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Appointments of women and racial minorities to S&P 500 boards have fallen to their lowest level since 2014, according to new research by executive search firm Spencer Stuart, reflecting a broader retreat from diversity initiatives as the Trump administration intensifies its campaign against diversity, equity, and inclusion (DEI) programs. Spencer Stuart found that diverse candidates accounted for 40% of new independent board appointments over the past year, down from a peak of 72% in 2021 and 2022, although diverse directors still occupy 49.3% of board seats, only slightly below record levels. Recruiters and governance experts say the decline is being driven by changing legal, regulatory, and political pressures, as well as a greater focus on recruiting current and former CEOs, who represent a less diverse talent pool. Separate data from human resources analytics firm PeopleReturn also showed companies are becoming less likely to publicly cite diversity as a factor in board recruitment, while several large corporations have scaled back DEI policies following legal challenges and executive actions from the Trump administration. The shift has also been reinforced by a retreat from major institutional investors, including BlackRock, Vanguard, and State Street, which have removed or softened board diversity expectations in recent years.

 

The Hill

Reuters

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Recent changes in federal policy under the Trump administration had hindered wind and solar projects, but a recent court ruling has provided some relief. The U.S. District Court for the District of Columbia vacated the IRS's Notice 2025-42, which updated the "beginning of construction" rules for clean energy tax credits. Stephen Eckert, practice leader at Plante Moran, stated: "Having the court step in and do something is not a big surprise on some level." The ruling allows developers to revert to earlier guidance, offering flexibility in project planning. However, Eckert advises caution, emphasizing the need for comprehensive documentation and strategic planning as the situation evolves. The decision may enable some projects previously deemed ineligible due to timing constraints to re-enter the field, but developers should remain vigilant about future IRS guidance and court rulings.

 

Accounting Today

New York City has released a preliminary list of property owners who could be subject to Mayor Zohran Mamdani's new pied-à-terre tax, a surcharge on second homes valued at $5m or more that took effect on July 1st. The list includes prominent figures such as Commerce Secretary Howard Lutnick, Mary Trump, filmmaker Darren Aronofsky, and properties associated with Trump Park Avenue, although officials estimate the tax will ultimately apply to only about 10,000 second homes after the review process is completed. The tax was approved by the New York State Legislature earlier this year as part of Mamdani's affordability agenda and is expected to generate at least $500m annually for the city. While the Finance Department said the publication of the list is required under state law and relies on publicly available property records, critics argue that identifying individual property owners publicly risks stigmatizing taxpayers.

 

Wall Street Journal

The Miami metropolitan area has surpassed greater New York City in cost of living, prompting a reevaluation of what constitutes a "low tax" state. Analysts argue that affordability should be assessed through comprehensive household-burden metrics, which include various living expenses beyond just taxes. Andrew Leahey, an assistant professor of law at Drexel Kline School of Law, emphasizes that "a state's affordability is much more complicated than a question of individual income taxes." Florida's lack of an income tax is often touted as an advantage, but this perspective overlooks the hidden costs of living that residents face. The comparison between New York and Florida reveals that while Florida may have lower income taxes, the overall financial burden can be higher for many households, particularly those with lower incomes.

 

Bloomberg Tax

The U.S. goods trade deficit narrowed in June as imports declined more sharply than exports, although economists expect trade to remain a drag on second-quarter economic growth. According to the Commerce Department, the goods trade deficit fell 4.2% to $101.5bn in June. Goods imports declined 2.6% to $306.2bn, led by lower purchases of consumer goods, capital goods, automobiles, food, and industrial supplies, while goods exports fell 1.8% to $204.7bn, reaching a five-month low as shipments of industrial supplies, including petroleum, dropped amid lower crude oil prices following the U.S.-Iran ceasefire. Exports of automobiles and consumer goods, however, increased during the month. Despite the narrower deficit, economists said trade is still likely to subtract about one percentage point from second-quarter GDP growth, marking a third consecutive quarter in which net exports have weighed on the economy.

 

Reuters

U.S. home prices declined for a third consecutive month in May, according to the S&P Cotality Case-Shiller Home Price Index, as elevated mortgage rates and persistent inflation continued to weigh on housing demand. The national home price index was essentially flat month over month on a seasonally adjusted basis and increased 1.1% from a year earlier. After adjusting for inflation, however, home prices fell 0.3% from April and were down 2.1% year over year. The 20-City Composite Index rose 0.1% month over month and 1.6% annually, while the 10-City Composite Index increased 0.3% from April and 2.4% from a year earlier. Chicago posted the strongest annual home price growth among the 20 major metropolitan areas, with a 6.9% increase, followed by New York (4.2%) and Cleveland (3.1%). Las Vegas recorded the steepest annual decline at 1.9%, with Seattle, Denver, and Tampa also posting losses. S&P Dow Jones Indices said affordability remains a significant challenge, citing 6.5% 30-year mortgage rates and persistent inflation as factors limiting buyer demand and contributing to continued declines in home values after adjusting for inflation. 

 

Advisor Perspectives

The deadline for President Donald Trump to request a reconsideration of the Supreme Court's ruling on birthright citizenship has passed without any new filings. The Supreme Court's 6-3 decision in June rejected Trump's executive order aimed at denying automatic citizenship to children born in the U.S. to undocumented or temporarily present parents. Law professor Aaron-Andrew Bruhl noted, "The bar to grant a petition for rehearing is high," emphasizing the difficulty of overturning such a ruling. Trump's administration had previously faced setbacks in lower courts, and the Supreme Court has not granted a rehearing in over 50 years.

 

U.S. News

A lawsuit has been filed by open government advocate Arthur West in Thurston County Superior Court, challenging the constitutionality of the public investment impact statement that will accompany the November ballot initiative to repeal Washington state's millionaires tax. The lawsuit names Secretary of State Steve Hobbs and Attorney General Nick Brown as defendants. West argues that the requirement for government-written language to be added post-petition violates the law's neutrality requirement. He stated, “I’m doing this to support the people's right to petition and to adopt laws independent of the Legislature.” The attorney general's office defends the requirement, asserting it provides essential information to voters. West seeks a court declaration to deem the 2022 law unconstitutional and prevent the statement's inclusion on the ballot.

 

CPA Practice Advisor

The use of artificial intelligence (AI) in cybersecurity has accelerated rapidly, but a new global survey warns that organizations are struggling to manage the technology effectively, leaving them increasingly exposed to AI-powered cyber threats despite widespread adoption. The 2026 SANS AI Survey Insights found that active use of AI in cybersecurity has risen from 50% to 78% over the past year, yet 63% of practitioners reported significant shortcomings in AI-driven threat detection and response, up from 45% in 2025. Nearly two-thirds said AI had provided incorrect guidance at least once during the past year, while only 27% described their AI deployments as mature, with most organizations still using the technology in supporting or pilot roles. The survey also found that 78% of organizations experienced confirmed or suspected AI-enabled cyberattacks during the past year. Although 95% of security leaders believe attackers are already using AI, only 16% said their organizations have shifted their defenses to specifically counter AI-driven threats. Governance remains inconsistent, with 50% of executives reporting formal AI risk programs compared with just 36% of frontline practitioners who said such frameworks exist within their organizations.

 

Journal of Accountancy

U.S. consumer confidence fell for a third consecutive month in July, as Americans became more pessimistic about current business conditions and the labor market, according to The Conference Board. The Consumer Confidence Index declined 1.4 points to 90.8, while the Present Situation Index, which measures views on current business and labor market conditions, fell 3.6 points to 114.9. The Expectations Index was unchanged at 74.7, remaining below the threshold that typically signals concern about future economic conditions. Consumers were less likely to describe business conditions as "good," and perceptions of job availability also weakened, with fewer respondents saying jobs were plentiful. The Conference Board said expectations for business conditions over the next six months deteriorated further, although income expectations remained relatively positive. Survey responses also showed increased concern about jobs, unemployment, and grocery prices, while references to geopolitical tensions eased slightly during the survey period.

 

AP News

Quartz

Reuters

Wall Street Journal

A new Coface survey has found that 57% of U.S. finance and risk executives would rather reject a business opportunity than build the case for pursuing it, highlighting a culture of caution that the company says is limiting growth even as organizations invest heavily in artificial intelligence to improve decision-making. The 2026 Risk Survey: Risk Management from Risk Control to Growth Engine found that 80% of U.S. executives see AI-powered insights and early warning systems as a top priority for managing risk, with many hoping the technology will help them make faster, more confident decisions. However, the report found that inconsistent data quality, cited by 31% of respondents, remains a major obstacle, while 68% want predictive analytics embedded into everyday business workflows. Despite relatively mature governance structures, many organizations continue to treat risk management as a barrier rather than a driver of growth. The survey found that 66% of executives identified internal risk aversion as a key obstacle to expansion, 65% believe commercial ambition and risk discipline are fundamentally at odds, and only 28% view their risk teams as strategic growth partners. While 76% of companies have clearly defined decision-making structures and 71% align their risk appetite with growth strategies, many leaders said they want risk professionals to identify commercial opportunities as well as potential threats.

 

CPA Practice Advisor

Meta Platforms chief executive Mark Zuckerberg has called on U.S. policymakers to accelerate artificial intelligence (AI) development rather than impose restrictions that could slow innovation, arguing that AI's benefits outweigh its risks. He said the current debate around AI is overly pessimistic and urged regulators to minimize delays in reviewing new AI models, warning that even short approval periods could hinder progress in a rapidly evolving industry. Mr. Zuckerberg also argued against restricting access to open-source AI models, including those developed outside the U.S., saying policymakers should instead focus on strengthening America's AI industry and removing barriers to AI-driven innovation. The comments come as Meta significantly increases its investment in AI infrastructure, with plans to spend up to $145bn this year on chips and data centers, ahead of its second-quarter earnings release later this week.

 

New York Times

Reuters

Wall Street Journal