The Schweikert Segment: Increasing Efficiency in American Manufacturing

District Update June 2, 2025

Dear ,

Increasing Efficiency in American Manufacturing

There’s growing momentum behind efforts to bring more manufacturing back to the U.S., but the conversation often misses the big picture. Too often, efforts to boost domestic production are either too narrowly focused—helping just one piece of a larger supply chain—or they rely on costly subsidies that don’t move the needle long-term. This week, the Joint Economic Committee is hosting a hearing to dig into what a smarter, more strategic approach to supply chains might look like. The conversation will go beyond reshoring headlines and take a closer look at how to actually make domestic production competitive again—without breaking the bank.

The witnesses include: Dr. Patrick McLaughlin of the Hoover Institution, Dr. Yossi Sheff of MIT, Dr. Jean-Paul Rodrigue of Texas A&M Galveston, and Dr. Sujai Shivakumar of the Center for Strategic and International Studies.

We are grateful for the witnesses' time and expertise that they bring to the subject. You can watch the hearing live, HERE, this Thursday, June 5, 2025, at 10:00 a.m. EDT.

What I'm Reading and Why It Matters

"A new approach could fractionate crude oil using much less energy”	"A Glucose Monitor for Someone Without Diabetes: Optimal or Overkill?”	"Inside the Spectacular Downfall of UnitedHealth and Its CEO”
MIT engineers have developed a novel membrane that separates components of crude oil based on molecular size, potentially replacing the traditional energy-intensive distillation process. This new method could significantly reduce the energy required for oil fractionation. The traditional heat-driven method of fractioning makes up 1% of global energy us while the new method is estimated to reduce the energy requirement by 90%. A massive reduction in energy usage to process crude oils means a significant reduction in cost to its products: gasoline, diesel, and heating oils.	The availability of over-the-counter Continuous Glucose Monitors (CGM) reflects a growing consumer interest in proactive health management and personalized data. However, it also raises questions about the utility and potential overuse of such devices among the general population. As we consider policies related to healthcare technology and preventive medicine, understanding the balance between beneficial innovation and unnecessary medicalization is crucial.	UnitedHealth's CEO Andrew Witty resigned in May 2025 after the company lost over $250 billion in market value due to surging Medicare costs, regulatory changes, and a major cyberattack. His aggressive Medicare billing practices backfired, leading to federal investigations and a leadership shakeup. UnitedHealth's story is still unfolding and will be the spectacle of other Medicare managed care groups due to an ongoing criminal investigation for possible medicare fraud.

Greater Phoenix Chamber Political Insider Series

Last week, I had the pleasure to speak to Arizona business leaders about the dangers of the ever-increasing federal debt. I continue to believe the inability or unwillingness to bring the federal debt under control represents an existential threat to the American economy.

Our massive amounts of borrowing will be our downfall. Today, we borrow around $6 billion a day... by 2035 that number is estimated to be $10 billion. We are also headed towards $27 trillion in additional public debt by 2035.

I also laid out what would happen to our district if HR.1 doesn't pass.

The average taxpayer in AZ-01 would see a 20% tax hike
A family of 4 making the median income in AZ-01 would see a $2,062 tax increase
89,330 Small businesses in AZ-01 would be hit with a 43.4% tax rate

Recognizing Some Amazing Citizens of AZ-01

I am continuously thankful and humbled by the young men and women in our district who make the conscious decision to serve their families, friends, and countryman.

This past week I was honored to meet 13 of the 18 young students from our district who have been appointed by our nations service academies. I am so proud to represent them as they embark on their journey to the academies later this summer. You too should be proud, this is not only the largest class of appointees this district has ever seen, but the largest in the nation.

I look forward to the great things these students will achieve. On behalf of AZ-01 and myself, thank you for your commitment to serve our nation and to protect the values that make it.

Schweikert Suggests...

How does the reconciliation process work, and where are we at in the process? (Olivia in Scottsdale)

Budget reconciliation is an optional legal procedure meant to fast-track the adoption of budgetary legislation based on what was adopted in the preceding Budget Resolution

The purpose of the reconciliation process is that reconciliation legislation is ‘privileged’ and cannot be filibustered in the senate, allowing for it to pass with only a simple majority in both chambers of congress.

The first step in the process for a reconciliation bill is the passage of the concurrent budget resolution in the House and Senate. This resolution provides a roadmap for the reconciliation process that does not require the approval of the president. All budget bills contain “reconciliation instructions” which delegates work to each committee relevant to major legislation that is trying to meet a specified fiscal target.

For example: Instructions may be given to the committee on Banking, Housing and Urban Affairs to reduce mandator spending. This could allow for the committee to institute spending cuts within choice programs.

The second step in this process is the drafting of legislation by committees based on their instruction from the budget resolution. This legislation moves through the respective processes of each committee. Afterwards, the Budget Committee combines each measure into a final reconciliation bill.

The third step is the debate and passage of the legislation in the House and Senate based on their respective rules.

In the House: the Rules Committee creates guidelines for debate regarding the bill and if amendments can be submitted. Only a simple majority is needed for reconciliation to pass in the House.

In the Senate: Debate is limited to 20 hours and a simple majority is needed to pass the legislation. After debate has expired, Senators may vote on amendments without debate until none are offered. The Senate is the final chamber of government which passes the bill.

Currently, we are in the final stages of the reconciliation process. HR.1, which passed in the House on May 22, is now in the hands of the Senate. They will deliberate and suggest amendments to the bill. If they pass and amended version of the bill, it will then be sent back to the House for response. The House then has to either accept the amendments or deliberate further to reconcile the differences.

Once both chambers of congress pass an identical version of the bill, it will be sent to the president to be signed into law or vetoed.

Do you have any general questions that I can help answer? Do not hesitate to reach out to my offices at (202) 225-2190 or (480) 946-2411.

Thank you for taking the time to read this update on my latest work in Washington, D.C. and Arizona’s First Congressional District! If you have any comments or concerns, I encourage you to reach out to my office.

Sincerely,

David Schweikert

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