The RIMS Legislative Summit 2025 was held March 19th and 20th in Washington, DC. RIMS members met with the US Chamber of Commerce on the 19th and kicked off with a Chapter Leaders Meeting which allowed for cross collaboration and sharing of best practices. This was followed by briefings from US Chamber lobbyists, as well as an outside law firm retained by RIMS to support the society’s legislative efforts. The focus was on how to effectively engage lawmakers on key issues to advocate on behalf of the risk management industry.
On March 20th, RIMS members spent the day meeting with Senate and House of Representative staff members. The four key issues at hand are:
Association Tax Reform: - RIMS opposes broad-based efforts to eliminate the tax-exempt status of 501(c) organizations. What’s the issue? Many of the tax benefits adopted by the Tax Cuts and Jobs Act of 2017 are set to expire in September 2025. Assuming Congress elects to extend those tax cuts, the cost to the federal treasury is anticipated to be $4.7 trillion. To avoid going off a “tax cliff,” Congress will need to find new tax revenue streams. This, coupled with the argument that many nonprofits operate like for profits, has led policymakers to consider levying 21% corporate income tax rate on nonprofit net revenue.
Freedom to Invest in Tomorrow’s Workforce Act (HR 1151/S 756) - RIMS supports this bipartisan Act which would allow the expansion of qualified expenses under the 529 savings plans to include postsecondary training and professional certifications. What’s the issue? Training and credentials are ineligible for 529s. America’s workforce is comprised mostly of middle-skill jobs that require no more than a high school education but not a bachelor’s degree, according to the National Skills Coalition. A differentiator amid the 21st century workforce is postsecondary credentialing for workers with or without a two or four-year college degree.
National Flood Insurance Program - RIMS supports several enhancements to the current NFIP: Multi-year reauthorization; allow for the purchase of blanket policies; expand commercial coverage to betterments and improvements; improve adjuster qualifications; and privatization support with specific concerns addressed. What’s the issue? As part of the Continuing Resolution that funds the federal government, the NFIP is almost certain to be reauthorized whenever it is set to expire. However, the issue is that the reauthorization process doesn’t seem to allow Congress time to consider and adopt changes to the program that would create more stability and efficiencies for program insureds.
Third Party Litigation Funding - RIMS Supports the Litigation Transparency Act of 2025 (HR 1109) which would require disclosure and production of all third party litigation funding agreements in federal litigation. What’s the issue? There are many. TPLF raises ethical concerns as the funders may not act in the best interest of the plaintiffs. There are also potential conflicts of interest as funders may have incentives to pursue goals that are not in the best interest of the plaintiffs. Foreign adversaries could use TPLF to influence the US legal system. And TPLF can drive up settlement costs and prolong litigation (even when the plaintiff would prefer to settle).