• • • Changing the balance of taxes 鈥� Budget鈥慸riven tax swaps and incentive reforms are changing the balance between income, property, and sales taxes, forcing large companies to revisit their multistate footprint.

    • How revenue is sourced is changing, too 鈥� Rapidly evolving digital and AI鈥憆elated taxes are creating new nexus, sourcing, and base鈥慸efinition issues for businesses that rely on revenue from digital advertising, social platforms, data monetization, and automated tools.

    • Planning amid continued uncertainty 鈥� New federal tax regulations, tariff鈥憆elated uncertainty, and even the elimination of the penny are all amplifying state鈥慴y鈥憇tate complexity for in鈥慼ouse tax departments.

WASHINGTON, DC 鈥� Tax industry experts who gathered at to provide updates on the current landscape of state and local tax (SALT) policy and offer insight that corporate tax departments should consider found, not surprisingly, that they had a lot to talk about in the current economic environment.

Mapping the new SALT frontier

For starters, this year鈥檚 SALT agenda is not just an abstract policy story for large, multistate businesses, rather, it鈥檚 a direct driver of cash taxes, effective tax rate (ETR) volatility, and audit exposure. Indeed, several state legislatures are advancing new taxes on digital advertising and data, revisiting incentives and data center exemptions, and using conformity to federal law 鈥� especially the tax provisions in the One Big Beautiful Bill Act (OBBBA) 鈥� as a policy lever, all against the backdrop of slowing revenues and contentious elections.

鈥淭ax swaps鈥� and incentives 鈥� States that are facing budget pressure are, unsurprisingly, looking at tax swaps to reduce income or property taxes while broadening the sales & use tax base and trimming exemptions. For example, on March 3, the state of Florida 鈥� which already doesn鈥檛 have a state income tax 鈥� passed legislation that in the state.

Moreover, with the rapid expansion of AI come the extensive need for data centers. Several states are reassessing data center exemptions and credits, either tightening qualification standards, requiring centers to supply more of their own power, or repealing incentives outright. A decision in Virginia to , for example, is viewed as a potential template for other states, particularly in those areas in which energy and environmental concerns are priorities. At the same time, proposals targeting include expanded corporate tax disclosures, CEO compensation surcharges, and enhanced reporting on apportionment and group filing methods.

What companies should consider 鈥� Large companies operating over multiple states should consider making an inventory of their credits and incentives by jurisdiction, including looking at sunset dates and political risk indicators.

Companies should also build forward鈥憀ooking models that show how any sales tax base expansion would interact with their supply chain and their procurement of digital and professional services.

New exposure for tech, marketing & data

Bipartisan legislators in several states are continuing to expand on digital economies as a revenue and policy target. For example, Maryland continues to lead with its digital advertising tax; while Washington state鈥檚 expansion of its sales tax to include certain digital and IT services and Chicago鈥檚 social media taxes illustrate the variety of approaches that state and local jurisdictions are exploring to expand their tax base and raise revenue.

Data and 鈥渄igital resource鈥� taxes 鈥� Proposals in states such as New York would tax companies that derive income from resident data, treating data as a natural resource. While no state has fully implemented a comprehensive data tax, however, large platforms and data鈥慸riven enterprises are monitoring these bills closely.

AI鈥憆elated SALT rules 鈥� Many states still classify AI solutions under existing Software as a Service (SaaS) or data鈥憄rocessing categories, but some 鈥� including New York 鈥� are exploring surcharges tied to AI鈥慸riven workforce reductions. And at least two states are explicitly taxing AI, similarly to the way software is taxed.

For corporate tax leaders, some practical next steps should include mapping those areas in which your group has digital ad spending, user bases, data monetization, or AI deployments. Then, overlaying that with current and pending digital tax proposals. In parallel, it is increasingly critical for the tax team to partner with IT and marketing teams to understand how contracts, invoicing structures, and platform design will affect nexus, tax base definition, and sourcing.

Federal shifts magnify multistate complexity

The OBBBA made permanent several of , while expanding SALT relief on the individual side and creating new interactions for multinational groups. Because most states start from federal taxable income 鈥� either on a rolling, static, or selective conformity basis 鈥� OBBBA changes reverberate across state corporate income tax bases, especially in those states that have decoupled themselves from interest limits, R&D expensing, or new production鈥憆elated incentives.

Corporate tax departments must now juggle different conformity dates and selective decoupling rules across rolling and static states, including jurisdictions that automatically decouple when a federal change exceeds a revenue impact threshold. This requires more granular state鈥慴y鈥憇tate modeling of OBBBA impacts on apportionable income, deferred tax balances, and cash tax forecasts. It also heightens the risk that political disputes 鈥� such as 鈥� produce mid鈥慶ycle changes that complicate provision and compliance processes.

Penny elimination 鈥� With federal , states now are moving toward symmetrical rounding for cash transactions, rounding the final tax鈥慽nclusive total to the nearest five cents while attempting not to alter the underlying tax computation. For retailers and consumer鈥慺acing enterprises, this shifts the focus to point of sale (POS) configuration, consumer鈥憄rotection exposure, and class鈥慳ction risk if rounding is implemented incorrectly.

Tariffs and refunds 鈥� The U.S. Supreme Court鈥檚 Learning Resources, Inc. v. Trump decision under the International Emergency Economic Powers Act in February leaves open how more than $100 billion in and what that means for prior sales & use tax treatment. Streamlined guidance generally treats tariffs embedded in product prices as part of the taxable sales price but excludes tariffs paid directly by a consumer鈥慽mporter from the tax base, raising complex questions if tariff refunds reduce costs or sales prices retroactively.

For indirect tax department teams, the confluency of the 2026 SALT changes 鈥� including the impacts around everything from data center credits to the recent Supreme Court tariff decision 鈥� the need to rely on internal partners across the business has never been stronger. Combining that with a greater reliance on technologies, including dedicated research tools to stay abreast of state-by-state tax changes, may be the best way for corporate tax teams to keep up with compliance requirements and avoid penalties.

You can download a full copy of here

Key highlights:

• • • Tax credit transferability survived intact鈥� The OBBBA preserved Section 6418 transferability rules despite earlier proposals to sunset or repeal them.

    • AI-driven data center boom may revive renewable energy tax credits鈥� With data centers projected to consume 12% of all US energy by 2028, large operators have strong incentives to advocate for preserving and expanding renewable tax credits to meet massive energy demands through solar, geothermal, and battery storage solutions.

    • 2026 market conditions favor buyers due to supply-demand imbalance鈥擨ncreased supply of tax credits (particularly Section 45Z clean fuel production credits) combined with reduced buyer competition from provisions like Section 174 and bonus depreciation has created advantageous pricing.

At the start of the current Trump administration, green energy tax credits were expected to be slashed or disappear altogether. In reality, significant changes emerged instead of ceasing to exist. More specifically, the One Big Beautiful Bill Act (OBBBA), passed in July 2025, kept the transferability rules around green energy tax credits intact.

As a result, the market for these credits remains robust in 2026 and 2027, says , an energy tax authority and principal at accounting firm CliftonLarsonAllen (CLA). In addition, multiple credits still have runway, and near-term dynamics in 2026 may favor buyers.

OBBBA鈥檚 changes result in shifts in marketplace conditions

When the OBBBA bill passed, the specifics revealed a more optimistic picture than many understand. According to Hill, specific examples include:

• • Wind and solar projects 鈥� Developers that begin construction by July 4, 2026, still have a four-year window to complete their projects and still claim credits. Even projects that miss this construction deadline can qualify if they’re placed in service by December 31, 2027.
  • Clean fuel production credits 鈥� Clean fuel production credits, detailed in OBBBA鈥檚 Section 45Z, received an extended runway through 2029.
  • Tax credit transferability 鈥� The tax credit transferability aspect under Section 6418 remained whole, despite previous versions of the bill proposing either a sunset date or outright repeal of transferability. This fact provides a level of marketplace certainty that can act as critical liquidity for developers that typically lack the tax liability to use credits themselves.

In addition, the legislation altered the buyer and seller environment. Provisions including OBBBA鈥檚 Section 174 and bonus depreciation generated additional deductions for certain companies, and as a result, reduced those companies鈥� 2025 corporate tax liability. Simultaneously, Section 45Z clean fuel production tax credits came into force and created a supply-demand imbalance that favors buyers.

Overall, in the latter half of 2025, Hill describes the marketplace as favorable for buyers because of an increased supply of tax credits that were for sale previously with fewer buyers. Into 2026 and beyond, both developers and corporate buyers still have significant opportunities to participate in the tax credit marketplace, explains Hill.

AI-related data center demand may spur new proposals for renewables tax credits

The explosive proliferation of data centers because of the growing AI demand across the United States may become the unexpected champion for renewable energy tax credits. Hundreds of facilities are currently under construction, and the energy demand implications are staggering. In fact, the projects that by 2028, data centers will consume 12% of all US energy.

Renewable energy technologies are emerging as essential solutions to meet these demands. Solar power, as a tried-and-true technology, offers ideal supplementation for data center operations; and geothermal heating and cooling systems directly address the massive temperature control challenges these facilities face. Perhaps most significantly, battery storage is rapidly becoming standard operating procedure, with both grid-based and solar-array-tied battery systems providing critical backup power.

These developments carry substantial policy implications. In fact, large data center operators have incentives to become vocal advocates for preserving and expanding renewable tax credits, says , a leader in federal tax strategies at CLA. “We want our AI, we want our cloud-based services. To do that鈥� we need massive data centers and massive computing demands,鈥� DePrima explains. 鈥淎nd that in turn requires massive amounts of energy consumption, which renewables can certainly supplement.鈥� This, in turn, creates the potential for a renewable energy tax credit “comeback” within two to three years, he adds.

Guidance for buyers and sellers

Looking ahead to 2026 and beyond, both buyers and sellers of renewable energy tax credits should recognize that significant opportunities remain despite regulatory changes. More specifically:

For buyers 鈥� Buyers should act now to capitalize on favorable market conditions. With increased credit supply and reduced buyer competition due to provisions like Section 174 and bonus depreciation, pricing has become more advantageous. Buyers of renewable energy tax credits should consider structuring 2026 transactions to directly offset estimated tax payments throughout the year, thereby improving cash flow by making payments to sellers rather than the IRS. Financial institutions remain particularly well-positioned as buyers, as many have explored tax credit carryback opportunities to increase their tax savings even further.

For sellers and developers 鈥� Renewable energy tax credits sellers and energy project developers can use tax-credit monetization as a critical component of project financing because the ability to convert credits into immediate cash proceeds is essential for paying down debt and funding new projects. Despite initial concerns, substantial opportunities remain with credits outlined in Sections 45Z, 45X, 48E, and 45Y which are transferable and viable through 2029 and beyond.

In either case, tax credit transferability under Section 6418 offers key opportunities in the marketplace. Whether buyers are looking to reduce their corporate tax burden while supporting clean energy goals, or developers are seeking to monetize renewable projects 鈥� tax credits offer incentives to move forward.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, or tax advice or opinion provided by CliftonLarsonAllen LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader鈥檚 specific circumstances or needs, and may require consideration of nontax and other tax factors if any action is to be contemplated. The reader should contact his or her CliftonLarsonAllen LLP or other tax professional prior to taking any action based upon this information. CliftonLarsonAllen LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

You can find out more about renewable energy tax credits here

Key insights:

• • Benefits of cooperation 鈥� Cooperative purchasing can significantly streamline procurement and level the playing field for smaller government agencies.

  • There are various models to follow 鈥� Different cooperative models offer distinct value: piggybacking improves access to competitive pricing with flexible adoption, while joint solicitations aggregate demand to secure more aggressive discounts by committing volume across multiple agencies.

  • Support is needed, and questions remain 鈥� Policy and institutional support are accelerating adoption, but trade-offs remain. State-backed entities and regional cooperatives expand contract access and scale, yet questions persist about true cost savings.

As of 2019, $4.45 trillion was spent across all levels of government, 50% of that spent by state and local entities, according to the U.S. Congressional Budget Office. These agencies have a fiscal responsibility to taxpayers to ensure that they receive competitive pricing on the goods and services they purchase.

Larger government agencies may have sophisticated procurement divisions with professional buyers and individuals responsible for soliciting and negotiating contracts in the best interest of the municipality. Meanwhile, smaller municipalities, which are less likely to have standalone procurement divisions, often receive less competitive pricing and haven鈥檛 had the staff capacity or expertise to negotiate the best terms for their purchasing needs.

Fortunately, new cooperative purchasing models are on the rise, and that could level the playing field between local governments no matter their size, while they also streamline procurement processes and save taxpayers money.

Cooperative procurement basics

Cooperative procurement takes two main forms: .

Piggybacking, the more common form of cooperative procurement, is when one agency utilizes another agency鈥檚 contract (even though they were not part of the original solicitation process.) This piggybacking allows for one agency to receive competitive pricing based on another agency鈥檚 solicitation efforts; and because suppliers are not guaranteed volume of purchase, discounts are not the most aggressive in this format.

Joint solicitation is less frequently used and occurs when two or more agencies combine their purchasing needs into a single solicitation 鈥� the equivalent of buying in bulk. Each agency is bound by the contract, but one entity is typically the lead agency. This offers suppliers an opportunity to guarantee larger purchase minimums and command more aggressive pricing discounts.

There are also membership-based entities that are helping to make government procurement easier and quicker, especially for smaller entities.

For example, is a Texas-based technology engine that connects government agencies and suppliers to facilitate peer engagement for public sector entities. Their leadership described a traditional local government solicitation process as lengthy, taking anywhere from 6 to 9 months for agencies to identify a need, solicit bids from suppliers, evaluate, and then execute a contract. The timeframe is streamlined up to 60% for Civic Marketplace users by accessing templates for solicitations, cooperative contracts, shortcuts to connect with pre-vetted vendors, and centralized vendor data. This platform also works to address another barrier of local government purchasing 鈥� the inequity between agencies of different sizes and sophistication.

New cooperative purchasing models are on the rise, and that could level the playing field between local governments no matter their size, while they also streamline procurement processes and save taxpayers money.

While Civic Marketplace is membership-based, it is not tied to a regional geography. Members can access volume-based pricing by aggregate demand across cooperative members as well as accessing shared contract language. States including Michigan and Minnesota have created special government entities to provide access to cooperative purchasing mechanisms.

Overall, these methods offer government agencies, especially smaller ones, a way to remain compliant with regulations, award contracts impartially, and remain transparent, all while engaging with peer communities with similar needs that can help agency procurement professionals foster a better understanding of pricing, scope of work, and vendor relationships compared to a wholly decentralized approach to purchasing.

Further, several state legislation and executive actions have also driven cooperative development. In Minnesota, for example, is a membership-free cooperative enacted by the state legislature, and public sector entities in the United States and Canada can access shared contracts and piggyback off them at no charge. Suppliers are also able to access the network at no fee, although a percentage of the contract fee is paid back to Sourcewell when a contract is utilized.

In Michigan, the (MMSA) was created as a virtual city by the governor鈥檚 office in 2012. The entity provides a small number of local municipalities within Michigan with procurement for very specific services including managed IT, cybersecurity, electronic payments, and more. MMSA has received positive feedback from vendors, noting that the streamlining of this process connects them with more prospective clients and allows them to flatten their pricing.

What are public procurement鈥檚 future needs?

The need for automation and streamlining in public procurement is evident, as the estimates that the size of the public sector鈥檚 purchasing manager workforce will lag behind private sector growth over the next decade by 1.3%. Fortunately, cooperative purchasing will enable smaller government agencies to be more agile with limited resources, and using pre-vetted, competitively solicited contracts will save them time and money.

Yet, the evolving space of cooperative procurement is not without criticism. Some argue that cooperative procurement is more about convenience than it is about realizing cost savings, and others argue that public procurement is a space that will likely be dominated by private sector players that are compensated off the top of executed contracts, costing taxpayers more than they might have paid otherwise. So far, there is limited data to speak to whether cooperative procurement opens opportunities for small, diverse, or local vendors 鈥� but anecdotally, it appears that broad online process benefits larger vendors who can deliver at scale.

As government agency leaders evaluate cooperative procurement for their own internal processes, they must weigh what is more important for them: convenience and time savings, realizing true cost savings, or directing more procurement dollars toward local and diverse-owned public suppliers.

You can find out more about the challenges that government agencies face here

Key highlights:

• • • Staffing crisis and rising caseloads 鈥� US courts are struggling with significant staffing shortages and increasing caseloads, leading to operational delays and overworked employees.

    • Cautious but growing AI adoption 鈥� Most courts are proceeding carefully with limited training and a strong focus on protecting confidentiality, ethical standards, and human judgment.

    • Human-centered, governance, and education needed 鈥� Experts stress that successful AI integration requires leadership, comprehensive education for court personnel, and robust governance policies to ensure AI supports, rather than replaces, human roles in the justice system.

A staggering 91% of professionals surveyed at state courts said they believe AI will have a moderate to transformative impact on judicial operations. Indeed, the mainstreaming of AI technology arrives at a critical juncture for America’s court systems. Today, courts in the United States are wrestling with the dual challenges of severe staffing shortages coupled with the urgent need to drive adoption of AI tools to alleviate the pain, according to findings from a recent webinar that was part of the , a joint initiative from of the National Center for State Courts (NCSC) and the 成人VR视频 Institute (TRI).

More than two-thirds (68%) of judges and court professionals surveyed for the Consortium鈥檚 2025 Survey of State Courts report said their courts had experiencing staffing shortages in the past year, with 61% anticipating continued shortfalls. Indeed, these challenges are forcing judges and court administrators to navigate between immediate operational needs and long-term technological transformation.

, Executive Officer and Clerk of Court for the Superior Court of Los Angeles County, says that there is also 鈥渢he challenge of people leaving. We have people in our workforce in Los Angeles that have been here 35, 40, 45 years. Well, they are getting to the end of their careers. They are ready to leave, and they are going to take a lot of knowledge with them. And at the same time, we have the challenge of getting newer folks to the organization to come work for the court.鈥�

Current state of court staffing

Because of this staffing crisis, critical positions across the judicial system remain unfilled as courts struggle to hire enough court reporters, interpreters, and administrative staff. These roles are essential to maintain citizens鈥� constitutional rights to due process and access to justice.

The operational impact of these shortages is severe and far-reaching, the data shows. Despite having fewer staff members, 45% of courts report increasing caseloads, which is enabling a perfect storm of overwhelming demand and diminished capacity. For example, 77% of courts encounter hearing delays weekly; and 38% of the court workforce now work between 46 and 50 or more hours per week 鈥� yet only 52% say they feel they have adequate time to fulfill their responsibilities effectively.

“Of the people who are working 50-plus hours, only about 12% said they are feeling like they have enough time to do the things needed,鈥� explains , Enterprise Content Manager for risk, compliance, government and courts at TRI. 鈥淚t seems like we need to find a way to both decrease the hours that people are working, and also make sure that they feel like they’re able to get done the things that they need to get done to successfully handle their jobs.”

Careful implementation of AI necessary

Only 25% of court systems currently offer AI training to their personnel, according to the report. This cautious approach reflects the judiciary’s measured response to emerging technology by prioritizing careful implementation over rapid adoption. Despite acknowledging AI’s importance, courts remain focused on addressing immediate operational needs rather than rushing into wholesale technological transformation.

The promise of AI applications in court operations extends across multiple domains, from making administrative efficiency improvements in document processing, scheduling, and case management to enhancing public services through AI-powered chatbots for basic inquiries. For example, Slayton听says that the Superior Court of Los Angeles County has deployed an AI-powered jury duty rescheduling system that allows citizens to interact conversationally with backend systems.

Join the AI Policy Consortium 鈥� a joint initiative from of the National Center for State Courts and the 成人VR视频 Institute 鈥� for its next webinar on

Still, technical barriers loom large, as courts struggle with limited technology budgets, dependence on external IT support, and the critical need for private, secure AI systems rather than public tools that could compromise sensitive case information. Ethical concerns also weigh heavily on judicial leaders who must balance innovation with fundamental principles of judicial independence, the critical role of humans in decision-making, confidentiality and maintaining public trust.

Add in to that the worries that rising attrition among court staff is another potential barrier to wide-scale AI adoption. However, the , Chief Administrative Judge of the New York State Unified Court System says he does not see this as a threat. 鈥淚 really do not anticipate job loss being an issue, because AI is something that requires human monitoring,鈥� Judge Zayas explains, adding that AI tools can help address staffing shortages, since they are capable of assisting with tasks like transcription and language translation, 鈥渁nd there’s just not enough people for us to hire to handle these things.鈥�

The goal in deploying AI, he continues, is 鈥渘ot [to] avoid hiring other people but filling the void that has [been] created by the sort of mass resignations that we see happening just generally with certain generations.”

Looking ahead

To leverage the opportunity of AI and address some of the concerns involved, , Founder & CEO of Creative Lawyers, recommends that state courts adopt a measured human first-AI forward philosophy and that court leadership can move forward with implementation. Specifically, Leonard observes that leadership matters more than specific tools in addressing mounting operational challenges and achieving successful implementation. More specifically, Judge Zayas, Slayton, and Leonard recommend that courts start with these actions as part of any successful AI integration efforts:

Begin with training & education 鈥� Comprehensive training programs are needed across all court levels to build AI literacy among judges, staff, and attorneys. “I think the best way to overcome concerns [about AI] is through education and training in the use of AI technology, even if it just means getting familiar with that technology 鈥� for everyone involved in the daily work of the court system,鈥� including judges, court staff, attorneys, and unrepresented litigants, says Judge Zayas.

Focus on the human-centered approach 鈥� Centering human needs around technology ensures that AI serves as a supportive tool rather than a replacement for human judgment.

Institute good governance 鈥� The development of policies and procedures remains key, as courts need governance mechanisms for establishing clear AI usage guidelines. The Judicial Council of California, for example, is adopting statewide rules requiring every court to develop AI policies, addressing ethical considerations including confidentiality, bias prevention, and appropriate use boundaries.

As courts navigate unprecedented staffing challenges, AI emerges not as a replacement for human workers, but as a critical tool to fill gaps and enhance efficiency. Success will depend on thoughtful implementation, comprehensive training, and maintaining the delicate balance between innovation and judicial integrity.

You can access a full copy of the 2025 Survey of State Courts report from the听, a joint initiative from of the National Center for State Courts and the 成人VR视频 Institute here

Purpose-built public safety training facility

The Town of Gilbert鈥檚 $86 million, prepares current and future first responders in their local environment, blending element-specific training and immersive technology. The training prepares first responders for a wide range of potential scenarios they may encounter across the nearly 200,000 calls for service received by Gilbert each year. Prior to the facilities implementation, the town鈥檚 first responders spent more than 4,000 hours off post each year, traveling to receive training in different communities. Not only can these first responders now train locally, but these facilities are also a hub for training volunteers and aspiring first responders from throughout the state and region.

For example, the Gilbert Fire Department hosts a three-week internship program as a part of their firefighter recruitment program, in addition to co-hosting with the Gilbert Police Department a four-day for high school-aged girls interested in the public safety field. A Cadet Program and train adults and volunteers who may be interested in becoming professional firefighters or volunteering in post-incident recovery, respectively. The Gilbert Police Department created the Gilbert Police Regional Academy following the implementation of this space, a multi-community collaborative recruit training program that serves Phoenix-area partner agencies. The police department anticipates bringing more than 200 new recruits into the department by 2030.

Cutting-edge training tools and technology

The purpose-built nature of the space allows police and firefighters to train in realistic environments. The facility includes a 46,000-square-foot pair of indoor shooting ranges that support low-light and vehicle-based training in a lead-free, soundproof environment. The facility utilizes a pressure system to eliminate smoke within sixty seconds of rounds being fired and even 鈥� with nearly 12,000 pounds of brass bullet casings and 6,000 pounds of frangible powder having been recycled over the past two years. Access to a high-quality indoor training facility in the harsh desert climate has led to a high demand for this space from surrounding law enforcement agencies, as well.

A simulated rail incident on the public safety training center campus allows the fire department to train with the specific type of equipment that transports nearly 70% of hazardous materials in the US. Also, a serpentine driving track provides public safety personnel with a safe environment to learn and refine emergency vehicle driving techniques and pursuit tactics, such as utilizing or deploying grapplers.

In addition to providing enhanced facilities for on-the-scene first responders, the Town of Gilbert has invested in facilities for those professionals who provide crucial support off-scene in their Emergency Operations Center (EOC) and 911 Dispatch center. There has been , ensuring that they receive the appropriate benefits and mental health resources to manage the high stress and trauma of triaging a wide variety of emergencies. From 2023 to 2024, Gilbert鈥檚 EOC was remodeled at a cost of $7.7 million and the 911 Dispatch center was remodeled, doubled in size, and equipped with cutting-edge technology at a cost of $11 million.

The now emphasizes wellness in design by incorporating art and function. While functionally, the center more than doubled in size to 10,500 square feet with 19 dispatch consoles and room for five more; technology-wise, the center also features Cloud CAD, Next Gen 911, updated radio consoles, and flex-use training spaces with the actual consoles that future dispatchers will utilize.

Further, elements promoting art and wellness such as circadian rhythm lighting, solar tubes that bring in natural lighting, biophilia through plants and green walls, and a high-tech air purification system make a stressful environment more physically inviting.

The Town of Gilbert has demonstrated significant care for the well-being of its employees, too. Off of the Dispatch floor are wellness rooms with red-light and massage therapy machines and a fitness center. The town鈥檚 allows new parents to bring their infants to work for the first six months of their life, with specialized baby rooms and nursing suites available just steps away from parents. This not only relieves stress for new parents, but also helps them better connect as a team.

Immersive and inclusive public safety training

Gilbert鈥檚 Police, Fire, and Parks & Recreation Departments are , which ensures that 80% or more of the employees within these departments are trained to communicate with and respond to community members on the autism spectrum. The Police Department also utilizes to train first responders in real-time decision making, as well as through a specialized Autism Awareness V-VICTA program developed in partnership with the Southwest Autism Research and Resource Center.

The Police Department also offers their , a confidential program by which family members or caregivers can provide law enforcement with information to build a confidential profile for individuals on the autism spectrum, which may include a photo, information about sensory triggers, fears, interests, and communication preferences. Further, the Gilbert Police and Fire Departments jointly host each Spring, offering family members an opportunity to introduce children on the autism spectrum to first responders in a low-stakes, non-emergency environment. Individuals can ride along in a fire truck, experience a police traffic stop, see fire gear up close, and more.

The goal of these educational efforts is to elevate the level of service which first responders offer to all community members and to create opportunities for individuals on the autism spectrum to bond with first responders before a crisis occurs.

Indeed, the Town of Gilbert鈥檚 mission is to . If this were not evident enough from its thoughtful and intentional investments in public safety infrastructure and community-facing partnerships, the forthcoming is a living embodiment of this mission. The Advocacy Center, slated to open in 2026, is a place for crime victims to recover from trauma and navigate the justice process. The facility will feature trauma-informed design in its architectural design and consider user experience first and foremost. The space will offer forensic interview rooms, private counseling rooms, group therapy spaces, victim advocate space, and more.

Through this type of intentional investment and innovation, the Town of Gilbert is not only preparing for the future needs of its own population, but it鈥檚 setting a high standard for the future of public safety.

Photos courtesy of the Town of Gilbert

You can find out more about how听law enforcement is using advanced technology in their efforts to fight crime and serve the public听here

In the United Kingdom, for example, the Revenge Porn Helpline in reports in 2023, compared to the previous year. Sextortion remained the predominant concern and made up more than one-third (34%) of all cases. The data reveals that overall, there was a 54% increase in sextortion cases compared to 2022, highlighting a concerning pattern that hasn鈥檛 been seen since 2021.

In the United States, the data is a little dated but double-digit increases too are suggested. In 2016, , reported being victims of nonconsensual pornography. A larger , showing 鈥� all in the space of just three years.

Given the rise in the use of generative AI to create deep fakes, it is easy to surmise that cases of IBSA will continue to be on the rise for some time.

Improvements in legal landscape on the horizon in the US

Obtaining justice for victims of IBSA around the world is no easy task. Only about a concerning IBSA as of 2018. In addition, prosecuting offenders in the US up until now has been a patchwork of local and state laws. Indeed, 48 states plus the District of Columbia and Guam .

The good news is that change is on the horizon with the bill known as the or the TAKE IT DOWN Act that was passed on April 28 and signed into law in late May.

The new law prohibits the intentional disclosure of nonconsensual intimate visual depictions, including digital forgeries. It amends Section 223 of the Communications Act of 1934 to criminalize the publication of such depictions without consent, especially if the images are intended to harm or result in harm, including psychological, financial, or reputational damage.

Join us for a free online Webinar: World Day Against Trafficking in Persons to learn more about the complexities of human trafficking, the impact on victims, and effective strategies for prevention and intervention

The Act also defines key terms, such as identifiable individual, and intimate visual depiction, which are important concepts to enforce the bill. For example, an identifiable individual is someone who appears, in whole or in part, in an intimate visual depiction and whose face, likeness, or other distinguishing characteristic (such as a unique birthmark or recognizable feature) is displayed in connection with such depiction. And an intimate visual depiction carries the meaning given in section 1309 of the Consolidated Appropriations Act, 2022, which includes visual representations involving nudity or sexually explicit conduct.

In addition, the bill establishes penalties for offenses involving both adults and minors. For adults, violations can result in fines or imprisonment of up to two years; while for minors, the penalties increase to fines or imprisonment of up to three years. Exceptions to the prohibition include lawful activities by law enforcement and disclosures made in good faith for legitimate purposes such as legal, medical, or educational needs.

The Act also mandates covered platforms, including websites, services, or applications serving the public with user-generated content, to establish a notice and removal process for nonconsensual depictions. Platforms must remove such content within 48 hours of a valid request and are protected from liability for good faith removal actions. The U.S. Federal Trade Commission is empowered to enforce compliance, treating violations as unfair or deceptive acts.

More action to protect potential victims needed

Research into the negative impacts of victims is significant. Among IBSA victims, 93% experienced considerable emotional distress, and 82% faced substantial challenges in social, work, or other vital aspects of their lives, according to the . Meanwhile, just more than half (51%) of victims revealed they had contemplated suicide. Additionally, 55% were concerned about their professional reputation being damaged due to IBSA, and 39% reported that it had negatively impacted their career.

These negative implications point to the need for additional measures beyond legal avenues to safeguard potential victims. One area in which there is a large need is building awareness among adults under 40, which of IBSA cases. This is especially true because people in this age range have .

Likewise, increasing education for caregivers and parents in order to better prevent their children from becoming victims is also critical. Resources such as 成人VR视频鈥� Safe Settings campaign and the U.S. Department of Homeland Security鈥檚 are great examples of awareness-building campaigns.

In particular, caregivers should protect their children by teaching them about the risks of sharing personal or inappropriate content online and the lasting nature of digital information. They should also guide them on how to set up privacy controls on mobile apps, recognize online predators, and find trusted adults for support. Parents should also stress the consequences of sexting and cyberbullying and emphasize that sharing sexual abuse material is illegal.

The TAKE IT DOWN Act represents a significant step forward in the fight against IBSA and digital exploitation, offering new legal avenues to protect victims and hold offenders accountable. However, legal measures alone are not enough, and continued efforts in education and awareness are essential to prevent future occurrences, empower potential victims, and foster a safer online environment for everyone.

You can find out more about the ways to strengthen online privacy rights here

Safeguarding children’s data and online privacy is challenging due to the existing fragmented legal framework, which consists of various federal and state laws with differing methods and restrictions. Even so, there are ways to address these gaps, says , Partner in the cybersecurity and data privacy litigation practice at Mayer Brown.

Understanding the current federal and state legal landscape

鈥淭he current legal landscape aiming to protect children’s data and online privacy is a complex patchwork of federal and state laws, each with distinct approaches and limitations,鈥� says Thomson. At the federal level, the Children’s Online Privacy Protection Act (COPPA) is the cornerstone legislation and is enforced by the U.S. Federal Trade Commission (FTC). COPPA primarily targets websites and online services directed at children under 13 years of age and mandates parental consent for the collection, use, and disclosure of personal information. Despite its foundational role, COPPA has faced criticism for its limited age scope and challenges in enforcement.

On the state level, Thomson notes that there has been a notable surge in initiatives to enhance children’s privacy protections. California, for example, leads with the California Consumer Privacy Act and its successor, the California Privacy Rights Act (CPRA), which extend privacy safeguards to minors under 18. This trend has inspired other states to enact similar laws, focusing on regulating children’s data, particularly in connection with social media.

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These state laws often include provisions for age-appropriate design codes and “harmful content age verification” laws, which aim to shield children from potentially damaging online content. However, these efforts sometimes face opposition on grounds of infringing on free speech rights, highlighting the ongoing tension between privacy protection and other legal considerations.

At the federal legislative level, efforts to strengthen children’s online safety have seen mixed success. Initiatives like the Kids Online Safety Act have been proposed to address broader online safety issues, although many such efforts have not yet been passed into law. Recent U.S. Senate hearings have continued to highlight the need for comprehensive federal action.

The challenge remains to harmonize these federal and state efforts to ensure consistent and effective protections for children’s data privacy across the United States. Such enhancements to current protections could include standardizing age definitions, increasing parental control, imposing stricter penalties for non-compliance, and improving education and awareness about online privacy risks. These measures, combined with potential international collaboration, could help close existing gaps and create a more cohesive legal framework to protect children online.

Areas of commonality and divergences

The current legal landscape protecting children’s data and online privacy reveals several important commonalities across jurisdictions. Most prominently, there is widespread recognition that children deserve special privacy protections beyond those afforded to adults, according to Thomson. For example, laws at both federal and state levels requiring parental consent mechanisms for data collection from younger users demonstrate this special protection.

Another common thread is the growing emphasis on privacy by design principles, which requires online services to build child safety and privacy considerations into their products from inception rather than as an afterthought. Additionally, there is increasing consensus that certain exploitative design features which may target children should be restricted, with many laws limiting data retention periods and collection practices.

Despite these commonalities, Thomson points out that significant divergences create a fragmented regulatory environment. Perhaps most problematic is the inconsistent definition of child across jurisdictions. Indeed, COPPA applies to children under 13 only, while state laws like California’s CPRA extend protections to minors under 18. This creates compliance challenges for companies operating across multiple states.

The challenge remains to harmonize these federal and state efforts to ensure consistent and effective protections for children’s data privacy across the United States.

Another key divergence lies in the scope of covered entities. While some laws apply only to child-directed services, others extend to general audience websites that are likely to be accessed by children. Enforcement mechanisms also vary, with some laws relying primarily on regulatory action while others provide private rights of action.

These inconsistencies create regulatory gaps that sophisticated companies and bad actors can exploit, which clearly underscores the need for more harmonized approaches to children’s data protection that can keep pace with rapidly evolving technologies and business models that target young users.

How to close the fragmented legal landscape

To strengthen protections for children’s data privacy and close existing gaps, Thomson explains that a comprehensive approach at both federal and state levels is necessary, which specific steps including:

Establish a consistent age definition 鈥� A uniform age definition should be established across all jurisdictions to ensure consistent application of privacy protections. This would address the current discrepancies under which federal and state laws currently operate.

Improve monitoring tools for parents 鈥� Additionally, enhancing parental control mechanisms, such as developing more user-friendly tools, would allow parents to monitor and manage their children’s online activities effectively.

Expand the scope of protections of personal information 鈥� Specific efforts to reduce the exploitation of children online should include expanding the definition of personal information to encompass biometric data, reflecting the growing use of such data in digital services.

Improve transparency to parents 鈥� Require companies to provide clear, detailed disclosures about their data collection practices and any third-party sharing. This would help parents and guardians make informed decisions about their children鈥檚 digital interactions.

Strengthen consistent protection across geographies 鈥� Establishing global standards for children鈥檚 data privacy through international collaboration can also play a significant role in providing consistent protection across borders.

The splintered legal landscape protecting children’s data privacy creates regulatory gaps that sophisticated companies and illicit actors can exploit. As the digital world continues to evolve, it is imperative that lawmakers and regulatory bodies work together to establish a more cohesive and comprehensive framework for protecting children’s online privacy 鈥� one that will prioritize their safety, well-being, and rights in the face of increasingly complex technological advancements.

You can find out more about how organizations and individuals can fight against child exploitation both online and in the real world here

This new policy direction comes at a time when EVs has surged in consumer popularity and as the American automaker and component supply chain invests heavily in a shift away from gas-powered vehicles.

Growth of the US EV market

EVs experienced a of 52% in 2023 and despite a slowed pace in 2024, those totals were still above 2023鈥檚 numbers. The gap in sales over the last year was filled by plug-in hybrid electric vehicles (PHEVs).

The State of California holds tremendous influence over the automobile industry due to its market size and is currently the 鈥� with one-third of all EV units nationally being sold in the state. California has held special authority from the Environmental Protection Agency to adopt stricter emission regulations than the federal government since the 1970s. The state received approval from the federal government toward the end of the Biden Administration to starting in 2035. California Governor Gavin Newsom has pledged to revive its own should the federal tax credits disappear.

Indeed, transmission capacity is truly a bipartisan issue 鈥� traditionally left-leaning states are seeking increased transmission to support clean energy goals while traditionally right-leaning states are seeing data-center growth.

EV-maker Tesla (of whom the largest shareholder is Trump advisor Elon Musk) currently holds reign as the and generates more profit per vehicle than its rivals. (However, the brand has had a bumpy ride over the past several weeks 鈥� despite a filmed endorsement by President Trump 鈥� because of the link between the Telsa and Musk.) Further, the removal of a federal tax credit subsidy would impact rival brands like Ford and GM more greatly than Tesla. While for federal tax credits, for their long-range variant batteries.

Market deterrents and charging needs

One of the for Americans in considering an EV purchase is range anxiety 鈥� the concern about the distance an EV can cover from one charge. Less than 5% of car trips in the United States are longer than 30 miles and only 0.1% of car trips exceed 500 miles, but the anxiety persists. EVs require consecutive coverage of charging infrastructure accessibility between cities (a minimum number of fast chargers spaced fewer than 50 miles apart).

Charging options vary widely in the wattage they deliver and speed of charging. For example, a Level 2 EV charger (such as one might have in their home) can recharge a vehicle in four to six hours, whereas DC Fast Chargers offer a much faster charge by wattage. As the industry leader, Tesla deployed its own network of fast chargers across the United States in the early 2020s and has since by modifying their chargers to be adaptable to more EV brands. Currently, only Nevada and California meet state-level fast coverage metrics, with consecutive coverage areas being highest in New England, the West Coast, and Florida for state-level minimum coverage.

Many state legislatures have changed their own utility rules to allow for private businesses to own and operate EV and PHEVs charging stations, effectively offering retail sale of electricity to the public as a non-utility. and were the final two of all 50 states to adopt these legislative changes, which were both passed early in 2024.

Interestingly, the US automobile industry and component supply chain has gone all in on EVs. Traditional automakers face substantial competition from Chinese automakers in the EV market globally, and the newly increased 20% tariff on Chinese imports also looms over auto manufacturers鈥� heads, which adds pressure to have a . While US-based EV battery factories numbered only two in 2019, more than 30 are planned, under construction, or operational this year.

Many state legislatures have changed their own utility rules to allow for private businesses to own and operate EV and PHEVs charging stations, effectively offering retail sale of electricity to the public as a non-utility.

States including Ohio, Georgia, Kentucky, Tennessee, Mississippi, and South Carolina have as new industry clusters. For example, represents 6% of all automobile industry employees in the US, and the $5.8 billion BlueOval SK Battery Park (serving Ford and other automobile manufacturers) located in Glendale, Kentucky, will produce domestically-made EV batteries. Toyota, Ford, Honda, BMW, Daimler, , and Hyundai all currently or will soon assembly EVs within the US.

Energy emergency and utility grid investment

President Trump has declared a 鈥� the first ever presidentially-declared national energy emergency. In his , President Trump encouraged increased domestic production of oil and gas and continued coal production 鈥� a noted de-emphasis on renewable energy sources. The US currently is a net exporter of fossil fuels and produces more oil and gas than any other country in the world and more than any point in American history. Where Trump鈥檚 call for energy investment holds is in the need to update and expand transmission capacity and the resiliency of American utility grid infrastructure.

The U.S. Department of Energy reports that the nation has a pressing need for . And while forecasted numbers for energy demand show it over the next 5 to 10 years, there is agreement that transmission capacity must be a high-priority for domestic utilities. This increased demand is also accompanied by more frequent severe and extreme weather which drives the need for grid modernization.

Indeed, transmission capacity is truly a bipartisan issue 鈥� traditionally left-leaning states are seeking increased transmission to support clean energy goals while traditionally right-leaning states are seeing data-center growth. Public utilities have at times blocked transmission buildout to protect the viability of gas and coal sources, but President Trump has promised to streamline permitting procedures for power grid enhancements. To meet projected demand, over the next decade, and that power would likely need to be sourced from a blend of renewable and non-renewable resources.

As the rapidly expanding EV market collides with shifting federal and state energy policies and as fossil fuel is prioritized by the Trump Administration, the automobile and supply chain markets continue to forge onward. Policymakers face urgent decisions to invest in their utility infrastructure and transmission investment, as well as energy source diversification to sustain future power demands.

You can find more about how companies are managing their supply chains here

In 2024, the federal government was rated as the between the oil and gas and pharmaceutical industries.

As he is about to begin his second term, President-elect Donald Trump and advisors including Elon Musk have promised sweeping changes to the way the federal government works 鈥� changes, not surprisingly, that will focus on how various agencies operate. Musk has been teamed with former Republican presidential candidate and pharmaceutical entrepreneur Vivek Ramaswamy to lead the (DOGE), a commission aimed at reducing federal spending by $2 trillion annually and decreasing the workforce of federal agencies by 75%.

As state and local governments anticipate the ripple effect of changes at the federal level, this mirrors historic efforts under the Reagan and Clinton Presidential Administrations to deliver greater government efficiency 鈥� to a much larger and potentially more impactful degree, of course.

鈥淒raining the swamp鈥�: A Reagan-era rallying cry revisited

While many credit President Trump with popularizing the rallying cry to 鈥渄rain the swamp鈥�, the phrase was used in 1982 , as he was initiating his own efforts to improve government agency efficiency and downsize the federal government. President Reagan formed the President鈥檚 Private Sector Survey on Cost Control in the Federal Government under CEO J. Peter Grace, an effort more commonly recalled as .

This was a federally scaled version of Reagan鈥檚 which was executed during his tenure as governor of the State of California. The Grace Commission was privately funded and brought together more than 150 corporate leaders to review agencies and functions within the federal government. Many of the Grace Commission鈥檚 recommendations would require legislative buy-in, which prevented a large number of them from ever being implemented.

A similar approach to government efficiency was brought forth during the Clinton Administration in 1993, the , a program championed by then-Vice President Al Gore. This time, advice came from inside experts 鈥� longtime federal employees who had a keen sense of opportunities for efficiency and customer service improvements. Realizing the roadblocks which Congress could pose, the program tried to focus primarily on administrative changes which could be made without lawmakers鈥� approval.

The partnership brought forth plain-English documents and improved customer service, while offering less onerous regulations and downsizing agencies and workforce numbers to record post-Cold War levels.

Reform or reduction: Differing visions for DOGE

While DOGE is not an official federal department and will likely be set up as a (similar to how the Grace Commission was established), it will be able to make recommendations, subject to public transparency laws. However, DOGE will need to rely on Congress to implement said recommendations. Constitutionally, only Congress holds the power to authorize and fund new agencies, and they can choose to take or dismiss feedback from commissions as it relates to the federal budget.

While Musk and Ramaswamy have pledged that they will not be paid for their roles as co-leaders of DOGE, if they are formal employees (unpaid or otherwise), they would be classified as Special Government Employees and would have to file financial disclosures and be subjected to federal employee conflict of interest penalties. Musk and his companies (including X, SpaceX, and Tesla) may face further scrutiny because of his DOGE role as those entities are and still face ongoing federal investigations.

Ramaswamy has , but mass layoffs (or reductions in force, as they are called), aren鈥檛 an easy undertaking. Employees have the ability to appeal to the Merit Systems Protection Board, and because of the Constitutionally granted Congressional authorities, eventually Congress must authorize some of these decisions.

that cuts will 鈥渘ot impact day-to-day life for Americans鈥� or impact Social Security, or Department of Defense spending. Of course, it remains unclear if the goal of DOGE is truly to reduce federal agency services and the size of the federal government, or if it is to balance the federal budget through bipartisan consensus on spending priorities. Both appear, at first blush, to be roles best suited to Congress.

Unique to this administration, legislative caucuses have been formed in both the and the , under the same acronym DOGE, but in this case which stands for Delivering Outstanding Government Efficiency. Caucus members have shared personal goals of reducing the national debt; managing fraud, waste & abuse within the federal government; and to root out wasteful spending (often called .)

This effort to mirror an Executive Advisory Committee with bicameral legislative caucuses may make Congressional implementation of committee recommendations more feasible than prior administrations found. DOGE is scheduled to be sunset in July 2026, compelling it to focus on short-term Executive actions and rely on lawmakers for longer-term support.

Rebuilding trust with the public

It is clear that the incoming Trump Administration has effectively gauged the public鈥檚 sentiment around the effectiveness of federal government agencies and the government in general. To rebuild public trust in these institutions, there are three approaches which need to be generated from within the federal government and brought forward through government agencies:

Humanize civil servants 鈥� Are there ways to feature or call out the individuals who work within the federal government to make it less of a faceless bureaucracy? Of the more than 2 million federal employees, 80% work outside the Washington, DC metro area and are in non-political roles. Americans actually of non-partisan civil servants.

Continuously improve user experience 鈥� Musk has advocated radical transparency under DOGE, encouraging the public to submit their suggestions for wasteful areas to target, and the House DOGE Caucus also has opened up a suggestion email box. Encouraging direct public engagement from citizens could work toward rebuilding trust. Technological improvements which also could improve customers鈥� experience with federal agencies may also address accusations of inefficiency.

Strengthening oversight 鈥� Empower agencies鈥� Offices of Inspectors General to continue to detect and prevent fraud, waste & abuse. Heightened levels of transparency with the public through portals like , risk-based screening tools for federal funding, and generally increasing awareness of Inspectors General work can begin to address accusations of waste.

As the new presidential administration makes ambitious promises of government efficiency, the success of DOGE will depend on balancing bold promises and the limitations of implementation within the Executive Branch. Based on the successes and challenges of the Reagan and Clinton Administrations, public trust in the federal government may increase with a greater focus on transparency, improved user experiences, and newly empowered non-political civil servants.

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President-Elect Donald Trump, a strong proponent of increasing fossil fuel production, will almost certainly pull the United States, once again, out of the Paris Climate Accords. His election has already cast a pall over听, the annual United Nations climate summit, in Baku, Azerbaijan. As of press time, countries at the summit were struggling to secure a climate finance deal that would support poorer countries in combating climate change.

“Overall, the outcome of the US election win is a dangerous moment for climate action because of its chilling effect on federal, global, and corporate action,鈥� says Dr. Andrew Coburn, CEO of Risilience, a UK-based sustainability intelligence firm. 鈥淗owever, the world looks very different from 2016, and there are nuances that will soften the impact.”

For example, there will be less regulatory pressure for US companies to show action toward their climate goals, but for large corporations 鈥� both multinational and domestic 鈥� regulation from the European Union and the State of California will 鈥渕ean they still have to engage in stringent climate disclosures,鈥� Coburn adds.

Increased executive orders on oil, environmental protection, diversity

Many experts have said they believe one way that Trump will act quickly on environmental, social and other policy objectives is by issuing executive orders. The use of such orders is a strategy that many US presidents have used early in their term, offering them an easy way to bypass Congressional negotiations and legislation.

Peter Alpert, partner at the law firm Ropes & Gray in New York City, recently joined colleagues in a roundtable discussion about the outlook for ESG policies under a second Trump administration. “Substantively, I think that you’d see executive orders on the topic of extraction of fossil fuels 鈥� ‘drill, baby, drill’ type of executive orders,鈥� says Alpert, adding that there may also be a directive that could impact the U.S. Environmental Protection Agency (EPA).

Trump’s nominee to lead the EPA is Lee Zeldin, a former member of Congress. Zeldin, who ran for New York State governor two years ago, is a lawyer with little climate or environmental experience. In听, Zeldin said publicly that he would prioritize “unleashing economic prosperity through the EPA” and pursue “energy dominance,” a phrase used to refer to developing more oil and gas.

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Regarding diversity, equity, and inclusion (DEI), observers expect the new administration to issue executive orders quickly. Doug Brayley, of Ropes & Gray, said he expects “executive orders over the topics that the executive has the most direct control over, and that’s namely the staffing of the federal government, which, of course, employs millions and millions of Americans in civilian capacities and also [manages] federal contractor compliance.”

Brayley cited听, produced by the Heritage Foundation, an American conservative activist group, that is said to be an explicit blueprint for the new Trump administration. “We’ve seen in Project 2025 [that] there’s a plan to purge the federal bureaucracy of a number of senior civil servants,鈥� Brayley explains. 鈥淥ne, I think, can reasonably expect senior DEI officials at the various agencies to be included.鈥�

Little hope of resurrecting SEC climate rule

Trump has yet to nominate a new chair for the U.S. Securities and Exchange Commission; however, whomever he chooses will almost certainly eliminate or severely truncate the climate disclosure rules put forward by current SEC Chair Gary Gensler. Gensler has said publicly that he would step down from his role in January when Trump takes over.

The climate disclosure regulation, sharply criticized and challenged in court, is now languishing in the U.S. Court of Appeals for the Eighth Circuit after the SEC put a stay on the rules.

In an听听under the Trump administration, consulting firm PwC stated: “The SEC’s climate risk disclosures are not likely to go into effect during the new Trump Administration, as they are already facing a difficult legal battle that a new chair could choose not to fight.”

On the state level, the California legislature formally declined to delay the sustainability reporting regulations contained in its in August, and the law remains in effect even while being challenged in court. The law, previously signed by California Gov. Gavin Newsom, means that both public and private companies that meet certain revenue听thresholds and “do business” in California should prepare to report information on their greenhouse gas emissions as soon as 2026. Other states, such as New York and Illinois, may follow California’s lead on climate disclosure.

More action on “greenhushing”

In 2023, the SEC adopted a new听rule听cracking down on greenwashing and other deceptive or misleading marketing practices by US investment funds.听The changes to the two-decade-old SEC require that 80% of a fund’s portfolio matches the assets advertised by its听name.听The regulation targets a boom in funds that have tried to exploit investor interest in ESG investing, with听names听that do not accurately reflect the fund’s investments or strategies.

Should a new SEC take on more of an anti-ESG sentiment, such as that seen in some Republican-led US states, experts suggest there could be more investigations into funds that seek to downplay their ESG-related investments 鈥� what is often referred to as greenhushing 鈥� in an effort to avoid riling anti-ESG politicians or lawmakers.

This might be particularly difficult for fund managers operating in both the EU and the US, notes George Raine of Ropes & Gray. “If you’re a manager who is managing the same strategy, say, in Europe, and you’re out there saying, 鈥楬ey, this is an ESG strategy,鈥� and you fail to mention that in your US version of the same strategy, you would then potentially be violating a rule that says you must go out and say you are an ESG impact fund or an ESG-focused fund,” Raine explains.

US corporations will continue ESG efforts

Despite the gloomy prognostications at the federal level, some experts said they believe that many US companies will continue pursuing ESG policies and strategies 鈥� if for no other reason than they see it as a good, long-term business practice.

“Companies committed to sustainability will stay the course ,” said Tim Mohin, global sustainability leader at consulting firm BCG. 鈥淚nvestors will seek value by avoiding risks and betting on new, efficient green tech. Climate advocates will redouble their work, and the public will increasingly expect action from their elected representatives as climate risks mount.鈥�

Mohin says that while US leadership of climate and sustainability action will undoubtedly reverse, 鈥渢he future of the global sustainability movement will continue.鈥�

You can find more about the impact of the recent Presidential Election here.