Can you believe it’s been just over a month since President Donald Trump signed the One Big Beautiful Bill Act into law on July 4? It practically shipped with fireworks—and for those of us in the insurance world, it brought more than a few sparks. Some were good, a few were questionable, and others left behind just the right amount of policy room for PIA Northeast to roll up its sleeves and get to work at the state level.
Let’s take a closer look at what made it into the bill—and what didn’t—and why that matters to independent agents across the Northeast.
What is the bill, anyway?
Formally known as H.R. 1–The One Big Beautiful Bill Act, the legislation is a sweeping economic package pushed through Congress via budget reconciliation—a legislative shortcut that allows certain tax and spending bills to bypass the Senate filibuster and pass Congress with just 51 votes. That means no need for bipartisan support, and a whole lot of policymaking in one fell swoop
Although the bill’s most intense debates focused on health insurance—particularly proposed cuts to Medicaid—this article will not delve into those issues. Instead, it will focus on how the bill’s other provisions, including tax reform, directly or indirectly affect the property/casualty insurance industry. While P&C wasn’t the centerpiece of the conversation, it wasn’t left completely untouched.
PIA’s priorities win big in Washington
For independent agents, the big takeaway is this: PIA showed up—and delivered.
On July 4, President Trump signed into law several of PIA’s long-sought priorities. Chief among them:
The 20% Qualified Business Income deduction for pass-through entities was made permanent. This critical tax break, first enacted in 2017, helps independent insurance agencies reinvest in staff, operations and growth.
The bill reinstates the annual Administrative & Operating inflation adjustment for crop insurance agents beginning with the 2026 reinsurance year—providing relief after years of stagnant reimbursements.
A proposed 10-year moratorium on state-level AI regulation was removed—preserving the right of states to regulate emerging technologies in insurance.
These wins represent a powerful validation of PIA’s long-term advocacy strategy.
What got cut—and why PIA supports the cut
Some of the most critical developments weren’t about what made it into the bill—but what didn’t.
No federal freeze on AI regulation
The original House version of the bill included a 10-year moratorium on state regulation of artificial intelligence—a move that would have stripped insurance regulators of their long-standing authority to govern underwriting and claims practices.
Thankfully, that provision was removed in the Senate. PIA and PIA Northeast strongly support state-based AI regulation—especially in a sector like insurance—where states have deep expertise and existing frameworks in place. Many states, including those in PIA Northeast’s footprint, are already adapting the National Association of Insurance Commissioners’ model AI guidance to ensure fair, transparent and accountable tech use—without stifling innovation.
Lawsuit restrictions dropped
The bill also initially included new restrictions—or taxes—on third-party lawsuit lending, a controversial but growing practice in which private funders finance litigation in exchange for a share of the judgment or settlement.
PIA Northeast supports stronger oversight of lawsuit lending—including requirements for transparency, interest rate limits, and clear rules that preserve the attorney-client relationship. However, the association does not support the outright elimination or over-taxation of the industry, recognizing that it can be a vital tool for consumers seeking justice when resources are limited.
The removal of these restrictive provisions gives PIA Northeast the opportunity to pursue thoughtful, state-level reforms that address abuse without limiting access to the courts.
Why this matters in the Northeast
For PIA Northeast members, these developments translate into opportunity.
With the AI moratorium off the table, state legislatures and insurance regulators in states such as New York, New Jersey and Connecticut remain free to implement smart, responsive rules tailored to their markets. With the fate of lawsuit lending left to the states, PIA Northeast can continue to champion reforms that protect both consumers and the insurance system from predatory practices—without sacrificing access to justice. See the association’s efforts in Connecticut, New Jersey and New York.
In short, for independent insurance agents, the bill clears the way for localized leadership, where PIA Northeast’s voice is strongest.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
