Federal Updates

📌 A U.S. District Judge recently ruled that the Federal Reserve exceeded its authority by setting debit card “swipe” fee caps too high—enabling banks to extract excessive profits from restaurants and other retailers. The challenged regulations govern the maximum fees that card-issuing banks can charge merchants when consumers use debit cards. Although the judge had previously dismissed the case, the Restaurant Law Center successfully supported the plaintiffs before the U.S. Supreme Court for their right to bring the challenge. (See RLC Brief and SCOTUS Decision here.) Last week’s lower court decision is stayed pending the issuance of new regulations. The National Restaurant Association and the Restaurant Law Center are already in discussions with federal officials to implement a proposal that would lower the fee cap to a level consistent with congressional intent. (See press statement and regulatory comments here.) 

📌 Last Tuesday, President Trump extended the status quo with tariffs on China for 90-days while the two countries work to come to a new agreement. Tariffs will remain at 30% until Nov. 10. The President also signed an Executive Order imposing an additional 25% tariff on Indian imports tied to India’s purchase of Russian oil—bringing the total tariff to 50%. The new Indian tariffs take effect Aug. 27, with exemptions for goods shipped by that date and arriving in the U.S. by Sept. 17. Other countries importing Russian oil may face similar tariffs if recommended by the Commerce Secretary. Learn more here and here. 

📌 More than 80 alcohol industry groups are urging former President Trump to back off proposed tariffs on European Union imports, warning that added duties could jeopardize U.S. jobs and increase prices on consumer favorites like wine and spirits. “The restaurant industry is concerned that the inclusion of European wine and spirits in the recently announced U.S.-EU trade agreement will increase costs and push up menu prices for consumers who want these choices,” Michelle Korsmo, CEO & President of the National Restaurant Association, said. 

📌 We are working with the National Restaurant Association to launch a national survey to assess how enhanced immigration enforcement is affecting the restaurant industry, specifically its impact on customer traffic and workforce participation. Your input is critical. The results will help us advocate for comprehensive immigration reform that supports the workforce needs of restaurants. The survey will run through August, and we strongly encourage you to participate. A 90-Second Update on the survey can be found here. The survey can be found here.   

📌 The National Restaurant Association recently shared the following economic stories: 

• “Menu prices grew solidly for the sixth straight month, up 0.3% in July” – Tuesday, August 12 
• “Wholesale food prices are rising, even without the added impact of tariffs” – Thursday, August 14 
• “Consumer spending in restaurants plateaued in recent months” – Friday, August 15 

State Update

📌Governor Kathy Hochul last week held a press conference championing the state’s action to pay off the nearly $7 billion federal Unemployment Insurance (UI) Trust Fund loan — a move to bring the fund to solvency, increase benefits for unemployed New Yorkers and cut costs to businesses. The Restaurant Association was a big supporter of this measure and had advocated for this since the pandemic. The Governor announced this action back in May as part of the Fiscal Year 2026 Enacted Budget. Before the COVID-19 pandemic, the UI Trust Fund had a positive balance of nearly $2.5 billion. However, due to the economic downturn caused by the pandemic, the balance was paid out to unemployed New Yorkers, requiring the State to borrow from the federal government to continue paying eligible claims. Paying off the debt and making the fund solvent allows the State to decrease rates on businesses and bring more stability to this recently unpredictable space. 

📌 New York must soon come up with nearly $3 billion a year to provide health coverage for half a million residents who are losing their federally funded care.  That's one of the first spillover effects of a new federal law that is expected to force tough decisions. In other words, New Yorkers should brace for potentially drastic measures coming out of Albany, as some officials warn the state is heading for the kind of financial pain not felt since the Great Recession from 2007 to 2009. The looming $3 billion health care expense comes as a result of the huge package of tax and spending cuts enacted last month by Republicans in Congress and President Donald Trump. 

📌 A dozen cannabis shops in New York are suing the state Office of Cannabis Management, arguing that a recent rule change threatens their businesses and the state’s equity goals. The lawsuit filed in Albany Supreme Court challenges the recent reinterpretation of a state law requiring cannabis dispensaries to operate 500 feet away from a school. Since 2022, the Office of Cannabis Management measured that distance from a school’s entrance, but in July, it instead began measuring from the school’s property line. Dispensaries in violation of the new rules are allowed to remain open for now, but are required to find new locations before their licenses will be approved or renewed, according to the Office of Cannabis Management's website. The plaintiffs in the lawsuit argue the effects of the rule change, which render at least 152 dispensaries noncompliant, are “catastrophic” and “legally indefensible.” 

📌 The Empire State’s controversial bail law is again under the microscope — just as Gov. Kathy Hochul prepares to run for reelection. The Democrat’s potential Republican opponent, Rep. Elise Stefanik, is preparing legislation that would prohibit state-level cashless bail laws.  President Donald Trump, who deployed the National Guard to Washington and federalized the city’s police department with the stated goal of combating crime in the nation’s capital, is in favor of the anti-bail push. 

📌 The state Public Service Commission met Thursday morning and approved National Grid’s request to increase gas and electric rates in upstate New York by nearly $1 billion through April 2027. 

New York City Updates

📌 Gov. Kathy Hochul threw cold water Saturday on socialist NYC mayoral candidate Zohran Mamdani’s proposal to bring government-owned-and-operated grocery stores to the Big Apple.  “I favor free enterprise,” Hochul told business leaders at a Hamptons breakfast hosted by supermarket mogul John Catsimatidis, when asked about Mamdani’s pie-in-the-sky plan. The response drew huge applause from attendees, including Catsimatidis. The Gristedes supermarket owner later told The Post Mamdani’s plan would fail miserably, pointing to failures at a Kansas City, Mo.-owned grocery store that closed Monday after years of being a huge money pit for taxpayers and being plagued by rampant shoplifting and empty shelves.  

📌 A key selling point of Mayor Eric Adams’ longshot reelection bid in New York City is record job growth. But there’s a major caveat to his claims: He had little control over making it happen. Adams, a Democrat who is running as an independent in the general election, has pointed to the superlative statistic at town halls as evidence of his prudent leadership. He has regularly accused the media of ignoring the historic figure. And the talking point has become a fixture of his reelection stump speeches. “What did we do for our economy?” Adams asked at his campaign kickoff in late June. “500,000 new jobs in this administration, more jobs than in the city’s history.” A POLITICO review of data and interviews with experts indicate the jobs landscape is not as fertile as Adams suggests. The record employment figures have been powered by a government-subsidized industry at risk of contraction. The growth rate in the city’s economic output has lagged behind that measure for the nation as a whole since 2020. And hiring has slowed to a near standstill this year, with companies based in the city adding fewer than 1,000 new employees during the first half of 2025.  

📌 New York City Council Member Carlina Rivera plans to resign in the coming days to take a job leading the New York State Association for Affordable Housing, according to four people familiar with her plans, granted anonymity to discuss her upcoming announcement.  The move comes just months before she would have been term-limited out of office 

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The New York State Insurance Fund(NYSIF) Risk Control Resource Center:

Available for FREE to Safety Group 505 Members

NYSIF has developed an online safety resource and training portal to help NYSIF policyholders keep their employees safe. Policyholders with an online account have FREE access to a host of valuable resources:

• Industry-specific safety manuals
• Tips on how to reduce/manage accidents and injuries
• Online safety classes for employees
• Employee training videos
• Ergonomic and hazard communication resources/training materials
• And more!

Businesses can also request site inspections, safety consultations and other risk control services.

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Upcoming Leadership Roundtables



Each virtual Hospitality Leadership Roundtable features a monthly topic of discussion, and a town hall session for open conversation and Q&A.

** Calls will resume in September**

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