and with the great Big, Beautiful Bill, we gave you no tax on tips, no tax on overtime, and no tax on Social Security for our great seniors," he said. "And we also made interest on auto loans, tax deductible the first time, but only if the car is made in America."

President Trump cited the Trump Accounts established under the "One Big Beautiful Bill Act," which are tax-free investment accounts for every American child. "Millions will be pre-funded courtesy of the U.S. Treasury and private individuals … " he said. Additionally, the President called for, beginning next year, "access to the same type of retirement plan offered to every federal worker" with annual $1,000 matching contributions for individuals who do not have access to a retirement plan.

On entitlement programs, the President said, "Under this administration, we will always protect Social Security and Medicare."

Trade — On tariffs, President Trump said, "So despite the disappointing ruling, these powerful, country-saving — it's saving our country the kind of money we're taking in, peace-protecting, many of the wars I've settled was because of the threat of tariffs, I wouldn't have been able to settle them without, will remain in place under fully approved and tested alternative legal statutes. And they have been tested for a long time. They're a little more complex, but they're actually probably better, leading to a solution that will be even stronger than before."

Last week, President Trump issued a Proclamation detailing a temporary import surcharge of 10% ad valorem on articles imported into the United States, effective February 24, under Section 122 for a period of 150 days (until July 24, 2026). He later said he would raise the rate to 15%. House Speaker Mike Johnson (R-LA) February 23 said it would be "a challenge to find consensus" on codifying the tariffs through legislation in the 218-214 House.

The SCOTUS tariff decision is refocusing attention on the possibility of a second reconciliation bill. Senator Bernie Moreno (R-OH) is pushing for legislation to codify President Trump's tariffs. "I'm hopeful that my colleagues, we can get to work on creating a reconciliation bill that does other things … but in that same bill would have a major pay-for, which would be to put these tariffs into legislation," Moreno said in a February 24 Punchbowl News report that noted that Republicans seeking to use reconciliation for health care will have a difficult time denying those who want to attach tariffs.

Congress — The House is set to vote today on the Homeowner Energy Freedom Act (H.R. 4758), an Energy and Commerce Committee bill to repeal Inflation Reduction Act provisions relating to taxpayer subsidies for home electrification. House Democrats are holding a retreat in Leesburg, VA, beginning later today. The Senate is in session today, with a vote on a National Transportation Safety Board member nomination at 11:45 a.m. Efforts continue toward reaching an agreement to fund the Department of Homeland Security.