Latest news with #SenateFinanceCommittee
Yahoo
39 minutes ago
- Business
- Yahoo
Jay Peak GM Calls Impact of Canadian Tariffs "Catastrophic"
Earlier this week, the United States Senate convened a forum amongst the Senate Financial Committee, and others, on the impacts of tariffs and the current administration's trade war on business, manufacturing, farming, and the tourism industry. Vermont Senator Peter Welch, who is a member of the Senate Finance Committee welcomed General Manager Steve Wright of Vermont's Jay Peak to the forum to speak on the economic impacts and cultural harm as a result of the administration's new policies. Wright's opening statement provided a stark look into how the ski area and its local economy, which sits just south of the Canadian border, has already seen dramatic impacts of the tariffs imposed by the administration. Wright cited that the ski area itself is a $70M business that's been around for 60 years, and was once even owned by a Canadian company. The towns that are closest to the ski area, Newport and Jay, are home to less than 5,000 and 550 full-time residents respectively. On any given busy day at the ski resort, the population of Jay, VT can increase to more than 10,000 people, 50% of whom are Canadian visitors traveling from towns like Toronto, Montreal, and several of the eastern townships. Due to both a close proximity and relationship with the neighboring country, Wright noted policies that had been put in place many years prior at the resort that allowed Canadians to use the Canadian dollar on products like lift tickets, entry to the water park, for golf rounds. Depending on the current status of the dollar and Canadian dollar, that's meant that a discount of around 20-35% at any given time. "Our french fries come with American gravy and Canadian cheese curds and the resort consumes equal parts Budweiser and Molson," said Wright, in a lighthearted emphasis of his to watch the full speech below. Keep reading for to keep up with the best stories and photos in skiing? Subscribe to the new Powder To The People newsletter for weekly updates. Wright continued by saying that Jay Peak and the state of Vermont are forecasting a 'potentially catastrophic amount of trouble' as it pertained to Canadians citizens unwillingness to visit the state for the 'indeterminate future.' He also touched on the increased costs of bringing in necessary operating equipment for the resort as a result of the tariffs. Located within Vermont's Northeast Kingdom, Jay Peak is the state's chief supplier of state and local taxes as well as more than 1,500 employment opportunities for Vermont's workforce, not to mention the most snow in eastern North America over the past winter, stated Wright. Despite these metrics, the ski area has already seen a massive decrease in Canadian visitorship. The 2026 fiscal year season pass sales has already seen a reduction of 35% by Canadian passholders. Wright recalled personally calling more than 150 Canadian households over the past two weeks. "They cite the Presidential Administration's flagrant disrespect of Canadian independence and not only a challenge to Canadian sovereignty but their own identity and they feel the need to respond," said Wright, summarizing the common sentiments of these phone calls. One family told him they were not sure when they'd return to Jay Peak, if ever. Beyond just Jay Peak, the 50,000 yearly Canadian visitors inject $150M into Vermont's economy annually, a number that has already seen suffering as a result of the tariffs. Wright closes his statement by noting the optimism required to work in the ski industry, one that is based largely on remote locations, fickle weather, and a lack of affordable housing. "The very last thing we need added to our plates is the President's anti-Canadian being driven by this administration that is neither grounded in logic nor supported by facts. It is my hope that ultimately cooler and more logical heads will prevail, but we have not seen much in the way of cool, and logic appears to be roughly five months out the proverbial window," said Wright. Jay Peak is not the only voice in the ski and outdoor industry to speak out about the affects of these tariffs. Earlier this week, women's ski and mountain bike brand, Wild Rye, opened to public investors as a way to bridge the financial gap needed to move product production out of China, as a result of the tariffs. On May 5th, Black Diamond reported a 15-25% raise in prices as a result of the tariffs. Many more brands and ski areas have waited in hesitation to see how these tariffs will continue to impact an already precarious industry following the COVID pandemic and in the face of climate change. Vermont skiers and ski areas are no strangers to standing up to this administration. Wright's statement further exemplifies that just because an office in the ski industry might look a little different than one in the White House, it's doesn't mean they aren't prepared to suit up and fight Peak GM Calls Impact of Canadian Tariffs "Catastrophic" first appeared on Powder on Jun 12, 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
E&E News
7 hours ago
- Business
- E&E News
Megabill could derail hundreds of planned clean energy projects
House and Senate Republicans are divided over how hard a blow their megabill should strike against the clean energy tax credits at the heart of Joe Biden's climate law. Hundreds of projects — overwhelmingly in Republican districts — hang in the balance. An analysis by POLITICO identified 794 wind farms, solar plants, battery storage facilities and other clean electricity generation projects that have not yet begun construction and could be at risk of losing two crucial tax breaks if the House prevails in rolling back Democrats' 2022 climate law. A competing proposal from the Senate Finance Committee would make a less aggressive attack on the law's incentives — but even then, hundreds of those projects could still lose all or part of the tax breaks if they don't move fast enough to start construction. Advertisement The ultimate shape of the Republicans' 'big beautiful bill' stands to have a major impact on the wave of clean energy projects that Democrats' Inflation Reduction Act helped launch across the country, with implications for jobs, climate change and the United States' ability to meet the power demands of technologies such as artificial intelligence. Clean energy makes up the majority of new power capacity expected to be added to the nation's electric grid during the next five years, according to a POLITICO analysis of data from the U.S. Energy Information Administration.
The Hill
17 hours ago
- Health
- The Hill
The hidden casualties of Medicaid cuts: America's family caregivers
In Arroyo Seco, N.M., Vanessa Herrera routinely inserts a needle into her 6-year-old son's chest, administering life-saving medication for his rare bleeding disorder. This weekly ritual, made possible by Medicaid, represents the thin line between health and catastrophe for millions of American families. For Herrera, a single working mother of three, the math is brutally simple: 'Without Medicaid, we would not be able to afford it,' she says. 'We are scared to lose it, because I don't want to lose my son.' Across America, more than 53 million people are family caregivers like Herrera's — parents supporting children with rare diseases, adult children assisting aging parents, spouses tending to partners with chronic illnesses. And more than 4 million family caregivers rely on Medicaid for their own health care coverage. This invisible workforce forms the foundation of our nation's long-term care system. Now, with the House passing a budget bill that slashes more than $1 trillion from Medicaid and the Senate Finance Committee advancing similar devastating cuts, these essential caregivers fear for the already-fragile support system that enables their critical work. As a governor managing the frontline impacts of health care policy on American families, and as someone who has also been a family caregiver, I have deep concerns about how these proposed cuts would unravel the already fragile support system that makes caregiving possible for millions of families. This isn't merely a budgetary abstraction. It is a looming humanitarian crisis with faces and names attached. Take New Mexico, where approximately 40 percent of residents rely on Medicaid — the highest per-capita coverage in the nation. The proposed cuts would eliminate up to $2.8 billion in federal funding in the first year alone. New Mexico isn't alone. In 15 states, at least one-fifth of working-age adults in rural areas depend on Medicaid. Tellingly, eight of these 15 highly vulnerable states went for President Trump in the last election — a stark reminder that health care security transcends partisan divides. For family caregivers, Medicaid often represents the only meaningful support available. As the primary funder of home and community-based services, it helps 4.5 million people with complex needs remain in their homes rather than face costlier institutional care. These services include respite care that gives exhausted caregivers essential breaks, training programs that teach specialized caregiving skills, and self-directed services that allow Medicaid enrollees to hire family members as caregivers. The proposed cuts would unravel this safety net in important ways. As federal funding disappears, states will be forced into impossible decisions about services critical to caregiving. History shows that when forced to cut spending, states typically target home and community-based services first — the very programs that help people maintain independence and provide critical support to family caregivers. Essential services like respite care, caregiver training and self-directed care options would be reclassified from 'life-sustaining' to 'optional' in state budgets. Compounding these challenges, the proposed work requirements for Medicaid fail to recognize economic reality. Many recipients who can work already do. And those who serve as full-time caregivers for family members with medical needs are already working — just without a paycheck. The math is straightforward: a family caregiver providing round-the-clock care to elderly parent costs our Medicaid system virtually nothing, whereas institutional settings such as nursing homes or board-and-care facilities can cost taxpayers $100,000 per year per patient. Work requirement proposals create bureaucratic hurdles for people already stretched thin, potentially forcing more into expensive institutional care — dramatically increasing costs while reducing quality of life for the most vulnerable. The House-passed bill included an exemption from work requirements for 'the parent, guardian, or caretaker relative of a disabled individual or a dependent child,' but it notably fails to address those caring for seniors or individuals with serious health conditions like cancer. Even with these limited exemptions, strict work requirements create an excessive administrative burden for family caregivers already navigating the complexities of daily care. Additionally, families must verify their eligibility twice yearly, adding yet another layer of bureaucracy to their already demanding caregiving responsibilities. As the Senate considers the House-passed bill, we call on all senators to recognize the care crisis unfolding in states across America and reject these devastating cuts. Our nation must come together to strengthen Medicaid's support for family caregivers, acknowledging their indispensable role in health care delivery. Investing in family caregivers through Medicaid isn't just compassionate policy; it's fiscal common sense. By enabling care at home, we prevent costly institutional care, reduce emergency room visits, and address workforce shortages in long-term care. There are millions of family caregivers like Vanessa Herrera filling critical gaps in our nation's health care system every day. If we fail to protect Medicaid, we fail them — and ultimately, we fail ourselves. Michelle Lujan Grisham, a Democrat, is governor of New Mexico. Jason Resendez is president and CEO of the National Alliance for Caregiving.
Forbes
a day ago
- Business
- Forbes
Buy The Dip In AES Stock?
AES (NYSE:AES), an American utility and power generation firm, experienced a nearly 8% drop in its stock during Tuesday's trading session. This decline follows the introduction of proposed modifications to President Trump's tax plan by Senate Finance Committee Republicans. The proposed adjustments aim to reduce renewable energy incentives, intending to eliminate solar, wind, and other clean energy tax credits by 2028 instead of the 2032 timeline established by the Inflation Reduction Act. These adjustments may affect AES, which derives approximately 52% of its power capacity from renewable sources. Excluding the company's hydropower capacity, which will remain unaffected by the cuts to tax credits, around 29% of AES's capacity comes from renewable resources. Furthermore, the company's forthcoming pipeline of projects is predominantly centered on renewable assets. Other significant renewable energy stocks also witnessed a notable decline on Tuesday. See How The Tax Cuts Impact Solar Major Enphase Energy Despite some favorable aspects for AES's stock, such as the growth in data center partnerships and a low valuation, several concerns remain. We reached our conclusion by assessing the current valuation of AES stock in relation to its operational performance over recent years, as well as its current and historical financial health. Our evaluation of AES through key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience reveals that the company has a very weak operating performance and financial status, as detailed below. However, for those seeking upside with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative – it has outperformed the S&P 500 and generated returns exceeding 91% since its inception. When considering what you pay per dollar of sales or profit, AES stock appears inexpensive compared to the broader market. • AES has a price-to-sales (P/S) ratio of 0.7 compared to 3.1 for the S&P 500 • Additionally, it has a price-to-earnings (P/E) ratio of 6.3 in contrast to the benchmark's 26.9 AES's Revenues have experienced a decline over the past few years. • AES's top line has had an average growth rate of 2.5% over the last 3 years (compared to an increase of 5.5% for the S&P 500) • Its revenues have dropped 3.2% from $13 Bil to $12 Bil in the past 12 months (against a growth of 5.5% for the S&P 500) • Furthermore, its quarterly revenues decreased 5.2% to $2.9 Bil in the latest quarter from $3.1 Bil a year prior (versus a 4.8% improvement for the S&P 500) AES's profit margins are around the average level for companies in the Trefis coverage universe. • AES's Operating Income for the last four quarters was $1.8 Bil, representing a moderate Operating Margin of 15.2% • AES's Operating Cash Flow (OCF) during this period was $3.0 Bil, indicating a moderate OCF Margin of 24.8% (compared to 14.9% for the S&P 500) • In the last four-quarter period, AES's Net Income reached $1.3 Bil – reflecting a moderate Net Income Margin of 10.7% (compared to 11.6% for the S&P 500) AES's balance sheet appears very weak. • AES's Debt stood at $31 Bil at the end of the latest quarter, while its market capitalization is $7.5 Bil (as of 6/17/2025). This results in a poor Debt-to-Equity Ratio of 375.6% (compared to 19.4% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferred] • Cash (including cash equivalents) accounts for $1.8 Bil of the total $49 Bil in AES's Total Assets. This yields a low Cash-to-Assets Ratio of 3.7% AES stock has underperformed significantly against the benchmark S&P 500 index during several recent downturns. While investors hope for a soft landing for the U.S. economy, what might happen if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes. • AES stock plummeted 57.5% from a high of $29.27 on 13 December 2022 to $12.45 on 6 October 2023, in contrast to a peak-to-trough decline of 25.4% for the S&P 500 • The stock has not yet returned to its pre-Crisis high • The highest the stock has achieved since then is 21.77 on 30 May 2024 and is currently trading at around $10.50 • AES stock fell 54.5% from a high of $21.03 on 18 February 2020 to $9.56 on 18 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 11 November 2020 • AES stock declined 79.5% from a high of $23.90 on 23 May 2007 to $4.91 on 9 March 2009, versus a peak-to-trough decline of 56.8% for the S&P 500 • The stock completely recovered to its pre-Crisis peak by 5 January 2021 In conclusion, AES's performance across the parameters detailed above is summarized as follows: • Growth: Weak • Profitability: Neutral • Financial Stability: Extremely Weak • Downturn Resilience: Extremely Weak • Overall: Very Weak Consequently, despite its very low valuation, we believe that the stock is unattractive, which reinforces our conclusion that AES is currently a poor investment choice. While it would be wise to steer clear of AES stock for now, you might consider the Trefis Reinforced Value (RV) Portfolio, which has consistently outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks offers a flexible approach to capitalize on favorable market conditions while minimizing losses during downturns, as elaborated in RV Portfolio performance metrics.
Business Insider
a day ago
- Business
- Business Insider
Sunrun Stock (RUN) Plummets 40% as U.S. Senate Targets Solar Credits
The solar sector is reeling after the release of the Senate Finance Committee's proposed tax-and-spending bill, which targets renewable energy sources. Sunrun (RUN), a major player in residential solar, was particularly vulnerable to the news, shedding almost 40% of its valuation in the past week. Having traded as high as $13.20 per share in late May, the stock is now languishing at ~$6 following this week's news. Confident Investing Starts Here: In my view, the proposed incentive cuts pose a significant threat to Sunrun's viability, particularly given its ongoing inability to generate profits despite these benefits being in place. Without that financial support, a turnaround seems even less likely, leaving me firmly bearish on the stock. Sunrun's Model Comes Under Fire For those unfamiliar, Sunrun primarily operates under a third-party ownership (TPO) model. Instead of homeowners purchasing solar systems outright, Sunrun installs and owns the panels, allowing customers to either lease the system for a monthly fee or pay for the electricity it generates at a fixed rate. This model has gained popularity because it enables homeowners to adopt solar with little to no upfront cost. Thanks to the Inflation Reduction Act (IRA), which extended and enhanced the federal Investment Tax Credit (ITC), Sunrun, as the system owner, can claim a tax credit typically worth 30% of the system's cost. This significantly lowers installation expenses and enables Sunrun to pass those savings on to customers, making the model more financially appealing. The Senate's Proposal is a Direct Threat to Residential Solar The Senate Finance Committee has recently proposed eliminating solar tax credits in favor of supporting other energy sectors, such as geothermal, nuclear, and hydropower. If passed, this legislation would require Sunrun to absorb the full cost of its solar systems, which would inevitably be passed on to customers. The result would be a significant squeeze on margins and an acceleration of the company's ongoing cash burn. Senate Republicans are reportedly aiming to pass the bill before the July 4th holiday. Upon closer examination, this appears to mark a broader shift in U.S. energy policy away from residential solar and wind. The market has already begun to react, with notable declines in Sunrun's peers, including Enphase Energy (ENPH) and SolarEdge Technologies (SEDG), underscoring the potential sector-wide impact. Regulatory and Political Battles Ahead for RUN There's still hope for solar advocates. The proposed bill faces strong resistance from Democrats, particularly from the original architects of the clean energy tax credits included in the Inflation Reduction Act. The clean energy industry is also mounting an aggressive lobbying effort, warning of potential job losses and higher energy costs. And while the bill is led by the GOP, not all Republicans are aligned in support. The legislation still has a long way to go. It narrowly passed the House in May with a 215–214 vote, and the Senate draft was just introduced on June 16. While the Senate version includes more extended phase-out periods for some clean energy incentives, it still calls for the elimination of Section 48E credits, which are key to residential solar leases. A Senate vote is expected soon, and if proponents can secure a simple majority, the bill could advance to President Trump's desk. For context, the current Senate makeup is 53 Republicans, 45 Democrats, and two Independents. Sunrun's Financials: Persistent Challenges Intensified In the near term, Sunrun could experience a temporary boost in demand as customers rush to take advantage of tax credits before they're phased out. However, expectations for 2026 and beyond point to a sharp and sustained decline in demand. A closer look at Sunrun's financials reveals troubling signs. The company has consistently reported negative operating cash flow, with a loss of over $100 million in Q1 2025 and nearly $800 million in total for 2024, highlighting the financial pressure it faces even before potential incentive cuts take effect. Meanwhile, Sunrun, in its pursuit of growth opportunities, is becoming increasingly leveraged, increasing its risk profile should things take a turn for the worse. Moving forward, ongoing tariff pressures and the disappearance of incentive credits spell long-term trouble for solar installers. Is Sunrun a Good Stock to Buy? Analyst sentiment on Sunrun (RUN) stock is mixed. The stock carries a consensus Hold rating, based on seven Buy, six Hold, and four Sell ratings over the past three months. Despite the cautious stance, RUN's average price target of $10.44 suggests significant upside potential—about 70% from current levels. Mizuho analyst Maheep Mandloi has a Buy (Outperform) rating on RUN with a price target of $16. He notes that the House's 'One Big Beautiful Bill' won't derail grandfathered credits until 2028. He also believes that demand for renewable energy will remain high without government incentives because it is 'still the cheapest option.' However, not everyone shares Mandloi's bullish outlook. Jefferies analyst Julien Dumoulin Smith downgraded RUN to Sell (Underperform) with a price target of $5. Due to the same legislation, Smith notes that Sunrun is exposed to 'both near- and long-term headwinds.' He believes that the market is underestimating 'how consequential the 'One Big Beautiful Bill Act' is uniquely on residential solar.' Sunrun Faces Uncertainty as Senate Bill Threatens Core Business Model The so-called 'One Big Beautiful Bill' poses a major threat to solar companies like Sunrun. The company's growth has heavily relied on tax credits tied to third-party ownership (TPO) systems. Even with those incentives, Sunrun has struggled to achieve consistent profitability. Without them, serious doubts emerge about its ability to maintain its current business model. If the bill passes, Sunrun—and others in the space—will likely be forced to pivot toward new strategies or market segments. That said, the bill could still fail, or be amended in ways that lessen the impact on Sunrun. Additionally, the proposed phase-out period provides a window for the company to adjust. From my perspective, I'd prefer to stay on the sidelines until there is more regulatory clarity.
