TMA E-News Bulletin for May 6, 2026

NEWS

First Quarter GDP hits 2%

The U.S. economy grew by 2% over the first quarter of 2026, a significant rebound from the fourth quarter of 2025. Much of the fourth-quarter economic slowdown was tied to the record-long government shutdown, and economists anticipated a bounce back. However, the growth fell slightly short of economists’ forecast of 2.2%. Driving the growth is the burgeoning artificial intelligence industry, but consumer spending was slower than anticipated, falling short of the expected 1.9% rise to 1.6%.

Manufacturing Activity Expands for 4th Consecutive Month

U.S. manufacturing activity expanded for a fourth consecutive month in April, with the Institute for Supply Management’s Manufacturing PMI measuring 52.7, the same as March. New orders rose from 53.5 to 54.1, while production dropped from 55.1 to 53.4. Supplier deliveries increased to 60.6, while employment decreased from 48.7 to 46.4. More HERE.

Debt Exceeds GDP

The U.S. national debt has surpassed 100% of the total annual American economic output, hitting $31.27 trillion at the end of March. The GDP over the last 12 months totaled $31.22 trillion. The Cato Institute’s Romina Boccia called this development “deeply troubling,” noting, “We have debt as high as since World War II, except we are on a steep upward trajectory, and it’s not driven by a temporary war but by permanent entitlement obligations that are expanding — that’s Social Security, Medicare and Medicaid.” Indeed, Social Security alone accounts for more than 30% of last year’s federal spending, and that share is projected to increase. Boccia observed, “Strong research indicat[es] that when debt grows to such high levels, above 80% of GDP, it tends to crowd out private sector investment, which reduces economic growth, and therefore economic opportunities, jobs, and higher wages.” More HERE.

America’s AI Boom Has a Trade Policy Blind Spot

The AI data center buildout has exposed three distinct failures in US trade and industrial policy. More HERE.

Senators Introduce Bill to Enforce Buy America Compliance

U.S. Sens. Tammy Baldwin, D-Wis., and Jim Banks, R-Ind., introduced a bill that would require federal agencies to comply with the Build America, Buy America Act for contracted projects funded through the Infrastructure Investment and Jobs Act. More HERE.

ADVOCACY

Millionaire’s Tax Officially Dead – For This Year

Despite a strong, last-minute push by progressives in Springfield, a constitutional amendment for an additional 3% tax on incomes above $1 million will not appear on the November general election ballot. Supporters could not garner the supermajority vote needed to pass the House by the May 3 deadline and it is dead for this election season. The next time it can appear on a ballot is November 2028. More HERE.

Register For May 13 Virtual Briefing on TMA’s CTE Legislation

Join us for a virtual briefing with IL Senator Willie Preston (D-Chicago), TMA Lobbyist David Curtin and Terry Stroh, a leader in Career & Technical Education, to discuss TMA’s legislation — SB 3070. The bill addresses the 2-year foreign language mandate that threatens to wipe out high school CTE classes and instructors, providing a solution that would let students fulfill the mandate with courses in advanced manufacturing, machining and other CTE classes, building a pipeline of workers for TMA members. Register HERE.  

MEMBERS

Former TMA Chairman Pens Op-Ed About CTE Legislation

Ben Barnett, President and CEO of Principal Manufacturing in Broadview and former TMA Board Chairman, writes in The Center Square that Senate Bill 3070 provides a sensible solution to the coming 2-year foreign language mandate for graduation and would boost Career & Technical Education training in high schools that would benefit small and midsize manufacturers. More HERE.

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Now Open: Entrance Exams for Fall 2026 Related Theory Apprentice Training

TMA is now accepting appointments to take the exam for the fall 2026 semester. The exam is administered at TMA in Schaumburg. Click HERE to schedule an exam. More information and FAQs about the entrance exam HERE. Successful completion of the Entrance Exam is required for all Year 1 students. Year 1 classes fill up quickly, so please schedule entrance exams as soon as possible.

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